Business Law and Ethics: Contracts, Court System, Remedies, Enron Scandal

This document discusses business law and ethics, including contracts, court systems, remedies, and the Enron scandal. It provides insights into contract law, court procedures, and various remedies available to parties. It also explores the Enron scandal in relation to ethical corporate governance and the Sabane-Oxley Act of 2002.

Business Law and
Ethics

Table of Contents
INDIVIDUAL ESSAY....................................................................................................................2
Introduction.................................................................................................................................2
Contract law and its blue prints ..................................................................................................2
Court system in relation to English legal system and advise the parties above which court
action to pursue...........................................................................................................................4
Advise Hilary as to whether binding as whether binding contract exist within herself and each
of following people i.e., Eleanor, Amy and Olivia.....................................................................5
Explain and discuss various remedies available to the parties....................................................5
Conclusion...................................................................................................................................6
INDIVIDUAL REPORT ................................................................................................................6
Introduction ................................................................................................................................6
Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of
2002.............................................................................................................................................6
Conclusion...................................................................................................................................8
REFERENCES..............................................................................................................................10

INDIVIDUAL ESSAY
Introduction
Business law as well as ethics is determined as law that makes sure business related
activities or function. Business ethics is defined as a method that helps in carry out activities of
organisation in proper way. This part of assignment will make sure that appropriate law and
legislation and also court procedure that is adopted for resolving particular case study in better
way (Bu, 2019).
Contract law and its blue prints
The contract is considered as “an agreement that must be legitimately binding on both
contracting parties”. Therefore, it has been analysed that contract law is considered as the
important law that is adopted by an individual person in their working life. The contract must be
in form of verbal and also in printed form (Alderand Wilkinson, 2016). For taking entrance in
particular contract, it is significant to have two parties that made a particular contract. A contract
describes various rights and responsibility and also explains different terms or policies of
particular agreement. It is important for both contracting party to obey different terms of contract
and if any party wants to contravene the contract then it is the duty of that party to provide
reimbursement to affected party. Apart from this, it is important for affected party to provide
evidence in the court that there is a valid contract between both parties and due to contravention
of contract the loss is suffered by one party only. To determine the information that there is a
valid contract exist between party, the court will identify information whether there is a contract
between two parties are exist or not.
The constitution related to contract must be prevailed in particular agreement and for
accepting it valid and binding contract includes acceptance, offer as well as consideration that
assist in take entrance in legal relationship. Offer is considered as “a sign of willingness or
eagerness to agree on certain condition from one party to another.” Invitation to offer is differ
from give offer to other party. It is determined as a first level of offer. It is differ between two
judgement of landmark of Harvey vs Facey (1893) that arise because of telegram was sent by
complainant invent enquiry for low price of property. The complainant determines the low price
and forwards it through telegram only. After this, the complainant forward email that signifies he
agrees to purchase property at low price determined which was concealed disapproved by

defendant. Therefore, the plaintiff approaches court and this signifies that the suspect has
breached the contract. Hence, the Privy Council has affirmed that telegram in which low price
was determined considered as an invitation to offer and the offer which is made by plaintiff
approved by defendant. Therefore, there is no valid contract among both parties. The Other
landmark judgement is named as Fisher vs Bell (1961) in which court has mentioned everything
shows in shops or showrooms is considered as a invitation to offer and the person who eagerly
purchase those things is determined as offer to retailer.
In order to form a contract the next step is determined as acceptance. The person accepts
someone's offer is considered as acceptance. It is important to convey acceptance in better way.
In context of revocation of acceptance, it is only revoked by offeror when it comes in knowledge
of a person. The acceptance can't revoke after it is knowledgeable in context of transmission and
when both parties get bound by contract only.Moreover the consideration is considered as a
second thing for valid contract. It is something which is given by both parties in order to form a
contract. It is in the form of finance and also there are various promises with each other in order
to do or abstain from doing anything (Ghahramani, 2018).
It is important or significant for both contracting party to have a purpose of entering into
legal relationship while forming a contract. Generally if the contract is made by husband as well
as wife or father and son and so on then that contract is considered as void. The landmark
judgement named as Balfour vs Balfour mention that there is an agreement between wife and
husband then the court mentioned that there is no legal purpose between wife as well as husband
and it is not determined as a valid contract.
Court system in relation to English legal system and advise the parties above which court action
to pursue.
In current context the nation emphasized on using legal practices for maintaining peace in
particular country. Generally, English legal system emphasized on taking proper decision for
achieving positive results. In order to resolve such type of cases, Judiciary system is very
important as they distinguish between two parts which is named as criminal and civil. The
explanation for particular judicial system that is given beneath:
Civil Proceedings: it is determined as an important proceeding that is resolved in
particular Judiciary premises. The Civil matters are determined as a less complex that must be
resolved by given judgement by judges of court. During civil proceeding, there are different

types of court such as Magistrate court, Supreme Court, High court and so on. Therefore, the
maximum cases that must be solved by court process of particular country.
Criminal Proceedings: It is required in the situation where crime is considered as a
complex in nature and creates lot of trouble for public. There are different types of proceedings
in context of court under criminal proceeding through which the case is solved. There are
different types of criminal proceeding like Magistrate Court, Court of appeal and Crown court
and so on. Therefore, the magistrate Court emphasized on solving maximum types of cases
during a specific period of time (Harper, 2019).
After analysing the overall case and enhancing awareness in respect of court procedure, it
is significant for both parties to take help from court of country. It is beneficial in order to
resolve the cases that are related to issue of agreement in better way. In addition to this, if
doubtful party is not able to resolve any kind of issue through country code then in this situation
they can take help from other court for identifying conclusion. But if doubtful party applied
application to another court then it takes too much time for resolving these types of issues or
problems. In assistance of this, it is important for doubtful parties to increase their skill and
knowledge in respect of court procedure of country for resolving issues in good manner. The
long procedure must be followed in order to resolve particular issue in improved manner.
Advise Hilary as to whether binding as whether binding contract exist within herself and each of
following people i.e., Eleanor, Amy and Olivia.
Case 1: In this case the advertisement which is given by Hilary is determined as an
invitation to offer in case it is mentioned. It was mentioned by the court that advertisements is
considered as an invitation of offer. In addition to this, herein offer was given by Eleanor on that
Hilary opposed that offer just because it remains close down. Afterwards, when Hillary offers to
Eleanor but it was opposed by Eleanor and there is a conflict or grievances arise among both of
the parties (LAURIE and Dove, 2019).
Case 2: It is considered as a general rule that it when acceptance is given by using postal
method then the acceptance can't be revoked after when it is keep in transmission way as both of
the parties get bound by a particular contract when acceptor sent letter. By using this application
the principle of fact or information we'll also concluded that Amy cannot revoke acceptance
because she has sent letter of acceptance already. This is considered as the judgement which is
named as Entores vs Far Miles East Corporation.

Case 3: Notice keep by Hilary will be determined as an invitation to offer. In this offer
which is connected to buying of painting was made by Olivia that has been rejected by Hilary
which is considered as a there is a new contract exists among both parties.
Explain and discuss various remedies available to the parties
There are various remedies or solution in contact law like compensation as well as
particular performance. The compensation or reimbursement is considered as a solution that
rewarded by Court in connection of any kind of monetary damages. They give awards or
compensation to party who is suffering loss due to revocation of contract. In assistance of this,
the other remedy or problem is specific performance that means there are various situations or
condition in that reimbursement will not determined as an adequate or proper remedy. In these
types of cases, the court can allow specific performance related direct contract.
These both kinds of remedies is determined by Court for declaring particular results in a given
scenario and it also provides benefits to party who is considered as the innocent related to any
kind of case (Lawrence, 2016).
Conclusion
On the basis of above mentioned topics, it has been analysed that business law is
considered as a very significant law that dealing with any kind of commercial party. In assistance
of this, business law and ethical values or worth results in broad contribution or efforts within
activities or function of business organisation in good way. In any contract, it is necessary to
have offer as well as acceptance in addition with term or circumstances. This part of assignment
will make sure that appropriate law and legislation and also court procedure that is adopted for
resolving particular case study in better way.
INDIVIDUAL REPORT
Introduction
Business law as well as ethics is significant part of business organisation as they make
sure that activity or function will conduct in appropriate manner and it is used in achieving
favourable result. This report is depending upon Enron Company and their main emphasis is
towards scandal Sabane-Oxley Act 2002 will be also determine in it.

Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of 2002
Enron corporation case scenario: In 2001, it has been analysed that Enron organisation
financial situation was reported constant by institutionalised systematic through which the fraud
is assessed in relation to accounting (Matulich and Currie, 2017).
Ethical corporate governance – It is considered as a process that assists in make sure
that any organisation perform their work in specific manner that results in maintain balance
between economic factor in an appropriate manner. In addition to this, every organisation focus
on taking several decisions but it is also significant to make sure that it does not create any kind
of issues for public as well as for investors. Moreover, ethical corporate governance give their
opinion when an organisation focuses on optimum utilisation of resources and that results in
eliminating any kind of issues or problems for general public. Ethical corporate government is
considered as a significant for achieving the target in timely manner. It is also significant that the
activities or function of business organisation must be conducted or organised in ethical manner
but in the context of organisation they get fail in specific area and that results in imposes wide
penalties (Miller, 2016).
Sabane-Oxley Act of 2002: In given case, the investor focus on invest their fund in any
commercial activity in order to achieve profit margin in future period of time. There are various
organisations that give fraudulent data or information in mindset of public and those results in
creating issues. Thus, for monitoring and controlling all this kind of activity or function in an
appropriate manner this act Sabane-Oxley Act, 2000 commenced that make sure that no
organisation can give any kind of fraud data and information to its stakeholder. Moreover, in
organisation there is various accounting information is important or significant to present in an
appropriate manner. It is significant to conduct or organise audit in order to gain proper
information to its stakeholder. In addition to this, the primary purpose for implementing this act
is to make ensure that the company will not control any kind of law and tried to gather
information that is connected to scandal has not been organised by any business organisation. In
assistance of this, there are various types of legislation which ensure that every record of
business organisation is maintained in proper manner that must be related to Commercial
activities or function. In this situation, the business organisation focuses on follow all rules and
regulation or law otherwise they will charge high penalties during the particular period of time.

There are several organisations which organises different kind of scandals in past years and it
results in generating various kind of issues or problems for stakeholders. Furthermore, the main
purpose for commencing this act in relation to Enron Corporation they conduct or organised one
or more is scandal within this sector that is connected to fraudulent statement of accounting.
Herein, the financial report and accounting statement that presented in business organisation was
considered as a false and which imposes adverse influence on stakeholder. Due to fake
accounting statement of organisation they suffer a loss of $74 billion (Muller and Fink-Samnick,
2017). After organising this kind of scandal, the organisation was categorised or divided within
bankrupt that comes under the top 10 largest scandal that is connected to corruption. This scandal
is considered as a big in nature that the staff member of organisation has lost their employment
without receiving any types of salary. In this case, the offender was punished by sentence of 24
years.
Discussion of the case in terms of Corporate Governance and ethics
It is significant to understand the corporate governance as well as ethics have their
significance within business organisation as well as in case administration of Organisation was
tried to increase its benefits. The profit margin of organisation will increases by raising finance
from investor and improper information was given by organisation which is considered as an
unethical. The false information which is presented by organisation based in attracting the lot of
investors towards them. The corporate governance provides suggestions to the organisation to
provide the true fact or information regarding the organisation to its stakeholders or investor. In
an organisation, it is responsibility or duty of top management that they must take the appropriate
decisions which will be beneficial for organisation in future period of time. But in connection of
this scenario, the management do not take any kind of responsibility that results in increasing
burden and also increase the debt in future period of time (Swanson and Frederick, 2016).
As per the ethical values, it is important for Enron Company that they have determined
that the staff and stakeholder before included in any kind of scandals. In addition to this, the
scandal was considered as a broad in nature and the organisation is not capable to organise their
activity and function of Organisation in future in an appropriate manner. Thus, it is necessary for
a company to follow all terms and condition otherwise there are generating lot of issues in future
period of time. The corporate governance provides discussion regarding taking appropriate

decision which is beneficial for both public as well as investor who is significant for company.
The reason for all these kind of issue is considered as a high risk taken by the company.
Discussion of the case in terms of Sabane-Oxley Act, 2002.
These laws launched after the scandal which is conducted by Enron Company. The law
signifies that the activity of business organisation conducted by Enron Company was not under
the lawful activities as well as legislation. As per this act, it is significant for organisation to have
proper statement of accounting. If organisation was not capable to maintain any kind of
accounting statement which is necessary under the law then it impose high penalties. In addition
of this, it is significant that proper audit must be done and it was analysed that those organisation
was not perform their work according to law and lack of audit that result in generating biggest
scandal by administration of organisation. Furthermore, the main reason in connection of
forming or maintaining accounting statement is to ensure that stakeholder can conclude situation
or condition of Organisation in which they are taking decision that organisation is proper for
investment purpose or not. Therefore, it is significant for organisation to maintain accounting
standard which is necessary for image or goodwill of organisation. If there is any kind of wrong
statement that results in adverse impact on working of organisation (Tinker and Saxe, 2016).
Therefore, the commencement of law is described as a duty of every accountant of
organisation. Even, it is the responsibility of auditor of organisation to follow the law in an
accurate way. If there is any kind of issues arises against the auditor of organisation then they
face lot of problems or issue through which they are liable to pay penalties. In assistance of this,
scandal must be in broad in nature, the business organisation was not capable to organise any
kind of business activity or function in future period of time. In addition to this, corporate
government will provide discussion that the organisation is not capable to take any kind of
decision which are advantageous for public as well as investor who is significant for
organisation. The main reason for all this kind of issue is high risk taking ability of organisation.

Conclusion
Business law is significant in dealing with any kind of commercial activities or function.
Although this act Sabane-Oxley Act 2002 is considered as the proper law in nature because it
make ensure that all accounts or transaction of organisation are under the law. In assistance of
this, it is significant for organisation to maintain accounting statement by using appropriate
information in proper way. Because wrong statement results in imposes negative impact on the
brand image or Goodwill of company in front of public at marketplace.

REFERENCES
Books and Journals
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