Delaware Corporate Law & Business Ethics Analysis

This assignment requires a critical analysis of Delaware corporate law, focusing on the business judgment rule and corporate purpose. Using the provided academic sources, including 'Unsettledness Delaware Corporate Law' by Lawrence E. Johnson, you will evaluate these concepts and discuss their implications for business operations and decision-making. Additionally, you will explore the role of ethics in business, drawing insights from the source 'The Business Case for Complying with Bribery Laws' by Paul M. Nichols.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
P 1. Different sources of law and framework of English legal system..................................1
P 2 Application of statuary or common law and role of government during formulating acts4
SECTION 2 .....................................................................................................................................7
P 3. ( a ) Lawful obligation of employers...............................................................................7
b). Significant contract and employment law impacting on business sceneries ....................8
SECTION 3......................................................................................................................................9
P 4. Effective judicious solutions for business problems ......................................................9
P 5. Justification...................................................................................................................11
SECTION 4....................................................................................................................................11
P 6. (a) Concepts and benefits of alternatives conflict resolution........................................11
b) Recommend an effective solution for different business issues......................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Law is playing a crucial role in each and every nation as they are responsible for
governing and regulating different facets of society appropriately. There is a large number of
norms or rules imposed by the government bodies which are providing correct direction to
individuals as well as corporation also so that they perform their day to day work and duties
ethically. Such laws are formulated by the members present in parliament that bound everyone to
obey and respect this (Ye and et. al., 2011).. These legislations are designed for the main
intention of making an environment crime or corruption free. Business law is also a part of this
civil legislation that deals with the commercial and corporate world. Some of the norms are
designed for running organisation properly and all companies which are existing in United
Kingdom and even those ventures also which import their goods and services in the UK are bind
to follow such principles. These policies are commonly dealing with public as well as private
law. So, it is also known as commercial law which is responsible for controlling manufacturing
and selling of products, contracts linked with firms, recruitment and dismissal activities, etc. The
present report is divided into different sections which is explaining structure of English legal
system and various acts that are needed to be followed by all companies. In addition to this, part
of government bodies in formulating a law is also discussed in this project. Apart from this, a
technique of solving disputes and conflicts known as Alternative Dispute Resolution is going to
be explained as well.
SECTION 1
P 1. Different sources of law and framework of English legal system
English legal system is also known as European legitimate system. It consists of two
main legislations named as Civil and Criminal as well as having different procedures and
jurisdictional activities (English Legal Materials, 2016). Generally, it is applicable in Wales and
England; but at the same time, lawful bodies of Northern Ireland are also adopting the identical
patterns at their court. This has been examined that English legal system is having a hierarchical
structure where by Supreme Court that is known as House of Lords is present at top level of
hierarchy and its judgement is considered as the last decision. Different other courts are liable to
respect and obey their made conclusion. On the other hand, decisional procedures of European
tribunal are not applied on domestic jurisdiction. Court of appeal is present at second level that is
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below the assembly of supreme and furthermore, categorised into two segments which are
Criminal and Civil division. But, it is to be noted that both of them are variant from each other
which can be understood by the following points:
Civil law Criminal law
This is considered as a branch of governance
which does not contain criminal laws. This is
commonly dealing with the rights and duties
of civilians and corporations present in UK.
This code of norms was derived historically
from Roman legislations. It is having usually
the obligation of solving conflicting situations
that occur between individuals and damages
associated with business that is happening on
a regular basis in society (Swartz,Cole and
Shelley, 2010). This legal system is again
divided into two sections that are statuary and
non – statuary laws.
On the contrary, these norms are used for
providing resolution of those problems that
are connected with criminal actions or
offences which are emerging in state or a
country. In addition to this, it also deals with
interrogation and investigation in order to find
out the guilty person and arresting him.
Punishment is given to such people on the
basis of their intensity of crimes and
evidences found.
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Illustration 1: English Legal Materials
(Source: English Legal Materials, 2016)
Therefore, it has been evaluated with both of the advisory bodies are dealing with distinct
conditions but somewhere the key objectives of both them is same. This is nothing but giving
punishment to those individuals who are involved with illegal activities and making an
atmosphere where there is no air of violence. Furthermore, juristic actors are also attempting to
offer compensation to the victims so that they can start their new life again. Thus, it can be said
that model of European legal system has been formulated in an impressive way by focussing on
the several necessary factors like right of common public, duty of person, fundamental
obligation, development of entire society and nation as well. Thus, English legitimate body is
having the responsibilities of minimising social group problems and issues as well as offering
citizens a protective covering so that they can remain safe from different criminal activities like
fraudulent, attacks, exploitation, etc.
Sources of law
Besides this, one of the main areas that is needed to be paid attention which is the sources
of such laws. This has been observed that legislation is originated since a long period ago and
various things are responsible for its origination that is displayed as below:
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 British Constitution: The UK does not comprises of one particular constitutional
document known as such. In – spite of this, the so – called constitution of United
Kingdom is the collection of principles and laws that is making up the politics of nation's
bodies. This is also referred as uncodified or unwritten constitution. This is chiefly drawn
from four sources that are common law, works of authority, statue law and parliamentary
conventions (Sources of law, 2018). The main reason which is stating that constitution is
a source of law is that it is creating and allocating powers among different lawful bodies,
branches of federal governance system and executives. Apart from this, it is also
assessing the clauses present in articles.
 Case law : There are numerous of cases which are recognized at courts that is
influencing peaceable surrounding of whole society. Therefore, for reducing issues of
common people, it is very necessary to enact various acts by taking care of rights of all
individuals. Thus, case law can be considered as one of the important source of
legislation and having the key motive to set an environment free of discrimination and
corruption; so that every one is treated with equity.
P 2 Application of statuary or common law and role of government during formulating acts
Government body is playing an eminent role in designing and imposing significant laws,
norms , standards or principles within nation so that every on should be given equivalent
opportunities for their development. Furthermore, their primary motive is to serve complete
nation in an effective manner without harming any body by considering essential facts and
information.
This is not an easy task to formulate a law for the entire country as if gets wrong then can
adversely impact on the whole people living in country. Thus, in order to implement the right
and adequate legislation, a bill passes through several stages that at last get converted into an act
and come into force. This is to be noted that House of commons and Lords is liable to take
proper judgement so that correct one is enacted at last (Spalding, 2011). But members present in
these assemblies may reject it ; then it do not approval. Some of the main stages and terms
related with this are discussed below :
 Bill : This is nothing but a document that highlights the description of existed rules. This
is majorly divided into three parts that are private, public and private member bill. Private
member bill is generally introduced by back bencher members of parliament. On the
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other hand, public one which is impacting the whole country is proposed by cabinet in
order to modify the acts of particular nation and conceded by green paper. Apart from
this, private bill is being presented by associates of local authorities, large or small public
organisations.
 House of Commons : They are mandatory individuals of parliament who is named as
MPs . They are elected by public for representing legislative bodies. Commonly, they get
nominated in every coming five years by conducting a process of fair election. But
sometimes, they are also selected members of constitutive bodies gets retires after
specific period of time.
 House of lords : This may comprises of life peers, genetic peers and higher most priests
of church who are existing in England. Majorly, they are considered as supreme court.
Conclusively, it has been evaluated that an effectual stages is going to be followed by
government body at the time of presenting new acts or norms. Some of the main steps of
designing a law is described below :
 First reading : In this step, the title or subject of bill is being presented and what ever
gets introduced is read by house of commons (Snyder and Deaux, 2012).
 Second reading : In second step, debate took place or amendment is being conducted
here for getting aware about the intention or depth of bill. After this, voting procedures is
also carried out in order to know the views of all MPs on that bill. Thus, the key motto of
this stage is nothing but to attain support of political parties as majority of associates
treated as indispensable reason to win of present government.
 Committee stage : In this phase, bill is gain going to be presented in front of House of
Commons for doing brief investigation. And in turn, more amendments is carried out in
this step.
 Report stage : This is considered as final discussion step in context to the reports and it
is the reason of further transferring this back to house for attaining vote again from
workers or associates of parliament.
 Third reading : Hereby bill is again represented in front of house of commons for doing
short negotiation and then last voting is going to be carried out. On the basis of result of
this, bill gets accepted or rejected by them.
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 House of Lords : After then , bill is being transferred to house of lords for carrying out
adequate assessment of all above mentioned stages and this further send to house of
commons for the consideration of enactments.
 Royal ascent : This is considered as closing stage where in final decision is taken by
monarch and by focussing on relevant facts and figures, they approve the bill official .
After this, bill become an act of parliament (THE ROLE OF POLICY WITHIN
LAWMAKING, 2017).
Hence, this has been observed that above mentioned steps are carried out in UK for making a law
in appropriate manner.
Illustration 2: THE ROLE OF POLICY WITHIN LAWMAKING
(Source : THE ROLE OF POLICY WITHIN LAWMAKING, 2017)
Application of common and statuary law
Common law consisting of a consistent reforming structure. Their principles is in total
effect under the judge or in court. In this proceeding, decisions are made by examining the legal
documents as per the cases existing in court. Moreover, here case law consisting of an identical
framework in all over the jurisdictional areas. In criminal cases, House of Lords and Criminal
divisional court is having the power to take legitimate decisions in accordance to the degree or
level of law-breaking.
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On the other side, Statuary legislations is present in written form and are under specific
systems. Herein, model of norms keep changing from administrative and common laws as per
the judgement of court. Public as well as private acts from particular sector of UK are involved
in this structure. Hereby , principles or norms pass through house of parliament for receiving its
approval and take use of various instruments like policies, secondary orders, standards, etc.
SECTION 2
P 3. ( a ) Lawful obligation of employers
Work forces of an enterprise are considered as indispensable asset for overall venture as
all the tasks are performed and regulated by them only. Therefore, it is important for every firm
to formulate an effectual plan of action by concentrating on full filling the rights of entire
workers. Commonly, legitimate bodies are also involved in creating large number of rules or
norms in to safeguard personnels who are working at official sites. Thus, different laws
formulated by government bodies are discussed below :
 Occupational health and safety act : Security is treated as an indispensable factor for
every worker either they are working in small or large companies so that their well beings
can be insured effectively. Majorly, an enterprise is required to enforce several policies
and standards for preventing their staffs from different dangers and hazardous things
happening at work station. Thus, it can said that it is a multidisciplinary act that is
representing concerns with the well - being, improvement and security of employees at
the working place by concentrating on essential needs of staffs. According to this rule,
higher authority of venture is having obligation to design an environment free from every
types of danger and risks. Hence, as a result, this act assures the safety of all individuals
who are performing their task at corporation – al sites.
 Workers compensation : Compensation simply refers to an insurance that is getting
offered by company to their associates in place of their wages. For example, revenue
provided after retirement age, medication related facilitates, reimbursement on the
foundation of surplus working hours, job securities, and many more (Siedel and Haapio,
2010). Therefore, it can be said that this act is totally based on the offering additional
benefits to the staff members who are working at official stations in order to meet their
demands and needs.
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 Harassment : The primary objective of this norm is to protect workers from every kind
of fraudulent activities, discrimination, exploitation and misbehaviour happening at the
companies. Thus, as per this standard, governance and management of a firm is trying to
safeguard their personnels from any kind of harassment. In addition to this, this norm also
give safety specially to the female employees from all hassles by implementing protective
actions and schemes.
 Equal opportunities : According to this law, it is mandatory for the employers of
corporation for offering same chances to every sub - ordinates who are performing their
duties at work place. Additionally, this act is attempting to set up an atmosphere that
should eliminate all types of favouritism or discrimination that is done on the basis of
colour, sex, disability, religion and race. Thus, in turn give equivalent opportunities to
every one to improve and develop their career.
b). Significant contract and employment law impacting on business sceneries
As per the given case study, there is a girl having age of around 16 years is hired at a fast
food outlet. During performing her duty, she met an accident by slipping due to water leakage
from an ice making instrument. As a result, her right hand had gone into deep fryer containing
oil at a temperature of 360°F at the time of balancing and receives severe burn to her left hand
and forearm. At the same day, very few staffs were existed at the working station and supervisor
was busy on tills in – stead of focussing on the safety of employees and official sites. Therefore,
it can be said that overall incidences that occurred was illegal in the eyes of government as
numerous of flaws were done by the cited venture. Some of them are listed below :
 The first and foremost fault was that company is violating Child labour act as manager
has appointed a girl who is not adult and her age is only 16 years. But according to child
labour act, every worker who is going to be recruited in any firm must be equal to or
more than 18 years. At the same time, those breaks this legislation is considered as guilty
in – front of legal bodies.
 The second flaw is that there was absence of safety and security at the corporation – al
site and this was treated as main reason of the occurrence of sudden accident. Thus, it is
violating act of occupational health and safety. According to this norm, every venture is
liable to enforce safety and protective activities at working station so that assurance of
security to all staffs can be provided (Snyder and Deaux, 2012).
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 Thus, it can be said that if team leader had given concentration on the work of their
personnels then that injury would not happened. Even after occurrence of accident, he
was not giving any attention and neglecting that situation.
Hence, by evaluating this case, it can be suggested that all companies have to obey or
adopt norms like employment law and must have to recruit staffs who are more than 18 years
old. Apart from this, they are also liable to follow occupational health and safety act. Thus, in
turn organisation are responsible for improving the safety at work places so that safeguarding or
a protective covering can be provided to work forces in order to avoid risks of random accidents.
Therefore, girl who had met accident comprises of right to claim against its company and
demands for the compensation in behalf of tragedies or damages occurred to her.
SECTION 3
P 4. Effective judicious solutions for business problems
An organisation is consisting of large number of issues at the time of running their
business activities as they are having vast crowd of work – forces at its corporation – al sites.
Every people are having different ideas and thoughts regarding particular subjects. Hence, it is
primary duty of government to design some set of standards and policies that should be followed
by every body so that rates of conflicts and disputes can be reduced effectively. According to the
provided case study, there was a person named as Calvin, he was a designer and working at a
large fashion house. He had accomplished a time of around 4 years while working in the same.
One day, his employer arrived at working station and claimed him a thief on the basis of suspect
- ion only as she founded £100 missing from her petty cash box. Even after the presence of two
more employees at that time, she dismissed Calvin from his job without giving any reason and
notice. Thus, this immediate or instant dismissal without providing any notice is completely
considered as illegal in accordance to the Employment right act 1996 (Grundfest, 2010).
According to law, workers have power or right under s94 of the legislation to do not face
unfairly dismissal. This is considered as most significant right as it will normally be under an
action after firing that a former staff would complain that his fundamental right were breached.
First of all, it is unaccustomed for commencing legal proceeding against a manager while still
working for them. On the other side, secondly, some rights like right to give sensible notice
9

prior to dismissal could logically only be failed or breached when some one is fired from
working station.
In accordance to employment right act 1996, dismissal should be fair, although it might
also be harsh. Some of the reason that is laid out that a supervisor could dismiss are in s.98(2).
Key reasons of dismissing a worker are if it :
 associates with the qualifications or ability of the personnel for doing work of the kind
for which she or he was recruited by the employer to perform,
 relating to the conduct of the staff members,
 relates to retirement of the worker,
 is that personnel was redundant, or
 is that the worker can not carry on to regular work in the situation which he held without
dispute (Whether on his side or that of his manager) of a duty or limitation applied by or
under a legislation.
Thus, it can be said that above mentioned logical reasons should be considered at the time of
removing any employee. This has been noted that there are more solutions existed that can be
employed for resolving various commercial or business related issues. Few one are explained as
follows :
 Managers have to try to identify invisible information and facts associated with the cases
by employing a investigation team for finding out all the necessary realities and facets
that are not exposed to entire corporation. This should be done before eliminating or
firing any individual so that fair decision can be take place (Johnson, 2013).
 Employers requires to aggregate overall information and figures linked with incidences
that were occurred at working location like robbery in this case.
 Need of listening or focusing on the thoughts or opinions of Calvin.
Coming to the other scenario which is of Kelvin's father Dan. He had a small store which
get damaged because of fire. After this, he set up another one at new place and apart from this,
he also applied for insurance regarding fire. But during filling form he mentioned wrong details
due to confusion as there was a question asked by insurance firm that he had claimed for this in
the last two years. This should be noted that fire incidence has occurred before 23 months ago
and yet one month was remaining. But he said “No” as he was thinking that 2 years has passed.
Where as after opening new store, again accident of fire occurred and his whole property get
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damaged. On the other hand, insurance company refused to pay the amount of compensation.
Thus, there can be seen that due to misinterpretation, this refusal occurred from the side of
insurance enterprise. Thereby, Dan required to make some lawful solution that are mentioned
below :
 As whole case is complicated and there is fault of Dan due to his confusion, so he may
resolve entire issue outside the court and can avoid hearing of court as could be proved to
very expensive.
 But at the same time in order to make surety of his success, he can also knock the door of
court and request them for its recovery. Here in he can present all the evidences and
documents associated with accident and claim for their damages.
P 5. Justification
The above mentioned solutions is correct as it is helping in solving the issues easily. For
example, in the case of Calvin, employer need to concentrate on exploring hidden facts and also
should do inquiry with rest two people also who were present at office. She can take help of
research team for solving the whole case and finding out real culprit at the end.
On the other hand, as per the scenario of Dan ; due to misrepresentation's of data
insurance company refused to give compensation. Hereby he can submit evidences linked with
that incidence in royal court and appeal for right judgement. Besides this, he can also resolve
whole issue outside the tribunal and saves lot of money as well as time.
SECTION 4
P 6. (a) Concepts and benefits of alternatives conflict resolution
ADR is that method which help in solving conflicts and resistance among two parties and
it is used by different nations in maintaining concord among all people. Public has been adopted
this method which bring out peace in different countries. The plan assist in solving various issues
and problems by third party, judges and manage other methods. This will includes three
techniques and methods which are discussed as under:
 Arbitration - This is that tool where voluntary parties or any judge solve major issues
and disputes which arise among two parties. Every decision has been binding on two
organisation and it is enforceable by law. It can be compulsory or an individual can use
the judge. This is that method where party do settlement from outside party and not in the
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court room. Decisions may quicker, flexible and inexpensive. In the action proceedings, it
will remains privately and is not discovered to the people. Judges adopt skills and
knowledge for solving major disputes and conflicts (Mann and Roberts, 2011).
 Intermediator - In this method, mediator or third party help in resolving major issues
and problems of two parties. They also assist firm for settling some conflicts, does not
take decisions and review for the fair consent. Both parties are provides separate third
party and then manage all sessions. Group meeting is conducted and and mediator assist
them in resolving their issues and problems. Conflicts and disputes is easily solve various
problems with no complications, confidentiality and no matter is disclosed among the
public. The agreement is resolve by companies so they maintain good and effective
relationship among them.
 Negotiation - In this techniques of disputes, there is no third party or mediator which
includes in providing decisions that are related for solving major issues and conflicts. The
two companies contractor can settle their major disputes by using negotiation process.
They can discuss correct and applicable information, figures, records and documents for
making deal or agreement. By this, both the parties are satisfied for resolving major
issues and disputes with common understanding in proper manner. There are no clashes
and both the parties remain happy as intermediator which help in making accurate
decisions.
Benefits - The alternative disputes resolution can provide rational and appropriate decisions for
solving major issues and conflicts among two parties. There are various benefits of ADR that are
as under:
 Conclusion in minimum time - This method does not waste time of both the parties and
make proper decisions for them. An organisation do not have to wait for court schedule
and their conflicts are resolve in less time period. So they will became satisfied and
happy with their settlement by the procedures.
 Confidentiality - The another disputes and conflicts resolution decisions are not
disclosed among the public and solving the issues which occurs by intermediation or
arbitration. Both the parties have been happy and satisfied for their problems and
judgement are known by people. It will assist in smoothly run the business.
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 Limited person - This includes less number of individual according to the case which
resolved by third party or intermediator. Most of the people are involved and they can
take fast decisions without wasting any time. There are no difficult process for resolving
major disputes and conflicts. So both the parties are happy and satisfied by such
decisions. Also people adopt this method which help in expanding the business
operations and functions in proper manner (Nichols, 2012).
b) Recommend an effective solution for different business issues
In such situations that is described in above Antwon and Tyrell for doing some business.
At this time period, major conflicts and disputes are occurs between such two kind of persons.
They mainly try to resolve it but does not achieve for doing settlement. This reduces the
organisation functions and activities. Also these can not find out specific solution of their
conflicts. So they have to make decision for solving their case through use of arbitrator who can
provides rational and accurate decisions for such issues. He was professional and experts who
help in settle down both individual in proper manner. Arbitration technique can be useful and
beneficial for both the persons so it has different advantages. Firstly, it is quicker and faster tool
for resolving major disputes and conflicts for compared with the court case. Such method does
not involved with difficult process, activities and documents to solve issues. Also it increasing
the speed of procedures and they provide decisions for limited time period. This will reduces the
wastage of time which includes in court proceedings. People from different nations use such
methods for settlement of their conflicts and disputes. They also given references to their friends
and family members. So this techniques will became famous in all over the world. Some person
also adopt such process. This method is appropriate as it is cheaper with compared to court
proceedings (Robson, 2010). Both the person can resolve their issues and problems by using
arbitration and which involves less expenditure. They do not have to move towards court that
involves difficult process and takes more time. All parties are feel happy and satisfied for
spending most of the resources and they can get correct results or outcome. Parties are contended
which are delighted according to the case study that is not shown in media and there should be
no big issue. In the court, secret and correct details are discovered all other competitive company
that is not advantageous for both parties.
In arbitration process, language of arbitration are used. So it will assist person for easily
understand the reviews and opinion of the expert or judge. This does not included much time for
13

perception and listen judges decisions. The court official language is used in this case. Sometime
can not understand the judgement that are provided in this court. In arbitration, both the parties
will select highly trained and qualified judge in technical cases who can resolve major disputes
and conflicts in proper manner. This will assist in solving issues and problems and they can
reach to specific agreement through use of such methods.
CONCLUSION
From the above based report, it can be concluded that business law is an important part of
this civil governance that deals with the commercialised and business world. Some of the
standards or acts are planned for running enterprise decently and all firms which are present in
United Kingdom and even those companies also which import their products or services at UK
are bound to adopt such regulations. In addition to this, process of ADR has been explained in
this report which is a technique that help in resolving struggles and disputes between two parties
and it can used by various countries in keeping harmony among all masses. In this method, three
tool has been discussed that are utilised for doing the same such as Arbitration, Intermediator and
Negotiation. Apart from this, different other legislations such as occupational health and safety
act, Workers compensation, Harassment, Equal opportunities and employment act 19996 has
also been described in this assignment. These laws are assisting in maintaining peace and
removing corruption from society so that every one can survive easily and receives equal chance
to enhance their living standards.
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