Skip to content

ACCA Applied Skills · Corporate and Business Law (Global) · Business, political and legal systems

In Kestria, the legislature passes a law stating that a named company, Tarn Ltd, must pay a special levy of 40% of its profits, a charge that applies to no other company. The law was passed by the proper procedure and was published in advance. A lawyer argues the law is nonetheless contrary to the rule of law in its substantive sense. Which feature of the rule of law is the strongest basis for that argument?

The strongest argument is that laws should be general and apply equally rather than arbitrarily targeting a particular person or company. A levy aimed solely at Tarn Ltd breaches this, even though it was properly enacted and published in advance.

  1. ALaws should be general in application and not target particular persons arbitrarilyCorrect
  2. BLaws must never impose financial burdens
  3. CLaws must be passed by a unanimous vote
  4. DLaws must be enforced by private arbitrators

Explanation

Even if procedure and publication are satisfied, a law aimed at one named company breaches the idea that law should apply generally and equally, not arbitrarily to individuals. Tax laws can lawfully impose burdens, unanimity is not required, and arbitration is irrelevant to enforcement of statutes.

Did you get it right without looking?

One question tells you little. A timed set on Business, political and legal systems shows your real accuracy, how long you take and where you lose marks.

Practise Business, political and legal systemsFree diagnostic mock

More Business, political and legal systems questions