Business Law Report: Sources of Legislation and Business Solutions

This report provides a detailed analysis of UK business law, exploring various sources of legislation and their impact on businesses. It begins with an introduction to the legal system and identifies key sources of law, including statutes, common law, and European law. The report then delves into the function of the government in law-making, outlining the processes involved in creating legislation. Furthermore, the report offers practical recommendations for businesses facing legal challenges, addressing issues such as company naming regulations and employee dismissal. It also highlights the importance of complying with employment laws and provides insights into relevant legislation like the Equal Pay Act and the Human Rights Act. The report concludes by summarizing key findings and emphasizing the significance of understanding and adhering to business law for organizational success.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different Sources of legislation ............................................................................................1
P2 Function of government in Law making................................................................................2
TASK 2 ..........................................................................................................................................3
P3 Report.....................................................................................................................................3
TASK 3............................................................................................................................................5
P4 Recommending applicable solutions for the business problems...........................................5
P5 justification of solution provided in above both cases ..........................................................6
TASK 4............................................................................................................................................7
P6 Recommendation suitable legal solution based on alternative legal advice..........................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organisation is required to comply with various laws that are framed by government.
Different legislation should be followed by various industries that are operating in diverse
sectors. But there are some common laws such as employment, health as well as safety laws that
are applicable to all the industries. The legal authority of UK has developed various legislation in
order to provide organisation a support to improve its business performance and enhance its
quality of operations. These business laws have been originated from various sources that will be
discussed in this report.
The study has focussed on explaining the basic nature of legal system and identification
of various sources through which this law originates. It also emphasizes on identification of role
that is being played by government in law making; and the way common as well as statutory law
can be applied in Justice Court.
TASK 1
P1 Different Sources of legislation
Law framed by government intends to support individual in eliminating barriers that may
occur in establishment of business. The other objectives of this legislation are to provide support
to existing companies in their growth by providing them with benefits through imposing laws.
These regulations aid enterprise in solving business issues. There are several legislations that are
required to be followed by the organisations such as employment law, minimum wage, Pension
Act, health and safety law etc. (Robson, 2015)
English legal system consists oflaws that provide benefit to company. It also allows
business entity to increase their profitability and sustainability.
The primary source of employment law is Statues that is the act of parliament as well as
set of code of conducts that are issued by ministries under the Actlegislation such as law related
top contract, trust and tort are the important element of employment regulation. The significant
employment legislation statues are Equal pay act, Employment relation Act, disability
discrimination, Human right Act etc. Equal pay Act states that the employees working at same
job profile must be provided with equal amount of salary. Disability Discrimination law is
formed in order to prevent person with disability from discrimination. Human right act states that
all the employees working in an organisation has right to demand for healthy and safe working
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environment. Employment relationship is being formulated by government in order to assist
enterprise in maintaining healthy relationship with their workers and eliminating conflicts at
workplace. There are further substantial amounts of other laws which are in the form of
regulations contains provision that have great effect on the employment relationship.
Employment laws are also governed by common legislation that has been originated from the
decisions taken by magistrate. Common law is considered as combination of various statues that
is developed or formed by judge. Another source of employment law is the European law. The
other law that are required by enterprise to comply are company law and contract legislation
(Allen and Kraakman, 2016).
Common Law-These laws are formed by the magistrates in the court on the basis of the decision
made in the existing law suits.
Statutory Law-These legislations are originated by the act of parliament. This is a conventional
written norms formed by legal authority which govern state and nation. The purpose of statues is
to restrict unfair trade practices. Statues laws are originated from the decisions made by appellate
court. These legislations are mostly based on the written fundamental law of the nation.
European legal system-Before the Brexit the UK was the member of European Union. So it has
to comply with the norms created by legal authority in European union.
Convention of Human right- This laws are required to be followed by the business These laws
regulation is created by the EU legal authority. The intention of the legislation is to protect and
prevent the right of worker from being exploited by employer at workplace.
The sources of company law are Statues and case law. These are the legislation related to
organisation in England and Wales. The various act that comes under the company law are
Insolvency as well as financial services act. These legislations may vary according to the nature
and size of business. The other sources are European Union law. These legislations have great
influence on English legal system (Posner, 2014).
P2 Function of government in Law making
Legal authorities in UK are accountable for formulating effective policies and plans.
These legislations are being formulated by legal authority in order to support firm in solving
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various business problems. The objective of these laws is to eliminate unfair trade practices.
Government only are liable to plan the legislation that yield more profit to a business. As prime
minister is the head of UK government, he is accountable for all policies and decisions. He also
has responsibility to oversee operations of civil services as well as government agencies. Role of
Prime minister is to appoint members of government. He is the principal government member in
house of commons. The function of legal authority is to identify various business issues and
formulate laws accordingly (Martin, 2015). After developing the suitable laws government
parties are responsible for communicating the same, demonstrating the benefit of policies or Act
and implementing legislation. There are various other acts and laws in which government play
significant role in formation process. Initial stage is that the role of government is to commence
statue as a bill and present information in form of green paper in front of parliament. There are
basically three forms of polices that intends to provide various benefit to the organisation. These
are private member, public and private bills. All these proposals are formulated as well as
presented by legal authority in front of the parliament .Bills must receive approval from both
houses before they achieve royal assent. If in case Approval is granted after following stages
which involve debates and consideration (Melvin, 2014).
The concluding step of law making is Royal assent. In this stage bill is approved by
parliament, now the function of government is to communicate the purpose as well as complete
information about legislation and then implement or imposing the same. The second step of law
making process is facilitating reading of white paper that contains specific plans that are to be
implemented. The role of government is to seek advice from the parliament after first reading
and facilitate modification as per recommendations. If the bill get approved by these two major
courts or tribunals then same should be forwarded as well as presented to the parliament or
house of commons for first reading. Once the first reading is executed in the house of commons,
it is the function of legal authority is to make the changes in the bill as per the conclusion made
by the members in parliament. In the next stage, after the modification in the bill, it should be
presented in the house of common for the second reading. After this stage, the bill is presented to
the special committee which is the part of parliament for further investigations. In next stage, the
discussion or short debate is facilitated in the house of common based on the investigation
regarding the implementation .In the next step, government is required to present bill for or the
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third reading, this is the final phase at which the decision related to the approval or rejection is
made .
Common law- Common law is the structure of legislation that has been originated from
decision made by court. It may also be formulated through statues. Common law is considered as
system of jurisprudence that is dependent on doctrine of judicial precedent. The legislation
related to the common law are applied by the judiciary at the time of trials, these rules are then
applied to solve future cases.
Statutory law-This is the significant term that is been adopted in order to specify written
legislation that are generally enacted by legal authorises. These laws may vary from the
regulatory legislation that are passed by administrative agencies as well as common laws.
Statutory laws follow the same procedure that is being complied by legislation. All bill is
presented in front of legislature and then the vote process. If the bill get approval, that it is being
forwarded to executive branch. Afterwards, it is signed by executive agencies then it forwards
the same into law as a statue (Martin, 2015).
TASK 2
P3 Report
1. Suggestion to Collin and David
Collin and David have important degree of freedom to choose name for their
organisations. But they are required to consider some significant restrictions and rules. They can
take support of name checker that is online portal as this will help them is selecting suitable,
unique and attractive name for their business. The name of the company should be such that it
should represent the nature as well various activities that are conducted by organisation
(Rutledge, 2014). If they are choosing sensitive words that are same as name of existing firms
then Collin and David are required to present supportive documents. There are numerous other
regulation that are to be followed while naming the enterprise. These are:
The name of the company must be unique and it should not match with the brand of existing
business unit.
If it's a private limited company, it should contain symbol Ltd.. Organisation located in England
has to use “Cyfngedig”.
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There are certain others symbols, sign, characters and punctuations that are restricted to be used
by companies.
David and Collin are required to take permission if they are planning to use sensitive name. It is
essential for them to present supportive document for the same.
They have to be very careful when selecting the name for their business as it may have great
effect on their brand reputation. The name selected for the organisation should not be offensive
as it has great influence on customers.
It is important for them to consider that the name should not exceed the maximum word limit
that is 60 characters.
It has been recommended to David and Collin that they should check organisation name
registered trade mark. If trade mark is already used by existing business unit, it can lead to legal
obligations.
2. Recommendation to Sophia
In case of Sophia, she has to bear legal obligation. It is essential for every company to
follow various laws related to business and employees. These legislations are formulated by
government in order to provide higher security as well as safety to employees and workers.
There are various laws that are associated with unfair dismissal include Unfair Dismissal Act etc.
With the support of these laws, Sophia can easily claim lawsuit against company or employer
(Tepe, 2016).
Sophia need to consider following criteria in order to be protected against unfair
dismissal. These criteria include that she should be aged between 16 to normal age of retirement.
In many cases, it is required by Employee to have completed 12 months continuous services with
the employer. It is essential for her employer to demonstrate the justifiable reason for dismissing
her from job and consider all conditions that were mentioned in the contract while appointing her
for job. The various code of conducts and regulations that are formulated by UK government are:
It is very essential for worker to comply with the policies and regulation framed by organisation.
Role of employee is to fulfil their duties at workplace and be loyal with employer. It her duty to
come at work on time and comply with all the rules as well as policies framed by human
resource management.
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If any worker is not complying with the rules and regulation, the company has the right to
dismiss such worker by providing notice with justifiable reason. There are mainly three condition
of termination: unfair, constructive and wrongful dismissal.
In case of Sophia, she has been dismissed by her employer as she was continuously
taking leave without giving notification to human resource management. The other misconduct
done by her is that she has presented the fake medical certificate that is totally an illegal activity.
Dismissal of Sophia was fair and she does not have right to file suit against company.
3. Legal suggestion to Mrs. Khan
It is very important for both the parties under the contract to fulfil all the terms and
conditions related to the agreement. As if in case of breach of conditions and promise by either
of party tends to make the contract void as well as null. Person who has suffered losses has the
right to claim other parties for providing compensation. If the compensation is not provided by
defendant party within particular time span, Mrs Khan has the right to file law suit against Ad
Motors under the breach of contract Act. As the AD motors has not followed all the terms and
condition that has been provided by Mrs Khan. AD motors are liable to be compensation to the
party (Wild, Wild and Han,2014.)
TASK 3
P4 Recommending applicable solutions for the business problems
It is very significant for the parties to comply with all laws and regulation. If in case
either of the parties fails to comply with the terms as well as conditions that are prescribed in
agreement has great impact on the contract. In such case the contract can become null and void.
The parties facing disputes can adopt the alternative dispute resolution mechanism in order to
find suitable solutions to their problems. Alternative dispute resolution process is considered to
bean effective techniques for solving the different nature of conflictual matters and disputes as it
provides several options for resolving conflicts. This process supports parties a chance to make
discussion related to the problem and reach suitable solutions.
 CASE 1. In above case as it has been identified that the PHB has completed their 60
percent of work and they have failed to fulfil their rest of the work. In such case if the
proper notice and justifiable reason is given by the construction company that contract
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can be directly terminated. If terms and condition are not followed by the PHB Company
than Mr Sing has two option, first He can give another chance to defaulting party to
perform their duty. Another option is that Mr. Singh can file law suit against PHB under
the law of breach of contract. It has been suggested that Mr. Singh should follow first
option as this will provide both party an opportunity to rebuilt their relationship and
defaulting party will get chance to complete their remaining work. The third option that
has been given to Mr sing is that he should facilitate negotiation with the construction
company. The Another option is that both the parties can enter into a new valid contract.
In this case , conflicting parties can appoint arbitrator in order to reach some conclusion.
The another method is negotiation, which can be adopted by parties facing disputes. Mr
Smith and PHB Ltd have deliberately negotiated their contract in such a manner that only
on completion of the entire obligation is any payment due.T he doctrine of partial
performance might provide relief where that partial performance of a contractual
obligation is accepted by the innocent party. In the given case scenario, it has been
identified that the written agreement is not rejected on the basis of the breach, payment
has to be made for the benefit received.
 CASE 2. In this case it has been identified that Busy Bee has to face situation of
liquidation. The reason behind such situation is that enterprise does not have sufficient
amount of funds to pay for legal obligations. In such case the business entity has two
options first it can sell its fixed assets in the market. Another option is that organisation
can distribute its assets to creditors. If in case the business entity does not have sufficient
amount of fixed assets then the last option left by the company is liquidation. Samantha
can use pro rate basis in above case scenario and Aston business society can hold the
fixed charge of the assets by paying particular amount of money to Busy Bees and the
amount which is realised on selling that can be transferred to Aston business society
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(Oswald,2014)The order which Samantha is required to follow includes Secured
Creditors with a rigid Charge.
Expenses of liquidation (Samantha’s disbursement)
Preferential creditors
Secured creditors with a floating charge
Unsecured/ordinary creditors
Deferred creditors
Members
P5 justification of solution provided in above both cases
As in case of contract between Mr Singh and PHB, there are two options are being
provided which can be used by both the parties. First option of providing second chance to
defaulting party is effective as it will help both the parties in rebuilding their relationship and
PHB will also get a chance to fulfil their duties. However, Mr. Sigh will get an opportunity to get
construction work done according to his choice and he also does not bear a cost for hiring new
construction company. The both the parties are provided with the solution that they should
facilitate negotiation as this will help them in drawing effective conclusions. This solution is
effective as it provides both the parties a chance to execute their roles and responsibilities. Mr
singh has been provided with suggestion that he should carefully read the content in the
agreement before signing as this will help him in eliminating any kind of misunderstanding.
In second case of Busy Bee in which organisation has to liquidate is business due to
insolvency. Samantha has been provided with the solution to use pro Rata basis for distributing
assets among the creditors. This solution is effective as it has provided firm an opportunity to get
freedom from various legal obligations. It has also allowed them to maintain healthy relationship
with creditor. As the company will be able to take support from such creditors at the time of
establishment of new business venture. Due to this effective legal solutions the organisation was
able to repay its debt and prevent itself from further legal organisation. With support of this
strategies, enterprise has got a chance to establish new business venture (Jones and Sufrin, 2016)
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Liquidation is overseen by a liquidator. It involves:making sure all company contracts
(including employee contracts)
are completed, transferred or otherwise ended ceasing the company’s business settling any legal
disputes selling any assets collecting money owed to the company distributing any funds to
creditors repaying share capital to shareholders.
TASK 4
P6 Recommendation suitable legal solution based on alternative legal advice
Arbitration is an effective method that can be used by organisation to solve various
business or industrial conflicts. This is the suitable method as it does not include litigation
process, short procedure and less expensive method. Arbitration procedure is adopted by
conflicting companies as it does not have negative impact on the reputation of either of the
conflicting parties. In such a method Arbitrator is being appointed through the consent of both
parties. Arbitrators supports parties in finding effective solution for facilitating mutual
agreement. Intraindividual acting as arbitrator make decisions by considering the interest of both
the parties. If in case either of the party is not satisfied by the decision of the court then it has the
right to challenge other part in court. It has been observed in many cases that the disputes arises
between the conflicting parties due to the selection of place of arbitration. In order to avoid such
situation it is required by both organisation to decide or mention the place of arbitration at time
of forming a contract (Appelbaum and et.al., 2016)
The other option is negotiation method that can be used to resolve this type of duties. In
this method both parties are given opportunity to make discussion related to and identify
effective solution. They are provided with a chance to share their innovative ideas in order to
resolve disputes.
In case of AFG the organisation has taken support of Arbitrator in order to solve their
conflicts. The both the parties given equal position and chance to express their opinion related to
the problem and they have been consulted by Arbitrator before providing final decision. It is
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totally dependent on conflicting party whether they want to agree or disagree with the decision of
Arbitrator.
Institutional and haddock arbitration:Institutional arbitration is one who is having a
specialisation to make decision in the process related to Arbitration and establish their own rules,
regulations and framework in order to assist both the conflicting parties in the process. Adhoc
arbitration is one which is nor administered or controlled by any institution and the parties
himself determine the aspects related to arbitration such as number of arbitrators, law and
procedure that are applicable for conducting arbitration (Law,Buhalis and Cobanoglu,2014)
Arbitration, negotiation and mediation methods provides conflicting parties an opportunity to
make discussion and reach an agreement through mutual consent. It also enables disputing
parties an opportunity to create private as well as constructive environment for managing,
negotiating, facilitating discussion to reach to an ultimate solution for resolving conflict.
CONCLUSION
It has been concluded from the above report that it is essential for organisation to comply
with all the laws related to the industry. As these legislations have great impact on its growth,
profitability and also on its sustainability. It has been identified from the above study that owner
of the business is required to comply with following rules and regulation when their company.
There are different sources from where the laws are originated. The major or primary source of
these laws are statues and common legislation. It has been analysed from above report that
English legal system has greatly influenced by EU laws.
It has been suggested to organisation to comply with all legal rules, policies and laws
framed by government. As the objectives of these legislations is to provide enterprise a support
to solves business problem. The purpose of employment law is to protect the right of employee
from exploitation.
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REFERENCES
Books and Journals
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changer. American Business Law Journal, 52(3).pp.501-555.
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Posner, R.A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Melvin, S., 2014. The Legal Environment of Business. McGraw-Hill Higher Education.
Martin, P.W., 2015. Survey for LAZ/SAIPAR Business Law Workshop, 9th January
2013. Received from Author. E-mail. 17.
Bowie, N.E., 2017. Business ethics: A Kantian perspective. Cambridge University Press.
Vachon, C.J., 2013. Double Dutch: Teaching Business Associations in Two Semesters. J. Bus. &
Tech. L.. 8.p.213.
Rutledge, T.E., 2014. A Corporation Has No Soul—The Business Entity Law Response to
Challenges to the PPACA Contraceptive Mandate.
Tepe, M., 2016. In Public Servants We Trust?: A behavioural experiment on public service
motivation and trust among students of public administration, business sciences and
law. Public Management Review. 18(4). pp.508-538.
Wild, J.J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.
Oswald, L.J., 2014. Simplifying Multiactor Patent Infringement Cases Through Proper
Application of Common Law Doctrine. American Business Law Journal, 51(1). pp.1-69.
Jones, A. and Sufrin, B., 2016. EU competition law: text, cases, and materials. oxford university
Press.
Appelbaum, E and et.al.,2016.Good for business? Connecticut’s paid sick leave law. Center
for Economic and Policy Research.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and
communication technologies in hospitality and tourism. International Journal of
Contemporary Hospitality Management. 26(5). pp.727-750.
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