Comprehensive Business Law Report: Legal Framework and Solutions

This report provides a detailed analysis of business law, encompassing various aspects such as the sources of law, the role of government in framing regulations, and the legal obligations of employees. It explores different sources of English law, including legislation, case law, and European Union regulations. The report examines employment law, including workers' compensation, harassment, and equal opportunities, and discusses contract law principles. It also presents a case scenario involving a workplace injury and analyzes potential legal solutions. Furthermore, the report covers alternative dispute resolution (ADR) methods and their advantages, offering insights into resolving business-related legal problems. The report concludes with a summary of key findings and references relevant legal sources.

Understanding of
Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of law and legal system..............................................................................1
P2 Role of government in framing rules and regulations............................................................4
TASK 2............................................................................................................................................5
P3 (a) Legal obligation of employees..........................................................................................5
P3 (b) Concept of employment and contract law........................................................................6
TASK 3............................................................................................................................................7
P4 Legal solution for business problems.....................................................................................7
P5 Justification of solution..........................................................................................................8
TASK 4............................................................................................................................................9
P6 (a) Concept of ADR and their advantages..............................................................................9
P6 (b) Alternative legal solution................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
All legitimate business is requiring to operate within framework of law. It is essential for
organisation as well as person to understand that how law works and affects to their business, for
example, while formation of contract will be valuable only if it is enforceable by law. The law
sets out many rules and regulations for organisations, which also governs areas of employment
of staff (Bagenstos, 2013). Although, legal advices from specialist is usually obtained on
particular issues, which also helps them to apprehend core norms of business law and to know
when to take legal advice. In present report sources of different law is explained in detail. Along
with this; government is also playing vital role in making these rules and regulation which is also
explained. Further, different case law on employment and contract law is also discussed.
Moreover, alternative dispute resolution process is discussed in context of different countries
legal system.
TASK 1
P1 Different sources of law and legal system
Acts of parliament are also known as sources of English law. Laws and regulations are
governing by parliament within country. They are making important rules so that they can
balance the interest of different members of community. From these laws natural (human) as
well as legal (company) persons can ascertained that what they are permitted to do and what they
are not. There are different sources of law which is mandatory for individuals as well as
companies to bind with these rules and regulations (Bishara, 2011). Case law and legislation are
to be considered as important sources of ruling. Following are explanation of different sources of
law.
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Figure 1: Different sources of law
(Source: Sources of English Law, 2015)
Legislation – This comprises with primary and secondary legislation. Primary legislation
is also known as act of parliament (statutes). This is considered as most important source in law.
Another is secondary, which is also referred as delegated legislation. In this, power has been
granted to public bodies or local authorities in frame law for specific purpose by parliament
(Cameron, 2017). Parliament consists with legislative function of acts such as: codification, law
reform, consolidation, revenue collection.
Figure 2: Legislative functions
(Source: Legislative function, 2015)
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Case law – In this judgment or decree are given by higher courts which also interpreting
the meaning of statutes. These decisions are binding on all other inferior courts or on same level
of courts. this law is comprising with criminal and civil law. In civil law, aggrieved person
commences with court action who is known as claimant or plaintiff. Other party is called
defendant. But in criminal law, considered with serious offences which is committed by person.
Purpose of this law is to determine guilt of defendant. In this person are fine with penalty or
imprisonment or with both.
Figure 3: Court structure
(Source: Court structure, 2015)
European Union - In 1973, UK joined EU and accepted all obligations which are
implemented by European throughout country. Along with this; they have to fulfil all their
obligations under one treaty. There are three types of EU legislation i.e. regulations, directives
and decisions. Regulations are binding with some acts which are similar with some national law
and applied to all EU countries (Clauwaert and Schömann, 2012). Directives, it set out general
objectives but leaves individual country to implement own legislations. Last decision, specific
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matters which are brought in front of European authorities and they are binding on particular
member of state.
Custom – Customs are common habits or behaviour which are observed by society.
These laws foundation of common laws and it is considered as oldest form of English law. These
regulations are applied to whole of country which also include local area. But nowadays, these
laws are largely disappeared. There are some requirements which make custom law valid such
as: it should be continuously exist without taking any break, reasonable, certain.
Legal text – In this, books written or edited by professional lawyers according to their
filed. Although, these texts are not to be considered as sources of law but they are often used by
judges to come with an appropriate conclusion (Colvin, 2011).
Further, there are different countries who are running their business and it is essential for
them to apply different acts which has been framed by government. These acts are; employment
law, contract, health and safety regulations, minimum wages act and many more.
P2 Role of government in framing rules and regulations
The core function of parliament is making of law. Laws begins as bills and it comes in
progress through many number of stages in both houses of lords and commons. The process
begins with getting of common text which is agreed between both houses before making bill into
act by Monarch giving Royal Assent. Only parliament can make new laws or make changes in
existing ones which also affect too whole of UK. So, proposals which were brought by
government to parliament are known as bills. The bills are introduced as draft format which is
presented in parliament. Drafts bills are referred to committees for taking suggestions from
publics. There are some stages which has to be passed by every public bill.
First stage – In first phase, introducing of bill is taking place in house of lords and
common. It consists with short type of bill which is read out in chamber by clerk.
Second stage – In this, principals of bills are discussed with other members (Dickerson,
2011). The bill is passes to another stage without taking any vote.
Committee stage – In this, detailed examination of bill is taking place. The opinion of
experts is taken which are also situated outside parliament. The votes of members are taken to
discuss that whether it is mandatory to make changes in bill or not.
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Report stage – In this stage, house of lords reviews the bills which is amended. This is an
opportunity for members to take decision again during committee stage or make further changes
if required.
Third reading – It is final opportunity for both houses to debate and give vote on bill. If
any amendments are required, then votes can be given by members.
Royal Assent – When bill completed all its parliamentary stages in both houses, then its
put into assent of Monarch before bill become act of parliament (Horspool and Humphreys,
2012). In this bill is approved by Queen and after it become law which is also known as act of
parliament.
In whole process, government are playing vital role. They are also making some rules and
regulations which the permission of parliament in emergency so that they can protect the rights
citizens.
The statutory and common laws are applied to courts of UK. Through this they can
maintain their dignity. These laws are designed to protect the rights of people. Statutory laws are
made by parliament. If anyone violates these laws, then government is having right to give them
punishment. On other side, Common laws is also referred as case law. In this, judges are passing
their decision with help of considering existing rules and regulations.
TASK 2
P3 (a) Legal obligation of employees
While running any business in modern era, it is essential for organisation to comply with
all rules and regulations which has been framed by government. They have framed many
obligations for employers so that they can protect employees while performing any dangerous
activity. Following are some acts which is telling about employer’s obligation at workplace.
Occupational safety and health – It is considered as multidisciplinary filed which is
concerned with safety, welfare and health of people at work place. The goal of this healthy
programme is to provide positive working environment to employers (King and Raja, 2013).
Occupational health and safety act 1970, in this duties of employers are; they have to furnish all
information of employee’s employment which are free from hazards or likely to cause death or
physical harm to their workers. Along with this, they have to comply with all health and safety
standards while promulgated under this act. Further, employee have to comply with all
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occupational health and safety rules, regulations in order to conduct their activities in appropriate
manner.
Workers Compensation Act - It is a form of insurance which is providing wages,
medical benefits to injured employees. Workers compensation act 1897, is related with safety
issues which is supervised by Health and Safety Executive. They have provided many
frameworks by which employees and employers are able to comply with all statutory
requirements. It is essential for organisation who are running their business to comply with all
these norms so that they can protect rights of employees at work place.
Harassment – Protection from Harassment Act 1997, it protects all victims from stalking
behaviour, anti-social behaviour by neighbours or racial harassment. As per section 7(2) of this
act, it states that harassing a person at workplace may also include alarming people or causing
any distress to them (Malhotra and Lumineau, 2011). While running any business it is essential
for employers that they do not harass any employees during their employment contract. If these
are taking place, then this may put people into fear of violence.
Equal opportunities - – It prohibits people to discriminate people on the basis of gender,
caste, religion, nationality. As per provision of Equality act 2010, discrimination can be
occurring at workplace but it is responsibility of employers to avoid them. The following are
some different ways in which discrimination is taking place:
Genuine Occupational Requirements – It means where race, age, sexual orientation or
religion are required for particular job and these are creating limited exemption from liability of
discrimination legislation.
Discrimination by association – This is the direct discrimination which has been done
against individual because they are associated with another person who protect the
characteristics.
P3 (b) Concept of employment and contract law
In UK there are different rules and regulations which are set by government in order to
protect the rights of employees at work place. For example, if any company is operating their
business activities, then they have to comply with all those rules and regulations which are
framed by government. Employment law, it regulates relationship between workers, trade
unions, and employers (O’Leary, 2017). As per provision of Employment right act 1996, section
1(2), it states that employees entered into an employment contract when they are agreeing to do
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something for organisation. It is significant for them to read all terms and conditions which are
specified in this act. So, that employers can perform their duties in appropriate manner.
Contract act, when there is two more than two parties are forming any agreement and
these should be enforceable by law. In short, the agreement which is done between two parties
should be enforceable by court. To make a contract valid, then it should require some essential
elements i.e. offer, consideration, acceptance, capacity, legal intention, certainty (Pizer and et.
al., 2011). When company is doing any contract with other parties, then it is essential for them to
comply with all elements which make contract valid.
As in given case scenario, a 16 years old girl is working under fast food outlet any frying
range of cookies. She had slip on water which is leaking from ice-making machine and her hand
was break down. Unfortunately, her hand went into deep fryer containing whose temperature is
360°F and burn her hand. On that they, it was found that, there were shortlisted of staff and
leaders was working on tills instead of monitoring workplace safety.
From above scenario, it is concluded that, it is responsibility of employer to defend the
rights of employees from any dangerous activity. Along with this, any organisation is not
allowed to appoint any children who is below the age 18 or 21 as per the jurisdiction.
TASK 3
P4 Legal solution for business problems
Redundancy is a form of dismissal of employees from job. It generally when in
organisation when employers want to reduce their workforce. If any employee is considered as
redundant, then they may be eligible for some rights which includes; notice period, redundancy
pay, consultation with employer and also have to give option to switch over in other job. The
redundancy of employees should be selected in fair way. If redundancy is selected on the basis of
age, disabled, or gender then it would be classed under unfair dismissal. As per section 96, unfair
dismissal means employee should be qualified period of services which protect their all rights. If
employers are dismissed from organisation, then there should be valid reason for that (Román,
Congregado and Millán, 2011). On other side, wrongful dismissal will take place when
opportunity of being heard is not given to damaged person. For example, employers have not
given notice period to employees for dismissing them from organisation.
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According to provision of Employment Act 1996, it states the main terms which has been
made between employee and employer. It clearly defines that employer has to defend the rights
of workers or staff from any illegal activity which are performing by others. Further it also sets
out the rights of employees in circumstances of dismissal, wrongful dismissal, parental leave or
any redundancy takes places.
In given scenario, Calvin was a designer who is working under large fashion house. He
was working since last four years. His employer was Donna who arrives on Monday morning
and finds that Calvin acting like a suspiciously. So, Donna checks petty cash box and found that
100 pound were missing. Donna came into Calvin room and dismissed him without giving any
notice period and saying that “she would not have thief like Calvin working there any more”.
As per employment act, Calvin is having right to sue against Donna because she had
dismissed him without serving any notice period. Along with this, there is not a valid reason for
terminating him from office. So as per provision, Calvin is having right to sue against Donna
because she has not given any time period to him to put his point view.
In another case, Kevin's father Dan is having small convenience store. After a point of
time, his story was destroying by fire. So eventually, he opens another store in new location and
apply for insurance. The fire which has taken place from that Dan had suffered from substantial
damages. But insurance company refuses to pay claim on the basis of that he made a claim in last
two years and were not allowed again.
As per proviso of Insurance Act, there is no time bound regarding taking any insurance
amount from company. So Dan is having right to recover the loss amount from insurance
company.
P5 Justification of solution
From above both case scenario, different rules and regulations are applied to organisation
and they have to comply with all these on regular basis. In first case, wrongful or unfair
dismissal are taking place. According to these provision, if termination of employment is taking
place without any valid reason then employee is having right to sue against them. As per section
95 of employment act, following are some circumstances in which termination of employee is
taking place (Shapiro and Pearse, 2012). If employer wants to terminate any employee from
organisation, then they have to fulfil some following terms and conditions which are specified in
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law. Through this they can also get the valid reason to terminate any employee from entity. But
along with this, they have to serve a notice period for terminating any employees.
 If notice is given by employer to employee on the breach of any contract, then they are
having right to terminate workers.
 If employee is terminating any employee on his own basis and performing their duties
well then employers can terminate them without giving any notice period.
But in case scenario second, Dan have legal right to suit against insurance company on
the basis of that he had already recover the insurance amount last 23 months ago.
There is different solution has been provided on various situation. Through this they have
to comply with rules, regulation and policies which are imposed on them. the solutions have
been provided by court is various cases which are filed by parties in order to resolve their
dispute.
Case law, British Leyland UK Ltd V Swift [1981] IRLR, decision of court was held
that employer has to considered less penalty and they do not think this is right test. Employer has
to prove that Swift had done any wrongful activity. Else there is reasonable care of employer
who could have dismissed him.
TASK 4
P6 (a) Concept of ADR and their advantages
Alternative Dissolution is a process and techniques which act as a means for discharging
parties comes to an agreement with a short of litigation. In this parties are resolving their
disputes with or without taking help of third person (Wang, Yeung and Zhang, 2011). It
comprises with various approaches for resolving disputes in non-confrontational way through
mediation, arbitration and adjudication. There are different types of ADR which are considered
in civil cases such as mediation, arbitration, neutral evaluation and settlement conferences.
Mediation – In this, impartial person is there who is also known as “mediator” and helps
to parties to reach with mutually acceptable resolutions for settlement of disputes. The mediator
does not give any final decision but they help parties to communicate with both and try to settle
their disputes themselves.
Arbitration – It means that, where there is intervention of third parties to resolve disputes
among them. This third person is also known as “arbitrator”. It is considered as less formal than
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trial. The decisions which are taken by arbitrator either binding or non-binding. Non-binding
means where parties are free to reject the decision of arbitrator's. Whereas parties waive their
right and agree to accept the decision of arbitrator as final.
Neutral evaluation – In this, each party get a chance to present the case in front of neutral
person. The opinion of evaluator is not binding on parties.
Settlement conferences – These are either mandatory or voluntary. In this type of
settlement, parties are meet with judges to discuss their disputes (Ye and et. al., 2011).
Settlement conferences are appropriate in some cases where option of settlement arises.
The following are some advantage of ADR which gives benefit to both parties.
 This process is faster if it is compare with court litigation progress and less time
consuming.
 Both parties are getting chance to tell their story so that valid conclusion can be come.
 It is flexible and responsiveness.
 This process is considered as confidential in nature.
 It also helps to both parties to maintain their goodwill and do not create any escalate
conflicts.
P6 (b) Alternative legal solution
Nowadays, different countries have set their own rules and regulations regarding any act
or laws. In UK, arbitration is that process where both parties are having right to appoint their
person in order to resolve their conflicts. The concept of this term is different from each country.
Each country is different tools and techniques so that they can resolve their disputes in
appropriate manner. In US, ADR process id consists with arbitration and conciliation which are
used by parties to settle their disputes without involving any court litigations. It also saves the
time both parties and less expensive. Through this, process which is considered in ADR is
confidential and not share with anyone.
In given case study, Antwon who is running large investment firm and Tyrell who is the
owner of software company (Wang, Yeung and Zhang, 2011). But between them disputes have
arises. These disputes have been gone for a several weeks. But they did not receive any
satisfactory solution. At same point of time, they have to maintain their business continue for
mutually benefit.
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