Alternative Dispute Resolution: Advantages and Processes

This assignment discusses the importance of following business law and highlights key points about sources of laws and division of law. It also provides legal advice for businesses, focusing on the benefits and processes of alternative dispute resolution (ADR). ADR is a faster and less expensive approach to resolving disputes compared to litigation. It allows parties to present their perspectives, is more negotiable, and has a greater chance of compliance due to party participation. The confidential nature of ADR also helps protect goodwill and avoid conflict in ongoing relationships.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Division of law in UK ......................................................................................................1
SOURCES OF LAW IN UK.............................................................................................2
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................7
TASK 4............................................................................................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
In every business organisation various laws and legislations are applicable in its
operations. All these are necessary for ensuring that firm comply with all legal requirements and
can avoid legal prosecutions. In the present report a discussion related with division and sources
of law in UK is done for company Pegasus. Along with this case of Pimlico Plumbers V Smith
2008 and its relevance with Pegasus is done related with employment law. Further, registration
of company, different step involved in it and role of directors in a business is presented. For
resolving disputes advice is given to the entity and forms of alternative dispute resolution are
suggested to management for reducing the litigation cost.
TASK 1
Division of law in UK
CRIMINAL LAW
Terminology: Criminal laws are that which is associated with any kind of crime. Most criminal
law is established by statute, which is to say that the laws are enacted by a legislature. (ALIX
ADAMS law business studies, pp. 21)
Types of offences: These can include crimes, such as, robbery, threatening or harming someone,
etc.(ALIX ADAMS law business studies, pp. 21)
Elements of offences: There are various elements of offences in criminal laws, such as,
 Mens rea (Mental state): This crime generally happens due to the mental state of the
criminal. It is the mental intention (mental fault), or the defendant's state of mind at the
time of the offense
 Actus rea (Conduct): In this type of crime it requires a reason behind it.
 Concurrence: this process includes both the element while conducting a crime, i.e., means
rea and actus rea, respectively.
 Causation: This includes all the crimes in which actual is present, such as, homicide
requires a killing, aggravated battery requires serious bodily injury, etc.(ALIX ADAMS
law business studies, pp. 21)
Criminal courts: There are various criminal courts in which all criminal cases are registered,
such as, (ALIX ADAMS law business studies, pp. 21)
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 Magistrates' courts: All criminal cases start in a magistrates’ court. In this court cases
are heard by two ways, i.e., by 2 or 3 magistrates or by a district judge. There is not a jury
in a magistrates’ court. Various cases are handled in this court, for example, minor
criminal case, drug offense, etc.(ALIX ADAMS law business studies, pp. 21)
 Crown Court: In this court, all the serious crimes are passed by the Magistrates' court to
this. It deals with cases like, rape, murder, robbery, etc. All the offense are known as
indictable offences.(ALIX ADAMS law business studies, pp. 21)
 Youth Courts: A youth court is a special type of magistrates’ court for people aged
between 10 and 17. It has 3 magistrates and a district judge as well. These courts are less
formal than adult courts in comparison. They deal with offense, like, theft, anti social
behaviour, etc.(ALIX ADAMS law business studies, pp. 21)
CIVIL LAW
Terminology: Civil law is a branch of the law which deals with law relating to civil wrongs and
quasi-contracts is part of the civil law, as is law of property. It is often suggested that civil
proceedings are taken for the purpose of obtaining compensation for injury, and may thus be
distinguished from criminal proceedings, whose purpose is to inflict punishment.(ALIX ADAMS
law business studies, pp. 21)
Types of civil law:
Civil courts: Civil court is a government institution that settles disputes between two or more
entities. There are various civil court sin UK law system, such as, The Supreme Court of UK:
This is the higher most body of civil judiciary in the United Kingdom. Other than this they have,
The Court of Appeal, The High Court, Country Courts, The Tribunal, etc. (ALIX ADAMS law
business studies, pp. 21)
SOURCES OF LAW IN UK
There are various sources which can be identified as a source of law in UK, such as:
Customs or common law: This can be defined as sources of law as general believes and values
of public belonging to a particular religion or group are sometimes too significant so to protect
them or to give them legality law are formed on basis of those beliefs and values (ALIX
ADAMS law business studies, pp. 31)
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European Union Law: As UK is a member of European Union (EU), it becomes mandatory for
them to follow the EU laws as well (ALIX ADAMS law business studies, pp. 31)
Legislation: These are the laws which is designed or created by the legislature respectively.
Most crucial legislation is the Act of Parliament. The UK Parliament consists of the House of
Commons and the House of Lords. This consist of approx. 800 person in which nearly 600 are
appointed by the Queen (ALIX ADAMS law business studies, pp. 33)
Problems associated with system of UK
There are various problems which can arise in the UK law, respectively. Such as,
The United Kingdom does not have a codified constitution, which means their law in not in
written format (ALIX ADAMS law business studies, pp. 32)
Establishment of Act of Parliament
It is a type of primary legislation which is passed by the Parliament of United Kingdom.
It is also known as primary legislation, are statutes which is basically passed by a parliament,
i.e., legislature (UK- Parliament, 2018).
House Of Lords: The House of Lords of the United Kingdom, also known as the House of
Peers, is the upper house of the Parliament of the United Kingdom (ALIX ADAMS law business
studies, pp. 38)
House Of Commons: It includes 650 Members of Parliament (MPs) to represent their interests
and concerns in the House of Commons. MPs consider and propose new laws and can audit
government policies by asking ministers questions about current issues either in the Commons
Chamber or in Committees (ALIX ADAMS law business studies, pp. 38).
TASK 2
1. Brief Introduction (Pimlico Plumbers V Smith 2008)
In the case of Pegasus (P), this company was set up by in 2014 by Jay and Alex. They
stared as a partnership business and conduct their business of delivering goods that are ordered
online. Both Jay and Alex are from Ashford, Kent. Jay had discovered that the area was badly
served by delivery companies. The have discovered that 2013 Amazon had submitted a planning
application for large depot outside Ashford which was later approved in 2015. Amazon is now a
major customer of Pegasus. The business has expanded an P now have 35 delivery vans driven
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by operatives, 20 other workers are involved in loading and processing on line orders. Have
plans for further expansion.
With the reference of case Pimlico Plumbers V Smith 2008, which has the same situation.
This case has helped in understanding the significant effect on the way workers are designated in
the organization. With the help of this case, advice can be given in this case (Pimlico Plumbers V
Smith 2008).
In this case, drivers hire the vans of Pegasus and are entitled to a certain percentage of
their delivery charges. This means that they have entered into a legal contract with the Pegasus.
In this contract, Drivers has a legal right to substitute drivers if they want but on some terms and
conditions only, such as they have to obtain permission from Pegasus. As mention in the Pimlico
Plumbers V Smith 2008 case, same Smith was appointed as self employer but when he fell sick
and registered a case against the company by saying that he was employed there. Mr Smith
brought claims for unfair dismissal, wrongful dismissal, sick pay, holiday pay, arrears of pay and
disability discrimination. The Employment Tribunal found that he was not an employee of
Pimlico Plumbers and a number of his claims were dismissed as he was self employed in Pimlico
Plumbers (Pimlico Plumbers Ltd and another (Appellants) v Smith (Respondent), 2018).
With the help of the findings from this Pimlico Plumbers V Smith 2008 case, it can be
advised to the drivers that they have to follow all the terms and conditions that were mentioned
in the contract. In this case, drivers have to follow all the regulation that is made for them, such
as, they have to wear Pegasus uniform in the working hours as they are working for them. A
tracker is also attached to their van to track their route. According to the contract which is made
between the drivers and Pegasus (P), they also have to carry their identity cards as well. Pegasus
has legal rights to monitors their whole process in order to ensure that they are working properly
and in legal manner as well (Pimlico Plumbers V Smith 2008 ). The contract which was made
drafted some years ago, also have some terms like, gross misconduct or wages, etc. Gross
misconduct is a process in which, on the part of an employee, which is so bad that it destroys the
employer or employee relationship in the organization and initiate instant dismissal of them
without giving them prior notice or pay in lieu of notice. To avoid this situation, drivers have to
work correctly without any misconduct.
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Employment Right Act 1996 (ERA1996)
Employee s.230(1): According to this act, employee is an individual who enters into a wotk
through a contract of employment.
Worker s.230 (3) a: As per ERA1996, workers are those who has entered into or works under a
contract of employment,
Self- employed: It is that situation in which an individual works for himself instead of working
for an employer in an organization that pays a salary or a wage.
 Employment Status (Employment status checklist, 2018)
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Conclusion: From the case Pimlico Plumbers V Smith 2008, Pegasus and drivers are suggested
to work in legal manner as this will help them to work properly. It is clear that from this case that
following all the legal requirement is very important in order to perform in legal manner.
TASK 3
Alex and Jay has been advised to set up a registered company by their accountant. To
start this, it is very important to understand the type of business organization and nature of
registered company first.
Types of business organization
There are various types of business organization which can be opted by Alex and Jay,
such as,
 Sole Trader: These are those type of business organization in which there is only one
owner has the authority. There is no strict rule for them to disclose their privacy. They
have no personal financial protection (ALIX ADAMS law business studies Ninth edition,
pp. 12)
 Partnership: In this type of business, there is a partnership between two or more
individual. They work as partners in order to achieve their targets (ALIX ADAMS law
business studies Ninth edition, pp. 12)
 Registered private company: These are companies who are registered and are operating
their business private. They have many shareholders which works with them (ALIX
ADAMS law business studies Ninth edition, pp. 13)
 Registered public company: These are companies who are registered and are operating
their business public. They have to disclose their financial and commercial information to
public. They have different boards of members who are responsible in operating the
whole business (ALIX ADAMS law business studies Ninth edition, pp.13)
Explain the nature of register company
Nature of Register Company: From assessment it has identified that registered
companies may be either public or private. Hence, legal requirements pertaining to the public
and private companies are as follows:
Basis of difference on the Public company Private company
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basis of nature
Name PLC LTd
Share capital £50000, ¼ paid up no minimum capital
Minimum members 2 1
In the context of registered company, referring the case of Salomon v A Salomon & Co
Ltd it can be presented that creditors of an insolvent company are not in position to make sue on
company’s shareholders for paying outstanding debt.
Steps pertaining to the setup of a company
As per the Companies Act (2006), for setting up a limited company one needs to comply
with the following steps such as: Selection of company’s type: At the very first step, concerned authority or individual
needs to select the type of company out of two such as public and private limited
(Starting a company, 2018). Determining company’s name: Once company name has been selected thereafter one
should focus on determining company’s name as well as its address (Set up a private
limited company, 2018). Appointment of directors and company secretary: In this, proposed firm requires to
appoint directors as well as secretary. Hence, as per the law business unit must have at
least one director (Set up a private limited company, 2018). Shares and shareholders: On the basis of legal aspects business entity needs to mention
details about company’s shares while registering the firm. Further, Companies Act
present that proposed firm has at least one shareholder at the time of registration (Set up a
private limited company, 2018).
 Memorandum and articles of association: This stage entails that for setting up new
company consensus of shareholders in relation to company’s creation is required.
Further, such memorandum and article of association contains rules regarding business
operations (Set up a private limited company, 2018)
 Company registration: By complying with all the above depicted and lawful aspects
business entity can register firm legally.
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Role of directors
There is an important role of director in a company as it helps in managing their work
effectively. The directors of company are in charge of the management of the company's
business. They help in making all the strategic and operational decisions which is required for
the company and are responsible for ensuring that the company meets its statutory obligations.
Few words how to rise shares
Some ideas which can help in increasing the shares of any company, is that they can have
a share capital as they have power under its constitution to issue shares. This process will help
them in increase their share capital effectively (Companies Act 2006, 2018).
Lending companies UK
These are those companies which helps in lending loans to other companies as well.
These companies can help in establishing a new business effectively
TASK 4
Pegasus is advised to go for alternative dispute resolution mechanism to solve its legal
issue which may arise in course of business. For a better understanding of this procedure it is
defied in detail to point out the benefits and methods which Pegasus can implement in resolving
disputes.
Alternative dispute resolution
The procedure for settling disputes without litigation is called as Alternative Dispute
Resolution (ADR) such as arbitration, mediation, or negotiation. These procedures are generally
less costly and more expeditious. They are being used in disputes to avoid litigation procedures
of the court and usually cases related with labour, divorce etc. are refereed in ADR (ALIX
ADAMS law business studies).
One of the most important reasons for parties to prefer ADR proceedings is that,
procedures under ADR are often collaborative and allow the parties to understand each other's
positions unlike in litigation they are always presenting their views. Under these parties to
dispute are allowed to come up with creative and new solution and ideas to resolves their issues
which is not allowed in court proceedings.
There are a lot of different types of alternative dispute resolution (ADR), and sometimes
different names are used for similar processes. This can be confusing, but remember that it does
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not really matter what the process is called as long as it helps to sort out the problem in
appropriate way.
Arbitration - A process similar to an informal trial where an impartial third party hears each side
of a dispute and issues a decision; the parties may agree to have the decision be binding or non-
binding
Binding and Non-Binding - A binding decision is a ruling that the parties must abide be whether
they agree with it or not; a non-binding decision is a ruling that the parties may choose to ignore
Arbitrator - An impartial person given the power to resolve a dispute by hearing each side and
coming to decision
Hearing - A proceeding in which evidence and arguments are presented, usually to a decision
maker who will issue ruling
Mediation - A collaborative process where a mediator works with the parties to come to a
mutually agreeable solution; mediation is usually non-binding (ALIX ADAMS law business
studies).
Advantages of alternative dispute resolution
Sometimes people get involve in disputes unintentionally and due to incompletion of
legal formalities. Among those some disputes do not have a legal solution, while others may be
made worse in court proceedings (ALIX ADAMS law business studies). There are many benefits
of using Alternative Dispute Resolution some of then are listed below:
 It is normally quicker and less expensive.
 People have a chance to present their side of story according to their perception
 ADR is more negotiable and responsive to the needs of the people involved
 It is less formal in nature,
 The participation of the parties to dispute in this process creates greater loyalty to the
result so that compliance is more precise,
 The confidential nature of the process ensures that no information is leaked out or
presented to public as this happens in litigation.
 ADR is more likely to protect goodwill or do no give rise to a conflict, which is
especially important in situations where there is a continuing relationship.
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CONCLUSION
From the above report it can be concluded that it is very important to follow all the
business law as it can help to work in legal manner. Present report has studied about the sources
of laws and division of law as well. It has also given some legal advices as well which can be
very useful for any business organization, respectively.
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REFERENCES
Online
Pimlico Plumbers Ltd and another (Appellants) v Smith (Respondent). 2018. [Online]. Available
Through: <https://www.supremecourt.uk/cases/uksc-2017-0053.html>
Employment status checklist. 2018. [Online]. Available Through:
<https://www.rossmartin.co.uk/employers/essential-know-how/171-employment-status>
UK- Parliament. 2018. [Online]. Available Through: <https://www.parliament.uk/>
Companies Act 2006. 2018. [Online]. Available Through:
<https://hansard.parliament.uk/Commons/2012-03-15/debates/12031556000029/
CompaniesAct2006>
Starting a company. 2018. [Online]. Available Through: <https://www.gov.uk/topic/company-
registration-filing/starting-company>
Set up a private limited company. 2018. [Online]. Available Through:
<https://www.gov.uk/limited-company-formation/choose-company-name>
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