Analysis of UK Business Laws and Regulations

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The assignment provided is a comprehensive analysis of UK business laws and regulations. It covers various aspects such as health and safety, GDPR, and equal opportunities regulations by JPM Company. The document aims to provide useful information on how businesses can comply with these regulations, making better decisions and fair judgements. References to books, journals, and online sources are provided for further reading.

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Business Law

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Explaining statement 'Parliament is sovereign' and enumerating various sources of UK
Laws.......................................................................................................................................1
B) Explaining role of government in the law making process and application of statutory and
common law...........................................................................................................................3
TASK 2............................................................................................................................................4
A) Advising JPM on responsibilities and potential implications and impact of regulations. 4
A) Legal advices to organisation on base of case or law.......................................................6
B) Recommending alternative legal solution and comparing effectiveness of solutions.......9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business law is required so that organisation may abide various types of laws governed
and regulated by Parliament of UK. Present report deals with laws which are applicable to
business in order to carry out enhanced and uninterrupted operations. Sources of UK laws are
enumerated along with Parliament is sovereign statement. Moreover, UK government role in
formulating in law-making is discussed. Statutory and common laws and several laws are
discussed. Furthermore, directors' responsibilities of JPM Company is highlighted and various
impacts and implication of regulations are explained. Legal advice has been provided to Amber
Ltd and Champion Ltd which are related to different scenarios. Moreover, ADR is explained
which are useful in getting out timely and effective judgements in less time and cost-effective
manner. Hence, it can be said that laws are helpful not only in making out better operations but
also in resolving disputes between parties if any. Thus, business law is fruitful for firms as issues
could be resolved quite effectively.
TASK 1
A) Explaining statement 'Parliament is sovereign' and enumerating various sources of UK Laws
The parliament of UK has many well-structured laws which are binding on citizens and
organisations as a whole. The government announces its programme in October or November by
way of Queen's speech. This process is known as 'Parliament is Sovereign'. Meaning of such
statement is that laws and regulations are beneficial for all people and is their duty to abide by
them. It is required that rules are followed by people so as to enhance integrity in the country
(Parliamentary sovereignty. 2018). The statement makes Parliament, Supreme authority legally
permissible to create or end law. This means that Courts cannot overrule regulations
implemented in practice by the Parliament. In relation to this, there are various important
functions performed by Parliament of UK. These are as follows-
ï‚· Full authority is exercised by them with regards to construction of laws.
ï‚· Moreover, Courts cannot engage in any of the activities. In simple words, Courts cannot
intervene in laws made by Parliament.
ï‚· Future Parliament is subjected to be abide by them. It clearly shows that new government
also cannot imply changes in the same.
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ï‚· It is a vital part of constitution of UK which regulates entire laws.
Primary legislation is made which is passed on to become legal law. In addition to this, it
is accepted and signed by Queen as without her approval, law cannot be implemented. Legal
system is thus followed which lists down all the responsibilities needed to be carried out quite
effectively. Statutory law, common law are much important of the said legal system.
Sources of UK Laws- Various laws are followed by people of UK which are described below-
1. Precedents-
The term precedents mean that similar issues which are handled by Courts are either
binding or persuasive purpose for Courts. In other words, it is a principle rule established in
previous cases which can be used for any of related problems in present hearings. Hence,
precedents is one of the vital sources of UK law.
2. Acts of Parliament-
This is one of the common law of parliamentary of UK. Firstly, bill is passed by entities
such as House of Commons and House of Lords. And after their approval has been attained, it
passes on to Royal Assent by Monarch (Beatty, Samuelson and Abril, 2018). Thus, bill is
transformed into legal law by Acts of Parliament.
3. International Court-
It is commonly abbreviated as World Court which is principal judicial court of UN
(United Nations). It engages in resolving disputes among any of its member states. The members
are France, Russia, China, UK and US. This forms legal source for UK and various members so
that disputes could be resolved.
4. European Court-
The EU has various statutes in its judiciary which are provided to be followed for
effective piece of judgement in the best possible manner. Among EU, European Court of Justice
(ECJ) is engaged in resolving matters of EU law in effectual manner. Hence, proper integration
is followed by the law.
5. Common Law-
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This term is extracted with current judgement made by judges in a hearing and reaching
over final conclusion of the case. The decisions which are made are crucial for formulation of
law quite effectually. In a particular case, relevant decision can be made with ease by relying on
common law.
6. Custom Law-
It is termed as behavioural pattern which is implied in particular social outlook or setting.
This law is being observed particularly in legal practice and relevant factors which are
acknowledged to be law. Custom law has universal acceptance.
Hence, it can be observed that UK's parliament has well-structured laws and regulations
which are needed to carry out fruitful decisions by the courts (Cameron, 2017).
B) Explaining role of government in the law making process and application of statutory and
common law
Government and parliament play a crucial role in making policies and laws. House of
Commons who are the member of parliament and House of Lords who are appointed by
government play an important role in making law. Policies and laws are created over a period.
Laws are made when an issue arises and the process required to deal with those issues are
prescribed in the law. Normally, laws are made by asking people, experts and group of people to
make their proposal and what will the effects and impacts of law. Proposal are made into bills
and they are of 3 types Public bills, private bills and private member bills. A law is made only
after approval of government minister, parliament and Monarch.
The House of parliament considers bills which are then presented to government. An
approval of MP's in the house of Commons and approval of peers in the House of Lords is
required in bill to become a law (Devine and et.al, 2017).
There are various stages involved in making a bill. A bill is made either by Chamber or
Lords. Taxation bills are approved by House of Commons in parliamentary stage. The First
reading is one where, in the chamber, the bill title and what all it includes is read out. The bill is
then accessible by the members of parliament. The Second reading is one in which MP's and
peers do a detailed discussion on the issue and amend the bill. Members vote for whether the bill
should be passed or not. Then comes the Committee stage where the bill is checked by higher to
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lower authority of government. The entire house of Lords is considered at this stage where bill is
scrutinized and then amendments are made.
The next stage is reporting stage where the amended bill is presented to the House of
Lords and chamber. Members can see the bill and can suggest amendments. Then comes the
Third stage, where MP's debate and vote whether to accept or decline the form of legislation. Bill
is again presented in front of Lords. They further add changes to the bill and introduce
amendments. The bill once approved by Lords goes to Chamber for further approval, chamber
scrutinize the bill and make changes and corrections in the bill. Only after the approval of both
the lords, a final law is made.
For a bill to become an Act or Law, Royal assent is required where the bill is approved
by the Queen. The Queen never refuses the bill and approves the proposal of ministers.
Finally, the bill becomes an act of parliament describing law (Allen, 2017).
A statutory law is one which is made by parliament which may arise due to issues in
constitution or through conclusion figure out from other courts. They are the written laws made
by the legislature body and applied in a manner of certain rules and policies.
The places very statutory is not applicable then common law applies. Common law is
also known as customary law. Decisions are taken keeping in mind, practices of people and
customs of the country. It involves issues between two individual or any public authority and
individual. In this, the case is compared to an issue of similar nature which would have arisen
earlier. Rules and regulation of similar case are followed and a final decision is made.
TASK 2
A) Advising JPM on responsibilities and potential implications and impact of regulations
There are various roles and responsibilities which are to be followed by the directors of
company so as to eliminate inefficiency in business operations in the best possible way. JPM
(Jane, Penny and Marie) have established small publication organisation and are now planning to
float the company on recognised stock exchange and trade in the market with enlarged capital
funds and more scaling of business. It is needed that they abide by various regulations as these
have immediate impact on firm's operations. If norms are not followed properly, then there are
high chances of serious consequences. The impacts are discussed on three of important
regulations below-
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Health and Safety regulations
The health and safety is essential regulation which is to be abide by JPM Company for
effective and uninterrupted operations with ease. As the firm expands and grows, workers are
needed for carrying out tasks. In relation to this, safety of employees is utmost needed. Various
implications and regulations of health and safety are as follows-
1. Workplace (Health, Safety and Welfare) Regulations 1992
The factors governed here which are required to be given to company's workers are-
ï‚· Giving all the common requirements such as lighting, proper ventilation and clean and
hygienic workplace.
ï‚· Imparting hygienic sanitary facilities, refreshment to staff.ï‚· Providing clean surfaces so that floors may not be slippery and accident can be
minimised (Kraakman and Hansmann, 2017).
2. Management of Health and Safety at Work Regulations 1999
ï‚· Risk assessment must be governed in accordance to safety issues of workers in that
manner by effectively reducing serious incidents.
ï‚· Proper training should be provided by JPM Company so that employees can apply the
same for eradicating any accidents which might prevail in premises.
Equal Opportunities regulations
It is one of the requisite of JPM Company to provide equal opportunities to workers be it
male or female. Consequences of not following the norms by firm may be dangerous as it can
lend organisation in repercussions interrupting routine operations (Raz, 2017). The regulations
are as follows-
1. Equal Pay Act, 1963
ï‚· Employees should be equally paid and not discriminated on wages.
ï‚· Sex discrimination should not be made and same pays must be provided.
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ï‚· The skills, capabilities, calibre shall be judged and gender discrimination should not
prevail while paying salaries.
2. Age Discrimination in Employment Act (ADEA), 1967
ï‚· Discrimination on the basis of 40 years or older than that is prohibited.
ï‚· It protects from discrimination in hiring, compensation, promotions as well.
ï‚· Moreover, preventing from denying from other benefits.
Hence, it is required that JPM Company should equally treat of all employees and relevant acts
must be followed for efficient operations with ease.
General Data Protection Regulation (GDPR)
The GDPR is useful so that data may not be manipulated by outside parties leading to
misuse of information. It is required that JPM Company should make out for such regulation so
as to protect sensitive data from the vulnerable acts in the best possible manner. GDPR is an parr
of EU law protecting privacy and security of organisation from losing data and preventing from
misuse of the same. The boundaries within which law applies is EU and European Economic
Area (EEA). Furthermore, data can be exported in and outside both boundaries if so provided.
Privacy is the key concern to be taken into consideration by organisation. Employees' personal
data is also protected by GDPR leading to enhance security at the workplace. With effectively
implying such law, trust and commitment of workers can be enhanced in a better way and
organisation can carry out proper security and safety of information of employees and preventing
from breaching.
A) Legal advices to organisation on base of case or law
i) Advising Champion Ltd
Creditors are required to be paid when payments become due. As per the case study, it
can be observed that Champion Ltd had bee given cash consideration for shifting its primary
location to new one so as to carry out development of stadium. It is being observed that firm is
experiencing financial issues as sales are gone down and creditors are asking for repayment of
funds provided to organisation. Moreover, default in payments can be seen for which creditors
are planning for filing 'winding of petition' (How does the winding up petition process work?.
2018). Now, creditors are threatening company for liquidation process. In accordance to UK law,
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creditors are given power to exercise petition for effectively winding of business. Here, payment
outstanding for amount of 750 or more, creditors can file for the same to recover dues.
Petition would be heard and can be served primarily registered address of company in the
best possible way. After the process, advertisement is posted in The Gazette. These proceedings
will be heard in the relevant court and better judgement can be arrived with much ease. It can be
observed that to file petition is legally approved as power rests in the hand of creditor. Moreover,
organisation could be held legally liable as it has defaulted in paying money. Hence, petition can
be filed so as to recover money in effective way.
The liquidation process can be exercised by Champion Ltd in order to end the business
with ease. Liquidating a business means that company either voluntarily ends its operations or is
liquidated statutorily by the courts. It is the last option for Champion Ltd so as to sell of assets
and pay-off liabilities to creditors quite effectually (Arbaugh, Cox and Camp, 2018). Hence, dues
could be paid by any of the above two methods discussed below-
Creditors' Voluntary Liquidation-
It is useful method of liquidation which can be followed by Champion Ltd and by
implementing this, it can stop creditor for filing petition against it. Assets can be realised and
amount could be paid. Furthermore, good value could be received beneficial for firm. The
procedure follows number of steps and practitioner is appointed for valuing business assets. Then
afterwards, payment can be paid to lenders and liquidation is done. These steps can be explained
below-
ï‚· In the first step, appointment of insolvency practitioner is made by organisation which
handles affair regarding liquidation process and he is termed as liquidator.
ï‚· Next stage, assets are realised for carrying out amount which needs to be paid to creditors
asking for payment.
ï‚· Realisation process gets completed and as such, creditors are paid amount outstanding
from company.
ï‚· Remaining amount if any after paying to prospective lenders, is paid to investors or
shareholders on per share basis held by them.
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ï‚· This is the last stage where all steps are completed and dues have been paid to parties,
hence, dissolution takes place marking end of business.
Compulsory Liquidation (by Court)-
As the name suggests, petition is filed by creditors by which Court exercise its powers
and compulsory liquidation takes place by which organisation is liquidated and comes to an end.
Insolvency is main reason leading to intervene court for making liquidation. It is covered under
Insolvency Act, 1986 which guides regarding the subject. Hence, such process can be applied by
court and amount can be paid to creditors which threatening for filing petition for recovery of
amount in effective way.
ii) Advising Amber Ltd
The organisation provides the contract which needs to be fulfilled by employees in the
equal faith so as to deliver their roles and responsibilities in effective manner. This is required as
contract is made which needs to abide parties for serving legal purpose quite effectually. If
employees do not perform such duty, then they could be held liable for the same. In present case
study, it can be found out that Amber Ltd had appointed Mr Anderson as its CFO with access of
much confidential information. It can be observed that contract was made with reference to 12
months of notice period before leaving organisation if he wishes to leave and terminate
employment contract with much ease (Picciotto, 2017). This means that 12 months are to be
followed so as to resign from the post by employee. Now, Beta Ltd which is rival company
offering CEO position to Mr Anderson. In relation to this, resignation has been given.
It leads to breach of promise as Mr Anderson has served only one month before leaving
the organisation while, he has to carry out 12 months period. Hence, breach of contract can be
found because terms and conditions have not been followed by employee (Singer, 2018). The
resignation has being accepted by company. This highlights that contractual terms have been
violated because party to the contract has not fulfilled employment terms. Mr Anderson has been
lured by the offer of Beta Ltd and is asking for resignation only after giving out notice period of
one month. It has been cleared from the case study that termination of contract takes place and as
such, violation is done. The services of CFO has to be provided of twelve months and
termination takes place because of breach of duties which was required to be performed by party
under contract.
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Breach can take place in several faces such as fraud, performance obligation, not able to
perform in underlying contract and related factors. Hence, it means that Mr Anderson is liable in
relevance to the terms and conditions of leaving organisation as proper period was not
undertaken by employee. It can be clearly stated from the case study that contract is breached
between Mr Anderson and Amber Ltd because of not fulfilment of conditions of the contract
leading to breach with entirety. Proper service notice period was not fulfilled which means that
company has suffered loss because of failure on the part to discharge duties and responsibilities
of Mr Anderson as CFO of company.
In relation to this, injunction can be applied by Amber Ltd with much ease. This means
that injunction is applied when court intervenes an party to do something in other way and by
stopping to do which may harm other party under the contract. It has several types such as
mandatory, interlocutory and prohibitory injunctions (Cowan, 2018). Interlocutory means to
restrain from doing something and protects the innocent party in the best possible manner.
Particularly, it helps from doing wrongdoings so as to attain protection with ease. Moreover,
mandatory injunction means that Court intervenes in the same and as such, some action is
applied when underlying contract is not followed as per the stated terms. This leads to loss for
innocent party and it can apply mandatory injunction to effectively carry out loss and court
prohibits to do anything on the part of aggrieved party. Furthermore, prohibition is applied as
well which signifies that firm can restrain from entering into another contract if other party sign
different contract on the same terms.
It can be concluded from the above statement, various injunctions can be used with
reference to the parties involved in contract. From the scenario, it can be said that mandatory
injunction can be applied and relief can be seek from Court. Mr Anderson could be held liable
and court can restrain him from seeking employment in Beta Ltd as he has not completed twelve
months of employment terms to serve notice period before quitting from present organisation.
Hence, it signifies that Amber Ltd could effectively able to apply mandatory injunction so as to
seek relief. Thus, better judgement can be made with much ease (Barnard, 2017).
B) Recommending alternative legal solution and comparing effectiveness of solutions
Alternative legal solution is another way of getting dispute resolved in a better and fast
manner. It can be achieved in a fast way because no intervention of court is found in it. This
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helps to resolve faster disputes within stipulated time. Alternative Dispute Resolution (ADR) is
effective way of resolving disputes if any between parties in the best possible manner. Moreover,
if terms and conditions of contract is broken, then it can be resolve by ADR with ease. There are
several types of ADR such as mediation, arbitration, adjudication and collective bargaining.
These methods effectively help to resolve disputes in less time leading to better results.
Moreover, it helps to reduce costs as it is much cheaper form of obtaining judgement quite
effectually (Cloatre and Pickersgill, 2014).
It can be recognised from scenario that Mr Anderson has breached underlying terms of
contract with Amber Ltd as he has not fulfilled whole notice period and as such, he is liable for
breach of contract. Moreover, it implies that he has failed to perform in accordance to the
contract and has not served twelve months and as a result, contractual terms are broke. In
resolving this, mediation is considered as a better method of ADR. It means that mediator can be
appointed in the case who will be resolving the disputes quite effectually. Moreover, it will led to
cost-effective and time-saving approach for the firm. Valuable and transparent solutions would
be provided, thus, leading to better results in a timely manner. In current scenario, dispute
prevails between Amber Ltd and Mr Anderson as contractual terms have been broke and as a
result, mediator could easily resolve disputes between them and thus, conclusion can be drawn
with much ease. Moreover, perfect conclusion would be achieved leading to resolve issues.
Mediator is a person which carries out discussion by analysing scenario so as to
effectively make true judgements. It is required that viewpoints of both the parties should be
taken into account so that proper judgement can be made without any difficulty. He is
independent from solicitors, officer of court. In such case, Mr Anderson would be held liable as
he has to abide by terms enlisted in the contract and has to follow then organisation's rule before
leaving job and joining Beta Ltd. However, if issues continue between them, then arbitration
should be approached as it is recommended (Hutson, 2017).
Arbitration is a procedure in which intervention of third party is made so as to effectively
resolve the disputes quite effectually. In simple words, it is said that company can take help of
third party so as to resolve issues in effective way. This is particularly possible as entire case
would be assessed by arbitrator and then relevant decision would be made. Arbitrator can be
appointed by Amber Ltd and Mr Anderson so that issues could be resolved. In relation to this,
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solicitor, labour personnel, barrister and other persons can be appointed as a arbitrator and as
such, proper conclusion can be reached by following and listening viewpoints of both parties.
Hence, it can be recommended that disputed party such as organisation and employee could male
out their way by effectively appointing arbitrator or mediator so as to resolve issues. This would
be fruitful for the business as ADR has immense benefits. It saves time and litigation cost and as
a result, fast and better judgement can be made. Thus, effective solution can be accomplished by
relying on ADR.
CONCLUSION
Hereby it can be concluded from the above report that business law plays crucial role in
organisation so as to carry out legal operations in a better way. This helps to enhance operations
as interruptions are reduced quite effectively. Furthermore, it can be said that contractual terms
are important part of any governing document as it legally binds company and employee's. It can
be analysed that Mr Anderson needs to fulfil all the terms and conditions as listed in the contract.
Moreover, it is being clarified that firm needs to fulfil regulation with various aspects such as
health and safety, GDPR, equal opportunities regulations by JPM Company. Moreover, it will be
helpful for organisation as it will be able to gain useful regulations and operations can be
enlarged in a better way. Hence, UK laws are helpful in making out better decisions as fair
judgements are provided.
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REFERENCES
Books and Journals
Allen, W. T., 2017. Our schizophrenic conception of the business corporation. In Corporate
Governance (pp. 79-99). Gower.
Arbaugh, J. B., Cox, L.W. and Camp, S. M., 2018. Is entrepreneurial orientation a global
construct? A multi-country study of entrepreneurial orientation, growth strategy, and
performance. The Journal of Business Inquiry. 8(1). pp.12-25.
Barnard, C., 2017. Law and Brexit. Oxford Review of Economic Policy, 33(suppl_1). pp.S4-S11.
Beatty, J. F., Samuelson, S. S. and Abril, P. S., 2018. Business law and the legal environment.
Cengage Learning.
Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
Cloatre, E. and Pickersgill, M. eds., 2014. Knowledge, technology and law. Routledge
Cowan, S., 2018. All change or business as usual? Reforming the law of rape in Scotland.
Devine, W. M and et.al, 2017. Securing live migration of a virtual machine from a secure
virtualized computing environment, over an unsecured network, to a different virtualized
computing environment. U.S. Patent 9,715,401.
Hutson, L. ed., 2017. The Oxford Handbook of English Law and Literature, 1500-1700. Oxford
University Press.
Kraakman, R. and Hansmann, H., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Michalos, A. C., 2017. The loyal agent’s argument. In How Good Policies and Business Ethics
Enhance Good Quality of Life (pp. 53-61). Springer, Cham.
Picciotto, S., 2017. Rights, responsibilities and regulation of international business.
In Globalization and International Investment (pp. 177-198). Routledge.
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Raz, J., 2017. The rule of law and its virtue. In The Rule of Law and the Separation of
Powers (pp. 77-94). Routledge.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal system.
Routledge.
Online
Parliamentary sovereignty. 2018 [Online] Available Through:
<https://www.parliament.uk/about/how/role/sovereignty/>
How does the winding up petition process work?. 2018. [Online] Available through:
<https://www.thegazette.co.uk/all-notices/content/101087>
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