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Business Law: an Introduction

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Business Law: an Introduction
Business Law: An Introduction
Learning Outcome 1

1. Identify & describe the source of legislation that are binding in Scots Law and quote at least one example.

Legislation comes in 4 main sources in Scotland; UK Parliament, Scots Parliament, European Union and delegate legislation.

UK Parliament

Laws that are passed by Parliament come from proposals that are made by the Government. These proposals aim to shape society or address certain problems. Once such proposals have been consulted on they are turned into bills. A Bill is the draft of an Act of Parliament. The bills are submitted for debate to be scrutinised by both House of Commons & House of Lords.

All bills pass through the process outlined below:

• First Reading – Bill read out in Parliament • Second Reading – MP’s discuss & debate the proposals of the bill • Committee Stage – Committee of MP’s consider bill. Closely scrutinised. Any amendments will be proposed and voted on. • Report stage – The bill with any amendments is reported to House of Commons. All members can review bill. Amendments can be proposed & voted on. Anyone involved in amendments at the previous stage cannot suggest further changes. • Third Reading – MP’s debate and vote on final bill. It will usually be passed at this stage.

The bill then goes through the same procedure in House of Lords, where further amendments can be made. On its return to House of Commons the amendments are approved or rejected. Once approval from both Houses the bill receives formal approval from the Queen. This is when the bill is given Royal Assent. A bill becomes law or an Act of Parliament.

Examples of Acts that UK Parliament has passed are: Sale of Goods Act (1979) and Employment Rights Act (1996).

Scottish Parliament

In 1998, UK Parliament passed the Scotland Act which gave powers to the Scottish Parliament. Certain powers were given to Scots

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