Business Law Report: UK Business Law, Compliance, and Legal Solutions

This report provides a comprehensive overview of UK business law, encompassing various aspects such as sources of law, including common law, statutory law, and European law. It examines the role of the UK government in law-making and the application of statutory and common law within the legal system. The report delves into the impact of different laws on businesses, covering areas like recruitment, employment, health and safety, and consumer rights. It also outlines legal solutions to common business problems, including compliance with the Companies Act 2006. Furthermore, the report discusses the legal solutions based on different country's legal system to analyze and compare how the UK legal system works. The assignment highlights the significance of understanding and adhering to legal frameworks to ensure ethical and lawful business practices, emphasizing the importance of legal compliance in various business operations.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Sources of law and laws that organization must comply..................................................1
P2 Role of government in law making and application of statutory and common law..........5
TASK 2............................................................................................................................................8
P3 Impact of various laws on business...................................................................................8
TASK 3..........................................................................................................................................10
P4 Legal solutions to different business problems...............................................................10
P5 Justification of appropriate legal solutions......................................................................10
TASK 4..........................................................................................................................................11
P6 Legal solutions based upon different country's legal system..........................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
All business are involved in different types of agreement making activities. Business firm
carry out different activities like merger, acquisitions, sale of final product. Buying raw material,
all these should be regulated by some law that brings legalisation in actions of business
organisation. Government of UK country is developed various commercial law in order to
implement an legal and ethical practices in business environment. These all always helps in
regulating and close monitoring of illegal action by business in order to earn more profit. There
is well defined laws that are implemented by UK government and Statutory body of country in
order to ensure justice to victim of fraud (Awrey, 2010). Every contract made between two
commercial or business parties should be enforceable by always and defined in legislation of
country.
In this report various sources of law are introduced to student in order to accumulate
basic knowledge about law making and legal system of country. This assignment helps student to
achieve brief information about various laws and legal solutions to common problem and issues
faced by business organization while carrying out their operations successful. Report involves
study and comparison of different country legal system and impact of legalisation on expansion
of business in other countries.
TASK 1
P1 Sources of law and laws that organization must comply.
Law is the legal provision and act that are defined by government of UK in order to make
right decisions about any misconduct or fraud done by one party with other party. Law is
formulated by statutory body of country and enacted by government of UK in order to provide
and legal solutions to problem faced by people of country and securing rights of every member
citizen of UK.
Legal System of any country depends on its historical evolution and present development
rate of any state. Legal system of UK comprises 3 stems according to different geographical
areas. English law deals in England and Wales, Scott laws regulated in Scotland while Northern
Ireland laws are followed in Ireland (Bartlett, Rhode and Grossman, 2016). Legal system of UK
comprises various laws like commercial laws, civil claws, common, statutory and religious laws
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in order to secure rights of people and providing them equal opportunity of growth and
development in UK. Various sources of law are described below.
Common Law: This the law that are defined court and Judiciary brings amendment in the
statutory laws that are developed by parliament. This law are also known as case law as these are
developed by the aids of different cases that are discussed in court during proceedings.
Equity Law: This law are defined when legal justification and legal remedies are not
enough. This is originated form case when a person is expelled out from hos own land by armed
person. This in relief to the suffering by registration and allowing them use his own land. This is
more than the legal remedies. This defines Writs that are given to sufferer in return to breach of
rights of person.
Judicial Precedent: These are the court decisions and decision of precedent in order to
make changes in laws for future law making through sourcing of old laws and act. This helps in
formulation of Case law and common law (Burk and McGowan, 2010).
Legislation/ Acts of parliament/ Statutory Law: Legislation are the laws that are
formulated by legislature. The UK legislature is member of parliament. These are the statutory
laws that are defined by a ling process of debate and discussion in both house of common and
house of Lords and final approval from Monarch.
European Law: This defines all the law that are regulated by European union in UK.
While starting up a business, the company owner should have basic knowledge about
legislation and fair practices that are to be followed while carrying an ethical and lawful
business. In new start-up, business firm should defines polices and norms of company in order to
implement an structured working environment in organisation following all legislation described
by UK legal system in order to ensures protection rights of employee, consumer as well bas other
stakeholders (Drahozal, 2011). Business following all law that are to complied in organisation
helps in achieving compensation from government and other fraud party in in response to any
unlawful activity or void agreement firmed by other party. The business firm should complied
with some basic legislations that helps in maintaining an lawful action in company. Some of
these laws are defined below.
Legislation related to Recruitment and Selection: The company policies should
comprises various laws while defining their polices related hiring of employees. This should
comprises following laws enacted by parliament of country:
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 Equal Opportunities: Company should create a value of equality in organisation work-
culture and should develop policies by providing equal opportunity to every candidate
that are selected by organisation for further hiring procedures in firm. Company should
follow-up The Equality Act 2010 in their organisation system ensuring equal rights and
opportunity of being selected for particular candidate and not discriminating participants
on basis of their religious, colour, age, sex, disability, economical conditions etc. Eligibility to Work in UK: A new start-up company should check eligibility of candidate
to work in UK before commencing them for employment in business organisation to
reduce risk of illegal complications (Eidenmüller, 2013). The Immigration Asylum and
Nationality Act 2006 defined in Section 15-20 in legislation book of Country. In these
section it is defined that the person leaving and working in country should have eligibility
to do work in UK. Person resident proof, biometric document or passport should have
information about the work eligibility and time period of work that is announced to be
legal for particular candidate. Data Protection: This law states that business firm should protect data of employee
properly by securing their personal information and not relieving it to all. This law
consider various provisions which guide a person to secure personal data of candidate
and how to deal with sensitive and personal information of individual. While talking
about someone person information interviewer of company should take care of other
participants sentiments are not hurled by him (Granovetter, 2010). Provisions related to
data protection of person while collecting information by business, organisation or
government is defined in The Data Protection Act of 1998.
Legislation in relation to Employment: Company while making polices related to rights
of employees and their training and development program and compensation strategies should
take care of various laws that are enacted by parliament and statutory body of country. Some of
the laws that provide legislation related to employment are defined below: Employment Rights Act 1996: This act ensures rights of employee working with
organisation. This law restricts unfair practices of business firm related to the
employment policies. This law protects workforce of organisation from wrongful
dismissal and unfair practices like discrimination with employees in relation to age, sex
and religious at work-place. This law is enacted by legislature and statutory body of
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country securing rights of employee working in organisation. This act is enacted after
implementation of minimum wages and employment protection act (Hiller, 2013). The National Minimum wage act 1998: This law ensures that every employee should
provided with minimum wages that is defined in legislation of UK by government. This
law ensures that employee or labour should gain fair wages to fulfil their basic needs of
lining through working for profitability of an organization.
Legislation related to Health and Safety: The company should define all safety measures
and health related precaution before making their policies and implementing them in workplace. Health and Safety at Workplace Act 1974: This act defines various provisions that force a
company to implement a and follow various regulation in order to built health and safety
working environment in organisation. Company should be responsible towards
proceeding an healthy working environment for their labours and employee so that their
health should be maintained and diagnosed from any disease that may be having risk
while working in any industry or factory. This law enacted by government of body
restricts the guides company to enforce various safety measure to reduce accidents in
workplace and health maintaining actions to ensuring better health and safety of
employee and workers of business firm.
Legislation regarding Consumer Rights: Business organisation should be complied with
protection of consumer rights by identifying various responsibility of organisation in relation to
its customers. The company should and follow fair practices by providing quality product by
forming sales contract which is enforceable by always and on which the customers and
consumers can easily relay (Johnson, 2012). UK government introduced various laws in
legislation related to consumer rights to restrict unfair practices of business in order to make
more profit by involving in unfair practices and cheating consumers.
Consumer Rights Act 2015: This law is enacted in country on 1 October 2015. It is
collection of 3 major laws i.e. Sales of goods, Unfair Terms in Consumer regulations and Supply
of goods and services act. This allow is modernized presentation of rights of customers. This law
enables a person to demand for compensation for delivery of bad quality product, demand for
replacement etc.
Key legislation to every business firm: Some acts are formulated by government should
be followed by all companies whether it is dealing in private sector or public sector.
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Companies Act 2006: This law comprises 1300 sections and 16 schedules. This law states
various director responsibility towards the company functioning. This law provides rights to
stakeholders and shareholders of company to take action against board of directors if it is not
functioning well in business firm. This law provides various provision related to implementation
of transparency in operations of company (Jones and Sufrin, 2016).
P2 Role of government in law making and application of statutory and common law.
The UK government plays very important role in formulating various legislation related
to changing need and risk in carrying out business ethically and legally. Parliament of UK
consists of 3 department i.e. House of Commons, House of Lords and the Monarchy. Generally
discussion and decision related to particular issue and problem related to business environment
and its operations is formulated in two houses and proceeding of developed draft and bills is
approached by the Monarchy. The functions of UK parliament in law making procedure s
defined below:
 Check and analyse the decision of government related to particular issue or problem.
 Make appropriate changes in legislation of country if it is required with time.
 Discuss important issues and problem of day and try to find out new solutions to resolve
problem.
 Keep check on government taxation and other proceedings and approve them.
 Parliament of country make different law and enact them and regulate them in country.
 Helps in formulating various provision along with jurisdiction court of country (Kadish,
Schulhofer and Barkow, 2016). Provide a legal solutions to particular fraud or problem faced by business organisation,
consumer or other party.
Law making procedures:
Step 1: An issue or problem emerges on the government's agenda- Bill is developed by
the parliament of UK. This bill consist of major issues to be discussed related to particular
problem. Members of both the houses debate on particular issue and develop various goals and
objective to accomplish various solution to specific problem. This is the starting stage of
formulation of bill and discussion of government on particular situation faced by country and
companies. Bills contains basic information to specific problem and some topics that have to be
discussed in debate by House of Common and House of Lords.
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Step 2: Ideas for addressing an issue are considered- Next step to development of bill is
finding out various solution to resolve particular issues. The various members of Houses provide
their suggestion to particular problem and helps in formulating bills that are to be later on
enacted as legal laws of country (Kaplan, Weisberg and Binder, 2014).
Step 3: Interested people and groups are consulted- People interested in issues provide
outline and define problem that are faced by country and business organisation. Various group-
[pd in houses consult about other solution and possibilities that can be formulated in response to
problem. The different papers are developed by houses are as follows:
 “Green paper” - an initial outline of an idea. This is an outline to problem and various
measures that are to be considered while enacting any law related to particular problem.
 Sometimes a “white paper” - a firmer statement of the government's intentions. White
paper consists of strict intension of government that are to be followed during
formulation of bill and included in developing solutions to particular issue.
Step 4: Cabinet ministers must agree which proposals to take forward- This is followed
by gaining acceptance from cabinet ministers. All the ministers of houses should provide their
acceptance top particular bill that has to be formulated related to specific issue.
Step 5: Proposals are made into 'bills’- Then after gaining acceptance form the cabinet
minister of houses, Bill is proposed. This is draft of particular problem face by an companies and
action in relation to decrease chances of same misconduct by other companies in country. This
helps in strengthening the legal procedures of UK country (Leung and et. al., 2013).
Step 6: Parliament considers and scrutinises bills- This is refereed to as that bill that is
proposed by house of parliament are to be considered by all Members and MPs of houses to
enact it as law. For further proceeding sit is necessary the proposed draft should be scrutinised by
both the houses in parliament of country.
Step 7: Parliamentary Stages- This defines the various stages of development of Bill into
a law. This involves houses of common and houses of Lords.
 First reading: This is the reading of outline of issues that is discussed in the Bill in both
chambers.
 Second reading: MPs and peers discuss the major principles that are discussed in Bill in
second reading of an law that has to be formulated.
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 Committee stages: In this stage Bill goes through continuous amendment suggested by
line of MPs and vote for the changes implementation.
 Report stages: In this final report of all amendment is represented among MPs and peers
in both chambers.
 Third reading: This is followed by final reading of all amendment and vote for the final
face of bill. This may incudes more amendment in House of Lord (Luhrs, 2012).
 Bill approved by one Chamber is considered by other: This stage follows the passing of
final form, of bill to other house another to from it is started. Ex. If bills start from house
of Lords then it goes to same stage gain in house of common also. And both the houses
brings amendment and provide acceptance to final form of Bill. The Monarch's 'assent' turns a bill into an Act: In this stage bill is passed to Monarch
which provide final acceptance to bill also called as Royal Assent and described in
legislation as new law with all amendment with the advice of ministers.
Application of statutory and common law in Justice court
The judges make many changes and amendments in the bill passed by government and
parliament members of UK according to changing scenarios and changing needs of laws. This
includes following tasks that are carried out by justice court judge to formulate and apply
statutory and common law in practice:
Statutory Interpretation: this is interpretation of judge in the laws enacted by parliament
and monarch. Before demanding any change in legislation judge should consider intention of
members of parliament at time of law making and present usefulness of law in current situation.
About 75% cases of hoses of Lords bill are interpreted by justice court (Mason and Stephenson,
2015). This may be occur due misconception of legal terms and confusion or unclear terms that
are used in different case proceedings in court. In case Twining v Myers (1982) the legal terms
create a confusion that roller skates are considered as vehicle or not.
Aids used by judges to interpret statue: Judges uses various means to clarify various legal
terms and in formulating changes in particular law enacted by members of houses. These aids are
like the legislation and sections and amendments, various judicial precedents, Hansard i.e. during
the formulation stages of bills, Oxford law dictionary to clarify meaning of particular legal terms
involved in a specific case, European council laws and help from provision of Human right act
1998.
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Rules of Statutory interpretation: These rules helps judge of court to interpret particular
bill and law that is proposed by members of houses and formulated and compare it with the
actual meaning of legal terms should be. This follows various laws to bring changes in laws
formulated by parliament.
 Literal Rule: This brings natural and ordinary meaning to word and phase that is used in
law enacted by parliament. This change in amended in law whether it is contrary to the
meaning of actual law that is enacted by Monarchy.
 Golden Rule: This leads to literal meaning of statutory law but later on it is neglected in
literal interpretation because it may leads to absurd result. This is followed by
implementation of golden rule in statuary interpretation follow narrow and broader
approach to brings changes. The judge make decision according to literal meaning but
does not bring any statutory interpretation (McGill, 2010).
 Mischief Rule: This rule is used for identifying intention of parliament at the time of law
making and passing specific statue. In this conditions and situation is analysed at which
law is passed by parliament and case if discussed before court.
TASK 2
P3 Impact of various laws on business.
Impact of Company law: This law defines various provisions related to registration for
company, staffing structure and relations of other stakeholders and responsibility towards
Sunrise retails (Mnookin and Weisberg, 2014).
Registration of Company: The company law defines different legal formalities that are to
be considered while sunrise retails is expanded its business through registering it as a private
limited company. This defines two provisions which are as follows:
Memorandum of association- This defines company name, origin of company, owner
name and other basic information about the Sunrise retails.
Articles of association- This defines responsibility of directors, the business processes
that are to be undertaken and various means of authorization and control of outside stakeholders
in decision making process of sunrise retails.
The registration of company by following provision of company act include various
consequences that may occur in naming and defining solvency of business organisation.
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Statutory Books and Accounting records should be presented Before registrar office detailing
about accounting details and level authority given to particular employee and stakeholders and
board of directors of company (Nissenbaum, 2011).
Impact of Employment law: Employment law impact on recruitment and selection
process of sunrise retails to large extent.
Equality act 2010: This defines various policies of company that are to be considered
while recruiting and selecting particular candidate. He or she should not be discriminated by
re4crutier in terms of age, sex, religion, origin etc.
Employment Rights Act 1996: This defines various rights that are given by company to its
recruited employees (Data Protection Act. 2014). The rights of employee is having large impact
on recruitment and selection as this defines different rights like right to demand for basic wagers,
right to demand for security of job etc.
Health and Safety Rights Act 1974: The various provision defining various right of
employee like ensuring healthy working environment and Rights to demanding for safety
measures and tools while performing some task affects the interest of candidates towards
selection and process and affects recruitment of sunrise retails.
Data Protection Act 1998: Employee is most concerned about their personal information
that he is sharing with company recruiter should be kept confidential and not misused by others.
Impact of Contract law: The contact law defines various provision that are to be
considered by both employer and employee at the time of accepting a job offer letter for hiring of
person for sunrise retails. Company should defines all the basic elements related to job i.e. job
position, location, responsibility of employer and basic salary along with other incentives that are
to be given to selected candidate (Parker and Nielsen, 2011). The company should defines all
terms and condition in order letter of employee that are be reviled. Other wise the contract will
be void and not considered a valid contract before court against Unfair Contract Terms Act
1977.
TASK 3
P4 Legal solutions to different business problems.
Sunset company is facing financial losses from last 3 years in one branch situated in
Whitechapel. Company is approaching various solutions of employee redundancy in order top
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decrease workforce of organisation (Employment Act: who it covers. 2017). Some of the
dismissal practices that can be used by sunset Ltd. Are as follows:
Fair and Unfair Dismissal: This can be defined by the employee response and reaction
towards hos dismissal. If it seems to be positive for employee than it is fair dismissal. If
employee thoughts that dismissal is wrong and without any reason and company is not giving
Compensation of wrong termination and notice period of termination than it is unfair dismissal.
Constructive Dismissal: This is followed when employee itself resigns from duty due to
breach of employment contract by employer (Pohl and Tolhurst, 2010). It may happen because
of unreasonable demotion, cutting salary of month etc.
Wrongful Dismissal: This includes breach of contact or contract becomes void as terms
defined in agreement are not fulfilled by employer. This may include deduction of one month
salary are company refuse to pay for notice period.
Sunset Ltd. is following Fair dismissal practices in order to bring redundancy practices in
organisation to reduce workforce in workplace. Redundancy is termination of employee because
of inability to pay, or financial loss by business organisation or company insolvency (Reed and
et. al., 2013). The Sunset policy defines various rights to employee in response to redundant
policy of sunset Ltd. These are as follows:
 Employee can demand of alternative job in same company.
 Right to redundancy consultations.
 Demand for minimum notice period before relieving from job.
 Consultation from Human resource manger before dismissal.
 Employee can demand for pay instead of notice period.
 Redundancy Pay.
P5 Justification of appropriate legal solutions.
Sunset Ltd. Should follow fair practice s of dismissal and redundancy of employee in
order to decrease any legal complication. If company is not following appropriately than
employee can sue case against improper redundancy procedures and company may bear huge
loss in terms of monetary and non monetary both. The various methods that can be helpful for
employee taking action against unfair redundancy practices. These are as follows:
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