Business Law Report: Analysis of Legal Systems and Business Operations

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This report delves into the intricacies of business law, focusing on the English legal system and its various sources, including common law, equity law, and European law. It examines the role of the government in law-making, detailing the process from initial agenda to parliamentary approval and implementation. The report also explores the impact of law on business organizations, highlighting legal obligations such as those outlined in the Equality Act 2010, the Data Protection Act 1998, and the National Minimum Wage Act 1998. Furthermore, it discusses the effectiveness of the legal system in terms of recent reforms and developments, providing a comprehensive analysis of how law shapes and regulates business activities within the United Kingdom. The report covers the process of law-making in the UK parliament, and the role of statutory and common law in the justice court. The report also discusses the impact of law on business organisations, and provides legal solutions to business problems.
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BUSINESS
LAW
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 English legal system and different sources of laws...........................................................1
P2 Role of government in making laws and how statutory and common law is applied in the
justice court............................................................................................................................3
M1 Effectiveness of legal system in terms of recent reforms and development....................6
TASK 2............................................................................................................................................6
P3 Impact of law on business organisation............................................................................6
M2 Potential impact of regulations, legislation and standards...............................................7
TASK 3............................................................................................................................................7
P4 Legal solution to business problems.................................................................................7
P5 Justification for solution....................................................................................................8
M3 Positive and negative impact of legal solutions to business problems............................9
TASK 4............................................................................................................................................9
P6 Recommendation to legal solution on alternative legal system........................................9
M4 Effectiveness of two different recommendations..........................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business law is also referred as commercial law. It is an significant body of law which
governs business day to day activities
(Awrey, 2010). It regulates all organisation contracts, its hire and purchase activities, production
and sales of product and services. The organisation which are formed under Companies Act
2006 is regulated by United Kingdom company law. In the following assignment different
sources of law and English legal system is discussed briefly. Report will help to understand roles
of government in law making and application statutory and common law in court of justice. The
report will help to understand impacts of law on business organisation.
TASK 1
P1 English legal system and different sources of laws
Law and legal system: - It is referred to an procedure or process which interpret and
enforce law. It supports in defining rights and responsibilities in variety of ways. The legal
system is divided in three parts which are applied in different geographical area. English law is
applicable in Wales and England, Northern Ireland law is for Northern Ireland and at last Scot
law is applied in Scotland (What is the Structure of the UK Court System, 2016 ).
English legal system: - It is an common legal system which governs England and Wales .
This system consist of criminal and civil law. This system provides support to various
individuals and nations which are dependent on same legal framework. It is important for all
individuals and organisation to comply with laws laid down under this structure and this supports
in getting justice to in various cases (Bartlett, Rhode and Grossman, 2016).
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Different sources of Law:
Common Law: - It is also called as Judicial Precedent / Case Law. It a body legislation which is
effectively developed by courts, similar tribunals and judges. It framed in order to solve certain
problems faced on daily basis. Under this, judge of a court is on personnel who has authority to
take decision regarding issues faced (EidenmĂĽller, 2013).
Equity Law: - It is an body of act which was framed by English Court of Chancery. In present
situation it is administered at the same time with common law. It is main element of English law
which includes effective plans and procedures for solving issues. It is applied when a certain
solution is not effective for a particular situation. It is mostly seen in matters of real states.
European Law: - It is an structure of rules which operates within a member states of European
Union. It is divided among primary and secondary legislations. The primary legislation (treaties)
are the base for all European Union action. Apart from this, secondary includes regulations,
decisions and directives (Granovetter, 2010). This are defined from objectives and principles
determined in treaties.
Laws which organisation must comply with:
2
Illustration 1: English legal structure
(Source: English legal structure, 2017)
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There are some legal act framed by government of United Kingdom for business. It is
necessary for all enterprise operating within UK to comply with these laws. Some of them are
described as follows: -
The Equality Act 2010: - It is an law which is related to recruitment and selection of individuals
within an organisation. The main purpose of this act is to protect all people from discrimination
activities conducted by organisations. It states that business must provide equal opportunities to
all in respect of getting employment within any discrimination on the basis of caste, religion,
gender and nationality (Hiller, 2013).
The Data Protection Act 1998: - It is an act of United Kingdom Parliament. It framed in order
to protect personal and other data of individual which can be used to identify an living
individual. According to this, organisation must protect all personal data of its employees and it
must not be leaked to any other for personal benefits.
The National Minimum Wage Act 1998: - It have created minimum wage all across the United
Kingdom. This law have set minimum amount of wage rate which must be paid to employees by
employers. It clearly states that organisation must pay minimum amount determined as per the
law.
Health and Safety at Work Act 1971: - It is act of United Kingdom Parliament which must be
followed by all organisation operating within the economy of UK. According to the following
Act all business must ensure complete health safety of employees at work place. As per the law,
it is an duty of employers to provide training in relation to safety and safety gadgets such as
gloves and helmets is necessary to be provided by business.
Consumers Rights Act 2015: - This act is framed by Parliament of United Kingdom for
protection of consumers of products and services offered by organisations. According to this act,
business must not provide hazardous goods to their consumers and they should not conduct any
kind of unfair trade practices.
P2 Role of government in making laws and how statutory and common law is applied in the
justice court
The regulation are most important aspects for every nations. All activities of countries is
conducted by following significant rules and regulations framed by government of country.
Government is only a body who have authority to implements laws framed (Johnson, 2012).
These all supports in protection of rights of individuals living within nation.
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Process of law making by Parliament of United Kingdom:
Issues related to government agenda: - This is an initial stage, where general election
informs governments agenda. Different political parties competes with each other for attaining
the support from British voter by starting campaigns on their main vision for country and how
they can change things. Parties which wins election forms an government and puts its legislative
agenda in its election manifesto (Jones and Sufrin, 2016).
Ideas to address issues: - Identification of issues in nation is one thing and finding
solution for it another thing. The proposals for solving particular problems can be received from
different sources. It can be received from political parties. Governing and opposition parties are
the one who are expected to have wide range of policies on different issues. These may be on
problems such as taxation, education and health. Civil servants, public and campaign groups are
also good sources to get recommendation in respect of new laws.
Consultation with interested peoples and groups: - It is an next stage after getting
ideas. It cannot be guaranteed that an idea can discover its direction towards parliament and
become a law. Ministers normally shape and inform proposals by making consultation with
experts, people and groups interested and who may be impacted by plans. Generally these
interested parties are asked to give comment on 'green paper' which is an first outline of idea.
Some time white paper is made, which is an firmer statement stating government intentions.
Cabinet Minister must agree to forward the proposals: - After consultation on
proposals with experts, ministers than aims to stimulate colleagues in order to support idea.
Cabinet committees, formed of ministers and senior cabinet member makes debate on merits of
various policies. After approval form cabinet committee, it is necessary to be selected by
responsible committee for designing up government legislative. The final decision is made
whether a proposal is to be presented among parliament for scrutiny or not.
Preparation of bills: - At this stage proposals are made into bills after consultation and
approval from cabinet. It is duty of minister to design instructions which has to be considered
into bills. Specialised lawyers who are also known as parliamentary counsel works in order to
translate significant principles of proposals into detailed legislation (Kadish, Schulhofer and
Barkow, 2016).
Parliament considers and scrutinises bills: - The proposals are considered by the house
of parliament which are called as bills. This are introduced by government. The MPs in House of
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Common and peers in House Lords must approve a bill in order to make it a law. It both houses
bill goes through similar process.
Parliamentary stages:
1. First reading: - It the chamber the reading of bills title is done. After this bills are made
available for all the members of parliament (Kaplan, Weisberg and Binder, 2014).
2. Second reading: - The main principles of bills is discussed by MPs and peers. At the end
of this stage MPs can vote, if bills are arguable. A bill is passed to another stage without a
vote by House of Lord.
3. Committee stage: - The committees of MPs or peers considers bill line by line. The
amendments are proposed and voted. The complete House of Lords takes part in the
following stage.
4. Report Stage: - The reporting of bills with amendments is put among the House.
Amended bills can be reviewed by all members. Individuals who are not involved in
previous stage have authority to make suggestion for further changes.
5. Third reading: - The MPs debate and cast vote on bills in its final form. In Lords,
amendments may be applied in future .
6. Approval of bills: - Once the bills begins in House of common and it is approved, it is
passed to House of Lords which is goes through similar process. If Lords needs to make
changes in bill, it is returned to Commons for MPs to consider amendments of Lord. It is
necessary that both Common and Lord must agree on final bill before making it a law.
7. Monarch's 'assent turns' a bills into Act: - When approval is received from both the
houses, a forman approval of bill is also received from monarch which is also called as
'Royal Assent'. The approval by monarch is only given by taking advice from ministers.
A bill becomes a law, and is described as Parliament Act.
Implementation of common and statutory laws:
Statutory interpretations: - It is related to formulating plans and policies which supports
in effective implementation of law in order to solve issues. All the personnels who works within
parliament have rights to take part in process decision making in respect of problems weather
they are applicable or not (Leung and et. al., 2013).
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Aids used by judges: - The court judges are most important aspect and risks are not
considered as an part of common job. If they considers than it may lead to negative results.
Judges provides good supports in relation to judicial, oxord directories etc.
Rules of interpretations: - There are different laws which supports in making
interpretations for issues by judges. Various bills assist in making right decisions for solving
problems and conflicts (McGill, 2010).
M1 Effectiveness of legal system in terms of recent reforms and development
The legal system is most important within each and every country. All the citizen of
country expect that decision of court must be implemented in best and fair manner. Legal
system has great effectiveness in development as it helps in protecting rights of each individuals
against any unfair treatment by other against them. The legal system is only a body corporate
which helps in eliminating the crime from country which most significant in recent development.
TASK 2
P3 Impact of law on business organisation
The Employees legal obligation includes following laws described as follows: -
Occupational Health and Safety Act: The following act is concerned with health, safety
and security of employees at work place. It is also related to physical and mental health of
employees working within premises of business.
Workers compensation: It is related to monetary benefits which has to be paid by
employers to employees in certain cases of accidents apart form it also includes benefits of
pension, paid leaves and paid sick leave. According to the act, employees have right to make
claims for certain thing as stated in law.
Harassment: According to this, employer must not treat employees badly and they must
not use harsh languages while communicating with members. It supports employees, if
employers violates these laws he/she is liable to get punishment.
Equal opportunity: It states that employers must give equal opportunities to all
employees in respect of getting benefits. It also describes that employer must treat all members
of organisation equally without any discrimination.
B case study
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In given case, a 16 year old girl was working on fast food centre where she had a responsibility
of cooking fries. She met with an unfortunate accident were her hand slipped down on water
leaking from ice manufacturing machine. Her hand slipped in the container containing hot oil
which was at 360 degree Celsius.
As per the law framed by government of UK i.e. Health and Safety at Work the
employers must give priority to health and safety of workers (Mnookin and Weisberg, 2014). In
the above case, employer and managers were not concerned with safety at work place which led
to accident with an small child. Thus, this law supported to provide best and less risky working
environment for employees and this protects them. Th laws of UK prohibits child labour which is
also not followed by employer in the above case.
M2 Potential impact of regulations, legislation and standards
The all the legal rules framed by parliament have positive impacts which supports in
protecting the rights of individuals. In the given case of 16 year girl who met with an accident
the regulation and legislation acted positively and supports girl in receiving compensation for
accident. The law of Health at safety was one act which had potential impact over the case.
TASK 3
P4 Legal solution to business problems
CASE 1
A business must formulate certain rules and regulations which must be followed by all
the employees working within it (Nissenbaum, 2011). When a individual destroy any assets of
business or human resource business law is being applied. Different approaches to dismissal is
described as follows:
Constructive Dismissal: When ever the contracts are breached at workplace this situation
arises. It leads to high employee turnover in organisation due to unsatisfactory working
conditions or because of low wages and salary.
Fair Dismissal: This situation arises when employers do not provide a valid reasons
behind dismissal of employees. As per the laws employers do not have any rights in removing
employees before giving 1 month prior notice. It may occur because of poor work performance
by members of organisation.
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Unfair Dismissal: It is occurred when is their frequent termination of employee from a
business. Under this situation, employer have complete authority to terminate its employees
without giving any prior notice of 1 month. But employer must give proper and valid reason
behind termination.
CASE 2
According to different insurance act which is given in the following case. Before the
period of 2 years of situation an individual is eligible to claim insurance.
As per the given case, Kelvin's father Dad had an small store which met with an fire accidents
and it was destroyed completely. After the accident he made an plan to start new store in other
location and application for insurance claim was filed (Parker and Nielsen, 2011). After this
insurance company denied to provide claim for some reasons mentioned in complete case.
The solution for both the case is being described as follows: -
ď‚· If employees of organisation are terminated without any prior notice then they are
supported by tribunals. Calvin can get advantage in solution to her issue.
ď‚· The policies of insurance must be applicable for longer period of time.
ď‚· Insurance provided by governments do not have determined time frame. So, Dan can take
significant benefits out of it (Pohl and Tolhurst, 2010).
ď‚· The terms and condition of insurance policy must be made clear in front of individual.
ď‚· Employees can take necessary action on employer if they are terminated without giving
any prior notice of 1 month or in case of invalid reason behind termination.
P5 Justification for solution
It essential for every commercial and non-commercial organisations to follow rules and
regulation which will support in effective operations of business in planned way without
avoiding any government laws.
Employment Act 1996: - This act was frame in order to protect rights of employees working
within an organisation. The following act can be applied in cases of termination of individual by
employer without any prior notice, parental leave and redundancy. The business cannot operate
effectively without the support of employees. For this, it is important for employer to protect
rights of individuals working within business. The employer should make written contract with
employees at the time of appointment which support in protecting rights of both the parties.
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Section 94: As per the following session employer cannot terminate employee without providing
any prior notice.
Section 95: As per the section, there are different situations where employees can be terminated
from their job without any prior notice. It is mainly done when employees breaks the rules and
regulations implied on them.
Section 96: As per this section, employers can terminate employees without any notice and
reasons behind termination but it depends upon situations (Trompenaars and Hampden-Turner,
2011).
In the case 1 Donna do not have any proof that Calvin have robbed money. So, as per the
employment act Calvin have right to demand valid reasons behind her dismissal.
In case 2 insurance company denies to provide claim for insurance. In this case the
complete information about insurance policy was not given to Dan.
M3 Positive and negative impact of legal solutions to business problems
The fair dismissal is aroused when employer do not give any valid reasons behind
termination of his employees as per the legal solutions employer do not have any right to
terminate any employees without giving 1 month prior notice to them. It have positive impact
over employees as it allows them to get a period of 1 month where they can find another jobs
apart from this if employers do not follow the legal law it will have negative impact over it.
TASK 4
P6 Recommendation to legal solution on alternative legal system
For finding solution in respect of issues created by customers alternatives resolution is being
adopted by organisations. It is essential for company which protects them from negative impacts
which declines growth of organisation (Wolfe Jr and Pittenger, 2016).
In current situation Antwon and Tyrell is suffering from a conflict from a longer period of time
and no solutions is being determined. Both personal have tried their best to solve conflict by
mutual understandings which supported in proper execution of business activities. The issue is
presented by them in alternative dispute committee were there is no intermediator who can give
view points on issues faced which both has to follow it.
USA UK
Contract law In USA, Dispute Act 1978 is In United Kingdom, Contract
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being followed by the helps of
which problems are effectively
solved by following proper
plans and procedures.
Different resolutions are
enacted which supports in
taking appropriate decisions in
court of law.
Act 1990 is followed. It
describes various legal and
illegal elements in relation to
business. It defines significant
information which has to be
followed in order to make
contract valid.
Company law The Security Exchange Act of
1934 is followed which
includes detail information in
respect of shares and
exchanges. If they inform
registration preventive actions
are taken (Pohl and Tolhurst,
2010).
They follow Company Act,
2006. It states all the roles and
responsibilities for managers
in the organisation and they
must be followed in daily
routine.
M4 Effectiveness of two different recommendations
The both recommended law for solving the conflict between both of them i.e. Antwon
and Tyrell who suffering issue have great effectiveness. In both the recommendation an
arbitrator will be appointed who will listen to issues of both and supports in providing best
solution in regard to their conflicts. Both recommendation are best and effective as in this view
points of both the parties is being considered which helps in finding best solution towards it.
CONCLUSION
From the above report it is being concluded that business laws supports organisation in its
operation effectively. These also supports in protecting rights of both employers and employees
of an business. Above reports also concludes that there is proper procedure to make a law and it
is followed by government of country. It also concludes that framed laws can be changed as per
need by following certain procedures. The report states that there are certain laws which are
necessary to be followed by all organisations. Laws supports individuals in getting knowledge
about their rights and responsibilities which assist in getting justice in respect of their rights.
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REFERENCES
Books and Journals
Awrey, D., 2010. The dynamics of OTC derivatives regulation: bridging the public-private
divide. European Business Organization Law Review. 11(2). pp.155-193.
Bartlett, K.T., Rhode, D.L. and Grossman, J.L., 2016. Gender and law: Theory, doctrine,
commentary. Wolters Kluwer Law & Business.
EidenmĂĽller, H., 2013. A New Framework for Business Restructuring in Europe: The EU
Commission’s Proposals for a Reform of the European Insolvency Regulation and
beyond. Browser Download This Paper.
Granovetter, M., 2010. 19 Business Groups and Social Organization. The handbook of economic
sociology. p.429.
Hiller, J.S., 2013. The Benefit Corporation and corporate social responsibility. Journal of
Business Ethics. 118(2). pp.287-301.
Johnson, L., 2012. Pluralism in corporate form: Corporate law and benefit corporations.
Jones, A. and Sufrin, B., 2016. EU competition law: text, cases, and materials. Oxford university
Press.
Kadish, S.H., Schulhofer, S.J. and Barkow, R.E., 2016. Criminal law and its processes: Cases
and materials. Wolters Kluwer Law & Business.
Kaplan, J., Weisberg, R. and Binder, G., 2014. Criminal law: Cases and materials. Wolters
Kluwer Law & Business.
Leung, D., and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of Travel & Tourism Marketing. 30(1-2). pp.3-22.
McGill, S., 2010. Consumer Arbitration Clause Enforcement: A Balanced Legislative Response.
American Business Law Journal. 47(3). pp.361-413.
Mnookin, R.H. and Weisberg, D.K., 2014. Child Family and State: Problems and Materials on
Children and the Law. Wolters Kluwer Law & Business.
Nissenbaum, H., 2011. A contextual approach to privacy online. Daedalus, 140(4), pp.32-48.
Parker, C. and Nielsen, V.L. eds., 2011. Explaining compliance: Business responses to
regulation. Edward Elgar Publishing.
Pohl, M. and Tolhurst, N., 2010. Responsible business: how to manage a CSR strategy
successfully. John Wiley & Sons.
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Trompenaars, F. and Hampden-Turner, C., 2011. Riding the waves of culture: Understanding
diversity in global business. Nicholas Brealey Publishing.
Wolfe Jr, D.J. and Pittenger, M.A., 2016. Appeals and Certification of Questions of Law to the
Supreme Court of Delaware (Vol. 1). Corp and Commercial Practice in the Delaware
Court of Chancery.
Online
What is the Structure of the UK Court System? 2016. [Online]. Available through:
<http://new.justcite.com/kb/editorial-policies/terms/uk-court-structure/>. [Accessed on
18th July 2017.]
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