Alternative Dispute Resolution Methods

This assignment examines the advantages of alternative legal solutions, particularly focusing on arbitration and mediation. It analyzes a case study involving two business owners, Awnton and Tyrell, who are seeking to resolve their disputes amicably. The emphasis is on understanding how ADR methods can preserve relationships, reduce stress, and lead to mutually beneficial outcomes. The assignment also evaluates the effectiveness of different ADR approaches in this specific context.

Business Law

TABLE OF CONTENTS

INTRODUCTION
The business law can also be referred as company law which consist of the legislations
and rules all the company must follow to run the business successfully. In UK, all the business
laws established under Companies Act 2006 (Jones, 2017). This report contains the sources of
law which has to comply with by all the organization. Further, it will show the role of
government in making the statutory and common law. This assignment will also show the
impacts of legislations and regulations in context with the given scenarios.
SECTION 1
a) Sources of laws (P1)
English law system is known as the common law which is basically followed in England
and wales and afterwards it is comprises of civil law. This law is framed by judges which are
sitting in the courts and formulate English law system. On the other hand statutory law is defined
as on law framed by the government of the nation and common law is term which have been
framed laws England. Furthermore, English law system is stated as a combination of criminal
law and civil law. This all are formulated for the benefits people who live in the nation.
Further there are different sources of law that is Legislative, Enactment constitution, Judicial
Decisions, Treaties etc.
The sources are considered as the origin of all the laws. The laws are developed in 4 ways
in UK i.e. common or case law, EU law, human rights law and legislation.
Human rights law
European communities Act 1972 was passed, just to ensure that it will be known as the
source of British Law. The act of human rights 1998 became domestic just to make sure that all
the conventions of Europe are incorporated related to human rights (Coulter and Hancké, 2016).
The higher courts are responsible for declaring the incompatible statute in relation to the human
resource act. The parliament is liable to make changes in any of the rules and legislations,
Common law
The rules which are made by the judges just to make sure that all the organizations are
following the same laws irrespective of their shape and size. The priority was to develop such
kind of system which will be common to all and must cover all the circumstances. All the
companies have to create the organizational hierarchy and have to operate under these
regulations. The final decision will be made by the higher court and that will not be adjustable.
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European Union law
The domestic laws are working along with these laws. The European community act
1972 was signed by the government of UK and they have agreed on all the terms and conditions
put up by EU. This particular source is reducing the decision making for the domestic or local
laws (Rendon, 2017). Two treaties have been used in developing these laws. One is treaty of
European union and second is the functioning treaty of European union.
Legislations
The prime source of any law is their legislations. It will be the combination of all the
rules and regulations which is declared by the legal authority. These laws will be having some
statutory instruments which are order of council and Bye laws (Casey, 2016). The rules have
been created after the formation of bill. These bills have to be submitted in the parliament and
after the approval of all the parties, it will be declared as law.
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b) Role of government in law making (P2)
The government of UK is dependent on depending on three core functions. One is to pass
the laws, second is to monitor all the acts made by the companies and third is to present the
citizen's interest. Before making any law, the government has to develop a bill in front of the
parliament. The parliament will be having both the houses, the ruling one and the opposing one.
The bill have to pass through both the houses. At first reading, the bill will arrive to the house. In
second reading it will be sent to all the MP's for reading, evaluating and examining (Morris,
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Illustration 1: sources of law
sources(Sources of law 2017)

2016). In third reading the debate will be conducted in the parliament where all the pros and cons
will be discussed on that bill. The voting will be conducted and after getting the majority the bill
will go to the house of lords. The final amendments have been made here and finally the Queen
will be giving the royal assent and the bill will be declared as the statutory Act of parliament.
Either the common law or statutory, both are necessary for making the law. Common
laws are made by the judges at that instant and these are very instructive ones. These will follow
the procedural operational level. The statutory law are already written laws and they are
perceptive in nature (Partington, 2016). The local state or federal government is passing these
laws, so it will be common to all the organizations. These are made just to solve the issues and
fulfil the needs and demands of the local citizens. These laws will be covering all the areas which
are excluded by the case laws. The research analysis is being done for making the common law.
The decisions made by the higher court will be final over the decisions made by the lower courts.
M1. Effectiveness of legal system
Legal systems of UK are very essential in increasing the performance of the
organizations economically. The system will be having case managements, staff monitoring and
evaluation and the training of judges which will be very essential in improving the effectiveness
of the decisions made by the court (Llewellyn, 2016). To increase the effectiveness of the legal
system, the organization have to create more work friendly and positive environment, so that the
confidence among the employees can be increased.
D1. Critical evaluation
The final evaluation will be developed on the basis of the implementation of these laws.
The laws have been used against the local public by many government organizations. The local
people are not much familiar about the current laws. Therefore, it is essential that parliament
must ensure that the passed bill will not have any negative influence on the citizens. Rules,
regulations and laws are the three main issues which may create some uncertainties in the
framework of the organization (Davey and Battersby, 2016). Several approaches have been used
so that the comprehensive legal framework can be created. The aim is to watch the reactions of
the jurisdiction. At the same time another target was to reduce their efficiency in decision
making by reducing their effectiveness.
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SECTION 2
a) Employer's legal obligations (P3) Occupational health and safety 1974: According to the work health and safety Act
1974, the employers have to provide the safe working environment for their employees,
so that the risks can be minimized. The employer must find out the hazards which can
occur at the work place (Suliman and et.al., 2016). He must determine the measures by
which those dangers can be controlled. All the measurable controls must be reviews
regularly so that in case of emergency those can be utilized properly. Worker;s compensation: All the employees of the organization must have a
compensation insurance. According to the worker's compensation and rehabilitation
amendments act 2003, the employer must provide the insurance policy in the first 5
working days, so that if the worker gets injured at the time of working the compensation
will be covered (Kellner and et.al., 2016). If the organization will not provide the
insurance, then legal actions can be taken against them. Equal opportunities: All the opportunities must be equal to all the employees, so that
positive workplace environment can be maintained. The employer must provide the
wages and working hours in the equal manner without being biased. This will make the
workers happy as well as it will help in improving their performance.
 Harassment: The employer have to ensure that the workers are not suffering from
harassment by their senior employees (Haag and Sund, 2016). Victimising the
employees in front of other workers is not less than a crime. Therefore, the employer
have to ensure that no physical violence is taking place against any of the worker in the
organization.
b) Employment and contract law
The girl was working was employed to cook fries at a frying range. According to
workplace health and safety Act 2010, the equipment used at the workplace must be well
maintained and risk free, so that it will not harm any worker while doing their job. The employer
have to make sure that all the workers are using the right working practices, so that no harm will
take place at the work place (Porter, 2016). The water was leaking from the ice-making machines
and the team leader was not looking for the safety at the workplace. The agreements made by the
employees are either confidentiality agreement or non-confidentiality agreement. The prime
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consideration is related to the health benefits of the employees. The Employers' Liability
(Compulsory Insurance) Act 1969 (c 57) is a UK Act of Parliament that requires that employers
carry insurance against the personal injury of their employees.
These kinds of incident will put negative impact on the confidence of the workers. They
will not feel that the workplace is safe for doing their job. The employees may leave the
organization or will not do work only. This will reduce the performance of the company as well
as it will decrease their market reputation and quality of the products. The team leader have to
make sure that they are using all the safe working equipments at their place so that it will not
harm any of the employees (Paolella and Durand, 2016). At the same time it will not produce
defective products which will reduce the consumer's satisfaction. The girl can claim for the
compensation of her harm. The company have to take the full responsibility to provide
compensation to that girl. They also have to ensure that they are using safe working practices, so
that in future such type of incidents will not take place.
M2. Impacts of regulations and regulations
According to the health and safety act 1974, this incident shouldn't have occurred. The
safety of the worker's should be the first priority to the organization. This will be having negative
impact on the standard of the company. The employees will also not feel safe there so they may
leave the job. It will reduce the company's image in the industry. The labour law, regulatory law,
tax law, reporting law will be having their impact on the performance of the organization. The
impact of regulation is that in organisation employees are need to treated as per the rules and
regulation. Along with this, if two party enter into a contract then they need to follow the rules
and regulation. However if any party breach the rule then other party can sue in court
SECTION 3
P4. Legal solutions
The wrongful termination is the legal phrase where the employee can be terminated
without his/her fault. The employment rights act 1996 is the one which regulates all the rules and
legislation related to the termination of the employees. In the given scenario 1, Calvin was
working there for more than 4 years as a designer. Donna the employers dismiss Calvin because
she found £100 was missing. Donna was not having any proof that Calvin was the victim. The
legal solution for the given scenario is that Calvin must lodge a complaint against Donna for
terminating him from his job (The justice system and the constitution, 2017). There are few rules
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of the redundancy procedures which has to be followed if the owner wants to terminate any of
the employees. He has to pay the 3 months salary or the compensation amount in advance to the
worker. Notice period has to be given so that in case of terminating the worker. According to the
trade union and labour relation act 1992, the employer have to give some notice period, so that
the worker can manage his condition and look for some new job. Calvin can complaint against
the decision of Donna and if he is not found guilty, then he can take his job back.
In the second case the insurance company is refusing to pay the money because the claim
was made before the completion of 2 years. Kevin's father Dan has to find out the contract paper
first where it is written that the claim can only be made after the completion of 2 years. The legal
solution for this problem is that the Dan have to convince the insurance company that it was not
done intentionally (Business law and regulation, 2017). He told more than 2 years because he
was unaware about the current time, which was only 23 months. After checking the papers he
came to know that the claim was made before 2 years. Therefore, he has to tell the company to
pay the claim so that he can recover the money he lost due to the fire. The insurance act 2015 is
the new form of the act made in 1906. It was mentioned in this act that if the damage occurs due
to fire, then the insurance company have to pay the claim. Dan can use this act, so that he can get
his money back.
Furthermore, legal solution can be taken in contract if any party breach the contract for
instance, if any party not ready to fulfil the terms and condition of contract then other party have
right to sue in court or ask for compensation.
P 5. Justification of solutions related to present cases
According to the first scenario of Calvin a fashion designer who was working as an
employee under Donna's firm for about last four years was asked to dismiss from his job. Calvin
was terminated because Donna thought he robbed her £100 without even asking him for any
justification. However, without any proof of robbery Donna insulted Calvin in front of other
employees and made him feel guilty. On the other hand Calvin must sue Donna under law for
making him feel betrayed even when he was guilty. Calvin must be assigned back with his job
with complete respect and dignity because he was not even given a chance to speak and make his
part clear in front of Donna. According to laws it has been dictated that without asking for any
justification and without any proof an employee should never be blamed and insulted.
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Furthermore, for more justification of employee rights we can refer number of case studies such
as:-
'Christian pastor loses unfair dismissal tribunal'
http://www.bbc.com/news/uk-northern-ireland-40817006
According to the second scenario Dan father of Kevin who suffered loss due to fire in his
store must file a case against insurance company for not paying money to overcome the loss.
Laws are generated of insurance act 2015 under which it has stated that insurance company has
to pay money for loss occurred due to fire. Therefore, dan must sue that insurance company
against law for not paying him money for the loss occurred due to fire. Dan must act as an active
citizen and should demand for its claim against insurance company. There are many such cases
such as :-
Legal application:
Firms fighting Nathan Carman’s boat insurance claim
http://fox61.com/2017/08/03/firms-fighting-nathan-carmans-boat-insurance-claim/
m 2 positive and negative impact of legal solutions
Merits of legal solutions:-
 It reduces the danger and uncertainties of employees.
 It protects the rights of guilty persons.
 Reliable judgements are taken in regard to the guilty persons.
Demerits of legal solutions:-
 Laws are generally rigid and doesn't always protects the needs and rights of people.
 Complex implementations are framed under act of law.
D 2 appropriate legal solutions in comparison to legal advice.
Accordance of first scenario when Calvin was terminated by Donna, at that time Calvin
must have justified herself rather than silently leaving the workplace. Donna insulted Calvin in
front of every other employees and made her feel betrayed at that time Calvin must have asked
her for any proof regarding which Donna was blaming her whereas in second scenario, dan must
have gone through all the terms and conditions effectively before signing the insurance papers.
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However, he must have checked insurance papers before asking for claim in the insurance
company regarding loss due to fire.
Section 4
a. Concept and benefits of alternative dispute resolution process.
This is an effective solution which provides the opportunity regarding working through
disputes. However, it is less expensive and faster than compared to court laws. Therefore,
benefits and concept of alternative dispute resolution process are:-
Saves money:- money is saved under this act because a person doesn't have to hire any lawyer,
experts and moreover has no loss of work time.
Put control over parties :- affected parties are given chance to speak and confront their disputes
without hiring any lawyer to speak for them. However, it is very effective process because a
person can confront his emotions itself without having any middleman.
Flexible and creative :- parties can confront his/her problems and can demand for any prteferred
rectification from the opponent party.
Produce better results:- this resolution process producers good results up to 85%.
Saves time :- resolutions are provided within a week or a month rather than extending it to years
like court laws.
Keeps private disputes private :- private disputes are not confronted among several people
because only those persons can come who are invited rather than court.
Access towards justice :- those persons who doesn't have much money to invest among legal fees
are diverted towards this resolution act which is even accessible towards justice.
Reduces stress :- stress level of parties are generally reduced in comparison because under court
laws a person has to present on time and has to pay legal fees every time.
Preserve relationships :- relationships are not broken rather kept safe because unlike court
disputes people cooperate among each other and finds resolutions.
More satisfying :- all the participants under alternative resolution provides high level of
satisfaction if compared among court.
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b. recommendations for alternative legal solution
Under the present scenario Awnton is an owner of large business firm and had conflicts
among Tyrell who is the owner of another entity. There aim is to resolve the issues among each
other and relatively demands for such resolutions which doesn't create dispute among each other
and wants to start up with another business together in the future. Two effective methods which
can be opted to resolve there issues are:-
 Arbitration:- under this method, third party person will go through towards the case and
finds effective solution to resolve those disputes. However, while making the solution
both parties are not involved to take any decision.
 Mediation :- under this method, issues are resolved easily with the help of mediator.
However, for generating resolutions both parties are involved in providing certain
suggestions.
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Illustration 2: alternative dispute resolutuion process
(Sources:Alternative dispute resolutions 2017. )

M 4 comparison of both recommendations:
Under this case study adopting mediation method would be more effective if compared
among arbitration because here both the parties aim is to resolve every dispute and conduct
future business together. However, these parties must be given chance to give their suggestions
regarding solution of dispute occurred. As compare to this in meditation issues can be solved
easily with the help of mediator. Along with this, for generating resolutions both parties are
involved in providing certain suggestions.
D 2. evaluation of the sue of appropriate legal solution advice.
This case doesn't require any legal advices rather seeks for an effective solution to
eradicate dispute among both the parties. Legal advice can create conflicts among parties and
destroys their relationship which can affect the entire firm and will incur losses for both the
entities. However, implementation of legal solutions is required to resolve disputes among each
other. There are many problem which can take place due to sue in court such as contract can be
break or party who breach the contract rules need to pay compensation. Asny party can sue in the
court if another party breach the contract not follow the rules of contract.
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