Business law includes the law of sales, governing contracts and commercial papers. property, bailment and employment legislations. It also encompasses some issues regarding selling or buying a new small business, managing its activities as well as dealing with employees in an effective manner. It is essential for all commercial entities to follow all rules and regulations ethically. It will help them to face all external forces which put a huge impact upon organisation's practices (Jarvis, 2011). This project report will discuss various sources of business law and structure of English Legal system. Along with this, the document describes that government of UK plays a vital role in law making process for companies. Readers will also understand the way in which legal obligations impact upon employee’s performance and organisational growth. The report shows that managers have to find out various legal solutions in order to deal with the business problems.
P1. Structure of English Legal system and various sources of law
English law was formulated in 18th century for the betterment of business organisations. It is segregated into two categories such as – criminal and civil law. In addition, English legal system is considered as hierarchical constitution of judiciary system.
Supreme Court has a vital role in the formulation of hierarchical judiciary system that is also called as the House of Lords. In this light, all courts are binding at the time of decision making process of Supreme Tribunal. It is constituted as the highest English regime. European assembly of justice is liable in order to joint all tribunals of UK (Nichols, 2012). Its decisions regarding human rights are not binding with domestic tribunal of United Kingdom. It is essential for the UK tribunals to follow all rules and regulations of supreme judicature.
Afterwards, Court of Appeal is involved in the hierarchical framework of English Legal system. It is divided into two parts such as Civil and criminal laws. Along with this, the decisions of civil court are more valuable and effective that must be followed by European judicature. Magistrate and county courts are not linked with any other courts and they are also not binding with their own decisions.
(Source: English Law, 2017)
There are given following sources of law that are stated as under: -
- Legislations – The UK law is described as partly written and wholly un-codified in which some lengthy constitutions are in written form whereas, some laws are just passed by the government. Therefore, such rules and legislations are applied in all over the country that is essentially followed by its people, societies and commercial firms also. Parliament of the nation has right to defuse or enact any law and legislations. These ordains are mostly superior than other sources of law and it cannot be challenged by anyone in court rooms. There are two types of legislations such as Primary legislations that involve the acts of parliament and that are also depict by the same.
- Case law – It is a statement of law that is made by a judge by the discussion of other judges and civil authorities. Each jurisdiction in case law is evolved by its own forms. There are two types of this source such as criminal and civil law. Criminal law basically deals in crimes and their affects. In this light, there are diverse criminal laws executed that offense against the whole society. It helps people as to provide them justice. Apart from this, civil law is also known as Roman law and its systems are codified as the primary sources of law (Boyarsky and Gora, 2012). Civil law includes legal ideas and concepts that are derived from the Corpus Juris Civils.
- Constitutions – It helps in the execution and distribution of power between some executive parts and judicial branches of legal system. Along with this, it is a fundamental principle by which an organisation as well as a state is governed. Such laws are written on a set of legal documents which are called as constitutions. In business organisations, constitutions are concerned with their various levels and departments.
Below mentioned are some laws that are demonstrated in English legal system: -
- Employment rights act – The act is passed in 2008 by the UK government in order to preserve their rights. The law also involves Wages act, redundancy payments act and employment protection act. Employment rights act focuses on unfair dismissal, less payments, reasonable notice before termination and furthermore. Employees have right to choose flexible working shifts as per their convenience.
- Pension Act – The law was established in 2008 by the parliament of UK with signifies the changes in pension amount which is paid to retired employees. In legal terms, all staff members have equal right to get equal pension as per their roles and working period (Munch, 2012). Along with this, it is the legal responsibility of employers to provide pension to their workers after their retirement in a proper manner.
- Working time regulations, 1998 – It is implemented by European working time directives in the GB law. Employers do not have any right to keep their employees after working hours and if they do the same, they have to pay them extra as per their working hours. Working time regulation act also consists that employees are taken stipulates minimum rest breaks during their work.
P2. Role of government in law making
Government of United Kingdom plays a vital role in order to make various laws and legal regulations. It is an ethical responsibility of government to create various policies and strategies for the betterment of business organisations. Parliament performs three main functions worldwide like passing laws to represent the interest of citizens and to measure government's actions. Along with this, it also regulates legislative functions in order to introduce its own laws and acts. Parliament has power to approve, amend and reject the drafts of government laws (Schwartz and Scott, 2011).
Government of all countries create many acts and if parliament accepts the same, it is must be followed by all the people, communities and business organisations. These acts forces people to behave in an ethical manner. Below mentioned are the following steps in law making process of government such as: -
- Issues emerges on agenda of government – It is the first stage of law making process, in which issues are founded due to any elections. In UK, political parities are select their own government or head. There are some members of parliament, i.e. the house of commons and house of lord. HOL are the person who are democratically elected by the public of the nation for next 5 years. Mostly, by election process is preferred if any MP dies or may retired. Apart from this, house of lords is consists with hereditary peers. Generally, it used 12 most senior judges that are sitting in the department of HOL but now detached form legislative assembly.
- Concepts for addressing any issues – Afterwards, now these MP's given various ideas and thoughts that how to resolve such issues or problems on individuals life style. Such solutions should be satisfactory and related with bill that will passed by the UK's government (MORÇÖL and Gautsch, 2013).
- Interested people and groups are asked – In order to make appropriate solution, parliament needs to consult with some people and groups who are facing this specific problem or may be related with it. With that, several surveys and activities are developed in order to understand the problem in an effective manner. There are two types of paper are included under this stage: -
White paper – It is document of policy which will be generated. Along with this, it is set the government of England subsequently in the context of future acts and laws.
Green paper – It seems as the performa of a bill. The main objective of green paper is to take reviews and feedbacks from people or the members of parliament.
- Cabinet ministers also have to agree on proposals – Under this stage, there is needed of permission of cabinet ministers while forwarding proposals to the government. If these ministers easily permits proposals so as law can be formulated in an effective manner. After that, proposal is selected which assists in drafting up the law activities of central government.
- Proposals are made into a bill – in this stage, it is the core responsibility of cabinet is to present the bill in between all members of house of lord and house of commons (Clark, 2011). For that, well qualified and skilled lawyers are appointed.
- Parliament scrutinises bills – It is the last stage of law making process. Under HOL and HOC, a bill goes in same procedure. In that, these steps are involved: -
First reading – The House of committee is read the bill and its included aspects. Nothing more is done at this stage.
Second reading – The bill is amended, under this step. MP's votes that the bill will be proceed or not in parliament.
Committee stage - Bill is promoted by the house of committee for its examination. If it is needed then further amendments are also created for this purpose.
Report stage – The committee provides reports towards debates as well as amendments and sent it back to HOC.
Third stage – In this stage, all committee members gives their perception upon the bill, and give votes also in the same.
Afterwards, House of Commons is forwarded the bill to House of Lords and then this section make relevant changes if it is required. Additionally, it is necessary both the houses should agree on the bill in order to convert a bill into a law.
At last, there is an approval is taken by Monarch that works under Royal Assent. Monarch always gives its advices to ministers even before giving approval.
It is made by government of the country.
It is created by the judiciary members.
Statutory prescriptive in nature.
Common law is intrusive in its nature.
P3 Impact of business law upon business organisations
If an business organisation follows all laws and legislations, it will helps it to perform ethically in target market. Business law forces managers as to fulfil their all corporate social responsibilities to attract more customers. UK's government has developed these laws that could influence all operations of the business: -
A). Employer's legal obligations, are described as below: -
- Occupational safety and health – It is an important obligation of commercial enterprises is to provide healthy and safe working environment to employees. This will help managers as to retain and attain staff members for a long term period (Trevino and Nelson, 2016). The occupational health and safety act, 1996 is liable in order to set some specific requirements for the hazardous working conditions and administrative practices of working environment.
- Workers compensation – It helps in rendering medical benefits to workers when they are injured during work. The workers' compensation acts says that managers needs to provide a medical insurance to all employees who are worked with heavy machineries or tools.
- Harassment – Working harassment is occurred at workplace by the threatening behaviour of employers towards their employees. In Europe countries can be seen in many areas, but mostly at work places. Harassment can be in any form i.e. physical, mental, financial etc. The law consists that, employees do have any right to hurt emotional sentiment of their workers.
- Equal opportunities – It is ethical or moral duty of managers is to give equal opportunities to their all workers. They do not have to make any discrimination on the basis of race, religion, moral, values and beliefs. Apart from, at the time of selection employers doesn't make any partiality among men and female workers.
B). In this above case study it has been concluded that a 16 year old girl child was employed at fast food outlet where she cook fires at a frying range. But one day, she slipped on water and due to this her hand break to fall. Simultaneously, her has went into a container of oil at a temperature of 360 degree F. On the same day, there was a shortage of staff employees. In this overall situation, manager was totally faulted because had to provide proper care to this girl. First of all it is wholly illegal to hire an under age employees, government has made various laws in order to reduce child labour. In this situation, health and safety act 1974 is regulated; according to this law, business leaders needs to provide positive and safe working environment to their employees and tries to reduce health issues of workers. The act was constituted in order to ease up all accidents and mis-happenings at workplace.
P4 Suggest appropriate solutions for problems
In the first case, Donna was unfair with Calvin, because he was working from 4 years in that fashion house. This organisation needs to preceded all laws and legislations which were made by the government of United Kingdom. In that above mentioned fashion house, its manager needs to follow Employment Rights act 1996; its protects workers rights within the organisation. Apart from this, in this case study the leader was terminated his employees without giving any prior notice. It was totally unethical behaviour of Donna.
Unfair dismissal – As per this law, managers cannot fired their employees without any specific reason. It can also affect public image as well as productivity of the company (Lee and et. al., 2011). Apart from this, Calvin was an old and loyal employee of the firm, in this sense Donna should be treated him in well mannered and heard his point of view. Apart from this, Calvin has right to claim against Donna, for this purpose two laws will helps him such as – claim for compensation and say for the doing inquiry. In employment rights act, if employer dismiss his or her employees without any ethical reason then he must pay 1 month advance salary to his staff members.
B). In case study, it has been founded that it is essential to develop an appropriate solution for contract laws. The case study presents that Kevin father's has their own store that was destroyed by fire. But after some days, they opens a new store at another location. In that process, Kelvin and his father claims for their losses, but not they cannot recover the amount of loss which was brunt into fire because the insurance company was not agreed upon this. Apart from this, Mr. Dan can give the written document and request to insurance company, if the the company is ready so as it give them half of the overall amount.
P5 Justifications for solutions by referring relevant statue
In the first case, Kevin and his father have right to sue against insurance company as to get back their compensation. This compensation can be in term of monetary as well as non monetary. Apart from this, they need to take help of trade unions and case in court so as take back compensation amount. If any insurance do not render claim for his loss amount so as he or she can be put a case in court. It will also impact upon market impact of that insurance company and it is automatically forced to returned money to that person.
In second case, the case study represents that Donna who was the manager of fashion house was fired his employee without giving them any notice. It is not justice to these employees who gives their time to the company. So as, Calvin can case against his employer or the company. And the company is liable to give him one month advanced salary before lefting the organisation.
P6 (a) Benefits and concept of Alternative dispute Resolution
Business organisations are made their own ADR policies and schemes. Apart from this, they run their own institutes which helps them to reduces as well as handle problems of the firm. The main work of alternative dispute resolution is diminishes conflicts among consumers and traders. In addition, customers are expected best and value added products for which they pays high amounts. It is also a moral duty of all enterprises is to provide quality goods and services to their consumers as they promised them previously.
In this sense, if managers do not fulfil the needs and wants to their buyers in meaningful manner so as such persons can case upon the company. ADR assists in placing a required information from selling of businesses to the potential customers (Rutledge, 2011).
Benefits of Alternative Dispute Resolution: -
- It helps in saving a lots of time by resolving cases of customers and traders in comparison to courts, it takes 2 to 3 years. Through which it also helps in saving money, involving fee of lawyers and work time lost.
- This emphasis upon all aspects of problems so as to make appropriate and suitable decisions for both parties.
- ADR preserve relationships by the cooperation of both parties instead of one winner and another losers.
- It keeps disputes private unlike in courts and ADR is also helpful in reducing stress by providing them sufficient justice.
B). Recommendations of alternative legal solutions
It is as same process as alternative dispute resolutions. Alternative legal solution is a concept that is used in case of conflicts among parties regrading the contract. In the case study, Antwon is the owner of his firm, he has dispute with Tyrell, he is also an employer of the company which makes software. In this sense, there is a contact between both parties but both were not fulfil the term and conditions of contract. This dispute has gone for many weeks but Antwon and Tyrell does not get proper satisfaction with the by decision of court. So as they decided to continue their working relationship that is beneficial for both of them.
From the above mentioned report, it has been concluded that business law plays a very role in the growth and development of commercial entities. It forces employers as to do their all working activities in an ethical or legal manner. In this report, there is included various sources of law and the acts that are helpful for business organisations. Apart from this, different employment obligations are also described in their assignment. There is given the solution of various case studies, one of them is consists with unfair dismissals. Government of any nation plays a vital role in its law making process. Benefits and concept of ADR is also explained in this report.
Books and Journal
Jarvis, J., 2011. What would Google do?: Reverse-engineering the fastest growing company in the history of the world. Harper Business.
Nichols, P. M., 2012. The business case for complying with bribery laws. American Business Law Journal. 49(2). pp.325-368.
Boyarsky, A. and Gora, P. eds., 2012. Laws of chaos: invariant measures and dynamical systems in one dimension. Springer Science & Business Media.
Munch, S., 2012. Improving the benefit corporation: How traditional governance mechanisms can enhance the innovative new business form. Nw. JL & Soc. Pol'y. 7. p.i.
Azadeh, A., Darivandi, K. and Fathi, E., 2012. Diagnosing, simulating and improving business process using cybernetic laws and the viable system model: the case of a purchasing process. Systems research and behavioral science. 29(1). pp.66-86.
Lester, T. W., 2011. The impact of living wage laws on urban economic development patterns and the local business climate: evidence from California cities. Economic Development Quarterly. 25(3). pp.237-254.
Ruggie, J., 2011. Report of the Special Representative of the Secretary-General on the Issue of Human Rights and Transnational Corporations and other Business Enterprises: Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’Framework. Netherlands Quarterly of Human Rights. 29(2). pp.224-253.
Bernstein, S., Korteweg, A. and Laws, K., 2017. Attracting Early‐Stage Investors: Evidence from a Randomized Field Experiment. The Journal of Finance. 72(2). pp.509-538.
Elsaman, R. S. and Alshorbagy, A. A., 2011. Doing business in Egypt after the January Revolution: capital market and investment laws. Rich. J. Global L. & Bus.. 11. p.43.
Rutledge, T. E., 2011. The 2010 Amendments to Kentucky's Business Entity Laws. N. Ky. L. Rev. 38. p.383.
Lee, S. H., and et. al., 2011. How do bankruptcy laws affect entrepreneurship development around the world?. Journal of Business Venturing. 26(5). pp.505-520.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.
Clark, W. H., 2011. The relationship of the Model Business Corporation Act to other entity laws. Law and Contemporary Problems. 74(1). pp.57-77.
MORÇÖL, G. and Gautsch, D., 2013. Institutionalization of business improvement districts: A longitudinal study of the state laws in the United States. Public Administration Quarterly, pp.240-279.
Schwartz, A. and Scott, R. E., 2011. Rethinking the laws of good faith purchase. Columbia Law Review. pp.1332-1383.
The Legal and Ethical Environment of Business, 2017. [Online]. Available through: <https://catalog.flatworldknowledge.com/bookhub/1679?e=lau-ch01_s04>. [Accessed on 19th August 2017].