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Role of Business Law

University: London College of Contemporary Arts

  • Unit No: 7
  • Level: Undergraduate/College
  • Pages: 17 / Words 4318
  • Paper Type: Assignment
  • Course Code: BAA748
  • Downloads: 1103
Question :

The law of business plays an important role in the running of a business and its activities. There are many laws that comes under the ambit of this law which helps in the regulation of the organisations. To understand this is details, answer the below stated questions.

  • What is English legal system? Explain its basic nature.
  • what potential impact do law have on business.
  • Suggest legal solutions that are appropriate for a business problem.
  • Recommend upon the basis of alternative legal advice, the legal solutions which are appropriate.
Answer :
Organization Selected : Tesco


The business or mercantile law defines as an acts and laws, which control as well as govern relations in between public and organisations. It encompasses all regulations and laws with dictating methods in which a company can run or operates its business (Bambara and,2018). It is also useful in the process of solving commercial matters. In this report, it will cover different origin of laws and role of government in making law with application of common & statutory law. It will also include impact of contract & employment law on businesses. Further, it will contain various legal solutions with its proper justifications. Lastly, it will include legal solutions based on different countries legal system.

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P1. Various sources and origin of laws that comply with in the organisations

English legal system comprises the entire United Kingdom and consists of four nations such as Wales, England, Northern Ireland and Scotland. In such countries, some laws and acts apply in one, two or three nations. Main origin of these UK laws are Common Law, European Union Law, Legislation and European convention on Human Rights Laws (Besley, 2015). The English Legal System depends on three grounds that are European communities' law, statues or legislation law and common law. All such laws are created under both private and public law and govern the relationship between citizens, private organisations and state.

The legislation is made by legislature in the Parliament based at London. It is the main legal body that has power to pass any act or law and this is applicable in all four nations. In this context, there are two legislation systems in which the first legislation is known as primary that describes as statutes and enacted by the Parliament of UK.

On the other hand, secondary legislation refers to delegation and created by different legal bodies govern by any parliament authority. Common law is regulating different commercial cases in Wales and England and decisions of the senior legal proceeding courts is the part of law and act (Bodnar and Kenney, 2018). The legalisation is an act of Parliament that begin its life as Public, Private, Hybrid and Private Member's Bill.

The European Union Law applies in the entire UK because it is the part of EU and the European Convention on Human Rights that contains The Human Rights Act 1998 and it came in to the effect from 2000. It is situated at Strasbourg and European Court of Justice that is situated at Luxembourg. Another element also mentioned in the declaration that it must moduled in the ratio of undecided of the case that meaning reason for decision in Latin.

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Common laws created under the principles, which established in the standardisation throughout Wales and England. Its process running from the eleventh century to still (Brown and Nagy, 2015). In the legislative process there are two main elements of Parliament House of Lords that consists 825 unelected persons and House of Common 650 elected persons.

In the process of classification of laws, which describes under UK context, Civil Law covers different areas, for example negligence, employment, contracts, family matters, land and probate law. The other branch of public law is Criminal Law refers to boundaries of acceptable conduct and if a person breaks this law then he or she will create an offence against society as a whole and punishment provide according to the rules and regulations that provides in act. The civil law is enforceable in England as well as Wales that there country's court deals with several claims and cases that are involves less than £25,000. Most of the higher value cases heard by a single judge in the high court which is situated at London. An individual who start a civil case is known as claimant and whole burden of prove is laying on that person (Clarkson, Miller and Cross, 2014). In this context, if he or she will be successful then an individual must gets proper remedy of whole damages which may be money or kind form from defendant party. The court will also punish the defendant and prohibit him/ her behaviour.

Health and Safety Act: This act was build under 1974 in UK which is complied in the organisation for the health safety of every employee's. This act mainly focuses on the safety hazards regarding health of workers within the firm.

Consumer Law: There are various rights which are used by consumers in regard to this law which was build in 2015. Moreover, the consumer act is applicable in organisation to solve problems regarding goods, credit, poor service, counterfeit goods etc.

Employment Law: This law states the issues related to workers recruitment, trade unions, safety, reducing stress and so on. The act was regulated in 1998 which was complied in the organisation to mitigate all this issues.

Fire safety: The fire act was regulated in 1947 and was applied by the organisation to provide safety to employee's in case of any fire emergency. The facility of ambulance should be efficiently provided to every workers in the firm.

P2. Role of government in law making and common & statutory law is applied in Justice Courts

In United Kingdom, the Parliament has two major Houses that creates bill and further, it will convert into the law or act that can be applied to all organisations. Parliament creates various laws related to commercial and civil purposes. This process is known as development of bill and its proposal made is made in the form of white paper at Parliament for consultation and it will be prepared in draft format on green paper (DAILY and, 2014). This draft goes by a passage and become proper legislation and that bill can begin its journey of making a law.

Its process is describing as below:

  • First reading - In this stage, the bill is reads by members in both the chamber or House of parliament.
  • Second reading - After reading in both the chambers, all peers and MPs creates some discussion about all major principles of that bill and they may vote at the end of this process, if they see a controversial thing in that particular bill. If this bill passes from the House of Lords, then it will reach to next stage without any vote or discussion.
  • Committee stage - In this stage, bill is view as line by line through special committees members of the Parliament and makes several amendments for fulfilment of any requirements (Fenwick and Wrbka, 2018). At this stage, the entire House of Lords involve changes.
  • Report stage - This stage will describe about the bill that will report to the House with all changes or amendments and all MPs can check and review that amended bill. They also suggest for any changes if not contains in last stage.
  • Third reading - In this stage, members vote and debate on that bill in its final form. In the House of Lords, all members still introduce any further amendments (Ferris, 2018). In general, the power is limited and responsibilities of this House is shows as complementary according to the Parliament act 1911 and 1949.
  • Royal ascent - For becoming a law, the bill needs to a Royal Assent that is given by Queen and this will declare in both Houses. This stage of Royal Assent only formality and there are no re-fusion made since 1707.
  • Turning into act - After accomplishing whole procedure in both Houses, the bill will turn into Act from bill. Both the Houses, Lords and Commons must agree on the final shape of a bill before it can become law.

Common law - The common law in UK refers to various act like Employment Relations Act 1996. In addition to this law, the rights, responsibilities, relations, legal practices are maintained in the corporations. Moreover, the company law is defined as legal and basic practices to be followed in firm. Manslaughter, common assault and murder are assigned as common law that are applied in the justice court (Ghahramani, 2018). The courts provide remedies, punishments in terms of an individual safety. In this context, the justice court apply the common law in court that may also sue under the law for breach of contract of any wrongful and unfair dismissal. in addition to this, the parliament is the supreme and common law that makes clear structure of organisation in the UK country. The justice court apply this common law that helps every business in operating managerial activities more effectively in UK. Common law is mainly used by justice court in terms of their structure and hierarchy. This structure relates in maintaining their Federal system, judicial system etc with the help of common laws. Moreover, hierarchy structure contains of Petty Sessions Court. Parish Court, Supreme Court, Appeal Court and Privy court which are maintained under compliance of common law.

Statutory law - The justice court interpret and apply the legislations in the concept of Statutory law. Under the application of this law by the justice court, they governs laws in maintaining the behaviour of court, individuals and even governments. Its impacts is seen in entire country towards achieving the goal and objectives. This law which is created by parliament, constitution, law commission or agreement refers to Statutory law. The justice court applies this law in addition to make various decisions and judicial precedents that creates values that is made up by several legislative endorsed bodies. In terms of common law, the judicial system make it constitutional for the specific process to make changes effectively in the court. As the justice court apply the statutory law, they make it more formal and enhanced in legal system that is depended on the regulations and rules.

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P3. Potential impact of contract and employment law on the business

In every organisation, there are many laws, rules, regulations and acts that may control and govern all organisational activities so that the management team should comprises all laws and follow several rules for operating its business (Harner and Rhee, 2014). In this context, there is a case that arise in Adebonojo's family and they are in the critical situation. So for this reason, there are describes the case and its solution as below under the legal letter formate:

Legal Letter
To Adebonojo,
In this case, the Adebonojo went to the Nigeria to meet the leading shipping and cargo agents in regards to some meal inventory. Further it was identified that he was treated very badly by supplier as they were selling normal quality products at the higher rate. In this situation, the problem arises in Adebonojo business that affected negatively and should follow some steps that helps in creating and naming their company. The contract and employment law can be intimidating element for every company so the business need to improve their growth and development (Landry, 2018). To make company more progressive they must mutually solve issues that increases profitability and productivity. In this case Adebonojo must comply with certain employment laws and ethics. Moreover, company should provide proper safety and security for their potential workers and also for the customer. If all the steps are not followed by Adebonojo, it will reduce potential customers and also profit of company.
Legal Letter
To Chukwuyedi,
This is based on conflicts regarding relation of employment and Chukwuyedi must follow few advices in terms of making company more powerful and advanced in market. In employment law, there are many factors such as grievances, bullying, discipline, equal pay, maternity, harassment, parental rights, discrimination like age, sex and many more. Moreover this all factors must be resolved by Chukwuyedi which helps in maintaining relation of employer's within the company. It is the duty of the entrepreneur to look about workers that they must stay away from any misconduct like swearing, Theft, Drinking on the job, Dangerous Behaviour, Lying etc. If Chukwuyedi does not follow his duty in response to focus on employee's and employer's then the company will not gain higher performance level in market.
Legal Letter
To Bob,
In this case, the Adebonojo and Bob are in the contract in which Mr. Bob receives inventory from shipment and he found that the content are not exactly as he envisaged. So for this reason he has the rights of consumer as according The Consumer Right Act 2015. It is a law came in the place of three major acts that are The supply of Goods & Service Act, The Sale of Goods act and Unfair Terms in Consumer Contracts Regulations Act. This is useful in providing safety to the consumers and protect them. Bob must use provisions of this act and achieve desired targets and objectives. In terms of late delivery of goods to Adebonojo, Bob should provide goods on time which enhances the value of his business. Moreover, if the products are not delivered in specific time period it reduces the potential customers in market.


P4. Legal solutions

According to the following scenario, John a computer programmer made a contract with the Dean Rizvi LTD. Company for creation of a new computer program in the DVD format. This will helpful for the known department store in improvement of their financial situation (Lee and Harris, 2018). In this case, Mr. John start the work and made the design of that program but due to some circumstances the Dean Rizvi LTD. Company goes in to the liquidation process. Management team of this organisation appointed to the Mr. George as a liquidator and ordered him to sell company's assets and pay to all creditors.

In this context according to The Company Act, there are suggestion to the management of this organisation and the liquidator that they must adopts this process for sale their assets and distribute to all their creditors. It is describes as follows:

  • Secured Creditors with a fixed Charge (RBank)
  • Expenses of liquidation (George's expenses)
  • Preferential creditors
  • Secured creditors with a floating charge
  • Unsecured/ordinary creditors
  • Deferred creditors
  • Members or equity share holders.

So Mr. George must compile all these and conducts the whole procedure of liquidation and Secured creditors with the benefit of a fixed charge, such as R Bank is in the strong position so if their security amount is sufficient to satisfy their debt in full then they need not prove in the liquidation at all (Lee and Harris, 2018). The R Bank should realise the security, which in this case will cover £400,000 of the debt because the premises of Dean Rizvi LTD have been valued at £400,000 and then prove in the liquidation for the remaining £50,000. In this context, As R Bank will require proving that it have the borrowed money approximately £50,000 in the liquidation and it defines that for this part of balance the debt owed to them, they want their rank in the order of priority will fall to unsecured creditors.

Further, Mr. George's expenses of the liquidation are paid in the priority to all other expenses (Macaulay, 2018). There is a suggestion also recommended that if the company's free assets are insufficient to deal with all the liquidation payments then the assets subject to a floating charge can be used by virtue according to the Insolvency Act 1986.

According to the Contract Act, it refers to contract term that it is an agreement made in between two or more parties and enforceable by law. In contract, there should be minimum two parties compulsory that are an offeror and an offeree. Both are communicated in clear terms and fulfil all rules and regulations. In this context, there are two essential things, first is acceptance and it is an unconditional expression of willingness or temperament to be legally bound by all the terms of a particular offer that have been communicated to the “offeree”. It must be communicated in both the parties (McDonald, Hochkammer and Wernikoff, 2018). In the other hand, the Consideration and it is discusses as English law enforces bargains not gratuitous promises. Consideration means an act or a promise given in exchange for the promise. Every contract is generally a promise is unenforceable unless supported by consideration. The contract is useful in the case of Dean Rizvi LTD.

In this case Mr. John has a position of creditor in such circumstances and he must receive the amount or value for his work. As the scenario, he had been made the design of that particular computer program in DVD format. All creditor makes a petition in the court and want to recover their amount.

P5. Justification for the legal solutions

In the case of Mr. John and Dean Rizvi LTD. Company, there are many rules and regulation uses in it for example The Contract Act, Company Act and many more. Justification about the company act, it is used in this case to solve the problem or conflict arises in between creditors and the management team so that there must be needs of a proper legal solution and regulations (Talley, 2018). In this context, management should consider these legal solutions in account to solve all such issues. They may be the reasons that lead the judgement to take for the decision or any other statement disclosed by the process of justification as better adequate to justify the determination reached hence there are judgements and insights of values (Vastardis, and Chambers, 2018). Mr. John must receives the contract amount as his work done because he made the design and further work can not be done by anyone because it is a personal capability. He took a contract for creating the computer program that will useful in the store department for solving their financial issues but during the period he falls ill and can not make the computer program fully. He had been made partly project that is understood as the design of that computer program and after some time the Dean Rizvi company goes in to the liquidation process by any reason and its all assets are sold and creditors will receive payments for their dues. In this context, John also demanded for his work and George who is the liquidator of that organisation is in the ethical dilemma so that all acts like employment act, company act, contract act and many more acts useful for solving all such problems and John would be able to receive partly amount.

In this context, there is only a perfect suggestion for John that he must go for a legal consultant and take some advice for his any due amount and get the better legal solutions. In this case the Dean Rizvi Ltd. Required to follow the best plans and strategies for eliminating all those critical situations (Bambara and,2018). The management of this company must apply the better solution and George who is the liquidator should provide appropriate suggestion in the liquidation process and sale all assets at the higher price so that the management will able to accomplish all their dues and make sure all creditors will satisfy from the distribution.

P6. Legal solutions recommended based on different country's system

In business, everyone enters with some clauses. Everything is good when delivery of goods is done on time but when it delays the laws are being exucuted. Contractual disputes are ongoing these days. It should be company's priority that the manufacturing and delivery of goods is performed on time. The team working unde this should dissolve the issues related to delivery of goods (Besley, 2015). Similarly, Ali D fashion textile Lltd also faces the same situation of not delivering goods on time. ADD company is based in Pakistan which has signed the terms to deliver the goods in England on 20 Feb 2017. In this AAD fashion and Craif culture went into arbitrual clause to resolve their issues. As the delivery has noy been done on time, England has its ow territerial rules to solve the disputes. In England, the immediate action on this problems are not been undertaken.

AAD fashion deals with fashion bulk which signed the order in England. But this company failed to provide goods on time. England has its own rules in terms of contractual disputes (Bodnar and Kenney, 2018). In England, the law refers to claims by company representatives to the one who failed in giving delevery on time. Collective actions are to be undertaken.


This country provides legal actions in convinient and in cost-effective manner. It applies 1996 Act to provide services in laws. Here, they apply three types of pattern in which, English laws are applied in England, Northern laws in Northern states and Scot laws in Scotland. The contract claims here is for six years. AAD company fails to provide its delivery on time which fails under arbitration clause.


The Pakistan rules are based on the system of British rules. It is also common to England laws. They follow according to Islamic learnings. Many laws in Pakistan are followed under Act of 1947 and 1957.


In this clause, company's enter to solve their issues in context of not delivering goods on time. Its not necessary that this clause is applied uder court orders,infact it can be performed outside the jurisdiction. This clause also reduces the load from the court as they can be resolved outside. This law is compulsarily permitted and joins both the company again as before. They do not include the weaker persons in these orders (Brown and Nagy, 2015). Some formal clauses like solving this issue must be settled under arbitration. As per this clause, Craig and Sadie couture company in England gave the second chance to Pakistan based company named AAD fashion Ltd to deliver goods on next date that is 28th March,2017. But in context to this, AAD Ltd again failed for its delivery. IN England, breach of contract is applied to pay for the loss of company by not delivering products on time. Considering this, for non-delivery AAD Ltd has to pay loss of $300000.


In this clause if the case is entered, then the affected company must forward the notice to the next party, and they shall solve the disputes within 10 days after notice date. In this, the problems must be settled between two parties. The solution must be in good faith such as both the parties must not reach to senior level of executives for resolving disputes (Clarkson, Miller and Cross, 2014). The parties must draft together in order to work jointly in future. Lastly, if the disputes are not resolved in Article 9 then both parties must prefer to senior management. If the senior is also not able to resolve in 30 days then party should go through other clause like Arbitration and Mediation clause.


If the employer and management makes good faith to resolve the disputes then it must be resolved here within 40 days after notice is been served. If employer does not pay full fees, then employer and executive should have to pay equally. If purchaser and seller agrees to fill in the mediation clause then they can select their mediators as agreed by both. Later the mediator will talk to both the parties and then he will arrange the most easiest and comfortable way to solve thge issue (DAILY and, 2014). Any problem which may arise in this agreement, which may be between employee, directors, agents ,etc, it must be first forwarded to the mediator. Because he is the one to solve the same disputes. Lastly, coming to the conclusion, the Craig Couture Ltd, took the case in UK court against AAD Ltd .They also agreed to follow the arbitration clause to solve their disputes.


In this above presented report it concludes, various sources or origin of laws or acts which are complied by every organisation and role & duties of government to make a law or act. It also contains the statutory and common law that are applied in the justice courts. Further, it includes the potential impacts of contract and employment law on the organisations. Furthermore, it covered appropriate legal solutions for the problems or issues raises in the Dean Rizvi Ltd company in its liquidation process. Lastly, it contains proper justifications that may use in this case and also useful for solving various conflicts or problems.

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