Business Law Report: Legal Compliance, Contracts, and Expansion

This report provides a comprehensive overview of business law, starting with an introduction to legal concepts and the importance of compliance. It delves into different sources of law, including common law, equity law, and legislation, and outlines key laws that organizations must adhere to, such as the Equality Act, Data Protection Act, and Employment Rights Act. The report also examines the role of the government in lawmaking, detailing the process from proposal to enactment, and the functions of judges in statutory interpretation. Furthermore, it illustrates the potential impact of various acts on businesses, provides legal solutions for contract termination, and identifies legal issues and solutions related to business expansion. The report concludes with a detailed analysis of legal requirements and their implications for businesses.

BUSINESS LAW
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Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of law and laws an organization must comply with...................................1
P2 Role of government in Law making.......................................................................................4
TASK 2............................................................................................................................................6
P3 Illustrate how different acts have a potential impact on business..........................................6
TASK 3............................................................................................................................................8
P4 Legal solutions to Sunset Ltd for termination of contract......................................................8
P5 Justification of use of appropriate legal solution..................................................................10
TASK 4..........................................................................................................................................11
P6 Identify the legal issues and legal solutions in case of business expansion.........................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
INTRODUCTION
In today’s modern era, it is rendered necessary to comply with legal terms and concepts.
Law is a term which can be defined as a concept in which there are different rules and
regulations framed and enforced though an effective mechanism of governmental and social
institution for the purpose of regulation of behavior (Abdi and Aulakh, 2012). Through an
effective implementation of laws and legislation, respect towards each other can be enhanced
among different communities. This report will be discussing about different and varied forms of
laws and guidelines framed for perspective of advising a newly set up organization in respect of
different aspect of rules which should be complied by them. In addition to this, in this report role
of government in terms of formulation and implementation of law in justice courts will also be
demonstrated. Furthermore, this assignment will depict diversified range of compliance that
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should be adopted by companies at the time of incorporation. Also, memorandum and articles of
association will be given effect.
TASK 1
P1 Different sources of law and laws an organization must comply with
Law and legal system is a term which involves a procedure for interpretation and
enforcement of law. It explains all responsibilities and rights in different legal manner or ways.
There are three major sources of law which can be bifurcated as civil law, common law, and
religious law and legislation (Allen and Kraakman, 2016). Legal legislation of a particular
industry includes an oral and written constitution and primary legislations enacted by legislative
body under the constitution.
There are different sources of laws that should be complied with. These can be
demonstrated as:
 Common law: It is the law which is formed by courts, judges and similar tribunals. It is
a term which arises as precedents. It is a lawful system which renders an effective and
efficient weight and importance to common legal jurisprudence (Business Law, 2017).
 Equity law: This law describes an importance of equity which should be implemented in
premises of an organization (Appleman, Appleman and Holmes, 2015). In other words,
it consists of laws and legislations which are framed with a view point to provide equal
opportunities to all employees of a business entity.
 Judicial precedents or case laws: This is another form which is based on the previous
decisions made by judges of courts.
 Legislations: It is the most common source of law which comprises of lawful rules and
regulations given by a competent legal authority. It is authorised to regulate, prescribe
and providing funds along with to grant or to declare anything.
 European law: It is a system or mechanism which is operating only in a member states
of European Union.
Management of Organisations should comply with all the rules and legislations that has
been framed by legal and judicial authorities (Bagley, 2010). In addition to this, it is a
notable fact there are certain areas of laws which should be complied or adhered by every
business enterprise. These laws can be precisely described as follows:
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Key legislation relating to Recruitment and Selection
The Equality Act, 2010 The Immigration Act, 2006 The Data Protection Act, 1998
It is a legislation which has
been formed under an Act of
Parliament of UK.
It is an Act which has been
formulated by the Parliament
of UK.
This act is based on Act of
parliament of UK.
The main objective of the cited
act is to arrange the complex
issues and array of Regulations
and Acts.
The major aim of
implementation of this act is to
provide legislation regarding
immigration and asylum
(Business Law, 2017).
The prime objective of this Act
is to prevents data of
employees and employers.
This act should be applied in
an organization so as to
enhance and build up equality
among all its employees in
respect of payment,
opportunities etc.
This act should be implied by
a business corporation so as to
protect and prevent data and
other information which is
related to employees. Also,
personal data should be fairly
processed.
Key regulations framed in regard to Employment
Employment rights Act, 1996 The National minimum Wage Act,1998
This act has been framed under an
authorisation of parliament of UK.
It is an act which came into force under an act
of Parliament in UK.
This act has been formulated with a view to
protect rights of employees in the premises of
an organization. Also, it highlights to codify
the laws which are existing relating to
individual rights.
This act in UK has been formulated with an
aim to provide a minimum wages to all
employees for which they are entitled for.
The managers and leaders of a particular
organization should identify and develop needs
Furthermore, this act is applicable on workers
who are entered a contract to perform work
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of protection of human rights in a premises of a
business institution (Bebchuk and Jackson,
2011). It creates an awareness among
employees and workers of a workplace,
regarding to their rights.
related activities other than customer and
client.
Case law of “Annabel's (Berkeley Square) Ltd
v Revenue and Customs Comrs” decided that
there should be an abolition of exception of the
tips.
Key legislations regarding Health and Safety
Health and Safety at Work Act, 1974: It is an act which is enacted and formulated with a
basic objective to ensure Health and Safety of employees in a work area of a business
organization. In addition to this, it depicts the central and fundamental structure and ability for
the purpose to encourage, regulate and enforcement of health and safety measures in premises of
an organization (Bishara and Westermann‐Behaylo, 2012). The management of the company
should apply this practice in their respective business organization so that employees can feel
safe while working in the company.
Key legislation in aspect of Consumer rights
Consumer Rights Act 2015: It is considered as an important act of parliament of UK, that
consolidates existing consumer protection law. It also renders wide range of rights and remedies.
This act was framed with a view to enforce security of the legal and other rights of the
employees and workers of a business entity.
Key laws which need to be complied by all companies
Companies Act, 2006: It is the prime act, which depicts regarding different aspects and
concepts regarding Companies and corporations. It can also be considered as a primary and main
source of company law in UK (Cantwell, Dunning and Lundan, 2010). In this act, various ideas
and concepts related to directors’ duties, takeover of other companies, registration and
incorporation of companies.
P2 Role of government in Law making
Government of a country plays an important role in formation of laws and regulations for
effective operations of country. It can be further stated that there are various areas in which only
government can form and make rules and regulations. Parliament of UK performs various
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functions like to represent interest of citizens, passing and enactment laws and legislations. It
also regulates the activities of government (Colpan and Hikino, 2010). Government is liable to
develop drafts of different laws and main function of government is to evaluate, amend and pass
that drafts of laws.
Green paper is a report or a document of policy and proposals made by government. It
results in an evolution of white paper. It can also be considered as grey literature. Various steps
that are involved in formation of laws are as:
 Cabinet must agree regarding which proposals need to be taken further for the purpose of
formation of bills.
 Then, proposals are formed as bills.
 After this, the next step is to scrutinisation of bills.
 The stages of parliament can be classified as;
 First reading: It is the first stage in which bill is made introduced to legislature. It can be
further stated that first stage of bill is passed through house of commons (DiMatteo,
2010). It occurs without any debate. Also, first reading of a bill can be happened at any
time in a session of parliament. In first reading, the bill is gone through and followed by
an order to be printed.
 Second reading: It comes after a process of First reading. In this concept first opportunity
for MPs to debate the general principles and themes pertaining to bill.
 Committee stage: In this stage, consideration over bill is taken. Also, various
amendments are done by the committee.
 Report stage: It refers to an opportunity given in which each clause or section of bill or
document proposed to be amended. In this stage, the house considers the clauses which
are to be amended.
 Third reading: It is considered as a stage in which further amendments can be made by a
team of committee (Ellison and Boyd, 2013).
 Furthermore, in next phase of said procedure, it can be said that bill approved by one
chamber is made into consideration by another one.
 Then, in next step, the bill is converted into an act, by royal assent of all members of
parliament.
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There are different sources of laws which are important for an effective law making in
justice courts. Judges are the persons who are held responsible for an effective court proceeding.
A judge supervises over proceedings of court either unaccompanied or as a portion of a board or
group. It can also be said that an effective judge has its rights, powers and functions different in
different wide areas.
Judges are entitled to perform the following tasks:
Statutory interpretation: It is a procedure through which courts of a particular country
interpret and imply legislation. It is a notable fact that some kind of interpretation is rendered as
vital in a case if it involves a statute. Also, sometimes there can be a situation in which words or
phrases of a statute do not have a clear and straightforward meaning (Grundfest, 2010). In other
words, it can be said that statutory interpretation implies the way in which the legislation should
be applicable in a particular way. It needs a statutory construction. In addition to this, a statutory
interpretation refers to a process in which a particular court goes through the statute and
interprets its correct meaning in a general language. There are different aids which are used by
judges to interpret an Act or Statute:
The legislation: It is a statuary law which has been enacted or interpreted by a legislature or any
other authorised legal association. This is considered as an aid or method through which judges
can deduce an act or a said statute.
Judicial precedents: It can be referred as a judgement made by court of law that has been
authorised to do so, for a purpose of determining similar set of facts and figures are known as
judicial precedents. It is a source of further decision making by judges of aa particular court.
There are different rules which are framed for the purpose of interpretation:
 Literal rule: It is considered by judges, as a first rule of interpretation (Hanrahan,
Ramsay and Stapledon, 2013). In this regulation, the arguments of statute are converted
into its ordinary and general meaning which enable a reader to understand the meaning of
it.
 Golden rule: It is another rule of interpretation which is a form of constitutional
construction. Through application of this rule, judges are allowed to deviate from a
normal meaning of a word in order to evade an illogical result.
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TASK 2
P3 Illustrate how different acts have a potential impact on business
In order to conduct business operations in an effective and legal manner, it is required by
business organization to comply with various lawful legislations and laws, that has been framed
in this aspect (Hirsch, 2011). In this facet, Sunrise Retails which is said to be an established sole
trader, wishes to expand its area of operations and also desirous to be registered as a private
limited company. For the said purpose, cited organization must comply with following
regulations:
 Potential impact of Company law:
In company law, there are different requirements stated which should be complied to
conduct its operations in a legal manner. These are:
 Registration of company:
 Memorandum of association: It is a fundamental document which defines a constitution
of a company. Also, it consists of all essential requirements and central conditions of a
business organization within which it is permitted to work. It should be filed with ROC
during the process of incorporation. So, in this regard, Sunrise Retailers should frame
their MOA, which will be able to define its legislation.
 Articles of Association: It is a document, which defines all the internal procedures of a
company. Also, it defines the tasks and responsibilities of directors, type of business
which is to be undertaken and other aspects (Hovenkamp, 2010). In order to enable
conversion of sole proprietorship to private limited company, said firm should make their
AOA to conduct internal proceedings of its company.
 Name of company: There are certain rules which should be complied with certain rules
which can be specified as:
 The name proposed should be similar or like kind with name of another corporation.
 Name of company should end with Limited or Public limited company.
 The name should be mentioned in each and every type of legal documents, place of
business etc.
 Consequences of Incorporation: There are certain implications which occurs while
incorporation of business organization, which are:
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After incorporation, the company becomes a separate legal entity, which can sue in its own
name and is a legal competent person (King and Raja, 2013). So, cited firm will be a separate
legal entity after being incorporated.
 The company is not bound by incorporation contacts entered into by promoters.
 The number of members isincreased.
 The company owns its own property.
 Statutory books: Statutory books are important part of a company. These are books and
records which should be kept at Registered office of the company. Every company is
required to maintain some records explained as:
 Registrar of Members.
 Registrar of directors.
 Registrar of Secretaries.
 Minute books.
 Annual records.
 Potential impact of Employment law:
For an objective of effective regulation of all activities related to employment, it can be
stated that management should comply with different employment laws so that rights of
employees can be protected. Sunrise retailers should comply with following legislatures:
The Equality Act, 2010: It is an act which is framed by an act of parliament in UK. This act is
framed with a view to ensure equality among all employees in aspects of pay, discrimination etc.
(Latimer, 2012). The management of Sunrise retailers after being incorporated as Private
company should not discriminate its employees on the basis of caste, race, wages etc.
 The Employment rights act, 1996: This is an act which defines the rights of employers
and employees in a premises of an organization. It depicts regarding all the rights that
need to be mentioned and rendered to an employee with a document of contract.
 Potential impact of Contract law:
 The essential elements of a Contract: It demonstrates the need of adherence with
all necessary and vital elements of contract by Sunrise retails when they form any
contract with any other party. In other words, if all essential components of a legal
agreements are followed and compiled with, then it will be a valid contract. So, the cited
firm should make sure that parties must be competent to enter into contract . in addition
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to this, a valid offer and acceptance should also be present there in such
agreement..While formation of contract, Sunrise Retailers should include all essential and
vital clauses like warranty, exclusion clause so that terms and conditions in between all
persons to contract must be clear. Also, it avoids any sort of ambiguity (Letsou, 2010).
Moreover, if court is of opinion that conditions and clauses are not reasonable, then it
will be treated as void.
TASK 3
P4 Legal solutions to Sunset Ltd for termination of contract
In given case scenario, regarding the termination of contract of employer various appropriate
legal solution has been provided to resolve their issues (Weber, 2010). The following are some
different ways of dismissal which have to be considered by the firm:Fair dismissal – The
dismissal of employee shall be deemed to have regard with all circumstances which canm be
treated as substantial grounds forjustifying dismissal. There are specific grounds which have to
be proved by employees such as; redundancy of employees, capability, competence or
qualification of employee (Mann and Roberts, 2011).
Unfair dismissal – As per section 6(2) of 1977 act, it provides nine grounds if dismissal take
place either wholly or mainly then it will be deemed as unfair. These are; age of employees,
membership or activities of trade union, unfair selection of employees for redundancy and many
more.
Constructive dismissal – It occurs when employee resigns because of their employment breach
has been breached =under employment contract; for example, unlawfully demoting them,
increasing workload and many more issues.
Wrongful dismissal – It occurs when contractual term has been broken at the time of dismissal
process (Snyder and Deaux, 2012). For example, dismissing someone without giving any proper
notice to them. As per given scenario, fair dismissal redundancy is suitable because organisation
cannot terminate any employee without any specific condition.
Redundancy is the form of dismissal, which occurs when employee’s job is no longer
exits. If any employees in business establishment is made redundant, then they mightbe eligible
for specific and certain rights such as; redundancy pay, time off to look for work and many more.
There are some key points which are included in redundancy such as;
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 Employees are having right not to be fairly selected for redundancy.
 They may be entitling for a statutory redundancy notice and payment.
 Redundancies can be mandatory or voluntary for the organisation.
For Sunset company, following are appropriate legal solution which have been made for
redundant.Minimum consultation period before dismissal – There has not been set any time
period of consultation. But the minimum period is 20 to 99 redundancies. The consultation
period must be start at least 30 days before any dismissal is taking effect. 100 or more
redundancies, consultation period must be start from at least 45 days before any dismissal take
effect.
Notice pay and Pay in lieu of notice – In employment law, pay in lieu of notice mean that, the
payment has been made to employees by employer for the notice period in which they will not
work (Smith, Lawson and Painter, 2012). Along with this, the employees are having right to
receive benefits which have been accrued during notice period.
Redundancy pay- it refers to an amount which is given to its employee by its employer. It is
provided in the case when employee is redundant from its occupation. In other words, it is the
money which is paid by owner to its labour in case of loss of job.
P5 Justification of use of appropriate legal solutions
With reference to the given case scenario, the Sunset Ltd was desirous to close the branch
situated in Whitechapel, which leads to an immediate termination of employees. The company
has decided to provide various legal solutions in aspect of immediate repulsion of employees. It
is necessary to provide them a minimum consultation period before their cessation of
employment as, it will not hinder their rights as laid down under Employment act (Siedel and
Haapio, 2010). Also, a standard notice period should also be given to them before their dismissal
as they will get time to manage their work or seek another employment opportunity. In addition
to this, payment in respect of serving a decided notice period should also be provided. Moreover,
redundancy pay is an amount which is given by an employer to its employee in respect of his
redundancy. It is calculated in accordance with the basis of rate of employment or length of
service.
These legal solutions are provided by management of cited company in accordance with
following Acts:
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 The Trade Union and Labour Relations Act 1992: It’s an act which is formed for a
purpose to define trade unions and also conveys that they are subjected to legal rights and
duties of employees and workers. Also, rights of workers and labours are also protected..
It also helps in getting involved in collective bargaining. So, in reference to this, the
Sunset Ltd has adopted various legal solutions in respect of such said act.
 The Collective Redundancies and Transfer of Undertakings (Protection of
Employment) Regulations 1995: It’s an act which is designed with a view to provide a
legal frame work and regulations for collective redundancies and transfer of undertaking.
It also constitutes the fact that if any employer fails to adhere with any of requirements as
specified under Section 188, then complaint can be filed against him by victim employee.
 The Agency Workers Regulations 2010: This act or legislation is being framed in an
aspect of reducing or protesting against discrimination of labour or employee that are
working in a premises of an organization. It also conveys that workers should not be
treated impartially while allotting the pay and wages. It is applicable throughout UK.
The Unfair Dismissal and Statement of Reasons for Dismissal (Variation of Qualifying
Period) Order 2012: This act has been enacted with a perspective of regulating various
provisions regarding dismissal of employees which is unfair in nature. It requires that reasons for
dismissal should be specified to employee who gets terminatedThe Collective Redundancies
(Amendment) Regulations 2006: This act came into force on October 01, 2006. It consists of
amendment in Section 193 of the Trade Union and Labour Relations Consolidation Act 1992[3].
The changes depict that notice should be given to an employee before his dismissal from
company (Shum and Yam, 2011).An employee has various rights in respect of not receiving his
redundancy payment from employer. It can be said that employees or labour can file a complaint
against his employer, as latter has not complied with the regulations. Also, he can ask in writing
regarding the reasons due to which the payment was not released.
TASK 4
P6 Identify the legal issues and legal solutions in case of business expansion
Business expansion is one of aim and objectives of every company. Business development
and expansion outside the area of nation is called as international expansion of business. There
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