Business Law Report: UK Laws, Contracts, and Organization Types

This report provides a detailed analysis of UK business law, relevant to Pegasus Logistics, a partnership firm. It begins by outlining the divisions and sources of law in the UK, including primary and secondary sources like precedents, statutes, and common law. The report then explains the law-making process in the UK Parliament. A significant portion focuses on employment and contract law, using the Pimlico Plumbers v Smith case as an example. It highlights the importance of understanding the status of workers and the implications of employment law. The report concludes by examining legal procedures for various types of business organizations, including public and private sectors, with considerations for setup, management, and funding, offering recommendations for legal advice.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different type division and sources of laws in U.K..........................................................3
P2 Law making process by government.................................................................................5
TASK2.............................................................................................................................................7
P3 employment law and contract law.....................................................................................7
TASK3.............................................................................................................................................8
P4: Legal procedure followed by the various types of organization......................................8
P5: Organisation is funded and managed.............................................................................10
TASK4...........................................................................................................................................11
P6 Recommendation of legal advice....................................................................................11
CONCLUSUION...........................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Much of business law addresses the various types of business structure. These laws are
related to the function and size of operation performed within the entity. Business laws are terms
of all related laws that guides companies to form and run its daily business activity. It includes
the establishment of general rules that govern business person to start, buy, control and sell
different type of business (Adachi, 2013). Pegasus is a logistic service provider in UK and trade
as a partnership firm that works for delivering goods order online through different customer.
In this project report, the division and sources of laws in UK help Pegasus to be familiar
with UK laws. Importance of employment and contract law that has impact upon business in
shown in this report. Report also shows various types of business organisation that are legally
formed, managed and funded.
TASK 1
P1 Different type division and sources of laws in U.K.
The UK has three individual legal systems such as England and Wales, Scotland and
Northern Ireland. There are high court and supreme court that resolve the different issue of
people and companies with all laws of UK. These large bodies are further divided in different
division that help in smooth functioning of operation and activity in London. The High court of
justice in London is formed by part court of appeal and crown court. This type of court are
responsible to deals with high level and values of important case and also have supervisory
power all other associate courts and judicature.
The high court has three basic divisions that are Queen's bench division, chancery
Division and the Family Division. Important function of each division is different as the deals
with type of cases within and in some cases these three division may interact together to have a
common solution (Division of law, 2017). The Queen Bench is the highest court that deals with
number of jurisdiction within some of commonwealth realms. Chancery division deals with
business law that is related to patents and register design, trust law, probate law and land law.
This division is important for companies as it develop certain rules and guidelines that guide
them to run operation within and outside boundaries. According to this division business law is
also known as commercial law or trade law that is considered to be the branch of civil law and
deals with the problems of both private and public companies. Due to chancery division Pegasus
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could develop certain rules and regulation that help them to manage and control its business
operation in UK and other part of world.
The sources of law are birth of laws, constricting rules that can modify any country to
rule their region. The sources of law can be divided into – Primary and Secondary. The Primary
sources consists of precedents, legislations and European law whereas the Secondary sources
are books, journals etc. There are various types of laws that are applicable in UK and some of
basic sources are described underneath:
Various sources of Laws:
Primary Sources -
Precedent: Judicial precedent are considering to be an important sources of law that
includes last decision to create specific kind of law for juries to refer back so that upcoming
cases can be controlled more effectively. These decisions are basically based on the state of
decision which means to stand through decided matter (Miller and Cross, 2012).
Statues: An established act is a type of document which has been approved by house of
parliaments. Is is also known as the result of primary legislation those are passed by parliament
form healthy debates with concern minister or parties. All kinds of laws those are enacted
through legislation have to be followed by companies that wants to operate in international
market.
European court: It is considered to be an independent and overriding sources for local
companies and legislation placed on these companies through the court of justice. There are
basic three major sources of EU laws such as primary, secondary and supplementary law that are
helpful for domestic matter. So in case of any problems or conflicts at national and European can
be easily overcome by EU laws.
Common Law: It is one of the most important body of law that are stated from the
effective decision taken by the judicial of court and related minister and are major part of laws of
various nations specially for those companies that have their branches outside country.
Legal system: One of the effective process that involve the of explanation and empower
different kind of laws. With the help of this sources specific roles and responsibilities are
increased in number of business activity that consist common, civil and religion laws.
Secondary Sources -
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Secondary sources are commentaries on law which act as persuasive authority while
talking about source of law. Some of the important secondary sources are – treatise, textbooks,
journals, periodicals, etc. These sources explain and analyse law but generally, does not have
binding authority of primary sources.
P2 Law making process by government.
In UK, the parliament is law making body for central as well as for legislative assembly.
The members of the Parliament develop a written document of proposal for law that is known as
“Bill”. For a bill to become a law it has to be approved by the members of both the Houses.
Major steps taken by parliament are described below:
Step 1 – First Reading: The process starts by introducing the title of the bill in the
chamber and then, the bill is available to the members of the parliament.
Step2 – Second Reading: The members debate on the key areas of the bill. After that, the
members vote on the bill and it is passed onto the next stage.
Step3 – Committee Stage: The MP's and peers then discuss the bill thoroughly and
amend it, if, required. In the end, votes are taken for the debated and amended provisions of the
bill.
Step4 – Report Stage: The bill with the changes is reported to the House and the members
can review the amended bill.
Step5 – Third Reading: In this stage the amended bill is voted in its finality as to, whether
the bill is accepted or rejected.
Step6 – Royal Assent: This is the last step of the law making process wherein the bill
after being passed by both the Houses is approved by the monarch, called the “Royal
Assent”.After the royal assent the bill becomes a Law.
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(Source: Process of making law, 2019)
Common law: It is the body of customary law that totally depended upon legal decision
and is incarnate in report of decided cases that have been administered by the common-law. This
law is applied in court of UK in a manner that is, it makes all judges to supply lawsuit on the
certain terms of ruling of the preceding cases in various different condition. Common law is one
of the legal system that help the Pegasus to run its business in effective manner as they manager
can be more specified to deal in certain condition learning from the older cases.
Statutory law: It is a law that is being written by a legislative body that is created by
elected legislators and other official minister. Judiciary has the power to interpret and enforce
statutory law in some condition but do not have the right to create statutory law. In general,
every legislation has the detail written statements of order that is provided by the parliament. In
the company’s different act are being implemented by the parliament that shows the functioning
of its operation.
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Ill
ustration 1: Role of government

TASK2
P3 employment law and contract law.
Case study: Pimlico plumber Vs Smith, 2008
Introduction
In this case, the employment status of Mr. Smith was in question, who was a plumber
working for Pimlico Plumber during 2005 to 2011. He stated that company had unfairly and
wrongfully dismissed his claims for holiday pay while making further unlawful deductions from
his wages after he had a heart attack. PP contested that Smith was not an employee of the
company rather he was self-employed. The Employment Tribunal decided that Mr. Smith was
not an employee to consider unlawful dismissal but he was considered as a worker for
deductions in wages (Pimlico Plumber v smith, 2008).
Judgement: The judges in this case decided that Smith was a plumber in PP who use to work
independently that was described in the contractual agreement between the parties which were
entered in 2005 and that was further replaced in 2009 which was a more detailed agreement.
But, self employee is always considered for the shorter period of time but here Mr. Smith was
working since very long for the company. Similarly, in the given problem Pegasus is introducing
new delivery vans in the company, so they require drivers to run these delivery vans, hence the
agreement has to be specifically clear on the status of the drivers.
Employment law is an area of law governing employer-employee
relationship. In general, it means that if a business has more than one worker then these business
are able to use employment law. Likewise, Pegasus bought new vans for delivery and hired a
number of drivers to run these vans. So, through employment law the company is trying to
develop a bond between the company and drivers so that if, there are any uncertainties arising
could be solved.
In accordance to Contract law Pegasus has stated the terms of agreement that the drivers
have to wear the company's uniform, Identity card which make them a part of company.
Conclusion
From this case it is concluded that, every company should follow contract and
employment laws so that employer – employee disputes does not arise. In Pegasus, the partners
have tried to comply with both the laws to fulfil the employment requirement and have also
stated the terms of contract to work more effectively.
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Status of Worker
The employment status is always consider by the employer and employee relationship.
Here, it is important that how organisation work on regular basis and how they are required to
work. Under this, employer is required to provide all the facilities which must be given to
employee and even it is much necessary that employee is working as per the criteria of employer
for the purpose of achieving the targets.
TASK3
P4: Legal procedure followed by the various types of organization
As per the mentioned case of Alex and Jay, their accountant has suggested to set up a
registered company. It has been analysed that there are various types of organization and each of
them used to follow various legal procedure during the time of set-up. There are basically three
types of business organization. Some of them are discussed below:
Public sector organization: These types of business sectors is made up or owned by
central as well as local government or public corporation. As, this company exists in their own
right and regulation. This means that the company’s overall finance is individually finance of
their members. Certain steps are required to be followed while establishing the company.
 It has to be at least two shareholders.
 Company issued shares to the public to a cost of at least £50,000.
 To be registered with company’s house.
 It has to be at least two directors- one must be an individual and each of them must be at
least 16 years of age (Dolzer and Schreuer, 2012).
 It would have a qualified company secretary.
Private sector organization: As per this company, they are operating privately in order
to make a profit with earning incurred from the overall sales of their goods and services. As per
the mentioned case of Alex and Jay, they need to go for the registration process of private sectors
organization. Both of them need to register “Pegasus” as a private limited company. The below
mentioned steps are required to be taken into account for the process of incorporating company
within the territory of United Kingdom(Macaulay, 2018) .
 A suitable company name.
 Address of the company.
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 For the operation of business, at least one directors and details of companies shares must
be determining accordingly.
 Specific detail analysis of the company shares and need at least one shareholders for the
investment purpose.
 To check SIC code which is responsible for determining what company is doing as their
core operation.
 Shareholders required to create companies and written rules as MOA and AOA as per the
company act 2006. After that, all this documents must be submitted to companies House.
Role Of Director in any of the organisation
 Directors are required to work within the power which has been given to them under the
act.
 They must try to avoid the conflicts which generally happens in the organisation. Should not accept personal benefit from the third party.
Legal Personality
It is the situation where person do gets the legal rights and duties within the certain legal
system for example: have the capacity to enter into the contract, have the option to sue and be
sued. It says that person have the take the action of the decision but it is more important that they
must be taken by considering the legal law.
Voluntary sectors organization: This particular business organization refers to one of the
primary sectors whose entire objectives is to create social implication rather than gains. It is
often said to be third sectors or not-for-profit organization. In order to make registration of the
voluntary sector, it essential to complete the online registration process on the Charity
commission website (Folsom and et. al., 2012). By providing all the essential data and
documentation the establishment process will be completed within 30 days’ time. Before
finishing the online form company need to collect all the vital documents and paper that they
need further. Such as:
 A copy of constitution or other legal paper
 Trustee declaration form
 Financial information
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 Other data.
P5: Organisation is funded and managed.
Funding is one of the important activity in an organisational context as it funds help in
smooth functioning of companies and their management also become effective. Funding is
defined as providing financial resources or cash form its own internal origin. There are different
funding streams from where a company may arrange funds to run its daily activity and avoid the
shortage such as loans, investor, share distribution etc. Different type of organisation need
different types of fund foe effective operation. The three type of organisation public, private and
voluntary acquire funds in different manner that is discussed below:
Public sector funded: It includes a compulsory source that government requires some or
all people to make the particular payments (Hayek, 2012). They are funded by legal bodies and
in some cases from their own trading profits that includes taxes, fees or transfer of money from
one level of government to another. For example: from federal to the state government. Some of
the common distinction are as follow:
 Direct taxes paid by household and companies to the government or public agencies such
as income tax, corporate tax etc.
 indirect tax that are paid by retailer or supplier the government in the form of sales tax,
excise tax etc.
It is observed that funding of these can be managed by different private entities such as
private insurers that manage various insurance scheme.
Private sector Funding: Most of the private sectors business are controlled and funded
by the individual businessmen and women that can be owned by group or people. Example,
Shareholders that tend to make investment in the company. The major sources of funding are
bank, various financier and different capital funds of individual (Hamilton, 2015).
Voluntary Funding: Voluntary organization used to retain funds from other parts of
voluntary sectors, national lottery and from income earn from other investments. It can be in the
form of donation that are provided by the private organization. Some of the common sources of
funds are
 individual donors
 earned income and
 religious institution
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 foundation and corporation.
TASK4
P6 Recommendation of legal advice
Employment law and contract law are the effective way through which disputes can be
settled down outside the courtroom. According to given case study, there is a conflict going on
between plumber and company regarding the employment status. With the help of this case
Pegasus can develop the effective working by bonding agreement between drivers so that such
disputes do not arise. Also, another alternate is available in this case is related with Alternative
Dispute Resolution. In this method dispute is to be solved with various ways which can provide
additional advantages because it takes very less time to resolve it. Under ADR process, third
party is appointed who takes the responsibility to manage each and every work so that dispute
can be sort out. There are three different ways under ADR and they are: Arbitration: It is one of the way through which dispute can be resolved very easily.
Appointed arbitrator have the option to declare decision of its own and even no one have
the option that they can raise question against their decisions. Negotiation: This is also one of the alternate which helps to bring the best of both party
to meet the term and condition of the contract so that better result can be obtained. Here,
parties have to negotiate on the topic due to which dispute has taken place between both
of them.
 Mediation: There are number of option available with the mediator through which
dispute can be solved out. Firstly, mediator try to understand the case and then after they
are required to delivery the best advices through which both party can clear out the issue
which has raise.
In the above case, the disputed party have the option to sort out their case by taking the
help of negotiation where both of them can be satisfied. Even fees will also be charged at
nominal value.
CONCLUSUION
In this project report it has been concluded that business law is one of the important legal
standard that is helpful to guide companies as well as individual parties to make right decision in
upcoming time. From the norms, different sources and role of government in law making is
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