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Impact of Law on Business


  • Unit No: 7
  • Level: Undergraduate/College
  • Pages: 18 / Words 4466
  • Paper Type: Assignment
  • Course Code: H/508/0492
  • Downloads: 1120
Question :

Business law is considered as the branch of civil law which consist of statutes which can regulate the working of the businesses. This project is designed to test the understanding of students as to how business law is applied to company. It covers the following-

  • Explanation of nature of legal system.
  • Illustration of potential impact of law on business.
  • Suggestion on appropriate legal solution to problems of business.
  • Recommendations of legal solution based on legal framework.
Answer :


Business law is said to be one of the effective portion of legal system that provide complete guarantee of an orderly conduct of business matters as well as settlement of legitimate clashes. It is a body of principles that recognize and applied through the state under which the administration of justice can be done. Law used to provide trust to the parties that all their matters can be resolve effectively. The primary purpose of using rules and regulation can lead to commence their business operation more positive for longer period of time. This project aims in providing specific information about various sources of law applicable in UK. Apart from this, role of government in formulation of law is also being discussed under this report. Implication faced by JPM company during the time of expansion is explained positively. Use of alternative legal solution in order to resolve various dispute that are arises in between the parties is provided in this report (Folsom and et. al., 2012)


P1: (a): Discussion about the meaning of the statement and various sources of UK laws

Parliament is sovereign: It has been found that parliament is not always having the political ability to do something because of various consequences. It makes parliament supreme legal rights that which can create or wind-up any law or policies. Basically, the court cannot have the authority to overrule their legislation and neither parliament can pass any kind of law till the coming parliaments cannot get changed. All the important parties such as ministers, government department and local bodies need to apply those are laws that are passed by the parliament. However, there are so many doubt regarding the proper accuracy and ongoing relevance of parliamentary sovereignty (Miller and Cross, 2012).

Various sources of laws:

The sources of law are birth of laws, binding rules that can enable any nation to rule their territory. It can sometimes refer as sovereign or to seat or right from which the law used to drive their validity. There are various types of laws that are applicable in UK. Some of them are discussed below:

  • Precedent: In basic law legal system, it is said to be an earlier action that is related with certain case or examples in subsequent kind of situations. Judicial precedent is an important sources of law, where past decision used to create certain kind of law for juries to refer back for control in coming cases. It is based on the state of decisis which means that to stand through decided matters (Macaulay, 2018).
  • Acts of parliament: It is responsible for creating new laws. An act is a specific kind of bill that has been approved by house of commons or lords. It is also referring as primary legislation those are passed by the parliament after making healthy debate from the concern minister or parties. All kind of laws those are enacted through by the legislation and other bodies by using appropriate legislature.
  • International court: It is one of the effective tribunals as mentioned under article 38(1) of status of international customer. It is considered as one of the effective evidences of common practices those are accepted as laws.
  • European court: It is known as independent and overriding sources of local law. All the treaties and legislation placed on these instruments through the courts of justices. It is not itself is an independent sources of law, but mainly lies for their effect in domestic matters. This seems to recognises three major sources of EU laws such as primary, secondary and supplementary law. It best part of this is that supremacy is based on UK law (Posner, 2014). In case of any conflict at national or European can be rule on through using EU laws.
  • Common law: This is utmost important body of law that are stated from the effective judicial decision of courts and related tribunals. These are said to be common laws that act as a major part of law of various nations. Basically, those which is having territories or other colonies.
  • Customs: Theses are formed usage and social practices that are carried on by tradition that is having obtained the forces of law. This seems to be established systematic pattern of behaviour that would be related with social setting.
  • Legal system: This happens to be effective process for interpreting and enforcing all kind of laws. These are increasing specific roles and responsibility in wide number of ways. It is consisting of common, civil and religious laws.
  • Barristers: It is a kind of legal lawyer in the field of common law jurisdictions. It is mostly become more specialised in courtroom and litigation. They are held responsible for receiving extra training evidence laws, ethic and other procedures.
  • Solicitors: A person or member which is associated with a legal profession qualified in various conveyancing, drawing of wills and various legal cases. It can also get instructed from the barristers and other client in court.
  • Judges: This happens to be a person that preside over a court proceeding individually or in groups. The power, operation and method of selection and training of judges can vary largely across various jurisdiction (Vagts and et. al., 2015)

P2: (b): Role of government in law making process applied in justice court

In UK, the law making bodies are parliament both at the central as well as legislative assemblies. The process of drafting can be broadly categories into various stages. Some of them are:

Step 1: In case of new law, or any amendment to a current legislation is being determined. This can be done either through overall government or by citizen member that can raise for public awareness in regards to the requirement of the law.

Step 2: In this particular stage, concerned ministry draft a new text of proposal for law that is called as “Bill”. It is circulated to various relevant ministries for getting concern reviews. Valuable comments from the public on the associated draft can also be taken into account. The draft is studied through proper integration of all inputs and then examined through law ministry. Then after made presented in front of the cabinet for further approval (Werbach and Hunter, 2012).

Step 3: After Bill passed by the Cabinet, it is introduced into the parliament. Every bill goes through various reading that so that proper discussion can be made before making any amendment. Some of the readings are mentioned underneath:

In case of first reading the bill is introduced into the parliament. It has been opposed as well as all the matter that can be put to make voting in the House. The entire proposal shown among the whole group member for the first time. After the bill goes on to pass in this stage, the next time it is printed and distributed between different member that are the part of that discussion.

Second reading: Under this stage, consideration of bill is being made. It gets scrutinized properly and each clauses of bill are discussed, amended or rejected. The government and MPs can have introduced amendment to bill, some of them are suggested of the standing committee.

Third reading: It is house of votes on the redrafted bill that is being presented in front of the concern parties. In this stage, all the analysis and discussion is being closed on the related bill and make approval for passing is being done (Adachi, 2013).

Step 4: After taking permission for approval from the parliament, it gets transfer to the presentment for assent. They have the right to seek information and clarification regarding the bill and can return it to the concern parliament. It can be done only one time.

Step 5: In this process, president used to give all their assent to the bill to be notified as an act. Similarly, the bill is brought into action and rules must be implemented as per the act that are framed by the concerned parties. In some situation, the provision in bill allow, the ministry can bring act into action over a specific period of time.

Final stage: It happens to be end process, in which various consent of supreme judge is to be provided in order to make review about the bill amendment that are relation to reach a final conclusion.

Comparison of statutory and common are used in the courts:

Common law

Statute law

All the rules of behaviour must be accepted by the society in accordance with custom and practices.

Every legislation contained in detail written statements of need order by the parliament.

It will allow judges to provide cases on the specific terms of ruling of prior cases in common situation.

It is more formal aspects of legal system that include written legal requirement.

It is one the legal system that must be developed between Anglophones like England and etc.

There are some limited liabilities and regulation is behind taken into account.

M1: Evaluate the effectiveness of legal system

Effectiveness of using judicial system is mainly depending upon the court decision to make implementation in effective and reliable manner. It used to protect the right of every individual in respect to infringement of law by other. Over the last 15 years, there are having substantial modification to English legal system. It is basically divided into two parts such as, introduction to labour administration and Conservative administration. They consist of various changes such as: Creating the ministry of justice (2007), by replacing department of constitutional affairs. Creation of legal services commission, to run legal norms and pioneer with latest method to deliver legal services to the needy people.

D1: Critical evaluation of English system with relevant examples

According to Ayios, (2018), the English legal is mainly related with specific kind of laws that is being formed within parliament and case law. The basis strength of this common law legal system is that all the parties is being able to held responsible to present their own case in best ways. The role of common law judge is to examine basic facts for every case as well relevant laws in search of finding certain solution. After making proper reviewing of cases, the court ruled that federal district court that does not have right to create federal common law.


P3: Making advise to JPM in relation to responsibility as an owner of the company

As per the mentioned case study, it has been found the three of the best friend stated a small business after the completion of their graduation. After operating their business for few years, there accountant advised them to transform their business as public limited company. They would require sufficient amount of capital for the expansion. At the same time certain some responsibilities as direction according to the company’s act is mentioned underneath:

  • A Director of the JPM company shall act with positive faith in order to expand their business in respect to gain benefit of their members and other parties.
  • Director of JPM shall exercise their responsibilities with reasonable care, diligence and knowledge would exercise independent decision in near future.
  • They cannot attain or attempt to get any undue profit or benefits either to their own or to their relatives and other associates (Deakin, Johnston and Markesinis, 2012).
  • It consists of effective collective body of director that is held responsible for control and direction of their affairs of JPM.

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Some of the effective implication they are going to deal with are mentioned underneath:

Health and safety Act 1974: As per this act, the director is liable to take care of all important aspect that are related with the safety of the worker in accordance to various issues that are occurs at the JPM company. Every employee need to pay attention towards following basic health and safety regulation so that chances of accidence can be reduced. Some of the valuable matter related with this particular act is followed by as per OSHA regulations. Getting all the word out is being taken into account by all staff’s member those are aware about the various issues that are related with the employees.

Equal opportunity regulation: According to this particular act, it has been examining that all the employees or workers that are performing their job in JPM company must get equal opportunity. After the becoming public limited company, they would be liable to perform multiple job through using various skills and experiences. Likewise, every legal bodies used to target in order to increase or develop equality between one another employees. This will directly help them to increase profitability and growth of the company. As a direction of the company, they owner must ensure that all employees must be capable enough to perform their role in effective and efficient manner.

GDPR: As, it has been seen that after transforming small business operation into public limited company the JPM owner must make early planning regarding the data. It is actually, based on EU laws under which company need to comply with the new regulation while commencing business within the country. Every data is valuable for the company as they are responsible for getting better outcomes in near future time. GDPR used to provide maximum right over their individual data such as right to forgotten and right to be informed. Most of the concern regulators said that rules will have harmonize data privacy regulation across the EU ad provide basic template for other nation searching to protect legal and company’s data (Hayek, 2012).

M2: Differentiate and analyse the potential impacts of various regulations

Legislations are the laws which are imposed by the government which are mandatory to be followed whereas regulations are the rules which are prescribed by authority. Standards are different from above two concepts as it includes specific guidelines and framework. These concepts impact by their dynamic nature which changes according to the changing legal environment.


P4: Appropriate legal advice based on various cases

Liquidation: It is a kind of situation under which a company business operation comes to the end because of continuous losses in last few years. These are mainly initiated either through the shareholder or by various creditors after taking necessary permission from the respective court. It is a kind of event those are usually develop in case company get insolvent. It is basically, termed as they are not being able to pay off their debt obligation from so many period of time. There are basically two types of liquidation process. One is voluntary liquidation under which the owner does not need to take prior permission from the court, whereas compulsory liquidation that is done under the proper supervision of court.

Compulsory liquidation: In case of any organisation which is insolvent and aware of various facts that any unsecured creditors can file petition under the court to force for shutting down of operation. In every liquidation process, the aim is to sell every assets and make repayment of amount to creditors as in effective manner. Under this creditor used present an important petition in the court and make proper request that court order to the company to enter into the case of compulsory liquidation. Financial institution and lender to need to take valuable route to regain their capital that are owned by them (Hamilton, 2015).

Look at here:Operations and Procedures at the Workplace

Case 1:

As it has been found that Champion company is not being able to provide sufficient amount that is paid by the creditor during the time of build new stadium. In respect to the decided agreement, it has found that proper consideration as important aspects for releasing a business and move by paying certain amount as fine. A creditor can use to own sufficient amount of capital from the company as per the mentioned date. It is crucial for the Creditors of the company to take effective decision against the champion company in order to the amount they have being paid to them. They can file a winding up petition in the courts mentioning that champion company is not able to generated sufficient amount of capital after the setting of a new stadium. Henceforth, compulsory liquidation can be the best option to them. Once court make order to shut down all the operation of champion company by appointing one or more liquidators. Likewise, in an individual creditor meeting certain decision is being made to the nominate another individual to act as supervisory liquidation committee. As a business direction the only aspect must be done once as effective process that is underway as per the guidance of insolvency practitioner to deal with negative results. After the liquidation the liquidator is needed to make proper investigation about whether director of Champion ltd fulfilled all their responsibility in reliable manner.

Case 2

In this particular case scenario which provide specific information about the legal disputes that are arises in between Amber and Anderson. It is important for both of them to determine all kind of issues that are faced by both the parties.

Issues: The main problems are arising from the Amber company is that, Mr Anderson is not serving the notice period which has been made within an organisation. This will lead to create chance of dispute among them.

Relevant law in the case: As per the mentioned situation that are arises in between amber and Anderson can be move to chances of dispute. Under this condition, the law which is applicable is breaching of contract. It is a kind of contract that is based on agreed and promised has been broken by the concern parties. It is legal course of action and types of civil wrong doing from the amber company. A contract case is a kind that comes before proper justice among one or both parties that claim for contract was breached.

Termination of contract: It means that end of period which is made legal during the time of joining the post within the company. It used to govern various roles, responsibility and advantage to the parties from overall termination of employees. Henceforth, they cannot be able to perform job after the completed of notice period. In case of Anderson, the notice period of 12 months is not being served.

Implementation of law: It is a kind of contract that occurs or alleged among both the person that wish to have contract which is enforced on their terms and condition. If a dispute over a contract arises which is seen in case of amber ltd that they fail, the terms and condition of serving the notice of 12 months before switching from the one job to the another. The law needed to breach serious and causes damage before amber company can sue for breach of contract (Dolzer and Schreuer, 2012).

Reach a conclusion: After making overall analysis, it has been decided to make settlement with among each other. Or, they can sue Anderson for breaching of contract before the completion of time period. According to the agreement the contract would be followed thoroughly by the Anderson and then after go the other job which is being offered by the Beta company.

P5: Justification of using alternative legal solution

This seems to be effective phase in every business that to make proper analysis of all the matter that are affecting the organisation goodwill and make planning to overcomes the issues. Similarly, it has been found in the above mentioned two cases. It is significant for every business to overcomes all the problems that are held responsible for disturbing the nature and growth of the company. In order to deal with various issues, they all need to go will redundancy process. It is a kind of situation under that employees usually get terminate because of having not performing well for long period of time (Percival and et. al., 2017). Mr Anderson and amber ltd is needed to follow this particular process so that both parties can get their respective benefits. Although, decision made by the company can be taken through using ADR and assist the department in other manner in attain best possible results in coming time.

M3: Positive and negative solution of legal solution

From the above case situation, it has been seen that both champion and Amber ltd is having some kind of issues. They are going to make use of legal solution to overcome all the dispute that are arises during the time (Alternative solution, 2018). The positive impacts to legal solution helps to bridge gap among both parties and valuable legal solution to them. This will be assist them to resolve all the issues that are affecting the profitability position during that particular point of time. Likewise, there are certain negative aspects are also present among them, such as one party need to face more tough fine or penalties. They chance of winding up of business can be arises more drastically.


P6: Recommendation of an alternative legal solution

Alternative Dispute Resolution (ADR) refers to any way through which disputes can be settled down outside the courtroom. It includes dispute resolution techniques and processes that enact as a means for opposing parties to come on a mutual agreement short of litigation. With the help ADR, parties can address their disputes with the assistance of third parties. According to given case study, there is a conflict going on between employee and employer which needs to be sorted out in best possible manner. ADR is mainly classified into three types which are discussed below:

  • Mediation: Third party is involved in this which help in settling down the differences occur between two parties. Here the role of mediator is to assist parties to reach some mutual agreement.
  • Arbitration: It involve the assistance of a neutral third party. Basically, the job of arbitrator is to listen the grievance of both parties first and then draw a conclusion that satisfies the interest of both concerned parties.
  • Conciliation: Here the role of conciliator is to identify the dispute issue first, then develop suitable options or alternatives and try to reach an agreement that provide mutual benefit to involved parties. However, conciliator will not formulate any decision or judgement about the dispute (Werbach and Hunter, 2012).

Process: ADR is an informal process through which legal dispute between parties can be sorted out with the assistance of third party who will help in settling down the case outside the court-room. As such there is no particular process for this, it simply takes place by involving third party.

Benefits of ADR:

  • It is cost-effective and usually faster process for settling conflicts
  • Parties involved in this will get an opportunity to put its viewpoint.
  • Highly confidential process
  • It possibly preserves firm's goodwill by solving conflicts outside the courtroom.

M4: Compare and contrast the effectiveness of suggestion

As per the mentioned various types of ADR process in context to Amber ltd. There are various types of suggestion that is being made to resolve issues.




It is the effective way of resolving disputes among two or more parties with related implications.

All the dispute that are arises in amber ltd can be resolve by appointing on one party to deal with all litigations.

The party seeks to reach an affordable dispute settlement with relation to all kind of issues that are happens in Amber ltd.

D2: Critical evaluation of use of appropriate legal solution

Negotiation and usage of ADR was the solutions given which has both positive and negative impacts. According to me, negotiation is the most flexible form of resolving disputes but it levies unequal bargain power which reduces the satisfactory level. ADR is a speedy process which involves low expenses but it there is no guarantee of passable resolution.


From the above project report, it has been concluded that business law is one of the effective legal norms that used to guide company as well as parties to take right decision in coming time. For this purpose, various legal norms and role of government in law making process is taken into account. Various implication in respect to deal with all kind of issues during the time of expansion of business is being mentioned positively. Use of alternative legal solution is being done to resolve different issues those are arises in between several companies. ADR process and their benefits to companies or parties is also being taken into account to reach a final solution.

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