Business Law and Ethics

The assignment delves into the crucial intersection of business law and ethics. It examines various legal aspects relevant to businesses, including contract law, international business regulations, and the ethical implications of corporate behavior. The document draws upon scholarly articles, textbooks, and online resources to provide a thorough understanding of these concepts. Additionally, it emphasizes the importance of complying with legal frameworks and upholding ethical standards for responsible and sustainable business practices.

BUSINESS LAW

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Structure of English legal system and sources of law............................................................1
P2 Role of Government in Law making and applicability of common and statutory law..........2
TASK 2............................................................................................................................................4
P3 (a)Explanation of Employer’s liability and obligations.........................................................4
(b).................................................................................................................................................6
TASK 3............................................................................................................................................7
P4 Legal solutions for business problems...................................................................................7
P5 Justifications with statute and legislations.............................................................................7
TASK 4............................................................................................................................................8
P6 (a) Concept of Alternative Dispute Resolution Process and its benefits................................8
(b).................................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In this modern world, law has its own significance. Law can be demonstrated as a set or
procedures of rules and regulations which are formed for purpose of effective regulation of
behaviour with help of governmental and social institutions (Bagley and Dauchy, 2011). Law is a
system which helps to create respect and equality among society and its people. In this report,
various aspects of business law will be discussed. Also, concept of statutory and common law
will be given effect. In addition to this, structure of English legal system and role of government
in aspect of law making will also be given effect. Furthermore, employer's obligation in respect
of employees in premises of an organization is also discussed. Also, different sources of law
which are required to be followed by a business institution are also mentioned. In the end,
various cases with their legal justifications are explained.
TASK 1
P1 Structure of English legal system and sources of law
Law and legal system is a concept in which there are set of rules and regulations which are
framed in aspect of performing legal actions. In context of English Legal system, it can be
considered that a decision made by high court of country binds decisions made by lower courts
(The English Legal System, 2017). There are different sources of law which are mandatory to be
followed by each and every organization in order to fulfil legal requirements. Varied sources of
laws are defined as:
 Common law: It can be considered as a law which has been developed and evolved by
courts, judges and courts and other similar tribunals (Bagley, 2010). In this light, it is a
notable fact that common law has arisen as a precedent.
 Equality law: This law has been framed with a perspective to create and enhance equality
among each and every section of society. Main aim of creation of this law is to promote
diverse equality among premises of an organization and among its employees too.
 Judicial precedent: The concept of judicial precedent is based upon a term which can be
named as Stare Decisis. it implies to look over previous decisions that has been passed by
judges and other tribunals. In other words, it can be interpreted in a way, that if in case
any decision has been made after considering a particular issue of law, then that point of
legislation or law will be applicable in all cases which might arise in future.
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 Statutory law: It can be considered as a legislation which is in form of written form set
out by a legislator or a group or committee of legislature (Cheeseman and Garvey, 2014).
It can be understood as a meaning which is in opposite to customary and oral law, which
has been promulgated by a common law and executive of judiciary. European law: It is a system consists of rules and regulations which are operating in an
arena of members states of European Union. The main objective of EU is to promote and
develop peace and values along with social welfare of people.
Varied range of legislations which are mandatory to be followed by organizations;
 Employment rights act 1996: This act is a one of important legislations which has been
passed by Parliament of UK, in order to codify existing laws and legislations related to
individual rights in aspect of labour law. In this act, it is mentioned regarding various
rights available to employees in context of their employment. According to the provisions
of said act, main terms of employment contract should be in written form and must fulfil
all essential requirements of valid contract.
 Pensions Act, 2008: It is an act which is passed as a legislation or law, by an act of
Parliament of UK. It incorporates a change in nexus of occupational pension plan. In
other words, it can be said that all workers and employees is required to opt out of a plan
called as occupational plan instead of going in for it.
 Equality Act, 2010: This act or legislation has been formed with a basic aim to evolve
and enrich equality among society (Crane and Matten, 2016). In other words, its objective
is to categorise several and complex array of legislations or regulations which was
formed on the basis of Anti –Discrimination law in UK.
P2 Role of Government in Law making and applicability of common and statutory law
Legal system is a concept in which effectiveness of judiciary in terms of fairness, catching
and retaining of criminals, prosecuting along with dealing with cases in a prompt manner is
mentioned. Apart from various functions and roles of government, it has been assessed that
government is also authorised to make laws and regulations which are applicable throughout a
particular country. In context of UK, Parliament has been authorised to form various acts and
legislations for benefits of its citizens. In this regard, various stages have been analysed which
can be characterised as below:
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 First Reading: It is a first phase of procedure of formation and implementation of laws
and regulations in a country. It is proceeded with presenting a dummy or replica copy of
bill on a table to committee formed (Czinkota, Ronkainen and Moffett, 2011). Bill is
allocated with number after it is being placed.
 Second Reading: It includes printing of bill after examination of compliances with
different rules and norms of House. It is called as Second stage of bill. In this phase,
principles of bill are considered by members of house along with this a debate in regard
to this is also conducted.
 Committee Stage: In this step of process of law making by parliament, each clause of
proposed bill is considered by a committee which is succeeded by making any
amendments if required.
 Report Stage: It is related to an opportunity given to amend bill which has been
proposed to be applicable as a legislation or an act. In this step, clauses and sections of
bill are considered by house in which modifications have been scheduled.
 Third Stage: In this pace, final discussion in regard to any amendments or any other
reasons is made. Also, it can be said that in this stage overview of bill is taken by house.
Moreover, amendments cannot be performed while this stage.
 Furthermore, after third stage in said process, proposed bill is taken into consideration by
another chamber for approval.
 In end, after getting approval from Royal Assent, a bill is turned up into an “Act”.
In addition to this, common and statutory law is also applicable in justice courts of UK.
Common law is a legislation which gives an authenticate authorisation to judiciary of a country
to form decision making in respect of previous decided case having similar situations (DiMatteo,
2010). On other hand, statutory law is a concept in which regulations and norms in regard to
prohibition of practicing some specified behaviours in general public.
Difference between Common and Statutory Law:
Common Law Statutory law
 This law is developed by decisions
which has been made by judges in
judiciary courts.
 It is operated as procedural level.
 In this concept, government agencies
have an authority to issue new
guidelines or laws.
 It is operated at a Substantive level.
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 It can also be known as case laws and
judiciary precedents.
 It can be called as written law.
It can also be noted that there are various aids through which Judges of courts can interpret a
statute or an act, which can be classified as follows:
 Judicial precedents.
 Sources of EC Law.
 The legislation.
 Human rights act, 1998.
Some rules of Interpretation can be characterised as:
 Golden Rule: It can also be called as Law of Reciprocity. It signifies a principle which
implies to treat a person in such a manner which he has been desirous for (Foss and
Knudsen, 2013). In other sense, this rule gives permission to a judge in respect to distract
from a normal meaning of a words to avoid any unwanted or negative outcomes.
 Mischief Rule: It is applied in a traditional manner by English Courts. Foremost
objective of said rule is to define defect and mischief of a statute, which needs to be set
out for a remedy.
TASK 2
P3 (a)Explanation of Employer’s liability and obligations
A business organization and its management is under various obligations to follow and
comply with various legal rules and regulations. An employer is liable to create and maintain a
working environment which consists of health, safety providing compensation to workers in case
of injuries and equal opportunities. So, in this light, there are various obligations of employer,
which he is required to comply:
 Occupational Health and safety: It means that employer is held responsible to create
health and safety in an environment of their organization (Halbert and Ingulli, 2011). It
will create a good impact on employees and they will feel like working effectively which
will render good and profitable results. Employer should also comply with compliances
as mentioned in Health and Safety act, 1974, which basically aim to provide health and
safety measures to its workers.
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 Legal obligation: It can be considered as a legal obligation of employees which
includes to assure its employees with appropriate safety measures from any harm or
risks arising in premises of company. Also, employer should render proper
information and guidelines in order to manage risks and hazards.
 Workmen compensation: It is a part of insurance which is given in form of wages and
medical benefits to its employees, in case of any injury in course of employment in
regard to their rights to sue its employer for negligence of duty and tort of negligence
(Kinicki and Kreitner, 2012). This implies adherences with rules and norms as laid down
in regard to The Workmen’s Compensation Act, 1897.Considering this, employer is
required to provide considerable wages to its employees.
 Legal obligation: An employer is liable in case of any injury caused to its employees
during case of employment. So, they are advised to take Employer’s Liability
Insurance. In addition to this, policy premium is also paid to its injured employees.
 Harassment: It is a term in which an action of bullying and harassment caused to a
person.it is considered as Equality Act, 2010.
 Legal Obligation: In Case of any Harassment and bullying of any person, employer is
held liable to take corrective actions. Also, employer in any organization is obligated
to implement Harassment and Anti-bullying policies at work area of business
corporation.
 Equal Opportunities: It is a right or a concept in which it has been mentioned that each
and every person should be treated equally without discrimination on ground of race,
caste, sex etc. This term is based on principles laid down in Equality Act, 2010. It
conveys certain provisions which are related to discrimination in terms of age, disability,
religion and civil partnership.
 Legal Obligation: Employer is held liable to adopt corrective measures and actions
which assists to reduce the following results:
o Sexual Harassment.
o Discrimination.
o Victimisation.
o Bullying.
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In this regard, employer is under legal obligation to develop and promote a policy which
promotes equal opportunities (Kitagawa, 2016). It should be displayed at premises of an
organization to guide and help its employees. Also, staff should be property educated and
communication should be done in an effective manner.
In this light, the employer is held accountable to follow all guidelines in regard to above
mentioned points. However, if he does not obey with all norms and rules, then penalties and
charges will be imposed on him. It can also result in bad reputation of company.
(b)
With reference to the case specified in respect of a 16 years old girl, who was employed at
fast food outlet or restaurant to cook French fries. Suddenly she slipped on water which was
leaking from a machine of ice making and due to this she put her hand under a deep fat fryer
consists of oil burning at 360-degree F. It leads to severe burns on her hand and forearm. It can
also be noted that restaurant was short staffed that day and also, team leader was busy in work of
billing rather paying attention and monitoring workplace safety. It was being held that it was
fault of ice making machine as well as its team leader. The organization was also staff shorted
that day. From the said case, it can be concluded that employer or team leader is held
accountable for injuries caused by her negligence as it was his duty to take care of its employees.
In accordance with the provisions of Employment rights act, 1996, it can be assessed that
employer should assume its responsibility in context of creating healthy and safety work
atmosphere in its company (Kubasek, Brennan and Browne, 2016). Also, a person should work
in accordance with regulations specified in accordance with guidelines. In this light, an employer
is under an obligation to protect its employees from any kind of risks and harms that might arise
in course of employment. Moreover, in accordance with the provisions of said act, manager of an
organization to provide appropriate information and risk assessment techniques. On other hand,
in viewpoint of Contract act, the said girl is not competent enough to enter into contract as she is
minor. According to requirements lad down in act, a minor is not permitted to enter into a valid
contract.
So, in perspective of above said provisions it has been concluded that team leader is
responsible for injuries caused to girl as he was responsible to take care of his duty. He is
claimed under tort of negligence.
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TASK 3
P4 Legal solutions for business problems
(1) With reference with given case of Calvin, who is a fashion designer at firm of fashion
designing. One day, when his employer Donna arrives at work at Monday, she finds Calvin
acting Suspiciously. After having a look on petty cashbox, she founds 100 pounds missing. Also,
there are 4 more employees, who were present at the time when Donna enters room.
Furthermore, she fired Calvin without giving notice to him for his dismissal.
In this light, as per provisions of Unfair Dismissal and wrongful dismissal provisions, it
has been laid down that no employee can terminate any of its employee on the basis of unfair
dismissal practices (Miller, 2015). Unfair dismissal is a part of law of UK, which depicts that
there should be fair and equal treatment practiced with employees of its organization. Also,
notice should be given to an employee before terminating him from his services. In addition to
this, a proper and appropriate dismissal programme must be followed.
So, considering this, Calvin has a right to claim against decision of his employer, Donna.
It is due to reason that she terminated his services without carrying any investigation and not
provided any notice before termination.
(2) In given case scenario, it has been mentioned regard to Kevin’s father Dan, who owns
a small store. A fire evolved and destroyed its property. So, he applied for fire insurance. The
proposal asked him, whether he has availed any fire insurance or not in last two years. He
thought, he has taken claim more than 2 years ago, but in reality it was taken in 23 months. So,
claim was rejected.
In the light of above said case and in accordance with provisions of Insurance act, Dan
can claim against is fire insurance as there is no such provision mentioned in act, in regard to
time limitation of filing claim.
P5 Justifications with statute and legislations
As, it was being explained in above said case that Calvin is dismissed on basis of suspicion
only. So, in this regard, it can be concluded that Calvin has a right to claim against decision of
Donna, as it was a wrongful dismissal (Nichols, 2012). In other words, no proper notice has been
sent to him along with this, opportunity of being heard was also not given. It can be referred
from The Equality Act, 2010 and provision laid down under unfair and wrongful dismissal act.
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Beside this, Kevin’s father Dan can also proceed with his claim of fire insurance as it is
not related to any time duration laid down in regard to take claim in respect of fire insurance.
TASK 4
P6 (a) Concept of Alternative Dispute Resolution Process and its benefits
This is a procedure which targets to resolve disputes in context of parties to contract without
litigation and court proceedings (Posner, 2014). In other sense, dispute resolution is a technique
by which a person attempts to solve any issues which have arisen and might arise in near future,
in case of any agreement made between parties to contract. Considering this, there are various
methods which can be taken as resolving disputes. These can be classified as;
 Arbitration and conciliation.
 Law suits or litigation.
 Different kinds of negotiation.
 Mediation.
 Facilitation.
 Collaborative law.
It is a notable fact that there are various benefits which are related to solving issues or
disputes through said method, which can be demonstrated as:
 It can be practised in a lower cost.
 It results in faster results and more productivity.
 It results in privacy and neutrality.
 This method is a symbol of cooperative negotiations.
(b)
With reference to given case scenario in regard to Antwon, owner of large investment firm,
had a dispute with owner of a company manufacturer of software. The best way of resolving
their disputes can be considered as Arbitration. Arbitration is a term which is related to
determination of any issues or disputes which have arisen or might arise in near future (Spalding,
2011). Also, the person who is authorised to perform arbitrational functions is known as
Arbitrator. Moreover, it can be said that decision made by arbitrator is known as award.
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CONCLUSION
From the above mentioned report, it can be comprehended that business law is a type of
legislation which has been framed in respect of organizations to comply with. In this report,
structure of English legal system has been defined in context of UK. In addition to this, various
sources of law that are required to be followed by organizations is also considered. In addition to
his, terms and provisions of employment act, contract act and health and safety act has also been
discussed.
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REFERENCES
Books and Journal
Bagley, C. E. and Dauchy, C. E., 2011. The entrepreneur's guide to business law. Nelson
Education.
Bagley, C. E., 2010. What's Law Got to Do With It?: Integrating Law and Strategy. American
Business Law Journal, 47(4), pp.587-639.
Cheeseman, H. R. and Garvey, J.R., 2014. Business law. Pearson.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Czinkota, M., Ronkainen, I.A. and Moffett, M.H., 2011. International business. Wiley.
DiMatteo, L. A., 2010. Strategic contracting: contract law as a source of competitive
advantage. American Business Law Journal, 47(4), pp.727-794.
Foss, N. J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Kinicki, A. and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.
Kitagawa, Z., 2016. Administrative Regulations (Vol. 4). Doing Business in Japan.
Kubasek, N. K., Brennan, B.A. and Browne, M.N., 2016. The legal environment of business: A
critical thinking approach. Pearson.
Miller, R. L., 2015. Business Law Today, Standard: Text & Summarized Cases. Nelson
Education.
Nichols, P. M., 2012. The business case for complying with bribery laws. American Business
Law Journal, 49(2), pp.325-368.
Posner, R. A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Spalding, A. B., 2011. The Irony of International Business Law: US Progressivism, China’s New
Laissez Faire, and Their Impact in the Developing World.
Online
The English Legal System, 2017. [Online]. Available through: < http://www.inbrief.co.uk/legal-
system/english-law/>. [Accessed on 06th July, 2017].
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