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Contents
P1 Explain different sources of law and laws that organizations must comply with..........................2
P2 Explain the role of government in law making and how statutory and common law is applied in the
justice courts.........................................................................................................................................2
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and developments.. .3
P3 Using specific examples illustrate how company, employment and contract law has a potential
impact upon business...........................................................................................................................3
M2 Differentiate and analyse the potential impacts of regulations, legislation and standards.........4
P4 Suggest appropriate legal solutions for a range of business problems e.g. termination of contract,
rescue from insolvency and liquidation...............................................................................................4
P5 Provide justifications for the use of appropriate legal solutions....................................................5
P6 Recommend legal solutions based upon a different country’s legal system and/or a different legal
framework. M4 Compare and contrast the effectiveness of these recommendations.......................6
References:...........................................................................................................................................7
P1 Explain different sources of law and laws that organizations must
comply with
In order to develop, organize and control the circumstances of society or government of a
country, there have to be some rules and regulations which is termed as law. Like UK
government follows the court law system. All of these laws are originated from some sources.
Sources of law refers the origin of the binding rules and regulations that comes to the existence
from the human act. There are numerous sources of law that organizations must comply with.
The sources are: Constitution, common law, legislatures, executives, judiciaries, international
organizations and administrative agencies. It is explained as follows-
Constitution is a major sources of law. It is formed with a specific written document which is
present in most of the countries of the world, but absent in the UK law. The UK law has
unwritten constitution which only holds the documents, statutes and traditional practices. But
still there is a practice of constitution regarding different levels of organizations from sovereign
states to different associated or unassociated companies. The modern written constitutions
delegate specific powers to the organizations to establish a law upon them.
There is another major source is that international organizations. The most acceptable
international organization is International Court of Justice (ICJ) which is the judicial branch of
UN. It is associated with different regional trade community and those community has a vast role
in business organizations. It facilitates cross-border movement of various goods and services and
promotes fair competition and enhances investment opportunities between the member countries.
The international law provided by the international organizations improve the better quality
performance of the business and organizations (Partington, 2013)
Legislatures create legislation law. Legislation include the act of parliament and they can make
different laws quickly which is an important source of laws today. Statutes or statutory law is
created through the legislation. Legislation is an important source by which a legislatures
prosecute the rules to narrate the organizations and various procedures of it.

P2 Explain the role of government in law making and how statutory and
common law is applied in the justice courts
UK parliament is the highest body of the legislative authority in the UK. The parliament is the
maker of the law of UK. It is mentionable that UK has no written constitution. It depends on the
parliament and court for the rules and regulations. Parliament composed of House of Commons
who are represented as the Member of Parliament and the House of Lords who are appointed by
the government.
Government introduce with an instructions draft consist of proposed law is known as a bill which
is made by the civil layers. The bills are of three types which are public bills, private bills and
private members bills. The bills are firstly read to the House of Commons. Then, a debate is held
on the main objectives and areas of the bill either the bill should proceed or not. Votes take place
if any changes or amendments needed or not on the proposed rules and regulations. Bill then
again represented to the House of Commons and House of Lords. More amendments are debated
there and again the house votes further for the issue. If the governments takes the majority with
the vote, the bill then passed by the support of the House of Lords. Once the bill is formally
passed by the Queen, it becomes the Act of parliament and the law of the land.
Statutory law or statute law is a formal written law which is adopted by the legislature. It is
handled outside of the court by the elected legislatures and an official legislation process. It is
codified in writing or published like Ohio Revised Code or the Code of Canon Law. It is applied
in the justice court when the court find the clearness of this law. Sometime they consider if the
law give meaning of the every word and sometime it rejects if the extra words doesn’t mean
anything. In criminal matters, if they find the obscurity and unconstitutional in other matters, it
can omit that part of the law or even they can throw out the entire law (French, Mayson and
Ryan, 2012)
The opposite of statutory law is common law, also known as case law. This law is based on the
judicial decisions rather than on written laws which is administered by the common-law courts of
England. It is a system which indicates that how the law should be applied in some cases statute.
It has no official legal code that can be applied to the cases.

M1 Evaluate the effectiveness of the legal system in terms of recent

reforms and developments
The legal system is a procedure by which the law is interpreted and enforced. The effectiveness
of the legal system in terms of recent reforms and developments are noticeable. The rules and
regulations are made for the betterment of the general people of a country so that they can lead
their life in a disciplined way. It examines and improves the real-life situations of the people and
helps to control over a biased and dishonest decisions. Each and every time people need to obey
the rules and regulations and the organizations or institutions should run their firm under
supervision of laws.
Due to the improvement of the international relation, the legal system should be reformed and
developed in a broader way. World are changing so fast. To cope up with the every situations of
the world, legal systems can be controlled by reforming it. Because, the legal system contribute
to the rapid growth of a community (Honeyball, 2012)
As an example, UK follows the common law as well as the EU legislation. But they decided to
come out from the EU after a long time. This is a very efficient process for them.

P3 Using specific examples illustrate how company, employment and

contract law has a potential impact upon business
Company law is that kind of law about how a company is formed and controlled through the
rules, regulations and legislation issues. Company law has a strong impact upon business
considering the two matters. One is as a legislation on wealth creation and another is as a pricing
mechanisms for the investors. As a legislation, the company is embodied with their own
obligations and own assets. This obligations compels the company’s wealth creation. Besides,
the pricing mechanism is the mechanism between the directors and shareholders about the
company laws and negotiations. For example, when a shareholder is concerned about the price
and get the favorable rights to influence the wealth creation of a company comparing with other
companies can be stated as connecting with the company law. Also, the company law provides
guidance and direction to every area of the business.
Employment law deals with the rights and responsibilities of the employer and employees. It is a
complex and fast changing law. The employment law has a huge impact on business which
covers four board area of the business namely discrimination, employee privacy, fair pay and
safety in the workplace. Minimum wages policy in UK influences much in the business. The
employees are provided minimum wages according to their skills and experiences due to the
employment law. There is no discrimination between the employees regarding color, race,
religion, origin etc. under the law. Also, enough support for health and safe environment are
provided for the further progress of the employees (Dignam, Mayson, Ryan, 2012)
Contract law is one of the most secure way to avoid fraudulent events for the company. It affects
the company because in every business market, goods and services are sold, purchased or resold.
For every transactions, a legal evident is needed which is a contract so that they are not cheated.
If other parties do any wrong, the lawsuit can be showed in the court and can be taken a legal
action against them through the contract law.

M2 Differentiate and analyze the potential impacts of regulations,

legislation and standards
Regulations is a managements complex systems that define two things; a procedure of governing
and enforcing legislations and containing rules in a written document. It comprises many forms
like contractual obligations, third-party regulation, certification, accreditation etc. It deals with
the crowded streets of the financial markets as a traffic officer. It has the ability to the function of
long term investment to pave the way of the citizens to meet their future financial needs as well.
Changes in interest rates dominated by government has also an impact on investment margin of
the business.
Legislation is the description of both abide by the legal requirements and of punishment of
ravishing the law. It is another term of statutory law that has been a process of law. It is needless
to say that every business targets to maximize their profits by choosing an area where they can
be profitable. But most of the time different laws doesn’t permit the company for the area or
investment. Political stability also encourage businesses. Thus business mostly affected by the
government policy and legislations.
Lastly, standards indicates the product performance or how to do a job properly by ensuring
quality, efficiency and safety. It is a repercussions of legislations and regulations issues. It is not
written by the governments but written by different organizations like CSA, ANSI etc. The
activities and qualities of the products and services are regulated by the companies for
maintaining the standardization and further progress. By combining with legislation and
regulations, standardization of a company performance is mostly sustained (Frank, 2018)

P4 Suggest appropriate legal solutions for a range of business problems

e.g. termination of contract, rescue from insolvency and liquidation
The business problems have some possible solutions which can be followed:
Termination of contract: There creates a good relationship between the employees and
employers. But if any unusual things happened like fraud, misrepresentations or mistakes,
then the company can terminate the contract for the good will of the company. The
possible solution of it is that the employees should be given enough time to control the
situation. Both the parties need to come up with a confidential solution and legally go
through it.
Rescue from insolvency: When a company faces financial distress and unable to pay the
bills, it creates insolvency problem regarding cash inflows and cash outflows. For aviding
such problem, intense negotiation should be dealt with the creditors. The management
should also focus on the debt collection. If they failed to do it, then they take legal
assistance.
Liquidation: Liquidation refers to an end of the business and the distribution of the
remaining amount among the company to the shareholders. If the shareholders do not
takes any step to place the company into liquidation, then it is wounded through the court
process. This is known as compulsory liquidation.

P5 Provide justifications for the use of appropriate legal solutions

A business is based on the legal system and when there creates a barriers in the legal system,
there also have some legal solutions as well. It is a challenge for a business to run it
appropriately by resolving the problems in a legal way. In this process, HM Revenue and
Customs (HMRC) play a vital role to supplementary guidance based on the law. It focuses on the
products, services, rules, policy, goals and objectives of a business (Angelien, 2015)
If it is a sole proprietorship business, then the owner should show the exact location and
purchasing products and services which they will provide to the customers. In addition, they
need to show the benefit of the community for the purpose of the business. In partnership
business, they have to follow the rules also. If it is a company running a partnership business,
then all the partner of the business need to invest for the same profit margin and should set up a
contract between them. If any of them do any wrong, then they can take the support of the legal
issue and compensation and can go to the court. Shareholders also looks for their return with the
interest within the time frame either it is a loss or gain in the business. They have also the rights
to go the court if the business fails to meet their commitment.

P6 Recommend legal solutions based upon a different country’s legal

system and/or a different legal framework. M4 Compare and contrast the
effectiveness of these recommendations
There are different legal system and different legal framework in different countries. The law has
been created to solve the various political, cultural, social or religious issues of a country. Legal
framework consist of the rules, rights and obligations of the country.
For example, Commonwealth countries like UK obey common law systems. There is flexibility
of English law for the changes of society and for interpreting the current legislation. Also their
legal system is adversarial. Their jury system also differs from the rest of the world. On the other
hand, European countries like France obey civil law systems, involve everything in written in
codes and statutes and originated from the Roman law. It is more stable codified legal system
that is so straightforward and even not so flexible.
Some country follows the religious law as their legal system. Some countries in the Middle East
like Iran governance is based on the Sharia Law. Men cannot have certain hair styles and women
are strictly prohibited to go outside without their proper dress code. Alcoholic beverages are also
banned (Rose, 2018)
There are different legal solutions which is taken based on the issues of cultural, political and
religious legal system of a country. Employees of an organization should be given their rights
and responsibilities through the labor union. It plays a significant role to give proper rights to the
employees in a business. In order to develop the business conditions, the management should
focus on the fair recruitment policy, zero discrimination policy, economic policy etc. All these
legal solutions can change the legal system even a bit.

References:
 ANDREWS, N. (2011) Contract Law. Cambridge: Cambridge University Press.
 DIGNAM, A. and LOWRY, J. (2012) Company Law. Oxford: Oxford University Press.
 FRENCH, D., MAYSON, S. and RYAN, C. (2012) Company Law. Oxford: Oxford
University Press.
 HONEYBALL, S. (2012) Employment Law. Oxford: Oxford University Press.
 PARTINGTON, M. (2013) Introduction to the English Legal System. Oxford: Oxford
University Press
 Frank, W (2018). The effects of Govt. Policies on Business
 Angelien, K (2015). The impact of regulations. Mckinsey & Company
 Rose, J (2018). 5 ways terminate contract. Chrone