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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sources of Law

A statute prescribes a fine for dumping industrial waste in a river. A factory owner argues that he never agreed to this rule and therefore it does not bind him. Which principle about the nature of law defeats his argument?

Law binds everyone within its jurisdiction regardless of personal consent, and ignorance of it is no excuse. The factory owner is therefore subject to the fine, since the binding force of a statute does not depend on his agreement, signature or personal notice.

  1. ALaw binds all persons within its jurisdiction irrespective of their individual consent, and ignorance of it is no excuseCorrect
  2. BLaw binds only those persons who have signed a written agreement accepting it
  3. CLaw is binding only on persons who have been personally served a notice about it
  4. DLaw applies only to individuals and not to business entities

Explanation

Law is general and binding on everyone within the territory it governs, whatever their personal consent. Binding force does not depend on signing, personal notice or the type of person. The factory owner is therefore liable under the statute.

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