Business Law Report: European School of Business Management

This report provides a comprehensive overview of business law, examining various sources of law, including European Union law, human rights law, case law, legislation, equity, and delegated legislation. It details the role and responsibilities of the government in law-making, outlining the stages involved in creating a bill. The report further explores the impact of employment law and contract law on businesses, offering solutions for disputes within the context of the European School of Business Management. It includes discussions on the significance of employment law, contract law, and regulations, alongside steps to register a business and the legal personalities of companies. The report also analyzes the Soloman vs Soloman ltd case and provides the steps to form a business.

BUSINESS LAW
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Table of Contents
BUSINESS LAW.............................................................................................................................1
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1Descripotion of the various source of law that organisation required to comply with......3
P2 Description about the role and responsibility of government in order to making the law and
its application in the justice court...........................................................................................4
P3 Explanation about the impact of employment law and contract law on the businesses....5
P4 Solution to resolve the disputes of European school of business management................5
P5 Justification for the use of appropriate legal solutions......................................................6
P6 Recommendation for alternative legal solution................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Business law is very significant aspect by which company can protect and keep secure its
activities and functions. In order to get protection and security, business law and legislation can
largely assist to any organisation. In the present time, crime and fraud is continuously increasing
in the country so in order to overcome such act, law and legislation can largely assist (Smith and
Malloy, 2013). The present report is based on the various law and legislation which applied in
several case scenario. In addition to this, different source of law and role of government in law
making has been systematically discussed. Furthermore, employment law and contract law has
been also studied with respect of case scenario in this report.
Task 1
Description of the various source of law that organisation required to comply with
Business and other law is very important aspect by which business and any other can keep
secure and protect its activities and function. Law is the important system in the country which
defines several rules and regulation which can applicable for the state as well as people. In the
absence of law, no one can easily protect their activities and function. In a simple word it can be
said that law is a general behaviour which is imposed by the political authority in the country
(Scholes, 2015). Every country have its own different rules, regulation, code of conduct and
legislation which can imposed upon the countries function, operation and activities, Every
business enterprise have top follow governmental regulation and rule. With assistance of this
law, country government can imposed their decision for the state activities. In the context of UK,
there are major four source of law which are as follows-
 European union law- As per the research it has been founded that UK is the part of
European union so each and every legislation and law which is applicable on the
European union is automatically apply on the UK. However, after the Brexit, UK is
free to not follow the rules and regulation made by the EU.
 Human right law- This is another one of the most significant law which is very
important for the all human being who are living in the country. With assistance of
this law, anyone can easily keep protect themselves and get their rights and precise
(Posner, 2014). In addition to this, with help of this law, human being can get
protection from fraud, crime and other illegal activities and crime. European
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convention has been developed this law in order to provide protection and security
to all human being who are living in the country.
 Case law- This law has been compile and followed by the England and Wales. In
addition to this, it can developed with help of common law.
 Legislation- Parliament has been created this chief source of law which is very
essential legislation in the legal system in the parliament. In the UK parliament,
various principle has been performed. It is a body which gives rights to create the
law. In the parliament, house of lord and house of common is major two parties
(Lieberman And et.al., 2016). In the house of lord, there are total 800 memebers
which have right to give their vote at the time of making the law. On the other hand
in the context of house of common, 650 members takes active participation in
developing their law and they gives their vote for develop this law.
 Equity- This is another one of the most significant source of law which provides
justice and fair decision to the people (Kinicki and Kreitner, 2012). While any case
admit in the court then judge have to take fair decision in respect to the aggrieved
parties. With assistance of equity, judge can able to take fair decision and help to
provide relief to aggrieved party.
 Delegated legislation- In order to delegate law making powers to the execution,
delegated legislation is one of the most significant source of law in the country.
Description about the role and responsibility of government in order to making the law and its
application in the justice court
Government is that body which always protect and keep secure other in the country. In the
absence of government, various activities, operation and function cannot survive in effective
manner. Government participation and interference is very important (Folsom And et.al., 2012).
At the time of developing law and legislation, government plays a very crucial role which plays
three functions such as represent the citizens’ interest, maintain and monitors the action and
activities. At the time of developing the law, following are some stage which considered by the
government-
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 Bill- Bill can start by the common chamber and passed by the lord in the house of
common. This is very essential aspect which is necessary at the time of making the bill.
 First reading- While the bill has been passed by the chamber in the house of common
then in the next stage, bills title is simply read out in the chamber (Disch, 2016). This bill
organised in the house of common. This is very significant stage in the law making by
government and in the absence of this phase it is impossible to develop the law by
government.
 Second reading- In this phase, debates can occurred in the house of lord for evaluate the
viability and feasibility of bill. In addition to this, statement can made on the basis of
conclusion in the debate. The final decision related to the bill can take according to the
conclusion of debates (Crane and Matten, 2016). In addition to this, voting process can
also conducted in this house of common for taking the decision of law making.
 Committee stage- Committee stage assist in making the decision of making the law for
the country. In this bill can considered line by line and by committees of MP’s or Peer.
House of common explains the information related to proposal for analyse and assess
whether it can assist to manage the requirement of not (Coffee Jr, Sale and Henderson,
2015). In addition to this, decision can made according to the detailed examination.
 Third reading-Statement bill can represented by the house of common. In addition to this,
in order to accept and reject the bill in the house of common, voting can be conducted in
the house of common.
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Figure 1Parliamentary stages of a bill
(Source: The UK Parliament, 2019)
TASK 2
Explanation about the impact of employment law and contract law on the businesses
Employment law and contract law is very significant law by which parties can get protection and
effective security. As pert the contract law, while between two parties contract develops then
parties have right to claim against the party who break the rules and condition of the contract
(Cheeseman and Garvey, 2014). In addition to this, in the context of employment law, if any
employees are not following the rules regulation and standard which is developed under the
industry norm then corporation have right to dismiss that particular employee from their
employment. In addition to this, in the employment law, no company can not use the information
and name which is already exist in the market. In addition to this, the name of the corporation
should not hurt to any community and any other organisation in the country.
However, it is important for the organisation to comply with regulations like, Health and
Safety at Work Act 1974, Employers Liability Act 1969, Equality Act 2010, Contract of
employment act 1963, Unfair Dismissal Act 1997 etc. These are the regulations which helps in
protecting interest of employees. For example if in case a male employee found behaving
mysterious by boss and at the same day the boss finds out that cash is missing from petty cash
book and without any evidence, boss fires' boy. Then in such cases the individual has right to
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fight and file complaint against the organisation and boss under Contract of employment act
1963, Unfair Dismissal Act 1997.
Steps taken to register ESBN
 Analysing the need of making firm into private limited company
 Naming of firm for public
 Collecting details like activities of company, registered office address, shareholder
details.
 Preparation of memorandum of association and article of association.
 Filing for incorporation with companies house
 Seeking for approval from companies house
 Organising first board meting which includes directors for mandatory formalities and
documentation.
 Setting up registers which comprise Register of Directors’ Residential Addresses,
Register of Secretaries, register of Allotments of Shares, share transfers, mortgages &
charges
 Preparation of share certificates for shareholders.
Thus, role of directors in registering companies to record necessary companies details, make
proper documentation, organise meeting to reveal necessary information and to share vision and
values on the basis of which the organisation will further perform functions.
Soloman vs Solomon ltd case is the example of corporate law, his son forced him to turn the firm
into limited firm. As wife of him and son became subscriber. Firm purchased business in
39000. After sometime business was unable to generate profit and liquidator force Saloman to
repay the debts. But court taken decision that being a incorporation of company it is a separate
legal entity that is why owner is responsible to pay to creditors. Here director is free from all the
debts as director is not liable to pay all obligation of business.
Steps to form a business
 First there is need to prepare memorandum of association in which all stakeholder sign
thepaper (section 8 of companies act 2008)
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 Registration application is filled in which owner has to give detail of name of firm, its
address etc. (section 9(2))
 After that authorities need article of association in which rules are written and all
stakeholders have to give their concern on it (section 9(5))
 After that owner has to present capital and shareholding detail (section 9(4))
 Section 13 states registrar has to give consent for the registration as compliance’s
evidence.
Legal personalities of the companies
Legal personality was put upon companies in 1855. Before this most of the companies
were created either by Royal Charter or by Act of parliament. Initially these companies were
known as colonial companies that traded with outside world with new colonies. But after some
times new companies were created as a result of industrial revolution. Increase of company law
followed a pattern that companies uses presently. For this court developed a law with all the
reforms that were implemented by acts. All the stakeholders are commonly known as members
in company law have reduced or limited liability i.e. they need not to pay any kind of debt of the
company. If the company succeed then in such case value of shares of company will also
increase and all the shareholders of the company will receive an annual dividend. Salomon vs
Salomon ltd in 1897 saw supreme court affirming companies’ principle’s being separate from
director. Salomon was a sole trader who used to negotiate purchases from Salomon ltd director
which made him a secure creditor. After few years Salomon ltd lee and all the creditor were
pressing their statement of money owned by Salomon said that as a secure creditor, he is entitled
to be paid first. Because of which it came into notification that he was not liable to pay
companies debts but was a secure creditor itself. This company is one of the example of trading.
TASK 3
Solution to resolve the disputes of European school of business management
Alternative dispute resolution (ADR) is the best way to settle disputes out of court. It has
specific process for resolving fights between two organisations or individuals. It used for settling
disputes in less time because court consumes lot time and has specific procedure. However, the
fees of Alternate dispute resolving methods are very expensive and under this the fights are
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resolved with mutual understanding of both the parties. Apparently it is includes third party
involvement with mutual understanding ad in this process the people are not bound under any
agreement and legal restrictions (Feliciano, 2017). EBSM can resolve its disputes with service
provides, like computer, furniture etc. by implementing the use of this method, as it assist the
company in maintaining its reputation. Further, the Arbitration is an informal process of ADR in
which the third party makes decision for situation ad two of the clients who are fighting have to
agree on the judgement, this concept is taken from Unfair dismissal. Arbitration is a kind of
process of ADR process which is used for decision making. Arbitrator is a person who hear all
kinds of arguments from both the parties and focuses upon decision of outcome of dispute. It is a
less formal process and all the rules associated with evidence are usually relaxed. All the
involved parties can provide proof and are allowed to argument at the hearing. Arbitration is of
two types “binding” or “non-binding”. Binding arbitration means that all the involved parties
have waived their right to a trial, agree to accept the arbitrator’s decision as final but in this
decision appeal right is not there. Non- binding arbitration means that all the involved parties
can request a trial if they don’t accept the arbitrator’s decision. Sometimes cost is imposed and
sometimes fine is imposed. If the decision of court is not favourable then in such case it is
awarded in arbitration. This type of arbitration is increasing rare. On the other hand, it can be
critically evaluated that this process of resolving disputes lack the legal expertise unlike courts
and in this the solutions are not enforceable (Fisher, 2017). On the other hand, it can assist the
management school in saving time and with the help if this process the school can turn situation
in its favour as in this the solutions are evaluated on the basis of mutual understanding of both
the parties (Reuben, 2014). In addition to this the binding and not binding concept of ADR is the
best process as in that concept the third party make its judgement if both the clients agrees on
that than is considered under binding whereas if parties do not agrees than it non binding in
which third party do not give any solution and decision. Hence, it is effective method for
resolving disputes as it assist the school in bringing down expenses and removes the chance of
charges.
Justification for the use of appropriate legal solutions
The legal solution used in the following case is appropriate and efficient. By utilising the
following legal solutions, the organisation will able to eliminates the legal consequences
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effectively and efficiently. As the European Business School of Management considers that
students requires time to time information and legal advices. The other sources, where students
can acquired the legal information are primary and secondary sources (Fisher, 2017). In primary
sources, students can acquire legal information from the lawyers, legal advisors, magistrates, etc.
They have ample of knowledge about the laws and legislation. Thus, students can increase their
level of knowledge effectively and efficiently. Further, these lawyers and legal advisors will
provide precise knowledge for the particular problem. In secondary sources, the students can
acquire knowledge from sources like books, internet, journals or other articles. Thus, it is the
responsibility of the management to established areas where students can access easily and
efficiently (Reuben, 2014). Students can acquire legal knowledge from these sources effectively
and can improve their learnings simultaneously. By accessing various websites, students of the
management school will able to grasp the knowledge efficiently. Reading books, journals and
other articles will help the students to acquire the knowledge effectively and efficiently. Thus, it
is the responsibility of management to develop effective learning areas that provide supports to
students and they can access to the legal information effectively and efficiently (Loafman and
Altman, 2014). Primary and secondary sources will assist the management of business school to
increase the level of students knowledge and learnings. Students can access the legal information
from these sources and improve their legal knowledge. These solutions are appropriate and will
help the students to increase their learning effectively and efficiently. It is the responsibility of
the management to established areas where students can access easily and efficiently.
There care various sources to seek legal advice such as,
Neighbourhood law centres: The Neighbourhood law centre is a legal service society
community clinic which is specialized in various areas of civil and non-family law. This centre
has a well structured staff of lawyers who are well qualified in order to provide free legal advice.
These lawyers also represent their clients in different areas such as -
Employment Insurance
 Canada Pension Plan and Canada Pension Plan Disability Insurance
 Social Assistance Benefits
 Landlord orTenant and Housing Matters
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 Disability Issues
Fee arrangements: The alternative fee set up (AFAs) have been the origin of much debate in the
legal community during the past several years. Some law firms and attorneys have been very
vocal proponents of use them or entirely switching to AFAs whereas others, who seem to be the
majority, still feel uncertain if AFAs will assist their bottom line or reduce their profitability.
TASK 4
Recommendation for alternative legal solution
In order to develop reputation, the European School of Business Management, must implement
various strategies and approaches that will helps them to avoid any legal circumstances. It is
recommended them to hire a legal advisor that will help them and guide them appropriately, so
that management of the school prevents any legal consequences. The managemnt of school
further acquire more information and knowledge about the legal structure of United Kingdom, so
that they can eliminate and avoid legal crises (Folsom and et.al., 2012). After Brexit, laws of
United Kingdom has been transformed. Thus, it is recommended to the management of school to
acquire effective and efficient legal knowledge, so that they work effectively and efficiently.
European school of business management should use this method for resolving disputes with the
service providers as it assist the firm in resolving issues in friendly manner with mutual
understanding in which no party has to face loss. Further, it is effective methods which helps the
business in resolving conflicts without any charges of court. The School should use Alternative
dispute resolution process for resolving disputes as it is the most effective method which helps in
saving reputation and time of both the parties involved in disputes like ESBM school and their
service providers.
Arbitration: this is the method to resolve any legal matter in which arbitrator listen views of both
parties and individual takes decision.
Negotiation: This is another method of legal dispute resolution in which both parties negotiate
with each other. Both put their own views and after this negotiation such judgement is taken by
judge that can keep both happy.
Mediation: Third party get involved into it and discuss on the matter with both involved persons.
Mediator takes final decision and both have to agree on it.
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CONCLUSION
From this report it has been analysed and concluded that At the time of developing law
and legislation, government plays a very crucial role which plays three functions such as
represent the citizens’ interest, maintain and monitors the action and activities. In addition to
this, it has been also concluded that With assistance of this law, anyone can easily keep
protect themselves and get their rights and precise. In addition to this, with help of this law,
human being can get protection from fraud, crime and other illegal activities and crime.
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REFERENCES
Books and journals
Bird, R. C., 2013. A Great Debt of Gratitude: An Interview with John Donnell. American
Business Law Journal. 50(1). pp.195-200.
Cheeseman, H. R. and Garvey, J. R., 2014. Business law. Pearson.
Coffee Jr, J. C., Sale, H. and Henderson, M. T., 2015. Securities regulation: Cases and materials.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Disch, L., 2016. Representation. In The Oxford Handbook of Feminist Theory.
Feliciano Jr, S., 2017. Alternative Dispute Resolution. The Catholic Lawyer. 33(1). p.10.
Fisher, T., 2017. Law and Economics of Alternative Dispute Resolution. The Oxford Handbook
of Law and Economics: Volume 3: Public Law and Legal Institutions p.280.
Folsom, R. H. And et.al., 2012. International business transactions: a problem-oriented
coursebook. ThomsonReuters.
Kinicki, A. and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.
Lieberman, J. And et.al., 2016. Business law and the legal environment.
Loafman, L. and Altman, B. W., 2014. Going online: Building your business law course using
the Quality Matters Rubric. Journal of Legal Studies Education. 31(1). pp.21-54.
Posner, R. A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Reuben, R.C., 2014. Constitutional gravity: a unitary theory of alternative dispute resolution and
public civil justice. Ucla L. Rev.. 47.p.949.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Smith, J. and Malloy, R. ., 2013. Real Estate Transactions: Problems, Cases, and Materials.
Wolters Kluwer Law & Business.
Online
The UK Parliament. 2019. [Online]. Available through <
http://toolkit.northernbridge.ac.uk/introductiontogovernmentandpolicy/theukparliament/
>
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