English Legal System and Business Organisation

The report provides a comprehensive overview of the English legal system, including its sources of law. It also delves into the various types of business organisations, such as sole proprietorship, partnership, limited company, and more. Additionally, it outlines the steps to form a company and discusses dispute resolution methods like arbitration and mediation.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
LO 1 Nature of the legal system ................................................................................................3
TASK 2............................................................................................................................................6
LO 2 Potential impact of the law on the business ......................................................................6
TASK 3 ...........................................................................................................................................8
LO 3 Formation of different types Of Business Organisation ...................................................8
TASK 4............................................................................................................................................9
LO 4 Appropriate Legal solution to resolve areas of Dispute....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business Law include all the regulations that prescript the way to form and run an
enterprise. However, this includes all the guidelines that govern how to initiate, purchase, carry
off and close or sell any kind of business. Thus, business laws set up the regulations that each of
the organisation ought to follow (Adams, 2018). Moreover, the report will highlight about the
English law system that is divided into further two laws that is criminal law and civil law.
Further, the project will highlight about the sources of law of the English legal system and along
with it will outline the act of parliament. On the other hand, the assignment will frame about the
concept of gig economy and under which it will explain the difference between the self
employee and employed. Eventually, the assignment will highlight the alternate dispute
resolution method which includes arbitration and mediation through which k's business can
resolve their disputes.
TASK 1
LO 1 Nature of the legal system
The English law system in UK is divided into 3 major legal power or self-contained law-
breaking structures namely; England and Wales, Scotland, Northern Ireland and each legitimate
system has its very own legal guidelines, courtroom system, attorneys and judges. Moreover,
according to English law system laws that practice in a single legal power, specially if they're
derived from law i.e. Acts of Parliament and Statutory units may also observe equally, or very
further, in different legitimate system. Further, while the courts in every legal power can decide
instances differently from those in different jurisdictions, the very last enchantment for them
goes to the UK ideally suited court i.e. supreme court. However, in English law system there are
two types of legitimate laws namely; criminal law and civil law (Miller, and Jentz, 2017).
Criminal Law: The criminal regulation is relevant with offense happen against society at
higher level are known as crimes. therefore, Criminals are defended with the aid of the state.
Further, a criminal document is a listing of law-breaking of which someone has been
condemned in a justice court docket or the Crown courtroom. However, the statistics is held on
the Police national computer (PNC). Further, local police military force may additionally keep
their own statistics. Moreover, If a person has been found guilty of an offence for which a final
judgement of more than 30 months turned into imposed irrespective of how a great deal time

they virtually spent in jail their sentence can in no way be spent and as it stays an unexpended
conviction, this person have to constantly disclose their condemnation when requested
approximately their criminal document. As crime is the offence which is punishable in the eyes
of law. If any person commit any of the offence or hurt any person or injury is given than it is
considered to be criminal and there crime is proved by the act done by him.
Civil Law: Civil law is taken up with disputes between personal parties, for instance,
patron and supplier, business enterprise and worker and the victim party take action in courts,
typically to reap damages or a command. However, civil regulation may be defined in
competition to 3 alternatives:
 Civil as opposed to criminal regulation.
 Civil in the experience of secular law, as opposed to religion or different styles of
non secular regulation.
 Civil regulation as a legal machine, based totally on a code of legal guidelines for
instance, the Code Napoleon developed in France, instead of the common law
machine, primarily based at the doctrine of precedent (Beatty, Samuelson and
Abril, 2018).
Sources Of Law
The predominant sources of English legal system are as follows:
 Statutes: governance from the United Kingdom Parliament and other devolved
parliaments. However, Statutes arise from Parliament. For instance: Equality Act 2010.
and every Act has a chapter quantity: EqA 2010 is chapter 15. Further, the starting point
is often an inexperienced (consultative) paper. Draft content (a white paper) then comply
with, earlier than a bill is offered before Parliament. finally, after Royal Assent, an Act of
Parliament turns into regulation inside the UK.
 Delegated Legislation: an Act of Parliament may additionally provide a minister or some
other party the authorization to make criminal provisions. Thus, fundamental vehicles are
statutory gadgets.

 Common Law: regulation made through ideas set up in instances over the centuries at
some point of the standardisation of regulation throughout England and Wales from the
eleventh century ahead.
 EU Law – According to this law, pronouncements need to be applied into a member
states national regulation; guidelines take impact automatically in all associate states.
Act Of Parliament
In English legal system, Act of Parliament is primary regulation exceeded through the
Parliament of the UK.
A proposed new regulation is known as an invoice. Further, bills need to be agreed by
both homes of Parliament and receive Royal Agreement from the Queen earlier than they are
able to become Acts of Parliament which make the legal system. The bill is presented through a
first reading. that is honestly a professional word that a bill is going to be proposed and what it's
approximately (Markham,2018). It offers MPs time to set up and talk about it. Further, after the
first reading, the second one reading come in to the effect. At this factor the concepts are taken
into consideration on the ground of the residence. The bill is then sent to be overlooked at via
small groups of MPs who analyse the invoice in-depth. Further, at the third reading, the invoice
is checked and there's a vote and if the authorities has a majority, the bill is then handed to the
residence of Lords. However, once a bill has exceeded via both houses, it is despatched to the
Queen for the Royal Assent. as soon as it has Royal Assent the invoice will become an Act of
Parliament. it's miles the law of the land. Thus, on account that 1952, The Queen has given
Royal Agreement to 3135 Acts of Parliament.
As in the case of K company, they have to trained their staff regarding the crime
committed in case of criminal and civil nature. As crime is equal in the eyes of law as if affecting
someone rights and if anyone engaged to commit such crime they are punishable under the rules
of law which is imposed by parliament. They address their operation staff that the English legal
system follow the strict rules which provides security to the people and the person who are
engaged with their work are also secure. It depends upon the crime and then only the punishment
are decided.

TASK 2
LO 2 Potential impact of the law on the business
The Gig Economy
The gig financial system describes the way of corporations hiring self-directed
contractors and self-employed person instead of full-time employees. Further, employees are
paid for each man or woman gig they do together with meals delivery in preference to by means
of day or through hour. However, on this kind of labour marketplace, jobs are an increasing
number of impermanent and flexible and employees do not have constant agreements. Further,
some personnel like the flexibility that is provided to them, mainly in the event that they best
need to work but other employees are left with little desire but to work for full-time job without a
settlement to provide task security (Faulkes,2018).
Further, in gig economy, running as a freelancer way the employees can set their own
running hours and choose how a good deal or how little they need to tackle and thus,
achievement can be described for their very own terms - whether they want to double down on
all possibilities to be had to maximise earnings or pick out and select work relying on how
rewarding it is, or whether it suits their own style.
Self Employee And Employed ~
Factors Employed Self Employed
Risk In this, no risk is associated. The person carries the huge
risk in the business.
Benefits They enjoy various benefits
which is given by company in
terms of transportation cost,
medical facility, children fees.
They have no such benefits,
the profits earned are their own
benefits.
Holidays They enjoy the proper holiday
schedule and also avail various
leaves but sometimes extra
holiday result in deduction in
their salary (Difference
Between Self Employed and
Holidays depends upon them
only and no salary deduction.
There payment depends upon
day to day activities.

Employed, 2019).
Recruitment They get recruited or
incremental in terms of
rewards and also offer senior
position.
They work on the same post.
MR. SMITH V PIMLICO PLUMBERS CASE
In this case, Mr smith is employed and he wants some extra holiday and more
compensation which is due from the previous year but Pimlico Plumber impose so much
restriction on him like wearing uniform, Carry safety tools and to hold the conduct at the time of
working. As Mr. Smith is not agreed for such terms and conditions. In the case discusses that, on
20 February 2018, the supreme court docket of the UK observed that a plumber, Mr Smith, was a
worker instead of self-employed owner, enable him with employment rights by providing
various benefits like reasonable changes and holiday pay. However, despite the fact that Mr
Smith had a few diplomas of flexibility for the hours he had performed his operations and
changed into dealt with as self-hired for tax and VAT functions, it changed into stated to be
essential that Mr Smith turned into required to carry out the work in my opinion. Further, in
addition, as in Aslam, the degree of manipulate exercised via Pimlico Plumbers and the
combination of Mr Smith within Pimlico Plumbers had been conflicting with Pimlico Plumbers
being a purchaser or patron of a commercial enterprise run with the aid of Mr Smith.
Employment Act
Employment Law is generally imposed on companies and their employees who are
engaged with their business activities and work on hazardous places. As generally the rules and
norms are imposed on employed person and not for the self employed person. As employee are
engaged with them and they carry the business to the next level and they expected that it is the
duty of the management team to take care of their life (Hörner, Morelli and Squintani, 2015). As
in case of K, they imposed certain rules which the delivery company had to follow while at the
time of delivery services. As if any accident occurs they can easily identify the person and also it
helps them to know the person is on duty or off duty. If they are employed with the company it is
the duty of the company to pay them for the damage incurred at the time of working hours.

TASK 3
LO 3 Formation of different types Of Business Organisation
Sole proprietor: Sole Proprietorship is a one person commercial enterprise employer.
Thus, it's far the type of entity that is completely owned and managed through one individual
person or woman known as the sole owner. The commercial enterprise and the person are the
equal, it does no longer have a separate legal entity.
Sole owners are beneath no responsibility to pick a trade name for their enterprise, when
they enter on putting in the agency. Further, a sole trader has to make sure their enterprise meets
the state and federal taxation necessities. due to the reality that legally, a sole tradership and a
sole dealer are a single entity, the sole dealer bears the levy of the business.
In sole proprietorship, it is the responsibility of the owner to make all the business related
decisions and monitor the activities employees.
Partnership: A commercial enterprise partnership is a particular sort of legitimate
relationship defined by using the agreement among two or extra people to hold on an enterprise
as co-proprietors. Thus, a partnership is a commercial enterprise with a number of proprietors,
every of whom has invested in the commercial enterprise. However, some partnerships consist of
individuals who perform tasks within the commercial enterprise, even as different partnerships
might also include companions who have confined participation and additionally confined legal
responsibility for the money owed and court cases against the commercial enterprise (Thompson,
and Sandberg,2017).
Thus, the duty of partners is partnership business is fiduciaries that means each partner
owe to each other and act keeping in mind the benefits and the losses of each other.
Limited Company: A limited company is its owned legal company. Thus, a personal
limited enterprise has one or greater contributors, also known as shareholders or proprietors, who
purchase in via private sales. Further, directors are organization personnel who maintain up with
all administrative obligations and tax filings but do now not want to be shareholders. The
organisation’s finances are break away the proprietors’ and are taxed one after the other.
Furthermore, according to the legal requirements the company must have at least two
partners and two directors and they should have minimum paid up capital.
Steps To Form A Company

As K company decided that they form a limited company to expand their business into
the large scale. As to form a limited company they have to choose a company name and decide
their address and place where they establish their business. After choosing the name and address
they register the company into a limited company. The directors are appointed and also the
company secretary if any is appointed (Beatty, Samuelson and Abril, 2018). The duties of
directors are that they handle all the matters of the company and also the company management
depends upon them. They provide various details of the company regarding their share to the
shareholder, investors and lenders of the company. They must prepare the article of association
which sort the taxes of the company. After completing all such documents they disclosed their
name through advertisement or newspaper regarding the company establishment.
As in the case of Salamon v Salamon Ltd., As Salamon is deal with the business of
leather shoes as their children also want to enter into their business as Salamon decides to
convert their business into the company and add partner in their firm as their children. They
purchase their business by paying £39,000 and their deal was done in £10,000 debentures and
£20,000 in fully paid up share with £1 share each and remaining balance in cash. Within a year
the company become insolvent and they started the liquidation process. The assets of the
company are not sufficient to pay their debts. Mr. Salomon is liable to clear all the debts. As the
company is the legal entity and they are liable to pay the debs and the surplus amount will help
them to rectify such expenses due.
As this helps K business as they can easily enter into the market and can borrow funds
from the bank through their reputation and goodwill. They can also attract the investor and
shareholder to maintain trust in the company and their funds are secured in the business.
TASK 4
LO 4 Appropriate Legal solution to resolve areas of Dispute
Alternative Dispute resolution (ADR) is the process for resolving the conflicts without
litigation, such as arbitration, mediation, or negotiation. However, alternate dispute resolution
approaches are usually less costly and more time saving. Thus, they're increasingly more being
utilized in disagreements that could otherwise bring about litigation, along with high-profile hard
work disputes, divorce moves, and personal health problem claims.

Thus, one of the major reasons that k's business may additionally prefer ADR for
resolving the conflicts is that, not like hostile litigation, ADR approaches are regularly
cooperative and permit the both parties to apprehend each others problems and issues. Further,
ADR also permits the parties to come up with extra creative answers that a court may not be
lawfully allowed to enforce (Segal and Choi, 2016).
In order to resolve the disputes, k's business should undertake arbitration and mediation
resolving methods in order to solve the conflicts, where in, the purpose of mediation is for an
amoral third party to assist controversialist come to an agreement on their very own, thus, in
place of implementing an answer, an expert mediator works with the conflicting facets to explore
the interests implicit in their positions. However, Mediation can be effective for the k's business
at allowing parties to vent their emotions and fully investigate their grudges. Thus, running with
events collectively and now and then one at a time, mediators can attempt to help them find out a
solution that is stable, self-imposed, and non binding.
On the flip side, in arbitration, a neutral third party serves as a magistrate who's liable for
resolving the conflicts. Further, the arbitrator concentrate to both parties argues its case and gives
relevant proof, then renders a binding choice. The controversialist can negotiate truly any factor
of the arbitration process, such as whether legal professionals may be present on the time and
which evidence will be used (Zhang, 2017). Thus, Arbitrators hand down selections that are
usually private and that cannot be requested. Thus, arbitration tends to be lots much less
expensive than litigation.
CONCLUSION
The report will briefly summarise about the business law system of k's company under
which it has highlighted about the English legal system and along with that it will highlight about
the sources of law. Furthermore, the assignment have highlighted about the types of business
organisation and their legal framework which is inclusive of sole-proprietorship, partnership,
limited company etc. Moreover, the report have highlighted about the steps through which the
individual person can form a company. Eventually, the assignment have framed about the
dispute resolution methods namely; arbitration and mediation though the k's business can resolve
their conflicts.

REFERENCES
Books and Journals
Adams. A., 2018. Law for Business Students Sixth edition. Pearson Education Limited.
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Essentials of Business Law. Cengage
Learning.
Campolieti, M. and Riddell, C., 2018. Does Mediation-Arbitration Reduce Arbitration Rates?
Evidence from a Natural Experiment. ILR Review, p.0019793918810219.
Dungan, A., 2017. Sole Proprietorship Returns, Tax Year 2015. Statistics of Income. SOI
Bulletin.37(2). pp.2-28.
Faulkes, Z., 2018. Resolving authorship disputes by mediation and arbitration. Research integrity
and peer review.3(1).p.12.
Hörner, J., Morelli, M. and Squintani, F., 2015. Mediation and peace. The Review of Economic
Studies.82(4).pp.1483-1501.
Markham, M., 2018. Litigation, Arbitration and Mediation in International Tax Disputes: An
Assessment of Whether this Results in Competitive or Collaborative Relations. Contemp.
Asia Arb. J.11.p.277.
Miller, R.L. and Jentz, G.A., 2017. Business law today: The essentials. Cengage learning.
Segal, S.P. and Choi, J.S., 2016. Ownership form and quality of care in sheltered care facilities:
Chain-affiliated business vs. sole proprietorship.
Thompson, S. and Sandberg, R., 2017. Common Defects of the Divorce Bill and Arbitration and
Mediation Services (Equality) Bill 2016-17. Family Law, 47(April), pp.425-451.
Twomey, D.P., Jennings, M.M. and Greene, S.M., 2016. Anderson's Business Law and the Legal
Environment, Comprehensive Volume. Nelson Education.
Zhang, X., 2017. What Does China’s Sole Proprietorship Law Mean to Foreign Business
People?. Business Law Review.38(2). pp.61-63.
Online

Difference Between Self Employed and Employed. 2019. [Online]. Available through:
<http://www.differencebetween.net/miscellaneous/career-education/difference-between-
self-employed-and-employee/>.