Business Law: Civil vs. Common Law & EU Institutions
Business Law
Civil Law vs. Common Law Systems
1. What are the differences between Civil Law and Common Law Systems?
- Civil law is written law, while common law belongs to case law.
- Civil law is used in most European countries (e.g., Germany, France). Common law developed in the UK and is used in the UK, USA, Australia, etc.
- Civil law primarily uses deduction. Common law relies on precedent.
Main Sources of Scottish Law
A: Statutory Sources of Law
- Acts of Parliament: Laws passed by the UK and Scottish Parliament.
- Delegated Legislation: Laws passed by bodies authorized by Parliament.
- European Union Law: Laws passed by the European Union.
B: Common Law Sources
- Judicial Precedent: The most influential common law source (also known as Stare Decisis).
- Custom: A practice long recognized and consistently applied, now rarely a source of new law.
- Equity: Basically means fairness or natural justice.
- Institutional Writings: Have less authority than legislation or judicial precedent. Their main importance lies in their contribution to the orderly development of Scots law.
Key European Union Institutions
16 (a). What are the four most important institutions of the European Union?
The European Commission, The Council of Ministers, the European Parliament, and the European Court of Justice.
(b) Which of the European Union institutions has law-making powers?
The Council of Ministers and European Parliament have law-making powers.
Council of Ministers
- Takes policy decisions.
- Members directly represent national governments.
- Different ministers attend (e.g., Foreign, Finance, Agriculture) depending on the issues.
- Decisions should normally be unanimous, but majority decisions are possible.
Commission
- Members are put forward by national governments but are committed to EU policies.
- Drafts policies and takes them to the Council of Ministers for decisions.
- Implements and administers the Union’s policies and has considerable executive powers.
Court of Justice
- Settles disputes about the interpretation of Treaties.
- Individuals, institutions, and member governments may appeal to the Court.
- Decisions are binding on member states.
European Parliament
- The Commission and Council are answerable to this body, whose members are elected by the countries that form the European Union.
- The Parliament has the power to veto the EU Budget.
- To become an EU law, a proposal must be adopted by both the Council and the Parliament. Either has the power of veto.
The process begins with the European Commission, which puts forward formal policy proposals. Before the Commission submits a proposal, it consults interested parties, including representatives of industry and civil society, interest groups, and local authorities, as well as governments. It may also hold public consultations. An assessment of the likely economic, social, and environmental impact, positive and negative, of the proposed measures, forms an important part of the process.
Once a proposal is formally adopted by the European Commission, it is forwarded to the Council and the Parliament. Each body considers the proposal and decides internally whether to approve, amend, or reject it. For a proposal to become law, both the Council and the Parliament must agree on the same text. In the Council, approval is usually by consensus. If an issue goes to a vote, it must secure the support of 16 of the 28-member states, representing at least 65 percent of the EU population to be approved. In the Parliament, a measure has to be supported by a majority of MEPs. Otherwise, it is rejected.