Paper 2

INTRODUCTION TO LAW AND ETHICS

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
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
2. 1.2
  Sources of law
  1. 1.2.1
    The Constitution of Kenya 2010
  2. 1.2.2
    Legislation
  3. 1.2.3
    Delegated legislation
  4. 1.2.4
    Common law and doctrines of equity
  5. 1.2.5
    African customary law
  6. 1.2.6
    Religious laws: Islamic law and Hindu law
  7. 1.2.7
    Judicial precedent
3. 1.3
  General rules of international law
2
Administrative law
1. 2.1
  Meaning of administrative law (6)
2. 2.2
  Functions of administrative law
3. 2.3
  Control of administrative bodies: Executive, legislative and judicial
4. 2.4
  Principles of natural justice
5. 2.5
  Constitutional concepts
6. 2.6
  Doctrine of separation of powers and independence of the judiciary
7. 2.7
  Judicial control of the Executive
3
Foundations of Ethics
1. 3.1
  Ethical norms
2. 3.2
  Theories morality
3. 3.3
  Universal moral principles
4. 3.4
  Ethical dilemmas and unethical conduct
5. 3.5
  Code of ethics
6. 3.6
  Integrity
7. 3.7
  Confidentiality
8. 3.8
  Independence
9. 3.9
  Conflict of Interest and Related Party Transactions
10. 3.10
  Whistle blowing and relevant protection mechanisms
4
Solving disputes through alternative dispute (ADR) resolution mechanisms
1. 5.1
  Nature of alternative dispute resolution
2. 5.2
  General principles of ADR Negotiation
3. 5.3
  Mediation
4. 5.4
  Traditional dispute resolution mechanisms
5. 5.5
  Arbitration
5
Linking ethics, laws and regulations
1. 5.1
  Legislative provisions on ethical conduct
2. 5.2
  The Constitution
3. 5.3
  Public Officers Ethics Act
4. 5.4
  Leadership and Integrity Act, other legislative and regulatory requirements
5. 5.5
  Role of KASNEB, professional bodies and other regulatory bodies in enforcing ethical conduct
6. 5.6
  Penalties and sanctions for unethical conduct
6
Emerging issues and trends
1. 6.1
  Online commercial transactions
2. 6.2
  Impact of COVID -19 pandemic on commercial transactions
3. 6.3
  Online business registration services
7
Illustrate the structure of court system in Kenya
1. 7.1
  The court system
  1. 7.1.1
    Establishment
  2. 7.1.2
    Structure
  3. 7.1.3
    Composition
  4. 7.1.4
    Jurisdiction of courts
  5. 7.1.5
    Supreme Court
  6. 7.1.6
    Court of Appeal
  7. 7.1.7
    High Court
  8. 7.1.8
    Employment and Labour Relations Court
  9. 7.1.9
    Environment and Land Court (7)
  10. 7.1.10
    Magistrates Court
  11. 7.1.11
    Court Martial
  12. 7.1.12
    Kadhis’ Court
  13. 7.1.13
    Tribunals
8
Apply legal requirements in establishing a business
1. 8.1
  The law of persons
  1. 8.1.1
    Natural persons
  2. 8.1.2
    Nationality, citizenship and domicile
  3. 8.1.3
    Artificial person
  4. 8.1.4
    Unincorporated associations
  5. 8.1.5
    Incorporated associations
9
Address civil wrongs using law of Torts
1. 9.1
  The law of tort
  1. 9.1.1
    Nature of tort
  2. 9.1.2
    Types of tort
    1. 9.1.2.1
      Negligence
    2. 9.1.2.2
      Vicarious liability
    3. 9.1.2.3
      Occupiers’ liability
    4. 9.1.2.4
      Strict liability
  3. 9.1.3
    General defences of tort
  4. 9.1.4
    Proving negligence
    1. 9.1.4.1
      Duty
    2. 9.1.4.2
      Breach of duty
    3. 9.1.4.3
      Causation
    4. 9.1.4.4
      Damages
  5. 9.1.5
    Defamation
  6. 9.1.6
    Limitation of actions
10
Preparing a commercial contract and identifying the major laws regulating business
1. 10.1
  The law of contract
  1. 10.1.1
    Definition of contract
  2. 10.1.2
    Classification of contracts
  3. 10.1.3
    Essentials of a valid contract
  4. 10.1.4
    Terms of a contract
  5. 10.1.5
    Vitiating elements of a contract
  6. 10.1.6
    Discharge of contract
  7. 10.1.7
    Remedies for breach of a contract
  8. 10.1.8
    Limitation of actions
2. 10.2
  Sale of goods law
  1. 10.2.1
    Definitions: Sale of goods contract, property in goods, consideration, a contract of sale, agreement to sell, Nemo dat
  2. 10.2.2
    Nature of the contract
  3. 10.2.3
    Formalities of the contract
  4. 10.2.4
    Terms of the contract
  5. 10.2.5
    Implied terms by statute
  6. 10.2.6
    Lien remedy
  7. 10.2.7
    Personal remedy
  8. 10.2.8
    Real remedy