CMA Foundation · Fundamentals of Business Laws and Business Communication · Sources of Law
The Parliament passes an Act forbidding any person from running a manufacturing unit without a licence. Rohan ignores it, and the State fines him. Which feature of the nature of law is most directly illustrated by the fine?
The fine shows that law is backed by State sanction. When Rohan disobeyed the licensing Act, the State imposed a penalty, proving that legal rules are enforced by authority irrespective of whether the person agreed to them.
- ALaw is backed by sanction imposed by the StateCorrect
- BLaw is based only on customs of traders
- CLaw is purely a statement of ideals with no consequence
- DLaw applies only when the parties have consented
Explanation
The fine is a penalty the State imposes for breaking the rule, showing that law carries sanction. Rohan did not consent to the rule, so consent is not required. The Act is a statute, not mere custom or ideals.
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