Business Law Report

This report examines various sources of law, the role of government in lawmaking, and the impact of contract and employment law on businesses. It provides legal solutions for a case study involving a company in liquidation, justifying the solutions based on different country's legal systems. The report also explores the application of common and statutory law in justice courts.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Various sources and origin of laws that comply with in the organisations......................1
P2. Role of government in law making and common & statutory law is applied in Justice
Courts.....................................................................................................................................2
TASK 2............................................................................................................................................4
P3. Potential impact of contract and employment law on the business..................................4
TASK 3............................................................................................................................................6
P4.Legal solutions..................................................................................................................6
P5.Justification for the legal solutions....................................................................................7
P6. Legal solutions recommended based on different country's system................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The business or mercantile law defines as an acts and laws, which control as well as
govern relations in between public and organisations. It encompasses all regulations and laws
with dictating methods in which a company can run or operates its business (Bambara and
et.al.,2018). It is also useful in the process of solving commercial matters. In this report, it will
cover different origin of laws and role of government in making law with application of common
& statutory law. It will also include impact of contract & employment law on businesses.
Further, it will contain various legal solutions with its proper justifications. Lastly, it will include
legal solutions based on different countries legal system.
TASK 1
P1. Various sources and origin of laws that comply with in the organisations.
English legal system comprises the entire United Kingdom and consists of four nations
such as Wales, England, Northern Ireland and Scotland. In such countries, some laws and acts
apply in one, two or three nations. Main origin of these UK laws are Common Law, European
Union Law, Legislation and European convention on Human Rights Laws (Besley, 2015). The
English Legal System depends on three grounds that are European communities' law, statues or
legislation law and common law. All such laws are created under both private and public law and
govern the relationship between citizens, private organisations and state.
The legislation is made by legislature in the Parliament based at London. It is the main
legal body that has power to pass any act or law and this is applicable in all four nations. In this
context, there are two legislation systems in which the first legislation is known as primary that
describes as statutes and enacted by the Parliament of UK.
On the other hand, secondary legislation refers to delegation and created by different
legal bodies govern by any parliament authority. Common law is regulating different commercial
cases in Wales and England and decisions of the senior legal proceeding courts is the part of law
and act (Bodnar and Kenney, 2018). The legalisation is an act of Parliament that begin its life as
Public, Private, Hybrid and Private Member's Bill.
The European Union Law applies in the entire UK because it is the part of EU and the
European Convention on Human Rights that contains The Human Rights Act 1998 and it came
in to the effect from 2000. It is situated at Strasbourg and European Court of Justice that is
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situated at Luxembourg. Another element also mentioned in the declaration that it must moduled
in the ratio of undecided of the case that meaning reason for decision in Latin.
Common laws created under the principles, which established in the standardisation
throughout Wales and England. Its process running from the eleventh century to still (Brown and
Nagy, 2015). In the legislative process there are two main elements of Parliament House of
Lords that consists 825 unelected persons and House of Common 650 elected persons.
In the process of classification of laws, which describes under UK context, Civil Law
covers different areas, for example negligence, employment, contracts, family matters, land and
probate law. The other branch of public law is Criminal Law refers to boundaries of acceptable
conduct and if a person breaks this law then he or she will create an offence against society as a
whole and punishment provide according to the rules and regulations that provides in act. The
civil law is enforceable in England as well as Wales that there country's court deals with several
claims and cases that are involves less than £25,000. Most of the higher value cases heard by a
single judge in the high court which is situated at London. An individual who start a civil case is
known as claimant and whole burden of prove is laying on that person (Clarkson, Miller and
Cross, 2014). In this context, if he or she will be successful then an individual must gets proper
remedy of whole damages which may be money or kind form from defendant party. The court
will also punish the defendant and prohibit him/ her behaviour.
Health and Safety Act: This act was build under 1974 in UK which is complied in the
organisation for the health safety of every employee's. This act mainly focuses on the safety
hazards regarding health of workers within the firm.
Consumer Law: There are various rights which are used by consumers in regard to this law
which was build in 2015. Moreover, the consumer act is applicable in organisation to solve
problems regarding goods, credit, poor service, counterfeit goods etc.
Employment Law: This law states the issues related to workers recruitment, trade unions,
safety, reducing stress and so on. The act was regulated in 1998 which was complied in the
organisation to mitigate all this issues.
Fire safety: The fire act was regulated in 1947 and was applied by the organisation to provide
safety to employee's in case of any fire emergency. The facility of ambulance should be
efficiently provided to every workers in the firm.
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P2. Role of government in law making and common & statutory law is applied in Justice Courts
In United Kingdom, the Parliament has two major Houses that creates bill and further, it
will convert into the law or act that can be applied to all organisations. Parliament creates various
laws related to commercial and civil purposes. This process is known as development of bill and
its proposal made is made in the form of white paper at Parliament for consultation and it will be
prepared in draft format on green paper (DAILY and et.al., 2014). This draft goes by a passage
and become proper legislation and that bill can begin its journey of making a law.
Its process is describing as below: First reading – In this stage, the bill is reads by members in both the chamber or House
of parliament. Second reading – After reading in both the chambers, all peers and MPs creates some
discussion about all major principles of that bill and they may vote at the end of this
process, if they see a controversial thing in that particular bill. If this bill passes from the
House of Lords, then it will reach to next stage without any vote or discussion. Committee stage – In this stage, bill is view as line by line through special committees
members of the Parliament and makes several amendments for fulfilment of any
requirements (Fenwick and Wrbka, 2018). At this stage, the entire House of Lords
involve changes. Report stage – This stage will describe about the bill that will report to the House with all
changes or amendments and all MPs can check and review that amended bill. They also
suggest for any changes if not contains in last stage. Third reading – In this stage, members vote and debate on that bill in its final form. In
the House of Lords, all members still introduce any further amendments (Ferris et.al.,
2018). In general, the power is limited and responsibilities of this House is shows as
complementary according to the Parliament act 1911 and 1949. Royal ascent – For becoming a law, the bill needs to a Royal Assent that is given by
Queen and this will declare in both Houses. This stage of Royal Assent only formality
and there are no re-fusion made since 1707.
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 Turning into act – After accomplishing whole procedure in both Houses, the bill will
turn into Act from bill. Both the Houses, Lords and Commons must agree on the final
shape of a bill before it can become law.
Common law - The common law in UK refers to various act like Employment Relations Act
1996. In addition to this law, the rights, responsibilities, relations, legal practices are maintained
in the corporations. Moreover, the company law is defined as legal and basic practices to be
followed in firm. Manslaughter, common assault and murder are assigned as common law that
are applied in the justice court (Ghahramani, 2018). The courts provide remedies, punishments in
terms of an individual safety. In this context, the justice court apply the common law in court
that may also sue under the law for breach of contract of any wrongful and unfair dismissal. in
addition to this, the parliament is the supreme and common law that makes clear structure of
organisation in the UK country. The justice court apply this common law that helps every
business in operating managerial activities more effectively in UK. Common law is mainly used
by justice court in terms of their structure and hierarchy. This structure relates in maintaining
their Federal system, judicial system etc with the help of common laws. Moreover, hierarchy
structure contains of Petty Sessions Court. Parish Court, Supreme Court, Appeal Court and
Privy court which are maintained under compliance of common law.
Statutory law – The justice court interpret and apply the legislations in the concept of Statutory
law. Under the application of this law by the justice court, they governs laws in maintaining the
behaviour of court, individuals and even governments. Its impacts is seen in entire country
towards achieving the goal and objectives. This law which is created by parliament, constitution,
law commission or agreement refers to Statutory law. The justice court applies this law in
addition to make various decisions and judicial precedents that creates values that is made up by
several legislative endorsed bodies. In terms of common law, the judicial system make it
constitutional for the specific process to make changes effectively in the court. As the justice
court apply the statutory law, they make it more formal and enhanced in legal system that is
depended on the regulations and rules.
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TASK 2
P3. Potential impact of contract and employment law on the business.
In every organisation, there are many laws, rules, regulations and acts that may control
and govern all organisational activities so that the management team should comprises all laws
and follow several rules for operating its business (Harner and Rhee, 2014). In this context, there
is a case that arise in Adebonojo's family and they are in the critical situation. So for this reason,
there are describes the case and its solution as below under the legal letter formate:
Legal Letter
To Adebonojo,
In this case, the Adebonojo went to the Nigeria to meet the leading shipping and cargo agents
in regards to some meal inventory. Further it was identified that he was treated very badly by
supplier as they were selling normal quality products at the higher rate. In this situation, the
problem arises in Adebonojo business that affected negatively and should follow some steps
that helps in creating and naming their company. The contract and employment law can be
intimidating element for every company so the business need to improve their growth and
development (Landry, 2018). To make company more progressive they must mutually solve
issues that increases profitability and productivity. In this case Adebonojo must comply with
certain employment laws and ethics. Moreover, company should provide proper safety and
security for their potential workers and also for the customer. If all the steps are not followed
by Adebonojo, it will reduce potential customers and also profit of company.
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Legal letter
To Chukwuyedi,
This is based on conflicts regarding relation of employment and Chukwuyedi must follow few
advices in terms of making company more powerful and advanced in market. In employment
law, there are many factors such as grievances, bullying, discipline, equal pay, maternity,
harassment, parental rights, discrimination like age, sex and many more. Moreover this all
factors must be resolved by Chukwuyedi which helps in maintaining relation of employer's
within the company. It is the duty of the entrepreneur to look about workers that they must stay
away from any misconduct like swearing, Theft, Drinking on the job, Dangerous Behaviour,
Lying etc. If Chukwuyedi does not follow his duty in response to focus on employee's and
employer's then the company will not gain higher performance level in market.
Legal Letter
To Bob,
In this case, the Adebonojo and Bob are in the contract in which Mr. Bob receives inventory
from shipment and he found that the content are not exactly as he envisaged. So for this reason
he has the rights of consumer as according The Consumer Right Act 2015. It is a law came in
the place of three major acts that are The supply of Goods & Service Act, The Sale of Goods act
and Unfair Terms in Consumer Contracts Regulations Act. This is useful in providing safety to
the consumers and protect them. Bob must use provisions of this act and achieve desired targets
and objectives. In terms of late delivery of goods to Adebonojo, Bob should provide goods on
time which enhances the value of his business. Moreover, if the products are not delivered in
specific time period it reduces the potential customers in market.
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TASK 3
P4.Legal solutions.
According to the following scenario, John a computer programmer made a contract with
the Dean Rizvi LTD. Company for creation of a new computer program in the DVD format. This
will helpful for the known department store in improvement of their financial situation (Lee and
Harris, 2018). In this case, Mr. John start the work and made the design of that program but due
to some circumstances the Dean Rizvi LTD. Company goes in to the liquidation process.
Management team of this organisation appointed to the Mr. George as a liquidator and ordered
him to sell company's assets and pay to all creditors.
In this context according to The Company Act, there are suggestion to the management
of this organisation and the liquidator that they must adopts this process for sale their assets and
distribute to all their creditors. It is describes as follows:
 Secured Creditors with a fixed Charge (RBank)
 Expenses of liquidation (George's expenses)
 Preferential creditors
 Secured creditors with a floating charge
 Unsecured/ordinary creditors
 Deferred creditors
 Members or equity share holders.
So Mr. George must compile all these and conducts the whole procedure of liquidation
and Secured creditors with the benefit of a fixed charge, such as R Bank is in the strong position
so if their security amount is sufficient to satisfy their debt in full then they need not prove in the
liquidation at all (Lee and Harris, 2018). The R Bank should realise the security, which in this
case will cover £400,000 of the debt because the premises of Dean Rizvi LTD have been valued
at £400,000 and then prove in the liquidation for the remaining £50,000. In this context, As R
Bank will require proving that it have the borrowed money approximately £50,000 in the
liquidation and it defines that for this part of balance the debt owed to them, they want their rank
in the order of priority will fall to unsecured creditors.
Further, Mr. George's expenses of the liquidation are paid in the priority to all other
expenses (Macaulay, 2018). There is a suggestion also recommended that if the company’s free
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assets are insufficient to deal with all the liquidation payments then the assets subject to a
floating charge can be used by virtue according to the Insolvency Act 1986.
According to the Contract Act, it refers to contract term that it is an agreement made in
between two or more parties and enforceable by law. In contract, there should be minimum two
parties compulsory that are an offeror and an offeree. Both are communicated in clear terms and
fulfil all rules and regulations. In this context, there are two essential things, first is acceptance
and it is an unconditional expression of willingness or temperament to be legally bound by all the
terms of a particular offer that have been communicated to the “offeree”. It must be
communicated in both the parties (McDonald, Hochkammer and Wernikoff, 2018). In the other
hand, the Consideration and it is discusses as English law enforces bargains not gratuitous
promises. Consideration means an act or a promise given in exchange for the promise. Every
contract is generally a promise is unenforceable unless supported by consideration. The contract
is useful in the case of Dean Rizvi LTD.
In this case Mr. John has a position of creditor in such circumstances and he must receive
the amount or value for his work. As the scenario, he had been made the design of that particular
computer program in DVD format. All creditor makes a petition in the court and want to recover
their amount.
P5.Justification for the legal solutions.
In the case of Mr. John and Dean Rizvi LTD. Company, there are many rules and
regulation uses in it for example The Contract Act, Company Act and many more. Justification
about the company act, it is used in this case to solve the problem or conflict arises in between
creditors and the management team so that there must be needs of a proper legal solution and
regulations (Talley, 2018). In this context, management should consider these legal solutions in
account to solve all such issues. They may be the reasons that lead the judgement to take for the
decision or any other statement disclosed by the process of justification as better adequate to
justify the determination reached hence there are judgements and insights of values (Vastardis,
and Chambers, 2018). Mr. John must receives the contract amount as his work done because he
made the design and further work can not be done by anyone because it is a personal capability.
He took a contract for creating the computer program that will useful in the store department for
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solving their financial issues but during the period he falls ill and can not make the computer
program fully. He had been made partly project that is understood as the design of that computer
program and after some time the Dean Rizvi company goes in to the liquidation process by any
reason and its all assets are sold and creditors will receive payments for their dues. In this
context, John also demanded for his work and George who is the liquidator of that organisation
is in the ethical dilemma so that all acts like employment act, company act, contract act and
many more acts useful for solving all such problems and John would be able to receive partly
amount.
In this context, there is only a perfect suggestion for John that he must go for a legal
consultant and take some advice for his any due amount and get the better legal solutions. In this
case the Dean Rizvi Ltd. Required to follow the best plans and strategies for eliminating all those
critical situations (Bambara and et.al.,2018). The management of this company must apply the
better solution and George who is the liquidator should provide appropriate suggestion in the
liquidation process and sale all assets at the higher price so that the management will able to
accomplish all their dues and make sure all creditors will satisfy from the distribution.
P6. Legal solutions recommended based on different country's system.
In business, everyone enters with some clauses. Everything is good when delivery of
goods is done on time but when it delays the laws are being exucuted. Contractual disputes are
ongoing these days. It should be company's priority that the manufacturing and delivery of goods
is performed on time. The team working unde this should dissolve the issues related to delivery
of goods (Besley, 2015). Similarly, Ali D fashion textile Lltd also faces the same situation of not
delivering goods on time. ADD company is based in Pakistan which has signed the terms to
deliver the goods in England on 20 Feb 2017. In this AAD fashion and Craif culture went into
arbitrual clause to resolve their issues. As the delivery has noy been done on time, England has
its ow territerial rules to solve the disputes. In England, the immediate action on this problems
are not been undertaken.
AAD fashion deals with fashion bulk which signed the order in England. But this
company failed to provide goods on time. England has its own rules in terms of contractual
disputes (Bodnar and Kenney, 2018). In England, the law refers to claims by company
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representatives to the one who failed in giving delevery on time. Collective actions are to be
undertaken.
IN ENGLAND,
This country provides legal actions in convinient and in cost-effective manner. It applies
1996 Act to provide services in laws. Here, they apply three types of pattern in which, English
laws are applied in England, Northern laws in Northern states and Scot laws in Scotland. The
contract claims here is for six years. AAD company fails to provide its delivery on time which
fails under arbitration clause.
IN PAKISTAN,
The Pakistan rules are based on the system of British rules. It is also common to England
laws. They follow according to Islamic learnings. Many laws in Pakistan are followed under Act
of 1947 and 1957.
ARBITRATION CLAUSE
In this clause, company's enter to solve their issues in context of not delivering goods on
time. Its not necessary that this clause is applied uder court orders,infact it can be performed
outside the jurisdiction. This clause also reduces the load from the court as they can be resolved
outside. This law is compulsarily permitted and joins both the company again as before. They do
not include the weaker persons in these orders (Brown and Nagy, 2015). Some formal clauses
like solving this issue must be settled under arbitration. As per this clause, Craig and Sadie
couture company in England gave the second chance to Pakistan based company named AAD
fashion Ltd to deliver goods on next date that is 28th March,2017. But in context to this, AAD
Ltd again failed for its delivery. IN England, breach of contract is applied to pay for the loss of
company by not delivering products on time. Considering this, for non-delivery AAD Ltd has to
pay loss of $300000.
NEGOTIATION CLAUSE
In this clause if the case is entered, then the affected company must forward the notice to
the next party, and they shall solve the disputes within 10 days after notice date. In this, the
problems must be settled between two parties. The solution must be in good faith such as both
the parties must not reach to senior level of executives for resolving disputes (Clarkson, Miller
and Cross, 2014). The parties must draft together in order to work jointly in future. Lastly, if the
disputes are not resolved in Article 9 then both parties must prefer to senior management. If the
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senior is also not able to resolve in 30 days then party should go through other clause like
Arbitration and Mediation clause.
MEDIATION CLAUSE
If the employer and management makes good faith to resolve the disputes then it must be
resolved here within 40 days after notice is been served. If employer does not pay full fees, then
employer and executive should have to pay equally. If purchaser and seller agrees to fill in the
mediation clause then they can select their mediators as agreed by both. Later the mediator will
talk to both the parties and then he will arrange the most easiest and comfortable way to solve
thge issue (DAILY and et.al., 2014). Any problem which may arise in this agreement, which
may be between employee, directors, agents ,etc, it must be first forwarded to the mediator.
Because he is the one to solve the same disputes. Lastly, coming to the conclusion, the Craig
Couture Ltd, took the case in UK court against AAD Ltd .They also agreed to follow the
arbitration clause to solve their disputes.
CONCLUSION
In this above presented report it concludes, various sources or origin of laws or acts
which are complied by every organisation and role & duties of government to make a law or act.
It also contains the statutory and common law that are applied in the justice courts. Further, it
includes the potential impacts of contract and employment law on the organisations.
Furthermore, it covered appropriate legal solutions for the problems or issues raises in the Dean
Rizvi Ltd company in its liquidation process. Lastly, it contains proper justifications that may use
in this case and also useful for solving various conflicts or problems.
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