Compliance with Laws and Standards for Business Sustainability

This assignment focuses on the importance of legal compliance for small businesses, with a particular emphasis on international energy investment law and tax strategies. It involves understanding various standards and codes of conduct that influence HR practices while ensuring business sustainability and profitability.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Explain the structure of English legal system ..................................................................1
P 2 The duties of legal authority in law making ....................................................................4
M1 Effectiveness of English legal system in context of current reforms...............................5
TASK 2............................................................................................................................................6
P3 A) legislation and legal responsibilities............................................................................6
The relationship between regulations, legislations and standards.....................................6
Implication and impact of various legislations .................................................................6
P3 B) Explaining the way relevant contract and Employment Law Impact the Business.....7
The responsibilities of directors and delegation of tasks..................................................8
The way Employer and employee relationship interact with employment Law.............................8
M2 Differentiating and analysing the potential effect of regulations, legislations as well as
standards ................................................................................................................................9
P4 Suitable legal solution to problem faced by organisation.................................................9
Considering the application of company legislation in forming organisation, raising capital,
correlation of pay and performance.................................................................................10
P5 Explanation related to the above solutions .....................................................................11
1. In case of Calvin........................................................................................................................11
M3 Positive and negative impact of legal solution .............................................................12
TASK 4..........................................................................................................................................12
P6 A) Concept of Alternative Dispute Resolution (ADR)...................................................12
P6 B) Recommending an alternative solution to business problem.....................................12
M4 Compare and contrast thse effectiveness of two different recommendations................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In the present scenario, due to changing business environment, an organisation is facing
various business problems. So, there is a great significance of Business law in order to assist a
firm in finding effective solution to several issues. Business law is defined as the set of
regulations that governs or regulates the way business should be established, run and managed.
Commercial legislations are required for ensuring the fair-trade practices in the country. The
business law has wide scope due to increase in complexities of modern business world. It is
essential to regulate the business activities. Legislation is considered as the effective tool for
bringing drastic improvement and positive change at workplace. Some of the laws that are to be
followed by business entity are Company rules, Employment legislation, industrial legislation
and other legal norms. It is very essential for the organisation to comply with the rules and
regulation framed by the government. This is because failure to comply with these norms can
have negative impact on the growth of the firm.
The study on Business Law has focused on developing understanding about overall
concept of national as well as international law. The report will cover the topics of sale of good
act, Contracts, organisation problems etc.
TASK 1
P1 Explain the structure of English legal system
English legal system is one of the major European legislative grouping. The several
legislations in the English legal system is the common regulations that governs the norms of
Wales and England. The various legislation in English legal system are much influence by the
EU laws.
The Structure of English legal system is hierarchical. In this framework of legal system,
high court has the authority to make important decision. The judgement made by the high court
are to be followed by all other smaller courts. The structure of the English legal system provides
the basis of Doctrine of precedent which means 'Let the decision stand'. In this framework, the
Supreme Court which is also recognised as House of Lords in English legal system is the top
most legal authority. The conclusion or judgement made by the magistrate in this court are to be
complied with all other Courts. In this legal structure of English legal system, the Supreme Court
is the Highest English Court; decision or conclusion made in the European Court of Justice are
binding on all courts in UK.
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The court of appeal is recognised to be at lowest to the supreme court in the hierarchical
structure. The structure is split between the criminal as well as civil divisions. The conclusion
drawn by both divisions is to be followed by lower courts. If in case, there is dispute between
two previous decisions taken, the tribunal may decide which decision or judgement to be
followed and which to be overruled. The existing judgement that has been overruled by the
Supreme Court that is the House of Lords, the court of appeal is required to comply with the
judgement made by superior court
(Bowie, 2017.) Divisional courts are located within the division of high court. The high court has
to accept the decision taken by upper courts. Other small courts that are at the lower position in
the hierarchical structure are as follows:
 Crown Court- The various law suits, whose decision are not taken by the magistrate court
are transferred to the crown court. All the criminal cases are to be handled as well as
managed by this tribunal.
 Country Tribunal- This court does not include Jury members in decision making
procedure. In this, Tribunal magistrate is only the person who has authority to make final
judgement.
 High Court- The conclusion made by the judge in the high court are binding upon lower
judicature. The High Court is divided into three categories; these are: chancellor, queen
bench and family. In chancellor and family tribunal, the family matter, industrial disputes
as well as other issues faced by business are heard and decision is made by the magistrate
on the basis of evidence. While in queen bench division, the cases related to construction,
technology, administration, etc. are dealt by the court.
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Illustration 1: Structure of English Legal system
(Source :English Legal material, 2016)
§
Sources of English laws that are to be followed by organisation are:
 Statutory law- The statutory legislation is developed by the legislature. It can also be
evolved by the act of parliament.
 Case law- This regulation is originated from the decision taken by the court on the basis
of previous or existing law suits.
 Natural or common law- According to the hierarchical structure of the English legal
system, the decision taken by the magistrate in high court is binding on the smaller
tribunals in the country. This legislation is also recognised as the Judge made law.
 Delegated Legislation- These laws are made by other people under the given authority of
Parliament (Law, Buhalis and Cobanoglu, 2014).
 European union law- Before the Brexit the UK was the member of European Union.
Therefore, the legislation formulated by European union was being followed by the UK.
 Convention of Human right-This laws was developed by European Union. This
legislation was formulated in order to enables down all the courts under UK to protect
the rights which made identified under European Convention on Human Rights.
The EU law has impacted UK in number ofd ways .The major Types of EU law are:
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 Directives therse are to be implemented into UK domestic legislation by UK processes.
 Regulation- These are directly applicable and not require to be implemented into
domestic legislation.
 Treaty provision- There are the specific provisions of the EU treaty that have similar
direct applicability into UK domestic legislation.
After the Brexit EU directives require implementation into UK legislation to have impact.
This has developed the task for UK legal authority to overseeing Brexit and deciding whether to
embark on a procedure of reviewing act of parliament and a statutory instrument with a view to
ascertain whether or not to maintain each party of legislation. The various laws in English legal
system is required to be amended taking into the consideration new relationship between EU
and UK. All previous EU laws will be copied across into domestic UK legislation in order to
ensure a smooth transition on the day after Brexit.
Health and safety act- This law is formulated by the act of parliament. As per this
legislation, it is the duty of workers to ensure so far as is reasonably practicable, the health,
safety and welfare at work" of all their employees. The laws or this regulation also states that
employer is required to design and develop safe operations as well as ensure the maintenance of
working environment, system and machineries. safe use, handling and storage of dangerous
substances. As this activity will assist business entity in eliminating accidents at workplace and
legal obligations on firm.
Employment Law-This legislation has been developed by goverme3nt in order to regulate
relationship between employer and Employee. Workers at work in UK get benefited from the
employment right. Employment legislation includes various laws related to tatus of worker,
wrong full dismissal discrimination act etc.
P 2 The duties of legal authority in law making
The government has essential function to play in law making. The legal authority in the
country is accountable for providing the security as well as safety to citizen. It is also
accountable for identifying the various problems that has been faced by people or organisation
and analysing the solution to the issues.
The proposal that has been developed by the local authority has to undergo various
phases in order to convert into Act. The law-making procedure is very lengthy and complex
which include various stages.
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In the first phase, the problems that has been faced by the majority of business unit are
identified by the government. In the next phase, the legal authority has the responsibility to find
the solution to several issues that are being faced by the majority of organisation. In the third
phase, the proposal is drafted or designed by the local body which consists of highlighted issues
and solution for the same.
In the fourth phase, the proposal is presented in front of lower authorities at regional and
state level for the approval. When the proposal gets approved at this level, then it is to be
presented before the common chamber for further approval.
If the proposal is passed by the common chamber, then it is to be presented for first
reading in the Chamber.
In the next phase, the legal authority has to make changes in the bill as suggested by the
members in the Supreme Court or chamber. At this stage, the debate can be facilitated in the
context of the bill for measuring the reliability, flexibility, applicability and viability of the bill.
Then after the proposal is forwarded to other chamber for detail evaluation. Then it is conferred
for the next reading.
In the final phase, after all the amendment is made by the government, the bill is
presented in the Court for final reading. This is the phase at which the decision related to the
acceptance or rejection of the bill is made by the court.
After the bill get converted into the act, it is role of the government to support court in
implementing the legislation and communicating the detail of the law to the public (Rutledge,
2014)
M1 Effectiveness of English legal system in context of current reforms
The legal reforms are based on the fact that the legal institutions play important and
independent role in the formulation of law and development of the country. As the decision
related to the acceptance or rejection of the bill is totally dependent on the Parliament. The
judgement made by the House of Lords are according to the communities, people and country.
The purpose of various legislation in the English law system is to bring economic stability,
controlling price inflation, fostering country development procedure. Due to development in the
reforms, the focus of the laws has change to the rule of game of society. These rules or regulation
of the game consists of specific standards that are to be followed by the organisation. The recent
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reforms are based on the fact that the legal institution has important and independent role to play
in law making procedures (Storey, 2016)
TASK 2
P3 A) legislation and legal responsibilities
The relationship between regulations, legislations and standards
Standards are very closely related to many EU laws or Act. Finnish legislature may also
contain references to standards. Regulation are enforced without modification in all Eu countries.
Each member country has right to set standards according to their requirement. Standards are
established by organisation or EU member according to the legislation. These are developed in
order to fulfil the legal requirement. Regulation s helps business entity in avoiding or
eliminating legal obligations. The purpose of legislation, regulation and standards is to bring
improvement in various field within the organisation. All three elements intends to support
enterprise in bringing positive change at workplace and aid firm in solving various business
issues.
Implication and impact of various legislations
Occupational health and safety- As per the health and safety legislation, 1974 the
employer is accountable for ensuring health and safety of workers in organisation. The role of
the human resource manager is to provide effective and safe working environment to employees
and eliminating the harmful practices. According to the Occupational Health and Safety Act, it is
essential for the business entity to comply with this regulation and standards that has been
developed as well as implemented by the local body in the country. It is essential for the
technical department in the enterprise to update or adopt effective as well as safe operating
system and to make improvement in the practices and procedures. As this activity will assist firm
in eliminating accidents at workplace. It is essential for the human resource manager to provide
training to workers in order to preventing the misuse or mishandling of machinery. The technical
department in the business unit is required to provide safety instruction to employees regarding
the working on the technology. The human resource manager in business entity is required to
make various arrangement. Moreover, this activity will assist organisation in dealing with
emergencies and uncertainties.
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Environmental legislation-The important environmental legislation that has major impact on
the business are related to industrial waste, sustainable development of raw material etc. This
legislation has great effect on business activities as various legislation demands organisation to
change equipment, system and procedure in order to fulfil the requirement of imposed standards.
Environmental legislation have great effect on the growth and sustainability of firm. It also have
impact on brand reputation of business.
Consumer law-There are many regulation related to consumer laws these are sales act, supply of
good regulation, etc. These are laws are applicable to the sale and supply of specific product.
Supply of the good act defines that it is essential for trader to provide standards quality as well as
quantity products and services to consumers. Consumer protection Act states that the retailer or
manufacturer should design product by considering the health and safety of employees as well as
consumers. These regulation or legislations have great effect on the customer policies formulated
by the organisation. It has major impact on the profitability as well as sales of firm.
Law related to data protection and confidentiality-The objective of this legislation is to
protect the right of person about whom information is received, stored, disclosed and processed.
These laws have great effect on the human resources policies, procedure, system and decision.
(Cameron, 2017)
P3 B) Explaining the way relevant contract and Employment Law Impact the Business
Contract is considered as legal as well as mutual agreement between two parties that is
employer and employee. It is important for both of them to perform their roles as well as
responsibilities according to the employment contract. As failure to fulfil the requirement of the
contract may have great effect on the employee and employer relationship.
Employment law has great influence on Human resource policies, strategies, decision and
practices. As failure to comply with the employment act may have great effect on the employee
and employer relationship. If in case, any organisation does not comply with the regulation
framed by the legal authority than there are much chances of legal obligation on such firm.
In given case scenario, it is required by the Human resource manager in the business entity to
provide her immediate first aid and make arrangement for providing further treatment. The
employer is required to provide compensation to the girl who got injured while working in the
organisation. The employer and employees, both are required to comply with all the terms and
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condition in Employment contract. As due to the failure in complying with any of the term may
lead to the legal obligation on individual. This factor has great effect on the organisation culture
and business performance. The increasing accidents or misshapenness may lead to rise in
Employee turnover rate that has great impact on operational activity and productivity of firm.
This factor also has great effect on the brand reputation of organisation (Jones, 2017)In the given
case study the risk assessment is not conducted by the employer consequences of which are born
by his employee. If the employer had facilitated risk assessment then such circumstances could
be avoided. The evidence that demonstrate that the risk assessment procedure was not conducted
by the employer is that both the ice-cream machine and fryer were both located in areas near
where people pass.
The responsibilities of directors and delegation of tasks.
According to the law it is essential for the director to be aware and careful when
delegating the task or responsibility to employees, company secretary. The directors of the
organisation have to kept some of the task as well as responsibility with them. Directors require
periodically to satisfy themselves that the secretary or other delegate is carrying out his or her
tasks properly and that all legal requirements are being met. And warning signs to the contrary
should be acted on when needed. They are also accountable for the activities and actions of those
employees or workers to whom the director has given particular task or responsibility.
The way Employer and employee relationship interact with employment Law
Employment is a contract between an employer and employee. An employment contract
has great importance to employer as well as employee. The employment law states that it is
required by both employer and workers to comply with the terms and conditions in the contract.
Legislation related to the employment have great effect on the relationship between employees.
The employment law states that it is required by employer to provide all facilities and services to
the workers as prescribed by the contract. It is essential for employee to follow the norms,
regulations and company standards. Employment legislation also dictates that the employer
should provide equal opportunities, care to all workers and must ensure that all the employees
are treated equally at workplace.
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M2 Differentiating and analysing the potential effect of regulations, legislations as well as
standards
The major difference between regulations and standards is that legislations are developed
by the legislature or act of parliament. Legislation includes the process that is compulsory to be
enacted. Whereas, Regulation includes process of monitoring or implementing legislations and
documents that comprises detail about the various regulation and norms.
Comparison between Regulations and standards
Regulations is referred to as the set of rules as well as guidelines that are developed by
the legal authority. The regulations are to be implemented by utilisation of power that is
delivered by the government or parliament. Whereas Standards are formulated by the
organisation according to its needs. The objective of establishing standards is to bring the
improvement in the quality of products and services. On the other hand, the regulation is
formulated by the government in order to ensure fair trade practices in the country. Other
purpose of these laws is to assist enterprise in solving various business issues (Bodie, Kane and
Marcus, 2014).
P4 Suitable legal solution to problem faced by organisation
Legal solution to Calvin
Unfair dismissal is referred to as situation when a worker is dismissed from their job in
an unjust, harsh or without proper notice or justification. Wrongful termination or dismissal is
defined as a condition, in which the employment contract of an individual employees terminated
by employer.
According to the Employment Act, the employer cannot terminate employee without
giving any prior notice and without providing justifiable reason. In given case, it has been
identified that Calvin’s employer has terminated him without giving proper reason and notice. In
such situation, Calvin has right to ask for evidence of the blame that has been put on him by the
employer. According to the terms in law related to Employment act states that the employer can
terminate their worker on the basis of certain conditions and he cannot dismiss employees on the
basis of unnecessary conditions and in such case, employee has a right to take action against
employer (Cameron, 2017) In given case, the big losses that can be claimed by Calvin from the
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employer are loss of salary, wages and rights. He also has right to claim for compensation and
demand for proper notice as well justifiable reason or evidence which prove that Calvin has
committed theft. If in case the employer fails to provide such requirement then in such situation,
Calvin has right to get the job again in the organisation. If the employer does not allow him to do
so in such condition, Calvin has right to file law suit against his employer against the unfair or
wrongful dismissal.
Legal advice to Kelvin father
Three types of misrepresentation are fraudulent , negligence and innocents
misrepresentation. Fraudulent misrepresentation can take place when parties in contract
knowingly make false statement, provides wrong information, to the other party in contract.
Negligent misrepresentation is a situation in which one party make careless statements and
provide incomplete information to other party in contract. Innocent misrepresentation in which
the parties in contract unknowingly or unaware about the fact makes false statement and provide
incomplete information.
In the given case study, it has been identified that the subject matter is related to the
breach of contract. According to the Contract act, the victim party has right to file suit against the
defaulting party for breaching the contract. As per the contract act, it is essential for two parties
to comply with the terms and condition in the agreement. It is essential for both parties to fulfil
their roles and responsibilities according to the contract. If in case any of the parties fails to
perform their task according to the agreement, in such case the contract can become void and the
defaulter party has to face legal issues. In given case, as per the contract act, Dan has right to file
law suit against insurance company for not fulfilling their responsibility and not providing the
compensation for the damages. Dan can also claim extra compensation for further losses.
Another option that is available with Dan is that he can negotiate with the insurance company or
make discussion with them in order to find solution for the problem. It is recommended to
(Hartono, 2014).
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Considering the application of company legislation in forming
organisation, raising capital, correlation of pay and performance
An organisation as per the companies act 1985 consider enterprise as separate legal
entity. The legislation states that once an organisation is formed , it is required by entrepreneur to
get their company registered with the registrar. The law dictates amount of first investment is
totally based on the background of an enterprise. If it is a brand new enterprise, there will be far
more initial capital outlay than if the company is incorporated from a former partnership of sole
trader. The procedure of getting company registered with the registrar include various steps such
as:
At the initial stage, business owner is required to find suitable name for business unit. As
per companies act , it it is very essential for the entrepreneur to develop the understanding the
law that are related to naming the company such as name of the organisation should not be same
as existing enterprise etc.
In the next stage, It is the responsibility of the director to analyse and fulfil the
requirement of various legal documents that are needed for getting administration registered. The
function of director or manager is to collect all the essential documents and provide all the
crucial details to the registrar such as the name of business entity, detail of the director as well as
employees, nature, location of business activities, etc.
In third stage, it is the duty of director to create memorandum and Article of Association.
It is very necessary for the director to ensure that article of association is filed by the companies
house.
In next stage all the important information and data collected are to be submitted to the
registrar of companies house for approval.
After getting the approval from the registrar, it is required by the board of director to call
fist board meeting to complete legal formalities as well as legal procedure.
P5 Explanation related to the above solutions
1. In case of Calvin
The solution given in case of Calvin is effective as it will help him in proving himself innocent
and getting his job back again. It will also allow Calvin to get compensation and other benefits.
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The above solution is effective as this method or strategies will assist him in demonstrating that
he has been acquiesced by his employer. The various above activities suggested will help him in
getting support from the trade union or other people. These solutions will assist Calvin in
identifying other suitable ways for solving his problem. It has provided Calvin a chance to raise
his voice against unfair treatment by employer and unfair or wrongful dismissal.
In case of Dan the solution that has been provided in case of Dan is effective as it has
allowed the victim to get compensation from the company. The discussion method has been
recommended that has assisted both party in identifying the suitable solution to the problem.
Other strategy is negotiation, this technique has provided parties in conflict to reach specific
conclusion or an agreement. Negotiation and discussion method has allowed both parties to reach
a specific conclusion and rebuilding their relationship. These methods do not have adverse effect
on the reputation of the parties and it is less time consuming. The above solution is effective as it
allowed defaulter party an opportunity to fulfil their remaining task and responsibility. This
technique also provides victim party a chance to get their work completed as per the contract or
agreement. The Third solution that has been provided to Dan is that he should carefully read the
terms and contents of the agreement before signing the contract. As this activity will help him in
eliminating the confusion or misunderstanding and allow him to gain knowledge about the
policies as well as procedures of the insurance company. These solutions will also support Dan
in getting various other advantage from the insurance policies (Lyons and et. al., 2016).
M3 Positive and negative impact of legal solution
Several legal solutions assist business organisation in getting suitable solution to the
business problems. It allows business entity to eliminate or prevent the negative effect of
conflicts on organisation culture and activities. These solutions assist business entity in
maintaining their performance in such critical and complex situations.
Negative effect:
The negative effect is that some legal solutions such as employment law has great or
negative effect on the employer or employee relationship. There is few legal solutions such as
going to the court is the time-consuming process and has adverse impact on the working
efficiency of the organisation and also on business performance (Scholes, 2015).
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TASK 4
P6 A) Concept of Alternative Dispute Resolution (ADR)
Alternative resolution mechanism is defined as the procedure of identifying the effective
solutions for resolving disputes without taking support of litigation or without going to the court.
This mechanism includes several techniques or methods through which the disputes and business
problems can be solved in systematic as well as effective way. These methods are mediation,
arbitration and negotiation. These are the informal procedures of resolving disputes and
identifying the suitable ways for business problems. It includes the pre-neutral evaluation of the
problem and finding the effective as well as suitable solution to business problem. In simple
words, ADR procedure is defined as the effective ways through which the parties such as
consumers and traders can resolve their conflicts without going to the court. This mechanism is
generally based on the agreement between two parties to adopt this method for reaching the
conclusion (Bowie, 2017).
P6 B) Recommending an alternative solution to business problem
There are basically three methods that can be used as alternative dispute mechanism.
These are mediation, negotiation and arbitration. All three methods will help parties in dispute to
solve their problems without having any effect on relationship. Mediation is the most frequently
used technique that can be applied quickly to the situation. It also allows the parties to find quick
solution regarding particular issues before it converts into more critical and complex issue.
Arbitration is another method of resolving conflicts in which the third person is appointed by the
mutual consents of disputing party and arbitrator has responsibility to provide effective solution
for the problem. This method also allows parties to resolve their issues without going to the
courts. The third technique is negotiation in which the parties facing problems are supported by
the third person that is negotiator in order to resolve their conflicts. All three of the methods are
effective as it allows parties to facilitate discussion and analyse the suitable solutions to the
reason of conflict. It also allows parties to develop understanding with each other. In mediation
the third person that is mediator assists parties in reaching to the conclusion. In arbitration, the
arbitrator is an individual who provides effective judgement to the parties in dispute. Negotiation
techniques aid conflicting parties in reaching to an agreement (Appelbaum and et.al., 2016).
Another ADR method that is based on the country legal system includes legal advice or
suggestion from Solicitor and support from Citizen advice bureau. Seeking advice on legal
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matters from solicitor will help Anton company in resolving their disputes in systematic and
effective manner. Both Anton and Tyrell can take legal advice from the Citizen advice bureau.
As these methods will assist both parties in identifying the major reason of the conflict and
analysing as well as applying the suitable solution to the problem. Negotiation is less effective as
in this method, the parties in conflict may not be able to reach a mutual agreement. In such case,
there are many chances of that it may lead to wastage of time and money. Whereas, in
arbitration, the parties can ensure the effective outcome. Negotiation is more time consuming as
compared to arbitration (Allen and Kraakman, 2016).
M4 Compare and contrast thse effectiveness of two different recommendations
In negotiation method, the decision made during the discussion are binding on both the
parties in conflict. Whereas in negotiation method the decision or judgement is made by the
arbitrator is not at all binding on the parties in dispute. In this method, the parties in conflicts has
the right to withdraw from the procedure anytime if it is not satisfied with the process. The
negotiation technique can be used for resolving conflicts among small group. This technique is
used for resolving business problems at national or regional level. On the other hand, arbitration
is used for solving organisational problems both at national and international level (Bagley and
Dauchy, 2011).
CONCLUSION
The report has concluded that in English legal system, the high court is the highest legal
authority who has the power to make decision. The judgement made by the high court tribunal is
binding on the all the small courts. The English Legal system has hierarchical structure.
Furthermore, it has been described that various legislations in the English legal system are
developed by the government by considering the numerous problems faced by the people and
business in the country. It has been identified from the report that many of the legislations in the
English legal system are originated from the common law or formed by the act of parliament.
The various laws such as company, employment, contract, consumer and industrial legislations
have great effect on the routine activities of the firm. Moreover, several standards and code of
conduct have great influence on human resource practices, policies and procedures.
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It has been suggested that the organisation need to comply with the laws that has been
formed by the government. Overall, it will help business entity in increasing its sustainability and
profitability.
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Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
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