Business law of UK - Sample Assignment

Business Law

INTRODUCTION
Business law is a whole body which constitutes legislation and rules applied two business
ventures and dealings in the lifespan of a business. It is a part of civil law which operates in two
divisions which are laws governing partnership, companies, agencies, bankruptcy etc. And law
regulating contracts (Clarkson, Miller and Cross, 2014). The report comprises number of matters
relating to business law describing nature of English legal system, role of government in
lawmaking, application of common and statutory law in justice courts. In addition to this,
possible impact of various law of business, different types of business organisations and how
they are funded and managed. Lastly, explanation of range of legal dispute resolution has been
provided.
TASK 1
P1. Different sources of UK law
English legal system is wide in nature also very complex to understand as it comprises
huge number of legal provisions. For the effective application of legislations every citizen of UK
must have knowledge pertaining to different areas of legal system. Thus, variety of sources of
UK law can be accessed which have been elaborated below:
Primary sources: When information are contained in the original form which is fresh and
first hand. The various sources pertaining to primary section are as follows: Case law: UK have courts which operates on doctrine of judicial precedents with the
application of which future lawsuits are concluded on the decisions past in previous
cases. A report is prepared containing facts, issues, evidences, determination and
principle on which it has been decided (Beatt, Samuelson and Abril, 2018).
 Legislation: There are number of reforms that have taken place in English legal system to
make it more effective. Laws are enacted by parliament in United kingdom which are
superior to all other sources and no body can put a question on its validity. Every
individual living in UK is bound to follow these laws governing their rights and acts.
Secondary sources: Information from primary sources are used for further research by
scholars or other people. These are the modified versions of what happened stored in primary
sources. some of the secondary sources have been provided as under:
3

 Legal encyclopaedias: There is an encyclopaedia which explains legal terms in a very
simple and intelligible manner and that is Halsbury’s legal dictionary of England and
Wales. The contents have been written in an alphabetical manna which describes every
term in a narrative form. It is authentic and used widely not just in UK but in other parts
of the world. Also, the matter in this has been prepared in consultation with experts such
as lawyers. Parliamentary and non parliamentary publications: Parliamentary publications is about
speeches or debates between both the houses of parliament which generally takes place at
the time of passing a law discussing important matters. On the other hand, non
parliamentary publication is the reports presented by buy government department and
agencies (Baker, 2019). Law commission: Government of UK constituted a standing committee for reviewing the
whole legal system so as to propose amendments or reforms to be made for making it
better. It comprises of members to prepare report which is presented to public and other
interested parties for their suggestions.
 Textbooks: This source is easy to fathom because of the the level that has been kept by
different authors. Also, various interpretations have been given on a single issue to which
helps a person to understand in a better way.
P2. Government's role in UK law making and implementation of statutory and common law in
justice courts
Government in every country has some rules which are similar animator part is
contributed in making policies and plants that will benefit the whole society and not just a
particular group or community. Every step of government is towards the betterment of country
hence, its role in law making which is distinguished between three sections which are as follows:
Executive role: This role of government is associated with enforcement of laws, policies
and plants that have been provided by legislative members (Haigh, 2018). It comprises of the
queen of England and Prime Minister along with cabinet ministers. The overseeing of proper
implementation of the above three things are done with a view to maintain law and order in the
country so that a peaceful environment can sustain.
Legislative role: House of commons and house of Lords are the legislative bodies in the
Parliament who give their votes along with amendments in existing laws. A bill is presented in
4

the Parliament that goes through a number of stages to become a law which will implement
throughout the UK governing the rights of the citizens. The Parliament has the supreme
authorities to enact legal provisions that in it's opinion will serve the right purpose and help in
providing justice against the wrongdoers.
Judicial role: This role is related with the development of various types of courts in
different jurisdiction so that every legal case is resolved quickly. The bench of this government
forms committees that meet the purpose of reviewing the existing legal system and possible
requirements of establishing courts which will reduce the time taken in finding conclusion.
Bill passing procedure: The legal system has made a specific procedure which is
followed for getting all the formalities done and to enact a law which will extend to UK (Passing
of a bill, 2019). The process of passing a bill is as follows:
 First reading: It is the beginning step in this procedure in which bill is introduced in the
Parliament before both the houses.
 Second reading: This stage is about having votes on the so presented in the first stage and
make amendments wherever needed.
 Committee stage: A independent committee is constituted which is examine the the bills
along with the modifications for providing their expert judgement.
 Report stage: The report prepared by committee is presented to house of commons in
order to give time for suggesting amendments tournament before passing the bill.
 Third reading: The draft bill is examined without leaving any scope for subsequent
amendments.
 Royal assent: At this last stage royal assent of Queen is received to make it binding on
every citizen.
The above three roles of government which is important in the whole process of law
making. However, laws are categorised into two different parts which have different objectives
along with rules. The distinction is made so that each areas of law can work efficiently.
Therefore, meaning of common and statutory law have been discussed as follows:
Common law: Under this law, every cases decided on the basis of judicial precedents.
According to this principle, in case current scenario has same circumstances along with facts and
issues which is matched with previous case that has taken place in the past, then and the ongoing
case is decided by taking into consideration the decision of that previous judgement. this is one
5

of the main legal principles followed in UK. It is amended by statutory law and is called as judge
made law since, it is based on the judgement given by judges.
Statutory law: It is completely opposite to common law which is available in written
form and has various kinds of laws which have been enacted by the parliament for the written
portion in the constitution of UK. It forms as a base for whole legal system and helps in in
carrying the judicial work smoothly. Every case under this law is solved through individual legal
provision which is absolutely dedicated to earth unlike common-law. only statutory law can be
used to make amendments in existing statutory law (s) (Rasch, B.E. and Tsebelis, G. eds., 2013.
TASK 2
P3. Effect of company, employment and contract law upon a business
An entity is affected by number of factors and law being one of them. The impact can be
huge. Every enterprise should identify the number of legislation applicable with a view to
comply with them in order to avoid penalties and other severe legal obligations. Some of the
common laws applicable on every types of businesses are mentioned below: Company law: Business established in the form of companies have legal provisions
which govern each aspect of it. Companies Act, 2006 has been enacted by the parliament
of UK to regulate every types of companies operating in United kingdom. The law has
legal provisions from the time a company is incorporate, it is also applicable on the
operations and management of business activities along with winding up of the company.
Every entity is bound to get registration under this act to be called a company. There
could be many situations if a body corporate does not follow legal provisions for
example, a company is proposing to raise share capital from public, in such a case it has
to be a registered company otherwise no investor will be interested in in investing their
funds (Act, 2013). Employment law: An employee look for a safe and healthy environment at a workplace.
For protecting the rights of people working in an organisation UK government has
implemented Employment Act, 2002, Equality Act, 2010 and many other acts. When a
company follows these laws its employees feel safe and secure which ultimately
influence them to work hard and in more productive way. This also shows that an
organisation is ethical in terms of making decisions and carrying work. A candidate will
6

always prefer an entity that it has a good record of compliance with applicable legal
provisions as compared to other types of business ventures. Let’s take an instance where
an employee named Mr. George has been wrongly included in situations bye other
colleagues who have been charged with improper conduct. In such scenario, George can
seek legal help.
 Contract law: This girls all the agreements made between parties having legal
consideration and enforceability by the law. However, there is no specific act for this in
UK and is actually regulated by Sale and Supply of Goods Act, 1994. A contract is
formed which provides an opportunity to seek specific action against any breaches or
contraventions (Segal and Choi, 2016). A contract is an essential part of a transaction
which helps in completing it in a lawful way. The impact of this upon a business can be
understood through this example, there are two parties viz. Buyer and seller and enters
into a contract. The seller fails to deliver the goods mentioned in the contract within the
time period, then there will be a right wherein buyer can rescind the contract and make
seller compel to pay the money already paid.
TASK 3
P4. Various forms of business organisations
There are variety of organisations that consider for introducing a business enterprise.
Every form has advantages and disadvantages which are important to taken into consideration.
Also, the period for which business shall continue is an important factor for deciding the type of
business. Some of different forms of entities have been explained as provided:
Limited company: A body corporate which is an artificial person and treated separate
from its members which has a perpetual succession and a common seal (Rosenberg, 2013). The
liability of shareholders can be limited by shares or limited by guarantee. In both the cases, the
base is nominal amount of the shares held by the shoulders. There exist a separate legal entity of
a company which gives it the right to on properties, open bank account, sue or be sued and many
more. Also, it can be wound up by law only. Registration is compulsory which is done by
submitting number of documents and forms which ends by receiving the certificate of
incorporation.
7

Sole proprietorship- The type of business is generally small which is owned and
administered by a sole person often known as owner or sole proprietor. In the eyes of law, a sole
proprietor and his is entity is treated same. In other words, law do not distinguish between
owner from his business. Also, there is no requirement to get registration however, it is
compulsory for owner to get himself registered. It is easy to establish and dissolved.
Partnership firm- When more than one person plans to to execute a partnership deed in
order to have an association for carrying business lawfully with the motive of making profit, then
the entity is called a partnership firm. Registration is voluntary and liability of partners can
extend to their personal assets in case of non payment of financial obligations of the firm.
Limited Liability Partnership (LLP)- The mix form of a a company and partnership firm.
In this, partners have liabilities limited to the amount mentioned in the agreement just like
shareholders have in companies. There is greater flexibility in the structure which makes is
suitable for group of people wish to have characteristics of both entities. However, unlike
partnership form a partner is not held severally or gently liable for the act of other partner. Also,
personal assets an not tracked to pay of the obligations of the LLP.
P5. Management and funding of different types of business entities
Limited company: The business affairs are managed by directors who appointed to
represent the company and act on its behalf. Directors are bifurcated into executive and non
executive. Each of the categories have different roles to play. The power to make decisions lies
with the directors. With respect to fund, major sources are share capital, debentures, retained
earnings, bank loans, loan from financial institutions, venture capital, borrowings, and so on
(Management of a company, 2019).
Sole proprietorship: It is a small business which does not require huge manpower to
manage it. The sole proprietor is enough to do exercise has control over every actions and
transactions occurring in the business hours. The authorisation is given to the sole person. Also
the profits and losses are not shared with anyone else. Fundraising is quite difficult as it has
sources limited to personal savings and loans from bank or small financial institutions.
Partnership firm: Partners are the one responsible with the management of business
activities and to make decisions, plans, policies which are to be implemented within the firm.
every decision is finalized only when it has received the approval of all the partners (Hörisch,
8

Johnson and Schaltegger, 2015). In terms of financing, it has capital brought by partners,
savings, crowdfunding, bank loan etc.
Limited liability partnership: The management and decision making is similar to that of a
partnership firm the only difference is that there exist a flexibility in the administration and
liability of partners do not extends to their personal assets. On coming to funding, it has more
options then a partnership firm and sole proprietorship.
TASK 4
P6. Different disputes resolution methods along with recommendation
Alternative Dispute Resolution (ADR): It is the most preferred way of resolving disputes
and conflicts arising in business activities. It does not involve the intervention of court which
makes it more efficient, expeditious, inexpensive and easy to use procedure. It has many
methods which can be used in different situations for getting the better results. The main motive
is to put the dispute to an end without any delay. The settlement is done through an amicable
way a witch is appreciated by the parties to the dispute.
Arbitration- The most chosen method because there is no need of going to courts. In this
legal solution, an arbitrator is decided by parties to disputes who is an impartial person having no
partiality. arbitrator hears the statements of people involved in the dispute, review and examine
the evidence and testimonies provide by them which are evaluated for making decision which is
treated final and binding. There is an individual procedure which differs in every case. New
decision of arbitrator can not be challenged in the courts (Fiadjoe, 2013). It is very cost-effective
and quick process of getting a solution.
Mediation- It is a method which has effective communication between parties to disputes.
They may have a face-to-face conversation or hire an person called mediator. The main activity
of mediator is to facilitates a communication between individuals engaged in the conflict. The
two way flow of information helps in creating a better understanding of position of each side for
obtaining a conclusion which will be used for the settlement. Also, agreement can be formed
comprising terms made through consultation with the parties.
9

Arbitration has been proved to be the best method which suits all the criteria of an easy
way to get to a conclusion. Thus, it can be applied in any matter for getting results in a quick
manner.
CONCLUSION
From the above report, it can be concluded that business law is essential and unavoidable
for carrying business lawfully. Organizations have to abide by number of laws that are applicable
on its business activities. English legal system is wide and not so easy to understand and apply in
different circumstances. It provides variety of sources which must be used to gain adequate
information for using it in getting favourable results. Government has divided itself into three
dimensions so that implementation of legislation ca be made effectively. Furthermore, the impact
of company, contract and employment law must be understood in order to make strategies and
conduct business to avoid penalties. In addition to this, there are many different types which can
be used for carrying business. However, in business the conflicts can not avoided, so in such
cases, various legal solutions can be opt for quick conclusion.
10

11