E124 Business Law Report: English Legal System and Business Impact

This business law report provides an in-depth analysis of the English legal system, including its structure, characteristics, and comparison with the European model. It explores the various stages a bill must go through to become an Act, and examines the impact of key legislation, such as employment and consumer laws, on businesses. The report outlines different types of business organizations, including sole traders, private limited companies, and partnerships, detailing their structures and regulatory requirements. Furthermore, it explains the role of Alternative Dispute Resolution (ADR) methods and alternative sources of legal advice. The study emphasizes the importance of understanding business law for the successful formation, management, and operation of enterprises within the UK legal framework.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explaining the English legal system...........................................................................................1
Comparing and Evaluating the English Legal system with European model.............................2
Identifying various stages that bill must go through before converting into Act........................3
Impact of various legislation on business...................................................................................3
TASK 2 ...........................................................................................................................................4
Outlining the main types of organisation....................................................................................4
TASK 3............................................................................................................................................4
Explaining the role of Alternative dispute Resolution................................................................4
TASK 4 ...........................................................................................................................................5
Alternative sources of Legal Advice...........................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law consists of all regulation as well as legislation that provide the way the
business should be formed and continue to run for long period. It consists of all laws that govern
the organisation should be formed, purchase, managed and close. Legislation related to business
develop the code of conduct that all enterprise should comply. It includes state, federal as well as
administrative law. Manager in successful organisation are also aware about the various laws
related to business seeks advice from licences attorney.
The study has focus on explaining the English legal system. It also emphasizes on
identifying the sources of English law especially legislation related to criminal as well as civil
law. It will also highlight the main types of organisations in UK. Report will also explain the
impact of various laws on business.
TASK 1
Explaining the English legal system
English legal system is majorly considered as European legal system. It is accepted by
many other countries mainly by English Colonies like Canada, USA, New Zealand and
Australia. It ha evolved from the domestic custom of Anglo-Saxons. Kings council has created
the royal court that were control over by professional judges which gradually has provided with
legal powers. This system was developed in England. The structure of English legal system
consists of legislation, common law, civil, criminal and other industrial as well as legal norm that
has been formulated as well as implemented by parliament. The unique characteristics of this
system is that it has no formal codification. Common legislation in English Law is that it is
formulated by Judges sitting in courts and applying Statues and legal precedent from existing
lawsuit. Supreme court in UK has high decision making authority. Some judgement are
generated from, legislations. Whereas common law are dependent on judgement of existing
cases. For instance, Murder is crime that comes under common law that is developed by the act
of parliament (Allen and Kraakman, 2016) Parliament has the authority to make amendments or
repealed. There has been changes in criminal law, as murder criminal are given mandatory life
sentence rather than death penalty. During 17 and 18 centuries merchant law that is the
international code of mercantile customs was absorbed by common law. In 19 centuries the
complete English legal system was regenerated by legislation. It has great impact on the offences
that has been reduced to the greater extend. The other unique characteristics of English law is
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that the final decisions of court develop constricting origin of law. That can be used for making
future decisions. Judge of the court is only bounded by superior court decisions not by the
inferior court. Categorization of English law. The English legal system can be categorise into
Criminal and civil law. The criminal laws are associated with offences that are conducted by
criminal against society. This types of offences are generally considered as big crime. Civil law
is generally related to the conflicts between private parties such as between consumers and
organisation, employer and employee, retailer and supplier. Such types of disputes may lead to
damages. The things that are considered illegal under civil law include torts that involve
negligence, defamation, breach of contract or agreement etc.
The major source of English legal system are Statues, common law and legislation that
has been formulated by European Union. Statues are developed from parliament and devolved
parliament. For Instance Employment right Act 1996.Development of statues the initial point is
usually a consultative document. Then the next is drafting of proposals and presenting bill in
front of parliament. Common legislations are originated from principles formulated in law suit
over the centuries during the standardisation of law that prevail throughout England and Wales.
Case legislation is generated from decision making by judiciary (Bodie, Kane and Marcus,
2014.)
Comparing and Evaluating the English Legal system with European model
There are various basis on which The comparison between English legal system with
European model can be made.
Legal system – The Feature of European Civil law is that its basic principles are codified into
system that is referred to as referable, it acts as the primary source of law. On the other hand the
unique characteristics of English legal system related to civil legislation is that it has no formal
codification. The legal system in Europe is defined by case law, which is formulated by judges
that influenced by decision of courts and various similar tribunals. In English legislative system
the final decisions of court related to common law develop constricting origin of law. That can
be used for making future decisions. Judge of the court is only bounded by superior court
decisions not by the inferior court. Categorization of English law. The English legal system can
be categorise into Criminal and civil law.
Functions or role of judges- In European legal system, judge act as chief investigator. The major
role of magistrate is to develop various rules that are non- binding to third party. In civil legal
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system the function or duty of judge is to set up the facts of law suit and to refer the provision of
the applicable code. Formal charge are often bought by the magistrate. Whereas in English law
system magistrate is bound by the decision of superior jurisdiction. In English legal system , the
role of judges is to make amendments in various legislation and to develop various code of
conducts related to common and civil law. It is the duty of lawyer to make presentation to the
magistrate and examine witnesses themselves (Cameron, 2017)
Jury opinion-In case of legislation related to civil case the opinion of the judge may not be
binding. Juries are required in case of criminal law suit they do not have involvement in civil
cases. It is the duty of magistrate to ensure that legislation prevails over passion. On the other
hand In English legal system juries consists of only layperson. In very rare cases, advocates are
employed to make decision related to non-criminal matters.
Identifying various stages that bill must go through before converting into Act
The various stages that bill has to pass through are in initial stage notice has to be drafted
in order to introduce and present notice on order paper. The next step is creation of bill by
committee, presenting bill and facilitating initial reading, seeking advice and suggestion from the
committee before preceding second reading. The next step is report stage in which document is
presented for third reading that includes passage. Then bill is present in front of Senate. After
that various amendments are to be made then last stage is converting bill into Act.
Impact of various legislation on business
Employment law provides individual right to leave job for child care and right to demand
for flexible working hours. The other law related to employment are National minimum wage
and working time regulations. National minimum wage act states that every employee should be
provided with wages according to their job profile and work. Working time regulation provides
right to take 28 days paid holidays and attempts to limit excessively long working hours. In
addition to this the various other legislations are Health as well safety, Dismissal, Discrimination
and grievances etc. All These laws have great effect on the business success and growth. These
Acts have great influence on the human resource practices and various policies as well as
strategies formulated by personal manager (Hartono, 2014.)
Besides Employment act, laws related to consumer have great effect on the sustainability
and growth of firm. It also has great influence on enterprise brand value as well as market share.
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The various legislation related to consumers rights are sales of good, regulation related to
distance selling, competition law and abuse of dominant market position. If organisation fails
things that are asked by consumer such as description of goods good quality products, deliver of
satisfactory value for item etc. the customer has the right to ask fore refund. If in case the refund
initiated by company then the buyer has the right to file law suit against such enterprise
(Koehn,2013) The various legislations such as Employment law, discrimination Act, minim um
wage has great effect on the human resource policies as well as strategies of firm. It has great
impact on the self employment process. As if the person chooses to be recognized as such, or is
generating income such that the person is required to file a tax return under legislation. These
laws have great influence on employee and employer relationship. Employees can organize into
trade or labour unions, which represent the work force to collectively bargain with the
management of organizations about working, and contractual conditions and services.
TASK 2
Outlining the main types of organisation
There are various types of organisation that need to follow different rules and comply
with various regulation at the time of establishing business.
Sole Trader company-In such type of organisation owners generally have unlimited liability.
Sole trader firm are simple to operate. It requires fulfilling of fewer duties. These form of
organisation generally needed small set up and administration. Registration of such company is
not required but it is required by entrepreneur should provide notification to HMRC. Sole trader
organisation is not to be considered as legal entity in its own right (Lyons and et. al., 2016.)
Requirement for establishing Private limited company are it is essential for organisation to at
least one director. The business entity must have its registered office in UK. It is essential for
organisation to comply with various regulation that are developed by government. Sole trader
firm is required to issue at list one share at the time of incorporation.
Partnership- Partnership organisation consist of minimum two parters. These people have
responsibility to establish, manage and control business and its activities. The responsibilities
and profit generated by business are shared by partners. Partnership firm are require obtaining
permit. It is the responsibility of each partner to pay tax on their share. Individual has to select
name for partnership organisation and them facilitating partnership agreement with the partner.
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The third step is to register company with HM revenue and customs. The nominated partner are
accountable for filing tax returns and managing business records (Park, 2012)
The role of director is to focus on executive remuneration, to fulfil non-financial
reporting requirement, facilitating payment practices etc. Directors of the company are not only
accountable for to internal stakeholders but are also liable to fulfilling external stakeholders.
Salmon and Salmon is a organisation in UK. The effect of the House of Lords'
unanimous ruling was to uphold firmly the doctrine of corporate personality, as set out in the
Companies Act 1862, so that creditors of an insolvent company could not sue the company's
shareholders to pay up outstanding debts.
TASK 3
Explaining the role of Alternative dispute Resolution.
Conflictual matters in England as well as Wales are usually settled after an adversarial
procedure either by magistrate in courts or by arbitrator. Litigation is defined by wide ranging
and well detailed code of conducts that can make conflict resolution mechanism complex, time
consuming and expensive procedures.
Alternative conflict resolution mechanism provides a wide range of options to solve
dispute in effective as well as systematic manner. The following methods are mediation, Expert
determination, adjudication and negotiation (Scholes,2015)
Mediation is the most frequently used tool. In mediation method, conflicting parties take
support of mediator in order to access negotiated agreement to resolve various differences or
misunderstanding without going or applying case in court. The role of mediation is to assist
conflicting parties to develop private as well as constructive environment for managing,
negotiating, facilitating discussion to draw ultimate solution for resolving conflict. In case,
agreement is reached to conclusion and signing of documents, this is the duty of mediator to
provide parties with mediation settlement enforcement order (Siedel and Haapio, 2010)
Arbitration is the method preferred dispute resolution mechanism for international
parties. The Arbitration act 1996 are applicable to both local and international arbitration. The
conflicting parties or Arbitrator, to fall within scope of Arbitration Act has to present evidence in
writing. It is the role of Arbitrator to identify the reason of conflicts by making discussion with
both the conflicting parties. It is the duty of Arbitrator to provide effective solution and issue
decision that may include award of money. Arbitrator or arbitral tribunal must decide a dispute in
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accordance with the law, including equity, and may order specific performance, injunctions and
other equitable remedies
Negotiation is considered as a small group procedure in which person exchanges
messages with other person , outlining the attitude that individual considered as supporting or
hindering his or her own performance at workplace. Negotiating method is useful in dealing with
various complex situations such as high value sales and politics at global level. In negotiation ,
leader has basically two roles , that is to facilitate coordination between team and provide them
platform to make discussion with each other (Stewart and et.al, 2014)
TASK 4
A solicitor are generally the lawyer. They have to perform various functions as Solicitor
have to provide legal advice on non- contentious matters. Individual acting as solicitor can act as
representative or agent in commercial transactions. They have duty to provide legal advice and
represent organisation in relation to disputer that company have with another party. It is the
function of solicitor to manage the case (Storey, 2016) It is essential to include a barrister in the
case, solicitor will "brief" the barrister by sending him/her all the important documents and
information
Solicitor may also actually have to represent individual party in court, although in the
High Court and the Supreme Court, a barrister will usually be engaged (Cameron, 2017)
Alternative sources of Legal Advice
Citizen Advice Bureau-It consists of a network of approx.315 independent charitable
organisation throughout United Kingdom , that provides confidential information and suggestion
to help people in terms of money, legal , and other issues. The objective of citizen advice office
is to improve the policies and principles that has great impact and influence on people.
Neighbourhood Advice centres-Such type of institution provides information related to
immigration, welfare advantages, Housing as well as debt for people living (Jones, 2017)
CONCLUSION
It has been concluded from the report that various laws and policies framed by act of
parliament has great impact on the growth, sustainability, profitability and growth of business.
There are some laws that companies has to comply with when establishing their business. The
requirement of organisation to follow various laws may vary according to the nature of business.
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It has been concluded from project that bill has to pass through various stages in order to become
Act.
There are many methods has been suggested by project that can be used by organisation
or conflicting parties to resolve various disputes.
REFERENCES
Books and journals:
Allen, W. T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Bagley, C. E. and Dauchy, C. E., 2011. The entrepreneur's guide to business law. Nelson
Education.
Bodie, Z., Kane, A. and Marcus, A. J., 2014. Investments, 10e. McGraw-Hill Education.
Cameron, P., 2017. International Energy Investment Law: The Pursuit of Stability. OUP
Catalogue.
Hartono, I., 2014. State-Business Relations in Post-1998 Indonesia: The Role of Kadin. Bulletin
of Indonesian Economic Studies. 50(1). pp.132-133.
Koehn, D., 2013. East meets west: Toward a universal ethic of virtue for global business. Journal
of Business Ethics. 116(4). pp.703-715.
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Lyons, M. and et. al., 2016. Erratum to: Pro-Poor Business Law? On MKURABITA and the
Legal Empowerment of Tanzania’s Street Vendors. Hague Journal on the Rule of Law.
8(2). pp.429-429.
Park, W. W., 2012. Arbitration of international business disputes: studies in law and practice.
OUP Oxford.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Siedel, G. J. and Haapio, H., 2010. Using proactive law for competitive advantage. American
Business Law Journal. 47(4). pp.641-686.
Stewart, D. and et.al, 2014. Native American Cultural Capital and Business Strategy: The
Culture-of-Origin Effect. American Indian Culture and Research Journal. 38(4). pp.127-
138.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Cameron, P., 2017. International Energy Investment Law: The Pursuit of Stability. OUP
Catalogue.
Jones, L., 2017. Introduction to business law. Oxford University Press.
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