Understanding the Legal System and Impacts of Legislation on Business Performance

This study explores the legal system of the UK, including its problems, and the impacts of legislation on business performance. It also discusses the different types of organizations and their funding.

Business Law
1610191682

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Legal system of the UK along with problems of UKs legal system............................................1
TASK 2............................................................................................................................................3
Impacts of legislation...................................................................................................................3
TASK 3............................................................................................................................................4
Types of organization along with organization funding..............................................................4
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business law refers the body of law which governs business and it is mainly considered to
be a branch of civil law (Miller, 2016). It deals with both public and private issues. This present
study is based on Pegasus that is a partnership firm, set up by Jay and Alex in the year of
2014.They deliver products that are ordered online. Amazon is one of the major customers of
this company and now this company has around 30 delivery vans. This study is going to show
effectiveness of knowing detailed information about legal system of the country where people
run business. It protects them against law suit and helps them out in running business smoothly
and effectively. It will also show impacts of legal system and legislations on business
performance.
TASK 1
Legal system of the UK along with problems of UKs legal system
UK has three legal systems, one for England and Wales, one for Scotland and one for
Northern Ireland. It is found that justice system of the UK is fair and transparent. Common law,
European law and European convention on human rights. The main important piece of
legislation is Acts of Parliament (Abbasi and Parsa, 2019). Principle legislature is the only body
that has power to pass law that applies in all four countries. House of common has around 650
members of parliament. The House of Lords consist of 800 peers. Sources of law of the UK can
be discussed in detailed manner such as:
Legislation:
It is a law that is created by legislature. The house of common that is has around 650
members, represent defined geographic constituency. Each elector has 1 vote and those
candidates who get the highest votes are elected as Member of Parliament for that constituency.
House of Lords also consist of 800 members among which 600 are formally appointed by the
Queen on recommendation of the Prime minister.
Other body of this legislation such as The Scottish Parliament, Northern Ireland assembly
and National assembly for Wales have power to pass laws. But these laws apply in only those
countries where they were passed.
Common law:
Legal system of England and Wales is common law and decisions made by senior courts
also become part of this law (Norman, 2017).
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European Union law
UK is known as member of European Union.
Legal system plays an important role and it can affect businesses. UKs laws regulate
business practices as it helps people and employers in defining all policies, rights as well as
obligations about business transactions. Bu making use of consumer, human rights and other
laws, Pegasus can protect itself against lawsuit and penalty and can improve image in the eyes of
stakeholders. All practices and legislations like of the UK related to environmental practices,
advertising practices, employees’ practices and others can have several positive impacts on
overall performance of this company. It is important for Pegasus of having knowledge of legal
system for protecting against lawsuit and making themselves sustainable and ethical (The Legal
System of the United Kingdom, 2018).
Problems associated with UK legal system
There are some legislation related to crimes in which people face problems in accessing
as there is a increasing shortage of criminal duty solicitors. In this regard it can be said that
within 5 years, there are some areas in England and Wales where people who have been arrested
will not be able to access duty solicitor. It means they are not able to get free legal advice. Other
main problem that has been associated with legal system is unfairness. In this regard it can be
said that sometimes people who have been entitled in cases have to wait for the long run as cases
in courts are often double booked and because of this double booking some hearing got cancelled
at last minute (Lowe, 2017). So, from this detailed information of legal system and importance of
knowing legal system, it can be said that Pegasus can carry operations.
Law making: In the regard to bill processing, bill is known as draft law until it becomes
an act or approved by majority in the House of lords and House of common. Before parliament,
this draft bill is being proposed for debate. In its first stage it is being sent for first reading
through the House of common and it can be at any time. After its firs reading and getting
approval by all members at first reading it is being sent for second reading. Members of
parliament debate general principle as well as themes of bill at second reading. After getting
approved at this stage it is being sent for final reading and approval. In this stage bill is being
examined in a detailed manner. On the basis of majority of votes it is either being accepted or
rejected.
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TASK 2
Impacts of legislation
Laws and legislations have some impacts on business in critical manner. It has positive
impacts when, all rules and regulations are being followed by businessmen and all employees. If
they do not follow any rules and regulations then it can affect business performance of company
in a negative manner. In regards to Pegasus Company that owns 30 vans and provides services
that have been ordered online have hired drivers (Liston-Heyes and Liu, 2020). It is important
for drivers to wear dress of Pegasus Company. For protecting themselves against penalty and
lawsuit, this company requires making a contract between drivers and owner regarding gross
misconduct and wage.
In regard to gross misconduct of the UK of Pegasus it can be said that, drivers and
employees require following all rules. It includes: theft, physical violence, gross negligence and
dismiss of employees immediately can create several impacts. It is important for drivers or
employers to follow ACAS code (Parveen, 2020). As per this code of practice employers can
take actions against drivers and employees if they find misconduct done by them. Drivers require
wear dress that is being provided by this company and if they do not follow then employers
require:
 Investigate matter in detailed manner.
 Informing issues to employees before terminating them.
 Giving opportunities to employees of responding and saying in their favour.
 Informing decision in writing.
 Providing with rights of appeal.
As per the legal system of the UK regarding wage and misconduct, no one is allowed to
misconduct with their employers and they require maintaining privacy of information. If
employers face allegation of gross misconduct then they may well face a suspension on full pay.
If any misconduct happens then the suspension should only be for as long as necessary for the
investigation to be completed. If suspension is unreasonably too long then there is no credibility
for employee to go back to work whatever the outcome of investigation they receive. It all
depends on the situation and on the basis of situation and detailed analysis, employer can
terminate anyone who misconduct. On the other hand, employees also have rights to seek for
detailed information about their termination and safety if employers take illegal action and
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misconduct to employees (Lee and Xiao, 2018). So, it can be said that as per the legislations and
laws of the UK, both employers and employees are allowed to get information and have right to
take legal action against misconduct.
There are some examples and cases that shows illegal and unethical behaviours such as:
Pimlico case where they are claiming a worker has self-employed status will be under no
obligation to provide work. Smith had presented himself as self-employed and took all
advantages of it. As per the employment rights act, employers are required providing all
information to their employees regarding: unfair dismissal, protection of wages and others.
TASK 3
Types of organization along with organization funding
There are different types of organizations that are being developed as oer the needs,
financial availability and size. Legal structure of different types of companies vary. Some main
different types of organizations are:
Sole proprietorship: It is a one man business organization. In this type of organization,
one man or businessman run and manage all operational functions. He is the only responsible for
all profits and losses. There is no requirement for incorporation and registration. Main advantage
of this type of business is lack of legal formalities. On the other hand, liabilities for owner
increases that is limitation.
Partnership: A type of business that is being run and managed by at-least 2 people are
known as partnership. Profit and losses are being shared among partners as per their investment
amount and share. It is not a separate legal entity and there is requirement of making contract
that is known as partnership deed. It consists of all information of partners and protect all
partners against lawsuits.
Company: It is legal entity that people form for making profit and get rights of buying
and selling goods and services. They have rights of hiring and firing employees. It has separate
legal entity from its members but liability of shareholders is limited.
So, from the above discussion and all advantages and limitations it can be suggested to
Jay and Alex that they should focus on creating registered company that is being created by law.
A company that is being registered under companies act can protect both against lawsuit. There
is a legal entity, dual relationship and equity raising. There is a process and some steps that
should be followed by Alex and Jay for forming registered company such as:
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Selecting a company structure: It is the main and preliminary step in which people decide the
main structure of their company as per the size. After that they need to register their company
name under companies act. After that they need to select appropriate company formation
package for long they want to form their business. After selecting package they require entering
all details related to their company like owners name, requirement of resources, funding and
others. After entering all these details they require allocating their shares. They also require
completing memorandum and articles of association and it is known as the main important step
of forming registered company. At the end after entering information and providing all details to
associate department, owners require submitting all documents and information to companies
house for registered company.
There are different ways and sources by which companies can manage funding such as:
bank loans, personal saving, crowd finding and others. For bank loan, there is requirement of
having all documents along with valid reason of funding. It is time-consuming process. In crowd
funding, companies and project raise small amount of money from number of people.
Conclusion
It has been summarized from the above study that having knowledge of legal system of the
country where people want to run business, plays a vital role. It provides several benefits as by
knowing detailed information, employers and businesses can protect themselves against of the
lawsuit. If they do not follow rules made by the government then they have to face many
problems and it has also been discussed in this study. It has discussed some problems that are
associated with legal system of the UK or some areas that needs to be focused by government for
providing better services and rules to individuals. It has further discussed potential impacts of
law on business and its overall performance. How legislations may affect performance and
image.
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REFERENCES
Books and Journals
Abbasi, M. and Parsa, E., 2019. Types of compensation claims in relation to pre-natal diagnosis
negligence in the UK legal system. Journal of Advanced Pharmacy Education &
Research| Apr-Jun. 9(S2). p.79.
Lee, G. and Xiao, X., 2018. Whistleblowing on accounting-related misconduct: A synthesis of
the literature. Journal of Accounting Literature. 41. pp.22-46.
Liston-Heyes, C. and Liu, G., 2020. To measure or not to measure? An empirical investigation
of social impact measurement in UK social enterprises. Public Management Review,
pp.In-press.
Lowe, D., 2017. Prevent strategies: The problems associated in defining extremism: The case of
the United Kingdom. Studies in Conflict & Terrorism. 40(11). pp.917-933.
Miller, R.L., 2016. Business Law Today, Comprehensive. Cengage learning.
Norman, P., 2017. The UK and Europe.
Parveen, R., 2020. Impact of anti-money laundering legislation in the United Kingdom and
European Union. International Journal of Economics and Management Systems, 5.
Online
The Legal System of the United Kingdom. 2018. [Online]. Available through
https://www.cilex.org.uk/about_cilex/about-cilex-lawyers/what-cilex-lawyers-do/the-uk-
legal-system
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