Business Law RQF

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Executive summary
The report focuses on the English legal system. the discussion is segmented into four parts. In the
first part, there has been shown the basic nature of the English legal system. it determines the
sources of laws and laws that organization has to comply with. It also shows the role of
government in law making. The nest part illustrates the potential impact of the company,
employment and contract law on a business. The third part of the report shows some suggestion
on appropriate legal problems faced by a business. And the last part of the report provides some
recommendation of appropriate legal solutions based on alternative legal advice provided.

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Table of Contents
Executive summary.....................................................................................................................................2

Introduction.................................................................................................................................................5

Task 1..........................................................................................................................................................6

P1- An explanation of the different sources of law and laws that business organization must comply
with under the English legal system........................................................................................................6

P2 An explanation of the role of government in law making and the application of statutory and
common law in justice courts..................................................................................................................7

M1 The effectiveness of legal system under the recent reforms and developments..............................8

P3 -Illustrate how the company, employment, and contract law has a potential impact upon a business.9

Task 2..........................................................................................................................................................9

M2 - Differentiate and analyze the potential impacts of regulations, legislation, and standards on Tesco.
................................................................................................................................................................ 9

D1- Critically evaluate the English legal system...................................................................................10

Task 3........................................................................................................................................................11

P4 - Suggest an appropriate legal solution for the three cases of Gina, Lonado and Ladycabee Ltd.....11

P5 - Provide justification of the suggestion offered to the clients..........................................................12

M3 - Assess the positive and negative impacts of suggested legal solution to the three clients.............13

Task 4........................................................................................................................................................13

P6 - Recommend an alternative solution for the Uber business problem...............................................13

M4 - Compare and contrast the effectiveness of the recommendation..................................................14

D2- Critically review and evaluate the use of appropriate legal solution in comparison with alternative
legal solutions.......................................................................................................................................14

Conclusion.................................................................................................................................................16

Reference...................................................................................................................................................17

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Introduction
English legal system is necessary for every organization to go through in order to resolve any
dispute and take help in case of any business problem. In this respect, every individual should go
through what English legal system is, how it works and how it solves disputes and so on.
Government plays a great role in law-making. There is much influence of contract law, company
law, and employment law in the operation of any business. This report put focuses on the English
legal system and its whereabouts regarding the business perspective.

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Task 1
The law firm has decided to make a handbook titled The Law and Your Business for its regular
and potential clients. The handbook will cover three important aspects of law enforcement in
business practices. These are briefly discussed below:

P1- An explanation of the different sources of law and laws that business
organization must comply with under the English legal system
There is a distinct formulation of sources of law. The sources can be structured in several ways.
As per English law, it can be divided into EU law and common law by the courts. EU laws
mostly focus on the regulation of European Union and monitor the human rights of the European
Convention. On the other hand, common laws by the court consider the equity standard of law
and common law. The sources of English law can be viewed in the context of the legislative
proceedings of the parliament. The Parliament designates law into two bases. One is primary that
incorporates the acts of parliament and the other is secondary that includes the delegated or
subordinated acts. Secondary acts are the accumulation of regulation by the ministers, local
councils, and developed assemblies.

A business organization must comply with several laws under the English legal system. Some of
them are discussed below:

Contract law: The contracts act 1999 states that if the terms described are certain and the parties
in concern can be presumed from their behavior to have projected that the terms are compulsory,
usually the agreement is enforceable.

Health and safety law: Health and Safety Act 1974 is the principal piece of UK health and
safety legislation. In enforces all the employers to ensure proper safety, health and welfare at the
workplace to all employees. A business organization must have to follow the regulations
described.

Data protection act: Data protection act 1998 states the law of processing of data on detectable
living persons. It is the core piece of legislation governing the data protection of employees,
customers around any business (Jay, 2013). A business organization needs to go through the law.

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Employment law: Employment Act 2002 includes the rules and regulations of maternity,
paternity and adoption leave and pay, and changes to the tribunal system in the United Kingdom.
The law shows the relationship between employers and employees that include the expectation
and rights of both employers and employees. A business always has to go through this law.

Along with the above-mentioned laws, a business firm also has to comply with the local
government law, agency law, company law, tort law, environment law, sales law, consumer
protection law etc.

P2 An explanation of the role of government in law making and the

application of statutory and common law in justice courts
Government plays an immense role in making law. At first, it proposes the law. Then the
Parliament enacts the law. The judiciary panel applies the law in issues. And finally, authorities
enforce the law in question. For example, because of the Brexit conclusion, the law enforcing
body has to make some amendments. As a result, the government has to propose new law
considering the Brexit issue, makes them feasible to the parliament, convinces the judiciary
panel and applies them to the authorities. This can be shown below:

Figure: The role of government in law making

There are subtle differences in common law and statutory law. The judges in the court make a
new decision of common law whereas statutory laws are issued by government agencies. The
operation level of common law is procedural whereas statutory law is substantive. Common law
is known as case law and statutory law is known as the written law. In justice court, common

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laws are used as instructive respect and statutory laws are used as prescriptive respect (Slapper,
2017). Common laws are originated by judiciary panel whereas statutory laws are originated by
the government. In justice court system, common laws are used for everyday purpose without
causing any fractionalization of society or making any expense to the government. Statutory laws
are used by the government where there is no room for common laws.

These laws are applied in the court system with a different reference. First cases are filed to the
court. Then a preliminary hearing is executed. There remain two parties in a case and each has
their own lawyer. The lawyers present their opinion to the court using law references. After that
Judges evaluate the arguments and examine the law. After that he gives verdict viewing all proof
and arguments and law references. This is how the common law and statutory laws are applied in
the court system.

M1 The effectiveness of legal system under the recent reforms and

developments
The legal system has undergone several reforms in recent time. To incorporate these reforms and
developments, the authority also improves the effectiveness the legal system. Recent changes
force the legal system to concern more about the issue of equality. The Deregulation Act 2015
brings some series of amendments and legislative extension. This Act is reformed to lessen the
administrative affliction in the case of individual, business and in broader sense worldwide
organization. This law will bring provision for the unused legislation and at the same time will
create a provision to regulatory and connection purpose. The Small Business, Enterprise, and
Employment Act 2015 explains a series of amendments and legal clarification. It is effective in
a sense that the law is intended to settle the UK countries to be acknowledged worldwide as a
trusted place to do business. It also establishes the belief of new prospects for new small
businesses.

The law enforcing authority has been given the accessibility utmost. The level of enforceability
is also improved in respect of the recent changes. The UK legal system also concerns the
resource efficiency and protection of individuals rights. These actions show the effectiveness of
the legal system after the reforms have taken place (Slapper, 2017).

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P3 -Illustrate how the company, employment, and contract law has a potential
impact upon a business.
Every business organization has to abide by the rules and regulations of the company,
employment, and contract act so far in the UK. These acts have immense effects on a business
like Tesco. Tesco has to follow the Company Act 2006; Consumer rights act 2015, Employment
Act 2002 and the Paternity and Adoption Leave regulation 2002. As per company act, Tesco has
to abide by all necessary legal issues to exist as a public company. Some general provisions such
as company formation, constitutional documents, corporate capacity, execution of documents,
authorized share capital, distribution, shareholders meeting, and shareholder communication are
performed by Tesco. Company Act forces Tesco to execute AGM once in a year. It initiates some
extra cost but at the same time earns the trust of existing shareholders. The AGM also increase
the level of transparency of information in the business. As per employment law concerns, Tesco
has to offer paid leave for mothers and fathers of the newborn. This law impacts Tesco by
increasing cost and employee motivation as well. It also lessens the discrimination of male-
female worker discrimination in the workplace. The consumer right act forces Tesco to write the
terms of their contract fairly not hidden away (Slapper, 2017). The consumers should be given
choice to make a decision. Otherwise, Tesco will be facing legal action for not unveiling the
contract.

Task 2
There have been subtle differences between the impact of acts, regulations, and standards. The
handbook covers this aspect as well.

M2 - Differentiate and analyze the potential impacts of regulations, legislation,

and standards on Tesco.
The legislation provides the legal framework and rules that a business unit has to incorporate to
govern the operation of the overall area. Regulations, on the other hand, assist the legislation by
determining how to execute them in practice. Regulations provide further explanations in respect
of specific matters. Standards provide guidance in case of safety and quality issues of the

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stakeholders in a business. They are enforceable by federal legislation board (Elliott and Quinn,
2017).

Tesco must go through several acts, regulations, and standards to perform continual actions. The
legislations that Tesco has to concern are Company Act 2006, Employment Act 2002 and the
Paternity and Adoption Leave regulation 2002, Health service establishments act 2006,
Consumer rights act 2015, Poison Act 1971, public health Act 1997 etc. The regulations that
Tesco has to follow up are health service establishment regulation 2011, general fire regulation
2010, radiation protection regulation 2006; relevant council by-laws (e.g. waste management).
Tesco has to follow some standards in order to safekeeping and quality maintenance issue for
employees, customers, and clients. National safety and quality health service standards, public
health guidelines are the standards that Tesco obey mostly.

D1- Critically evaluate the English legal system.

English legal system relies on three stands and these are a court of justice, the general court and
the specialized court in the case of special areas. The judiciary court must apply the laws made
by the parliament. The central doctrine of the UK legal system defines that parliament us the
highest law making the governing body in the country. The constitution made by the parliament
can be codified and non-codified as well. If there is a written entrenched constitutional document
specifying the rules, laws, and principles to govern a nation, it is known as the codified
constitution. On the other hand, if there is no written constitution about how to govern the nation
by laws and regulation then it is known as the non-codified constitution. The UK has the non-
codified constitution to some extent (Elliott and Quinn, 2017).

Judiciary assess in Britain is more fragile doctrine than in the more usual continental and
American context. There is a lack of written constitution regarding the judging panel in taking
constitutional actions and decisions. No court has affirmed any unauthorized act legitimately
approved by the English Parliament. Ultra vires enable judges to appraise constitutionality of the
executive actions in respect of ordinary law. It is proclaimed as the narrower and imperfect
version of judiciary review. This ultra vires permits the court to assert ministers action illegal
but not permit the question of the validity of the law itself (Elliott and Quinn, 2017). Judiciary
independence is preserved fully which ensures the security of tenure even when their opinions

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are supposed to be hostile to ministers. Dismissal of judges has not actually happened, but if it
requires then a vote houses of parliament is required.

Task 3

P4 - Suggest an appropriate legal solution for the three cases of Gina, Lonado
and Ladycabee Ltd.
Gina owns a large grocery shop in the city and lets his friend Pala run a mobile phone a card
booth inside his shop. But Gina cannot get rent as expected from Pala. Moreover, there was no
written contract between them. As a result, Gina can ask Pala to vacate the place without any
legal consequences. This action is supported by Tenancy Contract Act or Housing Act 1988.

Lonado runs a yacht building and repairing business as a sole trader. He faces lots of business
loss in the time of building a new yacht as it is difficult to guess the buyer's purchasing behavior
and at the same time the initial cost of making yacht is huge. Moreover, his personal assets will
be taken over if he fails to refund his obligations due to business collapses. Company law can
help Lonado in giving suggestion to make his convert his sole trading business into a company.
The law states the rules and regulation required to formulate a company. Company Act 1994
states that it needs to collect promoter, arrange Memorandum of Association, Article of
Association, publish a prospectus, execute registration from the Securities and Exchange
Commission, perform initial public offering in the primary market. The conversion of his
business will assist Lonado to overcome the existing situation and run the business successfully.

Ladycabee Ltd. Provides ladies only cab service. It employs only female drivers for its operation.
Recent times, it is losing clients for lack of reliable service to the customers. The main reasons
are the employees take paid leave, maternity leave, sick leave and resignation without notice.
Ladycabee Ltd cannot find enough driver for its services. At this situation, it is thinking of hiring
self-employed drivers to stop or limit employing drivers. The employment law does not cover
self-employed drivers as they run their own business and remain responsible for its success and
failure. Employment law focuses on the rights, duties, expectations of employees but self-
employed are not employees. Replacing existing female driver for their sick leave, maternity

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leave is contradictory to the employment act, 2002. Thus, Ladycabbe must be legally liable if it
replaces female drivers for those reasons.

P5 - Provide justification of the suggestion offered to the clients.

In case 1, Gina is trying to make Pala vacate the shop with the consent and peacefully. Contract
law suggests that Gina can take help from pursuing discharge of contract by agreement. By this,
the contract will be terminated between Gina and Pala. Hence, Gina can close his shop at his
will; he does not have to consider anyones approval. Moreover, the cost of electricity, gas, and
meals will also reduce after Pala move from here. So there is a reduction of cost which
apparently increases the profit portion for Gina. It has been seen that Palas customer use Ginas
toilet facilities but Pala did not contribute to the cleaning cost. After the discharge of contract,
this cost will also not incur. So, it is justified that Gina should discharge the contract by
agreement (Elliott and Quinn, 2017).

In case 2, Lonado is facing a business problem because of sole trading features. He has to take all
the risk of building and repairing yacht. This business has its own risk as the buyers behavior is
difficult to guess and its initial cost is pretty much high. Moreover, his personal assets are also
uncertain in the case of failure to pay the obligation. Lonado wants to expand his business
through inviting wealthy investors but he does not like to go for partnership. In this case,
Company law can help him to establish a company and handle the business problem
successfully. If he makes a company, he will get investment from different investors, will
safeguard his personal assets from being taken away, will perform successfully to address the
business risk (Dignam and Lowry, 2016). So it is justified that the law can help Lonado handle
the business problem.

In case 3, Ladycabee Ltd. is facing problem in rendering service to the clients because of the
unavailability of female drivers. It has to abide by the employment law and so it cannot refuse
the request of paid holidays, maternity leave, sick leave etc. Gradually, the company is losing
profit. It has found a solution to hire self-employed drivers as they run their own business and

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will help Ladycabee to serve clients. It will limit Ladycabee to employ new drivers. But the law
in concern does not put light on the self-employed drivers. So there is no use of employment law
in this concern.

M3 - Assess the positive and negative impacts of suggested legal solution to the
three clients
Gina should discharge the contract by agreement to address the existing business problem. The
positive impacts are that profit margin will increase by the reduced expenditure of electricity,
gas, meals, toilet cleaning. He can rent the space to some other and get more rent than Pala
provided. The negative impact is there is no certainty of getting people rent this space. Moreover,
Gina may have to lose clients who came here to purchase product or service both from Pala and
Ginas shop.

If Lonado establishes company through the company law, he will have enough financial support
to expand the business horizon and address risk efficiently. Moreover, his personal assets will be
safe from any obligatory payment. But at the same time, he will lose his freedom to take a
business decision. Decision taking will be delayed, business opportunity can be missed and so on
(Dignam and Lowry, 2016).

Ladycabee Ltd can address their existing business problem by hiring self-employed drivers. The
positive impacts are that the company does not have to treat the drivers as their employee and so
the regulations stated at employment law will not hold good in this respect. The problem
discussed regarding the unavailability of drivers because of sick leave, maternity leave, paid
leave will reduce to a great extent. But at the same time, self-employed drivers will be lacking
the benefits of an employee. The employment law will not give shelter to the hired self-
employed drivers.

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Task 4

P6 - Recommend an alternative solution for the Uber business problem

A mobile app-based taxi service, named Uber, is gradually grabbing the market of conventional
taxi drivers. The general public is happy with the Uber service but the conventional taxi drivers
hate them. An alternative solution to this problem is, Uber can have upheld as a ride-sharing
service and not as taxi service. As a result, Uber can avoid all laws and by-laws of taxi service
in cities. For example, Uber can charge flexible prices for its ride and not have to be stuck with
minimum fares (Brooks, 2016). Then it will have to obey the laws of taxi-licensing, tax law and
so on. It will have free space to run its business smoothly.

M4 - Compare and contrast the effectiveness of the recommendation

The recommendations made for the Uber problem is effective in great respect. Uber is hated by
other conventional drivers. Even the Black cab services worldwide are seeking legal actions to
eliminate the operation of Uber (Brooks, 2016). It would be beneficial for Uber if it surpasses the
rivalry in the market. The suggestion given is effective for Uber. Uber can increase its profit
share, market share, and public confidence. With the tagline ride-sharing service, Uber can
circumvent the laws regarding taxi driving. As a result, there establishes a clear difference in the
operation of taxi driving and Uber. At the same time, Uber will avoid the regulations of taxi-
licensing and tax aspect prescribed in the specific law.

But at the same time, there is some problem in this aspect. The general public cannot sue to the
Uber as there is a lack of a distinct law protecting the right of clients (Brooks, 2016). The people
will find taxi driver reliable to ride because in case any accident occurs law supports the clients.
So even if there is much anxiety among the general public regarding Uber, it will deteriorate if
there is no established law for the ride-sharing service given by Uber.

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D2- Critically review and evaluate the use of appropriate legal solution in
comparison with alternative legal solutions
The appropriate legal solution provided to Uber problem hereby has some pros and cons. This
legal solution can be reviewed and evaluated by comparing with the other alternative legal
advice such as union work, citizens advice, and alternative dispute resolution.

Citizen network service is an independent charitable network of a local citizen. The service
provided by the community is free, independent, confidential and impartial. Uber can grab
solution form citizens advice service about what actually the customers wants from them. Union
work could also be another solution for the Uber problem but the appropriate solution was that
Uber has changed his rivalry from the contemporary taxi driving. Alternative dispute resolution
(ADR) refers to a variety of processes which help different parties resolve disputes without a
trial. Through ABTA arbitration scheme, t can be used to resolve alleged breaches of contract or
negligence between the ABTA members and the consumers (Anon, 2017). Minor illness can be
considered as arbitrator limiting to 1500 per person. The ABTA conciliation scheme for
disputes is related to personal injury and sickness. Here a third party, conciliator help both parties
to a dispute (Anon, 2017). These alternative dispute resolutions can be taken as a step to address
the Uber problem. But it is justified that Uber will be benefitted much from the appropriate legal
solution that has been described previously. With that solution, Uber may enjoy the tax law, taxi-
licensing law, employment law, health and safety law, contract law in an another way that
contemporary taxi-driver will not get through.

So, the appropriate legal solution is shown effective in the light of the comparison with the
alternative solution.

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Conclusion
Every country has its own legal system that the people, organization and other entity has to abide
by. Without a regulatory framework, any nation can run fluently. The handbook will help the
organization to understand the law and diagnose any legal problem in the light of legal aspect.
This will help the parties to get their due benefit out of the contract. There is various law, directly
and indirectly, affect the operation of a business enterprise such as company law, contract law,
tax law, environmental law, health and safety law and so on. A business enterprise should go
through this law and have a clear understanding of the legal aspects of any situation.

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Reference
1. Adams, A., 2016. Law for business students, Harlow: Pearson Education Limited.
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adr-scheme [Accessed 6 Jul. 2017].
3. Brooks, T. (2016). Ubers court case: what it means for drivers and the future of our
labour market. [online] We are Citizens Advice. Available at:
https://wearecitizensadvice.org.uk/ubers-court-case-what-it-means-for-drivers-and-the-
future-of-our-labour-market-ec8a8599e7ff [Accessed 6 Jul. 2017].
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