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Course / Award Pearson BTEC Level 5 HND in Business Management
Unit 7 Business Law_ A2

Student Name Le Minh Loi

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been achieved
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Higher Nationals
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business (Business Management)

Student Name /ID Number Le Minh Loi / 16BM40218

Unit Number and Title Unit 7 – Business Law

Academic Year 2018 - 2019

Assessor Phan Hoai Nam
Assignment Number and Title A2 – Legal solutions to business matters

Issue Date 24 May 2019

Submission Date 1 July 2019
IV Name Ms. Nguyen Thi Toan Ngoc
Date 22 May 2019

Submission Format:

The submission is in the form of an individual report. This should be written in a concise, formal
business style using single spacing and font size 13. You are required to make use of
headings, paragraphs and subsections as appropriate and all work must be supported with
research and referenced using the Harvard referencing system. Please also provide a
bibliography using the Harvard referencing system.

Unit Learning Outcomes:

LO3 Suggest appropriate legal solutions to business problems

LO4 Recommend appropriate legal solutions based upon alternative legal advice provided

Assignment Brief and Guidance:

You work as a solicitor at UKVN Law Firm. Ms. Lien started her own furniture business in
Manchester city and is a client of your Law Firm. Lien wants to seek qualified legal advice from
your company.

Task 1

Ms Lien has just received a compulsory liquidation order from the court. Explain Lien about
compulsory liquidation:
- What is the circumstance of compulsory liquidation?
- How does a company go into compulsory liquidation?
And advise her to solve her case.
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 Task 2

Lien intends to sign the contract with a Belgian Company for sale of furniture and fixtures. The
legal representative of Belgian Company wants to have a dispute settlement provision in the
contract with the content: “in the event of a dispute arising out of or relating to this contract,
including any question regarding its existence, validity or termination, the parties shall seek
settlement of that dispute by mediation in accordance with the LCIA Mediation Rules, which
Rules are deemed to be incorporated by reference into this clause”. Lien suggests that this
provision should be provided in an independent agreement because it is not a term in the
contract. Advise Lien about terms in a commercial contract and mediation process for solving
the disputes.

After the disputes occurred, Lien and the legal representative of the Belgian Company want to
solve their disputes by arbitration. Advise Lien about the legality of new option concerning to
choosing arbitration for resolving their disputes and explain Lien about arbitration process.
Pearson Education 2018
Higher Education Qualifications
Assignment Brief

Learning Outcome Pass Merit Distinctio

n
P4 Suggest appropriate
legal solutions for a range
of business problems e.g. M3 Assess the
LO3 Suggest termination of contract and positive and
appropriate legal liquidation. negative impacts
solutions to business of legal solutions
problems P5 Provide justifications to business
for the use of appropriate problems.
legal solutions D2
Critically
review and
evaluate
P6 Recommend legal M4 Compare and the use of
solutions based upon a contrast the appropriat
LO4 Recommend different country’s legal effectiveness of e legal
appropriate legal system and/or a different these solutions
solutions based legal framework recommendations. in
upon alternative compariso
legal advice n with
provided alternative
legal
advice.

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 STUDENT ASSESSMENT SUBMISSION AND
DECLARATION

When submitting evidence for assessment, each student must sign a declaration
confirming that the work is
their own.

Student name: Le Minh Loi Assessor name:

Phan Hoai Nam

Issue date: Submission date: Submitted on:

24.05.2019 25.06.2019 01/07/2019

Programme:
Pearson BTEC Level 5 HND Diploma in Business (Management)

Unit 7 – Business Law

Assignment number and title:

A2- Legal solutions to business matters

Plagiarism
Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and
students who break the rules, however innocently, may be penalised. It is your
responsibility to ensure that you understand correct referencing practices. As a
university level student, you are expected to use appropriate references throughout
and keep carefully detailed notes of all your sources of materials for material you have
used in your work, including any material downloaded from the Internet. Please consult
the relevant unit lecturer or your course tutor if you need any further advice.

Student Declaration

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the
consequences of plagiarism. I understand that making a false declaration is a form of
malpractice.

Student signature: Date:01/07/2019

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 Achievement Summary
Pearson BTEC Level 5 HND Diploma Assessor
Qualification Phan Hoai Nam
in Business (Management) name
Unit Number Student
Unit 7: Business Law
and title name
Achieved?
Criteria To achieve the criteria the evidence must show (tick)
Reference that the student is able to: First IV
Rework
attempt Check
Suggest appropriate legal solutions to business
LO3 problems

Suggest appropriate legal solutions for a range of

P4
business problems e.g. termination of contract and
liquidation.

P5 Provide justifications for the use of appropriate legal

solutions.

M3 Assess the positive and negative impacts of legal

solutions to business problems

Critically review and evaluate the use of appropriate

D2
legal solutions in comparison with alternative legal
advice

LO4 Recommend appropriate legal solutions based

upon alternative legal advice provided

Recommend legal solutions based upon a different

P6
country’s legal system and/or a different legal
framework.

M4 Compare and contrast the effectiveness of these

recommendations.

Critically review and evaluate the use of appropriate

D2
legal solutions in comparison with alternative legal
advice

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Higher Nationals - Summative Assignment Feedback Form
Student Name/ID Le Minh Loi / 16BM40218
Unit Title Unit 7 – Business Law

Assignment Number A2 Assessor Phan Hoai Nam

Date Received 1st
Submission Date 25.06.2019 submission
Date Received 2nd
Re-submission Date
submission
Assessor Feedback:

Grade: Assessor Signature: Date:

Resubmission Feedback:

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

IV Signature & Date:

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Contents
Introduction ................................................................................................................................ 8

Task1 .......................................................................................................................................... 9

LO3: SUGGEST APPROPRIATE LEGAL SOLUTIONS TO THE BUSINESS PROBLEMS.

.................................................................................................................................................. 10

P4. Suggest appropriate legal solutions for a range of business problems that include
termination of a contract, rescue from liquidation and insolvency ...................................... 10

P5. Provide justifications for the use of appropriate legal solutions.................................... 10

Task 2 ....................................................................................................................................... 11

LO4: RECOMMEND APPROPRIATE LEGAL SOLUTIONS BASED UPON

ALTERNATIVE LEGAL ADVICE PROVIDED. ................................................................. 13

P6. Recommend legal solutions based on a different country’s legal system and/or a different
legal framework. .................................................................................................................. 13

Conclusion ............................................................................................................................... 14

References ................................................................................................................................ 15

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Introduction
This report covered the law that is applied to the company how they actually act. This
report is done in several parts. In one part there are explanations of various sources of
business law that are important for Ms. Lien's company. The other part contains the
law act in real life of an employee also to the company. There is another part which
contains explanation of the governmental part in law making and also explanation of
regulation about which the fresh industry should be informed about. Also it contains
explanation and evaluation probable consequences of the guidelines that runs
business.

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Task1
Ms Lien has just received a compulsory liquidation order from the court.

What is the circumstance of compulsory liquidation?

Compulsory liquidation is the normal process for a creditor (someone owed money) to
use to force a company into liquidation – in an effort to make it pay back the debt. It
can also apply to limited liability partnerships in the same way as limited companies.

Compulsory liquidation is controlled by the UK Courts and usually it means an unpaid

creditor has asked the Court to issue a winding up order against your company
because they have not been paid. At the Court hearing, if the judge agrees and the
company is forced into liquidation, the Official Receiver (a civil servant) will be
appointed as the initial liquidator.

Most compulsory liquidations are made for unpaid tax debts on the application of HM
Revenue and Customs.

How does a company go into compulsory liquidation?

The process starts when a winding-up petition is presented at court. The presentation
of a winding-up petition has serious consequences for a company.

The petitioner is often a creditor of the company. However, the company itself, its
directors and various other categories of people can seek to have a company put into
compulsory liquidation. The most common ground for winding up a company is that it
is unable to pay its debts.

The petitioner serves a copy of the petition on the company, and must, in due course,
give notice of the petition in the London Gazette.
There will then be a hearing in court at which the company has an opportunity to
oppose the petition. The judge may make a winding-up order, or may dismiss or
adjourn the petition.

The following are some ways to help Ms.Lien resolve the company's case

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LO3: SUGGEST APPROPRIATE LEGAL SOLUTIONS TO THE BUSINESS
PROBLEMS.
P4. Suggest appropriate legal solutions for a range of business problems that
include termination of a contract, rescue from liquidation and insolvency
Negotiations with the creditors: The negotiations with creditor is an important thing. If
this goes failed it can be the cause of the abolishment of the company. These means
you have some cash but you cannot fulfil the payment of the creditors you start the
negotiations. These terms can be like these
 New payments terms
 Payoff less amounts

Cash-flow payments: The problems that causes the cash-flow payments can be
resolved. Some things needs to be take into account like:
 Cutting off the extra expense
 Raising finance from the company resources
 Restructuring the debt
 Financing through invoice

CVA(Company Voluntary Arrangement): To avoid the winding up petition from

the creditors the company voluntary agreement is used. CVA is basically buying up
some time from the creditors. With this buying time the company tries to come to a
solution and also keep themselves restrain from winding up. But if the failed the
creditors don’t need the petition to sell the assets of the company.
Sometime the creditor do not wants to come to a negotiation and they claim the
business to be winding up.
P5. Provide justifications for the use of appropriate legal solutions.
Creditors of the corporation wants to winding up the company due to failure of the
repayment of the debt. But the company didn’t want to winding up then. So the
company can take these suggestion
 Negotiations with the creditor
 CVA (company voluntary arrangements)

The CVA and the creditor’s negotiations both are suggestions for avoiding winding
up. But in this case creditor’s negotiation may not be the appropriate solution.

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Because the creditors wants to winding up. So, Company voluntary arrangements is
the best choice as it covers both the company and creditors matter similarly. The CVA
act is way such as, some assets are given to the creditors to buy sometime from them
and then to repay the loan they borrowed. But a failure in this results the assets to be
sold to the creditors. So the company keeps alive as it does not wind up immediately
and the creditors who were very high calm down a little bit (Weisgard, 2003).
The creditor’s negotiation also an option. But company need to be in a good position
to be in a bargain. But that’s something is very unusual. That’s why it the second best
option.

Task 2
In Ms.Lien case
When she is involved in a contractual dispute, the process for resolving the dispute
should be set out in the contract itself.
If the contract is silent on the point and she can’t resolve your dispute, she will have to
use the courts. This can lead to disagreement about which courts have jurisdiction, so
it is important to include clauses dealing with both governing law (what law applies)
and jurisdiction (which courts can decide a case) in her contract.

‘Alternative dispute resolution’ refers to using mediation and/or arbitration as an

alternative to the courts for resolving contractual disputes. These should also be
included in the contract. Parties often hope that these procedures will resolve conflicts
more quickly and possibly with less cost. Depending on the complexity of the dispute,
the costs might not be much less, but the process could take less time than it would in
the court system.
Mediation
Instead of stepping into the decision-making role, mediators act as facilitators. They
provide the parties with guidance to help the parties come to their own decision –
rather than force a decision on the parties. This approach can preserve, and possibly
repair, relationships between parties that may need to work together following the
dispute. This can be chosen as the first step in resolving a dispute, and the parties can
set timelines to limit the amount of time spent in a futile mediation. If the dispute is

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 not resolved within those time periods, a party can decide to move to arbitration (or
the courts, if the contract does not provide for arbitration).
Arbitration
In Belgium, arbitration is considered an alternative dispute resolution
method. Litigation in court can be avoided if parties agree to appeal to an Arbitral
Tribunal in order to resolve their differences. Arbitral tribunalsin Belgium are
composed of one or three persons, also called arbitrators. Arbitration in Belgium can
occur in contractual or other types of relations between two or more parties. In order
for arbitration to be possible both or all parties must agree through an arbitration
agreement.
Rules of arbitration in Belgium

Arbitration in Belgium is done based on the Law of Arbitration and it follows few
general rules:

 - both or all parties are treated equally;

 - parties autonomy is respected;
 - local courts are not allowed to intervene in arbitration cases;
 - parties can decide on the best approach for the arbitration process;
 - the arbitration procedures will be confidential and flexible.

Arbitration proceedings in Belgium

The first step towards arbitration in Belgium is to make a request for arbitration. The
request will contain the following:

 - identification data, function, address, telephone number, name of the company

and VAT number of all parties involved;
 - the function and address of the claimant’s representative or representatives;
 - the reason and the nature of the claim;
 - a declaration of the desired financial claim;
 - all relevant information that can help in the arbitral tribunal’s decision;
 - where the arbitration will take place, the language and the laws the arbitration will
be done under.
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The second step will be submitting the request and all relevant documents for
the arbitration with the secretariat of CEPANI (The Belgian Center for Arbitration
and Mediation). Copies of the request and all documents submitted will be distributed
to the arbitrators.

The arbitration will begin once all the documents are submitted with the secretariat and
the arbitration fee has been paid. The respondent will then respond to the claim and file
a counterclaim.

Once the Belgian arbitration tribunal receives all relevant documents it will send to
all involved parties all the written notifications and communications.

LO4: RECOMMEND APPROPRIATE LEGAL SOLUTIONS

BASED UPON ALTERNATIVE LEGAL ADVICE PROVIDED.
P6. Recommend legal solutions based on a different country’s legal system and/or
a different legal framework.
In case of another country there will be different scenario. If we think about the south
Asian like India, Bangladesh, Pakistan etc. the total situation will be different. If there
is a sudden fall in the company’s profitability or a big loss the situation will be no the
same. In this case if the company wants to cut down the real salaries or the
commission there will be strike in the organization. The trade union will also support
them. In the south Asian countries it is very much normal to be in a strike (H. Sato
(Editor), 2008).
The south Asian countries employee don’t try to know about the company’s problem.
They just think about themselves. If the company is running in a hardship they do not
sacrifice any of their salaries or commissions. Sometimes the miss use the power of
their trade union which is against the company.
But this is not a proper legal framework. The employee should be able to understand
the problems of the company and share with the company’s hardship.

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Conclusion
Law is created to keep the associated things in a discipline also in order. Business law
is also created for to keep the business in order. Therefore there are rules to do
business. If any of the rules are not maintained the business can be called illegal. Laws
are created to follow and the government of a country or the legal authority of a
country are there for those have violated the law. Business law is the law that a
company should follow. Whenever the law is not maintained the case law is
introduced and start its work. If the authority do not maintain the law the stakeholders
face problems for this. That’s why every company and organization should follow the
law.

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References
Firm, K. L. L., 2019. Arbitration in Belgium, Belgium: s.n.

H. Sato (Editor), M. M. (., 2008. Globalisation, Employment and Mobility: The South Asian
Experience. 1st ed. s.l.:Palgrave Macmillan.

Rahman, F., 2017. HOW CAN A CONTRACT DISPUTE BE RESOLVED?, s.l.: s.n.

Weisgard, G. M., 2003. Company Voluntary Arrangements. 1st ed. s.l.:Jordan Publishing
Limited.

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