Business Law: Understanding Legal Systems and Solutions

Business law
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Contents
Introduction...................................................................................................................... 3
Section 1– Nature of legal systems and legislation impacting businesses.......................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.......................................................................................7
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
developments............................................................................................................... 9
LO2 Illustrate the potential impact of the law on a business..........................................10
P3 Using specific examples illustrate how a company, employment, and contract law
has a potential impact on business.............................................................................10
M2 Differentiate and analyze the potential impacts of regulations, legislation, and
standards.................................................................................................................... 12
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 judgments...13
Section 2- Legal solutions to business problems...........................................................14
LO3 Suggest appropriate legal solutions to business problems....................................14
P4 Suggest appropriate legal solutions for a range of business problems e.g.
termination of a contract, rescue from insolvency and liquidation...............................14
P5 Provide justifications for the use of appropriate legal solutions.............................17
M3 Assess the positive and negative impacts of legal solutions to business problems.
.................................................................................................................................... 18
LO4 Recommend appropriate legal solutions based upon alternative legal advice
provided......................................................................................................................... 20
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P6 Recommend legal solutions based upon a different country’s legal system and/or a
different legal framework.............................................................................................20
M4 Compare and contrast the effectiveness of these recommendations...................22
D2 critically review and evaluate the use of appropriate legal solutions in comparison
with alternative legal advice........................................................................................23
Conclusion..................................................................................................................... 24
References.....................................................................................................................25
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Introduction
This assignment of business law describes the various provisions and law which are
regulated and followed by business organization of the United Kingdom. The laws are
very helpful for functioning and operating the business by employers and too aware of
such laws to the employees. In this report, the detailed description is given about the
sources of law and laws applied by the business organizations. The role of government
in the law making and how the provisions of common law and statutory law are
applicable on the justice courts are discussed. The developments and reforms made by
the government in legislation and its importance for the business organizations are very
effective. Further, certain laws are applicable to the Champion ltd and Amber ltd to
solve the disputes which are raised in the business organization. The insolvency laws
and Employment regulations are followed to solve the issues and recommendation is
provided to the employer to make the payment and sort out the liabilities. Apart from
that, the regulations of Alternative Dispute Resolution process are described and
companies may adopt this method to solve the dispute.
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Section 1– Nature of legal systems and legislation impacting businesses
LO1 Explain the basic nature of the legal system
P1 Explain different sources of law and laws that organizations must comply with
The sovereignty is parliament is the best element of the UK constitution, it was
developed in the period of Mary and William who said that parliament is sovereign. It is
the essential part of the UK constitution. In the words of Dicey, there are three basic
principles describe the sovereignty of parliament is a follows:
 It is the supreme law developing authority and enacts the statues and law on a
particular subject matter.
 No, any parliament is bound by the predecessor and any successor
 No authority or body involving a court of law can question on the law validity.
The sovereignty is divided into two authorities like legal and political sovereignty; the
constitution is the code of statutes which influences the allocations of functions, powers,
responsibilities of government officials and regulatory authorities which shows the
relationship with each other (Partington, 2016).
Sources of law:
Generally, sources of law are distributed into two parts:
Primary sources: It is the original and authoritative statements of law, the various kinds
of the sources are European law, case laws by courts, legislation and European law
developed by the Parliament.
Secondary Sources: The sources are law Journals, Encyclopaedias, parliamentary
and non-parliamentary textbooks and documents etc.
European law is developed in four manners like case laws, European laws, Legislation
and human rights. It is evaluated that Parliament has the supreme power for making the
laws and statues. The laws are described as follows:
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Case laws: The decision of a court is mentioned in the publications which are known as
law reports. It is the fundamental and basic sources of law. The development of the law
depends on the reliable reports of law that includes the facts, issues, decision and
principles and concepts of judgments were developed.
European law: The laws are developed with the European Union justice court. It is
regulated by the parliament of the country (Summers, 2013)
Human rights law: As per the European community Act 1972 it is the British law. The
human rights law is the domestic and regional law to coordinate the convention of
Europe and human rights.
Legislation: It is passed by the parliament of the country. It coordinates and codifies
the laws. Consolidations bring various statutes in one law without laying down any
changes for example Insolvency Act 1986.
International Court: It is the significant judicial organ of the United Nations that settles
the disputes between states and provides advisory opinion to agencies and authorities.
It consists the panel of 15 judge’s appointed by the Security Council and General
Assembly.
Laws compiled by the business organization:
 Companies Act 2006: This is the basic source of UK company law that codifies
the various existing principles of common law like director duties, provisions for
public and private companies.
 Finance Act 2017: It refers to the legislation of fiscal budgets developed by the
UK parliament that involves several provisions related to taxes, exemptions,
duties, and reliefs in once a year (Summers, 2013)
 Health and safety at work etc. Act 1974: It is the Act enacted by the United
Kingdom Parliament that describes the primary structure and authority for the
regulations, encouragement, and enforcement at employment level health,
welfare, and safety in the country.
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