Magnificent Salon Services Ltd. Case: Legal Solutions

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Unit 7: Business law
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Contents
Introduction......................................................................................................................................3
Task1. Explain the basic nature of the legal system........................................................................4
Task2. Illustrate the potential impact of the law on a business.......................................................8
Task3. Suggest appropriate legal solutions to business problems.................................................10
Task4. Recommend appropriate legal solutions based upon alternative legal advice provided....12
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
Business law is also referred to as the commercial law that helps in governing commerce and
business. It is also considered to be a civil law's branch that deals with both public and private
law’s issues. The regulation of practices of hiring, corporate contracts, and sales and manufacture
of consumer goods is done by the business laws. This project report is based on the case study of
“Andrea & Mariyah Vs. Magnificent Salon Services Ltd.”. This report will explain about the
laws’ basic nature covering law’s different sources, the justice system, legal system, legal
system’s critical evaluation, government role will be explained in making of law and application
of common and statutory law in a court of justice. The illustration will be made regarding the
law’s potential impact on the business. Appropriate solutions for laws will be suggested for the
business problem's range. The recommendations with respect to the legal solutions will be
provided on the basis of the legal system of different country and the effectiveness of these
recommendations will be compared.
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Task1. Explain the basic nature of the legal system
Law refers to the rule's system that is enforced and created through governmental or social
institutions for behavior regulation. Through the law community or individuals ensures or
regulates to the state’s will. The law can be classified into two namely civil and criminal law.
Criminal laws consist of the laws that are created to provide protection to the society and it also
provides punishment for the breaking of these laws. The main purpose of criminal law is
protecting citizens of the UK from the criminals by facilitation of prosecution and detection of
actions of criminals while protecting accused’s rights. Civil laws focus on settling disputes
between individuals. Its objective is upholding the individual’s right and for providing the
redress (Council, 2012).
The legal action was taken against the salon by two of its ladies customers who then ask for help
from advice bureau of citizen regarding the reply that they get from the stylist when they
approach salon for having the adverse experience from the hair treatment taken by them. The
stylist direct girls to the notice board where it was mentioned that salon will not be liable for the
damage or loss caused to customers by making use or selling of the defective product and in such
case the manufacturers of the product will be liable. Mrs. John Ruska, the business owner of the
salon went to her lawyer for the advice and she wanted to know about the sources of laws that
every organization of the UK has to comply with. There are both national and international
sources of law that helps the government of UK for governing the UK territory (Reimann, and
Zimmermann, 2019).
International sources
 European community law- EC law is adopted by all the European nations that have
joined EU and due to the part of European Union, all provisions, decisions, laws,
directives, and regulations are applied mandatorily on the UK.
 International treaties- Only after the ratification of the international treaties, it becomes
binding. The UK government can sign the IT and conventions and its impact is just like
the laws that are prevailing.
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National sources
 Legislation- It is the law’s prime source in the UK and it consists of the legal rules'
declaration made by the competent authority. The authority for the enactment of any law
lies to the UK parliament. The delegation of law-making power can be made by the
legislature to the lower bodies.
 Case Laws- Case laws are also called as the judicial precedents’ doctrine where the
court's reported decisions form the binding law source for the decisions to be taken in the
future. Judges are not bound by the decisions of the inferior courts but by the superior
courts. The enactment of the law is by the judges on the basis of their judgments on those
matters for whom there is ambiguous or no clear law prevails.
 Customs-the customs are followed by the judicial authorities for making decisions
regarding different matters (Leyland, 2016).
Therefore, Magnificent Salon Services Ltd has to mandatorily comply with all these laws,
regulations, and directives.
Justice system- The justice system is the one that delivers justice to the people who have
committed crimes. The criminal justice system is the series of institutions and agencies of
government, that mainly aims at identifying and catching unlawful individuals for inflicting a
form of punishment and offender’s rehabilitation, prevention of other crimes and victim’s moral
support.
Role of government in lawmaking
In the UK, parliament is termed as the supreme body that has the power of drafting and ending
laws. The prescribed procedure is followed by the UK government under which for lawmaking
firstly the introduction of the bill is made in the parliament and both the houses of the parliament
has to get them approved with the majority. In the end, for the law enactment, the signature of
queen referred to as the royal assent is required (Collison, et. al, 2014).
There are two types of bills public bill and private bill. The stages of the lawmaking include the
following-
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 First reading- this is considered as the first stage of the lawmaking in which the bill title
is read along with its contents to the House of Commons.
 Second reading- The opportunity is given to the MP’s to have a debate on the bills’
content. After the debate on the bill, amendments are made at this stage. The voting is
done by various MPs to decide whether the bill should proceed further or not.
 Committee stage- The debate is conducted for each clause of bill and in relation to the
amendment. For the bill’s detailed examination the committee of House of Commons is
referred.
 Report stage-Amendments and debate are reported by the committee to the House for
further debate and voting on the bill.
 Third reading- The representation of a bill is made to the house. For acceptation or
rejection of the bill, there may be a short debate.
 House of lords-For considering the amendments the bills are amended and sent back to
House of Commons.
 Royal Ascent- This is the last and final stage of the whole process where the bill is
formally approved by the monarch and it becomes the parliament act.
Application of the statutory and common law in the justice court
Statutory laws- These laws are formulated by the parliament in the legislation form. They are in
acts, codes, or statute form, the interpretation of which is made by the court for delivering
impartial and fair judgment. At first priority, the application of these statutes is in court due to
the prescribed ways of parliament. At the time of giving judgments, the statutes are concerned
primarily by the judges.
Common law- The law is referred as the judicial precedents as it is the judgments or the decision
of the court which is served as the law source in the cases where there is questioning on
reliability and applicability of the law. If the same circumstance cases come to the lower court
then they are bound by the decisions of judicial precedents. The applicability of the common law
can be seen in the UK court in the absence of the statutory laws (Pound, 2018).
Legal system- It refers to the process or procedure to enforce or interpret the law. There are
three legal systems in the UK that are separate of each other including Northern Ireland,
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England, and Wales, and Scotland and there are three major systems of law including common
law, religious law, and civil law.
Effectiveness of the legal system in terms of recent reforms and developments
The legal system of the UK is very effective with reference to efficiency and procedure in the
resolution of a dispute. In the year 2016, the launching of the reform program was made under
which the civil, courts, family, criminal, tribunals’ administration was made online and the
public was permitted to access the system online. It can be seen that the matters get resolved
effectively due to this digital system with a particular timeframe in an effective manner
(Collison, et. al, 2012).
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Task2. Illustrate the potential impact of the law on a business
Define the employment, contract, and the company law and its potential impact on a
business such as Magnificent Salon Services Ltd.
There are some of the laws that Magnificent salon have to follow as it has a great impact on the
business of the organization. These laws are mentioned below-
Employment law-The employer-employee relationship is governed by the employment law. The
law under this covers the area that deals with legal duties and rights of employers and
employees. The National minimum wage act, 1998 is one of the major acts under the
employment law. As per this law minimum wage should be paid to the employee as per his age.
£7.83 is the minimum wage amount that should be paid to the employees of the salon above the
age of 25. As per the provisions of the equality act, 2010 all the employees of the salon should be
treated equally without any discrimination. Health and safety act, 1974 will enable the salon to
provide a healthy work environment to its employees and workers and all the safety rules will be
followed (Taylor, and Emir, 2015).
Contract law- English contract law is applicable in the UK and it deals with civil matters. The
formulation of agreement and its enforcement is made under this. Contact law allows the
magnificent salon to recognize the duties and rights of the parties to the contact and the
aggrieved party will be needed to be compensated in case of breach by the salon. The
governance of this law is made by the contract enforcement and obligations that arise after the
formation of the contract. The principles that are covered in the contract formation are a
consideration, intention, and agreement (Barnard, 2012).
Company law- Magnificent salon is under the provisions of the Companies Act, 2006 that is the
UK legislation parliamentary act. It includes all the rules and laws in relation to the stakeholder’s
interests. All the companies of the UK have to get themselves registered under the company’s
law. The magnificent salon should also have been registered as per the company law. The
managers and directors of the salon should have all the responsibilities and duties as per the
provisions of this law.
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Differentiate and analyses the potential impacts of regulations, legislation, and standards
on the organization
Regulation- Regulation refers to the rules that are formed or created by the government for
controlling the way people behave. It also provides for the detailed instructions for the
implementation of the law. The magnificent salon is assisted by the regulations for the
implementation of the law. Before commencement, the salon would have required to get the
license from the government (Horspool, and Humphreys, 2016).
Legislation- Legislations are the laws that are enacted by the parliament. Through legislation, it
is ensured whether the interests and rights are promoted and protected. It includes the behavior of
the public which they are required to maintain. The publication of the legislation is needed that
are the codified laws. The Magnificent salon is impacted much by the legislation as it needs to
follow all the legislation and rules and regulations of the organization should be as per the
legislation of the UK. The employment Rights act, 1996 and company act, 2006 are the
legislation that is applied to the different organization.
Standards- Standards are termed as the business ethics that are accredited and approved and the
organizations such as magnificent salon are required to function as per the prescribed standards.
For environment protection, some of the standards are mentioned in the company’s articles. The
salon has to mention in its articles regarding safety and health measures of its workers with
Health and safety at work act, 1994.
Coherent and critical evaluation of the legal system and law, with evidence drawn from a
range of different relevant examples to support judgments
The basis for the evaluation of the legal system, the English legal system will be used. The
judicial authorities in the United Kingdom act independently and surety is made with respect to
the equal treatment of all the citizens. These authorities focus on if all the citizens’ interest and
rights are protected and justice is received by them before the law. The impartial decisions are
provided by the judicial authorities in tribunals and courts. Along with the positive side of the
judicial authorities, there are some of the negative challenges that are faced due to it. As
sometimes it becomes challenging to opt for the high costs associated with the judicial
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proceedings and it also becomes time-consuming. The online platform can be used at present for
overcoming these challenges from which the citizens of the UK are suffering (Gee, and Young,
2106).
Task3. Suggest appropriate legal solutions to business problems
The Magnificent salon ltd. has to face the issue that the company is facing due to the use of the
defective product which caused major uproar in the salon, customers were lost and legal action
was taken by two of the clients of salon as they experience color fade and one of the clients
Andrea was required to have the medical treatment as she started having the severe itching
problem after getting the hair treatment from the Magnificent salon.
As per the termination contract law of the UK, Magnificent salon is advice to terminate its
contract with the manufacturer of the defective product. The contract termination is allowed by
the prior agreement in the written form due to the specific reason. For this, the written notice is
required to be given by the magnificent salon to its manufacturers (Rubino-Sammartano, 2014).
Consumer Protection Act, 1987refers to the UK act of parliament in which the important
changes are made to the UK’s consumer law. As per section 2 of this act, a magnificent salon can
take legal action against the manufacturer of the hair product that was used by the hair stylist of
the salon. Under this section, civil liability can be imposed for the damage caused by the defect
in product either whole or partial damage. The producers are held liable for the damage caused.
The damage includes death, personal injury. A formal complaint can be submitted under this act
and will be submitted to the commission.
Under the consumer rights act, 2005the help can be taken by Magnificent salon if it is treated
unfairly or when things get wrong. The problems included in this act include faulty goods, poor
services, rogue traders, store and credit cards. The product quality should be satisfactory in
quality, fit for the purpose and should be as it is described. If any of the three conditions are not
satisfied then the claim can be made by the aggrieved party under this act. The magnificent salon
can reject those defective goods that have been taken and have not exceeded 30 days from the
date of taking the ownership of the product. The full refund cannot be taken by the salon if 30
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days have been exceeded. However, it is possible that some of the sellers can extend the refund
period.
The manufacturer and seller of the product must ensure with the general product safety
regulations, 2005 as per which all the products that are used by the consumers under reasonable
or normal foreseeable conditions are safe.
The salon can go for the alternative dispute resolution (ADR) for this issue which is a method
in which the case is filed with the institutions and bodies that are other than the tribunals or
courts. Out of all the method the arbitration method is considered as the best method in which the
arbitrator is appointed who listens to all the queries and the detailed inquiry of case. The
magnificent salon and its suppliers can resolve the case under the arbitration without going out
for the court or tribunal. The same procedure can be opting by the salon with its clients.
The amount of compensation can be called from the supplier and that compensation amount can
be used by the company for paying to the client for the loss or damage caused to them due to
getting hair treatment from the damaged product (Olivet, and Eberhardt, 2012).
Justification the use of appropriate legal solutions and positive and negative impact of the
legal solutions
Mrs. John Ruska is not satisfied with the legal solutions. The arbitration has various advantages
as the case can get solved fairly by listening carefully and impartially to the parties. The name of
the salon will not get defame by this process. Otherwise, if the case will be resolved in the courts
or tribunals then the name of the salon will be affected adversely. The brand image of the salon
will also be affected that has been earned by the salon by working from so long. Arbitration is
more flexible and less formal in scheduling terms. This process is very cheap as the cost is split
between the parties. In comparison to the trial, this process is more private and confidential. It
provides the parties with the agreeable outcome.
But there are some of the disadvantages of this method as no appeal can be filed by any of the
parties against the final decision made. There is a lack of cross-examination, lack of consistency,
lack of evidence, and lack of transparency.
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