Business Law and Ethics: Contract Law, Justice System, Enron Analysis

This report delves into the core principles of business law and ethics through two projects. The first project examines contract law, including the elements of an agreement, the English justice system, and legal relationships between parties in a case study. It analyzes the formation of contracts, potential breaches, and available remedies. The second project focuses on the Enron scandal, exploring corporate governance, ethical failures, and the impact of the Sarbanes-Oxley Act of 2002. The report highlights the importance of ethical practices and legal compliance in business operations, providing a comprehensive overview of contract law and the consequences of unethical behavior in the corporate world.

Business Law and Ethics

Contents
INTRODUCTION...........................................................................................................................3
PROJECT 1......................................................................................................................................3
Describe contract law as well as describe all the blue patterns of an agreement...................3
Illustrate the justice system about the English legal framework and instruct the entities well
above court(s) to follow the case............................................................................................4
Recommend Hilary about whether there are legal relationships among her or some of the
following individuals: Eleanor, Amy and Olivia...................................................................5
Explain and debate the alternative solutions open to the parties............................................5
CONCLUSION................................................................................................................................6
Project 2...........................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business ethical principles are a general term that encompasses quantities of rules and
regulations. It's really important that law through regulation should be implemented for either of
the agency or person according to their particular decision. Most of those rules that fall into
criminal law include contract law, corporate law, civil legislation, land law and far more. It
totally depends on the conditions many of the following laws and regulations must be
implemented in order to meet goals successfully.
It would be focused on different separate tasks, in the sense of the task. Explaining the very
first project, it is connected to the case study that applies to law of contract. Rest of the entire
case analysis will be resolved correctly, because it will be appropriate to advise each of the
individuals involved in the investigation in order to arrive at a satisfactory conclusion. In
addition, part two should be focused on Enron corruption probe in which the 2002 Sabane Oxley
Law would be included in that for thorough consideration of the subject.
PROJECT 1
Describe contract law as well as describe all the blue patterns of an agreement
Contract Law: It is identified as the legislation and practice that merely addresses the
procedure of signing a legal contract. It's really important that they should be prepared to obey
the correct rules of law if either of the parties wishes to sign the contract. Any agreement may be
created on the basis of bid and approval where there may be incorporation of considerations. If in
some of the cases either of the parties failed to comply as required by statute, civil action shall be
required by the innocent person within this particular case, which is connected to the violation of
agreement. If a breach of warranty happens so it is the accused party duty to disclose the
evidence and details in order to obtain all of the losses (Bu, 2019). Furthermore, no contract
should be entered into with a small and unsupportable male, since such agreements would be
irregular in nature.
Blue Print including Contract: This was discovered after reviewing the above specific
example that separate contracts were established in the situation. Hilary and Elanor were the first
frame work together. Here, Hilary advertises that he needs to sell newspaper at a cost of £15,000
while Eleanor rendered a counter bid which he will only always want to spend full 10,000.
Taking a look at this Elanor response she could offer it for £13000 when Eleanor hadn't replied

at all. Afterwards, she answered she wanted to sell that for £ 10,000 when Eleanor that she was
no longer involved inside it. When the sale started Hilary told Olivia which artwork for sale was
no longer accessible.
Illustrate the justice system about the English legal framework and instruct the entities well
above court(s) to follow the case.
English Legal Structure is one of the excellently-defined legal structures under which the
judicial branch plays a significant role in addressing the role of various court systems. UK justice
framework is based on both criminal and civil cases trials. In comparison, the justice system was
addressed below:
Civil Litigation: These are the hearings wherein how every legal issue should be handled is
addressed. To settle some of the civil litigation legal questions, court has also been divided into
various categories which are local court, judges, district court and court of appeal which
Supreme Court. About any case of criminal trials is settled by circuit courts, as well as all legal
procedures are pursued to determine the best remedy with only instances (Hall and et. al , 2018).
Judicial proceedings: it really is a criminal charge in which the disruptive aspect of the
offence is the only solution. Criminal crime is the felony when an individual causes an issue just
for financial profit of another. English Justice Framework has established the appropriate court
framework to settle all of the civil trial. The legal procedure for settling all of the court trial
opens mostly with magistrate's court preceded by the tribunal of Crown. There is also the
Judicial Division appeals court and when it's House of Representatives to get the final decision if
there is dispute.
According to the given situation if one of the parties decides to pursue immediate action
to settle a dispute, the challenged party will seek assistance from magistrates’ court. It is perhaps
the most relevant court for settling some of the agreement or contract-related cases in which
most disputes can be found. The time-process in county court for settling litigation is shorter than
most other legal hearings. However if the participants throughout the situation really aren't
pleased with the conclusion made by the high court perhaps an application may be made to any
court under that respective state. This will undoubtedly cause higher costs alongside period and it
is also said there are chances of producing successful outcomes in that as well.

Recommend Hilary about whether there are legal relationships among her or some of the
following individuals: Eleanor, Amy and Olivia.
Throughout the scenario study in question, it was discovered that Hilary has attempted to
enter into an agreement with three separate parties so it is important to determine not whether
any of those agreements were established. Detailed description has been listed below to describe
about all this:
Within the sense of Hilary & Eleanor: There has been no formal deal between both parties
when it was noticed that only bid was produced seen between respondents and promissory note.
There Hilary really wasn't happy with the response bid at the early stages, however after which
she agreed to purchase the same newspaper at £ 10,000 so Eleanor really wasn't ready anyway at
this point (Luetge, Armbrüster and Müller, 2016). This was the key factor that will begin us
explain that Hilary and Eleanor had no contractual bond.
With respect to Hilary & Amy: there really was no binding agreement concerned with this
specific aspect when it was discovered that Amy all had Fax Hilary and disregard the letter of
approval that had been reported and she was not able to sign the contract.
Under Hilary & Olivia context: Reflecting only at possible case, it could be safely assumed
there was a binding arrangement between the couple. It's also because Hilary was already
boasting for the big sale Olivia had expressed her curiosity towards. When the deal was
completed, it was discovered that Hilary has violated the agreement by claiming that she was not
able to finish her portion of the job at the last minute after the project was done.
Explain and debate the alternative solutions open to the parties
As per contract law, as well as of the contractual terms of civil law shall be met with until
the contract is entered into by the person concerned. Failure to conduct the respective job in
compliance with civil law that generates the breach of contract condition is discussed throughout
the contact. Here, the innocent victim has the remedy in various forms, like monetary injury,
precise results, and much more (Mayer, 2017). It should be clearly accepted, after considering
the above scenario, what else are those conditions in which solutions are possible with the group.
There really is no legal recourse accessible for Hilary during the first circumstance of the
event, since bond was not established here between sides. That is because the group was still
only allowed to penetrate further into deal if Hilary did not consider counter-offer. Thus, in this

specific case, there was civil arrangement between the entities that implies the solution did not
occur.
In the situation of a second example, it is important to recognise that the individual does
not like to sign the contract but also she told Hilary to completely disregard the letter of approval
which is not issued. There is no bond between the parties in this specific case which implies
there would be none of the deal. So, throughout this particular version, solution would not be
accessible for Hilary too. Hilary and Olivia had such a civil contract to the second and final part.
It was really used where Hilary had made advertising where Olivia displayed approval. It
indicates that there is indeed a valid arrangement among Hilary and Olivia but there will still be
a breach of contract if the contracting party failed to conduct their portion of the job. In this
respective case , the solution accessible to Olivia would be that Hilary ought to be capable of
offering bass player paintings at a payment of 1 or even Trumpeter marked paintings must be
given.
CONCLUSION
In the end of this report, it has been concluded that Contract law is relevant and without it
these are underpinning our culture, life as we know it does not survive. It is because many
products or services are produced and sold in countries like Australia by trade and trade.
Contract law is comprised pretty much entirely of judge-made legislation and therefore is to also
be contained mainly of cumulative judicial judgments over the years. Consequently, most
textbooks on the topic consist mostly of analysis and reasoning of certain decisions by the
speaker. But research books often played a significant part in arranging and explaining court
rulings in a cohesive manner.

Project 2
Enron Company-At the last of 2001 this was announced that an institutionally, systematic,
and strategically organised accounting scam maintained Enron 's current financial status.
Ethical corporate governance: It is defined as the mechanism that allows an organisation to
achieve a balance between the various interests (MCLAUGHLIN, 2018). This was said it is the
duty of the company to cut expenses in an optimal way, although at the same period there should
be able to perform a few of the productive work such that the services used do not cause
difficulties for several of the people. Organization has to carry out its corporate operations on a
regular basis that also ensures there seem to be a range of decisions and measures to be
undertaken. But such choices do not influence any of the individual so that potential goals could
be better accomplished. Throughout the current scenario it is very important to obey the laws and
regulations and conduct as per the necessity of legislation and if borrower defaults to use it then
there have been various issues that can be quickly generated. Enron Corporation’s storey
portrays a business that has achieved greater levels only to experience a dizzying decline. The
fall of the predestined company has harmed thousands of workers and has rocked big banks to its
heart. At Enron 's peak, their shares became worth $90.75; just before they filed bankruptcy on
Dec. 2, 2001, they remained trading at $0.26.1 until particular day, people question how such a
strong company imploded almost instantly, at the period including some of the biggest
corporations in the U.S . The leadership continued to trick authorities with bogus securities and
off-the-books reporting for much too long is still hard to find out. Another of Skilling's early
efforts was to transform Enron accounting system from a conventional historical expense
accounting approach to mark-to - market (MTM) accounting system, by which the firm obtained
official SEC approval in 1992.5 MTM is a calculation of the fair valuation of investments that
can evolve over time, like financial assets. Mark-to-market is meant to offer a practical measure
of the actual financial position of an institution or business, and it is a standard and commonly
practised practise. Nevertheless, the approach can be abused in some situations, as MTM isn't
really based on "real" costs but on "market value," which is more difficult to identify.
2002 Sabane-Oxley Act: It is known as the legislation initiated by the U.S. Congress held
July 30th, 2002. The primary aim but behind legislation's implementation was simply to try to
prevent any taxpayer from exposing some of the individual false financial statements. Often
known as the 2002 Corporate Accountability Act this legislation is. This act guarantees that any

company operating on the marketplace ought to be capable of executing a thorough audit if
accurate and honest reporting is to be submitted (McLean, 2017). If the company fails to have
equal evidence, legal action can be taken with effect immediately towards themselves. The key
aim of launching this particular legislation was to recognise the controversies that are found
primarily within the private sector. Simply put, this legislation has made clear legislation about
which the company's core duty would be to set a new record or even stringent guidelines for
accountants, auditors, or company directors have been created. And the punishment on each of
the issuer's mistakes has been raised. A few of the typical scenarios was Enron Corporation's
event that was the key factor for the beginning of the 2002 Sabane-Oxley Act.
Enron Corporation's situation has generated a lot of problems thanks to their tax record and
financial reporting. It seems that the agency has been able to do its aspect of the work according
to their necessity. It was among the American-based companies from which they brought
attention to banking and business fraud both as result among which the founder had to lose $74
billion or even find business as among the bankrupt corporations (NOBLE, 2019). Also there
was a worker company pension scam, in which it was discovered that employee linking had to
pay billions of dollars. It was among the 7th biggest corruption & financial cheating in
companies. Employees have had to quit their work, which was the main problem within the
situation. Jeffrey Skilling, who was the institution's former top president, was convicted to 24
years throughout this case.
Case review on Corporate Governance and Ethics
If it is appropriate to address all through this situation in the light of responsible financial
regulation since it can be concluded that the leadership are only seeking to achieve personal
advantage. They were also not ready to communicate the truth about the business as well as how
good enterprise would compete with competitors in some of the circumstances. It is one of the
main factors that the general public was able to express their trust in the company. Management
really should be willing, as per corporate law and ethics, to make such choices that nobody
would like to pay for. It's really the duty of the upper authorities to evaluate anything about the
company before implementing most of the financial actions, but it was discovered that the
company was unable to explain what affects the spending the extra money. Ethics still claims the
Enron scandal needs to do with the salaries and compensation of its workers and they have not
yet addressed this specific aspect (Swanson and Frederick, 2016). It implies that the business had

infringed ethical requirements that would not enable participants their company for a prolonged
period of time. Furthermore, company law often addresses why the corporation can only take
certain actions that are beneficial to the business and also to these stakeholders related to the
enterprise. But, it was among the situations where the researcher had always sought to take
increased chance relative to the condition that was the key reason for some of its loss.
In Sabane-Oxley Act , 2002.
The compliance of the statute was really the debacle the Enron Corporation finds itself in. It
is important to realise that once they carry out their corporate operation, they ought to be
informed of how they would manage the entire scenario, however they were unable to do
corporate as Enron Corporation. The bill states the financial report has the main role to play, as it
usually directs the customer as to whether the corporation does better than its competitors not.
Investors were utterly ignorant of how the business operates under the present situation and rely
entirely on the financial statement issued by the staff member. Since the legislation started, the
function and duty of the administrator, the manager grew dramatically, but before everything in
this fiasco came through, it was discovered that the key mistake was done by the accountant and
investment advisor who gave the approval that the company could do well, but in fact the
enterprise was not really able to retain its position in the marketplace. The debt rose as opposed
to the company's income. The Sabane Oxley Act 2002 legislation is very useful in the present
situation, and this would require the manager and the firm's earnings staff to file each financial
report in an accurate and equitable manner. This legislation would also require the higher power
to verify each assertion correctly (Thompson, 2017). If this entire procedure is pursued, only
document can be put to the stockholder who often plays the organization's strategic role.
However there is an assistant director in the company that indicates he would be responsible if
any incident happens within the corporation. Moreover, implementing policy and legislation
alongside financial regulation often play a key role in meeting the priorities and objectives.
CONCLUSION
In end it is stated that reviewing the study itself, this can be readily inferred that corporate
law and ethics have an immense meaning within the company as it directs how organisations are
to routinely conduct their work. It is important that sufficient protocols should really be followed
if any of the contracts are formed and bid and approval along with approval should be available
for rendering some of the legal contracts. In the present situation, the Sabane-Oxley Act 2002 is

one of the most relevant laws since it is meant to direct how the company conducts its function
equally and while contemplating corporate governance.

REFERENCES
Books and Journals
REFERENCES
Books & Journals
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China and the world. Issues L. & Med., 34, p.115.
Cortez, N., 2018. The Evolving Law and Ethics of Digital Health. In Digital Health (pp. 249-
269). Springer, Cham.
Hall, M. A. and et. al, 2018. Health care law and ethics. Wolters Kluwer Law & Business.
Luetge, C., Armbrüster, T. and Müller, J., 2016. Order ethics: Bridging the gap between
contractarianism and business ethics. Journal of Business Ethics, 136(4), pp.687-697.
Madden, T. M., 2019. Law and Strategy and Ethics. Geo. J. Legal Ethics, 32, p.181.
Mayer, D., 2017. The law and ethics of CEO social activism. JL Bus. & Ethics, 23, p.21.
MCLAUGHLIN, J., 2018. LAW, BUSINESS & ETHICS.
McLean, S. ed., 2017. Medical law and ethics. Routledge.
NOBLE, T., 2019. JOURNAL OF LAW, BUSINESS & ETHICS.
Swanson, D. L. and Frederick, W. C., 2016. Denial and leadership in business ethics
education. Business ethics: New challenges for business schools and corporate leaders,
pp.222-240.
Thompson, D. B., 2017. Teaching the Business Law and Ethics of Arbitration After
Concepcion. Journal of Legal Studies Education, 34(1), pp.63-88.