Qualification BTEC Higher National Diploma in Business

Level 05

Batch No 13

Module Name Business Law

Module Number M4U7

Name of
Kisholina Sivadas
Candidate

Candidate No. 913092250

Submission Date 07 January 2023

Word Count

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 Assignment Cover Sheet

Qualification Unit number and title

BTEC HND in Business (Level 5) M4U7: Business Law

Student name Module Tutor

Kisholina Sivadas Nizam Razzaq, Attorney-at-law

Learning Outcomes Date issued Deadline Submitted on

LO 1 and LO 2 30 November 2022 07 January 2023- Before 10.00 am 07 January 2023

Assignment title Written Individual Assignment: Impact of Law on Business

In this assessment, you will have opportunities to provide evidence against the following criteria. Indicate the page
numbers where the evidence can be found for each criterion.

Criteria To achieve the criteria the evidence must show that the student Evidence
reference is able to: (Page no.)

P1 Explain different sources of law. 6,7,8,9,10

Explain the role of government in lawmaking and how statutory

P2 10,11,12,13,14
and common law is applied in the justice courts.
Using specific examples, illustrate how company employment
P3 26,27,28
and contract law has a potential impact upon business.

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 Evaluate the effectiveness of the legal system in terms of recent reforms 28,29,30
M1 and developments

Analyse the potential impact on business through

M2 30,31,32,33,34
differentiation between legislation, regulations and standards.

Provide a coherent and critical evaluation of the legal system

and law, with evidence drawn from a range of different relevant 15,16,17,18,19,
D1
20,21,22
examples to support judgments.

Student declaration

I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.

Student signature: Date: 07.01.2023

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Table of Contents
1.0 Introduction....................................................................................................... 6

2.0 Sources of law ...................................................................................................... 6

2.1 Common law ..................................................................................................... 7

2.2 Legislation ......................................................................................................... 8

2.2 Delegative legislation ........................................................................................... 9

2.3 Customary law .................................................................................................. 9

3.0 Application of statutory and common law in justice court ................................... 10

4.0 Role of government in law-making ..................................................................... 11

4.1 Law-making process of the United Kingdom (UK) .......................................... 12

4.2 Law-making process of Sri Lanka ................................................................... 13

4.3 Comparison of law in different countries ......................................................... 15

5.0 Structure of the court and jurisdiction ................................................................. 16

6.0 Business Law ..................................................................................................... 22

6.1 Contract law .................................................................................................... 22

6.2 Company law .................................................................................................. 23

6.3 Employment law .............................................................................................. 24

7.0 Impact of law on business .................................................................................. 26

8.0 Effectiveness of the legal system in recent reforms and development ............... 28

8.1 UK’s Dissolution and Calling of Parliament Act, 2022 ..................................... 28

8.2 UK’s Trade Act 2021 ....................................................................................... 29

8.3 Inland Revenue (Amendment) Act No 45 of 2022 of Sri Lanka ....................... 29

8.4 Sri Lanka’s Industrial disputes (amendment) act, no. 24 of 2022 .................... 30

9.0 Differences in legislation, regulations, and standards ........................................ 30

9.1 Legislation ....................................................................................................... 30

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 9.2 Regulation ....................................................................................................... 31

9.3 Standards........................................................................................................ 31

10.0 Conclusion ....................................................................................................... 34

11.0 References ....................................................................................................... 35

Table of figure
Figure 1: Structure of the English court system ........................................................ 17
Figure 2: Court structure of Sri Lanka ...................................................................... 18
Figure 3: Court structure of UK ................................................................................ 20

Table of table
Table 1: Comparison of law in the UK and India ...................................................... 15
Table 2: Regulations and standards of legislation .................................................... 32

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1.0 Introduction

Law is a rule of action that is prescribed by some superior and must be followed by
the inferior (Willis, 1926). Law is a set of rules developed and enforced by social or
governmental institutions to guide actions (Robertson, 2012). Law is the sovereign's
command; it is an instrument for regulating human behavior, whether in social or
business environments (Shah, 2021).

The objective of this report is to analyze the nature of the legal system and illustrate
the potential impact of the law on a business. Firstly, the report begins with a definition
of law. After describing it the report provide information about the sources of law, and
this report continues with the application of statutory and common law in justice court.
Secondly, this present paper gives information about the role of government in law-
making in Sri Lanka (SL) and the United Kingdom (UK). Thirdly, it continues with the
structure of the court and jurisdiction. Fourthly, an analysis of the business law, After
postulating it; the paper provides information about the impact of law on business.
Fifthly an explanation of the effectiveness of the legal system in recent reforms and
development. Finally, the present report ends with information about differences in
legislation, regulations, and standards.

2.0 Sources of law

The origins of laws are the binding rules that allow any state to govern its territory. The
term "source of law" may occasionally refer to the sovereign or seat of power from
which the law derives its validity (Goltzberg, 2016).

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2.1 Common law

In law, common law is the body of law established by judges and other semi-tribunals
through written opinions (Garner, 2001, p.177). This law is divided into two sections:
criminal law and civil law. The legal system in Sri Lanka is based on the English
common law system. As a result, the interpretation of case law is governed by English
law principles such as judicial precedent (lower courts follow the reasoning of higher
courts in similar, subsequent cases) and ratio decidendi (reasons for judgment)
(Human rights library, 2016).

One example of common law in action today is the concept of common-law marriage,
which recognizes similar rights as those with a marriage license to couples who are
not officially married if several conditions are met (Chen, 2022).

R vs R [1991] – Marriage Is No Excuse

This recent case is perhaps the most memorable due to the shock factor. In this day
and age of #MeToo and support for survivors of sexual crime, it's hard to believe that
the matrimonial exception to rape was not repealed until the early 1990s. This meant
that from 1991 onwards, the fact that the crime was committed by a husband against
his wife was no longer a defense to rape.

In this case, Lord Keith stated that the notion that "by marriage, a wife gives her
irrevocable consent to sexual intercourse with her husband under all circumstances"
was (and still is) "quite unacceptable."

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The case of Brown vs Board of Education

Linda Brown, a third-grade student, was required by law to attend a school for black
children in Topeka, Kansas. Linda walked six blocks, crossing dangerous railroad
tracks, before boarding a bus to Monroe Elementary. Yet, only seven blocks away was
Sumner Elementary, a school attended by white children that Linda would have
attended if not for segregation. Her father, Oliver Brown, was encouraged to sue the
Topeka school district by NAACP chief counsel Thurgood Marshall.

2.2 Legislation

Acts of Parliament are referred to as legislation. Legislation is a broad term that

includes laws enacted by Parliaments as well as laws enacted by individuals or bodies
granted legislative authority by the Parliament. It is also known as Acts or Statutes
(Straalen, 2016).

The Data Protection Act of 2018 (2018 c 12), The Consumer Rights Act of 2015 (2015
c 15), the 1984 Police and Criminal Evidence Act (1984 c 60), and The Criminal Justice
Act of 2003 (2003 c 44) are some examples of United Kingdom’s (UK) legislation act
(LexisNexis, 2022). Some examples of legislation acts of Sri Lanka include the
Information and Communication Technology Act of 2003, the Women and Children
Act of 2005, the National Education Commission Act of 1991, and the National
Enterprise Development Act of 2006 (The world law guide, 1996).

On October 1, 2015, the Consumer Rights Act became law in the Uk. Because the
legislation is now clearer and easier to understand, consumers and businesses may
buy and sell with confidence. When problems do develop, they may now be resolved
more swiftly and affordably. The Information and Communication Technology Agency

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(ICTA) of Sri Lanka is the government's apex ICT entity. The Information and
Communication Technology Act No. 27 of 2003 (ICT Act), as revised by Act No. 33 of
2008, mandates ICTA to take all necessary measures to implement the Government's
ICT Policy and Action Plan.

2.2 Delegative legislation

Delegated legislation, also known as subordinate legislation, is legislation enacted

under the authority of an Act of Parliament. Delegated legislation includes Statutory
rules, by-laws, ordinances, orders in council, and other 'instruments' made by the
executive. By delegating the authority to make technical rules, Parliament is better
able to debate important policy and principle issues (Pearce and Argument, 2017, p.5).

Delegated legislation serves the purpose of allowing the government to alter a law
without having to wait for a new Act of Parliament to be passed. Delegated legislation
can also be used to make technical modifications to the law, such as changing the
punishments under a certain act. Delegated legislation empowers persons with
necessary expert knowledge to make laws (LawTeacher, 2022).

2.3 Customary law

Customary law is the body of law that clearly defines people's norms, traditions, and
rules of behavior (Nwocha, 2016). A system of rules and processes that emerge from
the bottom up within a community is known as customary law. It is found in ancient,
medieval, tribal, and modern tribal societies, as well as merchant communities in the
high Middle Ages and modern international trade settings (Benson, 2019). Kandyan
Law, Muslim law, and the Thesavalamai are some customary laws of Sri Lanka.

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Kandyan law in Sri Lanka dates back to the Sinhalese monarchy in Kandy, and it
represents territorial laws that apply to all people living in the Kingdom, regardless of
an ethnic or cultural group. Kandyan law is no longer territorial, and it can only be
applied to Sinhalese people who can trace their roots back to lineage who lived within
the Kandyan kingdom during the reign of the Sinhalese royal family, and it governs
areas such as marriage, inheritance, and adoption. Muslim personal law in Sri Lanka
differs significantly from the island's other special laws in that it applies to all Muslims,
regardless of locale or race. Muslim personal law is concerned with topics such as
marriage, divorce, and maintenance (Dissanayake, 2019).

Muslim law in Sri Lanka was originally a set of Islamic regulations from another colony,
rather than a codification of the customs of Muslims in Sri Lanka at the time. The Dutch
initially formulated a series of laws known as the 'Byzanderwatten' to control Muslims
in the Dutch East Indies, which were later extended to Muslims in Sri Lanka. The
British then translated this and enacted it as the Mohammedan Code of 1806
(Dissanayake, 2019).

3.0 Application of statutory and common law in justice court

In most countries, both common law and statutory laws are utilized to serve justice.
These laws are extremely important. Common law refers to laws enacted in response
to new court rulings, while statutory law refers to laws enacted by various government
bodies. In the same way, as justice courts use common laws to make future
judgments. The decision of a higher court is utilized as the legislation to support similar
types of cases. Because there are no statutes under current common law, the other
judges interpret the existing law and establish new boundaries and distinctions for
various court operations. The opinions of higher courts become binding on future lower
court decisions (Nesteruk, 1996).

It contributes to a relatively quick judicial process based on the defined framework for
a ruling. However, in the context of common law, a bad judgment by a higher court

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makes the rules reluctant to reverse past decisions. Obiter dictum deals with
precedent by the way and the actual binding decision being rationally determining, or
the cause for the choice (Nesteruk, 1996).

Statutory laws are created to help residents resolve their many problems and establish
a law for their benefit. They strictly encompass all areas of law governed by legislation.
There are various instances where common law does not apply. Statutory laws are
thus employed in such exceptional instances. The judges interpret laws by applying
certain rules known as the golden, mischief, and literal. An example of this usage is a
case known as Fisher v Bell, in which a shop owner had a knife for sale in his window,
he was arrested for offering for sale an offensive weapon, the court said it was not an
offer but an invitation to treat, and thus the court applied the law literally (Lawteacher,
2019).

4.0 Role of government in law-making

The different branches of government that play major roles in the creation of laws are
the government and parliamentary institutions. The government participates in
performing the executive function and exercising the regulatory authorities. The
government's budget bill and accompanying measures serve as a crucial source of
economic policy direction (Italian Government Presidency of the Council of Ministers,
2019).

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4.1 Law-making process of the United Kingdom (UK)

The English legal system has several phases for passing laws, including the House of
Lords, the first reading (in which the bill is initially read out), the second reading, the
committee stage, the report stage, the third reading, and the royal assent. The draft of
a bill is created by civil engineers under government instruction. Just the specifics of
the proposed law are explained. Public, private, and private member bills are the three
main categories of bills. Every law starts as a bill (Jackson, 2022).

The House of Commons is told the bill's title and contents at first reading. At this point,
absolutely nothing is done. The second reading is where Bill's specifics are discussed
and altered. After that, Parliamentarians vote on whether or not to move forward with
the Bill. At this point, the whip system is mostly used to persuade members to support
their political party, which may always result in the present administration winning a
majority. The Bill is referred to the House of Commons committee at the committee
stage for in-depth review. The measure may still be amended at this point if more
changes are required (UK Parliament, 2019).

The committee updates the House on the discussions and changes made during the
report stage. The House continues to discuss and vote on the Bill. Bill is once again
introduced to the House in the third reading. There may be a brief discussion, followed
by a vote on whether it should be approved or rejected. The House of Lords receives
the Bill to complete the aforementioned five stages. After modifications are proposed,
they are forwarded to the House of Commons for consideration (UK Parliament, 2019).

The procedure ends with Royal Ascent, when the Bill must receive the formal approval
of the king before becoming an Act of Parliament. The monarch will not even know the
text of the Bill she is assenting to because of the formalities required by the Royal
Ascent Act of 1961. The monarch (Queen Anne) declined to sign the Scottish Militia
Bill in 1707 (UK Parliament, 2019).

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4.2 Law-making process of Sri Lanka

Sri Lanka's Parliament is a unicameral 225-member legislature, with 196 members

elected in multi-seat constituencies and 29 elected using proportional representation.
Members are elected for a five-year term via universal suffrage. After four and a half
years, the president has the authority to call, postpone, or end a legislative session
and dissolve Parliament. The legislature has the power to make all laws. Parliament
has the authority to enact laws, including those with retroactive application and those
that repeal, modify, or add to the Constitution's provisions. (Ministry of Foreign Affairs,
2015).

Government Bills and Private Member's Bills are the two categories of legislation that
the Parliament may pass under the law. Before the bill is delivered to the Parliament
for enactment, the Legal Draftsman and Attorney General certify that it is not in conflict
with the Constitution. The Constitution gives citizens the chance to evaluate and
contest a Bill before the Supreme Court when it is introduced to the Parliament. The
Sectoral Oversight Committee has the authority to examine the law and policy, as well
as to propose new legislation and modifications (Jayathilake, 2021).

Parliamentary Procedure,

First reading: In accordance with Standing Order No. 50, a Bill is put on the Order
Paper for First Reading seven days after its publication in the gazette and at the
request of any Minister. However, if the subject matter of the Bill is on the list of
Provincial Councils, the President shall send such Bill to all Provincial Councils for
their comments before placing it on the Order Paper for First Reading. After the Bill is
tabled, Parliament orders that it be printed and referred to an appropriate Sectoral

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Oversight Committee for consideration, in accordance with Standing Order 50
(Parliament of SL, 2021).

Second reading: In accordance with Standing Orders 50 and 55, the Bill will be
scheduled for Second Reading fourteen days after the date of the First Reading. The
Committee on Parliamentary Business determines the date for a Bill's Second
Reading. Before the Bill is slated for Second Reading, the Sectoral Oversight
Committee must submit its report to Parliament. Standing Order 56 requires that a
debate on a Bill's Second Reading take place. Standing Order 47 requires that the Bill
be passed by a vote at the end of the Second Reading. Voting can be done by voice
vote, division - by row or by name, or electronic vote recorder. Other than Appropriation
Bills, the Bill may be referred to the Committee of the Whole Parliament or a Select
Committee (Parliament of SL, 2021).

Third reading: On motion, the Bill be read a third time and passed by Parliament in
accordance with Standing Orders 71 and 72, by a vote in accordance with Standing
Order 47. A vote can be cast by voice, division - by row or by name, or by name utilizing
the computerized voting method. The House is seeking approval for the full Bill, with
the amendments offered in the Committee at the Third Reading. A Bill becomes an
Act upon the Speaker's approval of the Bill (Parliament of SL, 2021).

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4.3 Comparison of law in different countries

Table 1: Comparison of law in the UK and India

(Author developed, 2022)

Factors United Kingdom India

Role of lawyers taking instructions from Advising clients on their

clients. legal rights and
responsibilities.
defending people's rights
by informing them of their Assisting clients in any
rights. way that is appropriate, as
well as taking legal action
assisting the community to safeguard their
by providing legal services interests.

personally, defending advising clients before

clients in lower courts courts, tribunals, or
administrative bodies.
safeguarding individual
rights Advancing the cause of
justice and defending
offering knowledgeable human rights and
counsel on the problems fundamental freedoms
people frequently (Patrawala, 1990).
encounters (The law
society, 2019).

Court system The UK court system has The Indian court system
five tiers. Court of Appeal, consists of the Supreme
High Court, Crown Court, Court, High Courts, and
Magistrate's Court, and subordinate courts at the
County Courts are among district, municipal, and
them (Studysmarter, village levels (Kavuri,
2022). 2022).

serious criminal cases are The judicial system is

moved to the Crown Court, divided into three tiers and
all criminal proceedings sublevels. The top court
begin in the Magistrates' and final appellate court in
court. The High Court, the India is the Supreme
Court of Appeal, and Court, sometimes referred
possibly the UK Supreme to as the Apex Court. The

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 Court will hear appeals head of that court is the
from the Crown Court. Chief Justice of India. High
Typically, civil lawsuits will Courts are the supreme
begin in the County Court. judicial bodies within each
Once more, appeals will state, and state Chief
be heard by the High Court Justices are in charge of
and Court of Appeal, and oversee these courts.
although in different District Courts, also
sections of those courts. referred to as subordinate
Decisions from various courts, are located
chambers of the Upper beneath the High Courts
Tribunal and the and are governed by
Employment Appeals District and Sessions
Tribunal may also be Judges. Civil Court and
appealed to the Court of the District Munsif Court,
Appeal under the tribunal’s both led by a Sub-Judge,
system, which also has its are the lesser subordinate
procedures for handling courts. The Chief Judicial
cases and appeals (UK or Metropolitan Magistrate
judiciary, 2022). oversees the lower-level
Criminal Court (Nariman,
2017).

5.0 Structure of the court and jurisdiction

The structure of the English legal system describes rules and regulations, and these
laws are accepted by practically all organizations in the United Kingdom. The structure
is separated into two parts: civil law and criminal law. Judges and other legal
authorities create all of these laws. Criminal law is concerned with crimes such as
murder, data theft from government agencies, and harassment (Monaghan, 2020,
pp.2–5).

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 Supreme court

Criminal Civil

Court appeal Court of appeal

Crown court
High court of
justice

Magistrates court County courts

Figure 1: Structure of the English court system

(Author developed 2022 based on, The University of Wisconsin, 2019)

When a disagreement between two or more people develops about property,

ownership, or a contract, civil law is applied. The Supreme Court is the apex of all
lesser courts, and its ruling is definitive. When there is a quarrel or an unethical
situation, both parties have the option of going to magistrate court. If either of the
parties is dissatisfied with the decision issued by this court, they can appeal to a higher
level in the crown court. They are also granted the opportunity to appeal to the
Supreme Court (Treiber, 2012).

Jurisdiction refers to and encompasses any authority granted by law to a court,

tribunal, or judge to decide or adjudicate any dispute between the parties, as well as
to pass judgment or order. Jurisdiction is a critical subject for the court since it
determines the fate of the matter at the preliminary stage or on merit. Any order issued
without jurisdiction is not valid and is not legally valid (Rao, 2022).

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 Supreme court

Appeal court

High court District court

Agrarian services
Primary Labour commissioners Magistrate
court tribunal courts
tribunals

Figure 2: Court structure of Sri Lanka

(Author developed 2022 based on Jose, 2017)

The Supreme Court, the Court of Appeal, the High Court, district courts (Sri Lanka),
magistrate's courts (Sri Lanka), and primary courts comprise the judiciary. Although
provisions exist for significant offenses to be tried before a jury, all cases are now
heard before professional judges. In criminal cases, the High Court has jurisdiction,
whereas district courts have jurisdiction in civil cases. The president appoints Supreme
Court justices, while the Judicial Service Commission appoints others
(Commonwealth Governance, 2013)

Supreme Court is the Highest Court in Sri Lanka and it has the final appellate
jurisdiction, matters relating to constitutional affairs, Fundamental rights, Consultative
jurisdiction, Election Petitions, hear any breach of parliamentary privileges. The
Constitution established the Appeal Court as the next-highest Court. Any factual or
legal error that was made by a court of first instance, tribunal, or other judicial institution

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may be corrected by the appellate court. Any order, judgment, or decree may be
upheld, overturned, corrected, or modified by this authority (Ranasinghe, 2010).

The High Court presently has two judicial functions. High Courts that have both
criminal and commercial jurisdictions. The High Court has the authority to handle
original criminal jurisdiction trials. District Courts have unrestricted original civil
jurisdiction. This court hears cases involving money, revenue, trust, bankruptcy,
commercial matters, and family matters such as divorce, adoption, and child custody,
among other things. The magistrate court has basic criminal summary jurisdiction and
investigates offenses. The Judicature Act allows for primary court adjudication in
cases where the debt, damage, demand, or claim does not exceed Rs. 1500.00
(Centre for Policy Alternatives, 2020).

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 Supreme court

Court of appeal

High court

Chancery Queen’s bench

Family devision
division division

Divisional court of the High court

Crown court
Bankruptcy Supervise
Magistrate appeal
appeals tribunals

Magistrate court

Country court

Figure 3: Court structure of UK

(Author developed based on, Justis Publishing, 2009)

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The court system in England and Wales is divided into five levels: the Supreme Court
(formerly the House of Lords) and the Judicial Committee of the Privy Council, the
Court of Appeal, the High Court, the Crown Court and County Courts, Magistrates'
Courts, and the Tribunals Service (Justis Publishing, 2009).

The County Courts handle the bulk of civil court issues. Each court has an
Enforcement Agent assigned to it to execute orders and collect money. A deputy
district judge, district judge, or circuit judge hears cases. Circuit judges are higher-
ranking judges with broader jurisdiction than district courts. Magistrates' courts deal
with civil concerns such as family matters and non-payment of council tax. Appeals
are made to the Crown Court or to the High Court via 'case (Thomas and Mcgourlay,
2020, pp.17–25).

The High Court is divided into three sections: Chancery, King's Bench, and Family.
The chancery section handles estates of the deceased, bankruptcy, copyright,
guardians, land sales, partnerships, patents, registered designs, and trademarks. It
also hears situations that cannot be heard in County Court, such as high-value
possession or personal injury claims. Some county court appeals are forwarded to the
High Court, primarily appeals from hearings rather than trials (Sueur, 2004).

The Court of Appeal considers appeals from county court and High Court judgments.
The Royal Courts of Justice in London hear cases. The hearing is normally attended
by three judges. In almost all circumstances, permission is required to file an appeal.
In most situations, the court whose decision is being appealed can grant authorization.
The Court of Appeal can also give permission. Only if specific criteria are met will the
Court of Appeal grant permission to appeal. The Supreme Court is the final appellate
court, hearing appeals on 'points of law' (wide public problems) in both criminal and
civil cases. Ordinarily, cases are heard by five law lords (Lords of Appeal in Ordinary),
though this number might change (HM Courts & Tribunals Service, 2020).

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6.0 Business Law

6.1 Contract law

An agreement between two or more people (individuals, businesses, or other

institutions) about the sale of products, the supply of services, or the exchange of
interests or ownership is governed by a system of laws known as contract law. A
crucial component of preserving business ties and safeguarding a firm is contract law.
Understanding what constitutes a valid contract and the repercussions of breaching
one can help the business stay on track and avoid legal problems (Cooper, 2021).

Some example cases of contract law are given below,

Rose and Frank Co vs. Crompton and Brother Ltd (1925)

In the well-known case of Rose and Frank Co vs. Crompton and Brother Ltd (1925),
the House of Lords highlighted legally binding agreements. In this case, the Court held
that the fact that the arrangement between the parties to the case does not constitute
a legal contract does not preclude the orders and acceptances from constituting legally
binding contracts. As a result, the lack of enforceability of a legal arrangement
expressed in an agency agreement does not preclude legal transactions.

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Phillips vs. Brooks (1919)

In the case of Phillips vs. Brooks, Judge Horridge of the King's Bench Division was
asked whether a mistake in identifying an essential of a contract automatically renders
the contract void (1919). While ruling in favor of the defendant, the Court noted that
the claimant in the case intended to sell the ring to the man in front of him, implying a
face-to-face contract, whomever that man turned out to be. As a result, no relevant
error could be extracted from this case. Because the property had passed to the rogue,
the claimant in the case was not entitled to the ring.

6.2 Company law

Company law is the corpus of legislation that regulates the rights, relationships, and
behavior of individuals, companies, organizations, and businesses. It is often referred
to as business law, corporate law, or enterprise law. Business law is a term used to
refer to the body of law that deals with issues that directly relate to a corporation life
cycle. Corporate law exists to protect everyone, not just the major players in an
organization, which is why it includes provisions for worker rights. Understanding what
rights and benefits employees have under the law is critical for avoiding internal
conflicts (Kraakman et al., 2017).

Apple vs. Samsung Electronics

Apple sued Samsung in 2011, claiming that Samsung's smartphones copied various
patented design features of the iPhone, such as the black rectangular front face with
rounded corners and the grid of sixteen colorful icons on a black screen. Eventually,
the jury ruled in favor of Apple. The jury initially awarded Apple more than $1 billion.
This amount was later reduced to $399 million in a damages-only retrial, representing
Samsung's entire profit from the infringing smartphones.

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Stella Liebeck VS McDonald’s restaurant (1994)

Stella Liebeck, 79, of Albuquerque, New Mexico, purchased a cup of coffee from a
McDonald's drive-in. She took a cup of coffee and placed it between her legs. She
spilled the cup all over her lower body, resulting in third-degree burns on this area.

Despite the fact that there was a warning sign on the cup of coffee indicating that it
was hot, the jury decided that Liebeck is responsible for 20% and McDonald's is
responsible for 80%. The court ruled that this sign was too small. Liebeck received a
$200,000 compensatory award and a $2.7 million punitive award. These damages
were eventually reduced. This decision was challenged by both parties. Later, the
parties agreed to settle out of court for less than $600,000 in damages.

6.3 Employment law

Employment law is that part of the law that deals with the rights, obligations, and
responsibilities that arise from the employer-employee relationship. Wages, workplace
safety, discrimination, and wrongful termination are all covered by employment laws.
Employment solicitors typically represent either employers or employees, but rarely
both. Employee representatives may work with unions or directly with employees to
file lawsuits against employers or negotiate settlements for a variety of grievances
(Ben-Ari, 2021).

Some example cases of employment law,

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Brownson vs. Honda of Canada Mfg., 2013

Brownson filed a claim for wrongful dismissal after being fired without cause during his
participation in Honda's investigation into workplace misconduct. Honda sought to
have the claim dismissed on summary judgment, arguing that Brownson had been
given an adequate period of reasonable notice. The Court disagreed, stating that it
was "a triable issue whether the employer intentionally adopted the [without cause
termination] to sidestep the criteria for fair treatment of an employee against whom a
cause is alleged." While the case must be tried, there is a suggestion here that an
investigation may be unavoidable even if the terminated party is given reasonable
notice.

General Motors of Canada Limited vs. Johnson, 2013

Johnson filed a constructive dismissal lawsuit against General Motors, claiming that
the company's inadequate investigation into his complaints of racism had resulted in
a toxic work environment. Following a trial victory, the Court of Appeal reversed the
decision, emphasizing that it is not the plaintiff's subjective assessment of workplace
conditions, but rather that of an objective reasonable bystander, that is relevant in
determining whether a poisoned work environment exists. While this is not new law,
this case serves as a good reminder of the applicable test to use when determining
whether harassment and discrimination claims are valid.

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Corr vs IBC Vehicles (2008)

In this case, the employee was seriously injured at work. As a result of his injuries he
suffered from post-traumatic stress disorder. He became depressed and, six years
after the accident, he committed suicide. Prior to his death, he commenced
proceedings against IBC Vehicles for his physical and psychological injuries. His wife
was substituted as claimant after his death. The employer accepted that the accident
involved a breach of the duty owed – the duty to take reasonable care not to cause
him both physical and psychological injury. The dispute centered on whether a claim
under the Fatal Accidents Act was possible given that the employee took his own life.

The House of Lords held that the employer owed Corr a duty not to cause him physical
and psychological injury. Further, it held that he would not have committed suicide but
for this injury. Depression was a foreseeable consequence of the injury and this illness
impaired his capacity to make reasoned and informed judgment about his future.
Accordingly, a claim for damages for Corr’s death, under the Fatal Accidents Act, was
possible because the deceased was not unreasonable

7.0 Impact of law on business

Business is an important aspect of life, and in order for it to operate in a disciplined

manner, there needs to be some sort of law. The legal system has a significant impact
on business (Cheeseman, 2004). This goal inspired the creation of business law.
Businesses in the modern world are required to operate within the bounds of the law
and governmental regulation. In addition to preserving competition, business rules
were created to safeguard consumers. Various administrative levels of the
government are responsible for enforcing these laws. Any business that violates these
laws will pay fines, face penalties, and possibly even cease operations. Understanding
business laws is crucial for running a firm successfully (Dixon et al., 2006).

26 | P a g e
The principal body of law is the Company Act of 2006, which was adopted by the
British Parliament. With almost 1300 parts packed into 700 pages, it is the UK's longest
Act in recorded history. The new Corporation Tax Act of 2009 replaced the Act. The
Act is significant because it intends to modernize and simplify company law while
codifying the responsibilities of company directors, enhancing shareholder rights, and
reducing the administrative burden faced by organizations doing business in the UK.
The act is important because it moves the director's responsibilities from section 171
to section 177 (Collison et al., 2014).

However, the directors do not place enough emphasis on their duties, which has a
significant detrimental effect on the economy and the rate of the company's growth.
Directors' primary responsibility is to act within their authority. The director is needed
to do the duties that are expected of them. Section 171 of the Company Act of 2006
states this. Independent judgment is the next obligation. The director must exercise
their authority without being swayed by others in order to fulfill their fiduciary duty. In
the case of Fulham Football Club Ltd. v. Cabra Estates plc, when the directors failed
to use their authority, this responsibility was exemplified.

The protection of both employers' and employees' rights is vital when discussing
employment law. Additionally, it establishes obligations for companies toward their
workers. It is a law that establishes statutory rights to adoption or paternity pay and
leaves, as well as paid maternity leave. Additionally, it serves as a tool for amending
the Employment Tribunals Act of 1996 and implementing legal processes in the case
of employment disputes. The law also provides for the creation of compromise
agreements. Additionally, it helps to amend the Employment Rights Act of 1996's
clauses relating to fixed pay and working hours (Painter, Holmes and Oxford University
Press, 2015).

The importance of contract law is that it requires employers to create legally

enforceable contracts when they offer employment to candidates. Terms and
circumstances that are significant and advantageous to both employers and
employees must be included in the contract. This need could be connected to the
working hours, responsibilities, job duration, appraisal standards, working hours, and

27 | P a g e
obligations, as well as the grounds and requirements for expulsion. In case of contract
violation, penalties are also included (Mckendrick, 2014).

8.0 Effectiveness of the legal system in recent reforms and development

8.1 UK’s Dissolution and Calling of Parliament Act, 2022

The Fixed-term Parliaments Act of 2011 was repealed by the Dissolution and Calling
of Parliament Act of 2022, which restored the previous constitutional order by reviving
the monarch's prerogative rights to dissolve and call parliament. This restored the
prime minister's ability to call a general election at a time of their choosing because
the monarch uses this power at the prime minister's request (Parkinson, 2021). The
Fixed-term Parliaments Act 2011 (Repeal) Bill was the initial name of the legislation. It
was formally introduced during the 2021 State Opening of Parliament, received its first
reading on May 12, 2021, and was granted royal assent on March 24, 2022. Michael
Gove, the Duchy of Lancaster's Chancellor, made the introduction (parliament.uk,
2022).

This Act fulfilled the Government's manifesto promise to abolish the Fixed-term
Parliaments Act. In response to the Supreme Court of the United Kingdom's finding
that the 2019 prorogation was illegal, the Act includes an expulsion provision that tries
to ensure the non-justiciability of the reinstated prerogative powers. This could
preclude the courts from issuing judgements on the Sovereign's ability to dissolve
Parliament (Wilson, 2021).

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8.2 UK’s Trade Act 2021
The Trade Act 2021 is a United Kingdom Parliament Act that makes provisions for the
implementation of international trade agreements. The Secretary of State for
International Trade, Liz Truss, brought it to the House of Commons on March 19, 2020,
and Lord Grimstone of Boscobel introduced it to the House of Lords on July 21, 2020.
On April 29, 2021, it gained royal assent (UK parliment, 2021).

The Act was intended (as was the previous bill) "to make provision for the
implementation of international trade agreements; to make provision for the
establishment of the Trade Remedies Authority and the delegation of functions to it;
and to make provision for the collection and disclosure of trade-related information."
(Department of international trade, 2021).

8.3 Inland Revenue (Amendment) Act No 45 of 2022 of Sri Lanka

Honorable Mahinda Yapa Abeywardena signed the certificate on the Inland Revenue
(Amendment) Bill, which was passed by a majority of votes in Parliament after a
debate on December 19, 2022. The opposition called a division following the debate
on the bill's second reading, which took place on December Ninth, 2022. As a result,
the Bill received 83 votes in favor and 41 votes against it. The Opposition called a
division for the Third Reading of the Inland Revenue (Amendment) Bill, which received
79 votes in favor and 36 votes against. As a result, this bill comes into effect on the
19th of December 2022 as Inland Revenue (Amendment) Act No. 45 of 2022
(Parliament of Sri Lanka, 2022).

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8.4 Sri Lanka’s Industrial disputes (amendment) act, no. 24 of 2022

This is an act provide special provisions to empower labor tribunals to hear, try,
determine, and dispose of all enforcement proceedings and prosecutions under the
provisions of specified enactments, and for matter connected with or incidental facts
and circumstances. This Act, known as the Industrial Disputes (Special Provisions)
Act, No. 19 of 2022, shall take effect on the date designated by the Minister, in
collaboration with the Minister assigned the subject of Justice, by Order published in
the Gazette (Gazette of the Democratic Socialist Republic of Sri Lanka, 2022).

9.0 Differences in legislation, regulations, and standards

Legislative entities pass laws, executive branch organizations produce rules to carry
out the legislation, and development organizations design and accredit recognized
standards. Different countries have different laws, regulations, and standards. This
can affect the way people do things, and what people are allowed to do. This can be
good or bad for businesses. For example, different countries have different
requirements for registering a business or getting insurance. Also, some countries
have different laws and procedures about taxes and other issues. These differences
can be good if they make it easier to do business in a certain country (Foundation of
Cannabis Unified Standards, 2021).

9.1 Legislation
The original source of law is legislation. They were developed by the national
legislatures and are relevant to every person, corporations, governing entities, and
even national judicial bodies. These serve as the framework for all national laws and

30 | P a g e
are outlined in the green paper of parliament (Mason, 2020). Legislation is clearly
explained in this report on page number eight.

A government or governing body may issue a directive known as legislation that must
be followed by an industry, a segment of a community, or the general public in order
to remain within the legal bounds of that particular country, community, or industry. In
the business world, regulations serve as an external force that all participants must
follow by in order to be compliant. A country's parliament or another legislative branch
of a government passes legislation and makes it into laws. Following the passage of
legislation, regulators, typically government agencies, will review the new rules and
determine how they should be implemented to ensure compliance (Polyas, 2017).

9.2 Regulation
A regulation is a type of delegated legislation. A regulation is a declared law. In the
government, several administrative agencies have limited jurisdiction to regulate
behavior within their purviews. These organizations now have legal authority to make
and implement "regulations." from the word "regulate" from the word "regulate".
Regulations are comprehensive instructions provided by governmental or regulatory
authorities on how laws are to be applied or enforced. Rules and administrative laws
are other names for regulations. They have legal standing, and compliance with them
is required. (Cornell Law School, 2022).

9.3 Standards

Standards give specifications (requirements or recommendations) for products,

services, and systems, which make things work. When used frequently, they ensure
effectiveness, quality, and safety. Legal standards include any law, regulation,
ordinance, code, administrative decision, court order, decree, municipal order,

31 | P a g e
judgment, decision by any government authority, and any legally binding agreement
with any government authority (Schaefer, 2004).

Table 2: Regulations and standards of legislation

(Author developed, 2023)

Legislation Regulation Standard

The Companies Act This law was passed 1. A company cannot be

(No. 7 of 2007) by the Sri Lankan registered with a name that
Parliament. is the same as another
firm's or an international
company that has already
been registered (The
Department of the Registrar
of Companies, 2019).

2. Every business must

maintain accounting
records that accurately
reflect and describe its
transactions
(Wimalarathna, n.d.).

3. A yearly report on the firm's

operations for the
accounting period ending
on the balance sheet date
must be prepared by the
board of directors of each
company within six months
of that date (Wimalarathna,
n.d.).

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Computer crime act, The Sri Lankan 1. Investigations into offenses
no. 24 of 2007 Parliament passed this under this Act will follow the
legislation guidelines in the Code of
Criminal Procedure
(Blackhall, 2019).

2. No interference with the

regular use of computers
(Blackhall, 2019).

3. A person commits an
offense if they direct a
computer to carry out a task
when they know or have
reason to suspect that doing
so would result in the
unauthorized modification or
destruction of any computer.
If found guilty, they might
face either an incarceration
sentence or a fine of no
more than 300,000
(Blackhall, 2019).

Tourism act, no. 38 The Sri Lankan 1. Every appointed member of

of 2005 Parliament passed this the Authority shall hold
law. office for a term of three
years from the date of his
appointment to such office,
and shall be eligible for
reappointment, unless he
sooner vacates office by
death or resignation
(Gazette of the Democratic
Socialist Republic of Sri
Lanka, 2005).

2. The Sinhala text of this Act

shall take precedence over
the Tamil text in the event of
any inconsistency (Gazette
of the Democratic Socialist
Republic of Sri Lanka,
2005).

33 | P a g e
 3. The Minister may designate
another person to fill in as a
member for the duration of
the absence of a member
who is temporarily unable to
perform the duties of their
office due to illness,
absence from Sri Lanka, or
any other reason (Gazette
of the Democratic Socialist
Republic of Sri Lanka, 2005)

10.0 Conclusion
The origins of laws are the binding rules that allow any state to govern its territory.
Common law is the body of law established by judges and other semi-tribunals
through written opinions. Sri Lanka's legal system is based on the English common
law system. Legislation is a broad term that includes laws enacted by Parliaments.
Delegated legislation is legislation enacted under the authority of Parliament.
Customary law is a body of law that defines people's norms, traditions, and rules of
behavior. Common law is based on precedent, or the cause for a decision being
rationally determined. Judges interpret laws by applying certain rules known as the
golden, mischief, and literal.

The House of Commons is told a bill's title and contents at first reading. After
modifications are proposed, they are forwarded to the House of Lords. Parliament is
a unicameral 225-member legislature, with 196 members elected in multi-seat
constituencies and 29 elected using proportional representation. President has the
authority to call, postpone, or end a legislative session. The judiciary is made up of
five institutions - the Supreme Court, Court of Appeal, High Court, District Courts,
Magistrates' Courts and Primary Courts. Civil law deals with disputes about property,
ownership, or a contract; criminal law tackles crimes such as murder and data theft.
A crucial component of preserving business ties and safeguarding a firm is contract
law. Understanding what constitutes a valid contract can help the business stay on

34 | P a g e
track. Directors' primary responsibility is to act within their authority. The importance
of contract law is that it requires employers to create legally enforceable contracts.
Legislation is the framework for all national laws.

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