Characteristics of Business Law LO3

Characteristics of business law LO3
1 Statutes – legislation from House of Commons. Statutory law. Acts of Parliament

which start off as a bill.
Contract law
Case Law
E u Law
Common Law - decided by the courts, very old law. Some of it case law and some
legislation
HASAWA health and safety at work act
Regulation bodies are competition commission (EU idea comes from the treaty of
rome chapter 84-86 like a constitution). All business are regulated. Competition is
important – keeps £ down and is in the publics interest. They investigate companies
not working in the public’s interest. – they are looking at the prices charged
2.3 regulations – only a page on how businesses r regulated in uk – competion

commission and regulatory bodies, ofcom of wat …
Businesses expand by franchising, investments, merging,
Report format (distinction) – cover sheet, intro, body for report 2 x 800 words,
conclusion, bibliography, appendices ( graphs and photocopies of articles 5 needed as
evidence ).
Balance of trade to include in

circular flow of income.
The Principle Characteristics of English Law that Apply to
the Business Environment
English law is there to bind businesses into agreements to each other or to consumers;
otherwise there is security in transactions. It deals with how businesses are formed,
how the members liabilities are regulated, governing methods, make companies keep
their employees informed of their decisions and actions and in which way they must
record their performance in accounting terms.
Characteristics of Business Law
♣ Statutes – A bill passed through Parliament that gets accepted and called an
‘act’. Statutes command or prohibit something, or declare policy and get
added and amended to add to a current legislation. It is considered a Primary
Authority. Under Statutes there is Case law, which covers law set from
opinions from court; Common law is developed by judges through decisions
of courts and similar cases. It is a legal system that gives great precedent
weight to common law on the principle that it is unfair to treat the same case
in a different way on a different occasion, they both are similar and this is the
difference.
♣ Contract Law – A contract binds a set of agreements which the law will
enforce. A valid contract that will bear sustenance in court must contain an
agreement, an intention to create legal relations and considerations.
♣ EU law - A body of treaties, law and court judgments which operate along
side the legal systems of the EU countries. Each individual country still has its
own laws.
♣ HASAWA – (Health & safety at work act) an important law which is set to
ensure safe working conditions with safety measures implemented. For
example, a mechanics garage must make workers wear safety boots. In the
event of injuries, staff can sue due to unsafe working conditions, but as health
& safety is the responsibility everybody they may not be compensated because
they did not comply with the rules. If health & safety is not observed
authorities reserve the right to close down or prosecute employers.
How the Law of Contract Regulates Business Transactions
English contract law is an influential body of law which regulates the law of contract.
Its doctrines form the basis of contract law across the Commonwealth having much
influence on international law. A signed offer and acceptance determines whether an
agreement exists between parties.
The law of contract regulates business transactions because what is contained in them
must not conflict with the law of the land regarding business transactions and either
party in breach of the agreement can be taken to court. Court cases are based around
loss; it could be money or bad service. So, if a merchant has signed a contract to
deliver 100 bags of top soil to B&Q that weigh 10KG’s each but, under weight bags
would be a breach of contract.
The law of contract regulates every business transaction. Miss sold a products should
be refunded or a replaced. It could be that the product is deficient in content or does
not do exactly what it says on the label.
Sale of goods act
Covering replacements on faulty goods, suitable description and services and that
goods are of merchantable quality. If a consumer makes a purchase and the goods
conflict with any of these laws than a small claims court is an option.
♣ The Supply of Goods and Services Act 1982, a main

piece of legislation relating to businesses that supply services.
Requiring businesses supplying services to carry them out
with reasonable care and skill and, unless agreed to the
contrary, within reasonable time and at a reasonable charge.
♣ Consumer protection act 1987, implements the European

Commission's Product Liability Directive. A main purpose of
the Act is to impose strict liability for defective products
primarily on someone who is regarded as the 'producer' and
not the supplier. Aiming to provide clear rules by which an
injured person can contact the person responsible. Only
applicable where the consumer has acquired a defective
product which causes damage; The Act used to make it an
offence to mislead consumers concerning prices of goods,
services, accommodation or facilities. This part of the Act has
been revoked and replaced by new legislation - Consumer
Protection from Unfair Trading Regulations 2008 and the
Business Protection from Misleading Marketing Regulations
2008.
♣ The Unfair Terms in Consumer Contracts Regulations
1999, were introduced to protect consumers from unfair
terms in contracts which they enter into with businesses. This
fact sheet describes what the regulations cover, whether your
business is affected by them and explains what your business
must do in order to comply. It provides guidelines only and
does not cover all compliance issues.
the Impact of European law on Business Organisations
The European Union (EU) single market is designed to allow businesses to trade
throughout the EU on an equal footing by introducing measures ridding obstacles to
free trade, including clause in contracts which cause restrictions and increase costs.
This is a positive legal impact for directives such as, eCommerce, insurance and
banking, which have affected contract law in neighbouring states. However, the EU
holds no right to regulating the law of contract of countries, so countries still have
their own. For example, parties concerned come conclude where the contract will be
signed therefore, which jurisdiction applies. This law helps smaller and medium sized
companies (SME’s) to grow and become successful by exposing them to more
opportunities due to less cross border laws when companies grow by merging,
franchising and investments.
ECommerce will benefit by being able to do B2B/B2C transactions online with no

stringent laws and taxes within the EU, Amazon.com take full advantage. Increased
cooperation from EU firms using same electronic systems reduce fraud and speeds up
processes for consumers and businesses, Banking and Insurance companies will all
share the same interest rates set by Germany and move money between each other
with ease as they share the same currency and therefore, can tender for public sector
contracts throughout Europe and commission on currency exchange. UK Insurers can
insure within the EU and bank accounts can be owned by Europeans. Outlets like
banks, post offices and high street store accept Euros even though we have our own
currency; everyone saves on conversion fees, consumers and businesses.
The above points strengthen the economy by businesses generating more revenue,
turnover and income but faster.
Health and Safety at Work Act 1974 (HASAWA)
A primary legislation covering occupational HASAWA, UK. The Health & Safety
Executive is responsible to enforce the legislation and a number of other Acts and
relevant Statutory Instruments.
Statutory instruments are the secondary types of legislation made under specific Acts
of Parliament. These cover a wide range of subjects, from control of asbestos at work,
driving, working at height etc…
Employers comply by:
♣ Provide and maintain safety equipment, like fire extinguishers and smoke
alarms
♣ Provide risk assessments, through inspections from experts

♣ Look after the safety of others, like the public surrounding them and anyone
on the premises
♣ Provide information, training, instruction and supervision - ensure staff are

aware of instructions provided
Employers are forbidden from charging employees for any measures required to
provide in the interests of health & safety, Employees must take care of colleague’s
health and safety interests as they maybe liable, and co-operate with their employer
and not interfere with HASAWA equipment.
For example, building sites are regulated by the Health & Safety Executive who ruled
that anyone on the building site must wear safety boots, a hard hat and tabard.
HASAWA is a cost of production and cost firms money and time to comply with.

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Characteristics of business law LO3

1 Statutes – legislation from House of Commons. Statutory law. Acts of Parliament

2.3 regulations – only a page on how businesses r regulated in uk – competion

Businesses expand by franchising, investments, merging,

Balance of trade to include in

Characteristics of Business Law

Sale of goods act

♣ The Supply of Goods and Services Act 1982, a main

♣ Consumer protection act 1987, implements the European

the Impact of European law on Business Organisations

ECommerce will benefit by being able to do B2B/B2C transactions online with no

Employers comply by:

♣ Provide risk assessments, through inspections from experts

♣ Provide information, training, instruction and supervision - ensure staff are

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