Business Law and Law Making Process- Assignment

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of law making............................................................................................1
P2 Role of government in law-making.......................................................................................2
TASK 2............................................................................................................................................3
P3 Potential impact upon business of different laws..................................................................3
TASK 3............................................................................................................................................4
P4 Formation of different types of business organisations.........................................................4
P5 Management and funding of different forms of business organisations................................6
TASK 4............................................................................................................................................6
P6 Legal solutions to resolve range of dispute............................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Legal system can be explained as the process or steps through which any of the legal law
and regulations are enforced. In any of the nation, it is necessary to have legal system as it helps
to guide every individual while taking any of the decision. While talking about UK legal system,
it is stable and constant where laws and regulations doesn't changes much and more due to which
decision making process becomes easier. In this project report, there will be various topic related
to business law and law making process within United Kingdom. There will be detail description
that how any of the business can be setup and what are the basic required which is needed to be
filled. In the last segment, there will be description that how any of the case related to dispute
can be solved with the help of ADR process.
TASK 1
P1 Different sources of law making
The parliament of UK constitutes the law within UK where they are the most power
body to take any of the legal decision. For any of the criminal and civil wrong activity, court
takes the responsibilities to declare its decision on the basis of situation. Parliament of UK has
been divided into two groups i.e., House of Commons and House of Lords where they takes
decision that which types of law should be commenced so that democracy of people cannot be
affected (Johnson, 2013). As UK covers large part of geographical area it becomes important that
they must use different source to commence any of the law in nation and those source are
explained below:
 Legislation: This is the major source of UK where it is divided into two parts i.e.,
primary and secondary. In primary stage, bills are passed by government at a private
level. When this bill is passed it becomes law or act. While talking about secondary
legislation, it is enforced for the purpose of regulation which are formed by primary level.
 Directives: It is authorised to commence law within the premisses of member states.
Whenever they form any law, they give rights and responsibilities to member country that
how they want to commence that particular. It is mandatory to commence that particular
law which has been commenced by directives.
 Case law: Any of principle or rule which has been formed while declaring any of the
result within the premises of court is known as case laws. Here, laws are formed by
1

looking at the facts and situation so that appropriate decisions can be declared. This is
helpful of UK because if similar form of case arises then they can easily declare their
decision by considering the same law and regulation (Sources of law, 2018). These laws
and regulations can be for short or long period of time. Treaties: It is the form of law where written agreements are formed by the local or state
government to confirm that any sort of illegal activities will not take place. This treaties
are also legal binding in nature and it has the great importance in terms of forming law in
UK premisses (Besley, 2015).
Structure of Court in UK
The structure of UK court is much and more complex because there are number of
procedure which is needed to be followed while filing any of the case. In case of civil case, it can
be entertained within the magistrate court but it cannot be dealt within country court. While
talking about criminal case, it is entertained from magistrate court and moves to crown court as
per the complexity of case. There is the fix pattern to declare any of the decision where senior
member of tribunal takes the decision with the help of different source of law available within
UK.
Difference between civil law and criminal law.
Basis Criminal law Civil law
Courts Magistrates & Crown tribunal. Country & High Assembly.
Aims To punish the one who has
harmed other for personal
benefits.
To solve out the issues which
has raised among the
individuals.
Outcomes Individual have to face off the
punishment as imprisonment.
Losses are needed to be paid
off.
P2 Role of government in law-making
Whenever any of the new law is required to be introduced within the premisses of UK,
they are needed to pass it from different stages so that it can be formed in proper structure and
form. While forming any of the law, it is necessary for government that they must prepare the
bill which is needed to be passed by different stages so that proper laws and regulations can be
enforced within the country (Fici, 2013). Bill is needed to be passed from House of Common and
2

House of Lords where they conduct various stages such and amendment process, voting process,
discussion round and many more. After whole of this process they passes the bill to next process
known as Royal Ascent which is the most important in context of UK premisses because after
this only bill becomes as law and enforced from local public.
TASK 2
P3 Potential impact upon business of different laws.
Business companies perform different activities at regular basis and because of that it is
important that proper laws and regulations must be follows as they have a great importance on
business organisation. Some of the laws and their impact on business organisation are explained
below:
Contract law: There are number of actions and decisions which are needed to be taken
within the company and for that it is necessary that contract should be formed. It will help agreed
party that when they are required to perform any of the work as it has been contracted. It is one
of the positive impact on business organisation as task can be concluded on specific time period.
Competition Law: The market of UK is open where competition is allowed among the
business organisation but it has a great importance for any of the business organisation. It
ensures that market should have a fair competition due to which business organisation can easily
sustain within the market and this has a positive impact for investor (Cameron and Pagnattaro,
2017).
Law of torts: It is the civil wrong where one organisation harm other company for the
purpose of personal benefit. It is one of the most important law in context of business
organisation because it doesn't allow to do any of wrong activity and if in any it is found that
defaulter has to compensate the innocent party. Due to which it can be said that law of torts has a
positive impact for business organisation.
Employment Law: In any of the organisation employees plays the most significant role
because they are the one who works for achieving the goals of a company. Various rights and
responsibilities are given to both employer and employees and they are required to work in that
particular manner due to which every work is managed in a systematic manner and that has a
positive impact on business organisation.
3

TASK 3
P4 Formation of different types of business organisations
In present scenario, there are number of ways through which business organisation can be
formed. This organisations are provided different types of benefits due to which they can work in
in systematic pattern. Incorporated business organisation are those company who have to
perform number of work to setup their business entity (Hayden and Bodie, 2012). They have
been delegated higher number of responsibilities as compared to other form of business
organisation. These are those business entity where organisation enjoys the right of perpetual
succession. When it comes to Unincorporated business organisation, they are easy to perform
and commence. The investor in this types of business organisation has to suffer from number of
problem in some of the cases as liability is not limited in it. Even various rights are not given to
this types of business because of its legal existence as they don't get legal existence in the eyes of
legislation.
There are different types of business organisation and it is necessary that proper rules and
regulations must be followed while incorporating it. Below there are some of the organisation
mentioned with there proper way of formation.
Sole Traders: The form of business organisation which is performed at smaller ground is
known as sole traders. There are very few restriction on these types of business but it is very easy
to perform just because of its organisation structure. This types of business doesn't enjoys the
right of perpetual succession and that is the main reason that investor do suffer sometimes in it.
The procedure to form any of the sole trader is simple as name is needed to be selected with
address. After that detail information should be mentioned that who will manage each and every
organisational activity and then all of the documents must be submitted to Companies House.
Partnership: Whenever two or more then two person to work together at a smaller
platform for earning profit is known as partnership. This types of organisation are also not
separate from its investor and even it is easy to perform too. There are number of rights and
responsibilities which is needed to be done within partnership firm (Hawkins, 2012). While
commencing any of the partnership firm, it is necessary that name of the organisation should be
selected and list of total partners should be prepared. They partners must register for HMRC so
that tax return can be filing on regular basis.
4

Registered Company: The form of business organisation which perform business
activity at a huge platform is known as registered company. This are recorded within the
companies house and have higher number of responsibilities to perform. Here, member are
separate from business organisation have enjoys the right of perpetual succession. The legal
procedure to form any of the registered company is:
 Name of the organisation is required to be decided, including address.
 Article of Association and Memorandum of Association is needed (Bayern, 2016).
 List of members connected with company for example: first shareholder and director.
 Then SIC code is required too, finally documents are needed to be submitted within companies House.
Difference between Public company & Private company
Basis Public company Private company
Meaning Organisation where outsiders
can be the part of company.
Company where limited
number of people can become
the part of organisation.
Capital Minimum capital required to
start business activity is
£50000.
There are no such requirement
as only registration fee is
mandatory.
Rising of capital They can easily raise fund by
issuing share with the help of
London Stock Exchange.
Member are the main source
through whom capital can be
raised.
Directors At least two directors should
be there.
Minimum one director.
Limited and unlimited companies:
Limited Company: It is the business organisation which is legal in nature and have
distinct body from its member (Van Koppen and et. al., 2014). Here, liabilities are limited up to
the amount investment within the organisation. Here, entrance and exit of any member doesn't
affect the sustainability of the organisation.
5

Unlimited Company: This are the business organisation which performs business at
smaller level. Whenever any of the member get connected with organisation, they are required to
understand that there liability will not be limited as they will need to pay the debt amount which
has occurred within the organisation. It is necessary to register the organisation under Companies
Act, 2006.
P5 Management and funding of different forms of business organisations.
Sole Trader: These are the business organisation where it is necessary for owner of the
company to manage each and every activity of themselves because there are very few option
available to raise fund in it (Hansmann and Kraakman, 2017). The major source of funding in it
is credit card and personal assets of a owner.
Partnership firm: In these types of business organisation, there are number of persons
engaged who conducts business activity. Here, authorised partner is the one who manages each
and every business activities on daily basis. While talking about funding, they have alternate
source as compared to sole traders. Firstly, take can take the help of credit card, loan from bank
is also one of the option but it depends upon bank that whether they passes loan or not.
Registered Company: These are the business organisation which have number of ways
to raise fund such as share can be issued, debenture is also one of the option. These types of
company can do peer to peer lending and Bank loan is also one of the option. When it comes to
manage organisation, they have appointed Company Secretary, Directors, Managers and
shareholders etc.
TASK 4
P6 Legal solutions to resolve range of dispute
There are number of situation arises where company needs to solve the problem
according to the situation. It is necessary to understand that every time taking the help of court
proceeding will not work because those are always a lengthy and expensive process (Uysal,
2012). Here, organisation can take the help of alternative dispute resolution which solve cases
without involving any of the court proceedings.
Alternative Dispute Resolution
It is process where third party is involved to clear out the problem which arises within the
organisation. It is one of the suitable way in present scenario because it helps to sort out the
6

problem in short during in best possible manner. There are number of methods to resolve the
problem and they are:
 Mediation: It is the method of clearing any sort of misunderstanding which arises
between party. Here, mediator is needed to be appointed, who handles the case and try to
find the exact problem so that better suggestions can be given to clear out the issues.
 Conciliation: This is the process to sort the dispute. Here, conciliator is appointed who
handles who of the case (Forrer and Katsos, 2015). Appointed conciliator has to listen to
the points to both parties that what are main causes of disputes so that appropriate
suggestion can be given to both of them. Main motive is advise that how both of them
can reach near to the contract. Arbitration: It is the method of solving dispute through legal ways as proper panel is
appointed who find the exact raise due to which dispute has taken place. While adopting
arbitration process, it is necessary that both parties must ensure that they are adopting the
process because once they enters into it, they will not allow to take help of any other
process to solve the problem. Decisions are legal binding in it.
Case 1
Contract law: It is the law where two or more party enters into the contract in return of
consideration. The most important things in this law is that once party enters into it, they are not
allowed to revoke it any any of the stage, else it will fall under the category of breach of contract.
In the above question, it was found that Gordon and Orange Ltd entered into contract where they
have contract that company will just pay the commission as they are suffering form losses
(Muchlinski, 2012). But after certain period of time condition changes and company started to
earn profit.
Here contract is terminated whenever terms and condition changes and in above case it
was found that company had started to earn profit but denies to pay the actual amount of money
due to which dispute has raised.
Recommendations: Here, it is recommanded to organisation that they must take the help
of conciliation process to sort out their problem because there is a change in situation and
company is not willing to pay the amount. In this situation conciliator can guide to both of them
that what can be the better solution in this situation so that problem can be sorted out.
Case 2
7

In this case, there is the problem in completion of terms and condition of contract. Here,
Virgin Media didn't provide the services which they have offered to Janet. The main problem
which is found over here is the company have send the bill by including the charges for services
which they have not availed. It was one of the case, where default was performed by the side
Virgin Media only.
Here, organisation have given the offer which was accepted by Janet in return of
consideration so it will be better for company that they must work according to the contract
which they have prepared. In this case organisation fails to provide the services which they have
offered to their customers.
Recommendation:It is recommanded to both Janet and Virgin Media that they must sort
out their problem with the help of mediation method because there is the problem of
miscommunication and it can be easily sort out if they sit and discuss the exact matter where
problem has raised. Mediator can easily suggest them that what created the issue between then
and how it can be sorted out.
Case 3
Winding Up: It is the stage where liability become higher then assets. Here, company
suffers from financial losses and unable to recover it. Whenever winding up order passes,
liquidator is appointed who takes the charge of all the assets of a company to sell them so that
payment of creditors can be made (Mann, 2013). In the given case, Black Horse was unable to do
the paymeny due to which one of the creditor file winding up petition.
Recommendation: To stop winding up petition, it is suggested to both creditors and
Black Horse that they can sort out their matter by taking the help of Arbitration process because
decisions taken in it will be legal binding. Here, idea can be obtained that whether company can
pay off the money or not and if they are able to give then time can granted in it. Arbitration will
help to save time and money both of company and their creditors.
8

CONCLUSION
It is concluded from the above file that, legal system is needed to amended according to
the situation and requirement of nation. In any of the country, it is necessary to have different
types of laws and regulation so that any types of situation can be handle by looking at the
situation. Whenever business organisation are needed to take any of the decision they are needed
to take the help of different branches of business law. There are number of situation where
disputes arises within the company and in that condition company can take the help of
Alternative Dispute Resolution Method which helps to resolve any sort of civil wrong.
9

REFERENCES
Books and Journal
Bayern, S., 2016. The Implications of Modern Business–Entity Law for the Regulation of
Autonomous Systems. European Journal of Risk Regulation. 7(2). pp.297-309.
Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the
World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-
120.
Cameron, E. A. and Pagnattaro, M. A., 2017. Beyond millennials: engaging generation Z in
business law classes. J. Legal Stud. Educ. 34. p.317.
Fici, A., 2013. Cooperative identity and the law. European Business Law Review. 24(1). pp.37-
64.
Forrer, J. J. and Katsos, J. E., 2015. Business and peace in the buffer condition. Academy of
Management Perspective. 29(4). pp.438-450.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
Hawkins, J., 2012. Credit on Wheels: The Law and Business of Auto-Title Lending. Wash. &
Lee L. Rev. 69. p.535.
Hayden, G. M. and Bodie, M. T., 2012. The Bizarre Law and Economics of Business
Roundtable v. SEC. J. Corp. L. 38. p.101.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L. 38. p.405.
Mann, H., 2013. Reconceptualizing international investment law: its role in sustainable
development. Lewis & Clark L. Rev.17. p.521.
Muchlinski, P., 2012. Implementing the new UN corporate human rights framework:
Implications for corporate law, governance, and regulation. Business Ethics Quarterly.
22(1). pp.145-177.
Uysal, G., 2012. Taylor, HRM, strategic HRM with jobs, employee performance, business
performance relationship: HR governance through 100 years. International Journal of
Business and Management Studies. 6(1). pp.87-96.
Van Koppen, B. and et. al., 2014. Roman water law in rural Africa: the unfinished business of
colonial dispossession. Water International. 39(1). pp.49-62.
Online
Sources of law. 2018. [Online]. Available through: <https://www.cilex.org.uk/about_cilex/about-
cilex-lawyers/what-cilex-lawyers-do/the-uk-legal-system/>
10