Business Law Report: Analysis of Legal System, Obligations, and ADR

This report delves into the intricacies of business law within the UK context. It begins by outlining the structure of the English legal system, differentiating between statutory and common laws, and exploring various sources of law such as the constitution and legislation. The report then examines the role of courts in law-making and the application of both statutory and common laws. A significant portion is dedicated to the impact of business law on organizations, particularly focusing on the legal obligations of employers, including employment rights, minimum wage, and health and safety regulations. Furthermore, the report addresses legal solutions to business problems and concludes with a discussion of Alternative Dispute Resolution (ADR) concepts and their benefits. The report highlights the importance of adhering to business laws to avoid penalties, build customer trust, and maintain a positive brand image.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Structure of English legal system and different sources of law............................................1
P2 Role of court in law making and application of statutory and common laws........................3
TASK 2............................................................................................................................................5
P3 Impact of business law on organisation.................................................................................5
TASK 3............................................................................................................................................7
P4 Legal solution to business problem........................................................................................7
(a) ..............................................................................................................................................7
(b) ...............................................................................................................................................8
P5 Justification............................................................................................................................8
TASK 4............................................................................................................................................8
P6 (a) Concepts and benefits of ADR.........................................................................................8
(b) ...............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Law is a system prepared by governmental and administrative authorities to enforce on
every individual and institution of country to regulate their behaviour. It is necessary to adhere
with all such regulations provided by such authorities. Commercial or business law is the part of
legislation which governs the activities of industries which are operating their activities in UK.
Main purpose of government behind development of such regulation is to provide a fixed
procedure regarding running and closing of the business activities. Adherence of such laws by
organisation prevent them from unnecessary legal penalties and fines (Bagley, 2010).
In the present report, judiciary structure of English legal system and sources of law which
are adhered by organisation in providence of their functions, role of government in development
of legislations as well as obligation of employer regarding different laws will be explained. Also,
the concept and benefits of Alternative Dispute Resolution Process will be discussed.
TASK 1
P1. Structure of English legal system and different sources of law
English legal system contains such laws and regulations which are applied on both;
England and Wales. Legal system provides the rules regarding both; civil and criminal law. It is
necessary for all the individuals of such country to follow these rules regarding performance of
their activities. This legal system was developed in the 18th century. The most authoritative law
of England is called as statutory law which includes many acts of parliament, bye-laws and
regulations. Statutory laws are called as main laws which are approved by both; house of
parliament and house of lord. In the absence of such statutory laws, Common laws are prepared
by sitting judges of country on the basis of judicial decisions, residual sources of law, custom,
etc. Parliament has the power to amend and repealed such common laws.
Criminal Law: It is an important law which governs the rules and regulations regarding
serious nature of offences which attract imprisonment and death penalties.
Civil law: It is an effective law which provides the rules and regulations regarding tort,
families, companies, etc. Commercial law is also covered under civil legislation. Under this,
main aim of sitting judges is to provide relief to parties of dispute.
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Business law provides legislations regarding establishment of different types of
businesses. Such types of businesses include sole proprietorship, partnership and registered
company.
Structure of English legal system
Both criminal and civil law have their own courts and different judiciary system. The
procedure followed by courts of both legislations are different from each other. The Judiciary
structure of Civil law which is followed in the UK is mentioned as below:
 First of all, there comes Supreme Court which is called as the highest court of judiciary.
The decisions provided by this court are final and bind on all the parties and subordinate
courts and authorities.
 Then comes, Court of appeals in judiciary structure of Civil legislation
 High courts and country courts, where the different cases of civil law are present before
them for their appropriate decision and jurisdiction (Cameron, 2017).
Types of personnel in legal system
 Barristers: They are type of lawyers in common law jurisdictions. Such lawyers are
specialised in advocacy and litigation. The main aim is to represent the case in superior
courts and tribunals.
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 Solicitors: It is also type of legal practitioner who is dealing in legal matters in some of
the jurisdictions. To become solicitor, they are required to having adequate solutions.
 Judges: It is a person who has overall control over the proceedings which are going in
court. There is a single or panel of judge which provides their decision on the matters
which are presented before them. Judges are having large number of powers to deal in the
cases of civil and criminal law.
Different sources of law
Sources of law means authorities which are having responsibilities regarding
preparation of different rules and regulation which govern behaviour of individual and
organisation. Different sources of law are defined as below:
 Constitution: It is considered as an important source of law which provides power to
different authorities. The main reason behind consideration of constitution as a source of
law is to provide power to judiciaries, government authorities, etc. The main aim of
constitution is to provide principals and rules to govern the activities of state and
organisation.
 Legislatures: This is called as a primary source of law which is provided by the
parliament. Main aim of parliament is to make the statutory laws which are applied on
whole country. This helps in assisting the authorities regarding use of their powers and
restrictions applied on them.
 Administrative law: This law is prepared by the administrative agencies. Main aim of
agencies is to overlook the laws and rules provided by government. The major agencies
which are included in this are boards, commission, etc.
 Executives: Under this, president is called as the highest authority. Main aim of president
is to pass the bills which are presented by parliamentary authorities. They also have the
power regarding providence of orders.
Laws followed by organisations
All the organisations want to start their business and close down the enterprise required to
follow all laws and rules which are provided by government. It is not possible for any individual
to start business activities in UK without implementation of such laws. Large number of benefits
are arrived by organisation like prevention from penalties, confidence of customers and
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employees, improved brand image, effective management, etc. Such different laws are described
as below:
 Employment rights act, 1996: This main behind providence of this law is to provide
equal rights to all the employees and they are not exploited by employers. The
implementation of this law helps in creation of legal environment in organisation. This
law includes about maintenance of contract with employees which provides that no
employee is dismissed from their services without any proper reason and prior notice
(Cheeseman and Garvey, 2014).
 NMW Act 1998: This act provides about minimum wages required to provide by
employer to their employees. This means not any employer provide salary to their
employee below such limit provided by such act. It is considered as a flagship policy.
 Health and safety at work Act 1974: The main aim of providence of this act is to
provide legislations which are required to follow all the organisations which are provide
their functions in UK. It is the duty of all employers is to take all safety measures and
provide safety guards which helps to attain the confidence of employees. If the
regulations are not fulfilled by organisation, legal penalties are ascertain by companies.
P2 Role of court in law making and application of statutory and common laws
Statutory laws are proposed by government which is further approved by parliamentary
authorities. So, it is the duty of government is to make the draft of law and present before
members of parliament to attain their consent and permission. The government authorities also
has responsibility to consider laws and make new changes as per requirement. Such authorities
are required to follow specific procedures which is important in the process of law making.
House of parliament and house of lords also have equal contribution in the process of law
making in different steps. Different steps which are included in procedure of law making is
defined below:
Issues come forth on schedule of government: Political parties have large contribution
on formulation of the government of UK. The schedule of government is decided with the help
of general elections. The issues arises in between are dealt by MP's and house of lords.
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Solutions regarding specific issues: After determination of issues, needs the support of
experts in identification of specific solutions which are applicable on bills and further checked by
government.
Discussion with fascinated people: It is necessary process, requires discussion of issues
with interested persons. It helps in better understanding of problems and ascertainment of
satisfactory solution. It includes two types of paper having important role in law making:
Green paper: This paper is called as structure of bill. The reason behind planning of such
paper is to take the support of all the members of parliament. Such discussion with MP's helps to
attain their viewpoints to make the rules and regulations more good.
White paper: This paper provides substance regarding future laws made by UK
government. The main aim behind preparation of this paper is to provide information regarding
solutions of issues.
Approval of cabinet ministers: The laws proposed by government are present before
members regarding their approval. All the MP's have the duty to scrutinises law perfectly and
select best which fulfils all criteria. After, scrutiny and selection of bill forwarded to committee
which has the duty make the draft of law which includes important rules and regulation as per
such proposal (Czinkota, Ronkainen and Moffett, 2011).
Contents are presented into bills: After acceptance of bill, needs to consider all
guidelines which are effectively implemented on bill with the help of experts.
Scrutiny and consideration of bills: This includes about scrutiny and consideration of
bill by both MP's and houses of lord. It is considered a the important step of law making which
helps to provide rules regarding regulation of behaviour of individuals.
Parliamentary stages: This includes all the steps which are required to follow by the
MP's in the process of approval of bill. The major steps are define below:
 First reading: This includes the process of read out the proposal of bill in front of MP's
and provide copy to each of them.
 Second reading: This includes about debate on the laws proposed on bill. MP's provides
their vote on in favour and against of bill.
 Committee stage: Is the bill is accepted above, forwarded to committee house for
scrutiny and provide changes if needed.
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 Report stage: After consideration of committee, changes are reported to all MP's and
ascertain their feedbacks.
 Third reading: This step includes about final debate and voting on bill after such
changes. This is the process of acceptance of amended by MP's.
 Transferred to House of Lords: After approval of House of Commons, bill is
transferred to House of Lords for their permission. If bill is amended by House of Lords,
further provided to MP's. To change the bill into laws needs approval of both houses.
 Monarchs Assent: This is the process of taking their assent on the bill also called as
Royal assent. They provides approval after consultation with MP's (Dickerson, 2011).
Statutory and common laws
Statutory laws: These laws are proposed by government required approval of MP's to
converts into statutory laws. Such laws are considered as main laws.
Common laws: These laws are prepared by sitting judges in the absence of statutory
laws. Parliamentary authorities have the power regarding acceptance and removal of such laws.
Statutory laws Common laws
Proposed by government and approved by
MP's
Prepared by sitting judges in the absence of
Statutory laws
Such laws are in written called as written laws It is called as case in point
Normative in nature Informative in nature
TASK 2
P3 Impact of business law on organisation
(a) Legal obligations of employer's
It is obligation upon the employer to fulfil all the legal requirements and regulations
which are provided by government. There are many legal duties of employer in regardant to
occupational health and safety, workers compensation, Harassment, equal opportunities etc.
These are considered as the important part of organisation and plays an important role in
implementation business function effectively in UK. As the large number of benefits are derived
by employer like confidence and trust of employees, prevention from penalties and fines,
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improvement in brand image, government support, timely completion of their objectives etc. So,
legal obligation of employer in respect of all these regulations is described below:
 Occupational safety and health: This obligation of employer is governed by Health and
safety at work Act 1974. As per this act, employer has legal obligation to take care of
health of employees in organisation not only from physical injuries but also protect from
mental illness. Under this, employer has obligation to provide adequate training to their
employees regarding use of machines and provide proper safety guards at workplace.
 Workers compensation: Employer has legal obligation that to compensate employees
against the injuries which are conceived at workplace. This includes about the obligation
of employers to provide medical benefits and wage replacements to injured employee.
The general damages of pain and suffering and punitive damages due to the negligence of
employer are not covered under workers compensation (Grundfest, 2010).
 Harassment: This includes wide range of behaviours which are happen in organisation
with employee at workplace which are offensive in nature is called harassment. This
includes any behaviour or act of any person which disturbs and upset employees
mentally. It is the duty of employer to remove the situation of harassment from
organisation by application of applicable laws. They have to give more emphasis on
safety of female members of organisation as they suffer most.
 Equal opportunities: Employer has legal obligation to treat all the employees equal and
there is no discrimination between them on the basis of religion, cast, gender, colour etc.
Equal opportunities of growth are provided by employer on the basis of their
performance. For ex., NMW Act 1998, As per this act, employer has to calculate wages
of all employees on the basis of rules mentioned in this Act.
(b) Fact: A 16 years old girl is working at fast food outlet to cook fries. She slipped and fall
into deep fryer contain oil at temperature of 360 F. Due to having such accident at workplace,
she has severe burns in her left hand. It is observed that, team leader is busy in doing day to day
activities due to having shortage in staff members and not performing his actual function of
monitoring safety measures at workplace.
Provision: As per, Health and Safety at work Act 1974, it is the duty of employer is to
take adequate measures of safety at workplace. This act provides that employer has the duty to
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appoint one person whom have the duty to monitor the safety measures and guides the
employees in performance of their work which helps in reduction of number of accidents.
Conclusion: From the above case, it is observed 16 is legal age to work in UK. It is the
fault of team leader which is busy in day to day functions instead of monitoring safety measures
at workplace. This shows that, fast food outlet not perfectly implement all the regulations of
health and safety act. Such act of team leader considered as the breach of duties and outlet is
liable to compensate 16 year old girl. It also visible from the previous case law of Lord McLaren
in Bett v Dalmey Oil Co (1905), that employer has duty to provide safe working environment
and perfectly deploy their services.
TASK 3
P4 Legal solution to business problem
(a)
Scenario: Calvin is designer in large fashion house and provide their services from more
than 4 years. Donna is the owner of such large fashion house. On Monday, when he arrived at
workplace noticed Calvin is acting suspicious. After checking of petty cash box, it is observed
that £ 100 is missing. After such act, Donna comes and dismissed Calvin on the spot from his
services by saying that we don't need thief in our organisation in-spite of that other four
employees also in neighbourhood at the when finds in suspicious situation. It is considered as the
case of unfair dismissal in which no prior enquiry is conduct and not notice is provided to Calvin
for dismissal (Kinicki and Kreitner, 2012).
Employment Rights Act 1996: All the employer are required to provide adequate
notice and reason behind the termination of employee from their services. The valid time period
for which notice is provided by employer to employee is 12 weeks. It is provided in this act, if
the employer not fulfil these regulation and terminate employee from the services without notice
considered as the situation of unfair dismissal.
Legal Solution: From the above case, it is observed that, termination of Calvin is the
situation of unfair dismissal. It is so because, not notice of 12 weeks is provided by Donna and
no proper enquiry is conduct to find out the actual reason of missing £100. From the provisions
of above mentioned Employment Rights Act 1996, Calving has many legal solutions which are
mentioned below:
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 Provide proper notice and reason of termination
 To conduct proper enquiry regarding missing of £100.
 To claim compensation from Donna regarding his unfair dismissal
(b)
In this case, it is observed that Dan suffer loss due to fire in shop. He claims fire
insurance where one question is asked regarding their previous claim in last two years. Dan has
misconception that the previous claim admitted by him was more than 2 years ago. But in actual
23 months of time period is passed from such previous claim. Due to this reason insurance
company refuses the claim of Dan.
Legal solution: According to Limitation act, it is necessary to complete 2 years to attain
the compensation of fire claim from the previous claim which is admissible to person. According
to above case, legal position of Dan is that he is not entitled to take claim before completion of
the time period of 24 months from previous one. In present case, only 23 months was passed, so
the decision of insurance company is right regarding refusal to pay compensation.
Types of misrepresentation
Misrepresentation can be of three types which are Fraudulent, Negligent and innocent
misrepresentation. All such representations are different from each other. It is depend upon the
motive of party which they use while providing wrong information. On the basis of such motive
it is decided that in what category it falls.
 Fraudulent: This includes misrepresentation by party of any information which is
possess by them but not provided with intention of fraud.
 Negligent: This includes about wrong misrepresentation of information by party due to
having no information regarding such facts.
 Innocent: This includes such misrepresentation of information which is thought by party
that at the time of providing information is true.
Innocent misrepresentation by Dan
From the above case of Dan, it is observed Dan has the belief that the information
provide by him to insurance company is true. He is not aware about the fact that information
given by him is wrong. So, It is the clear case of innocent misrepresentation from the part of
Dan.
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P5 Justification
In first case, as per the order of court in case law of Lord McLaren in Bett v Dalmey Oil
Co (1905), said by judiciaries that employer has the obligation to safe working conditions and
monitor and guide their employees so, the situation of accidents would be reduced. Here
observed that, employer is liable to pay compensation to employee. Similarly, due to the fault of
team leader of not performing his functions, 16 year old girls have severe burn injuries. So, in
present case, employer is liable to pay compensation (Kinicki and Kreitner, 2012).
In second case, The decision of insurance company is right because the previous claim of
Dan is only 23 months prior to this new fire claim. As per limitation Act, it is necessary to
complete 24 months of time period in between two claims. Therefore, legal position of Dan is
not having the right to claim fire insurance from insurance company and insurer has right to
refuse.
TASK 4
P6 (a) Concepts and benefits of ADR
ADR: It is a system which includes the process of resolving disputes without going into
litigation in simple and cost efficient manner. This helps in solving the disputes between two
parties with the intervention of third party. Large number of methods are available in this process
to attain combine solution with consent of both parties.
Acceptance of ADR process by organisation to resolve disputes smoothing the operations
of company.
There are many advantages are derived by application of ADR process which define
below:
Advantages
 Reduce burden from the traditional courts
 provide proper direction of the experts in resolving dispute situation.
 Saves the important time of parties of dispute
 The matter of dispute doesn't involve any litigation process
 Helps in saving the cost of both parties of dispute.
 It is referred as informal procedure to solve disputes having large number of flexibility
due to more number of methods
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Advantages and disadvantages of two methods
ADR process has two main methods which is used while solving the case of parties of
dispute. In present case, such two main methods are arbitration and mediation. The advantages
and disadvantages of both these Methods are define below:
Advantages and disadvantages of arbitration
Advantages
 Saves time and cost
 Does not involve litigation process
Disadvantages
 Solution is not legally implemented
 Total formal method not involves legal actions
Advantages and disadvantages of Mediation
Advantages
 Helps to maintain better communication between the parties of dispute
 Time saving
Disadvantages
 Only asks directive questions from parties
 Mediators does not provide adequate advice to the parties of dispute
(b)
Antwon and Tyrell both are employers having working relationship with each other.
Tyrell makes software for Antwon investment company. On the basis of such software,
employees of Antwon make market predictions. Both the parties confront disputes due to some
reasons which is going severe (Law, 2010). Both the employers wants to save their working
relation and wants to resolve their conflicts. For this purpose, they decided to adopt ADR process
to resolve their dispute in easy manner. The major steps which are include in this process are:
 Arbitration: This includes about the selection of arbitrator by both the parties and
decision taken by such person is final and applicable on both parties.
 Mediation: This includes about appoint of mediator which takes attempt to come on the
common solutions on the basis of consent of both the parties.
 Negotiation: This includes about negotiate with parties of dispute to achieve common
solution.
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CONCLUSION
It has been concluded from the above report that, Business law has great importance in
regulation of activities of organisation in UK. Such different legislations provide by government
have the aim to protect employee’s. Alternative dispute resolution process plays an important
role to resolve disputes in fast and cost efficient manner.
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REFERENCES
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Online:
Company & Commercial / Business Law, 2014. [Online]. Available through:
<http://www.sprakekingsley.co.uk/your-business/company-commercial-business-law/>.
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