Business Law

Law and the Legal System - Legal

solutions to business matters

Tutor’s name : Ngo Kim Hoang Nguyen

Student’s name : Nguyen Duc Vinh Hoan

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 Table of contents
Introduction…………………………………………………………..3
LO1 Explain the basic nature of the legal system
I. Explain the sources of law of England……………………………….4
II. Define the history and characteristics of Common law and explain the
difference between Common law and equity………………………..5
III. Explain the role of government in law making and how statutory and
common law is applied in the justice courts………………………….6
LO2 Illustrate the potential impact of the law on a business
I. The different types of business entities in England…………………….8
II. Compare the advantages and disadvantages of each of
them……….10
LO3 Suggest appropriate legal solutions to business problems
I. What is the transfer of property in the goods………………………….11
II. Explain the manufacturer’s liability in
contract………………………...12
LO4 Recommend appropriate legal solutions based upon
alternative legal advice provided
I. The different type of methods of dispute settlement…………………14
II. The effect of dispute settlement on the business ……………………15
III. Recommend a certain article on governing laws and dispute
settlement that you think the best for your customer’s situation…….16
Conclusion…………………………………………………………....18
References……………………………………………………………19

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 INTRODUCTION
In today's world business, every area of life plays a vital part. In the world today,
companies have to function under the limitations of legislation and government control.
Business companies which do not comply with the law are exposed to fines, penalties
and repercussions. Laws isn’t just to protect consumers but also to maintain competition
so legislation has been established. Therefore, it is highly necessary to know business
laws to run a firm. This research is to study how corporate law will enhance or influence
our daily activities.

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LO1: Explain the basic nature of the legal system
I. Explain the sources of law of England
 Legislation, case (common) law, human rights law, and EU law are also the four
major methods in which English law is developed. A fifth remaining approach is
through custom. However, this is rarely mentioned since custom has been
substantially absorbed into case law and legislation. With the exception of EU
legislation, which is mentioned later, Parliament is recognized as the highest law-
making power. Legislation enacted by Parliament begins with a Bill. Government
MPs introduce public bills that impact the broader people.

 The law enacted originates from organizations or people authorized to enact laws
by Parliament. The transferred law must emanate from a parent or enabling
legislation, and be compatible with it. An example is the Westminster Parliament's
Scotland Act 1998, which created the Scottish Parliament with legislative powers,
amongst other things, in the fields of health, education, crime and civil law.
Accordingly, the Scotland Act allows the laws made by the Scottish Parliament.

 Common law or jurisdiction is also an important component of the legislative

process. Jurisdictions can establish legislation by way of interpretation of statutes.
If Parliament creates legislation, they must cover a range of conditions. This does
not make the legislation particular and clarification must be used in court settings.
Consequently, the courts are trying to understand Parliament's will. The courts
also correct misunderstandings or mistakes in formulating the Statute.

 The interpretation of the court of the legislation is binding under the legal
precedent system. The principles of coherence and accuracy of choices as well
as measure of predictability in the results of cases in future cases are observed in
decided instances. In future cases. There are also efficiencies in citing instances
to argue and flexibility in the "legal evolution" rather than re-argument. Adherence
is referred to as stare decision and by appeal courts binding all subordinate
courts. The court of appeal are likewise constrained by its own

 Finally, while jurisprudence, EU law and human rights law have a significant
impact on the formulation of law, it is evident that legislation remains a major
source of legislation. Written legislation established by Parliament and by
legislation that has been transferred can overrule the case law and not the other
way round. Similarly, case law under human rights law and EU law should first be
passed by Parliament to take these decisions into account and be made part of
domestic law (part of the EU Directives). Legislation may also much faster reflect
changes in societies and remain the most important source of law for these
reasons.

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II. Define the history and characteristics of Common law and
explain the difference between Common law and equity
1. The history and characteristic of Common Law
 Common law is established in English history for hundreds of years. It highlights
the significance of the judge in the progressive evolution of the law and the
concept that law is distilled and the legal doctrine is continually reiterated by the
court judgment. Predominant law in this sense stands against the civil law
system that is currently common in mainland Europe and abroad. In another
smaller and meaningful sense, common law contradicts the norms applicable in
English and American equity courts as well as in law.

 Common law stands out as representing the law of the courts as represented in
court decisions. In contrast to the civil law based on system, which is based on
legislation and language, the reasons for determining cases are set in
precedents supplied by prior rulings. Other features of the common law are not
only judicial precedence but also the jury trial and law supremacy theory. The
supremacy of legislation once meant that not even the King is above the law; it
now implies, in typical judicial processes, that activities by governmental bodies
are subject to review. When the judge presented precedents apply to a case,
may significantly influence the criteria that the jury used to explain a case.
Historically, the Common Law tradition has led to the deprivation of rights of
some groups of people unjustly. Whether outdated precedents, the decisions of
the past continue to shape future decisions until the change of society promote
judicial body overturned precedent

2. Explain the difference between Common law and equity

Common Law Equity

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- Common laws are laws which were enacted on - Equity is a branch of law which, after all parts of
the basis of court decisions. These statutes are punishment, decides on punishment based on justice
based on decisions issued in prior court cases. and fairness, including the reasoning behind the
Also called as case law or precedent are common accused.
legislation. Equity was designed as an addition to
the stringent regulations that may impose - Equity is a system that provides rulings after
excessively harsh penalties. considering every aspect of the case.

- The common law system is a system of law - Equity is a field of law that has been formed as an
composed upon decisions taken in past instances. addition to stringent legislation that may result in
excessively severe penalties. Equity is a law that,
- Common laws are laws enacted on the basis of when examined under all elements of penalty,
judicial decisions. These statutes are based on decides on punishment based on justice and fairness,
decisions issued in prior court cases. including the grounds for the accused

III. Explain the role of government in law making and how

statutory and common law is applied in the justice courts.
1. The role of government in law making
 The world of business is highly difficult and convoluted so it is vital to understand
about corporate law to be fully preparing and operate a corporation appropriately.
As an autonomous national who knows the law and regulations, the obligations
of individuals are a responsible citizen. The article focuses on the debate on the
role of government in law, which makes business law easy to grasp through
examples. The several branches of government and legislative systems have a
vital role in lawmaking:

A. Stage One – The governing party offers vision, objectives and direction

 The ruling party makes policy on the basis of debate and discussion
during major conferences. Specific questions are considered at these
conferences and the party decides on the overarching vision,
objectives and direction of this problem.

B. Stage two – Ministers draws up policy on an issue

 Stage two is held on the national level in which the governing party is
seeking to translate the official policy or law of the government into the
Constitution. Government ministers are trying to draft new policies and
legislation to allow the programs to be legally implemented. However, it
is a long and slow process, as numerous parties discuss and negotiate
the proposed ruling party law (Macintyre, 2018). In the meantime,
drafts will be offered and debated by ruling party in the parliament.

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 C. Stage three – Finalizing a policy

 The questions and choices are developed in a final policy released as

a White Paper after all the debate at the time the policy will be
completed by the relevant Department and Ministry. The White Paper
deals with the declaration of purpose and a thorough policy strategy.
The debate and adoption are also discussed and authorized by
Members of the Cabinet once the debate is over (Macintyre, 2018).

D. Stage four – Passing a law

 A White Paper is considered as the basis of legislation. The
Department or the ministers can decide on the new law to achieve its
objectives and implement it to work on drafting the new law. In its early
stages before becoming a new law it is referred as a draft Bill.
E. Stage five – Subordinate legislation and implementing the law and
policy

 It will be released when a legislation has been passed by the National

Parliament. Therefore, the national and provincial ministries are
accountable everywhere for implementing the legislation. Subordinate
laws will be passed by national, provincial and municipal governments
under the new original law.

2. How statutory and common law is applied in the justice

courts.
A. Statutory
 The phrase statutory law, generally adopted by a legislative body, used to define
written laws. Statutory legislation varies from legislation adopted by executive
bodies to the legislation generated by previous court decisions or the law
established by common law.

 In general, statutory laws are interpreted exclusively by courts, as opposed to

common law, which is susceptible to interpretation by court in its implementation.
Strict building indicates that judges cannot read between a statute's ties in order
to liberalize their application. Instead, they are bound by their specific terms.

 Statutory legislation follows the usual legislative procedure as legislative acts. A

bill is put forth and voted on in the parliamentary term. It goes to the
management branch if authorized (either a governor at the state level or the
president at the federal level). If the managing director signs the bill it is enacted
in the law. If the management fails to sign or refuses to, the law may be vetoed

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 and returned to the parliament. In most cases, if the law passes the bill again by
a certain margin it becomes a law.

 Statutes should also be written and publicized or codified. Legislative legislation

is generally enacted on a date set forth in the bill. A later legislative act can
reversal the statutes, or a court of competent authority may find them
unconstitutional.

B. Common law
 In fact, the law common to judges sitting at the court constitutes a legal
precedent. The common law continuously changes, contrary to statutory
requirements established in the Acts of Parliament. This is because the judges
interpret the law fluently utilizing their knowledge of legal precedent and common
sense and relate the circumstances of the case to those preceding judgements.
In giving written judgements on the matters before them, the judges construct a
common law. For instance, the Magistrates' Courts throughout England and
Wales might make a major change in local and regional customs and follow their
own precedent which would lead locally to local regimes being hardly
recognizable.

 Judges of the common law depend instead on abstract norms and texts to help
them in the application of the law in decisions taken by their predecessors of real
conflicts. In the legal reports, which include decisions from prior conflicts,
common-law courts discover grounds for their conclusions. Under STARE
DECISIS, common law courts are obligated, if the circumstances are essentially
the same, to adhere to previously decided judgments or precedents. For identical
matters resolved by the same or lower courts in the same jurisdiction, a court
judgment is binding. The judgement is not binding in this jurisdiction or in other
jurisdictions on higher class courts.

LO2 Illustrate the potential impact of the law on a business

I. The different types of business entities in England
 There are types of companies in the UK: public limited company (PLC); private
company limited by shares (LTD); company limited by guarantee; unlimited
company (UNLTD); Limited Liability Partnership (LLP)

1. Public limited company ( PLC )

 A corporation is a public firm with public ownership. Everyone can purchase
shares in stocks of the firm. A limitable company is a business in which the
financial obligation of a person for the firm is limited to a specific sum — the

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 value of the investment is generally the same. A PLC is a mixture of these two
notions, a public corporation whose shareholders are liable for the financial
liabilities of the business (who may potentially become anybody) as far as their
investment is concerned. Another essential issue is that it has to have shares of
at least £50,000 before a PLC may start its operations.

2. Private Limited Company (LTD)

 Unlike a public undertaking, there is no private undertaking held by any public
member. Instead, it belongs to an NGO or a limited number of shareholders and
is managed privately in the sales of the corporate shares. These businesses, like
PLCs, are nonetheless restricted and have the same consequences for private
firms as for a public enterprise. Again, only in the amount that they invested in
the firm would an individual be accountable for the financial responsibilities of the
firm. Private limited businesses are one of the most frequent business kinds.

3. Company limited by guarantee

 A guaranteed corporation is substantially different from two prior limited business
kinds. Here, persons will not be liable for a predetermined amount depending on
their investment because the status of such business is reserved for firms who
have no shareholders such as smaller, non-profit organizations. In the event of
such an occurrence, instead of shareholders, these businesses normally have a
group of members acting as guarantors who agree to make a minimal
contribution to the closing of the firm. In accordance with UK legislation, such
firms should contain 'Limited,' for instance for businesses who do not distribute
their earnings to its members, although, exceptions may be granted.

4. Sole traders
 This is the easiest and simplest way of registering business. If you start working
for yourself and you have to register the firm with HMRC, you are an autonomous
sole trader. The company is operated by you as a sole trader. You therefore
have the right, but will be accountable by filling out the Self-Assessment Tax
Return, to keep all gains as incomes. No max amount may be earned, although
the higher tax rates can be less tax efficient. All obligations, including personal
properties and common property owned by other persons, shall be your
responsibility.

5. Limited liability partnership (LLP)

 LLPs are not considered legally as partnerships in the United Kingdom, instead,
they are considered as constituent entities which are more comparable to the
other forms of business examined in this post. For a company to be an LLP,

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 everyone of the partners must have limited liabilities, which implies, instead of
being collectively liable for any wrongdoing or carelessness (which is the more
traditional partnership model). Another important aspect of the LLP is that the
partners are permitted directly to run the company, unlike other companies. The
shareholders shall vote on a Board of Directors of other forms of business, and
the Board appoints other persons to administer the firm.

6. Partnership

 A number of persons sign a partnership agreement in a partnership to determine

how ownership, earnings, and obligations of the company are split between them
and how partners can depart. A single trader organization is identical to a
partnership, except that at least two of you are present. The number of partners
has no legal restriction, however very big partnerships might be more risky to
handle. Each partner registers as an autonomous worker and produces its own
tax return. You are identical to the one dealer's tax and NI responsibilities.

II. Compare the advantages and disadvantages of each of

them.
 The UK provides a number of various types and benefits of business structures,
which make them more or less appropriate for a firm type. The United Kingdom
has numerous kinds of structures. If you're keen to establish a UK company, the
ideal way is to work with a company that can help you choose the appropriate
structure for your business goals. You are completely prepared to make the
proper option by using a business that can give great guidance and great
courses. While this is the case, the most prevalent types of buildings with many
of their advantages and disadvantages are here:

Advantages Disadvantages

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 Your funds are independent. This lowers One disadvantage is that there is
your personal exposure to financial risk, significantly more administration with a
so if the company fails (or is prosecuted) limited business. You undoubtedly
you are solely responsible for the value of require a secretary of a corporation and
Public Limited your stake in your company. Corporate most likely also an accountant. You are
Company taxes are paid by firms for their earnings responsible for the payment of workers
at 19 per cent. This can be far more tax revenue tax and NI tax. You must
effective than paying income tax, submit a yearly business tax return and
particularly for people with higher tax comprehensive statutory accounts to
rates. HMRC.

In private limited companies there is a Restricts the capacity of the articles to

limited danger of personal assets. There transfer the shares. In any event, the
Private limited would be limited liability for members in number of members cannot exceed 200
company the Private Limited Company. Another in a private limited corporation. The
individual can transfer the shares of a private limited company's other
limited business to any other person by a drawback is that they cannot provide
shareholder. The transfer is the public prospectus. Shares cannot be
straightforward compared to the transfer quoted in the stock exchange.
of interest as a private company or
partnership in the business
It's a private limited company that does In respect to the meetings of members,
not have shareholders, therefore it's good etc., there are certain legislative
for volunteer organizations. Members obligations. For individuals
Company limited by agree, if the business is liquidated, to pay contemplating joining as members or
guarantee a predetermined amount known as a standing for election to the board of
guarantee (typically £1) to the debts of directors, a corporate structure might be
the firm. The business is a distinct legal more daunting. The cost to be set up
entity, independent of the humans may be more than that of a voluntary
participating in it – and is entitled to own organization or trust. In particular, if an
the property in its own name and to external secretary of company exists
engage into leases and other and/or a formal audit is necessary,
arrangements. yearly expenditures may be more.
As a sole trader you do not pay The biggest downside is, you are not
registration costs, you do not have much legally separate from your business and
bureaucracy and are fully in charge of personal funds. If you have debts or are
Sole traders business choices. You can also keep all sued, your personal property might
the business profits after tax. meet any obligation. This puts you at
greater risk than other corporate forms
and may not be suited for a high-cost
company.

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 Each LLP partner registers as a self- An LLP has a similar administrative load
employed and produces a separate tax to that of a limited company, such that
Limited liability return, just like an ordinary partnership. an accountant and corporate secretary
partnership (LLP) But if the firm collapses, every partner is may be desired (though not required by
simply responsible for its share's face law).
value.

The partners fund the firm with start-up Any partners share responsibility for all
cash, given the nature of the firm. The company debts in a partnership. For
more partners, the more money they can example, if a partner is successfully
Partnership spend on the company. The duty for sued, the damages must be shared by
operating the firm might be shared by all the partners. The earnings are
partners. This will enable them to use shared evenly among partners.
their skills. Incoherence can result in one or more
partners making no equal contribution to
operating or managing the company but
yet enjoying benefits. The result is not
consistent.

LO3 Suggest appropriate legal solutions to business

problems
I. What is the transfer of property in the goods?
 The property of the products should, if the seller obtains the proprietary rights
and the associated duties, be passed from the seller to the buyer. 'goods
property' denotes the ownership of items, but is different to 'goods property'
meaning the actual custody or control of the goods.

 It is the core of a selling contract to transfer the property on the items from the
vendor to the buyer. Therefore, for the following reasons, the time the property
moves from the seller to the purchaser is significant:

 Ownership — The seller stops being its owner and the buyer obtains the
ownership when the property in things passes. The buyer is entitled to
exercise the right to own the goods. For example, if the vendor has re-sold
the items, the buyer may sue the seller for non-delivery, etc.

 Ownership of the risk — The usual norm is that, whether the delivery was
made or not, the risk accompanies ownership. In case of damages or
damage to the goods, the loss should be paid at the time of damages or

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 destruction by the person who owned the products. The individual who
owns the property is therefore prima facie at danger of losing.

 Action against other parties — If the products are damaged or destroyed in

any manner by other parties' actions, the only method that action against
them is the owner of the goods.

 Price suit - unless otherwise negotiated, the seller may only sue the buyer if
the gods are made the purchaser's property.

 Insolvency - In the event of insolvency of either the seller or the buyer, the
question whether the goods can be taken over by the Official Receiver or
Assignee, will depend on whether the property in goods is with the party
who has become insolvent.

 Essentials for Transfer of Property -- The two essential requirements for transfer of
property in the goods are:

 Goods must be ascertained: Unless the goods (or the property included
therein) are ascertained, they (or the property contained therein) cannot
transfer from the seller to the buyer. Thus, in the case of a contract for the
sale of unascertained commodities, no property in the items passes to the
buyer unless and until the things are ascertained.

 PASS intention There must be property in goods: The property is passed

to the buyer when the parties to the contract intend it should be
considered to respect the provisions of the Treaty, the behavior of the
parties and the circumstances of the case in relation to a sale of specified
goods or ascertained goods.

II. Explain the manufacturer’s liability in contract.

 Liability of the manufacturer, legal notion or theory held responsible or liable to
manufacturers or sellers for the harm caused by defective goods supplied on the
market. The responsibility of the manufacturer is generally established on three
factors:

 Failing to make reasonable efforts to prevent flaws in the product resulting

from the fabrication process or failure to offer customers enough advice on
a hazard associated with the use of a produced product.

 Infringement of the guarantee, which implies that a claim or promise on

quality or performance of a certain product is not complied with.

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  Strict responsibility in respect of a faulty product in which a seller or
producer is accountable, even though the terms of negligence or breach of
guarantee do not apply. Increasing acceptance in courts of arguments
based on the manufacturer's culpability is ascribed to an active
consumerism movement.

 You have statutory protection under the Consumer Rights Act 2015 when you buy
products or services from a company (CRA). The CRA indicates numerous terms
and conditions in the Contract, including the fitness and the quality of the products
or services. Where either such implicit obligations or other contractual terms is
violated because the contract provides a defective or incorrect goods or service, the
buyer might claim infringement.

 Any harm caused by the faulty goods and the right to refuse will be reimbursed as
the extent of the contractual obligation of the other party. However, only a claim
may be filed against a party to the contract - normally the store - for a violation of
contract. This is the legal principle of 'contractual privacy,' meaning that
infringement of contractual claims may only be asserted against a person or
organization who was a contract partner. A faulty product maker is thus not
responsible under the typical contract standards for defective items. However, third-
party rights to sue under a contract are relatively restricted. For example, if a third
party was meant to gain from the transaction but professional legal counsel should
be sought.

 A claimant may also be entitled to file a breach of contract action against the seller.
This might be for either a breach of an express contractual provision pertaining to
the faulty goods or a breach of an implicit contractual obligation. According to the
Consumer Rights Act, when a firm offers a product to a consumer, the contract for
sale includes the following terms:

 Goods must be of sufficient quality

 Goods must be suited for a certain purpose if the contractual party is
aware of it
 Goods must be as described.

LO4 Recommend appropriate legal solutions based upon

alternative legal advice provided
I. The different type of methods of dispute settlement
 All of us are aware with our civil justice system's traditional dispute resolution
process: litigation or proceedings with a judge or jury to decide who is right or wrong

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– where somebody wins and someone loses. Many more choices are available,
though. Negotiation, mediation and arbitration are the most recognized - commonly
referred to as ADR or alternative dispute resolution. Generally, the most common
methods of settling contract-based disputes are Mediation, Litigation and Arbitration
(listed in arbitrary order), as further outlined in the following:

 Mediation: Mediation is normally voluntary, whereby a third party (a

mediator), selected by the parties or by a process adopted by the parties,
listens to each side's position, discusses the issue with them alone or jointly
and attempts to assist them achieve a solution. Typically, the mediator has
no power, but helps them acknowledge the strengths and flaws of their
arguments and seeks a solution, typically a common ground agreement.

 Litigation: All issues concerning business can, if necessary, be settled at

court. The right to take legal action is derived from the constitution. The kind
of court to refer to is sometimes already laid forth in the contract, in the case
of disagreements. If not, the law responds which courts are responsible for
particular conflicts. It is often feasible to refer to the place of the defendant,
but in situations of commercial connections the law offers alternative
choices.

 Arbitration: Arbitration means that one or more arbitrator who look much
like private judges will be brought before the issue. Several well-known
international organizations, in accordance with their procedures of qualifying
and choosing arbitrators, and in conformity with their own procedural rules
or other provisions, are accessible for this type of conflict resolution. In
addition to the expenses paid by the lawyers that represent the parties in
the arbitration, the typical cost includes charges for the organization as well
as hourly fees for arbiter. The trusted are those with excellent ratings for
fairness, openness and consistency who publicized their fees and
regulations from parties whose cases they have heard.

 Citation: A quote refers to a law enforcement body. In order to enable

anybody accessing the legal library to discover the mentioned resources, it
is necessary that quotations for legal documents follow a uniform structure.
For various sorts of sources of law, including cases, laws and secondary
legal documents, there are quotation forms. The researcher will be able to
find resources in the legal library more independently by understanding the
fundamental formats for each of these distinct sorts of sources.

II. The effect of dispute settlement on the business

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 Conflict resolution is an undesirable risk, diverting important time and resources from
productive and lucrative operations. Not all conflicts have to become disputed, but
can be settled before they grow and lead to court action by sincere conversation,
negotiation or mediation. Below we are going through three typical areas for
disagreements and strategies of preventing and resolving them.

 It is assumed that the conditions of the contract would be complied with when a
contract is signed. Commercial contracts are typically complex and involve big
quantities of money or lengthy periods of time. All terms and conditions must be fully
understood and read carefully. While a contract may also be entered into by word of
mouth or assumed by the behavior of both parties, it can be used for evidence with a
written agreement. You should remember that written contraction is a legal
obligation to comply with the criteria for registration in some instances.

 If a party fails to fulfill its contractual aspect, then that party violates the contract.
Contract infringement is also seen if the job finished is faulty or if one side states to
the other that the work agreed is not carried out. Additional violations include the late
or unpayment, failure without a 'reasonable' justification to supply goods or services
or late services. Violation may include minor, substantial, fundamental or anticipatory
violations. It is ultimately a financial loss and how it may be recovered in many
situations of breach of the contract. Talks with the breaker or the person that
accuses you of contract breach are an effective method.

 You should get legal assistance and ensure that your aims and aims for the outcome
are clearly defined and harm is properly assessed. The talks should focus on the
reason of the violation and on the possibility of modifying the contract in order to
achieve it. Most commercial contracts are intended to cover the remedies for
contract violation; if first denials do not succeed, mediation will be conducted, and
finally the issue will be taken to court. Each level of this process increases related
expenses and the time frame for settlement, which means that the primary approach
should aim at resolving the violation at an early stage.

III. Recommend a certain article on governing laws and dispute

settlement that you think the best for your customer’s situation.
 A rule of law clause is helpful since it allows consumers to comprehend your
terms and conditions. The more specifics about the conditions you agree to offer
your users, the better. By incorporating the regulatory clause, parties gain clarity:

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 they know what legislation will be applied in the determination of problems
concerning their contractual rights and liabilities. Another motive is to save on
prospective lawsuits time and money, which will become more probable when
there is no legislation at all. Where an agreement lacking in a law or jurisdiction
provision emerges, the contract must be regulated by law with the most powerful
contractual relationship to the law of the jurisdiction.

 A rule of law clause is useful because it enables consumers to understand your

terms and conditions. The more details you agree to provide your users, the
better. The parties get clarity with the incorporation of the regulatory clause: they
know what legislation is being used to resolve difficulties relating to their
contractual rights and obligations. Another reason is to save time and money in
future proceedings, which is more likely if no legislation exists at all. In cases of
an agreement that is not provided for in law or jurisdiction, the contract must be
governed by legislation with the strongest contractual link with the law of
jurisdiction.

 The mediation is the best way in dispute settlement that business should use in
the conflict. In addition, mediation is less restrictive than litigation or arbitration,
allowing for greater process flexibility. Typically, the advantages of mediation are:

 Communication: poor or inefficient communication results in the majority

of conflicts. "It is a term that we heard more than everyone else that we
have not held this talk a year ago." Mediation allows individuals to talk, to
address tough questions and to work carefully with a qualified third party
in order to understand differences of view.

 Confidentiality: The capacity to debate serious matters quietly and to do

nothing until and until agreement is reached.

 Control: the parties maintain control of the results instead than passing
them on to attorneys or a court or a third-party adjudicator. Laws typically
participate as advisors, advocates and trustees in mediation, although
party autonomy is one of its key characteristics.

 Creativity: due to its adversarial character, traditional issue resolution

tends to be binary. Courts are usually limited to remedies for money and
seldom to specific remedies such as prohibition. There is, of course, no
room for constructive dispute resolution techniques. This fosters a culture
in which the only method to solve needs is money/compensation/claims.

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  Cost saving: while numerous media formats exist (due to their versatility),
mediation generally takes one (or two) day to assist parties to come to an
agreement. Cost saving. Only a few weeks are typically necessary, from
initial inquiries to agreements. Overall, it should be significantly cheaper
than alternative methods, in particular court or court. From a case-by-case
point of view, this allows for settlement without excessive (and frequently
large) cost; this can make considerable savings in the total justice budget
from the general public sector perspective.

 The mediation process gives the appropriate chance to increase company

performance, better productivity, reduced opportunities and remediation costs by
looking for creative methods to deal with conflicts early and effectively (or to avoid
them arising or escalating at all). This advantage might affect the company and
general economic performance and the volume and effectiveness of public
spending both in the public and in the private sectors.

 Research reveals that conflict costs are substantial - the cost of business over
£30 billion a year is estimated to be 20% of leadership time and losses of 370
million working days. The cost is not simply financial in nature, but can include:
missed opportunities, the absence of profitable employment, worse services,
relations and reputations tarnished, employee motivation, increased uncertainty
and general lack of trust. These expenditures can greatly damage the
performance of companies and their worth.

 Conflict inevitably constitutes the major driving force of economic progress and a
considerable loss of productivity. Although we recognize the unavoidable conflict,
the more effective it can be managed and tackled, the better the improvement in
the particular firm and its other economic outcomes and the overall performance
of the economy. Mediation provides a means of this kin

Conclusion
Through this report, we can see the important of business law in the company
operations. In addition, Companies need to clearly understand about applicable laws to
come up with reasonable policy in the law of agency and the law of contact in business.
Therefore, we can see that law in various ways impact business. Laws safeguard
businessmen as well as customers that are vital if these two parties are to have a

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healthy relationship, otherwise corporations will not operate. There are laws essential to
set up a company, to manage and dissolve a company.

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HIOB, T., 2021. 3-different-ways-solving-business-disputes-which-one-choose. [Online]

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