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Learning Outcomes
By the end of this unit a student will be able to:
1.Explain the basic nature of the legal system.
2.Illustrate the potential impact of the law on a business.
3.Suggest appropriate legal solutions to business problems.
4. Recommend appropriate legal solutions based upon
alternative legal advice provided
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The legal system:
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The legal 1. What constitutes a legal system?
system 2. The purpose of law, the evolution of law and
different sources of law e.g. legislation,
directives, case law and treaties relevant to
country.
3. The differences between civil and criminal
law.
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WHAT IS LAW?
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Introduction •Varied definitions of law – over the millennia
to Law •There is a common theme in all the definitions:
“ A set of rules that regulate the relationship of people
in society to ensure legal, social and political
order”.
•According to Blackstone law is that part of rule or
action which can be applied randomly to all forms of
action.
•According to Salmond law is a body of rules
acknowledged and enforced by the State in the
organisation of justice.
https://www.youtube.com/watch?v=rOLJeOHF8G0
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Why Law Is Important?
• At its most basic, the law is about mitigating conflict. When creating laws,
societies reckon with what drives conflict. Some things – like murder and theft-
are obvious and have been included in laws stretching back to ancient times.
However, as time goes on and societies change, what’s considered acceptable
changes, too. Legal systems adapt so they can provide clarity and context for
unacceptable actions. They also offer guidelines for appropriate consequences.
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2 .Laws provide access to justice
• If it’s against the law to punch someone in the face, someone who
gets punched can do something about it other than simply swinging
back. In a perfect world, justice is equal. It doesn’t matter who got
punched or who did the punching. What matters is that the law
against punching was broken. Everyone in a society – and not just a
privileged few – must have equal access to justice through the law.
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3 Laws keep everyone safe
• Laws don’t only respond to injustices and harm. They work to prevent them.
Food safety laws are a prime example. In the past, the food industry was
extremely unregulated. In the 18th and 19th centuries, American food producers
went to extreme measures in their quest for profit. They watered down milk and
stirred in materials like chalk for color. They mixed dirt into coffee, tea, and
spices and added lead to beer and wine. In 1906, President Roosevelt and
Congress passed the Pure Food and Drug Act, as well as the Meat Inspection Act.
This marked the beginning of modern food safety and monitoring. Today, food
safety laws protect the public from potentially-fatal food poisoning.
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4 Laws protect the most vulnerable in society
EX - Laws like the Civil Rights Act (the United States) and the Sex
Discrimination Act (Australia) make it illegal to discriminate.
These types of laws protect what’s known as “negative rights,” which is the
right to be free from something, like discrimination. Anyone can be
discriminated against, but as history shows, certain people are more at risk.
Laws designed to prevent discrimination based on race, sex, gender, religion,
and more protect these groups and give them better access to justice.
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5. Laws offers people a variety of career options
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6 Laws are important to maintain peace
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8 Laws are important for social progress
• We’ve discussed how legal systems should adapt and evolve with the times. If laws
remained stagnant, so would societies. Throughout history, law has been employed
as a tool for social change. It was laws that made slavery, segregation, and
apartheid illegal. Laws prevent people from getting fired from their jobs because of
who they marry or because of a disability. The concept of law as a mechanism for
social change is complicated because if the majority of a community doesn’t agree
with the law, it’s likely that the law won’t be enforced. However, having a law on
the books gives people more power than if the law didn’t exist at all. It’s an
important step (though not necessarily the final step) to real social change.
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9 Laws make human rights a reality
• Supreme Court Justice Sonia Sotomayor once said, “I firmly believe in the rule
of law as the foundation for all our basic rights.” Basic rights are the human
rights that everyone is entitled to. This includes the right to life, the right to
marry, the right to be free from discrimination, and more. These are listed in
the Universal Declaration of Human Rights, but that document is not legally
binding. To make human rights a reality, they have to be protected through
laws. Without law, human rights would be an abstract concept. If you would
like to learn more about human rights, consider studying a masters.
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The English legal system
The United Kingdom is divided into three main jurisdictions (or self-contained legal systems):
Each jurisdiction has its own laws, court system, lawyers and judges. However:
Laws that apply in one jurisdiction, particularly if they are derived from legislation (Acts of Parliament and Statutory Instruments)
While the courts in each jurisdiction can decide cases differently from those in other jurisdictions, the final appeal for all of them
Moreover, the process of devolution has resulted in variations between the laws of Wales and those of England, and even as
between different regions in England. Acts of Parliament can take effect differently, or at different times, in different parts of the
This article is mainly about the legal system of England and Wales, though there may be similarities with other jurisdictions.
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CIVIL LAW
Civil law may be defined in opposition to three alternatives.
2. Civil in the sense of secular law, as opposed to ecclesiastical or other forms of religious law.
3. Civil law as a legal system, based on a code of laws (such as the Code Napoleon developed in France), as
The meaning thus depends on the context. A criminal case may be decided in a civil court if that court is a secular
rather than a religious one or is the court of a continental legal system, such as that of France. But a civil court in the
first sense, such as the Chancery Division of the High Court, is not going to hold a murder trial; instead, such a case
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Some types of civil law
Contract
• The law of contract is concerned with the formation and interpretation (or
‘construction’) of written or oral agreements between companies or
individuals. A contract does not have to be written down to be a binding
contract. Disputes over contracts may concern whether or not a contract
ever came into existence, what its various terms and conditions actually
meant, whether one party has broken (‘breached’) the contract and, if so,
what remedy (such as damages, an injunction or specific performance)
should be ordered.
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Tort
• Company law is concerned with the formation and regulation of companies and
corporations, which are separate legal persons from the individuals who own
them (usually by acquiring shares in the capital value of the company), known
as ‘members’, and those who manage and direct their activities, known as
‘directors’. When a company’s debts exceed its income and capital it becomes
insolvent, and may be put into administration or, eventually, wound up
altogether. There may be claims by different classes of creditor and regulatory
proceedings may be taken against the directors. Company law covers all these
matters.
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Revenue law
• Revenue law deals with disputes over the assessment of taxes and
duties levied on organisations and individuals by the government.
Types of tax include income tax, corporation tax, capital gains tax,
inheritance tax, VAT etc are all covered. Revenue law is so called after
the Inland Revenue department, now merged with Customs and
Excise (responsible for levying duties such as import duty, excise duty
etc) to form Her Majesty’s Revenue and Customs (HMRC).
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Intellectual property law
• IP law as it is often called is concerned with rights and duties relating to patents, designs,
copyright and trade marks. Patents protect scientific inventions which often have an industrial or
commercial value. Design rights protect the commercial value of a product’s design. Copyright is
concerned with artistic works, whether written, composed or created in some other artistic way
(thus a painting or illustration would generally be protected by copyright rather than a design
right). Trade marks protect the identity and reputation of businesses. Claims for ‘passing off’
(where a business passes itself or its products off as being those of another business) are also
considered part of intellectual property law. Some intellectual property rights have to be
registered before they can be enforced but others do not. Disputes may arise over whether a
person was entitled to register the right and whether such registration was valid.
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Family law and the Court of Protection
• Family law is concerned with marriage and divorce, children, and matrimonial finance. Some
issues involving children are described as private law cases, because they only involve private
individuals (usually the parents or guardians) but other disputes, such as care proceedings
involving the local authority and other parties, are described as public law cases.
• Cases involving children may relate to medical treatment for which, by virtue of their age, or
lack of capacity, they are unable to provide consent. Similar cases involving adults lacking
capacity are dealt with by the Court of Protection, which also deals with administrative
issues such as where an adult lacking capacity should live and decisions about their financial
affairs.
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Media and communications law
• Media law deals with disputes over the regulation of and the content
published or broadcast by media organisations and individuals (such as
journalists) who generate that content. Information law is concerned with
rights (such as Freedom of Information) and duties (such as data protection)
relating to information. Communications law includes telecommunications,
the internet and social media, though there is considerable overlap with
media and information law. They are all among the types of business dealt
with by the Media and Communications List in the Queen’s Bench Division.
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Common law and Equity
• The common law was historically administered in the king’s courts, and equity
developed as a separate system of mainly discretionary remedies administered
by the Lord Chancellor, often as a way of ameliorating the injustice done by
inflexible rules of the common law. Equitable concepts such as trusts are now
generally dealt with as part of the business of the Chancery Division in the High
Court, but since the Judicature Acts of 1873-75, when the systems of law and
equity were fused, they have no longer been treated as separate jurisdictions
and both legal and equitable remedies can be provided in all the courts.
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Legal rules, principles & procedures to ensure
that people who engage in business do so in a
proper manner. Transactions are entered into in
a fair and just manner.
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Business
law
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Importance of Business Law
• Legal contracts are necessary for a firm to operate smoothly. It’s critical
to respect legal restrictions. Professionals with a thorough
understanding of this subject assist the organization in drafting legal
agreements that are more useful and free from flaws. Every company
has an internal legal team, and one can join the team by understanding
this.
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2. Understanding of Business Rules
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3. Take Charge of Your Own
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5. Protect Shareholder Rights
6. Business Formation
• The law of business serves as the cornerstone for each enterprise. Numerous
legal procedures, leases, and permits are involved in starting a business. A
business law attorney is knowledgeable about all the pertinent laws and can
assist the company in successfully establishing its operations.
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What are the Functions of Business Law?
• It also regulates workplace safety, overtime policies, and minimum wage laws.
• It aims to lessen the industry’s adverse effects on the natural world and the environment. It tries to control the use of
• It governs the procedure for forming a company and rules for selling corporate entities.
• Additionally, it covers rights delegation, contract drafting, task delegation, breach of contract, transactions, contracts,
• Generally, business law governs partnerships, corporations, sole proprietorships, liability firms, and partnerships.
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Introduction: To understand the legal system,
you first need to know
Legal System something about the context in
which this legal system is
operating: the CONSTITUTION.
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A set of rules which details a country’s system of
government
What is a It can be a written document or cannot be found
Constitution? written down in one document: unwritten
constitution.
Constitutions essentially set out broad principles
concerning who makes law and how
Allocate power between the main institutions of the
state – government, Parliament & judiciary
Indicate the basic values on which the country should
expect to be governed:
Example: citizens should not be punished unless they
have broken the law, certain rights and freedoms
should be guaranteed, and state prevented from
overriding them.
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Unwritten •Unwritten means: cannot be found written down in one
Constitution document
•What are the documents?
Acts of Parliament
Judicial decisions
Conventions (not law, but are long-established traditions
which tend to be followed)
Example:
Queen does not refuse to give her consent to Acts of
Parliament;
Judges do not undertake activities associated with a
political party;
Speaker of the House of Commons does his or her job
impartially
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Principles 1. Separation of powers
Underlying •State power can be divided into three: executive,
The British legislative and judicial.
Constitution Executive: Government and its servants (police and
civil servants)
Legislative power is Parliament
Judicial authority is exercised by judges
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Principles 2. Supremacy of Parliament continued..
Underlying Powers Curtailed
The British •The new Scottish Parliament, created by the Scotland Act
Constitution 1998, can make laws affecting Scotland on health,
education, local government, criminal justice etc.
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Principles 3. Rule of Law
Underlying No person must suffer punishment or pay damages for any
The British conduct not expressly forbidden by the law as
Constitution determined trough the courts”
Professor:
A. B. Dicey
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Sources of
Law
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Historical Background
•Before the Norman conquest, different areas of England were governed by
different systems of law based largely on local custom.
•The king had little control over the country, and there was no effective central
government
•William the Conqueror gained the English throne in 1066, he began to
standardize the law.
•Representatives of the king were sent out to the countryside to check local
administration, and were given the job of adjudicating in local disputes,
according to local law.
•When these ‘itinerant justices’ returned to Westminster, they discussed the
various customs of different parts of the country and, by a process of sifting,
rejecting unreasonable ones and accepted those that seemed rational, to form
a consistent body of rules.
•During this process – which went on for around two centuries – the principle of
stare decisis (‘let the decision stand’) grew up. Whenever a new problem of law
came to be decided, the decision formed a rule to be followed in all similar
cases, making the law more predictable.
•As a result in 1250, a ‘common law’ had been produced, that ruled the whole
country. It would be applied consistently and could be used to predict what the
courts might decide in a particular case. It contained many of what are now
basic points of English law 45
• The principles behind this ‘common law’ are still used
today in creating case law
Case law
• From the basic idea of stare decisis, a hierarchy of
precedent grew up, in line with the hierarchy of the
modern court system
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Judicial Precedent – the method of following
the decision made from a case
In deciding a case, there are two basic tasks:
Case law 1.What are the facts
2.How the law applies to those facts
It is the second task that can make case law,
and the idea is that once a decision has
been made on how the law applies to a
particular set of facts, similar facts in later
cases should be treated in the same way
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•Judgement
•None of the obiter dicta forms part of the case law, though
judges in later cases may be influenced by it, and it is said
to be a persuasive precedent.
•In deciding a case, a judge must follow any decision that has
been made by a higher court in a case with similar facts.
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Act of parliament
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Act of
parliament
Understanding the UK Parliament
https://www.youtube.com/watch?v=RAMbIz3Y2JA
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1.Before law becomes a law what is it known as? bill
2. Explain the stages of the bill in the parliament-
i.First reading- The title of the Bill is formally read out. It is then printed and published.
ii.Second reading- The minister (or MP) in charge explains the purpose of the Bill and a debate
on its general principles follows. Provided the Bill survives any vote, it passes to the
Committee stage.
iii.Committee stage- The Bill is discussed in detail by a Standing Committee (20–50 MPs chosen
according to party strengths) or the whole House sitting as a Committee. The Bill is examined
clause by clause and any amendments are voted on
iv.Report stage- The Bill is formally reported to the House and amendments made in Committee
are considered
v.Third reading- The Bill is debated again in general terms. Only minor verbal amendments can
be made. If there is a majority in favour, the Bill proceeds to the other House.
vi.House of lords- The Bill passes through a similar procedure in the Lords. As a non-elected
body, it does not have an absolute right of veto, but it may delay the progress of a Bill.
vii.Royal assent- This is something of a formality as the Queen’s approval is never refused these
days. The Bill is now an Act of Parliament.
3. Why does the House of commons have the final say in a Bill?
All Bills go through both the House of Commons and the House or Lords before receiving the
Royal Assent. Normally, the consent of both Houses is required but the Lords lost its right to
reject legislation under the Parliament Act 1911, and the queen never refuses
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Because the member are elected
Making an Act of Parliament
1. Policy Development
Before the parliamentary legislative
process begins, usually a policy
objective will have been identified by
the Government (election manifesto or
included in an official consultation
document, known as a Green Paper).
Green Paper: puts forward tentative
proposals, which interested parties may
consider and give their views on.
The Green Paper will be followed by a
White Paper, which contains the specific
reform plans.
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Making an Act of Parliament Continued..
2. Bill
•Public Bill: affect the whole country
•Private Bill : matters relating to a
particular locality, mainly promoted by
local authorities seeking additional
powers to those granted by general
legislation
•Private member’s Bill: introduced by a
individual MP or private peer without
guaranteed government backing. Is
unlikely to become law unless the
government lends its support.
•Government bill: introduced by a
minister with the backing of the
government and are almost certain to
become law
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First reading: The bill arrives in the Lords. This stage is a
formality where the bill name is read in the chamber
Second reading: The main debate on the purpose and key
areas of the bill. At this stage members discuss any
concerns or specific areas where they think changes may
be needed. There are usually no votes (divisions) at this
stage
Committee stage: Detailed line-by-line scrutiny of the text
with amendments (suggested changes). Members start at
the front of the bill and work through to the end. Votes
may take place to decide whether to make the changes.
Any member may take part and there is no time limit
Report stage: A further opportunity to examine the bill and
make changes. More amendments are debated and further
votes take place to decide whether to make the changes
Third reading: A ‘tidying up’ stage, aiming to close any
loopholes. A final chance for amendments and votes
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Consideration of amendments: If the Lords has made changes to the draft law, it
is sent to the Commons to agree. The Commons may accept the Lords change,
make its own change in its place, or reject it. Any Commons changes are sent
back to the Lords. There may be several rounds of this process, known as ‘ping
pong’Royal Assent: When both Houses have agreed the text, the bill is
approved by the monarch and becomes a law or ‘Act of Parliament’
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Statutory Interpretation
•Courts find that the implications of a statute for the
case before them are not at all clear.
Example:
A broad term was used, leaving it to the user to
decide what it includes. Where a statute bans
vehicles from the park, courts would have to decide
whether it also prohibited skateboards, bikes or
roller skates.
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What is meant by interpreting the law?
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Rules of statutory interpretation:
I.Literal rule:
Apply the literal/ plain meaning- if the words of the statute are clear and unambiguous, the court must
give them their ordinary plain meaning, regardless of the result.
Whitely v Chapell (1868)
A statute aimed at preventing electoral malpractice made it an offence to impersonate ‘any person
entitled to vote’ at an election. The accused was acquitted because he impersonated a dead person
and a dead person was clearly not entitled to vote!
London and North Eastern Railway Co v Berriman (1946)
A railway worker was knocked down and killed by a train, and his widow attempted to claim damages.
The relevant statute provided that this was available to employees killed while engaging in ‘relaying or
repairing’ tracks; the dead man had been doing routine maintenance and oiling, which the court held
did not come within the meaning of ‘relaying and repairing.
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II. Golden rule:
Where the words of a statute are capable of two or more meanings, the judge must adopt the interpretation
which produces the least absurd result.
R v Allen (1872)
defendant was charged with the offence of bigamy under s.57 of the Offences Against the Person Act 1861.
The statute states 'whosoever being married shall marry any other person during the lifetime of the former
husband or wife is guilty of an offence'. Under a literal interpretation of this section the offence would be
impossible to commit since civil law will not recognize a second marriage any attempt to marry in such
Held:
The court applied the golden rule and held that the word 'marry' should be interpreted as 'to go through a
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III.I. Mischief Rule
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III.II Purposive Approach: takes a more liberal approach to statutory
interpretation than is traditionally associated with the mischief rule.
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IV. Ejusdem generis: General words which follow specific ones are taken to include only things of the
same kind. For example, if an Act used the phrase ‘dogs, cats and other animals’ the phrase ‘and
other animals’ would probably include other domestic animals, but not wild ones.
V. Expressio unius est exclusio alterius: Express mention of one thing implies the exclusion of another.
If an Act specifically mentioned ‘Persian cats’, the term would not include other breeds of cat.
VI. Noscitur a sociis: A word draws meaning from the other words around it. If a statute mentioned
‘cat baskets, toy mice and food’, it would be reasonable to assume that ‘food’ meant cat food, and
dog food was not covered by the relevant provision.
VII. Presumptions
Unless there are clear words to the contrary, the court will make a number of assumptions. Certain
points are implied in all legislation:
Existing rights are not to be interfered with laws which create crimes should be interpreted in favour of
the citizen where there is ambiguity;legislation does not operate retrospectively
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Delegated Legislation
•There are three main forms of delegated legislation:
•Produced, usually by specific government departments,
but these do not usually need to go through the
process of parliament.
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BREXIT
1.European travel rules change
the UK
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Custom
•Its main use is in cases where a traditional local practice –
such as fishermen being allowed to dry their nets on a
particular piece of land, or villagers holding a fair in a
certain place – is being challenged.
•To be regarded as conferring legally enforceable rights, a
custom must fulfill criteria's;
I. Time immemorial
II. Reasonableness
III. Certainty and clarity
IV. Locality
V. Continuity
VI. Exercised as of right
VII. Consistency
VIII. Obligatory
IX. Conformity with statute
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Equity
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EQUITY VS. EQUALITY
• WHAT IS THE DEFINITION OF EQUITY?
Equity, in its simplest terms as it relates to racial and social justice,
means meeting communities where they are and allocating resources
and opportunities as needed to create equal outcomes for all
community members.
• WHAT IS THE DEFINITION OF EQUALITY?
Equality means each individual or group of people is given the same
resources and opportunities, regardless of their circumstances. In social
and racial justice movements, equality can actually increase inequities
in communities as not every group of people needs the same resources
or opportunities allocated to them in order to thrive.
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• Equity recognizes each person has different circumstances and needs, meaning
different groups of people need different resources and opportunities
allocated to them in order to thrive.
• Equality, on the other hand, is giving everyone the exact same resources across
the board, regardless of individual or groups of people’s actual needs or
opportunities/resources already provided to them.
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Equitable Principles
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The common law failed to keep pace with the needs of an increasingly
complex society.
•The writ system was slow to respond to new types of action. If a suitable
writ was not available, an injured party could not obtain a remedy, no matter
how just his claim.
Why was it •The writ system was very complicated, but trivial mistakes could defeat a
claim.
developed? •Deficiencies in the common law: judges adhered rigidly to the laid-down
rules and procedures.
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•Promissory estoppel- is the idea that a promise can be
Equitable enforced by the law if, after relying on that promise, the
promisee is injured or suffers a resulting loss
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Treaties
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Ex-
• Convention on the Rights of Persons with Disabilities
• UN Convention on the Law of the Sea
• Convention to Eliminate All Forms of Discrimination Against Women
• Rome Statute for an International Criminal Court
• International Covenant on Civil and Political Rights (ICCPR)
• Covenant on Economic, Social and Cultural Rights (ICESCR)
• Convention on the Rights of the Child
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Thank you
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