English Legal System and Business Law

The assignment has codified law which makes it different from other legislative systems. It highlights the importance of company law in business operations and employment law in human resource management practices. The English legal system is explained, with a focus on common legislation and statutory law as the primary sources of norms. Case studies are provided to illustrate different legal solutions. The assignment also emphasizes the need for a legal agreement when entering into contracts, ensuring both parties commit to terms and conditions.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1 Different sources of legislations that are to be complied by organisation ............................2
P2 Role of government in development or creation of law ......................................................3
M1 Effectiveness of English legal system in terms of recent reforms and development..........4
TASK 2............................................................................................................................................5
P3 Effect of Employment and contract law on business............................................................5
M2 Differentiating and analysing the potential effect of standards, regulations and
legislations...................................................................................................................................6
TASK 3............................................................................................................................................7
P4 Appropriate legal solutions for business Problems...............................................................7
P5 Justification for the utilisation of appropriate legal solutions...............................................9
TASK 4............................................................................................................................................9
P6 Explaining the legal system in Italy.......................................................................................9
CONCLUSION.............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
The law which is applicable to various business situation is known as business law. It is
legislation that is related to commerce as business norms deals with various aspects of
entering into purchasing and selling of goods or services. Business legislation is the part or
division of legislations that deals with legal duties, rights , responsibilities of parties who are
involved in business contract or transactions. It also involves the study of legislation of contract
which is essential in agreement that includes two or more parties engage in buying as well as
selling of products or services. Objective of business law is to clearly defines the roles as well as
responsibilities , duties and legal obligation to parties involved in purchase or sells of goods.
The purpose of report is to develop the understanding about several sources of
legislation that are essential to be comply by organisation operating within country..
TASK 1
P1 Different sources of legislations that are to be complied by organisation
The organisation operating in UK has to comply with the several laws that has been
developed by parliament or government in the country. All the legislations and norms are
created according to the English legal system. This legal system has its own procedures and
courts. The law in the English system are to be followed or considered by the companies
operating their business in England and Wales. English legal system has hierarchical structure in
which the decision made by the supreme court is binding upon all lower courts. In this legislative
system , supreme tribunal is the legal authority after parliament who has authority to make
decision related to approval of bill for implementation in the country. The purpose of these
norms developed by government is to ensure fair trade practices and restrict unethical business
operations. In English legal system, at top of hierarchy , there is appellate tribunal which has
power to make major decision after the supreme court. This legislative system consists of
various divisional tribunal such as family court, civil, criminal division etc. But these courts are
required to follow the decision made by supreme court (Vanhala,2018) The administrative court
is the part of Queen bench division in the English legal system. This legislative body associated
with claims of judicial review. In English legal system civil and criminal division are the
important branches. The role of barrister is to deal indirectly with the client and provide them
with legal advice. It is the duty of barrister is to act as the representative of parties in tribunal.
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They are responsible for presenting the cases or evidence on behalf of parties in front of
magistrate barrister receives additional training in evidence law, ethics, and court practice and
procedure. Solicitors are the person is to directly communicate with the parties and provide them
with legal solutions. Function of barrister to act as instructor of a senior solicitor. It is duty of
solicitor to prepare draft and collect all legal document that are to be presented before magistrate
in the court. The uniqueness of this legal system is that it does not have unified code.
The various sources of law in English legislative system are:
Common law-These are the general norms that are to be followed by the organisations dealing in
different industries. It is the legislation that has been developed from the judgement made by the
tribunal in previous cases. This the major source of various norm in English legal system.
Statutory legislation-These types of laws has been originated by act of parliament. These
legislations are not intentionally created by government or parliament.
Human right-It is the norm developed by the European Union with the intention to protect as
well as prevent the right of employees from exploitation by employer at workplace.
Equity legislations- These are the specific principles or standards on the basis of which the
various judgement are made by the magistrate in the court.
European legal system- Many of the legislation in the English legal system are influence by the
several laws in English legal system. While some of the norms in the legislative system are
formulated by the government of European Union. Before Brexit these norms were followed by
UK. But after Brexit, UK government has planned to create its own legal norms as per the
requirement of people or organisation operating within the country (Christensen, Onul and
Singh, 2018)
P2 Role of government in development or creation of law
The legal authority in the country has responsibility to provide healthy and safe
environment to people. In addition to this function of government is to identify the various
issues faced by the people or various industry in the country and provide them with legal
solutions. It is the duty of government in law making to represent the interest of local people in
front of parliament. The function of legal body is to recognise the appropriate solutions to the
problems faced by the organisation or people in the country. It is required by government to
prepare draft that are to be presented before the members in the parliament. Then after the
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completion of draft, the same be converted into the proposal and forwarded to the local body at
the state level. If the proposal is signed or approved by the courts or local body at lower level.
The next stage is to forward the same to the parliament for the first reading. After the first
reading has been conducted, the legal authority is required to make changes in bill as per the
advice of the members in parliament.
At next phase, after the amendments has been made in bills or proposals , the government
has to present the bill for third reading. At this stage, proposal is forwarded to the special
committee for investigation.
Committee stage, At this phase, the result of investigation is announced by the special
committee. During the stage, a short debate related to approval of the proposal can take place.
The government can not make changes in the bill until and unless suggested by the members in
parliament.
This the last stage where the bill has to be presented by legal authority for fourth reading
in which the final decision of approving or rejecting the bill or proposal is made by the members
in parliament.
If bill will accept then it will automatically convert into the legislation and law of
country. But in some cases, if bill is not approved by members in parliament then in such
situation, role of government is to identify the other alternative solution to solve the various
issues faced by citizens or industry (Scott,2018)
M1 Effectiveness of English legal system in terms of recent reforms and development
It has been identified that there has been great improvement in English legislative system
due to amendments or development of new reforms. The major changes and amendments were
planned by parliament that assist to country in protecting and securing activities. Changes in the
policies, procedure and practices offender management services has been also improved in the
country. The important changes that has been made by government or member in parliament are
departmental of constitutional affair has been replaced by Ministry of Justice .here has been also
amendment in regulation related to the qualification of sectary of State of Justice Lord
Chancellor. Legal service commission is developed to assist poor people in identifying the legal
as well as effective solution to the several issues faced by them (Beatty, Samuelson and Abril,
2018)
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TASK 2
P3 Effect of Employment and contract law on business
Advising Imad about the things that are required to be considered when establishing or naming
the organisation:
The first step is that Imad need to decide that whether he wants to establish public or
private limited companies. At the next satge, Imad need to decide the name of company and
nature of business. When naming the organisation, the following things that are to be considered
by Imad are:
The name of an enterprise should be unique. It should not be same as that of existing firm. As if
Imad is planning to establish public limited company then in such case , he has to fulfil greater
regulation. If , it is a private company then LTD should be used after the name. The sensitive
words should not be included in the name. If name consists of special words or expression that ,
Imad has to take permission from government. For instance, in order to use word Accredited
before or after a firm name, then individual need to take approval from Department of business.
After deciding the name of organisation it is required by Imad to get company register
with the registrar in UK. The following steps are included in getting company registered in
systematic manner.
The third stage is collecting and arranging all the documents that are to be submitted to
registrar for getting the organisation registered. Data related to the company that are required to
be submitted at registrar office includes name of an enterprise, nature of business, operations or
activities, details of share capital that are to be created, contact numbers , address of directors as
well as employees, information about share holder etc.
At the next stage,Role of director is to prepare memorandum as well as article of
association that are to be submitted at registrar office. Function of director is to arrange all the
information as well as documents and file the same with companies house. The next step is wait
for the approval.
Once the permission has been given by the registrar then , it is the duty of director to
conduct the firm board meeting for fulfil\ling the legal requirement.
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P3 B) In Case of Chad, It has been advices to Chad that instead of leaving the job , he is required
to facilitate communication with his employer and share his views with him. As employment law
provides individual a right to share their values, belief with other person at workplace. This
regulation also provides person to get treated equally at workplace and raise their voice against
unfair practices or policies of companies. According to Employment law an individual has right
to file suits against the employer who has been conducting discrimination among people. This
factors have adverse effect on the reputation of organisation. It also has adverse impact on
employer and employee relationship at workplace. Employment norm also has great and direct
influence on human resource practices, business policies and plans related to managing people
within an organisation (Neubauer and Fradella, 2018)
P3 C) It has been identified from the given case study that Abraham has not received the T-shirt
that has been ordered by him. The consumer act 2015 states that Every contract to supply goods
is to be treated as including a term that the quality of the goods is satisfactory. In given case
study, The Abrahim has the right to reject the T-Shirt and demand for pick schedule by
suppliers. He can also demand for replacement of the product. The other right that can be
executed by Abaham in such situation is right to ask for price reduction. Abhrahim also has the
right to recover the amount from trader that has been paid during the purchase of particular item.
These issues have great effect on business performance also on brand reputation. It also has
adverse effect on firm sales and profitability. The company may also have to face legal
obligation due to these issues (Trad and Kalpić,2018)
M2 Differentiating and analysing the potential effect of standards, regulations and legislations
Standards are developed to assist the manager in organisation in recognising or analysing
the area where improvement has been made. It also supports manager or leaders in evaluating
and measuring the business or employee performance. Standards helps manager in measuring
the actual results with desired. The objective of setting standards is to bring improvement in
quality of product or services.
The regulation are established by an enterprise considering the need of encouraging
employees for improving their performance in a company.
Legislations are formulated by the parliament or government for developing country. The
other objective of legislation is to restrict unfair trade practices.
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TASK 3
P4 Appropriate legal solutions for business Problems
As per the company law states that the role Of director is to act as agent for the
organisation. It dictates that directors are the agent of a company who responsibility is to work
for benefit of an enterprise. Company law also defines that legal obligation on organisation has
to be handled as well as managed by director. It also states that the company has separate legal
entity. Director is the person who has been appointed by the shareholder fort directing as well as
managing various business affairs. Their legal position is also sometimes recognised as trustees
and managing partners. Directors have power to mag big and important decision for the benefit
of venture. As it has been identified from the given case study that Caterina has signed secured
contract with other company in order to develop new game.
The company law highlights the roles as well as responsibility of person acting as a
director in an enterprise. Some of function of director are they have to conduct various
operations in business with care by considering the several clauses in memorandum and article of
association. Director enter into contract and wherever , they put their signatures, they do so only
on behalf of the company. Person for this position are selected as well as appointed by the
shareholder within an enterprise.
In some situation or aspects , The directors in an enterprise has to act as trustee. As it is
their duty to make decision related to investment. Role of director as a trustee is to protect the
interest of organisation. Director has certain powers that can be executed by them these are to
issue or forfeit share, make call, conduct meeting, to issue further capital , management. These
powers are to be executed by them for the benefit of an enterprise. They are not trustees for the
creditors of the company. As it has been identified from the given case study that Caterina as she
is a director is not acting as a trustee for creditors. But she has the right to contract and
responsible for complying with all terms as well as condition in an agreement.
The corporate law also states that the position of director is similar to that of a managing
partner because they are appointed to their posts by an arrangement between them and all the
shareholders. But in such case, the liability or responsibility of director is limited to the payment
of unpaid share (Kolasa, 2018)
The roles as well as duties of directors in case of insolvency
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Insolvency proceedings are considered as informal procedure. The purpose of conducting
this procedure is to support firm in dealing with unfavourable as well as difficult situations. In
such circumstances the role of liquidator in given case study simon is required to make
voluntary arrangement. In this set up an enterprise as well as creditors reach a contractual
agreement through negotiation. The subject matter of discussion is over payment of debt. Simon
can facilitate negotiation or discussion with creditors in order to reschedule and/or reduce the
amount owed to creditors. This can be executed or supervised by the insolvency practitioner in
order to fulfil the requirement of insolvency act 1986.This is the effective method that can be
adopted by simon for distributing the assets to creditors.
In this process , function of director is to create or draft proposal for creditors. Proposal
may contain the terms or conditions that comp-any would like to agree with creditors and
members.
Role of director is to present the proposal to creditors and one its get approved by them
then same should be reported to court (Jones, 2017)
Suggestion to Simon the way he can distribute asset to creditors
There are several methods that can be adopted by liquidator in given case study for
distributing assets. These methods are:
Ranking creditors: This method is advice as in situation of insolvency , the organisation may
not have sufficient amount of capital or money for paying debt to creditors. Order of ranking
that can be adopted by simon includes fixed charge creditors, shareholders, preferential creditors,
creditors with unsecured provable debts, statutory interest etc. If the secured creditor decides not
to sell the asset over which they hold security, they can give up their security so that the asset can
be sold for the benefit of all the unsecured creditors.
In given case study, it has been advised to Jose gaming Ltd. That the company should
pay Sam. As it has been identified from given case study that Sam has completed some part of
his task and he can not able to fulfil his remaining duty to illness. The other reason that the
organisation should pay the amount to Sam is that the cited venture does not have to suffer any
kind of losses due to Sam. As this is the principle of mutual trust , faith that both the parties have
when they enter into legal agreement with each other. Breaking of trust can have adverse effect
on relationship between parties in contract (Teti, Abbott and Cavatorta,2018)
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P5 Justification for the utilisation of appropriate legal solutions
The legal solution given to Jose gaming Ltd. Is that the cited venture should party
money to Sam for conducting his task. This is an effective solution , as it will help parties in
contract to maintain its commercial relationship. It will also allow parties to fulfil their
remaining task or enter into new valid contract.
In above case roles as well as duties of directors has been described, as this will assist
them recognising their duty during the situation of insolvency. As this solution will support firm
in overcoming difficult as well as complex situation.
The other advise in above case has been given to Simon related to distribution of an asset
among creditors. It has been advice to Sam that he should adopt the ranking method for
distributing the assets among creditors. As this will help Sam in identifying the important
creditors who has high power to file law suit against the company and organisation doest not
have healthy relationship with them. This solution will aid business entity in eliminating the
further problems or legal obligations. It will support manager in proper allocation of funds
among the creditors .Ranking method will also assist manager in identifying creditors to whom
the company has to pay highest amount of debt. It will help firm in minimising or eliminating the
extra cost of liquidation. As these costs will be repaid full before any of insolvency debt. Cost of
liquidation involve expenses that are incurred to transform or convert the organisational assets
into financial resources. As with the support of this method the company will able to pay debt to
all its creditors. It also provides company an opportunity to develop and maintain healthy
relationship with creditors. Ranking method will aid firm in eliminating floating charges
(Fletcher, 2018)
TASK 4
P6 Explaining the legal system in Italy
The Italy legal system is based on principle of Roman legislations. Italian civil judicial
system has adopted the principle of two tier justice system. This legislative system is based on
the written laws value. It enables the re consideration of judgement or decision made in earlier
law suits. The second tier of legal system is appeal. Constitution develops the fundamental
legislation or norms and provides legal basis for administration of public authorities. This legal
system is considered as rigid because it includes complex procedure which is required to be
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conducted in order to make amendment or changes in constitutional laws. The several laws in
this legislative system are developed for governing commercial relationship between various
organisations in Italy.
It has been identified from given case study that when entering into the contract both the
parties has agreed on the terms that in case of conflicts, they will take support of arbitration
method for resolving their dispute. Therefore, considering the terms of contract both the parties
has decided to resolve case in UK. Arbitration is the effective method that can be adopted by
both the parties for resolving their problem. As this is the process which can be used for handling
as well as managing conflicts at national as well as international level. It is suitable technique for
resolving conflict as the solution of the problem can be identified without going to the court.
Arbitration is kind of dispute resolution mechanism in which both the parties appoint the third
person for recognising the solution to resolve dispute. In this procedure, role of arbitrator is to
assist the parties in identifying the root cause of problems so that such types of situations can be
avoided in the future. Function of the arbitrator to provide appropriate and effective solution to
parties facing problems. It provides parties an opportunity to solve their problem confidentially
and maintain their commercial relationship. In arbitration procedure, parties has right to accept
or reject the decision or solution provided by arbitrator (Guerrina and Masselot, 2018)
In the procedure of arbitration both the parties has right to share their values, story,
problem and belief with arbitrator. The parties have right to select arbitrator of their
choice .Parties has the right to take other legal advice from the arbitrator. Parties can also make
discussion or facilitates negotiation in order to reach agreement.
The other methods of resolving commercial disputes are negotiation and mediation.
These are also alternative dispute resolution process through which the parties can reach to the
mutual agreement. Mediation is the process that can be implied as soon as possible to the
solution. In this method mediators is the person who support parties in recognising the
appropriate solution to the problem. Negotiation in the method in which the parties in disputes
facilitate discussion and negotiate in order to reach to mutual contract. This is an effective
method as using this procedure both the parties facing disputes can gain various benefits.
Mediation, arbitration and negotiation is the appropriate method as these procedures are less time
as well as cost consuming ,and it does not have any adverse impact on the reputation of any of
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the party. The arbitration and negotiation method is suitable as it provides parties a chance to
express their view about the subject matter and reach to the solution. In all the above method, the
parties in disputes can ensure impartial and fair decisions. In mediation and arbitration process,
parties can set their own principles and rules for resolving the conflict. This method provides
parties an opportunity to leave the process any time when they feel that their rights has been
exploited or party is not satisfied by the decision or solution provided by arbitrator (Hui, 2018)
CONCLUSION
The report has concluded that the uniqueness of English legal system is that , it does not
have codified law which make it different from other legislative system .It has been concluded
from the study that several norms such as company law has great effect on the business
operation. Employment law has direct impact on human resource management practices and
policies or strategies framed by them for managing people at workplace. The project has
successfully explained the English legal system. It has been concluded from resignment that the
common legislation and statutory law are the two main source from where the several norms in
English legal system are originated. The several legal solutions are provided for different case
studies. The assignment has explained the procedure that are required to be followed when
establishing new business venture. It has also highlighted some points or few factors that are
required to be considered when naming the company.
It has been suggested to the parties those who has been planning to enter into a contract
that they should form legal agreement. As this will help parties in ensuring that both the parties
are committed to the terms and conditions in contract.
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REFERENCES
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international environmental procedural rights back home. Law & Policy.
Christensen, J., Onul, D. and Singh, P., 2018. Impact of Ethnic Civil Conflict on Migration of
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Scott, J., 2018. Negotiating Constraints On Legal Translation Performance In An Outsourced
Environment. Law, Language and Communication: Negotiating Cultural, Jurisdictional
and Disciplinary Boundaries. Cambridge: Cambridge Scholars, 1.
Neubauer, D.W. and Fradella, H.F., 2018. America's courts and the criminal justice system.
Cengage Learning.
Trad, A. and Kalpić, D., 2018. The Business Transformation Framework and its Business
Engineering Law support for (e) transactions. In Encyclopedia of Information Science
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Kolasa, M., 2018. Trade Secrets and Employee Mobility: Volume 44: In Search of an
Equilibrium (Vol. 44). Cambridge University Press.
Teti, A., Abbott, P. and Cavatorta, F., 2018. Employment Creation, Corruption and Gender
Equality 2011–2014. In The Arab Uprisings in Egypt, Jordan and Tunisia (pp. 103-122).
Palgrave Macmillan, Cham.
Fletcher, A., 2018. Employee Health Benefit Programs—Who Are They Really Benefitting?.
Guerrina, R. and Masselot, A., 2018. Walking into the footprint of EU Law: unpacking the
gendered consequences of Brexit. Social Policy and Society, pp.1-12.
Hui, E.S.I., 2018. Workers’ Refusal to Consent. In Hegemonic Transformation (pp. 197-229).
Palgrave Macmillan, New York.
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