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Business Law

Business law governs how businesses operate and interact with governments and citizens. It is important as it handles compensation concerns, protects shareholder rights, and determines how businesses can legally form. Business law establishes rules and guidelines for businesses in key areas like contracts, taxes, employment, and dispute resolution. The behavior of businesses and individuals is regulated by civil and criminal laws which have different purposes and applications.
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0% found this document useful (0 votes)
283 views13 pages

Business Law

Business law governs how businesses operate and interact with governments and citizens. It is important as it handles compensation concerns, protects shareholder rights, and determines how businesses can legally form. Business law establishes rules and guidelines for businesses in key areas like contracts, taxes, employment, and dispute resolution. The behavior of businesses and individuals is regulated by civil and criminal laws which have different purposes and applications.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Learner Name Zahira Banu Zafarullah

Learner Registration No.      


Study Centre Name Icon Training Centre
Qualification Title Business Management

Unit Reference No. K/650/1153

Unit Title Business Law for Managers

Submission Date      

Declaration of authenticity:
1. I declare that the attached submission is my own original work. No significant part of it has been
submitted for any other assignment and I have acknowledged in my notes and bibliography all written
and electronic sources used.
2. I acknowledge that my assignment will be subject to electronic scrutiny for academic honesty.
3. I understand that failure to meet these guidelines may instigate the centre’s malpractice procedures
and risk failure of the unit and / or qualification.

           
_________________ _________________
Learner signature Tutor signature
Date:       Date:      

1
Qualification Title Business Management Unit Title Business Law for Managers
Name of Assessor(s)
Name of Internal
Verifier (IQA)
If OTHM Assignment not used - Yes
Has assignment been approved by No Date of approval
OTHM?
Name of learners in IQA sample
Assessor decision IQA decision

Number of
learners in
cohort
IQA Comments on work of Assessors
Yes No Comments / Observations

Does the work meet all the assessment criteria?

Has the work been assessed accurately?


Is the feedback mapped to the assessment
criteria?
Has the tutor feedback highlighted opportunities
for learners to improve performance?
Is there a learner declaration of authenticity on
the learner work?
Do you agree with the final decision?

Action Points for Assessors (to include date for completion)

Assessor signature
Date

IQA signature
Date

Note: A separate form should be used for each qualification.

2
Assessment Marking Sheet
OTHM Level 5 Extended Diploma in Business Management (Qualification Number: 610/0335/9)

Business Law for Managers (K/650/1153)

(Please tick the appropriate Box)

Learner Name and OTHM Registration Number Pass Pass


Final Result
Zahira Banu Zafarullah Refer

Grading Criteria
Learning Outcome – Assessment Criterion – Pass/Refer Assessor Comments
The learner will: The learner can:
1. Know about generic 1.1 Explain why it is important to have business related
business law. laws.
1.2 Explain the principles of business law.
1.3 Differentiate between civil and criminal law.
2. Know about legal and 2.1 Explain what is meant by the term ‘legal system.’
justice systems in context. 2.2 Describe a legal system.
2.3 Explain what is meant by the term ‘justice system.’
2.4 Describe a justice system.
3. Know about key business- 3.1 Describe key features of consumer law.
related laws. 3.2 Describe key features of contract law.
3.3 Describe key features of law of tort.
3.4 Describe key features of international laws.
4. Know how laws impact on 4.1 Explain how businesses are legally formed.
businesses. 4.2 Describe the impact of key legislation on a business.
4.3 Explain why contractual obligations are important to a
business.
4.4 Explain how a business could resolve different legal
disputes.

Overall Assessor Comments

Assessor Signature _____________________________


Date __________________________

3
TABLE OF CONTENTS

Executive summary 5

Task 1

1.0 What is business law? 6


1.1 The importance of business-related laws6

1.2 Principles of Business laws 6

1.3 The difference between civil and criminal law 7

Task 2
2.0 What is the legal system? 8

Customary law…………………………………………………………………………………….......8-
9
2.1 What is the justice system……………………………………………………………………………...9
Criminal justice law……………………………………………………………………………………...9
Task 4
4.0 How businesses are legally formed……………………………………………………………...10-11
4.1 The impact of key legislation on a
business………………………………………………………...11
4.2 Why contractual obligations are important to a business………………………………………….11
4.3 How a business could resolve different legal disputes…………………………………………….12
Conclusion………………………………………………………………………………………………….12
References………………………………………………………………………………………………….13

TABLE OF FIGURES
Figure 1: Business Law……………………………………………………………………………………6
Figure 2: Criminal law vs civil law……………………………………………………………………….7
Figure 3: Customary law………………………………………………………………………………….8
Figure 4: Criminal justice law…………………………………………………………………………….9

TABLE OF TABLE
Table 1: Criminal Law vs Civil Law……………………………………………………………………….7

4
EXECUTIVE SUMMARY
An area of the law known as “business law” is concerned with defending freedoms and rights, upholding the
law, settling disputes, and creating guidelines for business concerns in their interactions with both the
government and private citizens. Business law is essential in governing how businesses operate in a nation.
Furthermore, business law determines the nature, scope, and content of legal conceptions by being
fundamental and unchangeable parts of them. The behavior of any person or organization that has the
potential to harm a third party or an individual is governed by a set of laws known as civil law. Criminal law
addresses conduct that might be considered offensive to the general public, society, or the country.

The legal system consists of regulations, practices, and organizations that permit legitimate public and
private undertakings. The concept of customary law that is being discussed refers to the laws, customs, and
practices of local communities and indigenous peoples. The justice system is a concept that applies to the
many organizations, establishments, and institutions that are charged with forcing or administering the law
and is typically structured to handle either criminal or civil law. Moreover, Criminal justice law is a
collection of public and private organizations set up to handle criminal suspects and offenders who have
been found guilty.

The legal structure a company chooses to operate under has an impact on how it organizes its resources and
assets. Entrepreneurial business entrepreneurs have access to a variety of legal business structures; sole
proprietorship, partnership, corporation, and LLC. Many pieces of legislation, including the following, will
have an impact on businesses: health & safety, employee legislation, environmental legislation, and taxes
and subsidies. The details of transactions, deals, or exchanges between two or more parties – who may be
people or businesses – are outlined in a contract, which is a legal agreement. Finally, businesses can resolve
their business disputes through mediation and arbitration.

5
TASK 1 OF 4

1.0 WHAT IS BUSINESS LAW?


An area of the law known as “business law” is concerned with defending
freedoms and rights, upholding the law, settling disputes, and creating
guidelines for business concerns in their interactions with both the
government and private citizens. Each state establishes its own set of rules
and laws for businesses.

Figure 1: Business Law

1.1 THE IMPORTANCE OF BUSINESS-RELATED LAWS


Business law is essential in governing how businesses operate in a nation.
o Compensation concerns: In order to manage a variety of compensation concerns in an organization,
business law is crucial.
o Protect shareholder rights: When it comes to defending the rights of a company’s shareholders,
business law is essential.
o Business formation: The law of business serves as the cornerstone for each enterprise. The process
of starting a business involves numerous legal procedures, leasing, and permits.
o Decrease chance of fraud: The likelihood of fraud is decreased by the existence of commercial laws.
These laws serve as safeguards by ensuring that the owner of the business, the employees, and the
consumers are informed of their rights as well as the rules and regulations.

1.2 THE PRINCIPAL OF BUSINESS LAW


Determines the nature, scope, and content of legal conceptions by being fundamental and unchangeable parts
of them (e.g., contracts are created only when an agreement is reached intending to be legally bound). Every
area of human life is impacted by the law. We must carry out numerous types of transactions in our daily
lives because we live in a society. Examining certain fundamental aspects of the laws and concepts relating
to business transactions is required in order to comprehend the legal implications of business activity.

1.3 DIFFERENCES BETWEEN CIVIL AND CRIMINAL LAW

6
Figure 2: Criminal law vs civil law

The behavior of any person or organization that has the potential to harm a third party or an individual is
governed by a set of laws known as civil law. Criminal law addresses conduct that might be considered
offensive to the general public, society, or the country. Examples include stealing, drunk, killing, assaulting,
etc. It is possible to differentiate between criminal and civil laws based on how each was established, how
decisions were made, and what the respective penalties were. What legal protection the accused in each of
them would have could be added as another foundation of distinction.

Criminal Law Civil Law

Offenses against society are dealt with by criminal General laws include civil laws, it settles conflicts
law. between two organizations or people.

The severity of the criminal law offenses would In civil law issues, compensation is given to the
determine the appropriate sentences. A fine also party who was wronged in order to resolve the
may be issued. conflict. In such circumstances, no such
punishment is meted out.

The accused is charged in a legal proceeding. The offender can be sued by the victim or party that
was wronged.
The court has the authority to penalize, imprison, or In certain situations, the court’s only option is to
release the offender in certain situations. award damages to the party that was wronged.
A complaint must be filed with the authorities. In a tribunal or in court, the person who feels
Who must then conduct an investigation before the wronged might bring a claim.
petition can be submitted immediately in court.
After that, a court lawsuit may be filed.

Table 1: Criminal Law vs Civil Law

TASK 2 OF 4

2.0 WHAT IS LEGAL SYSTEM?

The legal system consists of regulations, practices, and organizations that permit legitimate public
and private undertakings. To put it in another way is a system for applying and interpreting the law.
7
In numerous ways, it explains the rights and obligations. There are three main types of legal law in
the world; civil law, common law, customary law, and religious law. The alternative legal
framework includes: The legal system of a jury determines the facts in disputes in a lawsuit.

The majority of us recognize the value of the legal system in our society. We have a social
responsibility to the people in our community to establish a safe atmosphere where everyone can
feel comfortable going outside and treating one another equally. Although we observe these laws
and regulations every day, the criminal justice system is in charge of enforcing them. Whether we
choose to breach the law or abide by it is entirely up to each individual.

2.1 CUSTOMARY LAW


Figure 3: Customary law The concept of customary law that is being discussed refers to the
laws, customs, and practices of local communities and indigenous
peoples. By definition, indigenous peoples’ and small communities’
way of life and customs are inextricably linked to customary law. What
qualifies as “custom” and what constitutes “customary law” as such will
largely depend on how indigenous people and local communities themselves view these issues
and how they conduct themselves as such. “A law of behavior, binding on those within its reach,
establish by lengthy practices” is one definition of “custom.” While it may deviate from the common
law, a lawful custom must be of immemorial age, certain and reasonable, compulsory, and not
opposed to the statute law.

Certain aspects of customary law may be accepted differently in practice. Customary laws
enforcing an obligation of confidence may be effectively extended to prevent disclosure outside the
traditional circle. Customary laws governing the use of sacred symbols may be drawn upon as
factual context to reject the registration of the symbol as a trademark by a third party. For example,
customary laws concerning inheritance may directly determine ownership of IP or may evaluate
the very legal identity of a society as a right holder.

Whether particular customs have been perceived by indigenous people and local groups as having
legal force or if they just describe actual actions is a deciding factor in establishing whether they
qualify as laws. Similar reasoning holds true at the level of international law, where binding
customary law is created by the continued applications of customary patterns by governments that
likewise acknowledge their binding nature.

Disputes resolution, property tenure or other rights, inherited, family law, and political and social
ties, in general, can all be governed by customary law. Customary law is frequently defined as
being a component of the holistic worldview held by indigenous groups, implying that it can only be
fully comprehended and applied thoroughly inside the community itself. It is difficult to envision
how the entirety of a community’s customary law and customs could be made to apply fully to third
8
parties outside of that community and the typical reach of its customary jurisdiction.

2.2 JUSTICE SYSTEM

A concept that applies to the many organizations, establishments, and institutions that are charged
with forcing or administering the law is typically structured to handle either criminal or civil law. In
this definition, the justice system consists of “the institutions that are central to resolving conflicts
arising over the alleged violations of the rules that societies create to govern members’ behavior;
and that, as a result, is central to strengthening the normative framework (laws and rules) that
shapes public and private actions.” These guidelines for discouraging and punishing corrupt
behavior are part of this normative framework.

2.3 CRIMINAL JUSTICE LAW

Criminal justice law is a collection of public and private


Figure 4: organizations set up to handle criminal suspects and offenders
Criminal
justice who have been found guilty. The judiciary, law enforcement,
law forensic services, education, and corrections are the various
interconnected pillars that make up criminal justice law. The
justice system is the consequence of combining an individual’s right to due process with the
government’s obligation to uphold and safeguard that right. Without the unwavering devotion of
individuals working in criminal justice law, these fundamental rights can’t be granted and
safeguarded. As a result, these professionals must abide by the ethical standards of the criminal
justice law and display steadfast integrity in their behavior.

A complicated structure, criminal justice law is made up of four main parts, each of which has
unique and different subparts. These systems employ a wide range of criminal justice
professionals, including police officers, correctional officers, parole and probation officials, judges,
attorneys, paralegals, mental health specialists, and paraprofessionals. These professional
associations and the individuals that make up each of them have various viewpoints on criminal
conduct, punishment, and rehabilitation.

TASK 4 OF 4

4.0 HOW BUSINESSES ARE LEGALLY FORMED

The legal structure a company chooses to operate under has an impact on how it organizes its
resources and assets. Entrepreneurial business entrepreneurs have access to a variety of legal
9
business structures.

A business that has a single owner is known as a sole proprietorship. The


company and its owner are regarded as one and the same in legal terms. On
the positive side, this indicates that the owner owns all the profits (after taxes
are paid). The owner is liable for the company’s losses and obligations
personally, which is a drawback. This carries a significant risk. For instance,
a lone entrepreneur may discover that his personal assets are lost if he loses large litigation. Many
sole proprietorships lack workers and are typically tiny businesses.

Two or more partners share ownership of a business in partnership. The only


recipients of the company’s profits in a partnership are its partners, who also bear
the risk of any losses and debts. This is comparable to a sole proprietorship.
Partnerships may be particularly appealing if the expertise of each party
complements that of the others. In real terms, a partnership enables a person to
take time off without temporarily shutting down the business. A person who chooses to work in a
partnership rather than as a sole proprietor runs in danger of having their partner make poor
choices that end up costing a lot of money. Therefore, its crucial to build confidence and trust in
the relationship.

One significant distinction between a corporation and a sole proprietor or


partnership is that corporations involve a division of ownership and
administration. Corporations are governed by qualified executives and offer
publicly traded ownership shares on stock exchanges. It is possible for these
executives to own a sizeable percentage of the company’s shares, but it is
not required by law. How corporation handles profits and losses is one of their distinctive
characteristics. The owners of corporations (shareholders) don’t directly partake in earnings or
losses, unlike in sole proprietors and partnerships. In the event that a company’s leader chooses
to provide cash dividends to shareholders, shareholders can also profit from profits. Unfortunately,
both corporate profits and any dividend these revenues support are taxed, which is bad news for
shareholders.

Lastly, there is a limited liability company (LLC). An LLC is a type of business


entity that combines the characteristics of a corporation and a partnership.
Owners are not liable for the company’s debts, much like in a corporation. LLC
benefits from partnerships’ flexible management structures. An LLC must decide

10
whether to be taxed as a corporation, partnership, or sole proprietor for the purpose of federal
taxation.

4.1 THE IMPACT OF KEY LEGISLATION ON A BUSINESS

A business’s operations will be significantly impacted by legislation in a given area. The


regulations will alter a company’s operation, the product it offers, and tax obligation since it must
make sure it is operating within the bounds of the law of its nation. Many pieces of legislation,
including the following, will have an impact on businesses:

 Health and safety laws – when the workplace is hazardous, a company is responsible for
the safety of its employees.

 Employee legislation – Individuals will be entitled to minimum pay, capped working hours,
anti-discrimination protection, and equal opportunities.

 Environmental legislation – Government can put regulations on companies to make sure


they adhere to particular standards in order to protect the environment.

 Taxes and subsidies – If businesses don’t operate in a desirable way, the government may
levy taxes and fines against them.

4.2 WHY CONTRACTUAL OBLIGATIONS ARE IMPORTANT TO A BUSINESS?

The details of transactions, deals, or exchanges between two or more parties – who may be
people or businesses – are outlined in a contract, which is a legal agreement.

1. They serve as a written depiction of duties: Business contracts establish a trustworthy


written record of the commitments made in the transactions, such as completing a
project, meeting a deadline, or making a payment on a specified date.

2. They ideally aid in increasing revenue: A solid contract ensures that money will be paid
on a specified date, allowing businesses to plan cash flow and make informed decisions.

3. They reduce threats and prevent conflicts: The greatest approach to safeguard the
company from dangers like financial loss or legal problems is through a written contract.

4. They increase operational effectiveness: Because they specify exactly what both parties
are to do and when contracts increase efficiency.

5. They continue to work closely together and communicate frequently: Relationship both
inside and outside the company benefits from the collaborative aspect of the contract
process.

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4.1 HOW A BUSINESS COULD RESOLVE DIFFERENT LEGAL DISPUTES

 Mediation
A mediator is a third party who is given mutual instructions. Their job is to facilitate
conversation between the disputing parties in order to reach a compromise or resolution. The
mediator will openly address the issues and work to assist the parties in reaching a resolution,
but they often won't express their own judgments or assessments. A costs order is an
instruction given by the court or tribunal issues regarding the cost payment. The court may
mandate that one party pay all or part of the opposing party's claim by issuing a costs order.
(Brittontime, 2021)

 Arbitration

An impartial third person that the parties have chosen to mediate the conflict is called an
arbitrator. The arbitrator will be an expert in the subject matter of the dispute, such as civil
engineering. The arbitrator will hear from both parties before reaching a conclusion. In
arbitration, you might choose to have a panel of arbitrators instead of just one, who will be
chaired by another arbiter. When an arbitrator or arbitrators reach a final decision, the decision
becomes legally enforceable and can be enforced in court. (Brittontime, 2021)

CONCLUSION
Business law mainly focuses on legal norms and regulations implemented in international conventions and
agreements, contract law, civil law, criminal law, customary law, and the justice system. The parts that
make up a valid contract also contain characteristics that explicitly and implicitly refer to tortious
and contractual liability as well as negligence and its components.

REFERENCES
Task 1 of 4

12
Law, J. A. (2019, November 14). What is business law and why is it important? Johnston Thomas
Law. Johnston & Associates. Retrieved April 6, 2023, https://johnstonthomas.com/what-is-
business-law-and-why-is-it-important/#:~:text=Importance%20of%20Business
%20Law,compensation%20issues%20in%20an%20organization.

10, T. T. U. J. (2022, January 10). What is the difference between criminal law and civil law?
Jagranjosh.com. Retrieved April 6, 2023, from
https://www.jagranjosh.com/general-knowledge/what-is-the-difference-between-criminal-law-and-
civil-law-1625833594-1

Htun, N. T. (2016, April 28). Principles of Business Law. Academia.edu.


https://www.academia.edu/24837608/Principles_of_Business_Law

Task 2 of 4
What is the legal system? Alvendia, Kelly & Demarest. (2022, December 22). Retrieved April 6,
2023, from https://www.akdlawyers.com/what-is-the-legal-system/#:~:text=The%20legal
%20system%20includes%20rules,in%20a%20variety%20of%20ways.

Customary law, traditional knowledge and intellectual property ... - wipo. (n.d.). Retrieved April 6,
2023, from https://www.wipo.int/export/sites/www/tk/en/resources/pdf/overview_customary_law.pdf

Legal Information Institute. (n.d.). Justice system. Legal Information Institute. Retrieved April 6,
2023, from https://www.law.cornell.edu/wex/justice_system#:~:text=A%20phrase%20that
%20collectively%20describes,either%20civil%20or%20criminal%20law.

Criminal justice system. Criminal Justice System - an overview | ScienceDirect Topics. (n.d.).
Retrieved April 6, 2023, from https://www.sciencedirect.com/topics/psychology/criminal-justice-
system

Task 4 of 4
Ketchen, D., Short, J., Try, D., & Edwards, J. (2014, September 12). Legal forms of business.
Mastering Strategic Management 1st Canadian Edition. Retrieved April 6, 2023, from
https://opentextbc.ca/strategicmanagement/chapter/legal-forms-of-business/

Brearley, M. (2022, June 23). The impact of legislation on business. Online Learning College.
Retrieved April 6, 2023, from https://online-learning-college.com/knowledge-hub/gcses/gcse-
business-help/impact-legislation-business/#:~:text=Types%20of%20Legislation,-Legislation%20in
%20an&text=Since%20a%20company%20has%20to,money%20it%20pays%20in%20taxes.

Svitlanaomelia. (2023, March 21). 10 main reasons on why contracts are important to businesses.
Blog. Retrieved April 6, 2023, from https://www.pandadoc.com/blog/why-contracts-are-important/

Murray, P., 2022. What are the four types of alternative dispute resolution (ADR)? Britton & Time
Solicitors. Available at: https://brittontime.com/2021/02/05/what-are-the-four-types-of-alternative-
dispute-resolution-adr/

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