Alternative Dispute Resolution and Business Law

This assignment delves into the significance of Alternative Dispute Resolution (ADR) in managing conflicts within organizations. It highlights the benefits of using ADR processes such as mediation and arbitration to resolve issues outside of traditional court proceedings. The document also covers various laws related to business, including minimum wage regulations and company law in both the UK and USA. By understanding these concepts, students can appreciate how ADR and business laws work together to maintain strong organizational relationships and ensure compliance with legal requirements.

BUSINESS LAW

INTRODUCTION
Business law is just like an umbrella that consists of many laws that dictate how to form
an organisation, how to run it in legal manner and how to strike it off according to legal
procedure. There are many acts and regulations that are imposed over the company. It is the
responsibility of the firm to comply with such guidelines and rules so that it cannot affect the
business operation. Business law has adverse consequences if it is not complied with. In this
report, structure of English legal system, the role of government in formulation of act has been
elaborated. There are many issues that arise in the businesses which can only be resolved using
such laws. This explanation details problems along with their solution and liability of employer
under various laws (Bagley, 2010).
TASK 1
P1 English legal system structure and different sources of law
English law is an effective structure of law that governs nation in various aspects. It
provides adequate protection to citizen of nation so that their rights cannot be infringed by
others. This legal system clearly denotes rules and regulation and it is required for the comply
with such regulations.
Hierarchical structure is one of the way where higher authority governs its subordination
subordinate courts and authorities. In this manner, supreme court is at top level and there are
many other governing authorities that are under control of SC such as Court of appeal, high court
of justice, Country court etc. in formal way, SC is known as House of Lords. As per European
Communities act, 1972, the justice of European Court of justice bind on all the UK courts
(Bishara, 2011).
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The justice that is made by European court of human right is not applicable on UK domestic
court. English court is not bound by Judicial committee of Privy Council which is highly
compelling. Decision that is made by Supreme court is binding on all the other court. The legal
system is bifurcated into two parts i.e. Civil and Criminal. Sometime, there is situation that arise
where decision of two judicial body overrules to each other than the Supreme court who has
power to overrule the rules which are made by lower court.
Sources of law
There are different sources of law i.e. primary and secondary. Primary sources consist
case laws which are created by the courts, Legislation are enacted by Parliament and European
law.
 Legislation
It is the model that is formulated and made by governing bodies. This requires time to
formally incorporate a law, till that it is known as Bill. The most important view that is essential
to consider is, it is easy to control, make some restriction on some act etc. Overseeing body can
be proposed by people.
 European law
It states different regulations that are required to be complied by all the states which are under
European Union (EU). This plays essential role to provide benefits and advantages to social
group. It has main objective to spread peace in society.
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Illustration 1: English legal system.

 Case Law
This is considered with civil and criminal law. In civil, cases are related with recovery of
debt amount, consumer protection ext. are considered. The judgement of court is given on the
basis of existing rules and regulations which had been already framed up. But in case of criminal,
matters regarding theft, murder or serious nature of offence has been committed are considered
here.
 Equality law
In this, organisation has to treat equally with all. Here many acts have been framed for
those people through which they can protect their rights from workplace. It is major
responsibility of organisation that not to discriminate any employees on the basis of caste,
religion, gender and so on.
Secondary are consisting with law journals, non-parliamentary documents, textbooks and
many more. Here judges are taking help of these laws so that they can take better decision and
resolve the disputes among the parties.
Fulfilment of laws in an organization:
1) It is essential to comply with all the laws and regulations so that its advantage can be
secured by the company. Many laws are implemented on organisation and it is the duty of
the organisation to fulfil such guidelines so that it cannot affect in adverse manner. It
shows clear roles and function of owner and worker. When there is recruitment of
employees then it is mandatory for the firm to comply with the norms of Equality Act
2010 and Data Protection Act 1998.
2) Such laws clearly state rights and obligations of employees of the organisation. These
protections can be taken by the worker, if their rights are infringed by the employer.
Here, it is the duty of the company to comply with Minimum wages act and Employment
Act.
P2 Government role in relation to formulation of law and applicability of statutory and common
law
In framing rules and regulation role of government is very important. When any new act
is formulated then it is required to take consent of all the members of parliament by passing
official letter. It is the duty of the organisation to comply with all the laws that are applicable on
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them. There are different stages which are involved in while converting a bill into act of
parliament. These are enumerated as below:
First stage – It is also known as primary stage where bill is presented in front of
members who are presented in session of parliament.
Second stage – Here, discussion about key principles of bill has been done where draft
has been presented in parliamentary. Along with this it is also deciding that it is essential to
convert the bill into act of parliament or not. If yes, further steps are required to fulfil it.
Committee stage - Now, bill is passes to both houses of parliament i.e. lords and
common. Apart from that votes are also given by members so that whether amendment is
required or not.
Report stage and third reading – In this phase, changes will take place whatever done in
the bill. Besides this in third reading, last chance will be given to members to give their votes if
furthermore alteration is required or not and this will also consider as tiding stage.
Royal assent – An approval of Queen is taken for converting bill into act of parliament.
This approval is taken when both houses of parliament are agreeing upon the bill which has been
made in parliament after making required amendments.
Implementation of statutory and common law in justice courts Statutory interpretation: It is covered by court so that they can make effective
interpretation of law. It helps to understand specific circumstances. Help used by judges: It is the duty of the magistrate to take consultation of laws and
principals that are formulated. This aids them so that they can make correct decision.
Sometime they consider help in various ways like Oxford dictionary and so on. Interpretation of rules: Some regulations and laws are required to be interpreted for
some cases (Law, Qi and Buhalis, 2010). Golden rules: In English court these rules are followed by Judges. Along with this statute
laws are not included in this but covers those areas which contain specific information
and provides rights to employees.
 Literal rules: It is required to connect and interface the general implication.
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TASK 2
P3 legal obligation of employer
a) Legal liability of employer under various act
i. Occupational Health and Safety Act 1974
This act formulates legal duty of the employer toward its employee. It is important to the
owner to consider safety measures so that health related issues cannot be arise in the
organisation. Along with this, there are some provision which are included in this act i.e.
maintain healthy relations with employees, conduct training session whenever required by
workers or staff. There are many duties are employers under OHSA that are specified below-
 Employer is responsible to consider exercise best practice that are effective to provide
health, safety and welfare to its employees.
 To comply with the regulations that are provided under the act.
 To offer adequate measures that are effective to protect worker from hazardous
substance.
 To organise training programmes so that knowledge about handling of dangerous
substances can be provided (Pohl and Tolhurst, 2010). To provide healthy and protecting environment at workplace so that their employees can
work in better way.
ii. Workers compensation
Workman compensation act 1897 is effective that provide assistance to employees at job
place. It considers important measure that provide compensation to worker if they got injured
while performing their task. This law was formed after replacement of Employer's Liability Act
1880. The boss has major responsibility under this act as-
 When any physical harm is caused to the employee due to handling of complex
machinery work or dealing with hazardous material, the employer is liable to provide
protection.
 To provide treatment if employees suffered any physical issue.
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 When worker got injured then employers is liable to inform to compensation board office
so that adequate security can be provided. To provide insurance policy of their employees (Reed and et. al, 2013).
iii. Harassment
Protection from Harassment Act 1997 came in force so that people can be protected from such
harassment. It is the human action that creates displeasing feeling. There are many things that are
covered under the definition of harassment as unfair behaviour, undermining the workers etc.
Accountability of employers under this act-
 To provide adequate protection at workplace so that such displeasing activated cannot be
arise.
 To implement anti bullying activities at the workplace.
 To formulate policies of protection from harassment (Suthers and et. al, 2013).
 To organise time to time programmes where awareness related to such practice can be
spread.
Case Law-
A trainee of salon posted allegation on the manager in February, 2013. She said that salon
manager 'Christopher Story' offered amount of £10,000 to Ms. Maryam Mashayekhi to sleep
with manager. She stated that because of not accepting his offer, she had to face some racial and
unfair things at work job. When there was communication with manager, he completely refused
such allegation.
iv. Equal opportunity Act 2010
This Act states that it is the duty of the employer to provide equal opportunity to all its
workers and employees so that they can work in better environment. There are many
discriminations that are committed at workplace and this act completely restrict such practices.
At workplace it is responsibility to higher authorities that not to discriminate anyone so that they
can retain employees for a longer period of time. Along with they should give chance to all
employees so that it will motivate them to perform their task in appropriate manner.
Discriminations are made on the basis of age, disability, gender reassignment, religious, sex.
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Employer's responsibility-
 To consider ways so that practices like Discrimination, bullying activities can be
eliminated (Bagley, 2010).
 To provide equal opportunity to the employees at workplace.
b) Case Scenario
In this case, a girl was working in food outlet. One day, there was leakage of water from
ice cream machine. Due to this she fell down and her hand drawn into oil pot which was heating
on high flame. The oil was on 360F temperature. On the same day, there were very less number
of employees present.
Health and safety act, 1974 provides adequate protection in this regard. It is effective that
provide better solution to the problem that are being faced by employees of the organisation
(Bishara, 2011).
Following factors provide aid to worker:
 To provide adequate benefit to employees if in case they got injured at workplace.
 To provide proper safety measures and protection to employees.
 To establish control mechanism so that effective control over emission of risk and wrong
practice can be made.
As per the above provision, specific attention is required to be provided to girl and it is
the duty of organisation to provides assistance in this case. They are liable to pay for such
misconduct. The girl is liable to take all the benefits that are provided to employees under Health
and safety act 1974. According to this act, the cited company can be sued by the lady because
there were no adequate protection measures available at the time of accident (Cavaliere,
Mulvaney and Swerdlow, 2010).
TASK 3
P4 Solutions for business problems
Case 1
As per present situation, it is stated that Calvin was working for 4 years in this firm. One
day, employer suddenly visited the office and when she checked the accounts then found that
there were £100 were missing from petty cash. Without making any investigation, she imposed
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allegation on Calvin. This is not correct way because the employer did not inform Calvin in this
regard and fired without giving prior notice.
Suggestion for Calvin: -
Following are the measures that can be adopted by Calvin
According to provision of Employment Act 1996, employee can file the case against the
employer if any unfair dismissal take place. As per section 96 unfair dismissal employee should
fulfil the specific terms and conditions so that they can file by the case against them. Apart from
that section 94, provides rights of employees if any wrongful activity take place in organisation.
But there are few conditions where employer can dismiss the employee without giving them any
second chance. In given case, Calvin is having right to claim against Donna for giving him
opportunity to heard him.
Case 2
The current condition is about Dan where he has opened a store. After some time, this
store got fired and Mr Dan was not registered in insurance scheme. After sometime, he again
opened a new stored and registered it under the insurance scheme. At the time of registration
there was a clause where it was stated that ' whether the claim has been made by you before two
years’. Dan was not aware of exact time period and marked as No. Now, the new shop got fired
and he claimed in this regard but insurance company rejected to entertain.
As per insurance act, 2015 (Clause 13A) states claim for loss. It clearly stated that Mr.
Dan may apply to insurance company because he was registered over there. This says that
company is liable to provide correct information to insurance company when any harm is caused.
Along with this he can plead in court for recovering the loss amount but not for claiming them.
P5 Justification of solution
Workers and staffs are the significant part of the entity and it is required for the company
to consider them so that their work cannot be affected in adverse manner. This clearly says that
delegate should provide clear understanding within 2 months. Employment act is the summarised
form of different laws like employment contract 1963, Wages act 1985, Employment safety act
1975 (Cheeseman and Garvey, 2014).
As per this act it is stated that there are some of the liabilities of the employer toward the
worker. It is duty of the company to eliminate employees after giving prior notice.
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In case of Dan, he is liable to appeal to insurance company because he was registered
under this authority and he has valid justification. This act does not consider clause that states
elimination of asserting. Aggrieved party have power to claim for such losses.
TASK4
P6 Recommendation for alternative legal system
a) ADR (Alternative Dispute Resolution) that is effective to utilized in case any issue is faced by
them. It is best way for the organisation to resolve such issues that are being faced by people in
the organisation without moving to court.
Benefits-
 This method is beneficial because it is cost effective way.
 This requires less time to resolve the issues.
 In this, investigation is completely confidential.
 It is easy to understand.
 The process under ADR scheme is short and simple.
b) Alternative Dispute Resolution is the way where both the parties to dispute, mutually appoint
third party for taking necessary consultation so that they can eliminate such issues. Government
of the nation make their positive effort to promote it because it helps to reduce the burden of the
court. In this third part involves so that they can resolve the issues in better way. In UK, there are
many ADR services that are rendered so that issues that are faced by people can be solved in
better way. Conciliation is important part in this where there is involvement of third party.
Moreover, there are different forms of ADR which can be used by parties in settle their disputed
in best manner.
Mediation – It is considered as collaborative process where third party is taking decision
for settling the disputes among them. Along with this, the decision which are given by them are
not binding on parties.
Arbitration – Here, third person is appointed by the consent of each party. Third party is
listing the issue of both parties so that they can draw a valid conclusion for that. Moreover, it
depends on parties to agree on that decision or not.
Benefits of ADR-
 This is cheap way.
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 It is flexible to adopt.
 This way of dispute resolution is confidential.
In US, this procedure is effective so that issues can be resolved. In this number of person
are selected so that problems can be resolved. Generally, 1, 3 and 5 are selected. They formulate
their own rule and regulation and effective in solving the issues (Cheeseman and Garvey, 2014).
Laws UK USA
Minimum wage Minimum wages act 1998, this
act states that employees of the
organisation are to be paid wages
for the work which is done by
them. It is the duty of the
employer to give remuneration to
its employees.
In this nation, labour standards are
adopted. It shows that payment is
made according to the skills and
qualification that is possessed by the
employee.
Company law In this country, companies act
2006 is applicable where this act
shows clear duties of employer
and employee.
Security act 1993 and securities and
exchanges act 1934 are considered.
The organisation is liable to comply
such rules and regulations.
In given case scenario, Antwon is running a large investment firm and having some issue
with Tyrell who is the owner of software. Their issues are not resolve since last few weeks and
did not get solution till now. As they want to maintain their strong relation without going to court
process. So for this, they are having opportunity to take help of arbitrator because it is time
saving and less consuming process.
CONCLUSION
As per above study it can be said that business law is important part of every organization
that is required to be abide by the companies. It is the responsibility of the business to follow
such rules and guidelines so that their operation cannot be affected in adverse manner.
Alternative Dispute Resolution is effective way that is considered so that dispute can be resolved
without moving to the court. It aids to reduce the burden of the court.
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REFERENCES
Books and journals
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