Business Law Report: Legal Sources, Business Organizations, Disputes

This report provides a comprehensive overview of business law, examining various sources of law in the UK, including common law, statutory law, and European Union law, alongside the laws businesses must comply with, such as the Equality Act and Data Protection Act. It delves into the role of government in law-making, explaining the stages of parliamentary law-making and how statutory and common law are applied within the English and Welsh court system, including the civil and criminal justice systems. The report further explores different types of business organizations, their legal formation, management, and funding, assessing their advantages and disadvantages. Finally, it recommends legal solutions for resolving disputes, comparing different sources of legal advice and support, and evaluating their effectiveness in dispute resolution. The report's structure covers the sources of law, government's role, company, employment and contract law, different types of business organisations and alternate dispute resolutions.

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different sources of law and the laws to which businesses must comply with................3
P2 The role of government in law-making and how statutory and common law is applied in
the justice courts.....................................................................................................................5
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
developments..........................................................................................................................8
TASK 2............................................................................................................................................8
P3 How company, employment and contract law has a potential impact upon business......8
M2 Differentiate between legislation, regulations, and standards to analyse potential impacts
upon business........................................................................................................................12
D1 A coherent and critical evaluation of the English legal system......................................12
TASK 3..........................................................................................................................................13
P4 Explore how different types of business organisations are legally formed.....................13
P5 Explain how business organisations are managed and funded.......................................14
M3 Assess the advantages and disadvantages of the formation of different types of business
organisations.........................................................................................................................14
TASK 4..........................................................................................................................................16
P6 Recommend legal solution for resolving a range of dispute using examples to demonstrate
how a party might obtain legal advice and support..............................................................16
M4/ D3 Compare and contrast effectiveness of different sources of legal advice and solution
and support for dispute resolution........................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
Business law is a vast field which governs the commerce and business. Commercial law
is basically enacted to regulate the corporate contracts, manufacture and the sale of the consumer
goods and the hiring practices. Business law is the study of intellectual challenge in respect to
legal puzzle which is constantly changing which is faced by the businesses irrespective of their
types and sizes. It serves the way in which the business must maintain order (Bartel and Graham,
2016). These protect rights of companies and the people associated with it and also establishes
the standards as to how things must be done. The main function of commercial law is to maintain
order, protect liberties and rights, resolve conflicts and establish the standards. This report shall
cover the sources of law, role of government in law making, overview of company, employment
and contract law. Further it will cover different types of business organisations and the alternate
dispute resolutions.
TASK 1
P1 Different sources of law and the laws to which businesses must comply with.
Sources of law
Law is the system of rules which are created and then enforced by the governmental and
social institution in order to regulate the behaviour. The United Kingdom does not have its
written Constitution rather it is partially written and un codified. The main sources of law in UK
is statutory and common law. Some of the sources of law are discussed below-
 Common law: It is the body of the unwritten laws which are based on the legal
precedents established by court of law. It influences decision making of the courts in
unusual cases from where outcome cannot be determined and is based on the existing
statutes and the written rule of laws.
 Equity law: It is a body of law, developed in English Court of Chancery and is now
currently administered with common law. It does not contradict common law but it is
aimed to secure the substantial justice when rule of common law sees the injustice
(Bartlett, 2018).
 Judicial precedence: The courts does not have power to overrule or create the precedent
which are set out in previous cases. These are based on the doctrine of stare decisis where
the lower courts are bound to follow the decisions of superior courts. In UK the Supreme

court is the top most court in the hierarchy whose decisions are bound to be followed by
the lower courts.
 Legislations: These are the Acts of the Parliament which are enacted by both the Houses
by majority. These are statutory law which cannot be challenged in any courts. The aim
of statutory law is to replace the existing law with the system of regulations in order to
maintain and improve the standards (Schwartz, 2017).
 European Union law: It is the system of rules which operates in the member state of the
European Union. It is the supreme source of the law in European union. It comes from
founding treaties, namely Treaty of Rome and Treaty of Maastricht.
 International Conventions: These are the agreement entered into by different countries
which are legally binding to contracting states. It covers many areas like science, trade,
transport, disarmament and the human rights. Writers and authorities: These are created by the expert authors and the academicians
and are the excellent point of starting the research. These cover the legal issues, facts and
the cases so that law concepts are made clear (Bhuta and Kreβ, 2016).
Laws which businesses must comply with
The businesses are required to follow the rules and regulations so that smooth running is
ensured. The laws to which the organisations must comply with are discussed below- Equality Act, 2010- This law is designed to prevent the discrimination at the workplace.
The law provides the protective characteristics which are grounds on the basis of which
an employer cannot discriminate any person. These include sex, race, gender, maternity,
pregnancy, etc. The law emphasis on the equality and states that every person must be
given equal and fair opportunity at the workplace. Health and Safety at Work Act, 1974- This Act is formulated to provide safe and secure
environment to all so that no accident or happening can occur. The law places duty on the
employer to take all necessary measures so that risk can be assessed and prevent or
reduced the risk. Employment Act, 2008- This law is designed to regulate the relationship of the employer
and employees. It protect the rights of the employees from exploitation and places duty
on employer to provide the employee with the employment contract so that all terms and
conditions of work are clear (Zhang and et. al., 2019).

 Data Protection Act, 2018- This law is formulated to maintain the privacy and security of
the people who are associated with the business. This law obliges the employer to
maintain privacy of the data of the employees and customers.
P2 The role of government in law-making and how statutory and common law is applied in the
justice courts.
Four arms of the Government are:
 Monarch: It is the Head of the State and has a major role of making the law. No law
can be enforced in the country without the assent of the monarch.
 Executive: It consists of the leaders of the office with top role of leadership which
includes the Head of the state, the government and other ministers. They are entrusted
with the role to enforce the law in the country. It formulates the policies and
implement it.
 Judiciary: It comprises of judges and the other officers of court and tribunals who
enacts new law through the judicial precedents. The judges have the power to decide
which law should actually imply in a case.
 Legislature/parliament: This is the supreme authority to enact the law. The law is
passed through different stages and legislature have supreme authority to enact any
law (Scalia, 2018).
The legislature is made up of two houses:
 The House of Commons- It consists of the members who are elected publically.
They debate the big issues of politics and proposes for the new law. They are alone
responsible for the decision making on financial bills.
 The House of Lords- It is the second chamber of UK Parliament. They share the
work of making and also shaping the laws and check and challenge the work of
government (Bianchi, 2016).
Stages of Parliament Law Making Process
A bill undergoes many stages in order to become the bill. The following stages are-
 First reading- The Bill arrives at the either House of the Parliament. Here the formality
of reading the name of the bill is done.
 Second reading- In this stage, the debate is done on the purpose and the key areas of bill.
Usually no votes take place at this stage.

 Committee stage- A detailed scrutiny of the bill is done and amendments are suggested.
The members begin from start and work till the end. Votes may take place at this stage as
to whether to accept the changes or not.
 Report stage- another opportunity is given to the members to examine the bill and make
the changes. The amendments are debated and votes may take place at this stage.
 Third reading- It is aimed to close the loopholes. A final opportunity to make the
changes is given and votes take place at this stage.
 Consideration of amendments- At this stage, if the Lords have suggested any changes
to the bill, it is send to Commons and they may accept or reject it and vice versa. It is
called the ping pong process. Royal assent- When both the Houses have been agreed on the bill, it goes to Monarch for
the royal assent so that it can become the law (Bird, and Brown, 2018).
How statutory and common law is applied in the courts in England and Wales
The statutory legislation is the Parliament made law which is the supreme law making
authority. The common legislation is judge made law where the judges may interpret the existing
laws or make new law as per the need in the society. The laws are applied at the court system of
England where the judges apply the law as per the given case and work to render justice to the
victim and punish the wrongdoer.
Definition of judiciary and how it is made up of court system
It is a branch of the government which interprets the law. It consists of the courts of first
resort, appellant courts and the Supreme court. The judiciary consist of courts which hears the
cases on civil and criminal matters. There is no written Constitution in UK, all the rights and
duties of the citizen are incorporated in the statutes made by Parliament and by the precedents.
The judiciary consists of courts, officers and ministry of justice who collaboratively work
together for rendering justice to the victim.
justice system – civil and criminal law
The civil law covers the areas like negligence, contract, employment and family matters.
The dispute mainly arises between the two private individuals in case of civil matters and these
are governed by the civil laws. For example, contract law, Tort law, property law, etc.

The Criminal law is the branch of the public law which defines mainly the boundaries of
the acceptable conduct. The case mainly arises between the individual against the whole society.
Example of criminal law includes murder, homicide, etc.
Basis Civil Criminal
Application It is applied to the individuals as
their rights are infringed.
It is applied to individual and whole
society.
Burden of proof The onus is on the plaintiff to
prove that defendant is
responsible for the problem.
It is the responsibility of state or the
federal government to prove that the
defendant have committed the crime
undoubtedly.
Legal penalties The one who is liable under civil
law is ordered by jury to pay
damages or compensation.
The judge or jury has to follow the
sentencing guidelines. The legal
penalties include probation, fines and
incarceration.
Hierarchy of courts in each civil and criminal law
Civil courts
Mainly, the court of first instance for civil matters is the Country court. Then any appeal
from this court goes to High court which is made up of three divisions, Chancery, Queen's bench
and the family. The Chancery hears cases of copyright, guardians, mortgage, etc. The Queen's
bench deals with cases relating to judicial review, habeas corpus and ordinary civil disputes. The
family bench deals with family disputes like matrimonial, guardianship, etc. Then the appeal
goes to Court of Appeal Civil division and lastly the Supreme court which is the final appellant
court.
Criminal courts
Firstly, the case relating to criminal cases goes to Magistrate court which handles 98% of
criminal disputes which are minor in nature. Then the serious offences like murder, rape, etc. are
heard by the Crown court and also hears appeal from Magistrate court. Then their appeal goes to
Court of Appeal Criminal division and lastly the Supreme court.

Role of police, Crown Prosecution Service and Director of Public prosecutor
The main role of Police is to protect the property and lie of people, preserve the peace
and prevent and detect the criminal offences. The Crown prosecution service is an independent
body whose duty is top make sure that right person is prosecuted for right offence and the also to
bring the offenders to justice. The public prosecutor is the officer of court which helps in
administrating the justice. Its main role is to help the court in finding the real facts of case.
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and developments.
The English legal system is a dynamic system where the reforms and developments take
place as per the needs and wants of the society. There are many changes which took place in the
English legal system, some of which are discussed below-
 The most important change is the establishment of the Supreme Court by replacing the
House of Lords in 2009. The Tribunal service was also created which was merged with
Court services in 2007.
 Another change is creation of Family court in the year 2014 due to emergence of new
cases relating to family disputes. It is also one of the finest change which showed the
reform and development in the English legal system.
 New laws were framed as per the reforms and developments like data protection act to
strengthen the security and privacy laws as per the needs. Amendments in business laws
like equality act, intellectual property rights and many other (Bowen, 2016).
TASK 2
P3 How company, employment and contract law has a potential impact upon business.
The businesses have the major impact by the laws which regulate their working. There
are many legislations which regulate the functioning of organisations. The impact of various
legislations are discussed below-
Company law-
This legislation is framed to regulate the working of corporations. The company is am
artificial personality which have its common seal. From the incorporation to the dissolution of
the company is governed by the law of company. The UK companies Act is the lengthiest
legislation which covers every aspect of its working and functioning.
Definition of company and its formation

It is a form of business which has a separate legal entity distinct from its owner. It is a
artificial personality which has its common seal. In order to legally form the company, there is a
lot of formalities required which includes registration at the Companies House. It is important to
make the approval from the companies House for the purposed name.
Status of company in Solomon v. Solomon case
In this case, Solomon have transferred its business to company and make its family
members the director. The price for transfer was paid by shares and debentures which have
floating charges and when the business failed and went into liquidation, right to recovery of
Solomon against debenture stood prior to unsecured creditors claim. The liquidator overlook the
separate personality of Solomon Ltd which is distinct from owner and made Solomon personally
liable. The court held that a company is a separate legal entity. It upheld the doctrine of
corporate personality so that the creditors of insolvent company cannot sue the shareholders of it
in order to pay the outstanding debts.
Characterises of company
 Every member of company have a limited liability as the company is separate legal
entity.
 The companies have the perpetual succession which means that the owner may come and
go but company shall remain forever. The company can only be dissolved when it is
being winded up in a proper manner.
 The company is an artificial personality which has its common seal. It has its rights and
obligation in the society. The shares of company are transferable like any other movable property in the absence of
any restriction mentioned under Articles of associations. The shareholders can easily
transfer their shares.
Types of company
There are two types of company-
 Public- These are those companies which have sold their major portion to public via the
initial public offering. It raises its capital by application to invite public for purchasing its
shares from the public. The shareholders elect the board of directors who represent their
interest.

 Private- This is held under the private ownership and its shares are not offered to public
and operates under the legal requirements which are less strict then the public companies,
How it has potential impact on business
This law have a potential impact on the businesses as it is monitoring and controlling the
working of company as well as its directors and shareholders. It states the rights and liabilities of
the shareholders and directors which is necessary for the them to follow in order to prevent any
legal consequences (Solomon, 2017).
Contract law
Definition
It is designed to regulate the rights, liabilities, conduct and relation of the parties who
have entered into the contract. Every business involves various transactions in its day to day
operation, so the contract law regulates these transaction through the contract so that no party
suffers anything. The law provides the remedies to the aggrieved party which includes damages,
specific performance of contract, rescission, repudiation and many other.
Essential element of contract
 Offer- There must be an offer by one party. In the case of Carlill v. Carbolic smoke ball
Ltd, the court held that advertisements which contains any terms to get the reward
constitutes a unilateral offer which is binding and can be accepted by anyone who
perform its terms.
 Acceptance- The offer must be accepted by other party. There must be clear
communication of acceptance which can be made either in oral or written form. In the
case of Adams vs Lindell, the court held that the acceptance to offer can be made through
postal also.
 Consideration- It is the most essential requirement which is a value of something in the
contract. Intention to create legal relations- It important fr parties to have intention for creating
legal relations. In commercial contracts, the court takes the presumption that there is
intention and in social contracts, the presumption is raised that there is no intention to
create legal relations.
Potential impact

The contract have major impact on business as every business transaction requires a
contract which is followed by the rules incorporated in law. It provides the remedies if any party
breaches any term of contract and protects the rights of the parties.
Employment law
Meaning
It is designed to regulate the relationship of the employees and employer. It protect the
rights of the employees from exploitation. It is an umbrella which covers many areas ODF
employment so that no employee or worker is subject to any infringement of right. Some of the
legislations covered under it includes health and safety at work, equality law, data protection act
and many other so that employees are given equal and fair opportunity at workplace.
(Chernopyatov and et. al., 2018).
Differentiation between employee and self employed
A self employed person is the one which works for itself and owns a business or is an
independent contractor while the employee is the one who works under the contract for the
company which is for the agreed compensation.
Control test
This is concerned with nature and degree of control of the employer on the employee. In
case of Walker v. Crystal Palace Football Club, the court held that the professional player is
employed because it was subject to control of his club in form of discipline, training and the
level of pay.
Integration test
It is developed as the result of control test which is sometimes in conflict with real
situation. It recognises that high skilled professionals can be still employees and is concerned
with degree to which a person is integrated in employer's business. In case of Cassidy v. Ministry
of health, The court allowed integration test in order to assess whether the ministry have
appointed doctor and selecting it for the task which therefore integrate it in the company. The
ministry was liable for the action of doctor.
Multiple test
it is developed as the result of shortcomings of integration test. It is concerned with more
general consideration of circumstances in question rather than applying one single test. In case of
Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance, This

test was applied in order to know whether the worker is working on its own account. On facts, it
is self employee and not employee.
Mutuality obligation test
This test is applied to determine the employment status of workers. It looks at the
relationship of contractor and client in order to decide whether relationship resembles that of
employee and its employer. In the case of O’Kelly v Trust House Forte Plc, the court held hat
there is a requirement for the contract which is mutuality of obligation between parties which is
an ongoing duty in order to offer and accept the work.
Impact on business
This law have changed the scenario in which the businesses would operate in past as
after coming into force of the employment laws, the employees have been given end number of
rights which forced the businesses to change their working. These rights have forced the
companies to come up with such policies which can protect their rights and prevent any
infringement.
M2 Differentiate between legislation, regulations, and standards to analyse potential impacts
upon business.
Legislations are the directives which are placed by the government and every citizen is
bound to adhere with the rules and regulations which are framed by the supreme law making
authorities, Parliament. Regulations are the specific requirements which are broader in scope. It
is the way in which the laws must be enforced by the regulators and support the requirements of
legislations. Standards are the way in which something must be done. These are the technical
specifications which is used consistently as the guideline, rule or the definition (Wilson and
Harten, 2019).
D1 A coherent and critical evaluation of the English legal system.
The English legal system consists of different sources of law which includes statutory
and common law. There are many legislations which can help smooth running of the business
which includes contract, company, employment law and many other. The legal system consists
of three branches of which first is legislature which is the supreme law making authority and
second is executive which implement the laws framed by the legislature and the judiciary.

TASK 3
P4 Explore how different types of business organisations are legally formed.
Scenario:
David is a sole trader in Liverpool. He is a self employed and registered for National
Insurance and Tax purposes and is now considering to incorporate business as limited liability
company.
There are many different types of business organisations which are legally formed and
each one has various liability and tax implications for the shareholders and the owners. The
different business organisations are discussed below-
 Sole proprietorship- This type of organisation involves single owner who starts working
for itself. It has the easiest procedure of registration which involves registration with the
HMRC. The single owner is entitled to keep the profit as the income but is liable to pay
the personal tax. The owner is made personally liable for all the debts and liabilities of
the firm.
 Partnerships- It involves two or more persons who mutually agree to share the profits
and loss of business. They mutually decide to share responsibilities, decision making,
cost, risk and benefits for running the business. The partners may be held personally
liable for the debts and liabilities of the firm. The legal formation of partnerships involves
registration in HMRC and an agreement which states all the terms and conditions of the
working.
 Limited liability partnerships- These are same as partnership but the main difference
lies in the liability of the partner which is only limited to the share of its capital in the
firm. The formation of LLP requires registration with HMRC and the Companies House.
The responsibilities and the share of profit is set in the agreement and the partners are
required to submit the personal self assessment tax return.
 Companies- It is the separate legal entity distinct from the owner as it is an artificial
personality which have its own common seal. The companies are divided into two main
categories which includes limited company where the liability of the owners is limited to
their capital share and another is unlimited company where the owners have unlimited
liability irrespective of their share in business (Hufnagel, 2016).

P5 Explain how business organisations are managed and funded.
Sole proprietorship- This business is owned and controlled by a single owner and its
day to day operations are managed by the owner itself. The sole proprietor can raise the funds
either from its personal savings or from the bank loans. The sole proprietorship involves less
capital for the establishment and working.
Partnership- This business organisation involves two or more persons who manage the
daily operations of the firm. The partners mutually decide the share the responsibilities of the
firm. The funds are raised either through the personal savings of the partners or through bank
loans.
Limited liability partnership- These are managed by the partners and their
responsibilities are divided and fixed in their partnership agreement. The funds are raised by the
partners through their personal savings or the bank loans and investors.
Companies- These are managed by the owners of the company. If it is a public company,
it is managed by the board of directors who are elected by the shareholders to represent their
interest and the private companies are managed by directors or the owners. The funds are raised
either by inviting application from public to raise the share capital or through the investors
(Langsted And et. al., 2019).
M3 Assess the advantages and disadvantages of the formation of different types of business
organisations.
Sole proprietorship
Advantages
 Its incorporation is easy and simple.
 The owner have sole authority to manage the operations of the business. The owners is entitled for all the profits of the firm.
Disadvantages
 The owner have unlimited liability for the debts.
 The capacity to raise the capital is limited. High calibre employees are difficult to retain.
Partnerships
Advantages
 There is less formal with very few legal obligations.

 The partners share the decision making and responsibilities mutually. There is more scope of capital contribution is the number of partners are increased.
Disadvantages
 It is difficult to transfer the share in partnership.
 There is unlimited liability of the partners.
 The partners have to stick to the terms of the agreement.
Limited liability partnerships
Advantages
 There is no minimum requirement of capital for forming the limited liability partnership.
 There is no limit on the owners of the business as it may vary from two to many other. The LLP is not liable to pay the personal tax on income and the share of the partners.
Disadvantages
 If the partners wants to transfer their rights of ownership, they have to obtain the consent
of other partners.
 In case any partner wants to leave the partnership firm, the LLP may dissolve.
 The accounts of the limited liability partnership involves public disclosure which is the
major drawback of LLP.
Companies
Advantages
 It is easy to transfer the ownership by selling the shares to other party.
 The company is the separate legal entity which have its own common seal. The company has a perpetual succession which means that the owner may come and go
but company shall remain forever.
Disadvantages
 The legal formation of company involves high fees and complex process with huge
documentation.
 The names of company are subject to many restrictions.
 The financial affairs of the company are subject to public disclosure.
Advice to David
In the given case scenario, David can opt for limited liability company as being a sole
trader he has unlimited personal liability but incorporating the business as Limited liability

company would give him benefit from liability. But being a sole trader, there would be so many
formalities to incorporate the company due to lengthy process and high cost. But being a limited
liability cpmpany will help in exploring more opportunities like raising capital, etc.
D2 Critically review and evaluate types of business organisations.
There are different types of business organisations which are legally formed and managed
according to their legal structure. All types of business organisation have different liability and
tax aspects which makes them, distinguishable. For instance, the sole proprietorship and
partnership involves unlimited liability of the partners and on other side, the LLP and companies
have limited liability to the extent of capital contribution or ownership in business. Every
business organisation have its pros and cons which are to be kept in mind while choosing the
business organisation for the business.
TASK 4
P6 Recommend legal solution for resolving a range of dispute using examples to demonstrate
how a party might obtain legal advice and support.
Case scenario 1
a limited liability company, namely LCS deals with sale and manufacturing of the
household equipments. The company have advertised for various positions for the recruitment in
newspaper. Jackson and his wife have applied for same position of marketing director. After the
interview, the company offered the job to husband by claiming that husband is the bread owner
of the family and men are more stronger and energetic than the woman.
Legal implication
The Equality Act of 2010 protects the people from discrimination in the workplace. The
legislation provides nine protective characteristics, on the basis of which no employer or
manager can discriminate any person. These protective characteristic includes age, gender
reassignment, disability, race, sex, religion, pregnancy and marriage. In this case, the employer
have discriminated between the husband and wife on the basis of gender which is not legally
valid. The Equality Act states that no employer shall discriminate any person on the basis of the
protective characteristic (Liu, 2017).
Legal solution

In this, wife of Jackson can seek mediation as the dispute resolution. It involves
appointing the unbiased and independent mediator who gives suggestion to the parties. The
parties are given suggestion which is not binding but the mediator tries its level best to bring
amicable solution between the parties.
Justification
Mediation is suggested because the wife of Jackson is not the employee of LCS and
seeking other resolution may be time consuming and takes more cost which may affect her
future. Through mediation, the parties can come up with amicable solution.
Case scenario 2
After 10 years of the dismissal of Jackson, LCS have leaked the private details to many
individuals and organisations. Jackson have also registered the company using its symbol and
logo.
Legal implication
The Data Protection Act of 2019 reveals that any person who uses personal data of any
person must follow the strict rules, namely data protection principles. These include that the
person must use the personal details of the other for lawful and fair purpose with transparency in
it. If an employer uses the information of any employee, it must inform the purpose and use of
the personal data and give clear explanation as to how it will be treated. In this case scenario, the
employer have used the personal details of Jackson and leaked it. This is infringement of privacy
and the employer is liable under the said legislation (Manea, 2016).
Another situation is when Jackson have used the logo and symbol of the company after
its dismissal. This is infringement of intellectual property rights. The trademark of the company
is its logo and symbol and no person can copy it. So Jackson is liable under the said Act. The
legislation of Copyright, designs and patent Act 1988 will also held jackson liable for using the
design of company without their permission. This law gives the creator of the digital meida a
right to control its work from using and distributing.
Legal solution
in this scenario, Jackson can seek negotiation as the alternate dispute resolution. It
involves appointing the independent negotiator who tries to bring win win situation among the
parties. In this, no parties looses anything, rather both gets suggestions so bring the amicable
solution.

Justification
Negotiation is suggested because the issue is an internal matter of the company and
seeking any other mode of resolution may take more time and cost for the parties so negotiation
is available at the workplace all the time. So parties can seek negotiation to resolve their dispute.
Other choices of remedies for Daniel
 Trade union- These are the organisation with the members who are generally the
employees and workers. They look after the interest of workers at work by doing work
such as negotiating agreements with the employers on conditions and pay, etc. The main
advantage of this is that it helps in negotiating in a better pay and main disadvantage is
that it discourage individuality and focus on group.
 Citizen's Advice Bureau- It is a platform which provides free advice to the people in
order to help them to put a way forward, whatever be the problem. It is an impartial and
independent body. The main advantage of this is that they help people free of cost on
many areas like consumer rights, etc. The disadvantage of this is that there is limited
scope in this due to funding issue.
 Employment Tribunal- It is a specialised body which deals specifically with the
matters and disputes relating to employment. Firstly the party has to take the case to
ACAS for early conciliation service and when the party is dissatisfied with its decision, it
can move to ET within 30 days of decision. The party can make the claim on unlawful
treatment which includes unfair dismissal, unfair deductions and discrimination.
Case scenario 3
The employees of LCS Ltd were told that all all workers have to work for overtime hours
compulsorily from March but no consultation was done prior to this notification with employees.
This decision was accepted happily by some employees but Daniel did not agree to it. He
resigned from the job and is not thinking to sue LCS Ltd on ground of constructive dismissal.
Legal implication
Constructive dismissal is the situation when the employee is forced to quit or leave the
job not because he/ she wants to but due to the conduct of the employer. The employee have to
show that the employer have committed serious breach of the contract which forced it to take
such decision (Mueller, 2016). In this case, the employer have forced Daniel to resign the job
due to compulsory work on overtime hours which is not a clause in any employment contract.

Legal solution
In this, arbitration is suggestion which involves appointing the independent arbitrator
who after hearing the facts and evidence on record, gives an award which is a binding on the
parties.
Justification
Arbitration is suggested because the case involves serious issue which needs a binding
effect on the decision. The decision for constructive dismissal involves investigation of the facts
and evidence which is possible in proceedings of arbitration only so through arbitration, parties
can resolve their dispute.
Case scenario 4
Adam and Eve are engaged and he decides to give treat to Eve so they went to the Italian
restaurant. Eve gave order of ginger beer and reveals that it has decomposed snail it. As a result,
she developed stomach upset and suffered from the disease of diarrhoea.
Negligence
It is the omission to do something which the reasonable man would do or would not do. It
is the failure to meet the standard of the behaviour which is established to protect the society
against the unreasonable risk.
Elements of negligence
There are following essential elements to the negligence which includes-
 The defendant have the duty to take care towards the plaintiff while performing any act.
It is a legal duty and not the unlawful or the illegal duty.
 There is breach of duty to take care by the defendant.
 The breach have caused harm to the plaintiff (Murphy, 2018).
In the case of Donogue v. Steveson, the plaintiff ordered the bottle of ginger beer where
she discovered the decomposed snail in it . Since the bottle was not having the clear glass, the
plaintiff consumed most of the contents of it. Later she fell ill and was diagnosed with
gastroenteritis. Later the legal action was taken against the defendant and the court held that
defendant have breached the duty to take care which resulted in causing the injury to plaintiff
through negligence (Pitts, 2018).
Advice to Adam and Eve

The parties can sue the restaurant for their negligent act of serving the drink which
contained decomposed snail. They can claim the remedy under negligence and the restaurant
shall be liable for negligence.
M4/ D3 Compare and contrast effectiveness of different sources of legal advice and solution and
support for dispute resolution.
There are many sources of alternate dispute resolutions which includes arbitration,
mediation and the negotiation. These are distinct from each other on the basis of their binding
effect as mediation is not b8inding and on other side, negotiation is binding when the parties sign
the negotiation agreement. Arbitration has the binding effect. The legal advice is sought from the
advocates who are under the legal obligation to serve the client with the correct and fair legal
advice as and when they require.

CONCLUSION
It is concluded from the above report that business law is a vast field which covers many
legislation sunder one umbrella. There are mainly two sources of law in UK which includes
primary and secondary law. The business law includes contract, employment and companies law
to which every organisation must comply with so that no legal consequences can occur. There
are different business organisation like sole proprietorship, partnership, companies and limited
liability partnerships which are managed and funded according to their liability and members.
Further it is concluded that there are different alternate dispute resolution which includes
arbitration, mediation and negotiation.

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