Alternative Dispute Resolution in Business Law

This assignment delves into the complexities of business law, focusing on alternative dispute resolution (ADR) methods like arbitration. It analyzes case studies involving Busy Bees and AFG Oil Company, providing legal advice regarding wrongful and unfair dismissal. The assignment also explores the formation process of English law and its various sources.

BUSINESS LAW

Table of Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
P1 Various sources of law......................................................................................................3
P2 Government’s role in law making.....................................................................................4
TASK 2......................................................................................................................................5
P3 Advice on different case scenarios...................................................................................5
P4 Legal solution to vocational scenario...............................................................................7
P5 Justification to the answer for PHB Ltd and Busy bees scenario.....................................8
TASK 4......................................................................................................................................9
P6 Legal rights of AFG Oil Company...................................................................................9
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................11

INTRODUCTION
Business law helps in assessing the rules and regulations that have to be followed by
the companies in their functioning. The report makes comprehensive discussion on varied
sources of law in English system such as legislation, common law, human rights law and
European Union law (Folsom And et.al., 2012). Further, steps to law formation and role of
government in it will also be discussed in the report. In addition to this, the report focuses on
steps followed by companies for name formation will also be discussed. In the end,
arbitration method of Alternative Dispute Resolution (ADR) will also be discussed in the
report to make the understanding concrete.
TASK 1
P1 Various sources of law
There are four main sources of English law. They are, Legislation, case (common) law,
human rights law and EU law. The origin of each kind of law is different which is mentioned
in detail below:
 Legislation: It is created by the legislature. These are the acts that have been made by
the parliament and are considered to be the most important ones. He principles made
in legislation are performed in parliament which is situated in London. It is the only
body in UK which have been given rights to prepare law through the acts which can
further be applied to all the four countries of UK. There are basically two types of
parties in the parliament of UK. They are the House of Lords and the House of
Commons. 650 members are present in the House of Common who happened to take
part in the process of law making (Scholes, 2015). They members of the parliament to
cast their votes at the time of election and the member who receives maximum votes
is appointed as MP of the House of Commons. On the other side, there are around
800peers present in the House of Lords out of which 600 are duly appointed by the
Queen as per the recommendations received from the parliament. The person who
have received the aristocratic titles such as, Lord or lady and senior bishops of the
church are allowed to become the peers of House of Lords.
 Case (Common) law: The laws formed through the common laws are the one who
have been inspired by some cases being decided by the senior appellate. The laws
compiled in it are basically followed by England and Wales (Cheeseman and Garvey,
2014). The decisions that have been taken in the past are considered by forming this
type of law. All the arguments are considered before it If any aspects of the case is not

clear then it is being clarified by the court. Courts then try to make the interpretation
of the issues being faced before the parliament. After all the clarification is made,
final law for the country is formed.
 Human rights law: This type law came into existence in 1998 and was then come
into force from October 2000. The identification of these tights was made by
European Convention on Human Rights (ECHR). It is the signatory member state of
UK. Human rights are compulsory for all the people of country to follow all the rules
and policies laid down in it.
 EU law: UK is the signatory member state of European and hence all the laws, rules
and regulation that are enforceable in EU are automatically to be followed by UK as
well. However, the Brexit is applied to the country, in that case, it will not be
compulsory for the country to follow these rules that are issued by European Union.
P2 Government’s role in law making
While indulging in the preparation of the law, the government is involved in assessing
the requirement of the citizens. Based on the assessment made and promises being made in
the election manifestations law making process is initiated. Hence, fundamental role is played
by the government in the process. Hence, the process involved in the preparation of law is
mentioned below:
 Bill: it is the first step where the draft of the proposal bill is submitted stating the
requirement of the bill. It covers the explanation of the bill. There are basically three
types of ill which are, public bill, private bill, and private members bill. Private bill
have significant impact on a particular community or person. These are mainly
prepared by backbench of MP. However, in case of public bill, a significant impact on
people at large scale is noticed. It is prepared by the cabinet. Some of the examples of
public bill are Constitutional Reform act 2005 and Criminal Justice Act 2003.
 First reading: In process of the law formation, this is the fist reading of the proposed
bill organised in House of Commons (Smith and Malloy, 2013).
 Second reading: There is a debate conducted to assess the viability and feasibility of
the bill and amendments are made based upon the conclusion of the debate conducted.
The voting is then conducted in the parliament to decide that whether the bill should
be forwarded to next stage of law making process or not.

 Committee stage: Detailed examination of the proposed bill is then conducted by the
members of House of Commons to assess that whether it will be able to fulfil the
available requirements or not. Further, amendments as per the requirements are made.
 Third reading: The House of Commons are again presented with the amended bill
for which voting is conducted to assess its acceptance or rejection.
 House of Lords: At this stage, it is the time for House of Lords to indulge in
reviewing of bill after which it is sent to the House of Commons again.
 Royal ascent: It is the full and final stage of the bill for ascertainment that whether
the bill will be passed and get converted into law or it will be rejected by the house of
parliament. If the bill is passed and gets converted into law then it gets applied to the
general public as well.
TASK 2
P3 Advice on different case scenarios
1. Collin and David’s step and other legal considerations to be taken care of by
them
There is a restriction to use the name of the organization if the entity with same or similar
name already exists in the market. A guide has to be followed in UK which is issued by the
government while deciding a particular name for the business. The guide is easy to
understand, read and followed and hence it is easy to be followed by the organizations
working or functioning in UK (Kinicki and Kreitner, 2012). As per the name guidelines to
followed, some of the rules and regulations are mentioned below:
 It is not allowed to adopt a name that is too alike to the name of the entity which is
already existing and functioning in UK.
 Any misleading information regarding the functioning of the company cannot be
considered while deciding the name. Further, the name must not hurt any
community in the country and must carry any sensitive information about it.
 All the important information regarding the name and its functioning must be
made clear during the registration process
 The information must not harm the entity or any community in the country.
 When the suffix ’limited’ is used with the entity, in that case, it must be able to
justify its operation as a limited company. Omission of any relevant information
during the registration can lead to null and void of the process.

 The name must not be confused to some company or its goodwill. This process is
also known as opportunistic registration.
 The name must suggest the same activity that is performed b the company and not
the one which not performed by the company (Disch, 2016).
If the company is not following the above mentioned rules, it can lead to the violation of
the law. It can make the entity liable towards penalty.
2. Rights carried by Sophia for employment in the firm
It is important for the companies to consider all the important aspects before
dismissing the employee from the employment contract. There are certain rules and
regulations that are issued by the government which is to be followed by the
organization. There are three dismissal rules which are mentioned as follows:
 If the employee is not able to perform his duties as per the set standards of the
employer then it that scenario the employer have right to dismiss the employee from
his job (Lieberman And et.al., 2016).
 The person has the competency to perform his job but is not ready to do it due to
some circumstances then in that scenario; he can be dismissed by the employer.
 If the employee is involved in performing or encouraging other employee for
misconduct. It can be in the form of late arrival, absence without the permission etc.
In this case as well, the employer can dismiss the employee from the job.
Further, misconduct can be in the form of misconduct, serious misconduct and gross
misconduct. The employer have right to dismiss the employee in any of the three situations.
However, the dismissal can be performed in the following three types:
 Fair or Unfair dismissal: The dismissal can be fair or unfair. It can be based on the
act or reason die to which the employee has been dismissed. Further, the process of
dismissing the employee followed by the employer also makes it fair or unfair.
 Constructive dismissal: Dismissal can be constructive if the employer has forced the
employee to give resign due to the reason being created by the employer. The reason
can be breach in the agreement from the side of the employer, demotions, cutting
down of the wages or salary, etc (Crane and Matten, 2016). Another issues can be,
change in the location of notice without prior approval or notice to the employee,

forcing the employee to work in hazardous or unsuitable situation. It forces the
employee to give resign on the job.
 Wrongful dismissal: The dismissal can be wrongful if the employee is not given
adequate time to serve his notice and the contract between them is directly terminated
without any prior notice.
Hence, based on the given case scenario, Sophia was involved in the process of
misconduct and hence she can be dismissed by the employer. However, wrongful
dismissal has been used by the employer as she was not given prior information or any
notice period before the termination was performed. The dismissal was performed due to
continuous absence from the work place. Further, she was also involved in issuing fake
medical certificates to the employer despite of not being ill. Therefore, dismissal could
have been performed y the employer but is a rightful manner to avoid any legal actions.
3. Legal advice regarding Mrs. Khan’s contract with AD Motors
The terms and conditions that have been written in the contract are to be followed by both
the parties involved in it. The contracts can be null and void if any o the conditions stated in it
are not followed properly. The breach will then give the rights to the aggrieved party to get
the settlement payment or otherwise can sue the other party as well. It give the right to the
innocent party to not extend the due payment and approach to the court for the wrong
happening. The full and final settlement is then made by the court.
In the given case scenario, Mrs Khan came in contract with AD Motors where the
latter had to give service to the vehicle and change some damaged arts as well. The new parts
of the vehicles should have been branded and not from any local company. However,
opposite to the contract, AD motors used duplicate parts and put it in the vehicles. When Mrs.
Khan learnt about the breach of contract, and she forfeited the payment which was to be
made to AD Motors. It was the fraudulent activity performed by the company. Hence, Mrs
Khan have right to approach to the court for full and final settlement and receive the damage
that have been created by AD Motors. Further, it is out of intentions that fraud have been
performed which can penalise the AD Motors for his doings.
P4 Legal solution to vocational scenario
The terms and conditions that are included in the contract must be followed by both
the parties that are involved in the contract. However, any breach from any of the parties

involved makes the contract void. Further which no other conditions included in it can be
brought into practice.
In Singh appointed PHB limited for the construction of his building. However, he left
and terminated the contract after completing 60% of the construction work. Further, Mr.
Singh completed the construction by the leftover material. After the termination has already
been performed on the contract, there is no right of the construction party to claim over the
material. Hence, there is no authority of PHB Limited to sue r Singh for the leftover material.
Hence, no rights of the material will be transferred to PHB limited and Mr. Singh will not be
penalised.
In another case scenario given for Busy Bees where a company has went into
liquidation and Samantha is appointed as a liquidator of the company. The company do not
have adequate funds in order to pay off his obligations. However, in case of liquidation, the
assets hold by the company are sold so that the liabilities can be met in the best possible
manner. Further, if the company do not hold adequate amount of assets so as to set off its
creditors. Therefore, in that case prorata and preference based set off activity is performed by
the liquidator of the company which is Samantha in this case scenario. In this case, Aston
business society holds the fixed charge of the asset who has owned 1,80,000 to busy bees.
Therefore, the amount received from the sell of asset will be transferred to Aston business
society. However, if the fixed charge would not have been hold by the company, in that case,
pro rata based allocation would have been performed (Coffee Jr, Sale and Henderson, 2015).
P5 Justification to the answer for PHB Ltd and Busy bees scenario
PHB Limited was not able to fulfil the contract and left it in the middle hence the
contract was already been terminated at that point of time. Hence, no rights are held by PHB
limited due to the breach in the contract in between. Further, following the rules and
regulations issued in termination clause of contract law, PHB limited holds no right on the
issuance of legal letter to Mr. Singh and sue because the former one will only be penalised for
the same (Trademark Law and Naming Your Business, 2017).
However, in the other case scenario centring Busy bees who has been liquidated and
Samantha have been appointed as the liquidator for the company. She holds all the rights that
can help in setting off the amount of the creditors. Further, Aston business society holds fixed
charge over the asset, that is, premises of the company. Hence, the funds that have been
raised from the sell of the premises , that is, 1,50,000 will directly be transferred to Aston
business society.

TASK 4
P6 Legal rights of AFG Oil Company
Arbitration is one of the very common methods of Alternative Disputes resolution
(ADR) where out of court settlement is made by the parties who have been indulged in
disputes. It helps in avoidance of long court case proceedings further not harming the brand
image of the involved parties as well. It keeps the goodwill of the clients intact. An arbitrator
is hired who happens to hear both sides and take decisions based on it. The arbitrator is the
people whose decision is trusted by both the parties and rely over the judgement that has been
made by him. However, if any party involved in dispute is not satisfied with the judgement
made by the arbitrator then in that case they can head to the court for the settlement. The
main advantage of this method is that they need not to involve in long proceeding of the court
where the cases are held for longer period. Further, the matter is also kept confidential
without hampering the brand image of the companies involved in disputes.
The main issue attached to the arbitration method of Alternative Dispute R(ADR) is
that the arbitrator may leave any important aspect of the case untouched as he may not hold
the knowledge regarding the subject matter (Posner, 2014). If the fact is not bought into light,
it may lead to serious deviations in the results that have decided by the arbitrator.
The given case scenarios, AFG has been appointed as the arbitrator in order to settle
down the disputes of two parties. The perspective of both the parties involved in the disputes
is assessed by AFG Oil Company before reaching on to any judgement. The parties can
analyse the decision based on which they can decide that whether they want to rely on the
decision of the arbitrator or would want to go to the court for better settlement assessment of
the dispute.
CONCLUSION
Based on the above report, it can be concluded that, business law contains certain
policies and procedures mentioned in business helps in better functioning of the organization.
Further, arbitration is an effective ADR which helps in doing out of court settlement. Further,
it can be inferred that there are several types of dismissal that are discussed in the report such
as wrongful dismissal, fair or unfair dismissal, etc. The case laws of busy bees, AFG Oil
Company etc have been discussed in the report and legal advice is extended to them. In the
end, process of law formation and different sources of English law have been discussed in
detail.

REFERENCES
Books and journals
Cheeseman, H. R. and Garvey, J. R., 2014. Business law. Pearson.
Coffee Jr, J. C., Sale, H. and Henderson, M. T., 2015. Securities regulation: Cases and
materials.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Disch, L., 2016. Representation. In The Oxford Handbook of Feminist Theory.
Folsom, R. H. And et.al., 2012. International business transactions: a problem-oriented
coursebook. ThomsonReuters.
Kinicki, A. and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.
Lieberman, J. And et.al., 2016. Business law and the legal environment.
Posner, R. A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Smith, J. and Malloy, R. ., 2013. Real Estate Transactions: Problems, Cases, and Materials.
Wolters Kluwer Law & Business.
Online
Trademark Law and Naming Your Business. 2017. [Online]. Available through <
http://www.dmlp.org/legal-guide/trademark-law-and-naming-your-business>.