Business Law: Legal System Evaluation, Impact Assessment & Solutions

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This report provides a comprehensive overview of the legal system in the context of business, focusing on the UK legal framework. It begins by explaining the sources of law and the role of government in law-making, including the application of statutory and common law. The report evaluates the effectiveness of the legal system, referencing recent reforms and developments. It illustrates the potential impact of company, employment, and contract law on businesses with specific examples, differentiating between regulations, legislation, and standards. Furthermore, the report suggests appropriate legal solutions for various business problems, such as contract termination, insolvency, and liquidation, assessing the positive and negative impacts of these solutions. Finally, it recommends legal solutions based on different legal systems, comparing their effectiveness and critically evaluating their use in comparison with alternative legal advice. The document is contributed by a student and is available on Desklib, a platform providing study tools for students.
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Business Law
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Contents
Introduction
.............................................................................................................................. 4
LO1 Explain the basic nature of the legal system
....................................................................5
P1 Explain different sources of law and laws that organizations must comply with
.............5
P2 Explain the role of government in law-making and how statutory and common law is

applied in the justice courts.
................................................................................................. 7
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and

developments.
...................................................................................................................... 9
LO2 Illustrate the potential impact of the law on a business.
.................................................10
P3 Using specific examples illustrate how company, employment and contract law has a

potential impact upon business.
......................................................................................... 10
M2 Differentiate and analyse the potential impacts of regulations, legislation and

standards.
........................................................................................................................... 12
D1 Provide a coherent and critical evaluation of the legal system and law, with evidence

drawn from a range of different relevant examples to support judgements.
......................13
Lo3. Suggest appropriate legal solutions to business problems.
...........................................14
P4 Suggest appropriate legal solutions for a range of business problems e.g. termination

of contract, rescue from insolvency and liquidation.
...........................................................14
P5 Provide justifications for the use of appropriate legal solutions.
...................................16
M3 Assess the positive and negative impacts of legal solutions to business problems.
....17
LO4 Recommend appropriate legal solutions based upon alternative legal advice provided.

...............................................................................................................................................
18
P6. Recommend legal solutions based upon a different country’s legal system and/or a

different legal framework.
................................................................................................... 18
M4 Compare and contrast the effectiveness of these recommendations.
.........................19
D2 Critically review and evaluate the use of appropriate legal solutions in comparison with

alternative legal advice.
......................................................................................................20
Conclusion
............................................................................................................................. 21
References
............................................................................................................................. 22
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Introduction
Business world is growing with rapid speed and therefore the government of the

country was facing the various issues and challenges due to this as various kinds of

issues were emerging on day to day basis and this was affecting the major

stakeholder group in the country. Therefore in order to deal with this situation

effectively the government tried to regulate the functioning of the company with the

various commercial and other connected laws. The laws that are majorly enacted to

focus on the business activities are discussed below and the system of courts and

other connected aspects are covered in this relation. The application of the law has

been explained by making clear case studies related to the hypothetical problems.

The alternative modes are also part of the coverage only since it is becoming the

new development in the legal system of the country.

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LO1 Explain the basic nature of the legal system
P1 Explain different sources of law and laws that organizations must comply

with

Legislature is known as the body that is created for law making only. The body is

constituted by the House of Lords and House of Common in which the

representative of the public are only elected and they represent the interest of the

public in indirect manner. The parliament makes the laws and along with this also

possess the authority to not to allow any other organ of the government and member

of the public to make question over the nature and functionality of laws that are

covered by the legislative enactment of the parliament. The member of these

houses enjoy the immunity to not to answer for their conduct to any court or tribunal,

they also have the authority to repres4ent their side in the manner in which they wish

to provided the same is within the set rules of the parliament, the media is also not

allowed to put question over the working of the parliament nor can there be judicial

review of any decision that is taken by the parliament under the power and

immunities that are enjoyed by it. Thus all these are features which are considered

the main reason of calling parliament as sovereign body in the country (
Llewellyn,
2017
).
The laws are found to be based on two types of sources. These are historical

sources in which custom of the traditional nature that are in practices from years is

made the law since the contrary practice to the same cannot be completed by the

parliament and therefore in order to have it regulatory it is given the status of law

only. Equity principles and jury system is also part of the traditional sources in which

the law of equity which was developed in the court of chancery used as standard or

regulation (
Besson and d'Aspremont, 2017).
In the modern sources there is legislative body which is sovereign and makes the

laws for each and every one equally. The parliamentary debate is the process by

which laws are made. Judiciary is also source of law in which the judges have right

to make the administrative action and below courts to them to work in accordance

with the set rule of law in the case before it in the form of “stare decisis” and “ration

decidendi”. The decision of the court is sometime used for making the new

enactment in the parliament as well. Apart from the domestic court the European

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Court also serve the source of law making in which United Kingdom is signatory to
the European Union and this union works for making the legal system of member

countries to be common and thus decision of the European Highest Court is used as

source of lawmaking n the member nations(
Heywood, 2015). The International
Court is also source 0f law in which the International Court of Justice or International

Labour Court makes the decision which are biding over the continues that presented

the case before the court. The laws which apply over business are made up of the

above sources only. The employment rights act, companies act, health and safety

act insurance act etc. are the product of the statutory nature.

The Judges of the court are also very important in law making like if the judges are

strict and very particular about the application of the law that is clearly stated then in

that cases there will be less use of the interpretation tools. If the judges are liberal

and require that justice be rendered to sufferer in that case they will allow the starch

of the application of law thorough interpretation rules. Thus in common law making it

is the judge who has great part to play in making law. The barristers and solicitors

also take part on making law and they are allowed to given the extensive

interpretation of the cases that are presented by them in court. They arte sometime

made the member of the drafting committee or they use the website platform for

suggesting the provision about the law that can be made in draft of bill (Bright

Knowledge, 2018).

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P2 Explain the role of government in law-making and how statutory and
common law is applied in the justice courts.

Role of government in Law Making:

The process of lawmaking lies in the hands of legislative Member of Parliament only.

No person other than these member can take into direct law making of the country.

First of all the issues and challenges occurs regularly in the country like poverty,

rape, violence, harassment etc. These issues are used in setting the government

agenda by political parties and they use these as source of getting the votes and

come in the ruling of the government. The party on getting the ruling of the

government present these issues in parliament for law making in the form of bill only.

The government first of all in order to allow the public participation publish the matter

on website where everyone is allowed to make comments and compliments in

relation to the issue of law. The comments and argument is source of drafting of the

bill sand drafting committee takes the same for determination of the various clauses

of the draft.

Once the draft is ready it is introduced in parliament and the parliament decides the

time of decision the bill and once the date of discussion is arrived it is taken for

detailed and elaborated discussion be member of the parliament who present their

side with the basis of their solid reasoning and arguments. The member are not

allows take part in the both houses and member of one house can only take part in

the discussion in which he is member (Carter, 2018).

Reading of bill is necessary before the actual decision over the same can be

restarted and therefore same is done and after that member of the house are asked

to present their sides and voting is also give a matter of right to decide the important

matter in relation to bill. The committee is also appointed by the parliament itself so

that it can examine the draft fully and can bake the constructive suggestion in

relation to the objectives of bill and the draft that has been prepared.

The report of the committee is also subject to arguments and agreements of

parliament member. If they by voting decided to agree for inserting the bill provisions

then only it will be inserted otherwise it will not be part of draft and the draft will be

passed in the provisional form only with the consent of the members of it. On

approval of bill it goes to get the Monarch approval and it become laws thereafter

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Application of Law- Statutory and Common:
The laws above made are subject matter of application by court only. The court

applies two kinds of laws i.e. statutory and common law. The court applies decided

precedent as source of law and also the laws that are made by parliament in

applying the same court uses the interpretation rules and impart the justice that is

required. In case of common law it is the power that is subject matter of deciding the

particular case law over the court. Thus Supreme court is highest court and decision

of it are law for all other courts of the co8untyry. The Court of appeal is below to

Supreme Court and therefore its decision is law for all courts other than Supreme

Court. High court makes law for the below courts or courts of primary law and works

subject to the decision of the Supreme Court and Court of Appeal. Thus it is the

court system that is leading in the law application (
Judiciary UK, 2018).
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M1. Evaluate the effectiveness of the legal system in terms of recent reforms
and developments.

The legal development is realised by the parliament of the United Kingdom and the

amendment are found to be done in the Companies Act and the simplifications have

been made in relation to governing the rights and duties of the stakeholders and

easy registration and winding up process of the company is allowed. The law

relating the protection of consumer rights is also amended and the Fair practices act

is removed in total. The legal aid process is one of the development in which

commissions is also and which examines the applications and petitions of the

applicant to take the legal aid from the cell. The laws are further amended under the

heads like equality in which “Equality Act 2010” applies over the ruling of equal

opportunity practices in the country (
MacCormick, et. al., 2016).
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LO2 Illustrate the potential impact of the law on a business.
P3 Using specific examples illustrate how company, employment and contract

law has a potential impact upon business.

First of all the JPM Publishers Ltd. for the incorporation of company is subjected to

the Companies Act 2006. Under the act the role that is required to be played by the

directors of the company is prescribed and they are directed fin relation to their role

and requirement that are to be fulfilled while performing their duties. The directors

are fist have to perform their work in the transparent manner and they have to be

accountable for whatever decision and activity they does in the position of they

directors. They must work for increasing the profits of the company and must protect

them self from indulging in the activities that are against the objectives of the

company. In total function of the directors they have to be sure about their

performance of the duty to serve to company only. Such a high responsibility is put

on the directors since they represent the company by their action and it cannot be

expected from them that they are negligent in performing what is entrusted to them

under the various sections of the applicable law of the country.

The other applications of the laws in relation to the business are discussed below:

1.
Health and Safety regulations:
The laws of health are applicable over the business since there are number of

person who is engaged by the company in the various kinds of work of company. In

some of the work there is the nature of work itself that is dangerous and therefore it

attracts the application of the health and safety laws over it. The safety laws of

Health and Safety Act 1974 and Factories Act and regulating regarding the safe

handling of the instruments and equipments of work etc. are there under which

various obligations are entrusted over employer on fulfilling which he can perform the

duty in relation to protection of health and safety. These pertains to the organisation

of training of employee in relation to making them understanding the safety ways f

working, the timing of work and breaks that are to be given in between work etc.

( Gov. UK., 2018).

2.
Equal Opportunities Regulations:
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Employees and workers are also right to get the chance of fair work in which they
are not asked to leave opportunities on the grounds that are of discriminatory nature.

The business also have the right to get the equal chances of growth and

development and thereby to enhance the profit making and reputation of the

company. Thus in order to have the safe harbour to the equality right there is a need

to give the protection and the same was addressed under the
Equality Right Act
2010
. The act allows the employees and person to get the chance to grow and
participate in each and every business activities that leads to their development. The

employees must not be subject to mal treatment and the cases of the same bring the

liability over the employer under the above stated act. The free environment of the

work is to be created for all the employees (Perren, et. al., 2012).

3.
General Data Protection Regulation (GDPR):
The general data protection regulation is the result of the growing violation of the

right of the individual who shares their information for various purposes with the

companies and organisation and the same is used by those companies for the

purposes which are not permitted by the information provider. The threat to personal

information misuse increased with the internet uses in the business sector. Thus the

act addresses the issue of misuse of information and provides the strong mechanism

which can be used for getting the consequent remedies. The information provide

under the above regulation is allowed to know each and every thing about the

information which the providers and in case the person is not finding the use of

information to be necessary he has right to deny the same. Thus the act allows the

complete security for the data being misused (MAPR, 2018).

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M2 Differentiate and analyse the potential impacts of regulations, legislation
and standards.

The regulations and standard bring the positive and negate e both things for the

companies. The negative challenges that are connected with the same are extra

expenditure over the compliance of applicable legal laws. The company have to

dilute its focus from the mere object of profit making to fulfilling legal companies as

well. There are cases in which company is trapped unnecessary by misusing the

power that us provided to stakeholders. The positive side of the standards, laws and

regulation is that company and the other stakeholder knows the law by which they

are being governed and thus they can make the corrective step in advance to not to

violate the laws and stay in legal limits only. The absolute right is not addressed

under the law and thus there are exemptions on which the claim for immunity from

legal action can be claimed. The better rights and remedies are addressed to both

the company and stakeholders in cases their right are being violated by others

(Carter, 2018).

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D1 Provide a coherent and critical evaluation of the legal system and law, with
evidence drawn from a range of different relevant examples to support

judgements.

From the discussion that have been carried out so far it has been found out that

courts are working for the better enforcement of the existing laws however they

manner of their functioning is not good since they are not adopting the practices that

are required to impart the justice. The judges of the court are also not found to be

interested in making use of the technology in imparting justice. The delay is caused

and burden of the court is also there due to which the cases are not decided properly

by giving the focus on each and every aspect of case. There is big gap in system of

court and the technological the people are using the technology to get everything

faster and the court is still on the traditional system and this is the reason of non

compatibility of the court in dealing the issues that are of contemporary nature. The

process of law making is also found to be so long and to amend a law as well there

is same process as laws are made. This is also affecting the justice system

adversely. However there division of the judiciary from other organs of government

and it ensures that there is impartiality in delivering judgment (Parliament. UK.,

2018).

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