Analysis of Employment and Commercial Legislation

The provided assignment delves into the realm of business law, focusing on employment and commercial legislation. It highlights the importance of reviewing and updating legal frameworks to ensure companies operate within national guidelines. The analysis covers various types of businesses, their distinct objectives, and legal structures. Dispute resolution is also discussed as a means to maintain smooth business operations. The assignment draws from relevant books, journals, and online resources, providing a comprehensive understanding of the subject matter.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P 1 Sources of Law......................................................................................................................1
P 2 Laws Making Process and Application of Statutory and Common Law in UK....................2
LO2 .................................................................................................................................................4
P3 Impact of employment and contract law upon Business........................................................4
P4. Legally formation of different types of Business..................................................................5
LO 3.................................................................................................................................................6
P5 Description on how business activities are managed and funded...........................................6
P6 Recommended legal solutions for resolving range of disputes with use of examples...........7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Commercial law or business laws is a law body which is established to govern the
business and commerce. These laws are considered under the civil law and deals with public and
private law. Corporate contracts, hiring, manufacturing and sales process are regulated by
commercial law. These laws are also known as trade laws and applied to the rights, relation and
conducts of person or business (Beatty, Samuelson and Abril, 2018).
This report is giving the brief of the sources of the law in United Kingdom and explaining
the role of government in law making process. The applications of statutory and common law in
justice courts is explained in the study. The impact of company, employment and contract law on
businesses in UK is explained. To analyze the potential impact of legislation, regulation and
standards on business are given in the report. This report is explaining the formation of different
type of the organization in the legal manner. The recommendation to solve the disputes are given
in the report.
LO1
P 1 Sources of Law
There are four principle sources of the law in United Kingdom. These four sources are
Legislation, Common law, European Union Law and European Convention on Human rights.
The law of United Kingdom works with three sources. There is not any single document that
contains the law of United Kingdom (Sokol, 2015).
Legislation
The law created b y the legislature is known as legislation and these are the import part of
the act of the parliament. The principle legislature is the parliament of the United Kingdom
which is situated in the London. The parliament is the body which is holding the power to pass
law which is applied in all four countries. The UK parliament is consists of House of Commons
and House of lords. There are 650 members in the House of commons and they are known as
member of parliament. These members represent the geographical constituency and elected by
votes with first-past-the-post system. Each local person have one vote, the candidate with the
highest number of votes wins and represent their constituency.
The house of lords is consists of 800 peers. The 600 points are holds by queen of United
kingdom. On the recommendation of the prime minister this 600 peers are appointed by the
queen to support the law and pass the law in the house of lords. Other 200 points are hold by the
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other members who hold the inherited aristocratic titles like Lord or Lady and the other members
are senior bishops and of church of England. The other important bodies are the Scotland
parliament, Northern Ireland Assembly and national Assembly of Wales have right to pass law
which is effective in the particular country (Carey, 2018).
Common Law
The legal system of Wales and England is a common law. The decision made by the
supreme court are considered as the law. These laws are made by the judges of the higher courts
and this is not constant.
European Union Law
The united Kingdom is a part of the European Union. The laws of the European union are
more important and priority is given to the European law over the law of United Kingdom.
European Convention on Human Rights
United Kingdom is a member of the European Union and a signatory of the European
Convention of Human Rights act 1998. This act ensures the protection and application of
European Convention of Human Rights (Hertogh and Kurkchiyan, 2016).
P 2 Laws Making Process and Application of Statutory and Common Law in UK
Law Making Process
The law making process have different steps which are followed in the both houses of the
parliament of UK. There are 25000 bills are arrived in the parliament of the UK but only 10% of
them become law. To form a law the bill should be passed in the both houses of parliament. To
pass a law in the parliament there is a specific procedure which is as follows.
First Reading
The bill is initially drafted in the parliament and then considered for the reading. This is
the part when the bill is introduced by the member of the parliament. The bill only can be
represented by the member parliament (Varuhas, 2018).
Second reading
In this part the key purposes and points are debated in the parliament and send to the bill
committee.
Committee Stage
In this stage the details of possible changes are studied and the votes decides the
occurrence of changes.
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Report Stage
This stage is consists of the discussion on the implement amendments in the previous law
and this voting procedures decides whether the changes will take place or not.
Third Reading
In this the all amendments are considered in the both parliament. Each house discuss and
considers the amendment of other house.
Royal Assent
After passing the bill in the parliament this bill is presented to the queen on the
recommendation of prime minister and after the approval of queen this bill becomes the law.
Application of Common and Statutory Law
Common Law
The legal law which are made by the judges who are sitting in the courts are known as
Common law. The common law are variable and continuously changing. The judges explain the
laws as per their general knowledge and common senses and made their sentence. This law is
more influenced by the previous experience.
A person was injured cause of the accident with the royal carriage of Don Payne. In this
case the butcher sued Payne for the accident in which the royal carriage ran into the carriage of
butcher and cause leg fracture of butcher. In this case the driver of the royal carriage found drunk
and Mr. Payne found guilty to influencing the driver for his situation. Finally, the Payne was
awarded with 100 Euro penalty.
Statutory Law
Statutory term is used to define the written laws are different from the regulatory law and
administrative law which are passed by the executive agencies, common law and law created by
the Senior court. These laws are passed by the parliament of United Kingdom. These laws are
created in the courts strictly and at the time of the implementation the courts are bounded with
these laws and can't make the changes in these laws to take liberal decision (Jones and Benson,
2016).
The criminal justice and public order act 1994 is the act of the parliament in which the
parliament made many changes by amendments. This act was related to the restriction and
reduction of the existing rights and greater penalties for anti-social behaviors.
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LO2
P3 Impact of employment and contract law upon Business
IMPACT OF EMPLOYMENT LAW ON BUSINESS
Employment law covers all the rules, regulations, laws and guidelines which is related to
the employee's rights and interest and its protection. It also defines the employees-employers
relationships too. Basically it covers various laws such as Equality act, National minimum wages
act, Working time regulations act, Pensions act, Trade union and labour relations act, Transfer of
undertakings regulations act and health and safety at work etc. act etc.
Employment law is essential for the companies and employers to follow the rules,
regulations and act. If they try to avoid them, they might have to face a lot of legal actions as
well as employment tribunal claims. Employment law guides company to run its business
practices fairly and properly in UK legal framework so that employees can work in safety
working environment and no one can could suppress their rights (Taylor and Emir, 2015).
Happier, healthier and efficient employees result in better and effectively performance and helps
reduce the turnover and attrition costs of company.
For Example – McDonald's ignore National Minimum Wages Act 1998, in which
employees are working on Zero Hour Contract and for that they did get less than legal wages.
This lead company to faced legal action and had to paid compensate to the affected employees.
IMPACT OF CONTRACT LAW ON BUSINESS
Contract is an essential part of businesses. Most commercial and business relationships
are building and breaking through various kind of contracts. To prevent the company from
negative impact of contracts, contract law come into existence which not only impact the
business, but also bring the certainty in the business relationships.
There are various sales, purchase, re-sale, re-purchase, credit sale and credit purchase
transactions taken between 2 different companies. For each and every transactions, companies do
contract because that contract express the specific price, specific quantity, specific place, specific
quality and specific terms and conditions. So Contract is usually end-all of all transactions that
enter into businesses (Poole, 2016).
Also, when a contract is being terminated or being breach or any terms and conditions are
being ignored by any party, it leads another party to face devastating financial loss and bad brand
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image. That's reason, contract law is the most crucial law for any companies who enter into
contract with any of its stakeholders.
For Example – 2 parties Mostyn and S & P casuals limited entered into the contract in
which affected party was wrongfully dismissal from employment before a particular employment
period stated in employment contract. This lead company to face tribunal actions and had to paid
compensate to affected party.
P4. Legally formation of different types of Business
There are various types of businesses whose formation is not only different, but also
influence by tax, liability and control. Different types of organisations are as follows -
SOLE PROPRIETORSHIP
Sole proprietorship is a kind of business where it is operated by one person. It is the most
simple and easy to set up the business. It is generally adopted by small business entities.
Advantages
Sole proprietorship is easy to form and dissolve. It has low start up cost. It also has to
follow few regulations. There is no corporate tax on the income of this form of business (Khan,
2017).
Disadvantages
Owner of sole proprietorship has unlimited liability which means in case of non payment
to creditors, they can claim their debts by going after the personal assets of the owner. When the
owner dies, this form of business dissolve.
PARTNERSHIP
Partnership is an agreement between two or more parties who agrees to own business
together and share profits among each other on the basis of capitalisation of parties. Partnership
is form by Partnership Act 1890.
Advantages
It is easy to establish with the help of partnership deed. There is no corporate tax on the
income of this form of business. Dissolve of partnership is also become easy due to partnership
deed drawn by partners with mutual consent.
Disadvantages
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Every partner has jointly and separately unlimited liabilities towards its creditors. Profit
of partnership must be shared between partners. When all the partners dies, partnership get
dissolve itself (McCarthy, 2016).
CORPORATION
Corporation is an organization where a group of members come and work together in
order to achieve some particular objectives. It has its own legal identity which is different from
its owner. Here owner is considered as its shareholders who bought the shares of the company.
Management, control and operate of this form is done by the Board of Directors, Management
teams and employees. It is form by company law and have to registered with corporate house
(Drucker, 2017).
Advantages
The members of the corporation have limited liabilities which means creditors can't go
after the personal assets of the members in case of non-payment of credit/debts. It has long
commercial life in compared to another forms of organization
Disadvantages
TMcCarthy, J., 2016his form of businesses have to follow so many employment and
commercial laws. They have to pay corporate tax as well as income and service tax too. It is the
costlier form of business.
LO 3
P5 Description on how business activities are managed and funded.
Business entity is an enterprise that uses economic resources and inputs in terms to
provide goods or services in exchange for money or other goods and services (Horton, 2018).
Herein, it can be stated that all enterprise must adopted the rights and liabilities of participants in
business ownership, personal liabilities and control. Thus, ways of how business organisation
managed and funded in following ways as-
1. Sole proprietorship- It is business that is owned by the only one person and he is only
liable for undertaking day to day responsibilities. Hence, its easy to set up and least costly
among all other forms of ownership (Types of Business Organization, 2018.). This is one
of the easiest type of business that establish take part due to lack of legal interference. In
order to set up the business, they can manage the funds from relatives and friends. Also,
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they can undertake loan on low level of interest rates and have favourable repayment
terms. It is fully in control of owner of business and within the parameters of law.
2. Partnership- It is consisted of two or more individual in business together. Under it,
partners divide the profits of business among themselves. Therefore, partners to the
enterprise divides revenue among themselves. Thus, all partners are having unlimited
liability (Berger, and et.al., 2018). In this, all individuals shares the risk and rewards of
business. Hence, this is business that can be funded with help of sources as venture
capital funding, business loan, retained profits and sales of assets etc.
3. Corporation- It is termed out as term in which it is headquartered and considered by law
to be unique, separate and apart identity. Thus, this is defined as an enterprise or group
from the stockholders and they control the activities of corporation. Hence, company can
be sued, can enter into the contractual agreements and the owner of the corporation are its
shareholders. Under this, owners enjoys limited liability but have limited involvement in
the operational functions of entities. Under it, business assets and liabilities to the
enterprise belongs to the company and sales or transfer of interest is conducted with help
of sale of shares. However, shareholders to the enterprise be accountable for the debts
and judgements against the corporation. Therefore, other forms of business ownership,
these some other kind of organisation and these are defined as-
 Limited liability- It is entity that is formed with hybrid forms of business and that must
have characteristic of both corporation and a liability. An LLC is not incorporated so its
do not considered as a corporation. This entity can be elect to be texted as sole
proprietorship, a partnership or the corporation.
 Cooperative- It is kind of business organisation that is owned by the group of individuals
and operated for their mutual benefit. Hence, the person making up the group called as
members. Therefore, cooperative may be incorporated and unincorporated. Hence,
corporative may be of as banking, credit unions and housing cooperatives.
P6 Recommended legal solutions for resolving range of disputes with use of examples.
Dispute resolution is term that is defined variety of ways of dealing with disputes. In
order to resolve the disputes the parties can have the use of Alternative dispute resolution.
Hence, people get involved in many types of disputes. Alternative dispute resolution defined as
term of setting disputes without the litigation such as arbitration, mediation and conciliation.
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Thus, there are most commonly three methods that aids to resolving the dispute. Hence, the types
of several types of ADR as-
Arbitration- It is termed out as collective process that affords individual the opportunity to
resolve legal dispute without having to resort litigation. Therefore, ADR is designed to be an
alternative in terms to resolve legal dispute through civil litigation process. It is one of the most
formal type of alternative dispute resolution (Hartman, Blair and Blattman, 2018). Under this,
disputed parties brings disagreement before neutral third party arbitrators. Arbitrator acts same as
judge does in court takes action again the dispute and imposing decision in same manner. Thus,
procedure of arbitration will be inclusive of the rules, procedures and the process of litigation.
Therefore, arbitrator listens both sides of argument and presents a relevant decision and renders
the binding decision on parties. Therefore, arbitrator makes the decision based on the facts and
any contract between the people and applicable laws.
For example- The china and Philippines were having issues and they have been arguing over the
territorial fights in the south china sea for several years. Herein, Filipino government wants the
arbitral tribunal and formed under United Nation conventional on the law of sea to arbitrate the
matter. Therefore, any decision in this case would be binding on both of the parties.
Mediation- The goal of mediation is framed for third party to assist disputants to solve the
problem (.Singer, 2018). Therefore, it is a dynamic, structured and interactive process in which
third party assist disputing parties to resolve the conflict with use of effective negotiation
techniques and specialised communication. Hence, third party, mediator, assist the parties to
negotiate the settlement. It is the kind of informal and flexible dispute resolution process.
For example- In the case, if there is dispute of an individual with his neighbour over the
encroaching bush or the brightness of the outdoor lights is the type of claim that merits a lawsuit.
Under this situation, it will be better to seek mediation to end the conflict.
Conciliation- It is an alternative dispute resolution instrument. Likewise, mediation it is also
voluntary, flexible, confidential and internet based process (Rohe, 2018). Herein, the main
difference between conciliation and mediation proceeding is that at some point conciliator will
be asked by parties to provide with non binding settlement process. In addition to it, conciliator
express the opinion about the merits of the disputes but this do not decide the conflicts for the
parties. Herein, proactive approach may assist to resolve the disagreements.
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CONCLUSION
From the above study, it has been summarized that whether company is small or medium
or large or local or national or international, they have to follow all the employment, corporate
and commercial legislation. These legislation are governed by the government. These
legislations must be review and change on time to time so that company can update itself with
legal framework of the nation and contributes in nation's economy. There are various
employment and contract law which impact the business so that business can't do operate its
business unfairly and wrongfully. Also, there are various kind of business whose objectives are
different thus, their legal structure and formation is also different. Business is a complex entity
where disputes are happening on the daily basis. But for the better working environment, these
disputes are needed to be solve. Thus, for the solution of disputes, there are various legal
solutions, advises and laws which help company to maintain its business operations smoothly.
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REFERENCES
Books and Journals
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Engage Learning.
Berger, D.P.D and et,al.,2018. Target cache line arbitration within a processor cluster. U.S.
Patent Application 15/380,082.
Carey, P., 2018. Data protection: a practical guide to UK and EU law. Oxford University Press,
Inc..
Drucker, P., 2017. Concept of the Corporation. Routledge.
Hartman, A.C., Blair, R.A. and Blattman, C., 2018. Engineering Informal Institutions: Long-run
Impacts of Alternative Dispute Resolution on Violence and Property Rights in Liberia (No.
w24482). National Bureau of Economic Research.
Hertogh, M. and Kurkchiyan, M., 2016. ‘When politics comes into play, law is no longer law’:
images of collective legal consciousness in the UK, Poland and Bulgaria. International Journal
of Law in Context. 12(4). pp.404-419.
Horton, D., 2018. Arbitration About Arbitration. Stan. L. Rev. 70. p.363.
Jones, H. and Benson, C., 2016. Publishing law. Routledge.
Khan, M.A.M., 2017. Seminar Paper on Sole Proprietorship Business. (Doctoral dissertation,
Bangabandhu Sheikh Mujibur Rahman Science and Technology University).
McCarthy, J., 2016. Partnership, collaborative planning and urban regeneration. Routledge.
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Rohe, M., 2018. Alternative Dispute Resolution among Muslims in Germany and the Debate on
“Parallel Justice”. In Exploring the Multitude of Muslims in Europe. BRILL.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal system.
Routledge.
Sokol, D.K., 2015. Update on the UK law on consent. Bmj. 350. p.h1481.
Taylor, S. and Emir, A., 2015. Employment law: an introduction. Oxford University Press, USA.
Varuhas, J.N., 2018. Administrative Law and Rights in the UK House of Lords and Supreme
Court.
Online
Types of Business Organization. 2018. [Online] Available
through:<http://www.studyfinance.com/lessons/busorg/>.
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