Business Law Report: Analyzing UK Legal Framework and Regulations
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This business law report provides a comprehensive overview of the UK's legal framework, focusing on the sources of law, the government's role in the law-making process, and the application of statutory and common law in justice courts. It explores various sources of UK laws, including Case Law, Customs, Parliamentary Conventions, and Legislation. The report also examines the role of the UK government in drafting and enforcing laws through its executive, judiciary, and legislative branches. Furthermore, it discusses health and safety regulations, equal opportunities regulations, and the General Data Protection Regulation (GDPR), highlighting their impact on business organizations. The report includes legal advice based on case law and statutes for two hypothetical cases, providing insights into liquidation processes and the possibility of obtaining injunctions. An alternative legal solution is recommended and compared for effectiveness.

Business Law
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Table of Contents
Introduction........................................................................................................................3
Section 1............................................................................................................................4
Task 1................................................................................................................................4
a)Discus the meaning of this statement and the various sources of UK Laws..............4
b) Explain the role of government in the law making process and how statutory and
common law are applied in the justice courts................................................................5
Task 2................................................................................................................................8
1.Health and Safety regulations.....................................................................................8
2.Equal Opportunities regulations..................................................................................8
3.General Data Protection Regulation (GDPR)...........................................................10
Section 2..........................................................................................................................12
a) In both cases, you are to provide appropriate legal advice based on case law or
statutes to;....................................................................................................................12
i) Champion Ltd on whether the creditor has legal powers to do what they threatening
and the processes for liquidation.................................................................................12
ii) Amber Ltd on the possibility of getting the injunction...............................................14
b) In respect of Case 2 recommend an alternative legal solution to what is suggested
in a (ii) based on a different legal framework. You should try compare and contrast the
effectiveness of these solutions...................................................................................15
Conclusion.......................................................................................................................17
Reference List..................................................................................................................18
2
Introduction........................................................................................................................3
Section 1............................................................................................................................4
Task 1................................................................................................................................4
a)Discus the meaning of this statement and the various sources of UK Laws..............4
b) Explain the role of government in the law making process and how statutory and
common law are applied in the justice courts................................................................5
Task 2................................................................................................................................8
1.Health and Safety regulations.....................................................................................8
2.Equal Opportunities regulations..................................................................................8
3.General Data Protection Regulation (GDPR)...........................................................10
Section 2..........................................................................................................................12
a) In both cases, you are to provide appropriate legal advice based on case law or
statutes to;....................................................................................................................12
i) Champion Ltd on whether the creditor has legal powers to do what they threatening
and the processes for liquidation.................................................................................12
ii) Amber Ltd on the possibility of getting the injunction...............................................14
b) In respect of Case 2 recommend an alternative legal solution to what is suggested
in a (ii) based on a different legal framework. You should try compare and contrast the
effectiveness of these solutions...................................................................................15
Conclusion.......................................................................................................................17
Reference List..................................................................................................................18
2

Introduction
This business law is very crucial in maintaining an organization as without laws and
discipline business and life both become a matter of endurance. Laws are very
important for regulating the behavior of the individual within the firm. Modern business
world is very much complex in order to continue the growth of firm and to sustain in this
competitive market. Therefore, the scope of business laws is increasing simultaneously
rapidly.
This assignment will outline the meaning of this statement and the several sources of
the laws of UK and the role of the UK government in making process. Moreover, the
process of applying common and statutory law in the justice courts and health and
safety regulations and equal opportunities regulations will also be included in this
assignment for offering a clear idea to the learners. Furthermore, different impacts of
different legislations on the various business organizations will also be explored
completely in this task.
3
This business law is very crucial in maintaining an organization as without laws and
discipline business and life both become a matter of endurance. Laws are very
important for regulating the behavior of the individual within the firm. Modern business
world is very much complex in order to continue the growth of firm and to sustain in this
competitive market. Therefore, the scope of business laws is increasing simultaneously
rapidly.
This assignment will outline the meaning of this statement and the several sources of
the laws of UK and the role of the UK government in making process. Moreover, the
process of applying common and statutory law in the justice courts and health and
safety regulations and equal opportunities regulations will also be included in this
assignment for offering a clear idea to the learners. Furthermore, different impacts of
different legislations on the various business organizations will also be explored
completely in this task.
3
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Section 1
Task 1
a)Discus the meaning of this statement and the various sources of UK Laws
UK’s constitution states that the nature of the parliament in the country is sovereign.
Therefore, it can be taken into consideration that the country’s parliament has a lawful
authority which is superlative in nature (Williams, 2018). The parliament of the country
has the authorized power to dismiss as well as produce any kind of Act or legislation.
The basic framework of rules that are set by the government and the administration of
the state to regulate the actions of the civilians are defined as laws. Laws can be
divided into two categories namely criminal law and civil law. All the justice courts in UK,
has to abide by the legislation and regulations formed by the parliament.. When an
emergency situation occurs in the country, the parliament has the right to make basic
changes in the regulations. For e.g. in UK, the number of cybercrimes was increasing.
To combat the situation, the government came up with laws regarding cybercrimes.
Different Laws that are required to regulate a society are derived from case laws. Case
Laws are the sources of different kinds of laws. Common Law, Equity Law, Customs
and EU are the various examples of Case Laws. The various Case Laws are discussed
below:
Case Law or Common Law: In order to continue the law making process in a country,
Case Laws are very essential. The courts in UK, has the power to create new laws and
the new laws which are created has to be done in a comprehensive manner and their
statures has be construed. New statures are introduced by the government. Therefore,
it is the responsibility of the government to cover the underlying important conditions
(Llewellyn, 2016). The country in order to regulate the society implement the
legislature’s will. Mistakes or indistinctive languages which may occur while drafting a
law needs to be clarified by the court.
4
Task 1
a)Discus the meaning of this statement and the various sources of UK Laws
UK’s constitution states that the nature of the parliament in the country is sovereign.
Therefore, it can be taken into consideration that the country’s parliament has a lawful
authority which is superlative in nature (Williams, 2018). The parliament of the country
has the authorized power to dismiss as well as produce any kind of Act or legislation.
The basic framework of rules that are set by the government and the administration of
the state to regulate the actions of the civilians are defined as laws. Laws can be
divided into two categories namely criminal law and civil law. All the justice courts in UK,
has to abide by the legislation and regulations formed by the parliament.. When an
emergency situation occurs in the country, the parliament has the right to make basic
changes in the regulations. For e.g. in UK, the number of cybercrimes was increasing.
To combat the situation, the government came up with laws regarding cybercrimes.
Different Laws that are required to regulate a society are derived from case laws. Case
Laws are the sources of different kinds of laws. Common Law, Equity Law, Customs
and EU are the various examples of Case Laws. The various Case Laws are discussed
below:
Case Law or Common Law: In order to continue the law making process in a country,
Case Laws are very essential. The courts in UK, has the power to create new laws and
the new laws which are created has to be done in a comprehensive manner and their
statures has be construed. New statures are introduced by the government. Therefore,
it is the responsibility of the government to cover the underlying important conditions
(Llewellyn, 2016). The country in order to regulate the society implement the
legislature’s will. Mistakes or indistinctive languages which may occur while drafting a
law needs to be clarified by the court.
4
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Customs: Customs are considered another source of law that is applicable in the
society of UK. These customs are not passed neither they are written. This is due to the
fact that, these laws has been used in regulating the society for a long period of time
and thus they have now become a reliable source of law. Generally, customs are
referred to as age old traditions that are being practiced in the society so now they have
become laws.
Parliamentary Conventions: The strong regulations in a legislation or a law is known
as parliamentary conventions. When laws are violated it is known as breaching of law.
The parliamentary conventions are considered to be distinct laws of the legislation of
Britain. The conventions are particularly liable for compensating the dearth of written
charters in UK’s constitution (Gordon, 2015). The communication between the House
of the Commons and House of the Lords helps to create the conventions of the
legislation. This is done in between the sovereign and the assembly where the colonies
of Britain and the country itself preside.
Legislation: Legislation is the most important source from where laws of a particular
country can be extracted. These sources contain a huge variety of assertions. The
legislations have an ample number of authorities and responsibilities like regulation,
prescribing funds, authorization, restriction, enabling, declaration, prescribing and many
more. The legislation at the parliament has the authority to produce new and fresh laws.
The parliament also has the power to modify the existing laws.
b) Explain the role of government in the law making process and how statutory
and common law are applied in the justice courts
In any country, the government has an important role in making and drafting of the laws
which are required to regulate the activities of the civilians. This particular kind system
of parliament helps in defining the activities that the government engages itself
regarding the process of law making. The division of administration of a country is
responsible to draft laws. The vital activity of the parliament is to pass, reconsider and
alter the law. The power lies with the parliamentary body to introduce draft laws. But the
draft laws barely reach to the group state. The process of law making within the
5
society of UK. These customs are not passed neither they are written. This is due to the
fact that, these laws has been used in regulating the society for a long period of time
and thus they have now become a reliable source of law. Generally, customs are
referred to as age old traditions that are being practiced in the society so now they have
become laws.
Parliamentary Conventions: The strong regulations in a legislation or a law is known
as parliamentary conventions. When laws are violated it is known as breaching of law.
The parliamentary conventions are considered to be distinct laws of the legislation of
Britain. The conventions are particularly liable for compensating the dearth of written
charters in UK’s constitution (Gordon, 2015). The communication between the House
of the Commons and House of the Lords helps to create the conventions of the
legislation. This is done in between the sovereign and the assembly where the colonies
of Britain and the country itself preside.
Legislation: Legislation is the most important source from where laws of a particular
country can be extracted. These sources contain a huge variety of assertions. The
legislations have an ample number of authorities and responsibilities like regulation,
prescribing funds, authorization, restriction, enabling, declaration, prescribing and many
more. The legislation at the parliament has the authority to produce new and fresh laws.
The parliament also has the power to modify the existing laws.
b) Explain the role of government in the law making process and how statutory
and common law are applied in the justice courts
In any country, the government has an important role in making and drafting of the laws
which are required to regulate the activities of the civilians. This particular kind system
of parliament helps in defining the activities that the government engages itself
regarding the process of law making. The division of administration of a country is
responsible to draft laws. The vital activity of the parliament is to pass, reconsider and
alter the law. The power lies with the parliamentary body to introduce draft laws. But the
draft laws barely reach to the group state. The process of law making within the
5

government of UK carry out this particular process with the help of three varied kinds of
branches or stages. The importance of the various branches has been discussed below:
The Executive: the country’s executive has the Prime Minster and the cabinet. The
Prime Minister and the cabinet have the authority to make changes in the existing laws
as well as produce new ones (Rhodes and Dunleavy, 2015). These people also
possess the responsibility where they can come up with ideas regarding new policies
which later can be converted to a law. The laws if enforced later will help in making the
society better.
The Judiciary: UK’s judiciary includes the system of courts which are present in the
country. The courts are responsible for administering justice in the society. The judiciary
body and its members ensure that the laws drafted in the constitution are effectively
enforced in the country (Oliver, 2013). The application of the laws is the responsibility of
the judiciary. The UK’s judiciary plays a vital role in the drafting and the enforcement of
the laws.
The Legislation: The UK’s legislation consists of the legislative assembly. The
legislative assembly consists of the parliament and its members. The members of the
parliament are responsible for enforcing the laws and look after the matter that the laws
are being implemented in the correct direction. The enforcement of the developed of
created laws is the responsibility of the legislation. The activity of enforcement is carried
out by the help of a defined process of legislation.
The laws that are introduced by the legislative body of the country are known as
statutory laws. The importance of drafting such laws is to make the government able to
construct laws with the help of the chosen legislator and the system process of the
bureaucratic legislation. Only the judiciary body has the power to construe or implement
a new statutory law.
The judiciary created Common laws over a period of time. These common laws are then
passed with the help of the legislative bodies. When a particular law is applied with
some principles, the courts get assistance regarding the process of law development. In
this situation, the law is not more called a statutory law.
6
branches or stages. The importance of the various branches has been discussed below:
The Executive: the country’s executive has the Prime Minster and the cabinet. The
Prime Minister and the cabinet have the authority to make changes in the existing laws
as well as produce new ones (Rhodes and Dunleavy, 2015). These people also
possess the responsibility where they can come up with ideas regarding new policies
which later can be converted to a law. The laws if enforced later will help in making the
society better.
The Judiciary: UK’s judiciary includes the system of courts which are present in the
country. The courts are responsible for administering justice in the society. The judiciary
body and its members ensure that the laws drafted in the constitution are effectively
enforced in the country (Oliver, 2013). The application of the laws is the responsibility of
the judiciary. The UK’s judiciary plays a vital role in the drafting and the enforcement of
the laws.
The Legislation: The UK’s legislation consists of the legislative assembly. The
legislative assembly consists of the parliament and its members. The members of the
parliament are responsible for enforcing the laws and look after the matter that the laws
are being implemented in the correct direction. The enforcement of the developed of
created laws is the responsibility of the legislation. The activity of enforcement is carried
out by the help of a defined process of legislation.
The laws that are introduced by the legislative body of the country are known as
statutory laws. The importance of drafting such laws is to make the government able to
construct laws with the help of the chosen legislator and the system process of the
bureaucratic legislation. Only the judiciary body has the power to construe or implement
a new statutory law.
The judiciary created Common laws over a period of time. These common laws are then
passed with the help of the legislative bodies. When a particular law is applied with
some principles, the courts get assistance regarding the process of law development. In
this situation, the law is not more called a statutory law.
6
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Understanding the underlying meaning of the stature is the responsibility of the court. If
the meaning of the stature is not clear among the members of the court, then these kind
of laws goes for an amendment to the legislation. When the court is interested regarding
the amendment process it makes the necessary changes that are required so that the
law can be used in different situational context.
When an individual is caught under disobeying the common law or the case law, they
are summoned to the court or are liable to get fined. If the accused is found guilty of
committing some grave crimes he or she can be put behind the bars. The court of
justice has been summoning individuals who carry the responsibility of making the
society a better place by creating new laws and regulations. The court also looks into
the matter that, the laws are being followed by the individuals in the society in the
correct manner. When a individual is found guilty of some petty crime he or she is liable
to fines, it they are not being able to pay the fine they are summoned to the court.
7
the meaning of the stature is not clear among the members of the court, then these kind
of laws goes for an amendment to the legislation. When the court is interested regarding
the amendment process it makes the necessary changes that are required so that the
law can be used in different situational context.
When an individual is caught under disobeying the common law or the case law, they
are summoned to the court or are liable to get fined. If the accused is found guilty of
committing some grave crimes he or she can be put behind the bars. The court of
justice has been summoning individuals who carry the responsibility of making the
society a better place by creating new laws and regulations. The court also looks into
the matter that, the laws are being followed by the individuals in the society in the
correct manner. When a individual is found guilty of some petty crime he or she is liable
to fines, it they are not being able to pay the fine they are summoned to the court.
7
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Task 2
1.Health and Safety regulations
The healthcare companies adapt to a number of health and safety regulations so that
they can protect their workers in case of hazards which can occur in the workplace.
Employees are motivated with the help of the introduction of the safety measures. This
helps the employees to work better using their full potential. When workers are provided
with training regarding health and safety measures they can help themselves if any
accident occurs in the workplace. It is the duty of the management to recruit employees
who are knowledgeable and experienced (Hale et al., 2015). This will ensure that health
and safety measures are looked after in the workplace. There should be proper
electrical facilities and ventilation in the workplace so that a comfortable atmosphere
prevails in the workplace. Working in a comfortable environment increases the potential
of the employees. The workplace should have refreshment facilities and clean
washrooms. The passageways in the workplace should be kept clean and tidy. Proper
dry signs should be provided to prevent accidents due to water spillage. The
organization should conduct regular health checkup programs so help the employees
regarding their health issues. This would keep the employees healthy. Workers who
engage themselves in manual labor should be given proper guidance regarding their
weight. Manual labors should keep a check on their weight (Healy, 2016). This would
enable them to work. More weight results in fatigue and the output of the employees
decreases. The employees should be given proper training regarding handling of risky
machines. This would decrease cases of accidents. When an employee is injured at the
workplace he or she should be given immediate first aid and proper medication. The
employees should be given adequate vacations and holidays. Health and safety
regulations should be incorporated in the business operations of JPM Publishing. This
would increase the contentment among the employees which would result in building a
good brand image in the market. This would help the organization to raise funds from
the market.
8
1.Health and Safety regulations
The healthcare companies adapt to a number of health and safety regulations so that
they can protect their workers in case of hazards which can occur in the workplace.
Employees are motivated with the help of the introduction of the safety measures. This
helps the employees to work better using their full potential. When workers are provided
with training regarding health and safety measures they can help themselves if any
accident occurs in the workplace. It is the duty of the management to recruit employees
who are knowledgeable and experienced (Hale et al., 2015). This will ensure that health
and safety measures are looked after in the workplace. There should be proper
electrical facilities and ventilation in the workplace so that a comfortable atmosphere
prevails in the workplace. Working in a comfortable environment increases the potential
of the employees. The workplace should have refreshment facilities and clean
washrooms. The passageways in the workplace should be kept clean and tidy. Proper
dry signs should be provided to prevent accidents due to water spillage. The
organization should conduct regular health checkup programs so help the employees
regarding their health issues. This would keep the employees healthy. Workers who
engage themselves in manual labor should be given proper guidance regarding their
weight. Manual labors should keep a check on their weight (Healy, 2016). This would
enable them to work. More weight results in fatigue and the output of the employees
decreases. The employees should be given proper training regarding handling of risky
machines. This would decrease cases of accidents. When an employee is injured at the
workplace he or she should be given immediate first aid and proper medication. The
employees should be given adequate vacations and holidays. Health and safety
regulations should be incorporated in the business operations of JPM Publishing. This
would increase the contentment among the employees which would result in building a
good brand image in the market. This would help the organization to raise funds from
the market.
8

2.Equal Opportunities regulations
Equal opportunities regulation was made in UK for reducing down the prejudice
activities within the firm. Employment equality laws are made to offer all the facilities
and opportunities equally to all the employees of an organization. Equal opportunities
regulations include sex discrimination Act 1975, Equal pay Act 1970, Human Rights
1998 and Equality Act 2010 to ensure safety and better working environment within the
organization (Sargeant, 2017). Through implementing this act, it has been illegal to
discriminate anyone on the basis of colour, gender, sex, national origin, religion etc. The
government is taking active participation in implementing and regulating these equal
opportunities regulations in order to ensure betterment of the employee’s lifestyle.
Sex Discrimination Act 1975:
Sex discrimination act was implemented in the year 1975 for ensuring the employees
from the discrimination based on their gender (Legislation.gov.uk 2018). This Act
concerned training, education, employment, harassment, the provision of service and
goods. Equal opportunities commission was made for supporting the act that has the
aim of working towards the elimination of the discrimination (Conley, 2014). According
to this act, both of the men and women employees should have the equal growth
opportunities within the firm.
Equal Pay Act 1970:
According to this Equal Pay Act, employees of an organization have the right for
receiving equal amount of pay as per their job roles and responsibilities. This act was
implemented to ensure equal payment to the all employees of an organization (Gelter,
2016). Moreover, this act plays a crucial role in enhancing the relation among
employees of a firm.
Human Rights Act 1998:
9
Equal opportunities regulation was made in UK for reducing down the prejudice
activities within the firm. Employment equality laws are made to offer all the facilities
and opportunities equally to all the employees of an organization. Equal opportunities
regulations include sex discrimination Act 1975, Equal pay Act 1970, Human Rights
1998 and Equality Act 2010 to ensure safety and better working environment within the
organization (Sargeant, 2017). Through implementing this act, it has been illegal to
discriminate anyone on the basis of colour, gender, sex, national origin, religion etc. The
government is taking active participation in implementing and regulating these equal
opportunities regulations in order to ensure betterment of the employee’s lifestyle.
Sex Discrimination Act 1975:
Sex discrimination act was implemented in the year 1975 for ensuring the employees
from the discrimination based on their gender (Legislation.gov.uk 2018). This Act
concerned training, education, employment, harassment, the provision of service and
goods. Equal opportunities commission was made for supporting the act that has the
aim of working towards the elimination of the discrimination (Conley, 2014). According
to this act, both of the men and women employees should have the equal growth
opportunities within the firm.
Equal Pay Act 1970:
According to this Equal Pay Act, employees of an organization have the right for
receiving equal amount of pay as per their job roles and responsibilities. This act was
implemented to ensure equal payment to the all employees of an organization (Gelter,
2016). Moreover, this act plays a crucial role in enhancing the relation among
employees of a firm.
Human Rights Act 1998:
9
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Human rights act is an act of the UK’s parliament for offering all the rights to individual
that are contained in the European conventional on human rights. It plays a crucial role
in increasing the living standards of individuals through protecting the basic rights of the
employees within the organization (Legislation.gov.uk. 2018).
Equality Act 2010:
This Equally Act allows maintaining and treating all the employees equally within the
organization. This act stated that all the employees should have the all benefits that
they deserved as well as are not discriminated in any case (Smith, 2018). It protects the
employees and everyone from several types of discrimination within or outside the
organization. In order to make this act easy to understand, the government has
replaced this act with the previous discrimination law.
3.General Data Protection Regulation (GDPR)
The legislation regarding General Data Protection Regulation helps in a protection of
the data in a business organization. This legislation is of vital importance because it
provides security to the consumers so they do not encounter any kind of fraudulent
attempts. Every business organization has some rules and regulations that help them in
the protection of their important data. The employees of the organization are provided
with proper training regarding the handling of the important data. Business
organizations implement some policies which help them to keep their data safe and
secure. Data protection officers who are knowledgeable are recruited by the
management of the organization who are responsible for the compliance of the data
which is available to the company (Wachter et al., 2017). If the company acquires data
from any third part, it is the duty of the company to delete the data after the purpose is
served. In order to protect personal data, the company uses some data protection acts.
Sometimes data leakage occurs during the process. To prevent this, data privacy
setting should be increased.
The General Data Protection Regulation Act was implemented in 14th November 2016.
The act helps in the protection of the data which is provided by the consumers and the
employees to a particular organization. Without a legal permission or base, personal
10
that are contained in the European conventional on human rights. It plays a crucial role
in increasing the living standards of individuals through protecting the basic rights of the
employees within the organization (Legislation.gov.uk. 2018).
Equality Act 2010:
This Equally Act allows maintaining and treating all the employees equally within the
organization. This act stated that all the employees should have the all benefits that
they deserved as well as are not discriminated in any case (Smith, 2018). It protects the
employees and everyone from several types of discrimination within or outside the
organization. In order to make this act easy to understand, the government has
replaced this act with the previous discrimination law.
3.General Data Protection Regulation (GDPR)
The legislation regarding General Data Protection Regulation helps in a protection of
the data in a business organization. This legislation is of vital importance because it
provides security to the consumers so they do not encounter any kind of fraudulent
attempts. Every business organization has some rules and regulations that help them in
the protection of their important data. The employees of the organization are provided
with proper training regarding the handling of the important data. Business
organizations implement some policies which help them to keep their data safe and
secure. Data protection officers who are knowledgeable are recruited by the
management of the organization who are responsible for the compliance of the data
which is available to the company (Wachter et al., 2017). If the company acquires data
from any third part, it is the duty of the company to delete the data after the purpose is
served. In order to protect personal data, the company uses some data protection acts.
Sometimes data leakage occurs during the process. To prevent this, data privacy
setting should be increased.
The General Data Protection Regulation Act was implemented in 14th November 2016.
The act helps in the protection of the data which is provided by the consumers and the
employees to a particular organization. Without a legal permission or base, personal
10
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data cannot be processed. When storage of data occurs in such a process so that it
cannot be accessed with additional information, this method is known as
‘pseudonymisation’ (Goldstein and Harron, 2018). The method which is used to replace
any kind of sensitive data it is known as tokenisation. When an individual is processing
some kind of personal data, they have the complete right to have entire knowledge
about the particular data. The controller of data should have all the records regarding
the processed data so that the controller can present it in front of the supervisor when
the supervisor demands for it. When there is a breach in the data, the individual who
processes the data should inform the situation to the data controller. This is done to
avoid mishaps. The business organizations should conduct auditing of the data in
regular intervals. The JPM Publication should incorporate the GDPR in the organization
so that all the data in the organization can be protected. This would have a positive
implication on the business.
11
cannot be accessed with additional information, this method is known as
‘pseudonymisation’ (Goldstein and Harron, 2018). The method which is used to replace
any kind of sensitive data it is known as tokenisation. When an individual is processing
some kind of personal data, they have the complete right to have entire knowledge
about the particular data. The controller of data should have all the records regarding
the processed data so that the controller can present it in front of the supervisor when
the supervisor demands for it. When there is a breach in the data, the individual who
processes the data should inform the situation to the data controller. This is done to
avoid mishaps. The business organizations should conduct auditing of the data in
regular intervals. The JPM Publication should incorporate the GDPR in the organization
so that all the data in the organization can be protected. This would have a positive
implication on the business.
11

Section 2
a) In both cases, you are to provide appropriate legal advice based on case law or
statutes to;
i) Champion Ltd on whether the creditor has legal powers to do what they
threatening and the processes for liquidation.
The case scenario which has been provided, the creditors of the company are
threatening them. The creditors have a filed a case regarding the company has filed up
a petition regarding winding up. In a company, creditors are the people who have
specific property inside the organization (excerpted from case study). Debtor’s property
is kept safe by the creditors so that security is ensured. These creditors are known as
secure creditors. In this case study, any kind of security property from the organization
named Champion Ltd is not possessed by the creditors. Therefore the creditors in
Champion Ltd are known as unsecured creditors. The creditors remind the debtors
through telephonic conversation. Sometimes collectors are sent to the house of the
debtors (Kilpi and Elo,2017).The creditors can also increase the rate of interest if they
wish to do so. Champion Ltd has failed to return the amount of loan which they had
taken. Now the creditors have the right to overtake their property. In the case scenario
which has been provided, the creditors do not possess any property which they can
show as their security. So they have the right to file a lawsuit against the company
which is insolvent. A threat regarding petition for winding up is given by the creditors.
According to this petition the organization will be enforce to liquidate their assets and
the orders of liquidation will be given by the court.
Receivers may be appointed by the creditors and these people will be responsible for
collecting the amount of debt from Champion Ltd. In some cases it has been observed
that, debtors liquidate their assets when they are unable to pay back the amount of the
loan (excerpted from case study). A third person may be employed by the creditors who
will examine the economic scenario of the organization. When the assessment
regarding the financial condition of the organization is done, the two parties that is the
creditors and debtors can negotiate and come to so mutual terms for settlement. If this
12
a) In both cases, you are to provide appropriate legal advice based on case law or
statutes to;
i) Champion Ltd on whether the creditor has legal powers to do what they
threatening and the processes for liquidation.
The case scenario which has been provided, the creditors of the company are
threatening them. The creditors have a filed a case regarding the company has filed up
a petition regarding winding up. In a company, creditors are the people who have
specific property inside the organization (excerpted from case study). Debtor’s property
is kept safe by the creditors so that security is ensured. These creditors are known as
secure creditors. In this case study, any kind of security property from the organization
named Champion Ltd is not possessed by the creditors. Therefore the creditors in
Champion Ltd are known as unsecured creditors. The creditors remind the debtors
through telephonic conversation. Sometimes collectors are sent to the house of the
debtors (Kilpi and Elo,2017).The creditors can also increase the rate of interest if they
wish to do so. Champion Ltd has failed to return the amount of loan which they had
taken. Now the creditors have the right to overtake their property. In the case scenario
which has been provided, the creditors do not possess any property which they can
show as their security. So they have the right to file a lawsuit against the company
which is insolvent. A threat regarding petition for winding up is given by the creditors.
According to this petition the organization will be enforce to liquidate their assets and
the orders of liquidation will be given by the court.
Receivers may be appointed by the creditors and these people will be responsible for
collecting the amount of debt from Champion Ltd. In some cases it has been observed
that, debtors liquidate their assets when they are unable to pay back the amount of the
loan (excerpted from case study). A third person may be employed by the creditors who
will examine the economic scenario of the organization. When the assessment
regarding the financial condition of the organization is done, the two parties that is the
creditors and debtors can negotiate and come to so mutual terms for settlement. If this
12
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