Business Law and Dispute Resolution

This assignment delves into the principles of business law, encompassing areas such as contracts, company law, intellectual property, and taxation. It examines a case study involving Champion Ltd., which encountered issues due to non-compliance with legal regulations when relocating its operations. The assignment further discusses alternative dispute resolution (ADR) methods, emphasizing their role in resolving business conflicts efficiently and avoiding court proceedings.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.Discussion on the point 'Parliament is Sovereign' and different sources of UK laws.............3
2. Roles of government in the law making process and how statutory and common law are
applied in the justice courts..........................................................................................................4
3. Impact of Contract law, Employment law and Company law in business sector....................5
TASK 2............................................................................................................................................6
1. Types and Formation of different business organisation.........................................................6
2.Advantages and disadvantages of unincorporated and incorporated business.........................6
3. What are the advantages and disadvantages of company over partnership firm.....................8
Section 2...........................................................................................................................................9
1. Solve disputes of different cases with appropriate case laws with legal solution...................9
CASE 1........................................................................................................................................9
CASE 2......................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business laws are associated with rules and regulation that are necessary to be followed
by each organisation that support them to sustain for long time in competitive world. These are
the part of laws that benefit an organisation to deal with specific operation and commerce and
thus it is also known as civil law that support both public and private company. In general,
business law help an organisation how to set a business, end the process, purchase, sales and
guide to handle all types of business operation (Business Law and Legal Definition, 2018). This
law basically includes tax rules and principle, intellectual property, contract law, instrumental
law etc. Business law regulation are also judicial cause which is obligatory on every single
personality and this are implemented by the Supreme. It heighten the cognition to draw
conclusion without breaking any rules or laws that are framed by authorities.
In this report, different sources of law, role of governance in creating any law, how
statutory and common law is applicable in justice courts are discussed. Apart this, contract and
employment law have a potential impact on business, types of legally formed business
organisation and how they are funded and managed is discussed. Report also discuss the various
recommendation that help to overcome a serious problem.
TASK 1
1.Discussion on the point 'Parliament is Sovereign' and different sources of UK laws.
'Parliament is sovereign' can be explained as the law making authority of legislative body
where they can make, change or even eliminate any law without any interference of any legal
bodies. In other countries, basically President sign the prescribed law and final authority is
obtained from Supreme Court but in United Kingdom all the major authorities are in the hands of
Parliament. Once decision is given by authorities, in this case one can challenge them.
UK's parliament is divided into two groups named as House of Lords and house of
Common where they all follow the rules and regulation which were implemented under Royal
Ascent Act, 1961. There is a significant role of Queen's speech as every party decide there
agenda after that only (Bishara and Westermann‐Behaylo, 2012). Government prepare the
speech which is addressed by Queen in house of Lords. After this speech the parliament session
starts in the month of October and November.

UK have a strong background when it comes to form any law as there are different
sources to form they. It is not mandatory that if any law is prepared must be followed as final
approval must be obtained from House of Lords. Some of the sources of law in UK are:
Legislation: This laws are mainly prepared by legislative body. This body of UK have
the supreme power to form any law as parliament is involved in it. The house parliament is
located in London. In this process, House of Common and House of Lords take active
participation and because of that no one can even dare to challenges this law. It is said as
primary source of law in UK premises.
Common Law: This laws are mainly formed by the judges of high court and supreme
court. This types of laws can be made on raised issues where legislation is silent on particular
topic and in this case, judges consider the past decisions. Common law are commenced on the
activities of civil wrongs and can be reformed at any period of time.
European Union Law: In last twenty five years around 30% to 40% of UK law are
commenced by this Union authority. In this kind of laws Prime Minister take the final decision
whether it should be implemented or not or else any kind of amendment is required. This laws
are formed by considering all the member states.
European Convention On Human Rights (ECHR): This laws are commenced to
protect the right of all peoples. All the decisions which are related to human rights are taken on
the basis of ECHR and because of this UK law is improving day by day.
2. Roles of government in the law making process and how statutory and common law are
applied in the justice courts.
In every nation roles are divided at the time of formation, where government plays
necessary role to support it. In context of UK, law are formed with the support of 'House of
Common' who need to draft the bill in parliament house.
The roles which are played by House of Common at the time of law making process are
 First Reading: In this simple drafted bill is presented (Burley, 2017).
 Second Reading: Here, discussion will take place between house of commons.
 Committee Stage: If it is required to have any changes then this committee will do and
there will be proper reading of bill to understand its positive and negative impact.
 Report Stage: This stage get involved in the matter only if committee stage decided to
have any changes in the bill.

 Third Reading: Voting is done by MPs on proposed bill in order to forward to next
stage.
 Proceedings in the House of Lords: If House of Lords support the passed bill then it is
send for royal ascent else it is send back for amendments.
 Royal Ascent: To make any passed bill as a law proper royal ascent should be taken
under Royal Ascent Act, 1961.
Common Law are those law which are prepared on the basis of past decisions. The main
role is of judges of high court and supreme court. Common law can be changed at any period of
time according to requirement.
Statutory Law are those law which are prepared by Parliament. No one has the power to
change statutory law except House of lords under Royal Ascent Act, 1961
To support how common law and statutory law are applied in Justice court there are
following case laws are listed:
CASE LAW: Matt Jacobs v Henry
In this case, the court took the decision on the basis of statutory where it is mentioned
that every people have the right to speak.
CASE LAW: Hoggard v. Lewis
In this case, court decided that given decision was based on previous judgement which
was similar to this case in Australia.
This both cases shows that while giving the judgement, Justice court consider both
statutory law and common law and on that basis result is declared. Here, while giving deciding
result of common law it should not overwrite statutory law (Grace and Cohen, 2013).
3. Impact of Contract law, Employment law and Company law in business sector.
While commencing any business, every organisation must consider the rules and
regulation of Business law which includes company law, employment law, contract law,
intellectual property law and many more. Among them company law, contract law and
employment law shows the major impact on business organisation.
The impact of company law in business sector are listed below:
 It provide guidelines how business can raise fund through different sources.
 It provide set of rules and regulation regarding commencement and dissolution.
The impact of employment law in business sector are listed below:

 It gives idea to every firm, how to treat employee's.
 It provides guidelines regarding minimum wages system.
The impact of contract law in business sector are listed below:
 It helps to know what are the legal binding of agreed contract (Hanrahan, Ramsay and
Stapledon, 2013).
 It provide guidelines regarding agreement polices like which types of contract are valid,
void or void-ab-initio.
TASK 2
1. Types and Formation of different business organisation
Every organisation must be incorporated under Companies Act 2006, according to its
mentioned guidelines but there is no requirement for any kind registration for unincorporated
association. It is the call of investor that where they want to invest there money according to its
life cycle. There are different types of formation and they are listed below:
Sole Proprietorship: This are those form of business where low amount of capital is
required. It is mainly handled by single person where liability is limited.
Partnership: In this types of business liability is not limited and source of raising funds
are also difficulty. There are certain limits that must be followed by this types of association
(Hawkins, 2012).
Joint Venture: In joint venture, two or more than two organisation are commenced
together to earn extra profit. Source of raising fund is not so difficult if registered companies are
involved in it.
Limited Partnership: In limited partnership it is mandatory that there must be at least
one general partner. Source of raising fund is easy in this compared to normal partnership .
Limited Liability Company: This from of business are commenced just to protect the
interest of investor. There are different ways to raise the fund in this types of association.
Corporation: Corporation are the backbone of every country to earn revenue. This types
of business are commenced for lifetime. Sources of raising fund are high in this. Some of the
way to raise fund are:
 Issuing share, bond, debenture.
 Taking loan from different Financial institution.

 Applying for loan in government agencies where they provide loan at low interest rate.
2.Advantages and disadvantages of unincorporated and incorporated business.
Incorporate association: These are registered legal entity usually that are developed for
recreational, charitable and cultural purposes (Hazard, Hodes and Jarvis, 2014). Incorporation
create an association that is a legal entity that provide it a legal structure which is independent
from its member that support company to enter into new contract. These are consider to be more
safe and secure as compare to any other unincorporated business organisation. This help
incorporate association to raise fund in more significant and easier manner. Some basic
advantages and disadvantage of incorporate business are discussed below:
Advantages:
 Eliminates personal liabilities and allows for greater court protection.
 Establishment of continuity and eases the insurance process.
 There are number of sources of raising funds such as issuing fresh share in market,
issuing debentures, bonds etc.
Disadvantage:
 The major drawback is that it increase the cost of association.
 Due to legal entity it increase the difficulties of disbanding the organisation.
 There are lots of trouble when unincorporated organisation required additional fund
because the main source of raising fund is from there personal assets.
Unincorporated association: These types of organisation are set up by considering an
agreements among a group of people those come together for a reasons other than to make a
profit. Association of these types do not pay the taxes as there is no physical existence in the
record of government. There are different method of raising fund such as charity but some time
unincorporated association faces difficulties to raise and manage funds. Some of the basic
advantages and disadvantage are discussed below:
Advantages:
 These organisation has no necessitate to form an annual account or statements.
 Simple and flexible thus cheap to run.
Disadvantage:
 Do not have any legal existence thus not easy to get into contact (Kaplan, Weisberg and
Binder, 2014).

 Management committee personally responsible for group obligations, debts and
liabilities.
Process of Incorporated Association
 Member first decided the name of business firm and address should be attested.
 In incorporation one director and shareholder must be appointed.
 The should prepare “Memorandum of association”.
 Management must make sure that all shareholder have approval with the designed and
structure of 'Article of Association'.
 Standard industrial classification must be provided to house of company.
 There are different method of rising fund within incorporated business entity such as
bond, bank loans, share and debenture.
Process of Unincorporated Association
 First of all the objective of business must be decided.
 These organisation are set up with different partner so they have to make an agreements.
 In agreements they make sure that each partner must have equal contribution as liability
are not limited.
 The main source of raising funds within unincorporated business firm are they can raise
fund from personal assets, sometime investor can also take bank loan.
3. What are the advantages and disadvantages of company over partnership firm.
Partnership firms are mainly set up when two or more partner comes together with the
same motive to gain profit. They use sign an agreements that help them to share profit and losses
according to the ratios. But there are some disadvantage of partnership firm. Some of the
advantage and disadvantage of a company over these firm are discussed below:
Advantages:
 Limited Liability: In companies the liabilities of shareholder is limited to the face value
of share that are hold by them (Mann and Roberts, 2012).
 Perpetual existence: This is consider to be the main advantage for company as death,
insolvency of any shareholder or board of director do not effect the existence of
company. So a company has an individual legal entity with perpetual succession.
 Transferability of share: In case if a shareholder of a an organisation are displeased
with the progress of business and if they wants to sell their share they can do so.

Disadvantage:
 Lack of secrecy: According to the legal provision company use to register all their
statements from the financial institution thus the secrecy of business reduces. Some time
it also reduce when company provide statements to the shareholder as all detail are
disclosed.
 Restriction: As compared to the partnership firm, company has to bear more legal
requirement. Thus it require more time and efforts and management of company are not
able to focus on other activity.
 Lack of personal interest: Since Manager are employee not the business owner, so they
have any commitment of personal interest within company. Due to which many times
company faces problems. Corporations have some more disadvantages as compared to
partnerships firm when it comes to tax polices. Since the company and shareholder are
reasoned to be different judicial entities, they face the problem of double taxation,
meaning that the owners are taxed twice.
Section 2
1. Solve disputes of different cases with appropriate case laws with legal solution
CASE 1
In this case, for building premier league club development authority provide the cash
payment to the champion Ltd for the shifting from that place. But after moving from that place
champion Ltd face the financial problems and it take loan from various institutes. Champion Ltd
is not able to pay their loan and creditor give them thread for winding up petition. So basically
this dispute is regarding payment of creditors.
Winding up: -
It is a method of dissolving and ending business because of the financial crises. It
includes the activities such as collecting all assets in respect of selling and paid to the creditors.
In case amount is exceed after paying creditors than it will distributed in the shareholder
according to their share (McMillan, 2012). It is the last step or activity done by every company at
the time of winding up. This process followed by the both companies whether it is public or
private. There are two ways of winding up business such as:

Winding up by the order of court: - It is an court order that force the company to
winding up because of the insolvency. Court appoint a Official Receiver (OR) who check the
liquidity of the company for the purpose of repay their debt. In the court, creditor only need to
convene that company have no capacity to pay their debt and it is the only way to recover
amount. It is like a compulsion winding up and these are some requirement for it:
 It is compulsion that company have £750 or more than debt in next preceding year.
 Creditors need to file case against company.
 After petition, it is a responsibility of creditors to present evidence which shows that
company is not capable to pay it's debt and winding up is the last option.
 If creditors is able to proof that, than court pass the order for winding up.
 Court appoint (OR) who calculate the liquidity and pay off debt according to their share.
Voluntary winding up: - Member's voluntary liquidation (MVL) is done by the member
it self. Where company's shareholders decided that to wind up the company and appoint the
Official Receiver (OR) to liquidate the amount of assets. After this, distributing between the
creditors according to their debt ratio (Murray, 2014). This is done by the company at the time of
insolvency. These process followed by the voluntary winding up such as:
 Conduct general meeting and director of the company provide full information to the
shareholder regarding their decision of winding up.
 If ¾ shareholders are agreed than it will happen other wise drop the idea of winding up.
 After conformation of winding up, company need to appoint liquidator. \
 Within 15 days, copy of resolution submitted to the companies hose from the day of
meeting.
 It is mandatory to publish this news on official website and newspaper for the company's
winding up.
Related Case Law:- Ebrahimi v Westbourne Galleries Ltd
Fact: In this case, there are two partners Mr. Nazar and Mr. Ebrahimi they were
shareholders of the Ebrahimi v Westbourne Galleries Ltd company. Both party mutually decided
that to transfer their shares to son of Mr. Nazar. But after this, Mr. Nazar and his son decided to
remove Mr. Ebrahimi from the company. So Ebrahimi file the petition against the company in
respect of winding up.

Judgement: In this case, court pass the judgement in favour of Mr. Ebrahimi so court decided
that to provide capital interest and order that winding up because Ebrahimi was the quasi partner
of the company.
In the discussed case, champion Ltd try to convene their creditors to winding up option is
not suitable. They have to find alternative for this so both parties get the benefits. There are some
ways to resolve disputes between Champion Ltd and creditors.
 Company need to negotiate with creditors because they can't ignorer them.
 Champion Ltd should discussed with the creditors regarding time taken by the company
to pay it's debt. Basically request them for giving extra time to pay their debt.
These are the only options have for the Champion Ltd to resolve the disputes. Because
winding up of business will take so long time and money. It includes the lots of legal formalities
which take time as well as money. In case creditors are not agreed on this option than company
need to choose voluntary winding up option (Nichols, 2012).
CASE 2
According to case, there is disputes between Amber Ltd and it's employee Mr. Anderson
regarding breech of contract. At the time of entered in the company both parties make contract
which included some guidelines. Such as they need to give prior 12 months notice before leaving
the organisation and same as applicable on the company before terminating any employee. Mr
Anderson working as CFO in the Amber Ltd and it have access of highly confidential
information. Mr Anderson receive a proposal from Beta Ltd as CEO of the company. Mr
Anderson leave the organisation before giving 12 months prior notice to the company and
wanted to join the Beta Ltd as well who is rival firm of Amber Ltd. Company wanted to claim
Mr Anderson regarding breaching their duties against good faith because given reason is not
acceptable by the company.
Contract: - Contract is a legal agreement between two parties and it can be written as well as
expressed form but generally in written format. Build contract at the time of exchange product
and services. Make legal and binding contract which includes some guidelines and rules related
to company and respect of employees. After entered in the contract, there is no option to leave
otherwise it called breach of contract. Because every valid contract have some legal regulation,
offer and acceptance, mutual concern and legal purpose which is mandatory to follow by the

both parties. It is very important to make contract because it provide the solutions when people
involved in any disputes.
Breach of Contract: - It is a legal cause of action bear by that person who breach the contract in
respect of not compete their duties according to the contract. If in this case, person found as
guilty then they have to pay penalty or any other action taken by the company which is already
mentioned in the contract. There is some question ask by the judge at the time of breaching
contract such as:
 Contract is still working or not?
 There is any chances of modification in the contract?
 What is the actual cause and damaged value due to breach of contract?
 Reason of breaching contract because if it is not acceptable than why accept the contract
and it's term?
Related Case Law: - Jones v Andrew
Fact: In the case of Jones v Andrew, both party build a contract where everything is clearly
written in the agreement. Where Andrew decided to give £800 to the Jones to perform specific
task but at the end of work Andrew not paid full amount. After that Jones decided to file case
against Andrew for breaching contract.
Judgement: In this case, Andrew find that guilty and it is decided by the court regarding breach
of contract. Andrew have to pay full amount to the Jones with the compensation value in respect
of spending lots of time and money in the legal procedure. So court pass the judgement in favour
of Jones and declare Andrew as guilty.
To resolve this issue, Amber Ltd and Mr. Anderson follow the guidelines of Alternate
Dispute Resolution for effective solution without entered any legal procedure or follow any legal
actions.
Alternate Dispute Resolution (ADR): It includes the dispute resolution technique and process
which work for both parties who have disputes regarding any problem. In the Alternate Dispute
Resolution, third party play vary important role to resolve the issues. It is less costly and less
time taken procedure in comparison to court judgement. This procedure mainly followed by the
U.S legislation and it is very useful at present time. ADR have many motives but the main one is
to resolve the disputes between two parties. There are some different types of Alternate Dispute
Resolution such as Mediation, Conciliation and Arbitration.

 Mediation: - It includes the third party and it's play vary important role to resolve issue.
It is an interactive process where mediator resolve the disputes between the parties and
they follow the proper procedure to resolve it. Basically, mediator set the meeting with
both party regarding disputes and related issues. Conflict should be resolve by the
effective communication and with the help of negotiation technique.
 Conciliation: - It is a second form of resolving disputes where third party meet the both
parties separately. After this meet together and try to resolve it and it is different from
Mediation because it provide different kind of proposal for the settlement.
 Arbitration: - It is a best or important method of resolving issue and it is used in highly
complicated cases. Conflicts should be resolve outside the court and for this ADR appoint
arbitrator who is third party.
According to Alternate Dispute Resolution (ADR), Amber Ltd and Mr. Anderson need
to select conciliator to solve the issues. Because it is not that critical case to appoint arbitrator
and also not so simple to appoint mediator. Both party required separate discussion with the
conciliator.
CONCLUSION
From the report, it has been concluded that business law are set of principle that support
to deal with assorted condition regarding various laws such as contract, company, intellectual
property, sales of good law, taxation etc. In conclusion, it is stated that rules and regulation must
be followed by every institution so that they should understand regarding there business goals.
Such as it has been discussed in the case of Champion Ltd where company changes its location
without following the laws thus it faced many issues. Besides, Alternative Dispute Resolution
assist to work out various problems in short measure for those cases they do not require court
appearance. This is method in which third person assist both active party to overcome the issues
by giving them legal or correct advices.

REFERENCES
Books & Journals
Bishara, N. D. and Westermann‐Behaylo, M., 2012. The Law and Ethics of Restrictions on an
Employee's Post‐Employment Mobility. American Business Law Journal. 49(1). pp. 1-
61.
Burley, A. M. S., 2017. International law and international relations theory: a dual agenda. In
The Nature of International Law (pp. 11-46). Routledge.
Grace and Cohen, S., 2013. Business Ethics Problems and Cases. Oxford University Press
Australia and New Zealand.
Hanrahan, P. F., Ramsay, I. and Stapledon, G. P., 2013. Commercial applications of company
law.
Hawkins, J., 2012. Credit on Wheels: The Law and Business of Auto-Title Lending. Wash. &
Lee L. Rev. 69. p. 535.
Hazard, G. C., Hodes, W. W. and Jarvis, P. R., 2014. Law of Lawyering. Wolters Kluwer Law &
Business.
Kaplan, J., Weisberg, R. and Binder, G., 2014. Criminal law: Cases and materials. Wolters
Kluwer Law & Business.
Mann, R. A. and Roberts, B.S., 2012. Essentials of Business Law and the legal environment.
Nelson Education.
McMillan, L., 2012. The Business Judgment Rule as an Immunity Doctrine. Wm. & Mary Bus.
L. Rev. 4. p. 521.
Murray, J., 2014. Social Enterprise Innovation: Delaware's Public Benefit Corporation Law.
Harv. Bus. L. Rev. 4. p. 345.
Nichols, P. M., 2012. The business case for complying with bribery laws. American Business
Law Journal. 49(2). pp. 325-368.
Online
Business Law and Legal Definition. 2018. [Online]. Available
through:<https://definitions.uslegal.com/b/business/>.