Business Law: Legal System, Impact, and Solutions for Businesses

This business law assignment provides an analysis of the sources of laws and regulations that organizations must comply with in the UK. It discusses the role of the government in law-making, evaluating the effectiveness of recent reforms and developments in the legal system. The report investigates company law, employment law, and contract law, examining their influences on businesses. It identifies potential legal problems that businesses may encounter and suggests appropriate legal solutions, considering the pros and cons of each. The assignment also emphasizes the importance of businesses adhering to the legal framework designed by the nation, with a coherent evaluation of the legal system supported by relevant examples.

Business law
1

Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................6
Explain the basic nature of the legal system....................................................................................6
Task 2.............................................................................................................................................10
Illustrate the potential impact of the law on a business.................................................................10
Task 3.............................................................................................................................................15
Suggest appropriate legal solutions to business problems.............................................................15
Task 4.............................................................................................................................................20
Recommend appropriate legal solutions based upon alternative legal advice provided...............20
Conclusion.....................................................................................................................................24
References......................................................................................................................................25
2

Introduction
This assignment is having the analysis of sources of laws and the laws that should be followed
by the organization. After that, there is the discussion of the role of the government in making of
the law. The reforms that have taken place in-laws; their effectiveness is understood in this
assignment. After that, there is the analysis of the company law and the influences of the
company laws on the business that are running. Then there is the investigation of the different
legal problems that are there in business and how these problems can be solved is determined.
There can be the pros and cons of legal solutions on the problems of the business are discussed.
In each country, there is different legal system and the businesses have to follow that laws and
the framework that is designed by the nation for the businesses are evaluated in this assignment.
3

Task 1
Explain the basic nature of the legal system.
P1. Explain different sources of law and laws that organizations must comply with.
According to the English legal system of the United Kingdom law are formed by the Parliament
and Government of the country. There are various sources of law added by constitutions,
executives, judiciaries, legislatures, international organizations and administrative agencies. The
constitution is the fundamental law of the country, the country has its own legislatures and
federal legislatures are the source of law because it derives statutory law and statutes. Executive
orders and bills are passed by President of the country. Judiciaries are also known as courts,
which is the governmental body of more judges who solve the disputes (Kuhlmann, and
Wollmann, 2014).
Administrative agencies are a state, federal, and local levels of the government that includes
commissions, departments, and bureaus, services etc. The common law, case laws, precedents
case laws, European law are also considered as sources of law. Every business organizations of
the country have to follow the regulations and legislation of the enacted law. The general laws
are applicable on the organizations are contract law, employment law, corporation law, anti-
discrimination law, Equality laws, labor laws, occupational safety and health rules, workers
compensations law and many other (Partington, 2016).
4

P2. Explain the role of government in law-making and how the statutory and common law
is applied in the justice courts.
House of Commons (Members of Parliament) and House of Lords (appointed by the
government) plays an important role in lawmaking process of the United Kingdom. Parliament
legislature ha the supreme authority in the country, that examines and checks the functions of
government. Parliament approves the new laws and debate over it which is proposed by
Government. Both the houses together form the Parliament legislature. A bill becomes the Act
when it's wholly voting and support by both houses. House of Lords has the power to reject the
bill by parliament act of 1911 and 1949, but bill still becomes the law if rejected by lords
provided that it is reintroduced in the House of Lords (Haigh, 2015).
Common law: this is followed by many countries in the world combination of both common law
and statutory law is essential for the justice. This law frames new decisions which are made by
judges of the court. The operational level of the law is Procedural and this also known as case
law. The case laws are of two kinds first one is judgments become new laws when no statutes
and next one is judges interpret the previous law and forms new distinctions and boundaries
(Nelson, 2016).
Statutory laws: these laws are passed by several agencies of government. So the law is passed
by state and federal governments, ordinances formed by cities and towns having law power. New
laws are enacted to fulfill the demands of citizens, to format the previous law and to solve the
critical disputes (Craig, 2015).
5

M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments.
There have many changes in the laws and regulations of the country in the recent time period.
The government of the country made reforms in the Employment law, labor laws, corporation
laws etc. supreme court is established with the re[placement of house of lords. The formation of
many tribunal services, judicial services, the creation of many family courts etc. The judges, law
reform committee, criminal revision committee parliament, and government departments play an
important role in reforms and developments of new laws (Faúndez, 2016).
The certain key changes in law reform are, formation of judicial appointment commission,
creation of sentencing council, formation of ombudsman services, national crime agency, college
of policing, new court for solving the international commercial disputes, etc. many new Acts are
also framed by the Parliament that, cyber security,, information technology, equality act,
protection from harassment act, etc. the laws and compliances are very effective for every
business organizations of the country (Faúndez, 2016).
6

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 judgments.
The English legal system of the country is formed by parliament, legislature, judiciary, and
crown court. The common law, case laws, statutory laws are the basis of a legal system of the
country. The law divided into criminal and case laws. The system is divided into hierarchy level;
Supreme Court of the country is binding on all other lower courts. The landmark cases and
precedent cases also provide the fair judgment of many case laws. The House of Commons,
House of Lords, and the decision of queen is important (Lenk and Duttge, 2014)
7

Task 2
Illustrate the potential impact of the law on a business
P3. 1.
The given case is related to the formation of a company. Collin and David who are planning to
start a business of food catering. After some months of discussion, they decided to form the
company for handling the business. They are confused in deciding the name either, ‘F U Caters
ltd’ or ‘Food United Caters ltd’. According to the company law, constitutes of a memorandum of
Association, the name clause a state that, promoters are free to choose any name for the company
but have certain limitations. If the company is private or it is limited by shares then the last word
of its name added with “Private limited” or “limited”. The name chosen as per the opinion of
central government is undesirable or identical and resembles as the previous name of the
company which is existed and registered. So the name of the company must not be identical with
any previous name of the company. In this case, both the parties finalize the name which does
not resemble any other name of existing company. The parties have to follow the regulations of
name clause as per the Memorandum of the company and consider the limitations of name
clause.
8

P3. 2.
The present case is related to the Employment law, Sophia who is an employee at GST LTD. She
generally absents from the work around 30% of the time. This behavior is not liked by his
colleagues and complaints made to the line manage but she provides medical certificates all the
time. The company gives several warnings for his conduct many times and if such activity
continues then she will be dismissed from the employment. GST ltd consults the medical advisor
who said that she is fine and illness is not due to work. According to the employment rights Act,
unfair dismissal is that when employer dismissed the employee without any real facts and
reasons, there must have certain reasons which can rely on the dismissal of the employee. The
employment tribunal has right to consider that whether the dismissal is fair or unfair. In the
present case, Sophia was an employee of GST ltd who remains absent most of the time due to
fake illness. The medical advisor said that illness is not because of the work so her absence was
not fair. The company has right to dismiss her from the employment because her absence was
not genuine (Dau-Schmidt, et. al., 2016).
9

P3.3
In the present case, Mrs. Carter gave her car for the servicing to Local garage AD motors ltd.
The agreement made between both of the parties that Mrs. Carter will give 5% of the expenses
upfront and remaining 50% on the work completed. After two days when she received the car
from garage she suspected that parts used in the car were not original and brand new. The
company said that parts used by garage were branded which are less expensive than the original
parts of the car. Mrs. Carter ignored to make the reaming payment to the company. According to
the provisions of the Contract law, this is the binding agreement by the law. The rights and
obligations of both the parties may be enforced by courts. The court can compel the performance
of contracts by the parties and [provide the loss and damages for any breach of the contract. In
the present case, Mrs. Carter is liable to give the full amount to the AD motors ltd because the
parts used by the company were branded and less expensive than original. There was a breach of
contract done by Mrs. Carter and company is liable to receive the full claim. The company can
file suit against the Mrs. Carter for the breach of contract.
10

M2.
Differentiate and analyze the potential impacts of regulations, legislation, and standards.
As per the regulations of company law, there is a requirement to follow the incorporation
formalities of the company. Collin and David are restricted to consider all compliances and
limitations of the name clause before incorporation and formation of the name. The provisions of
the company law must have to comply within the formation and deciding the name for the
business of the company. The name must not resemble, identical and similar to the previous
name of any other company.
According to the standards of Employment rights, the employer is responsible towards the duties
and powers of the employees and members of the company. An employer cannot dismiss the
employee from the workplace without any real facts. The opportunity of being heard and notice
must be served to the employee before termination. If such conduct is taking place then it will be
called for unfair dismissal. In this case, the employee was not genuine towards his duties then the
employee has right to dismiss her from the employment (Painter and Holmes, 2015).
As per the legislation of contract law, the contract is an agreement made between the parties and
binding by the law. The obligations and rights under the contract law are binding and enforceable
by the courts. The court must compel the performance of parties and provide the loss and
damages on the breach of contract. So the company is liable to file the suit against the Mrs Carter
and receive the remaining amount.
11

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 judgments.
As per the English legal system of the country, every business organizations have to follow the
provisions of company law, employment law, and contract law. In both the cases, all the
regulations of the legal system and enacted acts are followed to solve the disputes. The common
law and case laws are also applicable are also considered. The House of Commons, House of
Lords and the decision of queen is important to finalize the matter. The decision of the court is
binding on all the parties.
12