Module Code and Title: BLT101 Legal Considerations in Business
Programme: Bachelor of Business Administration
Credit Value: 12
Module Tutors: Enchu Lhamo,Stephen, Dr Stephen Loyal Griffith, Gagan Mongar, Dilli Ram Sharma, Nawang Yangden
Module Coordinator: Dr Stephen Loyal Griffith
General Objective: The aim of this module is to introduce students to the important business laws and regulation framework of the Bhutanese legal system and promote the understanding and use of lawful business practices. It further emphasizes understanding the implication of various laws that impact business operations in Bhutan and outside.
Learning Outcomes –On completion of the module, students should be able to:
- Explain the concept of law - meaning, sources and types
- Explain the Bhutanese legal system and its history
- Draft a simple valid contract agreement according to the Contract Act of the Kingdom of Bhutan, 2000
- Appraise the business implications of various provisions of business laws along with their underlying intention and likely consequences for the business
- Discuss the requirements for the formation of a business under Foreign Direct Investment (FDI)
- Highlight the key features of various laws related to business in Bhutan
- Compare the tax complexities of small businesses and industries in Bhutan
- Differentiate the relevant laws and regulations related to various business situations, and propose appropriate business practices
- Explain the concepts and values of intellectual property rights
- Describe the various procedures to be followed by Sole proprietorship/Partnership businesses in Bhutan in context to; obtaining licenses, business formation, tax obligations, liabilities and terminating business
Teaching and Learning Approach:
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Approach
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Hours per week
|
Total credit hours
|
|
Lecture
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3
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45
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|
Class exercises, case study, role plays, guest speakers, presentations
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1
|
15
|
|
Independent study
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4
|
60
|
|
Total
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120
|
Assessment Approach:
A. Written Assignments: Portion of Final Marks-20%
Student will submit 2 different short written assignments of 800 words each during the semester each from unit 2 (Contract Law) and will choose any one business from within the country dealing with particular goods/commodities and research on various laws applicable to IP/export/import, taxes and situations under which fines and penalties being imposed to that business. Each assignment will be marked out of 10%. It will be marked on following basis:
2% originality and contents
5% critical analysis of the points
2% grammar and structure
1% referencing (APA system)
B. Group Role Play: Portion of Final Marks-10%
In groups of 4, will be given a situation to do role plays related to discussions on legal aspects of business decision making.
2% organization
6% display of accurate knowledge of the relevant laws and their salient features
2% overall role play (dialogue, clarity, acting, coordination & language)
C. Individual Presentation: Portion of Final Marks-10%
Each student will be given an individual topic for presentation. The presentation topics will be all from the module contents unless otherwise decided by the module tutor in the beginning of the semester and mentioned in the work plan.
5% clarity (The class has to understand the presentations)
5% content knowledge (To check the content knowledge questions will be asked to the presenter)
D. Case Study: Portion of Final Marks-10%
Each student will complete a case study of 300 words in the class and they will solve that case inside the classroom. Students will analyse the case, come up with a proper solutions and give their own views and opinions
6% proper analysis of the case and
4% answering question based on the case study
E. Midterm Examination: Portion of Final Marks-15%
Students will take a written exam of 2-hour duration covering topics up to the mid-point of the semester.
F. Semester-end Examination: Portion of Final Marks-35%
The module will have a semester-end exam for 2 hours covering the entire syllabus. The question will be divided into two parts – Part A (carrying 40% of the exam weightage) will be mostly of short answer including objective questions. Part-B (carrying almost 60% of the exam weightage) will be mostly of essay type or an extended response to the given question. This part of the question requires students to apply, analyse, and evaluate or construct knowledge and skills. Cases will also be used to test the levels of knowledge.
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Areas of assignments
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Quantity
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Weight
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|
A. Written Assignments
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2
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20%
|
|
B. Group Role Play
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1
|
10%
|
|
C. Individual Presentation
|
1
|
10%
|
|
D. Case Study
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1
|
10%
|
|
E. Midterm Examination
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1
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15%
|
|
Total Continuous Assessment (CW)
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65%
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|
F. Semester-end Examination
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35%
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|
TOTAL
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100%
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Pre-requisites: None
Subject Matter:
- Introduction
- Introduction to law
- Meaning of law
- Sources and types of law
- Overview of the Bhutanese legal systems
- History
- Structure of court system
- Features of Bhutanese judicial system
- Constitutional law of Bhutan
- Contract Act of Bhutan 2000 and the Commercial Sale of Goods Act of the Kingdom of Bhutan 2001
- Contract Act of Bhutan:
- Meaning and essential features of a contract
- Types of contract
- Discharge of contract
- Remedies for breach of contract
- Drafting of simple contract
- Commercial Sale of Goods Act of Bhutan
- Meaning of sale contract
- Form and formation of sale contract;
- Passing of title and risk
- Conditions and warranties
- Performance and remedies of sale contract
- Laws Applicable to Sole Proprietorship, Partnership and Other Small Scale Business in Bhutan
- Form and Formation
- Licensing and Registration procedure for the formations
- Liability and risk associated
- Management and administration
- Labour and Employment Act of Bhutan
- Prohibition
- Compensation and benefits
- Hours of work and remuneration
- Occupational health and safety
- Fines and penalties imposed on breaching any part of the clause.
- Import and Export
- Export/import restrictions
- Rules regarding import of goods from third country
- Rules regarding Exemptions under Sales Tax, Customs and Excise Act of the Kingdom of Bhutan, 2000 and Fiscal Incentives 2016
- Tax Issues
- Registration for business income tax
- Business tax liability and tax planning
- Imposition and exemptions of sales tax, customs and excise duties
- Applicable Double Tax Treaties (DTAs)
- Fines and Penalties
- Imposed on small businesses on not meeting the standards in terms of quality of goods and services.
- Sources of Finance and Legal Regulations
- Sources of finance
- Shares
- Debentures and loans
- Documents required for availing loans from Banks in Bhutan
- Merits and demerits of different sources of finance
- Foreign Direct Investment (FDI)
- FDI policy of Bhutan
- Investment procedures
- Other legal issues associated with FDI
- Negotiable Instruments Act
- Introduction to Negotiable Instruments Act of the Kingdom of Bhutan 2000
- Types of instruments
- Promissory notes
- Bill of exchange
- Cheques
- Account payee cheques
- Treasury bills
- Letter of credit
- Endorsement of instruments
- Business and Bankruptcy
- Initiation of bankruptcy proceedings including the prerequisites for abankruptcy order – petition by creditors and debtors, contents of petition
- Order of adjudication and its effects
- Application and order of discharge
- Appointment of receiver and its powers, roles and responsibilities
- Distribution of property and bankruptcy crime
- Laws Applicable to Large Scale Businesses/Industries
- Companies Act of Bhutan
- Introduction to the Companies Act of the Kingdom of Bhutan 2016
- Formation and registration of companies in Bhutan
- Advantages and disadvantages of incorporation
- Circumstances under which a company may wind up
- Intellectual Property Rights and Applicable Laws
- Introduction to Intellectual Property Rights
- Meaning
- Importance
- Business impact
- Types of intellectual Property
- Patent
- Industrial design
- Trademark
- Key business concerns in commercializing intellectual property rights
Reading Lists:
- Essential Readings
- The Course Pack (Gaeddu College of Business Studies)
- The Companies Act of the Kingdom of Bhutan 2016.
- Additional Readings
- Ministry of Labour and Human Resources. Chathrim for Wage rate, Recruitment Agencies and Workmen Compensation 1994.
- Ministry of Labour and Human Resources. General rules and regulations on occupational health and safety in construction, manufacturing and service industries, 2006. http://www.molhr.gov.bt/publication/ohs.pdf
- Ministry of Finance. (2001). Income Tax Act of the Kingdom of Bhutan, 2001.https://bhutan.eregulations.org/media/income%20tax%20act_1.pdf
- Ministry of Labour and Human Resources. (2007). Labour and Employment Act of Bhutan, 2007. http://www.molhr.gov.bt/publication/labouract.pdf
- Royal Government of Bhutan. (2000). Negotiable Instruments Act of Kingdom of Bhutan, 2000. http://www.nationalcouncil.bt/assets/uploads/docs/acts/2017/Negotiable-Instruments-Act-of-Kingdom-of-Bhutan-2000_Eng.pdf
- Ministry of Finance. (2012). Sales Tax, Customs and Excise Act of the Kingdom of Bhutan, 2012.
- Smyth, J.E., Soberman, D., Easson, A., & McGill, S. (2015). The law and business administration in Canada (14th ed.). Pearson Canada.
- Takagi, Y., Allman, L., & Sinjela, M.A. (2011). Teaching of intellectual property-principles and methods. Cambridge University Press.
- Royal Government of Bhutan. (2013). The Contract Act of Kingdom of Bhutan, 2013. http://www.nationalcouncil.bt/en/business/acts
- Royal Government of Bhutan. (2000). The Commercial Sale of Goods Act of the Kingdom of Bhutan, 2000. http://www.nationalcouncil.bt/en/business/acts
- Ministry of Economic Affairs. (2014).Foreign Direct Investment Rules and Regulations 2012. http://www.moea.gov.bt/documents/files/pub4wv968yk.pdf
- Royal Government of Bhutan. (2001). The Industrial Property Act of Bhutan, 2001. http://www.nationalcouncil.bt/en/business/acts
- Royal Government of Bhutan. (1999). The Bankruptcy Act of the Kingdom of Bhutan 1999. http://www.nationalcouncil.bt/en/business/acts
Date: July, 2017