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Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
The Australian court
system
Chapter 2
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
by Barron & Fletcher. Slides prepared by Kay Fanning.
Doctrine of precedent
(Stare decisis)
• Courts should treat similar cases in
similar fashion.
Results in:
• Precedent - a judgement of a court
cited as authority for the legal principle
embodied in the decision.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-2
Basis of precedent
• Ratio decidendi - The reason for the
decision made by the judges
• Obiter dictum - Observations made
by judges in explaining or further
clarifying their decisions
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-3
Precedents
• Binding Precedent - Courts must
follow the ratio decidendi of
judgements made in higher courts in
the same court hierarchy.
• Persuasive Precedent - Courts may
follow the ratio decidendi of all other
courts not higher in the same court
hierarchy, or the obiter dicta of all
courts.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-4
Jurisdiction
• Original Jurisdiction - Certain
matters can be heard for the first time.
• Appellate Jurisdiction - Hearing a
matter on appeal from another court.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-5
Importance of a court
hierarchy
• Serious matters are heard by higher
courts with more experienced judges.
• Ensures doctrine of precedent can
operate through appellate jurisdiction.
• Allows appeals against decisions on
the basis of mistakes of law.
• Allows for specialisation.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-6
Court hierarchy
High Court of Australia
Federal Court of Australia
Industrial Division
Family Court of Australia
Supreme Courts
Federal Magistrates
Court
District Courts
General Division
Magistrates and
Local Courts
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-7
Specialist tribunals
Federal levels
• The Administrative Appeals Tribunal – Reviews decisions
of Commonwealth Departments and Statutory Bodies
• The Australian Competition and Consumer Commission
(ACCC) – Enforces the restrictive trade practices provisions
and the consumer protection provisions of the Trade
Practices Act
• The Australian Competition Tribunal – Hears Authorisation
applications
• The Native Title Tribunal – deals with Native Title
applications
• Australian Industrial Relations Commission (AIRC) –
Prevents and settles disputes, determines industrial matters,
and may approve statutory employment agreements
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-8
Specialist tribunals
State levels
• Small Claims Tribunals – for consumers to
complain about activities of traders
• Industrial Relations Commissions – prevent
and settle disputes, determine industrial matters,
and may approve statutory employment
agreements
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-9
Adversary system of justice
• Standard of proof - the degree of
proof required in order to succeed in a
legal action
• Burden of proof - the party that is
required to prove its cause (in a legal
proceeding)
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-10
Adversary system of justice
Criminal
matters
Civil matters
Standard of
proof
Beyond a
reasonable
doubt
On the basis of
probabilities
Burden of
proof:
Prosecution
Plaintiff
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-11
Cross-vesting laws
State courts can exercise jurisdiction
over Federal matters
and
Federal courts can exercise jurisdiction
over State matters
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-12
Commonwealth Acts Interpretation
Act 1901
S15 AA (1)
• “In the interpretation of a provision of an Act a
construction that would promote the purpose or
object underlying the Act (whether that purpose or
object is expressly stated in the Act or not) shall be
preferred to a construction that would not promote
that purpose or object.”
Rules of Statutory Interpretation
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-13
Rules of Statutory interpretation
The literal rule:
The Courts are to interpret the words
used in an Act of Parliament literally
as far as they can, i.e. they must give
the words used in statutes the same
meaning that they have in every day
use.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-14
Rules of Statutory interpretation
The Golden Rule:
• The courts may depart from a literal
reading of the Act to prevent an
absurd result.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-15
Rules of Statutory interpretation
The purpose approach:
• Where a literal interpretation is not
possible (e.g. the words are ambiguous)
the court may interpret the statute
according to the original purpose or
policy underlying its enactment.
(Information behind Statute can be used
in order to understand what was meant
to be achieved.)
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-16
General rules of interpretation
• Legislation is not intended to be
retrospective.
• Where there are several matters specifically
dealt with by a statute, matters not stated are
not intended to be covered.
• Where there is reference to both general and
specific matters, the general matters are
limited to matters of a similar nature or class
to the specific matters.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-17
General rules of interpretation
• Technical words used in a statute are to be
given their technical meaning.
• If there is conflict between a general and a
specific provision in the statute, the specific
provision should receive precedence.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-18
Citation of cases
• A case in support of a legal
principle is cited by quoting the
names of the parties and giving
a reference to the law report
where the case can be found.
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-19
Example of citation of cases
Plaintiff (person bringing action)
Defendant
(person against whom action bought)
Norwich Winterhur Insurance (Aust) Ltd v Harold Smith (Motors), Ltd
Dick Bentley Productions, Ltd and Another
(1965) 2 ALLER 65
Page
Year case
decided
Volume
Relevant
law Report
Copyright  2003 McGraw-Hill Australia Pty Ltd. PPTs t/a Fundamentals of Business Law 4e
Copyright © 2000 McGraw-Hill
by Barron & Fletcher. Slides prepared by Kay Fanning.
Australia
2-20