English Law and Business Ethics

This study delves into the world of English law and business ethics, exploring the complexities of statutory and common laws, as well as judicial resolutions in a business context. It examines various sources of English law, including books and journals such as 'Business Law and the Legal Environment' by Beatty et al., 'Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization' by Crane and Matten, and 'Employment Law: An Introduction' by Taylor and Emir. The study also discusses the importance of understanding legal solutions based on different country's legal systems and/or a contrary judicial framework.

BUSINESS LAW ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different sources of Laws.....................................................................................................3
P2. Role of government in law-making and how statutory and common law is applied in the
Justice Courts..............................................................................................................................5
TASK 2............................................................................................................................................6
P3. Potential impact of company, employment and contract law on business...........................6
TASK 3............................................................................................................................................8
P4. Appropriate legal solutions for business problems...............................................................8
P5. Providing justifications for the use of appropriate legal solutions.....................................10
TASK 4..........................................................................................................................................12
P6. Recommending legal solutions based upon a different country’s legal system and or a
different legal framework..........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business law is a regulatory concept which is helpful in effectively regulating the
enterprise activities for any company. These laws assist an organization to work properly and in
legal manner. For any commercial enterprise, there are various laws and regulations that are
mandatory for them to follow as this will assist in running their company smoothly. These legal
instructions include the laws that aid them in governing these firms on how to start, buy, manage
and close or sell any type of project. It is very important for any firm to have an effective
management which can only be achieved by applying these laws in their system through which
they can improve their overall performance.
Present report will talk about various sources of laws and will also explain the role of
government in law-making process and how statutory and common law is applied in justice
courts. Besides these topics, it will also discuss about the potential impact of employment and
contract law on business activities. It will suggest suitable legal solutions for enterprise problems
such as, termination of contract, rescue from insolvency and liquidation, etc. and providing
justification for the use of appropriate resolution. This document will also recommend judicial
solutions based upon a various country’s legal system and or a different legislation framework.
TASK 1
P1. Different sources of Laws
There are many sources of law in any society. Some laws will be written in the
country's Constitution; others will be passed by the legislature, usually the Parliament or
Congress, others will come from long social traditions (Twomey, Jennings and Greene, 2016).
Sources are known to be an origin point from where law has been derived.
The principal national sources of UK law are as follows:
 Statutes: These laws are originated from the UK Parliament and devolved legislature
respectively.
 Delegated legislation: Any law passed by a lawful government which is different from
English common law will take precedence over communal legal document. It is
considered to be the prime source of UK laws. All the legal documents under this section
is derived from competent authority. It can have various purposes, for example:
regulation, authorization and provision of funds, sanctioning, granting, declaring or

restricting any particular regulation. Parliamentary legislature formulates many new
rules, which include Act of Parliament for amending, repealing laws that are obsolete.
Legislature may provide powers to other legal lower bodies sanctioning in different areas
across a particular nation. In United Kingdom, such delegation consists of Orders in
Council, Statutory instrument and Bye-laws.
 Case Law: These Judicial precedents are based on Doctrine of Stare deciding and they
are related to Jurisdiction which relies on Common Laws. These concepts are adopted by
system of Civil Law. Precedent can be defined as law principles that is formulated from
decisions that have been made earlier. Judgement which are passed are generally
recorded which becomes significant for application in practical scenarios (Beatty,
Samuelson and Abril, 2018). Every authoritative precedent act as a guide for those
individuals who are involved in decision-making. As compared to other law sources, it
has advantages of flexibility as well as adaptability, which may allow a judge for
applying the concept of providing justice rather than implementing law.
 Customs: It is also known as 'general custom' and can be normally written. These are
involved in tradition of individuals which belong to a particular society and are practicing
since many years. Therefore, the existence of such laws has become immemorial and are
practiced as a strong legal document among them (Hannigan, 2018).
Other than this, there are some international sources of UK laws that are also present; for
example,
 European Union (EU) Law: It is known to be an important example of International
Law. Any European country that joins European Union has to follow every rule, which is
related to this community such as directives, precedents, decisions and other treaty
provisions. It provides them an opportunity to coordinate together for several purposes
(Golynker, 2015).
 Treaties: Government of a state or a country can sign many international treaties but they
are used for some circumstances only. These can be related to maintenance of peace
among neighboring countries or successful conduction of trade activities that can be
beneficial for both member nations and their natives.

P2. Role of government in law-making and how statutory and common law is applied in the
Justice Courts
It is very important for government to maintain structure of various legislative entities
that is present in the Parliament. Majorly, the government plays three core functions in law
making process, i.e., protecting interests of native or local citizen, helps in providing effective
structure in governing nation which consists of various policies and regulations for country's
growth and aids in implementing any bill in the Parliament. These are the basic roles which is
regulated by the government. These policies and laws help the citizens by providing them a
source of control that can assist them in regulating social scenario of their country or state
respectively. These also support in serving the basic rights to their citizens so that they can be
aware of all the laws and regulations that are present in the Parliament for them (Difference
Between Common Law and Statutory Law, 2017).
The main purpose of government in the process of law making is to perform their duties
which is for the betterment of country and can help them in enhancing overall development of
their society and people who are living there. Government of UK helps in maintaining laws or
bills that are passed in the Parliament to check whether they are working properly or not and to
ensure that everything is going smoothly. Two laws that have a huge impact in country are
statutory and common laws for civilians of a nation.
Application of Statutory and Common law in Justice Courts is described below in detail:
 Application of Statutory law in the Justice Courts: It is used to define written law that
is enacted by a legislative body. These are generally passed by various government
agencies of country. New laws are generated to fulfil the requirements of their local
citizens as it helps in resolving their issues and assist in formalizing existing laws for
their benefits. Statutory laws follow the usual process of legislation, such as a bill is
proposed in the legislature on which voting is performed by Parliament (Common Law vs.
Statutory Law, 2017). If this bill is further passed or approved, then it is forwarded either
to a Governor at the state level or to the President at federal level for further proceedings.
All the statutes that are performed in the Justice Court is recorded or written for future
use by the Parliament.

 Application of Common law in the Justice Courts: Common law is also known as case
law and these are of two types, one in which any judgement is passed in the Parliament
becomes entirely a new law in the legislation in which there are no statutes and in second
one, judges can interpret the existing law and determines new boundaries and
distinctions. In this law, judges mainly resolve cases on the basis of rulings of prior cases
with similar circumstances. The common procedure to apply this law in the Justice Court
starts with research on previous cases that are similar to present scenario and study it.
Common law is being developed on an everyday basis without causing any harm to
society or creating any expense to the state (Common Law vs. Statutory Law, 2017).
Apart from these common and statutory law, there are also the regulatory laws framed by
various government agencies that have an authorization to do so once statutes are created by the
legislature.
TASK 2
P3. Potential impact of company, employment and contract law on business
Company, employment and contract law plays a very important role in any business as it
has a huge impact on their organization. These laws help in facilitating controlling of all
commercial activities that are necessary for acquirement of their goals and objectives
successfully (Olsen, 2015).
These laws are explained below:
 Company Law: These laws are designed to regulate corporations formed under the
Companies Act 2006. This law assists in regulating all the legal rules and regulations that
is related to company that has to be implemented the right way. These laws help in
running any organization smoothly with the legal obligations followed properly.
 Employment Law: These laws are basically designed to protect rights of employees who
are working with an organization. It is very essential for owner of the company to
effectively implement this law (Taylor and Emir, 2015). Different sections that are
covered in it helps in making regulations that are beneficial for employees; for example,
employment contracts and conditions, treatment of employees, employee pay and
working hours, etc.

 Contract Law: It is a body of law regulating contracts in England and Wales. These laws
are very important for both people, i.e., offerer and offeree, who are involved in the
making of any contract. This helps in keeping up a written record of their final contract
(McKendrick, 2014). If any person breaks this contract, then he or she will have to face
the consequences.
Following are the legal advices that is given to client with justification on various
business issues:
1. Legal Advice to Adebonojo: As per the given scenario, Adebonojo had a Western union
money transfer, freighting and cargo business which was based initially in US and now
headquartered in United Kingdom. After several months of planning, he decided to create a new
brand name within the freighting and shipment industry specializing in West African clientele.
According to Company Act 2006 of United Kingdom, to create a new company, it is
necessary for Adebonojo to register his company first by completing some documentation; for
example, he has to subscribe his name to the memorandum with all the basic details like its
proposed name, address of his registered office and mention whether it is a private or public
company.
For naming the company, it is necessary for Adebonojo to complete his firm's name with
'limited' or 'Ltd' as it is stated under Company Act 2006, s59 and it will be a private company
(Crane and Matten, 2016). He should also ensure that company’s name must not be same or
similar to any other registered companies names (Company Act 2006, s66). To deal with such
issues, Adebonojo can check the names of existing companies using 'Companies House website'.
Once the company is established, he is responsible of all the processes that is performed in it. If
he does not follow all these rules, then it is not possible for him to establish it.
2. Legal Advice to Chukwuyedi: In the given scenario, Adebonojo has set up his own company
in Deptford London. He has started employing people for his company - one of whom is
Chukwuyedi who recently arrived in London. Adebonojo went to Nigeria where he met some
leading cargo and shipping agents in Abuja to buy some new stock. During his meeting, supplier
found that he was from UK and offered him some overpriced rates for services and also treated
him badly. Angry Adebonojo called Chukwuyedi and told him not to serve anyone from Lagos
area. Chukwuyedi got very upset about this as he was born in that region, so he gave resignation.

According to the Employment Act 2002, United Kingdom which is an agreement
between employee and employer with terms and conditions in written statement of particular job.
In this case, Chukwuyedi was not allowed to give resignation from job as it was legally not right.
His sudden resignation can have a huge impact on overall business of company and can affect its
performance (Employment Act 2002, 2018). Before giving his resignation, he should have
discussed with Adebonojo and explained his reason behind it. This will help them in coming to a
mutual solution which can be beneficial for both of them.
3. Legal Advice to Bob: As per the given case, Adebonojo had launched a new import/export
division for West Africa, where he sold £200 per container. Bob made an offer to Adebonojo to
buy 7 containers for £1,400 which he accepted it and agreed to deliver the goods in the following
month. But Bob did not get his delivery so he called Adebonojo and was informed him that due
to some supplier issues, delivery has been delayed and might get delivered in 2 days (Davidson,
Forsythe and Knowles, 2015). Bob finally got the delivery but found that the contents were not
exactly as he envisaged at the time of contract.
According to Contract Law of United Kingdom, if there was a contract between
Adebonojo and Bob then it is legally correct that Bob could file a complaint against Adebonojo
as he had delivered him the wrong contents.
This comes under Misrepresentation Act 1976. According to this act, there are two
categories of misrepresentation: fraudulent and innocent. Under Section 2(1) of this Act, Bob has
suffered great loss in this contract so he can claim to get his money back or Adebonojo has to
exchange product and send him the right container (Griffin, 2018). Other than this, Bob could
also handle this case mutually, by talking to Adebonojo to give him the refund so that it can be
resolved outside the court.
TASK 3
P4. Appropriate legal solutions for business problems
For avoiding the termination of contract between John White and Akbhar Abdi, the
following solutions can be adopted:
Negotiation- It is very important to conduct a meeting before taking any final step. This
can be adopted between two individuals, where John White can describe health issues. As he is
unable to continue the contract, a meeting session must be organised in which both has to decide

an effective resolution of problems which John white is facing (Crane and Matten, 2016). A
common solution like work from home or some other decision can be extracted which can
benefit both individuals for successful completion of the project. Negotiation is regarded to be
the most efficacious solution for saving any type of agreements between individuals.
According to Employee law, company should provide compensation to John for proper
treatment of the health issue as well as for the work he has already carried out. As he is
terminating with prior informing and for a genuine reason.
Prior Noticing- John White should start providing notices for his poor health and issues
which he is facing in delivering services to him. This would help both individuals to be aware of
. One of the benefits of prior noticing will be that a mutual solution can be taken out. Apart from
that, all the functions and operations can be settled accordingly and can prepare future strategies
to avoid any losses which might occur due to absence of John. This would help to overcome the
consequences or to find effective remedies for avoiding termination of contract between them.
Also, John can provide alternate individual who can continue this contract on behalf of him.
Dean Rizvi LTD can be saved from getting liquidated or rescued for insolvency through
adopting following legal solutions-
Financial Experts- They provide effective solutions for companies whose existence is at
threat. Company can hire experts for taking financial decisions which can be very beneficial in
future aspects. These individuals have better insights for information related to all such retention
strategies as well as sources which can be implemented for resolving the company from
liquidation or insolvency. They are considered to be better analysis and can provide effective
suggestions for improving financial situation of a firm.
External Sources of Funds- There are several sources of raising funds which can be
used for procuring financial resources for overcoming the situation. Banks are considered to be
one of the best and most preferred traditional sources for business. Most of these institution
provides loans at lower interest rates (Gillers, 2014).
Mergers- It is regarded to be one of the best solutions which can be adopted by an
individual for saving up business. Under this strategy, one can merge with other company who
delivers same services to customers. With this, company would be able to maximise the base of

his buyers and would get financial aid from other firms. With this, the profit earned can be used
for making better situations of the commercial trade. Apart from that, new strategies of
investment would help Dean Rizvi LTD to conduct business in complete new direction.
Acquisition- This is beneficial when company cannot recover effectively and losses are
much more than compared to earnings. Therefore, firm could seek for other bigger firms which
can acquire his company. With this, his enterprise would get a financial support which would
help the business to get expanded. This can be regarded as the best strategy because a fresh
direction will be provided to business under guidance of experts who are much more established
in company.
Selling the company-Organisation can adopt this strategy from recovering every loss that
has been created in his business. As when other individual will buy whole firm, he can continue
it with new ideas. These new ideas would help the company to grow and restart fresh in market
(Trevino and Nelson, 2016).
Under the company law, the preferential creditors of organisation are R bank and John
White. The value amount of the company which is £400,000 was first provided to its first
creditor which is R bank who owed £450,000. After clearing debt the company has no money
left for John White to pay.
P5. Providing justifications for the use of appropriate legal solutions
The legal solutions which are provided to Company and John were very apt due to
following reasons:
Negotiation is considered to be the best solution for avoiding any kind of agreement
between two parties. It provides a chance to understand expectations as well as needs of each
other. With this both groups can clear out their problems or reasons due to which they want to
end contract between them. This remedy is considered to be most flexible as one can adjust
every terms and conditions mutually. Individuals can shape it according to their will. Apart from
that, it is considered to be a voluntary process. No one is forced to participate in it against their
consent,
Prior noticing can be very beneficial for other party with whom contract has to be
terminated. This provide a chance to other individual to think about appropriate solution. With
earlier informing, one tends to fulfil his ethical duty towards another party. With this, one gets

enough time to search for alternatives which can avoid the loss that can be caused due to
termination of agreement (McAdams and et.al., 2015). Also, both parties can work mutually to
find out an efficacious solution.
Apart from this, it is the duty of individual to provide an alternate candidate who can
work on behalf. This can be implemented if, one party decides to terminate the contract in
between. Therefore, for ensuring proper functioning of deal this remedy can be implemented.
For protecting Dean Rizvi LTD provided legal solutions were very appropriate due to
following reasons.
Financial experts are those individual who have expertise in providing effective
resolutions for those companies who are about to get insolvent or liquidate due to poor financial
conditions. They have effective analytical skills and effective predicting quality of future aspects
which can affect the business in positive or negative manner. With complete statistical
information one can provide effective remedies that can improve financial position of company
in market. Also, suggests appropriate sources for funds raising.
According to the case law of Mann v Goldstein which is a UK insolvency law case which
was concerned with brining the widing of petition of a company that is alleged for not able to
pay its debt. It was suggested that orngisation should be wind up on the petiotn of creditor.
Bank is known to be the best external source from where one can raise financial amount
very easily. There are several banking institutions that provides loans to numerous firms on low
interest rate. Their major aim is to help those organisations who are facing fund crisis. Apart
from that, government has taken many initiatives to help young entrepreneurs for expanding as
well as growing their business. There are some legal procedures that has to be completed before
availing funds from banks. This might help firm to invest money in other projects too. As it
would provide some financial support to company.
Mergers are very beneficial for companies as it provides many advantages to the firm. It
increases base of customers in market and combine shares of both organisations in market makes
them to give a good competition to other rivals. Also, sales aspect improves that maximises
profitability of both companies working together (Sorokin, 2017). The revenue amount is
divided equally among both. Other benefit of merger can be, both organisations have the
freedom of working with their respective names in market. Therefore, they operate as individual

identity in market. There is a possibility of grabbing more customers in mark as both have
opportunity of targeting different segments of potential buyers.
Acquisition is considered to be another effective solution for preventing the company
from getting liquidate or insolvent. Under this strategy, company can allow his company to get
acquired by some other bigger firm. This would lead to make his business more secured as it will
get combine with another successful organisation. Apart from that, company gets a fresh name to
start with and pre availability of strong base of customers for selling. Also, selling out business
can be a difficult decision (Hill, 2017). But there are, many advantages which can be grabbed
through this. Person is able to invest in some other projects which can be beneficial for firm to
start with new phase.
For distributing assets in liquidation to the creditors there is section 45 under which he
must acknowledge the market value of company and should distribute accordingly. among
shareholders. Under company law, there are preferential creditors that are placed at a hierarchy
according to which to which they are needed to be paid by John.
TASK 4
P6. Recommending legal solutions based upon a different country’s legal system and or a
different legal framework
To AAD fashion Ltd,
Pakistan
17th September, 2018
With the failure of fulfilling the contract with Craig Couture. This case has become a
matter of concern. This unethical action has been taken seriously which resulted in loosing this
contract. This case must be resolved in court to get effective resolution of the problem which
both parties are facing. The UK legislation has following structure that is very important to
know:
There two types of laws in UK i.e. Criminal Law and civil Law :
Where, criminal laws are concerned with all such offences that are against the society and
crimes are large. Whereas, Civil laws are those where disputes are between private parties. For
this both groups sues each other for obtaining damage or related injunctions (English Law: An
introduction. The English legal system. 2018). The sources of laws can be form statutes which

are legislation involved from parliament house of the UK and other is common law which is
derived through principles involved in cases for standardisation.
While arbitration has several advantages. As they are considered to be ancillary agreements,
When arbitration is made mandatory as well as binding, both parties reach the court for a
definite solution. Apart from that, there are limited avenues for appeal that can create more
chances of errors in decision making. While resolving the dispute in case can be somehow
positive.
As the legal system of UK is very structured and works on evidences where all the decisions are
taken by considering civil or criminal laws which are already defined as per Constitution. The
case must be solved on mutual consent by both the parties.
The difference between Institutional and Adhoc Arbitration is very important to
understand which is described below. While, both parties opt for Institutional arbitration where
a specialised institution will be taking over this matter and will continue the whole process.
They have their own independent legal systems for assisting any problem towards an effective
resolution. Both can opt for London Court of International Arbitration (LCIA) or the
International Chamber of Commerce (ICC).
There are several advantages that both can avail by adopting this option for resolving
conflict. As there is availability of rules which are already pre-established. While Adhoc
arbitration are not administered by any kind of institutions (What is Arbitration? 2018). All
parties involved in this body approaches to a decision with mutual consent. These are more
flexible, cheaper and faster than compared to institutional decision making. But there many
disadvantages which are associated with it. All the procedures that are incorporating statutory
laws adopt an ad hoc kind of provision from other contracts. Therefore, both parties can decide
a mutual decision for resolving the dispute in an effective manner.
From
Commercial solicitor
CONCLUSION
From the above report, it can be concluded that business laws are very important for any
company to work effectively and smoothly. These laws are mandatory for every firm to follow

properly. These legal procedures help in understanding all the rules and regulations that are
compulsory for them to implement in their management system. This study also explained about
various sources of English law and how they are applied in the court.
Present study has also discussed about statutory and common laws and how they are applied
in the Parliament to resolve any case effectively. It also advised judicial resolution to business
issues which can arise in an administration with appropriate justification. In the end, it has given
recommendations on legal solutions based on different country’s legal system and/or a contrary
judicial framework respectively.

REFERENCES
Books and Journals
Beatty, J. F., Samuelson, S. S. and Abril, P. S., 2018. Business law and the legal environment.
Cengage Learning.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Davidson, D. V., Forsythe, L. M. and Knowles, B. E., 2015. Business law: Principles and cases
in the legal environment. Wolters Kluwer Law & Business.
Golynker, O., 2015. Family-friendly reform of employment law in the UK: an overstretched
flexibility. Journal of Social Welfare and Family Law. 37(3). pp.378-392.
Griffin, P. B., 2018. The Notion of Good Faith in Common Law and Civil Law Contract Law.
Hannigan, B., 2018. Company law. Oxford University Press, USA.
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
Olsen, T. D., 2015. Law, Business and Human Rights: Bridging the Gap, edited by Bird Robert
C., Cahoy Daniel R. and Prenkert Jamie Darin. Cheltenham, UK: Edward Elgar Press,
2014. 269 pp. ISBN: 978-1782546610. Business Ethics Quarterly. 25(4). pp.590-593.
Taylor, S. and Emir, A., 2015. Employment law: an introduction. Oxford University Press, USA.
Twomey, D. P., Jennings, M. M. and Greene, S. M., 2016. Anderson's Business Law and the
Legal Environment, Comprehensive Volume. Nelson Education.
Online
Common Law vs. Statutory Law. 2017. [Online]. Available through:
<https://www.diffen.com/difference/Common_Law_vs_Statutory_Law>
Difference Between Common Law and Statutory Law. 2017. [Online]. Available through:
<https://keydifferences.com/difference-between-common-law-and-statutory-law.html>
Employment Act 2002. 2018. [Online]. Available through:
<https://www.legislation.gov.uk/ukpga/2002/22/contents>
English Law: An introduction. The English legal system. 2018. [Online]. Available
through:<https://www.inbrief.co.uk/legal-system/english-law/>
What is Arbitration?. 2018. [online]. Available
Through<https://adr.findlaw.com/arbitration/what-is-arbitration-.html>