International Business and Law

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Business Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1................................................................................................................................................4
P2................................................................................................................................................5
TASK 2............................................................................................................................................6
P3................................................................................................................................................6
TASK 3............................................................................................................................................9
P4................................................................................................................................................9
P5..............................................................................................................................................11
TASK 4..........................................................................................................................................11
P6..............................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
It is a very well-known fact that half of the economy of a country has been carried out by
business. It is very essential for all the business people to learn different important aspect of
business to carry out the function of business. A business organisation deal with number of
things which enables the work of an organisation to run smoothly. Government has been playing
an important role in assessing the work of a business organisation. It is possible due to the
various initiatives and efforts of government that various new policies have been introduced for
business organisation. The main idea of government to promote and introduce such policies is to
ensure that the functioning going on in a business organisation shall be in a particular form and
shall be carried out without reaching any legal liability.
One of the most important initiatives which has been taken by the government is to
introduce business law. The term business law, according to various rules and regulation is the
law which govern with all the activities within business. For an example when a company wants
to establish legally, it shall be governed by company law. The rules and regulation which have
been mentioned in company law, guide to establish a company and the activities which shall be
carried out in a company like how many members should be there, how many meetings shall be
conducted in a year. The company law also raise legal obligation to the members of the
company. If any company breach law which have been mentioned in company law then a legal
liability shall fall onto the company (Miller, 2016). Besides that business law also include the
norms regarding contract mentioned in contract of law. When a business organisation has been
set up, it is bit obvious that company is going to make contract with other companies, in that case
contract law guide a business organisation that how a contract shall be made. What are the
important essential for the formation of contract.
Business law also states about the role which has to be played by the members of a
company. A business organisation is an association of different members where the member has
different function to play. Business law helps the stakeholders of the company to understand
what the lawful functions are which is to be performed by the stakeholders. It is very important
to know the value and application of business law (Romano, 2005). A law in business govern
with civil liability of a person. It has explained various civil wrong which, when committed by
any member of the company then shall be held liable on breaching the norm. Business law play a

role of Ace in the company. Performing every action legally is the need of present time and that
is why the government has taken an initiative to introduce business law in the market which shall
deal with all the activities to be carried out in a business with lawful object and a lawful nature
(Balotti and Finkelstein, 2008).
TASK 1
P1
Following are the different sources of law that is most suitable for organizations in order
to comply with the same-
 Legislations/Statutes- It is considered as the most reliable source of law that is regulated
by the UK parliament. Legislations are considered as the direct source that presents all
the aspects of law. It involves Contract law, Companies Act 2006, Health and Safety At
Workplace Act and Insurance Act etc (Baylis, Smith and Owens, 2013).
 Common law or the judicial precedents- Such type of law has been established upon
the basis of different principles that are enumerated within different cases undertaken in
the English legal system. For instance, Law of Tort is considered as the main example of
judicial precedents in UK (Beamish, 2013).
 European Union Law- Such law is prevailing in EU and it is also applicable upon the
English law system. Different aspects of law are originated under the European Union
law. However, English legal system has also been derived from the EU regulations
(Casson, 2013).
It can be evaluated that the businesses are required to comply with the different laws and
regulations mentioned in the English Legal System. There are certain primary laws that governs
the operations of the firm such as-
 Company laws- Herein, company law regulates and carry out the activities of the firm. It
involves different rules and regulations that needs to be followed by the business entity.
Company law is considered as the medium through which businesses are operated and
regulated as per the market forces (Cavusgil and et. al., 2014). Thus, it make sure that all
the firms are running its operations within the legal boundaries in order to carry out best
working conditions.

 Contract law- In this the law is governed through carrying out the business agreements
that are entered among different parties so that business operations can be carried out.
Contract law is considered as the contract in which an agreement shall bind different
parties to come together and execute the contract (Chen, 2014).
 Employment law- Employment law is essential in order to employ the personnel as per
the need and carry out the business operations. Application of such law helps in
regulating the relation between employee and employer. It also bind the employer for
providing an healthy and secured workplace to workers in order to safeguard them from
any danger (Plimpton, 2011).
P2
Government plays a major role in formulating law and statutory and common law are
effectively applied in the justice courts. However, the process of making rules and regulations in
UK involves different stages as well as number of participants. Government is involved only at
the preliminary stage of the whole process within which its involvement is restricted in order to
make proposal (Pratten and Carlier, 2010). Government makes the proposal with the motive to
overcome the issues faced within society for a long time period in order to attain best results.
However, such proposals are formed by the government after studying and analysing different
aspects of the problems that need to introduce the legislation in order to form a better society.
The proposals formed by government are terms as Policy and Procedures and introduced by the
ministers within Parliament in the form of Bills. With the help of such Bills certain legislation
and laws are changed that brings suitable action within society and help individuals to carry out
their operations in an effective way (Regan, 2012).
Another crucial role played by the government is delegation of power. In which
government delegates the authority to another persons so that legal actions can be taken
appropriately. However, the acts passed by the government in the form of legislation impacts the
ministers with a delegated power to issue orders, laws and legislation so that specific results can
be attained (Schaffer, Agusti and Dhooge, 2014). This, in turn results into an effective part of
governing the nation and undertaking best results. Th legislation and statutes of the nation as
well as the Common Law assesses that the simultaneous and parallel application within the court
of justice for identifying the rights and obligations of the parties. However, legislations or
statutes are considered as the primary law of the nation that is developed by the Parliament in

order to regulate the society. Government also helps in providing provisions that govern the
specific actions so that legal system can be applied in an effective way. Through analysing any
case, it can be derived that the parties are making decisions on the basis of different legal
parameters so that it does not affect their operations (Williams, 2012). By interpreting different
legal provisions it can be assessed that lawfulness of the act are verified in regard to make the
person liable for the specific action.
Apart from these provisions, there are several other principles which has been applied in
order to determine the actions of liability. It has been established within different case laws to
identify the legality of the fact. Likewise, the principle of Negligence was laid down by the court
of law in the case of Donoghue v Stevenson [1932] and still it holds good action in the court.
While, breach of the contract would be liable to call for the specific provision of the Contract
Act. Therefore, both these actions are considered as the sources of law upon which legality of the
actions are being carried out (Quer, Claver and Rienda, 2012).
TASK 2
P3
To
ABC
Date- 1-11-2016
Subject- Identifying the potential impact of the law on a business.
1)
It is advised to Jill and Ben that they need to undertake different steps in order to incorporate
and name their fashion design company. It is discussed underneath-
 Registration needs to be done within Companies Act 2006 so that appropriate provisions
needs to be applied (Ramasamy, Yeung and Laforet, 2012).
 Name of the company should be given along with address of the location where it is
going to execute its operations.
 Company needs to possess at least 1 director and 1 shareholder (Ryngaert, 2015).
 Memorandum of Capital and Statement of Capital needs to be formed and attached to
the application for incorporating the business operations.
 Article of Association needs to be developed and attached in order to formulate the

company.
 All the relevant information in relation to individual needs to be provided so that at the
time of formation no issues can be arise (Selaya and Sunesen, 2012).
 Also, an SIC code needs to be developed that helps in identifying the functions of the
business.
Once, all these steps are being followed by the individual in order to formulate the business
name within Companies House, business is being registered and given the 'Certificate of
Incorporation'. Through obtaining the certificate of incorporation, company of Jane and Bill is
legally registered in the Companies House under the name of Private Limited Company
(Wagner, 2012). Moreover, at the time of determining the name of the company, Jane and Bill
need to keep following mandates in their minds such as-
 The name decided for the company shall be unique, it means that it could not be similar
or match with any of the names of existing companies (Boldrin and Levine, 2012).
 The end of the company's name should be either with 'limited' or 'Ltd'.
 Also, the names shall not consist of any barred characters, symbols or punctuation
marks.
 Name of the company is also not allowed to establish a connection with any of the
public authorities ruling in the country (Cornish, 2012).
 Name should also not include any sensitive terms, if included it requires a special
permission from the Companies House.
 The term should also not imply any offensive meaning or affect any particular party or
religion (Gill, 2015).
 Name of the company could not be longer than 60 characters.
 Also, company name should not start with 'www'.
2)
Bianca is required to take help from employment laws made that essentially governs
Employment Contract, Discrimination activities, Unfair Trade Dismissals etc. As per the case,
Bianca has been instructed by Jane and Bill regarding discriminating customers on the basis of
country. It is all because Jill had a very bad experience in Spain at the time of spending her
holidays with friends (Gillies, 201). Therefore, Jill instructed Bianca that Spanish customers
should not be entertained any more. The basis of such discrimination among Spanish customers

is not valid and thus such decision affects the morale of Bianca. As per the Employment Law,
Biance being an employee possess certain rights in order to protest against such rules made by
Jill and Ben and do not follow the instructions given by them. Furthermore, if she is not
satisfied with the manner of working then she possess the right to resign from the job. At this
point of time, Employment Contract is required to be verified and thus Bianca is bound by each
and every term of the contract. Also, there is a clear provision pertaining to termination of
services shall be adhered by Bianca (Giordano and et. al., 2014). Moreover, it is essential for
her to identify the employment terms so that it could not affect her in any manner. There is no
direct implications of the employment laws within the current situation.
3)
Through evaluating the case, it can be assessed that Ben and Jill enters into the contract with
Martin in order to supply black t-shirt within a week for his son's birthday. It was agreed by Ben
and Jill that delivery would be made in a week's time period and on time. But after a week when
Martin did not received the order he contacted Ben and Jill and then they conveyed that due to
ill health of Ben the delivery was delayed by 2 days. Further, the delivery so made was not
according to the contract as Martin ordered for black t-shirt but received pink t-shirt. Now he
could not use the same as the dress code for his son's birthday has been already decided which
is black t-shirt (Murray, 2013).
Through analysing the above facts, it can be considered that time is the essence of any contract
and it is essential for Bill and Jane to understand the same while entering into the contract with
Martin. Thus, the late delivery of t-shirts by 2 days makes Ben and Jill liable under the
Consumers Rights Act 2015. As per the section 19, it can be considered that consumers possess
the right to reject the agreement made among both the parties (Sen, 2010). While, as per the 20,
22 and 24 sections it has been noticed that goods which are not in the accordance to the
description given or that has not been delivered on time could be refused to accept by the party.
Furthermore, for section 23 it assesses that the right to repair or replacement that can also be
exercised by the consumer in the event of any breach from the end of seller. Additionally,
section 19(11) provides for remedies to claim damages, seeking particular performance or
implementation or termination of agreement (Sun, 2010).
In accordance to the above provisions, it can be assessed that fashion design company of Bill
and Jane has breach the section 10 and 11 because the goods supplied are not fit for the specific

purpose that was informed to the sellers. Martin specifically asks for black colour t-shirt while
pink colour t-shirt was supplied to him (Baylis, Smith and Owens, 2013). Thus, it breaches the
contract and affects the Consumer Rights Act 2015. Also, specific time duration was mentioned
of 1 week that has been extended to another 2 days by bill and Jane. Thus, in such
circumstances, section 19 of the act empowers Martin to revoke the agreement and also claim
damages for the same. Also, it has been noticed that in the event no time period has been
mentioned, while only a reasonability of the time has been assessed for delivery of the products.
Thus, here clear breach of the specific terms has been assessed that makes the seller completely
liable under the Consumer Rights Act 2015 (Chen, 2014).
Thanking You
XYZ
TASK 3
P4
To: Big House Limited
From: Junior legal executive
Date: 1-11-16
Subject: Suggesting appropriate solutions to the business problems.
i)
It can be evaluated from the given case, Fabian fails to carry out the task of transforming the old
restaurant into a 3 bedroom house because of his illness. Fabian enters into the contract with
Big House Ltd for carrying out the work against a payment of 15% of the sale price of the
house without carrying out usual costings of the job. Because he felt ill, renovation work has
not been carried out (Regan, 2012).
It can be determined from the facts that consideration determined for fulfilment of the contract
was 15% from the sale price. Thus, completing the project and selling is considered as an
essential component but unfortunately it could not be completed by Fabian. However, he could
not accomplish the work and the Big House Ltd could not be able to sell. Due to such facts, the
contract has been terminated in terms of remuneration by one party in order to perform the
contract. Common Law consider it as a justified reason for terminating the agreement (Pratten

and Carlier, 2010). While, at the time of rejection of the contract, the aggrieved party is required
to select between the choices of either completely terminating the agreement or confirming the
contract by forcing the other party to make a specific performance of the obligation of contract.
Considering the fact that Fabian has fallen ill and would not be able to perform the contract of
Big House Ltd. Therefore, the contract made has been terminated under the contract of law and
also not make any payments for the part performance. Additionally, business also entitled to
claim damages for the disruption in order to carry out the part performance of the agreement
(Ramasamy, Yeung and Laforet, 2012).
ii)
It has been identified that Big House Ltd has become insolvent as they are in lack of assets in
order to cater to all the current liabilities of their business. Further, in order to pursue to the
creditor's petition, Lauren has been appointed as a liquidator. Also, it has been identified that
Donald Bank owes an amount of £250,000 and in relation to the same, a fixed charge has been
created on the premises of Big House Ltd (Selaya and Sunesen, 2012). Additionally, Lauren has
incurred certain expenses while carrying out the process of liquidation which values of £10,000.
Here, the insolvency Act, 1986 and also such rules are applicable in order to obtain desired
results.
As per this act, credits shall be individuals or businesses who have the rights to receive the
payments from the insolvent firm in accordance to the act as on the date of declaration of
insolvency. Different assets are included such as cash, land, buildings etc. are considered for
payment of claims of creditors. Liquidator is being appointed in order to distribute the money
on the basis of Principle of Distribution (Wagner, 2012). However, it requires the distribution to
be done on the basis of proportion so that each and every creditor being provided the required
amount. Once such claims are settled than expenses incurred by the insolvent estate needs to be
paid off. There are different parties whose claim of payment needs to be settled such as holders
of floating charges, unsecured creditors as well as shareholders. Thus, it can be evaluated from
the case that Donald Bank possess the claim on the assets of Big House Ltd upon a proportion
basis. On such basis, expenses incurred by Lauren are required to be satisfied (Cornish, 2012).

P5
It can be evaluated that Fabian is not eligible for any payments of the work he has carried
out as he has not renovate the property due to his illness. Also, he has not calculated any cost
while negotiated to take 15% of the sale price gained for property that is not achieved because of
non performance of action by Fabian (Gillies, 2014). Thus, the Big House Ltd is required to
terminate the contract as Fabian is not eligible to perform the promise made within the contract.
Additionally, the disruption of the normal lives around the property by affecting the surrounding
road to the property was covered with rubble. Further, Big House Ltd is liable to claim damages
for the financial and other loss caused to he party and thus results can be attained.
Further, appropriate legal solutions needs to be applied in order to make relevant
payments and thus uses The Insolvency Rules 1986 that provides for priority of payment of costs
and expenses incurred by the party. In relevance to the legal rules, principle of distribution needs
to be carried out as well as provide appropriate actions in relation to the expenses incurred by
Lauren i.e. £10,000. Therefore, it is essential to meet the claims with fixed or preferential
charges by applying appropriate legal solutions and satisfying the needs (Giordano and et. al.,
2014).
TASK 4
P6
To,
Jackson Ltd
Date- 1-11-2016
Subject- Recommending appropriate legal solutions based upon alternative legal advice
provided.
i)
Through evaluating the case, it can be reflected that Jackson Ltd and DM Motors entered into
an agreement that includes an arbitral clause. Arbitration is the clause which states that at the
time of any conflict situation, both the parties will solve the case with the help of arbitration
that is outside the court (Murray, 2013). While, in such dispute event both the parties are
required to undergo an arbitrator and resolve the issue whether going to the court of law. As per
the case of Hyundai Engineering & Construction Co. Ltd and Another (20050, the courts have

suggested that while including an arbitral clause in the agreement, parties are not liable to
approach to the court for justice. Court also mandates them to take recourse with an arbitration
tribunal. The contract made with an arbitral clause are not liable to brought a case in the UK
courts for breach of contract (Sun, 2010).
In accordance to the contract it has been assessed that both the parties are required to undertake
an arbitral clause and does not affect the companies. Therefore, Jackson Ltd can argue in the
UK court in which DM Motors has filed a case for breach of contract that the said case involves
arbitral clause. Moreover, the rightful form of resolving the dispute among the parties is that ofi
involving arbitration and DM Motors should by directed by the UK court to carry out the case
under the arbitration law (Baylis, Smith and Owens, 2013).
ii)
Arbitration is considered as the medium of resolving disputes outside the court of law. The
parties that undergo a arbitral clause within their agreement are not liable to enter into the courts
for any breach of contract (Beamish, 2013). Following are the differences between institutional
and ad hoc basis-
Institutional Arbitration Ad hoc Arbitration
 It is considered as one of the way
through which a specialised institution
intervenes and takes on the role of
administrating the process of
arbitration (Casson, 2013). Here, it is
stated that every institution possess its
own set of rules that provides a
framework for arbitration and carry out
the process.
 While, such arbitration is not
administered by an institution such as
ICC, LCIA or DIFC etc. While, the
parties are required to determine all the
aspects of arbitration themselves. For
instance, the number of arbitrators are
appointed, those arbitrators are
required to conduct the arbitration
(Williams, 2012).
 It is considered as systematic with the
help of pre-established institution
norms.
 Ad hoc arbitration assesses that
because of lack of cooperation among
parties it may lead to unsystematic
process (Ryngaert, 2015). However, if
parties desire and cooperate with each

other it is considered as more flexible
and fast method.
 It can be attached with high fees and
unrealistic time schedules.
 Moreover, it is another excellent
incentive delivered in absence of
administrative fees (Wagner, 2012).
CONCLUSION
It can be articulated from the report that The English Legal System has been primarily
derived from legislations and statutes and thus it is essential for businesses to undertake such
laws in order to carry out the operations. Moreover, EU and Common Law are applied on the
parallel basis so that best results can be attained. Different legislations such as Contract Act,
Employment Laws and Companies Act are applied in regard to business units and provide
specific requirements for complying the rules and regulations while registering the name of the
company. Later, the Consumers Rights Act 2015 has also been applied that establishes particular
provisions for safeguarding and protecting the rights of person and carry out the contract.

REFERENCES
Miller, R.L., 2016. Business Law Today, Comprehensive. Cengage learning.
Balotti, R.F. and Finkelstein, J.A., 2008. Delaware Law of Corporations and Business
Organizations: Statutory Deskbook 2009 (Vol. 4). Aspen Publishers Online.
Romano, R., 2005. After the Revolution in Corporate Law. Yale Law & Economics Research
Paper.

REFERENCES
Books and Journals
Baylis, J., Smith, S. and Owens, P., 2013. The globalization of world politics: an introduction to
international relations. Oxford University Press.
Beamish, P., 2013. Multinational Joint Ventures in Developing Countries (RLE International
Business). Routledge.
Boldrin, M. and Levine, D. 2012. The case against intellectual property.American Economic
Review, pp. 209-212.
Casson, M., 2013. The Growth of International Business (RLE International Business).
Routledge.
Cavusgil, S.T. and et. al., 2014. International business. Pearson Australia.
Chen, L.C., 2014. An introduction to contemporary international law: a policy-oriented
perspective. Oxford University Press.
Cornish, G., 2012. Dictionary of Intellectual Property Law. Reference Reviews. 26(2). pp.13 –
14.
Gill, J. 2015. Business Law for the Entrepreneur. Arima Publishing.
Gillies, P., 2014. Business Law. Federation Press.
Giordano, A. and et. al., 2014. Chronic Total Occlusion of the Innominate Trunk: Successful
Recanalization with Retrograde Technique and Dedicated Devices Borrowed from
Percutaneous Coronary Interventions. Journal of Cardiology and Therapeutics. 2(1). pp. 1-
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Murray, J., 2013. Defending Patagonia: Mergers & Acquisitions with Benefit Corporations.
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Plimpton, L., 2011. Business Contracts : Turn Any Business Contract to Your Advantage.
Entrepreneur Press.
Pratten, J. and Carlier, J., 2010. Wine sales in British public houses. International Journal of
Wine Business Research. 22(1). pp.62 – 72.
Quer, D., Claver, E. and Rienda, L., 2012. Political risk, cultural distance, and outward foreign
direct investment: Empirical evidence from large Chinese firms. Asia Pacific journal of
management. 29(4). pp.1089-1104.

Ramasamy, B., Yeung, M. and Laforet, S., 2012. China's outward foreign direct investment:
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Regan, D., 2012. Implications for employers of the abolition of the default retirement age.
Quality in Ageing and Older Adults. 12(2) .pp.121 – 124.
Ryngaert, C., 2015. Jurisdiction in international law. Oxford University Press.
Schaffer, R., Agusti, F. and Dhooge, L., 2014. International business law and its environment.
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Wagner, J., 2012. International trade and firm performance: a survey of empirical studies since
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Williams, O., 2012. Preference for Innominate Terms: The Good, the Bad Bargain and the Ugly.
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Online
Sen, S., 2010. International Trade Theory and Policy: A Review of tghe Literature. [PDF].
Available through: <http://www.levyinstitute.org/pubs/wp_635.pdf>. [Accessed on 1st
November 2016].
Sun, P., 2010. International Trade and its Effects on Economic Growth in China. [PDF].
Available through: <http://ftp.iza.org/dp5151.pdf>. [Accessed on 1st November 2016].