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Paper 2

INTRODUCTION TO LAW AND ETHICS

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This unit covers the competencies required to apply law and ethics in an organisation. Competencies include: demonstrating foundational concepts in business law and ethics, illustrating the structure of court systems in Kenya, applying legal requirements in establishing a business, addressing civil wrongs using law of torts, preparing commercial contracts, applying partnership law in registering and administration of a partnership business and applying property law in registering interest in property.

On completion, a candidate should be able to

  • Demonstrate foundational concepts in Business law and ethics
  • Illustrate the structure of court system in Kenya
  • Apply legal requirements in establishing a business
  • Address civil wrongs using law of Torts
  • Preparing a commercial contract and identifying the major laws regulating business
  • Apply partnership law in registering and administration of a partnership business
  • Apply property law in registering interest in property

Content

  1. 1

    Demonstrate foundational concepts in Business law and ethics

    1. 1.1

      Nature, purpose and classification of law

      1. 1.1.1

        Definition key terms

        1. 1.1.1.1

          Law

        2. 1.1.1.2

          The jurisdiction of the state

        3. 1.1.1.3

          Enforcement

      2. 1.1.2

        Nature of law

      3. 1.1.3

        Purpose of law

      4. 1.1.4

        Classification of law

        1. 1.1.4.1

          Administrative law

        2. 1.1.4.2

          Revenue law

        3. 1.1.4.3

          Criminal law

        4. 1.1.4.4

          Civil law

        5. 1.1.4.5

          Common law

        6. 1.1.4.6

          Statutory law

        7. 1.1.4.7

          Constitution law

        8. 1.1.4.8

          Private and public law

      5. 1.1.5

        Law and morality

      6. 1.1.6

        Sources of law

        1. 1.1.6.1

          The Constitution of Kenya 2010

        2. 1.1.6.2

          Legislation

        3. 1.1.6.3

          Delegated legislation

        4. 1.1.6.4

          Common law and doctrines of equity

        5. 1.1.6.5

          African customary law

        6. 1.1.6.6

          Religious laws: Islamic law and Hindu law

        7. 1.1.6.7

          Judicial precedent

      7. 1.1.7

        General rules of international law

      8. 1.1.8

        Administrative law

        1. 1.1.8.1

          Meaning of administrative law

        2. 1.1.8.2

          Functions of administrative law

        3. 1.1.8.3

          Control of administrative bodies: executive, legislative and judicial

      9. 1.1.9

        Natural justice

      10. 1.1.10

        Constitutional concepts

      11. 1.1.11

        Doctrine of separation of powers and independence of the judiciary

      12. 1.1.12

        Judicial control of the Executive

    2. 1.2

      Foundations of Ethics

      1. 1.2.1

        Ethical norms

      2. 1.2.2

        Theories morality

      3. 1.2.3

        Universal moral principles

      4. 1.2.4

        Ethical dilemmas and unethical conduct

      5. 1.2.5

        Code of ethics

      6. 1.2.6

        Integrity

      7. 1.2.7

        Confidentiality

      8. 1.2.8

        Independence

      9. 1.2.9

        Conflict of Interest and Related Party Transactions

      10. 1.2.10

        Whistle blowing and relevant protection mechanisms

    3. 1.3

      Solving disputes through alternative dispute (ADR) resolution mechanisms

      1. 1.3.1

        Nature of alternative dispute resolution

      2. 1.3.2

        General principles of ADR Negotiation

      3. 1.3.3

        Mediation

      4. 1.3.4

        Traditional dispute resolution mechanisms

      5. 1.3.5

        Arbitration

    4. 1.4

      Linking ethics, laws and regulations

      1. 1.4.1

        Legislative provisions on ethical conduct

      2. 1.4.2

        The Constitution

      3. 1.4.3

        Public Officers Ethics Act

      4. 1.4.4

        Leadership and Integrity Act, other legislative and regulatory requirements

      5. 1.4.5

        Role of KASNEB, professional bodies and other regulatory bodies in enforcing ethical conduct

      6. 1.4.6

        Penalties and sanctions for unethical conduct

    5. 1.5

      Emerging issues and trends

      1. 1.5.1

        Online commercial transactions

      2. 1.5.2

        Impact of COVID-19 pandemic on commercial transactions

      3. 1.5.3

        Online business registration services

  2. 2

    Illustrate the structure of court system in Kenya

    1. 2.1

      The court system

      1. 2.1.1

        Establishment

      2. 2.1.2

        Structure

      3. 2.1.3

        Composition

      4. 2.1.4

        Jurisdiction of courts

      5. 2.1.5

        Supreme Court

      6. 2.1.6

        Court of Appeal

      7. 2.1.7

        High Court

      8. 2.1.8

        Employment and Labour Relations Court

      9. 2.1.9

        Environment and Land Court

      10. 2.1.10

        Magistrates Court

      11. 2.1.11

        Court Martial

      12. 2.1.12

        Kadhis’ Court

      13. 2.1.13

        Tribunals

  3. 3

    Apply legal requirements in establishing a business

    1. 3.1

      The law of persons

      1. 3.1.1

        Natural persons

      2. 3.1.2

        Nationality, citizenship and domicile

      3. 3.1.3

        Artificial person

      4. 3.1.4

        Unincorporated associations

      5. 3.1.5

        Incorporated associations

  4. 4

    Address civil wrongs using law of Torts

    1. 4.1

      The law of tort

      1. 4.1.1

        Nature of tort

      2. 4.1.2

        Types of tort

        1. 4.1.2.1

          Negligence

        2. 4.1.2.2

          Vicarious liability

        3. 4.1.2.3

          Occupiers’ liability

        4. 4.1.2.3

          Strict liability

    2. 4.2

      General defences of tort

    3. 4.3

      Proving negligence

      1. 4.3.1

        Duty

      2. 4.3.2

        Breach of duty

      3. 4.3.3

        Causation

      4. 4.3.5

        Damages

    4. 4.4

      Defamation

    5. 4.5

      Limitation of actions

  5. 5

    Preparing a commercial contract and identifying the major laws regulating business

    1. 5.1

      The law of contract

      1. 5.1.1

        Definition of contract

      2. 5.1.2

        Classification of contracts

      3. 5.1.3

        Essentials of a valid contract

      4. 5.1.4

        Terms of a contract

      5. 5.1.5

        Vitiating elements of a contract

      6. 5.1.6

        Discharge of contract

      7. 5.1.7

        Remedies for breach of a contract

      8. 5.1.9

        Limitation of actions

    2. 5.2

      Sale of goods law

      1. 5.2.1

        Definitions:

        1. 5.2.2.1

          Sale of goods contract

        2. 5.2.1.2

          Property in goods

        3. 5.2.1.3

          Consideration

        4. 5.2.1.4

          A contract of sale

        5. 5.2.1.5

          Agreement to sell

        6. 5.2.1.6

          Nemo dat

      2. 5.2.2

        Nature of the contract

      3. 5.2.3

        Formalities of the contract

      4. 5.2.4

        Terms of the contract

      5. 5.2.5

        Implied terms by statute

      6. 5.2.6

        Lien remedy

      7. 5.2.7

        Personal remedy

      8. 5.2.8

        Real remedy

    3. 5.3

      Hire purchase law

      1. 5.3.1

        Nature of the hire purchase contract

      2. 5.3.2

        Difference between hire purchase and conditional sale (credit sale)

      3. 5.3.3

        Formation of the hire purchase contract

      4. 5.3.4

        Implied terms of the hire purchase contract

      5. 5.3.5

        Rights and duties of the parties

      6. 5.3.6

        Termination and completion of the hire purchase contract

    4. 5.4

      The law of agency

      1. 5.4.1

        Meaning and nature of the agency contract

      2. 5.4.2

        Principle

      3. 5.4.3

        Agent

      4. 5.4.4

        Types of agents

        1. 5.4.4.1

          General agent

        2. 5.4.4.2

          Special agent

        3. 5.4.4.3

          Universal agent Brokers

        4. 5.4.4.4

          Commission Agents

        5. 5.4.4.5

          Forwarding Agents

      5. 5.4.5

        Creation of agency

        1. 5.4.5.1

          Express Agreement

        2. 5.4.5.2

          By Implied Agreement

        3. 5.4.5.3

          By Necessity

        4. 5.4.5.4

          By Ratification

        5. 5.4.5.5

          Duties and rights of an agent

      6. 5.4.6

        Duties and rights of a principal

      7. 5.4.7

        Termination of agency

    5. 5.5

      Contract of Indemnity and Contract of Guarantee

      1. 5.5.1

        Nature of the contracts

      2. 5.5.2

        Rights and duties of the parties

      3. 5.5.3

        Termination of the contract

      4. 5.5.4

        Remedies for breach of contract

    6. 5.6

      The law of insurance

      1. 5.6.1

        Definition of key terms

      2. 5.6.2

        Insurance

      3. 5.6.3

        Insurer

      4. 5.6.4

        Insured

      5. 5.6.5

        Premiums

      6. 5.6.6

        Claims

      7. 5.6.7

        Nature of the contract

      8. 5.6.8

        Classification of insurance contracts

      9. 5.6.9

        Formation of the contract

      10. 5.6.10

        Essentials of an insurance contract

      11. 5.6.11

        Principles of insurance

      12. 5.6.12

        Termination of the contract

    7. 5.7

      Negotiable instruments

      1. 5.7.1

        Nature and characteristics of negotiable instruments

      2. 5.7.2

        Negotiability of the instrument

      3. 5.7.3

        Types negotiable instruments

        1. 5.7.3.1

          Cheques

        2. 5.7.3.2

          Promissory notes

        3. 5.7.3.3

          Bills of exchange

      4. 5.7.4

        Obligations of the parties

      5. 5.7.5

        Remedies for breach of duties

  6. 6

    Apply partnership law in registering and administration of a partnership business

    1. 6.1

      Partnership law

      1. 6.1.1

        Nature of partnership

      2. 6.1.2

        Types of partnerships

        1. 6.1.2.1

          General

        2. 6.1.2.2

          Limited

        3. 6.1.2.3

          Limited liability partnerships

      3. 6.1.3

        Rights, duties and liabilities of existing, incoming and minor partners

      4. 6.1.4

        Dissolution of a partnership

        1. 6.1.4.1

          With court intervention

        2. 6.1.4.2

          Without court intervention

  7. 7

    Apply property law in registering interest in property

    1. 7.1

      The law of property

      1. 7.1.1

        Definition of key terms

        1. 7.1.1.1

          Intellectual property

        2. 7.1.1.2

          Real property

      2. 7.1.2

        Classification of property

        1. 7.1.2.1

          Real and personal

        2. 7.1.2.2

          Movable

        3. 7.1.2.3

          Immovable tangible

        4. 7.1.2.4

          Intangible

      3. 7.1.3

        Property in land

        1. 7.1.3.1

          Private

        2. 7.1.3.2

          Public

        3. 7.1.3.3

          Community

      4. 7.1.4

        Estate in Land

        1. 7.1.4.1

          Freehold

        2. 7.1.4.2

          Leasehold

      5. 7.1.5

        Interests in land

        1. 7.1.5.1

          Servitudes encumbrances

        2. 7.1.5.2

          Easements

        3. 7.1.5.3

          Analogous rights

    2. 7.2

      Intellectual property

      1. 7.2.1

        Types of intellectual properties patents

        1. 7.2.1.1

          Trademarks

        2. 7.2.1.3

          industrial designs

      2. 7.2.2

        Registration of intellectual properties

        1. 7.2.2.1

          Procedure for registration o

        2. 7.2.2.2

          Rights and Obligations

      3. 7.2.3

        Infringement of intellectual property rights and remedies