Laws are an important part of an organization because they enhance performance and assists in minimizing fraudulent activities through implementing useful acts. The major reason behind complying with laws in business is to facilitate customers by the best serving so that buyers can live life in a more comfortable manner. In simple terms, business law establishes rules and regulations which must be implemented by every organization (Bagley, 2010). It involves all the legislations which involve how to start, buy, manage, close, and sell any kind of business. As per the given scenario, the assignment is segregated into four tasks which justifies categorized case study through applying the most suitable law.
The below mention report is explaining the basic nature of the English legal system. Along with this, the potential impact of law on a business Adebonojo is described by using the company, employment, and contract law. Moreover, some legal solutions are also given for several business problems which are based upon alternative legal advice.
P1 Different sources of law and laws
English Legal system involves some major laws which are formed by European Government. All these legislations are important to be implemented so that fraudulent activities can be minimized and controlled which was occurring in market-area. In general term, it can be said that major motive of introducing such laws is to prevent innocent people from getting exploited in market area. If there is no laws and rules given by government then several wrong practices can be made in market place. All these give major impact in negative term to businessmen, buyers and sellers. English legal system is divided in two different parts these are: Criminal and civil laws. These two sections are different from each other in several aspects explanation of all these is mention below:-
- Criminal Law :- It refers to the body of legislations which implement criminal acts. Respective law is different from civil law because criminal legislation penalties includes forfeiture of individual rights and imprisonment (Bodie, Kane and Marcus, 2014). One more difference is that civil issues can be resolved and losses occur are related to money. Apart from this there are several theories which reflect that why there is criminal law system. Major theories includes: to reform the perpetrators, dissuade crime, provide retribution for the act and to prevent further crime. Moreover, there are two types of criminal laws: Misdemeanors and felonies. Thus, misdemeanor is the offense which consider lower level of criminal offence like petty thefts, traffic rule breaks, minor assaults. For such crime penalty is just one year or less than that. Whereas, on the other hand, felony include serious offense like murder, rape, robbery, arson, dealing drugs and several other.
- Civil Law :- It is body of rules which protect private right of citizens, offer legal correction that may be wanted in dispute as well it includes all the areas of laws like torts, contracts, family and property law (Crane andMatten, 2016). Main motive behind introducing criminal laws is to solve disputes and provide compensation to the injured person through some other acts or behaviours. One more purpose of the same is to forbid unwanted behaviours and give punishment to the person who commit an act deemed undesirable by society. For instance, issues related to corporate companies can come under civil laws.
- Hence, from the above discussion, it has been understood that both the laws are distinct from each other but somewhere these are similar also because of objective to reduce fraudulent practices from market-area through implementing distinct norms. Although, there are some main origin of laws which play important role in international market-area. Some of them are given below :-
- Case law :- there are several activities and misinterpretations which occur at community place that may be the reason of problem for common people in living their life. For minimising such issues legal bodies in coming up with some unique thoughts of restrictions to impose some important acts on entire nation. For example, now-a-days rate of female harassment is increasing and men's are becoming more which is harming life of females. Thus, for such problems legal bodies are designing an laws and norms for women's so that they can facilitating them with their better services and protect from getting misused.
- Custom :- It is one of the oldest source of law because in ancient time, there are several social relations which rise usage of customs and traditions. Thus, laws under this is used for settle and decide issues within different people. Generally, social institution fnction their work on the basis of various accepted customs.
- Constitution:- Parliament of nation framed proper rules and regulations for whole society because of which few problems raised and member of general assembly get implemented to enact law. It means, sometime leading rights of constitution are also become a main cause for amending any useful acts (DiMatteo, 2010). Beside this, England constitution is seen as unwritten and known as common law.
Moreover, there are several other sources also which are identified at a marketplace like memorandum of association, article of association, and so on. All these sources of law are playing their important role in market area for establishing a peaceful environment.
P2 Role of government in law-making and how statutory and common law is applied in the justice courts
Government play important role in making laws and rules at societal place in order to regulate exploitative activities for managing things in more better manner. Along with it, government member of general assembly are also engaged in whole process of law making and they are mandatory for passing any kind of acts. For the entire activity single agenda get raised in parliament is that which afterwards become a bill and reading of bill was done overall. In that, there are six stages through which a law is successfully framed and enacted. Thus, necessary reading stages description is mentioned below :-
- First Reading – In this stage, bill is read first time to the general assembly and the entire process of reading act as notification or initiation of the proposed bill (Eren and et. al., 2012) . Whole procedure is done through the person who is standing up to read the bill.
- Second Reading – At this stage of reading, further discussion or debates on respective bill take place which was discussed in first reading. All these discussion decide whether this bill should progress or not and will analyse through voting process. Major motive of discussion and voting is that everyone have their own thoughts as well ideas which assist in taking decision related to bill whether to implement or not.
- Committee Stage – In the stage of committee, several people of government bodies will sit for analysing and scrutinize in order to gain in-depth knowledge about the bill. Person who are related to this stage play important role in this phase. Specialist analyse the entire agenda which is required for converting the bill into act. Group of special people includes police department and solicitors.
- Report Stage – It is the stage in which analysed thing or data will reported back to the house (Foss and Knudsen, 2013). At this time, proper amendments take place with proper debating procedure.
- Third Reading – It is the phase where bill are re-proposed to the general assembly for further discussion, debate or for voting also which is related to the acceptance or declining of particular bill.
- Last Stage – This stage is also known as Royal assent and it is needed for making an bill to an act. Apart from it, in last stage, queen give her consent related to the bill before it become an law. She has the power to accept and deny the allowance to pass a bill as a law which depends on their concern. Then after, bill is then act of parliament and then become law.
P3 Company, employment and contract law has a potential impact upon business
As per the given case study of Adebonojo, he was engaged in expanding their business in different marketplace for generating more and more revenue by satisfying need and wants of different customers. Thus, for managing activities of every outlet, there is requirement of employees and they started hiring process. One of their new employee i.e. Chukwuyedi arrived recently. Although, company have to focus on framing proper plan for smooth running of business in proper way. Employees are important part of business because all the activities are managed by them (Grundfest, 2010). Thus, as per employees law company is involved in offering best services to their workers. Generally, there are several employees law which is designed by legal bodies for development of personnels as well their needs and wants which can be satisfied. Below mention are some laws which is related to the company, employment and contract laws as well their impact on Adebonojo business :-
According to the situation first of company law
There are some laws related to company's day to day working which must be followed by every organisation when they are expanding their business in other nation or also for the same country. Association must be registered under company Act. Along with this, there are several features which form an unique enterprise. Following given below are characteristics of an company :-
- Separate legal entity – Under company law, every association have its separate legal entity compare to its members. In the eyes of legislation company and its employees both have their separate legal entity because it have their own name and seals, assets and liabilities (Johnson, 2013). Apart from this, freighting and cargo company of Adebonojo can own property, borrowing money, having bank accounts, employing people as well can enter into contract.
- Capability to sue and being sued – These benefits can be utilised by enterprise only when they are registered under Company act. Association of Adebonojo can sue or be sued by their own name which is separate from its owner's name.
- One share one votes – Every organisation have some principles of voting which means everyone have one share one vote. For example: if an person have their 5 shares in business then, he/she have 5 votes in company.
- Common Seal – Organisations are artificial person which don't have its physical presence. Thus, it act through its board of director for carrying their daily basis activity and also for coming into agreement.
According to the first situation of Employment act
There are several laws which are given by government bodies for the welfare of employees in the organisation. All acts are related to employment implement in the company in proper manner. Their will be several advantages of the employment activities such as job satisfaction to workers, productivity will increase and so on (Kinicki and Kreitner, 2012). Below mentioned are some laws related to the employment are mention below :-
- Health and safety act – As per this act, company have to create secure and safe working environment for each and every staff member for encouraging personnel towards pre determined targets. Along with this enterprise of Adebonojo can impose effectual schemes like proper setted equipments, medical facilities and first aid kits for control accidents etc.
- Equal remuneration Act – Remuneration is the motivational and encouragement tool for employees. Thus, company have to offer best opportunity to their staff members for encouraging them to achieve pre-determined goals and objectives (Sweet v Parsley (1969, HL). Moreover, through this, equal treatment should be given to employees and also help in maintaining peaceful working environment.
- Equality act – This is an act which legally protect people from discrimination in an organisation. Because every individual person working in enterprise have equal rights and there are various legislation which assist in covering Equality act such as: Disability Discrimination act 1995, Sex Discrimination Act 1975 and Race relation act 1976.
According to the third situation of contract law
Agreement between two parties in legal boundaries are known as contract law. There are some elements which is an agreement determinant to be legally enforceable: offer and acceptance, mutual assent and so on. In business, contract is generally related to exchange of property, money, goods and services. Elements of legal bounded contract are mentioned as below :-
- Offer and acceptance – For doing contract, there is requirement of two or more than 2 persons; one for offer and another to accept the offer (Ye and et. al., 2011). These can be related to exchange of commodity in terms of value.
- Mutuality – In contract, there is a requirement of mutuality, that both the parties must be willing and have intention to convert their obligations under contract. Without mutual intent of both partners contract cannot be bound.
Due to late delivery of container, Bob get dissatisfied and as per the agreement, container was not same according to the given information. Thus, it should be kept in mind as per the mention date in contract products should be delivered on time.
As per the given scenario Akbar Abdi is young entrepreneur of Abs company and he made contract with Dean Rizvi to create computer program for them in the format of DVD. Conditions in contract mention that Akbar Abdi will get payment on final completion. But suddenly he fall ill and cannot continue their contract but half of the designed was framed. The same deign was sell by Razvi for improving their financial situation.
Dean Rizvi have to pay £22,000 to Johan as per the legal rules because they are using that design and sell it for raising their financial condition. This is the main reason because of that Rizvi have to make payment if he didn't use that in that situation there is no requirement of making payment. Moreover, because of some reasons business of Dean Rizvi LTD struggle a lot and after sometimes it go down dramatically. Thus, winding up order was made on 30th June 2017 and following a creditor’s petition which was presented to the court on 7th July 2017. although, dissolution process of business is mention below :- Close the Business As Required by Your Business Articles – Their is requirement of submitting business document in LTD company at the time of winding-up. Because in that all the information related to capital, assets and so on is mention. Moreover, it should be submitted to the liquidators who come for liquidation process (Pepper v Hart (1993, HL).
- File with the State – All the Limited companies who filed with the state at the time of beginning of business must file dissolution paper with state. file with the state is important because there are several stakeholders and creditors in business so that owner of business can place notice that Rizvi LTD cannot incur any further business debt.
- Notify the IRS and State and Local Tax Agencies – when company is ending it is liable for taxes for the past and current year. At the time of dissolution it should be kept in mind that owner of business must have to file quarterly or annually taxes and capital gain and liquidation forms. Taxes involves at the time of liquidation are income, sales tax which has been collected and payroll taxes.
- Cancel Business Licenses - In order to terminate the business license Dean Rizvi Ltd needed to file the paperwork to local agencies and local, state and federal tax agencies. This will restrict others to use the name and license of the firm that can be make owner defaulter to fill the penalties (Smith v Hughes (1960).
- Notification to Creditors - It is important to give a notice to the creditors that Dean Rizvi Ltd is going to wind up the business and there services will no longer to remain to run the business. It is essential to inform the lenders, insurers, suppliers, vendors, and service providers so that they can breach the contract between them. Corporation are required to inform creditors about - the company is going to be dissolved or intend to dissolve, mailing address to send claims, deadlines to submit the claims. There are certain states which are required to dissolve a company to place the information in newspaper which announces that the firm is closing. In this way, the public and creditors would be able to know about the firm's condition and they can also able to take action to regarding their investments.
- Settle Creditor Claims - If Once the debtors gets claim from the creditors, then they need to inspect the claims and they also have the authority to accept and reject the proposed claim. If the creditors are come out with the woodwork then they need to claim a portion of pot and there are limited credits then the owners need to judicial about the claims with consideration that which one should to accept. There are some lawful ethics which can b e regulates the authorities to govern to identify the reject and accept the claims. For an instance, there is a valid claim to the Dean Rizvi Ltd, then the next step is to pay in full or work out a compromise with the creditors.
- Collect Money Owed to the Business - A business does not has any obligation to tell that Dean Rizvi is going to shut in order to claim the money form others. Because that is much harder to collect the money for a business which is no longer.
- Inform Other Stakeholders About the Closure - It is important for the business to inform the landlords and others who are in lease contract so that they can process further (Royal College of Nursing v DHSS (1981, HL).
- Sell and Distribute Your Assets - After the settlement of the claims and creditors, the tangible and intangible assets will be sold out or distribution of these assets remain proportion to the stakeholders.
- Meet with a Business Attorney Before You Dissolve Your Business - The right attorney is important to terminate the business which is also required to start the business.
As per the given information of Dean Rizvi LTD Rbank, is owned at £450,000 and it has fixed charges but now freehold premises is valued at £400,000. thus, owner of the company have to pay £450,000 to the bank because amount taken by him is that. Apart from this if their any other creditors then also they should be paid my Dean Rizvi.
According to the given case study, above mention dissolution process is prefect for the business and mode of payment to creditors also. As Dean Rizvi is using design made by John, in such condition, Rizvi have to make payment of £22,000 to the John. If he would not have used it then their will be no requirement of paying as well English legal system also says that in contract if a person is utilising any goods or services agent which they have to do payment in monetary form. So, payment made by the Rizvi is correct in the legal eyes and also in ethical form.
On the other hand, another situation is of firm dissolution when its time for liquidation it is important to make payment first to the creditors. Rizvi LTD have to pay £450,000 to RBank because amount taken by them is it. Current valuation of their premises don't mean anything they have to pay amount which is taken. Apart from this, firstly John will be paid after dissolution then after it Rbank.
Method of resolving conflicting situations of AAD fashion Ltd. And Craig Couture&rdquo
According to given case study, AAD fashion ltd. has failed in fulfilling the demand of consumers due to which they might face a conflicting situation. As per the contract fashion ltd. failed in delivering garment on 20th February, 2017 that is a first attempt and later on second date was a 28th march 2017 that is also not completed. As a result, company have lost this contract which worth £300,000. Thus, Craig couture has file a case against the organization as they get failed in fulfilling the terms and conditions of contract (Alternative dispute resolution (ADR). 2017). It shows that both the parties are getting involved in a conflicting situation which is not easy to resolve easily because of high range of complexity. In fact, according to given case study fashion ltd. is a culprit as they are not able to complete their assignment because of which other party is facing a major problem. Hence, as per the legal norms ADR is going to adopted for this problem as this method is highly appropriate for clearing issues between two parties. Basically, this method is classified into three parts which is discussed as follows: -
According to this element, two members whomsoever are involved in a conflict needs to come closer with each other for clearing their doubts and issues in an appropriate way. However, this tool is suitable for small companies that are not having that much funds to hire a legal member. In fact, it aids in safeguarding the time period also as there is absence of presenting any third party. Mainly, negotiation is very useful method for resolving issues clearly without involving any other person. Thus, this approach is also one of the suitable option for Craig Couture.
It means an association needs to transfer the responsibility of solving issue to any of the experience or authorize parties of a company (Fisher v Bell (1961). Basically, in this method, there is an involvement of third person who is skilled or have ability to resolve problems faced by organization.
As per this tool, company need to hire legal member or any professional for clearing issues in best manner by understanding each or every aspect in deeply. In this method, company is going to hire best professional whomsoever is having best experience in their job role knowing how to resolve complex conflicting situations in a defined time frame. However, two type of arbitration are identified such as; ad hoc and institutional which is further explained-
Throughout the analysis, it has been understood that Craig Couture needs to follow ad hoc arbitration method for resolving conflicting situations which is incurred at workplace because it is more cheaper than other one (Adler v George (1964). along with this, it aids an association for overcoming conflicting situations that might emerges between Craig Couture and fashion ltd.
From the above assignment it has been concluded that, law is playing important role in business environment and assist in overcoming with several fraudulent activities. Along with this, also assist in company to do their work in correct in path. Government of United Kingdom follow the English Law that consist of criminal and civil law. Moreover, different cases are given in it related to business law which highlight employment, contract and company laws. Moreover, business law assist in minimising fraud practices which take place in cooperate world.