Exploring Business Law & Legal System - Nelson College, HND Project

This project provides a comprehensive overview of business law within the English legal system. It covers the sources of law, the legislative process, and the application of common and statutory law in courts. It illustrates the impact of various laws, including company law, employment law, and contract law, on businesses. Furthermore, it recommends legal solutions for resolving disputes, focusing on alternative dispute resolution methods such as arbitration, mediation, negotiation, and conciliation. The project concludes by emphasizing the crucial role of business law in regulating business operations and providing mechanisms for dispute resolution, aiming for efficient and amicable solutions.

Unit 7- Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Sources of law........................................................................................................................3
Process of making of law and role of government in it. How common and statutory law is
applied in courts.....................................................................................................................4
TASK 2............................................................................................................................................5
Illustrate the impact of various laws on the business.............................................................5
TASK 3............................................................................................................................................6
Covered in PPT.......................................................................................................................6
TASK 4............................................................................................................................................6
Recommend legal solutions for resolving dispute..................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law can be referred to as the set of rules and obligations which are aimed to
govern the commerce, trade and business of the country. Its application is only for the rights,
conduct and relation of the business and people associated with it. It is designed to protect rights
of ventures and personnel attached to it so that certain standard is fixed as to how the things must
be run. There are many legislations which are included within the ambit of commercial laws such
as company law, data protection, intellectual property, employment law and many others
(Gholizadeh Manghutay, 2018). This project is split into three parts of which first is done in the
form of report which shall cover details about English legal system. Second is in the form of
presentation which will deal with details of different kinds of business organisations and lastly an
essay on various alternate dispute resolution.
TASK 1
Sources of law.
Laws are rules that governs the behaviour of the human beings who lives in the civilized
society. These are nowadays declared and decided by the human beings and are subject to
amendments by human intervention only. The sources of laws in UK includes the following-
Primary
It is the authoritative source as it is made enacted by the authoritative or concerned body
decided by law. These involves the following- Legislations- These are made by the supreme authority which is known as Parliament.
They are authorized to make laws on keen matters and bring changes as per the needs of
the society. These cannot be challenged in any court rather only parliament has power to
repeal their laws. For instance, Equality Act, Theft Act, etc.

Case laws- These consist the decisions made by higher courts and has the binding effect
on subordinate judicature. These are required to be followed by them in similar cases and
has same relevancy as that of the legislations. For instance, Murder is the common law
offence and not statutory law.
Secondary
These are persuasive in nature and may be considered by court in their decisions but the
judiciary is not bound by it. Types of secondary sources are discussed below-

 Text books- These are written by the legal writers or academicians who have thorough
knowledge of the legal concept for the students. Law encyclopedia- It is considered as the best way to begin with the research on legal
topic as it consist of issues, legal point, laws and cases in order to provide better
understanding of the concept. Parliamentary and Non-Parliamentary publication- It provides the4 background as to why
the law came into existence and gives understanding of debates and discussions made
before making the law. Some publications includes command paper, debates, reports of
committee, etc.

Law journals- It covers the specific as well as general area of the legislation and is the
mix of case commentary and articles that can help in making an understanding of the
legal issue in the detailed manner (Macchi and Bright, 2020).
Process of making of law and role of government in it. How common and statutory law is
applied in courts.
Before enacting a law, a draft of bill is prepared which is presented to the Parliament. It
may be initiated in either house where different stages are involved which undergoes debate,
examination and suggestions for changes in draft. The government enacts the law by undergoing
following stages- First reading- This step involves arrival of bill where a formality is done just to read the
name of the bill in chamber. Second reading- The debate is initiated on key areas and objectives of bill where
discussion is made on concerned and specific areas so that changes may be brought in it.
Generally, votes are not taken in this stage. Committee stage- Now line by lie detailed analysis of the bill is done and changes are
suggested. The working on bill is done from beginning to the end. Votes are taken place
in order to make decision on changes. Report stage- An opportunity is given for examining the bill and changes are debated.
Votes are taken to decide as to whether the amendments are to be made or not. Third reading- It is the tidying up step which has the sole aim to close any of the
loopholes. The last chance to bring amendments is given to the members and vote taking
is done.

 Consideration of amendment- It is also known as Ping Pong stage where if the House of
Lords have made any of the change in draft, it is given to house of Commons for review
and they may reject or accept it. There are many steps to this process that's why it is
known as ping pong.

Royal assent- When both houses pass the bill, it is sent to the Royal Monarch for its
assent in order to bring its enforceability so that the bill can be made a law (Brill
Nijhoff.Smith, 2020).
Application of law in justice courts
There are mainly two types of laws, statutory and common and these both are applied in
justice courts. The judiciary in England and Wales is divided into two system, of which first issubordinate courts which includes firstly the
Magistrate Court which deals with minor criminal
offence and then is
Crown court which deals with serious crimes and appeals from the decision
of Magistrate court. Then is
County court which deals with only civil disputes or matters. Then isYouth court that has power to deal with cases wherein the young person of the age 10-17 years is
involved and committed offence. Second is
superior courts which includes firstly the
Supreme
court that is the highest court dealing in appeals only on point of law. Then is
Court of Appeal
which has two divisions, civil and criminal and they hear appeal from their respective matter.
Next is
High court which has three divisions, namely Chancery, Queen's bench and Family
proceedings (Chernopyatov and et. al., 2018).
TASK 2
Illustrate the impact of various laws on the business.
There are many legislation which are being enacted in order to regulate the working of
the business. It is discussed below-
The company law in UK was passed by Parliament which consist of around 1300 sections
which are conglomerated in approximately 700 words. This legislation is aimed to simplify and
modernise the company by codifying the obligations and duties of director, provide enhanced
rights to the stakeholders and making simplification of the administrative burden that are carried
out by companies. The duties of the director are not focused on their responsibilities which can
lead to negative impact on economy rather their duties are such which favours growth of

company. It is aimed to regulate the working of the company so that they can function within the
ambit of rules enumerated in the legislation.
The employment law is aimed to safeguard and protect the rights of both employer and
employees as it provides many responsibilities on employers towards their workforce. There are
various statutes under the broad scope of employment which includes Equality Act, National
Minimum Wages Act, Employment Rights Act and many others. Various statutory rights are
provided to the employees such as paternity and maternity leaves and pay, minimum wages, safe
working environment and many others (Idemudia, 2017).
The main significance of the
law of contract is that it mainly mandates an employer to
make the binding contract when a job is offered to an employee. It must include the terms and
conditions of the work which are essential and beneficial for both employee and employer. These
conditions may be related to the duties in work, working hours, tenure of job, guidelines relating
to appraisal, responsibilities, grounds of termination and many others. This legislation provides
penalties and remedies in case of any breach of term or condition or the whole contract.
TASK 3
Covered in PPT
TASK 4
Recommend legal solutions for resolving dispute.
The foremost common method of resolving the dispute is litigation which involves the
court system wherein the judge after listening to the facts of the case and examining the
evidence, pass the judgement which is binding on the parties. It is the lengthy and time
consuming process which takes high cost. Apart from this, there are many alternate dispute
resolutions which are being enacted by the UK government under Civil Procedure Rules, 1986
so that there is speedy disposal of the disputes. These are aimed to bring solution in short span of
time and involves no interference of the court as it is outside court settlement. Some of them are
illustrated below-
Arbitration is one such solution which involves appointment of the independent and
neutral third party who is called the arbitrator which is elected by the parties itself. The arbitrator
hears the facts of case and after examination of the evidence which are on record, the arbitrator

passes the award which has the legal binding effect. The arbitrator is selected by the parties
which must be in odd number and has no limit to the number.
Mediation is also one solution wherein the independent third person is appointed as the
mediator who guides the party to resolve their dispute. It only provides suggestion to the party
rather than giving the decision so its suggestion is not binding on the parties. This legal solution
is mainly preferable by the companies in order to resolve their internal matters and conflicts
(Puchniak and Tan, 2017).
Negotiation is the alternative dispute resolution wherein the negotiator is appointed by
the parties who provides the suggestion to them. The negotiator hears the facts and evidence and
pass its decision to which the parties have choice either to accept it or not. When the parties give
acceptance to the decision of negotiator, they are required to sign the agreement so that there is
binding effect to it.
Conciliation is another resolution mechanism wherein conciliator is appointed by the
parties which be one, two or three in number. The conciliator provides the decision after hearing
and examining the facts and evidence which is called as settlement. The parties has flexibility to
change the settlement agreement and bring their decision in it. When it is signed by the parties,
there is binding effect of it (Scognamiglio, 2019).
Hence, as per the case scenario given, the dispute relates to the licensing and import right
so arbitration is beings suggested to the parties so that a binding decision can be brought for
them. Moreover, this solution can help the parties to bring amicable solution so that a speedy
disposal of the dispute is brought without any interference of the legal system.

CONCLUSION
It is concluded from this that the business law plays an important role in the functioning
of businesses as it offers regulate their working. There are various statutes which comes under its
ambit that includes employment law, companies Act, law of contract, data protection legislation
and many others. There are two main sources of law which includes primary and secondary. The
Parliament is considered as supreme law making authority where the draft of bill undergoes
various stages to make it a law. Further it is added that there are many range dispute resolutions
which can be opted by parties which includes arbitration, conciliation, mediation and
negotiation.

REFERENCES
Books and Journals
Brill Nijhoff.Smith, K.J., 2020. Purposeful Ambiguity: A Case for Greater Clarity in State Law
Treatment of the Nonprofit Limited Liability Company (as Viewed through Permitted
Purpose Provisions).
Tul. L. Rev.. 95. p.601.
Chernopyatov, A., and et. al., 2018. Entrepreneurship development and business activity in the
Russian Federation.
Journal of Entrepreneurship Education. 21(4). pp.1-12.
Gholizadeh Manghutay, A., 2018. A LEGAL ANALYSIS TO CAUSES AND COMMANDS
OF RESORT TO THE COURT FOR ELECTION OF JOINT STOCK
COMPANIES’TEMPORARY INSPECTOR.
Law Quarterly. 48(1),. pp.153-172.
Idemudia, U., 2017. Business and peace in the Niger Delta: what we know and what we need to
know.
African Security Review. 26(1). pp.41-61.
Macchi, C. and Bright, C., 2020. Hardening Soft Law: The Implementation of Human Rights
Due Diligence Requirements in Domestic Legislation. In
Legal Sources in Business and
Human Rights (pp. 218-247).
Puchniak, D.W. and Tan, C.H., 2017. Company Law (2016).
Singapore Academy of Law
Annual Review of Cases. 2016. pp.235-256.
Scognamiglio, G., 2019.
COMMERCIAL AND COMPANY LAW (Doctoral dissertation,
Pontificia Universidad Javeriana, Bogotà, Colombia).