Business Law: English Legal System, Types of Business Organizations, and Legal Solutions for Disputes

This report provides an overview of business law, focusing on the English legal system, different types of business organizations, and legal solutions for resolving disputes. It discusses the principles of the English legal system, the effectiveness of the system, and the sources of law. It also examines a landmark case that changed the definition of a worker and explores different types of business organizations, such as limited companies, sole proprietorships, partnership firms, and limited liability partnerships. Additionally, it discusses alternative dispute resolution methods, such as arbitration and mediation. Overall, the report emphasizes the importance of understanding business law for running a successful business.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................5
TASK 4............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is a wider term which comprises number of legal provisions applicable on
organisations and there commercial transactions. It provides a foundation of law for conducting
business activities by following legislation. It is treated as a part of civil law and deals with
disputes or conflicts arising in the ordinary course of business. The other names of mercantile
law for commercial law. From the inception till the winding up, every aspect is governed through
this law. The report covers nature of English legal system, differentiation between employed and
different types of laws applicable on a business which have potential impact on the transactions.
In addition, formation of different types of business organisations has been discussed together
with legal solutions for resolving disputes.
TASK 1
In the given case, K is an aggregator and engaged in the business of food delivery where
buy it charge commission from restaurants per order and delivers the food from the
restaurant to the final customer. Due to number of difficulties faced in the previous years,
it felt importance of having the knowledge of English legal system which has been
elaborated below:
 Introduction to English legal system
English legal system is complex and one of the most untouched by any foreign law. Its
jurisdiction is divided into three parts such as England and Wales, Scotland and Northern
Ireland. Each of them has their own legal provisions and courts to deal with cases. Particularly
talking about UK, there is no completely written constitution however, Westminster parliament
has passed laws on the decided articles. Crown has the power to decide on ceremonial matters
and Parliament being the supreme authority to make laws.
 Principle of English legal system: There is only one principle on which the whole UK
system rely. It is known as doctrine of judicial precedents. According to this principle,
case with same facts and issues will be decided on the basis of previous cases with
similar issues, facts and circumstances. The underlying assumption is that, when two
cases are exactly the same then and why to apply different laws. The judges in UK courts
follow this principal for passing decisions.
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 Effectiveness of English legal system: The English legal system is is not easily
understandable by a person due to the level of complexity. Also, it is outdated and needs
number of reforms for making it effective. However, d UK legal system has never been
ruled by any foreign rules. Also, majority of countries considered it as a base for setting
their own legal system and constitution.
 Passing of a bill: There is a particular procedure which is followed for presenting a bill
in order to get it converted into an act which will be applicable throughout UK. The
process of passing a bill is as follows:
First reading: It is the the initial stage in which the formality to present the bill in the
parliament is done.
Second reading: In this, views of opposition is heard in order to make amendments.
Committee stage: A standing committee is formed which is under obligation to review
the bill so presented for assessing the scope of Bill.
Report stage: The report prepared by committee is presented to house of commons in
order to give time for suggesting amendments tournament before passing the bill.
Third reading: The draft bill is is evaluated and no father amendments can be made at
this stage.
Royal assent: The last step is about receiving the ascent of the queen for enacting it as
law which will be compulsory for citizens of UK to follow.
 Sources of law: To half knowledge about number of floors that might be applicable on
the business can be extracted from the sources which have been discussed below:
Custom- It is based on the beliefs people of UK have. These are the customs which are
made by individuals living in a society. It can be treated as a primary source of law.
Common law- The cases in UK courts are decided on the basis of judicial precedents
where buy previous cases are the foundation for passing judgements in future case law.
European Union law- UK is a member country of European Union which
provides various directives to be followed by people living in the country. All the businesses are
done according to these directives.
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TASK 2
Pimlico Plumbers case- This was a landmark case which changed the definition of of
worker. The decisions provided in this case was much appreciated by all the workers working in
the United kingdom. It was a case of Gary Smith v Pimlico Plumber, where by garib worked at
the company for almost 6 years on a self employed basis. When an individual is working as self
employed it means that he or she carries work on a freelance basis without any control of the
employer. However, Gary file the case with employment tribunal questioning that he deserve
employment rights as given in Employment Act, 2002. He contended that even though he was
carrying work as a freelance, there was adequate amount of administrative control by Pimlico
Plumber. Furthermore, he and other self employed individuals verb bound to follow the code of
conduct entering into a contract with the company. Together with this, there was a compulsion
for them to wear the uniform and drive the vehicles on which the brand colours of Pimlico
Plumber was printed. Also there was a provision for them to not to work with the competitors of
Pimlico Plumber after the move out of they move out of the company.
Employment tribunal rejected the statements of Gary and pass the case in the favour of
Pimlico Plumber. Carry on being aggrieved with the judgement passed by the tribunal Court
filed the case the supreme court. Supreme Court held that self-employed worker if if has
adequate administrative control by the employer also, signed the contract in which the code of
conduct is to be followed. Along with this, they are bound to carry the identity card, drive the
vehicles provided by the company on which the name of the brand is present. Then, self
employed worker will be treated as worker appointed by the employer and falls under the
category of Employment Act,2002 is applicable and will be treated as a worker.
In the case of Kango, the self-employed workers are actually workers as defined in the
Employment Act, 2002 due to signing of contract with K according to which its staff is is
required to follow company's code of conduct. Along with this, K made it mandatory to to drive
bicycles, wear uniform of K. Furthermore, they are under duty to inform K about non availability
of couriers through notice within 48 hours. In nutshell, K's self employed workers must be
treated as worker.
If the situation was the workers were employed by K, then Employment Act, 2002 would
have been applicable. All the rights such as paid leaves, equal treatment and opportunities,
protection from harassment or bully, safe and healthy working environment, etc. Who have been
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provided. Besides, a notice is required to be given by the employee for his resignation. The work
is conducted according to the policies of the company.
TASK 3
UK a has number of organisations that can be update for publishing a business and carry
the operations smoothly by taking all the advantages of the structure. In the given case, K's
accountant has advised to set up a limited company. Detail of company and other types of
business organisations has been provided below:
Limited company: A company is said to be an artificial person having a separate legal
identity from its members along with perpetual succession and a common seal. It can be limited
by shares or guarantee. Also there is unlimited company where by the liability of shareholders
can extend to their personal assets for paying off the debts of the company. In the case of
Salomon v Salomon, legal personality has been defined which means that a corporate is entirely
different from its owners. Thus, it holds right to sue be sued, acquired property, or open account
etc. In its own name. It is created after getting registered under Companies Act, 2006 and
dissolution is finalized by law only.
When a company complete all its formalities and received the certificate of incorporation
it is treated as a registered company. It has lots of advantages as compared to other types of
entities. There are much wider options of fundraising are available as investors have trust due to
the registration under Companies Act, 2006. Also, it is very easy to convert a registered company
into any other type of business organisation just by increasing or decreasing the paid up capital
and it by filing required certificate along with prescribed fees with the companies house.
Sole proprietorship- When a small business is managed and owned by a soul person it is
called sole proprietorship. The person who handles the business activities is called sole trader
or sole proprietor. There is no requirement of registration and also there is no distinction
between the owner and the entity. Profit and loss are not shared and the financial resources
are arranged through the sources of personal savings for loans from Bank or financial
institutions. Failure to fulfils the obligation, personal assets are used in case of in case of
insufficiency.
Partnership firm- an association proposed to be established for carrying out lawful
business by two or more persons with the intention to make profit is called partnership firm.
A partnership deed is executed between the partners which carries terms and conditions on
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which the whole firm will act. Moreover, a partner will be held jointly and severally liable
for the act of other partner (s). Decisions regarding the firm are taken by all the partners
provided it must be approved by each one of them. The prime sources of funds are capital
bring by partners, bank or financial institution loans, retained earnings, and many other
options are available.
Limited Liability Partnership (LLP)- It is the hybrid form which combines the features of
a company and partnership firm. The liability of partners is limited and flexibility of
administration just like partnership firm. However, unlike partnership form a partner is not
held severally or gently liable for the act of other partner. Also, personal assets an not tracked
to pay of the obligations of the LLP.
TASK 4
Alternative Dispute Resolution (ADR): It is an effective way a of settling disputes or
conflicts regarding business matters. It is a legal solution which is cost effective and expeditious.
People find it very easy to use and there is no intervention of court. Further, it includes
arbitration and mediation which are also good options for mitigating the differences in an
amicable manner.
Arbitration- One of the most preferred solution for resolving the disputes without going
to courts. Under this, an arbitrator is appointed with the consent of both the parties who is an
independent person having no prejudices. He listen to the arguments of both the parties,
investigate the evidence and testimonials presented by them and make judgement which is
considered final and binding. There is an individual procedure which can vary case to case. New
decision of arbitrator can be challenged. It is very inexpensive and speedy process of getting a
solution.
Mediation- A mediator is appointed for facilitating effective communication between the
parties to the dispute also the parties can deal directly with each other. It is a two way
communication which is done within objective to find a workable solution. It may involve
production of an agreement containing terms which is applied for settling down the conflicts. It
is the first method which is applied for resolving any difficulty. Also, there is flexibility to
modify the terms according to the requirements of the parties.
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Arbitration has been proved to be the best method which suits all the criteria of an easy
way to get to a conclusion. Thus, it can be applied in any matter for getting results in a quick
manner.
CONCLUSION
From the above report, it can be concluded that business law is useful and mandatory for
running of a business entity. It promotes harmony in the working and provide a legal base to be
used as a protection. In order to understand legal system of a country along with various laws,
different sources can be looked into. Furthermore, a clear difference should be there between a
self employed person and employed for the application of number of employment laws.
Furthermore, the principle of separate legal entity should be understood and considered while
planning to set up a company. However, other types of organizations must be analysed before
finalising one. Lastly, variety of legal solution should be evaluated before selecting one for
resolving disputes in business matters.
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