Business Law Report: Analysis of UK Business Law for BTEC HNC Students

This report provides a detailed overview of business law within the United Kingdom, covering various aspects such as the legal system, different sources of law, key legislation, regulations, and standards that businesses must adhere to. It delves into the reflection of the legal system, highlighting its strengths and weaknesses, and examines specific laws like employment, contract, copyright, and torts, and their impact on businesses. The report further discusses the different legal formats of businesses, differentiating between private and public sectors, and concludes with a look at real-life business cases. The report aims to provide a comprehensive understanding of the legal framework within which businesses operate in the UK.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Legal system and different sources of law..................................................................................3
Reflection of legal system...........................................................................................................4
Key legislation, regulations and standards..................................................................................5
Different law which businesses have to follow...........................................................................6
Legal formats of businesses.........................................................................................................8
Evaluation....................................................................................................................................9
PART 2..........................................................................................................................................10
Case 1.........................................................................................................................................10
Case 2.........................................................................................................................................11
Case 3.........................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business law topic is very necessary to be discussed, because this topic always provides
an appropriate framework to businesses or companies. Upper management within an
organisation always responsible to adhere all legal and ethical considerations in its daily
operations. According to the government of United Kingdom, every company or venture which
runs within the UK’s authorisation area is fully required to adhere and follow every business
legislation that has passed by the local government. The main aim of the UK’s parliament and
government behind passing business law is to maintain an ethicalness in the country’s business
environment. This report discusses business law aspect of the United Kingdom. There are
various legislations, regulations and standards also has been discussed in this report which comes
under this country’s legal system. This report mainly divided into two parts, different basics of
business law has discussed in the first part, and in the second part some real-life legal business
cases has been discussed.
PART 1
Legal system and different sources of law
Legal system, this is basically a system which provides a framework to a country for
running its business environment effectively and ethically (Howarth and James, 2020). For
example; the government and parliament of the United Kingdom has formulated and passed
different laws which each enterprise or company has to follow and adhere in this country. Not
only government of the United Kingdom, because currently government of each country has
created a legal for itself to manage all thing legally. Formulation of legal system is very
necessary task to a country, because it represents its very positive image at the international
level. Currently the United Kingdom is highly reputed country globally, because it has highly
succeeded in creation of an effective legal system. Every induvial within this country responsible
to follow different laws. There are some key sources of law has been discussed below;
Different Sources of Law

Constitutional law: This is one of the main sources of law. For example; every country has
constitution, so local government and people of a country responsible to adhere each and every
legislation and regulation which involves in the constitution.
Statutory law: Statutory is another key source of law (Al Fadhel, 2018). Basically, legislation
which has formulated through this source are always passed on the basis of MPs’ (member of
parliament) votes.
Administrative law: Administrative body of a country also formulates different laws and
regulation. For example; Administration of the United Kingdom always passes various
legislations when it is necessary.
These are some key sources of law within the United Kingdom, in which these all sources
are highly contributing in making the UK’s legal system more and more strong. There are
government of the United Kingdom always plays an excellent role in formulating different laws.
Basically, without involvement of government, there is no law can be passed. There are statutory
and common law are completely applied on the different business within country. The basic
different between common law and statutory law is, a common law develops with judge’s new
decisions. On the other side, a statutory law develops by different government agencies. For
example; there are ‘companies act 2006’ is a part of statutory law, in which every business or
company within the UK should have follow this law while running its operations in the market.
Then, ‘employment rights act 1996’ is part of common law, so that a company should adhere this
law as well (Woolley and Core, 2018). In short, legal system of the United Kingdom is necessary
to all existing businesses for running their all operations legally and ethically.
Reflection of legal system
Legal system of the United Kingdom is very helpful in the context of making a happy and
healthy environment within the society. There is business law is also a small part of the UK’s
legal system. Basically, this legal system is too beneficial in making the UK as a strong nation at
the international level. Currently many of country has appreciate the United Kingdom for it an
effective legal system. With the support of business law, this country is able to maintain an
effectiveness and ethicalness in its business environment, and maintaining an effectiveness in
business environment is very necessary task for the government of UK as well. For example;

existing businesses and companies are generally backbone to the United Kingdom’s economic
growth. This is the main reason that, government of this country always show its higher interest
while formulating different legislations and regulation for its environment of business
(Okunevičiūtė and Pranskeviciute, 2018). There are some major strengths and weaknesses of
legal system has been discussed below;
Strengths
 Legal system provides equal growth opportunity to different people of the country. It plays an excellent role in making a happy and healthy environment within the society.
Weaknesses
 Understanding different laws is not a small task everyone, because it is too complicated.
 Implementation process of law consumes too much time of businesses and people.
Key legislation, regulations and standards
There are some key legislation, regulations and standards has been discussed below
which every new business or company needs to be aware of, otherwise, that new business can’t
be legally formed.
LEGISLATION
Health and safety: Health and safety at work act (1974), this is the most common legislation
which every new business or company should be followed in their workplace. According to this
law, a business is always required to provide a safe and secure workplace to its all employees
and workers. Top-level management of business responsible to for good health and safety of
employees.
Environmental law: This is another key legislation which a new business should have adhered in
its workplace. Basically, a business responsible for never conducting such activities within its
daily operations which can negatively affect to the natural environment (Fisher, 2018). That’s
why every new business should necessarily follow the concept of this legislation.
REGULATIONS

Getting licence: There is getting the licence is one of the key regulations within the United
Kingdom. Basically, according to this regulation, every person within this country responsible to
register its new business or venture in that of government which works for managing different
business in the local area. By following this regulation, a new business can be simply legally
formed.
Data protection: Data protection is another important regulation within the UK’s legal system, in
which top-level management of new business always need to protect different data of its
customers and employees according to this regulation. That’s why every new business or venture
should be followed this regulation as well.
STANDARDS
Quality management standard: Quality management standard is the key standard in this
country’s legal system, because this encourages different businesses or companies for producing
quality products and services only (Richardson, Mittelmeier and Rienties, 2020). That’s why
upper management of a new business need to produce quality products and services for selling
them in the selected market.
Resources management standards: This standard has formulated by the UK’s government for
saving country’s precious natural resources. Basically, most companies are always required to
use different natural resources for producing their products and services. So that, by following
this standard, any business can easily aware not wasting different resources in the production
process. In this situation, a new business needs to follow this standard as well to be fully legally
formed.
Different law which businesses have to follow
Different law of the UK is highly affecting to various businesses and ventures in this
country. Basically, top-level management of a company should always follow and adhere
different law its workplace for running its each business activity in legal manner (Spinak, 2019).
There is some prime law has been discussed below which highly impact businesses within this
country. Currently in the UK’s business law system, there are employment law, contract law,
copyright law and law of torts some prime lawn which every company have to follow.

Employment law
Employment law is very popular law, and most people and businesses within the UK are
completely aware about this law. Basically, this employment law has passed by the government
just because providing basic rights to employees and workers in different organisations and
companies. That’s why upper management of each company or business within the UK need to
systematically adhere the employment law, because it is necessary to provide proper rights to
employees. For example; an employee always has right to achieve equal growth opportunity, and
also an employee has right to work in a safe and secure. In this situation, employee can demand
from their upper management for fulfilling these needs on the basis of this employment law.
Contract law
Contract law is another prime law within the UK’s legal system. Generally, this law helps
to businesses for avoiding different conflicts in their business environment (Brewster, 2019).
According to this law, the management of every business need to sign a legal contract with those
all individuals and other ventures which anyhow connected with own business. For example;
mostly there are various employees works within a business, in which that business needs to sign
contract with all employees for avoiding various errors and conflicts in the workplace. Currently
many of businesses within the UK are taking huge advantages through this contract law. So that,
a person who is planning for opening a new business should fully follow this law to smoothly
run its new established business.
Copyright law
This is law generally contributes in making a safe and secure zone on own intellectual
and exclusive property. That’s why many of companies and businesses within the UK are getting
benefited to this law. According to the UK’s copyright law, every person and business has fully
right to register their own intellectual property in that governing office which responsible to
manage copyrights within the United Kingdom. There are thousands of businesses within this
country are taking huge advantages through copyright law. The government of UK has
mentioned different strict policies under copyright law (Kishore, 2017). On the basis of these
policies, if any person or business has found while copying and using any other person’s or
business’ original property without owner’s permission, then it will be faced different legal

issues, like; penalty and court hearing etc. This is the main reason that, copyright law is very
useful in nature to different businesses.
Law of torts
Law of torts is the next very useful law within the UK’s legal system which highly
support to different businesses and people within this country. According to law of torts, a
claimant mostly suffers all harm and losses, in this case, it is legal duty to that person for bearing
all liability who has committed the tortious act. That’s why this law in favourable to people or
businesses, in which top-level management within each company should take appropriate
decision towards taking advantages through this law.
Legal formats of businesses
There are generally two types of formats followed by the different businesses in the
United Kingdom. The first one is public and the second one is private, in which there are mostly
administration or upper management of a company has decided to choose one format of
businesses (private or public) according to their comfortability. Nowadays, there are thousands
of public limited companies and private limited companies runs their business operations within
the United Kingdom. In this situation, these both formats of businesses have been discussed
below with their specific advantages and disadvantages.
Private Sector: A company or business which comes under the private sector of the United
Kingdom always have to complete different legal formalities before run start running operations
within this sector (Marson, Ferris and Fletcher, 2019). For example; owner of business should
register its business as LTD (private limited company) in the governing business management
office. Then, upper management or owner of private business become responsible to take all
profit of business after paying taxation and liabilities. An owner within private limited company
is always able to take decisions in the business operations according to own mind-set. Businesses
or companies of this format not sells their company shares publicly. Generally, owners and upper
management within these private businesses provide their shares to only their family members,
close friends and people. Some major advantages and disadvantages of private sector businesses
has been mentioned below;
Advantages

 The owner of a private business always has opportunity to achieve all profit.
 Business owner within the private sector no need to involve different people in the
decision-making process.
Disadvantages
 Can’t be sold shares at the public stock exchange.
 A private business or company always gain a limited growth.
Public Sector: According to the UK’s business law, there are a person need to fulfil different
legal formalities while opening a company in the public sector as well. The major different
between private limited company and public limited company is, a public company always sells
its share in the market publicly, but a private company not sells it shares publicly. A public
limited always has higher growth opportunity in the comparison of private company. A person
who want to start its business or venture in the public sector always need to register its new
business in the ‘companies house’ of the United Kingdom (Crane and et.al., 2019). The
companies house generally established by the UK’s government for perfectly managing different
public companies in the country’s business environment. There are some key advantages and
disadvantages of public limited company has been discussed below;
Advantages
 A public company always has higher growth opportunity than private company.
 Companies within public sector can easily raise their share capital by lots of existing and
new investors.
Disadvantages
 Decision-making process mostly takes too much time in a public company due to many
board members.
 A public company mostly have to face different conflicts in its daily operations due to
large scope.

Evaluation
There are management within many companies uses various ways for systematically
manage and get funded their business operations. Basically, appropriate management and
funding sources are always positively affected to a company or business within public and
private sector. There are some main methods and ways discussed below which generally uses by
various enterprises and organisations.
Limited companies: These companies use different management strategies for properly
managing their business operations (Irianto, Cornelis and Hawula, 2020). On the other side, there
are bank loans, financial institutions etc. major sources of funding to these companies. For
example; Tesco and Iceland foods ltd.
Social enterprises: A social enterprise not works for earning huge profit in the market. The main
motive of social enterprises is to run different productive operations in the welfare of society.
There are donation and charity some key sources of funding to these enterprises. For example;
NHS (national health service) organisation.
Corporations: A corporative business always formulated by two or more than two people or
businesses for achieving decided outcomes. These businesses also have used bank loans,
financial institutions, and investors as funding sources to get funded. For example; BBC
Co-operatives: a co-operative is basically a legally formed entity which mainly owns by group of
people. Co-operatives also uses various funding which has used by a common venture or
business, like; bank loans, financial institutions, etc. For example; Central England Co-operative
limited.
PART 2
Case 1
Before 2015, the Orange computers ltd store has singed contact with Gordon, that this
store can provide the annual salary of £10,000 to Gordon with 9% commission payment. But due
to 2015’s cut throat market competition, the upper management of orange computer ltd store said
to Gordon that, he needs to accept its commission only by forgo its annual salary for 2015, 2016

and 2017. At the end, Gordon was ready to accept only commission (Hamilton and Webster,
2018). In this case, Gordon has full right to claim against its company orange computers ltd
store, because this store has done great business after 2016, because on that time market
conditions was become much better than previous year 2015 due to economy boost. So, due to
great earning in 2017, orange computers were responsible to again provide salary and
commission to Gordon which was signed in his contract of employment. With the support of
contract law, Gordon can claim against its company, because orange computers ltd store has
breached the contract law and employment law as well.
Case 2
In the case of Janet and Virgin media, there are Janet has should use consumer law of the
United Kingdom for claiming against Virgin media. Basically, this internet provider company
has not provided its services to Janet in ethical manner. Its engineers are not working properly,
so Janet has faced lots of difficulties. There are Janet ready to pay £35.00 per month for the
purchase and installation. But now Janet want to reduce this rate due to 3 weeks delay of
installation. In existing case, the Virgin media has completely breached the contract law. There
are engineers of this company could be installed internet 3 weeks ago on selected date, but they
have not played their job role properly. So that, Janet can claim against Virgin media on the basis
of contract law.
Case 3
In the case of Blackhorse limited company, the company have to use contract law for
systemically dealing with the other party in the court (Yilmaztekin, 2019). There is decision of
bad debt reduction is completely against the business law. So that, upper management of claim
against the next party for solving its existing conflict which has raised due to improper
management of bad debt. On the other side, the company has right to show its previous business
transitions in the court for protecting its business from informal business act.
CONCLUSION
It can be concluded that there are business law plays an excellent role within the United
Kingdom for making existing business environment completely ethical. There are various key
legislation, regulations and standards has been perfectly mentioned above in this report which

can support to companies for legally running their business operations in the UK. The United
Kingdom has created different strict policies also for only those people and businesses which not
adheres different legislations and regulations in their daily operations. For example; according to
the government of UK, if any business or person has found while violating business law, then it
will be panelised. This is the main reason that, most companies and businesses within this
country fully adhere business law.