Business Law Report: UK Business Law, Legal Solutions and Impacts

This business law report provides a comprehensive overview of key legal concepts and their practical applications within the UK context. It begins by identifying various sources of law, including common law, statutory law, and EU legislation, emphasizing the importance of these sources for businesses. The report then explores the role of government in lawmaking, detailing the processes of creating both statutory and common law. A significant portion of the report examines the impact of contract, employment, and company law on businesses, highlighting potential effects on business operations and the legal obligations of organizations. It further analyzes the effectiveness of the legal system, particularly in the context of current reforms and developments. The report also provides legal solutions for a range of business problems, justifying these solutions and evaluating their positive and negative impacts on organizations. Finally, it considers legal solutions based on different countries' legal systems, comparing the effectiveness of various recommendations. The report concludes with a summary of key findings and recommendations related to business law principles and their practical implications.

Business Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P1 Different sources of law and legislations that are required to be followed by organisation..3
M1 Effectiveness of Legal system in context of current reform as well as development...........4
P2 Role of government in lawmaking and how statutory and common law is applied in courts.
.....................................................................................................................................................4
TASK 2............................................................................................................................................6
P3 Identifying the way contract, employment and company law has potential effect on
business ......................................................................................................................................6
M2 Differentiating and examining the potential effect of standard, regulation and legislation
on organisation............................................................................................................................7
TASK 3 ...........................................................................................................................................8
P4 Appropriate legal solution for range of problems faced by companies................................8
P5 Justification related to above suggested solution ..................................................................9
M 3 Positive as well as negative effect of legal solution on organisation.................................9
P 6 Legal solution based on a different country’s legal system...............................................10
M 4 Contrasting the effectiveness of these recommendations..................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
1

2

INTRODUCTION
Business law is a combination of all the laws that provide guideline to operate the
functions of the business, laws are based on certain norms and regulations and it is compulsory
for the organizations to follow them in order to perform business activities effectively and
efficiently. Administrative regulations are included in business laws along with federal and state
laws. This report is based on the various sources of laws, role on government in law making,
effectiveness of the legal system and impact of contract law on organizations. This report also
lay emphasis on the legal solutions of the business problems.
P1 Different sources of law and legislations that are required to be followed by organisation
Law is defined as a set of rules that is developed by government or legislation in order to
correct the procedure. These set of regulations are to be followed by all the people in the country.
Business law is defined as the set of rules that are to be followed by the individual who is
establishing new company, conducting business activities or facilitating commercial transactions.
It assists business entity in developing the understanding about the way several legal principles
can be applied in business. Business law also help entrepreneur in identifying the various factors
that might have effect on organisation. The several legislations are developed by government in
order to assist companies in resolving business related or commercial issues. Legislation is law
that is formed by a legislature. Objective behind development of norm by legal authority is to
ensure fair trade practices in the country. Regulations and norms help in ensuring the fair
competition among firm operating in same industry. The legislation in UK is originated mainly
from five sources these are: common legislation, constitutional law, treaties and administrative
legislation. In addition to this, some norms in UK are influenced by the EU legislative system.
The major as well as important source of legislation is Act of parliament.
Legislation-This is the law which is developed by legislature. Legislation is considered to be the
most significant source of law which is originated by the act of parliament. Supreme Court in
UK is the primary or chief legislature in the parliament of UK which has the authority to pass
legislation which is to be implemented in the country. Such types of legislations are applicable
only to that country in which it is passed.
3

Common law-Such types of law are formed by the judge in the supreme court on the basis of the
judgement made by other magistrates in existing law suits. These norms are applicable to
organisation operating in different industries.
European Union law- After the Brexit, the government in UK has decided to create their own
norm. But still, some laws in UK are influenced by some legislation in European legal system.
Statues- The major source of employment legislation is statue which is originated from the act of
parliament and the regulations issued by ministries under the Acts.
European convention of human rights- As earlier UK was the member of European Union, the
UK is a signatory to the European Convention on Human Rights. This legislation is implemented
in all the country to protect the rights of employees or worker. It is essential for the companies to
follow this legislation, it will assist business entity in eliminating legal obligation which might
have negative effect on growth as well success of firm.
Delegated legislation-This type of law enables other tribunal to delegate power of law making.
M1 Effectiveness of Legal system in context of current reform as well as development
The purpose of several norms in English legal system is to maintain the economy and
control the inflation in price of goods and services. As there is the development and growth in
the economy, government has decided to emphasize on the improving the living standards of
society and support community in its development. The rule of game involves legal regulations
that are to be followed by people in the country. New legislative reforms are based on the fact
that legal institution plays important function in growth of the nation.
P2 Role of government in lawmaking and how statutory and common law is applied in courts.
Government plays very significant role in constructing and implementing laws and
regulations. As it is the ruling unit of the country the specifications which are applied by the
government need to be followed by the others (Asimow,2016). Law making process is very
critical and time consuming as it goes through various stages. Details of the government agenda
is selected through general election, issues and problems are then identified by the political
parties during meetings and than for joint operations negotiations are being implemented. Than
all the members who are present their lay stress on the identification of the issues, by conducting
appropriate consultation from the higher authorities of the government like ministers, board
members etc. the proposal which is being presented by the parties must be based on the social
4

factors and structures than the proposal is converted into a bill, as soon as bill is constructed, it
ready to be presented in the parliament session, than a bill goes through three stages of reading;
first reading, second reading and third reading phase as after the process of reading the final
consultation is occurred for bill regarding any kinds of changes and modifications, than bill is
moved to house of commons and house of lords for further approval, than after getting approval
from both the houses the bill is send to queen for royal consent and for its transformation into
law (Gostin, 2016.).
Common law: It is that body of law which is derived from the decisions and judgements
which are being applied lately on the similar cases. The main significance of the common law is
that it works in a form of example for other judgements and decisions. There are some cases
where parties disagrees upon the decisions which are being implemented than in such cases
judges needs to analyse the decisions of similar cases and evaluate the implementations of past
cases with the present facts.
Application of Common Laws in Justice Courts: The basic criteria of the common law is that
they are based on the continuous repeating factors. As per the case, the judgement is
implemented by the legal documents that are being presented in-front of the court. Whereas the
structure of the case law in each and every part of the jurisdiction (Solove, 2014). The criminal
cases are handled by house of lords and court of criminal division and the punishments are
asserted as per the potency of the crime. Common laws and being implemented on the basis and
decisions of previous sessions of the court whenever the parties are disagreed upon the decisions
which are being implemented by the court.
Statutory laws: Statutory law is a set of written and well defined laws. These laws are
constructed by the federal government, these laws are used for the specific purpose, these are
generally executive body of the legislation. These laws are generally different from the
administrative and regulatory laws, administrative law is defined as laws which are used to
administrate the agencies of the government.
Applications of Statutory Laws in Justice Court: These are the written set of the laws
and used for some specific purposes, these laws encompass under some specific bodies of the
legislation(Wei,2017). These laws are generally different from the administrative and regulatory
5

laws, in this the law is passed by the parliament house for the approval and use certain secondary
instructions like secondary rules and regulations as use it as statutory measures. For the
approval , United Kingdom states code and some rules and regulations are added by the local
government also. In legal framework of UK, there are number of laws for properties and trustees,
it is essential to reform the structural implementations of the statutory laws (Scalia, 2018.)
The applications of the common law is different from the statutory law, as common law
is based on the certain set examples and their implementations. Statutory law is written set
ofSolove, D. J. 2014 laws which are bing used for specific purposes and circumstances. Statutory
law is the formal body of the legislation which is based on the strict rules and regulations of the
legislation (Sivarajah, 2016).
TASK 2
P3 Identifying the way contract, employment and company law has potential effect on business
Employment also states that it is the responsibility of employer to provide healthy and
safe working environment to employees. As workers in an enterprise can file law suit against the
employer for the negligence, if in case employee have proof of damages or losses suffered by
them due to ineffective or inappropriate practices, then in such situation this factor might have
negative effect on the brand image as well reputation of company. If the employer fails to fulfil
the needs as well as demands of worker in such case this fact can have adverse impact on the
relationship between employer and worker. Norms that govern terms of employment has direct
effect on the culture as well as environment in an enterprise. Failure to comply with employment
law , it may give rise to several other business issues such as this fact can have impact on
discipline, rise in bullying and harassment cases, discrimination among employees, conflicts etc.
All these problems have direct effect on business activities as well as productivity. In addition to
this these issues have negative impact on the profitability of firm. Legislation which governs
employment terms has direct impact on the policies, procedures developed by human resource
manager in order to manage or treat employees. For instance, Tesco Company has to face legal
obligation and there is threat to sustainability of organisation, as employees in cited business
were treated badly. The human resource management team in Tesco was forced to bring
improvement in their policies as procedures.
6

Company legislation, these laws have direct as well as significant impact on the business
plans, policies, strategies, system and practices. Company law is developed by government
which is to be followed by individual when starting up of new venture, managing business or
when facilitating business transaction. For instance, Tesco Company has failed to comply with
this law due to which the cited business venture has to suffer long term losses which has direct
effect on the sustainability of firm.
Contract law, this legislation has direct impact on the commercial relationship between
parties. This legislation is required to be followed by the organisation such as Tesco which is
engaged in several business activities such as selling goods or services, facilitating transaction,
etc. The law of contracts include in transactions refer to types of services or products are being
sold and purchased as well as the prices. Legally bounded contract allows parties to file law suit
against other person in contract, if another part fails to complete their task as per terms in
contract. Failure to comply with the terms as well as condition in the contract, this factor may
have negative effect on the reputation of the parties. It may lead to obligation on the organisation
or individual who has failed to comply with the terms in agreement. The contract legislation
increases the level of certainty in business relations and gives a party more confidence that their
work will be done on time. Failure to cater the requirement of terms as well as condition in
contract can have negative effect on the financial stability or performance of organisation which
has failed to fulfil their roles as well as responsibility as per contract signed. This fact may
further lead to increase in the chances of uncertainty in business. This is the reason, it is required
by firm to seek advice or suggestion from lawyer or expert before signing a contract.
M2 Differentiating and examining the potential effect of standard, regulation and legislation on
organisation
Standards are formed by manager in the company with the objective of supporting Tesco
Company in improving the quality of products or services. These benchmark provide manager a
chance to compare the quality of goods or services and plans appropriate tactics to improve the
same. It helps employees in identifying the basis according to which workers have to execute
their task within an enterprise. Standards assist business entity in maintaining as well as
enhancing the quality of products.
7

Regulation, these are developed by human resource manager for maintaining the
discipline, healthy and safe working environment in an organisation. These codes of conduct are
formed by human resource manager by analysing the situations. Regulations are created with the
intention to motivate employees to improve their performance and quality of work within a
company.
Legislations are defined as set of regulation which are formed by the government in order to
ensure the fair commercial practices by companies operating in different industries. The various
laws which are to be followed by organisation are health and safety act , employment law, wage
act etc. As these norms have direct as well as significant impact on the several aspects of
business. Legislations support an enterprise in identifying appropriate as well as legal solution to
several problems faced by organisation ( Beatty, Samuelson and Abril,2018)
TASK 3
P4 Appropriate legal solution for range of problems faced by companies
Termination of contract- The contract law provide individual a right to claim for losses or
damages for losses that has been suffered by individual due to termination of contract by other
party in contract. For instance, Dan is a person who has entered into the contract with builder for
constructing the building. Both the parties has form the both oral and written agreement. As per
the contract, Dan has agreed to pay sum amount of money in advance and remaining money after
completion of the building. But after some time, the builder has stopped the work without
informing Dan. As per the term in contract , builder is required to inform Dan about the reason
for not executing the work. But builder has failed to do so. Now the remedy avail with that is
provided by contract law to Dan is that He can file law suit against builder. Another action that
Dan can take is give builder another chance to perform his duty. The third remedy available with
Dan is that he can demand for losses suffered by him .Last final solution to problem is entered
new contract and specify the time of completion of project as well as specify the consequences of
failure fulfilling terms and condition in contract. The suggestion to both the parties that They
should form the legally bounded contract.
Rescue from insolvency and liquidation-The suggestion to firm facing the situation of insolvency
that cited venture should plan to form joint venture with financially stable company dealing in
same industry. Another legal advice is amalgamation , merger with other organisation in same
8

industry. Other recommendation is that an enterprise should close and sold to other. After with
the money , entrepreneur can plan to open new start up. Legal solution to business venture is that
the company should repay it debts before closure. Firm can utilise or sell its assets for making
payment to creditors. It has been suggested to manager of such firm to appoint liquidator for
distributing assets to the creditors (Guerrina and Masselot, 2018)
P5 Justification related to above suggested solution
In above case of Termination of contract , The advice provided to Dan is that He should
enter into a legally bounded contract. As this activity will assist dan in ensuring the completion
of work on time. The other legal advice given to Dan is that He should give builder a chance to
perform their remaining task. This is the effective solution as it will help both the parties in
redeveloping and maintaining their relationship. Dan will not have to suffer additional losses and
cost which is involved in searching as well as entering into a new contract with another builder.
Another legal advice given to Dan is that when entering into a new contract he should clearly
specify the time as well as consequences of failure to comply with terms in contract. As this will
help both the parties in eliminating legal issues and it will assist in getting the project completed
on time. The other legal suggestion provided to Dan is that He can file law suit against the
builder. As this will help Dan in claiming or recovering the losses suffered by him due to another
party failure to fulfil their role as well as responsibility as per the contract.
In another case scenario related to insolvency and liquidation , it has been suggested to
xyz limited that company should form joint venture with another organisation dealing in same
industry. As this will help business entity in improving the financial performance. Amalgamation
and merger is another legal advice given to organisation facing the situation of insolvency that it
should focus on reducing the expenses. This strategy will help firm in bringing financial stability.
The other suggestion provided to company is that business venture can repay its debt by selling
the assets of company. This is the effective solution as this will aid firm in elimination further
legal problems. It has been advised to manager in an enterprise that he should appoint liquidator
for distributing assets to creditors. As this will help business entity in ensuring effective as well
as efficient use of financial resources which further can be utilised for starting up of new
business (Clarkson, Miller and Cross, 2014)
9

M 3 Positive as well as negative effect of legal solution on organisation
Legal solutions provides company a chance to identify appropriate or effective solutions
to the problems faced by organisation. It helps manager in keeping
themselves update with the current employment as well Health and Safety legislation. Legal
advice support manager in recognising the suitable techniques or strategies that can be used by
firm for eliminating same business problems in the future. It aids firm in preventing legal
obligation which can have adverse effect on the image or reputation of company. Legal solutions
helps organisation in maintaining performance during complex situation. It assists an enterprise
in protecting business interest. Legal solutions offers a wide range of options that can be selected
by manager in business venture for handling critical as well as difficult situations. It also
provides firm a chance to recover some portion of losses or damages that has been suffered by
company due to several commercial issues. Legal advice is the appropriate as well as effective
way to resolve business related issues without going to the court. These solutions allow
organisation to resolve commercial problems without hindering business relations. It also
supports company in increasing the chances of certainty.
Limitation or disadvantages of legal solution
Many of the legal advice such as litigation , negotiation etc. may have negative effect on
business decisions and operations. Seeking a legal advice and implementing the same may be
time as well as time consuming which further may have adverse impact on the financial
performance as well as stability of firm. Few legal advice such as going to the court for resolving
commercial issues may have negative effect on the business relations (Teti, Abbott and
Cavatorta,2018)
P 6 Legal solution based on a different country’s legal system
In UK the parties facing the commercial issues can seek legal advice from the solicitor.
As he is person who has duty to provide legal solution to people and support parties in
identifying appropriate solution to their problems. Each hand every party facing problem has the
right to appoint their personal solicitor. Who will be responsible for presenting the problem in
front of judge in the court in order to obtain appropriate decision on specific subject matter.
Solicitor is a person who is accountable for providing evidences or other legal documents. Duty
of solicitor is to provide essential information and documents to the party. Role of solicitor is to
10

advice the action which is required to be taken in process in order to reach some decision or
solution.
Citizen advice bureau- These institutions can be easily found in every country. Objective of
establishing this type of institution in nation is to provide people an ease to access legal advice
and support in order to resolve several business related issues. Citizen advice office offers free
legal advice to people on subject mater related to money , customers and other problems faced
by organisation or citizen in the country. Purpose of the institution is to provide useful as
beneficial advice.
Neighbourhood Advice Centre- The function of this type of institution is to provide confidential,
free as well as impartial suggestion related to welfare benefits, debt issues, welfare benefits and
immigration. Entrepreneur who is planning to expand business can seek legal advice from these
institutions. As this activity will help enterprise in identifying the situation of market in different
countries which will further support manager in development of effect expansion strategy. There
are approximately 32 legal advice centres in the country.
Community legal centres- These institutions deal with all major areas of law and delivers
services to people or organisation located in specific place or location. The aim of these
institutions is to recognise the needs as well as demands of specific client group like refugees and
render services to fulfil the same. Community legal centre consist of expert and highly qualified
support staff,legal advisers and solicitors. It helps the people in developing understating about
the rights and obligation related to the specific subject matter. Community legal centre provides
the action or remedies that can assist organisation or people in resolving their issues or problem
(Christensen, Onul and Singh,2018)
M 4 Contrasting the effectiveness of these recommendations.
The suggestion of appointing Solicitor or seeking legal advice from them is effective, as
this will help organisation in identifying the appropriate solution to business problems.
Advice from the Neighbourhood Advice Centre will assist company in identifying the
appropriate ways which can be adopted by business venture for resolving commercial disputes. It
supports manager in planning and developing strategies which can be utilised for dealing with
complex situations.
11