Business law encompasses all legislations which governs action of running, closing, operating, purchasing and closing any business. The main motive of creating such norms is to reduce the level of corruption and setting peace within nation. From an investigation, it has been found that thousand of illegal activities had happened in the field of commerce such as theft, robbery, discrimination, rape, kidnapping, murder, fraud in companies, etc. in few months only. Therefore, it is very important to stop these crimes. Government of United Kingdom is trying to resolve this by creating appropriate rules & regulations. In this regard, bills are proposed for representing the need of common civilians (Mann and Roberts, 2011). Subsequently, these are passed by authorised person in a systematic manner and converted into an act after receiving approval from legislature and executive. This current report is divided into various segment which is throwing light on different theme of business law. Initially, several sources of law such precedents, acts of parliament, customs, etc. has been explained. After that, role of governing body in the process of making legislation is described which shows entire procedure of converting a bill into a law.
P 1 Various sources of law
Parliament sovereign is known as principle of UK constitution which has supreme legal authority to create and terminate any law. Nobody has right and authority to override its legislation or make any changes in it. The Parliament of UK has capability to control definite aspects of legal procedure. These law requires to be implemented by all legal authorities that are regulated in UK constitution. The main concept of Parliament sovereign is that it distinguishes power between parliament as well as judiciary (Nichols, 2012). These legislation assist to reflect political development activities as well as procedure in UK. There are different types of laws that are applicable has been discussed below -
Various sources of Law:
- Precedents – This is a legal factor which is basically used to introduce specific rule or principle. Through this,courts has been taking maximum advantages in order to utilize them properly in legal system approaches as well as procedure (Hanrahan, Ramsay and Stapledon, 2013). After this, they can take a effective decision to resolve problems and issues in a amended manner.
- Acts of Parliament – This term is basically used to regulate new legislation to make positive changes and modification in existing laws. These acts are designed in a formal manner and after this, they get proper approval by House of Lords and House of Commons. These are the primary law which is regulated after a healthy discussion with higher authorities. It is required to implemented in appropriate manner in order to get beneficial results.
- International Court – This legislation is regulated for international clients and customers. It assist to settle down legal issues and disputes between several members by providing legal advise as well as opinions (Halbert and Ingulli, 2011).
- European Court - It is a place of justice that assist to provide legal advise to European union in the terms of EU laws. This stands as a first functional and authorised body that aid to interpretation of laws in European union. In this, member of present has major authority to manage all legislations in effective manner.
- Common Law – It is determine as a legal term in which system of legislation is basically formed in a judgemental approach. These authorised bodies are basically stated from courts and tribunals. Common law is normally formed as a judgemental process in which legal advises are basically provided by authorised judges to their clients after analysing their issues.
- Customs – These legislation are basically formed by examining demeanour of individuals on the basis of their society, locality, community and culture. This type of laws are very specific in nature that takes a specific part of individual behaviour toward them. In it, norms are basically formed by verified and analysing social group approaches.
In this procedure, some personnel legal systems takes a specific place in order to manage norms and legality. Some of the Personnel in the Legal system are determined below as -
- Barristers – They have taken a special position in overall judicial system. Their main objectives is to represent issues and concerns of clients in legal manner in front of higher authorities. Main objectives of Barristers is to play a effective role in legal hearings to stand in front of judge on behalf of their clients (Frank and Bix, 2017). They are responsible to represent clients views, issues and requirement in front of judicial bodies. For this, they receive excess training of laws, ethics, evidence examine and other procedures. Barristers are working as a care taker of their client as in a legal framework.
- Solicitors – They are also a member of legal structure in which customers and clients are usually taken their concern in order to get legal suggestion in their personal and any kind of cognitive content. These are a type of lawyer who used to advise individual on the ground of their case. Solicitors are responsible for advising individual on the basis of their legal approaches and for this, they get appropriate trailing to resolve issues and conflicts outside the courts. Their working criteria are far different from barrister and advocates.
- Judges – They are the authorised body who make decision on the basis of clients hearing and analysis process. Judge commonly give final and legal conclusion to civilians on their issues and concern (Grundfest, 2010). These authorised bodies are having obligation to provide final judgement on different cases and issues in courts. Main objective of judge is to hear discussion of each party, analyse cognitive content and provide final decision.
P 2 Role of government in making law
In a country, government and authorised bodies are liable to create any rule and law. This process takes a long period to finalize a final rule for overall country. In this process, these legal bills are bringing on different stages in order to take a final decision on it. Main objective of this procedure is to define effective legislation that is keep under consideration by higher authorities. For this, modifications are taken place until or unless the bill being passed by final approval. This procedure make specific formation on different stages as -
- First reading : This is an initial stage in which member of a legal framework are analyse a agenda and being read them in front of member of assembly with a specific purpose and objectives. Main objective of this process is to found a correct decision by authorised body to make effective modification and alteration. This is a suggestion stage in which analysis and monitoring activities takes a specific place.
- Second reading : This is second stage of law making approach in which discussion takes place. In this process, legal bodies, authorities and member of parliament analyse motive of the agenda and begin discussion as well as debate on that topic (Foss and Knudsen, 2013). In this procedure, higher authorised bodies analyse views and opinion of them in order to get a favourable result. These discussion are take a specific place in House of common with a specific motive to get proper analysis on bill. Through this higher authorities in House of Common analyse weather the bill is appropriate or not.
- Committee stage : At this stage, bills are examined in an elaborate manner in order to finds out its objectives and consequences. Through this, member can easily get corrective information to make further modifications and alteration in business process as well as activities. Member In House of Common assist to provide suggestion and recommendation in order to make changes to getting final results easily. These investigation take a specific place before representing final report in front of higher authorities. These detailed analysis take place to monitor each activity properly to make final improvement before concerning last bill and approaches.
- Report stage : At this stage, changes are made in bill on the basis of modification criteria and change inactivities. These activities take a place by analysing results of debates in House of Common. In this stage, individual represent their views and ideas on specific bill by consideration of changes and alteration. In this, it is required to represent effectiveness of ideas after making modification to analyse how affectively they will be working.
- Third reading : This is the conclusion stage in which modifications are kept in bill by mutual understanding that requires to consideration. These process is being proceed on the bases of majorities of individuals on specific topic. In this process, bills are represented by authorised body in front of others by determining final alterations and its impacts. Higher bodies of committee has right to pass them to proceed on next stage. They can also provide decision to make further changes get cancelled them as per their views and opinions.
- Final stage : At this stage, bills are represented in front of House of Lords to passing the amendments. In this, Authorised body can send back this again to House of common if they found any it not well and inappropriate. This process start again if it is not get approval from Hose of Lord. After final approval of this bill it get ready to sent for Royal Assents. This is the last stage to convert a bill into act after final approval. The transformation of act is being send by the order of Royal Assent. These act are forced to follow by each individual in effective manner.
The proper stage assist to make a effective act in a country with a specific objective that requires to accomplish properly. After the implementation of this, each individual requires to follow its rules and regulations. If these acts are violated by anyone, then they are liable to get punishment for it. Main objective of implementation of these legislation is to establish discipline for social factors in order to create positiveness in proper manner. In these approaches, government of a country play a most important role in order to implement each law and rule in country effectively. Common and statuary law is two variant term that is applied in the judicial environment. Statuary norms is commonly enacted by legal bodies for explaining written laws. It is to be noted that such regulations are formed by assemblies (DiMatteo, 2010). But prior to its final binding, it is passed to different agents for attaining approval of them. Such agents are supreme court, executive agencies, etc. Where as Common law is executed according to previous cases and foregoing conventions.
P 3 Impact of employment & contract law on business
According to mentioned case, there are three friends from same university whose name are Penny, Marie and Jane. They all have established a small firm known as 'JPM Publishing' after doing graduation. Their accountants had given them a good suggestion of converting or expanding corporation as a Public Limited Company after running trade for some years. The primary aim of doing the same is to increase existing capital. Therefore, for accomplishing determined ambition, they should focus more on their work – forces since employees are only one who is able to complete each and every task within specific time – frame. Without them, a venture can't even start a single task. Hence, it is not possible to gain profitability and earn more capitals when they will not keep good relation with staff members. Company's Act 2006 should be used in determining role of directors. Some of the obligations that ought to be carried on by directors are as follows :
- A director should play the role of management i.e. any affairs occurred within organisation have to be dealt by directors only.
- They ought to take part in procedure of making final judgement.
- They should monitor workers and offer them proper training for creating them more skilled & talented.
- Each concerns affiliated with personnels have to be solved on priority basis. This will help in maintaining healthy relationship.
Apart from determining above mentioned duties of director, JPM Publishing is required to consider following regulations :
- Health and safety regulations : UK Government has designed Health and Safety Act 1974 for the purpose of generating safer environment at workplaces (Czinkota, Ronkainen, and Moffett, 2011). This law prevents the right of common workers who used to perform full as well as part time duty under any organisation. According to this, company is liable to provide fundamental right of being safe to each employee. They should attempt to arrange free medical facilities such as first aids, medicines, etc. to their workforces. In additional to this, JPM publishing ought to stop work at more height. This may lead to sudden accidents. On the other side, sign boards has to be prepared for indicating danger prone areas existed in corporation sites. This will reduce existed probability of accident. Chemicals, hazardous substances, etc. should be kept out of reach of common people. Such kind of phenomenon could assist in creating healthy surroundings which may motivate team members in working effectively.
- Equal opportunities regulations : Governance of United Kingdom has enacted Equity Act 2010 for prohibiting discrimination on the basis of age, colour, sex, religion, caste, pregnancy, etc. JPM publishing must have to follow similar concept. They should treat each & every worker equally. Besides this, equivalent opportunity of development ought to be offered by them. It will proved to be beneficial for company since people get motivated and work appropriately without facing any kind of difficulties.
- GPDR : It stands for 'General Data Protection Regulation'. This is a legitimate framework which is setting the principles for storing, collecting and processing of personal facts & information of common public within European Union (Crane and Matten, 2016). The main purpose of establishing similar norm is to form a collection of standardised data protection rule for civilian of all nations. Thus, JPM Publishing should abide or run their businesses by following same law. This as a result make their work easy since they may know easily how their information is being used by others. In fact, company has power to raise complaints if they find any uncertain or illegal activity happening with their data. They are liable to do so even when JPM is not located at that place where crime affiliated with personal info. is going on. Therefore, company could every safeguard facts and figures that is transferred from one place to another.
P 4 Appropriate solutions to several business problems
According to second case, Champion Ltd' is located in London and is going to develop a new stadium. For doing the same, they need to relocate from its previous site in North London to a distant place. During this relocation, they have taken loan from not only bank but also from other creditors since sufficient amount of money was not present in their hand. But the corporation did not gain desired sum of profit due to the declination in overall client. As a worst result, they had suffered from huge financial loss. Therefore, it is not possible for them to payback such a big amount of cash to creditors as well as banks. Because of this, those creditors started to threaten Champion limited. They were supposed to apply to present identical case in - front of court and ask for winding up petition. By examining facts and figures of this lawsuit, it can be stated that creditors has right to apply the procedure of liquidation. This could only be the legitimate solution.
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Significance of Management Accounting and Techniques Of TSR Private Limited
In economics & finance, Liquidation is nothing but the operation of bringing a enterprise to an end. This is done for distributing the assets of particular company to appliers or claimants (Braithwaite, 2013). It is a phenomena that generally occurs when a firm is insolvent i.e. they could not pay their obligations even after completion of given dead-line. When business actions ended by specific venture then the left over assets are used for the purpose of paying money to shareholders & creditors on ground of priority of their claiming. There are two types of company liquidation which is discussed below :
- CVL : It stands for Creditors Voluntary Liquidation. This service is utilised for termination of an insolvent corporation (Bebchuk and Jackson Jr, 2012). These are those companies those who used to borrow money from creditors but cannot pay the same. Thus, become due for payment.
- Compulsory Liquidation : In this kind of liquidation, a court get involved. A winding up order is given by tribunal to force a company to liquidate when some one who is associated with business has filed petition against them. This person could be a director of firm or a creditor who wishes payback loan.
Therefore, according to given case of Champion Ltd; Compulsory liquidation could be the best lawful solution since it is the proper step to attain invested sum of revenue. Creditors can file petition against mentioned corporation and request members of assembly for getting justice. Best assignment help in Malaysia at the best price.
The second case is affiliated with an organisation titled as Amber Ltd. Herein, Mr. Anderson was working at the designation of CFO. It is to be noted that he was having access to extremely secret information related to business. He had signed a concord of employment whereby it was written that contract could be terminated when notice period of 12 month is served by worker. Besides this, for terminating employee; corporation should also have to give notice of termination of twelve month. But after some time, Mr. Anderson had received a golden chance to join one of the biggest competitor of his company named as 'Beta limited'. The rival presented post of CEO i.e. Chief Executive Officer in favour of Anderson along with an attractive salary package. Because of this, Mr. Anderson decided to took offer given by Beta Ltd after time frame of transnational arrangement with Amber Ltd which was going to end on 31st of May in 2016. But the corporation had objected to his proposal by sating that he must have to work for one year as per the norms of employment contract. But he was not ready to carry on duty for next upcoming months. On the contrary, Amber Ltd is going to seek an injunction against Mr. Anderson on the basis of breaching of employment rules since he is going to work for Beta Ltd which is an illegal action. They are saying that Anderson is breaking good relation of trust, confidence, fidelity & trust with them and would supply services to their challenger. By observing this case following legal solution has been provided :
- Involvement of judiciary system : Since Anderson is not ready to continue his professional relation with Amber Ltd, company can knock the door of court. They can attain order of injunction from tribunal. An injunction is nothing but a judicial command which is given by the side of law court generally for stopping someone from doing any operation. Venture should present every facts and proof in-front of judges so that they can prevent his personnel from joining other company.
- Termination : Amber is also having power of terminating Mr. Anderson by giving them notice that he would be terminated after twelve months as he is suspected to work for Beta Ltd which is their main competitor (Bagley, 2010).
Hence, the better solution is participation of legal system that is Amber Ltd should involve court of United Kingdom for resolving identical issue.
P 5 Justification of appropriate legal solutions
By doing investigation of both cases, some issues has been seen which are listed below :
- In case 1st of Champion Limited , critical problems has been created since they were unable to pay – back the loan to creditors and banks. They were shifted to a new place for building new stadium and due to similar fact, the number of consumer got decreased. This is the only reason of not returning money as firm has suffered from great loss. Therefore, some of the creditors were threatening them to file wind-up petition. In this proceedings, compulsory liquidation process could be applied for resolving the complications. By this, creditors will be able to sue Champion Ltd. and ask them for sell all of their assets so that amount of loan could be paid. This is best option because creditors only have to represent valid information in front of UK assembly. After verification, when their filed complaint get approved then they can prepare for applying liquidation methodology on guilty i.e. Champion Ltd. By selling resources or assets of corporation, creditors can earn money and divide received monetary value amongst themselves.
- In 2nd case, so many troubles arises for Amber limited as their one of worker named Mr. Anderson decided to join another company i.e. Beta Ltd. He is having access to extremely confidential data thus if he will join their rival then whole privacy system will get destroyed in few time only. Apart from that, there is high possibility of leaking of plans associated with businesses. Thus, it could be stated that if this would happen then Amber might suffer from huge loss in future. Therefore, it is better to take help of court. By proving fault of Anderson, they can gain right to obstruct him from leaving company and work for some other contenders. This method is known as injunction.
P 6 Recommendations of suitable legal solutions
ADR is abbreviated as Alternative Dispute Resolution. This is a process of resolving any disputes without judicial proceeding. Techniques like Arbitration, Meditation, Negotiation is being used for the purpose of settling conflicting situation occurring within two or more people. There are mainly two types of ADR which is listed below :
- Mediation : In this method, a third party is involved known as mediator whose main job is to aid parties for reaching to mutual agreement. It is to be noted that mediator is not having power to force involved persons to agree on their provided judgment. In addition to this, confidentiality have to maintained by all people (Bagley and Dauchy, 2011). This help in minimizing any kind of physical or mental violence.
- Arbitration : This technique include a neutral tertiary party for solving conflicts. That person is known as arbitrator who is liable to listen grievances of their clients. On that basis, final decision is taken. It is being used whenever more technical issue is created.
- Conciliation : Apart from above two there is also a third type of ADR named as 'Conciliation'. In this process, an independent person called as conciliator is participated for helping civilians in settling dispute. Conciliators are responsible to determine actual reason of conflict, on that basis they used to develop their own options as well as also consider other alternatives for reaching at final conclusion. At last problem get solved in effective manner.
In case of Amber Ltd., Mr. Anderson is going to join other company whose name is Beta Ltd as he had got opportunity of being CEO there. The matter of concern is that he knows various confidential information about company and there is high possibility of leaking of data. This will give bad or negative result on firm's profitability and productivity also. Therefore, venture want to prevent him from leaving and joining any another rival. On the other hand, Mr. Anderson is against this and decided to leave existing job by giving resignation. This is not correct on ethical as well as legal ground which is creating dispute between corporation and Anderson. In order to resolve current situation, Arbitration process can be used by referred organization. This will assist in settling out both grievances. Some of the positive impacts of arbitration which make it different from other processes such as meditation and conciliation are following :
- The person who is involved in dispute must have to agree prior to the procedure that decisions made by arbitrator would be final, enforceable and binding.
- Arbitrator or third party is hired by examining their experienced in field of resolving disputes. Thus, it can be said that specialized person is chosen in this process for giving judgment. So, there is no need of worry reading concluding statement made by them.
- A group of arbitrators can be employed for same hearing.
- It is more cheap in comparison to other methods like knocking door of court or there is no need of going tribunal.
Thus, it can be stated that Amber limited should implement the process of arbitration as through this they will not need to consult court or any other judicial member. This will save their time and money as well. The procedure of tribunal may take long period time along with high amount of money. As a result, negative impact would arises in venture as they have to deal with thousand of other chores on regular basis. Hence, arbitration is considered in existed case as it is best type of ADR that will resolve issues in less time – frame.
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From the above report, it can be summarized that business law is an essential component in the legislation of United Kingdom since it deals with each and every activity related to commercial as well as corporate world. In this assignment different judicial solutions for the case of Amber Ltd and Champion Ltd has been provided which is proved to be beneficial for corporations. In addition to this, role of directors according to the Company's Act is also described. They are having responsibility of maintaining various activities occurring within company. In this assignment influence of various acts such as Health and Safety Act 1974, Equity Act 2010, General Data Protection Regulation, etc. has been covered. These all aids in setting peace and discipline in corporate sector by commanding each and every company to provide fundamental rights to their workers and other staff members such as employers, subordinates, directors, etc. In addition to this, influence & implications of different regulations like health and safety, equal opportunities, etc. on an enterprise is explained according to given case. Apart from similar, some legal solutions has been provided that is used to resolve business related issues. In last section, concept of ADR is enlightened.