Keenan and Riches’BUSINESS LAW

Chapter 2 Law making

Learning objectives

After studying this chapter you should understand the following main points:

■the causes and sources of legal change and law reform;

■the characteristics of the main sources of law, including law made by

Parliament (legislation), judge-made case law (judicial precedent), and law

emanating from the European Union (EU);

■the nature of human rights legislation and its effect on other sources

of law.

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Over 900 years of history have helped shape the institu-
tions, procedures and body of rules which make up our
modern English legal system. The law is a living creation
that reflects the needs of the society it serves, each gen-
eration leaving its mark on the law.
The rate of legal change has varied greatly down the
centuries. English law developed at a relatively gentle pace
until the end of the 18th century, but, as Britain moved
into the industrial age, the pace of legal change quickened.
Life at the start of the 21st century is fast moving and the
rate of legal change is just as hectic. The law does not
stand still for long today.
Ideally, business requires a stable environment within
which to operate. Yet, the framework of law which gov-
erns business activities is subject to constant change.
The burden of keeping up to date may be eased slightly
by making use of professional people such as an account-
ant or solicitor to advise on the latest developments in
such areas as tax or company law. Nevertheless, the
businessman will still need to keep himself informed of
general legal changes which will affect his day-to-day
running of the business. If he employs others in his busi-
ness, he will need to keep up to date on such matters
as health and safety at work, the rights of his employees
and his duties as an employer. If he sells goods direct to
the consumer, he must be aware of changes in consumer
protection law. Almost every aspect of his business will
be subject to legal regulation and the law could always
change.

In this chapter we will explore why the law changes

and the mechanism by which change takes place.

Causes of legal change

Legal changes can be divided into two broad categories

according to their causes. The first type of legal change

is caused by the law responding to changes taking place

in society. Political, social and economic changes, tech-

nological advancements and changing moral beliefs all

lead eventually to changes in the law. Indeed, the law

must be responsive to new circumstances and attitudes

if it is to enjoy continued respect. The second type of

legal change arises from the need to keep the law in good

working order. Like any piece of sophisticated machin-

ery, the law machine must be kept in a neat and tidy

condition, maintained on a regular basis, with essential

repairs undertaken when necessary. We will now exam-

ine these two types of legal change in more detail.

Legal change and the changing

world

Think about the changes that have taken place in our

world over the past 100 years. The first to come to mind