Business Law Report: Legal Systems, Regulations, and Business Problems

This report provides a comprehensive overview of business law, focusing on the English legal system. It examines various sources of law, including common law, equity, and legislation, and explores the role of the government in making and applying laws. The report further delves into specific areas of business law, such as contract law, company law, and employment law, analyzing their impact and implications. It presents case scenarios to illustrate legal principles and potential solutions to business problems. Additionally, the report discusses alternative dispute resolution processes and evaluates the effectiveness of legal solutions, offering a critical assessment of the legal system and its practical applications. The report is well-structured with an introduction, detailed tasks, and a conclusion that summarizes the key findings and arguments.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of law which are complying under English legal system..........................1
P2 Role of government in making laws and its applicability......................................................2
M1 Effectiveness of legal system................................................................................................3
TASK 2............................................................................................................................................4
P3 Contract, Company and employment law..............................................................................4
M2 Impact of these regulations...................................................................................................5
D1 Critical evaluation of legal system.........................................................................................5
TASK 3............................................................................................................................................5
P4 Legal solution for business problems.....................................................................................5
P5 Justification of legal solutions................................................................................................7
M3 Positive and negative impact.................................................................................................7
TASK 4............................................................................................................................................7
P6 Alternative Dispute Resolution process and legal solution....................................................7
M4 Effectiveness of recommendation.........................................................................................8
D2 Evaluating legal solutions......................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Nowadays, people are aware about many rules and regulations which are framed by
government in order to protect their rights. “Law” means where it is associated with many rules
which is framed and governed by the parliament. In sort law means “rules which are imposed by
courts”. These law are establishing with some rules and regulations that should be followed by
every business entity (Deakin and Morris, 2012). Law is divided into may parts which helps of
citizen to protect their rights from any illegal activity i.e. substantive and procedural. It also
includes federal, state as well as administrative regulations. In present assignment, different
sources of law in accordance with English Law system has been explained. Further, for
providing legal appropriate solutions some case laws are discussed. Moreover, government is
also playing important role in making these regulations so their part is explained. In last,
alternative dispute resolution term is discussed along with its advantages.
TASK 1
P1 Different sources of law which are complying under English legal system
Law affects many lives, as it governs with many regulations which influence their life.
Society have developed complex body of rules in order to control the activities which are
performing by managers. There are many laws which is governing working conditions (example,
health and safety, minimum wages act etc.), regulating leisure pursuits and control personal
relationships. So law is different from each other. In order to understand and legal implication of
law in business activities, it is necessary to examine basic features of English legal system.
Sources of law
Common law and equity – These rules are classified according to whether to form any
part of equity or common law. In this remedies are available to person. These can be classified
into two parts i.e. criminal and civil. Criminal law is concerned with serious offence against state
or person. In this, decision is done according to if defendant may convict (found guilty) and
acquitted (innocent). Some of the example are; theft, murder, driving with excess alcohol and
many more (Clauwaert and Schömann, 2012). But in civil case, these are deals with obligation
and private rights which has been arises between individuals. The remedy is available to those
people who have suffered from losses. In this, defendant may be or may not be found liable to
pay remedy to other person. Some example is; property law, tort, contract.
1

Equity is not complete without law. So equitable principles are formulated to provide
specific remedy to innocent person. These were designed to complement with common rules but
not to replace them. Equity is recognising new rights and providing remedies which are
enforceable. This means that discretionary remedies are available.
Legislation law - These are law which are promulgated by legislature or any other
governing body. Before legislation become law, it is known as bill. This can have many
purposes; to sanction, declare, provide or authorise. Two type of legislation are there i.e. primary
and secondary (Colvin, 2011). Primary consists with act of parliament which is also known as
statues. On other side, in secondary, powers are delegated to local bodies or authorities so that
they can make some specific regulation for the benefit of citizens.
EU legislation – In 1973, UK become the member of European union and they accept all
the rules and regulations of EU which are implemented throughout the country. If any disputes
have been arising between English law and European Union, then EU will always conquer.
English legal system
The court is divided into two parts i.e. criminal and civil. In civil, county, high and court
of appeal civil division are included. In high court, application is coming from county court.
Here cases related with recovery of debt amount, consumer protection or any personal injury is
there.
In case of criminal court; magistrate, crown and court of appeal criminal division are
involved here. Here the case which are of serious in nature or anyone has committed serious
offence such as; theft, murder and many more.
Supreme court is the highest court in the country who deals with all cases which are not
resolving by lower session of court.
There are many laws which has to be implemented by each and every organisation in
order to sustain in market for a long period of time. Such as; Equality Act 2010, Pension Act
2008, Minimum Wages act and many more.
P2 Role of government in making laws and its applicability
In formation of any law and in their applicability government is playing vital role. When
laws are making by parliament it generally contains slow process because it involves huge
number of stages. Before, finalising any law, it must be signed by officer of parliament while
making any amendments. Formation of any law is taking few number of years before proposing
2

them. In UK, government is having rights to make rules and regulations and for that they have to
take permission from parliament. Laws are framed by parliament and their outcome are found in
different ways.
In UK, bill was representing in parliament and it consult by number of parties who are
giving both negative or positive impact (Ayres and Schwartz, 2014). In this, interested parties are
allowed to comment on ‘green paper’ which is presenting initial framework of idea. But after a
point of time, ‘white paper’ has been introduced which is showing statement of government
intentions. The bill which are presented in parliamentary session in known as Queen’s speech.
Following are some stages of parliamentary in which bill is passes among houses of lords.
First reading – In this, drafted bill is arrived in parliament. With the help of this, other
members are become familiar with bill.
Second stage – In this stage, members are consulting bill with their main principles. The
members are allowed to bill without giving any vote.
Committee stage – Bill is presented in house of lord’s line by line. The bill which is
drafted will be examine and discuss by members who are present in house of lords. For this, their
purpose and what is the reason to approve this bill has been discussed. So, members are giving
vote to decide that whether changes are required or not.
Report stage – In this phase, amendments or changes in bill take place. The members of
cabinet are allowed to review on amended bill (Byrd and Hruschka, 2012). But, it also involves
those members who are not present in previous stage and they were allowed to give their
opinions for making any further changes.
Third reading – This phase is also known as tiding up stage. In this, final votes are taking
by members if any more changes or amendments are required in bill or not. After this,
amendment will be considered by both house of parliament.
Royal assent - It is last phase, where both houses are agreeing with final content which is
written in bill. Besides this, bill is approved by Queen and it became a law. These laws are also
known as Act of parliament.
Further, in courts of UK statutory and common laws are applied. It will help them to
maintain legal and positive environment in court proceedings. But there is difference between
these laws i.e. statutory are created in terms of rulings and common laws comes from the
precedent. But statutory laws are created by government and which is designed to keep citizen
3

safe will also ensure about their rights (Sealy and Worthington, 2013). As it is essential for both
attorneys and judges to be up to date with these amendments, so that they can take relevant
decision which will effect on common laws.
M1 Effectiveness of legal system
Legal system is based on one of the four basic structure i.e. statutory, common, civil or
their combinations. The effectiveness of these system is; they are giving punishment to
criminals, deals with cases promptly, punishing with imprisonment or fine or with both if anyone
is found with guilty of crime and many more. Further, there are many changes in laws and
regulations. So, it is responsibility of organisation to be up to date with changes in laws. For
example, there is change in labour administration law. The laws which has been framed by
government and properly following the English Legal system will help to individuals in
resolving their disputes in appropriate manner. Along with this, it will also protect their time to
go that court only where case will be resolved and adequate conclusion can be withdrawn.
TASK 2
P3 Contract, Company and employment law
Contract law is voluntary, where agreement is made between two or more parties. These
agreements are enforceable by law and both parties are bind to perform their terms and
conditions which are specified in it. This law is concerned with rights and duties which are arises
from agreements (Dignam and Hicks, 2011). To make agreement valid, it contains some
essential elements i.e. offer, acceptance, legal capacity, consideration, mutual consent. the
formation of contract must take all these places which are included in elements.
In given scenario, Gina is running large grocery store in city. Gina let his friend to Pala to
run their mobile shop and card booth. But recently, Pala was fired from his job. Gina ask to Pala
to pay rent only if he generates good profits. But after a few months, Gina felt that Pala is paying
a small rent of amount which is consuming great deal of electricity and meals. Pala’s customers
were also using Gina’s toilets facilities but he is not paying cleaning cost to him. According to
contract law, Gina have to give notice period to Pala to vacate their position and opportunity of
being heard should also be there.
Company Law is regulating corporations which are formed under the Companies Act
2006. The concept of company is having separate legal entity which has two consequences;
4

 An owner is responsible for its own debts and liabilities. Shareholders or directors cannot
force to anyone to pay these amount.
 The property of company is belonging to it and their directors or shareholders.
In given scenario second, Lonado is running their business as a sole trader. At point of
time, he is facing many losses when he starts building a new yacht because of initial cost were
high and buyer’s behaviour is also unpredictable. On other side, he wants to expand his business
by inviting wealthy investors but he doesn’t want to do work in partnership. As per given
provision of company act, Lonado can build their own company by inviting number of
shareholders. In this, he has to fulfil all the requirements which are written this law.
Employment law, in this laws are regulating relationship between employees and
employers which also includes that what employers are expecting from their employees (Armour
and Ringe, 2013). It is responsibility of employers that they do not discriminate any employee on
the basis of caste, religion, gender, nationality and many more. In given case scenario third,
Ladycabee ltd is providing cab services to customers. The female drivers of this company is
requesting for paid holidays, sick leaves, resignation without notice, due to this reason many
employees are hired and fired by company on regular basis. The owner of this company said that
their profits are falling and for this they are not providing reliable services to customers.
As per provision of employment law, it is responsibility of Ladycabee ltd that they have
to provide all facilities regarding paid leaves, sick leaves maternity leave etc.
M2 Impact of these regulations
The above regulations are giving both negative and positive impact on organisation.
Positive impact is company can protect their own rights and have to provide legal services to
customers. But sometimes, it become difficult for firm to comply with all these rules and
regulations on regular basis which also directly impact on their objectives (Crowfoot and
Wondolleck, 2012). While complying with employment law, then it became significant to
provide equal rights to employees. Another is company law, Lonado company have to maintain
all minutes of investors who are purchasing their shares and if these records are not maintain,
then may also impact on operation activities. It is responsibility of organisation to up to date with
these laws.
5

D1 Critical evaluation of legal system
Legal system of country provides many rules and regulations which are framed by
government. With the help of rules and regulations company can retain in market for a long
period of time. Along with this, they can operate their business functions smoothly. Case Law –
Saloman Vs. Saloman & Co. Ltd. The judgement of court was given that; company is legal
entity which is separated from and capable of surviving beyond their lives. Salomon is entitling
to pay 6000 pound which is entirely separate person from Salomon. Along with this, unsecured
creditors will also not get something.
TASK 3
P4 Legal solution for business problems
There are many solutions which can be applied by organisation. They are facing many
problems such as regarding employment rights in which they have to treat with all employees
equally. In given scenario one, Gina wants that Pala vacate their property but he was also not
sure about that whether Pala would agree or leave peacefully his shop (Contract Law explained,
2017). As per provision of Contract Act, there are main areas while forming any contract
includes;
 Formation of contract which includes offer, acceptance, intention, consideration.
 Capacity to form any contract (Goldberg and et. al., 2014).
 Discharge which includes breach, frustration, performance agreement.
 Remedies regarding damages, injunction, performance etc.
As per this provision, Gina came into contract with Pala in performing their duties as
well. It is responsibility of Gina to serve them proper notice period so through this proper
remedies will also provide to Pala. It is significant for every party if they are forming any
agreement, then they should follow all essential elements of contract which allow them to make
contract valid.
In second scenario, Lonado wants to expand their business but he does not want to do
business in partnership. As per provision of company act 2006, there are many methods in which
he can formed their business so that they can attract large number of investors.
 A company is formed by one or more person
(a) Subscribing their names into memorandum of association as per section 8, and
6

(b) Complying with all requirements of registration under section 9 to 13.
 Company should be formed for lawful purpose.
While applying this provision company can attract large number of customers and there
is also another option i.e. to increase share price. For increasing in price of share then it should
be written in memorandum of association of company and passed by shareholders in meeting
(Bacow and Wheeler, 2013). With the help of expanding their business, they can earn more
profits.
In third case, Ladycabee have to follow all rules and regulation in order to protect the
rights of employees at work place. As per provision of Paid leave 2013, annual leave for full-
time employee should be provided for 20 days and 8 days for national holidays. Another law is,
Maternity pay and leave is given when employees are taking time off to have a baby, then they
are eligible for statutory maternity leave. Two weeks of leave after baby is born and 4 weeks in
case if they working in factory.
P5 Justification of legal solutions
The above solutions which has been provided to Gina, Lonado and Laycabee are
appropriate as per given case scenario. It is essential for them to comply with all these
regulations so that they also came to know about some rules and regulations. It will be helpful
for them to work in competitive market. These solutions will be helpful for them for a long
period of time. Under employment law employer is responsible to provide safe and secure
working condition to their employees and try to enhance their skills and knowledge as well.
According to companies act various types of rebate has been provided to companies in order to
incorporate or its existence. Further, they need to comply with laws and regulation which are
imposed on them. Employment act 1996, describes that it is responsibility of employee to defend
the rights of employees if they are engaging with any unlawful activity. Along with this they are
also liable for compensation amount to injured person if any serious damage had taken place at
workplace. On other side Companies act 2006, should be strictly followed by Lonado so that he
can expand his business at international level without forming any partnership.
M3 Positive and negative impact
These regulations are giving both negative and positive impact to organisation. if they
will not comply with these all rules then it may difficult for them to retain in market for a long
period of time. Along with this, they will also not retain customers for a long period of time.
7

While implementing employment law, then it became easy for organisation to keep happy to
their employees. through this they cannot discriminate any employee on the basis of different
caste, gender etc. On other side negative impact is that, if they are not up to date with these laws
then it became difficult for them to run their business activities smoothly. The positive impact of
following rules and regulation is it will give huge advantage to person in cooperating their
business like in terms of taxes, policies, treaties and many more. With the help of this they can
earn large amount of profits and retain in market for a long period of time.
TASK 4
P6 Alternative Dispute Resolution process and legal solution
Alternate Dispute Resolution is that process where two parties are resolving their disputes
without taking help of court litigation. The government wants to encourage ADR process in
resolving the issues between parties. The common forms of ADR are; mediation, in this third
party helps to disputing parties to come with their mutually outcome, another is arbitration, is
that process where there is an intervention of third parties to resolve their disputes. In UK, there
are already several large and well-established ADR schemes which are regulated in different
sectors (Hage, 2014). These sectors include financial services, telecoms and so on. The parties
can use this process because it contains less time and less expensive. In this, opportunity of being
heard is given to both parties so that third person can resolve their issues with their consent.
Here are some of the basic term which are included in ADR and also help to parties in
resolving their disputes rather than go to the court litigation process. These are explained as
below:
Arbitration – It is considered as informal process where there is an involvement of third
party and they hear the issue of both persons so that valid conclusion can be concluded.
However, disputes parties are having choice to agree upon the result which are given by them.
Mediation – It is a collaborative process where mediator is appointed by the parties. But
this process is considered as ordinarily and non-binding also.
Arbitrator – Here, dispute parties are appointing on person with mutual consent. With the
help of that arbitrator is resolving their issues. In addition to this, it is considered as time saving
process where parties can also save their cost.
8

Conciliation is also included in this concept, in this third party is resolving disputes
which is appointed by both parties. Moreover, by parties are bind to follow this decision which is
given by conciliator. Here is some advantage of ADR:
 It is cheaper than court solutions
 More flexible and faster
 Damaged party can get compensation
 This procedure is confidential.
In US, arbitration is that process where parties are having right to resolve their disputes
with the help of third person. In this number of person are 1,3,5... Every country has their rules
and regulations and all are bound with these in order to perform their functions in appropriate
manner (Raz, 2013). The effectiveness of this process is that, it depends upon party whether they
want to go litigation process or not.
In give case scenario, UBER is well known and establish company in UK. This company
is providing cab services to customers. Different countries are trying to regulate UBER and using
different legal regimes such as; employment law, health and safety act, contract law. But the
dispute has been arising on that UBER is not a taxi services rather than ride-sharing services. As
per provisions, it allows to UBER to avoid all rules and regulations of cab services in cities. If
the disputes have been arising between two parties, then they can appoint one person with their
mutual consent to resolve their conflicts rather than go to court.
M4 Effectiveness of recommendation
The recommendation which has been under alternative dispute resolution process are
effective to both parties. In this, chances to both parties are given to keep their point of view so
that their conflicts can be resolve with their consent (Alexander and Alexander, 2011).
Moreover, both parties are not bound with these decisions which are given by third person. As
given in case scenario of UBER, if any disputes have been arising with other person then they
can also resolve them with alternate dispute resolution process which will does not waste their
time. With the help of ADR process, UBER can keep their records confidential and maintain
healthy relation with their employees and customers.
D2 Evaluating legal solutions
The solutions which has been given by third party is not bound on dispute person. Case
evaluation is helpful which is utilised for mediation or any collaborative process. There are many
9

laws which are applicable on parties which makes their strong cases while applying regulations.
These evaluations are done in different ways which also provides solution to disputes parties.
The role of mediator also overlaps between two parties (Riches and Allen, 2016). Every country
has set their own rules and regulations regarding alternate dispute resolution process. The
solution which is provided to Uber is very effectual because parties get an opportunity to put
their view point in front of third person so that proper conclusion can be withdrawn.
CONCLUSION
After summing up report it has been concluded that there are many laws which has been
framed by parliament in order to protect the rights of their citizens. Along with this government
is also playing vital role so that they can make regulations in appropriate manner. Further, there
are different laws such as contract, employment, company which has to be understood by every
organisation. it is responsibility of employer at work place to implement these rules in
appropriate manner. Through this, they can protect rights of employees while performing any
dangerous activity. Besides this, with the help of alternative dispute resolution process, disputes
parties can resolve their conflicts in time period. It will aid to organisation or parties to save their
time and money.
10