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

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Added on 2024/06/28

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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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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
2

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.
3

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.
5

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.
6

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.
7

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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.
8

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).
9

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
10

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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.
11

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.
12

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).
13

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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
14

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.
15

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).
16

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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.
17

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.
18

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.
19

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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.
20

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).
21

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.
23

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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