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

This assignment delves into the fundamental nature of the legal system in the United Kingdom, exploring its various sources of law and the laws that organizations must comply with. It examines the role of the government in law-making and the application of statutory and common law in justice courts. The assignment also evaluates the effectiveness of the legal system in light of recent reforms and developments, providing a critical analysis with relevant examples to support judgments.

Business Law
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Table of Contents
Section 1– Nature of legal systems and legislations impacting businesses.....................4
LO1 Explain the basic nature of the legal system..........................................................4
P1 Explain different sources of law and laws that organizations 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...............................................................................7
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
developments..............................................................................................................9
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.
..................................................................................................................................10
Reference........................................................................................................................11
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Introduction
Laws are an essential part of the legal system of the country. This system operates on
the effective laws formulated by the Parliament with the assistance of the ruling
Government. These laws are derived with the help of the different sources which
ensures the effectiveness of the laws. These laws are applicable to the citizens of the
country, even it is applicable to the organisations operating its business under the
regulations of the legal system. While doing business, organisations are bound to follow
various laws which include the safety of the health of the workforce of the company,
providing equal opportunities to every employee in order to grow in the professional life,
etc. This assignment also includes different situations which attract the provisions of
different laws and the solutions to the issues, given in these situations, are provided by
considering different laws. However, these issues can be solved by opting for
Alternative Dispute Resolution rather than resolving the issues by reaching out to the
court.
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Section 1– Nature of legal systems and legislations impacting businesses
LO1 Explain the basic nature of the legal system
P1 Explain different sources of law and laws that organizations must comply with
This statement portrays the significance of the Monarch in the legal system of the
country i.e. the United Kingdom. The statement mentions the Queen’s Speech which is
given by Queen of the U.K. every year in November month. At the starting of every new
session, Queens informs the community of the country about the aims of the Parliament
and the Government and plans how such aims will be accomplished (Wortley, 2018).
While sitting on the throne of the House of Lords, this speech is delivered which is
viewed by the public at large.
Sources of Law
In order to ensure about the laws on which the legal system of the country operates
cover each aspect as the absence of such aspect may affect the effectiveness of the
law, different sources are considered by the authorities responsible for the development
and formulation of the law. These are as follows:
Common Law: It is a system which was introduced in the United Kingdom and partly or
wholly adopted by the legal system of the United States of America and other countries
as well. These are those rules, norms or laws which have developed with the passing
time and by different decisions made in the litigation system of the country (Besson, and
d'Aspremont, 2017). In today’s times, these cases are printed in the form of the report
such as “law report”. All the cases which influence the legal system and laws under it
are included in these reports.
Legislation/ Acts by Parliament: Parliament is considered as the legislature of the
country and all the acts or laws in the legal system are created by this legislature. All the
citizens, as well as the organisations operating in the economy of the country, are liable
to comply with the provision of such laws unless anything else is specified.
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European Union Law: This is the law which influenced the domestic laws of the
country. The United Kingdom became the part of the European Union in the 1972 and
from that period of time, the European Laws became the part of the U.K’s legal system
(SOAS Library: Research Guides, 2012). It is a result of several treaties like the Treaty
on European Union which is considered as primary sources and is referred for
developing law from time to time.
As mentioned above, the verdicts delivered by the court are referred by the authorities
while formulating new laws or developing existing law. These authoritative bodies are
established in order to provide justice and resolve the issues of the party. These bodies
are as follows:
International Court: These are the courts which are established under the
arrangement or the treaties between different countries. This court handles matters
related to multi-nations and is overseen by the organisations like the United Nations. Ad
Hoc tribunals are one of these courts.
European Court: These courts are established under the provisions of European Union
Laws and the cases which attract the provisions of these laws are overseen by this
court. Moreover, it is the authority which ensures that all the member states comply with
the applicable laws.
There is various personnel who work in the litigation system and provide the services of
laws. This personnel is as follows:
The professionals who provide the services of representing the client in the court i.e.,
the services of legal representatives are known as barristers.
The professionals who provide the related services of laws, such as legal document
preparation, appointing the barristers are known as solicitors (Bright Knowledge,
2018).
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The expert and knowledgeable individuals of the law who ensures that the proceedings
of the court are going on as per laws or the guidelines mentioned in the act are known
as judges.
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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
Laws play an essential role in the legal system of the U.K. Therefore, in order to make
sure about the requirement of the law in a particular area, Government comes into
place. Such identification of the area in which is regulation of the law is required is done
by the Government. Draft of the act is drafted by the Government and is forwarded to
the Parliament.
Parliament is the main authority which makes sure that each and every law which is
passed by it is effective and covers every aspect of the law. This involves the series of
stages which are:
First Reading is a common reading of the draft forwarded to the Parliament.
Second Reading is a specific reading of the draft which is done by one of the House of
the Parliament i.e. House of Commons. The discussion is made in the House and the
comments of the members are invited (GOV.UK, 2013). Changes are made in the bill if
required. If further reviewing of the draft is required, it is done by the committee
constituted in this regards. If changes are required to be made, then a report is
submitted to the House, which includes the suggestions of the committee.
The final reading of the draft of the act is known as the third reading after which draft is
submitted to the House of Lords.
House of Lords is the house which reviews the draft after the changes are made by the
House mentioned above and if changes are to be made, then the same is intimated to
the House of Commons (The judicial office international team, 2016).
Once the consent of both the houses is received then the consent of the Monarch of the
U.K. is required to be obtained as per the Royal Assent Act, 1967. The draft becomes
an act and enforceable when it is notified in the official gazette.
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Applicability of the Common and Statutory Law
English Legal System operates on the common law and the statutory law i.e. the
verdicts delivered by the court are made by considering both the laws. Common laws
are the laws which are developed over the passing years and which are being followed
from ancient times. Whereas, the Statutory Laws are developed by the Parliament and
are applicable to every organisation and citizen unless anything else is specified.
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M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
developments
Over the past various few years, changes or reforms are made in the legal system
which is essential for making sure that it is at par with the time period and the legal
practices. These reforms in the legal system took place in two different phases in which
the first phase includes the changes in the institutions providing the services of law and
second phase includes the changes in the fees structure of the legal practitioners and
the courts along with changes in institutions continues (Partington, M., 2016). In these
phases, the establishment of the Judicial Appointments Commission, Supreme Court,
Ministry of Justice, etc. was made. Moreover, due adoption of technology in the legal
system and the court, establishment of virtual courts was also made.
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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
judgements.
One of the most significant legal systems in the world is the English Legal System which
is even followed in other countries as well in order to make developments in their legal
system. This is a well-structured system in which the Supreme Court sits at the top and
all the other courts are regulated by this court and the judgment passed by this court is
to be followed by every court. All the cases which the Supreme Court deals with are the
case of high importance for the economy of the country (Wortley, 2018). Different
sources are considered by the authorities in order to enhance the effectiveness of the
laws on which this legal system operates. This also includes the decisions made by the
courts and the laws which are being followed by a long period of time i.e. Common law.
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Reference
 Besson, S. and d'Aspremont, J., 2017. The Sources of International Law. In The
Oxford handbook on the sources of international law (pp. 1-39). Oxford University
Press.
 Bright Knowledge, 2018. What is the difference between a barrister and
solicitor?. Available at: https://www.brightknowledge.org/law/what-is-the-
difference-between-a-barrister-and-solicitor. [Accessed on: 16.07.2018]
 GOV.UK, 2013. Legislative process: taking a Bill through Parliament. Available
at: https://www.gov.uk/guidance/legislative-process-taking-a-bill-through-
parliament. [Accessed on: 16.07.2018].
 Partington, M., 2016. Introduction to the English legal system 2016-2017. Oxford
University Press.
 SOAS Library: Research Guides, 2012, Sources of EU Law. Available at:
https://www.soas.ac.uk/library/subjects/law/research/file70378.pdf .
 The judicial office international team, 2016. The Judicial System of England and
Wales: A Visitor’s Guide. Available at: https://www.judiciary.gov.uk/wp-
content/uploads/2016/05/international-visitors-guide-10a.pdf . [Accessed on:
16.07.2018]
 Wortley, N., 2018. English Legal System. Oxford University Press.
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