New Concepts in Commerce
New Concepts in Commerce
New Concepts in Commerce
focus
On completion of this chapter you will have developed an
understanding of how laws affect individuals and groups and
regulate society.
outcomes
A student can:
5.1 Apply consumer, financial, business, legal and employment
concepts and terminology in a variety of contexts
5.2 Analyse the rights and responsibilities of individuals in a range
of consumer, financial, business, legal and employment contexts
5.3 Examine the role of law in society
5.4 Analyse key factors affecting commercial and legal decisions
5.5 Evaluate options for solving commercial and legal problems
and issues
5.6 Monitor and modify the implementation of plans designed to
solve commercial and legal problems and issues
5.7 Research and assess commercial and legal information using a
variety of sources
5.8 Explain commercial and legal information using a variety of
forms
5.9 Work independently and collaboratively to meet individual
and collective goals within specified timelines.
glossary
access: equal opportunity for all people to make use of
the legal system
adversarial system: system in which two opposing
parties present their arguments to a magistrate or
judge
anarchy: disorder or confusion due to the absence of
government or laws
appeal: an application for a legal decision to be reviewed
in a higher court
bail: to release an accused person who is awaiting trial.
Another person usually guarantees to pay a large sum
of money if the accused does not later appear in court
on a certain date
beyond reasonable doubt: the standard of proof
required in a criminal trial
committal hearing: a hearing in a Local Court to decide
whether there is enough evidence to put a person on
trial for an indictable (serious) offence
common law: system of law based on the previous
decisions of judges, or precedents
constitution: a document which sets out how a body or
a country will be governed
court: a place where people can resolve disputes relating
to law
defendant: the party in a criminal or civil trial against
whom an action has been brought
3.1
Reasons for laws
You have to obey rules at school or on the sporting
field. Society also has a set of rules called laws,
which everyone in the community is expected to obey.
For example, motorists have to obey traffic laws.
There are also laws to stop people under a certain age
from entering premises where alcohol is served. The
difference between a rule and a law is that the police
and the courts can enforce laws. Laws, therefore, are
legal rules. This means that a person can be taken to
court and penalised if he or she breaks the laws.
The law-breakers
We cant cross now, said Jamahl. The Dont Walk
sign is showing.
Its okay, just hurry, yelled Ben. There are no
cars coming.
When they reached the other side of the busy
intersection, a police officer approached them. Do
you realise that it is illegal to disobey a Dont Walk
sign? If I see you breaking the law again, I will have
to fine you.
Jamahl and Ben were apologetic. Everyone does
it so we thought it would be okay, said Ben. We
wont do it again.
Thats good, said the police officer. The law is
there to protect you as well as drivers.
As they walked away, Ben and
Jamahl both realised they knew very
little about the law. They wanted to
know more.
70
New Concepts in Commerce
UNDERSTAND
1 What are laws?
2 How are laws of the land different from school or
sport rules?
3 What is meant by the term anarchy?
4 Why does society need laws?
5 Imagine you have been elected ruler of
E-LEARNING
10 Use the Internet to find out the age at which a
3.1
71
Law and society
3.2
The legal system
The law affects almost everything you do.
If you buy a mobile phone and it does not
work properly, there are laws that can
help you get it fixed, get an exchange or
receive a refund. If you rent a flat,
there are laws that say what you and
the landlord can and cannot do. If
you have an accident at work, there
are laws that say who has to pay
your doctors bills.
In each of these situations, the law
is there to protect you. The law therefore empowers you to seek a solution to
your problem. Without the protection of
a legal system, enforcement of a persons
rights would be based on physical violence:
might is right. In this situation, most people would
be powerless. Of course, the law operates in the
background, waiting for you to access it if you
should need its assistance.
Every society has developed its own set of laws.
These laws develop over time and form a countrys
legal system. Australia has a legal
system that began in England.
The legal system consists of a
number of institutions such
as parliaments, courts and
prisons. It also includes people
who work within this system:
judges, lawyers, police officers,
prison officers and politicians.
Legal advisers
specialise in the law
Lawyers (solicitors and
barristers) provide legal advice and
assistance
They represent their clients and conduct
their cases at a court hearing
Law-breakers are
punished by court
Prisons hold
people convicted
of a crime
Prison staff
manage the prison
The people and institutions that make up Australias legal system
72
New Concepts in Commerce
UNDERSTAND
1 In the past, disputes were often resolved with the
2
3
4
COMMUNICATE
6 As a class, brainstorm how laws empower
INVESTIGATE
8 Research the legal system of another country and
WORKSHEETS
3.2
73
Law and society
3.3
The court structure hierarchy
Often, the parties in a
dispute will settle the
issues themselves
without going to
court. However,
many disputes eventually require the
legal system to help
resolve the issues. This
is the role of the court
system. There is a variety of courts: which
one you use will depend
on which state you live in
and the nature of the
legal dispute.
Court hierarchy
If you break a minor rule during a lesson, your
teacher will decide your guilt and punishment. For
a more serious classroom offence, either your level
coordinator or the deputy principal will deal with the
matter. For very serious offences you will be sent to
the principal. The court system operates under a
similar hierarchy.
There are many courts at the bottom of the hierarchy. The number decreases the further up you go
until you reach the High Court, of which there is
only one. A serious issue facing our society is the cost
of a trial, which becomes more expensive if the trial
is held in a court that is higher up the hierarchy.
74
New Concepts in Commerce
UNDERSTAND
1 Name the four different levels of courts.
2 Why do we have a number of courts?
3 Which court is the highest in Australia?
4 Why do you think courts are
likely to be heard?
(a) A murder trial
(b) An appeal from the NSW
Supreme Court
(c) A hearing for a minor traffic
offence
(d) An investigation into a
suspicious death
(e) An armed robbery trial
(f) The preliminary hearing of a
rape case
(g) A civil dispute between
business partners involving $100
million
(h) A case dealing with an aspect of
the Australian Constitution
6 Explain the difference between a judge and a
magistrate.
INVESTIGATE
7 Imagine you are a magistrate hearing a case against
3.3
75
Law and society
3.4
The role of court personnel
After being arrested, you may end up in court if the
police feel they have a strong case against you. If
you plead not guilty, a trial will be conducted. It
will take place in a courtroom. In Australia,
the method of trial used is called the
adversarial system. This means
two opposing sides will present their
arguments to an independent
umpire a judge or a magistrate.
Courts can be very tense
places. The decisions made in
them can have an enormous
impact on peoples lives. Courts
and the officials who work in
them deal with real-life dramas.
While each courtroom official
has a specific role to play, they
are all attempting to achieve
the same objective: justice.
The main roles include
magistrate,
judge,
juror,
prosecutor, and counsel for
the defence.
Magistrate as
umpire
A magistrate is in charge of
the lowest court, where the
atmosphere is much more
informal. He or she does not
wear a wig or a robe, and is
a qualified legal practitioner. People address a
magistrate as Your Honour.
After hearing the cases
presented by both sides, the
magistrate decides whether a
person is guilty or innocent.
If people are found guilty,
the magistrate decides the
punishment or (in civil
cases) how much money
to award as damages. A
magistrate will refer very
serious criminal offences
to the District Court.
Judge as umpire
whos who in a judges court
(criminal trial)
76
New Concepts in Commerce
The tipstaff
helps the
judge keep
order in the
court.
UNDERSTAND
1 Explain how the adversarial
system operates.
2 List the main courtroom
officials.
3 How many jurors are there
5
6
A prison officer
from the prison
where the accused
has been held
8
The
accused
for:
(a) a civil case?
(b) a criminal case?
How are magistrates
and judges addressed in
court?
When can a judge question
a witness?
What is the jurys
responsibility in a criminal
trial?
What is the difference
between the:
(a) magistrate and judge?
(b) defendant and plaintiff?
(c) prosecution and counsel
for the defence?
Compare the role of a
magistrate and a judge.
What is the role of the
counsel for the defence?
COMMUNICATE
10 In small groups,
77
Law and society
3.5
Juries
The idea of being tried by everyday members of the
community has its origins in England during the
reign of Henry II (115489 AD). He appointed
advisers who visited country towns to hold a court
and hear cases. He also introduced a system of
trial by jury. By the 1500s, England had developed a common legal system based on the right of a
person to be considered innocent until proven guilty.
As a juror,
I help decide on a verdict in a
specific case. If your name is on the
electoral roll, you are eligible to be selected
for jury duty. A court officer called the sheriff
selects names at random and those selected are
notified by mail. In a criminal case, the jury consists of
12 people but, in a civil matter, only six people decide how
much money should be paid for damages. In a criminal trial,
I have to listen to all the evidence and to the judges
instructions and then decide beyond reasonable doubt
whether a person is guilty or not. The decision must be
unanimous; that is, all 12 jurors must come to the same
decision before a judge can hand down a sentence. My main
task then is to decide upon the truth from all the
information presented. This is not always easy to
do. Some people such as doctors or people
over 65 years of age can be excused from
jury duty. Other people, such as anyone
who works in the legal system or has a
criminal record are ineligible.
Analyse a cartoon
Examine the cartoon below.
1. In the second frame, all the people who are sitting
together make up the
2. If the cartoon was set in Australia, why would this
not be a local court? Would the person presiding
over this court be a judge or magistrate?
3. Explain the problem that has occurred in the
selection of the jury.
4. Outline the difficulties faced by a jury in reaching
its verdict.
78
New Concepts in Commerce
UNDERSTAND
1 What is the role of the jury?
2 Who may be called upon to do jury duty? What
3
4
5
COMMUNICATE
8 In groups of three or four, discuss these
INVESTIGATE
7 Find cases where the jurys verdict was later found to
questions.
(a) Should the membership of a jury be restricted
by age and/or education?
(b) Should jury members be allowed to publicly
discuss the reasons for their decision after a case
has finished?
(c) Should jury decisions always be unanimous?
Choose a spokesperson to share the groups
comments with the rest of the class.
E-LEARNING
9 Divide the class into two teams. Each person in
79
Law and society
3.6
Areas of law
There are two main branches of the law that operate
in society. The first set of laws regulates peoples
behaviour with other individuals. It is known as
private law. The second broad area of law regulates
Civil law
For example, imagine you discover half a decomposed snail at the bottom of a soft-drink bottle from
which you have just drunk. You are then violently sick
and suffer serious stomach illness. You decide to sue
the manufacturer for negligence meaning that the
manufacturer did not take enough care to prevent an
injury. You, the plaintiff, go to court to prove your
case. You ask a judge to order the soft-drink manufacturer, the defendant, to pay you compensation. The
plaintiff does not always win such cases. Sometimes
the judge decides that the plaintiff is in the wrong and
can order him or her to pay the defendants legal costs.
In civil cases . . .
Criminal law
Criminal law, which is part of public law, protects
individuals from others doing the wrong thing. It
outlines the way people should act what they can
and cannot do. Some of the most common crimes
In criminal cases . . .
80
New Concepts in Commerce
COMMUNICATE
4 Select a partner and cut out five newspaper articles
(a) private and public law? (b) civil and criminal law?
2 Explain the difference between:
3.4
3.5
3.6
81
Law and society
3.7
How laws are made
There are two ways of making laws. Those laws
that are written down beforehand are called
statute law, or Acts of Parliament. Alternatively,
they can be developed piece by piece by judges as
they come across new problems in the cases they
hear. These laws are referred to as common
(judge-made or case) law. In Australia, the law is a
combination of both types.
Common law
Common law today continues to mean the decisions
given by judges. It may occur because a judge has to
decide on a case where there is no existing law that
regulates it. Consequently, it is up to the judge to
make a decision. A record of these decisions will be
placed in law reports so that they can be referred to
when needed. These decisions are known as legal
precedents.
Judges do not deliberately attempt to change or
make a law but this may happen as they try to
resolve the dispute before them. For example,
imagine you have a brother and sister who constantly argue over which television program to
watch. You resolve the issue by telling them that
each person can take it in turns to select a program. You have acted like a judge and made a new
law. Your brother and sister will now be expected
to obey this new law.
82
New Concepts in Commerce
Precedent
If your uncle bought your eldest sister a digital
camera for her eighteenth birthday, you might
expect to receive a digital camera for your eighteenth birthday, or at least a present of equivalent
value. This is because your uncle set a precedent
and you expect to be treated the same. Precedent
works the same way in law.
Traditionally, judges will give similar decisions in
cases that are alike. This is known as the act of
precedent. If a judge makes a decision in a case
83
Law and society
Statutory interpretation
Courts also make laws when they interpret (decide
on the meaning of) words in a law made by Parliament. Laws made by Parliament often use complicated language. This language is used in an
attempt to fully explain what the law means and to
try to cover all the possible situations to which the
law is relevant. Consequently, the language can be
difficult to understand.
Although only Parliament can change the wording
of a law, when a court interprets a word, this new
meaning applies as law from then on. The principle
of precedent applies to interpretation as well.
Therefore, once a judge decides on the meaning of a
word or phrase, that meaning becomes law and
must be followed by other judges in lower courts.
Statute law
The laws created by Parliament have the highest
status in the country and must be obeyed by all
people. Parliament makes most of the laws. Both
the Federal Parliament in Canberra and State
Parliament in Macquarie Street, Sydney, make
laws called statutes or legislation. Once each law
has been passed, it is binding on all courts and
judges. Most laws in Australia are made this way.
It would take far too long for Parliament to decide
all the details of the law, so the Act provides for the
appropriate minister or department to work out the
fine details regulations that, when passed,
become laws.
Parliament is often referred to as the supreme
law-making authority because it can virtually
make laws on whatever it likes, change laws when
it wants to and pass an Act to overcome the effects
of precedent. Statute law will always succeed over
common law and no court has the power to change
it.
The Australian Constitution limits the powers of
the Federal Parliament. State Parliament is
restricted by the states Constitution and, to some
extent, the Australian Constitution as well.
84
New Concepts in Commerce
Parliament is often referred to as the supreme lawmaking institution because it can make laws on virtually
anything and change (amend) laws when it wants to.
UNDERSTAND
1 What is the difference between statute law and
INVESTIGATE
12 Find an example of a constitution that affects you.
85
Law and society
3.8
How a bill becomes a law
Without a set of rules in a society, there would be
chaos. Rules usually exist to create and maintain a
sense of order. However, rules must work, or they
are useless. Every country has its own laws legal
rules that can be enforced by a court of law. These
laws vary according to the beliefs, attitudes and
culture of a country. Most laws in Australia are
made by the federal and state parliaments. In fact,
making laws is their main job.
There are very definite procedures for how laws
are made or changed. Before any proposed laws can
become Acts of Parliament, they have to be debated
86
New Concepts in Commerce
UNDERSTAND
1 Why do you think it is so important for a Bill to be
debated so often?
2 Would you say the process by which laws are made in
games and type out the rules. Swap your board game
with that of another group.
5 Roleplay the second reading in the House of
Representatives of a Bill for a proposed new law that
the class decides is important.
(a) Divide up the different roles and responsibilities.
Debate the Bill after all class members have read a
typed copy of it. Remember to ask the Speakers
permission to speak, and to obey his or her
instructions if called to order.
(b) After the debate conduct a vote by moving to the
right (yes) or the left (no) of the room. Did the Bill
pass its second reading? How much was your
opinion altered by the comments of others? Is this
a good or a bad thing?
87
Law and society
3.9
The relationship of laws to
values, morals and ethics
Within society, there are often groups that have different standards of morality and ethics. This makes
it difficult to create a set of laws that reflects
everyones values. Consequently, as society
changes, so too must the laws.
88
New Concepts in Commerce
UNDERSTAND
1 Give an example of a society that has placed a different
89
Law and society
3.10
How laws are changed
As a member of the community, you
can have a say in making laws.
Through signing petitions, writing
letters, personal visits, participating
in demonstrations or joining lobby
groups, pressure can be applied to
politicians to introduce new laws or
change existing ones.
35
30
Percentage
25
Fantasy violence
Sports games (some
of which c
General entertainment
Violence to humans
Educational
20
15
10
5
0
Category
90
New Concepts in Commerce
CHANGING LAWS
Video game
manufacturer disputes
findings
By Marion Newell,
Senior Lecturer in Legal Studies
The law is a set of dynamic legal rules. This means that
new laws develop and old ones are scrapped as society
changes or its values change. For example, for a woman
to swim without neck to knee bathers
was once against the law.
Often, citizens will pressure the
government to amend (or
change) an existing law or introduce a new one. If the government is convinced of the
citizens argument, it will do
this. Laws can also come
about when a judge makes
a decision after hearing a
case. A law is made or
changed when judges
give the reasons for their
decision on a case. This is
known as common law.
UNDERSTAND
1 Do you think Ms Tortini and Ms Winston are biased
COMMUNICATE
4 Form groups of three or four. Imagine your group is
3.7
91
Law and society
3.11
Accessing the law
One of the main functions of the legal
system is to safeguard peoples rights.
The legal system can only perform this
protective role if people have equal
access to the law. Access means equal
opportunity for all people to make use
of the legal system. If some people are
unable to access the law, then they are
discriminated against and consequently denied justice. Ideally, everyone
should have equal access. However,
in reality there are a number of
factors that create barriers to
accessing the law.
Legal Aid New South Wales has an important role in helping people
who might otherwise have difficulty accessing the law, including:
financially disadvantaged people
disabled people
people from non-English speaking backgrounds
women
Aboriginals and Torres Strait Islanders
people who are institutionalised.
Cost
Not everyone can afford legal advice and representation. Obtaining legal advice can be very expensive. Fees charged by lawyers and barristers are
very high. If a legal case is prolonged or is subject
The cost of legal representation can deter people from accessing the law.
92
New Concepts in Commerce
Time
transparency in educational
The prospect of a lengthy trial is another barrier to equal access to the law. The saying
justice delayed is justice denied means
that if a trial drags on for a long period
then people are not treated fairly. For
example, a woman who sued a tobacco
company for compensation for the terminal cancer she argued was caused by
cigarette smoking died before the lengthy
case was settled. The case had dragged
on through the court system for
nine years!
deliberations is predicated on
operational efficiencies.
Do you agree?
Procedures
When confronted with a legal
issue, you face a number of
problems. Firstly, because of
your limited knowledge of the
law, you may not even be aware
that you have certain rights or
responsibilities. Your access may be
restricted because of your ignorance
of the law. If you have to go to court,
the procedures can be intimidating and confusing.
Language
If English is not your first language, it may be difficult to understand the legal terminology and procedures. Without the assistance of an interpreter,
you may not understand what is going on during a
court hearing. Even finding help from a lawyer or
the translation of legal documents may pose a
problem. Not being able to communicate your needs
can limit your access to the law.
COMMUNICATE
8 In small groups, propose some solutions to
UNDERSTAND
1 What is meant by the term:
2
3
4
5
6
7
(a) access?
(b) discriminate?
List the four barriers that people face in accessing
the law.
Explain in your own words the expression justice
delayed is justice denied.
Why is it important for people to have equal access
to the law?
Refer to the Com Fact above about the Aboriginal
boy. Do you think the outcome of his case was
unjust? Why?
Choose two cases of discrimination you know
about. Write five lines on each.
How does the present legal system unintentionally
discriminate against some people?
93
Law and society
3.12
Issues of fairness in using the law
Imagine you and your friend are discovered cheating
during an exam. After an investigation, the school
decides to punish you by deducting 30 marks from
your final score. However, your friend has only 10
marks deducted. You would probably feel unfairly
treated because of the injustice of the two punishments. This example shows that the law should
ensure that people who break the same law are
treated in a similar way. This is known as justice.
Analyse a cartoon
Justice
There is an old saying that all people are equal
before the law. For this to happen, laws should
treat all people equally, regardless of whether
they are male or female, rich or poor,
white or black, young or old. This
means that the interpretation and
enforcement of the law should not
discriminate unjustly.
However, in reality, the legal
system may not always be able to
provide justice for all. Consequently, there are certain groups
in society that may experience
difficulties in achieving equal
access to the law. The main
groups to experience this type
of
discrimination
include:
people in poverty; young
people; Indigenous peoples,
especially those living a traditional lifestyle; and non
English speaking migrants.
Symbols of justice
The symbols of justice attempt
to reinforce the idea of fairness
and equality. The symbols are:
1. the scales, which represent
the legal system weighing up
both sides of the argument
equally
2. the sword, which symbolises
the punishment to be imposed
on any guilty party
3. the blindfold, which demonstrates that justice is impartial
it is not influenced by
wealth, race, religion, gender
or status and that all people
will be treated as equal.
One law for the rich and another for the poor
94
New Concepts in Commerce
Analyse a cartoon
A courtroom hearing
95
Law and society
LawLink NSW
The New South Wales Attorney Generals Department provides free legal information, referral or
advice either by phone or through their website.
LawAccess NSW
LawAccess is a free service providing a wide range of
information on legal and related assistance services
in New South Wales. LawAccess can be contacted by
phone or via their website. They also offer a service
for people with hearing or speech difficulties, and
translation and interpreter services.
Chamber magistrate
Free advice about legal matters can also be obtained
from the Chamber Magistrate and his or her staff,
whose office will be located in the local courthouse.
These court officials have legal training and are
particularly helpful in explaining the technical
features and procedures of the legal process.
96
New Concepts in Commerce
UNDERSTAND
1 Explain the symbolism attached to the:
Address
LawAccess, go to www.jaconline.com.au/commerce,
choose weblinks and click on the relevant links for this
textbook. Present a two-minute oral presentation on
one area of interest selected from any of these
websites.
11 Outline the situations for which legal aid is available.
You will find all the information you need by going to
www.jaconline.com.au/commerce, selecting
weblinks and clicking on the LawLink link for this
textbook.
WORKSHEETS
3.8
3.9
Telephone number
Legal crossword
Topic test law and society
Website address
1. NSW Attorney
Generals
Department
Free legal
information, referral
or advice
2. LawAccess
www.lawaccess.nsw.gov.au
Assistance provided
5. NSW Aboriginal
Legal Service
6. Legal Information
Access Centre
7. Local Chamber
Magistrate
97
Law and society
2.
3.
4.
5.
6.
7.
9.
10.
murder
judge
guilty
counsel for the defence
prosecution
jury
appeal
Areas of law
8.
law?
14 Identify those groups in society that may have
appeal
committal hearing
trial
anarchy
magistrate
98
New Concepts in Commerce
Informed citizen
participation
following tasks.
(a) Underline the words in the article that
indicate this is a criminal case.
(b) Why do you think the magistrate placed the
accused under a curfew?
(c) What is the role of the magistrate in this
case?
(d) Why has the court ruled that the accused is
not to be identified?
(e) If the boy is committed for trial, in which
court would the trial take place?
(f) If the boy is found to be
guilty, what sentence
would you impose? Be
prepared to justify
your decision.
(g) Until the age of 18, a
person is considered a
minor and is entitled
to special protection
from the legal system.
Do you think this is
fair?
99
Law and society