Business Law Report: Analysis of English Legal System and Business

This report provides a comprehensive overview of business law, focusing on the English legal system and its implications for businesses. It explores the sources of English law, including statutory and common law, and evaluates the role of the government in law-making. The report delves into the steps required to form a registered company, including choosing a name, preparing the memorandum and articles of association, and filing for incorporation. It also examines the impact of employment and contract law on business operations, highlighting the importance of understanding these legal frameworks. Furthermore, the report suggests effective solutions for resolving business problems, such as arbitration and mediation. The report concludes by emphasizing the importance of adhering to business law for successful and sustainable business practices.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Explanations and evaluation of English Legal system..........................................................1
Common law-The English system in totally dependent on common law that has been developed
by EU. Such types of legislation are evolved from various existing law laws suits ......................2
Evaluation of English legal system..................................................................................................2
P2 Role of government in Law making......................................................................................2
TASK 2............................................................................................................................................3
P3 Steps need to be taken to form a registered company............................................................3
TASK 3............................................................................................................................................5
P4 Suggesting effective solution to various business problems.................................................5
P5 Justification regarding above solutions..................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is defined as a legislation that governs the business and commerce is often
considered as a part of civil law and deals with the issues that are being faced by private as well
as public organisation. Business law regulates various corporate contracts, trade practices and
manufacturing of consumers products as well as services. It also deals with the formation of
business and challenges that are being faced by existing organisations. Developing understanding
about legislation assist enterprise in eliminating legal obligation and minimising the effect of
various legal factors on business operations.
The report will identify the various sources of English legal system. It also has focus on
explaining the various legislations that are required to be comply by enterprise. Study will
highlight the role of government in law making. It will emphasize on determining the way some
legislation impact business activities.
TASK 1
P1 Explanations and evaluation of English Legal system
English legal system is much influenced by European laws. This legal system is adopted
by many of the countries like NEW Zealand, Canada, Australia and USA. It mainly governs the
England and Wales. English legal system include supported features in order to assist
development of critical thinking abilities. It is written in a clear as well as concise style which is
easy accessible. This system has been originated from The localised custom of Anglo-Saxons.
Royal court was first developed by council of kings that was later controlled and operated by
professional magistrates. This system was formed in England. The artefact of English legal
system comprises various legislation such as civil, common, criminal and other commercial laws
and regulations. It also includes legal norms that are formulated by the act of parliament. The
specific features of this system is that it does not contain formal codes.
Sources of laws that enterprise are required to comply with are:
Statutory law- This legislation is formulated by a legislative assembly in the country. This law
that originates from the act of parliament. The modification and revision can be done by
parliament only. It also involves article and sections and whatever the section applied and article
covers that is mandatory for all the people and business to follow such while performing their
business operations as well as activities. It also states that the certain rights of people are involve
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which cannot be restrained by anyone because they are their essential right. The legislature
delegates the powers related to law making to the local bodies and authorities. In UK, the
legislation also includes statutory rights, council orders etc. The legislature given authority to the
courts regarding interpretation of statues, treaties and local customs.
Common law-The English system in totally dependent on common law that has been
developed by EU. Such types of legislation are evolved from various existing law laws suits
Statues- Statues are formed by parliament and devolved parliament. For Instance Employment
right Act 1996 (Cameron,2017.)
Evaluation of English legal system
The specific characteristics of English legal system in context to civil legislation is that it
has no formal systematization or codes. In this system the final decisions are made by court on
the basis of common legislation that are the significant source of origin of various laws. In such
type of legal system, judges are required to be comply with the decisions of supreme court. The
function of magistrate in English legal system is to make modification and changes in various
laws. Role of judges is to present the case as well as witness in front of judge (Jones, 2017)
P2 Role of government in Law making
The bill has to pass through various stages before converting into Act. In this the
government has significant role to play at each and every stage.
Bill- This is the initial stage at which the various activities are performed by government such as
drafting as well as designing proposals' ans presenting the same in front of parliament.
First reading-At this stage The bills is presented in front of parliament by government for
facilitating reading. This meeting is organised by legal authority under the house of common.
Second reading-The various amendments and modifications are made in the bill by government
on the basis of the suggestion and feedback gained in the parliament.
Committee stage-The detail evaluation and testing is facilitated by legal authority in favour of
bill.
Third reading-This is conducted by house of commons presented the amend bill in whose favour
the voting is conducted in past to check it acceptance and rejection.
Impact of various laws on business
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Regulation:There is a great value of these regulations as well as legislations to business, because
it guides the enterprise and management that it is required to comply with all the applicable rules
and trends for conducting their business operations in successful and effective manner.
Legislation:It is a body who governed laws and the bill which prepared under this is passed by
parliament and that bill is converted into the laws and country follows accordingly. As this may
create legal obligation on company and great influence on its clients (Bodie,Kane and Marcus,
2014)
Standards:It is necessary for the business to wit all establish standards and code of conduct
essentially for the individual to follow it when establishing new business and executing various
activities as well as operations. As these may have great effect on the growth of firm.
For instance, 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 consumer law has been formulated by UK government to protect the rights of
consumer and allow them to raise their voice against unfair Trade practises. It has great effect the
revenue as well as profitability of organisation (Cameron,2017.)
TASK 2
P3 Steps need to be taken to form a registered company
Business Owner that has planned to establish their organisation are required to follow the
procedures in order to get their company registered. This is the common procedure that are
required to be followed by all oragnisation.
Stage 1 – Initial owner is required to decide the nature of organisation whether private , public or
partnership firm to be established.
Stage 2-Selecting good name for organisation-Entrepreneur has to decide the name of the
enterprise. Once the name of the firm is determined. Government regulation is to be considered
while naming the enterprise. The most essential thing is that it should not match with the name of
excising business unit. The new firm required to get approval from Companies House.
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Stage 3-Role of the director is to assemble the information needed to register the corporation-
owner of the firm can refers to the new company registration checklist and fulfil the all
documentation requirement. It is very essential for director of newly establish business unit to
give following detail to the registrar such as name of the organisation , location, nature of
business, business operations, details regarding share capital, information about enterprise
director, initial details of shareholder etc. It is required by director to provide various data related
to its shareholder for security purpose.
Stage 4- Preparation of Memorandum and article of associations-The role of director is to
prepare memorandum as well as article of association. Memorandum of association is a short
document that tends to include various standard clauses. It is very important for director to file
memorandum of association with Companies House in order to get their company registered.
The article of associations is document defines the way business will be run and managed by
director on behalf of their shareholders. The articles of association must be filed with Companies
House when registering the company.
Stage 5- Filing Incorporation with Companies House-When all the information and documents
are combined together, it is required by director to submit such detail with the companies House
in order to get approval.
Stage 6-Waiting for The approval-Director of the organisation can not establish its business Until
and unless approval of the documents.
Stage 7-Hold the first company board meeting- After getting the approval from Companies
house, Role of director is to call and attend first board meeting in order to cover important
formalities. Directors are required to present the financial statement after the completion of
financial year.
Stage 8- The legislation related to companies Act states that each register organisation requires
maintaining accounting books and other information that are to presented to the government
when its is demanded. The various data that are to be maintained include registers of directors,
secretariats, register of shareholders, detail of allotment of shares , shares transferred, Mort ages
and charges.
Stage 9- Producing Share certificate for the first shareholders-During the first board meeting the
Director of the organisation have authority to issue share certificates (Appelbaum and
et.al.,2016.)
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The way employment law and contract law have potential impact on business.
Contract law provides a structure within which activities of organisation required to be
conducted by two or more parties. Contracts consists of various terms as well as conditions that
are mutually negotiated and agreed by both the business units, for executing particular business
activity or task. When both the parties signed the agreement it means that they are aware about
all the term and clauses. Contracts is beneficial when it related to the preventing risk as well as
uncertainties. It must provide effective guidelines in order to complete particular task or activity
in systematic manner. And if either of the party fails to comply with any of the term in the
contract that the agreement becomes Void. This activity may have great effect on the business as
it may lead to short term loss for other party (Bowie,2017)
Legislation related to employment are formulated by organisations in order to protect the
rights of employees and provide them opportunity to make justifiable demand for fair working
hours, wages, effective as well as healthy working environment. Employment law has great
effect on the employer and employees relationship. These legislations have great impact on the
Human resource practices, policies as well as strategies. These laws provide firm a chance to
develop effective working culture and maintain healthy relationship with its workers.
TASK 3
P4 Suggesting effective solution to various business problems
The various methods such as Arbitration, mediation and negotiation can be used by
EBSM for resolving potential disputes outside the courts.
Mediations is the most quickly used method for solving conflicts. In this process, a third
party is appointed for finding effective solution to business problem. This method provides both
parties an opportunity to facilitate negotiated agreement and allow them to develop
understanding with each other. The function 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 disputes.
Arbitration is another effective technique that can be adopted for resolving conflicts. In
this process, function of arbitrator is to hear the problems of both the conflicting parties, identify
the root cause of problem and make conclusion by making discussion with both the parties. The
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role of arbitrators is to make effective decision by considering the interest of EBSM and
defaulting party (Hartono, 2014)This method can be used by EBSM fort solving domestic as
well as international disputes.
Negations procedure allows conflicting parties to exchange their messages with other
outlining their point of view that individual consider that it is hindering their business
performance (Storey, 2016)
P5 Justification regarding above solutions
The above solutions that has been suggested to EBSM for resolving potential disputes
outside the courts are effective. As They all are the less costly, little timer consuming and also
include fewer formalities. These methods include short procedure for resolving business
disputes. In all three methods external third parties are appointed that provides decision to
conflicting parties. So it eliminates the chances of unfair decisions. The decisions made in all
three procedures is not at all binding on conflicting parties. If in case either of the party is not
interested in any of the procedure has the freedom to quit any time. These methods provide both
the parties equal opportunities to share their problem and make discussion in order to identify
effective solution to the problem (Lyons and et. al., 2016) Negotiation method allows parties to
share pass their message top other party , if they do not want to make direct discussion on the
matter and neither they want to file law suit. These procedures do not have negative effect on the
reputation or goodwill of either of the party. It allows conflicting firm to facilitate coordination
and redevelop their relationship. These methods provide both organisation an opportunity to
fulfil their responsibilities. Mediation and arbitration helps firm in identifying the rot cause of
conflicts and planning effective ways in order to avoid such situation in the future. Negotiation
allow conflicting parties to develop their focus on maintaining their performance in market
(Scholes, 2015.)This method is effective in order to resolve dispute disputes that are in complex
nature such as high value sales and politics at international level.
CONCLUSION
It has been concluded from the report that the major sources of English legal system are
statues and common law. This legal system is much influenced by laws formulated by European
Union. There are various other legislation that has been described in this study that are required
by the organisation to be followed in order to run their business smoothly. It has been concluded
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that some legislation has major impact on the profitability, sustainability and growth of
enterprise.
The project has suggested various methods that can be used by EBSM for solving
disputes. The reason has been specified for the same as this will support business entity in
realizing the significance of each methods. The various strategies have been suggested by study
that will help firm in eliminating legal obligations and effect of legal factors on their business
operations.
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REFERENCES
Books and Journals:
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.
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.
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.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Bowie, N.E., 2017. Business ethics: A Kantian perspective. Cambridge University Press.
Appelbaum, E and et.al.,2016.Good for business? Connecticut’s paid sick leave law. Center for
Economic and Policy Research.
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