Business Law Assignment - Legal Procedures

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1: UNDERSTANDING ABOUT LEGAL PROCEDURES.........................................3
TASK 1............................................................................................................................................3
Parliamentary sovereignty......................................................................................................3
The four functioning elements of sources through which the laws are created.....................3
Role of government in the law making process.....................................................................5
Study of Statutory and Common law's procedure in Justice Court:.......................................6
Impact of Company,Employment and Contract law on business is present below in tabular
form;.......................................................................................................................................6
TASK 2............................................................................................................................................7
Discuss about various type of company with its nature of formation....................................7
Distinguish between unincorporated and incorporate business organisation on the basis that
how they are managed and funded.........................................................................................8
SECTION 2: GIVING THE RECOMMANDATION ....................................................................9
CASE 1............................................................................................................................................9
Case Scenario.........................................................................................................................9
CASE 2..........................................................................................................................................11
Case Scene............................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business law is the cycle to study the formal and informal divisions of the business
organisations. It covers the sector that defines the basic methodology of understanding different
solution to make business reasonable to understand and operate. There is a brief analysis of some
major parts of business league, such as parliament sovereignty,speech of the Royal Queen,
United Kingdoms laws source and many more. Business law is study of all criteria that is
important to run an organisation. It covers all grounds from manufacturing, purchasing & selling
of goods, commercial contracts to consumer regulations, tax benefits, trust funds and many
more. Without the brief study of these, one cannot run a business and provide qualitative and
quantitative work. The following paper will include a brief analysis of all aspects of business law
which includes parliamentary sovereignty, various forms of law in United Kingdom. The paper
will explain a critical evaluation of corporate sector, the nature, formation and its different
divisions. This study also explains the legal procedures through case laws and solutions of
solving disputes.
SECTION 1: UNDERSTANDING ABOUT LEGAL PROCEDURES
TASK 1
Parliamentary sovereignty
The parliament was formulated in the early 17th century, sovereignty refers to the
supremacy of the legislation authority. It consists of several powers which keep changing over
the years due to needs accordingly for the nation. The united kingdom is divided historical and
geographically by the previous ruling political countries into England, Scotland and northern
Ireland. In the shortest explanation it has full authority of creating laws and statues, the court do
not contain whole independence, no parliaments are connected, no law made by parliament can
be questioned (Boldt, Kassis and Smith, 2017). The first thing during the opening of Parliament
in October-November is the Royal Queen's speech called the”Speech from the throne”. It guides
through an outline for the new policies, rules and programmes of government for the assessment
year. It is a tradition and cultural ritual from ages and is followed in history of the country.
The four functioning elements of sources through which the laws are created
Legislation: It is the main-house of the country that gives its citizens a healthy, safe &
developed environment. The two main divisions of legislature are Primary which provide the

guidelines and guide outlines for the law. Secondary is about discussing about the usefulness of
the draft law and provides the legal procedure of making and transforming it into an Act in
Parliament.
Common law: It is one of the sources of united kingdoms 'unwritten constitution'.The
formation of laws are after the bench of the court which make remarkable jurisdiction. In simple
terms when a law is formed after an case law, or the case law is followed for the formation of
law. In united kingdom certain cases where the parties do who wants the jurisdiction towards
them give case laws that provides judgements that is relevant to the case & imply the same
jurisdiction which is “common law” (Busine, 2016). The historical reference to these common
laws go way back to the rulers of England where the final decision of the king was made an law
in the country. This practice was followed and used by many other rulers and was passed on to
many different countries, today more than 50 countries across the globe have 'common law' in
their jurisdiction.
European union law: The sole purpose of this union is to support and encourage
peace in the countries as mentioned on the official European union website. It represents the
members of the state government and relates to several matters from agriculture to law making.
The workings here is very simple first, the council makes the laws or policies second, ministers
are elected by the people, who debate upon them in parliament and later the commission
executes the laws. The whole and sole purpose of the formation of the union is to actively
support the countries in union and become globally dominant. Economically having the union
gives a very strong hike in global market to its all member countries and a strong competition to
other countries worldwide. It vanishes the border issues between the countries which provides
good flow of goods and services between the countries also benefits other areas such as
environmental protection, research of diversification and lower tax rate.
European convention on human rights: The (ECHR) European union was created for
protection of humans through shield of human rights, attention to create it was generated after
the World war II. It provides protection to all the forty seven countries, some of the rights
provided by them are right to life article 2, liberty article 5, fair trail article 6, freedom of
thoughts, conscience and religion article 9, right to public assembly article 11, right to education
article 2. People who have issues with their European union membership these are specifically

created to help and provide support to people of nation. Anyone who was not justified by
judiciary convention act of human rights in UK should seek help and get remedy from ECHR.
Role of government in the law making process
The law making process in the united kingdom include steps and procedures to follow before
enacting it a Law. The draft laws have to be passed through two places which are House of
“Lords and House” of Commons. Later on it is approved by Royal Queen, then it is a made an
act in the parliament. The bill should pass through the steps mentioned below to convert a draft
of law to an Act in Parliament:
 First reading: It's first formal stage in this procedure of making law by the parliament.
Basically, main-house heading of bill, its credentials, particulars and details mentioned
are read honourably in the “House of Commons”.
 Second reading: The details of bill are discussed, argued and debated in parliament. The
vital perspective of this bill is keenly observed and analysed at Parliament. Then final
agreement of keeping or discarding bill is done by voting in favour and non-favour by
ministers of parliament (Hayden and Bodie 2012). This decides either to continue this
procedure or not in addition this also represents the support of members towards party
they want to support appoint and represent at time of election for governing party.
 Committee stage: At this stage the bill is sent for valuation and to be passed on to
“House of Commons”for detailed inspection, verification, analysis, introspect and critical
evaluation. Any new changes or amendments in previous law which should be revised
and any addition in the current draft as-well because later it wont be revoked at any
circumstance.
 Report stage: At this stage members of committee representing the bill with additional
amendments (if any) debate on more and more critical filtration process of draft topics
discussed in the “House of Commons”. The bill is harshly debated in house so that later it
wont be objected by opposition as well as the people. Priority to keep citizens in mind is
to provide better analysis and critically evaluate to forward bill for enactment in
parliament.
 Third stage: A short discussion or debate is made if any new things are to be added or
else the final voting is done. After voting in favour or non-favour is accumulated bill is
either passed or rejected (Johnson 2013).

 House of Lords: The bill is sent to the House of Lords to pass through all the stages
mentioned above. Then again is send back to the House of Commons for the
considerations if any amendments made earlier.
 Royal ascent: The royal signature is the final step and the most essential stage it is
mentioned under the Royal Ascent Act 1961.In this process after the signature of the
queen (monarch). The bill is implemented and made into “acts” of Parliament.
Study of Statutory and Common law's procedure in Justice Court:
Statutory law: It is a formal body of legislation that is in written format, which provides
the judgements made in the court rooms and parliament which discuss the existence of an Act.
The first implied rule is to follow the judges perspective, which makes each civil case laws result
different from one another. These laws are already created, mentioned and used at different
hierarchy's of Courts.
Common law: This law provides the power in the hand of the judges, its base of
formation is by the judges, court rooms and judgements made. Its enlightening in nature and
provides guidelines to the parliament for the formation of new emerging laws. These are new in
each case and its generally undefinable of what solution will resolve the matter.
Impact of Company,Employment and Contract law on business is present below in tabular form;
Business
impact
Company law Employment law Contract law
Definition A company is a bunch
of people collaborating
together to formulate a
business-venture made
of a common idea or
perspective which
benefits all of them.
This law protects
employees from getting
unfair treatment & issues
like harassment, equal-
pay, discrimination on the
basis of caste, religion and
colour.
Its the legal document of
agreement between two
parties agreeing upon a
similar idea, commitment
or business term that is
providing benefits to both
sides party.
Positive New legal policies
made by government
are saving
Its the guideline that
avails the norms on how
It serves many benefits
such as it decreases the risk
of getting financially

taxes ,providing
discipline in the
working zones and
legally the owner's
personal assets are not
at stake.
to treat employees, plus it
motivates the people in
working harder. It helps
them getting tangled in
legal conflicts.
conned, saves money and a
lot of time and most
importantly provide clarity
between both the parties.
Negative Making new set of laws
after every certain
period of time will
disturb the business
including a lot of new
paper drafting.
Ignoring the laws can
lead to a big lawsuit,
that will cost money as
well as the goodwill of
the company plus a lot of
time is invested in
monitoring these norms.
It a indicate towards the
arise of few law suits as
signing the contracts
involve need of a lawyer.
Few times the loopholes (if
any)in the contracts can
cause a lot of trouble for
the other party
TASK 2
Discuss about various type of company with its nature of formation.
The given case study says that, there are three partners and they want to perform business
activities at bigger stage and because of that they are trying to take best from of advice that how
they raise capital of their business. Here, accounted has the responsibility in his hand that they he
must give them the suggestion that which form of business can perform better and raise capital
from the market whenever it is necessary.
Sole Proprietorship: The form of business where owner himself enjoy all of the rights
and profit is known as sole proprietorship. Here, owner of the company has no requirement to
give any sort of answer to anyone. The number of regulation which has been formed for Sole
Proprietorship is very rear and even there is no requirement of board of Director to control every
work. While setting up the sole proprietorship, there is the requirement to register the name of
company with its proper address in Companies House (Haidt and Trevino, 2017).
Partnership: The partnership firm is the platform of business in which number of people
come together and share their skills and resources. In this types of business, companies partner

have to share their profit and losses according to the earning. This types of business is favourable
for certain number of people. The entity is not separate in it due to partners have to work by
taking lots of risk. The method of formation of partnership always done with the registration that
what is the name of a firm and how many member will work in it and who will take most of the
responsibilities.
Corporation: The business organisation where work load and pressure is quite high
compared to other source of business. This types of business need to work according to their
schedule and plans so that every work can be managed. Corporation is totally different form its
member because if any member joins and left doesn't matter to its existence. Here, decision
taking responsibility is given to Board of Directors who take all of the decisions. Whenever this
types of organisation is being formed, name of the company should be selected and after that
physically address should also be included. After that, it is important that company must draft the
MOA & AOA which tells that how company will work in future period of time to obtain their
vision. All of the documents are needed to be submit at the time of doing registration in
Companies House (Hansen, Rutt and Acheampong, 2018).
Distinguish between unincorporated and incorporate business organisation on the basis that how
they are managed and funded.
Incorporated: An incorporated is a separate entity and has it's legal rights. It protects the
owner from bearing any debts or liabilities because debts payment is made from the money
invested in the company's capital not owners personal assets. If any lawsuit is to be formed
against business it will be in the name of the company not the owner.
Unincorporated: An unincorporated company is formed when two or more people
having the similar areas of interest do business together for benefits. Here the owner is held
liable for any debts of the company and in the case of an lawsuit.
Referred to Incorporated Unincorporated
Management The management of an incorporated
company is a little complex and
involves a lot of paper work.. It is
much more easy once established as
it provides benefits like saving tax,
The management of an unincorporated
company doesn't involve much
paperwork and is easy to setup, but the
owner is always held liable for the
company's action and his personal

less accountability and long run. The
initial stages are difficult to
maintain and the responsibility on
the directors is too much.
assets are at stake. Maintenance and
workload is generally divided between
the partners so it is not too much
responsibility on one member.
Funding  Bank loans
 selling corporate stock,
assets and securities.
 Personal assets
 bank loans
Advantages and disadvantages of the company in a comparison to partnership:
Advantages:
 liability: Owners and the shareholders are not at risk of loosing personal assets , in a
partnership the owners personal assets are always at stake.
 Source of capital: Major benefit of having a company is easy access to raise capital
through selling corporate stock.
Disadvantages:
 Attestation and prices: Documentation of records for government is very important, states
charge for franchise tax and all paperwork must be complete before filing articles of
incorporation.
 Excessive rules and norms: many requirements like board of directors, meeting, breaks
and documentation for public records are to be fulfilled by the law to maintain the
company.
SECTION 2: GIVING THE RECOMMANDATION
CASE 1
Case Scenario
In the given case Champion Ltd, company based in London was given a task by the
premier league club to create path for new stadium, which it needed to shift the business to north
London. Due to this customer sales decreased which costed the company to fall in the business,

eventually it lead to the state where it was not able to pay the bank or any other creditors. After
giving numerous chances the creditors threatened to seek judiciary help in 'winding up' the
company.
Winding up: The term winding up means when a company is declared bankrupt or
insolvent and has no intension to formulate again. It liquidates its assets and other securities and
pay the creditors. Reaching this point includes failure from business, non payment to the
creditors, goodwill ruined in the business and no capital investment left to do further business.
This procedure leads the company for its final period of assessment year.
Different methods for winding up a company:
Creditors voluntary liquidation: The term defines the situation where the company is
being dissolved by the directors. The creditors and shareholders agree with this decision of the
owners. The following process is completed as mentioned in the Insolvency act and Insolvency
rules 1986. The procedure for it is quite simple and easy to implement:
 The directors and the members pass a special resolution notice to wind-up.
 Then a article is published in public records, in the period of 5-14 days.
 A signed copy of resolution should be sent to the 'Company House' within 15 days.
 A liquidator is nominated for the valuation of all the assets and securities of the company.
 The board of directors take a meeting with the creditors in the period time of 14 days
 Once all the assets are liquidated and the net amount is acquired, the liquidator conducts a
meeting with the members and the creditors to provide their share of payment and
receipts.
Compulsory liquidation: In this the company is unable to pay the loans and creditors off
and has reached the limit of being declared bankrupt. Generally a creditor is the one to file such
petition to seek the money back. In some scenarios the company seeks the help of judiciary to
dissolve. It files a petition in the court and the trail date is pronounced by the judge. The
procedure for it is quite complex and time taking:
 The directors file a petition in court to seek help in liquidation.
 The petitioner shall publish the article in the gazette for the public records and sealing the
company's bank accounts.
 The court will provide the trial date of the petition, which would decide weather the court
shall take up the petition or reject it.

 Accordingly passes the order for liquidation.
 A copy of 'certificate of service' is sent to the court, which declares the company
winding-up procedure is complete.
Members voluntary liquidation: In this case the company is nor insolvent or bankrupt.
Here, the company wants to wind up due to opening a new venture or does not wish to continue
the business any-more. Hence wants to dissolve the company and the procedures for it are very
simple and quick:
 The directors file the 'Declaration of solvency'.
 Directors take a meeting with other members.
 A liquidator is appointed to accumulate the real value of the assets and securities.
 A official notice is passed on through the gazette.
 Payments to the creditors and members is made and if any of it is left the owner either
liquidates it and en-cashes the money or sells it to purchase shares of another firm. Hold a final meeting with the members.
Relevant case law:
Case Name: Platinum villa Ltd
Facts: In this case the company was going in debts for more than 2 years and at the creditors
kept increasing. This lead to the company getting bankrupt and the creditors filled a petition in
court for voluntary liquidation. Eventually, the company got liquidation order from the court.
Judgement: The court after accepting the petition considered to liquidate the company. Since
the company was not in any extent was able to recover all its debts and the creditors were very
vigorous in nature to get their money back.
Recommendation: In this case of Champion Ltd. They should consider the option of
compulsory liquidation, since the company already does not have sufficient money and other
procedures will be costly in nature. Hence the company should go with the courts jurisdiction.
CASE 2
Case Scene
In the following case Mr Anderson the CFO at Amber Ltd who used to handle the
confidential files of the company. The contract between him and Amber Ltd specified 12 months
notice clause of termination or resignation. Beta Ltd the competitor of Amber Ltd offered him

the post of CEO, later he gave a notice of resignation stating that he is not happy working in the
company and hence wants to quit. Amber Ltd pointed out the contract clause plus justified that
they will seek an injunction to avert Mr Anderson to join any of their competitors. Also he has
breached his duties and the contract of the period of 12 months.
Contract: It is the written legal document between two parties that comprises the policy,
rules and the terms & conditions on which the parties agree on. A contract agreement can have
any purpose from goods and services or any other form of business. It protects both the parties in
the matter of breach which avails them the compensations they acquire to recover their loss.
Breach of contract: This is legal scenario where a contractual agreement is broken and
the opposite party objects issues and seek help to claim compensation. Depending on the
agreement it can happen if the party does not complete the work at time or its not according to
the qualitative levels mentioned. If any parties do not provide proper fulfilment of their duties the
other can file a lawsuit against the other.
Code of ethics and duties: This code provides the ethical norms for the employee,
employer, company or any other member connected to business industry. These code of ethics
generally being honest, completing task with qualitative and quantitative elements. Such as being
loyal and honest to the company and many such norms which are for the betterment of the
employee and the employer. These are not obligatory in nature but shall be followed for better
results.
Injunction: In simple terms it is a remedy provided by the order from the court for
preventing a person or company to do a specific task or any other thing that would cause harm.
Generally an injunction is of two types, prohibitory which stops a person from a specific work
and mandatory where one is forced to fulfil a task.
Alternate dispute resolution: It is the procedure to seek justice but without the need to
go court. ADR provides various methods to solve disputes which are money and time saving in
nature, plus they produce better solution. These resolution are also promoted by courts and are
more effective in nature.
Its methods are in three divisions mentioned below:
Mediation: It is process where a third neutral party intervenes between the parties. The
third party discusses the facts and nature of the disputes and the solution each of them seek.
More over this neutral party avails them the best offer after both parties have bargained for their

sides. Later provides the solution for the betterment of both sides. The third party cannot advice
or negotiate for any side, its work is clearly to just pass information and get results.
Conciliation: It is a discretionary procedure where both the parties looking for solution
agree for this procedure. Here both the parties are looking for solving the disputes and find
solutions to their problems, also here parties are free to select the time, language, place and their
area of interest. Its very time saving and money efficient also it avails a impartial and honest in
nature. In addition to that the matter is kept confidential in case the parties do not want any
intervention.
Arbitration: Its the procedure which involves the intervention of a arbitrator, who will
discuss the facts of the case either separately or together with both the parties. An arbitrator
discusses the probability to claim and negotiation they want to extend to the other party. In
addition to that an Arbitrator can provide guidelines for better and effective results. Once the
negotiation offer is accepted and becomes a legal document approved by court it cannot be
revoked.
Recommendations: In the case of Mr. Anderson vs Amber Ltd, they should consider
Arbitration because the matter is very complicated and the advice from the arbitrator will help
them negotiate better, claim the benefits and seek justice quickly. So that neither Mr. Anderson
nor Amber Ltd are kept captive because of the dispute and concentrate on their lives or business.
Other methods are not that suitable for this specific case.

CONCLUSION
Compiling the whole outline of the report, we can extract that the United Kingdom
system, massively avails all the rights and regulations that protects the people of the nation.
Their are rights related to breach of contracts till duties of the members of the business cycle. Its
also available with several remedies in case of getting things done according to correct
procedures with the help of methods of ADR to resolve disputes. The case laws mentioned above
provide help in understanding the circumstances and avail better results. This project report will
provide a better understanding of organisations, their workings and legal procedures though
which they can be set-up and provided legal help.

REFERENCES

Online
Sunrise brokers LLP vs Rodgers 2014 EWHC 2633 (QB). 2017. [Online] Available Through:
<https://www.employmentcasesupdate.co.uk/site.aspx?i=ed23936>