Business Law and Ethics: Contracts and Fraud Case Study

This essay explores the concepts of business law and ethics through a case study on contracts and fraud. It discusses the elements of a contract, the court system in relation to the English legal system, and the remedies available to parties. It also examines the Enron scandal in relation to ethical corporate governance and the Sabane-Oxley Act of 2002.

BUSINESS LAW AND
ETHICS

INTRODUCTION
Business laws are those kind of laws that has been formed in order to form an
organization within the boundaries set by the government. These laws are also helpful in making
an organization to perform activities related to business in smooth manner. Ethics are that kind of
rules which has bee formed in order to keep discipline at workplace. Ethics are being defined
under the code of ethics within the laws. Both employer and employee are bound to follow it
within the premises of workstation. Scope is wider and nature consists dynamic elements that
makes an organization gain success. In this file there are two parts in which first part contains
case scenario related to contract and second part is case study of financial fraud that lead to
various reforms for future.
MAIN BODY
PROJECT-1
Case scenario: This case is there in which Hilary advertising of an printing press that is
specialized in trade and wants to sell the press for £15,000. Eleanor a buyer has approached her
with an offer to buy the press for £10,000. Regarding this a letter was posted to her and Hilary
refused the order and said she will sell press for £13,000. Then another letter was posted over
accepting offer of £10,000. Again a fax was sent stating ignore the letter. An summer sale and
notice was put sating to sell the painting of Trumpeter and famous painter for £1 to customer
who comes first. Olivia waited outside for two days for sale to start. Hilary told that painting is
not for sale now(Joy and Green, 2019).
Following question is to be answered
Define contract law and describe all the blue prints of a contract
Contract laws are those kinds of laws that has been formed are being formed for creating
of strong relationship between two parties that have come into an agreement. Agreements are
considered to be contract when various elements are there that is offer, acceptance,
consideration and legality is maintained.

Explain the court system in relation to the English legal system and advise the parties above
which court action to pursue
Legal system of UK consist of various kinds of laws that has been formed to deal with
crime of both civil and criminal nature. In UK different laws exists that are complexed in nature
but are impactful also. Judiciary has been formed to hear cases related to such aspects and
consist of various kinds of courts. Highest court in the judiciary system is Supreme Court that
deals with cases of all nature. After this high court is there which has three division queens
bench, court of appeal and family courts. Then comes lower court that hears the matters or cases
for first time (Kitto and Knight, 2019).
This case is based on contract law that comes under civil law. So, civil court is going to
be used for dealing with it.
Advise Hilary as to whether binding contracts exist between herself and each of the following
people: Eleanor, Amy and Olivia
Binding of contract means that kind of agreements which are valid under the eyes of law
and activities related to this is based over that kind of contract which are based over valid
activities. As the above scenario is observed it can be seen that no contract has accrued between
the parties. Though offer has been made but not been accepted that is why contract is not there
between Eleanor, Amy and Olivia neither in written nor in oral form (Alahmad and Silverman,
2017).
Explain and discuss the various remedies available to the parties
In contract validity is checked only when there is existence of all elements is there. So,
under contract the wrong committed is based over breach and in order to reduce this some
remedies are there that is damages, repudiation, recession, specific performance, restitutory and
injunction is there. Since there is no existence of contract in the above scenario so the remedies
cannot be used since no wrong has been committed by any of the parties.
PROJECT-2
Case Scenario: Enron scandal is one of the most popular case regarding fraud and
bankruptcy. This is considered as one of the five largest auditing and partnership accountancy to
be achieved. The organization is being formed after the merger of Huston Natural Gas and Inter

North. Jeffrey Skillling was hired in order to develop staff of executive over making of poor
financing. It was hidden by the organization that they are having poor debts and failure in
projects. An law suit was filed by shareholder that is of forty billion dollar that has been filed
after the value of share is less then a dollar. In this case Arthur Anderson was found guilty over
the charge of destroying documents that would have been proven to be a key lead for
investigation. After the judgement was passed by Supreme Court the organization lost its market
value and customers. Despite of this limited returns were received by shareholders.
Discuss this case in relation to ethical corporate governance and the Sabane-Oxley Act of 2002.
Corporate governance this is that system in which practices and rules has been formed
in directing with controlling various activities of an organization. This has been helping in
creating fairness within the process of funding. Such governance majorly impacts the
management as it is there responsibility to seek over the measure to be taken for controlling of
fraud. For this purpose they are required to build action plan and system to analyse the faults
within internal control of an organization (Dorff and Gary, 2016).
Sarbanes-Oxley Act of 2002: This act has been formed by the US Congress on 30th July
over the year which has been helping in protecting investors that has made cooperation possible.
This act come into existence for controlling the frauds relating to corporate culture and also has
helped in forming of strict to control frauds.
Corporate governance is related to the case because of its ability to influence internal
factors that leads towards creating of environment to control frauds. The SOX Act 2002 has been
formed after seeing the urge to control frauds in corporate world.
CONCLUSION
From the above essay it can be concluded that concept of business law and ethics has
been covered. Further this essay explains about various aspects related to contract through an
case scenario and questions related to it has been answered. Second part of the essay covers a
case that is related to a scandal of fraud. In the end its relation has been explained with corporate
governance and SOX Act of 2002.

REFERNCES
Books and journals
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Joy, P.A. and Green, B.A., 2019. Brief of Legal Ethics Scholars In Support of State's Motion for
New Trial. Washington University in St. Louis Legal Studies Research Paper. (19-10).
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Kitto, K. and Knight, S., 2019. Practical ethics for building learning analytics. British Journal of
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