Importance of Business Laws and ADR Processes

The provided report highlights the necessity of business laws for effective company management. It explores various measures to handle different types of legal factors, including government involvement in law development and implementation. The document also delves into Alternative Dispute Resolution (ADR) processes, their advantages over traditional systems, and examples illustrating their importance. By discussing DIY resolution, ADR processes, and the benefits they offer, this report provides valuable insights for businesses seeking efficient dispute resolution methods.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO1.........................................................................................................................................1
P1. Different sources of law needed by the organisation.......................................................1
P2. Role of government in the law making and implementation of common and statutory law
................................................................................................................................................2
TASK 2............................................................................................................................................3
LO2.........................................................................................................................................3
P3. Impact of employment and contract law on the business.................................................3
TASK 3............................................................................................................................................4
LO3.........................................................................................................................................4
P4. Solutions for the range of business problems...................................................................4
P5. Justification of the legal measures that are being taken into the above cases..................5
TASK 4............................................................................................................................................6
LO4.........................................................................................................................................6
P6. Recommend solutions based on country's legal system...................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Law plays a very crucial role in the functioning of the business. The laws which bounds
the business will look after efficient execution of its various operations that will be held at the
organisation. These laws will safeguard the employees and will help the organisation to take
effective safety measures that will help a business to carry out its operations (Allen and
Kraakman, 2016). This report will focus on the legal system of UK and various sources of
organisational laws. Also, the role of government in the law making and implementation will be
discussed. Apart from this, impact of various employment law and contract law have been
discussed. Moreover, legal solution to various legal problem have been discussed.
TASK 1
LO1
P1. Different sources of law needed by the organisation.
The English legal system plays a very crucial and important role in the management of
various business practices in UK. It will look after that the functions that are being held in the
business firm and will help the company to gain better idea about the legal obligations that
company needs to take into consideration (Robson, 2015). The English legal system consists of
various types of laws and acts that can be taken into consideration to manage the work processes.
It consists of two sections of laws and acts which includes: Civil Law and Criminal Law.

The Civil laws consist of various acts that manages the cases like property, divorce,
family disputes etc. On the other hand, the Criminal laws are meant for the effective handling
and prevention of the criminal activities like theft, murder cheating, harassment etc. Besides this,
there are certain code of conducts that are being meant to be followed by all the citizens and
employees. Some laws that are needed to be complied by the organisation are as follows:
 Legislation or Statutory law: It is known as the legislative law under the legislation of
UK. It covers all the citizens, in this case, the employees of the company are liable on
them. It is under the government responsibilities to make any sort of change in regard to
the organisation (Orlov, 2016). It covers articles, sections and acts that are being taken
into consideration by the organisation. In case of international treaties, foreign policies
and implementation of new laws, the parliament plays a very crucial role that helps the
government or an organisation. The law or the act that is meant to be passed on has been
first presented and discussed in both the houses of the parliament and its effects are being
Illustration 1: English Legal System
Source: English Law, 2017

discussed by the members. Once the members agree to implement it, the draft of the law
is being signed by the legislation and is passed as a law.
 Convention of the Human Rights: Also known as the code of conduct, it is the set of
rules and regulations that are being taken into the consideration by all the citizens or the
employees in the organisation (Miller, 2015). It is a sort of international treaty that
bounds the business organisation in UK to treat their employees in an equal and uniform
manner, without any discrimination. As it is a fundamental human right, it cannot be
denied by anyone.
 Common Law: It is based on the past judgements and the decisions with the reference to
capabilities and references that are needed to be taken into consideration. It includes the
acts and sections that becomes the part of law or legislation (Cheeseman and Garvey,
2014). It also includes the legal acts and decisions of the European law that are being
taken into consideration by the European union as compared to the UK law.
The type of laws that are been taken into consideration are:
Criminal Laws: It includes the offences that occurs against the State. It includes various sort of
crimes like theft, murder, etc. this includes the laws like Theft Act 1968 which is implicable if
the person is hold conducting burglary. It includes the summary offence(less serious) and
indictable offence(serious) crimes.
Civil Laws: It regulates and enforces the rights and duties among the individuals or the
cooperation. They act as interlink between the individuals and the State. It includes the offences
such as negligence, defamation, trespassing etc. It includes various laws like company law,
family law etc.
The major difference between the English legal system and the legal system of France is:
Legal system
English Legal system French Legal system
 The basic civil law is known as the
Common law.
 The law associated with people is
knows as Civil law.
 It is an independent body.  It works with the legislative authority

or the government.
 The laws are been passed by the upper
house and the lower house.
 The laws are been developed and
passed by the National assembly and
the Senate.
 It consists of the jury and the legal
associates or the solicitors.
 It comprises judges and magistrates
who look after the establishment of
law.
P2. Role of government in the law making and implementation of common and statutory law
The government plays a very crucial and important role in the development and
implementation of the laws that are being passed under the legislation. It is the government's
responsibility to look after the effective implementation of the legislative and legal acts and
manage any sort of issue that can affect the organisation. The development of laws includes the
following processes:
 Drafting of Bill: In the initial stage, the draft of the bill is being prepared by the legal
experts in a committee that has been formed for the law making. It may include the
private bill or a public bill that is being taken into consideration by the legal associates
that are meant for the betterment of the individual or the society (Coffee Jr, Sale and
Henderson, 2015). Also, it will include the responsibilities of the local authorities that
will look after the effective management of the law.
 Presenting in Assembly: Once the bill is being drafted by the legal experts, it is
presented into the parliament where its first reading takes place. This reading is being
held by the legal associates or the representatives in order to give a brief introduction
about the bill to the members of parliamentary bodies.
 Second reading: After the bill has been introduced in the parliament through the first
reading, a second reading is being given to it, so that the members of the parliament
discusses and debate on its feasibility (Mann and Roberts, 2015). The act is being put to
test under various circumstances and based on the analysis and evaluation, amendments

are being made by the law drafting committee. It is the phase where the bill is either
accepted or rejected in the parliamentary assembly.
 Third readout: In this step, voting is being held by all the members in the parliament, in
against or support of the bill to get the bill accepted or denied.
 Royal Assent: Once the bill is being discussed, the royal parliament in UK looks after
that the bill is being passed as an act of law and is implemented in the country by the
government.
Besides this, the government plays a crucial role in the implementation of laws like
common law as well as the statutory law. The common laws include the acts in regard to the
common issues or cases that includes family dispute, partnership cases etc. They just affect the
functions of the organisation and their penalties are not very severe (Bird, Cahoy and Prenkert,
2014). On the other hand, the statutory law includes cases like murder, theft etc. and are being
implemented and looked after by the government in order to maintain the safety and welfare of
the society. Their penalty or punishment is severe as compared to that of common laws.
TASK 2
LO2
P3. Impact of employment and contract law on the business.
The employment and contract laws play a very important role in the management of the
business. These laws will look after the effective implementation of the work processes at the
business organisation and will help the company to follow better work environment at the
company. The employment laws are being adopted by the company to develop a better
relationship with its employees (Cheeseman and Garvey, 2014). Besides this, it will help the
company to manage its workforce in a very effective way. The employment laws will help the
employer in recruitment and selection of the employee as well as their termination. Besides this,
it will help the company to adopt the effective safety measures that helps the company to develop
a safe environment at the business firm. The employment laws are a basic platform which helps
the employer firm to set the general set of rules and regulations that are being held by the
company to maintain its profitability and productivity. These rules will look after the conduct of
an employee in an organisation. The failure of the implementation of the employment laws in the
organisation will affect the company to a greater extent. It will not only cause the company to

lose the employee's trust, but also reduce the overall profitability and productivity of the
company.
Likewise, the Contract laws will also affect the overall functions of the organisation to a
greater extent and will look after the effective running of the organisational functions. A contract
is a mutual agreement between two or more concerning parties who come up together to agree
upon a common goal. The contract needs to share the common goals of the employees or the
partners in a very effective way (Clarkson, Miller and Cross, 2014). The concerning parties in
the contract are liable to provide the complete and correct information that can affect the
contract. If any of the party fails to maintain the rules and regulations or the conditions that are
being set in the contract, it is being violated and in this case, the party breaking the contract is
liable to bear all the loses caused to the business firm. The effective management of the contract
law will help the company to gain better profitability and productivity and will cause the
company to maintain better management of the resources and workforce. Also, it will help the
company to build better business relationship with its employees, customers and the business
partners. On the other hand, failure to manage the Contract law will impact the company
goodwill and profitability in a very negative way.
The employees play a very crucial and important role in the management and
implementation of the various employment and the contract law in the company. Being the basic
unit of the organisation, they are liable to get involved in the decision making and benefiting
from the employment laws that are been implemented in the company.
The legal steps that are been taken by the directors of the company to set a company are:
Step 1: Getting a business plan.
Step 2: Taking help and training
Step 3: Deciding a business structure.
Step 4: Registering the business name
Step 5: getting a Tax ID from the registered Tax authorities.
Step 6: Applying for trade permits.
Besides this the legal Directors plays a very crucial and important role in the management
of the legal operations in the company. They will look after the financial operations and will see

through the efficient management of the operations of the company. They will coordinate with
the HR departments to look after the efficient management of the legal aspects of the company.
Various types of the business organisations are operational in UK that are been taken into
the consideration are:
 Sole trader: they are been hold by the individual traders and thus, their profit margins,
assets and functions are been owned by the only one person. Thus, the legal obligations
are meant to be followed by an individual. For example, grocery store or convenience
store etc. it is individual in nature as the owner of the business is an individual person.
 Partnership firms: the partnership firms are the business organisation that works or
collaborate with each other and thus the profit margins and the legal obligations are been
shared among the business partners. The nature of such firm is affected by the nature of
the business partners who will constituent the partnership of the organisation.
 Registered Company: The registered company is a business organisation that helps in
the effective handling of the various operations and is registered under the government
authority. Besides this, it will help them to meet the effective handling of the various
operation's and legal functions. Such firms will be liable in nature as they are associated
with the governmental or legal authorities of trade.
Various steps are been taken into the proper consideration by the business organisation to
set up or establish as an business organisation in market. Some major steps that are been taken
into consideration are:
 Research process: Effective market research is been done to get the proper idea of the
various operations that are required to be taken into the firm to develop as a company.
 Planning: based on the data received from the research, effective planning will be made
to maintain the various resources and finance.
 Registration of company: the registration process of the company is been taken into the
proper consideration that is meant to be followed by the company to avoid any sort of
legal glitches.
 Licensing and permits: The business operations may lead to the requirements of
effective licenses and permits carrying out certain business operations. Thus, they must
look after the effective management of various permissions.

 Setting up the location: the business location plays a very vital role in the effective
management of the various operations in the company. A location, easily accessible to
the customer will attract more number of users.
 Recruiting the staff: the effective recruitment process will be carried out to get the
employees for the better handling of the various operations in a company.
 Promotion and advertising: The effective measure for the better promotion and
advertising of the company will be carried out for the better setting up of a company.
The directors in the various firms will play a very crucial and vital role that helps in the
effective handling of the various operations. Other than this, the better handling of the various
operations are been taken into the consideration. Apart from this, the directors will look after the
better management of the various operations that help in improving the productivity and
profitability of the company.
TASK 3
LO3
P4. Solutions for the range of business problems
Various types of the legal problems are being faced into the organisation. For instance, in
first case, David was hired by Larson Financial Limited as an on-roll employee under a contract.
The contract says that if the employee is found in an unlawful activity at the work place, he will
be terminated immediately, without any prior notice (Coffee Jr, Sale and Henderson, 2015).
After few months, one day a fellow employee found David working suspiciously in the data
room. When interrogated, it is found that David was trying to get the access to the details of the
clients of the company. As this is the violation of the company's privacy policy, company is
liable to terminate David for the violation of the contract of the company under the Contract law
followed by the company. The data safety is very crucial and important for the company and
failing to it may affect the overall goodwill and profitability of the company (Kariyawasam and
Low, 2014). As while joining, David was presented the contract which said that any sort of
unlawful activity at the work place will not be tolerated and the strict legal actions will be taken
in order to handle it, David accepted the contract. Now, when Larson Financial Limited caught
David red handed trying to steal the important and vital information about the company's client's,
Larson Financial Limited is liable to terminate David from the job. Also, David is not liable to

get his salary or any due amount, due to violation of the Contract of the company under the
Contract law.
In second case, Mr. Cooper runs a retail store in the country side. Lily is a sales person
working at the store. Due to certain reason, the retail store caught fire. Due to lack of the safety
equipment available in the store, the fire grew tremendously. Lily was saved from the fire but she
sustained severe burns (Lieberman and et.al., 2016). In this case, Mr. Cooper is liable to provide
Lily with the suitable compensation as under the Safety at the Workplace Act. Along with this,
Mr. Cooper has to provide Lily with the suitable medical treatment in order to get her better. As,
Mr. Cooper failed to maintain the effective safety measures at his retail store, which caused Lily
to get injured. Thus, it is Mr. Cooper's duty to provide with appropriate compensation and bear
the expense of her medical treatment of Lily. Besides this, he should adopt effective safety
measures at his retail store to prevent such mishaps in near future.
P5. Justification of the legal measures that are being taken into the above cases.
The business laws are being taken into consideration is meant to carry the operations at
the organisations or the work place in an effective and efficient manner. Proper justification is
being needed for the legal measures that are taken above.
In the first case, David was recruited in a finance company, Larson Finance Limited as an
on-roll employee. During recruitment, he was made to sign a contract which includes the clause
like that if he is found engaged in any sort of the unlawful activity, he will be immediately
terminated, without any prior notice (Mann and Roberts, 2015). One day, one of his fellow
employee found him in the data room, when investigated, it was found that David was trying to
steal the personal information about the company's client's. As this is an unlawful offence,
Larson Financial Limited is liable to terminate David on the immediate basis, without any prior
notice of termination. As David had violated the contract law by getting engaged into the
unlawful activity of data stealing, he is a defaulter and thus, the company doesn't require him to
pay his salary or other sort of dues. The data safety is very crucial and important for the company
and failing to it may affect the overall goodwill and profitability of the company.
In the second case, Mr. Copper owns a retail store at the country side. Lily is a sales
person at the retail store. When the retail store caught fire, Lily got trapped in the store. Although

she was saved, she sustained severe burns. In this case, Mr Cooper, the owner of the retail store
is liable to pay the proper compensation to Lily (Miller, 2015). Besides this, he is liable to bear
all the expense of the medical treatment of Lily as under the Safety of Employee at the
Workplace Act, he failed to maintain the safety standards to prevent the fire, which caused Lily
to get injured very seriously. Thus, in this case he should provide the legal compensation to Lily
and adopt effective safety measures in order to prevent the reoccurring of such incidents in near
future.
TASK 4
LO4
P6. Recommend solutions based on country's legal system.
In UK, other than the legal system of the UK, the citizens or the people can go for the
Alternative Dispute Resolution process (ADR). It is a process where the people or the
concerning parties, seeking the justice or legal solution of any sort of dispute without going to
the court of Law (Orlov, 2016). It includes the various processes that are being taken into the
consideration by the parties to get the proper solution of the disputes between the concerning
parties as it is time-saving and quite economic. The ADR is very necessary to held the
management of the issues if the concerning parties don't want any sort of the legal actions in
order to save time and money. Various approaches are being considered under ADR such as:
 Arbitration: It is a ADR process which includes the effective use of the third party
known as the 'Arbitrator', who is a person who hears the arguments from both the sides
and sees the evidences and based on the outcome, provides the solution that has to be
acceptable to both the concerning parties. In this, if the parties are not agreed to the legal
solution given they can go for the legal trial. The Arbitration is the most popular form of
the Alternative Dispute Resolution method as it is more convenient, less time consuming
and more appropriate and significant to use. Besides this the decision of the Arbitrator is
effective for the resolution of the case and meet the requirement hold by both of the
concerning parties.
 Mediation: Similar to the arbitration to some extent, the mediation process also has a
person in between known as mediator who act as the communication channel for both the

parties. He helps both the parties to resolve the dispute on their own. It is useful in the
case of family dispute, neighbourhood fights etc.
 Negotiation: In this process of ADR, the negotiation is being held among the various
parties that involve in the disputes. The needs or the demands of the parties are either
being accepted or negotiated, in order to get the proper solution to the dispute of any sort
in the business (Robson, 2015). The chances of success in negotiation process is quite
low. The negotiation process helps the company to gain better idea about the exact
requirements or demands and thus makes the company act accordingly.
On a general scale, in the legal system, the Solicitors or the Barristers charge high
amount of money in order to get the solution of the dispute. Many times, it leads to a condition
where the concerning party is unable to pay the fees and thus he is denied the justice from the
law, which is not right. In this case the organisations that work for the ADR such as Citizens
Advise Office (CAO), Neighbourhood centres and legal helpers who will see that the person may
not need to go to the court fort the solution of disputes in a legalised way. They will hear the
arguments or the pleadings from the concerning parties and based on the demand or requirement
of the person, will take the appropriate actions and will suggest the feasible legal methods. These
approaches are quite time-saving and economic to the people who can't afford the expensive
trails at court of law (Twomey, Jennings and Greene, 2016). This will also help to have less load
on the legal system of the country and provide better conditions in the legal structure. Other than
this, the ADR processes will provide the easy resolution of the smaller cases or the disputes. It
will avoid the wastage of the resources by the organisation and will help the company to gain
better idea related to the legal aspects of the company.
Other than this, the alternative legal methods that are been taken into the consideration
are DIY resolution of the issues, ADR processes or out of the court approach to meet the solution
of any issue.
CONCLUSION
Thus, from the report it can be concluded that the business laws are very necessary for
the efficient running and management of the operations in the business firm. The business firm

can adopt various measures to manage the different types of the legalised factors that are being
taken by the company. The importance of the government in the development and
implementation of the laws are being taken into consideration. Various examples depicting the
importance of business laws are being discussed along with the resolution of the dispute using
Alternative Dispute Resolution process and its advantage over the traditional system. In addition
to this, different types of ADR processes and its advantage over the legal procedures for the
resolution of the dispute are also being taken into consideration.
REFERENCES
Books and Journals:
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Bird, R.C., Cahoy, D.R. and Prenkert, J.D. eds., 2014. Law, Business and Human Rights:
Bridging the Gap. Edward Elgar Publishing.
Cheeseman, H.R. and Garvey, J.R., 2014. Business law. Pearson.
Clarkson, K., Miller, R. and Cross, F., 2014. Business Law: Texts and Cases. Nelson Education.
Coffee Jr, J.C., Sale, H. and Henderson, M.T., 2015. Securities regulation: Cases and materials.
Kariyawasam, K. and Low, H.Y., 2014. Teaching Business Law to Non-Law Students,
Culturally and Linguistically Diverse (" CaLD") Students, and Large Classes. Journal of
University Teaching and Learning Practice. 11(2). pp.9.
Lieberman, J. and et.al., 2016. Business law and the legal environment.
Mann, R.A. and Roberts, B.S., 2015. Business law and the regulation of business. Nelson
Education.
Miller, R.L., 2015. Business Law Today, Standard: Text & Summarized Cases. Nelson
Education.
Orlov, V., 2016. Introduction to business law in Russia. Routledge.
Robson, R., 2015. A new look at benefit corporations: Game theory and game
changer. American Business Law Journal. 52(3). pp.501-555.
Twomey, D.P., Jennings, M.M. and Greene, S.M., 2016. Anderson's Business Law and the Legal
Environment, Comprehensive Volume.