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

Business Law
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Contents
Introduction......................................................................................................................................3
LO1 Explain the basic nature of the legal system...........................................................................4
P1 Explain different sources of law and laws that organizations must comply with..................5
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 diversity of its laws. Discuss the
problems with different sources of law.......................................................................................7
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................................8
LO2 Illustrate the potential impact of the law on a business...........................................................9
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. 13
LO3 Suggest appropriate legal solutions to business problems....................................................14
P4 Suggest appropriate legal solutions for a range of business problems.................................15
P5 Provide justifications for the use of appropriate legal solutions..........................................16
M3 Assess the positive and negative impacts of legal solutions to business problems............17
LO4 Recommend appropriate legal solutions based upon alternative legal advice provided.......18
P6 Recommend legal solutions based upon a different country’s legal system and/or a
different legal framework..........................................................................................................19
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M4 Compare and contrast the effectiveness of these recommendations...................................20
D2 Critically review and evaluate the use of appropriate legal solutions in comparison with
alternative legal advice..............................................................................................................21
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
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Introduction
This report is discussing laws related to business and its applications. In this report, legal system
of UK has been discussed. Various sources of law and role of government in law making has
also been highlighted. This report is further discussing the laws applicable on business such as
contract law, consumer law, employment law and its impact on businesses. These have been
described taking in reference certain scenario. Recommendations have also been provided for
settlement of disputes.
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LO1 Explain the basic nature of the legal system.
Introduction
In this report, English legal system has been discussed. Through this report, an overview has
been provided to Business Futures Ltd. (BF) about English legal system, its structure and sources
from which law has been derived. This report is also discussing the role of government in law
making.
Basic nature of Legal system
English legal system is majorly based on common law. There is dominance of decisions given by
senior courts. However, now the scenario is changing. More statutory laws are being made by
parliament to dominate legal system statutorily.
Basic divisions of Law
 Civil Law: It deals with cases which involve injury to any individual or an organization
and not public as a whole. Example- Breach of contract, negligence.
 Criminal Law: It deals with cases which are deemed to be an offence committed against
society, public or state. Example- Murder, Theft (Duignan, 2018).
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P1 Explain different sources of law and laws that organizations must comply with.
There are three main sources of English Law. These are as follows:
 Legislation: It is law which is created by legislature and also called statutory laws. These
are the Act enacted by Parliament. Parliament consists of House of commons and House
of Lords. Parliament is that body which has sole power to pass laws.
 Common Law: This is a source of law under which the law enacted is the decisions of
superior courts. The decisions passed by judges or judicial authorities become law and
are used by junior courts in giving judgements. The Parliament has power to modify or
abolish this law as and when it deems fit.
 European Union (EU) Law: UK is a member of European Union and therefore, laws of
EU are applicable on UK and these laws acts as precedents over UK laws. EU laws are
further divider into primary and secondary laws.
Laws applicable on Organizations:
 Companies Act, 2006: An organization can be established as a company by complying
provisions of Companies Act, 2006. All companies registered under this Act must
comply with its provisions.
 Health and safety at work Act, 1974: All organizations must ensure good health and
safety of its employees at workplace and therefore must comply with provisions of
Health and safety Act.
 Equality Act, 2010: The organizations must comply with provisions of Equality Act to
ensure that no employee suffers from any discrimination on basis of caste, creed, sex or
religion at workplace.
 Finance Act, 2018: This Act provides for applicable tax rates and exemption provisions.
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