CMA Foundation · Fundamentals of Business Laws and Business Communication · Primary and Subordinate Legislation
The Sale of Goods Act-based Rules framed by a Ministry contain a rule that conflicts with a provision of the parent Act. On the principle of hierarchy of laws, what is the position of the rule?
The rule is ultra vires to the extent of the conflict, and the parent Act prevails. Subordinate legislation draws its power from the enabling Act and cannot override or contradict it, so courts will strike down the inconsistent part.
- AThe rule prevails because it is more recent and more specific
- BThe rule is valid because rules have the same force as the Act
- CThe rule is valid until the Ministry withdraws it
- DThe rule is ultra vires to the extent of the conflict and the parent Act prevailsCorrect
Explanation
Subordinate legislation derives its authority from the parent Act and must remain consistent with it. Where a rule conflicts with the Act, the rule is ultra vires to that extent and the Act prevails. Being later or specific does not allow a rule to override the statute.
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