Magnificent Salon Services Ltd. Case: Legal Implications and Solutions

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BUSINESS LAW

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TABLE OF CONTENTS
INTRODUCTION............................................................................................................................. 3
1. NATURE OF LEGAL SYSTEM.................................................................................................... 4
2. IMPACT OF LAW ON BUSINESS ACTIVITIES.............................................................................8
3. LEGAL SOLUTIONS FOR BUSINESS PROBLEMS......................................................................10
4. RECOMMENDATION OF THE LEGAL SOLUTIONS..................................................................12
CONCLUSION............................................................................................................................... 16
REFERENCES.................................................................................................................................17

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INTRODUCTION
It is very essential for the organizations to ensure that they are aware of the rules and
regulations which would be applicable for them while performing their business activities. By
gaining a detailed understanding of the applicable laws and regulations, the business can
ensure its long term sustainability. The following assignment is aimed at discussing the
implications of the law which would be included in the case of Andrea & Mariyah Vs.
Magnificent Salon Services Ltd. the case discusses about the bad experience of the customers
with regards to the faded colour and also the medical treatment required for the same. With
the objective, if analyzing this case, the following report would be aimed at discussing the legal
nature of the legal system and the implications of the laws on the businesses. In addition to
this, the assignment is also aimed at providing legal solutions for the business problems and
recommending future course of action on the basis of alternative legal advice.

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1. NATURE OF LEGAL SYSTEM
This section of the report is aimed at providing detailed knowledge of the various sources of
laws to Mrs John Ruska which must be complied with by the organization. In addition to this,
this section of the report is also aimed at evaluating the role of the government in the process
of law making and the application of the common law and statutory law within the justice
courts.
Law can be defined as a code of conduct and their implementation ensures orderliness in
society and laws are a source of duties and responsibility of individuals. The legal system is a
process to examine and enforce legislation. The legal system of the UK includes legal systems of
England, Wales, Northern Ireland, and Scotland. The legal system examines laws and identifies
roles, duties, rights of individuals as well as identifies the framework and nature of business
operations. There are two domains of laws described in the legal system and these are civil law
and criminal law. Civil laws deal with the matters related to business, property and other matter
that are not criminal in nature. The constitution can be defined as the law of land and
legislation derives its authority from it (Nelken, 2017).

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SOURCES OF LAW
Source of law can be defined as a legal document form which piece of legislation derives its
authority. The UK has three different legal systems. The UK has no separate document as the
constitution and these are the statues that form the legal structure of the UK.
Legislation
 Magna Carts 1215: it is the oldest treaty that gives birth to the constitution across the
globe.
 Bill of rights: it prohibits the power of the monarch and suggested the decentralization
of power.
 Human rights Act: it ensures the protection of rights of individuals and just and humane
treatment of them.
 Constitution Reform Act 2005: it is a recently passed act of parliament of the UK to bring
effective changes in the current laws (Kaczorowska-Ireland, 2015).
European Union law:
UK being the member of EU follows the guidelines and regulation of EU and legal orders of EU
derives their authority from EU treaties and these are The treaty of EU 1957, The Single
European Act, 1986, Treaty of Nice 2001, the treaty of Lisbon, etc.
Common law
Common law can be illustrated as a law that administers business activities and activities of
individuals. It is a branch of civil law. It specifies the legal framework for doing business in a just
and fair manner. Business is conduct as per laws, rules, and regulations and all are different in
scope and nature (Blake et al., 2016).

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ROLE OF GOVERNMENT IN LAWMAKING
The role of government in lawmaking is crucial. There are three organs of democracy judiciary,
legislature and executives. The role of the legislature is to formulate laws and parliament is the
principal authority to make laws. There are two houses of parliament: lower house and upper
house; the lower house of parliament along with the House of Lords formulates laws. The
government's cabinet is formed from the members of parliament and they along the ministers
propose a formulation of laws as a part of their agenda. Laws are formulated within broad
terms by the minister and in detail, they are drafted by bureaucracy. So, laws are proposed by
governments and their drafting is also supported by it. Any law originates as a bill and bill is
changed into the act after discussion in parliament and acceptance by majority and ascent of
the head of the state (Barnett, 2017).
APPLICATION OF LAWS IN COURTS
Statutes are formulated in the parliament and they are interpreted by the judiciary. The
machinery of judiciary examines laws and legal structures as per the need of case law.
Whenever any case laws comes before judiciary for interpretation then the judges of the court
read the sections of law and focus on identifying legality of specific section of case law and if
find legality then it formulates its verdict otherwise recommends executive to take necessary
action to ensure formulation of law for the same (Blake et al.,2016).
RECENT DEVELOPMENTS
Developments are crucial to reform the legal system of the UK and bringing positive changes in
it. The first reform in the legal machinery of the UK took place in the year 1944 and after that,
the system has been continuously reformed to meet the evolution of society. Reforms in the
legal system of the UK took place from 2005:
National crime agency: this agency is recommended to reform criminal procedure in the UK
and fastens identification of criminals, screening and prevention to the outbreak of any crime. It
creates a database of criminals and identifies them on time and it will help in preventing the
territory from international criminals.

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Alternative dispute resolution mechanism: in the UK and common law is a major source of law
and it ensures the liberty of individuals and prevents violation of rights of individuals against
the State. But due to the increasing burden on judiciary and delays as a part of ADR, courts are
constituted to listen to business disputes of both the parties and accord verdict but the parties
are not bound to abide by it and can move to other courts also.
Legal advice agency: formation of legal advice agency is constituted to ensure free and fair
justice for all. These agencies accorded legal advice free of cost or at an affordable rate. It
ensures equity of justice for all (Tsakalakis et al., 2016).
Company Act: to deal with increasing size of business and needs; company act has been
formulated to provide legal structure for the company and provide a legal framework in case of
breach of any provision and it is also amended several times.
Consumer forum: It is a part of modern reform in legislation and safeguard rights of consumers,
ensure compensation for them and also protect their rights and prevent their harassment form
manufactures and suppliers. In the consumer forum, different penalty provisions are there.
Consumer’s courts are constituted as a part of the consumer rights act and judges in these
courts are given authority to inflict a penalty on individuals.
Standards: various standards have been formulated to ensure the quality of products, quality
of ingredients, health, and wellbeing of consumers and their compliance is essential to ensure
the productivity of a business and protecting the rights of individuals (Tsakalakis et al., 2016).
These are the steps that are taken to improve orderliness, effectiveness, the productivity of a
business and prevent any harm to consumers or business.

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2. IMPACT OF LAW ON BUSINESS ACTIVITIES
This section of the report is aimed at illustrating to Mrs John Ruska the impact of employment;
contract and company law on the business activities of Magnificent Salon Services Ltd. It is
evident that the adoption of the following laws is very essential for gaining efficiency in
business operations. The laws and regulations applicable to this salon based in London are as
follows:
EQUALITY ACT, 2010
As stated in the principles of this act, Magnificent Salon Services Ltd. is required to ensure that
equality standards are being incorporated at the workplace. In addition to this, this act has
been aimed at discouraging the preferential practices which are based on different parameters
such as sex, religion and age among others (Redley et al., 2019). Magnificent Salon Services Ltd.
is required to provide equal opportunities to all the employees at the workplace.
HEALTH AND SAFETY ACT, 1974
Magnificent Salon Services Ltd. is required to maintain a safe working culture for the
employees. The health and safety of all the employees can be ensured by enacting upon the
provisions of this act (Holt and Allen, 2015). With the objective of ensuring that the act is
appropriately followed, the salon can focus on introducing the welfare mechanisms.
CONSUMER RIGHTS ACT, 2015
Under the provisions of this act, Magnificent Salon Services Ltd. is required to protect the rights
of the consumers. The adoption of this law would be beneficial in ensuring that the exploitation
of consumer rights is protected. The consumers can make use of the remedial actions available
under this act in circumstances of fraudulent activities (Kelly, 2018). Thus, this act is beneficial
in maintaining transparency in the dealings between the organization and consumers.
EMPLOYMENT RIGHTS ACT, 1966

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Under the provisions of this act, it would be ensured that a strong relationship is being
maintained amongst the employees and employer at Magnificent Salon Services Ltd. the
employees would gain benefits under the provision of this act for unfair payments and dismissal
amongst others (Freedland et al., 2016). The salon would be benefitted in terms of fixing the
wages and payments of the employees.
STANDARDS, LEGISLATIONS AND REGULATIONS
Standards
The government of London is required to compare the actual performance of the companies in
accordance with the established ones, for which it focuses on establishing norms and policies.
These norms can be said as standards, which are not legally binding on the Magnificent Salon
Services Ltd. in addition to this, it can also be said that the standards would be legally
enforceable for Magnificent Salon Services Ltd. in situations when it is being duly signed by
both the parties (Mutua, 2016).
Legislations
Legislation can be defined as the process of preparing and enacting various laws by the law-
making authorities. This is being done by adopting a process comprising of several steps such as
amendments in the laws, evaluation of laws and also undertaking the voting of the proposed
laws (Sands, 2017). The measures are helpful for ensuring that the purpose, judgments and the
process of introducing the bills are also being introduced.
Regulations
Regulations can be defined as the act of government which is aimed at governing the behaviour
of the people and the procedures of the organization. The regulatory agencies are held
responsible for ensuring that the provisions of the legislation are being fulfilled (Sands, 2017).

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3. LEGAL SOLUTIONS FOR BUSINESS PROBLEMS
This section of the report is aimed at suggesting the most appropriate legal solutions for the
numerous business problems faced by the Magnificent Salon Services Ltd. In addition to this,
this section would also be aimed at providing the positive and negative impacts of the proposed
legal solutions.
THE BUSINESS PROBLEMS BY THE BUSINESS:
Termination of the contract
The Magnificent Salon Services Ltd. has entered into a contract with its customers for ensuring
that the optimum services are being provided at the correct prices. This contract of providing
the salon services could be terminated in either of the following circumstances such as the
fulfilment of the contract, impossibilities arising which could restrain from the fulfilment of the
contract or the breach of contract by either of the parties (Hawkins, 2017). The contract
between the salon and the customers could also be terminated in an instance of
misrepresentation or fraud.
Rescue from insolvency and Liquidation
In the case of Magnificent Salon Services Ltd., it is evident that the ladies who had faced
problems due to the hair treatment availed by them have filed a case and appealed for legal
actions from the citizen's advice bureau. This has also lead to a loss in customers for the salon
and also uproar in the organization (Wessels and Madaus, 2018). This huge loss in the
customers will lead to the loss in revenues and profits for the company, thereby leading to the
circumstances of liquidation and insolvency.
LEGAL SOLUTIONS FOR THE PROBLEMS:
Termination of the contract

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In case of the termination of the contract by either of the parties, that is either by a salon or the
customers, the following legal solutions would be available with both the parties to the
contract. Andrea would apply for restitution where she would be reimbursed by the
Magnificent Salon Services Ltd. to the extent that she reaches a position where she actually
stood before entering the contract (Freedland et al., 2016). This also means that the salon is
required to compensate the consumers for the extent of damages faced by them. In this case,
the customers have also approached the citizen’s advice bureau, where they had the option of
rescission. In this case, the contract is being legally closed (Hawkins, 2017). In certain situations,
specific performance could also be ordered by the court, where the salon would be forced to
perform their duties in addition to those stated within the contract.
Rescue from insolvency and Liquidation
The Magnificent Salon Services Ltd. has many options available which can be implemented with
the objective of dealing with the situations of insolvency and liquidation. These solutions which
are available with the salon are administrative receivership, administration, company voluntary
arrangements and liquidation (Parkinson, 2018). The best available option with the Magnificent
Salon Services Ltd. would be administration proceedings. This would ensure that the
organization is capable of continuing its trade activities even in situations of the
commencement of the operations. These proceedings could be opened by the court and would
ensure that an optimum solution has been derived which would be in favour of both the parties
to the contract (Wessels and Madaus, 2018).
POSITIVE IMPACTS OF LEGAL SOLUTIONS
The following are the positive impacts of implementing legal solutions for the problems faced
by the business:
 The organizations can approach the court or other legal bodies for resolving their
disputes.
 The solution provided by these bodies is legally binding on both the parties. This ensures
that both the parties are satisfied by the results of the conflict.

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 This ensures that the parties do not further enter into conflicts (Freedland et al., 2016).
 The legal solutions provided by the court are helpful in ensuring good health and safety
of the organizations.
NEGATIVE IMPACTS OF LEGAL SOLUTIONS
The legal solutions also have certain negative impacts which are as follows:
 The parties to the conflict might not be satisfied by the legal solutions.
 The legal solutions might lead to further conflicts, due to differences in the terms of
contract (Hawkins, 2017).