Business Law: UK Legal Framework, Business Impact, and ADR Analysis

This report provides a comprehensive overview of business law, exploring various sources of law, including common law, equity law, and legislation, and examines the laws organizations must comply with, such as the Health and Safety at Work Act and the Data Protection Act. It delves into the role of the government in law-making, detailing the structure of the legislature and the stages of parliamentary law-making, along with how statutory and common law are applied in English and Welsh courts. The report critically evaluates the legal system, highlighting recent reforms like the Woolf reforms and specialized courts such as the Technology and Construction Court, while also analyzing the impact of company, employment, and contract law on businesses, using specific examples. Furthermore, it explores the potential impacts of regulations, legislation, and standards on businesses, and covers different types of business organizations, their legal formation, management, and funding. The report also discusses the legal implications of actions in terms of employment law, and the application of Alternative Dispute Resolution (ADR) and negligence claims, providing a thorough analysis of the legal landscape and its implications for businesses.

BUSINESS LAW

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
ACTIVITY 1...................................................................................................................................1
1) Explanation of different sources of law and laws that organisations must comply with. (P1)
.....................................................................................................................................................1
1b) Laws that organisations must comply with...........................................................................2
2) Explanation of the role of Government in law marking and how statutory and common law
is applied in the courts in England and wales. (P2).....................................................................3
3. critical evaluation of the legal system and its effectiveness in terms of recent reforms and
developments...............................................................................................................................5
4. Company, employment and contract law has a potential impact upon business, using
specific examples.........................................................................................................................6
5. analyse the potential impacts of regulations, legislation and standards on businesses and
organizations................................................................................................................................8
ACTIVITY 2...................................................................................................................................9
a) different types of business organizations are legally formed and how business organization
are managed and funded..............................................................................................................9
Sole trader:.................................................................................................................................9
It is one of the easiest company to form. In this there are no separate business entity in this
type of business. In this the business liabilities and assets are not separate from the personal
assets and liabilities.....................................................................................................................9
How sole trader are managed and funded. The small business such as sole traders are being
funded with the help of family, friends, bank loans. This is because these business have low
risk and also the amount of capital which is requires is small in nature (Harduth, 2017)...........9
B) legal implications of LCS action in terms of employment law............................................10
C. Alternative Dispute Resolution (ADR) and different types of ‘ADR’.................................11
D. Adam and Eve on their Negligence claims...........................................................................12
CONCLUSION..............................................................................................................................13
Bibliography..................................................................................................................................14

INTRODUCTION
Business law can be defined as that body of law which is been involved in defining aspects
of business. Present report will lay emphasis on the different sources of law. It will also lay focus
on laws which must be complied by organisations. It will provide details about critical evaluation
of the legal system and its effectiveness in terms of recent reforms and developments. Study will
highlight about statutory and common law is applied in the courts in England and wales.
ACTIVITY 1
1) Explanation of different sources of law and laws that organisations must comply with. (P1)
Sources of Law
Common law: The common law system is used in England and Wales. It is also known as
English law. This law is being created and developed by judges. It consists of civil as well as
criminal law. Each of these branch have their own procedures and courts. The common law can
be amended and repelled by parliament (Almond & Esbester, 2018).
Equity law: This type of law is being taken from the old English common law. This law
supresses the common law and statue law. The common and equity law cannot be merged. In this
the rules which exists are same.
Judicial Precedence: It is the decision given by court which can be used for future purpose in
decision making. This statement based on law can be found on superior body. Judges are being
engaged in making law by help of precedent.
Legislation (Acts of Parliaments): An act of parliament is also known as statue. It is being made
by the parliament of United Kingdom. The bills are first introduced in commons or Lords. The
bills are being approved by the loyal assents. Monarch approve it and then it becomes an act.
European Union laws: The union is being made upon rules of law. It has been analysed that
every action which is been taken by EU is searched in treaty. This should be approved
democratically by their members. EU laws assists in achieving goals of the treaties of EU and
also this can put policies of EU on practice.
International conventions: The united nations treaties are being explored by the United
Kingdom. In this the international covenant is been held for various economic, social and
cultural rights. It is also being related to removing all types of the racial discrimination (Singh, ,
2021.).
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Writers and authorities: Writers and authorities in United Kingdom are been involved in writing
the constitutional legal writing. UK do not have overall written constitution, but there are
guidelines which has been published. It can be changed by the rules of parliament.
1b) Laws that organisations must comply with.
Health and safety at work Act 1974: This law provides the details that every organisation needs
to be involved in implementing health and safety aspects for their workers. Under this act
adequate training must be provided to staff members, so that health and safety procedures are
being assessed and understood. This law also complies that safe working environment is being
maintained inside the organisation . (Bailey, , 2018. )
The Employment Act 2008: This act is being developed by the act of parliament. It basically
deals with UK labour law. It has been analysed that according to this act, it is really necessary
that minimum wage is been provided to every labour who is been working with them. The
workplace also needs to make use of proper dismissal agreement. No employee can be dismissed
without prior information.
Equality Act 2010: According to this act, equal opportunities must be provided to every
individual or group irrespective of their colour, religion, background, disability. This act makes
sure that no discrimination happens with any individual. This acts supports in removing
discrimination from the workplace. This act assists in making the work environment better.
Data protection Act 1998 & 2018: The data protection act 1998 was been updated by 2018 one.
In this the organisation needs to make sure that the data of their employees and their consumers
are kept confidential. They need to make sure that no information is been leaked. This assists
them in increasing trust of consumers as well as employees.
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2) Explanation of the role of Government in law marking and how statutory and common law is
applied in the courts in England and wales. (P2)
a) Four arms of the Government are:
 Monarch: The monarch is a person specially a queen, king or emperor which acts as a
head of state. The present monarch in England is queen Elizabeth II.
 Executive: It is that branch of government which is been provided with the
responsibility or authority to run the daily activities of pertaining the states.
 Judiciary: It is also one of the major arm of government of country. This is being
developed to protect the rights of their citizens. All the judges are being involved in
this which makes law for country’s
 Legislature/parliament: The parliament sovereignty provides details that United
Kingdom has absolute power. The power considered is also unlimited in nature
(Basedow, 2017)
a) the legislature is made up of two houses
 House of Common: It is the name that is being used for the elected lower house
of the parliament in United Kingdom. They have been provided with more
legislative power. It is generally above than the upper house of parliament. The
leader of the house of common is prime Minister. The different parliament also
has other house that is known as house of commons.
 House of Lords: The house of Lords is that house which is been considered as
upper house of the parliament. The membership in this house is basically been
appointed by the official function. In house of lords the independent speakers are
4. (Norton, 2020)
b) Stages of Parliament Law Making Process
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 decision to legislate: In this the government has legislative program where in each
session the parliament has to consider the bill.
 Bill preparation: In this stage the procedure to prepare the bill starts.
 Bill – when introduced: It is the stage where parliament introduced the bill.
 Parliamentary stages: Most of the bill begins in House of Lords or commons. They have
to pass through these stages.
 First reading: The bill needs to go with the stages of lords. There will be first reading,
second reading and also the last is committee stage. In this the line by line scrutiny is also
being done.
 Second reading: In this stage discussion related to main principle is been done.
 Committee stage: In this stage the details of the bills are being considered.
 Report stage: The bill passed is been recorded in this stage.
 Third reading: In this the general discussion related to bill is made.
 Later stages and house lords: In this stage if the bill is amended to second house, it must
be sent to first house.
 Royal assent: In this stage royal assent is been given (Russell & Gover, 2017).
c) How statutory and common law is applied in the courts in England and Wales.
the judiciary and state that the judiciary is made up of the court systems and officers
and ministry of justice
The United Kingdom is being engaged in dealing with the three separate legal system. The
parliamentary system deals with governance. The head of the state is being known as Monarch
and this is unelected. They are being selected from the birth. In this system the bills are being
passed on house of lords as well as commons. The house of common is known as upper house of
the parliament. It is also representative body in which the members are being elected. In the
house of Lords, it is not being elected and is also not considered as the representative body.
Civil law: It consists of contracts, family matters and negligence case. It is a branch in which
probate and land law is been taken.
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Criminal law: In this a person who have broken or have done crime against society is taken into
consideration (Blanco & Pontin, 2017).
Explain the hierarchy of courts under civil and Criminal law
Magistrate courts: It is a lower court in which the summary related to criminal courts are
taken into account.
Crown courts: The Crown court in England and Wales deals with the severe criminal crime.
It deals with rape, robbery murder.
1. roles of the police, Crown Prosecution Service: The main role of crown prosecution
services is that they help police in solving severe criminal cases by providing them
with necessary information related to cases (Duff, 2018)
3. critical evaluation of the legal system and its effectiveness in terms of recent reforms and
developments
The Woolf reforms: The Woolf reforms are being implemented to lower down the time
which is being spent by courts on cases.
Reasons for the reform which are to provide the public with a justice system that
 just: In this the structure the relationship between state and country is been analysed
and evaluated.
 proportionate: The legal system made is based upon principles of fairness and
justice. They are being based on severity of crime.
 accessible: The legal system must need to be accessible to every citizen. There rights
must be accessible.
3. Explain the following reforms:-
A. Technology and construction court: These courts are being made for engineers, architects,
constructors for providing them with better judgments and solving their case on same.
B. Mercantile court: These type of court is being provided to solve commercial as well as
business disputes.
C. Admiralty: It is the maritime law which resolves the nautical issues, and also deal with
maritime disputes (Wollmann, 2019)
D. Alternative dispute resolution (ADR): ADR is a process which is being used for solving
and settling down the disputes. In this the disputes are being resolved by various parties
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without being included in any type of trial.
4.Administrative law court
- family court: These court deals with family and their matters. They make decision
about children and their finances.
- youth court: In this court, the decision related to children between 10-17 takes place.
4. Company, employment and contract law has a potential impact upon business, using
specific examples.
• Define company law and formation of accompany: This law works under company
act 2006. This law provides details about the limited liability of their members (Bachar &
Hensler, 2017).
• Status of company in law – Salomon vs Salomon case: Salomon v A Salomon &
Co Ltd [1896] UKHL 1, [1897] AC 22. According to this case law the insolvent company
creditors cannot sue their shareholders.
• Characteristics of company: There are various characteristic of company such as
Transferability of shares, Legal personality, perpetual existence, Limited liability.
• Types of company
o private: These are the type of company where the shares are not being offered for
sale (Bachar & Hensler, 2017).
o public: In this type of company, the shares are being hold up by the public (Howard,
2017).
Employment law
 employment law: This act is being taken as a part of United Kingdom labour law.
This act covers whole England and Wales. In this the minimum wage must be
provided to every worker.
 Distinguishing Employee from Self – Employed: Employees are the people who
works under someone else on the other hand self-employed are those who do not
work for any specific employer.
 Control test – Walker v Crystal palace FC 1910. This case law has given the detail
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that professional footballer acts as an employed person as they work under control of
football club.
 Integration test – Cassidy v Ministry of Health 1951. Under this case law the
protection was been given to people related to employment rights. In this case law
ministry of health as an employer was been sued as one hospital performed the
operation negligently (Scott-Patel, 2019)
 Multiple test -Ready Mixed Concrete (South East) Ltd v Minister of Pensions and
National Insurance1968. In this case law, the driver worked for one company only
and maintained his own vehicle for delivery. He has signed the contract agreement.
The court wanted that employer must pay their taxes on behalf of employee.
 Mutuality obligation Test- O’Kelly v Trust House Forte Plc 1983: It is a case related
to UK labour law. In this there will exist mutual obligations between the parties. If the
contract lacks mutuality, it means that people cannot be taken as employees.
 Illustrate how employment law has a potential impact upon business.
The contract and employment law has potential impact on working aspects of business. It
affects the employer and employee relationship. It has been analysed that according to
this act, it is really necessary that minimum wage is been provided to every labour who is
been working with them.
Contract law
• Define Contract law: According to contract law, the parties are being legally binding
with each other and maintains the principle of contract.
• Explain Essential Elements of valid contract: There are various elements which needs
to be maintained in contract like offer, acceptance, consideration, awareness, legality (Abbasi
& Parsa, 2019).
 Offer – Carlill vs Carbolic smoke ball -1983. In this the company has made an
advertisement based on a claim where they will reward a person after consuming smoke ball.
The person still catches the flue and implemented a case against company. This was a case of
unilateral contract (Austen-Baker, 2017).
 Acceptance – Adams vs Lindell- 1818: In this the postal rules come into
consideration. The case law was related to acceptance of an offer. Because of this case postal
acceptance rule come into force (Lawani, et al., 2017).
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 Consideration: It is a benefit which is been taken by both the parties.
 Intention to create legal relations: In this a legally binding agreement or contract is
being created for making legal relations.
• Illustrate how contract law has a potential impact upon business.
In business the contract is really essential as it outlines the needs and expectations of both the
parties which is really necessary. It has also been analysed that business relationships are
being formalized through different type of contract (Carnevale, et al., 2019)
5. analyse the potential impacts of regulations, legislation and standards on businesses and
organizations.
- Legislations – It can be defined as the action used in making laws. The impact of
various legislations such as equality act, health and safety act, on business is really
high and effective. In this the organizations and business are being involved in
making use of health and safety act where they make sure that workers do not work
in hazardous working conditions.
- Regulations – It is the rule made by the parliament. regulations such as data
protection also have potential impact on the performance of business.
- Standards – It is a documented way of doing certain things. All companies have
defined standards which they need to follow (Blind, et al., 2017).
ACTIVITY 2
a) different types of business organizations are legally formed and how business organization
are managed and funded
8

Sole trader:
It is one of the easiest company to form. In this there are no separate business entity in this
type of business. In this the business liabilities and assets are not separate from the personal
assets and liabilities.
Advantages and disadvantages: The sole trader can be a good choice of business if the
business which is been updated is of low risk. The disadvantage is that risk has to bear by one
single person
How sole trader are managed and funded. The small business such as sole traders are being
funded with the help of family, friends, bank loans. This is because these business have low
risk and also the amount of capital which is requires is small in nature (Harduth, 2017).
Company (P4)
Definition of company: The company separates themselves form their shareholders and has
totally independent life. It also has benefits while raising the funds, as they raise the fund
through sale of stock.
Advantages and disadvantages: The advantage is It also has benefits while raising the funds,
as they raise the fund through sale of stock. The disadvantage is loss can be huge
How Companies are managed and funded. (P5)
The main sources of funding include debt capital, equity capital, venture capitalist,
government. All these sources can be used for forming the legal entity. Business can also
raise the fund by getting the borrowing directly from banks
Legal advice – The company must be formed as the profit is huge in it ( (Austen-Baker,
2017)). (P6)
.
B) legal implications of LCS action in terms of employment law
LCS is a limited liability company, who has provided job to Jackson by saying that he is
the bread of family, so this position is better suitable for him.
Discrimination equality Act 2010 [gender and sex]: The company can face legal issues based on
employment law. In this the employers are provided with certain legal rights which needs to be
followed by LCS (Carnevale, et al., 2019). In this the employees and staff members are being
provided protection against discrimination. Company has to ensure that equality exists at all the
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level. They cannot discriminate on basis of gender, age, religion, disability. In this case indirect
discrimination has happened with wife of Jackson. Indirect discrimination is that where the
employer adopts certain criteria or practise. An employer can be held liable for the
discrimination which has been done by them.
Environmental Protection Act 1990: This act is being related to handling of waste. The industries
are being guided to lower down the amount of pollution which has been created by them. They
make sure that sustainability is been created and also resources are being utilised by them
effectively.
Redundancy: In LCS an employer can avoid the liability when they have taken reasonable steps
for avoiding the discrimination. This has to be done as the employee can bring the case of
discrimination in front of tribunal.
Suggest appropriate legal solutions for each case.
In LCS an employer can avoid the liability when they have taken reasonable steps for
avoiding the discrimination. This has to be done as the employee can bring the case of
discrimination in front of tribunal (Blind, et al., 2017). The claims can be settled before by the
employer before they have been initiated. Employer can also revise the selection process by
providing equal opportunities to both husband as well as wife. It has also been analysed that
adequate policies related to hiring of workers must be maintained by employer, so that no legal
issues can be faced by them. The policies must be made by making use of the employment law.
Provide justifications for the use of appropriate legal solutions to the above cases.
It has been analysed that LCS can be held responsible for discriminating on basis of
gender. They have provided the statement that Jackson is bread of family and only he is suitable
for this position. The employer can be held legally liable for this type of process. This is because
according to employment law no discrimination must be made on basis of gender, age, income,
ace etc. For this company can be engaged in settling down the claims before they are being
initiated. The claims can be conciliated by the ACAS (Mourby & and et.al, 2019).This will assist
the firm in saving themselves from the claim of discrimination.
Assess the positive and negative impacts of legal solutions to the above business problems.
There are various positive and negative impact of the legal solution which has been
implemented to save LCS from claim of discrimination. In this they can be engaged in doing re-
hiring and providing equal opportunities to both husband and wife. This will assist the company
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