This report is based on various sources of law and the role of government in the law-making process. The assignment covers the topic of sources of law so that it can be easy to pass legislation with authority to pass an Act. Recommendation has been given for resolving disputes through appropriate legal solutions.
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BUSINESS LAW
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Table of Contents INTRODUCTION..........................................................................................................................1 TASK 1............................................................................................................................................1 a) The meaning of statement and the various sources of UK laws.......................................1 b) The role of government in law – Making process and application of statutory and common law in Justice courts................................................................................................................3 c) Potential Impact of Company, Contract and employment law on business.......................4 TASK 2 (LO 3)................................................................................................................................6 Different types of business organisation which are legally formed......................................6 TASK 2 (LO 4)................................................................................................................................8 CASE 1...................................................................................................................................8 CASE 2.........................................................................................................................................10 CONCLUSION..............................................................................................................................12 REFERENCES.............................................................................................................................13
INTRODUCTION Business law refers to the rules and legislation which are applicable to the companies and must be complied by every organisation for operating their business activities. Law provide guidance and direction to organisation (Allen and Kraakman, 2016). This assignment will include The various sources of lawand the role of government in law making process. Moreover, the study will contain information regarding application of statutory and common law in justice courts. Furthermore, It will provide understanding of different sources of funding available with organisation. Also, The assignment will provide recommendation for resolving disputesthroughuseofappropriatelegalsolution.InAddition,Thestudywillgive understanding about the impact of company, contract and employment law on business. It is importantfororganisationtohaveunderstandingaboutvariouslawsandlegislationfor understanding the impact of those legislations on their business. It is important to have
understanding about different forms of organisation which are legally formed. This assignment will give understanding about the management and funding for organisation. Organisation by identifying the different sources of legislation will be able to get better understanding about the impact of those laws on their business activities. This assignment will include the conclusion of the whole study in a summarized form to provide better understanding. TASK 1 a) The meaning of statement and the various sources of UK laws Sovereignty means the supreme authority which the various powers. The Parliament is sovereignty which means that is the supreme authority to pass any Bill and make it an Act. . It has the authority for making legislation. This statement means that the parliament is having the authority to bill the pass for the legislation and is having the authority to pass the Act. According to This statement Queen is the approved body for the approval of bill passed by parliament. The following are the UK laws: ď‚·Statutory law :It is written law which is passed by legislature. The parliament is having the supreme authority for making the statutory law. The sources of Statutory law includes Primary and delegated legislation (Miller and Jentz, 2017). There are two types of legislation primary and delegated. Primary legislation includes the Act of parliament or statutes. Whereas delegated legislation are those which includes statutory Instrument and are made by people acting under the authority of Parliament. In delegated legislation the authority is given to minister or any other party to make legal provision. The principle legislature is parliament which is based in London. The parliament of UK consist of House of Lords and House of Commons. House of lords have 800 members of parliament in which 600 are formally appointed by Queen on the recommendation of prime minister (Allen and Kraakman, 2016). House of commons consist of 650 members and each elector have on vote. The statutory laws are made after presenting the bill in parliament and then after the royal ascent the Act of parliament becomes Law in UK. ď‚·Common law :The common law are those in which the decision taken by anysenior appellate courts becomes the part of law and are applicable to the future cases having the same facts which are related to the past decision taken by court. As per the common law the decision made by judge in the past cases becomes applicable to other cases which are
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same to that case and the same decision is taken (Kubasek And et.al., 2015). The sources of Common law includes case lawfrom judicial decision making in which the judgement will contain the facts of case, correct legal position and decision. The judicial precedent is a principle established in the previous case which is applicable to tall the cases which are having the same facts and the same decision are taken for those cases. Equity law :It is the body of law developed by court of Chancery and now it is administered with common law. It refers to set of remedies and associated procedures involved in civil law. This legal remedies involve Monetary damages, equitable relief etc. In equity law judge decide the case according to own sense of justice where there is no existing law applicable at all to decide the case (Beatty, Samuelson and Abril, 2018). The source of equity law is judicial assessment of fairness and opposed to strict and rigid rule of common law. There are various other sources of Laws in UK which consist of European union Law, European convention of human rights etc. UK is a member state of European Union that means that EU laws takes precedence over UK laws. UK is a Signatory to the European convention of Human rights. The Human rights Act, 1998, enable all the courts in UK to protect the rights which are identified in European convention of Human rights. European union Law includes Treaty of European union 1957 (The Legal System of the United Kingdom,2018). UK does not have any written constitution due to which the power to make the laws is in the hands of Parliament. b) The role of government in law – Making process and application ofstatutory and common law in Justice courts. Government is involved in law – making process as the government propose the draft or bill which is passed in parliament for making it the legislation. The process of law – making Involved the House of Lords and House of Common. The house of lords is appointed by government whereas house of commons are members of parliament. Parliament is the legislature which have the authority to pass the bill (Cameron, 2017). Moreover, it has the authority to check the work of government. The parliament is made up of both House of lords and House of common.Government proposes the draft on the basis of the needs for the rules and regulation which are required for the protection of public. The bill which is proposed by government becomes the Act of parliament when it is supported by House of Lords and House of
commons. The process of law – making involves draft of proposed law and its positive and negative impact on the society. Bill is the draft which is made on behalf of government by the civil lawyers. The bill provide information regarding the proposed law. After the bill is drafted then the first reading is held at parliament in which title of bill and the details of proposed law are read by House of Commons. In the second reading, The details of the bill are debated and amened at this stage. The member of parliament decide whether the bill should proceed or not. The committee stage is the one where the bill is referred to House of Commons committee for the detailed examination of Bill (Vagts And et.al., 2015). At this stage, there may be amendment in the bill which are required.The committee after the amendment reports them in the House. In the Third reading, the bill is represented in House The debate is held and then voting is done whether to accept or reject the bill. After that the bill is sent to House of Lord for processing and all this stages are repeated. The bill is then provided for the Royal consent where the Monarch formally approve the bill which is then becomes the Act of parliament. The government is responsible after the Bill becomes the legislation that it is properly followed by the public and if there are any changes required that must be proposed in the parliament for the changes. The statutory and common law both are considered in the justice court for reaching the decision. Statutory law are those which are formed under the authority of parliament whereas common laws are those which are formed through Judicial precedent In which the decision taken by the judge in previous case become the law and is applicable to all the similar cases for making decision.The judge refers to both the laws for reaching to the decision. The judge for reaching the decision first refers to Judicial precedent to make the decision if there no case law then the decision is taken on the basis of statutory law applicable to the case. The statutory laws are already written and just need to be applied in the specific case wherever applicable. In justice Court, The common laws are applicable in which the decision taken in the previous cases in applicable to the cases having the same facts and the same decision is taken. The statutory law is formed through the Act of parliament (Cox, 2015). It is required that the court must refer to common law before taking any decision regarding the case. So, The both Statutory and common law are applicable in Justice court for making decision regarding case. The recent reforms and development in UK legal system includes The Constitutional Reform Act and established the UK
supreme court. This removed the top level appellate court of the judiciary from the House of Lords. Another reform is the Fixed term Parliament Act which sets the date of general elections. Moreover, the recent development such as The Consumer Rights Act, 2015 which replaces the unfair terms in Consumer contract regulation 1999. For example, Murder is the common law offense and if the decision is made by Precedent regarding this Murder that the offender must be released then In the present case the same decision will be taken based on the same facts and details of the case. And if there is no case law regarding this case then the decision is taken based on the statutory law applicable for the Murder case. c) Potential Impact of Company, Contract and employment law on business. Company law :Company law provide guidelines and way the organisation must operate their activities. It set out various rules and regulation which are applicable to all the companies. As per Company law businesses in order to made the transaction are required to follow the rules and regulation stated in Company Law. If organisation does not follow the rules and regulation set in the law then there are various penalties which are applicable on the businesses and thus there is negative impact on the business (Orlov, 2016). In UK, There are Companies Act, 2006 which is applicable to all the companies operating their business in UK. As per the companies Act, 2006 the company is a separate legal entity different from its owner.Company Act, 2006 have both positive and negative impact on the businesses. It has a positive impact because it laid down rules and regulation for protection of investors, customers and creditors. But on the other hand it has a negative impact because the company have to face the consequences it does not comply with the company law. The negative impact may be the closure of company etc. Employment law :Organisation have to follow the rules and regulation as per the employment law.As per employment law, company must not discriminate between the employees on the basis of their age, gender, religion etc. Moreover, the employees of the company must be provided with equal wages as per their job roles. It is mandatory for organisation to comply with the employment laws to perform their business activities effectively and efficiently.Employment law helps in protecting the rights of employees and covers all the aspects of employer/ employee relationship. It is important for organisation to follow the rules set out by employment law to avoid various lawsuits (Norris,2016).The employment law covers areas such as employee pay and working hours, treatment of employees etc. Organisation
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have to follow various employment laws such as Equality Act, 2010 etc. Employment law have both positive and negative impact on business. Positive impact of employment law its protect both employer and employee which is beneficial for organisation as well as employees. The negative impact for not following the employment laws may result into various legal suits on company which may reduce the companies brand images and profitability. Contract Law :There are various rules and regulation which are required to be followed by companies while forming a contract.Ass per contract law, it includes various elements for formation of contract such as offer, acceptance, considerations, Mutual consent, writing, legal form etc. If the organisation for formation of contract does not follow the rules and regulations as per the contract law then the organisation have to face various consequences (Yu, 2018). The contract law have negative impact on business if the rules and regulation laid down as per contract law are not followed by companies during formation of contract. The organisation can face lawsuit for not following the regulations. Moreover, the positive impact of contract law is that it helps the business in defining the responsibility of each party. It is the contract in which all the things about the employment will be written and employee will be liable to follow the all duties mention under it. Legislation is the laws which are made through the Act of parliament. The legislation are formed through the proposed draft formed by government providing the details and requirement of the law. Regulation is the act of controlling. It is the rule of order force by law. It is important for legislation to be regulated. Without legislation there is no regulation (Merry, Davis and Kingsbury, 2015). Standards is the limit or rule approved and monitored for compliance. Standards provide direction for treatment of various transactions.For example, Equality Act, 2010 is a legislation which is required to followed by every organisation and if this act is not followed they the company have to face various lawsuit which can hamper their brand image and will increase their employee turnover. Standards are the principles or norms which are used as an example to measure the quality or performance of a practice of procedures. TASK 2(LO 3) Different types of business organisation which are legally formed Businessorganisationconsistofunincorporatedandincorporatedbusinesses. Unincorporated business consist of sole proprietorship and partnership. '
Sole proprietorship :The sole trader is the only person operating the business activities. It offers complete ownership to sole trader. But there is also disadvantage of forming sole proprietorship is that the owner is personally liable for all the financial obligation and debts (Basedow, 2017).Sole proprietors is not a legal entity and is not legally separated from the business. Advantages ď‚·Sole trader have the control over the various business activities. ď‚·It enjoys all profits earned by the business as there is no sharing of profits. ď‚·There is no need to prepare financial accounts. ď‚·The sole trader is having the authority to make the decision solely. ď‚·The less cost is incurred in formation of sole proprietorship. Disadvantages ď‚·The sole trader is having the sole responsibility for the management for operation which may require more time. ď‚·The sole trader is not a separate legal entity which means it is subject to unlimited liability. ď‚·It is difficult for sole trader to raise finance for performing their various operations. ď‚·The success or failure of business depend on sole trader as it is responsible for making all the decisions. Partnership :Partnership is the relationship existing between two or more partners to carry out the business activities.The partners share the profit and loss of the firm. Moreover, they all are responsible for making effective decision for the successof their business. Partnership can be formed by a verbal agreement. There are two form of partnership existing In UK one is traditional partnership and other is Limited liability partnership. The Traditional partnership is an unincorporated business which means that it does not require to be register with Companies House. Also, It has no obligation for maintaining statutory records. Whereas Limited Liability partnership is a business which is incorporated at companies house consisting of two or more person that share profits equally.In this type of formation the partners have limited liability. Moreover, LLP is separate and distinct from its partners (Davidson, Forsythe and Knowles, 2015). LLP are required to submit annual return in same way companies are. Limited
Liabilitypartnershipdoesnotrequirepartnershipagreement.Forthelegalformationof partnership the following are the basic requirement : ď‚·Two or more person : It is mandatory for formation of partnership that there are two or more person. ď‚·Profits and losses must be shared equally. ď‚·It is required to have a partnership agreement. Advantages ď‚·The partnership offers the advantage of raising capital by admission of more partners. ď‚·The partners share the profitability and the responsibility equally. ď‚·A joint ownership of business. ď‚·All the partners are involved in decision making as it help in providing effective decisions. Disadvantages ď‚·The liability of businesses is unlimited. ď‚·Each partner is jointly or severally liable for the partnership debts. ď‚·In partnership, the partners have to pay tax in the same manner as sole trader. ď‚·There may be disagreement between partners on various matters. Incorporated business are the corporation that provide various benefits which are not provided in Unincorporated business (Types of Business,2017). It includes liability protection and additional tax deductions. Limited Liability Company :This are the most common form of business in UK (Frank and Bix, 2017). The limited Liability company provide the shareholders and directors protection to their personal wealth as the liability is limited. The company required to be register with Company House for its legal formation. Moreover, the company must have at least one director. The company is a separate legal entity different from its owners. Advantages ď‚·The limited liability company is having financial security as the liability is limited up to the extent of their investment. ď‚·The Company is a separate legal entity different from its owners. ď‚·The limited liability companies are taxed on their profits.
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ď‚·Limited liability company provide more professional image than any other form of businesses. Disadvantages ď‚·Must be officially incorporated at Companies House. ď‚·Company name is subject to certain restriction. ď‚·The limited liability company have more complex and time consuming accounting requirement. ď‚·The limited liability company have more administrative responsibility such as tax return, expense details etc. ď‚·It is required that company must publish its accounts at Companies House including details of corporation Tax etc. TASK 2 (LO 4) CASE 1 Issues- ď‚·The financial problem due to decline in its customers. ď‚·Creditors to the entity are threatening for winding up petition Statues legislation- The one of the main source of law in winding up are statute backed the rules of insolvency. It can be stated that the low of insolvency cannot give the strong role of winding up. Insolvency Act 1986- As per this act of schedule 11, all kinds of winding up petitions even those that commenced before all are governed by the Insolvency act 1986. These are the act that can apply to the England and Wales as well as Scotland but it is not able to apply in Northern Ireland. If the firm gets insolvent than it is the right of the creditors to sue on the company. Winding up petition- The company that is situated in London, Champion Ltd was given cash payment to move its activities on North London in order to have development in new stadium by premier league club. After some period of time, the company has experienced financial problem due to decline in growth of customers. Thus, creditors to the entity are also threatening to apply to the court for havingWinding up petition. It can be done in manner as-
Compulsory winding up-It can be happen at the time when creditors of an insolvent firm asks the court in order to wind up (Compulsory and voluntary winding up—overview,2018.). If the firm go for process of liquidation, the court of appoints the liquidator for liquidation. In this process, the primary objective of liquidator is to enhance the funds that are needed to pay to the creditors. If the company adopts it, then the name of the firm will be dissolved and can be struck off from the list of companies in the registrar office. In this situation, the company continues to exist as a corporate entity till its dissolution. Thus, all the running businesses of the firm will be administered by the liquidator itself during the phase of liquidation. In this situation entity will not have any control over the business activities. In this, the company will loose all his control over the activities of the firm. Voluntary winding up- The company can also go for voluntary wound up by itself. Under this, an ordinary solution will be passed in the General meeting of entity. In this case, the firm cannot able to before the pre-fixed period by the articles of association of the firm has been expired. The member of the firm are allows for the voluntary winding up in the situation where the company is solvent. In this, member areallowed for the realised assets to return to the shareholders In terms to realise their investment in the company. In the situation, when firms gets insolvent then the director can decide to no longer carry on business due to the liabilities of firm. In this, the director will appoint the provision liquidator for temporary purpose. Thus, shareholder must decide that whether the company is about to wind up. In addition to it, the creditors in firm are able to nominate the choice of liquidator. Legal solution-In the above stated case of company that is situated in London,Champion Ltd was given cash payment to move itsactivitieson North London with regards to bring improvement innew stadium by premier league club. After some period of time, the firm gets issues as financial problem due to decrease in number of customers. The creditors were threatening to firm to see them in courts. In this case, the entity should go for voluntary wind up so that they can sell out the assets to pay the debt.By this solution, the all control of the firm will not be given into the hands of court. ALTERNATIVE DISPUTE RESOLUTION This refers to term where the settling of dispute outside of the court room. It is one of the best method to resolve dispute without litigation. By the process of ADR, the firm can also go for mediation, with help of it parties can resolve their own disputes by the help of neutral their
party. It never imposes the decision upon the parties. They perform their role as to listen to both parties and to help to move them through difficulties. CASE 2 Issues- ď‚·The CFO of Amber Ltd, was having highly confidential information about the firm. ď‚·Beta Ltd has offered more attractive role as CEO and he wrote resignation to Amber Ltd about leaving. ď‚·Thus, employment contract has mentioned that he has to give 12 month of notice. ď‚·So, Amber Ltd objected to that proposal by relaying over the terms and condition of contract of employment. Statue- Injunction law-It is an order that issued by the court that forces the defendant as person, corporation and government entity to do or to prevent from doing and it is also depends over the request of plaintiff. In the stated case the condition of induction are full filling as there is influence of human right and breach to the contact of employment. At time, when Amber Ltd decides to files the suits against the Mr Anderson the plaintiff has to specify the type of legal remedy they are asking the court to grant. Thus, instead of asking for the monetary damages they can also ask the court for an injunctive relief against the defendant. This is better remedy by this the defendant can refrain from any kind of the specific acts. Thus, injunction remedy to the defendant will be considered as the legal remedy. Employment contract-The contract of employment is an agreement between the employer and employee. It is the documents that written down with the rights and responsibilities of both employer and employee. This document will be inclusive of the salary and wages, commission. It will also be inclusive of he length of time for which employee agrees to work for the company. It will be signed by the both employer and employee. In this above stated case, there is breach of contract of employment with the hand of Mr Anderson. Breachbyemployee-Inthiscasetheemployerhastherighttosueanddemandfor compensation can be also be awarded of the event has made on the part of employee. The compensation can be claimed on behalf of employee. Legal solution-In this above case, Mr Anderson has breached the contract of employment and he wrote resignation without giving the 12 month notice period. In this case, the Amber Ltd can
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sue on Mr Anderson on behalf of contract made between Amber Ltd and Mr Anderson. It is breach of the contract and he has the right to sue for the damages. In this situation, the injunction relief can also be granted to the defendant so that he will be restrain from doing something until and unless the final listening of court. ALTERNATIVE DISPUTE RESOLUTION- It is the method to resolve the method without the process of litigation and decision of courts (Alternative Dispute Resolution,2018.). The decision with ADR will also be considered as valid as the decision of courts. Thus, the process of dispute can be also be done with the method as Arbitration, mediation and negotiation. The process of ADR is intended to reduced the stress, costs and formality associated with going to court. In this case, the plaintiff can also go for Alternative Dispute Resolution. In this, the method of arbitration can be applied. Thus, arbitration is the legal way to sort out the dispute. It is legal technique for the resolution of dispute outside the courts. Under it, court will appoint as arbitrator who has to listen the both of the parties and on the basis of the hearing the one better solution will be taken by the arbitrator. The decision taken by the arbitrator will be imposed on the defendant and he will be liable for the actions justified by the Arbitrator. CONCLUSION Based on the above report it can be concluded that Business law encompasses the all legal rules and regulation that are binds to be followed by the company. It mainly deals with the creation of the bushiness and the issues that are mostly arise as existing businesses interact with the public. The present report is based on thevarious sources of law and the role of government in law making process. Furthermore, the assignment has covered the topic as various sources of law so that it can be easy to pass for the legislation and is having the authority to pass the Act. Lastly, recommendation has been given for resolving disputes through use of appropriate legal solution.
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