Business Law: Understanding the Legal System and its Impact on Business

This report explores the fundamental role of the legal system in regulating business activities. It delves into the sources of law, the role of government in lawmaking, and the impact of company, employment, and contract law on businesses. The report also examines alternative dispute resolution (ADR) methods, such as arbitration, conciliation, and mediation, as effective tools for resolving business conflicts. Through specific examples and case studies, the report provides a comprehensive understanding of the legal framework that governs business operations and offers practical solutions to common business problems.

Business law

Table of Contents
Introduction......................................................................................................................................3
LO1 Explain the basic role of the legal system...............................................................................4
P1 Explain the different sources of law that the organization needs to comply with..................5
P2 Explain the role of government in law making. Explain how the statutory and common law
is applied in the courts.................................................................................................................7
M1 Evaluate the effectiveness of the legal system in terms of the diversity of its laws. Discuss
the problems with different sources of law..................................................................................8
D1 Provide a coherent and critical evaluation of the legal system and law drawn from a range
of different relevant examples to support judgments...................................................................9
LO2: Illustrate the potential impact of the law on a business........................................................10
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business..................................................................................................10
M2 Differentiate and analyze the potential impacts of regulations, legislation,and standards..12
LO3 Suggest appropriate legal solutions to business problems....................................................13
P4 Suggest appropriate legal solutions for a range of business problems.................................13
P5 Provide justifications for the use of appropriate legal solutions...........................................15
L04 Recommend appropriate legal solutions based upon alternative legal advice provided........16
P6 Recommend solutions based on a country’s legal system and /or a different framework....16
M4 Compare and contrast the effectiveness of these solutions.................................................18
D2 Critically review and evaluate the use of appropriate legal solutions in alternative advice.
....................................................................................................................................................19
Conclusion.....................................................................................................................................20
References......................................................................................................................................21

Introduction
In this report, it discusses the purpose and functions of law that helps to regulate the behavior of
society. English legal system is divided into the civil and criminal courts that consist the
hierarchy. The sources of law help the parties to take their decision. It also analyses the different
legislation such as consumer law, Employment law, company law that provides the rights and
duties of parties. In this different scenario are provided and that can be analysed according to the
legislation. It also evaluates the methods of ADR that helps the parties to settle the
disagreements.

LO1 Explain the basic role of the legal system.
Introduction
In this report, it discusses the aspects of English legal system. The BF wants to
contextualize their business. English legal system helps to understand the different meaning
of law with their sources. They also analyse the role of government in the process of
lawmaking. BF advises the business known as country pine. This business was established
by two brothers who manufacture the furniture, they want to expand their operations of the
business.

P1 Explain the different sources of law that the organization needs to comply with.
Law can be termed as the system of rules which are enforced and created through the
agencies of government that helps to regulate the behavior.
Structure of English legal system: It is fragmented in to the civil and criminal court that is
discussed below:
Supreme Court: It is considered as the highest court in the system of England and Wales.
Senior Courts of England and Wales: This court is formed by the court of judicature. It
consists of crown court, High court, the court of appeal.
High court: It is recognized as the highest court in the UK and deals with the civil cases
and the verdicts that are given by the lower court.
Crown court: Crown court handles the matters of crime and perceives the decisions from
the trials on crimes and also overhears the petition form magistrate court.
UK Legal System Hierarchy
Supreme Court Senior Court of the
England and wales
Court of Appeal
High Court
Crown Court
Subordinate Court
Magistrate court
Family proceeding
court
Youth Courts
County Courts
Special Courts
Coroner's Court
Eccleslastical
Courts
Other Courts
Military courts
Election Courts
Patents County
Courts

Court of appeal: It consists of the criminal and civil division. Criminal court perceives the
verdicts form the crown court. Civil court overhears the decisions from county court and
High court of justice.
Subordinate court: It consists of the magistrate court that is known as the criminal court in
which illegal proceedings are taken. It also includes the youth court, family court and
county court.
Other tribunals and courts: Apart from the civil and criminal division there is different
court such as military court, Ecclesiastical court, coroner’s court(Hierarchy structure, 2017).
Sources of law:
Sources of English legal system are divided in to the primary and secondary source. Primary
source provides the fresh and direct evidence about the evidence. It includes the case laws,
legislation etc. The secondary source includes the secondary information that includes the
journals, legal Encyclopedias. Etc.
Primary source: Legislation is enacted through the parliament and considers as the higher
form of law that overrides the other laws. Case laws are known as the judge made a law that
safeguards the certainty and reliability in the progress of law.
Secondary source: law journals consists the articles, decisions that can be used by the
attorneys. Legal encyclopedias provide the legal articles on the different topics(Bell, 2018).

P2 Explain the role of government in law making. Explain how the statutory and common
law is applied in the courts.
Government plays a significant role in the process of bill-making. A bill can be initiated in
both houses before the Act of parliament that can include the different steps:
First reading: This stage helps to understand the title of the bill.
Second reading: This stage provides the principles and objectives of the bill.
Committee stage: This stage analyses the changes and also investigate the text of the bill.
Report stage: This is the final stage in the process of making of the bill. It helps the
members to inspect the bill and also to report the verdicts to House of Commons.
Third reading: There was a debate among the members of parliament and further changes
were introduced.
Royal assent: This stage declares the law in both houses and it is the last stage in the
parliament.
Statutory and common law: Statutory is the method of rules and principles that can be
forth by the statute. They can be termed as the legislation. Common law emerges from the
judicial decisions and also known as the case law (Diffen, 2017).

M1 Evaluate the effectiveness of the legal system in terms of the diversity of its laws.
Discuss the problems with different sources of law.
Legal system helps to interpret and enforce the law that helps to regulate the functions in
society. It can be observed that the society is dynamic in nature that keeps on changing. To
bring the effectiveness in the legal system different legislations and regulations are framed
that helps to ensure the objectivity and reliability. It is necessary to make developments that
include the establishment of tribunals that provides the speedy remedy to party. They also
establish the legal aid that provides the free aid services to the individuals. The
commissions, parliament, and court help the individuals to bring the effectiveness by
establishing the laws and policies for the administration (Waters, 2018).

D1 Provide a coherent and critical evaluation of the legal system and law drawn from a
range of different relevant examples to support judgments.
It can be observed that English legal system can be evaluated through its pros and cons.
English legal system provides the faster decision as and it is more responsive. It has the
political autonomy in which the courts and judges are not prohibited by the politics.
Consequences are it is the method of the utter volume that consist the large volume of cases
with their reports. It is the complex and cheap process (Marett, 2018).
Conclusion
From the above analyses, it can be determined that the structure of legal system helps the
parties to settle their disputes. Sources help the individuals in the process of decision
making. It also helps to analyses the role of parliament in lawmaking process.

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.
Introduction
This report is discussing provisions of employment and contract law. A test has also been
conducted to ensure if workers working with Country Pine are its employees. This report is also
highlighting rights of employees.
Applicable law for protection of Consumer in United Kingdom is Consumer Rights Act, 2015.
Main objective of Act is to protect rights of consumer and provide them remedies when
purchasing goods, services or digital content. Main highlights of Act are as follows:
 The goods supplied to the customers must be of acceptable quality and fit for the purpose
described by the buyer. The customer shall otherwise have a right to reject the goods of
claim refund within 30 days of sale.
 The services supplied to the receiver must be provided with reasonable care and skill and
must be completed within a reasonable time. The receiver in case of non-fulfillment of
terms of service may require repeat performance of service, reduction in the price paid or
may require appointment of a new service provider.
 The digital content supplied to the consumer shall be governed by Consumer rights Act.
If any faulty content is provided, then the buyer has an option of replacement or reduction
in price (Coe, 2015).
Employment law
Tests for employment
Following factors are considered for ensuring that an employee is worker of company:
 Control over worker- When a company authorizes work to someone and prescribes the
manner in which work must be done, then it is said to be exercising control over worker.
 Ownership of tools- When the company owns and assigns tools and equipment’s used for
performance of task to workers, then it indicates that worker is an employee.

 Degree of Financial Risk- The financial risk undertaken by worker determines his
employment status. Higher the risk undertaken, low are the chances of employment.
 Fixed Remuneration- For relationship of employment, fixed remuneration must be paid to
workers (Law teacher, 2013).
In case of O’Connor v. Uber Technologies Ltd., an application was made in US District Court
by a union of drivers that they must be given the minimum rights available to employees as they
are employees of the company to which defendant Uber stated that they are self-employed
drivers. After several hearings, it was decided that Uber drivers are employees of the company
and therefore must be given employment rights.
Therefore, based on above test and referred case law, it can be concluded that workforce
appointed by Country Pine are employees of the company.
Rights of employees
The agreements related to employment are guided by employment law. These laws are important
for the protection of employees or workers from their employer’s wrongdoings. In case of Uber,
the drivers were exploited by the company as they were not given the benefits of an employee.
The employees have certain rights in relation to employment. These are-
 Receiving Remuneration
 Protection against unfair dismissal
 Statutory payment on redundancy
 No discrimination at workplace
 Fair compensation
 Protection of health and safety
Conclusion
It can be concluded that employment laws provide for provisions for protection of terms of
employment. Employees must not be exploited by their employers and therefore their rights have
also been discussed.

M2 Differentiate and analyze the potential impacts of regulations, legislation,and
standards.
All business must follow and comply with regulations, legislationsand standards regardless of
nature of business. Proper compliance of rules and regulations gives the company advantages
like building competitive advantage and customer trust. The compliance helps in the
management of risks and improvement in quality thereby resulting in better efficiency (Sherbet,
2014). It further helps in avoiding criminal charges and building company’s reputation. On the
other hand, if a company does not comply with the rules and regulations then it may have to face
legal consequences. Such non compliance leads to penalties and actions against the company
which may give a bad reputation to the company.

LO3 Suggest appropriate legal solutions to business problems
P4 Suggest appropriate legal solutions for a range of business problems
Introduction
Country Pine is recommended to convert itself into a limited company as the profits of the
company are sufficient to be converted in a limited company. The applicable legislation on
companies in the UK is Companies Act, 2006. This report is discussing nature of company if
registered, role of directors and suggesting them how they may raise capital.
Nature of company
Under UK law, companies can be of following types:
 Public Limited Company: A public limited company is a company which can sell its
shares to the public. It must have at least 2 directors, two shareholders and a company
secretary. It must have an initial capital of £50,000.
 Private Limited Company: A private limited company is a company in which the
liability of members is limited but it cannot sell its shares to public. It must have at least
one director and one shareholder.
 Limited Liability partnership: It is a combination of company and partnership. Here,
the partners are not responsible for each other’s acts. Their liability is limited to their
contributed shares. The basic difference here is business is managed and controlled by
partners and unlike companies.
Therefore, CP is recommended to become a public limited company by raising capital from
general public.
Role of Directors
The role of directors of a public limited company is as follows:
 The directors must take decisions which would benefit the company in long run and they
must promote success of company.

 It is a responsibility of director to act within his powers and in line with company’s
constitution.
 The directors must use their skill and expertise with reasonable care while exercising
their functions.
 Directors must avoid conflict of interest. They must not participate in decisions in which
they have multiple interests as it may influence or corrupt the decision.
 The directors must report if any changes are made in company’s information such as
trading address. They must prepare and keep records of company safe.
Financing the capital
The capital for converting in a public limited can be raised by Country Pine through following
sources:
 Public issue of shares: Since shares of a public limited company are open to public,
Country Pine may issue its shares to public and may raise capital through such public
issue. This will help the company in spreading the risk among large number of
shareholders.
 Banks and financial institutions: Country Pine may also use borrowing option for
financing the capital. It may borrow money from banks and financial institutions.
Conclusion
It can be concluded that Country Pine can use these legal solutions to convert itself into a public
limited company and in expanding its business. It may also finance its capital from suggested
sources.

P5 Provide justifications for the use of appropriate legal solutions
Country Pine must convert itself in a limited company as it may give an opportunity to the
company to extend its operations. Through public issue, more capital can be raised which can be
utilized by Country Pine to pursue new projects and tap new markets. This way Country Pine
would also be able to make capital expenditures which can enhance the productivity. Operations
of public limited company are highly transparent. Therefore, it may increase the credibility and
goodwill and enhance costumer trust. The shares of a public limited company are also easily
transferrable.
Country Pine must use different sources to finance its capital. Capital must always be financed
through both equity and debt sources. Therefore, capital of Country Pine can be financed through
issue of shares and borrow from banks and financial institutions. It may also use its own previous
year profits.

L04 Recommend appropriate legal solutions based upon alternative legal advice provided.
Introduction
In this task, it helps to understand the concept of Alternative dispute resolution. ADR is the
method that helps to settle the disagreements among the parties.
P6 Recommend solutions based on a country’s legal system and /or a different framework
ADR is the process of resolving settlements outside the court. The facts of the case are in
which there is a contract between two parties that is CP import the timber from Poland, this
arrives in the form of flat backs and leads to the effects. This leads to the conflicts between
the parties and the parties wants to resolve the dispute quickly. For this, it has been
recommended that to adopt the process of arbitration.
Arbitration: It is the methods that help to settle the legal dispute between the parties with
the support of arbitrators. It is the less costly and solves the method quickly. The arbitration
is a consensual method that can take place among the parties. It also protects the
confidentiality and does not disclose the matter.
It can be observed that the contract is formed between parties and the CP does not import
the proper and reliable timber according to the contract, the party receives the defective, for
this there is an issue of conflict and they need to solve the dispute through the methods of
ADR. They can also adopt the court proceedings that help to reach the solution. Methods of
ADR can be in form of conciliation in which both parties the organizations and CP workers
appoints the conciliator and they has to meet and attempt to resolve the conflicts. It can be
done by improving the skills of communications, encourage the parties to explore the
solutions and interpret the issues. It is the informal method. Another method through which
they can resolve their disputes that is the process of mediation, that is non-binding method,
in which parties appoint the mediator that helps them to understand the problems and
provides the suggestion. It also protects the parties from the civil cases ( Vasani and Mehta,
2018).

The other legal advice is recommend to the parties is the court proceedings that provide the
solution that provides the sequence of actions and leads to the judgment in court. To follow
the court proceeding, it is necessary to file the suit and claim against the party.

M4 Compare and contrast the effectiveness of these solutions.
Arbitration Conciliation
 It is the process in which an
arbitrator is appointed to settle the
disagreements.
 An arbitrator has the power to
enforce the decision.
 In this, there is need for prior
agreement.
 It is the process of resolving the
conflict in which an autonomous
individual helps the parties to appear
at the solution.
 Conciliator does not have the
authority to impose his verdict.
 It is essential to have the agreement.

D2 Critically review and evaluate the use of appropriate legal solutions in alternative
advice.
Solutions can be provided in two ways it can be in way of litigation or in form of ADR. It can be
observed that there is an increase in the number of cases to solve the dispute, the parties have to
adopt either the process of litigation or ADR. In this scenario, they adopt the process of
arbitration as it provides the quick and speedy remedy. It also involves the less cost so that every
party can be bear it. In the process of litigation, the procedure e is long and the parties have to
wait for months and years.
Conclusion
From this task, it can be determined that the ADR helps the parties in solving their dispute. The
parties can adopt the method of conciliation, mediation,andnegotiation to settle the disputes.

Conclusion
From the above report, it can be resolute that the legal system is the method of enforce the law. It
defines the privileges and duties of the parties. The UK influenced by different sources of law
that consists of the primary and secondary law. To regulate the proper functioning, it is necessary
to have the standards and legislation. ADR is the flexible and speedy process that provides the
solutions to the parties. It also analyses the different legislation such as Employment act,
company act, consumer legislation that helps the parties to solve the disputes.

References
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