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Importance of Law and Legal Framework

University: UK College of Business and Computing

  • Unit No: 9
  • Level: Undergraduate/College
  • Pages: 11 / Words 2772
  • Paper Type: Assignment
  • Course Code: M/508/8849 (RCF)
  • Downloads: 627

Table of Content

  2. TASK 3
  3. TASK 4
Question :

This unit states you are working with Business Futures Ltd dealing in business consultant for expansion of business activities.

  • Define nature of legal system
  • Demonstrate impact of law on business activities.
  • Provide legal solution to the business problem.
  • Recommend legal solution based on the alternative advice.
Answer :


Business laws and legal framework are quite important to the company so that it may provide fair business practices. Present report deals with various sources of laws which must be complied with by CP which is engaged in selling furniture to pubs and restaurants. Moreover, role of government in law making is provided as well. Furthermore, employment, consumer and company law impact on business is explained. Appropriate solutions to business problems and recommendation are provided in relation to the country. Thus, laws are helpful to protect customers from unfair practices and legal framework is established within company.

P1 Different sources of laws and company need to comply with

The law provides way to organization in order to carry on fair trade practices in the best possible manner. The sources of law which means origin of particular law and as such, it is legally binding on the citizens and business as well. The law provides fair judgment to the parties who have faced the losses (Bernstein, Korteweg and Laws, 2017). State of conduct is taken into account and organization must comply with some sources of laws listed below-

Jurisprudence- The laws are formulated in the past few decades and are legally binding on the human conduct. These sources have been developed years ago. Moreover, it consists of legal customs, divine rights, natural and human rights as well.

Passage of Bill through UK Parliament

Bill is known as proposed law which is introduced into the Parliament. Any person being a member of Parliament has the right to introduce bill. Some bills are agreed as per government policy and other bills are known as Private Member's Bills. The Parliamentary stages when bill is passed is listed below-

First Reading-

Bill is introduced and no debate is made on it.

Second Reading-

In this stage, debate is made on principles of bill held in the chamber. Opposition will respond and Government will close debate by noticing point.

Committee Stage-

Here, line-by-line detailing of bill is done where specially convened committee of MP takes place.

Report Stage-

Consideration in the Commons takes place and necessary amendments are discussed in the bill is done regarding omitting or adding provisions in the same.

Third Reading-

The amendments are discussed but no additions can be done and these amendments can be tabled.

Later Stages-

It is the last stage where bill has been passed by both Houses i.e House of Commons and House of Lords and once approved by Royal Assent, bill becomes law.

International sources

• International treaties- This type of law is taken into consideration when the same are given formal consent only. Although government of the nation may sign international treaties. These come into force when signed by varied number of international forces.

• Community laws (European)- International laws are important for the regulation and in relation to this, European law is one of the main example of such laws. The nations of Europe and firms stated to join EU (European Union) and adopting constitutional laws in it.

National sources

• Legislation- The legislation is essential law which is the legal rules and regulations of firm. These legislations effectively regulate organization so that it may provide fair business practices and as such, consumers are protected with such legislation (Qi, Roth and Wald, 2017).

• Case law- It is based on such jurisdictions and associated with English Common law in effectual manner, however, it has been taken from Civil laws. It is termed to be decision in the Court supporting proposition for contend quite effectually.

• Equity- As the name suggests, law is confined to the organization so that it may provide equal opportunities to the employees at the workplace and further safety should be provided to them.

P2 Discussing role of government in law making

The government of the nation provides various laws and regulations so that company may impart adequate facilities to customers in the form of better quality goods and services. The role of government in law making is described below-

• Forming perfect union-

The government enacts law so that cultural values may be strengthened and country may be united as well in the best possible manner. Moreover, rights of every individual should be protected and make sure that patriotism may be injected in a better way (Ganguli, 2017).

• Establishing Justice-

Laws are formulated by the government to effectively establish justice in the nation so that citizens may not indulge in any irregular activities and justice is imparted to them. The justice is given by local, federal and state levels quite effectually.

• Ensuring domestic tranquility-

All the wrong doers are punished by the law who breaks the same and as such, protects rights of people in effective way. The government secures individual rights, resolves disputes and issues prevailing and as such, maintains law and order in the country, thereby, providing security to society.

• Making decisions-

This is another role of government in law making as values and cultural beliefs of the society have to be followed in that manner by which justice is provided to innocent parties. The power to make decisions is in the hands of Court and thus, justice is made accordingly.

The common law is applied in Justice Court by effectively scrutinizing the case that is relevant to it and statement is finally passed evaluating value of the law. Decisions made by higher courts are taken over that of lower courts. On the other hand, statutory laws are written ones and directly applied to case (Laws and, 2017). This is developed with notifications provided by the government while common law is formulated on daily basis. Hence, these laws are applied and overall legal framework is established in UK.

P3 Discussing impact of employment, contract and company law on the business

The company needs to be formulated as per provisions of Companies Act 2006 which governs how to establish organization in the best possible manner. CP (Country Pine) wants to form its business to limited company so that it may be able to enhance more profits by enlarging business operation. As per the provisions of law, CP needs to register company and apply for registration to Registrar of Company to obtain certificate of incorporation. Moreover, there are two types of company such as private and public and which it has to choose from for carrying on legal business. Furthermore, name of organization should not be identical which is already listed in the Registrar.

On the other hand, impact of consumer legislation is also on the CP which is engaged in the business of selling furniture to restaurant and pubs. Consumer Rights Act 2015 governs that unfair trade practices needs to be eradicated up to a high extent so that organization may provide better quality of goods to the customers with much ease (Johnson and Nodd, 2018). Unfair practices are reduced quite effectually. While, Employment Rights Act 1996 governs that employees should be provided with equal opportunities and as such, it is obligation of CP to impart necessary rights to employees in effective way. Moreover, Health and Safety Act 1974 also legally applies on firm so that complete protection may be given to employees in related to their individual health and safety at the workplace.

Status of Employed Worker

A person is classified as worker if they have a contract to do services for taking reward, they have to turn up to work even if they don't have to. They are entitled to National Minimum Wage, protections from unfair dismissal, protection against unlawful discrimination etc.

Status of Self-Employed Worker

A person who undertakes to run business on its own and responsible for success and failure. They have protection for their health and safety, rights and responsibilities set out by terms of contract if they have clients.

Uber Case on driver employment rights

It can be referred that Uber had lost appeal over employment rights of drivers from the Court. The Judges have dismissed appeal of company against landmark employment tribunal ruling that it drivers must be classed as workers having access to minimum wage and paid holidays (Butler. 2018). The case was dismissed as Judges found 'high degree of fiction' in agreement between drivers and Uber arguing on self-dependent contractors having few employment rights. Thus, it shows that employment rights should be provided to employees.


P4 Appropriate legal solutions for CP

Nature of Company

The organization is association of individuals formed for any of the common purpose, business and share profits and losses arising out the same. Company is separate from its members forming it. Thus, shareholders and directors have distinct identities from the company though they are the persons forming it. This gives rise to 'separate legal personality' of company. Steps to form company are as follows-

  • Firsr step is setting up company
  • Next choosing company name which is not identical with other companies in the market
  • Company address is required in next stage.
  • Next is to appoint directors and company secretary
  • Shares and subscribing by shareholders
  • Forming Memorandum of Association and Articles of Association
  • Registering company with Registrar of Companies
  • Finally, registering for corporation tax.

Role of Directors

  • To determine and implement policies and decision-making.
  • To call for meetings on important matters and organizing AGM (Annual General Meeting) of shareholders.
  • To prepare and file statutory documents with Companies Office and other agencies.

Ways for raising capital

  • Seeking funds from crowdfunding
  • Raising capital by getting bank loan
  • Angel investors
  • Investment by Venture Capitalists
  • Raising funds from debt market

In order to provide legal solution to CP it can be stated that CP required to registered its company in respect to enhance its sales and profit. CEO of the firm is Kevin Johnson who is focusing on controlling and managing all the operational activities. It is important for company to follow all the rules and regulations in related to the operational activities which can help them in raising the activities and capital (Foss and Knudsen, 2013). Through registering the company, it can become secure and no issues further company would face in the future. Company directors are responsible to manage all the business activities in an effective manner

Company act 2013 can assist company to make improvement and solve issues which company can face while carrying out business activities. This act is effective as because it can improve overall working environment of the CP company. This act makes sure that equilibrium of Power of responsibility is keep up to the payment to all its stakeholders and make sure that company can increased its shares. It leads to assist business to use both its penal and regulative measures, with considering functions to make sure the corporate structure of business is carried out of firm that it is going to good with legal holiness in an effective manner. It will support company in accomplishing desired goals and objectives of future development (Foss and Knudsen, 2013). Along with this it also helps in making improvement in their working capital which assist in increasing productivity. Corporate governance also developing awareness in relation to the responsibilities and duties. Hence, these all help company in overall development of the CP company in terms of working and managing director along with this board members effective manner.

P5 Justification

The act assists toward the concept of modest mobility. In 1866 this act was developed in respect to regulate enrolment, standard and wind up its different subordinates in an effective manner. According to the companies act all the directors shall be appointed in the general assembly of the firm and provided appointed direct the identification number regarding are not ineligible to become a managing director in an effective manner. There are various roles and responsibilities which are as follows:

• They are responsible to make sure that that vigil carrying in their actions and users should not be affected while carrying out business relationship (Eren, and,2014).

• There role is emphasised on promoting and protecting stakeholder level in company

• Duty of director each member within the firm to gather future outcomes and high level of business.

Further he is accountable for managing all the issues and conflict which can be occur between members and other committees that assist in making improvement in operations activities.

• It is important for director to emphasize on independent judgements for enhancing overall working environment in order to make effective decision.

• It is essential to manage different kinds of factors such as social technological and controlled them to make sure that appropriate intentional are held and all minutes for the establishment.

• Company emphasize on financial activities which assist them to helps in enhancing working capital in respect to expand the firm activities in an effective manner.

For CP company it is important to follow all the rules and regulation after its registration which help them in carrying out business activities in an effective manner.


P6 Alternative dispute resolution process

Alternative dispute resolution process: It is very essential process in which both the parties solve their issues, conflicts and disputes in an effective manner. Along with this government also supports which help in minimising the chances of claiming in the court. The provided method is effective enough in order to create an interrelationship between both the parties and to solve all their issues and conflicts (Cameron, 2017).

Conciliation and mediation: This method is considered as free and effective in use as because it leads to assist parties to resolve all the issues and conflicts which are less formal and arbitration. One of the main goal is to make both the parties satisfied

Adjudication: Adjudication is based on the written documents which help in determining the issues and reasons of conflict. It is stated as informal method as compared to the arbitration and effective in use. Further, this method was approved by both the parties by charted institute arbitration along with emphasis on important area of conflicts.

Arbitration: It is method which is used by arbitrator that assist in analysing problems and disputes which occur between two parties (Bodie, Kane and Marcus, 2014). Along with this it is legally bind as decision are made by authority and last solution is provided for company on which no party can be dissatisfied.

Neighbourhood law centres

It is the law centre assisting people who cannot lawyers. Pine can easily take help from this law centre and claim for the defective timber. Hence, problem can be resolved by taking help from it.

CAB (Citizen Advice Bureau)

The CAB is helpful in providing advocacy and providing legal support when imparting help to individuals. Thus, Pine can seek help from local CAB so as to resolve issues between him and the other party under contract.

As per the provided cases study of country Pine who import timber from Poland which take place in the form of flat backs. Sometimes it may happen that Timber which are delivered to clients are defective. Further, polish supplier refund them back due to damages. Hence, Arbitration can be consider as effective in order to satisfy both the parties and to solve issues. However, it can be only done by both the parties after their approval.

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