ACCA F4 - Corp and Business Law (ENG)

32 2: Sources of law  Part A Essential elements of the legal system

Chapter Roundup

 The first legal source of law, consisting of decisions made in the courts, is case law, which is judge-made

law based on the underlying principle of consistency. Once a legal principle is decided by an appropriate

court it is a judicial precedent.

 Statements made by judges can be classified as ratio decidendi or obiter dicta.

 The second major source of law is legislation. This is also known as statute law and may take the form of

Acts of Parliament or delegated legislation under the Acts.

 Legislation must be interpreted correctly before judges can apply it fairly. The literal, golden and

mischief rules of interpretation developed over time. Nowadays a purposive approach is taken.

 The Human Rights Act 1998 is a key example of the influence of International law in the United Kingdom.

 The Human Rights Act 1998 incorporates the European Convention on Human Rights (the Convention)

into UK domestic law.

 The impact of the legislation is pervasive in many areas of UK law.

 The Act has had an impact on new legislation, statutory interpretation and the common law.

Quick Quiz

1 Obiter dicta form part of the ratio decidendi.

True^

False

2 Which of these decisions bind the Crown Court?

Decisions of the County Court

Decisions of the High Court^

Decisions of the Court of Appeal

Decisions of the Supreme Court

3 In 2010, Mr Justice Jeffries, a High Court judge sitting alone, is deciding a case which has similar material

facts to one decided by the Court of Appeal in 1910. He can decline to be bound by this decision by

showing that

A The status of the previous court cannot bind him

B The decision was taken too long ago to be of any relevance

C The decision does not accord with the rules of a statute passed in 1975

D The obiter dicta are obscure

4 Overruling a decision of a lower court affects the outcome of that earlier decision.

True^

False

5 UK Courts must interpret legislation in a way that is compatible with the Convention on Human Rights.

True^

False^