CIMA Exam Practice Kit: Business Law

Chapter 1: The English Legal System

Overview

Comparison of Criminal and Civil Law.

(a)

Purpose

Criminal punishment of the wrongdoer

Civil compensation of the victim

(b)

Case brought by

Criminal the state

Civil the victim

(c)

Action

Criminal prosecution

Civil suing

(d)

Burden of proof

Criminal beyond reasonable doubt

Civil on a balance of probabilities

(e)

Court

Criminal Magistrate's Court, Crown Court

Civil County Court, High Court

(f)

Outcome if defendant loses

Criminal imprisonment, fine, community service, probation

Civil damages, specific performance, injunction

Judicial Precedent

Sources of Law

There are two main sources of law in the UK.

  1. Acts of Parliament (sometimes called statutes).

  2. Case Law developed by the courts.

The Meaning of a Judicial Precedent

When a Judge decides a case before him, his judgment will have to be based on some legal principle or process of legal reasoning. It is desirable that in all the future cases of a similar kind the same process of legal reasoning should apply.

Case Law is based on two fundamental principles.

  1. The doctrine of binding precedent.

  2. The hierarchy of the Courts.

A Judge is bound to apply the rules of law contained in earlier decisions of a higher Court and usually those of a Court of equal standing.

Not everything said is binding in later cases. We have to distinguish between ratio decidendi the legal principle on which the Judge bases his decision and obiter dicta other remarks made in passing.

Ratio Decidendi

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