CAMS Level IIntroduction to Business Law and Ethics
Chapters

CAMS Level I

Introduction to Business Law and Ethics cheat sheet

Every chapter's key points, formulas and definitions on one page, for the last week before the exam. Each heading links to the chapter that explains it.

Nature and sources of law

  • Law is the set of rules a state makes or recognises to govern behaviour, backed by the courts' power to enforce them; enforcement is what separates a legal rule from a merely moral or social one.
  • Criminal law punishes a wrong against the public and must be proved beyond reasonable doubt; civil law compensates the injured party on a balance of probabilities, so one incident can give rise to both.
  • Section 3 of the Judicature Act puts the Constitution first, then all other written law, then the common law, equity and the statutes of general application in force in England on 12 August 1897, so far as Kenya's circumstances permit.
  • African customary law guides the courts in civil cases only, and gives way where it is repugnant to justice and morality or inconsistent with written law, as Rono v Rono shows for a custom excluding daughters.
  • Only the ratio decidendi of a higher court's decision binds; obiter dicta, dissents and the decisions of foreign courts or courts of equal rank are persuasive only.

Key terms

Law
The rules a state makes or recognises to govern how people within its society must behave, backed by the courts' power to actually enforce them.
The jurisdiction of the state
The reach of a state's own courts and institutions to make and enforce law, normally its own territory and its own citizens wherever in the world they happen to be.
Enforcement
The state making people actually comply, through its courts, its police, and the rest of its machinery, exactly what separates a legal rule from one that is only moral or social.
Administrative law
Governs the powers, procedures and accountability of government departments and public bodies, the whole subject of the chapter on administrative law.
Revenue law
Governs how taxes and duties are assessed and collected, the Income Tax Act and the Value Added Tax Act being the obvious examples.
Criminal law
Treats conduct as an offence against the state itself, and provides for its punishment, prosecuted in the Republic's own name rather than by the victim personally.
Civil law
Settles disputes between private persons, a contract dispute or a tort claim, remedied through damages or another court order rather than punishment.
Common law
Built up by judges through the cases they actually decide rather than legislated by Parliament, inherited from England and reshaped through Kenya's own precedent since.
Statutory law
Whatever Parliament, or a county assembly, formally enacts, the main channel through which new law actually enters a modern system.
Constitutional law
The rules, found chiefly in the Constitution of Kenya 2010 itself, that set up the organs of government, share power between them, and guarantee fundamental rights.
Private and public law
Private law governs relationships between individuals, contract, tort, property among them; public law governs the state's own relationship with individuals and between its own organs, constitutional and administrative law belonging here.
The Constitution of Kenya 2010
Kenya's supreme law under Article 2, any other law that conflicts with it is void to that extent, and it binds every single person in the country.
Legislation
Acts passed by Parliament and by the county assemblies, the main channel new law actually flows through, produced by the formal legislative process.
Delegated legislation
Rules, regulations and orders a body (a Cabinet Secretary, most often) makes under power an Act of Parliament has already handed it, letting detailed or technical rules be set without Parliament having to pass a fresh Act every time.
Common law and doctrines of equity
Two strands of English judge-made law received into the Kenyan system to the extent local circumstances allow: common law from the ordinary courts, and equity, developed specifically to soften common law's own rigidity.
African customary law
A community's own customs, applied chiefly to personal status, marriage, divorce and succession among those subject to it, provided it is not repugnant to justice and morality and does not conflict with any written law.
Religious laws: Islamic law and Hindu law
Personal-law systems that apply to adherents of a given faith in defined matters, Islamic law's presence in the Kadhis' Courts over Muslim personal status being the most visible example.
Judicial precedent
Stare decisis in practice: a higher court's ruling on a point of law binds a lower court deciding a later case on materially similar facts, the mechanism that keeps the law consistent and predictable over time.

The rest of the sheet covers

  • The court system in Kenya
  • Administrative law
  • Alternative dispute resolution
  • The law of tort
  • Contract and sale of goods
  • Foundations of ethics
  • Ethics and the law
  • Exam technique and revision
  • Glossary
  • Table of cases