Business Law: Understanding Legal Solutions for Business Problems

This report explores the fundamental nature of the legal system in the UK, focusing on the sources of law and their impact on business operations. It delves into the role of government in law-making and examines the application of statutory and common law in justice courts. The report further analyzes the potential impact of company, employment, and contract law on businesses, using specific examples to illustrate their implications. It also suggests appropriate legal solutions for business problems such as termination of contracts, rescue from insolvency, and liquidation, providing justifications and assessing their positive and negative impacts. The report concludes by recommending alternative legal solutions based on different legal frameworks and critically evaluating their effectiveness in comparison to traditional legal advice.

Business law
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Contents
...........................................................................................................................................1
Introduction..........................................................................................................................3
Section 1: Nature of legal system and legislation impacting business..............................4
LO1-Explain the basic nature of the legal system..........................................................4
P1-Explain different sources of law and laws that organizations must comply with.. 4
P2- Explain the role of government in law-making and how statutory and common
law is applied in the justice courts..............................................................................5
M1-Evaluate the effectiveness of the legal system in terms of recent reforms and
developments..............................................................................................................6
LO2 Illustrate the potential impact of the law on a business..........................................7
P3 Using specific examples illustrate how company, employment and contract law
has a potential impact upon business.........................................................................7
M2 Differentiate and analyse the potential impacts of regulations, legislation and
standards....................................................................................................................8
D1-Provide a coherent and critical evaluation of the legal system and law, with
evidence drawn from a range of different relevant examples to support judgements.
....................................................................................................................................9
Section 2 – Legal solutions to business problems..........................................................10
LO3 Suggest appropriate legal solutions to business problems..................................10
P4 Suggest appropriate legal solutions for a range of business problems e.g.
termination of contract, rescue from insolvency and liquidation...............................10
P5 Provide justifications for the use of appropriate legal solutions..........................11
M3 Assess the positive and negative impacts of legal solutions to business
problems...................................................................................................................12
LO4 Recommend appropriate legal solutions based upon alternative legal advice
provided........................................................................................................................13
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P6 Recommend legal solutions based upon a different country’s legal system
and/or a different legal framework............................................................................13
M4- Compare and contrast the effectiveness of these recommendations...............14
D2 Critically review and evaluate the use of appropriate legal solutions in
comparison with alternative legal advice..................................................................15
Conclusion.......................................................................................................................16
References.......................................................................................................................17
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Introduction
It is important for all businesses to know about the laws applicable as it will help in
managing business operations more effectively and avoid any hindrances. There are
different laws applicable on business organizations including employment laws,
licensing laws, health and safety laws, etc. It is necessary for all business organizations
to take precautions to ensure that they are not violating any applicable laws and for this
purpose they must seek advice from legal professionals. In this report, legal advice has
been given to companies for resolving their business problems. This report also
includes various sources of English laws. All the laws applicable in UK have been
emerged from different sources such as Legislature, Precedents, European Union.
Such sources are explained in detail in this report. Further, it is important to remember
that the legal dimensions of business like finance, data protection, and others, must be
managed. Therefore, in this report different laws applicable on business are also
discussed.
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Section 1: Nature of legal system and legislation impacting business
LO1-Explain the basic nature of the legal system
P1-Explain different sources of law and laws that organizations must comply with
The statement made by the Queen every year in November month, in the speech the
Parliament Plans and government are discussed with the aims and objectives. Queen
pronounces the speech from House of Lord and it is witnessed by society of the
country. The Parliament sovereignty has the supreme power to make the law and order.
It has some features such as:
 Laws are passed by Parliament on any matter.
 The functions and operations are regulated by Parliament.
 No any other court has right to overrules the decision of Parliament.
Sources of law:
The legal system of the Unite kingdom is divided into four types, legislation, European
law, Human rights law and Common law. The other one is custom but is not described
from legislation and common law incorporated the custom. It is analysed that Parliament
has authority to make the laws.
Legislation: It is the fundamental source and it includes the regulations by competent
authority. The parliament legislation created new laws called as Acts of Parliament
which modifies and amends the law (Besson and d'Aspremont, 2017).
Common laws: Judicial precedents is based on the doctrine of stare decisis and
connected with case law jurisdictions. Decision is provided by court judge’s plays
significant role as the source of law.
Customs: A normal custom is not developed in written manner but practice is defined it
is continuing for a long period of time after that it becomes the Law.
International court: This court solves the dispute between members and states and
gives advice to regulatory agencies and organs. It includes 15 judges panel that are
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selected by general assembly and Security Council for the nine years period (Davies,
et. al., 2016).
European court: It has the highest authority of European Union for the issues related to
European law union. It interprets the European law and also ensures the same
application of order and law in all places of the Europe.
Roles:
Barristers: The person has right to present their case in from of the Court and they are
appointed as legal representatives by the parties. They also provide legal advice to
lawyers and professional advocates sometimes (Bright Knowledge, 2018).
Solicitors: The professional person gives advice to certain services like creating legal
documents, appoint lawyers, legal advice etc.
Judges: They are very experienced person having wider knowledge in law and order
and it’s also ensures the correct interpretation of statutes. The final judgments are given
by court judges.
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P2- Explain the role of government in law-making and how statutory and common
law is applied in the justice courts.
Government has power to make the laws and order. Before making the law, particular
stages are followed to create the law. The permission of House of Lords is taken to
frame the laws. The laws and order of the country are commences from bill that are
provided by interested parties. There are certain kinds of bills like private bills, Public
bills and Private members bills. The white paper is the nest step to create the laws that
covers several reform places.
 First reading: At this step, the bill is first read in House of commons.
 Second reading: After reading the bill, the complete discussion is conduct over
it.
 Committee reading: The full investigation of the bill is done after the discussion
by various experts gives their advice (SOAS Library, 2012).
 Report stage: At this step, the discussion is further made if any changes and
amendments are considered.
 Third reading: The bill is proposed again where members can discuss and vote
and permits or avoid the legislation in actual manner. After passing the decision
on legislation then bill transfers to the House of Lords
 Royal assent: It is the ending stage where the discussed bill can becomes the
law and order. There is an essential requirement for the permission of Queen to
develop the law.
Common law: It is a continuing reform nature and its legal principles are developed
under the court judges. The judgments are given by judges according to same action
undertaken earlier on same case dispute. The nature of case laws is very common and
its structure is made in all jurisdiction lie England and Wales. In criminal case, the
House of Lords a criminal division court has power to decide the case according to
intensity of crime.
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Statutory law: The laws are developed in written manner and described in several
regulatory agencies. The nature of law is different from administrative and common law
as per court decision. Public and private Acts are different parts of the country that are
covered in law framework. It is applicable in justice courts and it’s also beneficial for
regulating the community and society in future cases (The judicial office international
team, 2016).
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M1-Evaluate the effectiveness of the legal system in terms of recent reforms and
developments
There are certain modifications are developed in legal system of the country for making
reforms by the coalition administration given by David Cameron. for example,
Replacement of supreme court from House of lords, creation of tribunal service and the
merger of certain court services, development of Judicial appointment Commission etc.
the certain other reforms are made as per the time changes and increasing number
criminal activities also. To reduce such crime rate, the establishment of information
technology and cyber security legislations are developed. To maintain the equal
behaviour with all employees Equality Act 2010 is developed. The regulation of this Act
reduces the direct and indirect discrimination, harassment and victimisation from the
business organisation. The strict regulations provide that employer is liable guilty if any
misconduct occurred with employees (Summers, 2013).
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LO2 Illustrate the potential impact of the law on a business.
P3 Using specific examples illustrate how company, employment and contract
law has a potential impact upon business.
Duties and responsibilities of JPM Publishing directors in accordance with Companies
Act 2006:
 Directors have to act as per the powers governed under the Companies Act.
 directors of the company is responsible for success and growth of organisation
 Every action taken by directors must be within the due diligence, skill and care.
 Directors can take independent judgements to take the decision.
 Directors are held guilty when profits are received from third parties.
Health and safety regulations: As per Health and safety at Work Act 1974, it is
provided that human resources are the essential assets of the organisation, so it is
necessary to protect the health, safety and welfare of employees. Every employer in
organisation must adopt better facilities for the protection f employees from dangerous
activities at employment. Employer will provide loss and damages to employee if any
accident takes place with them during the course of employment. The directors of JPM
Publishing are responsible to establish the advanced facilities for employee protection
from dangerous activities at workplace. As the nature and structure of company is
changed by public limited so there is more requirement of protection (Hart and Green,
2012).
Equal opportunity regulations: According to the Equality act 2010, it is prohibited
when any member conducts wrong behaviour by harassment, direct and indirect
discrimination, and victimisation etc with employee. discrimination can be done at
training level, employment, education system etc in the manner of age, gender, caste,
religion etc. it s the primary duty of employer to behave with well manner and equal
treatment to all employees working in the organisation. In JPM publishing there will be
number of employees so directors are responsible to treat all employees with equal
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manner. When any wrong conduct takes place with any of the employee then employer
is held guilty (Davies, et. al., 2016).
General and data Regulations: The regulation is created by European law as per data
protection and safety of all people in European Economic area and European Union.
The goals of the regulation are to secure the data and information of citizens and
resident people of the country at the local and international level. According to the
European commission, the professional and personal information of all directors,
members and employees are protected. The JPM Publishing has to adopt such
measures to protect the documents and records of the company from unauthorised
access from third party.
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M2 Differentiate and analyse the potential impacts of regulations, legislation and
standards.
The certain legislations are discussed above that creates a potential impact on business
organisation. The Health and safety at work Act 1974, Equality Act 2010 and general
data protection Regulations provides that JPM publishing have to follow standards of
the legislation. With the implementation of regulations the employer has to follow all
ethical principles in the business organisation. It increases the relationship between
directors and staff members by providing them equal treatment. The employees get
better facilities for their safety at workplace from hazardous diseases and critical
industrial activities. It will also provide the security and privacy of personal and
professional information of employees as well as directors from any third party access
(Hart and Green, 2012).
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D1-Provide a coherent and critical evaluation of the legal system and law, with
evidence drawn from a range of different relevant examples to support
judgements.
The legal system of the United Kingdom is very flexible and sometimes so complicated
for the business organisations. The laws and order are depends on the legislation of
parliament developed by the Government, the crown and judiciary. The decision given
by the Supreme Court is last and final and no any court has right to overruled its
decision. The landmark cases, case laws and precedent cases play a significant role in
providing the decision by judges and final judgments. There are certain benefits and
disadvantages of strict laws and it provides more restriction on companies (Harris And
Krueger, 2015).
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Section 2 – Legal solutions to business problems
LO3 Suggest appropriate legal solutions to business problems.
P4 Suggest appropriate legal solutions for a range of business problems e.g.
termination of contract, rescue from insolvency and liquidation.
Case 1
Issue
Champion Ltd. is a company located in London who is paid in cash to shift from its
current location and make way for the construction of stadium. The company after
accepting the payment moved to a new location and due to such change, it lost its
customer base. Consequently, the company faced financial crisis and therefore was
unable to pay money due to its creditors and other banks and financial institutions. The
creditors of the company are now threatening it that they will move to the court for
winding up petition. The company is seeking legal advice in relation to the powers that
the creditors have for presentation of petition for winding up.
Rule
Companies Act, 2006 and Insolvency Act, 1986 are applicable on companies in
cases of indebtedness and winding up. The creditors of company can apply to the court
for winding up after giving a statutory demand notice to the company which shall be off
at least 21 days. After the expiry of this notice period, the creditors have rights to apply
to court for winding up. The winding up of any company can be carried under two
procedures namely voluntary winding up and compulsory winding up. Under the
procedure of voluntary winding up, the operations of the company come to an end after
the directors, shareholders and creditors of the company decide to wind up its
operations by passing a resolution. On the other hand, under compulsory winding up of
operations of company, the court passes an order for winding up the operations of
company (Faúndez, 2016).
Application
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Based on applicable rules and procedures, if the creditors intend to apply to court for
compulsory winding up of company's operations, they must give 21 days-notice to the
company for payment of debts. If the company fails to make the payment due to
creditors during notice period, then the creditors may present a petition in court of law
for winding up of company (Posner, 2014).
Conclusion
On basis of applicable laws and facts of the case, it can be concluded that the creditors
of company have a right to present a petition for winding up of company. To avoid the
consequences of such petition, the company must enter into an agreement with
creditors for voluntary winding up of company or must pay the creditors during the
notice period. The company may also enter into an agreement for payment of debts to
creditors on a later date.
Case 2
Issue
Mr. Anderson, CFO of Amber Ltd. gave it a notice of resignation as he has received a
better offer from its competitor Beta Ltd. The employment contract of Mr. Anderson
states that at least 12 months-notice must be given by either party if they intends to
terminate the contract. He gave a month notice to the company for resignation. As a
consequence of which the company faced problems. The company now wants to sue
Mr. Anderson for not complying the terms of contract. The company seeks legal advice
that whether there are possibilities of getting an injunction against Mr. Anderson.
Rule
The rights of an employee and the laws relating to contracts under UK laws are given in
Contracts (Applicable Law) Act, 1990 and Employment Rights Act, 1990. Under
these laws, the notice that is required to be served by employers and employees at the
time of termination of contract is specified. The laws states that at least a week’s notice
must be served when employee is employed for less than 2 years but more than one
month. It further states that at least one week notice for each year of employment must
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be served in case the employee is employed for less than 12 years but more than 2
years. The notice of at least of 12 weeks must be served if employee is employed for
more than 12 years. The laws further states that when the notice required under the Act
is for lesser period than the requirement under contract of employment, then, the terms
of contract of employment hall supersede (Posner, 2014).
Application
Based on provisions of the Act and the terms of contract of employment, Mr. Anderson
is required to serve the notice of resignation for period as required by contract i.e.
twelve months. Therefore, it can be said that he has beached the terms of contract and
the company can file a suit against him in court of justice (Dau-Schmidt, et. al., 2016).
Conclusion
From the study of facts of case and the application of laws, it can be concluded that
there are possibilities that if the company sues Mr. Anderson in court of law then there
are possibilities of getting an injunction against him. The company may also consider
resolving the dispute with Mr. Anderson through Alternate dispute Resolution (ADR)
Methods.
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P5 Provide justifications for the use of appropriate legal solutions
Case 1
The company in given case scenario was suggested to enter into an agreement with the
creditors for voluntary winding up of company. The company must ensure that such
agreement with the creditors is signed as soon as the notice is served. Through
voluntary winding up, the company shall be able to save itself from proceedings in court.
Th company shall also be able to buy some time so that it can prepare itself for
minimizing the loss and yield better returns for company. The directors of company shall
also be able to appoint a liquidator of their own choice. When the winding up is carried
by order of court, the circumstances become very stressful for the company and its
directors. Such stress can be reduced by winding up the company voluntarily.
Moreover, the reputation of company can also be protected to some extent. Therefore,
winding up the company voluntarily is best legal alternative available for the company
(Wilson, et. al., 2014).
Case 2
In given case scenario, Amber Ltd. is recommended to file a suit against Mr. Anderson.
He has committed breach of contract by serving a notice of lesser period than required
under the contract of employment. The facts of this case are similar to facts of
Nationwide Airlines (Pty) Ltd v Roedinger, In this case, Mr. Roedinger was employed
as a chief pilot in Nationwide Airlines. He gave a notice of resignation to the company of
a period lesser than required under the contract of his employment. The company filed
a case against Mr. Roedinger and was able to get the orders of specific performance
against him. Based on facts of this case and decision of court, it can be concluded that
there are possibilities of getting an injunction against Mr. Anderson (Wilson, et. al.,
2014).
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M3 Assess the positive and negative impacts of legal solutions to business
problems.
Positive Impacts
Case 1
If Champion Ltd. decides to voluntary wind up the company with creditors, this
procedure helps the company to avoid any further court proceedings. The directors and
company will also gain some control over the sale of assets and shall also be able to
get best possible prices, if they voluntary wind up the company. Further, it shall be able
to repay all the debts of company. In the case of Amber ltd it is goo to file the suit
against Mr. Anderson to breach the employment contract. The employees will not do
such conduct in future if such kind of action is taken place towards the employee.
Company is also liable to receive the loss and damages incurred (Dau-Schmidt, et. al.,
2016).
Negative impacts:
The process of creditor’s voluntary agreement is very large and based on investigation,
when any deception and fraud is incurred really, then directors are liable for it. The
liquidator fees are also high to solve the case as per nature and transactions of the
organisation. In the second case, the company have to prove the legality of 12 month
notice time period which is not suitable for employees. When company is not able to
prove the validity then legal; consequences will arise (Wessing, 2016).
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LO4 Recommend appropriate legal solutions based upon alternative legal advice
provided.
P6 Recommend legal solutions based upon a different country’s legal system
and/or a different legal framework.
Amber ltd intends to start proceedings against Mr Anderson who is the CFO of company
but he resigned without providing the notice as per time period according with the
employment contract made between the employee and company. So Amber Ltd takes
an action whether in court proceedings and Alternative dispute resolution program.
Alternative dispute resolution process is the best method to solve the issue between
two or more parties by appointing the third person having speck knowledge and skill in
particular area. The number of methods is there such as arbitration, conciliation,
mediation, adjudication, early neutral resolution. The decision passed by third party after
the mutual consent and with full cooperation and support of parties. The parties have
right to take further action if they are not agreed with third person decision.
Arbitrator: In this method a third party is appointed named as arbitrator who present
considers the arguments and evidence of both the parties. The decision given by
arbitrator is final and it is called as award. It is of two kinds binding and none binding
agreement, in case of non binding agreement the parties have right to take further
proceedings in court (Ware, 2016).
Mediation: The third party called as mediator who helps a supports disputed parties in
solve the disputes with full assistance and cooperation. Parties have right to reach the
result of proceedings. The decision given by mediator is usually not binding and it grows
with certain negotiations.
Early neutral resolution: In this process an evaluator is selected as credible and loyal
person who can oversee the proceedings and presented arguments. He gives the final
and last judgment after listening the evidence and arguments of both the parties. He
gives the non binding advice on positive and negative aspects to every party (Moses,
2017).
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Benefits of ADRs:
 It consumes less time to solve the dispute a compare to court proceedings which
takes more time and money.
 It saves the fees which are payable to lawyers and experts in litigation.
 the method provides the opportunity to present the evidence views, arguments,
to third person at reach the final decision
 It maintains the relationship when parties want it to continue for the long period of
time.
 The third party keeps the confidential information secret which are published in
court proceedings (Ware, 2016).
It is considered that all methods are reasonable of Alternative dispute resolution
process and Amber ltd and Mr Anderson can follow of the method. In this case,
Arbitration is the best suitable method to solve the case; if parties are not agreed with
Arbitrator then they can go for court proceedings.
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M4- Compare and contrast the effectiveness of these recommendations.
Both the above mentioned methods are suitable for solving the case of dispute parties.
The parties can follow any of the method to but it is good to adopt the alternative
dispute resolution process as it takes less time and money to solve the case as
compare to litigation. Company has right to take the action against Mr Anderson for
breach of employment contract. In arbitration, arbitrator will provide the decision and in
litigation the judicial person has right to give the final judgment on case. The decisions
given by court are last and final and it binds to all parties (Rasch And Tsebelis, 2013).
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D2 critically review and evaluate the use of appropriate legal solutions in
comparison with alternative legal advice.
In both the case scenarios, champion ltd was not able to make the amount to liabilities
and debts so it gained a notice of liquidation. company considered the voluntary winding
up process as com pare to compulsory winding up and solved out the case voluntarily.
Mr. Anderson breached the terms and conditions of employment contract by not serving
the notice according to time specified in contract. The above cases can be solved with
alternative dispute resolution process to save the time and money of parties and
company as well. It will also protect the relationship of the parties for further reference
(Partington, 2016).
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Conclusion
Through the study of this report, it can be concluded that the businesses must comply
all applicable laws for reduced business problems and improved operations. Such
compliance also helps the company in maintaining better public relations and higher
retention of employees. The proper compliance of various rules, regulations and laws
help the businesses take better advantages of benefits they offer. In this report, various
sources of English laws have also been discussed which helped the businesses in
better interpretations of such applicable laws and regulations. Legally astute companies
are better equipped to convert the hindrances and constraints into opportunities
because they recognize enabling aspects of law and value of compliance. Here,
Champion ltd. is recommended to wind up the operations of company as it is indebted
to creditors and has no money to repay those debts. Further, Amber Ltd. is
recommended to sue Mr. Anderson for breach of contract. Both the companies are
recommended best legal alternatives that can help them in resolving their business
problems. The dispute can also be resolved through Alternate Dispute Resolution
(ADR) methods.
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