Business Law and Legal Framework

This assignment delves into the crucial role of business law in establishing and governing commercial operations. It examines the legislative process, highlighting the parliament's function in enacting laws. The case of Solomon and Solomon is analyzed to illustrate key legal principles. Additionally, the importance of arbitrators, mediators, and their approaches in settling civil disputes are discussed, emphasizing the promotion of amicable resolutions and fairness for all parties involved.

THE LEGAL FRAMEWORK
AND LEGAL SOLUTIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Sources of laws......................................................................................................................1
P2 Role of government under procedure related to law making.................................................2
LO2..................................................................................................................................................3
P3 Employment and contract law impact on business................................................................3
LO3..................................................................................................................................................4
P4 Appropriate solution to business problems............................................................................4
P5 Role of Alternate dispute resolution......................................................................................5
LO4..................................................................................................................................................6
P6 Solutions based .....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
There is a vital importance of business law under business without that it is impossible
for the business to conduct their operations in working environment. For conducting their smooth
operations it is important for the business to have the knowledge regarding the business law and
essentially time to time take possible advices from various specialists in form of attorneys, legal
advisor and advocates who guides down the business regarding the laws which essentially helps
them to make their operations meaningful and also helps them in raising their
objectives(Rescorla, 2015). The present report is based on the EBMS Which is a business school
of management and gave various branches across the nations and situated under UK. They
conduct the programs in which they tell about the importance of business laws and also explains
about the different sources regarding it and also explaining the various sources of law and tells
about the company and what is the role of director in regard to it and what are the essential
requirements have to complete it by a company for taking certificate of incorporation.
TASK 1
English legal system
English law is considered as one of the common legal system, it has no specific formal
codification. It is made by the judges those who sit in the high courts.
Civil law
It is related with common law but in civil action crown do not take any legal action against the
wrong person.
Criminal law
It is concerned with the law with offences. If any person implement any crime then under
this law individual gets punishment for their mistake. It is the type of legal system which is made
by crown and drafted by government. It is further passed by parliament before final acceptance.
Sources of English law
The various sources of law that the organisation need to comply while performing their
functions are as follows:
 Legislation or Statutory law:It is a law which essentially made by the parliamentary
under UK and parliamentary is body who is going to act under this. It is a law whose
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structure and creation is set up by the legislature of the country. The parliament is
essentially had a right to bring down the changes and amendments under the existing
laws and also create a new law and that law is applicable to the whole nation(von Benda-
Beckmann and von Benda-Beckmann, 2017). It includes various schedules and articles
and different things are mentioned under different clauses and articles and it is mandatory
for the country to follow such clauses and articles which essentially helps them to
perform their business operations and also talked about the rights of individuals and by
using such rights they can enjoy down the society and country and it can not be restrained
by anyone from them. In UK, the legislature delegates the authority to the local
authorities and bodies regarding law making. It also includes Statutory rights, council
orders and bye laws and it also given power to the local courts regarding interpretation
under statues, international treaties etc.
 Common Law:In UK the legal system is essentially based upon common law and ability
related to decision making are possessed in the hands of senior appellate and the decision
which they made is considered to be a part related to law.
 European Law:The UK nation is considered to be member state of the European Union
and it generally means the prioritise given to European law firstly while compared them
with UK law.
 Convention on Human Rights:The nation is a member state of the European Council
and it enables all the courts under UK to protect the rights which is identifiable under
human rights convention in Europe.
Act of parliament
The step by step process is been followed under the UK regarding the law and
they are as follows:
 Bill:In this process the drafting of bill which is essentially the responsibility of civil
lawyer and that bill as per the direction of government. It includes the three bills in form
of public, private and private member bill. The public bill involves the larger number of
peoples, society so the responsibility regarding to such preparation is essentially in the
hands of Cabinet. The private bill includes the individuals and the duty regarding it
preparation is essentially in the hands of Local authority and corporation related to public
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and private(Gilson and Gordon, 2013). Private members bills involves the bills related to
the act which prepared by MP and some of them going to become an Act.
 First reading:The reading process is conduct by the House Of Commons and no step is
going to taken on such stage.
 Second reading:The debate and discussion work regarding such bill is conducted in the
house of Chambers regarding their feasibility and the voting process is done which makes
decide that whether it will be going to pass or not.
 Committee stage:In this stage the bill represented to the House of Commons for detailed
checking ad inspection. Afterwards, it been cleared that whether it required further
amendments or not.
 Report stage:In this the discussion and amendments is made by the Committee regarding
bring back the bill to the house again. The bill again debated and voted by the members
under the house of commons.
 Third reading:In this the bill again sent back to the house and the short discussion is
been made regarding that bill and also voting process is been conducted in support of the
bill regarding their acceptance and denied.
 House of Lords:The House of lords check the bill and review it and after checking they
again sent back such bill to the House of Commons to consider down the changes and
amendments.
 Royal Ascent:This is the last process under this when all the steps regarding such bill is
conducted then afterwards it sent to the parliament and the decision making regarding
such bill is in the hands of parliament(Robson, 2015). Once the royal ascent is made by
the parliament that helps them to decide that whether such bill going to become a law or
not. If approved by the parliament then such bill is converted into an act or a law.
Impact of law
Employment law states the duties and rights of employees and employers. It is related
with the labour law in which no employer can discriminate the person and ca not terminate them
without giving prior notice. For example if any employer discriminate any workers and workers
complains against the employer then individual may get punishment and licence of the company
can get cancelled.
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Consumer law
It is the type of law which provides regulations for consumers in order to create more
equitable balance for buyers. For example if any company circulate dishonest tactics then
customer can complain against the owner. In such condition entity has to pay compensation for
their mistake and their licence can also get cancelled.
The employment law potentially impacts on business performance because the
employment contract is been made between employer and employee which clear down all the
rules and regulations related to it and also cleared the responsibilities. The regulations provide
improved disciplinary procedures and also provide a better work life balance. It also cleared the
rules and it also guides the employee regarding the organisation rules so it helps them in
conducting smooth range of operations(Jones and Sufrin, 2016). Example:In company the John
misconducted under the office and dismissed by his Neil an employer and dismissal is made
without giving appropriate notice to them and the reason behind it that he continuously been
absent from the workplace and he issued fake medical certificate and handed to their employer
and the reason mentioned regarding his illness. When the Neil conduct inquiry he gets
information regarding that he dismissed John from the Job and the termination is made as per the
contract employment terms and conditions and John cannot made suit against his employer under
the court.
The contract law is a law which is essentially for both the parties to follow down
the contract terms and conditions for which they entered for conducting down business. In case
of breach of conditions from any one side the contract becomes void and the plaintiff party can
made suit on court and the contract terms and conditions is very essentially for conducting
smooth running of operations so that roles and responsibilities will be cleared and objective can
be raised and also the goodwill of both the parties will be create in the market(Allen and
Kraakman, 2016). Example:The PHB limited company entered down a contract with Mr Nelson
regarding to change down the damage parts and using down the new and branded parts on their
vehicle and suddenly the contract is been entered between them and the PHB limited company
breach the contract terms and conditions and change the damage parts with the new parts without
branded and when the Mr.Nelson gets the knowledge he made the suit against the company in
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the court of law and the decision come out that the defendant has to pay down the compensation
amount to the plaintiff for the violation of contract and the loss which he made to them.
TASK 2
Appropriate solution to business problems
Sole trader:It includes the individuals who having the legal responsibilities relating to the
control of entire supply in the market and been responsible for all the business functions and
operations which performed in the market. Example:Clear sky accounting. Sole trader is not
required to follow any legal regulation. It is not require to follow company act. Sole trader needs
not to file tax for their business, profit and loss of the company is linked with the personal
income tax statement of the owner. There is no specific legal structure for sole traders.
Partnership:As per the partnership act,1890 it means two or more person are involved to
conduct down the partnership business and the sharing of profits ad losses and carried down the
business activities as per the contract for which they entered in the business. Example:DLA
piper. Partnership firms have to follow company act and have to follow guidelines of
International accounting standards. Both partners need to register their firm and have to show
profit or loss of the company ion their financial accounts.
Registered Company:Registered company is a company which is registered and having official
records of the registrar of companies and it is created under the companies Act,1862 and having
separate legal entity distinct from its share. Example:Agatha Christie Ltd. These are such firms
which are registered under company act. They are limited entities. It is essential to follow
international accounting standards and have to prepare financial accounts according to these
guidelines.
Solomon vs Solomon Ltd
It is a case related to the limited company in which Salomon transferred down their
business related to the making of boots which is essentially based on sole proprietorship, to a
Company Salomon Ltd which incorporated by his members in the family and the transfer was
made by way of shares and debentures have floating charge on the assets of the
company(Appelbaum and et.al.,2016). Later due to failing of business, the company goes into
liquidation and the Salomon's right of recovery against the debentures which stood prior as
compared to unsecured creditors and they got nothing from such liquidation. To avoid such the
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allegedly complaint the liquidator on behalf of the unsecured creditor said that the company was
same, was essentially an agent of Salomon and he was the principles itself was personally liable
fort the debt and he can continue to conduct their business as a sole trader in the market.
In favour of that there are many appeals been made regarding that cased in high courts, house of
lords and the final decision made by house of lords that the Salomon and limited company is a
company having separate legal entity and it is the company who entered into the contracts and
the debts which made arise is the responsibility of company not by its members.
In order to register the new firm, owner is required to follow four major steps:
 Acquiring digital signature certificate (DSC)
 Acquiring director identification number (DIN)
 Filling an e form
 Incorporate the company
DIN is the first process in which director has to obtain identification number on the bases
of this number e form is being filled by the directors. DSC ensure authenticity of documents that
are being presented by the director in order register the firm. New user registration is being done
in MCA portal in which individual has to fill all necessary details about the firm. Once MCA
portal is being completed then individual has to apply for the registration of the firm.
Director plays significant role in the company. The person is responsible for controlling,
directing the firm. Director allocate responsibilities to employees as per their skills and
competencies. Individual plays role of promoter for the success of the firm. Director concentrates
on business activities and try to avoid conflicts in the business.
TASK 3
Role of Alternate dispute resolution
There is a great role of ADR in order to promote down the settlement. It includes
the arbitration and mediation which are the two most important authority which play down a role
under this in regard to solve down the disputes and related matter. It was a mechanism that was
introduced under the legal services authorities act,1987(Law, Buhalis and Cobanoglu, 2014).It
provides down the alternative solutions to the parties in regard to solve down the cases and
disputes related matter which arise between them.
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Arbitration:It is a way of settling down the civil disputes without the intervention of court. It is
a common method of settling down the civil disputes and related matter which made arise
between the parties by an arbitrator so that they don't have to go to the court again and again. It is
one of the appropriate method of solving disputes related matter between the parties in an
appropriate time manner so any of the party's goodwill will not be affected and the decision take
by them in form of arbitral award.
Mediation:It is also a method of resolving civil disputes which made between the parties. It is a
process similar to trail and the third party takes down the decision which essentially based on
neutral basis so any of the parties will not get affected. They examine down the problems which
occurred between the parties and provide appropriate solution in that regard to promote down
settlement between them(Foss and Knudsen, 2013). The individual can be a third party under this
who is intervenes by the other parties to take down the decisions and promote settlement of the
case.
Negotiation:In this the disputes can be settled between the parties regarding the conflicts with
the goal of trying to find out the correct solution on the basis of communication process and that
work can be done in good faith. The negotiation can be done with the help of lawyer or it can be
done without the lawyer as well.
TASK 4
Solutions based
a)Legal advice -role of solicitor/Barrister-No fee No win
In this the government endorses the no win no fee model and they introduced this
under damaged based agreements and where a lawyer take a percentage amount regarding the
damages that been awarded to their clients. It is a promise between the barrister/solicitor with
their customers that if he is not able to defend their case then don't pay any amount to them don't
give any percentage to them and this model effect the culture and also arising the fraud( Hess,
2015). They generally provide down the services to such people who are not in a position to
afford down the injury claims, not have ability to fight towards unfair dismissal or seeking for
compensation on the grounds of medical treatments so these agreements are essentially settles
for them.
b)Consideration of alternative source of legal advice
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Citizen advice bureau
The citizen advice bureau is a network under UK which involves 316 independent
charities throughout the UK and they provide confidential information to individuals and also
helps down them and assist them money so they can meet out their needs and will get relieved
from their problems.
Neighbourhood advice centres
The neighbourhood advice centres is provided down the advice and information
on immigration related to the individuals and related to the welfare of the individuals who
belongs to the UK itself.
Legal consultants
Legal consultants is a professional who provide down the legal and experts
advices to individuals related to their operations and business and that work can be essential
done and based on contractual basis. The providing legal advice to the company and essentially
charged fees for that(DuPlessis and et.al.,2017).
The person who is facing legal problem from past few years, individual can chose
solicitor in order to resolve this problems. If any special advice require by the person then
individual can select barrister. It is convenience alternative legal advice because by this way
person can resolve their legal problems easily. There are many international bodies which work
to give satisfactory advice to the person who is suffering from legal issue. These are such as
Citizen's Advice Bureaux (CABS), Staffed by volunteers, etc.
Apart from this individual whoo is suffering from legal issue can claim in the court . AA
and RAC are the monitoring organizations those which provide necessary legal advice to the
individual.
CONCLUSION
From the above report it can conclude that the business laws is essentially concept under the
business because it helps down business in conducting out operation and made their activity
meaningful. So, it is essential for the business to have a knowledge regarding the business laws
and regulations. Moreover, it tells about the parliament which essentially been important under
that during passing of bill and convert them into law. It also discussed about the case of Solomon
and Solomon and also discuss about the importance of arbitrator, mediator and how they using
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the different approaches in settling down the civil disputes of the party and promote down
settlements and take down decision in such a manner that any of the parties will not get affected.
REFERENCES
Books and journals
Rescorla, M., 2015. Bayesian perceptual psychology. In The oxford handbook of philosophy of
perception.
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von Benda-Beckmann, F. and von Benda-Beckmann, K., 2017. Mobile people, mobile law:
Expanding legal relations in a contracting world. Routledge.
Gilson, R.J. and Gordon, J.N., 2013. The agency costs of agency capitalism: activist investors
and the revaluation of governance rights. Columbia Law Review, pp.863-927.
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Jones, A. and Sufrin, B., 2016. EU competition law: text, cases, and materials. oxford university
Press.
Appelbaum, E and et.al.,2016.Good for business? Connecticut’s paid sick leave law. Center for
Economic and Policy Research.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary Hospitality
Management, 26(5). pp.727-750.
Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Hess, D., 2015. Combating Corruption in International Business: The Big Questions.
Murray, J., 2014. Social Enterprise Innovation: Delaware's Public Benefit Corporation Law.
DuPlessis, D and et.al.,2017. Canadian business and the law. Nelson Education.
Robson, R., 2015. A new look at benefit corporations: Game theory and game changer. Am. Bus.
LJ, 52.pp.501-789.
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