Unit 7 Business Law-LSST- Level 6


A business activity shall include exchange of goods and services in which the good or the services shall be provided to consumer. There have been many business organisation set up whose main motive is to provide consumer services and goods which are in accordance to it. Business organisation offer intangible goods and the services and they charge for services provided to government, to other business or to consumers. (Wigmore, 2012.)It is very important for all the business organisation to attain consumer satisfaction which shall be the prime motive of business organisation. (Newburn, Stanko, 2013. )Other then that these business organisation are pyramid of many employer and employees and hence it makes the duty to protect the rights and interest of these workers. Following project shall create a clear view about business law and how it must be prevailed on to business organisation. Project will make a reflection on various aspects of consumer rights and employment rights which has been considered as one of the essential part of business law.

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Task 1


Law is the key ingredient to all the activities prevailing in the business. It is very important to apply law so that everything walks according to particular rules and regulation. It is the want of any of any activity that it should be in very processed form by the application of rules and regulation so that it may not arise any difficulties and obligations on the party. In order to enact proper law there are many sources which has been used by the regulatory bodies so that proper sources related to law can be granted. (Wild, Wild, Han, 2014. )

Customary law- The first and foremost source of law is customs. Through various customs law can be extracted as customs refer to a particular format in which an activity has been prevailing.

Common Law- Other sources are equally important for enhancing the knowledge law such as common law. There are many law which has been prevailing to all sections of society as well as they are so common that it became necessary to include them with reference to any act such as contract law. It has been referred as one of the common law adopted by all acts.

Legislation-Legislation also work as source of law as they enact various provision of the act and several law reviews has been the part of legislation.( Beatty, amuelson, 2012.)They are know as the law making body of government who make the law and run the law which is why several ideas can be taken.

Case law- there are many cases which are being registered in courts every day and new kind of judgement has been passed on them. There are many cases in which new kind of law has been established or any new provision has to be added.(Llewellyn, 2012.)

These sources help all the bodies who have been governing with legality to introduce various kind of laws in order to prevail them over many activity so that development can be accounted.


Government play a very important role while making up of any law or regulation. Government follow a particular format by which it became an easy business for them to implement laws.(Law, Buhalis, Cobanoglu, 2014.)When a law is being made by the government certain steps are to be followed by the government so that what so ever law has been in making shall be enacted carefully and it should have a positive effect on certain activity for which is has been made. While the government make laws it first of all assess the areas in which there is vital requirement of regulations to put for an example one of the most prevailing activity in UK is of business and it is the prime duty of government that it should protect interest of all those employees who have been engaged in business organisation. Government first of all makes a bill in which all the recommendation has been included related to field which are important for business protection.(Dipboye, Colella, 2013.) These recommendation and provision have been in the favour for the protection of interest and rights of all those members who have been engaged in business activity. When a bill became ready out of draft then several votes has been taken from all those bodies who are equally important for the enactment of laws for an example legislation. It is one of the important regulatory body which helps in enacting laws. When the bill has been passed by the majority then bill get transferred in an act fro an example before the enforcement of employment right act a bill has been made for same before parliament and when majority of ministers get agreed upon same then only an act came into existence. This is how a government make law and make enforcement. These common law and statutes have been implemented by court of justice according to need of case which has been registered in court.

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Task 2



When a company has to get set up by the company owners then it became really important to choose a perfect name for the company. According to company law there are many mandatory provision included which states that it is important for a company which has been established new to select a name.(Foss, Knudsen, 2013.) The selection of name has been done because once the company has been set up then registration shall be needed for which a name shall be there. As Jinn and Ben has established their own business entity it is very important for them to select a name for their company for registration. To choose a name, Jill and Ben has to follow a particular formate described under company law. If a company is private limited company then Ltd must be used, if a company is limited by liability partnership then LLP shall be use after name. A limited partnership firm shall use LP. While choosing the name for the company Jill and Ben must take care the the name which they have choose must not be registered already that is any person cannot choose such name which has already being registered under company law and registrar. If the company has been part of same group then name could be similar. While choosing the name of company it shall not contain any sensitive word or expression until and unless it has been permitted from prior authority. The name which has been choose by owner must not be offensive in nature.(Bently, Sherman, 2014.) The company name cannot show any connection with the government or any local authority. The name which shall be choose by the owner shall be be unique. It must not be same or like any other company. A unique name create attractiveness among the consumer. The same name of company can be differentiated by using punctuation, any kind of special character or by using any special sign. Depending upon legal system, a business name must include:-

  • the name of the partners who have been included in the business
  • the name of the company
  • and if the person who is planning to launch a new company is sole trader then his whole personal name shall be mentioned.


It is impossible for the business organisation to run all of its activities without their employer and employee. A business organisation has been a pyramid of all the workers who are working in a company. In order to protect the rights and interest of such employer and employee government has implemented few acts.(Boud, Cohen, Sampson, 2014.) The main motive behind enactment of such employment rights is that not any business organisation could practice any kind of illegal activity or any such activity which has been prohibited by law. It has been seen in various business organisation that discrimination is being done among the employee by which a bad impact has been created on employers. There are many cases in which it has been that employers are resigning from the job due to unfavourable condition prevailed in the organisation for an example it has been seen in the present scenario that Bianca give resignation from the business organisation as Jill has instructed her not to take any order from potential customer who are Spanish. Jill had made this statement as the person had a very bad experience with Spanish people by which he was not in the favour to take any further order from them. According to employment right a person cannot order any action which has been based on personal issues that is an employer cannot bring or arise any such action which is result of his personal issues. In this case Jill was afraid of Spanish that is why he made it very clear to Bianca not ton take any order. This could bring an adverse effect on the business proposition which have been started by Jill and Ben as well as the company may suffer from many losses. As the employee of this company has resigned which was against her rights mentioned in employment rights and business law.(Eidenmüller, 2013.)


consumer protection is basically when the law provide a layer of protection to consumers. It refers to all the legal measures given to consumer whose main motive is to give special rights to consumer from getting infringed.(Harlacher, Reihlen, 2014.) Consumers are those persons who intended to avail some kind of services or goods from the company it can be individual or it may be in group. Consumer protection act deals with the protection to all those customer who are buying any kind of goods and services for their own personal use. Any company who has been dealing with business of providing of services to consumer must ensure that they work in the frame of consumer law. When any infringement occur in consumer law then it shall result into legal liability on the parties either with the criminal offence or legal actions could be taken against company by consumer seeking damages by asking compensation for the same like wise it happened in the following case Martin place and order to Jill and Ben company for some T shirts on which he ask to get delivered on particular date because of some occasion but it has appeared in the case that delivery was not on time.(Choi, Majumdar, 2014.) The reason given behind late delivery was the owners was not well but when a delivery has been placed Martin receive T shirts of different colors Pink and Purple. It has been seen in the present case that rights of a consumer were infringed according to consumer protection act as the delivery of services were not on time and when the delivery was done then T-shirts was found in different colors from the color which was being asked. According to consumer protection act 1987 liability with product will fall on the company if certain product has been delivered defective. In the Martin can make claim when he has suffered from any kind injury or loss as a result of defective product. The producer of the product shall be held liable for defect and only limited range of defences would be available to the defendant. CASE LAW:- Abouzaid V Mothercare (UK) Ltd (2000). hence it can be seen that consumer protection act is very important act for all those consumers who have been availing services from big company ad who are experiencing any kind violation in their rights and duties as a consumer. It is very important for a consumer to get aware of all the rights and duties so that a legal action can be brought against those who are intending to infringed it.

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Task 3



In this case it has been seen that a valid contract has been established between both the parties. (Acharya, Baghai, Subramanian, 2014.)An offer has been made by the company to builder for renovating a old restaurant into 3 bedroom set. The offer has been accepted by builder for the construction of 3 bedroom set. It has been seen in the contract that a valid offer has been made between the parties and acceptance has been made by other party. the next essential element which has to be included in formation of valid contract is giving consideration on the part of both the parties. In this case there was a valid consideration by both the parties while making a contract in constructing the building.(Jennings, 2014.) An agreement has been signed between the parties which shall raise legal obligation on the party if neither of the condition mentioned in the contract has been fulfilled. In this case it was further noticed that Fabian begin to work and unfortunately fall ill by which they were not able to complete their work on time. In this case a question has been raised that whether the construction company is entitled for payment or not. The company shall not be entitled for payment as the work which has been assigned to them was not completed on time and in place of that Big House Ltd face damages as building started corrosion. instead of payment Fabian is entitled to pay compensation to the opposite party as they have suffered lots of losses. Their house was not completed on time and several other difficulties is also being faced by them. (Hattam, 2014. )


according to the provisions mentioned in the company law, when any compay has sufferd from losses or it has incurred any kind of profits then it shall be distributed among the creditors, its stakeholder and everybody equally. In this case it has been seen that the company has suffered many losses. Over the last year year Big House Ltd have really struggled and have seen their business go down dramatically.(Bybee, 2013.) So they have decided to wind up their business instead of continuing the same. According to the company law when any company starts to wind up its business then all the credits and debits shall be distributed among the stakeholders or the creditors. In this case the company has decided to wind up its business. It has been seen that Donald Bank us the creditor of the company and has a fixed charge. In this Lauren who has been appointed as liquidator shall pay the creditor all the sum amount which the bank has owned to company. Such distribution of assets could be possibly executed by the operation of law. There have been many provision in the company law by which Lauren shall distribute all the assets they own on Big House Ltd. It is important that distribution shall be taken into consideration with the operation of law as if it has been done without the usage of law then it shall give rise to legal obligation and legal liability on to the parties.(Hamermesh, 2014.)


It is very important that there shall be proper use of legal solution. Basic aim behind implementing such laws and regulation is to provide protection to all those people or the consumer who have been suffering from any kind of infringement. Government has implemented has made proper laws and regulation in context to particular activity so that an appropriate legal solution can be applied.(Bebchuk, jackson Jr, 2012.) It is very necessary to do as an inappropriate legal solution shall make the party to raise legal obligation and legal liability on other and on the other hand the party who has been seeking any kind of legal relaxation shall not be able to achieve. While talking about the application of legal solution in business problems it is very necessary to apply appropriate solution which will help the plaintiff to incurred correct compensation from the damages as well as it shall help the victim to seek protection against the infringement of rights and duties of all those who has been involved in business organisation for an example all the employer or employee who have been engaged in business organisation and facing any kind of legal disparities must seek for legal solution. The law has been established in order to safeguard the interest and right of the employee engaged in business scenario.(Murray, 2014.)

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Task 4



(Kapottos, Youngner, 2015.)when a contract has been signed between two parties with consideration and a proper agreement has been made then such agreement able to raise some of the legal rights and duties towards parties in this case it has been seen that a contract has been signed between the parties in which an arbitral clause has been added which clearly shows that when any breach has been occurred between the parties then they will opt for the arbitration. A breach has been occurred in the contract but it has been appeared that DM motors had brought the case in UK court. (Law, Buhalis, Cobanoglu, 2014.)According to the business law when a contract has been made between the parties regarding any indulgent of arbitral clause then they must prevail on that clause only. In this case Jakson Ltd possess the right that the case shall be solved by using the method of arbitration. Such legal right has been arises due to breach in the Arbitral Clause


(Yu, Olmos, 2016.)institutional arbitration is referred to a system in which parties can choose their own rules to govern the procedure of their case. Institutional arbitration is when the arbitration has been administered or carried out by the institution related to arbitration that is a several institution has been set for arbitration and all the cases shall be decided by those institution only while on the other hand Ad hoc arbitration is such kind of proceedings that is not administered by others and require the parties to make their own arrangements for the selection of arbitration and for designation of rules, applicable law procedure and administrative support.


It can be concluded from the above project that business law is very important for all the organisation who has been prevailing in business. The project has explained what are the various sources of law and how law can be extracted. There are other point too which has been highlighted by the project included that how government make the law. There are various case studies described in project based on company law and contract law. The project has also highlighted how a company has to get registered and what should be precautionary measures to be taken while choosing the name of company. Various aspects of consumer protection act has also been explained under this project. IAH_AU gives you the best assignment help in australia by which you can achieve the best grades.


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  • Bebchuk, L.A. and Jackson Jr, R.J., 2012. Law and Economics of Blockholder Disclosure, The. Harv. Bus. L. Rev., 2, p.39.
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  • Bybee, J.L., 2013. Usage-based theory and exemplar representations of constructions. In The Oxford handbook of construction grammar.
  • Choi, N. and Majumdar, S., 2014. Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of Business Venturing, 29(3)
  • Dipboye, R.L. and Colella, A. eds., 2013. Discrimination at work: The psychological and organizational bases. Psychology Press.
  • Eidenmüller, H., 2013. A New Framework for Business Restructuring in Europe: The EU Commission’s Proposals for a Reform of the European Insolvency Regulation and Beyond. ECGI-Law Working Paper, (199).
  • Foss, N.J. and Knudsen, C., 2013. Towards a competence theory of the firm(Vol. 2). Routledge.
  • Hamermesh, L.A., 2014. Consent in corporate law. Business Lawyer, 70, p.161.
  • Harlacher, D. and Reihlen, M., 2014. Governance of professional service firms: A configurational approach. Business Research, 7(1), pp.125-160.
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