Sources of Legal System in UK and Business Laws

The report concludes that the government plays a crucial role in shaping business laws in the UK. Various laws are imposed to protect employees' rights, wages, labor protection, and safety regulations. Alternative dispute resolution methods like arbitration and mediation are also discussed.

Business Law
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1- Explain the different sources of law.....................................................................................3
P2- Explain the role of government in law making ...................................................................4
TASK 2............................................................................................................................................7
P3- Potential impact of law on a business...................................................................................7
TASK 3............................................................................................................................................8
P4- Different types of business organisation are legally formed................................................8
P5- How business organisation is managed and funded...........................................................11
TASK 4..........................................................................................................................................11
P6- Legal solutions for resolving the disputes..........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business law is a branch of law that deals with business rights, duties and liabilities that
includes any kind of business transactions related to commerce, trade, sales and merchandising.
It is also called commercial and corporate law. It deals with new start-ups and also issues arise in
existing industry with public, other organisation and government. Business law is a branch of
civil law that includes public as well as private law. Commercial law regulates corporate
contracts, hiring practices, and the manufacture and sale of consumer goods. This report
describes the Company “Pegasus” and its related legal system. It is also described the division
and sources of law in UK and problem associated with UK system.
TASK 1
P1- Explain the different sources of law.
Legal System in UK
The United Kingdom legal system consists of 3 systems: England and Wales (Welsh law
or English law), Scotland (Scots law) and Northern Ireland (Northern Ireland law). They form 3
distinct legal power each of them having their personal court and legal profession. The UK has
no written constitution it means there is no single written document that defines the right of
individuals and how government should act.
1. Statues Legislation: Statue is a formal written legislation of legislative authority that
regulate city, state or country. This legislation is direct contrast with case law, develop
from decisions of appellate courts which based on country constitution law.
2. Delegated Legislation: Legislation law is created by legislative assembly. The principal
legislature is UK parliament, which is in London. It consists of two types first is House of
commons and second one is House of lords. In House of common exist 650 Parliament
members. Each member represents a geographic constituency, whose electors vote using
“first-pass-the-post” system (Harner and Rhee, 2014).
3. Common Law: The common law is important source of key legal principles. The legal
system of England and Wales is common law one, so the decisions of senior appellant
courts become part of law (Cleaveland, Dutcher and Epps, 2015). These are the common
law of UK which industries and organisations has to follow to deal with situations and
contradiction within an industry.
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4. European Union Law: The UK is a member of European Union (EU), which means the
European Union law take superior power over UK law. The legal order of European
treaties:
 The Treaty on European Union 1957
 The Single on European Act 1986
 The Treaty on European Union (Maastricht Treaty)
P2- Explain the role of government in law making
Laws are the main source of legal system and government plays a key role in law
making. Many government powers have been delegated to the devolved institutions in Scotland,
Wales and Northern Ireland, only the UK government can speak on behalf of the UK and
represents us abroad (Macaulay, 2018).
Presenting agenda to the government: Government analyses the issues which occur in
country. According to that legislation laws are changed. The executive and judicial authority
analyses issues in UK legal system.
Selecting and considering the agenda to be addressed: The government present the
proposal to lower level legal bodies. If proposal was approved by these bodies then it converts
into bill which is further required to present before the parliament.
Carry forward the proposal after getting approved by cabinet ministers: After all the
discussion the proposal is passed to cabinet minister then ministers take a overview of proposal
and passed it.
Scrutinization and bill consideration by parliament: It is the duty of government to
discuss all the key roles and information related to bill in parliament (Carlin, 2015). In this all the
information is provided such as why this bill is formulated what is the use and need of law and
also the rule in rules by government.
Parliamentary stages: Generally the bill was passed by parliament but in some cases the
bill goes through some stages that is mentioned below:
First reading- The bill announced formally. In this stage bill is not printed and no debate can
occur.
Second reading- In this stage the principle of bill is discussed and debate occurs. The
MP's seek to bring specific features of bill.
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Committee stage- Afterwards MP's will select to audit the Bill. The committee will point
the state of parties in House of Commons which means there will be majority over the
governing.
Report stage: In this point the report is generated by committee and bill returns to whole
house to enable them and changes made during committee stage. The Member of Parliament has
a right to force the government to make changes in law.
Third reading: This is the final stage of parliament in which debate quite often short.
Government has to follow the procedure according to parliament that has abided in constitution.
MP's can view the bill as amended after the previous stages and cannot suggest further changes.
Approved by one chamber is considered by another chamber: After the third reading
and all amendments done it is forwarded in a written format for signed by presiding officers of
the other house for its agreement.
Turning of a bill into law: The bill is formulated by government and then passed by
parliament and it becomes a law. The parliament monitoring the law which is passed by the
government. It describes the regulations and laws which has followed by common people.
Amendments: After the changes made voting is done to pass the law in parliament.
Completion: When the bill is passed by the parliament then it is sent to Queen for
approval. After the approval of Queen, the bill becomes an Act for every one which has to be
followed.
Providing information: The government provides the information to public which law has been
passed and what are responsibilities for that.
1. Common laws' application in Court: It has a continuous reforming structure. The
judgement is done by legal documentation as per the cases in court (Kariyawasam, and
Low, 2014). In this the case law has a common system to all jurisdiction.
2. Statutory laws' application in court: These are laws which are in written format with in
certain formal body of legal system. Statutory laws are varied from regulatory or
administrative laws that are passed by executive agencies, common law or law created by
prior court decision.
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TASK 2
P3- Potential impact of law on a business.
Government imposed several rules and regulations on both small and big business. It is
important for organisation to understand business law and regulation that affect the business. The
regulations imposed by government mainly classified into four categories: employee relations,
bureaucratic, international trade and taxes (Besley, 2015).
Impact of Employment law to business-
Employment law protect the rights of employees. It will cover all the facets of
organisation and employee relationship. This law regulates that how to treat employees in
company this will include wage regulations, wage garnishment and worker protection rules,
working hour, business transfers and takeovers etc. Labour law also included order law like child
labour protection and safety and healthy rules (Issa and Pick, 2015). The HR management is
responsible for cooperation of large number of employment and workplace-related laws. It is the
responsibility of Pegasus to apply all employee safety needs as per the case of Pimlico plumbers.
As per the above stated case employment law has been concluded the better
advantageous performance goals. The Pimlico plumbers has been based on self employed that is
very much productive for companies. This case presented the employment rights under UK laws.
This case closely monitored because of its impact on organisation engaging large numbers of
individual on a self employed basis, including those operating in the gig economy. Pimlico
Plumber case was all about the rights of workers. P company needs to adopt all employment
contract act in between them to ensure the company profitability ratio and goodwill.
Impact of Company law to businesses-
Company law provides guidance and direction to every business to run smoothly. Any
change made in company law means modification in the way business operate. Taxation policy
of any business can affect business directly. In addition, it controls government and others from
infringing on property rights, disputes arise and to resolved the disputes. The law is to
understand the forth rules for business to know what is expected from them in dealings and
transactions. In Pegasus P company rules the driver must wear company uniform and drive the
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branded van with a tracker and always carry an identity card with them. Every driver should
follow the company rules as set by Pegasus.
Impact of Contract law to businesses-
Contract law regulates the enforcement and performance between the two or more private
separation of ownership and control parties. For example, under the Consumer Contract for
goods and services, Consumer right Act 2015, everyone has right to query about goods sales and
transfer as well as quality of goods. The contract between Pegasus, drafted some years ago, uses
words such as gross misconduct and wages.
TASK 3
P4- Different types of business organisation are legally formed
1. Sole Proprietorship
Most of the business is start with sole proprietorship. In these firm only one person can own the
business means usually individual has day to day responsibility to run the business. The person
who owns the business is personally responsible for its debts and liabilities.
Advantages
 Complete authority in decision making
 Simple to set up and nominally expensive
Disadvantages
 Limited liability and responsible for all debts and obligations of business.
 Employee benefits such as owner's medical insurance premium are not directly
deductible from business income.
2. Partnerships
Partnership is formed when two or more people share their ownership of a single business. Like
sole proprietorship, partnership has also no need to form legal documentation but it is advisable
to create partnership agreement between owners (Cleaveland, Dutcher and Epps, 2015). This
agreement sets forth how decision will make, profit share ability, disputes resolved.
Advantages
 Ability to raise the funds may be increased due to more owners.
 Profit directly to partners personal tax return.
Disadvantages
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 Decision shared as results disagreements can occur.
 Profit must be shared with others.
3. Limited Liability Company (LLC)
Small and medium companies can come under as an LLC. In these owner’s personal assets are
protected from financial liability and provides some protection against personal liabilities
(Macaulay, 2018).
Advantages
 No double taxation
 Limited liability of partnership
 Enormous shareholders
Disadvantages
 Every LLC dissolves after 30 years as per the state law.
 According to some state laws LLC dissolves after the death or quit of owner or member.
4. Corporation
Corporation business organisation is complex and needs high amount of cost to set up.
Corporation can be taxed, sued or enter into contractual agreements. The shareholders of
corporation are its owners. For every decision for business, it elects a board of directors to come
on one decision (Carlin, 2015). In these type of business organisation requires many legal
agreements and contracts.
Advantages
 Owners have their liability protection.
 Corporation can retain profit without owners paying tax.
 Corporation not dissolve after owners dies or quit.
Disadvantage
 High overall tax rates
 Income is taxed twice as corporate tax and individual income tax.
Formation of a company is divided into four stages:
 Promotion of company- This is the first stage of company formation in which company
promotions can be done by some persons. The company promotion can be done by
conceptualise of idea and turn the idea into actions. This means beginning of business or
formation of company starts.
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 Registration of company- The company needs to be registered under section 7-13 of
companies act, 2006. When company comes in existence then it is necessary to register
the company under Companies Act. When it is duly registered under the Act then
company can be properly formed. Steps of Registration of business- Formulating memorandum of association: In which, the directors as well as members
must refer to subscribe their respective names, to be included in the memorandum.
 Formulating article of association: This is basically to present the specified rules and
regulations of the company.
1. Certification of Incorporation- After the registration of Memorandum of Association,
Articles of Association and other formal documents are required to be submitted, then
Registrar will issue a certificate i.e. Certification of Incorporation. This is the proof that
the company is incorporated and all the formalities of Company have been complied
under the Act.
2. Certification of Commencement of Business- Private company can commence their
business after the certification of incorporation but the public company has to complete
the process of Commencement of Business. This certification allows the company to
subscribe to its share capital.\
P5- How business organisation is managed and funded
The organisation and its management can be done by summarizes the information about
business structure, members’ duties. In corporate sector the management is done by board of
directors. The board of director includes owner, its shareholder and members of company which
manages all the task of company and have decision making authority in critical situation. In
organisation, German law imposes two tier structure. In this lower tier consisting two-third of
shareholders and one-third employees of company and on upper tier consisting of management
board (Kariyawasam and Low, 2014). The simplest form of management is partnership and
Pegasus is formed by two partners Jay and Alex. In company both partners are entitled to take
part in management.
TASK 4
P6- Legal solutions for resolving the disputes
Pegasus have faced many legal disputes arise litigation in court system which may cost
company expensive, confusing and time consuming (Besley, 2015). The average cost for legal
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advice for Pegasus is £350 per hour which is quite more. Some alternative methods for solving
problems in company are-
Collective Bargaining- In this method both the parties meet and discuss the matter with
each other. In this both parties want to maintain relationship with each other and there is no
involvement of court system or any legal agreement. It is less time consuming and no cost
effective.
Mediation- Mediators are appointed by both the parties and he has no relation with both
the parties. The Mediation is effective because it allows both the parties to vent out their feelings
and explore their grievances (Issa and Pick, 2015).
Arbitration- When the employees or both parties cannot resolve the dispute through face
to face negotiations or with the help of mediator (Kariyawasam and Low, 2014). In this process a
neutral person or panel can set and hear the facts of both parties and make the decision.
CONCLUSION
In this report, it is concluded that there are many sources of legal system in UK these
sources may affects the company business. Government play crucial role in making of business
laws. Government is responsible for giving rights to employees and employers for running the
business. Organisation and employee's must follow these rules and regulation which is
formulated by parliament. There are several laws imposed by government for employee's which
may include how employees are treated in company, their wage regulations, labour protection
and safety and healthy rules. To solve the disputes many alternative methods are described such
as arbitration, mediations etc.
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REFERENCES
Books and Journals
Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the
World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-
120.
Carlin, J.P., 2015. United States Assistance Attorney General for National Security John P.
Carlin Delivers Remarks at the American University Business Law Review 2014
Symposium. Am. U. Bus. L. Rev.4. pp.1.
Cleaveland, M.C., Dutcher, C. and Epps, K., 2015. Comparing Business Law in online and face-
to-face formats: A difference in student learning perception. Academy of Educational
Leadership Journal. 19(1). pp.123.
Harner, M.M. and Rhee, R.J., 2014. Deal Deconstructions, Case Studies, and Case Simulations:
Toward Practice Readiness with New Padagogies in Teaching Business and
Transactional Law. Am. U. Bus. L. Rev. 3. pp.81.
Issa, T. and Pick, D., 2015. Mixed methods research online: Problems and potential in business
ethics research. In Business Law and Ethics: Concepts, Methodologies, Tools, and
Applications (pp. 411-432). IGI Global.
Kariyawasam, K. and Low, H.Y., 2014. Teaching Business Law to Non-Law Students,
Culturally and Linguistically Diverse (" CaLD") Students, and Large Classes. Journal of
University Teaching and Learning Practice. 11(2). pp.9.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Online
Five Ways to Keep Disputes Out of Court. 1990. John R. Allison [Online]. Accessed through:
<https://hbr.org/1990/01/five-ways-to-keep-disputes-out-of-court>
Types of Business Organizations. 2017. Emily Neuherz [Online]. Accessed through:
<https://www.equitynet.com/blog/business-organization-types/>
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