Legal System & Its Impact on Business

This assignment delves into the intricacies of the English legal system and its profound impact on businesses. It examines key components like common law, statutory law, and administrative law, highlighting their influence on business operations, employment practices, and consumer protection. The document also explores ethical considerations within the legal framework and discusses how businesses navigate legal complexities to ensure compliance and success.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. English legal system.........................................................................................................1
P2. Sources of English Law....................................................................................................3
TASK 2............................................................................................................................................6
P3. Impact of law on business................................................................................................6
TASK 3............................................................................................................................................7
P4. Several solutions for business problems..........................................................................7
P5. Justification for legal solutions........................................................................................9
TASK 4 .....................................................................................................................................9
P6. Recommendations for legal solutions..............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business law is imposed on each and every kind of association that is operating their
business in various sectors. It involves different rules, policies, regulations as well as process
(Cheeseman and Garvey, 2014). While doing operational activities or business, all companies
need to follow laws which are related with their firm. Regulatory body of United Kingdom
assumes an eminent role to formulate legislation as well as judgement making process. This
report is presenting English legal system of UK which is followed by them to resolve issues or
problems. There are many sources of law which are going to be described in this assignment.
Further, there is a discussion about ADR which stands for Alternative dispute resolution. An
employer of firm has to follow essential laws while doing business such as environmental law,
equal opportunities, health and safety and many more.
TASK 1
P1. English legal system
English law is very common and it has no formal systematization. It consists of both
kinds of legislation, criminal and in addition civil. Judgements which are declared by Supreme or
high court of UK are always bound on each and every other tribunal. Members of English legal
system are responsible to fulfil their rules and regulations which are imposed on them. They have
to follow a systematic approach.
Supreme Court comes at the top in hierarchy and therefore, decisions made by them are
always bound on other courts. It is considered as the top most English court. It is fundamental for
workers of English law to follow framework of this system in a systematic manner. Each and
every kind of association is bound to fulfil these laws in their firm (Stemler, 2013). All cases
which are related to crime go into criminal courts. Rather than this, cases connected to civil are
considered in civil tribunals. It is like a systematic process which needs to be taken after by the
legal authorities. Many rules and regulations are implemented on members and they are bound to
follow them in an adequate way.
There are two kinds of English legal systems which are mentioned as beneath:
Criminal Law: It is much related with offensive activities which are done against the
social group. For the same, offender will get punished by judge. Therefore, by formulating laws
related to criminal offence government can secure society from any type of misconduct. There
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are many example in relation to this, like fraud, theft, violence and many more. Criminal courts
are only able to entertain criminal cases in which one party got physically harm to another party
and damages caused to such person (Allen and Kraakman, 2016). On the basis of such act legal
authorities take legal action against them in order to receive amount of compensation is equal to
that of mentioned under law or damages caused to person.
Civil Law: As per this law, clashes will arise amongst two parties which are private in
nature. For instance: supplier and client, manager and staff members, etc. Party which found
guilty needs to pay damages which can be in monetary form. There are many types of cases
which will be cover into this like disputed related to property.
P2. Sources of English Law
There are some authorities who have power to make law for their country. In United
Kingdom, it is formulated by Tribunals, Parliament and Europe Council as well as European
Union. Instead of this, there are distinctive law sources and it can be regional, global, national as
well as religious. It can be mentioned as beneath:
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Illustration 1: English Legal System
(Source: Lngman, 2011)

EU Law: It was set up in 1950 through development of ESCS (European Coal and Steel
Community). Furthermore, it linked by United Kingdom in approximately 1973. Primary law
was concerned with treaties and rather than this, secondary was associated with directives,
judgements, recommendations and in addition regulations. European Law can over have ruled
domestic legislation.
Statue Law: These kinds of laws are formulated by Parliament. As indicated by this, it
can be drawn up in specific kind of words and will be sanctioned through Parliament and along
with this, need to be in written form.
Common Law: It will be created on the basis of judgements which are made by judges. It
can be defined as customs of persons (Livingston, 2015). According to this, decisions will be
taken by considering previous cases and therefore, it can be understood by people easily.
Equity Law: It is developed by Chancery court with an aim to fill gaps in common law.
Meaning of equity is fairness, but as per English law, it is like rules and regulations which are
imposed by tribunal of Chancery. Nature of this sort of law is much flexible.
Purpose of Law
There are various aims to develop Law in country which are mentioned as below:
 With assistance of this, court can resolve issues of disputed parties in an effective and
efficient manner.
 Law aids to secure rights of people appropriately.
 It is like a set guideline which has to be followed by each and every individual and they
never do their work beyond it. If they do that, then they will get punished by tribunal and
it will be as a fine or sentence and sometimes both. It will provide satisfaction to needs of persons.
Difference between Statutory, Common and equity law:
Statutory Law Common Law Equity Law
It is like a written law and
needs to be followed as it is
without any kind of
modifications.
As per this law, cases will be
resolved with help of previous
suit.
As per English law, it is like
rules and regulations which are
imposed by tribunal of
Chancery.
This law is developed by It is created on the basis of It is developed by Chancery
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Parliament. judgements which are made by
judges.
court with an aim to fill gaps
in common law.
Company Law: There are several regulations which are imposed on every organisation
which is registered under this act. It studies the way essential elements and factors of business
are going to interact with each other. Under this law, all necessary information which is related
to company incorporations and wind up are included. Along with this, it also associates all
regulations of operations of business through which company can protect them from any illegal
activity against them (Tepe, 2016). According to company law, it is essential for every corporate
to create memorandum of association for conducting and making their activities understood to
every stakeholder. This act was formed in the year 1856 and got revised in the year 2006. Every
company has to follow rules and regulations from incorporation for winding up of firm. Owner
of companies are bound to obtain registration in order to conduct legal transaction. After
registration, firm can sue and be sued by others which means that they are easily able to take
legal action against third party. It should be established with specified number of parties such as
2 members’ minimum required in order to form private firm. On the other side, seven members
are required for the purpose of establishing public firm. But maximum need to maintain in
private firm but there is no limit which is specified for public companies.
Contract Law: It is like an agreement which is created amongst two parties and it is
imposed by law. While formulating contract, there are some factors which are needed to be
considered by them such as there must be an agreement between parties, written statement and in
addition there will be some consideration (Kraakman and et. al., 2017). One party gives offer to
other which has to be accepted by him or her (another party). Duties and obligations have to be
fulfilled by both parties which will arise at the time of making contract. Contract law is valid and
needs to be signed by both parties. It is always valid if it is not signed by both the parties. In this,
one person made an offer and another one is responsible to accept that in order to form a legal
agreement. As per the rule, agreement which is enforceable by law has been considered as a legal
contract. Therefore, purpose of contract should be imposed by act which is able to create a legal
relationship in between both the parties. But in case offer is rejected by another party then they
are not able to comply with contract law (Cole and Swartz, 2013). Several terms and conditions
are mentioned in a written document which is prepared by them and implement their stamp over
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it. Such document shall be considered as prima facie evidence and no confusion create amongst
them.
Role of government in law making:
Primarily, agenda of regulatory body is advised with assistance of basic election. Political
parties compete with each other so that they can rule the country. Party who wins election will
rule the nation and if there is tie amongst them (in 2010, it happened) then, they will form
government together and rule country with support of each other. Legal authorities are
responsible to frame new rules and policies in order to protect the existing laws. Also, they try to
implement them in the country and every person of nation is responsible to follow such rules as
well as regulations. Government drafts bill and send the same to parliament in order to receive
royal assent. After such approval, draft becomes law and is implemented in the country. This is a
fundamental duty which is imposed on the members of parliament.
It is fundamental for them to resolve the problems of people who are residing in nation.
To address issues in an effective way, they will use some sort of sources. It is essential for
government to develop policies which will protect individuals from any type of harm. This will
be linked with taxation, education, health and safety and many more (Scheuer, 2015).
Basically, ministers will develop proposal for law making through consulting with other
persons or an expert. For the above stated purpose, cabinet ministers need to get agree.
Furthermore, it will be go to parliament and if they think it is appropriate then they will pass it as
an act or law.
There are some Parliamentary stages which are stated as beneath: First reading: Firstly, title of bill needs to be read out in forum. Second reading: Basically, discussion is made by MPs related to bill. If bill is arguable
then at the end, vote must be given by them. Committee stage: Bill has to be considered as it is. If there is any kind of amendments
made between them, then vote is required to be given. Report stage: At this phase, all members give their reviews.
 Third reading: Lastly, bill has to be voted and considered as final form.
Final approval is provided by monarch and it is known as 'Royal Assent'. Now, bill
becomes act of law and can be demonstrate as Act of Parliament.
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TASK 2
P3. Impact of law on business
Contract is made between two parties and it is enforceable by law. While formulating
contract, there are four necessary factors which are mentioned as beneath: Offer: It is given to other party as they made promise to enter into agreement. It needs to
be particular, complete and in addition, being acceptable by another party. Preparation of
offer is the first stage of every contract (Rohlin and Ross, 2016). Without it, parties are
not able to come in legal relationship with each other. Acceptance: If party accepts the offer and communicates about it to offeror then it will be
a contract. It needs to be accepted as it is without any modifications. But if offeree rejects
the original offer then offeror will develop counter offer. This will contain some terms
and conditions but it is never considered to be original. Consideration: It is in term of value which is exchanged by parties. Thus, they will enter
into a contract. It can be only being in monetary form. There is no consideration among
the parties as well as no agreement amongst them.
 Lawful object: Objective to enter into a contract needs to be lawful otherwise it will be
illegal. Different parties come in lawful statement in order to fulfil judicial obligations
but to complete significant objective or target (Law, Buhalis and Cobanoglu, 2014).
Hence, objectives or goals should cover all legal rules and must be enforceable by law.
To make a contract legal, all factors are needed to be considered. If anyone is missing
from the above mentioned elements, then contract is never considered to be legal.
A contract can be made without face to face interaction and it is imposed on both parties
which can be made on different sides such as e-mail, telephonic. These kinds of contracts are
legal.
Carlill v Carbolic Smoke Ball Co (1893):
According to this case, Carbolic developed an item known as “Smoke Ball” which is a
remedy of many diseases. They advertise about it as well as say if there is never work then so he
will pay £100 per person who purchased it. An individual whose name is Carlill uses this but
after sometime, he got flu; hence, he wrote letter to firm and claim £100. Defendant appealed in
the court.
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Judgement of court: Court refused the appeal which is made by firm as they are bound to pay
£100 to Carlill. Judge provided some reasons behind it which are stated as beneath:
 Is one sided act that offer to provide in all over the world.
 It will be satisfying circumstance which is accepted by people as an offer.
 Purchasing complete as per good consideration.
As a result, Carbolic Smoke Ball Co has to give £100 to Mr. Carlill as a remedy.
Each and every kind of company needs to follow Environmental Law in their business.
This can affect their business either directly or indirectly. By utilizing this, they can reduce their
wastage and will use available resources in an appropriate manner (Michalos, 2017). It will cater
benefits to society because this act give the healthy environment which is beneficial for person. .
By following this law, they will produce goods and services which will help them to compete
with their competitors in the marketplace.
It is fundamental for an organisation to provide Equal opportunities to their staff
members. If they make any kind of discrimination amongst workers, then it will affect their
productivity and profitability. Every individual has a right to be treated equally at the workplace.
If manager is treating them as per their age or gender, then he will get punished as per law.
TASK 3
P4. Several solutions for business problems
(1)
Business law is legal to provide various solution for which are effective and helpful for
firms. In the present scenario, Sarah is the person who is working as secretary in company from
last 7 years. She worked well in organization from last various years. Due to her divorce
procedure she becomes so upset which having impact on her performance. After sometime, she
was not able to manage her work and started shouting on other members. Then she started using
unaccepting language and got openly rude with other people. Due to such reason, official
warning has been issued to her in order to control the current situation. But after warning memo
of her authority terminate her from firm.
But according to Unfair Dismissal Act’ 1977, no company can dismiss employee without
any justified reason. If firm wants to take such action, then they have to obtain a legal notice
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against him. For the same purpose, they have to provide one-month advance notice or salary
(Barkemeyer and et. al., 2014).
If company is failed to comply with such rules, then employees have right to file case
against firm in order to receive amount of compensation. In the present case, Sarah is the person
who was terminated due to her wrong behaviour but without any legal notice or salary. Thus, in
this situation, an organisation is unsuccessful to give such things so that workers having right to
file case in order to receive amount of compensation.
(2)
In the present case, Peter Romanov is a person who act as successful Russian business
man. He is engaged in exporting of high quality of vodka among UK and in several other
European countries. He tries to maintain relationship with other countries (Kumar, 2014). The
importer of United Kingdom placed an order for vodka and on such offer, exporter agreed to
deliver the same but did not define price for same. Due to important fluctuations in price in
month April and May and values of prices has been decreased. So that, due to this reason
exporter receive less as he expected from buyer. However, he received 10% less amount as his
expectation.
According to the rule of contract, parties are bound to follow their rules and regulations
which are imposed on them and mentioned under law (Lngman, 2011). For the same purpose,
they file written agreement and mentioned several terms and conditions with mutual decision.
They are bound to clearly communicate consideration of each other so that no confusion would
take place among them. They are responsible to fulfil the roles and responsibilities which are
imposed on them and mentioned under law.
In the present report, UK importer placed an order for vodka and exporter accepted the
same in order to earn profit but parties did not fix any amount of consideration (Bird and Cahoy,
2015). In this case, Romanov is not able to file case against another party because they are not
antecedently deciding amount and after that if he received less amount as this expectation then
it’s not able to considered as fault of person.
P5. Justification for legal solutions
Business law is the legal term which is able to provide different solution for every
organisation problem. But parties have to comply with such rules, regulation and policies which
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are imposed on them. In case if damages are caused to person due to negligence of another
person then in that case, injured party is having right to file case in order to receive amount of
compensation. This is the significant duty which is imposed on them for the purpose of
complying with law.
Before incorporation of company, members have to obtain legal registration of firm.
After that, they are able to commence business and conduct transactions as well. Organization
can raise capital with the help of issued shares in market. But law imposed restriction over
private firms. Such companies are not able to raise their capital through issue of shares. On the
other side, public companies can issue their shares in international market in order to increase or
raise fund as well as maintain their performance in the international market (Bubb, 2014).
General rule is specified under law regarding termination of contract. Parties are able to
breach contract but direct follow termination steps of legal agreement. They are bound to take
mutual decision for the same purpose. After that, they must get satisfied with the decision. In this
case, no party can file case against another. As per other hand, if person breaches contract act
without any previous intimation and due to this, damages caused to another party then suffered
person having right to file case against another party in order to receive amount of compensation.
According to the rule of employment law, companies are not able to dismiss employees on the
basis of doubt only (Ferrero and Sison, 2014). They have to obtain prior notice or salary and
send the same to workers in order to disregard from organization.
TASK 4
P6 (A). Alternate dispute resolution.
Alternate Dispute Resolution is the legal body which is introduced by courts in order to
reduce their burden of cases and easily resolve dispute of parties who lodged their complaints in
courts but not able to receive fair judgement. Furthermore, after implementation of such legal
system parties receive fair and fastest justice. Due to this rule, large number of people are
satisfied with legal procedure and receive satisfaction as well. Such system is performing
ethically and maintaining performance in an effective manner (Fabiani and Sbragia, 2014).
Courts reduce the burden of cases. But parties are not able to lodge same complaints among
different person on similar subject matter in both courts as well as ADR. They are able to record
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case in either ADR or courts. But in case if they are not satisfied with the judgement of courts
then they can file same case in ADR and Vice Versa.
Resolution has been mentioned under law which are as aligned below-
Arbitration- It is an important part of ADR legal concept in which third party is called as
mediator who is responsible to resolve the dispute of parties. Such person is called as arbitrator.
Initially, it provides opportunity to hear to both the parties. After that, provide final justification
so in this different parties are constricting to follow in same manner. Final judgement has been
called as award which needs to be present in written form.
Conciliation- It is also considered as a legal system in which parties resolve their matter
in an effective manner. Person who is responsible to resolve the matter of parties is called as
conciliator. In which at least person have to sacrifice their interest. Final decision has been
provided through settlement agreement in written form and must be signed by parties.
Mediation- In the legal process, mediator has been working along with parties in order to
resolve dispute and provide final judgement to them. Through this, problem of parties can be
easily resolved (Loafman and Little, 2014).
Ombudsman- It is the legal authority which is able to provide effective solution to people
in order to provide satisfaction to them and maintain their performance. In this, single person is
responsible to do such kind of act. He must perform functions ethically and maintain a healthy
relationship with both parties.
Negotiation- In this legal process, parties are responsible to negotiate with each other in
order to compromise their rights and interest (McCahery and Vermeulen, 2014).
P6 (B). Recommendations for legal solutions
Through every citizen easily getting to resolve dispute as well as maintain performance in
effective manner. Alternate Dispute Resolution has been offered with fair, fast and cheap justice
to people. Also, it is able to attract a large number of customers towards its judgement procedure.
There are various people who use such legal services. Parties who are working in similar
premises or dispute which arise among them. But such dispute is not beneficial for parties. Thus,
legal authority would like to recommend to that parties which are able to file their case in ADR
in order to getting their dispute resolve in timely and effective manner (Darke, 2013). Providing
of fair and timely justice is the main objective of this legal system in order to attract large
number of people and getting resolve of parties. Recommendation should be available for them
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that they have tom lodge complaints in Arbitration and try to best possible advice and receive
fast or fair justice to them.
CONCLUSION
On the basis of above report, it is stated that there are various types of sources of law
which are able to resolve matter of parties and try to protect their interest as well. Government
plays an effective role in the law making process. It has been assessed that primarily, bill of draft
is prepared and then sent to parliament for the purpose of obtaining royal consent. If it is
accepted within stipulated time period, then draft becomes law and implemented in the entire
country. But, in case if it is not accepted then it is considered to be rejected. Contract law is the
legal term in which two or more parties come in contractual relationship with each other and
bound to comply with law. According to employment legislation, employers are responsible to
deliver health and safety working environment to employees in order to keep them for long
period of time. Overall, it can be articulated that business law consists of different types of laws
which are able to resolve matter of parties and provide the best possible solutions to them.
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Online
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<http://tarlton.law.utexas.edu/english-law>. [Accessed on 10th October 2017].
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