Laws in Business Formation & Structure

This assignment delves into the significance of laws in establishing and managing businesses. It examines the structure of the English legal system, assesses its effectiveness, and provides legal solutions to various case studies presented within the document.

BUSINESS LAWS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION ONE...............................................................................................................................1
P1 Structure of the English legal system and different law sources that entity can follow.. .1
P2 Role of government in creation of laws and the method of application of statutory and
common laws in the justice courts..........................................................................................2
M1 Effectiveness of the legal system in terms of recent development..................................3
SECTION TWO...............................................................................................................................3
P3 a) Employers' legal obligation's evaluation.......................................................................3
b). Employment and contract law that will impact upon the present scenario.......................4
M2 The effects of regulations, legislations and standards.....................................................5
SECTION THREE...........................................................................................................................5
P4 Appropriate solutions for the business problem in different case scenarios.....................5
P5 Justifications of the solutions with relevant cases.............................................................6
M3 Positive and negative impact of legal solution................................................................6
D2 Evaluate the use of appropriate legal solution in comparison to the alternative legal advice.
................................................................................................................................................7
SECTION FOUR.............................................................................................................................7
P6 Concepts and benefits of using Alternative Dispute Resolution process..........................7
P7 Recommendation of alternative legal solution..................................................................7
M4 Comparison of both the recommendation........................................................................8
D2 Evaluation of the use of appropriate legal solution than advice.......................................8
CONCLUSIONS..............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business laws are important in running and forming strategies of business. This includes
all the regulation that all the entities have to follow. This learning covers all the aspects of the
business laws. The role of government in creation of regulation along with the application of
these laws in justice court is present in the study (Kubasek, Brennan and Browne, 2016). Also,
legal obligations of the employees working in an organisation is there in the learning. Further,
this assignment revolves around some case studies and depending upon these cases appropriate
legal solutions are also mentioned. In order to evaluate the effectiveness of the implemented
regulations in an organisation, they are compared with the implemented laws in some other
entity.
SECTION ONE
P1 Structure of the English legal system and different law sources that entity can follow.
English legal system follows a hierarchical structure in which there are two main
branches the force of the legal system and the courts that forms the system. The English courts
system consists of:
 Magistrates' Courts: These are that element of the structure that deals with mainly three
type of cases which are less serious such as driving offences and minor conflicts.
 Country Courts: These are the administrative divisions in a nation with the legal power
covering one or more countries.
 Crown Court: These courts only hears the criminal cases of the nation. The cases
involved are murder, rape and robbery (Clark, 2017). Further, it helps in appealing
against the magistrates' courts.
 High Courts: The high value and highly important cases are dealt by the High Courts.
There are three subdivisions namely, Queen's Bench, the chancery and the family
division.
 The Court of Appeal: These courts hear the appeals made against the civil and criminal
judges of the crown courts, high courts and the country courts.
 The Supreme Court: It is the highest judicial court in UK. It maintains and develops the
role of the highest court in the United Kingdom as a leader in the common law world.
These laws originated from some sources. Further, there are also some law sources which
organisation should comply with:
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 Primary Sources- This source contains authorised statements of the law only and comes
in the following form:
 Case Law- These are that reports which are accomplished from the end of the courts.
It consists of the full judgement along with the facts and the judicial reasoning of the
judges (Qi, Roth and Wald, 2017). Also, it carries drumhead of the legal issues.
 Legislation- There is no complete written constitution of UK but partially written and
entirely un-codified. The written laws are introduces in the form of legislation laws.
 Secondary Sources- This sources is referred to the statement on the law and can further
divide as follows:
 Legal Encyclopedias- It consists of the key points, the cases and legislation, thus, an
impelling source for research.
 Parliamentary and Non- parliamentary publications- There are some sources such as
command papers, parliament debates, house of commons and house of lords papers,
non-parliamentary publications that helps in acquiring knowledge.
 Law commissions and law journals are also secondary sources that helps
organisations in acquiring the understanding of law.
P2 Role of government in creation of laws and the method of application of statutory and
common laws in the justice courts.
Mainly, there are three functions that are to be played by the government in the law-
making process and these roles includes, representation of the public interests, law passing stage
depending upon those involvements and monitoring the actions taken by the government. The
first step of duty in law-making for government is to prepare a bill and then proposing it to the
parliament (Bernstein, Korteweg and Laws, 2017). This bill is then presented in front of both the
parties existing in the parliament house, the present ruling house and the opposite party. Both the
political party uses several steps to verify the bill. First reading is done as official note after that
it is sent to individual MP for further reading. When both the parties read it, a debate is
conducted followed with the voting. Depending upon the results of voting, when the bill is
accepted by both the houses it is then passed to the higher authorities for their acceptance where
the Queen will check that bill. If the will gets a pass from the house of lords it will become a act
or law.
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Both the laws namely, common and statuary are crucially important to serve the justice.
These laws are applied to the courts in different methods. Common laws are the ones which are
designed by the judges depending upon the numerous lawsuit and that is why they are also
known as the case laws. In contrary to this, Statutory laws are developed by parliament and
various government agencies for providing convenience to the justice courts (Martin and Rice,
2014). Both these laws varies widely from each other and thus, the method of their
implementation in the courts are also different. Common or case laws follows several steps for
implementation such as a deep research analysis depending upon the former cases, infusion of
the vital statements from these lawsuits and then they are passed in order to apply. Further, these
decisions are sent to the higher courts and after getting a pass from them, they are applied in the
lower ones. Whereas, in context to the Statutory laws which are already written by the
government, these are exactly practised by the justice-tribunals.
M1 Effectiveness of the legal system in terms of recent development.
Effective legal system is the necessity for advertising the rule of law. The recent reform
and development involves numerous thing such as ICT implementation to serve the legal power.
It helps in making the files electronic which covers less safe and are more secure. It also helps in
presenting online cases to the public through which they can relate, if needed (Karpoff and
Wittry, 2014). In addition to this, it requires less storage space and flexible to use. All these
features will influence the system to implement computer assisted programmes in their
workplace and hence, the errors will be minimised. Also, e-services will ensure that the right
case is applied. Besides this, commitment to customer service delivery and specialist courts are
also crucial development that brought effectiveness in the legal system.
SECTION TWO
P3 a) Employers' legal obligation's evaluation.
There are some roles and responsibilities to be played by organisation for the employees
working their. Some major obligations involve-
 Occupational health and safety: Law states that employers are responsible to
manage health and safety of the employees. The further information for the health
and safety of the workers can be attained from the health and safety law proposed
by the government. According to the act of Health and Safety, 1974, it is foremost
duty of an employer to determine the factors that can harm the employee and then
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evacuate them from the premises. Also, they can take steps in order to empower
the health edge by providing employees with medical insurance.
 Worker Compensations: Some obligations employers need to made for worker
compensation are Worker's compensation insurance, providing knowledge of this
right to every employee through posters, providing accommodation to the injured
worker, etc. According to National Insurance (Industrial Injuries) Act, 1976, all
employers are obliged to purchase employer liability insurance.
 Harassment:Harassment is considered as the unlawful under the Equality act
2010. Further, in case the harassment and bullying still not stops they can call the
ACAS helpline for advice.
 Equal Opportunities: According to the Equality Act, 2010, every employee has a
right to get equal opportunity irrespective of their race, colour, gender, etc. The
implementation is law will help the employees in gaining equal rights and growth
chance to prove themselves.
b). Employment and contract law that will impact upon the present scenario.
There are numerous cases present in the legal system to assist the employees within an
organisation and breaking them causes affect to the employees. Several important laws which
will impact the present scenario involves employees health and safety law, negligence law,
safety standards, etc. In the present case, a 16 year old teenage girl got injuries during work.
There are numerous laws that can be used by the girl, such as Health and Safety Act as there
were no preventive measures, Life risk regulations as there were damaged equipments, etc. It is
needed for the entity to keep effective safety measures so that they can be used in emergency
situation. These standard will help the entity in increasing the satisfaction level of customers
which will directly impact upon the overall performance of the entity. Also, on the day when she
got injured there was short staff, the team leader was not present art that time on workplace
(Martin and Frost, 2017). However, large employee figure and new equipments will increase the
cost of the organisation. Despite of this, required number of people and machinery should be
there so that work can run effectively. In addition to this, if the firm will follow all the laws of
contract than it will reduce the risks and also, there will be clarity between employees and
employers about their expectations from each other.
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M2 The effects of regulations, legislations and standards.
All the illegal activities are based on different factors. Companies should maintaining
strict regulations for the safety of the workforce. For instance: if there was regulation on the
presence of leader at the accident spot then the incident may not happened. Further, the fast food
stores was also not following the health and safety act otherwise there will be immediate safety
services to help the burned child. Also, the age was not considered before assigning the task. IN
context to the standards, then the firm completely fails in that as all the incident was result of
faulty ice making machine. Hence, the entity is required to replace it with no time to avoid any
accidents in future. The most important factor among them is the legislative factor as following
it, the injury can be prevented.
SECTION THREE
P4 Appropriate solutions for the business problem in different case scenarios.
1). The first scenario revolves around a designer, Calvin who was fired from her job by
the employer Donna for the crime of stealing 100 pounds from the boxes. However, the crime
against her was not proved. Thus, Calvin faced unfair and wrongful behaviour. In this context,
Calvin may take legal steps such as Harassment act as she got harassed by the owner, Calvin in
front of other employees. Also, Donna said- “she would not have a thief like Calvin working
there any more”, for this Calvin can file a Hate Speech case on Donna. Also, the crime was not
proved as there were four more employees when this incident took place so she can use wrongful
Dismissal Protection act against Donna. In context to Calvin, she can use Employee Theft law
against Donna. However, it should be noted that she requires a proof to prove her guilty.
2). In the second case, the victim Kevin whose father Dan owns a small convenience
store faces fire in the store to which he opened a new store somewhere else and applies for fire
insurance. In that form there was a statement that he has not taken any claim from past 2 years to
which he replied no, but in fact that incident happened 23 months ago. Unfortunately, the new
store also faced fire and the insurance company refuses to pay to Dan. In this case, Dan was
although in guilt of negligence but still insurance company should provide him some
compensation as the mistake made was not intentionally. In context to the fire insurance , the
company can use the termination of contract law as Dan has signed the agreements which clearly
contains that "No claims are done in past 2 years". However, it may be noted that Dan has faced
this fire situations twice and thus, he can use the tool rescue from insolvency and liquidation.
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P5 Justifications of the solutions with relevant cases.
In the first case the solution provided involves taking steps against the harassment, unfair
act, wrongful dismissal protection act. As there were four more employees present at the time of
robbery that is why Donna has no right to fire Calvin without any evidence so Calvin can use
wrongful dismissal act against Donna (House, Kasper and Ross, 2014). Also, there should be
presence of entity premises to solve the crime. Further, she has no right to harass her in front of
other employees. She can use other workers as eye witness and appeal against Donna for
harassing her. Further information can be accessed through the similar case with link provided
below:
DHL to pay $2.3m for wrongful dismissal
http://www.guardian.co.tt/news/2017-07-28/dhl-pay-23m-wrongful-dismissal
The second case revolves around Dan who by mistake accepts the terms written in the
insurance form and thus, the insurance company refuses him to pay for the fire losses he faced.
As it was not a null-void term, rather it was complete misunderstanding and that is why he can
appeal against the insurance company for compensation. A case link is provided below to access
the relevant case statue:
Jessica investigates: why won't Tesco Insurance pay my house fire claim?
http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/jessicainvestigates/
8924004/Jessica-investigates-why-wont-Tesco-Insurance-pay-my-house-fire-claim.html
M3 Positive and negative impact of legal solution.
Both merits and demerits are associated with the legal solution.
Firstly, the advantages are:
 Aids in avoiding the dangers of dishonest and biased decision buy the employers.
 Law principles helps in protecting the justice administration from the individual
judgement.
 They are more reliable the other judgements made by individuals.
The disadvantages whereas involves the following:
 Rigidity is the biggest disadvantage of the law, laws must adjust according to the needs of
the people.
 One of the demerits includes its complexity in implementation.
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D2 Evaluate the use of appropriate legal solution in comparison to the alternative legal advice.
In the first case when Donna fires Calvin, Calvin should put the immediate actions
against her. She should not leave the place rather should stay their and solve the mystery of thief.
In this context, Calvin may take legal steps such as Harassment act as she got harassed by the
owner, Calvin in front of other employees. Also, she can use Hate Speech case wrongful
Dismissal Protection act against Donna. In contrary to this, Dan the character of second case
should not be such careless he should check the terms before signing and also, he should check
the papers before. The laws that can be used by Dan includes termination of contract law and
rescue from insolvency and liquidation.
SECTION FOUR
P6 Concepts and benefits of using Alternative Dispute Resolution process.
Alternative dispute resolution is that process which assists entities in solving the conflicts
rising between them. There are various tools of this process namely, negotiation, mediation, etc.
The biggest advantage of implementation this process is to evacuate the egos and other issues
between the business partners to bring effectiveness in their business that will help in boosting
up their performance leading to the profitability (Slapper and Kelly, 2013). This method also
involve the risk management factor for the enterprise.
P7 Recommendation of alternative legal solution.
In the present case study, Antwon has a large investment firm and disputes with an entity
whose owner is Tyrell. There two effective methods that entities can adapt to resolve their issues
and they are as follows:
 Arbitration- In this tool, a third neutral party looks on to the case and suggests them a
solution to solve their conflicts (Clark, 2017). Both the parties have no role in the
solution making process.
 Mediation- It is also an impelling technique to resolve the issues through the help of a
mediator. This resolution method involves both the effected parties in solution making
process.
M4 Comparison of both the recommendation.
For the present case, mediation is more effective tool as compared to the arbitration as it
will provide a chance to both the effected parties to share their view points so that an impelling
solution to resolve their conflict can be prepares. Also, this technique will involve both the
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parties in conflict resolving procedure and thus, they will be more satisfied with the decision
taken. In contrary to this, arbitration involves a third neutral person will apply laws to make a
decision and is unaware of the exact issue that are being faced by both, thus it is not appropriate
in present situation.
D2 Evaluation of the use of appropriate legal solution than advice.
This case needs an appropriate solution rather than a legal advice so that they can fix all
the conflicts rising between them otherwise the entire work will be affected resulting in the high
loss to the company. Also, advices are sometimes biased and may not liked by both the parties
and contrarily, laws are neutral which will be followed by both the conflict holders.
CONCLUSIONS
This report is based on the essentialist of laws in forming and running a business.
Structure of the English legal system is also discussed in this assignment. Further, the
effectiveness of this system is also evaluated. This learning moreover involves the legal solutions
and advices to the various case problems present in this report.
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REFERENCES
Books and Journals
Bernstein, S., Korteweg, A. and Laws, K., 2017. Attracting Early‐Stage Investors: Evidence
from a Randomized Field Experiment. The Journal of Finance. 72(2). pp.509-538.
Clark, R. B., 2016. Records, Reports, and Inspection Rights. Ballantine and Sterling California
Corporation Laws. 2.
Clark, R. B., 2017. Management: Duties And Liabilities Of Directors And Controlling
Shareholders. Ballantine and Sterling California Corporation Laws, 1.
House, J., Kasper, G. and Ross, S. eds., 2014. Misunderstanding in social life: Discourse
approaches to problematic talk. Routledge.
Karpoff, J. M. and Wittry, M. D., 2014. Test identification with legal changes: The case of state
antitakeover laws. Unpublished working paper. University of Washington.
Kubasek, N. K., Brennan, B. A. and Browne, M. N., 2016. The legal environment of business: A
critical thinking approach. Pearson.
Martin, J. and Frost, T., 2017. Unlocking the English legal system. Taylor & Francis.
Martin, N. J. and Rice, J. L., 2014. Influencing clean energy laws: an analysis of business
stakeholder engagement. Business Strategy and the Environment. 23(7) .pp. 447-460.
Qi, Y., Roth, L. and Wald, J., 2017. Creditor protection laws, debt financing, and corporate
investment over the business cycle. Journal of International Business Studies. 48(4). pp.
477-497.
Slapper, G. and Kelly, D., 2013. The English Legal System: 2012-2013. Routledge.
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