Legal System and Considerations for Business Organizations

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This report provides an overview of the legal system in the UK and discusses its strengths, weaknesses, and new changes that are important for business organizations. It also explores the legislations that need to be considered by businesses and the legal structures used by them. The report highlights the funding processes and includes case studies on employment law and contract law.

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Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Strengths and Weaknesses of Legal System based on Example.................................................4
New Changes in Legal System that are Important for Business Organizations..........................4
Legislations that are need to be Considered by Business Organization......................................5
Legal Structure Used by the Business Organizations..................................................................5
Funding processes........................................................................................................................6
PART 2............................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
This report providing different kind of information related to the legal system in UK to
provide better overview of the legal scenario for the business operations. Information regarding
legal system will be presented in the report. Detailed analysis of UL business law will be
discussed in the report. Different cases will be reviewed in the study to provide legal guideline to
the people.
PART A
Legal System
Legal system includes various rules, procedures and institutions through initiatives and
private endeavours can be carried out through legitimate means. This is mainly considered as
system for interpreting and enforcing laws. It elaborated rights and responsibilities in various
ways. Judges have huge powers under both criminal and civil laws not only to examine the
witnesses and parties (Ghemawat, 2017). Main purpose of the legal system is to establish the
regulations of particular society and rights of people who make up the society. The main purpose
of the legal system is to protect the rights of the people and organizations.
Different Sources of Law
There are different sources are considered as the source of law. These sources are
considered by the legal organization to provide better legal solution to the organizations and
people to protect them from illegal activities. Some of the main sources of law are- legislation,
customs are also considered as source of law, judicial precedents is also one of major source of
law, and conventional laws are considered as main sources of law (Qi, Roth and Wald, 2017).
This is how law is formed in UK.
Role of Government in Law Making Process
There are two main parts of UK government are house of lords and house of commons.
These two houses are main parts of the government who are important to form laws in UK. To
form laws this is important to pass the bill in both houses of parliament (Sulphey and Basheer,
2020). These is how the bills are passed in both houses. After passing bills from both houses bill
is signed by Queen to pass it as law.
Application of Statutory and Common Law on Businesses
The statute law is consists of law adopts by legal body. This are mainly considered as
case law. These are decisions are originated from decision of the appellate courts with
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constitutional law. The common law is known as case law or precedent law that is developed by
the judges and courts. Various sources are known as unwritten constitution. Common law is third
branch of law.
Strengths and Weaknesses of Legal System based on Example
There are three separate legal system are their in UK. Each one of the lega syste is for England,
Wales, Scotland and northern Ireland.
This is can be considered as the historical origin of the legal system of the UK. United Kingdom
has no any written constitution that can be considered by the legal system to define the law in
effective manner. This is one of the critical weakness of the legal system in UK. This can Affect
the legal procedure for
The business organization to take proper consideration in the process of business development. It
is required to have proper constitution in order to develop proper legal system in UK. This is
major weaknesses of the legal system in UK. There are some strength of legal system in UK
which are effective for the rights of the organizations and individual people in UK. Some of the
major strengths of the legal system of the UK are- the legal system in UK is independent
judiciary and compliance with the rule of law. This strength is good for the which is based on the
precedent. e business organizations.
Common law in UK is clear, fair and predictable. Legal system in UK is flexible for new
adaptations. Some of the weaknesses of the UK legal system are- Legal system is based on
unwritten constitution which is major drawback of the UK law.
For example section 2 introduce some legal context for UCH protection in UK, Highlighting
some key areas where the law is reflecting some weaknesses which are not good for the legal
system (Greenleaf, 2018). sometimes UK is not efficient to protect the rights of the people due to
the loopholes due to unwritten constitution. This are most common strengths and weaknesses of
legal system of UK which are need to be put in the consideration in order to get better result with
legislation in country.
New Changes in Legal System that are Important for Business Organizations
Some of the major considerations that are need to be considered by the organization are- Tax
Code, employment and labour code, antitrust laws, advertising, email marketing, environmental
regulations, privacy, licensing and permits, insurance, reporting pay data and collecting sales tax
are need to be considered by the organization in order to keep their actions as per the legal
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changes in the law of the nation. These changes are important to consider for the organization.
By getting aware of these changes in the legislation organization can implement various changes
in their organizational policy to keep their actions legal. Tax code is important or prevent
economical fraud in company. in tax code organization have to make changes in their policies
that are related to the income tax, estimate tax, employment tax and excise taxes. The legislation
that is related to the labour and employment law is about wages and hours, workplace and safety
equal opportunities and employment benefits and security (Schaffer, 2016). These considerations
are need to be made while developing policies for the business organization. This is how better
considerations also can be made by the organization to get better result with business operations
in market pace without any legal troubles.
Legislations that are need to be Considered by Business Organization
There are different laws are need to be followed by the business organization to keep
their business actions as per the legal laws to keep their actions limited and get better result from
the target market. for example organization have to follow contract law, employment law,
contract law, Law of torts and copyright laws. By following these act organization can develop
their business policy to meet all the considerations of the rules and regulations that are
mentioned in the law. For example contract law comes under Supply goods act 1994 which is
implemented where any business contract occurs between two different organization and people.
The other law which is considered by the business organization which is torts act 1977 which is
about the compensations that are made by the organization where people connected to the
organization are harmed by the actions of company. All physical and mental damage are
considered in the Tort Laws. Other act which is most important for the business organization is
Employment act 2002. This act is protecting the basic rights of the employees who are working
in a business organization. This act force the organization to form a contract with employee
regarding the wages and working hours of employees. All the employment related information is
need to be provided in the employment law. Other laws that is need to be followed by the
business organization is Copy Right Act 1988 which is about the designs and patents which are
occupied by the business organizations. These considerations are need to be followed by the
company in order to get better response from the target market with our hampering the
copyrights of other organizations.
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Legal Structure Used by the Business Organizations
There are different legal structures are followed by the business organization which are
considered by the business organization to run organization in legal manner. These legal
structure are business organization to define the ownership over the various business and
physical assets of the organization. Most common legal structures that are followed by the
business organization are sole proprietorship, partnership, limited liability company,
cooperative company and non profitable organization. These are common legal structure that is
used by the organization are based on their operations level and level of business.
Sole Proprietorship
This are used by small organization which are owned by individual person or a family. In
this type of legal structure organization is owned by individual person and level of business is at
lower level (Staurowsky, 2019). There are some of advantages of this type of legal structure of
organization. Main advantage of the sole proprietorship is high level of control and effective
implementation of strategies and plans. Some disadvantages are associated with this legal
structure are- level of risk is too high for owner.
Partnership
In this legal structure two or more organizations or people own an organization. Main
advantage this legal structure is about the risk which is divided in all the owners of organization
and investment become more easier for partners. Disadvantage of these type of organization is
about the level of coordination can affect the business strategy of the organization. The other
disadvantage of this legal structure is about the level control over the organization.
Limited Liability Company
This type of legal structure have both advantages of corporation and partner business
legal structure. Limited Liability organization structure protect the organization in most of
instances. For example personal vehicle, house, savings. All these assets will not be at risk in
condition of the bankruptcy or lawsuits. LLC is mainly known as the self employed organization.
Funding processes
There are different type of funding processes are used by different organization and
process of the funding is dependent on the legal structure of the organization. In the public sector
organization crowd funding is mainly used by the organization. In private sector organization
bank loans, angel investors and personal savings are used by the organization. Local small level
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organizations use these processes to rise funds. This is how different processes are used by the
organization to rising fund for the business of organization.
The legal process for the formation of business organisation by making the proper law
firm strategies and planning with respect of managing the finances and ammeters which will
clear look for the client budgets of the overall process of managing client matters. There is need
to have proper analgising the clients with respect to business development and mover forward o
exestuation process. Indeed, managing people entails career planning, training, and internal
communications. The firm have the ned to make the continues development Planning legal
processes and executing legal transactions can be made simpler with the right technology
solution.
PART 2
Case 1
Employment law in UK has been incorporates as the top leading law for providing the legal
assistances for both in terms of employer and employees covering the large level of employment
law issues. This helps in providing the expert opinion and the respective advice to clients to all
area to clients on all areas of employment law. It is highly regarded for delivering a friendly,
informal approach combined with a highly proficient analysis of the current employment
legislation (Austen-Baker., 2017). On the other hand, the UK contract law is the body of law
which is regulating in England wales is the body that’s governs, enforcing and interpreting
agreements which is relate to the exchange of goods, services, properties and money.
As per the case 1, Gordon is working as sales manager in the orange computer limited
with annual salary and commission payments as £10,000 and £11,000 per annum respectively.
As per the manager of the company is facing the financial crises. So, the manager has asked
Gordon to forgo the salary for the year 2017, 2018 and 2019 and acceptability of the
commission. But in the year 2016, the financials position of firm has improved with the
implication of governmental incentives and investment to the information technology by making
the more level of healthy profit.
As per the Gordon and the manager of the company have the dealing the contracts on the
basis of the unstable situation of the company till the time to have the repayment to the creditors
to make the company run. As the situation when the company have the bring the strong level of
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financial position and earning the healthy profits, this have been stated to be the part of
obligation of the firm to pay the amount of Gordon.
As per the section 1 of the employment contracts the employer hold no level of right to have the
taking backing the employment contracts form the employees as the considering it as their own
property (Graziano, 2019) . Such provisions and the support from the judgments of the appellate
tribunals bring in certainty to the rules set for the contractual terms of employment and their
observance is more obvious in return.
So as per the contract act , the breach have taken place between them so the former or
the non-breaching can cancel the contracts and have the decision to sue the situation as
Gordon have the provided the benefit to the company that’s is the breaching party by tasking not
the salary for year 2015 and 2016. The employee have the right to always the maintaining the
right of terminations the relationship at the time by triggering the for the fulfilments of full
payments on the next regular pay day.
As the part of reedy restitution is the contract remedy when the non-breaching party is to
have the putting backs the positions it was prior to the beach while cancellation of the contracts
voids along relieved all parties with analysis obligations under the agreement. As the company
should have to the liquate damages clauses so the that’s the non-breaching party have the
awarded as the amount money in the event of breach of contract.
Case 2
The contract law is predominately have been based on the principle which is expressed with the
phase of the agreements to be kept as the situations when the contracts is been two parties along
with stipulates latent is the contracts must be upheld by the both level or side of entities
(Barnard, 2017). In order to the contracts to be valid there is the need to have the
accomplishment of the six principles of law must be met. This is all about the agreements,
considerations, intentions, capacity, genuine consent and legality.
As per the case of the virgin media have failed to completely install the to the jane. As
the jane have decided to get the settlement of package of the £35.00 per month which have the
inclusion of the month line rental for the £11.00. But the engineer has the failed to the fixed the
phone lines due the absence of the switchboard. The fixation of issues is done after the 3 weeks
of the complaint. But the situation when the hand has received the level of the invoices, the jane
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has been charges for the whole package from the day the internet was installed including the
monthly phone line rental.
As per the contract of the jane and virgin media the clearly the failure of the inclusion
package of the dealing the internet packages as the to be completed on the contractual dates is
breach of contract. This have the situation of poor workmanship as the all the materials are tends
to be provided with the discussion up to the contracts along with valid level of evidence. It is
clearly unfair of the virgin company to send jane the invoices for the telephone line for the 3
week when the situation of the telephone was still not connect.
In this situation jane have the complete right to take action ageing the company regarding the
poor level of workmanship under the contract will have the pursuing the associate level of
damages due to the breach of contract (Zahn, 2018). On the hand, the legal position of the virgin
media is having the obligation in order to mitigate the level of damages associate with the
breach. This have been required in to order to have perseverance of the resolving the financial
level of recoveries to the janes due to the failure to perform.
As the part of jane and virgin media is term to have the basically the negotiations which
is usually the fastest and the most cost-effective level of strategy for the resolving the breaches of
contract which make the involvement of the poor workmanship in term of failure to perform. In
order to have the formation of negotiation which can take place by the between the jane and
virgin media can be properly establish as the firm have to cancel rental for the telephone line for
three weeks and provide the compensation of the damages to jane (Howells, 2017). This have
been required in to order to have perseverance of the resolving the financial level of recoveries
to the janes due to the failure to perform.
Case 3
The compulsory winding up is the situation when the creditor of the firm has the winding
up the affairs of the insolvent limited company as this is the legal procedure have the ending of
the company removal from the company’s house register effectively ceasing to exists. As per the
case the Blackhorse limited is the security company have the facing the marge amount of bed
debts of amounting of £100,000. Dur to this the company have the stretching of dates of making
the payment to companies’ creditors (Poole, 2016). As the result, the company have the received
the petition for the compulsory winding up. As to have the avoid the situation, the firm have the
validity of option as
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1. Pay off the debts
This is most obvious methods as the company pay the debt to creditors before
getting into the severs stage if liquidation. This will ensure the company of other party to
have the full and final settlement. As this will result in the withdraw or dismiss the
Winding Up Petition upon receipt of the payment. It is preferable to have the
development of legal advices from a solicitor prior to have the agreeing settlements to
reach the document correctly.
2. Put the company inti the creditors voluntary liquidations
The firm ant to have the saving the business then there placing of creditors
voluntary liquidations in which the job of the liquidator will sell the company assists as
much as possible to value the business successor. For the purposes of the CVL, the assets
are valued at their current market value as a whole so are often much cheaper than they
originally were.
3. Out the company into administration
As to have the immediate level of the protection from the recovery of the creditors
can be achieved by placing it to the administration (Rana,, 2016). This will provide the
legal protection almost from the moment the process is started and so in the right
circumstances can be a very useful tool. The firm should put the application to the court
for this process as it has the involvement of the major level of complexities. As sooner
the firm will have the contracts to their court will be helpful in seek better help.
CONCLUSION
From the above file it can be stated as the that in the business law have the different sources in
order to have the protection of the individual and the business against the any level of lawsuit of
inclusion of illegal activities. On the other hand, government have been taking the major level of
responsibilities to have the proper protection and development of appropriate laws. Employment
law in UK providing the expert opinion and the respective advice to clients to all area to clients
on all areas of employment law (Chitimira, 2019). The employee has the right to always the
maintaining the right of terminations the relationship at the time. The compulsory winding up is
the situation when the creditor of the firm has the winding up the affairs of the insolvent limited
company as this is the legal procedure have the ending of the company removal from the
company’s house register effectively ceasing to exists
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REFERENCES
Books and Journals
Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
Barnard, C., 2017. Brexit and Employment Law.
Chitimira, H., 2019. Overview Analysis of the Voluntary Winding up of Solvent Companies
under the Companies Act 71 of 2008. Acta U. Danubius Jur., p.54.
Ghemawat, P., 2017. The laws of globalization and business applications. Cambridge University
Press.
Graziano, T.K., 2019. Comparative contract law: cases, materials and exercises. Edward Elgar
Publishing.
Greenleaf, G., 2018, February. The Legal and Business Risks of Inconsistencies and Gaps in
Coverage in Asian Data Protection Laws. In Session II Materials, Asian Business Law
Institute (ABLI) Data Privacy Forum, Singapore (Vol. 7, pp. 18-21).
Howells, G.G., 2017. The European Union's Influence on English Consumer Contract Law. Geo.
Wash. L. Rev., 85, p.1904.
Poole, J., 2016. Textbook on contract law. Oxford University Press.
Qi, Y., Roth, L. and Wald, J., 2017. Creditor protection laws, debt financing, and corporate
investment over the business cycle. Journal of International Business Studies, 48(4),
pp.477-497.
Rana, S., 2016. Compulsory winding up of companies a study of legislature and judicial aspects.
Schaffer, J., 2016. It is the Business of Laws to Govern. dialectica, 70(4), pp.577-588.
Staurowsky, E.J., 2019. The impact of Title IX and other equity laws on the business of women’s
sport. Routledge Handbook of the Business of Women's Sport.
Sulphey, M.M. and Basheer, A.H., 2020. Laws for business. PHI Learning Pvt. Ltd..
Zahn, R., 2018. The impact of Brexit on employment law in Scotland.
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