Analysis of Business Laws in UK

The report discusses the sources of law in the UK, which is a mix of democracy and monarchy. It also explains how acts are not codified, making it difficult to interpret. The advantages of converting into a limited company are highlighted, along with legal procedures for resolving disputes between parties.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Sources of Laws.....................................................................................................................1
P2 Government Role in law making...........................................................................................2
TASK 2............................................................................................................................................3
P3 Impact of employment laws and contract laws......................................................................3
TASK 3............................................................................................................................................4
P4 Solution to the business problem...........................................................................................4
P5 Justification of the Solution...................................................................................................5
TASK 4............................................................................................................................................5
P6 Alternative Dispute Resolutions............................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Laws dispenses a persistent way to perform business. Every region has there regulations
of business. In United Kingdom English law of business is nebula of all business statutes. Trade
and business is generally executed by various laws such as companies laws, corporation laws,
consumer and sales statutes and many more commercial laws. In UK European union is the body
in which organisation performs their business. It is very tough but mandatory to abide by these
laws. Moreover, it is compulsive for organisation which is getting incorporated under Companies
Act. In this report according to given case study Business Future provides advice to such
organisations who are new in the sector of trade and commerce, also who wants to inflate their
business in the market. Country Pine is on their client and is planning to expand their business.
This report is an overview of how laws are formed and implemented in the state. Also it deals
with the suggestion provided to Country Pine regarding the expansion, what legalities they have
to face and what are its best solution to overcome such problems. Moreover, it is comprise of
various methods used to resolve a dispute in the course of business.
TASK 1
P1 Sources of Laws
Laws are constructed to make society better so it should be according to customs and
practices of such region. These customs are generally treated as primary source of law. There
are two types of sources one of them is primary and another one is secondary. A primary source
includes customs, constitution, international conventions and treaties. The cluster of all these are
mainly responsible for the construction of laws. Secondary sources includes the judgements and
precedents by the courts. These courts were part of presidencies and King's Court. (Pepper v Hart
(1993, HL)
In United Kingdom, the primary source of laws are the European laws and it is
administered by the parliament or legislature. The European Laws are applicable in European
Union which is a group of 28 states. Laws related to business are enacted and implemented by
European Commission. It was formed under Communities Act 1972. EC is accountable for
conducting business in these 28 states. Secondary sources are consist of courts decision and
judge's precedents.
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Business in EU is regulated by EC. It is an economic and policy making body of EU. The
European Union is comprise of treaties directives and regulations. Treaties are the main source
of building laws related to business.(Fisher v Bell (1961) It is a historical practice done by
various empire to encourage trade. Regulations and directives are such statutes which has been
recognised by the law making body. For starting an organisation and expanding an already
existing one it is essential to abide by such laws. Moreover one should know in which sector they
are going to perform their business. There are two sectors, private and public. In private sector
business is conducted by individuals and they have their control over the corporation. In a public
sector, ventures are hold by the state's governing body.(Kinicki and Kreitner, 2012)
Apart from various sectors it also accountable to have an idea of what type of liability
shall have upon the members of the organisation. Eventually, there are two types of liability
unlimited and limited liability. An unlimited liability is such in which the responsibility of
paying debts are upon a single person, also profits are vested in that person only. But in limited
liability all these responsibilities and profit are divided in to the members of firm according to
the capital they have invested or the type of share they posses.
In the give case study, Country Pine is experiencing increased work force and demand of
their furniture. To mange such situation they are expanding their venture. For that they have to
register themselves by the Registrar of the Companies under Companies Act 2006. Before
registration it is essential to comply with the procedures as per company law. A memorandum of
association should be made which is comprise of information regarding capital and shareholders
of the company. Also, in order to mange the functioning of organisation an article of association
comprising the manner in which directors are being appointed and also it constitute liabilities of
employees and members.(Foss and Knudsen, 2013)
So Country Pine has to follow all these legal formalities in order to expand their business.
If they fail to perform such legal obligations then they are not entitled for doing business in EU.
P2 Government Role in law making
Laws are created by a process of enactment which includes all governing bodies, the
legislature, executive and the judiciary. In United Kingdom, laws are created by the parliament
and executed European Commission. Judiciary plays an important role to apply such laws in the
state. Laws are formed by a method in which a Bill is made. (Adler v George (1964) A Model
Draft Bill is introduced which inscribe the annexes , schedule and proviso of any change.
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A Bill is of three types, private, public and hybrid. A private bill is formed to change or
introduce new laws which can influence the interest or rights of an individual where as in a
public bill provisions affects the interest of all. Hybrid bill is an amalgam of private and public .
It is a public bill which influences the rights and interest of individuals. For the formation of law
it is mandatory to pass this bill from various stages in the parliament. (Grundfest, 2010)
(Johnson, 2013)
A bill is proposed in its First Reading, at this stage the bill is read and tried to be
understand by the members of houses. In its Second Reading a debate or discussion over the
positive and negative impacts of the merits is conducted. After such readings a report has been
made in its Report stage. It is then again transfer in the legislation to make any changes or
amendment. The bill is then presented before the Queen for Royal Assent. A bill becomes an
'Act of Parliament' after getting consent of the Queen. This is how laws are created by the
governing bodies of UK. (Eren and et. al., 2012)
TASK 2
P3 Impact of employment laws and contract laws
Contracts are legal documents and is also known as registered promise to perform an act.
It is very much used in the business for getting into market and trade. A contract is that
agreement which can be enforced by the courts. In United Kingdom it is controlled by the
English Law of Contracts. According to it there are certain principle which makes a contract
valid. A contract is valid in which an offer is made by a party. Such offer can be made publicly
or to a specific person. There shall be an objective and intention to form a contract and it should
be according to the law. To every offer there must exist an acceptance. An acceptance shall be
made without an inducement. (Smith v Hughes (1960) A contract is incomplete without a
consideration and it should not be prohibited by the law. Generally, it is comprise of some
amount of money. It can be concluded that a contract is a promise which has been brought for an
amount of money.(DiMatteo, 2010)
The employment is provided by a contract of service. According to it an employee is
required to obey the guidance of his employer. It is his fiduciary duty to follow the instructions
given by him. An employee is liable for his act in the course of employment. It is not necessary
for him to abide by the instruction which is illegal (Morrish vs Hensly). Similarly, an employee
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has been provided various rights under Employment Rights Act 1996. It provides immunity
against any kind of discrimination, dismal and redundancy. Also, a worker is eligible for
minimum wages and paid sick leaves, under section 230(3) of the ERA 1996.
in the said case Country Pine is confused about the designation of the new recruitment.
According to the Uber Taxi case, Aslam vs Uber BV, a worker is an employee. So for
appointing new employees they have to ensure that they are provided with minimum wages and
sick leaves moreover they are entitled for rights given to them under the Act of 1996.(Crane and
Matten, 2016)
TASK 3
P4 Solution to the business problem
It is very difficult to compete in a market with policies. As discussed above there are two
types of liability unlimited and limited. Sole trader is a form of unlimited liability. In which the
owner is liable for every act done by them. In order to expand the business incorporation of
company has to be done and they have to follow the futile steps of registration. Moreover, they
have to face the challenges in market. (Royal College of Nursing v DHSS (1981, HL)
During such process the responsibilities of managing director increases as it is his
fiduciary duty to file annual tax report. Also registers have to maintained properly. Apart from
that they have gave general problems such as appointing right people for the job, use of
advanced technologies, capital, investment in new machineries, etc. and they don't even know
whether their business will stand in the market or not.(Ye and et. al., 2011)
So to over come these problems they must form well planned strategy. Moreover, they
have to follow and obey the legal formalities which has been enacted by the European
Commission. It is better to register as limited company in order expand their business.
It is conspicuous to comply with the statutes enacted by the governing bodies. To avoid
opposition and threat of liquidation it is advised to work in the ambit of general law. There are
certain things which should be kept in mind in the course of business such as contract of
employment, business partnerships, registering the company, etc. It is not possible to perform
business in EU without getting incorporated. (Bodie, Kane and Marcus, 2014)
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P5 Justification of the Solution
A sole trader is such type of organisation in which liabilities are on an individual so the
debts are paid by the owner. But also there is less paper work involve in a sole trader and privacy
of the company is intact with its owner only. In a limited company there is a condition that an
organisation can explore in different market but a sole trader does not have such opportunity they
have to stick to the local market. (Sweet v Parsley (1969, HL)
A limited company can engage with more investors than a sole trading one. More over
the liabilities of partners are limited which means they are responsible for their acts not of
others. If a member does fraud then that person shall be liable for it. Although it is a long process
to get register but has certain benefits after getting incorporated under the Companies Act.
Since, Country Pine is an emerging business venture, they are experiencing work load. So
to minimise its effect they are advised to convert into a limited company. As the demand of their
products are increasing so the supply would increase phenomenally to over come such situation
they need to build a proper structure of company. (Bagley, 2010) Which could be attained by
forming a limited organisation. Also it would help in keeping account of the sale done by the
company.
TASK 4
P6 Alternative Dispute Resolutions
Every partnerships are bound with contract and such agreement is implied with some
terms and conditions. On the non completion of these provisions parties are responsible for
breach of contract. This would result in dispute and can create harm to the business. A dispute
can be solved in two manners either by instituting a suit in the court or by the methods of
Alternative Dispute Resolution.(Alternative dispute resolution (ADR), 2017)
An ADR is generally consist of Arbitration, Mediation and Negotiation. These methods
are convenient, cheap and time consuming. Usually, it involves a third party who acts
independently and provides legal solutions to the parties in dispute. These methods are simple
and easy to be performed. Methods in ADR are globally conducted which makes it applicable in
every circumstances.
Arbitration is the major means to solve the conflicts between the parties. Generally, an
arbitrator resolves the dispute between the party. Most of the time parties appoint their own
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arbitrators who are an expert in their filed but the court, if thinks fit can also nominate a person
who can be an amiscus curiae, advocate and retired or serving judge. In some states both the
parties appoints their own arbitrators and the appointed one nominates an Umpire who acts as an
independent person. The group of these people are known as arbitration council. Matters of civil
nature are only liable to be solved by such method. An award is provided by the Umpire which
shall be a legal obligation over the parties and no appeal can be made in the appellate court
regarding such decision.
Mediation is the another process by which a dispute is resolved. A mediators is recruited
by the disputed party. Such person shall act independently and without any inducement, to
provide solutions for the disputed matter. The main purpose of this method is to make parties to
come on an agreement.
Negotiation involves parties in the dispute. In this type of ADR only parties are involved
in resolving the issue. It is the best way in which secrecy regarding the companies and its
partners are limited to them only. It could be the first stage of resolution.
A dispute is solved by a process, first negotiation is done between the disputed parties, an
agreement is made between them. The parties breaches such agreement then mediation or
conciliation is applied. A conciliation is similar to mediation but the conciliator is responsible for
the solving the issue. If all these methods does not help in solving the dispute then the parties can
opt for arbitration.
Country pine is an emerging firm and it has peaceful relation with his supplier of Poland.
The dispute between them can easily be solved by the method of negotiation, moreover this
practice shall provide them privacy of their expansion as the knowledge of it is between parties
only.
CONCLUSION
The report is about complete analysis of sources of laws which deals with business. It
gives an essence of how laws are constructed in United Kingdom. According to the above
analysis, the government in UK is a mixture of Democracy and Monarch. Also the acts are not
codified so it becomes hard to interpret. Companies that are incorporated can perform business in
the European Union only. Also this report provides evident solutions to the said problem in the
brief such as the advantages of converting into a limited company. Also it gives an idea of legal
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procedures to solve disputes between the parties. This assessment provides overall view of
business laws with decided cases and precedents.
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REFERENCES
Pepper v Hart (1993, HL)
Fisher v Bell (1961)
Adler v George (1964)
Smith v Hughes (1960)
Royal College of Nursing v DHSS (1981, HL)
Sweet v Parsley (1969, HL)
Books and Journals
Alix Adams Books
Bagley, C.E., 2010. What's Law Got to Do With It?: Integrating Law and Strategy. American
Business Law Journal. 47(4). pp.587-639.
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. McGraw-Hill Education.
Crane, A and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive advantage.
American Business Law Journal. 47(4). pp.727-794.
Eren, S.S and et. al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Foss, N.J and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L., 38, p.405.
Kinicki, A and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.Swartz, L.B., Cole, M.T and Shelley, D.J., 2010.
Instructor satisfaction with teaching business law: Online vs. onground. International
Journal of Information and Communication Technology Education (IJICTE). 6(1),
pp.1-16.
Ye, Q and et. al., 2011. The influence of user-generated content on traveler behavior: An
empirical investigation on the effects of e-word-of-mouth to hotel online bookings.
Computers in Human Behavior. 27(2). pp.634-639.
Online
Alternative dispute resolution (ADR). 2017. Available through
<https://www.citizensadvice.org.uk/consumer/alternative-dispute-resolution/settling-
out-of-court/>.
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