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

Business Law
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Contents
Introduction..............................................................................................................................4
LO1 Explain the basic nature of the legal system....................................................................5
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..................................................................................................7
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments.......................................................................................................................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 analyse the potential impacts of regulations, legislation and
standards............................................................................................................................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 judgements.......................13
Lo3. Suggest appropriate legal solutions to business problems............................................14
P4 Suggest appropriate legal solutions for a range of business problems e.g. termination
of contract, rescue from insolvency and liquidation............................................................14
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....................................................................................................18
M4 Compare and contrast the effectiveness of these recommendations..........................19
D2 Critically review and evaluate the use of appropriate legal solutions in comparison with
alternative legal advice.......................................................................................................20
Conclusion.............................................................................................................................21
References.............................................................................................................................22
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Introduction
Business world is growing with rapid speed and therefore the government of the
country was facing the various issues and challenges due to this as various kinds of
issues were emerging on day to day basis and this was affecting the major
stakeholder group in the country. Therefore in order to deal with this situation
effectively the government tried to regulate the functioning of the company with the
various commercial and other connected laws. The laws that are majorly enacted to
focus on the business activities are discussed below and the system of courts and
other connected aspects are covered in this relation. The application of the law has
been explained by making clear case studies related to the hypothetical problems.
The alternative modes are also part of the coverage only since it is becoming the
new development in the legal system of the country.
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LO1 Explain the basic nature of the legal system
P1 Explain different sources of law and laws that organizations must comply
with
Legislature is known as the body that is created for law making only. The body is
constituted by the House of Lords and House of Common in which the
representative of the public are only elected and they represent the interest of the
public in indirect manner. The parliament makes the laws and along with this also
possess the authority to not to allow any other organ of the government and member
of the public to make question over the nature and functionality of laws that are
covered by the legislative enactment of the parliament. The member of these
houses enjoy the immunity to not to answer for their conduct to any court or tribunal,
they also have the authority to repres4ent their side in the manner in which they wish
to provided the same is within the set rules of the parliament, the media is also not
allowed to put question over the working of the parliament nor can there be judicial
review of any decision that is taken by the parliament under the power and
immunities that are enjoyed by it. Thus all these are features which are considered
the main reason of calling parliament as sovereign body in the country (Llewellyn,
2017).
The laws are found to be based on two types of sources. These are historical
sources in which custom of the traditional nature that are in practices from years is
made the law since the contrary practice to the same cannot be completed by the
parliament and therefore in order to have it regulatory it is given the status of law
only. Equity principles and jury system is also part of the traditional sources in which
the law of equity which was developed in the court of chancery used as standard or
regulation (Besson and d'Aspremont, 2017).
In the modern sources there is legislative body which is sovereign and makes the
laws for each and every one equally. The parliamentary debate is the process by
which laws are made. Judiciary is also source of law in which the judges have right
to make the administrative action and below courts to them to work in accordance
with the set rule of law in the case before it in the form of “stare decisis” and “ration
decidendi”. The decision of the court is sometime used for making the new
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enactment in the parliament as well. Apart from the domestic court the European
Court also serve the source of law making in which United Kingdom is signatory to
the European Union and this union works for making the legal system of member
countries to be common and thus decision of the European Highest Court is used as
source of lawmaking n the member nations(Heywood, 2015). The International
Court is also source 0f law in which the International Court of Justice or International
Labour Court makes the decision which are biding over the continues that presented
the case before the court. The laws which apply over business are made up of the
above sources only. The employment rights act, companies act, health and safety
act insurance act etc. are the product of the statutory nature.
The Judges of the court are also very important in law making like if the judges are
strict and very particular about the application of the law that is clearly stated then in
that cases there will be less use of the interpretation tools. If the judges are liberal
and require that justice be rendered to sufferer in that case they will allow the starch
of the application of law thorough interpretation rules. Thus in common law making it
is the judge who has great part to play in making law. The barristers and solicitors
also take part on making law and they are allowed to given the extensive
interpretation of the cases that are presented by them in court. They arte sometime
made the member of the drafting committee or they use the website platform for
suggesting the provision about the law that can be made in draft of bill (Bright
Knowledge, 2018).
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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.
Role of government in Law Making:
The process of lawmaking lies in the hands of legislative Member of Parliament only.
No person other than these member can take into direct law making of the country.
First of all the issues and challenges occurs regularly in the country like poverty,
rape, violence, harassment etc. These issues are used in setting the government
agenda by political parties and they use these as source of getting the votes and
come in the ruling of the government. The party on getting the ruling of the
government present these issues in parliament for law making in the form of bill only.
The government first of all in order to allow the public participation publish the matter
on website where everyone is allowed to make comments and compliments in
relation to the issue of law. The comments and argument is source of drafting of the
bill sand drafting committee takes the same for determination of the various clauses
of the draft.
Once the draft is ready it is introduced in parliament and the parliament decides the
time of decision the bill and once the date of discussion is arrived it is taken for
detailed and elaborated discussion be member of the parliament who present their
side with the basis of their solid reasoning and arguments. The member are not
allows take part in the both houses and member of one house can only take part in
the discussion in which he is member (Carter, 2018).
Reading of bill is necessary before the actual decision over the same can be
restarted and therefore same is done and after that member of the house are asked
to present their sides and voting is also give a matter of right to decide the important
matter in relation to bill. The committee is also appointed by the parliament itself so
that it can examine the draft fully and can bake the constructive suggestion in
relation to the objectives of bill and the draft that has been prepared.
The report of the committee is also subject to arguments and agreements of
parliament member. If they by voting decided to agree for inserting the bill provisions
then only it will be inserted otherwise it will not be part of draft and the draft will be
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