Business Law Analysis in the United Kingdom

This assignment delves into the legal system in the UK, the impact of laws on businesses, and provides legal solutions to common business problems. It also explores the effectiveness of recent legal reforms and the use of alternative dispute resolution methods like arbitration.

Business law
1

Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................6
Explain the basic nature of the legal system....................................................................................6
Task 2.............................................................................................................................................10
Illustrate the potential impact of the law on a business.................................................................10
Task 3.............................................................................................................................................15
Suggest appropriate legal solutions to business problems.............................................................15
Task 4.............................................................................................................................................20
Recommend appropriate legal solutions based upon alternative legal advice provided...............20
Conclusion.....................................................................................................................................24
References......................................................................................................................................25
2

Introduction
This assignment is having the analysis of sources of laws and the laws that should be followed
by the organization. After that, there is the discussion of the role of the government in making of
the law. The reforms that have taken place in-laws; their effectiveness is understood in this
assignment. After that, there is the analysis of the company law and the influences of the
company laws on the business that are running. Then there is the investigation of the different
legal problems that are there in business and how these problems can be solved is determined.
There can be the pros and cons of legal solutions on the problems of the business are discussed.
In each country, there is different legal system and the businesses have to follow that laws and
the framework that is designed by the nation for the businesses are evaluated in this assignment.
3

Task 1
Explain the basic nature of the legal system.
P1. Explain different sources of law and laws that organizations must comply with.
According to the English legal system of the United Kingdom law are formed by the Parliament
and Government of the country. There are various sources of law added by constitutions,
executives, judiciaries, legislatures, international organizations and administrative agencies. The
constitution is the fundamental law of the country, the country has its own legislatures and
federal legislatures are the source of law because it derives statutory law and statutes. Executive
orders and bills are passed by President of the country. Judiciaries are also known as courts,
which is the governmental body of more judges who solve the disputes (Kuhlmann, and
Wollmann, 2014).
Administrative agencies are a state, federal, and local levels of the government that includes
commissions, departments, and bureaus, services etc. The common law, case laws, precedents
case laws, European law are also considered as sources of law. Every business organizations of
the country have to follow the regulations and legislation of the enacted law. The general laws
are applicable on the organizations are contract law, employment law, corporation law, anti-
discrimination law, Equality laws, labor laws, occupational safety and health rules, workers
compensations law and many other (Partington, 2016).
4

P2. Explain the role of government in law-making and how the statutory and common law
is applied in the justice courts.
House of Commons (Members of Parliament) and House of Lords (appointed by the
government) plays an important role in lawmaking process of the United Kingdom. Parliament
legislature ha the supreme authority in the country, that examines and checks the functions of
government. Parliament approves the new laws and debate over it which is proposed by
Government. Both the houses together form the Parliament legislature. A bill becomes the Act
when it's wholly voting and support by both houses. House of Lords has the power to reject the
bill by parliament act of 1911 and 1949, but bill still becomes the law if rejected by lords
provided that it is reintroduced in the House of Lords (Haigh, 2015).
Common law: this is followed by many countries in the world combination of both common law
and statutory law is essential for the justice. This law frames new decisions which are made by
judges of the court. The operational level of the law is Procedural and this also known as case
law. The case laws are of two kinds first one is judgments become new laws when no statutes
and next one is judges interpret the previous law and forms new distinctions and boundaries
(Nelson, 2016).
Statutory laws: these laws are passed by several agencies of government. So the law is passed
by state and federal governments, ordinances formed by cities and towns having law power. New
laws are enacted to fulfill the demands of citizens, to format the previous law and to solve the
critical disputes (Craig, 2015).
5

M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments.
There have many changes in the laws and regulations of the country in the recent time period.
The government of the country made reforms in the Employment law, labor laws, corporation
laws etc. supreme court is established with the re[placement of house of lords. The formation of
many tribunal services, judicial services, the creation of many family courts etc. The judges, law
reform committee, criminal revision committee parliament, and government departments play an
important role in reforms and developments of new laws (Faúndez, 2016).
The certain key changes in law reform are, formation of judicial appointment commission,
creation of sentencing council, formation of ombudsman services, national crime agency, college
of policing, new court for solving the international commercial disputes, etc. many new Acts are
also framed by the Parliament that, cyber security,, information technology, equality act,
protection from harassment act, etc. the laws and compliances are very effective for every
business organizations of the country (Faúndez, 2016).
6

D1. Provide a coherent and critical evaluation of the legal system and law, with evidence
drawn from a range of different relevant examples to support judgments.
The English legal system of the country is formed by parliament, legislature, judiciary, and
crown court. The common law, case laws, statutory laws are the basis of a legal system of the
country. The law divided into criminal and case laws. The system is divided into hierarchy level;
Supreme Court of the country is binding on all other lower courts. The landmark cases and
precedent cases also provide the fair judgment of many case laws. The House of Commons,
House of Lords, and the decision of queen is important (Lenk and Duttge, 2014)
7

Task 2
Illustrate the potential impact of the law on a business
P3. 1.
The given case is related to the formation of a company. Collin and David who are planning to
start a business of food catering. After some months of discussion, they decided to form the
company for handling the business. They are confused in deciding the name either, ‘F U Caters
ltd’ or ‘Food United Caters ltd’. According to the company law, constitutes of a memorandum of
Association, the name clause a state that, promoters are free to choose any name for the company
but have certain limitations. If the company is private or it is limited by shares then the last word
of its name added with “Private limited” or “limited”. The name chosen as per the opinion of
central government is undesirable or identical and resembles as the previous name of the
company which is existed and registered. So the name of the company must not be identical with
any previous name of the company. In this case, both the parties finalize the name which does
not resemble any other name of existing company. The parties have to follow the regulations of
name clause as per the Memorandum of the company and consider the limitations of name
clause.
8

P3. 2.
The present case is related to the Employment law, Sophia who is an employee at GST LTD. She
generally absents from the work around 30% of the time. This behavior is not liked by his
colleagues and complaints made to the line manage but she provides medical certificates all the
time. The company gives several warnings for his conduct many times and if such activity
continues then she will be dismissed from the employment. GST ltd consults the medical advisor
who said that she is fine and illness is not due to work. According to the employment rights Act,
unfair dismissal is that when employer dismissed the employee without any real facts and
reasons, there must have certain reasons which can rely on the dismissal of the employee. The
employment tribunal has right to consider that whether the dismissal is fair or unfair. In the
present case, Sophia was an employee of GST ltd who remains absent most of the time due to
fake illness. The medical advisor said that illness is not because of the work so her absence was
not fair. The company has right to dismiss her from the employment because her absence was
not genuine (Dau-Schmidt, et. al., 2016).
9

P3.3
In the present case, Mrs. Carter gave her car for the servicing to Local garage AD motors ltd.
The agreement made between both of the parties that Mrs. Carter will give 5% of the expenses
upfront and remaining 50% on the work completed. After two days when she received the car
from garage she suspected that parts used in the car were not original and brand new. The
company said that parts used by garage were branded which are less expensive than the original
parts of the car. Mrs. Carter ignored to make the reaming payment to the company. According to
the provisions of the Contract law, this is the binding agreement by the law. The rights and
obligations of both the parties may be enforced by courts. The court can compel the performance
of contracts by the parties and [provide the loss and damages for any breach of the contract. In
the present case, Mrs. Carter is liable to give the full amount to the AD motors ltd because the
parts used by the company were branded and less expensive than original. There was a breach of
contract done by Mrs. Carter and company is liable to receive the full claim. The company can
file suit against the Mrs. Carter for the breach of contract.
10

M2.
Differentiate and analyze the potential impacts of regulations, legislation, and standards.
As per the regulations of company law, there is a requirement to follow the incorporation
formalities of the company. Collin and David are restricted to consider all compliances and
limitations of the name clause before incorporation and formation of the name. The provisions of
the company law must have to comply within the formation and deciding the name for the
business of the company. The name must not resemble, identical and similar to the previous
name of any other company.
According to the standards of Employment rights, the employer is responsible towards the duties
and powers of the employees and members of the company. An employer cannot dismiss the
employee from the workplace without any real facts. The opportunity of being heard and notice
must be served to the employee before termination. If such conduct is taking place then it will be
called for unfair dismissal. In this case, the employee was not genuine towards his duties then the
employee has right to dismiss her from the employment (Painter and Holmes, 2015).
As per the legislation of contract law, the contract is an agreement made between the parties and
binding by the law. The obligations and rights under the contract law are binding and enforceable
by the courts. The court must compel the performance of parties and provide the loss and
damages on the breach of contract. So the company is liable to file the suit against the Mrs Carter
and receive the remaining amount.
11

D1. Provide a coherent and critical evaluation of the legal system and law, with evidence
drawn from a range of different relevant examples to support judgments.
As per the English legal system of the country, every business organizations have to follow the
provisions of company law, employment law, and contract law. In both the cases, all the
regulations of the legal system and enacted acts are followed to solve the disputes. The common
law and case laws are also applicable are also considered. The House of Commons, House of
Lords and the decision of queen is important to finalize the matter. The decision of the court is
binding on all the parties.
12

Task 3
Suggest appropriate legal solutions to business problems
P4.
Case 1
In the given case, Prestige Ltd is home construction company which is assigned to construct a
new 5-bedroom house for Mr. Smith. The price agreed between them is 500000. PHB ltd has
abandoned and left the work after the completion of 60% of the house. Mr. Smith has given all
decided payment to PHB ltd. After that Mr. Smith completed the house construction with the
material left by PHB ltd. the provision of contract law breach of contract means when one party
fails to fulfill the contractual obligations. A contact creates various obligations which have to be
fulfilled by patties that make the agreement. After the breach parties have right to enforce the
contract. In this present case, PHB Ltd breached the contract because of left the construction
without completion of the house. PHB ltd is not liable to file the suit against MR Smith because
he breaches the contract, and he is not liable for getting the value of the material. Mr. Smith is
liable to use the materials which were left by PHB ltd due to the left of constriction because he
made a substantial payment to the company.
Case 2
In the given case, busy bees ltd is facing several problems and businesses go down. Due to this a
winding-up order was passed on 15th July 2017 against the Busy Bees Ltd. The creditor petition
was presented to the court on 28 June 2017. Samantha is appointed a liquidator of the company.
The creditors include Aston Building Society who owned 18000 and fixed charge over the
company on freehold [premises. The value of premises of the company is 150000. The expenses
and cost incurred by liquidator Samantha are 10000. According to the provisions of company
law, when the company is wound up, the liabilities are distributed into the following priority:
 Workman’s dues.
13

 Secured creditors,
 All government taxes, rates, cesses, due from the company to state government and
central government
 All salary and wages of any employee
 All holiday remuneration payable to the employee.
In this case, the liquidator will distribute the amount received after the winding up first to
secured creditors, nest unsecured creditors. The directors of the company are personally liable if
any unlimited liability is there. The assets of the company are distributed on the basis of above
priorities (Foreman-Peck and Hannah, 2015).
14

P5.
Provide justifications for the use of appropriate legal solutions.
Case 1
In this case, the contract was made between both of the parties PHB ltd and Mr. Smith. The
contract was breached by the company due to left the construction without the completion. The
legal solution provides that PHB ltd was liable to complete the construction of house because
their substantial payment made by Mr. Smith. The company is not liable to receive the amount of
material which was used by Mr. Smith for the completion of construction of the house. As per
the contract law, if any breach made by any of the party then it contract can be enforced bib the
court (Knapp, et. al., 2016).
Case 2
In this case, the provisions of company law are applied. When the company is going into
winding up proceeding then the company will distribute the assets of the company into fixed
priorities and a particular person. It is justified that, Liquidator of the company distributed the
assets by secured creditors, cost of liquidation, preferential creditors, and creditors with floating
charges, unsecured creditors, statutory interest and shareholders of the company. If any amount I
left then it will be distributed to the shareholders of the company.
15

M3.
Assess the positive and negative impacts of legal solutions to business problems.
Case 1
The positive impact of the legal solution given by the court is that there is a fair judgment made
between the parties as the Mr. Smith made the payment to the PHB ltd. There was a breach of
contract made by PHB ltd so he is not liable to receive the claim for material which was left. As
a contract he is liable to complete the construction of the house, and Mr. Smith used such left
material for the house construction. The negative aspect is that court proceedings will take place
and it consumes more time to solve the case (Knapp, et. al., 2016).
Case 2
The positive impact of the legal solution, in this case, is, winding up process distributes the
number of defined priorities to the creditors as per the company law provisions. The negative
impact is that directors are not liable personally for the distribution of the amount of the assets at
the winding up process.
16

D2.
Critically review and evaluate the use of appropriate legal solutions in comparison with
alternative legal advice.
In both the above-mentioned cases, legal solutions are given by the court of the country. The
court will decide the matter as per the provisions of contract law and company law. If there is a
breach of contract then parties will enforce the contract to the court. In case of winding up
process, the court will appoint the liquidation of the company. In comparison with a legal
solution both the parties can settle can dispute with arbitration process of alternative dispute
resolution process. The winding up process can be done with voluntary winding up so liquidator
can be appointed by self (McKendrick, 2014).
17

Task 4
Recommend appropriate legal solutions based upon alternative legal advice provided.
Letter
To,
AFG Oil company
Sub: Dispute between AFG Oil Company and HPG PLC (UK).
Trials and civil court lawsuits are the old methods to resolving the disputes related to accident
and injury. The court proceedings have congestion with delays, high litigation costs, and
negative emotional and psychological impact of litigation increased by the use of alternative
dispute resolution process methods. Arbitration is most important and frequently used method in
ADRs.
Arbitration is the formal alternative method of the court proceedings. In this process, parties
appoint one neutral party as an arbitrator who decides the case. The method is used in public and
private sector as well. This is the most effective process than court proceedings because it is
faster, less costly, and gives more flexibility of procedure and process. Arbitrators are more
expertise in the particular matter of the dispute than judges do. They have large flexibility in case
of decision making (Moore, 2014).
According to the legal rights, AFG Oil Company and HPG PLC Company solve their disputes by
the method of arbitration. The contract made between both the parties and decided that if there
are any disputes than it will be solved by Arbitration process.
What is the difference between institutional and ad hoc arbitration?
Institutional arbitration: In this kind of arbitration a special institution intervenes and plays the
role of administration. The institution has its own frameworks and rules for the process of
18

arbitration, and its own administration to assist the process. The availability of pre-established
procedures and rules that ensure the proceedings of arbitration in a timely manner (Moses, 2017).
Ad hoc Arbitration: This is not administered by any institution like ICC, DIFC etc. the parties
of the agreement have to consider all aspects of arbitration for example, and a number of
arbitrators; appoint arbitrators, application procedure, and law for handling the arbitration. The
process is more flexible, cheaper, and faster than institutional proceedings.
19

M4. Compare and contrast the effectiveness of these recommendations.
The case solved with the process of arbitration by any of the methods. The institutional
proceedings and ad hoc arbitration is suggested tom, solve the disputes between both the parties
of AFG Oil Company and HPG PLC. Ad hoc process has several advantages like it has more
flexibility; parties are enabled to decide the process of ADRs themselves. It provides a high
degree of effort, expertise, and cooperation from the parties. This is less expensive than the
institutional process of arbitration. The fees are negotiated between the arbitrators and parties in
ad hoc process, but in institutional process arbitration fees are set up by the institution. The
disadvantages are that there is an uncomfortable discussion on many issues (Bhatia and Candlin,
2017).
20

D2 critically review and evaluate the use of appropriate legal solutions in comparison with
alternative legal advice.
In the above-analysed case, the disputes are solved by the arbitration process of alternative
dispute resolution process. The parties may prefer any of the methods of arbitration whether ad
hoc and institutional. The methods have positive and negative aspects both related to the faster
disposal of the case, fees and expenses incurred by the parties, coordination, and support by the
parties etc. the parties can solve out the case with court proceedings and litigation which is
somehow complicated than the arbitration process of ADRs. The decision of arbitrator has to
follow by both of the parties. The litigation process will take more time to solve the disputes,
date to date hearing, and highly expensive, etc. so arbitration is the easy process as compared to
the litigation. (Puig, 2014).
21

Conclusion
This assignment concludes the business laws that are in action in the United Kingdom. The
government is the key role player with the judiciary; parliament legislature and the crown in
making the reforms in rules and regulations for the business that are running in the UK. The
reforms that take place in the English legal system for business laws play an important role in
providing the sustainability to the different types of businesses in the present times. For
maintaining the status quo of the individual that is working in the organization there is the
implementation of the different laws in the organizations. It is the liability of the employer if any
damage or wrong occur to the employee. The arbitration is the better legal method of all the
available methods that can be used to solve the disputes that occur with the business. This
method is cost effective and fast.
22

References
 Partingtona, M., 2016. Introduction to the English legal system 2016-2017. Oxford
University Press.
 Haigh, R., 2015. Legal English. Routledge.
 Lenk, C. and Duttge, G., 2014. Ethical and legal framework and regulation for off-label
use: European perspective. Therapeutics and clinical risk management, 10, p.537.
 Faúndez, J. ed., 2016. Good government and law: Legal and institutional reform in
developing countries. Springer.
 Kuhlmann, S. and Wollmann, H., 2014. Introduction to comparative public
administration: Administrative systems and reforms in Europe. Edward Elgar Publishing.
 Nelson, W.E., 2016. The Common Law in Colonial America: The Chesapeake and New
England, 1660-1750 (Vol. 3). Oxford University Press.
 Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
 Craig, P., 2015. UK, EU and global administrative law: foundations and challenges.
Cambridge University Press.
 Foreman-Peck, J. and Hannah, L., 2015. UK corporate law and corporate governance
before 1914: a re-interpretation.
 Dau-Schmidt, K.G., Finkin, M. and Covington, R., 2016. Legal protection for the
individual employee. West Academic.
 Painter, R. and Holmes, A., 2015. Cases and materials on Employment Law. Oxford
University Press, USA.
 Knapp, C.L., Crystal, N.M. and Prince, H.G., 2016. Problems in Contract Law: cases
and materials. Wolters Kluwer Law & Business.
 Poole, J., 2016. Textbook on contract law. Oxford University Press.
 McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press
(UK).
 Moore, C.W., 2014. The mediation process: Practical strategies for resolving conflict.
John Wiley & Sons.
23

 Bhatia, V.K. and Candlin, C.N., 2017. Analysing Arbitration Laws across Legal
Systems. HERMES-Journal of Language and Communication in Business, 17(32), pp.13-
43.
 Moses, M.L., 2017. The principles and practice of international commercial arbitration.
Cambridge University Press.
 Puig, S., 2014. Social capital in the arbitration market. European Journal of International
Law, 25(2), pp.387-424.
24