Business Law Report: Case Studies of Champions Ltd. and Amber Ltd.

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BUSINESS LAW
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Contents
INTRODUCTION...........................................................................................................................................3
SECTION 1....................................................................................................................................................4
TASK 1......................................................................................................................................................4
(LO1 AND LO2).........................................................................................................................................4
TASK 2..........................................................................................................................................................8
(LO3)........................................................................................................................................................8
SECTION 2..................................................................................................................................................11
(LO4)......................................................................................................................................................11
CONCLUSION.............................................................................................................................................15
REFERENCES..............................................................................................................................................16
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INTRODUCTION
Business Laws inculcates all those related laws that are required by a business for starting and
performing various business operations. These laws help ensure that the newly started business
or already an existing one faces no kind of injustice and partiality in any matter. Business laws
help organizations who do not have a powerful back in safeguarding and securing their
interests against biased practices. This assignment would lay the application of business laws in
different businesses along with the impacts that it has on the process of decision-making for
the organization and its related performance output. The assignment would express the nature
of the legal systems and how the businesses get affected by the legislation. It would also
provide an insight into the law-making the procedure and the role that the government plays in
it. The last part of the assignment would consist of two case analyses based on Champions Ltd
and Amber Ltd. along with providing appropriate suggestions for the same so that the issues
can be resolved to keep business laws as the base.
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SECTION 1
TASK 1
(LO1 AND LO2)
The government of the United Kingdom proclaims its legislative program with an opening
speech from the Queen which is known as the “Queen’s Speech”. This speech by Queen is
delivered at the inception of parliament session where an event is carried out in the name of
“State Opening of the Parliament”. This sumptuous event symbolizes the history, culture and
politics of the British in front of large audiences.
A. PARLIAMENT SUPREMECY
In the constitution of the United Kingdom, it is stated that the “Parliament is Sovereign”, which
means that the parliament is considered to be the supreme authority. Therefore, the
parliament of the United Kingdom has the authority to make or break any law. The future
parliament that would come into action has full right over changing the law that was created by
the earlier parliament. This supremacy of the parliament ensures that it has dominating power
over other legal foundations which includes the legal decision-making bodies. Also, it has the
authority to change the present senatorial body existing. The beliefs that parliament suggested
has now developed and expresses that the parliament has full authority over creating any law
and no senatorial body can limit the succeeding parliamentary authority because they do not
have any right to make any law or changes in the law passed by the succeeding parliament. This
pertains to the ultimate and unlimited powers. There is nothing written in the United Kingdom’s
constitution about the parliament to act in a specified manner.
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B. GOVERNMENT’S ROLE IN THE PROCESS OF LAW MAKING ALONG WITH THE COMMON
LAW APPLICATION
Government of the United Kingdom has a very vital role to be played in the law-making
procedure. There are various steps that are involved in the law-making process which involves:
Initially, the bill is written by the lawyers in accordance with the aspects conveyed by the
government that has detailed information about the law. Then steps are initiated involves First
Reading, where the bill reaches and is read to the House of Commons. Then Second Reading,
where the motive and major areas of the bill are discussed and MP’s vote to decide that bill be
proceeded or not. Then Committee Stage comes, where the bill is presented to the House of
Commons for detailed reading and also proposes changes to make (if any). The Report Stage
further performs a detailed examination along with the decision of making further amendments
or not. The Third Stage is again presented to the House and then it is sent to the House of Lords
for changes and then sent again to the House of Commons. Finally, Royal Assent, where the
Houses agree on the bill then sent to the Queen for final approval and then known as the “Act
of parliament”.
Application related to Statutory Laws
A statute is an act of parliament that is passed by the senatorial authority. Therefore, the
resultant body of law from the statute is known as statutory Laws. These laws are different
from the regulatory and admin law that are the directorial bodies pass. Different acts related to
the private and public acts from specified areas of the United Kingdom are represented in this
framework. Here, the laws that are passed by the parliament needs to get approval and for
that, it requires techniques like rules and regulations of the statutory laws. For further approval
rules and regulations by the state and local government are taken into consideration.
Application related to Common Laws
The laws that are not in a written format but are based on the legal pattern are known as
company law. It has affected the decision-making where the result cannot be judged based on
the laws written. These are taken into consideration by the judgement of the court. The legal
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process of the criminal offence is judged by the criminal section of the court along with the
House of Lords depending upon the criminal intensity if in case the intensity s high then actions
taken are strict.
C. POTENTIAL IMPLICATIONS OF VARIOUS LAWS IN BUSINESS
EMPLOYMENT LAW
It aims at focusing on regulating relationships within the employers and employees. This helps
in securing the employee's interest against biases and unnecessary dismissal. It encompasses
no biasness, harassment and potential bullying among employees. Also, it ensures that the
hiring process conducted by the employers is fair enough and no biasness is made on the factor
like age, gender, caste, etc. Also, this law assists in securing the rights of the employees at the
time termination which might affect them.
Example,
Employment Law focuses on securing the rights of the staff at the organization level by ensuring
that the staff does not face any kind of biasness, potential bullying or dismissal which can be
done by applying Equality Act, 2010. This act focuses on protecting the interest of the staff by
eliminating any kind of biasness at the organization. It mainly focuses on giving equal treatment
to all staff members.
COMPANY LAW
It is also known as business laws that are abided by various rules and regulations that rotate
around these laws, but company law is considered to have its own independent identity. This
law helps the organization in creating wealth along with easy assistance of the capital and the
corporate governance required. Also, the business is undertaken as an important part of a life-
cycle as it has its own defined identity, set of rules and policies, size, functioning, etc.
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Example,
The Companies Act, 2006 is considered to be an example for company law. It helps in providing
a positive impact on the company by creating some mount of wealth using the presently
available capital.
CONTRACT LAW
It aims to govern, interpret and enforce the agreement which is associated with the trading of
goods and services or some monetary aspects. Here, if the contracts are made verbally then
also it is enforceable by the law. When two parties agree to trade something valuable among
each other then there is the creation of a contract. Every organization is involved in buying or
selling of goods or services which is under some contractual terms.
Example,
Contract law focuses on having an agreement between two parties for the exchange of product
or services. Thus, Unfair Contract Act, 1977 is the most apt example of this, which manages the
contracts that are prohibited from performing operations under the law created by the
government.
Thus, it can be summarized that the laws that are made by the government are a benefit for the
employees because if they face any kind of difficulty in the organization they can always convey
their grievance to the organization and keeping in mind the laws required actions can be taken.
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TASK 2
(LO3)
An organization named JPM is initiated by a group of three friends, where they are in need to
acquire funds so that they can expand their operations. The legal impacts that the business of
JPM might face can be:
1) HEALTH AND SAFETY LAW
a) Health and Safety Management Act, 1999
Health and Safety Management Act, 1999 aims at providing some major duties to the employer
which can influence the businesses and its operations which can be established and performed
as this can be established by analyzing the risk factors that prevail regarding the health and
safety of the staff along with identifying the risk so that it can be decreased. The duties also
involve appointing proficient workforce for keeping a check of the health and security of the
organization along with providing them with adequate training for safety and health. This act
helps in bringing positivity and motivation at the organization.
b) Workplace Act, 1992
Workplace Act, 1992 aims at protecting the rights of the employees by safeguarding their
health and safety at the workplace. There are various impacts on the business because of this
act like Proper eating and working space should be provided to the staff members along with
proper lightening and sanitation facilities. Appropriate facilities include a refreshment facility,
water-drinking facility, security, etc. This helps in bringing positivity in the company along with
the right sense of motivation that helps the staff in attaining the organization targets. This act
ensures that the employees are given a safe and secured workplace.
Thus, this act helps in bringing a positive impact on the organization by motivating them for
carrying out business operations. Also, this act helps in regulating the security and health of the
workforce.
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2) EQUALITY IN THE ORGANIZATION
a) Equality Act, 2010
Equality Act, 2010 aims at legally protecting the interests of the employees from biasness and
discrimination at the organization. It implies that when recruiting an individual for a job position
there should be no kind of biasness based on various demographics. The workforce of the
organization should be treated equally regardless of its demographics. This act helps in
removing the root of biasness, discrimination, bullying, etc. and it tends to promote the sense
of equality among the employees. This act helps in resolving the issues regarding
discrimination, partiality, etc. as a result make working of the organization smooth.
b) Law of Equality
Law of Equality focuses on eliminating the sense of discrimination among the employees based
on various demographic factors like gender, age, religion, etc. It is considered to be illegal
discriminating with regards to education, public and private services. The discrimination is
outlaw because of the various statutory tools regarding the status of work, employees
permanently, employees temporarily, etc. Also, when there is no sense of discrimination among
the workforce they gain a sense of positivity in working.
c) Union Relation Act
Union Relations Act focuses on the legitimate duties that the trade unions have along with
protecting the interest and rights of the workers for the organization of a union. It lays down a
framework for the workers for engrossing them and bombarding in the team for the creation of
an amicable environment at the organization for carrying out operations. It assists the workers
that are in a union to take actions against the by announcing a strike along with coming in
support of the interests. Also, every organization needs to focus on protecting the rights of the
workforce so that the productivity of the organization increases.
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3) GENERAL DATA PROTECTION REGULATION (GDPR)
General Data Protection Regulation aims at focusing on securing the personal information of
the employees and the individual that is confidential and cannot be shared. It ensures that the
information of the customers is handled with care and security so that it is not leaked. It also
helps in improving the rights of an individual and assists in providing security of its data. GDPR
is a major step that has been initiated by the government to secure the staff's personal
information in the United Kingdom. This Data Protection Act 1998 was taken place by the
amended act of Data Protection, 2018.
a) Data Protection Act, 2018
The Data Protection Act, 1998 was reconsidered by the parliament of the United Kingdom and
then came into action with various amendments in 2018. It was established to safeguard the
personal details of the staff members so that the government and various other organizations
cannot use it. It helps in securing the information and personal details of the individuals by
laying down various rules and regulations for using the information. Every organization can
establish the Data Protection act, 2018 so that the personal details of its employees are
safeguarded. This act is implemented to the data that is stored in personal computers, which
makes sure:
 Inspection of the personal details and processing it
 Establishing the Data Protection Authority for imposing rules
 The organization is liable for the breach of the act
 Subjected rights to be protected
There are different rules and regulation that are taken into consideration in this act that
involves policies like safeguarding the personal details of the individual from getting it leaked.
Also, it assists in protecting the beliefs, opinions, health, sexual life, etc. of an individual along
with the protection of personal information.
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SECTION 2
(LO4)
1. CHAMPION LTD. CASE ANALYSIS
a) LEGAL ADVICE TO THE ISSUE
The solution that can be suggested to Champion Ltd. is winding-up petition. A winding-up
petition is a process where the petition is presented in front of the court and if it gets the
approval it results in winding-up the business and its operation. It is a way by which a creditor
can undertake legal action against the organization due to the non-payment of his money.
Here, the creditor who has provided more than £750 can apply for a winding-up petition.
Here, the court can attempt to know the majority of creditor’s desires along with the
majority of the opposition in relation to the petition and then passes an order. The court
has full right over going through the petition filed by the creditor.
The case of Champions Ltd. suggests that it must understand the legal defenses that are
available so that the organization can be stopped from being a target of the wind-up petition.
The organization can clear the debts of the creditors by paying them the amount without
showcasing their insolvency. This all depends on the stage that the company is in the procedure
of compulsory liquidation. There are a few methods that can help in preventing the winding-up:
REPAYMENT TO THE CREDITORS
The amount that is to be repaid to the creditors of the organization can be carried out by opting
for the process of liquidation wherein Champion’s Ltd. can sell out all its assets and shut down
its business operations and the money received can be used for repayment of the creditors.
DISCORD IN DEBTS
If any discord occurs in the debt amount of Champions Ltd. it has the right to apply for a legal
application to the court against the altercation that has arisen under the debt amount. But the
application that has been applied for should be having proper proof of the difficulty that is
being faced.
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