Effective Dispute Resolution: Legal Solutions and Recommendations

This assignment explores various laws of the UK that deal with different aspects of dispute resolution. It examines common law and statutory law, their applications in court, and impact on business. The report also discusses types of businesses in the UK, including sole traders, partnerships, and limited companies, highlighting their pros and cons. Furthermore, it provides examples of legal solutions and recommendations for resolving disputes, including arbitration and mediation methods. The assignment concludes by emphasizing the importance of effective dispute resolution methods in maintaining a positive business reputation.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Different sources of law....................................................................................................1
P2 Role of government in making law and application of common and statutory law in justice
court........................................................................................................................................2
M1 Effectiveness of legal system in context to recent reforms and development.................3
LO 2.................................................................................................................................................3
P3 Impact of company, employment and contract law on business......................................3
M2 Difference between legislation, regulations and standards which impact the business...5
D1 Critical evaluation of the legal system and law................................................................5
LO 3.................................................................................................................................................5
P4 Legal framework of different types of organisations........................................................5
P5 Management and funding of business organisations.........................................................6
M3 Advantages and disadvantages of different types of business.........................................6
D2 Critical review and evaluation of different businesses.....................................................7
LO 4.................................................................................................................................................8
P6 Recommendation for solving disputes using examples....................................................8
M4 & D3 Effectiveness of legal solution, legal advice and support for dispute resolution...8

INTRODUCTION
Business law can be defined as framework that governs business and commerce which
deals with various issues related to private as well as public law. Business law deals with
regulating corporate contracts and manufacturing and sales of goods and services deliver to
consumers. The UK company law regulates corporations under the Companies act 2006. This
law simply sates that how business need to run and work. It includes state as well as federal laws
with administrative regulations. The report includes different sources of law and role of
government in making law effective in legal system. It shows impact of employment and
contract law upon business. Later it shows how business organizations are managed and how
different types of business organizations are formed. At last the report includes recommendations
to solve disputes that arises in the company.
MAIN BODY
LO 1
P1 Different sources of law
Sources of law means rulers that make state to govern its territory. Source of UK law
includes legislation, common law, European Union law and European convention on Human
rights. It means the power from which law derives its validity (Adams, 2017). The sources of UK
law includes:
European law - When UK became part of European Economic Community, the
European law came into existence. The European community is an important source of business
law which impacts product safety and employment law. The EC have currently 27 member
states. Under EC act 1972, when conflict arises EU takes the priority to solve the conflicts. The
sources of European law includes :
Treaties – The treaties impose legal obligation on all the member states (Adams, 2017).
Few of the obligations are enforceable by individual citizens even when the state members has
taken legislative action to implement them.
Regulations – These are imposed to bring uniformity in the law throughout the
community. They take immediate effect from the time they are being issued.
Directives – These comprises most quantifiable source of law in EC. It is applied to all
the members of state that want to lead harmony between member states. Derivatives set the aims

which must be achieved but how it will be implemented depends upon members of the state. It
has to be implemented within specific time frames by the member states.
Decisions – A decision affect only individual member state, individual or a particular
organization. It may strengthen the party to whom it is issued or otherwise is prevented to do
something.
 Act of parliament – Direct legislation consists of Act of parliament which was
created by passing a bill through a process by both the houses- House of Commons
and House of Lords.
 Delegated legislation – It is form of indirect legislation which is made by bodies that
are outside the Parliament. They exercise legislative power which is delegated them
by Act of Parliament.
 Case law – It is associated with the jurisdiction of the English common law in
relation with the concept adopted by Civil law system. It is also known as judicial
precedent and is based on the doctrine of stare decisions.
P2 Role of government in making law and application of common and statutory law in justice
court
Government of UK consists of members who are responsible for running the country.
The party that wins the election makes the government for next five years. The parliament of UK
performs 3 core functions which includes representing its citizens, to pass various laws and to
monitor actions of government. Parliament is made up of people who are elected and have
been appointed. The parliament of UK consists of two houses in which House of Commons
which includes people who are elected as MP’s and includes people in other political parties as
well who were not chosen to be as ministers (Adams, 2017). The House of Lords are appointed
for lifetime rather than being elected and they are chosen because of their achievements and
experience.
The role of government is that it is responsible for taking decision that how the country
will run and will be managed. Government set taxes and choose the sector in which expenditure
is needed.

c. Government of UK is also responsible for providing information on why and when the
law will change along with its application and other activities like visa and immigration, tax
credits etc.
Application of Common law – Common law is the law that has been developed on the
precedent decisions by the judges. It is based on judgments that were made in the past over
many years. It is also known as case laws which is divided into two parts in which one judgment
is passed and create new laws and other in which judges consider existing law and takes
decisions. It is created on everyday basis without causing any expense to the state (Adams ,
2017).
Application of Statutory law – Statutory laws are written laws that are passed by
government of UK and are accepted by the society. This law takes statutes as their basis and can
be passed by various government agencies of UK. Under Statutory law, new rules are formed to
meet the needs of the citizens for the purpose of solving issues and to formalize existing laws.
These laws are already written and just need to applied to a specific case. When the law is clear,
the court presumes that the legislature intend to give meaning to every word in the law. When the
matter is vague, court look at its context.
M1 Effectiveness of legal system in context to recent reforms and development
The recent reforms and development which was faced by Legal system of UK were
creating the college of policing in 2012, creating the National Crime Agency in 2013 by
replacing other agencies. The other reform took place in 2013 was reform of country court. The
effect of these reforms were that legal aid practitioners reduced, scope of legal aid scheme has
been restricted. The legal service commission was wound up and was replaced by legal aid
agency and will operate with much strict laws and legal framework. The review of criminal
justice system undertaken in 2014 lead to changes in criminal cases that used to manage in
criminal courts. It transformed justice system of UK and did change in conduct of social
proceedings.
LO 2
P3 Impact of company, employment and contract law on business
Company law :
UK company law regulates the corporations under Companies act 2006. The 2006 act
exists along with few parts of Companies Act 1985 and 89. The corporate restructuring is most

common in UK but there are other varieties of structure that can be setting up a branch,
partnership, joint venture etc. Overseas companies can register in UK as a branch to conduct
business operations. According to the Company law, company is required to fill its MOA with
the registrar while applying for registration of companies (Adams, 2017). The AOA of company
contains all the basic information regarding internal management of the company which contains
its directors and shareholders, share capital changes etc. No government or other permission is
required to establish a company in UK but there is some regulation on use of certain business
names as once the company is registered, the name of the company can be changed by passing
special resolution ( Adams, 2017.). The company law sees company as a legal identity apart from
its owner. The application was seen in Salmon v Salomon where company was identified as a
legal person distinct from its owner.
Contract law :
Contract Act, 1999 defines contract as it is an agreement between two parties that bind
them together to perform an activity in return of adequate consideration. A contract includes
offer and acceptance where one individual offers an agreement and other party accepts it. The
other important aspect of contract law is that when parties make an agreement their intention
need to be clear and specific to carry on the contract smoothly(Adams, 2017). In case of any
disputes, the law courts analyses the terms and conditions of the contract and this condition need
not be vague and ambiguous. Its application can be seen in the case of Thornton v Shoe Lane
Parking [1971], when a contract was entered with a machine which was accepting money to
give a ticket and it was considered as a contract.
Employment law :
Employment law, 1999 regulates the relationship between employees and employers. It
governs rights of employee that they have at work place from flexible working hours to leaves
rights and regarding health and safety. It includes equity act as well as health and safety act 1974
which defines roles and responsibilities of both employees and employers, If any of the party
does not follow the obligations created by law, serous actions can be taken in the form of fines
and punishment. Its application can be seen in the case of Pimlico plumber 2018, when a self
concentrator satisfied the condition of being an employee and all the rights that are enjoyed by
employee was given to that individual with all the benefits that employee would get.

M2 Difference between legislation, regulations and standards which impact the business
Legislation are formed by the parliament of UK that are need to followed compulsorily in
addition with the laws. Regulations are the basic guidelines that are issued by regulatory
authorities for application of various laws. Standards are defined as set of quality standards for
products, services and systems that can be set by organizations but implication of which is not
compulsory but voluntary. Implementing standard can ensure quality, safety and efficiency of the
product. In short, legislation are compulsory rules that are need to be followed whereas
regulations are basic guidelines issues by authorities like Bank of England and standards are
quality standards that are not compulsory but can ensure safety and effectiveness of product.
D1 Critical evaluation of the legal system and law
The legal system and law can be critically evaluated as application of regulations and
legislation is compulsory and no individual can raise questions over its applicability. Applying
standards is voluntary and on the wish of a business in case if they want to improve their quality
and efficiency. For example, application of equity act 2010 is compulsory for an organisation to
treat every one equally. Also, the maternal and paternal leave etc. regulation, 1999 defines how it
equity must be provided to specific people in organisation. On the other hand the standards
related with giving maternity treatment in business is on the discretion of the organisation to
follow or not.
LO 3
P4 Legal framework of different types of organisations
There are 3 types of legal organizations which are :
Sole proprietorship :
It is the most common and easiest form of business in which an individual carry on its
business all alone and is the owner of the business. They are legally responsible for all the
activities that are being carried out in the business and are responsible for the finances of the
business as well (Adams, 2017). They share the profit and losses of the business all by
themselves. Sole trader are self employed and refers to legal structure of the business. They pay
income taxes and send self assessment tax return every year to the government of UK.
Partnership :
Partnership is when two or more than two persons commence business together for the
motive of profit earning. It is defined under s45 of Partnership act as a trade, occupation or

profession. Partnerships are treated with special tax rules. A partnership is not a separate legal
entity and although no special paperwork is needed but partnership agreement is recommended
to deal with future uncertainties.
Limited Company :
A limited company is a structure of business that treats company as a legal entity means
that owner and company are distinct from each other. The business which works as a limited
company have separate finances from owner's personal finances. The assets and profit belong to
owner only after payment of tax. Under this, shareholders have limited liability in which the
owners and shareholders are not personally liable for the losses and debts incurred by the
company.
P5 Management and funding of business organisations
Sole trader business is managed by an individual who is business owner. The payment of
tax is done by individual and after all the deductions the profit is shared by the individual as
there is no other owner of the business (Adams, 2017). There is no legal authority like CS,
auditors are required.
The funding of sole proprietor business comes from savings, friends and family.
The management of Partnership finding is done by all the partners mentioned in the
agreement and they share profit and losses accordingly as mentioned in the deed. All the partners
are responsible for paying debts and liabilities, there is no legal requirement of CS and auditors.
The funding of partnership comes from saving of partners, bank loan, bonds and debentures etc.
The limited company is managed by directors and management of the company. The
directors are appointed in the annual general meeting of the company. The profit and losses are
shared among all the shareholders of the company (Adams, 2017). The legal Authorities like CS
and auditors are appointed to see legal framework of the company. The funding of limited
company can raise through friends and family or bank loans and through initial public offerings.
M3 Advantages and disadvantages of different types of business
Sole trader
Pros Cons
 The Easiest way to start a business with
limited complexities.
 Fast decision making process as
 Owner has unlimited liability that has
to be bear all by individual.
 Decisions may lack expertise and

decisions is taken by an individual.
 Data of the business is secured.
effectiveness.
 Raising funds from external source gets
difficult for the owner.
Partnership
Pros Cons
 Raising funds is not a difficult task as
burden is shared by all the individuals.
 Responsibilities is shared by all the
person therefore decrease the burden of
work.
 It leads to innovative and creative
decisions as more people are involved.
 The liability of the partners is
unlimited.
 The risk of chaos and disagreements
rises among partners of the business.
 Each partner is liable for the actions
done by other partners.
Limited Company
Pros Cons
 It helps the business in getting benefits
of tax over sole trader and partnership
firms.
 It has limited liability which means that
owners does not face any personal
liability and share their liability with
shareholders of the company.
 The owners are required to pay
corporate taxes on their profits.
 It has legal obligations and
requirements that are need to be
fulfilled by the company.
D2 Critical review and evaluation of different businesses
The critical review of all the types of business is that among all the three types of
business organization, the sole trader is the simplest and easiest way to set up a business as there
is no legal formalities and operating and running the business is easy as all the profit is shared by
the individual which avoids all the confusion and chaos (Adams, 2017). The other form is
partnership in which more than two individuals share losses and profits, in case if loss is shared it

turns out to be an advantage but when profit has to be shared it works as a disadvantage. The
legal formalities of this type of business is more than that of sole trader as it involved a writing
agreement between the partners. The last type is limited company in which it is treated as an
individual entity which makes it different from other two form of business and also it has to pay
corporate tax which is not required in the case of sole trader and partnership.
LO 4
P6 Recommendation for solving disputes using examples
Case illustration 1 : The line manager A of XYZ limited told an employee B under
designation of packaging head to load the lorry with goods with more quantity of goods that a
lorry can usually take. B refused to do so as he clearly stated that he might get injured and goods
can get damaged as well. A did not listen to him and forced B to do exactly what A want him to
do. After obliging the order of A, B got injured and injured his back badly. What action can B
take against A.
Solution : B can claim for compensation for the injury suffered by B under the
negligence tort. Also, mentioned in employment law that employer need to take care of its
employees and employees must not get exploited. Here, A owes a valid amount of compensation
to B for his mental, physical injury and B can file the case against A.
Case illustration 2 : Company ABC is facing financial issues and cannot pay the salary
to its employees out of financial burden. The management of the company requested the
employee to let go their salary and accept the commission of 10 % until it gets its position back.
All the employees agreed to the offer (Adams, 2017.). Now, after 2 years the company got
revived and is operating in profit and employees of the company asked for the salary of 2 years
and company refused to give any. Suggest the solution on both the parts.
Solution : For the sake of reputation of the company and employees they come up mid-way
solution which is hiring an arbitrator who will take all the facts and evidences from both the
parties and will solve the matter. This method is quick, easy and informal as well as less costly.
This is the best solution for both the parties to solve their matter.
M4 & D3 Effectiveness of legal solution, legal advice and support for dispute resolution
Both legal solutions stated above are under law and code of conduct of the legal
processing. Under Case 1, B has the right to go in the court and file a case against A in which he
has to compensate B for all the medical expenses he incurred because of negligent behavior of A.

On the other hand, in Case 2, both parties decided not to go to court and settle the dispute outside
the court which is also legal (Adams, 2017). They referred to Alternative Dispute Solution
method in which the arbitrator gave mutual solution for both the parties keeping in mind the
employment, minimum wage law and the solution was agreed by both the parties.
Both the solution was legal and gave effective remedies among which one was through
procedure of court and other was outside the court which was less time consuming and less
expensive method.
CONCLUSION
The report concluded various law of UK which has different aspects to deal with. Each
law is specific and have different sources which included delegated legislation, EU directives
etc. it was concluded in the report that many bills were passed in UK by the consent of both the
houses. It showed how common law and statutory law has different applications in the court and
impact the business differently. It depicted various types of businesses that can be carried out in
UK and among which sole trader is the easiest to operate with fewer complexities and
partnership and limited company has its own pro and cons. It showed examples of legal solutions
and recommendation to solve disputes.

REFERENCES
Books and journal
Adams A., 2017. Implied terms in English contract law. Pearson Education Limited.