This report examines various aspects of business law in the United Kingdom, including the sources of law, the impact of employment and contract law on businesses, and legal solutions for business problems. It also explores the benefits of alternative dispute resolution (ADR) methods like arbitration.
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BUSINESS LAW
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Table of Contents INTRODUCTION...........................................................................................................................4 Scenario – 1......................................................................................................................................4 TASK 1............................................................................................................................................4 P1 Different sources of laws.......................................................................................................4 P2 Role of government in law making........................................................................................7 M1....................................................................................................................................................8 D1.....................................................................................................................................................8 TASK 2............................................................................................................................................9 P3 Impact of employment and contract law on business............................................................9 M2..................................................................................................................................................10 TASK 3..........................................................................................................................................11 P4 Appropriate legal solutions for business problems..............................................................11 P5 Justification..........................................................................................................................12 M3..................................................................................................................................................12 D2...................................................................................................................................................12 TASK 4..........................................................................................................................................13 P6 Recommendations of legal solutions..................................................................................13 M4..................................................................................................................................................14 CONCLUSION..............................................................................................................................14 REFERENCES..............................................................................................................................15
INTRODUCTION Business law consist different laws that helps company to run its operations in proper and ethical manner. It is also known as commercial law. Business law governs all activities of company from its starting till the selling of enterprise. All these activities are run according to the law enacted by government of particular country. These facilitateproperandlegalworkingandavoidpossibleillegalpractices.State, administrative regulations and federal laws are generally included in business law. Legal bodies of country enact laws in order to avoid any illegal act and discrimination against anyone. It helps in orderly flow of work within organisation and ensure better results in future(Bebchuk and Jackson 2012). Business law regulated different activities like corporate contracts, hiring practices and manufacture and sales of goods and services. Main objective for following rules and laws is to prevent and avoid any usage of common people. This assignment will enlighten various sources of laws and role of government in the law making process.Impact of different employment and contract law on business and legal solutions for business problems have been covered under this project. In addition to that, recommendations of legal solutions based on different country's legal systems or framework. Scenario – 1 TASK 1 P1 Different sources of laws Parliamentary sovereignty Different laws that are enacted by Parliament of United Kingdom are delivered via speech given by Queen at the State Opening of Parliament in October or November. This is an effective manner to make common people aware about different laws and acts which is enforced by government. It is commonly said that Parliament is sovereign which means that legal body has the sovereignty and its supreme over all other government institutions. Government or legislative body of United Kingdom enact laws that helpin protecting common people from any possible violence, misuse and discrimination(Law, 2016). These laws develop fear against government in the minds of culprits and they
tend to perform less illegal activities. There are three major legal bodies in United Kingdom and are distributed according to different geographical areas. English law is applied in England and Wales, Scots law is applicable in Scotland and the last one known as Northern Ireland Law is applicable in Northern Ireland. The main legislature of United Kingdom is their Parliament. They have the main powers to pass all laws in all four countries. Parliament of UK consist of House of Commons and House of Lords. House of Commons mainly consists of 650 members of Parliament (MPs). Each of the MPs represent particular geographic constituency. They are elected by electors vote by using “first-past-the post” system. Each elector has one vote and candidates having highest vote is selected as MP for that particular constituency. The House of Lords includes 800 peers in which 600 are appointed by Queen which is recommended by Prime Minister. The Northern Ireland Assembly, Scottish Parliament and National Assembly for Wales have the power to pass laws related to devolved matters and is applicable in the country in which they were passed. European Union (EU) Law:United Kingdom is a Member State of EU. This means that EU have the precedence or more important than UK law. Statutes:These are created by state, federal and local legal bodies. It consists elected officials which have the power to create laws. Courts should apply statues, if they are not applicable then courts defer to common law or case law. Common law is generally not enforced or passed by legal body but it is applied by the courts based on tradition and legal history of United Kingdom. Whereas, Case law comes directly from the court decisions. It basically constitutes judicial interpretation of the constitution. As they are passed by legal bodies who are responsible for making laws have control over common or case law where there is conflict between the two. International Court :These courts are made by treaties between different nations. This is chief judicial part of the United Nations (UN). This helps in resolving disputes and conflicts between member states and give advices and opinions to UN organ and specialized agencies. This was established in 1945 by Union Charter. It consist of a panel which includes 15 judgeselected by General Assembly and Security Council for nine term years.
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European Court :It is the judicial institution of European Union. This is mainly responsible for settling disputes between parties. Their main function is to implement and apply European law in the same way in every member state. There are 28 judges at the European Court and also have 8 Advocates Generals who give advises on the cases and assist court with their decisions. Judges and Advocate Generals should have appropriate qualifications as they areappointedathighestnationalcourtsintheirmemberstates.Oncetheyare appointed and then may not hold any other office of an administrative or political nature and may not engage in any occupations, paid or unpaid. Barrister:Theyarethelawyersincommonlawjurisdictions.Theyhave specialization in courtroom advocacy and litigation. Their function is to take the cases to higher courts, draft legal pleadings, hypothesis and history of law, researching and philosophy and give expert advices and legal opinions. Solicitor:It is a legal practitioner who mainly deals with legal matters. The personmusthavelegally defined qualificationthat differs from onejurisdiction to another. P2 Role of government in law making Legislative bodies are important as they formulate bills and laws that are passed through general assembly. They firstly identify the problem or issue and then develop ideas to resolve that. Members of general assembly review the bills and purpose of issue and then give their valuable suggestions as they play crucial role in passing of the role. Everyone should be in favour of the act. Basically, single issue is raised within parliament and then purpose is made. Afterwards, the purpose in converted into bill which is represented amongst the parliament through readings. This bill is then critically analysed by general assembly and necessary changes are done and various advices are suggested(Allen, 2017). Then, itis finally sent to monarch or queen of the parliament and if it is suitable and is important to pass, then with the permission, the bill is converted into an act and this act is enforceable by law. Formation of act is very tough task. It should cover all details and points for which the act is coming into force. It is a whole process starting from the raised issue till the enactment of act. This process is given below in detail:
First reading:In this step, new idea for act is generated related to problem or issue and is written down. This idea is then given the name of “bill”. This bill is then printed and is represented amongst the parliament or the place where it was introduced. This is done in order to brief about the points covered by bill and also ensures majority of people. Second reading:In this reading, the bill was again read in format of members of parliament. The parliamentarians debate in the idea behind the bill and give their own perceptions and suggestions. Example of questions that arises at the time of debate are, “is the idea is good or not”, “ does the bill have the capacity to meets people requirements”, “ what will be the affects and side effects of the bill”, etc. If the votes of the members are in majority, then it passes to the another stage. Committee Stage:At this stage, the bill is critically reviewed and studied. Committee members hold different hearing and meeting in which people from outside and inside government can give their comments and suggestions related to the bill. The committee can also ask government officials and other experts to come up and give their valuable advices and answer different questions. If there are any changes or amendments related to bill, then committee can report to the chamber or parliament. Report stage:In this stage, the committee report the bill back to parliament. Members of parliament debate again on the changes made in the bill. If any member left out in studying and giving any advices, that person can also suggests changes. Thirdreading:Afterfinalsuggestions,thebillisagainreadinfrontof parliaments. Debate is again on between the members. Sometime, members can Chang their minds about bill. They might be ready for first and second voting but might not vote for third reading. This situation arises, when they did not like any changes recommended in the bill. If it is passed by everyone, then it is passed to other stage, where all stages are repeated again. Royal assent:After the passing of bill from the Senate and the House of Commons, the bill is forwarded to Governor General or the Queen in order to take royal assent(Bently and Sherman, 2014). They read the entire bill and is they passes the bill, it become law or act which can be enforced by the government.
House of Lords: This isthe second chamber of Parliament of United Kingdom. Their main role is to shape and make laws and checking and challenging the government. They share their role with House of Commons.In the chamber of House of Lords, many legislative work and scrutiny of government takes place. Any member an be involved in this. The bill have to go through both the house before getting royal assent in order to finally become law. M1 Legal system of United Kingdom is efficient in every manner and is able to carry out their duties proficiently. They have enacted numerous laws and has delivered to the common people through different media, so that every person can be aware about new laws and acts. This help in knowing about their rights which help in protecting them against any illegal practices and discriminations. Every person of UK knows about their rightsandobligations.Legalsystemskeeponmakingnewdevelopments,which increase their efficiency.In earlier time, there were less laws related to women rights and harassments and now, due to more awareness, more laws have enforced by the government related to women empowerment and harassment. D1 According to(War and Akhtar, A., 2011), legal body of United Kingdom is highly efficient at their work. They have enacted several acts and laws in order to protect individuals from any possible violence and discrimination. They have also established strict punishments for those who breach the law and are found in performing illegal activities. The legal authorities of UK regulate several legislations in order to protect rights of each individual to maximise legality in a country. TASK 2 P3 Impact of employment and contract law on business In this case study, Jane, Penny and Marie have started their business after their graduation and have been successfully trading for several years. As being directors of company they have to take care of employment laws and rights of the employees. In
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order to have successful venture in future they can implement several laws which are enacted by government of country. Some of the suggestions which can be given to the company related to different employment laws are given below: Health and Safety Regulations:This act was enacted by the parliament of United Kingdom in the year of 1974. This act was passed in order to avoid any discrimination on employer, employees, contractors, etc. This act helps in securing the health of person working in an organisation. This act protects worker from any risks related to health or safety related to their work, possession and use of dangerous substances, controlling certain emissions into the atmosphere, etc. In this case study, JPM should implement this act within their organisation, as they should be aware about the safety of their employees. They should know that each employee is valuable for company and it is necessary to meet their medical and health needs. Employees are the one who are responsible for carrying out all business activities and providing them health assistance boost up their motivation level and enthusiasm. In tough times, they shouldnotfeelalone(Munch,2012).Byprovingthemnecessaryassistancelike compensation, remunerations, etc., they can win the trust of employees and they will like to work for such company who take stand at their rough times. Equal Opportunities Regulations:This act is also known as Equality Act and was enacted in 2010. This act avoid discrimination in relation to employment or in the provision of training and education on the grounds of age, disability, gender, marriage, pregnancy,civilpartnership,maternity,race,religionorbelief,sexandsexual orientation. Employees should be protected from biasness at the time of recruitment andselection,salaries,incentives,bonuses,promotions,transfers,appraisals, performanceassessment,dismissal,etc.Thisshouldbeimplementedwithin organisationworkingproceduresofJPMinordertoprohibitpartialityandillegal practices.Theyshouldtreateverypersonfairlyandgiveequalopportunitiesto everyone irrespective of above mentioned elements. With this act, employees feel secured and tension free about any type of partiality as it is very common these days In corporate world. So, JPM should treat their staff members equally. General Data Protection Regulation (GDPR) :It is a regulations which was enforced by European Union (EU). This act was come into force on 2018. This act help
in protecting consumer and personal data across EU nations. This act is very crucial in order to prevent stealing and leaking of the data and secret information. JPM should ensure that their information’s is protected from external access(Munch, 2012). For thattheycanmandateabaselinesetofstandardsforcompanythathelpin safeguarding the processing of personal data of employees. Above are some crucial laws that should be implement by JPM, in order to avoid any type of discriminations and provide them secured and safe working culture to their employees. Case: Aslam and Uber Case, in this, Aslam was a person working in Uber and was not getting all employees rights by the company. If employees don't get all rights and obligation, then they have the authority to case against the company. M2 Therearedifferentlawsandregulationsthatposepositiveimpactonthe business operations. This help in protecting rights of the employees and providing them healthy environment. It also prohibits discrimination on the grounds that are already mentioned above. This standard is crucial for business to prevent any illegal practice.
TASK 3 P4 Appropriate legal solutions for business problems When a person agrees to terminate the contract then they become liable to fulfil their contractual duties such as Mr. Anderson is liable to pay his duties for the next 12 months from the date of termination letter. Mr. Anderson is liable to perform his duty for the next year that is till May, 2017 but he is no more willing to do the job any more. In this circumstances there are some laws which can be performed as an action from the Amber Ltd(Shum and Yam, 2011). There are some conditions under which a contract can be terminated according to the laws before the contractual duties that are needed to befulfilled.Theselawsareknownasterminationofcontractthesecontractis considered to be lawful with a valid reason to end the contract before the completion of performance. There are some rules for the terminating the contracting. Impossibility of performance –When a person fulfils the contract that is called performance but there are some circumstances that makes impossible to fulfil the contract. For an instance, the Mr. Anderson is not able to fulfil the contract due the offer from Beta Ltd. These is a most specific procedure that uses in legal term in order to maximise relation between two individuals(Muchlinski, 2012). In this process an individual need to manage their legal terms in effective manner by fulfilling the contract need by their own performance and approaches. Breach of contract –In a contract, two parties are involved in that so they both are liable to perform the duties. But if one fails to fulfil the duties then the non – breaching party can be able to recover the losses that is caused by the breach of the agreement. These activities are based on legal agreement between two individuals in which they represent own views on a specific topic. In this terms, if an individual do not perform susceptible than breach of contract takes a specific place. Legislation section:Section 89 of Employment Rights Act, 1996, a notice is necessary to be provided by and employer for the termination of contract of employment to employee who has been employing in a firm for at least one month. In this, it is also necessary for an employee to give notice before terminating all his duties and time period should not be less than one week.
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Rescue from insolvency and liquidation The main cause of the insolvency of the company is poor cash flow of the Premier League Club because it does not work for the people. There is the most common problem of poor cash flow is getting late payments. There are some solutions that can beoptbytheChampionLtdtorescuefromtheinsolvencyandliquidation.The Company can advise the business debt restructuring and negotiate with creditors, they can adopt the latest methods of improving cash flow from due invoices such as finance invoice. The firm can get the best from the staff through encouraging the level of staff. The funds can be raise by using the company assets like it is stadium and that can be used as the asset of the company (Abdi and Aulakh, 2012). Outsourcing is the one of the way to increase the funds to pay the credit. Legislation section: Companies Act 2006 incorporates wide ranging case law andinsolvencylegislations.Thisprovidedetailedmapofbusinessrescueand insolvency legislation. There is one rule known as The insolvency (England and Wales) Rules, 2016. This refers to liquidation procedures and requirements related to such procedures. P5 Justification In the first case study, Champion Ltd. Company was not able to pay their loan on time because they move to new location where they were unable to attract customers towards their stadium by a premier league. They experienced financial imbalance and they become financial weak. Due to this, creditors threatened the company to wind up their business as they were not paying their money on time. But this threatening is not good as they can solve the matter. Company can overcome this situation slowly as in new places it become difficult for them to handle business operations improper direction (Trevino and Nelson, 2016). For this, they can attract their customers by using different techniques and can take some time from creditors and bank for repayments of the loans. If they fail to pay loans in the given time, then they can opt liquidation or winding strategies. For liquidating the company, a liquidator is appointed in order to access the situation of company and they suggest best suitable liquidation procedures. With this process, company can wind up their business activities and pay their debts to creditors.
Legal advice:After thoroughgoing the first case study it has been understood thatcompany needs to wind up their business in order to fulfils the payments of distinct creditors. In fact, as per previous cases company get dissolved in case of any finance problemforgettingridfromvariousclaimsandmajorlosses.Thus,ithelpsin overcoming all the business issues. In the second case study, Mr. Anderson terminated his employment without servingnoticeperiodof12monthsandgivingdirectresignationtoAmberLtd. Company. As company objected their resignation and told him to complete their notice period.ThecompanystartedseekinganinjunctiontopreventAndersonfrom commencing employment with providing services to Beta or any other competitor. It is not right to breach the contract of employment as he is liable to pay penalty or fine suggested by company. Legal advice: According to given case study Mr. Anderson is terminating the contract due to which Amber Ltd. Have the authority to claim charges from Anderson. As per legal laws they need to do this so that they can overcome any business problems as well as fulfils their company policies and several terms and conditions. M3 There are both negative and positive impact of the legal solutions.Liquidation was suggested in case one and termination of contract was suggested in case two as legal solutions for the problems. In both cases, legal solution pose both negative and positive effect. As in first case, liquidationprocess is harmful for the company as in future it can create a negative imageof organisationin the market.In second case study, termination of contract will pose negative and positiveimpact both on Mr. Anderson and Amber Ltd. Company. D2 According to(Laro and Pratt, 2011), in the case study, different legal solutions was given in different case study and best solution was applied in order to handle the situations. Appropriate legal advices can be given to both of the companies which is most suitable at that circumstances.In first case, legal advice can be given to company as they can sell some of their assets and pay some amount of their loan. In second
case study, legal advice can be given to Mr. Anderson. In that, he should pay the amount of penalty caused after the breach of termination of contract, if he fails to do so, he would be liable for further legal actions. TASK 4 P6 Recommendations of legal solutions Alternate Dispute Resolution (ADR) is an activity under which parties settle their disputeoutsidethecourt.MeditationandArbitrationaremostpopularresolution procedures which falls under this approach. It assists individuals by saving cost and time. Today ADR is so popular that the court also wants parties to solve their dispute outside before coming for litigation. With the help of neutral third party, individuals able to communicate, discuss the differences and resolve it. It resolves all kind of matters relatedtocivil,criminal,family,labourandcommercial.Underthisapproach,an individuals are able to present facts, without any fear of public disclosures whereas in the case of court proceeding members are not comfortable to open all the facts. The salient features of each type are as follows- Arbitration -In arbitration third party solve the dispute by listening argument of each side. The third party known as arbitrator.Mostly occurs in the case, where the parties enter into contract that if any future dispute arises then they go to arbitration. In today's time arbitration clause is added to employment contract to reduce burden of the court. The process is beneficial for an organisation in which many conflicts are generally happen between employees and management or in workers(Dunning, 2013). The decision can be binding or non-binding, depends upon the concerned person with dispute. It is not beneficial when parties want to retain control over proceedings and its solution particularly in the case of binding arbitration. Negotiation -Under this self-counselling is perform by the parties to achieve outcome. It is a voluntary process which have no set rules and regulation but have a set of procedure and pattern. Parties can enter in this method whenever they wish to enter. This is best in the case of small scale deviations in the organisation, where the concerned authority has the ability to solve it by own(Devine and et. al., 2017).In big conflicts it is difficult to use. Under this parties have the full control over its outcome and
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can modify according to need. It is appropriate for noncomplex matters where there is no need of decision maker to train and inform about dispute solutions. Meditation –It is a process where a third party known as mediator make attempt to reach mutual agreement. It is an easy and understandable negotiation process where neutral party act as a mediator to resolve dispute by using appropriate communication and negotiation methods. Main aim is to provide parties to negotiate, to explore ways with the help of neutral party for the solutions. An organisation use mediation when party’s emotions are in a way of resolution. Business use this method when individuals want to preserve their relations. It’s not beneficial in the case where one of the disputant not agree to compromise. In this mediator has no power to force the decision or settlement to parties as in the case of arbitration. Process : ForrefertotheADRpartiestoconflictstheymusthaveaclauseinthe agreement and contract that in the case of any discrepancy among them that will solved throughADRand specific typeofADR.Itcanbeenteredwhiledevelopmentof particular contract and at the time when disputes occurs. Adjudication procedures– In this, all the parties evidence and facts before an individual which are selected either by them or court. The decision which is given by that chosen person at last and have a binding impact on both parties to conflicts. This procedures is mainly falls under arbitration and person selected for passing decision which isknownas arbitrator. Consensual process– In this, parties are mutually decide a third person who solve their disputes and sometime resolved it with their amicable decision. Along with this, it is the process which is generally followed in mediation and negotiation. Decision taken under this process does not binding effects and parties are reject this at any time. Benefits: This procedures considered as most companies are help in solving disputes without going to court which hep in save their money and time, the confidentiality in information and matter are protected which is not made pubic and solved by arbitrator which is exist in both the parties. The main importance of ADR is that ruling produces which is mainly binding and decision are achieved towards mutual decisions.
Legal advise on the base of legal frameworks: Case: As per the given case study Amber Ltd is encountering the main issues ad conflicts while smoothly running of business ventures. Through which Mr Anderson is foremost which affects company operationsbecausehe is join as CEO of the firm and now he is going to resign for their post due other options. Legal advice ion form of alternative dispute resolution as per legal framework: Application: In this procedures, both the parties are present their arguments and evidence in front of third party, the arbitrator who will develop a determination. It is mainly used in matters that are extremely technological where it is the matter of confidentiality. The arbitration can be voluntary, ordered by court and can be clause in the contract. The procedure of Arbitration are described as under: AmberlimitedcansoughtaremedyforactingofMrAndersonunderthe arbitration in the present case, there is nothing described in the terms of agreement regarding arbitration clause. Mr Anderson is leaving the job without giving any notice period soi this will not get ready for voluntary union. Amber limited can go along with acquiring arbitration order from court. Arbitration is same to the court procedure as in the end provides binding decision to both parties in disputes. Procedures of acquiring arbitration: According to the Australian law, the initial step is to file an application in court which aregettingcompulsory arbitration along with all evidence and proof, the copy of contract and resignation letter by Mr Anderson. After hearing the case by court, they pass the order of arbitration to solve the disputes. On receiving the court under both parties which are bound to resolve their disputes through arbitration. Amber limited and Mr Anderson can present all proofs, facts and figures related to support the client. All the facts and figures are considered with all evidences arbitrator will pass an order that will binding on that. It is clearly discretion of the arbitrator that can be pass order in the favour of Amber or Anderson.
Amber Ltd select the arbitration method for their company. It’s a shorter, less costly and much more efficient. Arbitration provide privacy and confidentially as their fillings, documents remain safe this was not present in the court proceedings. It is advantageous for the company where the parties want another person to determine outcome of dispute but want to avoid formal way, time and expenses of a litigation. M4 With the help of arbitration, any problem can be solved. It basically requires involvement of third person in the dispute and they listen arguments of both parties and give solution to them. This requires no involvement of courts and is easily solved with the process of arbitrations. According to English Law, Alternate Dispute Resolution (ADR) is one of the best way to resolve conflict and dispute between two parties. As there are three different ways to resolve conflict and from them, arbitration is the best legal solution which can resolve legal problem. CONCLUSION Fromtheabovereport,itcanbeconcludedthatlegalbodiesaremainly responsible for developing laws and acts for the welfare of people of the country. They enact laws that protect their legal rights and obligations. They also prevent individual from discrimination and partiality. Legislature think solution for the issues and that idea take form of bill. After voting of all parliament member and especially of the Queen, the bill is finally converted into legal law. Above assignment has covered different sources of laws and employments laws that should be implemented within organisation in order toavoidillegalpractices.Governingbodieshavealsodecidedharshandstrict punishments for the culprits who try to breach the law and is found in doing illegal activities. With this they create a fear in mind of them and they try to avoid performing these activities next time.
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