Business Law: Understanding Legal Systems and Their Impact on Businesses

Business Law
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Contents
Introduction................................................................................................................................3
Section1......................................................................................................................................4
LO1. Nature of legal systems and legislations impacting businesses....................................4
P1- Explain different sources of law and laws that organisations 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.........................................................................................................................................8
P3- Using specific examples illustrate how company, employment and contract law has a
potential impact upon business...........................................................................................8
M2- Differentiate and analyse the potential impacts of regulations, legislation and
standards.............................................................................................................................9
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.....................10
Section2....................................................................................................................................11
LO3. Suggest appropriate legal solution to the business Problem.......................................11
P4. Suggest appropriate legal solution of the range of business problem e.g. termination
of contract, rescue from insolvency and liquidation.........................................................11
P5. Provide justification for the use of appropriate legal solution....................................13
M3 Assess the positive and negative impacts of legal solutions to business problems....14
LO4. Recommend appropriate legal solutions based upon alternative legal advice provided.
..............................................................................................................................................15
P6 Recommend legal solutions based upon a different country’s legal system and/or a
different legal framework.................................................................................................15
M4 Compare and contrast the effectiveness of these recommendations..........................16
D2 Critically review and evaluate the use of appropriate legal solutions in comparison
with alternative legal advice.............................................................................................17
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Conclusion................................................................................................................................18
References................................................................................................................................19
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Introduction
Understanding of the legal system of the country in which business is setup or a new business
is to be started in the new place is always required. The assignment is designed and prepared
in a manner which will help the reader to understand how the business law is applied over a
business and the impacts that are drawn by it over the business and the customers of it. The
sources and law making process has been explained for developing the understanding of the
background and legal development that takes place in the country. For giving the idea of
application of the business law on business and its impact the case studies have been taken to
explain the relevant law. The laws like health and safety, data protection and Equal
opportunities regulation etc. have been explained and the relevant legislation has been taken
to explain their impact over the business in various ways. All the activities of the business has
to be confined in the legal frameworks only.
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Section1.
LO1. Nature of legal systems and legislations impacting businesses
P1- Explain different sources of law and laws that organisations must comply with
a) Discus the meaning of this statement and the various sources of UK Laws.
The concept of ‘parliamentary sovereignty came into existence during the reign of William
and Mary who put a condition to provide parliament supremacy and special privilege to the
royals in the parliament.
The ‘Parliament is sovereign’ - by the following statement, it is meant that the parliament of
the United Kingdom is the supreme power responsible for law-making or end any irrelevant
law. Even the Supreme Court does not have the power to overrule the legislation passed by
the parliament (i.e., these cannot be challenged in the courts). Also, no parliament can make
laws that cannot be amended by the future parliament (Cotterrell, 2017). According to A. V.
Dicey, the parliamentary sovereignty involves four major aspects:-
1. Parliament is supreme authority in the UK that can form any laws depending upon the
subject matter.
2. No parliament has the power to bind the future parliament.
3. Nobody including the judicial bodies can question the validity of law.
4. All laws have equal authority and no one is above the other.
Different Sources of the UK laws
The sources of laws in UK can be categorized into two different sub-classes: Primary and
Secondary.
Primary Sources
• Legislations: The UK constitution partly written and hence, amendments are made
into it every year. The Laws passed in the parliament are termed as legislations. These laws
are applicable to the whole of the United Kingdom.
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• Precedents: In UK, precedent is that doctrine, whereby the previous decision of a
court of same importance or higher stature can be taken as reference to make decisions in a
similar current case.
• Customs Laws: These are the unofficial rules that are made by a particular society
and are practiced customarily. Those who violate these laws are subjected to the punishment
by the society.
• European Laws: These are the set of regulations and guidelines given in the treaty
signed by the members of the European Union. These laws are considered above the laws of
the member nation (Schmidt, 2013).
Secondary Sources
• Law Journals: These contain the mix of the case studies, articles, and case
summaries that can help in understanding the legal issues thoroughly.
• Legal Encyclopaedias: These contain the comprehensive statement of the legislations
of the whole of the UK and can serve as an excellent source of research.
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