Business Law and Legal Processes in UK

The assignment discusses the crucial role of business law in every business organisation and its importance in forming a business entity in the UK. It highlights various types of legal processes, such as contract law, employment law, and company law, that support business organisations. The document also mentions the Royal Assent Act, 1961, which is essential for final approval of any law formed in the House of Parliament. Additionally, it touches upon ADR (Alternative Dispute Resolution) as a process to resolve disputes between aggrieved parties with minimal charges.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different Sources of Law.......................................................................................................3
P2 Role of Government in Law Making and Application of Statutory and Common Law in
Courts..........................................................................................................................................4
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
development................................................................................................................................6
TASK 2............................................................................................................................................6
P3 Role of Company, Contract and Employment law in business activities..............................6
M2 Differences between legislation, regulations and standards to analysis potential impact
upon business..............................................................................................................................7
D1 Critical evaluation of the legal system and law.....................................................................7
TASK 3............................................................................................................................................7
P4 How various types of business organisation are legally formed?..........................................7
P5 Who can manage the business organisation and how funds are managed in it?....................8
M3 Advantages and disadvantages of different types of business organisation on the basis of
formation.....................................................................................................................................9
D2 Critical review and an evaluation of the different types of business organisations............10
TASK 4..........................................................................................................................................10
P6 Identification and recommendation of appropriate legal solutions for resolving a range of
disputes using relevant examples..............................................................................................10
M4, D3 Comparison of different sources of legal advice.........................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................13

INTRODUCTION
Business law can be defined as the law which is applied in business entities, such as
corporations and partnership firms. It's main function and purpose is to protect rights and
liberties, establishing standards and resolving legal disputes etc. when it comes to businesses. It
is necessary because it helps to operate day to day commercial activities. Some of the major
branches of commercial law are Corporate, Tax, Property and Contract law. In this report all the
major decisions and advises regarding disputes will given on the basis of Senior Employee of
Global Solicitors. Also, in this file there will be detail information regarding different sources of
UK law with necessary role of government. There will discussion on various types of business
organisation and how they are legally formed with helpful diagrams. Also, at the end disputes
will be solved by taking relevant case scenario.
TASK 1
P1 Different Sources of Law
The Legal system of UK contains a group of four countries. These four countries are
England, Wales, Scotland and Northern Ireland. The application of all these laws are also
different as some of them applies to whole of the four countries and some applies only to one,
two or three countries only. Parliament is the supreme legal authority in UK and only the
Parliament has the right to enact any law it wishes. Such legislation is superior to all other
sources of law and may not be challenged in the courts (Folsom, 2013). The law of UK is based
on four different sources which hare discussed as under:
European Union Law: It is one of the major sources of Law in UK. It plays an important role in
maintaining peace environment in the United Kingdom. Around an estimation of 60,000 laws are
made and enforced by European Union Law. However the final approval for the confirmation of
the law to be passed or not is taken by the Parliament of the UK. Also, the Law made by the
European Union Law are to operated only within those countries which are a member of the
European Union.
Legislation: Another source of Laws in UK is the Parliament House. It is another place where
the laws are made but it is the only place where the laws are passed and given with the final
approval to be issued in public interest. Any law passed by the Parliament will be followed by

whole countries in UK unless otherwise stated clearly. Parliament is the only place where the
right to give final approval to application or non application on any law is given.
Common Law: The legal system of Wales and England is a common law and the decisions
made by senior proceedings are accepted and followed. These laws are enforced only in the case
if there is no discussion over that in the Parliament (Nicolăescu, 2013). Also the amendments in
these Acts also takes place from time to time as and when it is needed. These laws are prepared
on the basis of some particular situation arises in front of the Court to which there has not been
passed any resolution yet. In common law, the power to enact any law in the public interest is in
the hands of the Supreme and High Court of the country.
The European Convention on Human Rights (ECHR): In the formation of laws within UK,
ECHR also plays an important role. As the UK is consisting of four countries which are
Scotland, England, Northern Ireland and the Wales. So ECHR makes rules and regulations to be
followed by each and every individual living in all of the four countries. From its name it is clear
that the major role played by ECHR is to protect the rights of an individual under the Human
Rights Act, 1988. With the passing of time, there are also some amendments made in the law as
per the need and requirement to change.
P2 Role of Government in Law Making and Application of Statutory and Common Law in
Courts
The main work of making and passing the laws is done by the Parliament but in addition
to this, the Government of the country also plays an important role in making law (Pentony,
2013). The Parliament of UK is also divided into two parts which are House of Commons,
abbreviated as HC, and the second is the House of Lords, abbreviated as HL. In HC, there are
around 650 members, and in HL there are 800 members. In order to make any law to be enforced
the Royal Assent of House of Lords is needed. However, the role played by the Government in
making and enforcing the laws. Below is the explanation of the stages which are included in the
role of government in law making process.
Bill: It is the draft which is presented by the government on behalf of the civil layers
which makes that bill. It will provide an explanation about all the details of the proposed law.
There are three types of bills which are included in it such as private bills, public bills, and
private members bill.

First Reading: Only the title or the name of the bill and the including of the bill is
provided to the House of Commons.
Second Reading: In this stage, the details mentioned in the bill is debated among all the
members and the necessary amendments are also made in the respect of the bill. After that MPs
vote on pass or fail of the bill and depending upon the majority, the decision is taken.
Committee Stage: In this stage the bill is passed to the House of Common members of
Parliament and if any needed than some further amendments are also made in the bill.
Report Stage: The committee reports the debates and amendments back to the House
and further the debate and amendments are made in the House(Perry-Kessaris, 2016).
Third Reading: In this stage, the bill is again presented in the House and short debate is
done on that about its acceptance and rejection.
House of Lords: In this stage the bill is sent to the House of Lords and then all the above
mentioned stages again takes place as same in the House of Lords.
Royal Ascent: This is the final stage where the bill gets final approval and becomes and
act of the Parliament.

Legal systems in UK (England and Wales): overview. 2019
Application of Common and Statutory Law in Justice Court:
Common Law in Justice Court: In some circumstances the court does not an appropriate
solution for the case preceding the the court than in order to finalise the result of the case,
common law is applied (McGraw-Hill/Irwin and Shackelford, 2014).
Statutory Law in Justice Court: Mostly the decisions made by the Justice Court are given
on the basis of following the guidelines provided in the statutory law to declare the result.
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and development.
The recent changes in the UK law have shown the great impact on business organisation.
Even government can do more update on company law, employment law which can be benefited
for general public and companies. This updates can change the working style of organisation to
Illustratio
n 1: Process of forming law in UK

achieve there targets easily. There are many advantages of UK legal system because they have
consistency and certainty in their law which helps people to plan work according to that.
TASK 2
P3 Role of Company, Contract and Employment law in business activities.
The role of company, contract and employment law increases when it comes to business
as every sets of rules and regulation need to followed by them (Reed, 2013). For better
understanding lets take a example: Vodafone UK has registered themselves under the Companies
House where as they had done lots of agreement with other companies and even they fall under
the employment law of UK. The impact of this different law on Vodafone are:
Here, Vodafone is running a large business organisation so they need to follow the
guidelines of Company law, 2006 where they need to conduct mandatory General meeting in
every financial year and must submit the report to Companies House.
Form Contract law point of view, Vodafone has done different contracts and agreement
with other companies, so that they should complete all those contracts on time and if single
breach of contract from anyone can create the possibility of being sued.
At the end, Vodafone need to provide all those safety equipment to their employee's who
are working in Hazardous area as they falls under the category of Employment Act. Also, every
worker should get accurate amount of wages according to there working capacity.
M2 Differences between legislation, regulations and standards to analysis potential impact upon
business.
Legislation: It is the fix patter of rule which are made by the government of particular
country. It is the process of constituting any new law with the prior concept of senior authorities.
Regulation: It is the detail instruction regarding how laws are to be enforced or carried
out in a country. The application of regulations are mandatory to be followed by every general
people (Santoro, 2015).
Standards: It is the form of guidelines which provide specifications for any product,
services and systems. Every organisation must follow the standards which are set by government
else it can fall under the category of breach of standards.

Legislation, Regulation and Standards have huge impact on day to day activity of
organisation as they need to follow different rules and regulation of employment law, contract
law and many more and even they need to main the standard and quality of every products. If
this guidelines are not followed then different penalties can be imposed.
D1 Critical evaluation of the legal system and law.
Legal system and laws of UK have set the particular standard to maintain the peaceful
environment. It is mandatory that everyone follows legal rules of UK. It helps to reduces the
workload of organisation because laws are defined in detail structure, which should be followed
by everyone (Schmidt, 2018). There are also negative impact of this types of legal rules as power
of implementing legal law in UK is in hands of Parliament and no one have the authority to
challenge them as it is mentioned under the Royal Ascent Act, 1961.
TASK 3
P4 How various types of business organisation are legally formed?
It is necessary for every organisation that they need to be legally form according to the
guidelines that are provided by commercial law. The detail information of various organisation at
the of formation are mentioned below.
Sole Proprietorship: This types of business organisation doesn't have any legal existence
in the eyes of court so there is no requirement of any legal process while incorporating. This
types of businesses are managed by individual persons only.
Partnership: To start any kind of partnership firm, it must register themselves under
Partnership Act. Also, agreement between partner must be done with adding the purpose of
forming it which should be submitted to Companies House (Stout and Blair, 2017).
Joint Venture: This types of business organisation are formed for the purpose of earning
more profit. Joint Venture are mainly done between two partnership firm, two different
organisation having same MOA. For forming joint venture it is mandatory that MOA must be
prepared with motive of particular venture which must be forwarded to Companies House.
Corporation: Corporations are the form of business where organisations are separate and
have legal existence in the eyes of law. This the most advantageous way to operate a business as
there are lot of benefits provided to it. The method of formation of Corporation is:
 Before starting a business name should be selected and it should be special.

 Address must be mentioned properly.
 Director and one shareholder should be appointed so major portion of work can be done
with their consent (Pentony and et. al., 2013).
 SIC (Standard Industrial Classification) should be submitted in Companies House.
 “Memorandum of Association” and “Article of Association” with duly signed by all the
shareholders should be prepared (Besley, 2015).
 PSC( People with Significant Control) form should be submitted (if any).
P5 Who can manage the business organisation and how funds are managed in it?
Every business organisation require the key person who can take the major responsible to
handle its day to day activity and funds plays crucial rule to expand the form of business. The
main source of funding with its management system are written down as follows:
Sole Proprietorship: This form of business are mainly managed by owner themselves and
the major source of funding is personal assets only.
Partnership: Here, business is managed authorised partner and the main source of raising
fund is personal assets, loan from different financial institutions.
Joint Venture: The responsibility to manage Joint venture is in the hands of manager of
that particular project and there major source of funding is from the capital of organisation or
personal assets and even loans can be taken from baking institutions (Chemerinsky, 2016).
Corporations: Corporations are managed by Key Managerial Personal (KMP) and even
they have various source of funding like:
 Shares, Debenture and Bonds can be issued,
 Loan can be taken from financial institution, etc.
M3 Advantages and disadvantages of different types of business organisation on the basis of
formation
S.N Business Organisation Advantages Disadvantage
1. Sole Proprietorship - This types of business
organisation does not required
paper work.
- It can be start at small amount
- There is no physical
existence.
- Burden of Liability is in the
hands of investor.

of capital.
2. Partnership - Paper work is less and
minimum amount of start-up
cost.
- Decision-making process will
be easier as suggestions can be
taken from other partners too.
- Even in partnership firm
the burden of liability is in
the hands of partners.
3. Joint Venture - Goals can be achieved easily
and fast.
- Resources can be utilised
properly.
- Joint ventures have vague
objectives.
- Lots of planning and
research is required.
4. Corporations - It can easily trade anywhere in
the world.
- Taxation rates are more
favourable.
- Formation process
consumes additional time.
- Huge amount of capital is
required for setup.
D2 Critical review and an evaluation of the different types of business organisations.
Various types of business organisation can be formed on the basis of investment by
investor. In UK, the rights are provided to investor that in which kind of business they are
interested. This law have influenced lots to investor to invest there money in the sector of
business. But this laws have also many cons where major issue is with the liability of some of the
business and even don't have the capacity to sue and be sued in the name of organisation because
of this reasons up-gradation is still required in Company law (Fici, 2016).
TASK 4
P6 Identification and recommendation of appropriate legal solutions for resolving a range of
disputes using relevant examples.
In the given case, Mr. Salomon is the employee of Magnetic Ltd. who is willing
to change its company by taking the position in Alfa Ltd. As per the contract with Magnetic Ltd.
Mr. Salomon must inform the company before 6 months with prior notice. The reasons which
were given by Mr. Salomon to leave the company were irrelevant and doesn't make any sense.

So Magnetic Ltd. Wants to sue Mr. Salomon for breach of contract and even company wants to
declare him as insolvent.
Before starting the process of solving the dispute between Magnetic Ltd and Mr.
Salomon the lets discuss on the topic contract as given case is related with contract and breach of
contract.
Contract: It is a legal documents which is enforceable by law. There are two types of
contract and they are written and oral but court only entertain written contract. It is the obligation
of every people who are involved in contract that they must complete each and every detail of
contract. If any of the party fails to perform their party of duty then it falls under the category of
breach of contract. As Magnetic Ltd wants file a case on the basis of breach of contracts. So lets
have short discussion on breach of contract too (Forrer and Katsos, 2015).
Breach of Contract: It is state where one of the agreed party fails to perform there task on
given time. In this condition opponents have the opportunity to claim damages by failing the case
in court.
As filing the case against Mr. Salomon will not be the appropriate solution to solve the
legal dispute between them. So, they can follow the process of Alternative Dispute Resolution
(ADR) because it consumes less time with minimum charges.
Alternative Dispute Resolution (ADR): It is one of the legal proceeding to solve the legal
dispute between two parties outside the court room. The concept of ADR was started just to
reduce the burden of Court as there are many cases which are pending in court (Schmidt, 2018).
There are three different form of solving dispute through ADR process and they are:
Mediation: It is the simplest form of ADR where dispute is solved by listing the problem
of involved parties. The person who handle the matter of mediation is known as mediator.
Mediators are individuals trained in negotiations, who have the ability to bring opposite parties
together and attempt to work out a settlement or agreement that both parties accept or reject.
Conciliation: It is one of the form of ADR to solve the dispute between parties. It is
similar as mediation where third neutral party is appointed to solve the dispute between to parties
by meeting the terms of agreement as much as possible. The person who is appointed in the
process of conciliation is known as conciliator. Here, conciliator work as mediator between the
parties.

Arbitration: It is the lengthiest process of solving dispute in ADR process. The person
who is appointed in the process of Arbitration is known as arbitrator. The decision of arbitrator
are legal binding in nature. Serious nature of civil wrong are entertained here. Arbitrator are
always selected in odd numbers (for example: either 1,3,5,...,etc.).
As there dispute is not of serious of nature so they can select the process of conciliation
to solve their dispute with mutual consent. It will also consume less time.
M4, D3 Comparison of different sources of legal advice.
There are three process to solve dispute from the process of Alternative Dispute
Resolution but among them conciliation can be consider as the best because this process tries to
meet out all the agreements which are written in contract (Nicolăescu, 2013). Even it is one of
the smallest process when comparison is done with Arbitration. Where as arbitration is expensive
process where orders which are passed must be followed by both the parties. The advices which
are given by conciliator is based on facts and even that is not biased.

CONCLUSION
Hence, it can be concluded from the above report that business law plays the crucial role
in every business organisation and it must be followed according to the given guidelines. There
are different sources forming UK law and to form any law the final approval must be obtained
from the House of Parliament under the Royal Ascent Act ,1961. Also, there are various types of
legal process to form any business organisation where as contract law, employment law and
company law play the supportive role for any organisation. There are many pros and cons of
forming this organisation and it is the responsibility of law making government that bring some
changes in it. At the end, it can be said the ADR is one of the finest process to solve dispute
between aggrieved parties with minimum charges.

REFERENCES
BOOKS & JOURNALS
Folsom, R. H. and et. al., 2013. Principles of international business transactions. West
Academic.
Nicolăescu, E., 2013. Business ethics, corporate governance, and social responsibility. Journal of
Self-Governance and Management Economics. 1(1). pp.86-92.
Pentony, B., and et. al., 2013. Understanding business law. LexisNexis Butterworths.
Perry-Kessaris, A., 2016. Global Business, Local Law: the Indian legal system as a communal
resource in foreign investment relations. Routledge.
Reed, O.L. and et. al., 2013. The legal and regulatory environment of business (p. 328).
McGraw-Hill/Irwin., Shackelford, S. J., 2014. Managing cyber attacks in international law,
business, and relations: In search of cyber peace. Cambridge University Press.
Santoro, M. A., 2015. Business and human rights in historical perspective. Journal of Human
Rights. 14(2). pp. 155-161.
Schmidt, S. J., 2018. Marketing the law firm: business development techniques. Law Journal
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Stout, L. A. and Blair, M. M., 2017. A team production theory of corporate law. In Corporate
Governance (pp. 169-250). Gower
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.
Chemerinsky, E., 2016. Constitutional law. Wolters Kluwer Law & Business.
Fici, A., 2016. Recognition and legal forms of social enterprise in Europe: a critical analysis
from a comparative law perspective. European Business Law Review. 27(5). pp. 639-
667.
Forrer, J. J. and Katsos, J. E., 2015. Business and peace in the buffer condition. Academy of
Management Perspectives. 29(4). pp. 438-450.
Online
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