Business Law Report: UK Law, Government Role, and Solutions

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This report provides a comprehensive overview of business law, delving into various aspects crucial for understanding the legal framework governing organizations. It begins by exploring the different sources of law, including common law, equity law, judicial precedent, statutory law, and European law, and their significance in the UK legal system. The report then examines specific laws that businesses must comply with, such as those related to recruitment and selection, employment, wages, health and safety, consumer rights, and the Companies Act. It further analyzes the role of the government in making laws, detailing the parliamentary process from the introduction of bills to their enactment, including the stages of law-making. The report also discusses the application of statutory and common law, focusing on statutory interpretation. Finally, it addresses appropriate legal solutions for business scenarios, providing justifications based on different legislative systems and their impact on business operations. This report, a valuable resource from Desklib, offers students a detailed understanding of business law principles and their practical applications.
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Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1) Different sources of laws and laws that are complied by firms............................................1
P2) Role of government in making law and application of statutory and common law.............3
TASK2.............................................................................................................................................7
P3) Impact of law on business operations...................................................................................7
TASK3.............................................................................................................................................9
P4) Appropriate legal solutions for Sunset Ltd..........................................................................9
P5) Justification for use of legal solutions................................................................................10
TASK4...........................................................................................................................................11
P6) Legal solutions based on different legislative system........................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business law inculcates the majority of laws that manage how to shape and maintain an
organisation. This incorporates rules and norms that oversee how to begin, purchase, control and
close activities of a company . This build up guidelines that all organizations must follow for its
smooth and effective functioning. This act is introduced so that no fraudulent activities can take
place and to prevent company as well as all the stakeholders from any kind of hardship.
All business are indulged in various sorts of exercises (Awrey, 2010). Firm performs
distinctive practices like merger, acquisitions, offer of products. Purchasing raw goods,
converting them into finished products, services that it avails to customers all these must be
controlled by some law that gets legitimization activities of association. Administration of UK
nation has formed different laws with a specific end goal to execute a lawful and moral practices
in every condition. These all dependably helps in directing and close checking of unlawful
activity by keeping in mind the ultimate objectives to attain more benefit. There are many laws
that are executed by
government of UK and Statutory group of nation to guarantee equity to casualty of fraud. This
assignment will help in achieving several aspect related to business law.
TASK1
P1) Different sources of laws and laws that are complied by firms.
Law is a very important aspect which has numerous of rules and regulations that are
made to control and govern activities of surrounding, which includes society, administration and
many more. As to avail justice and righteousness to the customers and general public against
various criminal and fraudulent acts (Bartlett, Rhode and Grossman, 2016).
Legal system of any nation relies on upon its historical study and present improvement rate of
any state. Legitimate arrangement of UK involves 3 stems as per distinctive land territories.
English law bargains in England and Wales, Scott laws managed in Scotland while Northern
Ireland laws are followed in Ireland.
Common Law
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Common law is a kind of decisions which is dealing with day to day situations, this
allows a judge to take several decision concerning about past cases and situations. This helps in
leading to controversies which are unanticipated (Burk and McGowan, 2010).
Equity Law
This law are characterized when legitimate avocation and lawful cures are insufficient.
This is started frame situation when a man is removed out from hos possess arrive by equipped
individual. This in alleviation to the agony by enrolment and permitting them utilize his own
particular land.
Judicial Precedent
These are the court choices and choice of point of reference with a specific end goal to
roll out improvements in laws for future law making through sourcing of old laws and act. This
aides in detailing of Case law and customary law
Statutory Law
Legislation are the laws that are defined by governing body. The UK assembly is
individual from parliament. These are the statutory laws that are characterized by a ling
procedure of level headed discussion and discourse in both place of normal and place of Lords
and last endorsement from Monarch (Drahozal, 2011).
European Law
It is a system which is generally operates in European union and is mostly applicable upon them.
As a situation of coal and steel community took place after 2nd world war, from this law has
been generated to safeguard general public and to protect their will for any particular thing.
Complying of laws in organisation
Laws regarding recruitment and selection- There are several legislation that are made for
employees so that they does not face any kind of problem while working in an
organisation. The equality Act 2010, this is one of the act that are introduces so that to
avail equal opportunities to each and every employee of a firm. Nationality Act 2006, this
is an act which was drawn by government for employees who are working in UK and
belongs to another nation, this will help them to attain right as to work in any
organisation of United Kingdom. Data protection Act 1998, is an act which emerged so
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as to protect and preserve all the data that are related to employees of firm, it is very
essential to safeguard them.
Laws related to employment- Employment rights Act 1996, this act is very helpful for the
employees and all human resources of an organisation as because this helps in giving
them the right that a manpower actually needs (Eidenmüller, 2013). Laws regarding
wages and salary comes under the national minimum wage Act 1998, where all are
getting the correct amount of pay that has to be availed to employees of a firm which is
must to be performed by every company.
Health and safety- As employees are working in an organisation, it is very necessary for
the top level management of a company to take in consideration that health and safety is
one of the major element that has to be planned in very effective manner. Safety
precautions and several planning regarding this must be done, as Health and safety Act
1974 defines how and in what all manner employees should be safeguard.
Consumer rights- Consumers is a one who avails services and products of a company,
what all they are using must not be harmful and should lie in legal aspect. Consumers are
having many rights that they can use if any wrong will take place. If they feel that
products are not appropriate as according to their paid money then they have right to
appeal in court for their justice.
Companies act- This is the law which is drawn for those who are willing to start their
own business, it is very necessary for an organisation to register itself in companies act,
where MOA (Memorandum of association), AOA (Article of association) are made
where all the activities and responsibilities are very well defined.
P2) Role of government in making law and application of statutory and common law
Government of nation really plays an important role in formulation of laws and
regulation as it has to seek each and every area where justice can be availed to the public of the
nation (Granovetter, 2010). There are 3 sections where parliament for UK can be bifurcated they
are House of commons, House of Loads and Monarchy. In first two, general issues and problems
are discussed here and solutions are made so as to avail justice and after that bills and drafts are
prepared which are appealed in the Monarchy. There are several functions which are performed
by parliament so as to contribute itself in making laws and legislations, they are as follows-
1. Check and examine the choice of government identified with specific issue or issue.
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2. Suggesting and making suitable improvements in enactment of nation on the off chance
that it is required with time.
3. Talk about vital issues and issue of day and attempt to discover new answers for resolve
issue.
4. Keep beware of government tax collection and different procedures and endorse them.
5. Parliament of nation make diverse law and order them and control them in nation.
6. Helps in detailing different arrangement alongside locale court of nation.7. Give a lawful answers for specific misrepresentation or issue confronted by business
association, customer or other gathering.
Process of making law:-
1. Issue or problem emerges on government's agenda- At the first stage with help of general
election government agenda is been informed (Hiller, 2013). Here bills are introduced by
nations parliament, which includes various problems and issues that are very clearly
defined here.
2. Ideas for addressing issues are considered- In this stage, several ideas and views are
introduced so that solutions can be drawn for different problems. Numerous remedies are
provided and suggested by members of the house, which will assist to overcome all
situations properly.
3. Interested people and groups are consulted- All those people who are having link with
issue will be indulged in availing outline and also they use to describe each and every
problem that is been faced by all. The house is developing many papers for this such are
as follows-
Green paper- This is a paper which is used as a first and foremost outline of idea and
thoughts. This is very essential as because it is a framework of several problems and
remedies that are needed to overcome them as when any law is enacted to it.
White paper- It is a paper which is been used as a guide which assist in informing
informations regarding very complex issues. It basically carries all the intension that
government have towards a particular situation and problem (Johnson, 2012). This must
be very positively considered by parliament at the time of passing he bill.
4. Acceptance of cabinet minister- This is an aspect where cabinet minister have to accept
the proposal for further process. Here several topics are discussed mostly the merit part of
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it so that government minister will get influenced with its positivity and which ultimately
lead in proposal acceptance (Jones and Sufrin, 2016).
5. Bills are made by proposal- As cabinet minister accept the proposal then bill is made
with that. Bill which is propounded indulges various problems and its solutions that must
be considered by organisation as to avoid misconduct or different activities and
operations.
6. Consideration of parliament and bill scrutinising- Governments are having the right to
introduce bill , as a draft to convert into a bill it is very necessary to get approval of
members of house and MP's so bills are moved through both houses after their approval
bill can be passed.
7. Stages of parliamentary- There are different stages that are included in transformation of
a bill into a law they are as follows-
First reading- In this first stage the title of the bill is been read and is availed to every
member of the parliament.
Second reading- Here discussion is done regarding the topic of bill and at last MP”s can
vote in favour and against then it is been passed to next stage for further process.
Committee stages- Now bill is passed to member of committees, amendments are
introduced and votes are drawn, every members are contributing their valuable time and
votes for this.
Report stages- At this step changes are made to bill and then presented to all members of
parliament then they will suggest more and those who were not present in the previous
session can recommend for any more changes(Kadish, Schulhofer and Barkow, 2016).
Third reading- This is the stage where final hearing and debate is done and amendments
are more introduced.
Bill approved by chamber is considered by all- Here the members will accept or refuse
the proposal, but if it get accepted by chambers then it is further processed for making of
bill as a law. The Monarch's 'assent' turns a bill into an Act- With every one's approval bill is accepted
by Royal Assent- monarch. By this a bill that was proposed will be turn into a law that
has to be then followed so as to resolve any kind of issue takes place if such situation
arises that lies under this law.
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Application of statutory and common law
1. Statutory interpretation- It is the method through which the interpretation are made by
court and laws are implemented (Kaplan, Weisberg and Binder, 2014.). It is also very
necessary for the judge to take proper concern about every member of parliament so that
decisions are made according to that and effectively result can be attained.
2. Aids used by judge to interpret an act- There are number of aiding activity that are
performed by a judge so that they can be able to interpret an act in appropriate and
effective manner. Some of them are as follows-
Judicial precedent- The precedents are very important that is why judge considers them
prior as because their previous decisions help magistrate to take proper decisions with
support of earlier decisions.
Oxford dictionary- Dictionary is very important aspect as because it will help in guiding
the judge to take several actions for certain problems. Legal dictionary is also available
which can be used by judge as because it assist in knowing what exactly action has to be
taken.
Legislation- There are number of laws that are useful as it provide a proper guidance for
interpreting. It gives a straight forward guidance that how to interpret an act or law and
how others are performing it.
3. Rules of interpretation- These are the rules which helps to interpret a legislative act and
bills which were a proposal of all the members of the parliament, the bill are formulated
with several amendments and then comparison takes place and at last final interpretation
completes. There are some steps that has to be followed-
Literal rule- This rule defines that interpretation of statutes has to be done in simple
and clear language. This basically helps to tell what actually the law is instead of
explaining facts of and meaning of law (Leung and et. al, 2013).
Golden rule- It is a rule which is relates with literal rule but to some extent it is get
neglected as its consequences are very different and quite serious to handle more.
Without any kind of statutory interpretation decisions are made by the judge with
support of literal meaning
Mischief rule- These are rules that are used to know what are the intentions of the
parliament when bills are to be transformed to law.
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TASK2
P3) Impact of law on business operations.
There are various number of laws which are formulate by government so that all organisations
will lead to execute their operations in an significant and appropriate manner. The main reason
behind using all these laws is just to protect the rights of shareholders as well as customers or
employees of a firm ( Luhrs, 2012). As according to current scenario Sunrise Retailers they want
to convert their company into private limited and for this they have to follow certain rules and
regulations under which they can change their working operations and expand their business so
that their profit margin also get increase. Along with that expansion they also want top recruit 30
more employees so that smoothness can be maintained in their working and target achievement
become easy for them. Also they have to maintain a proper relation with their customers under
which they have to fulfil all essentials of valid contract which is must for them. Hence in this
relation management first have to taken into account three major laws which are: company law,
employment law and contract law. All these three regulations have some positive and negative
impact on business which an organisation have to consider before taking any particular decision.
1. Company law: Under the Revised company law, 2006, a company should have to take a
statutory regulation under this law or any of the previous one. At first promoter should have to
get aware about that registration of a firm is must. In this relation company suggest 7 name to
secretary and out of them one get chosen by him. In this concern there are two major associations
which authority have to formulate.
A) Memorandum of Association: It is a legal document which is prepared by promoter in which
all fundamental conditions of a company execution are involved. It has to be filled with Registrar
of company at the time of company incorporation (Mason and Stephenson, 2015). It reflects a
positive impact upon on company because all necessary details which are related with
shareholders, creditors are written in this. Hence it become easy for a company to make their
shareholders understand about all norms of their firm.
B) Article of association: Another major document which should have to filled by Registrar of a
company in which all duties and responsibility of a firm are mentioned. All the values and things
which signifies about execution and run of business are incorporated in this article. It also
provides a positive reflection hence, all duties of respected members are defined properly with
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help of this. So working become easy and appropriate for an organisation and all work get done
according to particular manner.
2. Employment law: Another major statutory which is formed with a purpose to maintain a
balance at workplace (McGill, 2010). A manager should have to get understand that all workers
are not similar and sometimes get vary according to their skills and abilities. Hence they should
have to assign duties according to their nature. Also a company have to remunerate them
according to their capabilities. This reduce chances of getting involved in any kind of illegal
activity. There are various laws which incorporate by government with a purpose to maintain
proper balance at workplace. All these have some major impact which are as follow:
A) Equality act, 2010: As per this act revised act it get identify that it is a major duty of
management to maintain a proper balance between all employees in at organisation. Some of the
times many employees file a complaint that there is some sort of discrimination is taking place.
This can be in between any of a worker whether in between male and female staff or any other
else. Hence to stop such type of criminal offense government formulate this law and
management should have to consider this before recruiting any person or individual in their
company.
B) Health and safety act, 1974: Another major regulatory boundary which is formed by
government at workplace is health and safety. From starting this is consider as one of a major
issue which affect health of workers which work at industries. Hence management should have
to get aware about this law and if they failed in do so then it leads to take that company directly
at court room and their image get affected.
3. Contract law: Sunrise limited wants to recruit some more and new employees for their
expansion of business (Mnookin and Weisberg, 2014). In this relation they first have to
formulate a contract between each of their employees. In this concern they initially have to fulfil
all formalities of contract. For this company have to include all fair and appropriate terms into
contract and first they have to present it in front of court. If court thinks that all elements are
questionable then it comed under unfair contract act, 1977.
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TASK3
P4) Appropriate legal solutions for Sunset Ltd.
Sunset Ltd is a company which is dealing in cell phones in London, UK from past 10
years. Its one branch in Whitechapel is facing the issues and are seen to be loosing its shares in
market for last 3 years , it is been seen by financial statement of the firm. Company's director is
now willing to shut down that branch as it is not able to loose its market shares any more
(Nissenbaum, 2011). So now it want to dismiss its activities from that branch, hence reasons are
required so that action can be taken, following dismissal practice can be done by firm to
terminates drawn contract-
Fair dismissal- It describes, employers has to very specifically explain the reason for the
dismissal and if there is any principle reason that also has to be included by them, there
might be some reasons such as- Employees lacking in their qualification, conducts of
employees and redundant job of the employees.
Constructive dismissal- This is a situation which takes place when an employees of an
organisation resigns his/her profile just because an employer have breached the
employment contract such as cutting down wages as against drawn contract,
demotivation, unfairly increasing workload of them.
Wrongful dismissal- This is a circumstance where a term of a contract get broken, for
instance an employees is dismissed with out any kind of prior notice. This type of
dismissal takes mostly in the firm, it is a decision of an offerer means an employer than
an employee.
As per the situation Sunset Ltd is going to plan fair dismissal method as because company is not
able to carry out its operations and activities in effective manner and every year they are facing
great loss which is not bearable any more (Parker and Nielsen, 2011). Hence fair dismissal is
best suitable process that it can adapt, where redundancy can be performed.
Redundancy
It is a technique of dismissing employees from their jobs, this aspect is adopted by
company to reduce number of manpower due to low productivity and lose are faced in high
ratios entire turnover gets down then, such steps are taken place.
Several right that employees will get at the time of redundancy, they are as below-:
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