Business Law Essay

This essay examines the principles of business law, analyzing two case studies involving financial difficulties and breach of contract. It provides legal solutions, justifies their appropriateness, and recommends alternative dispute resolution methods.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
Scenario 1.........................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of laws.......................................................................................................1
P2 Role of government in law making and how statutory and common law is applied.............3
TASK 2............................................................................................................................................4
P3 Impact of employment and contract law on business............................................................4
Scenario 2.........................................................................................................................................6
TASK 3............................................................................................................................................6
P4 Appropriate legal solutions for business problems................................................................6
P5 Justification............................................................................................................................7
TASK 4............................................................................................................................................8
P6 Recommendation of legal solution........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law consist with various rules and regulations which can be enacted with
government establishment of nation in order to modify the behaviour of people. Law can be
implemented in the business residence which can govern by authority person of an enterprise that
are also considered as business law. Along with this, business law manages or regulate all
commercialised matters and it can be known as division of national law. This can be deal with
both law whether it is private and public. Commercial law mainly operate and modulate hiring
activities, corporate contracts, sale of consumer products, etc. It will assist in operating certain
ethical behaviour and legal actions in an enterprise which help them in ignoring some illegal and
inappropriate dealing (Bagley and Dauchy, 2011). Each firm follows different legal acts which
may be passed and enacted by nation authorisation. There are various duties of government
while developing law and how statutory or common law is implemented in the court that will
described in this project.
Scenario 1
TASK 1
P1 Different sources of laws
Parliament sovereignty
United kingdom government keep on introducing new legal laws that can be operated and
regulated through speech by Queen at the State Opening of Parliament, mainly in October or
November. Through this, nation people need to understand regarding legal and regulations which
can be passed by legal authorities. This can be determined as Legislature independent as a chief
principle of United kingdom fundamental law. It will provide huge authority and power for legal
government of UK to make or create such type of law (Bagley, 2010). This is one of the most
important section of country constitution.
Legal body of United kingdom
United kingdom of Great Britain is categorised into four parts such as Scotland, England,
Wales and Northern Ireland along with this there are three legal government authorities that
separate court system and legal profession. This includes England and Wales, Scotland and
Northern Ireland. In this section, government passed effective legal policies and laws which are
related to people welfare. Legal law protect from any kind of discrimination and exploitation of
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such individual and also distribute their rights for surviving ethical life. UK parliament is one of
the impactful and this have all powers and can create legal laws for regulations. Parliament is
generally classified into two parts and they are House of commons and House of Lords.
House of Commons – The common can be elected by people and it will consist with
large number of government members (Cheeseman and Garvey, 2014). There are around 650
parliament members and each person will present separate geographic constituency. The
parliament members required to discuss regarding huge issue related to political of current time
period and represents proposal for new laws. They have responsibility to make effective
decisions which are associated with financial billing and so more.
House of Lords – It is another section of parliament and there are around 800 members
where 600 are appointed as Queen that can be recommended by Prime Minister. They have
develop independent form and shape of new laws.
There are various parliament and assembly session of UK country which have more
power to enacted different legal laws that are associated with developing matters, specially
Northern Ireland Assembly, Scottish Parliament and National Assembly.
Law of United Kingdom
This can be categorised into various legal laws whether it is private and public such as
civil or criminal laws. In this, private law is generally dealing with maintaining strong relation
with people and along with different legal rights and powers. In addition to this, they have
regulated and operated several private arrangements, in which there are certain minimum
intervention of country authorities (Crane and Matten, 2016). On the other hand, public law is
mainly determined as state law and their imposed. Civil law have various areas that includes
contractors, land laws, employment, etc. the criminal regulation is mainly concentrate on anti
social acts. In any case, when an individual represented as criminal so that person need to
charged suitable penalty for this act.
Sources of laws
This is the main laws origins that will assist to regulates and operated its region. The
major principle of UK sources of law that are described as follows:
Statues – This is mainly developed by state and local legal authorities and it will consist
with official that are elected by public. It is written legislation of legal government bodies which
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govern the city. Along with this, they have more powers for developing legal laws, prohibit or
command
Case law – Such are judgement that is given by judge or such high government bodies.
Legislation comes with various ideas and thoughts which assist in reducing violence and
discrimination within the community (Czinkota, Ronkainen and Moffett, 2011). For example,
such type of harassment case so it will enhancing day by day and currently government are
taking tough actions towards this.
Judicial decisions – It can come up with essential sources of law. In this, court is mainly
responsible for managing all conflicts or disputes that are coming at the initial time period. The
decision is provided by court, parties are liable for follows such type of decisions.
P2 Role of government in law making and how statutory and common law is applied
Government is playing most important part in framing legislation as they have to design
as well as pass specific bills via general assembly. Legislative bodies include different stages for
making any legislation. House of lords is known as second chamber of parliament of UK. They
play most essential role in creation of rules and regulation. They used to design and reform
legislations. In fact, they also share their responsibility with The House of Common. The major
steps of creation of norms and regulations are discussed below :
First reading : Bill is being formed in initial stage representing certain issues affiliated
with society. Bills are then documented & printed. After that, it is presented among members of
parliament.
Second reading : Herein, discussion goes on the same topic which is covered in bill. The
main motive of doing so to grasp information or perception of candidates. This help in deciding
that idea is appropriate or not. It is then passed to further step when majority of votes come in
favour of bill.
Committee Stage : This is considered as one of the most eminent stage wherein bill is
being critically analysed and observed (Mann and Roberts, 2011). Once again meeting is
arranged by the person existed in committee for giving valid comments and suggestion
associated with that bill. It is to be noted that committee could also take reviews from other
governing body or officers in order to become more clear about idea associated with that bill. If
any modification is required then, members of committee are obligated to report immediately to
legislative assembly or parliament.
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Reporting stage : Herein, report of bill which is being received from committee are send back to
chamber after doing any kind of needed alternation or changes. In addition to this, if any other
candidate still has not provided his perception on similar subject, then he is free to suggest his
thought.
Third reading : The bill is being read among members of parliament even after the
attainment of final suggestion. Then, debates is again started amongst them. The main reason of
debate is that any member may not remain consistent on their words or can take their vote back.
It happen commonly as variations comes in the ideas of employed candidates (Miller, 2015).
They might not agree on suggestion or recommendation of others. At last, when every one give
approval for the suggestions and modifications then bill is passed to next stage.
Royal assent : This is treated as most vital step as different houses got involved here.
The bill is passed to 'The Queen' or 'Governor General' after its approval from 'The House of
Common' and 'the Senate'. This is done for receiving royal assent. Reading of bill is being
carried on by them and consult each other before coming to any conclusion. At last, bill is passed
and become an act or legislation. This comes into action and every one is liable to obey the
same.
Thus, it can be said that government of United Kingdom is participating and attempting a
lot to resolve the issues of entire nation by making various laws. These norms are proved as a
remedy for reducing the current level of corruption and illegal activities that is increasing on
continuous basis.
TASK 2
P3 Impact of employment and contract law on business
There are three friends named Jane, Penny and Marie from one university. After
completion of their graduation they started a organisation JPM publishing. This organisation is
small in nature and successfully trading business activities from few years. The accountants of
organisation advised to them is to covert into public limited organisation for raising large number
of funds in appropriate manner (Nichols, 2012). There are many regulations and legislations
which are required to follow by the organisation in future period of time to run business
operations and accomplish organisational objectives. If such regulations re not fulfilled by the
management of organisation that there are many legal implications which are required to face by
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organisation and this will results in damage of their brand image and negatively effects their
profitability also. The main regulations which are required to follow while conducting business
activities includes health and safety, Equal opportunities and General data protection regulations
etc. (Snyder and Deaux, 2012). The rules which are covered under these regulations are needed
to followed by JPM are defined below:
Health and safety regulations 1974: It is one of the important Act which governs the
rule regarding safety of the employees at work place. This Act is provided by the government of
UK in 1974. The main purpose behind the providence of this Act is to avoid discrimination
between the employees and contractors. This will brings an obligation upon the management of
JPM is to take all adequate safety measures at work place which provides optimum safety to the
employees from any type of risks. In this regard, management is required to provide safety
equipments to the employees such as helmets, gloves etc. to whom working in hazardous
situations. Also, they are required to use signs near the dangerous places to ensure optimum
safety to the health of all employees. If all these regulations are not fulfilled by the management
of organisation then they are penalised by adequate authorities. In this case, large number of
penalties are impose on organisation and also they need to provide compensation to the
employees (Posner, 2014). There are many benefits which are gathered by the organisation
through fulfilment of these objectives such as high brand image, large support of employees,
improvement in productivity and increase in profitability.
Equal opportunities regulation 2010: It is important act which governs the activities
related to the equality among all the employees of organisation. This will also Known as
Equality Act which provided by government of UK in 2010. The main purpose of this Act is to
avoid discrimination among the employees of organisation on the basis of their age, religion, sex,
gender etc. This brings an obligation upon the management of JPM is to provide equal
opportunities to all the employees and use the common rule in the process of recruitment and
selection, promotions, compensation and salaries, incentives etc. There are many implications
are faced by the organisation if such regulations are are fulfilled by organisation such as less
support of employee, large number of conflicts, reduction in productivity etc.
General Data Protection regulation 2018: This regulation is provided by European
Union. This Act was established in 2018. The main purpose behind the providence of this act is
about the protection of consumer and personal data across EU nations (Snyder and Deaux,
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2012). This Act is very important in nature for JPM as this helps in prevention of important
information and data. If such regulation is not implemented by the organisation then this will
reduce the trust and loyalty of customers and employees over the transactions of organisation.
The main implication behind the failure to follow these regulation is related to damage of
goodwill and image in market.
Scenario 2
TASK 3
P4 Appropriate legal solutions for business problems.
Both the case study have different legal problems and require immediate solutions in
order to settle it. In first case study, a company named Champion Ltd. has taken relocation loan
from banks and creditors as they were shifting to new site. They required fund to manage their
business at new place, so they took necessary financial assistance from banks and creditors.
Problem arises, when Champion Ltd (DiMatteo, 2010). Company was not able to pay its loans to
them on decided time and now creditors are threatening them to wind up their company and pay
the amount of loan by selling it. Now in this scenario, company does not want to dissolve its
assets and want some time to resolve their conditions.
In second case study, Mr. Anderson is working for a firm name Amber Ltd and both of
them have a contract of employment which states that, either side has given the time of 12
months in order to terminate the contract. But Mr. Anderson has violated this contract has he got
attracted with new offer by Beta Ltd. Company. They were proving him with the position of
CEO in their company as he was working with Amber as CFO. Now, Mr. Anderson has
terminated his employment with Amber Company and accepted the offer given by Beta Ltd. But
Amber is opposing to his resignation as he did not complete his service period and now they are
seeking an injunction to prevent Mr. Anderson from commencing employment with Beta form
breaching his duties (Foss and Knudsen, 2013). Following are some solutions of legal problems
related to both the case studies.
Termination of contract
Anderson has violated his contract of employment as he terminated his duties with
Amber by accepting offer from other company. There is breach of contract now he is liable to
face appropriate consequences. This is considered as Termination of Contract. If any person have
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valid reason then he or she may terminate their contract and then they are not liable to face any
consequences (Grundfest, 2010). Some rules related to termination of contract are given below:
Impossibility of performance : Performance is referred to the situation when all terms
and conditions are fulfilled. But there are some condition in which the contract cannot be
performed. In the case of Anderson, he refused to continue his duties with Amber and terminated
his contract with them. So, he did not fulfilled his contract of employment.
Breach of contract : If a contract is made then both the parties are bound with that
contract. As in the case study, Amber Ltd. Company and Mr. Anderson, both are bounded to the
contract. If any party refused to perform their part, then they are liable to pay necessary
consequences (Kinicki and Kreitner, 2012). In this case study, Mr. Anderson has repudiated his
part from performing his duties then he will pay whatever consequence demanded by Amber
Company.
Rescue from insolvency and liquidation
In some situation, company might face huge financial loss and may not able be to carry
out their operations, so in that condition, they may opt for liquidation procedures. In the first case
study, Champion Ltd. Company was not able to pay their loans to banks and to creditors. They
shift to new location and there they were not able to attract as many customers which can help
them to earn revenues. Due to that, they were unable to pay on time (Kitagawa, 2016).
In order to rescue from this situation, Champion Ltd Company can negotiate with their
creditors and banks and can lend some time from them so that they can pay their loan. If they did
not convince by this, then company can sell some of their business assets and pay some amount
of their loans and borrow some time for further payments. Business executives should have the
power to convince their creditors, which will help their business to survive for long period of
time and they can pay all debts and loans on time.
P5 Justification
This is clearly shown with the above scene that Champion Ltd organisation which are not
capable for paying their loans on given time period and through threatened they dissolve their
company. When they are shifting their place to some other nation. Then they took relocation loan
and at current time they are unable for gaining attention of buyers towards their stadium and also
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face certain losses. From this, they can unable for paid their debts amount. They have face some
business in-equilibrium.
With the above solution, it is clear that they can rescue their issues and problems if they
require to pay their bank loan. The best possible solution is that they can negotiate and convince
their creditors for paying their loan amount in given time period (Kubasek, Brennan and Browne,
2016). They can easily convince them by telling about their situation so they move from different
places. Business executive require to develop and make their customer satisfied regarding their
services and facilities. They have to wind up with some other business organisation.
For enhancing their promotional strategies and attracting their customers towards them,
they can solve their finance related issues and problems. On the other hand, they can sell certain
asset for paid certain amount of loan. It can also provides satisfaction to their creditors and they
given some reliability to the organisation.
TASK 4
P6 Recommendation of legal solution
Alternative dispute resolution is a procedure under which parties settle their disputes
without litigation. ADR is a abbreviation used for alternate dispute resolution. ADR is perform
through arbitration,meditation or negotiation. ADR process,less costly and save time as compare
to judicial proceedings. With the help of neutral party, individuals able to communicate,discuss
the divergence and resolve it. It resolve all kind of matters whether related to criminal, civil,
labour ,industrial and commercial. In recent time ADR is so popular that court also want that
parties first go there to solve their dispute before coming for them. In this approach,individuals
are not hesitate to present the facts because of presence of very few members during litigation
process.
The ADR consist of three basic methods to solve the dispute which are as follows- Arbitration- Under this third party, solve the dispute by hearing the arguments of both
the sides. The third party who solve the dispute is known as arbitrator. in today's time
arbitration clause is added into employment contract to reduce burden of the legal
process. It based on the party whether decision bind or not bind them (Snyder and Deaux,
2012). Arbitration provide privacy and confidentially as their documents remains safe
which was not present in the case of court proceedings. This process is advantageous for
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the organisation, where the disputant parties want other person to determine outcome of
their dispute but not from formal way. Not beneficial for parties who want full control on
its outcomes especially in the case of binding arbitration. Negotiation- Under this self counselling is used by the parties to achieve result. It is a
voluntary process in which parties can enter whenever they wish to enter. It has no set of
rules and regulation which have to follow but have a set of procedures. Negotiation gives
wide ranges of outcomes to enhance profit. It is beneficial in the non complex matters
where third party does not need any training and information about dispute solutions.
Negotiation process does not have statutory recognition while arbitrator have (Spalding,
2011). In this parties have the full control over procedure and outcomes.
 Meditation- It a process where disputant parties come to a mutual agreement with the
help of a neutral party. The neutral party known as mediator,outsider, third party to
dispute who combine with clients to get the outcome. It a non binding process where
parties to negotiate, find different ways for solutions. In this mediator has no power to
force the decision on disputant parties which was present in the case of arbitration.
CONCLUSION
From the above mentioned report it can be analysed that law is indispensable section of
country that protect with all type of discrimination and exploitation of general people.
Government can enacted with law that are associated with various issues and problems which
concern in the community. Such law can be developed for the society welfare and people
surviving in that nation. There are certain law which are associated with business and
organisation required to executed in the firm with some reason.
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REFERENCES
Books and journals
Bagley, C.E. and Dauchy, C.E., 2011.The entrepreneur's guide to business law. Nelson
Education.
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Business Law Journal,47(4), pp.587-639.
Cheeseman, H.R. and Garvey, J.R., 2014.Business law. Pearson.
Crane, A. and Matten, D., 2016.Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Czinkota, M., Ronkainen, I.A. and Moffett, M.H., 2011.International business. Wiley.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive
advantage.American Business Law Journal,47(4), pp.727-794.
Foss, N.J. and Knudsen, C. eds., 2013.Towards a competence theory of the firm(Vol. 2).
Routledge.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law.The Business Lawyer, pp.361-394.
Kinicki, A. and Kreitner, R., 2012.Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.
Kitagawa, Z., 2016.Administrative Regulations(Vol. 4). Doing Business in Japan.
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Mann, R.A. and Roberts, B.S., 2011.Smith and Roberson’s business law. Cengage Learning.
Miller, R.L., 2015.Business Law Today, Standard: Text & Summarized Cases. Nelson
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Nichols, P.M., 2012. The business case for complying with bribery laws.American Business Law
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Posner, R.A., 2014.Economic analysis of law. Wolters Kluwer Law & Business.
Snyder, M. and Deaux, K., 2012. Personality and social psychology. In The Oxford handbook of
personality and social psychology.
Spalding, A.B., 2011. The Irony of International Business Law: US Progressivism, China’s New
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Online
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