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Nature of Legal System of Businesses

University: Regent College

  • Unit No: 8
  • Level: Undergraduate/College
  • Pages: 15 / Words 3627
  • Paper Type: Assignment
  • Course Code: BUSN331
  • Downloads: 715
Question :

This assessment has questions which are mentioned as under:

  1. Explain nature of legal system.
  2. Evaluate potential impact of law on organisation?
  3. Analyse formation of different business organisations.
  4. Recommend legal solutions which helps in resolving issues in company
Answer :


United kingdom is a large group of nation which concludes several divisions and accordingly it has separate laws. Business law is one of most important laws in this division as it provides guidelines and methods to different levels of business organisation. It binds, protects and administers them on all levels and keeps them out of illegal malpractices. It also has many different methods to solve disputes occurring between two parties which can justify things at certain levels. Also in some methods things can be resolved even without approaching justice courts and to clear these things more briefly case scenarios are provided to understand thing better.

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Explanation of the legal system in the United Kingdom and the difference between civil law and criminal law

Parliament sovereignty is diverse in its basic nature which consists of several powers. As its said that constitution is unwritten and its not present in a single bind document. The most features of constitution are comprised in statutory and common law. Its a stipulation that parliament keeps on changing with time diversification and changing with upbringing new changes in society. Every time before parliament is announced there is a speech given by the queen called as “speech from the throne”. Its addressed by Royal Queen in which she provides guidelines and norms for current assessment year and people celebrate diversification and culture of England (Backer, 2015) . Their are specifically four divisions in which constitution is divided which are mentioned below:

  • Legislations : The most prominent features of legislation are major acts in parliament, its the main body to generate, develop, remove or amend any act in parliament. These laws are generated for benefit of nation and its citizens plus they nullify the betterment of certain circumstantial situations.
  • European union : this union was created for benefit of all the 28 countries who are part of it. These generate a union before the world and provide benefits in the main market globally (Ball, 2015). It gives a certain power to regulate the prices and working of everything plus maintains coordination between all countries.
  • European convention of human rights: The need to develop this union was after WWII and to support and develop peace in all nations. Its sole purpose is to maintain peace and encourage people in non violence solutions over disputes and confusion within nations (Bayern, 2016).
  • Common law: This law was generated in early 80's era and was made from kings rulings. That time any law created by kings were implemented as a rule in the whole area ruled by them. This method was picked up by many areas of rulings and was passed on to other generation. The basic purpose it served was to treat each case differently and give specific solutions towards them.

Overview of the sources of law in United Kingdom

Statutory law: this laws basic purpose is to work as justified by legislation. No person can seek exact remedy or benefits from this law as its very particular in its understandings. It does not accumulate any issue in case of making proper legislation towards any issue or dispute. The method of using this laws in court is to particularly point at some specific issue or certain act which is against law and is crime (Besley, 2015).

Common law: This law works for each case or dispute differently. The core purpose to establish this law is to see each circumstance with new perspective and give solutions accordingly. This method was adapted by kings rulings and in justifying such case laws there is a history of cases to support in such matter. In court proceedings if in any case a person can seek help from referring from a past case in which cases match it will help in getting proper claims.

Explanation on the role of government in law-making and how statutory and common law is applied

The legal system in UK has developed since different new reforms are being portrayed in the legislations. These defines the circumstantial approval or disapproval of society towards a certain law or act of parliament. These are very important for society since, a changing society needs amended laws which work according to their requirements. The roles of the government is divided into three categories viz. Executive, legislative and judicial. Executive role is about administrating the legal provisions that are enacted by the legislative bodies in UK. This is about the enforcement of the laws for their effective execution. Legislative role is related to the formulation of statues by analysing the effectiveness of the existing legal system. House of Lords and House of Commons have the authority to present bills in the parliament which are processed further to convert them into acts. The last role is judiciary in which different courts are established for providing prompt judgement in the cases. Furthermore, judges are also appointed so that they can provide appropriate decisions.

Furthermore, the house of lords and house of commons are the members responsible for presenting the bill in the parliament to be converted into act. There is a set procedure for the same which is as follows:

  • First reading- This is the first stage in which a draft bill which is rough, is presented before the parliament for initial discussion.
  • Second reading- At this stage, a decision to present the bill for further discussion, is taken. The key points are highlighted in order to understand the motive and other aspects of the bill.
  • Committee stage- This stage is all about making importance modifications in the bill to make it more effective. This is to improve existing draft and make it effective by connecting it with a specific motive. This is to help the society in following the laws in a better manner.
  • Report stage- This stage is related with the report that has been prepared by conducting an analysis of all the discussions that have held earlier. This is obtained through a report which incorporate the expert suggestions which can be included in the bill.
  • Third reading- This is about the time when the bill is passed further by carrying all the necessary changes. There is no scope for further modifications but if both the houses approves this, then modifications can be done. This is involves an in-depth verification and analysis of the bill.
  • Royal assent- This is the final stage of bill passing procedure which means that all the formalities have been completed together with all the modifications. Once all the necessary procedures are fulfilled then it becomes an act by receiving the assent of the queen.
  • Statutory law- This law is available in written form which is the outcome of the bills presented by the member of parliament. It is the base for the whole legal system and the laws govern the activities of the individuals as well as organisations. Furthermore, it can be amended through a new statutory law only. UK has partially written constitution and the laws have been enacted for the written portion.
  • Common law- This is known as judge made law which is made by the judges on the basis on previous judgements passed by the judges. In addition to this, this can easily be modified with the time. It works on doctrine of judicial precedent which provides that if the circumstances of a current case is similar to that of previous one then it should be the judgement at present.

Explanation of the key legislation, regulations and standards that a new business needs

  • Legislation: This provides legal support to organisation. It keeps it clean and aware from any malpractices of other organisations. These can also be for keeping the organisation in discipline and proper working levels according to law. There are various laws which should be followed by new businesses such as employment law which is for the protection of employees. With this act, employees are given variety of rights which basic and mandatory. Competition law is another law which states that every business is required to have healthy competition for carrying the business.
  • Regulations: The basic purpose of these are to mention certain policies and rules to which all members have to agree working in any firm. The can be for benefit of organisation and also for the employees. The regulations for a new business includes registration which is about the entities being registered before the initiation of the operations. This is to gain the trust of people that organisation is legal. The other main regulation is quality regulations which should be followed to avoid any legal obligations because of the non-compliance with the regulations related to quality.
  • Standards: These are to maintain a certain structure of the company. These can be aims or levels on which company works and degrading that the levels set shall not be accepted. These standards help the firm to be stable in their present reputation in market plus, it creates goodwill in society (Dinner, 2014).

Analysis of implications of laws on business

Critically evaluating law is difficult since there are certain laws which are rigid in nature like statutory laws and some are flexible as according to the case like common law. These both serve a different purpose in society and help in seeking justice for innocent victims and punished accused malpractices in society.

Company law: This act supports and justifies practices made in companies and organisations which are bound to this act. This act was created in year 2006 for development and proper administration of firms. This act is very important for the betterment of these MNC's and develop them on a stable growth rate but at the same time following these laws and regulations becomes headache for many companies. In certain cases basic function of company becomes banned in laws due to which whole set-up of business needs to get changed.

Employment law: This law portrays relation between two members of company and in basic level relation between employer and employee. These justify the policies and regulations which are to be maintained in this relation and shall be followed by all members. The impact of this law is that it becomes an obligatory thing to follow these policies which become an hindrance in working environment of firm.

Contract law: It is connection between people which is legally bind relation, where both sides agree on certain terms (Cleaveland, and et. al.,2015). This legal body is imposed on them to protect the protocol and give them distinguished laws to maintain and follow all regulation controls validity of contractual agreement between both sides and governs its working. It keeps keen interests in all goods and service sale, purchase and follows of monetary rewards in organisation.

Provide a critical reflection of the UK legal system using examples to demonstrate strengths and weaknesses

All these organisations are unique in their sense, one can provide freedom to a person to become his own employer and follow his path of passion, second one provides monetary benefits to both parties because of working together and the last one LLP, renders no debts pressure over any employee since its a legal distinct separate entity.


a) Explanatory Memorandum

Case law (a)-

This memorandum has been drawn about the laws related to Health and Safety Act, 1974 in the workplace. This act has been enacted for the purpose of providing safety and security to the employees working in the organisation. With reference to Regent Vision Ltd., the organisation has formulated a legal framework which is followed by it to ensure that all the relevant laws for the protection of employees are complied with. Health and safety laws are the most important as employees look for those companies which ethical and have higher level of legal compliance. There are amendments which should be in the knowledge of the company is order to avoid any legal consequences. Furthermore, the HR department should make efforts for making the employees understand about the prevailing laws so that they can carry their activities within the legal limits (Raz, 2017). There should be policy which includes providing training to employees for raising awareness about the applicable law and make them familiar with the current system and process so that goals and objectives can be achieved lawfully. In addition to this, there should be constant check on the internal control and the working within the organisation so as to overcome any difficulties related to health and safety law. This also help in ascertaining the extent to which company is following the laws. According to this law, there should be hygiene within the premises, the restrooms should be cleaned together with this, proper drinking facility should be provided. There are other arrangements as well which can be done by the company for the improving the current conditions. Furthermore, there should be a medical room or first aid box in the organisation to use that in a situation of emergency. This is necessary for ensuring the safety of the staff. Apart from this, there should be fire extinguishers in every floor and they should be sufficient enough to have control of the situation. Therefore, the company has appointed a whole team and an administration who has the responsibility to overlook the matters related to health and safety of the people working in the entity (Murray, 2014).

Case law (b)-

This case is about Charlotte who is working as an account clerk in the finance department of the firm. Her friend, Daisy, who owns her dress making business asked if Charlotte can carry the activity of bookkeeping in her spare time. The legal provisions related to employment law, a contract of employment is based entirely on the determinations of the entity. In absence of any such contract between the firm and employee, then the personnel is not bound to any instructions of the employer as there is no employment contract between them. This allows a person to work in multiple companies at the same time. In the given case, there is no terms and conditions regarding dual employment therefore, by considering this Charlotte has decided to get associated with numerous firms. It is clear that no restrictions have been put on Charlotte which can stop her from working in one company only. However, she should do her best to maintain the loyalty in both the firms and not to bring any complexities with dual employment. In this way, she can earn good amount of income which can be saved for future use.

Case law (c)-

In the given case, Nicolas Jackob is an electrician and married having two adult children. The current employment is with Regents Vision Ltd. From last three years but the government has proposed a plan for which construction is going to occur. Due to which the branch of Newcastle was asked to shut down. Due to this, Nicolas was offered a new job in London. However, he is not ready to move out the firm for his personal reasons. This clearly shows that no termination has been made by the entity by which the workers were removed from the company. However, there is no such provision and power of the company to pressurise their employees to take up the new job that is being offered to them. This is matter of employment law which provides that employees are free to take their own decision about accepting a job. By considering the case, it is found that company was responsible for notifying the employees beforehand about the construction. So that they could have applied for the jobs of their own choice. However, the company offered him the job and the facts of the case clearly state that there were many options available but Nicholas did not choose any of them. Therefore, no claim can be awarded for this it was both the parties were at fault. Thus, no one is responsible to provide the amount as claim.

A different source of legal advise

Arbitration: In this method one gets confidentiality in method, and provides distinctive reasons to provide several solutions and method to create and justify this method. Its the best method in setting up a big dispute without need of interference from court. A neutral third party legal arbitrator is appointed and all laws and protocols are followed in this procedure. A legal advice is provided to them for better understanding between both parties and make them agree over one party in this case (Scheuer, 2015).

Conciliation: Its not that effective in nature since it only conveys information to both sides but does not give advice to resolve dispute. In this method a neutral third part is appointed or voluntarily wan to help both sides. This person generally defines proper legislations and give certain solution towards an issue or dispute they shall provide solution in the matter by making parties talk and create benefits for both. Its successful in small issues and is every efficient in nature

Mediation: here its just provides information of dispute and issues in organisation, but it does not provide any setup for any distinction of setup. Its not that effective in nature but can help in small disputes. A mediator is appointed to configure the issue between parties. This person only conveys information to each other and give a certain suggestion towards making decisions. Here, its generally provided by the mediator to think about different negotiations of both parties and make them agree over dispute and resolve it with better results.

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This report consists a brief analysis of different divisions of business law, which will cover different techniques, methods and certain case laws which will clearly define workings of this law. It also clears the fact that United Kingdoms government and legislation is very strong and influential in nature. Also the laws such as statutory and common laws are poles apart from each other, one is rigid and stays on ground level and other moulds according to case scenario. Its a perfect mixture of structure, hierarchy, laws and regulation which are provided to protect people and promote peace like unions within nations.


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