Business Law Report: Analysis of Business Law and Legal Solutions

This report delves into the intricacies of business law, focusing on the English legal system, employment, and contract law. It explores the sources of law, the nature of the English legal system, and the role of the government in law-making. The report analyzes the impact of employment and contract law on businesses and suggests legal solutions for resolving business problems, including recommendations for the legal system and relevant frameworks. It emphasizes the importance of the Companies Act 2006, particularly concerning directors' duties and financial disclosure to stakeholders. The report provides insights into the legal obligations of businesses, highlighting the significance of compliance and the potential consequences of non-compliance. It also recommends the importance of financial transparency and the need for businesses to provide stakeholders with adequate information regarding financial performance. The report concludes with a discussion on the importance of a fair commercial environment in the legal system and the significance of judiciary effects in managing business operations.

Business Laws

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Explanation of sources of law and nature of English legal system.......................................1
P2 Identifying the role of government in law making.................................................................2
P3 Analyzing the way employment and contract law have effect on business...........................3
P4 Suggesting the legal solution for resolving the business problems........................................4
P5 justification in context with proposed legal solution..............................................................4
P6 Recommending the legal system of country and relevant framework...................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Law can be determined as a structure that is fixed so that people can be protected from
any type of discrimination. Further, it is recognized as mercantile legislation that can either be
designed by government or parliament in a country (Mann and Roberts, 2011). There are
different type of issues of problems faced and all these can be solved when appropriate policies
or laws are developed. The type of laws that are followed at other countries differs and these are
created so that all the situation because of which individuals face problems can be solved. This
report covers sources of law and nature of English legal system. Further, it covers identification
for the role of government in law making. Lastly, it also includes justification in context with
proposed legal solution.
TASK 1
P 1 Explanation of sources of law and nature of English legal system
In accordance with the general concept of legislation, main reason due to which norms
are designed so that basic structure of society can be maintained. This way, solution is provided
to the problem faced by business entrepreneur who run the business in effective manner. In
situations when any of the firm fails to comply with norms or law, then they can face legal
obligations like paying penalties, etc.
People who had legal authorities in British legal system were the one who formed
English law. Further, the legislations in in English legislative system is developed by the people
from government in Union nation that enables to govern and regulates various tasks of
organizations that operate in England and Wales (Kubasek, Browne and Barkacs, 2015).
Violations for the legal rules in English legal system is identified and considered by court or
justice and law. There are three major types in which the English law system deals and they are
as follows:
Common law These types are norms are formed by judge on the
basis of decision taken by magistrate in existing
law suits.
Secondary
legislation
These kind of norms are designed by
representative of primary legislation authority.
Some examples of secondary legislation are
1

national assembly of Wales act, Ireland Act etc.
EU law Convention of human right this is the act in
English legislative system which is influenced by
the laws in European union. It is considered to be
an important norm which is required to be
followed by all companies operating business in
England and Wales (Melvin and Katz, 2011).
Primary law These form of delegated law are designed by the
deliberate assembly of the country. Such types of
norms are influenced by the several laws formed
by government in Scotland. Legal authority in
Parliament has authority to issue secondary
norms. Public Act, privy council are some
primary; laws in legislative system of England.
Legislation These are the norms which are automatically
originated by act of parliament.
Apart from this, there are two other laws that business require to consider at the time of
naming, establishing and at the time when business operations are carried out. These are
corporate law and company act.
P2 Identifying the role of government in law making
In order to develop a law, there are many steps and procedure that are needed to be
considered by government at each phase. In this context, below given are the stages that are
involved in development of law:
Information regarding government agenda: This is a type of phase in which from nation
all the legal authority conducts survey and collects details regarding the problems that are faced
by the companies or individuals of the society (Bagley, 2010). When problem is identified, then
appropriate steps are taken so as to overcome them.
Preparation of proposal: When first phase is completed, then government proposal is
prepared that consists of the details regarding the issue and solution that can be implemented.
2

Proposal to bill transformation via parliamentary counsel: When proposal is developed,
then it is presented by functions of legal authority in front of small councils.
Introducing bill in parliament session: When the proposal or bill is approved by legal
authorities for the working of small level, then it is sent for further processing and then it is
converted into a bill. Further, it should also be forwarded to members in parliament.
First, second and third reading: As per this phase, this is the responsibility of legal
authority to make sure that bill is presented for first reading in the House of Lords (Folsom,
Gordon and Van Alstine, 2013). When first reading is done, then as per the function of
government is to make necessary changes are made. These changes are done as per suggestion or
advice that are given by the members in parliament. When these process is done and amendment
is passed, then bill is presented in second reading. In the process of second reading short debate
taken place in order to make the bill implement. Then the legal authority will send the bill for
inspection in which effectiveness is measured.
Approval of bill: When inspection is done and result is declared, then bill is presented for
third reading. This phase, decision regarding enforcement and voting also taken place. In
situation when it is not approved by parliament, then they take up solution to solve them.
P3 Analyzing the way employment and contract law have effect on business
With the help of contract law, it governs relationship between parties. In accordance with
the norms, it is important for the parties to enter into a legal binding contract. All the parties
involved to comply with all the terms and conditions that are included. In situations when any of
the parties fails to meet the terms, then these are type of condition in which the contract gets void
(Manafy and Gautschi, 2011). With respect to employment contract act, it is required that
employee and employers need to perform their set of roles and responsibilities in appropriate
manner in accordance with the agreement signed. Further, it can also be stated that employment
contract has significant influence on relationship. Among company and its stakeholders. Apart
from this, employment legislation has high impact on practices of human resource practices. All
the laws that are being provided by the firm should be followed and these are develop
maintaining the interest of workers and business.
3

P4 Suggesting the legal solution for resolving the business problems
In accordance with the nature that private company holds, it is limited to equity and
shares that is facilitated among the society. In this context, it has appropriate gains and it also
enables to firm to attain their set of goals and objectives. With this respect, there are different
type of laws like Insolvency Act 1986, Companies Act 2006, etc. that are governed by English
legal authorities (Vagts, Koh and Buxbaum, 2015). This way, the main focus or motive of
government is to develop trade practice and legal environment. In accordance with the case, CP
is focusing on to operate sole trade in the market. In spite the firm is small, it is growing
tremendously. Thus, it increases the capital of the organization and will also get suitable
economic structure as their level of funding can be generated with the help of equity investment
that provokes better funding operations. Further, it is also important for the organization to plan
for dividend policies that are helpful enough to satisfy investors as it they have legal solutions.
Within the business, financial and operational governance for the business is required to
determine proper understanding for director’s duties. It is the responsibility of directors to make
payment to stakeholders before payments are made through turnover that are obtained in due
time (Cheeseman, 2014). This falls under Company Act 2006 section 171 to 177. In situation
when equity holders are not conveyed regarding the financial data and dividend payments, then it
can be considered as breach of duties of directors. Both CP and BF should present details
regarding financial performance to their shareholder so that smooth running of business is
possible. This will be helpful for new and existing equity holders. In situation, when firm
becomes insolvent, then it is the responsibility of directors to make first payment to their
shareholders.
P5 justification in context with proposed legal solution
In accordance with the case given and for the issue that are faced, cited firm should make
changes in relation with the changes into operations so that effective working environment can
be developed (Mann and Roberts, 2011). As per Companies Act 2006 under section 171 to 177,
in situations when equity holders do not have disclosure of financial aspects and dividends paid,
then it becomes breach of duties from the side of directors. This way, stakeholders can claim for
the same from directors. Further, it is suggested to both CP and BF that they should provide
appropriate financial information to their stakeholders on periodic basis. As a result, it will be
4

build up satisfactory trust among individuals involved with the firm. Apart from this, appropriate
steps are taken in which firm is required to make registration under Companies Act 2006. This
way, it enables to provide and support the business to get most satisfactory legal solution for the
problem that are faced by the business. Trust is developed only when all the people who are
considered to be the stakeholders should be proper understanding about the financial
performance that are made by the firm (Kubasek, Browne and Barkacs, 2015). When all the
information are conveyed to stakeholders, then it becomes helpful to develop trust and
confidence. In situations when there are organization becomes insolvent, then all the debt that are
focused should be paid first to stakeholders. This way, it issues that are faced can be solved in
appropriate manner and the terms are maintained.
P6 Recommending the legal system of country and relevant framework
On the adverse of the English legal system which comprises with the carious laws and
legislation's and judicial solution's to the community (Melvin, and Katz, 2011). Thus, in
accordance of rights with the working practices of several Courts, Tribunals and administration
which can be stated that it intention of controlling and managing the legal environment in the
country. Even so, there can be
Adequate control over the businesses for sporting and fair commercialism activity and preparing
the correct financial disclosure. On the other hand, to have carrying into action over the crime
and relevant activities the judiciary effects plays a significant role in managing the operation of
the business. More over, there are many practices n the country such as residual freedoms to
citizens which is greatly influenced by the legal solutions as it is enforced by the parliament of
the country. It is mandatory for any business to provide satisfactory and adequate working
environment to the citizens which are living the country. Likewise, there are many bills and
various documents which are prepared under the commission to protect the rights of human and
evaluating suitable solutions for people. There are immense amounts off debates and arguments
when the bills are passed through different stages. It consists with the determinants of the
different MP’s and committees members who examine the potential utility of the bill and who it
will be effectual in defeating any difficulties of providing the legal solutions. Besides this, the
bill is passed by the Royal Ascent after accomplishing of various arguments and debates as there
5

will be the determinants of HMRC in preparing the legal significance of the laws and legal
solutions to any troubles (Vagts, Koh and Buxbaum, 2015).
CONCLUSION
In accordance with the file, it can be stated that there are different type of changes that
that take place in operational activities of the business. These are effective enough for the
professional to have legal solution for the issues that are being faced. Further, there are
discussion regarding implication of judgment and laws towards the business operations. In
accordance with the case, firm need to focus on developing strong relation with their
shareholders. This is possible when they are able to be transparent for the financial performance
that are made by the firm.
6

REFERENCES
Books and Journals
Bagley, C. E., 2010. What's Law Got to Do With It?: Integrating Law and Strategy. American
Business Law Journal, 47(4), pp.587-639.
Bhatia, V. K., 2014. Analysing genre: Language use in professional settings. Routledge.
Cheeseman, H. R., 2014. The legal environment of business and online commerce. Pearson.
Folsom, R. H., Gordon, M. W. and Van Alstine, M. P., 2013. Principles of international business
transactions. West Academic.
Kubasek, N., Browne, M. N. and Barkacs, L. L., 2015. Dynamic business law. McGraw-Hill
Education.
Manafy, M. and Gautschi, H., 2011. Dancing with digital natives: Staying in step with the
generation that's transforming the way business is done. Information Today, Inc..
Mann, R. A. and Roberts, B. S., 2011. Smith and Roberson’s business law. Cengage Learning.
Melvin, S. P. and Katz, M. A., 2011. The legal environment of business: A managerial
approach: Theory to practice. New York: McGraw-Hill/Irwin.
Vagts, D. F., Koh, H. and Buxbaum, H. L., 2015. Transnational business problems. West
Academic.
7