Business Law (BL)

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Unit07/ BUSINESS LAW

(BL)
(BM 33)

Acknowledgement
Ms. Salmah Kaleel, my business law (BL) lecturer, deserves special respect, which
directed me through business law assignment and supported me in attaining future
plans, as a result of which I learned a great deal. Finally, I'd want to communicate my
thankfulness to my friends from the Bcas family.

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Unit07/ BUSINESS LAW
(BL)
(BM 33)

Table of Contents
Acknowledgement..............................................................................................................................1
LIST OF FIGURES.............................................................................................................................2
LIST OF TABLES................................................................................................................................2
LO1.......................................................................................................................................................3
TASK O1..............................................................................................................................................3
1) Introduction to Law’.................................................................................................................3
2) Legal system............................................................................................................................3
3) SOURCES OF LAW...............................................................................................................4
4) Role of government in law-making.......................................................................................7
5) Reforms in Srilanka................................................................................................................9
LO2.....................................................................................................................................................11
TASK O2............................................................................................................................................11
1) Introduction to the business.................................................................................................11
2) Types of laws and how they affect the business?............................................................11
a) Contract law (general)..........................................................................................................12
b) Data protection law (general)..............................................................................................12
D) Intellectual Property Law (general)........................................................................................13
c) Employment law (general)...................................................................................................13
d) Anti –discrimination law and Equal Opportunity law (general)........................................14
e) Consumer protection law (general)....................................................................................14
Different between the impacts of legislation, regulation and standards................................15
Conclusion.....................................................................................................................................20
References...........................................................................................................................................21

LIST OF FIGURES
Figure 1 - SOURCES OF LAW..................................................................................................................4
Figure 2 -Role of government in law-making..................................................................................7
LIST OF TABLES
Table 1 - Differences between common law and statutory law............................................................8
Table 2 – Regulations...........................................................................................................................17
Table 3 - Why standards are important?.............................................................................................18
Table 4 - ISO STANDARDS....................................................................................................................19

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Unit07/ BUSINESS LAW
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(BM 33)

LO1 Other legal systems include the jury


system, which is used to verify the
facts in a lawsuit. The tax system is a
TASK O1 system of laws for taxation and
collection. The electoral system is a
1) Introduction to Law’ system of laws for democratic
LAW AND IT’S PURPOSE judgments. (Alvendia, Kelly &
Demarest LAW FIRM, 2020 )
The term "law" refers to a set of
regulations that governs formal human The common law and civil law
activities and behaviors in a systems are two primary ‘families' of
community legal systems.

Or country. Every community should a) Common Law - Common law is


be governed by a set of rules. It is the formed from judicial judgments
citizens of a country's responsibility to rather than statutes. Though the
respect and obey the law. majority of common law is noticed
at the state level, there is a short
The law's basic objective is to govern section of federal common law that
human behavior and provide justice in
includes rules taken and followed
order to safeguard people's lives, by federal courts in the absence of
rights, and property. Law is also
a governing federal act. (Cornell
essential in a state to maintain order, Law School, 2020)
resolve conflicts, and define standards.
One example of common law in
2) Legal system operation today is indeed the
The legal system includes the laws, concept of common-law marriage,
practices, and structures that allow for which grants couples who are just
both public and private operations. not legally married comparable
This is a method for monitoring and rights to those who have a
applying laws. marriage license if certain
situations are satisfied. Due to the
It observes the rights and
fact that a common-law marriage is
requirements in many ways. Civil law,
never legally documented, the
common law, and religion law are the
couple could be required to show
world's 3 primary legal systems. A
the reality of the marriage contract
legal system's goal is to maintain
if forced. They will need to show
citizens' rights as well as their laws
that they stayed together as
and rights. It also provides order and a
husband and wife and showed
means of conflict resolution.
themselves as a married pair in
public. A common-law marriage is

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Unit07/ BUSINESS LAW
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(BM 33)
as legal as a traditional marriage laws is referred to as legislation. This
where it is accepted. (National is the highest level of legal authority.
Paralegal College, 2003 - 2021)
Every state has a governing body or
b) Civil law organization in charge of making
Civil law refers to the part of a legislation. In both the United Kingdom
country's legal system that deals and Sri Lanka, Parliament is the
with citizens' private lives, such as highest legislative body. They are
marriage and property ownership, referred to as Acts of Parliament,
than a major crimes. Statutes, and Ordinances. Legislation
Civil law is formed on the laws of is law which has been approved by the
ancient Rome that formed a legislature.
structure focused on concepts that
Example -: The Companies Act of
would correct wrongs or settle
2006 is the most important legislation
conflicts in a peaceful rather than
governing company law in the U.k. The
harsh manner. (Anon., 2022)
Act's key purpose are to upgrade and
Example -: Murder, Violence, drink clarify company law, regulate directors'
driving, Terrorism, Wrongful responsibilities, provide shareholders
termination, carelessness causing rights, and minimize burden raised by
harm or death and damage to UK businesses. (Anon., 2015)
property are also few examples.
Subordinate Legislation - Law passed
3) SOURCES OF LAW by another person or authority but
subject to the legislative authority of
A) Legislation
parliament is known as subordinate
legislation.

Example -: President's emergency


regulations, Supreme Court
judgments, Ministerial directives and
regulations, and Local Government
Authority bylaws are examples of
subordinate legislation.

B) Case Law
Case law is the law found in court
decisions. Judges' decisions in
individual instances are applied by the
Figure 1 - SOURCES OF LAW other courts in following instances
through tradition. When the material
facts are the same, previous superior
Legislation is law approved by court judgments bind future or lower
Parliament. The process of making courts.

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Ex-: Stacy, a tenant in Martin's duplex, wrongdoings, such as theft or violence,
made a formal case against him, is also discussed by customary law.
saying that he did not give her enough
notice before raising her rent, using a Stock theft is an example of customary
new state law involving a total of 90 law that has been stated by statute.
days’ notice. Stock theft may no longer be handled
According to Martin, the new under customary law, according to a
regulation partly affects landlords of 1991 decision by Parliament. The
large multi-tenant property. When the restriction against acting with stock
state court knowing the case checks theft using customary law was lifted by
the law, he notices that while it refers Parliament in 1993. The restriction
large multi-tenant properties in against acting with stock theft using
passing, it is uncertain if the 90-day customary law was lifted by Parliament
period relates to all landlords. in 1993.
Based on the facts of Stacy's case, the This means that regular authorities or
judge determines that all landlords general courts can deal with stock
must conform to the 90-day notice theft. (Anon., n.d.).
period and rules in her favor. ( Content
Team, 2016) D) Religions
C) Customs When people were not educated,
Customs and usages are the earliest heavenly rules were utilized to
source of law and historically had the establish order and control in society.
most importance, but their importance People believed that disobeying these
has decreased as legislation and prohibitions would bring heavenly
judgment have gained in importance. punishment. As a result, religion has
Our courts have recognized local become a legislative source. As a
fishing community customs as law. result, religion is now used to legislate.
Gemologists are those who work in the Many countries' legal systems are still
gemming sector. based on religion.
Purpose of this law -: They can Purpose of this law -: According to
describe native cultures' and local (Nowaczyk, 2021) religious law
communities' rights and obligations in advises individuals on what they
key areas of their lives, cultures, and should think and how they should
worldviews: Custom law can cover behave, while society concerns our
topics like resource use as well as external activities and how they
accessibility, land rights and duties, influence others. These can frequently
succession and ownership, and interact. Many religions, for example,
spiritual development conduct. (world teach that life is sacred and that killing
intellectual property organization , n.d.) should be avoided.

Ex-: Marriages and divorces are Ex-: Religious law involves religious
handled according to customary law. traditions' set of ethical standards...
Compensation for different Jewish halvah, Islamic law, Christian

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Unit07/ BUSINESS LAW
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canon law (applied within a larger Ex-: The law of trusts is a well-known
religious perspective in the church, but example of equity in action. When one
different from civilian state law in person held legal title to a property, but
contemporary times), and Hindu law the courts judged that it was fair, just,
are examples of spiritually based legal and equitable for that person to use
systems. (Anon., 2016) the assets for the benefit of another,
E) Opinions of writers trust formed as an equitable addition to
Writers' opinions are gaining property law. (Anon., 2019)
recognition in Roman-Dutch law, but
not so much in English law. When a
G) Treaties
court cannot identify a particular Treaties and gatherings are written
decision, it may trust on the writers' agreements that countries accept and
interpretations of the law. It will be a approve legally and must respect to.
yet another source for specific aspects They can only be executed by parties
of Roman Dutch law. Courts, but at the who have been approved. Agreements
other hand, are not required to follow are used for a number of different
the writer's advice. purposes. Others are less political, but
they affect private parties through
F) Equity
government-to-government or
The “equity" refers to a sense of moral government-to-government
rightness. When a case is brought to a agreements. In many countries,
judge's attention, which may fall international law is immediately
outside of the reach of present adopted into national law.
legislation, or that maintaining old laws
In other words, after a state accepts an
may not be enough to satisfy the
international agreement, it becomes
expectations of justice or equality
national law. International law does not
when there is no single law that may
immediately become part of a
be applied to the situation.
country's domestic legislation if it has
In such cases, the judge must reach been approved by other countries.
his decision based with his own sense
Purpose of this law -: They help to
of justice. This is equity.
meet a fundamental requirement of
Purpose of this law -: Equity generally Governments to govern topics of
indicates a separate method to legal legitimate concern by agreement, so
arguments in a mainly legislation area bringing stability to their effectively
of law, having a greater role for judges achieve.
in the legislative process and a rapid
Ex-: The Treaty of Paris was signed
legal power to a set of values and
in 1783
beliefs that are believed to be socially
superior to the strict law as written. The Treaty of Paris, signed on
(UNIVERSITY OF PENNSYLAVANIA September 3, 1783, between the
CAREY LAW SCHOOL, 2015) American colonies and the United

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Kingdom, brought a close to the 4) Role of government in law-
American Revolution and legally making
established the United States as a free The executive, legislative, and judicial
entity. departments of government currently
have power for most governments. 
H) Directives
A directive is a policy of general use Legislative -: Sri Lanka's legislature
which is compulsory in terms of the is called the Parliament. This is a
desired outcome but allows member single - participant 225-member
states free to choose how to get there. legislature, having 196 members
Directives normally include a deadline represented through inter districts and
for European Union to adopt them into 29 members chosen through Student
national legislation (usually two years). Votes equal system. Members is
(Anon., 2021) selected for a 5 year term using free
elections. After four and a half years,
Purpose of this law -: A "directive" is a that governor may call, disallow, or
body of legislation that establishes an cancel a legislative meeting, as well as
objective that all European members dismiss Parliament. The legislature
must meet. Individual countries, on the maintains the authority to establish all
other hand, must design their own laws. The Prime Minister, the
laws to achieve these objectives. president's government official, is the
(Anon., n.d.) leader of the governing party in
government and undertakes several
For example; The EU's consumer
executive responsibilities, primarily in
rights regulation, for example,
domestic issues.
increases consumer rights across the
EU by, among other things, avoiding The Minister Cabinet is in responsible
hidden taxes and prices on the internet of making laws. Each and every
and extending the period during which ministry that expects to pass a law
consumers can reject a sale contract. must first create a Cabinet Statement
(Anon., n.d.) stating the documents of the planned
legislation. The Ministry will participate
to involve when both the Cabinet and
the executive and legislative councils
have agreed the statement in the
formulation of a legislation.

Executive-: Whereas the


Legislature is in charge of making
legislation and establishing the State's
public policy, the Executive is in
charge of executing and upholding
them. It is the government's

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foundational legislation, and all other  In the Justice Court, common and
laws should be understood and carried statutory laws are applied.
out in compliance with it.
Common law-: Common law, often
The President of Sri Lanka is the known as case law, is the body of law
country's head of state, government, that has developed as a result of
and military commanding officer. judgments issued by appeals courts
and judicial authority. Common law is
The Prime Minister of Sri Lanka, which
a procedure law that consists of a
is now the President's successor and
collection of principles that govern
represents that governing party in
court processes in different cases.
Government.
As a result, when a comparable case
In Sri Lanka, the President leads a
arises in the future, the court must
Cabinet of Ministers that is willing to
deliver the same decision as in the
take responsibility to Parliament.
previous instance. Sometimes even a
Judiciary-: The judiciary in Sri court's ruling becomes a new law,
Lanka is made up of courts which which is taken into account in future
analyze and apply the country's laws. court rulings.
The Supreme Court, Court of Appeal,
Statutory law-: A system of
High Court, District courts,
standards and rules of law that really is
Magistrate's courts, and Primary
published in written form and handed
courts make up the whole system.
up by the legislative body to regulate
Judges for the Supreme Court, the
the behavior of the country's residents
Court of Appeal, and the High Student
can be classified as statutory law.
Notes Courts are appointed by the
President. Lower court judges are A bill has become a statutory law after
appointed, transferred, and dismissed it has been approved by the
by a judicial development authority government. To put it another way,
made up of both the Chief Justice and legislation is statutory law.
2 Supreme Court justices.
Because the former can overturn or
Though the Legislative is in process change the latter, statutory law is
of developing laws and deciding much higher powerful than common
governmental policy, the Executive is law.
in process of bringing those laws into
effect and regulating those.
Common law Statutory law.
When any or both these bodies break New laws are created through Those laws are made by
laws, it is the role of the judiciary to the decisions made by judges the government of a
country.
support and develop it. (Informatics
Institute Of Technology, n.d.) Written law passed by the Based on precedent or
legislature or another governing law case;
body;

The judgment to be made in a given issue is dictated by the


common law. Statutory law, on the other hand, creates the
society's best governing principles.
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Statutory law have higher power than common law because
it has the ability to overrule 
Unit07/ BUSINESS LAW
(BL)
(BM 33)
As a result, statutory law could govern Differences between common law and
in the event of a conflict between the statutory law. (Anon., n.d.)
two. Legislation issued by government
Table 1 - Differences between common law and
agencies or parliament is known as statutory law
statutory law. Common law, on the
other hand, is derived from judicial
rulings.

5) Reforms in Srilanka attracting foreign housing


a. The Land (Restrictions on investment.
Alienation ) Act No. 21 of 2018 b. Nation Building Tax
(Amendment) Act No. 20 of 2018
The Land (Restrictions on Alienation)
Act No. 38 of 2014, that prevents the The Nation Building Tax, shortened
granting to any land in Sri Lanka if it as NBT, is applied under the Nation
really is: Building Tax Act No. 9 of 2009,
which took effect on February 1,
 In the case of a visitor from another
2009. The most current change,
country
the Nation Building Tax
 To the business formed in Sri
(Amendment) Act No. 20 of 2018,
Lanka under the Companies Act
was adopted on July 30, 2018 by
that has a foreign ownership of
the respected speaker of
50% or more, either directly or
Parliament.
indirectly; or.
 To a foreign business. The
In addition, the change reduces the
modifying legislation of 2018
amount of time that certain
releases these limitations to some
products are free from taxes, as
level by removing the ban on
well as the delivery of electricity.
foreign shareholders owning 50
However, it disallows some
percent of a listed business at the
innovative goods / processes from
time of free acquiring land. This
import, as follows:
modifying act took effect on April 1,
2018, and was retroactively.
 Water sports non-motorized items.
 Aeronautical equipment and
Given the fact that this restrictions
components that are not operated.
has been eliminated and complex
 Any producer of agricultural
property on any floor can now be
products or plants can apply
purchased, the requirement that
equipment for greenhouse and
final payment for the appropriate
polytunnels, as well as materials for
apartment/ luxury apartment be
greenhouse building.
provided in ahead through an
c. Value -Added Tax (Amendment)
inward foreign transfer has not
Act No. 25 of 2018
adjusted. This is not helpful to

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The VAT (Amendment) Act no. 25
of 2018, which was approved by
the honorable Speaker of
Parliament on August 16, 2018,
revised the Value-Added Tax (VAT)
Act number. 14 of 2002. From that
point forward, the changes were all
in effect. A plan to return tourists
VAT paid in specific conditions
throughout their vacation in Sri
Lanka was one of the key
improvements came about by the
amending act.

The VAT deduction on the supply


of residential housing has been
extended until March 31, 2019, as
per orders from the Ministry of
Finance.

In addition, the change included


additional VAT exclusions for the
import and delivery of the relevant
products and services:
 Infant formula (should be continued
in the same manner as before
November 1, 2016);
 Plants, machinery, or equipment for
the production of sustainable
energy;
 Jewellery produced in the area;
 Except for hospital room expenses,
all healthcare system supplied by
medical centers or fully qualified
personnel.

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LO2

TASK O2
1) Introduction to the business
Dazler Soap Business
I made the decision to begin planning the release of a new soap called "Dazler" to
the market. This business is located near Peradeniya town, and it would be easy for
me to produce the goods for the market.  My business "Dazler" is a limited liability
company. The company is run by two groups of people: me as the owner and the
managing members. In order to increase team spirit and mental wellness, as well as
bring fresh ideas to my company, I will hire exactly 100 people. The management of
the “Dazler” soap business is in the hands of the managing members. My
responsibility as owner and managing member would be to supply experienced
management of the "Dazler" soap business, to properly handle a day procedures of
the "Dazler" soap, and also to supply the best ingredients soap to the market.  There
are 3 segmentations or varieties of "Dazler" soap. They are as follows;

Red color - This soap improves freshness that has been lost due to illness and
aging. Gives skin an instant glow, making it look healthy and perfect. Enhances the
appearance of the skin in a significant degree.

Yellow color - Dust, sweat, and oily skin are cleaned from the skin with these soaps
and face washes, which make it simpler for water to clean them off. They are used to
do this.

Green color - This soap is almost completely Ayurveda. Ginger, sandalwood,


cinnamon, tea tree oil, and other natural agents are used in these soaps. As a result,
these Ayurveda soaps promote keeping the body clean and avoiding skin blemishes.

The above 3 segmentations helps you to avoid skin blemishes, cure rashes, prevent
wrinkles and lines, and reduce dullness etc... Your body needs the best safe, new
feeling you can offer it, and with this wonderful soap, you won't go wrong. Dazler
main target audiences are women between the ages of 15 and 40, to make this soap
more attractively. 

2) Types of laws and how they affect the business?


a. Contract law

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(BL)
(BM 33)
b. Data protection law
c. Employment law
d. Anti – discrimination law
e. Consumer protection law

a) Contract law (general)


Contract law is the system of law that governs the formation and enforcement of
contracts. A contract is a legally binding arrangement that can be enforced by a
court. Contract law controls the formation of contracts, their execution, and the
formulation of a just punishment inside the case of a violation. (Anon., n.d.)

The most important reason for having a contract is to secure your rights when you
make a deal with another party. As an example; if you offer to help someone perform
a job in exchange for money but don't have a signed contract, you can have
problems getting them to pay you. (Anon., n.d.)

Contract law is helpful for my company because it provides the legal safeguards that
we have in any activity. Keeping contract disagreements and lawsuits at distant.
Contracts not just to limit risk, but they help avoid communication and agreement
misleading. Contracts not only make us know our interests and responsibilities below
each agreement, but rather they also safeguard our organization. A signed
agreement is not the main thing that matters in a business deal.

How it going to affect "Dazler" soap business?

As I intend to start a "Dazler" soap company, I believe contract law is supportive to


its success. As I have mention that I will hire exactly 100 people to my company, so
in this case, this one may result in contract law, which would be a legally enforceable
agreement between the employer and an employee. The parties usually write then
approve an employment contract. 

Apart from employees, the people who enter into contract arrangements in my
business where we need contracts are: managing directors, suppliers, personal
assistants, intermediaries, cashiers, etc. By holding some choices under the
agreement, our shareholders can be protected.

Example for contract law that will be used in my business -; When staff receive
negative feedback from consumers, Sometimes workers fail to provide the soap
product on time or even supply it incorrectly due to the type of soap the customer
purchased. When an employee declines to fulfill a work properly.

b) Data protection law (general)


Data protection law generally includes maintaining the correctness of personal data
and staying positive to date; limiting the time personal information is retained;

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handling private data in a transparent way; and maintaining the privacy and clarity of
personal data.

Example -: The Law apply to all organizations that process personal data –
information that may be used to verify a real person, such as names, addresses,
dates of birth, and phone numbers – whether they are public bodies or private
businesses. (Anon., 2022)

Sri Lanka doesn't have a data protection act yet. The constitution of Sri Lanka
maintains the security of people's basic rights, even if it doesn't choose the word
"privacy." Data privacy law is normally issued in the form of bills that recognize data
privacy as a basic right and then detail the methods to protect that right. The lack of
such regulations in Sri Lanka is a big problem. The Computer Crimes Act of 2007
describes all forms of cybercrime in fact, not the protection to data privacy in detail.

How it going to affect my business - Data protection control covers whatever


information our company holds about employees, customers, or current accounts,
and it will likely affect many areas of our company's strategy, including recruitment,
employee document management, sales, and even the gathering of CCTV video.

D) Intellectual Property Law (general)


Intellectual property law focuses with rules to keep and maintain the rights of
creators and owners of "intellectual property," such as ideas, writings, music, art, and
some activities. (Anon., n.d.)

Intellectual property rights can be carried, distributed, or licensed in the same way
that other property rights can. They help the developer or owner of a patent,
trademark, copyright, or other kind of intellectual property to profit from his or her
own contribution. (National Intellectual Property office , 2022)

This helps the property owner to discuss their creations with a specific number of
competitors while also keeping the company image.

 Due to the high level of competition, starting a "Dazler" soap company is not
going to be an easy way to achieve success compared to other soap businesses.
So, in terms of intellectual property, trademarking is a good process because the
trademark registration is active for 10 years from the date of filing or the last
renewal of registration, and it is renew every ten years.
 This can be a key step in keeping our soap company's image. This can stop
competitors from producing our brand in order to steal our customers. This also
gives some security that those Cheaters do anything that harms our brand image.

c) Employment law (general)


According to the Shop and Office Employees (Regulation of Employment and
Remuneration) Act No. 19 of 1954 (SOEA), an employee who works for at least 28

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hours (excluding overtime and rest breaks) in any given week is qualified to one-and-
a-half days of paid vacation in that week or the following week. (Cooray, 2020)

These laws benefit employees by:

 Discrimination must be avoided.


 Encourage good health and security.
 Establish a minimal level of financial assist.
 Confirm that work is not delayed as a result of labor-management disagreements.

This supports basically all the quality of employment contracts. When employers
want to make careful employment judgment cases, they must follow all of the rules.

How it going to affect - In my business "Dazler" soap, Employment contracts


include a number of rules and practices that employer must follow in order to
safeguard its own interests. It also specifies a time limit for employee can perform for
an opponent or in a related field once they quit the business. But, this arrangement
of the law is regularly legally challenged.

d) Anti –discrimination law and Equal Opportunity law (general)


The Sri Lankan Constitution currently protects everyone's right to equal treatment
under the law and equal protection under the law (Article 12). Discrimination on the
basis of race, religion, language, caste, sex, political viewpoint, or place of birth is
also prohibited.

In this business, we need anti- discrimination because if we are charged of abusive


behavior, we may find ourselves in the middle of an important and expensive
lawyer’s case. These rules also safeguard our employees from punishment if they
identify discrimination they've encountered.

Equal opportunity improves the idea that everyone in an organization has an equal
opportunity to obtain for jobs, be trained and/or moved, and have their employment
ended in a fair and equal manner.

In our "Dazler" soap company, we maintain equal opportunity policies, which allows
us to develop many ideas, great attitudes, various abilities, resources, and
experience. Employees would be truthful in their job and happy if they are satisfied
and treated fairly at work. To prevent discrimination, the "Dazler" soap company
must: Guide and motivate all of its employees about what forms discrimination and
we make sure that employees are paid fairly, that workplace misconduct is
prohibited, etc.

e) Consumer protection law (general)


An act, according to Sri Lanka, provides for its regulation of internal trade, consumer
rights, and the development of fair trade practices. But that anything else that's
linked to it or happens to be connected to it. This has the following goals:

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 To provide that customers have goods and services at affordable price wherever
available.
 To protect customers of being given products that are risky and property.
 Consumers will be covered from unfair business actions, and their rights will be
properly considered.
 To face judgment for unfair business acts or other instances of consumer abuse by
traders.

Consumer protection law, often known as consumer law, is a branch of the law that
controls the private law connection among individuals and the companies that
provide them goods and services.

Consumer protection laws are usually created through legislation. These regulations
are meant to keep our businesses from acting in theft or other illegal business
activities in try to win over competition or misleading consumers.

For our Dazler soap company, obeying the rules will help our business avoid legal
issues and inform customers of the prices of the goods it sells. It will also help in
maintaining the company's good name.

Example -: Due to too much chemical ingredient in the new soap you purchased,
your skin gets become allergic. If you read the label, you'll see that the chemical
ingredient isn't as good as it appears on the label. It's made up of a lot of Chemical
ingredients. Consumer protection protects our Dazler soap company's clients from
such situations as I have mentioned above example.

Different between the impacts of legislation, regulation and


standards
Legislation
Legislation is a set of regulations or statutes established by the government on an
industry, a community, or the people of the a country, and that can only be followed
in order to stay inside the legal limits of such a country, society, or industry. It can
also refer to the process of enacting legislation. Statutory law is referred to as
legislation. These laws were enacted by a country's legislative or governing body.

Legislation must needed for my business because Legislation improves employees'


performance by increasing employees' attitudes and confidence in the organization.
Finally, this can promote in the achievement of making Strategies and commercial
objectives.

Different legislation' effects on company's potential

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Tax -: The "Dazler" soap business should put the additional profits money to the
company, because Changes in tax legislation and charges could have a huge
influence on a business’s success.

Customer protection and health and safety legislation -: Employers in the


"Dazler" soap business will do in place strong health and safety legislation as well as
consumer legislation rules that provide a straightforward guidance for the company
to implement. The soap company "Dazler" should have looked about how to execute
these requirements. Succession planning is a key aspect of achieving health and
safety goals. The plan establishes must be implement in order to lead management
to businesses to properly achieve.

As an example, let's imagine that employee theft and overuse of medicines is part
of a bigger problem with the usage of drugs to manage misbehavior. These are
highly significant problems that should be reported to protection methods.

Data protection -: Our "Dazler" soap business must have been maintained
personal at all times, and special care should be used while handling such important
information. For confirm the correct and accurate information is handed on to Basic
maintenance, keep a detailed record of reporting, talks, child's behavior, and
observations. The records has to be up to date and maintained in a protected place.

Employees at the "Dazler" soap company should be extremely careful to changes in


creating soaps and delivering them into the market appropriately, since they may
require support or protection during a covid pandemic. Employees must use its
skilled decision to determine whether the soap product is delivered correctly to the
market or to the consumer.

Regulations and Standards


a) Regulations, sometimes known as "rules," are simply clear requirements on how
laws should be implemented or carried out. Organizations generally normally
subject to laws and should be recognized by one.

These have the legal force and then are granted mostly by government, any
particular minister, or a recognized organization under the administration of a
ministry. Regulations are a method of implementing and executing laws as well
as a guidelines providing regulations based on the law. It was a guideline which
we should respect to.

Consumer rights, health, and safety are all protected by regulations, which
secure that products and services meet limited requirements. They protect the
environment in some industries. Employee rights are also safeguarded by them.
They make sure that the company achieves its objectives in a safe and
appropriate manner. (Grexo, 2016)

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Our "Dazler" soap business must deal with a variety of rules regarding
employment, property rights, security, and other issues. On the one hand,
regulation gives protection while also maintaining that all organizations get
handled equally and give their rightful contribution to community. Overregulation,
on the other hand, can damage company, preventing them from producing selling
products and improve the society.

Our soap company should respect to a few important regulations points:

Emplo
yment law Employment law helps to provide that both employers are treated
as equals. For employees, this allows that the employer does not
(Employment and
discriminate against them, harass them, or fire them without
Remuneration
Regulation) reason. Employment regulations maintain that the employee
keeps to the contract terms.

Srilanka – factories This covers factory building registration and regulation. This law
Ordinance protects factory workers' health by dealing with issues including
(No. 45 of 1942) overcrowding, air conditioning, and lighting. Health monitoring may
be needed in occupations with a high incidence of accident or
disease. This regulates the safeness of machinery, generators,
and, as well as prevents young and female workers from
performing specific tasks.

The Consumer Affairs Authority Act was approved by


Antitrust laws Parliament on the 9th of January 2003. This was made to
safeguard the needs of customers. This helps to improve that
customers are well protected by business and price control, as
well as to protect businesses and reduce prices while maintaining
good reputation which supports competition while protecting
customers from company actions and illegal behavior.

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Insurance Workers compensation insurance must be received as soon as


you hire your first employee. The employee will get medical
treatment and reimbursement for lost wages while injured, while
the insurance company will pay the expenses of any lawsuit the
affected worker takes.

Example -: If your company works with the government or


receives a government-backed loan, you'll be needed to create
proof of certain forms of business insurance.

Environmental We may need to prepare ourselves and business with many


Protection Law environmental protection legislation. This is important if you're
selling cleaning supplies, or anything else that intends to be
natural, organic, or environmentally friendly. Environmental
regulations, which are supposed to safeguard human health and
the environment, sometimes lead to better production costs and
poorer productivity in business, leading them to move investment
and production to less restrictive things. This will lead our “Dazler
soap” in a better way

Table 2 – Regulations

b) Standards generally applied to specify technical details, freeing legislation to


focus on long-term policy goals such as product energy and quality security.

By following this Standard, we display that our company takes its duties seriously.
Standards, on the other hand, are not the similar as rules, and conforming to one
does not indicate that you could be conforming to all legal requirements.
Standards help that products, services, and systems function properly by
establishing key standards (guidelines or requirements). They provide quality,
security, and performance when employed regularly. They can be developed
purposely or decided to make required by company rules, national or international
legislation, or law.

The International Organization for Standardization (ISO) is a non-governmental


international organization comprised of national standards organizations. This is
where standards are created and maintained to protect product quality, security, and
performance.
Why standards are important?

For businesses For consumers

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This is composed of members from many Many performance management standards


national standards bodies and produces a protect quality service users, however
standardization can make life easier for
full selection of intellectual, industrial, and
consumers.
commercial standards.
A product or service that follows to an
By decreasing redundancy, limiting errors international standard would be usable with
or delays, and shortening time to market, more goods or services around the world,
standardization lowers costs. expanding the range of options.

Table 3 - Why standards are important?

Soaps have an interest to maintain quality standards, but in any case, the majority of
soap producing enterprises in the country do not follow proper guidelines. In this
sense, the Sri Lanka Standards Institution (SLSI) was failing to respond
appropriately. The chemical is still being used by some soap manufacturers in Sri
Lanka. Some of these soap products may provide a health risk to children and young
people, and the public is warned to be cautious of soap products that cause such
health issues in children.

According to Sri Lanka, there are a few standards that we must apply in our "Dazler
soap," and it allow companies in reducing risk and growing in a safe future, as well
as providing consumers with the satisfaction  and lead high-quality products and
services.

ISO 9001 ISO 9001 is the greatest actively used Quality Management System
(QMS) standard in the world. Its role is to allow businesses in more
properly meeting the needs of consumers as well as other
stakeholders. This is achieved by forming a system to verify that
goods and/or service are always of high quality. (Dodd, 2021)

OHSAS The OHSAS 18001 Standard is a risk-management and


18001 performance-improvement standard for organizations. By finding
and analyzing the impact and likelihood of dangers in the
workplace, OHSAS 18001 puts a proactive risk management
importance of risk aspects. (Anon., 2022)

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ISO 27001 ISO 27001 is a standard for a system of information security
management (ISMS). An ISMS is a set of rules and practices that
covers all legal, physical, and technical controls in a company's
information risk management processes. This will let you show
strong security standards, which will help you improve working
relationships and maintain existing clients, but it will also provide
you a marketing advantage over your competition. (TechTarget
Contributor, 1999 - 2022)

ISO 14001 ISO 14001 is a globally recognized standard that specifies the
standards for an environmental management system. It supports
businesses in improving their environmental performance by
reducing waste and maximizing resource efficiency, giving them a
competitive advantage and winning stakeholders' trust. (Anon.,
2022)
The international standard for Good Manufacturing Practices (GMP)
ISO 22716 for cosmetics is ISO 22716. This document covers procedures for
the manufacture, control, storage, and distribution of cosmetics. ISO
22716 is significant because it takes advantage of GMP, which
connect cosmetic product safety to performance improvement
techniques, to help enterprises to fulfill worldwide customer
demand. (Anon., 2021)
Table 4 - ISO STANDARDS

Conclusion
The summary of Lo1 (Task 1) work discussed clearly on Introduction to law and
Legal system. I have included how legal system is important for a business and also
briefly explained all 3 particular branches of government under the role of
government, and their reforms in Sri Lanka.

In sources of law, I have come up with all the explanations of 8 sources of law with
examples. They are as follows; legislations, Case law, custom, religion, opinion
of writers, treaties, equity, directives. Along with this explanations, I have
explained what is legislation and subordinate legislation with examples

Both Common Law and Statutory Law have been described very clearly with good
examples, and I've connected the significance of both Common Law and Statutory

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Law.

Aside from that, the lo2 (task 2) summary indicates Based on a thorough description
of the type of business I plan to create along with The business's location, what kind
of business , products and services ,  are all plainly explained in my business.
With examples, I've explained briefly why different laws affect businesses, how they
affect businesses, and how important legislation is for businesses.
After that I have come up the types of laws and how they affect the business. They
are as follows respectively;
Contract law, Data protection law, Intellectual Property law, Anti –
discrimination law and Equal Opportunity law, consumer protection law

With good examples, the difference between the influence of legislation, regulation,
and standards on business is clearly highlighted. What are the rules and regulations
which we must implement in our business, and how do all these rules and
regulations affect our operations? In my business, they're plainly stated.

Business law students will improve their writing, challenge, and research thinking, as
well as their communication, negotiation, and presenting skills. Mostly as business
law student, we as students get the chance to put these important abilities to the test
in real world situations, increasing your advancements. Getting the lawful learning
helps business owners, managers, and other experts informed of the venture's
interests. This allows them to fight to maintain their company from any illegal
activities performed by other businesses or individuals. The legal decision to create a
business organization, as well as regulations governing the sale of business
organizations, are governed by business law.

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NILAKSHAN RAJASEKARAN / KBM322111 21 | P a g e


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(BM 33)
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(BM 33)
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