Business Law: Understanding Legal Systems and Solutions

Business Law
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Table of Contents
Introduction...................................................................................................................... 3
Section 1– Nature of legal systems and legislations 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.............................................................................6
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
developments............................................................................................................7
LO2 Illustrate the potential impact of the law on a business.........................................8
P3 Using specific examples illustrate how company, employment and contract law
has a potential impact upon business........................................................................8
M2 Differentiate and analyze the potential impacts of regulations, legislation and
standards.................................................................................................................10
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.
.................................................................................................................................11
Section 2 – Legal solutions to business problems.........................................................12
LO3 Suggest appropriate legal solutions to business problems.................................12
P4 Suggest appropriate legal solutions for a range of business problems e.g.
termination of contract, rescue from insolvency and liquidation..............................12
P5 Provide justifications for the use of appropriate legal solutions..........................14
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M3 Assess the positive and negative impacts of legal solutions to business
problems..................................................................................................................15
LO4 Recommend appropriate legal solutions based upon alternative legal advice
provided...................................................................................................................... 16
P6 Recommend legal solutions based upon a different country’s legal system
and/or a different legal framework...........................................................................16
M4 Compare and contrast the effectiveness of these recommendations................17
D2 Critically review and evaluate the use of appropriate legal solutions in
comparison with alternative legal advice.................................................................18
Conclusion..................................................................................................................... 19
Reference.......................................................................................................................20
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Introduction
The effective legal system is established with a view to regulate and control the
practices in the business environment of the United Kingdom. The effective legal
system requires effective laws which are derived from a number of sources in the U.K.
by chief authorities. This assignment includes various laws, the provision of which is to
be satisfied by the management of the company. Different case scenarios are provided
in the assignment, the solution to which is to be provided in accordance with the laws
operating in the United Kingdom. For solving issues between the parties, alternate
methods can also be adopted which are termed as Alternative Dispute Resolution.
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Section 1– Nature of legal systems and legislations impacting businesses
LO1 Explain the basic nature of the legal system
P1 Explain different sources of law and laws that organizations must comply with
Every year, in the U.K, a speech is delivered by the U.K.s queen from the throne of one
of the houses of the Parliament i.e. the House of Lords. This speech is delivered for
explaining the operating and functional activities of the chief authorities of the nation i.e.
the Parliament and the Government (Sparrow, 2015). Moreover, the plans and the
strategies of the authorities for the coming session are also exchanged with the
audience of this speech.
Parliament is Sovereignty: In the U.K., all the laws and the acts are passed or enacted
by the consent of the Parliament i.e. both its houses. These laws and acts are to be
followed by the all residents of the nation and the organisation which is operating its
business in under the legal system of the nation (Gordon, 2015). Any orders made or
laws formulated by the Parliament cannot be challenged in any court or tribunals.
Sources of law
It is essential that an effective legal system is established in order to regulate or control
the unlawful activities of the society of the nation. For establishing an effective legal
system, effective laws are to be made by the legal authorities covering every legal
aspect so that nothing is uncovered. With the view to this, authorities consider different
sources of law which are given below:
Precedents: It is one of the most frequently used sources for developing the law in this
legal system. These are the judgment or the decision given by the authorised legal
bodies i.e. the court in the past times. If any of the similar cases happens in current
time, then the courts can refer to such decision for providing the solution to the issues
(Rab, 2018). Now a day, these decisions are the part of the law reports which are
printed from time to time having recent cases with high influence on the legal system.
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Acts of Parliament: It is considered as the laws itself. Parliament being the chief
authority in this legal system is responsible for overseeing the draft being present before
it. If the draft deems fit then it is approved otherwise it is rejected. Once approved, it is
applicable on every resident of the country and not complying with the law will attract
consequences.
Decisions of international and European Courts are also as the sources of laws and are
considered by the authorities.
International Court is a body which is responsible for dealing with international issues
falling within the legal system of the different nation. The establishment of this court is
the result of an arrangement between various nations (Law Shelf, 2012).
European Court holds a significant place in this legal system and it is responsible for
dealing with the cases attracting European Union laws.
Different personnel are responsible for providing the services of law and working under
this legal system who are as follows:
Those professionals who provide the services of law by working with organisations,
firms, etc. and also prepare the legal documents are known as Solicitors.
Those professionals who are basically known as lawyers and present before the court
to represent their clients are known as Barristers (Hollins and Sinason, 2018).
Those professionals having expert knowledge about the law and are responsible for
making legal interpretation of the norms or laws and providing verdicts based on such
laws are known as Judges.
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