Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Different sources of UK law.................................................................................................1 P2. Role of government in law-making and application of common and justice law................2 TASK 2............................................................................................................................................3 P3. Using specific examples on the illustration of potential impact of company, employment and contract law upon a business................................................................................................3 TASK 3............................................................................................................................................5 P4. Different types of business organizations that are legally formed........................................5 P5. Funding and management of the business types mentioned above......................................6 TASK 4...........................................................................................................................................7 P6. Different types of legal solution for resolving conflicts by using examples followed by recommendation..........................................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES...............................................................................................................................9 .........................................................................................................................................................9
INTRODUCTION Business law provides provisions that governs all the activities of an organization to enable it run smoothly. Formation, management, funding, contracts, dissolution etc. all are covered in commercial law. It is also called mercantile law which is divided into two areas viz. Laws regulating company, partnership, bankruptcy ad agency and second being law implied on contracts (Baden-Fuller and Mangematin, 2013). The report narrate sources of UK law, role of governmentinlawmaking,applicationofcommonandstatutorylawinjusticecourts. Furthermore, impact of company, employment and contract law upon a business, different types of business organizations, their funds and management. Along with this, legal solutions to conflicts together with recommendation. TASK 1 P1. Different sources of UK law English legal system operates on the doctrine of judicial precedents. It has an unwritten constitution which provides laws for the rights of citizens. The Westminster Parliament has the supreme authority to pass a law or make amendments, if required. Further, power to repeal a Act is also with parliament.The legal system consist of common, statutory, civil, criminal, public and private law. It is considered as one of the complex legal systems as compared to other countries. To obtain better knowledge about legal provisions, various sources can be used which are mentioned in primary and secondary sources which are as follows: Primary sources:The information in such source are contained in original form which have not been changed in any way. These are the most reliable fresh and first hand data. Case law:The reports of various judicial decisions are called case law. In UK, judges pass judgement of a case by relying and on the basis of previous decisions. These are the prime sources which contain issues, facts and legal principles along with decree or order so made. The doctrine of judicial precedents are applied in courts whereby the decisions of superior courts can not be challenged by lower courts (Besley, 2015). Legislation:UK government has passed laws for the written portion of constitution. These govern rights of people living in that country. The highest authority to pass, enact, revoke and make amendments in various laws. These are superior to all other sources, hence, can not be questioned in courts. 1
Secondary sources:These are the information that been used before. Authors and scholars use these sources to interpret further in their own piece of writing. Legal encyclopaedias:Hulsbury's laws of England and Wales is the authentic and famous information source which are used for understanding various legal provisions. It is arranged in an alphabetical manner in which one can find meaning, effective date, provision, their applicability together with legal principles and case law. Parliamentary publications:The debates held between members of House of Lords and house of commons are presented in such publication (Chen-Wishart, 2012). Their speeches usually highlightmajor changes and implementation of rules etc. which can be taken into account. Non-parliamentary publication:These are the reports and consultation papers from various government department and agencies. One can access these from official site of government. Law commission:It is an independent body constituted by government in the year 1965 to oversee existing laws in UK and make recommendation about modifications in the needed areas. The committee consult with wider public and other interested parties and experts according to area of law. The report is then complied and presented to Lord Chancellor. Law journals:It contains huge amount of information which may or may not be specific. The arguments of various key leaders, and ministers are its base. Further, these are helpful for practitioners to update their knowledge of law. P2. Role of government in law-making and application of common and justice law The UK government has been assigned some responsibilities which are important in law making process. The policies, plans and laws should be enacted in a way to protect citizens. Its role is divided into three branches viz. Executive, legislative and judiciary areas. Each role is important has their own authority to act. A detailed explanation of these role have been discussed below:Executive role:This branch is responsible for administrating the day to day work of state. It make andenforce the law within the state for maintaining law and order (Clarkson, Miller and Cross, 2014). Further, they have the authority to pass executive orders or decrees. The members that executive branch consist are Queen, Prime minister, 2
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
defence minister and many other ministers. The laws passed by legislative body are enforced by under this role. Legislative role:The government formulate policies and laws that are necessary for to govern a country. It includes both the houses of parliament viz. House of commons and House of Lords. The primary responsibility is to create laws or amend existing laws. Also, there is a specific process through which a bill is passed which becomes act on receiving the royal assent. Also, it a great role to play in reversing or overriding president's veto if majority of approvals of both houses have been obtained (Clough and et. al., 2015).Judiciary role:This role is about monitoring and review the existing laws to assess the level of legal provisions being abide by citizens of UK. The government from various courts operating at higher and lower level. These are important to punish the one who do not follow legislations. The courts conduct sessions and hearing on case laws so that appropriate decisions can be passed which will form base for deciding future case law. Application of common and statutory laws to justice courts Common lawrefers to the judge made law through courts. It is also known as case precedent. No new statue is developed for applying in a case. The decisions that have been passed forms the basis for future lawsuit, provided, situation must be similar. The decisions made by inferior courts follow judgements of higher courts. It can be modified easily through statutory law. Statutory lawis a written law enacted by legislature body or through a single legislature in extreme and special cases. It is completely opposite to common law. These are formed with an objective to be imposed throughout UK. These have already been enacted and need to applied in a specific case. These are actually the acts that should be complied with. It can be modified only by passing as new statue (Emir, 2018). 3
TASK 2 P3. Using specific examples on the illustration of potential impact of company, employment and contract law upon a business Abusinessentityshouldconductbusinesswithinlegalboundariesbyfollowing provisions of legislation that are applicable on it. Further, it provide a legal base on which any breach or contravention can be challenged and legal remedy can be sought. The key legislation that can be impact the various types of organizations are as follows: Company law:Companies in UK must follow Companies Act, 2006 which governs formation, activities, appointment and removal of directors, remuneration of key people, sharecapital,debenture,dissolutionandmanymore(FrankandBix,2017).No corporation can be formed without complying with this Act. Further, it a separate legal entity that exist in the eyes of law. Furthermore,the role, duties and responsibilities of directorsandshareholdershavealsobeenprovided.Forexample,companyhas fraudulently raised funds from investors. In such case, the company will be wound up and dissolved. A company operating by complying with all the provisions help in avoiding legal consequences which in turn saves a company from huge financial loss. Employmentlaw:Thelawsareforprotectingemployeesfromanykindof discrimination and unfair treatment. Workforce are the key stakeholder because of them an organization accomplish their goals and objectives, hence, it is important to provide a safeandhealthyworkingenvironmentandconditions.EmploymentAct,2002is applicable on all the business entity. It governs minimum payment of salary, paid leaves, working hours, incentives, dismissal, etc. for example, an employee is being harassed by his manager, then he can apply to court by stating facts and issues along with relevant evidence to seek legal action against the manager. An employee prefer to work in an entity that abide the Employment Act, 2002 in true spirit and letter (Freedland and et. al., 2016). Contract law:There is no specific act for governing contracts made in organizations. A contract is an agreement in the form of offer which is accepted by other party. Further, it involves valuable consideration and enforceability by law. A seller and buyer enters into a contract for further business transactions. There are specific terms and conditions that are put by both the parties for timely completion. In UK, all the contracts are governed 4
through Sale and Supply of Goods Act, 1994. for example, two parties have entered into a contract for supplying raw material on credit. The buyer failed to make the payment within time mentioned in contract. The seller can apply for a lawsuit in the court for a specific legal action to make him bound to pay the amount along with interest. TASK 3 P4. Different types of business organizations that are legally formed An individual can carry business activities by forming any of the types that are available and suitable by looking after the pros and cons of each of forms. The type has a huge influence on the working of a business. There are many types of business entity some of them have been discussed hereunder: Company:It is the most preferred business type due to its attractive features. It is an artificial person created in the eyes of law. It has separate legal identity from its members along with perpetual succession (Grenig, 2014). Furthermore, it has right to sue or be sued and buy properties distinct from its shareholders. The company can be wound only by laws and no person has the capacity to dissolve it. It is usually limited by shares or guarantee and in some case, can be unlimited. The shareholders have limited liability up to the unpaid nominal amount on the shares held by them. Every company is required to be registered. Sole proprietorship:It is an entity formed and operated by a single person, who is know as sole trader or sole proprietor. It is very easy top form, also, the set up cost is less. There is no legal entity also, no requirement of registering the business. Owner has the absolute authority and decision making power. The profits and losses are not shared with any other member. Further, a business at small level generally form this business. Partnership:It is an association of two or more persons formed for a lawful purpose with a view to make profit. Partners execute a partnership deed in which all terms are mentioned along with profit share ratio. However, some deeds may not have this ratio in such scenario the losses and profits have to be divided equally. The partners are held liable jointly and severally for the unpaid debts and other liabilities of the firm (Newmark and Hill, 2014.). However, creditors do not have right to ask the partners to pay unpaid debts. It is easy to create and dissolve. There are more fund raising options are available 5
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
as compared to sole proprietorship. The decision making powers are with all the partners and it is compulsory to have consent of each such partners to make decisions or to enter into a contract. Limited Liability Partnership (LLP):It is an association of persons in which some or all partners have limited liabilities. It is a hybrid form of partnership and company. Each partner is liable for their own act and nothing can make them liable for the acts of other partner. Some partners may havelimited liabilitiesjust like shareholdershave in companies. The management is done by the partners directly. There is no dilution in the decision making power. This form is suitable for forming LLP by professionals like company secretaries, advocates etc. It is easy to form and the set up cost is not much. Along with this,. The taxation system is different as compared to corporations (Nolan- Haley, 2012). P5. Funding and management of the business types mentioned above Funds are necessary to continue business activities and management is vital for effective implementation of various policies and procedures. Every organization needs financial resources and efficient people to control and manage the transactions, contracts and all dealings within an organization. A detail description of funding and management of different types of entities have been mentioned below: Company:A company is a registered entity which has separate identity from its members. It is artificial person which is a creation of laws, hence, it does not have brains or hands to apply its own mind and do work. Therefore, it appoints some key people known as directors who have the responsibilities to manage the whole company. The directors also acts its trustees for the money and properties. Furthermore, it has wider options to raise capital in order to infuse financial resources for carrying out its activities. However, share capital and debentures are two preferred options through which funds are gathered (Raz, 2013). Apart from this, bank loans, retained earnings, borrowings, personal savings etc. Sole proprietorship:It is managed and operated by a single person who is called sole trader. The decisions and other powers are with the sole proprietor only. Usually, owner hire his family members or other people to help him in managing the business. The contracts are formed by the owner, together with this, profits and loss are not shared. 6
Investors do not show interest in investing in sole proprietorship because it does not have a legal identity. Hence, the limited options that are available to it are own capital and bank loan. Partnership:A partnership firm have partners who manage and control the activities. Each partner can be held liable jointly and severally for the negligence or other misconduct. Also, the liabilities of firm should be paid by its partners. The firm has greateroptionstoraisecapitalascomparedtosoleproprietorship.Theseare crowdfunding, retained earnings, and owner's capital (Sheikh, 2013). LLP:It is managed by its partners but they have limited liabilities. The decision making power is with every partner, however, a decision is considered final only when it has received its approval. It has wider options to raise funds such as bank loan, venture capital, personal savings, retained earnings etc. TASK 4 P6. Different types of legal solution for resolving conflicts by using examples followed by recommendation 1.Negotiation:It is a voluntary method of resolving disputes and conflicts whereby a communication is held between parties to dispute. The parties put their arguments forward in order to reach a conclusion. It may solve existing or fresh conflict.It the first preferred choice for dispute resolution. Every negotiation is different and unique in terms of subject matter, number of participants and process undertaken. There are many case in which negotiation can provide an effective way to resolve conflicts such as mortgage foreclosure settlement, debt problems, neglected acts etc. In companies, it can be applied to negotiate with creditors, in case of merger or amalgamation (Yingxiu, 2014). 2.Alternate dispute resolution (ADR):It is an amicable process of settling disputes without filing litigation. It is an out of the court settlement which is inexpensive and speedy process. It has various methods such as mediation, arbitration and many more. Whereby, arbitration is an amicable method of resolving conflicts under which an arbitrator is appointed to her both parties and examine evidence made available by them. He applies best of his knowledge to judge them and make appropriate judgement. Furthermore, he isan independentperson chosen by partiesto dispute, thus, his 7
judgement can be trusted. The arbitration award so passed is final and binding on the parties. On the other hand, in mediation a third common party is hire to assist two or more participants in conflict resolution for reaching a common goal. It a very easy, simple and cost-effective method where mediator tries to help with communication in so that the matter can be resolved in an amicable manner. Further, various negotiation techniques are applied and parties have absolute control. However, the decision made by mediator is not of binding nature. 3.Litigation:It is a method in which conflicts are resolved in the courts. The process involves initiation of a case to pass an order or to enforce a claim. There are two parties viz. Petitioner and defendant(Zander, 2015).Litigation is considered the last option and used in extreme case such as murder, rape etc. Further, appeals are also included in this, whereby an aggrieved party may file an appeal in tribunal against the decree so passed. It is a lengthy and expensive method. For example, a person has been charged fro stabbing the neck of his friend with knife. This case can not be resolved with ADR or negotiation. A proper punishment should be provided to the culprit. The appropriate method is ADR which can be applied in every case for settling the case in an inexpensive manner. Basically, arbitration is used fro deciding the case in an expeditious way. CONCLUSION From the above report, it has been concluded that legal system consist of various legislations that must be followed by individual as well as organizations. Every Act has certain motive for which it has been enacted. An entity is required to abide by applicable legislation so that no breach or contravention in the provisions can be made. Furthermore, there are various types of business organization which can be selected for starting a business, however, their advantages and disadvantages are necessary to considered. Along with this, the legal methods for resolving conflicts should be analysed and applied according to the nature of dispute. 8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
REFERENCES Books and Journals: Baden-Fuller, C. and Mangematin, V., 2013. Business models: A challenging agenda.Strategic Organization. 11(4). pp.418-427. 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. Chen-Wishart, M., 2012.Contract law. Oxford University Press. Clarkson, K., Miller, R. and Cross, F., 2014.Business Law: Texts and Cases. Nelson Education. Clough and et. al., 2015.Construction contracting: A practical guide to company management. John Wiley & Sons. Emir, A., 2018.Selwyn's law of employment. Oxford University Press. Frank, J. and Bix, B.H., 2017.Law and the modern mind. Routledge. Freedland and et. al., 2016.The contract of employment. Oxford University Press. Grenig, J.E., 2014. After the Arbitration Award: Not Always Final and Binding.Marq. Sports L. Rev. 25. p.65. Newmark, C. and Hill, R., 2014. Can a mediated settlement become an enforceable arbitration award?.Arbitration International. 16(1). pp.81-88. Nolan-Haley, J., 2012. Mediation: The new arbitration.Harv. Negot. L. Rev. 17.p.61. Raz, J., 2013. Legal positivism and the sources of law.Arguing About Law,117. Sheikh, S., 2013.A guide to the Companies Act 2006. Routledge-Cavendish. Yingxiu, L., 2014. Judicial Solution to Conflicts of Rights [J].Chinese Journal of Law,2. Zander, M., 2015.The law-making process. Bloomsbury Publishing. 9