Business Law Report: UK Business Law, Compliance, and Solutions

This report provides a comprehensive overview of UK business law, encompassing various aspects crucial for business operations. It begins by exploring the sources of law, including custom, legislation, delegated legislation, judicial decisions, European Law, and equity law, emphasizing the role of the government in lawmaking, including statutory and common law. The report then delves into the impact of company law on the incorporation of a private limited company, specifically addressing the implications for Sunrise Retails, including compliance requirements and the appointment of company secretaries and directors. Furthermore, it examines the influence of employment law and contract law on recruitment, selection, and employment terms, followed by an analysis of legal solutions for contract termination and redundancy procedures within the context of Sunset Ltd. The report also includes recommendations for Smart Looking Ltd's expansion outside the EU, considering different legal systems and frameworks, and concludes with an evaluation of the effectiveness of the proposed legal solutions. Overall, the report aims to provide a detailed understanding of business law in the UK and its practical implications for businesses.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Sources of law for starting up new organization..................................................................1
P2) Law of government in lawmaking and statutory and common law.....................................3
M1) Sources of law and laws for organization to comply with..................................................6
TASK 2............................................................................................................................................7
1 (P3) Company law impact on incorporation of Sunrise Retails...............................................7
2 (P3) Employment law's potential impact on recruitment and selection process of the new
employees....................................................................................................................................7
3 (P3) Impact of contract law on agreeing terms of employment with new employees.............8
M2) Potential impacts of regulations and standards...................................................................9
TASK 3............................................................................................................................................9
P4) Legal solutions for Sunset Ltd related to termination of contract of employees of White-
chapel branch and redundancy procedures.................................................................................9
P5) Justifications for using legal solutions and recommendations to managing directors of the
entity..........................................................................................................................................10
M3) Critical evaluation on impacts of legal solutions to business problems............................11
TASK 4..........................................................................................................................................11
P6) Recommendation of legal solutions based on different country's legal system and legal
framework.................................................................................................................................11
M4) Comparison and contrast the effectiveness of recommendations.....................................13
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

ILLUSTRATION INDEX
Illustration 1: Stages of new bill......................................................................................................5

INTRODUCTION
Business law comprises different rules and regulations including provisions for operating
business's activities. It includes legislation related to commencement, operations and liquidation
for company to be followed on effectively. The present report is based on understanding
different common and statutory laws for business and its operations. In this regard, different
sources of law to establish new entity and role of government in business operations to be
followed on are to be expressed through legal evidences. However, several laws impact on
incorporation of Sunrise retails for expansion in terms to recruit new employees for entity can
be introduced through this assignment. Including this, legal solutions for Sunset Ltd to
terminate branch and employment contract including its justifications are be presented. Along
with this, recommendation of enlargement of Smart Looking Ltd to establish new entity outside
EU can be expressed to be followed on and operating business activities effectively. Thus,
learners are able to understand several aspects of business laws in UK to operate activities
legally through this report.
TASK 1
P1) Sources of law for starting up new organization
There are different laws and legislation made in UK for protecting contract and operating
business activities. However, in terms of business entity and its operations, several provisions are
amended to start-up of new branch (Belinska, 2016). Therefore, sources of these laws for
establishing new company can be gained through following ways such as:- Custom:- It is one the oldest source of law that evolves social systems, traditions and
culture that is helpful for reducing conflicts and creating peaceful environment. For this
purpose, in ancient time, society and cast used to made rules related to businesses and
contract regarding its operations. It is useful for social awareness and rescue to the breach
of contract. However, customs are considered as rich sources of law in which state seeks
to binding rules towards contracting and following on rules presented in legislation
(Cheeseman and Garvey, 2014). Legislation:- It is a chief source of law for which government makes policy plans and
varieties of rules for business operations. In accordance to this, limited issuance of shares
from public, number of employees in different sectors as well minimum capital required
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to start up entity are presented. Including this, several rules and regulations are provided
for establishing organization to be followed on. Moreover, it is essential to prepare
memorandum of association and article of association therefore all details and
agreements related to company and its commencement is mentioned therefore it can be
secured legally (Cushway, 2014). Thus, approval from government of the country is
needed before establishing it and operating business activities. Hence, laws encompass in
legislation are required to be followed on for and contracting effectively. Delegated legislation:- It works for law making power of legislation provided by
government of country to be followed on legally. It is made because of lack of expertise
and enhanced demand and paucity of time. However, it is needed for executive of
appointed new executive to make organization's rules in consideration of this legislation
system (Diamanti and et.al., 2013). Thus, it is beneficial to create legislature of entity on
behalf of provided rules in regulations in delegated system.
 Judicial decisions:- On the basis of some cases, court makes rule on recommendation of
government and for solving out business issues through amendment made in different
sections as well rules to be followed on. In this regard, some decisions and legally
approved regulations are also followed on for business operations. However, it is
considered that all judicial decisions are not laws but approved rules are remains as law.
Thus, for commencing new entity, it is required for organization to made rules and
regulations according to business laws and government interferences (Fenwick and et.al.,
2014).
 European Law: Under this law, different rules are made for solving out civil and criminal
cases. Therefore, different legislation are amended under this law for protection of
country's people and taking action towards default party (Simonelli, 2016). However,
European Act is for presenting different laws regarding business operations and
protecting them efficiently.
 Equity law: This law is a source of legislation for setting up entity and operating its
activities. In this regard, different rules and regulations are provided in this law affect
business operations and considering equities of the company. Therefore, under this law,
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various rules and legislation are amended for which business operations are created
(Thomas, Rothschild and Donegan, 2015).
P2) Law of government in lawmaking and statutory and common law
In UK parliament, government prepares policy which is made up of different rules and
regulations for social awareness and operating business activities. On the basis of recent position
of government fund and resources as well political influence, decisions and regulations are made
for legacy and systematic management for business operations effectively (Frank and Glied,
2015). In accordance to this, law making is considered as a process for creating legislation
evolves different rules to be implemented for business operations approved legally. Thus, role of
government in lawmaking can be understood as below:- Management of government fund:- Decisions related to government funding as
investment for public welfare and gaining revenue are made through preparing policy
plans for country's effectiveness. However, economic stability and financial growth of
nation is possible through making laws and following them. Including this, controlling
over interferences of other countries and reducing fraud can be gained through preparing
policies. Thus, government fund is managed by lawmaking and following on made rules
for nation's development in different sectors (Harner and Rhee, 2014). For providing justice and protecting contract:- Government of the country plays crucial
role in nation's effectiveness by making safety rules and legislation to people, affects
social welfare. Therefore, justice for all individuals to reduce frauds is determined under
laws and legislation (Hatton, 2014).
 Legislation function: Government passes the law to represent citizen's interests, for
passing laws and monitoring actions effectively. However, government of UK approve or
reject the bill depends on the preliminary system of the country. Including this, for
reducing financial implications, it makes policy for country's welfare efficiently
(Cheeseman and Garvey, 2014). Therefore, government plays effective role in legislation
and law making for the country's effectiveness.
Stages of new bill
Bill refers as draft that is presented to parliament which is approved by government and it
becomes law. Therefore, after government's approval only, it becomes law and remain valid
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remain useful for country's effectiveness and public welfare (Diamanti and et.al., 2013).
However, stages of new bill can be understood as:
 Giving of notice: At first, bill as a notice is made in accordance to social justice and
making laws for their welfare.
 Printing of bill: Afterwards, this bill is printed for forward to parliament and getting
government's approval.
 Presentation of bill: In this stage, bill is passed to parliament and considering factors for
country and people welfare.
 First and second reading: Passed bill is read on which further stages are implemented.
After this, process is followed on for law making. It includes some terms and conditions
in respect of commitments (Frank and Glied, 2015).
 Reporting of bill (In case of committed): If second reading of bill is committed then it is
reported for legislation and make as rule.
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Illustration 1: Stages of new bill
(Source: Process for new bill, 2016).

 Consideration of bill and third reading: In this process, bill is considered, government
approves the bill which goes for House of Lords to make it a law.
 Sent to House of Lords: In the end, bill which is passed and approved by government
become law and applied for justice and protecting from frauds.
However, in the form of notice, this bill is passed to parliament for government's approval.
Statutory and common laws for business operations:- Statutory laws:- Provisions made by approval of both government and parliament of
country considers as statutory law. In this regard, rules and regulations remains valid
after getting statutory authority by court and government of the country. For example;
preparing budget and changes in income tax provisions are known as statutory laws. It
affects market system and different sectors of the nation influences social and monetary
position for public welfare (Jones and Sufrin, 2016).
 Common laws:- Rules and regulations set by court only for solving out any issue in
context of public welfare comes under common laws of UK legislation. However,
approval for any authority and justification for any case is solved out in hand of court
only through using common law (Kadushin and Harkness, 2014). In this regard, these
kinds of cases are solved in hand of judges at their level remains helpful for social
welfare and nation's effectiveness by following on set rules and regulations.
As bill is passed by government, it becomes law and applied in justice courts affect social justice
and country's efficiency. However, all rules and regulations are applied for business operations
and protecting country's people from frauds. Therefore, civil and criminal cases are solved out as
well different laws are implemented for social justice effectively (Hatton, 2014).
M1) Sources of law and laws for organization to comply with
For establishment of new entity and regarding business operations, legal laws are
amended in UK. For example; common law, judicial decisions and different other factors for
government affect business operations and in consideration of public welfare and employees'
protection. However, sources for laws and comply with organization are determined for solving
out civil and criminal cases (Jones and Sufrin, 2016). Including this, different rules and
regulations are amended for the business operations.
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TASK 2
1 (P3) Company law impact on incorporation of Sunrise Retails
As per the given case scenario, it is recognized that Sunrise Ltd is planning to expand its
business entity through converting sole trader into private limited company. Including this, it
also plans to recruit 30 new staffs for different positions with directors and managers of different
departments (Ladkin and Buhalis, 2016). For expansion of entity, rules provided in company law
are prepared to be followed on. Therefore, impact of company law and several rules made to be
followed for enlargement of Sunrise Ltd can describe as below:- Required to submit annual financial report to company's house:- For Sunrise Ltd, it is
essential to submit financial report of organization to Company's House of UK including
memorandum of association and article of association that shows agreement and different
terms as well conditions regarding business operations. However, after getting approval
from company's house sole trader profile can be converted into private Ltd. Appointment of company secretary:- It is legal rule for any sole trader to change form
by selecting company's secretary who keep on eye for business operations also provides
suggestions (Parker and et.al., 2014). Including this, it is rule for private Ltd company to
appoint company secretary and directors to manage all operations and making decisions
for them. Therefore, by selecting and electing company secretory and director,
organization can change from sole trader to private Ltd legally.
 Duty to manage company's resources and fund for enlargement:- Sunrise Ltd can
expand its entity by managing company's resources and fund adequately. It is legal
responsibility to be following on all rules thereby proper expansion of entity can
achieved. Including this, organization needs to be liable for paying fund to promising
regarding legal liability as showing off its resources and adequate fund for improvement
to Company House of the country (Simonelli, 2016).
2 (P3) Employment law's potential impact on recruitment and selection process of the new
employees
Sunrise Ltd is planning for recruiting 30 staff with expansion of entity. For this purpose,
it must follow on some rules and regulations to recruit and select employees can describe as
follows:-
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 The Equality Act, 2010:- Under this law, different provisions including rules are
provided for recruiting employees that is helpful to prevent biasses. It aims to provide
equal rights and salary to employees having same positions for job performance. There
will no discrimination allow regarding salary, provident fund, insurance and so on
(Thomas, Rothschild and Donegan, 2015). Thus, this legal rule is required to be followed
for recruitment and selection of new staff for the organization.
 The immigration, Asylum and Nationality Act, 2006:- This provision made for the
purpose of preventing illegal migrant working in the country. However, rules are
followed since 29th February, 2008. In this regard, if any of the business breach the
agreement then it will be liable to pay £ 10,000 for unethical worker. It is useful for
preventing illegal issues and protecting from fraud regarding business and its operations.
 Equality and Human Rights Commission (EHRC):- It is established on 1st October,
2007 for providing equal rights to all employees according to their positions. However,
equality legislation on gender, social justice and taking action against illegally
performance is included in this act. Thus, it is liable to enhance legal power and actioning
towards equal justice to individual employee of the organization (Belinska, 2016).
Thus, above mentioned rules amended in acts are required to be followed on as well
agreed for recruiting and selecting new employees for expansion of Sunrise Ltd. It will be useful
for following proper evidence and preventing frauds as well providing justice effectively.
3 (P3) Impact of contract law on agreeing terms of employment with new employees
There are different rules and regulations made for contracting employment amended act
can be expressed as:- The labour contract law:- According to this law, labour relationship contract should be
mentioned in written, fixed form for employment and recruiting new employees for the
organization. In this regard, legislation related to agreement of hours, salary, overtime
payment should be written for contracting and fulfilling all made promises. Along with
this, working conditions, probationary period, training and all details should be
mentioned in agreement (Cheeseman and Garvey, 2014). However, legal contracts
related to promise for social security and workers' welfare are essential to be presented
for effectiveness of entity.
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 The law on Mediation and Arbitration of Labour Disputes:- It is made for creating
harmony and friendly environment among employees and at workplace for reducing
disputes. It is good for their welfare and providing services according to their
requirements. Including this, it is valuable to prevent discrimination and reducing
emerged difficulties in employment regarding providing equality and equal wages to
each employee having similar positions.
Hence, it is essential for Sunrise Ltd to following on all above mentioned rules and
regulations to recruit new employees (Cushway, 2014). It is interlinked with maintaining good
reputation of organization and building up trust of workers towards legacy for business
operations.
M2) Potential impacts of regulations and standards
Impact of contract in terms of employment with new employees, different rules are made
for their protection including insurance, salary and others. Therefore, these regulations impact on
business operations and taking care of employees as well. However, legislation are followed on
providing facilities and regulating the business operations (Thomas, Rothschild and Donegan,
2015).
TASK 3
P4) Legal solutions for Sunset Ltd related to termination of contract of employees of White-
chapel branch and redundancy procedures
Sunset Ltd is a mobile phone provider company of London which has several branches
across UK and at global level. It is producing services for last 10 years effectively and has good
reputation in market. But, there is financial loss for last 3 years in its branch named White-
chapel. However, managing director of company plans to wind up this branch in upcoming time
(Diamanti and et.al., 2013). Therefore, legal rules and regulations for branch and employment
termination of contract can be expressed as below:- pension and notice provision:- Under section 1, it is defined that for termination of
employees, it is essential for organization to provide notice in writing before wind up of
the entity with disclosing the reasons behind it. However, all pension schemes, salary,
incentive are required to be cleared and provided to them (Fenwick and et.al., 2014). .
Thus, giving notice regarding employment termination contract before closing up of
company is required.
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