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

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This report delves into the fundamental nature of the legal system, exploring its various sources and the laws that organizations must adhere to. It examines the role of government in law-making and the application of statutory and common law in justice courts. The report further analyzes the potential impact of law on businesses, using specific examples to illustrate how company, employment, and contract law influence business operations. It also differentiates and analyzes the potential impacts of regulations, legislation, and standards on businesses. The report concludes by suggesting appropriate legal solutions to business problems, including termination of contracts, rescue from insolvency, and liquidation. It also recommends legal solutions based on alternative legal advice provided, comparing and contrasting the effectiveness of these recommendations.

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Business Law
1

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Table of Contents
Introduction
................................................................................................................................................ 3
Section 1
....................................................................................................................................................4
LO1 Explain the basic nature of the legal system
................................................................................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.
....................................................................................................................................... 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 on business.
.............................................................................................................. 9
M2 Differentiate and analyse the potential impacts of regulations, legislation, and standards
11
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.
.................................12
Section 2
..................................................................................................................................................13
LO3 Suggest appropriate legal solutions to business problems
......................................................13
P4 Suggest appropriate legal solutions for a range of business problems e.g. termination of

contract, rescue from insolvency and liquidation
............................................................................13
P5 Provide justifications for the use of appropriate legal solutions
..............................................15
M3 Assess the positive and negative impacts of legal solutions to business problems
............16
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.
..................................................................................................................18
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 evaluates the meaning of law and different aspects of the law. In this, it

helps to understand the different legislation with their effects. It can be stated that a

speech is given by the queen in parliament at the time of ceremony. It also lays down

the different sources of law with their foundation and that also provide the emergence.

In parliament, the bill can be passed with the approval of both Houses that can also

explain. They also focus on the different regulation such as Equal opportunity

regulations, Health, and safety regulations, General Data Protection Regulation (GDPR)

with their impacts. This report is also based on the case scenario through which issue

arises and for this solution is also provided for the parties.

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Section 1
LO1 Explain the basic nature of the legal system

P1 Explain different sources of law and laws that organisations must comply with

It can be affirmed that law forms the authoritative and binding rules and decisions for all

individuals in state. The statement that is parliament is sovereign means that the

parliament has power to make or dismiss the law and individuals, judicial authority can

override the judgments of legislature. The sovereignty divides into two parts political

sovereignty and legal sovereignty. In earlier times, the queen was recognized as the

legislative authority and they have power to pass and formulate the legislations.

Sources of UK law:

Sources of UK are divided into two parts that are a primary source and secondary

source.

4

Primary
Source
Precedents
Customs
European Law
Legislations
Secondary
Source
Legal
Encyclopedias
Law Journals

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Primary Source:
Legislation:
It is that law that can be framed by the legislature. The important part of
legislation is Acts of Parliament. It has the power to pass to pass laws and that can be

applied in different countries. It includes the House of Lords and House of Commons.

Precedents:
It is the rule or principle that can be recognized in the earlier decisions and
that can be binding and persuasive for the tribunals and courts. It can be applied to the

rulings on a law that can be guided by the earlier decisions. For eg: previous decisions

of a government agency.

European law:
UK is recognized as the member states of the European Union that
defines that EU law takes the precedence over the laws of UK. These laws are defined

under the treaty of EU.

Customs:
It is the principle or rule of conduct that can be recognized by the specific
community. A custom should be reasonable, certain and immemorial antiquity (
Bell,
2018
).
Secondary Source:

Legal Encyclopaedias:
It includes the legislation of UK with their effects. They provide
an advantage to the scholars in searching the legal solution.

Law Journals:
In journals, scholars can find the summary of case laws and it also
includes the articles of a legal topic.

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Role of solicitors, Barristers, judges:
Barristers
Solicitors Judge
The barristers present they

case and speak in court in

front of a judge. They

perform the transactional –

type of legal work.

Solicitors meet with their

clients and perform the

administrative works. They

also provide the legal

advice to their clients.

The decision is provided by

the judge based on the

facts and circumstances of

case.

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P2 Explain the role of government in law-making and how statutory and
common law is applied in the justice courts

It can be affirmed that there is two body of legislature that is House of Commons that

can be elected through the elections by the citizen of UK. Elections are organized at

with every five years and the members have right to vote. They also frame the bill and

that can be passed to the House of Lords. The bill can be formed through the various

steps:

First Reading
In this step, the members of parliament
will decide the title of bill. After

deciding it the bill arrives.

Second Reading
This phase recognize the aims and
objectives of the bill with their key areas.

Committee stage
This phase analyses the detailed scrutiny
of bill with the variations. After recognizing

that variations the members have right to

vote.

Report stage
This phase examined the matter and also
discusses the changes. The member who

votes in earlier stage can decide to make

more changes.

Third Reading
It can be recognized as the final stage with
the amendments and votes (
McLaughlin,
2018
).
Royal Assent
In this stage, the bill can be approved by
the queen and it becomes the Act of

parliament.

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Application of laws:
Statutory laws:
It is the written form of law that can be developed by the members of
Congress and legislation. It depends on the system of common law. These are varied

from the administrative law and regulatory law and that can be passed by the agency of

executive.

Common laws:
Common law is the verbal laws that can be proposed by the judge
while hearing the decisions in court. It is an independent system and that can be

developed by the judiciary.

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M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
developments.

It is necessary for every organization to operate within the limits of UK. They are bound

to follow the certain rules and principles that can be used and yet to be recognized. The

main notion is to protect the interest and rights of everyone that can be directly or

indirectly related to the employer, contractor, supplier etc. It can be said that the society

is dynamic in nature that changes rapidly, so to protect them it is necessary to develop

the reforms. Law commission decides to form the different legislation such as contract

law, Data Protection Act 1998 that mandates the owners to follow the rules and

guidelines that are defined under the acts. They also carry the ethical practices at the

time of carrying operations it affects the areas such as safety and health, minimum

wages, working hours, discrimination etc. (
Singer, 2018).
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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 on business.

It is the true fact that when organization becomes the public sector they have to face

many problems and follow the legality. Managers have to face many responsibilities and

formulate the policies for HR and CSR. According to the scenario, the JPM Publishing

decides to change their company into public limited company this will leads to increase

in the obligations of organizations. In the organizations the directors play a crucial role

in developing the performance of employees. They are responsible to act within the

limits that are prescribed by the Company law. They are responsible to solve the issues

and conflicts in organizations.

There are various acts that affect the organization and these are discussed below:

Health and Safety regulations
Health and safety at Work Act, 1974
maintains the safety and Health at the

workplace. It safeguards the rights and

duties on both employees and employers

to perform the risk assessment of the site.

As per the scenario, the JPM Publishing

has to incur the cost to maintain the quality

and standards at the workplace. They are

also providing the training session to

employees so that they can perform their

work in an effective manner (
Barrow and
Lyon, 2018
).
Equal opportunity regulations
This regulation is governed through the
Equal Opportunity Act, 2010. It

encourages determining the elimination of

discrimination, oppression, harassment

with their causes. The JPM Publishing

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obligates the owners to make the changes
in role and tasks for disabled individuals as

compare to normal employees.

General and Data Regulations
This regulation is approved by the
European Union and came in force in the

year 2016. The main aim of the GDPR is

to set the standardized laws of data

protection among all the member

countries. JPM Publishing refers to the

data and complies with the guidelines in

GDPR.

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M2 Differentiate and analyse the potential impacts of regulations, legislation, and
standards

Laws are the principles that can be enacted by the administration of the community or

community. Legislations are the procedures for enacting the law and that can be

recognized collectively. Standards are set by the government's officials and that provide

specifications for the services, products etc. Regulations are issued by the department

of governments that carry out the objective of legislature which are enacted by the

house. If the organization comply with all the regulations, standards, legislation then it

leads to the goodwill and there will be the efficiency of an organization. If the

organizations did not follow all the procedures and did not frame the policies according

to the standards then it leads to legal consequences.

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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.

English legal system is based on the different legislation such as the Equality Act,

2010, Health and Safety at Work Act, 1974 that helps in the better functioning of

laws. English legal system can be evaluated by observing its positive and negative

effects. It is based on the adversarial system that provides the advantage to the

judges and based on the common laws and statutory laws. The UK is based on the

scheme that is Exceptional Case Funding (ECF) which provides the financial

assistance to the parties. English legal system is hard to extract and locate the

principles due to volume of materials (
Berger, 2018).
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Section 2
LO3 Suggest appropriate legal solutions to business problems

P4 Suggest appropriate legal solutions for a range of business problems e.g.

termination of contract, rescue from insolvency and liquidation

Facts of case

There was a company name champion ltd. That wants to relocate to another place to

develop the stadium. After relocating to different area they face problems in respect of

finance and due to decrease in customers and they are unable to pay the liabilities and

debts to the creditors. It can be asserted that the creditors of company are threatened to

apply to the courts for the process of winding up. The creditors can apply for the

compulsory winding up or they can adopt to the process of voluntary winding up.

Applicable laws

In case of winding up of company, it is necessary to comply with the provisiosn of

different laws. In this scenario, the different acts are applied such as
the Insolvency
Act, 1986, Companies Act, 2006 and Insolvency rules, 1986.
A creditor has right to
apply the court for the process of winding up and payment for the debts , in case if the

company owes £750 or more than that for the debts then in that case a notice has been

served by the creditor to the company. It is the statutory demand for the payment of

debts within the time period of 21 days from the date of demand. In this situation, the

company did not has right to take the action in the given 21 days and creditor has right

to move to court and apply for the process of compulsory winding up. They have other

option also that is voluntary winding up. In this method, stakeholders and directors can

take the decisions of winding up on the application of creditor (
Singer, 2018).
Recommendations

It can be recommended that champion ltd. has to pay off all the liabilities and create an

agreement for the payment of debts for the period of 21 days. They can enter into an

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agreement and that can be in form of creditor’s voluntary liquidation (CVL) or Company
Voluntary agreement (CVA) as they save from the proceedings of the court.

Case 2

Facts of case

The facts of the case are in which Mr. Anderson is CFO at the Amber Ltd. after

sometime the other company that is Beta Ltd. offers the job to Mr. Anderson then in that

case, he decides to resign the job. The contract was made between them they he has to

provide the notice before 12 months. But Anderson gives the notice of resignation of

one month. In this Mr. Anderson violated the terms of contract and conditions and seeks

the injunction against him. They require the legal advice.

Applicable laws

The different legislation such as the Employment Rights Act, 1996 and Basic conditions

of Employment Act (BCEA) are applicable. In this case, when an employee is hired for

the period of one month but less than two years then it is necessary to provide the

notice before one week. The other situation, of the employee, is hired for more than two

years and less twelve years, a notice of not less than one week is to be provided. In

case, if the employee is employed for more than twelve years a notice shall be provided

at least twelve weeks(
Lewis, 2018).
Recommendations

In this case, Amber precedes the case in court and sues Mr. Anderson for the breach of

contract as the notice was not according to them. The court granted an injunction

against him, for this they adopt the method of ADR.

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P5 Provide justifications for the use of appropriate legal solutions
Case 1

From the scenario, it can be revealed that champion is not able to pay its liabilities and

debts. This establishes the creditors to file the suit for the process of winding up to

secure the amount back. This situation occurred in the case of Lincoln-based printer

Elpeeko. In this, the organisation is used to vacant space by the authority of London

development to establish the park. The company faces many problems such as

financial crisis and creditors are also threatened. But the director used the CVL that

helps the company to pay its liabilities. Therefore it is a better option for the champion to

use the method of CVL.

Case 2

From the facts of the case, it can be revealed that Mr. Anderson resigns from Amber ltd

from the position of CFO that affects the functions of the business and leads to the

losses. The contract was made among them on the basis of certain and conditions, but

due to some situation, there is resign on the part of Anderson. These terms to the

breach of contract. The same case in which the court grants the prohibitory injunction to

prevent the work at the rivalry
Elsevier Ltd v Munro [2014]. Therefore the party has
the option to choose the method of ADR in which they sit together and identify the

problem
(Chiao, 2018).
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M3 Assess the positive and negative impacts of legal solutions to business
problems

Case 1

The process of creditor’s Voluntary liquidation has both negative and positive impacts.

Positive Impacts

In this process, the power of control is with the owner and directors.
To shut down the business, it is the quick method.
The owner has right to initiates the other business as the financial accounts did
not close.

Negative Impacts

The guarantees of the directors on loans would be entitled in.
This process is expensive as the fees of liquidator are high (Keynes, 2018).
Case 2

M. Anderson and Amber want to settle their disagreements with the help of ADR

methods.

Positive Impacts

It is a time-saving and cost-effective method.
In this process, both parties involved in the procedures and solutions.
The solution is provided by the specialised person and experts.
Negative Impacts

There is an issue of biases that affects the process of decision making
A case cannot be decided on the basis of guidelines so there are inconsistencies
and uncertainties.

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LO4 Recommend appropriate legal solutions based upon alternative legal advice
provided

P6 Recommend legal solutions based upon a different country’s legal system

and/or a different legal framework.

It can be affirmed that organizations have to follow the legislation and regulations. If

they did not comply with the standards then there will be an issue of conflicts. To

resolve that conflicts it is necessary to provide the legal solution to parties. The facts of

the case are in which the contract is made between Mr. Anderson and Amber in relation

to the access the information. The contract was made on certain terms and conditions

that specify the notice of 12 months to terminate the contract (
Levinson, 2018).
There was another firm Beta ltd that offers the Anderson the role of CEO. For this

reason, he resigns the contract that was made with Amber. This arises a conflict

between the parties and that can be solved by the Alternative dispute resolution with the

help of their methods.

Alternative Dispute Resolution:
It is the techniques for setting the disagreements
without the mediation, arbitration, conciliation, negotiation. The methods of ADR are

less costly and more expeditious. It is collaborative that allows the parties to understand

the positions of each other.

Benefits:

The process of ADR is less costly and it is the fastest method.
This method is responsive according to the needs of the individuals and flexible
in nature.

In this, the parties can easily explain the story to the arbitrator.
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Arbitration Negotiation Mediation Conciliation
It is the method in

which

disgrreeemnets is

submitted by the

process of

agreement with one

or more arbitrators

who binds the

dispute. It is on the

discretion of parties

to choose the

arbiters and they

provide the final

decision.

The main aim of

negotiation is to

resolve the point of

difference to gain

benefit fo individual

and collective to

satisfy the interests.

It is the structured,

interactive and

dynamic process in

which third party

assists the parties

to resolve the

differences

between the

different ways of

negotiation and

communication

method.

In this the

conciliator has no

power to seek the

evidence or to call

a witness , they did

not provide the

decision or awards.

They help the

parties to create the

atmosphere of trust

that heps to

develop the

conciliator (
Ridley-
Duff, 2018.
).
From the above analyses. It can be determined that if there is an issue or there is

disagreement then the parties have option to solve their dispute with Alternative Dispute

Resolution with their methods. By this, they can easily resolve the issue promptly. In

this, the Anderson and Amber adopt the process of arbitration to settle the disputes. As

in this, they solve the issue with less cost and time.

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Legal system
Legal system of US
Legal system of UK
There is no system of tribunal
they have to decide their cases

through another method.

The proceedings can be done
through the camera.

There is a system of the tribunal
that helps to decide the case.

There are a proceeding of the
camera which was refused.

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M4 Compare and contrast the effectiveness of these recommendations.
It can be stated that there are two solutions and methods for the parties to resolve the

cases. They are a process of litigation and Alternative Dispute Resolution. According to

the scenario of the case, the parties can adopt any method of ADR to resolve the issue.

The process of litigation is time- consuming and uneconomical that cost more for than

Mr. Anderson could give compensation. If they adopt the ADR then it is the win solution

for the parties. As in the process of mediation the mediator which is appointed by the

parties that provides the suggestion to both parties in their own interest. The process of

mediation is faster and inexpensive. If the decision is unfair then, in that case, they can

change it into tribunals (
Coutu, 2018).
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D2 Critically review and evaluate the use of appropriate legal solutions in
comparison with alternative legal advice.

Case 1

To remove from the process of liquidation, it is necessary for the champion ltd. To pay

the liabilities and the debts of the company. If in any case, he was not able to pay the

debts then he had an option to choose the process of voluntary winding up to wind the

functions of company. In case, if the stakeholders and managers of the company did not

want to move for the process of liquidation then, in that case, they can appoint the

administrator to carry out the functions of company so that they can exits.

Case 2

Anderson breach the employment contract, in that case, Amber is suggested to file a

suit against him. They are decided to resolve the issues through the ADR methods.

These can be in form of mediation, conciliation, arbitration a negotiation. It incurs less

cost as compared to the process of litigation

The Amber is recommended to adopt the method of arbitration so that the parties can

easily solve their disagreements within less time. It also preserves the relationship

among the members of the company (
Wortley, 2018).
22

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Conclusion
From the above report, it can be determined that the law helps the organistion in

their different functioning. Its emphasis on the process of law making that can be

followed by the different sources of law. The impact of different legislation also

considers with their solutions. Different Acts such as Data Protection Act, Equality

act determines the responsibilities and duties of the employers and employees. It

also analyses the different case studies with their problems, to resolve these

solutions are also provided to the parties. The solution can be in form of court

proceedings and ADR methods. If the party wants the effective and speedy remedy

then they adopt the ADR and that binds on the parties.

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References
Barrow, C. and Lyon, A., 2018. Modern Employment Law. Routledge.
Bell, J., 2018. Sources of Law. The Cambridge Law Journal, 77(1), pp.40-71.
Berger, P.L., 2018. The limits of social cohesion: Conflict and mediation in
pluralist societies
. Routledge.
Brown, J.G., 2017. The use of mediation to resolve criminal cases: A procedural
critique. In
Restorative Justice (pp. 197-259). Routledge.
Chiao, V., 2018. Criminal Law in the Age of the Administrative State. Oxford
University Press.

Coutu, M., 2018. Max Weber's Interpretive Sociology of Law. Routledge.
Finch, E. and Fafinski, S., 2018. Law Express: English Legal System. Pearson
UK.

Keynes, J.M., 2018. The general theory of employment, interest, and money.
Springer.

Levinson, A.R., 2018. Legal Ethics in the Employment Law Context: Who Is the
Client?.
Jurnalul de Studii Juridice, 5(3-4)
Lewis, G.B., 2018. Equal employment opportunity and the early career in federal
employment. In
Diversity And Affirmative Action In Public Service (pp. 75-91).
Routledge.

McLaughlin, S., 2018. Unlocking company law. Routledge.
Ridley-Duff, R., 2018. The internationalisation of FairShares model: where
agency meets structure in US and UK company law.

Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and
the legal system
. Routledge.
Wortley, N., 2018. English Legal System. Oxford University Press
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