Business law is a branch of civil law which deals with regulating the business working. It consists of umbrella of legislations which includes contract, company, employment law, etc. this project covers the following-
- Basic nature of legal system of UK.
- Potential impact of laws on business.
- Appropriate legal solutions for the business problems.
- Appropriate legal solutions which must be based on alternative legal advice.
Law is defined as the rules which defines as system of rules created by government in the nation for regulating and controlling the action of people. Or business. It is also considered to be as binding customs. Business Law is refers to as a regulation which is created by government or parliament in nation for governing as well as regulating commercial practices. The purpose of implementing business law is to assist an organisation in identifying the legal solutions to different problems. Business law dictates the way a company should be established and run. It is very much important for an entrepreneur to develop the understanding about company as well as business laws, as this will assist them in making suitable decisions. Business law governs all the aspects establishing, managing and also closing of an enterprise. Objective of business law is to ensure fair trade practices.
The purpose of project is to develop the understanding about business law as well as nature of legal system in United Kingdom. It also has focus on analysing the way different laws have impact on business. Report will also include the legal solution to the problems faced by companies.
P1 Different sources of law in UK
The term law is refers to as code of conduct formed as well as enforced by government or parliament in the nation in order to regulate actions of people. Business law can be defined as regulation implemented by legal authority in the country for controlling the business practices. The purpose of business law is to prevent industries or companies from unfair competition. The government can impose penalties for illegal trade or commercial practices (Kirton and Trebilcock, 2017).
It is very much important for an organisation to comply with the norm created by parliament or other regulatory authorities in the nation. As failure to comply with the legislation can have negative impact on the sustainability of firm.
Laws in English legal system governs the business practices of companies located in England and Wales. In legislative system of United Kingdom, Parliament is recognised as the House of Lords. Parliament is sovereign which means that it is the higher legal authority in English legal system which has power to design as well as enforce law in the country. Member in parliament has the authority to make changes or modification in existing norms. The decision made in parliament is final and are to be followed by all people as well as courts in the country. English legal system in United kingdom sovereign legislatures.
The statement principle of parliamentary sovereignty means in order to implement law in the country, government in the nation has to take permissions or approval from members in parliament. Parliamentary authority has right to approve or reject the bill or proposal provided by the legal authority. In legislative system in United Kingdom, no other legislative body has right to override the laws implemented by parliament. The doctrine of parliamentary sovereignty is important principle in UK constitution.
Doctrine of judicial precedents in English legal system make its different from the other legislative system in the world. In English legal system decision taken by judge in queen court is binding on lowers courts.
There are many laws in English legislative system which has been originated from following sources, these are :
Primary laws : It is also known as statutory legislations. These norms are originated by the act of parliament. The decision taken by parliamentary authority in the nation is binding on all courts. Objective of implementing the statutory legislation in the country is limit the unfair commercial or business practices.
Secondary law: It is also referred to as delegated legislation. The power to make law is delegated to government by legal authority in the nation.
Case laws: As per the hierarchical structure of English legal system, supreme court is the higher authority which has power to make important decisions. Judgement announced by judge in the supreme court is to be followed by lower courts. The decision is made by supreme court on the basis of judgement made in existing law suits.
Common law in UK legislative system is different from the law of other countries such as Germany and France in the EU which are influenced by Roman legal system. In a common law. Jurisdiction legislation are based on primarily by regulation made by judge set out in case law. In a civil law jurisdiction laws are established as well as implemented in a codified set of rules. Role of judges is to interpret and enforced rules.
European convention of Human right : There are few norms in English legal system which are highly influenced by norms in European legislative system. Before Brexit, UK used to follow the laws created by EU government, but after Brexit, legal authority in the country has planned to create its own legislations. Purpose of Convention of human right law is to protect human rights and fundamental freedom in UK. This law has been created as well as implemented by Council of Europe.
Statutory Laws are laws that have been written down and codified by the legislature. Statutory law is considered to be as a more formal body of the legal system which consists of written law. This legislation is mainly supported by code of conducts either mandating or prohibiting certain behaviours of people (Jones and Sufrin, 2016). Common law, on the other hand, allows judges to decide cases based on the rulings of prior cases with similar circumstances.
P2 Function of government in law making procedure
The government in the country have crucial role to play in law making procedure. Legal authority has important function to perform at each phase of procedure involved in law making. There are mainly two types of Bills, there are private and public. Objective of private bill is to regulate as well as govern specific business operation. Public bill has effect on all aspects of business (Symeonides, 2017). In English legal system public bill are created by government in the country , it can also be formulated by members in parliament.
The government has role to play from preparing the proposal to implementation of law. Formulation to implementation of legislation is lengthy procedure which include different phases these are :
At initial phase of the law making procedure, role of government is to identify the problems or issues faced by people or companies in the nation.
Preparation of bill : At The next step, function of legal authority is to analyse the appropriate solution and prepare the proposal which should consist of both problems and solutions. Once the proposal is prepared it is to be presented by government in front of cabinet ministers. If the bill is approved by the cabinet minister, then it is the duty of government to prepare formal document in order to convert proposal into bill. The bill can not be introduced in parliament until it has been specifically cleared for introduction by a meeting of PBL Committee. The Committee will consider the final (or near-final) draft of the Bill together with a range of other documents.
Parliamentary stages : Bills can be introduced in front of house of lords or commons. Role of government at this stage is to make decision based on nature of bill. It is required by legal authority to ensure that House has a balanced programme of legislation to consider each session.
First reading :After the conversion of proposal into bill, it is the duty of government to forward the same for further proceeding that is for the first reading in front of parliament.
Second reading : After the completion of first reading, role of government is to make changes as per the advice or feedback provided by members in parliament. At this phase of law making procedure, a short debate on important principle of bill might take place. In this stage , role of government or legal authority is to explain the main provisions related to the bill. No changes can be made by government in the government at this phase (Martin, 2015). Voting on the bill might take place, If bill get the maximum, votes that it can be forwarded for further proceedings.
Committee stage : After the second reading , the function of government is to present the bill fore special committee for investigation. At this stage , effectiveness of bill is measured. A Public Bill Committee in the Commons can take oral and written evidence on the Bill
Report stage : The next stage is report stage, in this phase a short discussion on the amendment in the bills are made.
Third reading : In this stage, of law making procedure, general discussion of the Bill which invariably takes place immediately after Report. This phase might also include final decision by members in parliament regarding the approval or rejection of bill.
If in situation , bill gets rejected by members in Parliament , then in such case , its is duty of government to find alternative solution to the problems.
Royal assent :A Bill that has been passed by both Houses becomes law once it has been given Royal Assent than it can be implemented in the country as an act or law.
P3 Impact of different laws on business
In given case scenario, There are three person name Marie, James and Penny those who are close friends. They are planning to transform their private organisation into public limited company on the basis of advice provided by their accountant. This specific advice has been provided by accountant in order to provide Marie, James and Penny an ease in raising capital for expanding business. In given case scenario, it is very much important for Marie, James and Penny to develop the understanding about the effect of different laws on their business.
Health and safety regulations 1974:There has been amendment has been made in Health and safety law in 2014 and further changes were made in 2016. Health and safety regulation defines the duties as well as responsibility of employer towards employees (Schaltegger, Burritt and Petersen, 2017). As pet the health and safety act , it is the duty of employer to ensure the health, safety as well as welfare of workers at workplace. Employer is accountable for providing safe working environment to employees. According to health and safety law, employer is required to create the written policy which should consist detail about the way they intend to manage health and safety of workers within an organisation. It is the duty of employer to conduct risk assessment procedure before introducing new procedure, technology, equipment etc. at workplace (Fletcher, 2018). This specific norms cover following aspects such as use of technology such as computers, working with hazardous substance like chemicals, lifting operations. Etc.
As per the health and safety act, it is the duty of employer to provide all basic facilities to employees such as refreshment, ventilations etc.
Health and safety law has direct as well as significant effect on the culture as well as working environment within an enterprise. Health and safety of workers as well as customers in very essential within an enterprise. As increase in number of accidents at workplace can have direct as well as major influence on reputation of company and also on business growth.
Equal opportunity act : As per this law, all the employees at workplace should be provided with equal opportunity to participate in decision making procedure as well as other business activities. According to equal opportunity act, it is duty of employer to ensure that all the employees within an organisation are treated equally and proper system or procedure has been followed for delegating or distribution of work (Guild, 2017). Equal opportunity act , prohibits discrimination at workplace. Equal opportunity act is a part of labour law in United kingdom. The purpose of Equal opportunity act is to protect people from discrimination on the following basis such as gender , age , caste etc. This act or laws restricts or prohibits business which provide services to customers by discriminating against, harassing and victimising certain classes of people.
Equal opportunity act has direct as well as significant effect on human resource policies as well as practices.
General data protection regulation : this legislation has been formulated by government in the country. It is a primary law which defines the way human resource manager in an organisation is required to manage to maintain the confidentiality of personal information provided by employees. According to General data protection regulation, human resource manager in an enterprise is required to ensure that the information provided by workers are kept confidential and are protected. It is very much crucial for manager in a firm, to develop effective system or process for recording as well as storing the data provided by employees. Unauthorised access to information , disclosure of information without the permission of worker or misuse of data by third person can lead to the legal obligation on company. General data protection regulation also states that, an organisation which comprise more than 250 employees, needs to provide justification for collection of personal information from staff. In addition to this human resource manager in a firm is required to provide description about technical security measures adopted for protecting information from misuse or unauthorised access.
P 4 Suggesting appropriate legal solution to different business problems.
Legislative system in United Kingdom, does not provide people with right to threaten other parties for repaying debt. Threatening or causing harm top other person for not making payment is considered to be as unethical or illegal act.
It has been analysed from the given case scenario, that due to financial issues, Champion Ltd. Company is facing difficulty in repaying debt. In addition to this, an organisation has been defaulted on numerous
occasions to honour its payment to the bank for loans taken during the relocation. It has been identified from case study that, creditors are threatening company.
Case study of Champion Ltd. Company: In give case scenario, it has been found that an enterprise can liquidate. Liquidation is recognised as a situation or event in which a firm sell its assets to third party for repaying the debt. This process can be facilitated by creditors by taking permission from court (Posner, 2014).
In given case study, Champion Ltd. Company can take support from insolvency act. As insolvency act in English legal system is designed by government in order to assist business entities facing financial problems. This act provide firm a chance to rescues or reduce losses by distributing the burdens between the community, employees, creditors and other stakeholders.
The alternative solution to the problem faced by Champion Ltd. Company is that manager in an enterprise can facilitate negotiation with the creditors. As negotiation strategy will assist a firm in getting time for repayment of debt (Ayinla, Adebayo and Ahmad,2017). It will also aid an organisation in preventing the liquidation procedure. Other option suggested to champion Ltd. is that an enterprise can take legal suggestion from licensed insolvency practitioner. The another suggestion to manager in champion Ltd. Company is that they are required to develop the understanding about their as well as creditors rights. As this strategy will assist management in making suitable business decision. If in case, creditors are threatening continuously as well as they are unethical practices, then in such situation an enterprise can file law suit against creditors and a firm can protection through harassment act. Facilitating negotiation is considered to be as an appropriate measure for reducing credit pressure (Appelbaum and et.al.,2016). As this strategy or measures enables organisation to get additional time for repaying debt.
Taking financial assistance from family or friends, bank loan, Equity are some sources from where an enterprise can raise capital. Seeking financial support from financial institution is considered to be as an appropriate strategy for reducing the pressure created by creditors. It will also assist an organisation in overcoming liquidity trap and preventing the procedure of winding up of business. In addition to this manager in Champion Ltd. Company can take legal advice from Pro Bonn advisory institution (Lyons and et. al., 2016). These type of organisation provides legal solution on financial matters. The other sources from where Champion Ltd. Organisation can seek legal suggestion from is citizen advice office. It is required by manager in an organisation to design an effective accounting system, as this will help firm ion managing financial resources in effective as well as efficient manner.
Case scenario of Amber Ltd. Company: The term Contract is refers to as written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law. As per the contract law, It is required by the parties to follows certain principles in order to enter into legally binding mutual agreement. The important elements of valid contract are :
Offer : In order to enter into valid as well as legal binding contract , it is important for one party to present proposal or make offer to pother person. Offer can be defined as expression of willingness to enter into mutual as well as legally binding contract.
Acceptance : It is considered to be as a final and unqualified expression of assent to the terms of an offer.
Considerations: Contract law states that , it is very much important for parties to provide written consent , if they have intention or objective of entering into a valid contract. According to the contract law, parties in contract is required to follow terms and condition in an agreement. If in case any of the parties fails to fulfil their duty as per the terms and condition, in such case contract become void.
Prohibitory Injunction act in English legal system restricts person or company from performing specific action. The another is mandatory injunction in which parties are motivated for taking specific actions.Freezing injunctions are applicable generally in case of frauds,confiscatory proceedings and breach of trust. In context of given case scenario of Amber Ltd. Company, business by seeking support from Prohibitory Injunction act can only restricts Anderson from sharing the confidential information related to an organisation with third party. But management in an enterprise can not force Anderson for retaining the job (Allen and Kraakman, 2016). Injunction act in United kingdom is applicable in relation to nuisance,damage to reputation and maintaining privacy.
As per the case law, a worker cannot leave job without giving proper notice which generally applies to cases where an employee resigns in the heat of the moment. An employee might resign job only after giving proper notice and same is required to be accepted by employer. If in a case, employer does not accept the resignation, and then also employees leaves the job , it is considered to be as breach of contract. In the given case scenario, Amber limited organisation has high possibility of getting a prohibitory injunction, company has entered into an employment contract with Anderson.
P5 Justification for use of appropriate legal solutions.
In context of case scenario of Champion Ltd. Company, manager in business entity has been provided with legal advice to facilitate negotiation with creditors. This is considered to be as an effective legal solution to business problem, as it will assist firm in getting the time for arranging funds in order to repay debt. It will also help an organisation in maintaining the strong relationship with creditors. Negotiation strategy will support business entity in preventing or eliminating the further issues as a well as obligation which might arise due to delay in payment to creditors (Beatty, Samuelson and Abril, 2018). This method or techniques will also support creditors in ensuring that company will make payment and they do not have to suffer losses.
Negotiation is considered to be as an alternative dispute resolution mechanism which allows parties to facilitate discussion and reach to mutual agreement. It also parties to set their own rules as well as principle for resolving conflicts.
In case scenario of Amber Ltd. Company:An enterprise can apply prohibitory Injunction. Prohibitory injunction is considered to be as an effective measure which helps an organisation in protecting the confidential information obtained in a commercial relationship. It also supports an enterprise in restraining a breach of contract.
P 6 Recommending legal solution based on different country’s legal system
There are different sources from where people as well as companies can seek legal advice from these are :
Citizen advice office : These are the charitable institution which provides free legal solutions on different matters such as employment, housing, debt etc. The various principles on which these institutions are free service, confidentiality, independence and impartiality. Citizen advice office also provides online legal advice to people. Citizen advice bureau get financial assistance from government. These institutions have wide network which the help of which Citizen advice office provides services to people at different locations. There are approximately 23,000 highly trained volunteers those who supports institution in delivering professional services to clients. These institutions are considered to be as largest independent advice provider in UK.
Law centres:These are charitable organisation which offers free legal advice related to specific field. Law centres are located at different geographical region in the country in order to provide people an ease in availing services. Objective of law centre is to defend the legal rights of people who cannot afford to hire a lawyer. They are specialists working in their local communities to uphold justice as well as advance equality. Law centres Providing access to specialist legal help for the community through telephone or E-Mails.
Legal consultant : They are also recognised as Corporate law consultant. These institutions provide legal advice related to various business problems. Role of legal consultant is to promote expertise to the service user in a way that lies outside the structure of traditional legal representation. Legal consultant are generally solicitor who supports parties facing problems in legal proceedings. Solicitor are supported by barristers. Function of barrister is to present the case before the magistrate or judge in the court. It is the duty of solicitor to provide direction to barrister and help parties in preparing the legal documents which are to be presented in the court (Guerrina and Masselot, 2018). Legal consultant provides legal advice on employment as well as investment related matter.
Pro bona advice service – These type of institutions provides legal advice related to financial matters.
The another sources from where the people can get updates about the amendments in laws in the site of parliament which can be opened by using internet facility. Business entity can also utilise other sites on internet for identifying the appropriate legal solution for different problems.
It has been concluded from the project that business law is important in order to control the business practices and help an enterprise in identifying the legal solution to different problems. The another thing which has been concluded from the study is that company, employment and contract laws have direct as well as significant impact on business. The way different laws effects business policies as well as practices has been explained successfully. It has been concluded from the project that government plays important role in law making procedure. The other thing which has been concluded is that parliament is the major source of laws in English legal system. Report has highlighted the different sources of law in legislative system in UK. It is has been concluded from the assignment that employment law have direct as well as major influence on relationship between employer and employee. Another thing which has been concluded from the study is that creditors does not have legal powers to threatening. But creditors have power or authority to facilitate liquidisation procedure , for that also they are required to take permission from court.
The different legal advices has been provided in study on the basis of the problem being analysed in case scenarios.