Effectiveness of Alternative Dispute Resolution in Business Laws

The assignment content discusses the importance of business laws in helping companies and individuals. It highlights that there are many laws and provisions that provide assistance to companies, making it necessary for them to comply with legal rules to raise funds. The study also suggests that alternative dispute resolution methods can be used by companies, which are cheap, time-efficient, and do not harm the company's goodwill.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different sources of law....................................................................................................3
P2 Role of government in making the law.............................................................................4
TASK 2............................................................................................................................................4
P3 Employment and contract law...........................................................................................4
TASK 3............................................................................................................................................5
P4 Appropriate solutions for business....................................................................................5
P5 Use of appropriate legal solutions.....................................................................................6
TASK 4............................................................................................................................................7
P6 Alternative dispute resolution and it advantage................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In modern era, the person or organisation cannot do anything without consulting any
attorney. Nowadays, Law permits a person or any business organisation to know about different
rules and regulations which are framed by the government (Aad and et. al., 2015). These are
benefiting to business person or their organisation by developing a basic knowledge about the
laws. The present report is based on potato council which is responsible for potato growers in
UK. In this assignment different laws has been explained. Along with this various act has also
being discussed. Further, different methods has been explained for raising the capital.
TASK 1
P1 Different sources of law
In country UK there are different sources of law which has been framed by the
parliament of UK. There are indigenous sources of laws which has to follow by the every
organisation in order to provide quality of services to customers. As per given case scenario,
Potato council has to be comply with the different sources of law in which they can easily
provide services. The following are the different sources of law of UK.
Statutory laws - These laws are written by the body of legislature. These laws are vary
from the regulatory or administrative which are passed by the executive agencies. The usual
process of legislation has been followed while making the statutory laws (Friedman, 2011). The
written laws are executive by the parliament and the decision are made under the court. The
statue of law begins when the bill is sponsored by the legislator. After that, the bill is present in
the both houses of parliament. This bill must be signed by the executive officer. When the bill
was signed by the officer then it represent as a law. In this laws numerous provisions are made
which have to followed by everyone and these are also know as statue laws.
Common/Case laws – These are the legal system which are based on the judge made-
law. The laws which are develop while taking the decision taken by the judges. Each jurisdiction
are developing their own forms of common laws. In this two type of laws are considered i.e.
criminal and civil law. In civil law, the plaintiff has to prove that defendant has done any worn
activity which has caused to them (Harper, 2010). Whereas in criminal law, the defendant has to
prove that he/she has not committed any serious nature of offence.

Case law, R v Clegg [1995] 1 AC 482, the decision of court is that if any person had
committed any serious offence (murder) then will be punished under the criminal law act.
P2 Role of government in making the law
The government had played an essential role while making any laws. The government is
responsible for that how the country will run and manage the things. They are setting the taxes
that in which products or services the tax will apply. They also set that how to deliver the best
services to customers such welfare benefits, national health service and many more. The
government have powers to make rules regarding the laws (Heery, 2010). But they can not make
any laws. The government should be ensure about that whatever the law which has been made by
the parliament should be properly followed by the every person and organisation. The
government have to put the issues of general public in parliament so that they can make law
according to the.
The government can see that the policies which are made by them is according to the
laws or not. These policies have to implement in proper manner. The government have to protect
all laws and regulations which are made by the parliament. They have resolve all those issues
which are facing by the public. In case of common law, the government can give the suggestion
to parliament if any offence is created by person. The government has both conventional and
aspirational aspects regarding the laws (Lewis and Carr, 2010). The prior approval should be
there from the parliament if government have to take any decision for smoothly running the
functions.
In common law, if the case is related with the criminal then plaintiff party can claim
against the defendant and it become responsibility of second party to prove themselves as
innocent. Whereas in civil law, the case will go to court when plaintiff have to compensate the
amount 15000 pond and there is also personal injury 50,000 pond.
TASK 2
P3 Employment and contract law
The employment law should be followed by the organisation in order to make the sturdy
relationship between employers and employees. In these law, it defined that there are various
kinds of duties and responsibilities which has been explained in the context of employer and
employees. Employment law does not cover any people who are self-employed. Self-employed

are those people who is running their business own. In potato council there are both employed
and self-employed person are there (McKendrick, 2014). If person is self-employed than they
have to protect their health and safety but in some cases protect people against discrimination.
They are having their own rights and responsibilities in which they can set out the terms and
conditions of contract with their client. The employed is the person if they are working in any
organisation as a employers. The impact of this law on business is the organisation sometimes
have to make rules and policies according to the self-employed and employed person. Otherwise
it will impact on their goals.
In contract law, it contain some terms and condition which bind the people to perform
their duties. These contract are enforceable by the law. While formation of any law, it is essential
for the organisation to clear all the terms and conditions while performing any duty. When the
organisation runs their business then it is essential for them to make the agreement with
employees in regard to providing the proper facilities to them (Raz, 2013). There are many
essential of contract law which are covered while making any contract legally. These are offer,
acceptance, mutual obligation, consideration, capacity and many more.
TASK 3
P4 Appropriate solutions for business
It is required for the company to adopt the effective capital raising system in their busi9enss
because there are certain situation where company faces the issues regarding the capital. When
company required to raise the capital it is required for the company to adopt following
solutions:-
1. Issue of shares: It is the best source to raise the capital of the company. In this company
issue shares to the public and the person who accepts the share makes the payment of the
application money and other calls on shares (Al-farhan, 2010). By this way, company can
raise capital.
Advantages:
 It is the best source to raise the money.
 There is no fix burden on the company because rate of dividend depends on the
profitability of the company.

 The liability of shareholder is limited to the face value of share so they can not make
interfere in the affairs of the company.
Disadvantages:
 Lack of control of the company because power is in hand of shareholders.
 It is time consuming process because it requires to prepare lot of documents.
2. Loan from financial institution: It is the best source to raise the capital. Company can
take loan from the bank and financial institutions. It is required to repay the amount on
specified data (Jaumotte,Lall and Papageorgiou, 2013). It is also required to make the
regular payment of instalment and interest. Advantages:
 It is easy to take loan from the bank and financial institution.
 It is one of the safer mode to raise capital.
 Company can take the exemption in tax because instalment amount is considered as the
expense in the hand of the company.
Disadvantages:
 It creates burden on the company as to make the payment on certain date.
 Increases the expenditure because company makes the payment above the actual loan
amount.
 It is required for the company to create charge on the assets of the company or put the
property as the security to the bank and Financial institution.
3. loan from friends and family: It is the most effective source. It does nor create burden on
the company and no documentation is required to present to take loan.
Advantages:
 It does not increase the expenditure of the company.
 No assets is required to put as security.
Disadvantages:
 Sometime, it affects the goodwill of the owner in the market.
 Friend can demand for money at any time (Al-farhan, 2010).
P5 Use of appropriate legal solutions
Following are the legal solution that is available to the company and it is required for the
company to comply with following legal rules:-

 Companies Act- It is required for the company to comply with then provisions of
companies act. There are certain regulation that are required to raise the capital of the
company buy issuing shares to the public as equity shares and preference shares. All the
section are required to comply and there is certain limit mentioned in the act, it is
required for the company that it can not issue shares above that specified limit. Specific
provisions are required to comply to issue shares and buy back of shares.
 Financial service and market act 2000:
the issue of share in UK is regulated by the Financial service and market act and EU prospectus
Directive. Prospectus is the legal document of the company that disclose the key information to
the investors of the company so that they can take decision to invest in the company. It is
required to for the company to register their prospectus with the authority (Sohnand Bal, 2012).
 Prospectus rule and listing rules:
Listed company is required to comply the rules of financial service authority detailed in listing
rule. It is required for the company to take the permission for non-emptive share issue. It is
required for the company to comply with such provision of this rules and regulations.
 Venture capital: Such capitalist makes the focus on high value investment. They
generally put the injunction of around £2 Million. Such capitalist provides the sources of
capital to the company that is generally not provided by the bank and any other source. It
is required to comply with the regulations that re prescribed in the various act.
TASK 4
P6 Alternative dispute resolution and it advantage
Alternative dispute resolution is the procedure that is used to make the solution to the
dispute that is arise in the business without moving to the court. It is the best source in which
company need not to go to the court (Ridley‐Duff and Bennett, 2011). Arbitration, mediation and
negotiation are the example of ADR. They are less costly and they provide expeditious solution
to the problem. They generally take participation in high profile labour disputes, divorce actions,
personal injury cases. In this both the parties appoint a person called as arbitrator that provides
solution to the problem. It is required for the company obey the decision of such arbitrator.
Advantages of ADR:-
 It is faster process and low cost procedure.

 Parties get the chance to tell the story in effective manner.
 It is the flexible method and more informal.
 It has great result to the commitment of the parties.
 It is the confidential nature of process (Ridley‐Duff and Bennett, 2011).
 It is useful method to preserve the goodwill of the company and individual.
 It is mostly used in the situation where there is continuing relationship.
Problems with source of legal advice
There are many problems that can be faced by the company if they follow the legal rules
and regulation to solve the problem (Hollander-Blumoff and Tyler, 2011). When company
moves to the court and legal jurisdiction for solving the problem then it is very costly for the
company. It is long procedure and there are many documents that are required to prepare. It is
time consuming method and sometime people face the issue while making the complain to the
court and other legal departments.
CONCLUSION
As per the above study it can be said that business laws are required for the company to
follow. It provides help to the company and individual. There are many laws and provision that
provide assistance to the company. It is required for the company to comply with the legal rules
to raise the fund of the company. There are many alternative dispute resolution that can be used
by the company and it is very cheap and does not consume much time. It does not harm to the
goodwill of the company.
REFERENCES
Books and Journal

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