Business Law: A Handbook for New Start-Up Companies

BUSINESS LAW
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Contents
INTRODUCTION........................................................................................................................3
LO 1.......................................................................................................................................... 4
P1 DIFFERENT SOURCES OF LAW..........................................................................................4
P2 ROLE OF GOVERNMENT IN MAKING THE LAW AND HOW STATUTORY AND COMMON
LAW ARE APPLIED IN THE JUSTICE COURTS..........................................................................6
M1 EVALUATE THE EFFECTIVENESS OF THE LEGAL SYSTEM IN TERMS OF RECENT
REFORMS AND DEVELOPMENTS..........................................................................................7
LO 2.......................................................................................................................................... 8
P3 ILLUSTRATE HOW COMPANY, EMPLOYMENT AND CONTRACT LAW HAS A POTENTIAL
IMPACT UPON BUSINESS USING EXAMPLES.........................................................................8
M2 DIFFERENTIATE BETWEEN LEGISLATION, REGULATIONS AND STANDARDS TO ANALYSE
POTENTIAL IMPACTS UPON BUSINESS...............................................................................10
LO3......................................................................................................................................... 12
P4 HOW DIFFERENT TYPES OF BUSINESS ORGANIZATIONS ARE FORMED LEGALLY...........12
P5 HOW BUSINESS ORGANIZATIONS ARE MANAGED AND FUNDED..................................14
M3 MERITS AND DEMERITS OF FORMATION OF VARIOUS TYPES OF BUSINESS
ORGANIZATIONS................................................................................................................ 15
LO4......................................................................................................................................... 17
P6 RECOMMEND LEGAL SOLUTIONS FOR RESOLVING A VARIETY OF DISPUTES
DEMONSTRATING HOW A PARTY MIGHT OBTAIN LEGAL SUPPORT AND ADVICE.............17
M4 COMPARE AND CONTRAST VARIOUS SOURCES OF LEGAL SUPPORT AND ADVICE FOR
RESOLUTION OF DISPUTES.................................................................................................19
CONCLUSION.......................................................................................................................... 21
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INTRODUCTION
Being the senior employment and dispute law advisor of Global Solicitors, this assignment
will be conducted for producing a handbook to provide advice to the new start-up
companies in resolving the disputes of employees and guiding them about the employment
law. The handbook will describe the different sources of law, the role of government in
making laws, evaluating the effectiveness of the legal system and thus, describing the nature
of the legal system in detail. The handbook will include the positive and negative impact of
laws on the business with the help of examples and also focus on the legal formation of
various kinds of business organization. The last part of the handbook will lay its emphasis on
providing suggestions for solving disputes within an organization.
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LO 1
P1 DIFFERENT SOURCES OF LAW
The law system in the UK is originated from four different sources which can be described
as:
Legislation: The legislations are created by the UK parliament that contains the House of
Lords has 800 members and House of Common comprising of 650 members of parliament.
The UK parliament passes the laws and legislation that are to be followed by four countries
namely England, Scotland, Ireland and Wales (Reimann and Zimmermann, 2019).
The Act of Parliament is the primary law passed by the UK parliament in the form of Public
General Acts and Local and Personal Acts and the secondary legislation includes statutory
instruments, by-laws and orders in council that are published up to 3500 on an annual basis
and arranged in sequence every year (Edge, 2017).
Common law: This is a significant source of providing legal guidance in order to protect the
rights of an individual. It is a collection of rules and principles that are obtained from the
judgement in the high courts (Reimann and Zimmermann, 2019). The common law is also
referred as the Case law which was incorporated in 1865 under which all the cases are
reported systematically by the Incorporated Council of Law Reporting which publishes the
law reports in an organized form. The case laws are developed by the judge in the court
instead of the parliament and this judge has to follow the rules stated by the parliament
while passing any decision. But in cases where no legislations are present due to change in
the situation, the judge solves the disputes and take decision with their own understanding
of what is right and what is wrong (Edge, 2017).
European Union Law: The rules under this law are divided into primary and secondary
legislation. The European Union can take actions based on the laws framed by the treaties in
the primary legislation or with the help of regulations in secondary legislation (Reimann and
Zimmermann, 2019).
The treaties in the primary legislation comprise of The Treaty of European Union, The Treaty
of Nice 2001, The Treaty of Libson 2009, The Treaty of Amsterdam, etc.
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The secondary sources include the regulations, directives, decisions obtained by the court
and recommendations and opinions received (Edge, 2017).
European Convention on Human Rights (ECHR): the Human Rights Act that was
incorporated in October 2000 signifies that all the decisions of the courts in the UK have to
concentrate on protecting the rights of the people and the fundamental freedom that is
established in ECHR. The decisions taken by the court in regards to the payment of
compensation to the damage borne by an individual are monitored by the Committee of
Ministers of the European Council (Edge, 2017).
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P2 ROLE OF GOVERNMENT IN MAKING THE LAW AND HOW STATUTORY
AND COMMON LAW ARE APPLIED IN THE JUSTICE COURTS
At the time of the election, the political party that gains the most number of the votes/
seats becomes the government of the country for the next five years (Zander, 2015). The
leaders of the party that win are appointed as the Prime minister and have the right to elect
other members of the team that become the cabinet minister and junior ministers.
ROLE OF GOVERNMENT IN LAW-MAKING:
The government of the UK is responsible and accountable to the UK parliament that
introduces laws in the UK termed as the legislature. The government plays an important role
in making the law which includes:
The government of the country participate in meetings and discussions in order to make
policies, vision, set objectives and directions regarding specific issues being discussed
(Zander, 2015).
The government is responsible for the development of new laws and policies which needs
the approval of the parliament.
The ministries of government have to draft green paper, white paper and other documents
that are used in the discussion and debate process (Zander, 2015).
Application of statutory law in the justice court:
The judge in the courts of the UK follows the legislation implemented under the statutory
law and also overlook the drafts and debates conducted while incorporating the law. There
are cases when the court does not follow the legislation and considers the statutory law
invalidated and unconstitutional (Ahmed and Perry, 2017).
Application of common law in the justice court:
The judge in the justice court creates the common law by using common sense and taking
decisions according to by applying the facts in the aroused situation and give conclusions.
The common law is developed by the judges on an everyday basis in the form of written
judgement of cases they hear (Ahmed and Perry, 2017).
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