Report on Business Law

Introduction of Business Law

The business report based on different law rules is much helpful to many of the new corporations based on their law and which they are supposed to follow. This report is done in several parts. In one part there are explanations of the nature of legal systems that are implemented in UK. LLP is one of the most reputed law firm which is responsible for providing high quality legal advice which is tailored to business as well as the individuals in it. I have a post of Paralegal and my senior partner MR. Tom is going to have a meeting with Mohammad who is from Omar. He is totally unaware of the English Legal Systems and wants to know as much as possible about the information and knowledge that how the legal system of UK works as he is planning to extend his business. The other part contains the potential impact of the law on business.

LO1: EXPLAIN THE BASIC NATURE OF THE LEGAL SYSTEM.

If we talk about the different sources of law that are being used or enforced in UK, there number is four. UK consists of four different countries and their names are Scotland, England, Northern Ireland and last one is Wales. In all these nations, laws which are being applies are almost same throughout the whole United Kingdom apart from few ones which are mostly enforces in a nation or more than it maybe two.  

Foundations of United Kingdom law:

List of four different basis. Those are

1.         Legislation

2.         The common law

3.         The EU law

4.         ECHR

Legislation of Business Law

This is the law which is being made by a Legislature. Different acts of the Parliament is considered to be the most important piece and their base depends on the Legislature. Among all of them, main Legislature is the Parliament of UK which is made or build in a city called London. Legislation is the only body that has the ability of passing the power that can be applied I all of the four different countries (William Eskridge Jr, 2007).

There are two types of houses involves in the legislation. They are the House of the Common along with the House of the Lords (Norton, 2013).

There are individual power to pass any law to the other members of the parliament also with the Britain. All of these lawmaking have their own website.

All these Legislation or Lawmaking are divided into two separate parts. One is primary and the second one is secondary legislation.

•           Primary legislation

•           Secondary legislation

Primary Legislation is a parliament that have a complete right of issuing a secondary legislation.

The secondary legislation made by the legislatures of primary legislation consultant.

Common law & Business Law

Common laws are being used by the Judicial Judgement. In case of terms common laws are used also. Common laws are also called case law. The common laws include the laws of criminal, the laws of contract, the tort law and the different conditions of intervention.

The common law contains legal preference and judicial judgements.

Common law is a kind of law that seems exactly like the civil laws but individual sources are the main difference of it. Also the civil law repeatedly updating the different processes only due to the changing nature.

EU law of Business Law

The law of European Union (EU) can be seem puzzling and impervious. However, the legal structure of the EU is alike to a certain degree to that of the United States. Although the parallels, there are significant changes, too. This broad resource will help lawyers understand, European Union business law. Exceptional in scope and depth, this guide consist of references to all of the important decisions of the European courts. It is satisfactorily comprehensive and critical to serve as a beneficial research instrument for those seeking to understand a specific area of the speedily increasing world of EU business law (Fiebig, 2016).

Whenever the UK law and the EU law conflicts with the other the EU law take priorities. As the United Kingdom is an associate of the EU which means the European law has priority over the law that runs in the UK.

ECHR of Business Law

ECHR is abbreviated as the European convention on the human rights. To become a member of the EU, UK is also a participant of the ECHR.

The Agreement established the European Court of Human Rights (ECHR). If any person who feels his or her civil constitutional rights dishonored by a governmental person or organization he or she can put a case to the Court. Decisions finding damages are required on the States concerned and they are indebted to perform them. The Board of Ministers of the Council of Europe monitors the carrying out of judgements, particularly to guarantee payment of the amounts granted by the Court to the applicants in return for the harm they have sustained (Letsas, 2009).

LO2: ILLUSTRATE THE POTENTIAL EFFECT OF LAW ON BUSINESS:

There are different business rules which have been made according to the law in order to understand that what is expected in the form of personal capacities. Rules of laws are not just made for the business and how it should be expanded but they are available for every particular field. Starting from an ordinary job to the individual working as a lecturer or teacher. Every country have their own laws and these laws have been set according to the people living in that country. Same is the case with UK, they have made some important law rules which are necessary for everyone to implement them.  

Laws are made for the ease and betterment of the individuals no matter in what kind of field they are working, whether it’s a job or a business. As Mr. Muhammad wants to expand his business in UK and he must be aware of each and every point related to the law that how it works and what kind of different potential impacts of the law on business can be.

Every single company has to follow a law. There is a guideline for them to follow. This law is called the corporate law. Corporate law is also called by company law. The company law is made for the company to follow some guideline. In this guidelines has the rights of the governing body, relation with the employee, what conduct to maintain for persons, institutions, companies as well as the business (y Kenneth W. Clarkson, 2010).

There are two divisions of corporate law

1.         Corporate governance

2.         Corporate finance

Corporate governance is predominantly about the command relations among a corporation's senior administrators, the board of directors and the list of people who select them. It is also influenced by a lot of stakeholders.

The exact area of finance that discuss about the economic decisions about the company or business is called corporate finance (Vishwanath, 2007).

It includes these conclusions

•           Investment or capital budgeting decisions

•           Financing decisions

•           Operations based on regular days

Contract law of Employee:  The relationship between the employee and the employer is the contract of the employee. This contract is based on the employment relationship. Contracts are extra widespread than offer letters. Typically consist of information such as payment, benefits, responsibilities, and conditions under which a member of staff can be terminated. Mr. Muhammad should know about the rights of employee as well while expanding his business because every employee have different laws in different countries and they need to be fulfilled accordingly. But if Mr. Muhammad is thinking about the expatriates he should give them training.

Expatriates are also the most important people in running any company or business. As much as the company spends expenditures on the training the chances are much higher that they will be committed to their particular post or work

Pre-departure training is that which helps the expatriates as well as family to adapt in a better way after moving from one environment to the other. Training must have knowledge related to the host country, as Mr. Muhammad is planning to expand his business in UK he for sure tell his staff about UK. How people live there, what different events they have, their language, cultural, about politics as well as different kind of legal aspects and its business practices that how they should be implemented. As long as the project is, training should be placed according to it for making this sure executives are well prepared.  

Employees are the most important people to the business as they affect the business directly through profitability as well as productivity. Company or companies who sacrifices the morale of an employee just to cater to shareholders have chances to find themselves with an unmotivated kind of workforce. Those employees who lack motivation are considered zero for a company and they do not benefit an organization in any way. Employers should take interest in satisfying their employees. There is no doubt in it that only when employees are happy then an organizations experience an increase in productivity and profit as well. For all this to work out properly, the management and leadership skills of a company play an important role in the satisfaction and happiness of the employees.

All business owners need capable and hardworking employees because they are the ones behind the success of any company and same is the case with Mr. Muhammad, he should treat his employees well to make his company work successfully in UK. Well, employees do play an important role in the development and success of any company and they are also considered to be the backbone of the company so they must be treated according to the hard work they do. They should be encouraged by appreciating them because everyone in this world likes to be appreciated and this gives them confidence for the future time

The employee contract can be written. But there is no rules it need to be written. It mainly includes the rights of the employee. Such as

         The statement which shows the contract with employee

         Amount of pension which every person gets after retirement

         Notice related to Dismissal (need to be fair)

         Minimum wages

         Notice relates to the sick leaves

         Precautions based on safety and health issues

         Trade union

         Breaks

         Different policies for leave

An employer need to give a contract to the employee within the stating of the job or within the time period of two months. A good contract helps the employee to understand what he or she have to do and what his or her responsibilities. Thus the employee what is expected for him or her (Katherine V.W. Stone, n.d.).

Different rules based on the law helps in the providing of direction and guidance in almost every area of the business. As an example, it becomes a source to provide a means to bring up a complaint against any other party to the decision maker who is neutral so that any kind of decision that is being regarding the dispute. Due to the rule of law system, business and employer or employees all of them can file up the complaint in a well-mannered way in recognized court to commence the process of legislation. Apart from this, different parties in the arguments can also try different kind of method for the dispute determination if they find themselves feeling not comfortable enough or want to get involved in any type of the legislation. All of us are well aware that they are allowed to do such things rules of law system allows them and will definitely support them in this all, resolutions can also be made when they institute such proceeding.

In business, the legal system is referring to a specific process that is involved in enforcing the law. Moreover, it is also elaborating the rights and responsibilities of the business in different ways. There are three main legal systems that are present in business

·         Civil lawsuits

·         Criminal law

·         Theocratic law

All of these laws are extremely important for the legal system in the business. From them, a civil lawsuit is one of the most common law in the legal system of the business. This law is related to the organizations that are involved in damaging the property of the other business. The loss can be considered as financial loss. Due to this, the other company has to pay all amount of their loss. 

On the other hand, the plaintiffs are able to ask for injunctive relief. This is the request from the court about their loss. This can be explained with the help of an example. This case is regarding the global company named as British petroleum. This company was responsible for the damage that is about 4.9 million crude oil leaked. Furthermore, it is also not the American based company but they sued in that country. The reason was that due to this incident America was affected badly.

It can be noted that criminal lawsuits are extremely rare in that country. This law is related to the firms that are involved in any criminal activity. This means that if there is any civil violation in any business then it will be considered as criminal activity. This can be explained with the help of an example. In 2012, a ship was aground due to the gross negligence of the captain. Due to his negligence, there are about 33 people were dead in the ship. Then after this, the criminal law is applied for him (Vishwanath, 2007).

 Conclusion of Business Law

There are different business rules which have been made according to the law in order to understand that what is expected in the form of personal capacities. Rules of laws are not just made for the business and how it should be expanded but they are available for every particular field. Starting from an ordinary job to the individual working as a lecturer or teacher. Every country have their own laws and these laws have been set according to the people living in that country. Same is the case with UK, they have made some important law rules which are necessary for everyone to implement them. 

Law is created to keep the associated things in a discipline also in order. Business law is also created for to keep the business in order. Therefore there are rules to do business. If any of the rules are not maintained the business can be called illegal. Laws are created to follow and the government of a country or the legal authority of a country are there for those have violated the law. Business law is the law that a company should follow. Whenever the law is not maintained the case law is introduced and start its work. If the authority do not maintain the law the stakeholders face problems for this. That’s why every company and organization should follow the law. Mr. Muhammad have to understand every rules associated with the business, only then it will be easy for him to understand the terms associated with the business and can apply them accordingly. It will be easy for him to work with the other companies in UK as well.

 References of Business Law:

·         William Eskridge Jr, P. F. E. G., 2007. Legislation and Statutory Interpretation, (Concepts and Insights). 2nd ed. s.l.:Foundation Press.

·         Norton, P., 2013. Parliament in British Politics (Contemporary Political Studies). 2nd ed. s.l.:Palgrave Macmillan.

·         Fiebig, A., 2016. EU Business Law. 2nd ed. s.l.:American Bar Association.

·         Letsas, G., 2009. A Theory of Interpretation of the European Convention on Human Rights. 1st ed. s.l.:Oxford University Press.

·         Vishwanath, S. R., 2007. Corporate Finance: Theory and Practice. 2nd ed. Thousand Oaks: Response Books.

·         y Kenneth W. Clarkson, R. L. M. F. B. C., 2010. Business Law: Text and Cases: Legal, Ethical, Global, and Corporate Environment. 12th ed. s.l.:Cenage Learning.

·         Katherine V.W. Stone, H. A., n.d. Rethinking Workplace Regulation: Beyond the Standard Contract of Employment. 1st ed. New York: Russell Sage Foundation.