ACCA Applied Skills · Corporate and Business Law (Global) · Business, political and legal systems
The government of Veldoria issues an order closing a private company's factory. No law gives the minister power to do this. A court later declares the order invalid because officials must act within powers given by law. Which idea of the rule of law does this best illustrate?
The decision illustrates the rule of law idea that government is itself subject to the law. Officials need legal authority for what they do, and where none exists the courts can strike the act down. This protects businesses from arbitrary state action.
- AGovernment action must have a lawful basis and be subject to the lawCorrect
- BLaws may be changed retrospectively to validate official acts
- CThe judiciary may make laws in place of the legislature
Explanation
A core element of the rule of law is that those exercising state power are bound by law and need legal authority for their acts. Retrospective validation would undermine legal certainty. Judges declaring an act unlawful are not legislating.
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