Law & Business: Understanding Legal Concepts

This assignment delves into fundamental legal principles applicable to business operations. It examines topics such as contract law, intellectual property rights, securities regulations, privacy laws, and alternative dispute resolution methods. Students are expected to demonstrate comprehension of these legal concepts and their practical implications in various business contexts.

BUSINESS
LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
a) Structure of English legal system and different sources of laws. ......................................1
b) Role of government in making Law ..................................................................................2
SECTION 2......................................................................................................................................5
a) Employers legal obligation and impact of law on the working of organisation.................5
b) Potential impact of employment and contract law on the business. .................................8
SECTION 3......................................................................................................................................9
P3 Legal solution to business problems ................................................................................9
P5 Solution and their justification........................................................................................10
SECTION 4....................................................................................................................................11
a) Alternative Dispute Resolution process, concept and benefits........................................11
b) Recommendations of alternative legal solution to business problem..............................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

ILLUSTRATION INDEX
Illustration 1: Steps included in making of law...............................................................................3
Illustration 2: Types of alternative disputes resolution..................................................................11

INTRODUCTION
Business law in nation is responsible to conduct and regulate all the commercial matters
that are related with the business of the country. It provides the organisation with proper
indication on how they can rule their business fairly and legally by following these rules. These
judicial frameworks play major role in smoother working of the firm by minimising the problem
and issue in the firm. Business law play major role in the business operations and decision
making of the company (Beatty, Samuelson and Abril, 2018). Current report will discuss how
business law are implemented in the firm for its smoother running. The report will present with
the structure of English legal system and different sources of laws will also be discussed. Along
with this, several issues that are faced by firm will be discussed. Moreover, proper solution and
its justification to this problem will also be given in research. The concept and benefit of
alternative dispute resolution process will also be discussed.
SECTION 1
a) Structure of English legal system and different sources of laws.
English law has been made by combining the criminal and civil law. It is also known as common
law. In this type of law, judges who sit in the court play important role. They are responsible to
go through different cases and state their decision according to situation, it not same as formal
codification. English-law is very effective and is widely spread accepted by many nations such
as Canada, USA, Australia etc.
English legal system has accepted hierarchical structure in their working according to which
Supreme court is the highest body of authority also known as house of the lord. The decision
made by the supreme court is the final decision and must be accepted by the all below courts. In
1966 the lord chancellor has issued 1 WLR 1234 practice statement which is responsible for
many changes in the legal system (Blanpain and Bisom-Rapp, 2014). According to the European
communities act 1972 session 2 and 3 the supreme court is the main powerful unit that has the
highest authority in English court and decision that are made by this court is final and need to be
followed by all the courts that are below him strictly. Civil law in the structure is responsible to
handle the dispute between individuals. The crown court in this structure is responsible to handle
the cases related to criminal activity of the nation. In these, judges are required to sit with jury.
The final judgement is passed on the basis of majority.
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English legal system is divided into criminal system and civil system. The Court of
Appeal, Crown Court and Magistrate court are responsible to handle the cases related to
criminal, while civil courts have several court under it that are responsible to see other cases
Court of appeal, Country Tribunal and High Court of Justice come under this.
Sources of law
There are several sources of law that an organisation need to followed. In case an
organisation doesn't follow these rules, it can lead to legal hassle that is not good for the brand
image of the firm.
Statutory laws: This law is regulated by the parliament of UK, and is one of the most important
part of law. It generally consisted of laws related to contract, health and safety insurance etc. In
17th century it has become the main source of law reform (Burman, 2014). Only parliament is
allowed to make any type of amendment in this law. Its mandatory of any organisation to follow
this rule so that it can work efficiently along with this it also states that there is certain right that
are enjoyed by people that cannot be restrained by anyone because they are essential rights of
person.
Juriprudence: This law is related with the legal custom of the nation, civil right, divine rights,
human right etc. It's another source of law that play crucial role in the development of the law.
European Union law: European law is consisted of many laws that are responsible for various
activities related to the business (Cheeseman and Garvey, 2014). This law is known for handling
all the activity that are related to the business such as employment law, contract law etc.
European union is also consisted of Company law that include various regulation regarding the
running and smoother working of the firm. Other than this, contract law is also part of this.
Contract law is consisted of various regulation that determined the relationship between business
and government. Employment law is another important law under this that is responsible for the
relationship between business and government.
Common law: This is another body of law which has been developed through English tribunal.
Its related with the custom that is used by English people.
b) Role of government in making Law
Parliament plays important role in the making of law. Law making a long process that
include several people that are responsible to come up with effective legislation. Government of
nation play crucial role in the making of laws and regulation. Government of nation is
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responsible to make amendment in the laws and regulation so that they can remain relevant with
time and are still capable of preventing any unfair practices (Clarkson, Miller and Cross, 2014).
In same way there is continuous change in the business law so that they can remain relevant and
can help in smooth functioning of the firm.
Debate and decision making are two aspects that are included in any laws that is made by
parliament in UK. Before implementing any changes or amendment in the law the concerned
authority tests the idea and try to find out the consequences related to it and then debate on the
implementation of the change. On the basis of the discussion final decision are made and new
laws are implemented by the government. For example, the higher authority is planning to
introduce a change than first they will arrange a meeting where they will introduce the specific
bill and debate upon it later they submitted this to business and legislative committee. The
making of law consist of various phase such as from meeting to settlement of committee to final
stage (Craven, 2016). Once the bill is accepted by the primary authorities than its passed down
for second phase, in this the bill is passed to the government again a debate and meeting is held
on the advantage and disadvantage of the following bill are discussed in parliament office. This
shows that government play significant role in decision making process of making law. Without
the permission of the government no law can be passed are amended.
Steps included in whole process
Illustration 1: Steps included in making of law
(Source: Making of law, 2017)
Bill: The first bill is drafted and proposal is made and submitted as per requirement of the bill.
The bill covers certain explanation, it's generally in the form of public and private members bills.
The private bill generally implemented for individual or particular academy but the public bill
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made down an impact on larger number of individual (Dau-Schmidt, Finkin and Covington,
2016). This type of bill is prepared by cabinet.
First reading: The first reading is held in the house of commons. In this, the title of the bill is
read out which is followed by the order of printout no debate is held in this stage. The first
reading of bill can take place anytime in parliamentary session.
Second reading: In this stage MPs get first opportunity to debate the general principle pro's and
con's and theme of the bill. In this Spokesperson present the bill and the official opposition
respond with their views on the bill. In the end the commons decide whether the bill should be
given a second reading or not with the help of majority.
Committee stage: In this stage bill presented by MP are analysed in the detail. Most of the bill
are passed as public bill and are dealt in Public bill committee. In house of commons the
committee are allowed to take advice from the people outside of parliament; it consists of
experts and interest group. The amendment for the change are selected by the chairman of the
committee and only the members of committee are allowed to make changes (Farhang, Kastellec
and Wawro, 2015). For each day, committee discussed the bill and amendments proposed by
MPs are published daily and are reprinted as marshalled list. A minority of bill are dealt with the
whole house where each and every MP are able to take part.
Report stage: It provides MPs with an opportunity to make further amendments in the bill. In
this MPs suggested new amendments that can be added in the bill as the new clause.
Third reading: This is the final chance for the commons to have debate on the content of the bill.
Amendments cannot be made in the third reading, at the end house decide to vote whether they
approve the reading of bill or not. After this, bill is transferred to the house of lords for its first
reading.
First reading in house of lords: Bill is read out by the lord that is in charge of the bill no debate
take place in this stage.
Second reading: Before the commencement of second reading, member who would like to
present their view add their names in the list known as speaker list. In this government minister,
spokesperson or the Lord who is responsible open the bill for second reading debate. Any
member who is present in the meeting can present their view those who are interested in the bill
present their view and suggest changes in the later stage.
4

Committee stage: Before committee stage begins, amendments are gathered together and are
published under the 'marshalled list'. In this stage, every clause of the bill is discussed in detail,
all amendments are considered if the member wishes. The issue can be discussed as long as the
member want (Jones, 2017). Any amendments can only take place if its agreed and voted by all
the member of the meeting.
Report stage: In this detailed examination of the bill continues. Any member of the lord is free
to take part and vote for the amendments in the bill. After this bill is reprinted with all the
amendments. The bill than move to the third reading.
Third meeting: Unlike house of commons, here amendments are allowed to make even in the
third meeting. This meeting is the chance for member to make sure that the bill has no loophole
and to ensure that it is effective and workable.
Consideration and amendments: After third reading in both the houses, it is returned to the first
house for the second house amendments its necessary that both the house agree on the wording
of the bill. If the commons make some amendments, it is essential of the lord to consider them
and either accept or decline them or they can also make alternative proposal. The bill may pass
between both the houses until they come to an agreement.
Royal assent: If both the houses that is house of common and house of Lord agreed on the bill, it
is passed to royal assent before it become an Act of Parliament. Royal assent is Monarch
agreement that convert a bill into an act.
SECTION 2
a) Employers legal obligation and impact of law on the working of organisation
Occupational health and Safety
Health and safety law are strictly applied and followed in UK. It's the responsibility of
employer to look after the health and safety of its employees by maintaining proper safety and
security in the organisation (Lareau and et.al., 2016). Organisations are responsible to take
proper measures and arrangement in the workplace to ensure that no individual get injured.
Under the criminal sanction, if any employee gets injured during working hour then employers
are responsible to pay for the administrative fine to that particular staff.
Occupational health and Safety act 2004, Occupational health and safety regulation 2007,
are the legislation that need to be followed by organization. The main objective of these
regulations is to provide health and safety to employees in the workplace.
5

According to article 4, the owner of firm is obliged to make arrangement related to the
safety and security in the workplace. It's the responsibility of the owner to maintain healthy
environment so that workers can carry out their work efficiently without facing any problem.
Obligation of employer regarding health and safety are as follows:
 In order to minimise the risk of any kind of injuries, the employers are required to make
sure that working environment is secure. Owner is required to provide training to their
employees about different safety precaution, equipment etc., so that any type of injuries
could be avoided. Risk prevention measures should be added in the guideline of company
manual, so that employees can become aware of them (Painter and Holmes, 2015).
 Employer are required to form partnership with the risk prevention agencies so that they
can help them in the time of emergency. Along with this, firm can also take their
assistance in guiding their staff and can help them in reducing the risk to big extent. As an owner, employer is obliged to look after the regular operation and various
arrangement so that safety and health measures can be taken in appropriate manner
(Milsom, 2014). Along with this, they can also implement some health and safety
policies and ensure that all the staff is adhering these rules and regulation so that risk can
be mitigate in the company.
Worker compensation
Insurance facility is one of the important part of business law. There are many situations
where employers have to provide their staff with insurance facility. It comes under statutory
provision of Worker’s compensation Legislation. Employers are responsible for the liability of
its staff member that are valuable to the firm (Miller, 2015). This help in boosting the confidence
of the workers they put more energy in their work by making them feel safe and secure. It’s the
job of service provider to ensure that its workers are protected from any kind of risk such as
occupational disease, death, accident etc.
“The employees compensation act 1923” has been introduced by government. This act
gives guideline for the employers that they have to give compensation for accidents, medical
illness etc. of employees.
6

Medical benefit is another part of this law. In order to cover the risk of staff member the
firm make contract with the insurance firm so that they can cover the risk which come with
working. The premium that is paid to the insurance company come from the salary of the staff
member. A certain amount is deducted from the salary of the employee in order to paid this
insurance company (Meyer, 2014). A firm has many medical policies that are used in the case an
employee gets injured, these policies cover health risk of an individual and also pay for the
treatment of an individual if he gets injured in working place. It includes wages replacement,
health care treatment, benefit to the family member on the death of employee etc.
Harassment
Any kind of harassment is completely illegal are not accepted in the firm. In any such
case do occur than employer will be responsible for it and have to face consequences regarding
the matter. Harassment act prohibited any such type of behaviour in the corporation. “Sexual
harassment of women at workplace act 2013”, is the regulation that have been made to protect
females in the workplace. This regulation covers “quid pro quo harassment and hostile work
environment. The statutory obligation of the employer according to harassment act are as
following:
 Employer is responsible to create awareness regarding the harassment, it should
implement harassment policy in their working and need to make sure that each and every
employee is aware of the rules and regulation regarding this policy (Marwick and Miller,
2014). In order to avoid such type of situation, the owner need to provide staff with
manuals and handbook so that awareness can be created and any such situation can be
avoided.
 Employer require taking necessary action according the law if any individual is indulged
in such type of behaviour. Employer need to communicate properly with their staff regarding the policy related to
harassment. Owner can arrange training and development for their staff and can discuss
the various policy and the end result effectively. This will help them in avoiding difficult
situation.
Equal opportunities
7

According to the equity act 2010 each company of UK are obliged to provide their
employee with equal opportunity without any type of discrimination such as age, sex, race etc.
Owner are responsible to implement anti-discrimination practices that can help them in effective
running of the firm (Marshall, 2017). Equality act 2010 was introduced by government of nation
to provide equal opportunities to employees and minimize discrimination. Apart from this Race
relation act, sex discrimination act, Equal pay act 1970, The employment quality regulation
2003, The employment equality regulation 2006 amendment 2008 etc. are several acts related to
equal opportunities in the organization. In regard to this act, the employer has following
obligation:
 Employer need to keep eye on the various activities and practices of the firm to ensure
that there is no discrimination in the working of the firm. If any such case emerges it's the
responsibility of the owner to take necessary measures in order to resolve such problem.
 At the time of recruitment, employer need to ensure that the criteria for the selection of
employee is solely based on the qualification and skills and experience of the person.
Favouritism, age, sex should, not be base of selecting an employee. Promotions in the
firm should also be on the basis of the performance of the individual and not based on
any type of discrimination. Owner is responsible for the maintaining healthy working
environment that is fair to all employees (Llewellyn, 2016).
 Person skill and experience should be the basis of the pay scale determination of each
employee. If a person is highly knowledgeable and also had great experience than an
owner is required to provide them with huge pay compare to others that can satisfy them.
The people with the same qualification and skill are required to provide with equal pay.
b) Potential impact of employment and contract law on the business.
 Fraudulent: It can be defined as dishonesty by the person for the benefit of own.
 Negligent: It can be defined as not doing something which is necessary to done by the
person. Ignorance or avoiding some essential aspect in business is called Negligent.
 Reckless misinterpretation: It can be defined as misleading of statements by one person
to another in order to get benefit.
8

Case states that 16 year girl works in the fast food outlet and cook fries at a frying range.
She slipped over ice making machine and her hand gets into deep fat fryer and she meet with the
accident.
UK government has implemented many laws regarding the employment and contract that
is necessary to abide by each and every firm that is working under the law of nation. According
to employment law it’s illegal to hire the people haven't cross the legal age of 18 years, the
people under 18 years are considered under minority and are not permitted to work. As per the
scenario the owner has break the rule by employing a child of 16 in the fast food outlet which is
against the employment law.
According the employment act, health and safety is one of the most important part of it.
Workplace act 1974 states that employer is responsible for the arrangement of the workplace
safety so that hazards and accident can be prevented (Lieberman and et.al.,2016). Health and
workplace act make sure that working environment is safe for the employees. However, in
current scenario the reason for the fall of little girl in the fast food outlet was because of the
leaking water from ice making machine, in order to prevent her fall, she tried to use the available
surface she put her hand in the deep fryer which has the boiling oil of 360-degree F temperature
which burned her hand. Through this incident it can be concluded that employer was not
fulfilling its obligation of maintaining workplace safety which lead to accident and fall of the
girl.
In such condition employee is obliged to pay for its mistake and carelessness toward the
16-year-old girl. The employer has breached the law by not maintaining safety arrangement that
can ensure the safety of its worker. In regard to this the owner is required to pay for
administrative fees to all the concern bodies. The firm was also suffering from the shortage of
employee as the result leader was also involved in other work that he was unable to monitor and
supervise the little girl which result in the accident. Leader is also responsible to see the safety of
its subordinate, because he was not performing his duty it results in the accident. As per the
guideline of workers compensation policy employer is responsible to pay for the compensation
to that 16-year-old girl. It will cover the cost of health treatment, and medical expense (Roy and
Marsoof, 2017).
9

SECTION 3
P3 Legal solution to business problems
Case 1
Calvin is a fashion designer that is working for the organisation for last 4 years. The
employer of the firm Mrs. Donna dismisses Calvin from his job on the basis of her suspicious
that Calvin has been the reason behind the $100 that was missing from the cash box. Donna
terminate Calvin without any notice or proper investigation. In such case the behaviour of the
employer was completely unfair and unacceptable under the Employment right act 1996 Calvin
has right to sue Mrs Donna for unfair dismissal Securities and Exchange Commission, 2014().
Employment law of nation state that before terminating an employee, its necessary of the
owner to provide the employee with the chance to prove himself (Employment right act 1996,
1996). Apart from this its mandatory of the firm to provide their employee with one-month
notice period before dismissing them. In current scenario no such things were done which result
in breaching of law (Solove and Hartzog, 2014). The owner has no solid proof that it was Calvin
that has stolen that $100 from cash box she accused Calvin on the basis of her assumption. In
case where employer terminate the employee without prior notice and without given the chance
to prove his innocence is completely against the law and according to the Employment law
Calvin has right to sue his employer for defamation and unfair dismissal. Employer in such case
is responsible to pay for the compensation for its unfair termination and wrong behaviour.
Case 2
Wrongful dismissal can be defined as situation in which employer terminate the
employee without following terms of contract of employment. Employer beaches the terms of
this contract and dismiss the candidate. It is the type of termination in which employee do not
get any notice before termination.
On other hand unfair dismissal can be defined as the situation when employer terminate
the employee without giving fair reason. In this employer deals with mater unfairly. Mr. Dan
own a convenience store. Because of a fire incident the whole store turns into ruin. The owner
has decided to open new store in new location and has claimed fire insurance for financial
support. Due to miscommunication and lack of knowledge MR Dan has filed wrong information
in the policy form that are required to claim insurance. It was the reason why the insurance firm
has refused pay for the claim that Mr. Dan is demanding. According to Contract act 1950 section
10

26, its necessary of claimant to ensure that all the information provided by him should be correct
and authentic (Twomey, Jennings and Greene, 2016). During the investigation if any other
information is found than claimant will not be able to get the compensation which it has applied
for. A contract is formed between the insurer and a person at the time when individual take any
policy. A person who is taking an insurance policy required to fill some information in policy
form and has to make sure that there is no hidden formation. In this case the insurance firm find
that the detail provided by Mr. Dan is incorrect which automatically make them unamiable to get
the compensation for their loss (Walsh, 2015).
P5 Solution and their justification
It’s illegal to dismiss the employee without any base. Employer has no right to dismiss an
employee on immediate basis and without any explanation. The unfair termination is against the
law and has right to sue the other person for improper behaviour and defamation. Calvin was
working in the firm for last 4 years, which shows that Calvin was dedicated to his work and was
loyal to the firm to be able to survive for such a lengthy time. The owner decision of terminating
Calvin on the basis of her assumption was completely unfair. In addition to this she doesn't
provide Calvin a chance to prove his innocence and even does not give him any notice period
that was wrong of her (Wigmore, 2016).
If any employee is not competent enough for the post then employer have right to
terminate that person but before doing that its necessary of the firm to provide them with one
month of notice so that he can have chance to improve their performance. In this case the owner
dismisses Calvin without any proof that can justify that it was Calvin who has stolen the money.
Dismissing an employee without any prior notice and any solid base is considered unfair and
breaching of law. In this case Calvin has right to ask for the compensation from his employer
regarding defamation and unfair dismissal.
In the second scenario Mr. Dan has claimed the fire insurance from insurance company
but it was denied because of wrong information provided by Mr Dan. According to Contract act
and fire insurance policy act its necessary of both the party to disclose every information. Mr
Dan provide wrong information of not taking any type of insurance in the time limit of two year
which come forward at the time of investigation. Thus, the decision of fire insurer to cancel the
claim was correct as providing wrong information is against the law. On the other side Dan can
also claim that he was not informed of this rule and that's why he filled the form on the basis of
11

his own understanding (Yell and et.al., 2016). It was the job of insurance firm to make each and
every clause clear to the service user so that no confusion occurs. In this case it was the mistake
of both.
SECTION 4
a) Alternative Dispute Resolution process, concept and benefits
Alternative dispute resolution is a process through which two parties can solve their
issue. There are several methods that is used in resolving this dispute such as mediation,
collaborative law etc. Alternative resolution process can help employer in solving various issue
in the firm and can also help them in maintaining healthy working environment.
Mediation is a process in which higher authority communicate with involved party so
that main cause of dispute can be identified. In this third party is included who listen to the
views of each party and provide them with solution (Ward, 2016). Both the parties have to agree
on the solution and have to come at mutual understanding in order to solve the problem. On
other hand there is another method known as arbitration. In which arbitrator is appointed to solve
the issue of both the person. It’s quite beneficial to solve dispute related to international
transaction and commercial dispute.
 Negotiation: It is the type of ADR in which both party negotiate on the topic directly or
indirectly. They reach to the middle solution on which both parties can be in win win
position.
 Tribunals: It is the process in which court takes final decision by looking at the evidences
of both involved person. Final judgement make by judge after listing both views.
 Mediation: It is the process in which independent third party look upon the dispute
between two parties. Mediator develop option and consider alternatives in order to
resolve issue.
 Arbitration: It is another process in which third party make determination. This process
is applied in such issues when matter is highly technical.
 Ombudsman: It is the neutral dispute resolution practitioner, this provides impartial
assistance on dispute between employees and manager.
 Conciliation: This is the ADR process in which professional conciliator who is expert in
this field provide solution to both parties those who are involved in disputes. Conciliator
make judgement about the issue.
12

Illustration 2: Types of alternative disputes resolution
(Source: Alternative Dispute Resolution Methods, 2013 )
Benefits
 This method helps in keeping the matter confidential, as the matter does not get discussed
openly in front of other people (Wadham, Robinson and Ruebain, 2015).
 Both these processes are quite simple to use and provide the best result at fast pace.
b) Recommendations of alternative legal solution to business problem.
Antwon's and Tyrell are having major disputes because of unsatisfied work. In order to
maintain their work relationship they can adopt the technique of neutral evaluation. In order to
maintain good relationship its necessary of both to evaluate their own mistakes and work so that
they can improve their own performance (Kumie and et.al., 2016). Other than this, they can also
use mediation and arbitration methods. This will help them in resolving their work issue and
maintaining healthy relationship.
Negotiation technique can also be used by both the party. They can disclose their demand
and can achieve common ground that will be in the benefit of both (Turner, 2015). This will not
only help in resolving the dispute but will also help them in maintaining good and healthy
relationship.
13

CONCLUSION
From above report, it can be concluded that English Legal System play major role in
running successful business and protect it from any type of risk. Government plays significant
role in the making of law. They discussed each and every clause of bill before making any
decision so that they can implement new law effectively and it can provide nation with the best
results. The report also discussed about various law such as Contract, Employment law etc., and
how company need to follow them in different situations. Other than this, it also discussed about
alternative dispute resolution process, mediation, arbitration, negotiation etc. which are some
ways which can be adopted by the firm in order to resolve their problems.
14

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