Business Law: Understanding the English Legal System and its Impact on Business Operations

This report delves into the intricacies of the English legal system, exploring its sources, structure, and impact on business operations. It examines the constitution, legislative process, court hierarchy, and key areas of business law, including company law, employment law, and contract law. The report also analyzes the role of the judiciary, the use of alternative dispute resolution methods, and the implications of legal reforms on business practices. By providing a comprehensive overview of the English legal system, this report aims to equip readers with a deeper understanding of its relevance to business decision-making and legal compliance.

Business Law
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Table of Contents
Introduction......................................................................................................................................3
LO1 & LO2 (Report 1)....................................................................................................................4
P1.................................................................................................................................................4
P2.................................................................................................................................................6
M1................................................................................................................................................8
P3.................................................................................................................................................9
M2..............................................................................................................................................11
D1..............................................................................................................................................12
LO3 & LO4 (Report 2)..................................................................................................................13
P4...............................................................................................................................................13
P5...............................................................................................................................................15
M3..............................................................................................................................................16
P6...............................................................................................................................................17
M4..............................................................................................................................................18
D2..............................................................................................................................................19
Conclusion.....................................................................................................................................20
References......................................................................................................................................21
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Introduction
The report consists of the business law which is being used by the organisation. The discussion is
also about the sources of English Legal System that how the legal system emerges. Role of the
government is also being explained that how law-making is done by the government authorities.
International Law is also one of the major sources of English Legal System and being studied
thoroughly in the report. Court structure of the United Kingdom is written down in the report
according to their hierarchy. Further the discussion is about the legal system which is
being effective after recent reforms and development. Also the importance of employment law,
company law and contract law is being written down in the report.
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(Report 1)
LO1 & LO2
P1
a. What form does your constitution take?
There are few characteristics of the constitution of the United Kingdom, as there is no
documentary constitution which contains law of the country; the court makes a judgment for the
cases on the basis of the statutes passed by the parliament. The constitution of the United
Kingdom is known as an uncodified constitution. The rules of British Constitution are set up by
the treaties and the international agreements for which the United Kingdom has agreed upon with
the international authorities. The constitution of XX is not specific, the rules and regulation in
the company are followed according to the rules of the country (UCL, 2018).
b. What system of governance is provided for?
The system of Governance: The government of United Kingdom is responsible to the Parliament
this is known as Responsible Government. All the decisions are made by the parliament and the
government. In the Parliament, there are two levels i.e. House of Commons and House of Lords.
House of Commons is considered as lower house whereas House of Lord is the higher house in
the United Kingdom. The House of Commons is more powerful than House of Lords and it can
overrule the laws which are passed by House of Lords (Worldatlas, 2018).
c. Does the constitution provide for a separation of powers?
Yes, the constitution of United Kingdom provides separation of powers. The power is divided
among three powers in the United Kingdom: The Executive Power, The Legislative Power, and
The Judicial Power.
The Executive’s mainly formulates and executes the policies made by the government. The
Legislative’s power is held with the parliament of the United Kingdom. And the Parliament is
composed of three parts that are Monarch, House of Lords and House of Commons. The Judicial
power is to provide justice and resolve the matters of law. The main function of Judiciary is to
develop the law of the state from their judgments (Oxbridge Notes, 2018).
d. What is the general legislative process?
The process of the general legislative process is followed by four major steps. The steps are:
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 First Reading: In this, the title of the bill and what all things are included in it are being
read in the House of Commons. Nothing else is being done in the first reading apart from
the things mentioned above.
 Second Reading: The contents of the bill are debated and if any amendments are required
in the bill are being done in this reading. The voting is done in the House that whether the
bill should proceed further or not.
 Committee Stage: In this stage, the bill it goes to House of Commons for detailed study
by the members of the house. They may make few changes n the bill if it is required.
 Report Stage: In this the amendments if made, then the bill is sent back into the house.
The bill is again debated upon and sent to house.
 Third Reading: In this, the voting is done for the bill that whether the bill should be
accepted or not.
e. Is there a doctrine by which the judiciary can review legislative and executive actions?
Yes, there is a doctrine by which the judiciary can review legislative and executive actions it is
known as judicial review. Judicial review is supervising the executive as well as legislative
power. In Judicial Review courts supervise the power of the public body (Tomkins, 2013).
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P2
a. To what extent do international sources of law apply?
An international source of law is one main source of law in the United Kingdom. The following
are the international sources of law:
1. The Statute of International Court of Justice: This is one of the sources of law in which
the statutes which are passed by ICJ are considered and if it is applicable in the state then
it is opted as the law by the authorities of the state.
2. Treaties: Treaties which are signed on an international level by 2 or more countries are
also considered a source of law for the United Kingdom.
3. Customs: This is a major source of law for almost every state in the world. In this
customs of states are accepted as law by the authorities.
b. What is the general court structure and hierarchy?
The court structure and hierarchy of the courts are:
1. Supreme Court: It is the highest court in the United Kingdom with the highest authority
in the state. The decision passed by this court cannot be further appealed in any court.
2. Court of Appeal: The Court of Appeal is being divided into two divisions one is criminal
and another one is civil. The civil division hears the appeal from the country court, high
court and the tribunal whereas criminal division entertains the cases from crown court.
3. High Court: This court deals with complex and difficult cases. They usually hear both
civil and criminal matters and also assist Lord Justices to hear the appeal.
4. Crown Court: The Crown Court deals with the cases which are decided by a court of the
magistrate and then if the parties are not satisfied they are a further appeal in Crown
Court. Usually, it deals with the criminal cases which are re-appealed by either of the
parties.
5. Magistrate Court: This is the lowest court in the United Kingdom and deals with the
cases which are not serious offenses. It usually hears petty offenses, including cases of
torts.
c. To what extent are lower courts bound by the decisions of higher courts?
Lower Courts are bound by the decisions of the higher court and they have to follow every order
as the higher courts have more authorities than the lower courts.
d. Are there specialist courts for certain legal areas?
Yes, there are specialist courts that deals with certain legal areas such as Court- Martial it only
deals with the cases related to the military and it deals with the cases where military officials are
included.
e. Are other quasi-legal authorities commonly used?
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Yes, in any case of dispute quasi-legal authorities are commonly used. If the parties have agreed
to this condition in the contract then the parties in case of dispute can go for the quasi-legal
authority without any problem (Pocklington, 2014).
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M1
Law is an arrangement of directions which is ascertaining by the public and regulates the actions
of its members and enforce by the imposition of penalties. Law is dynamic in nature which
changes according to the needs of society. Legal system is emerging from time to time. To bring
effectiveness in legal system various reforms are framed. Different tribunals are established to
settle down the disputes between the parties. Tribunals provide the quick decision to the parties.
Technology also plays a better role in English legal system. Advocates and attorneys use internet
for keeping records this reduced the burden and there is no use of paper work. Different reforms
are also established to bring the effectiveness of English legal system.
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P3
Company Law: Company law plays a major impact on the business. From day one in business,
company law has its importance. It starts from the day one from the date of incorporation and
continues till the company exists as all the rules and regulation in the company are made
according to the company law. A business cannot run in the absence of company law as it is the
backbone to start any business.
Employment Law: Employment law in the United Kingdom has a very important role in
business as the employees of the business are governed by employment law only. The law
ensures the safety as well as working with the employees in the company from the day one joins
the job and till the time he continues the job in any of the company. The employees are governed
by this law. Any of the problems if faced by any employee is resolved with the help of
employment law.
Contract Law: Contract law governs the contract which is made between the employee and the
employer. Both of them have to abide by the terms and conditions of the contract, under contract
law. There can be called a breach of contract if any of the term or condition of the contract is
being broken by any of the party either employee or the employer. If either of the parties rights is
being infringed by any of the party then the affected party has right to sue the other one under the
contract law by which the contract between the party is protected and governed.
f. Are certain emergency powers reserved for the executive?
Yes, certain emergency powers are reserved for the executive. Emergency powers are defined in
Civil Contingencies Act 2004. One part states the protection of the public at the regional level.
The other part deals with the measures which can be taken down in case of emergency involved
in the country.
g. Are human rights constitutionally protected?
Human rights are not constitutionally protected but there is human rights act which was passed
1998. It protects the rights of the human beings who are residing in the United Kingdom. It has a
constitutional validity and is legally valid.
h.By what means can the constitution be amended?
As it is being discussed earlier that constitution of the United Kingdom is unwritten therefore to
amend the constitution the procedure is not prescribed or fixed but it has to be approved by the
higher authorities if any of the amendment is to be made in the constitution of the United
Kingdom. The authorities have to agree to the amendment if they find it suitable one made in the
constitution they can allow it can it can be amended.
i. What form does your legal system take?
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The legal system of United Kingdom is depended upon the decisions of parliament as the
parliament finally approves the law for the country to be followed. The law is derived from
customs, international treaties, judicial decisions etc.
j. What are the main domestic sources of law?
The main source of law in the United Kingdom is many options like international laws, customs,
treaties etc (Library of Congress, 2015). The main domestic sources of law in the United
Kingdom are:
 Case Laws: This is one of the major sources of law in the United Kingdom. The major
part of the law is made by the judges of the country. The decisions which are passed in
the court by the judges further become laws for the people residing in the country. And if
any other case of a similar kind comes in the court then the decision passed previously is
considered by the judge and decision is given by them.
 Laws made by Parliament: Another major source of lawmaking in the United Kingdom
is parliament. The law is made by parliament by following a proper procedure where the
bill is passed in the houses and if the bill is passed perfectly in both the houses then
finally it becomes a law for the country.
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M2
Regulations Legislation Standards
It keeps a check over the
laws which are made by
legislation.
This is very much necessary to
setup proper legal work.
Standards support the
legislation as well as
regulation.
Regulation is the necessity to
regulate the laws which are
made and set up by the
legislation.
Legislation helps in setting up
laws for the country which
cannot be changed easily.
These are essential which are
used to keep a check on the
laws of the country made by
the authorities.
If any changes are to do they
are to be approved by the
regulatory authority.
It is supported by various legal
officers BSI, 2018).
It is important to keep
standards as it keeps a check
over the working of legislation
as well as regulation.
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D1
Comparison between English legal and US legal system
In US the legal professional are known as lawyer, litigators whereas in UK professionals are
known a barristers and solicitors. Solicitors represent the minor cases in courts and play a vital
role in English legal system. Barrister is the experts in courtroom and involved in the
examination of witness. US court handles the civil and criminal offences and UK court handles
the serious civil cases. US do not have a system of tribunal while UK has tribunal system that
has different roles and jurisdictions. UK does not entail with camera proceedings while US allow
the court room trials.
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(Report 2)
LO3 & LO4
P4
Termination is done in case when employees in the organisation do not perform their task
and that incurs a loss for the business. Termination can be done on the ground of poor
performance, redundancy and reorganisation of business.
Rescue from insolvency and liquidation can be done by resolving the cash problems. The
company can face the problem of insolvency in case of cash that states that company did not
have the money for doing transactions.
a. Does the constitution provide for an independent judiciary?
Constitution of UK provides the independent judiciary through different means. These are:
 Judicial Appointments commissions are established for judicial appointments that are
impartial.
 Under the Contempt of Court Act 1981, the statutory and common law contempt of court
ensures the reliability and transparency between the courts and there is no intrusion with
the supervision of justice.
 Independent body that is senior salaries Review determines the salary of judicial
members which is paid from the consolidated fund.
 Judges have the immunity power to carry out the different judicial functions.
 Parliament does not discuss the matter that is pending or being heard by the courts under
the rule of “sub-judice”.
b. How are members of the judiciary typically appointed?
Judges are selected by the approval of chancellor by monarch. Commission was established that
recommends and selects the applicants for appointment. The main of commission is to diversify
the range of persons that are available for selection of appointments (Wilson, et. al., 2014).
Applicants should be:
 Applicant should be Citizen of UK and member of republic of Ireland or common wealth
country.
 The retirement age of judge is 70 Years.
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c. Do the courts use an adversarial, non-adversarial or another system?
 UK is based on the adversarial system of court, in which parties examine their own cases
and call for the evidence. It can be explained by the following points:
 In civil cases, the plaintiff does not commit any breach or statutory duty against the
appellant.
 In criminal cases, the prosecutor tries to prove the guilt of respondent and defendant
argues for acquittal.
 Arguments of case were done by opposing two parties that are responsible for the
presenting and finding the case (Law teacher, 2018).
d. Who is responsible for gathering evidence?
The parties are responsible for collecting the evidence. Evidence is collected after the completion
of litigation .In the civil matters, evidence is procured before e the commencement of
proceedings and that must be informed to legal representatives. In criminal cases the police
arrest and suspect the witness. , they collect the evidence od take the statements from witness.
e. Is evidence independently examined before a trial?
In civil matters the inscribed statements of evidence are exchanged by the parties that occur
before the trial. There is no sovereign scrutiny of evidence but law court has the control to limit
the issues. Under criminal cases, the police have the authority to complete the process of
investigations and refer to crown prosecution service that states the procedure of minor and
routine cases. The CPS reads the file and sets the different principles that lead to making the
decision (Feliciano, 2017).
f. Are trials/hearings open to the public?
Court must hear the proceedings in public. Proceedings can be taken in civil and criminal
matters. In the matter of civil cases, the court has authority to conduct the proceedings in private
if it is mandatory for serving justice. For conducting the proceedings in criminal cases the parties
apply to court and application should be written before the 5 days of initiation of proceedings
and it is shown in the vicinity of court.
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P5
Corporate law plays a vital role to form a company. it provides the following steps and
procedures to set up the company . It involves the following issues such as process of market
share and the capital of company. For the liquidation of company, they have to appoint the
liquidator who knows the procedure of company and plays a vital role in winding up of company
(Fakhar, et. al., 2018).
a. Are reporting restrictions typically imposed in relation to a trial?
There are no particular restrictions imposes during or after the trial. Certain conditions are there
that believes that restrictions are necessary for the interest of parties; in that case reporting can be
restricted. There is an exception clause in case of confinement of issues. Under the criminal case,
there is no particular form of restrictions until the report is bound by the court. In the matter of
justice administration, the restrictions are imposed.
b. What is the main function of the trial and who are the main parties to it?
The important function of trial is to hear the facts of cases and evidence and then decide on it.
There are certain facts and issues which are issued before the trial. These issues can be in form of
oral and written evidencethat can be cross-examined and applied to the judgment. In criminal
cases, the crown has power to present and prove their case and makes the arguments for
discharge or verdict. The judges play an important role in respect of trial and in case of
magistrate and crown court the advocates are appointed for the presentation of cases.
c. What is the main role of the judge and counsel in a trial?
Judges play a vital role in the process of trial. The main work of a judge is to ask questions on
the point of law and fact and he decides the procedural matter at the time of hearing. The judges
provide the effective opportunities to present the cases. Judges are under obligation to follow the
rules of Criminal procedure code that provides the rules and regulations related to the matter of
trial (Huxley-Binns, et. al., 2017).
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M3
Different solutions are provided to the parties in case of disputes. These solution leads to a
positive and negative impact on the organisation. For example, constitution helps the parties to
follow all the rules and regulations of civil and criminal matters. It also establishes different
norms and standards that help the parties to solve their dispute. Constitution provides the
different rules and regulations according to the facts of case. In same way it leads to a negative
impact, if the parties did not follow the terms and conditions hen in that case it leads to the
breach and termination of contract that leads to the burden of penalty.
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P6
In the given scenario, the dispute involved among them in last five years. There was a dispute
between two companies and they are adopting the procedure of arbitration from last 5 years, but
they can’t able to reach to solution, so it is recommended that the companies can adopt the
method of mediation. Mediation is an informal process in which person is chosen to that helps
the parties to reach an agreement. Arbitration is process in which detailed procedure is followed
and arbitrators are appointed to solve the dispute. The decision given by the arbitrators is final
and binding (Kastrinou and Jacobs, 2017).
a. To what extent are juries used?
Jury is a panel of autonomous citizens that access the evidence which is produced by the parties.
They are responsible for making the decisions according to with the criminal cases in which
defendant are is proved to be guilty. In civil cases they decide the cost of damages that how
much damages are paid to parties.
b. What restrictions exist as to the evidence that can be heard by the court?
The restrictions are based on the hearsay evidence, which states that the statement is made other
than the parties while giving the evidence. A statement is made by the party that is considered to
be part of evidence when it is presented before the court for the purpose of cross-examination. In
criminal cases there are certain rules on evidence that is presented in criminal trial and in a
matter of evidence.
c. Which party has the burden of proof in a trial and at what standard is this burden met?
In the civil matters, the burden of proof depends upon the claimant; the claimant should prove
the evidence in relation to claim on the balance of probabilities. In the criminal matters, the trial
is to be reflected innocent until the proven guilty.
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M4
The method of mediation helps to solve the dispute between the parties. The process of
mediation solves the business problems easily and it saves cost and time. In the given scenario,
the dispute between the parties is taken for a long time that is for five years that will cause
inconvenience for the parties to resolve the dispute.
Comparing the process of mediation with the arbitration, the mediation is more effective and
efficient in terms of cost and time. It takes less time to settle the dispute and also maintain s the
relationship and does not hamper the relations between the parties. Process of mediation is easier
and simpler than the arbitration process. It does not involve any fees and expenses. Mediation
permits the parties to work together and resolve the dispute. Mediation is quicker than the
process of arbitration (Construction disputes, 2018).
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D2
a. What verdicts can the court give?
The court has the power to deal with civil and criminal cases .In civil cases the claimant seeks
the relief in the form of statement in which the defendant has breached the legal duty. If claimant
sought damages then in that case the court has power to decide the amount of damages. In a
criminal case, the verdict can be guilty or not guilty, in that case the court has power to impose
the penalty and imprisonment on citizens (Hall and Hobbs, 2017)
b. What range of penalties/relief can the court order upon a verdict?
In civil cases the court has authority to grant the temporary orders and payments. The parties can
claim for the damages and specific performance. Legal solution depends on the facts and
circumstances of case. In the given scenario, the company A and company B has right to claim a
penalty. Court stops the company to produce the same variety of products and sell in market.
Company B has right to claim penalty in connection to sale of similar products.
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Conclusion
From the above report, it has to be concluded that legal system plays a vital role in the economy.
Different role played by government and institutions for bringing effectiveness in the process of
law making. The law provides the various business solutions to their problems that can be
analyse with the different application of law. It also evaluates the Alternative dispute resolution
and their types. ADR includes the conciliation, mediation, arbitration etc. ADR provides the
legal solution and assists the parties in resolving their disputes. To bring the effectiveness in a
legal system different applications and concepts are evaluated here.
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References
 BSI, 2018. Standards and Regulation. Available at:
https://www.bsigroup.com/en-GB/standards/Information-about-standards/standards-and-
regulation/ [Accessed on 5 March 2018]
 Construction disputes, 2018. The advantages of mediation. Available at:
http://www.constructiondisputes-cdrs.com/advantages_of_mediation.htm [Accessed on: 3
March 2018].
 Fakhar, U., Fakhar, O. and Ch, A.S., 2018. Alternate Dispute Resolution: Expeditious
Justice. World Academy of Science, Engineering and Technology, International Journal
of Law and Political Sciences, 5(2)
 Feliciano Jr, S., 2017. Alternative Dispute Resolution. The Catholic Lawyer, 33(1), p.10.
 Hall, D. and Hobbs, C., 2017. Public ownership is back on the agenda in the
UK. Reclaiming Public Services, p.130.
 Huxley-Binns, R., Martin, J. and Frost, T., 2017. Unlocking the English legal system.
Taylor & Francis.
 Kastrinou, A. and Jacobs, L., 2017. An 15 Overview of the Pre-Insolvency Procedures in
the United Kingdom and South Africa. Turnaround Management and Bankruptcy: A
Research Companion, 69, p.290.
 Lawteacher, 2018. The Sources Of International Law. Available at:
https://www.lawteacher.net/free-law-essays/international-law/the-sources-of-
international-law.php [Accessed on: 6 March 2018].
 Library of Congress, 2015. Legal Research Guide: United Kingdom. Available at:
https://www.loc.gov/law/help/legal-research-guide/uk.php [Accessed on: 5 March 2018]
 Oxbridge Notes, 2018. Separation of Powers Notes. Available at:
https://www.oxbridgenotes.co.uk/revision_notes/law-constitutional-law/samples/
separation-of-powers-1-2 [Accessed on: 3 March 2018]
 Pocklington, D., 2014. Public bodies, quasi-law and religion. Law & Religion UK.
Available at: http://www.lawandreligionuk.com/2014/11/12/public-bodies-quasi-law-
and-religion/ [Accessed on: 5 March 2018]
 Tomkins, A., 2013. Judicial Review. British Government and the Constitution. Available
at: https://britgovcon.wordpress.com/category/judicial-review/ [Accessed on 5 March
2018]
 UCL, 2018. What is UK Constitution. Available at: http://www.ucl.ac.uk/constitution-
unit/whatis/uk-constitution [Accessed on 3 March 2018]
 Wilson, S., Rutherford, H., Storey, T. and Wortley, N., 2014. English Legal System.
Oxford University Press.
 Worldatlas, 2018. What type of Government does the United Kingdom have. Available
at: https://www.worldatlas.com/articles/what-type-of-government-does-the-united-
kingdom-have.html [Accessed on: 3 March 2018]
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