Comparison and Evaluation of Legal Advice Sources

This assignment report compares and evaluates various sources of legal advice and support. It explores the concept of business law in the UK, covering legislations and regulations controlled by the House of Lords and the government. The report highlights the importance of laws in resolving disputes and provides examples from a case study involving a company's use of winding up methods to address creditor issues.

BUSINESS LOW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Description of sources of laws in UK...................................................................................3
P2. Explanation of role of government in the preparation of the laws as well as how common
law is applied in the justice courts..............................................................................................4
M1 an evaluation of the effectiveness of the legal system.........................................................5
TASK 2............................................................................................................................................6
P3 . Impact of Contract law, Employment law and Company law in business sector................6
M2 Differences between legislation, regulations and standards, leading to the analysis of their
potential impact upon business...................................................................................................6
TASK 3............................................................................................................................................7
P4 Different types of organisation .............................................................................................7
P5 How various business organisation are managed and funded ..............................................8
TASK 4..........................................................................................................................................10
P6. Solve disputes of different cases with appropriate case laws with legal solution..............10
M4.comparison and evaluation of the different sources of legal advice and support...............11
CONCLUSIONS ...........................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The business law consists all the laws that are needed to be followed by the organisations
and businesses. It includes different kind of laws that states about how to start, buy, manage and
close any business entity(Vagts, Dodge and Buxbaum, 2015). It is also known by the
commercial law that helps in dealing between the people and commercial matters. Eventually
business laws helps to the businesses in solving the legal disputes. Herein, the project report
different sources of laws in the UK are mentioned as well as role of government in preparation
of law is described. Apart from it, the main objective of the project report is to suggest new
companies about the different kind of rules and regulations that are need to be applied by them.
For this purpose the Global Solicitors company is selected that is a law firm which provide
guidance and awareness to the companies about the laws and helps in the solving the disputes.
TASK 1.
P1. Description of sources of laws in UK.
The United Kingdom of great Britain consists four countries which are England, Wales,
Scotland and Northern Ireland. Some law are applicable in whole UK and some applicable on
particular countries. Eventually, there are four sources of law in the UK that are as follows :
legislation, common law, European union law and European convention on the human rights.
The description of these sources is mentioned below:
 Legislation- Legislation is a kind of law that is created by the legislature. The main
legislature is the UK parliament that is located in the London
(Schwartz, Furrow, Greaney, Johnso and Stoltzfus Jost, 2013). This body has the power
to pass all the rules and laws which are applicable in all four countries. This UK
parliament includes house of commands and house of lords. The house of command
includes 650 members and house of lords consists 800 peers. It is a primary source of law
and it has multi pal purposes like to regulate, to authorize, to enable etc. The Global
Solicitors company is responsible to make aware to the new companies about this source
of UK law.
 Common law- The legal system of the UK is a common law and because of this
decisions of senior courts become the part of this law. As well as due to this law is an

invention of the English courts. However the main purpose of this law is to ensuring that
law remains “common”. As an advisor of the the law company it is responsible to suggest
companies about the common laws.
 European union law- The United Kingdom is the member of the European union and
due to this the European union takes the priority over the UK law. This law consists
various kind of economic and political policies. As well as this law is the main source of
the UK law after the legislation.
 European convention on the human rights- Due to member of the council of the
Europe, the united kingdom is the signatory of the European convention on the Human
rights. The Human right act 1998, that implemented in the October 2000. The main
purpose of this act is to enables all the courts of the UK in protecting the rights which are
identified in the European convention on the human rights(Park, 2012).
So these are the main four sources of the laws in the UK. The Global Solicitors company is
responsible to aware all the new companies about these four sources so that they can make the
policies and plans accordingly.
P2. Explanation of role of government in the preparation of the laws as well as how common law
is applied in the justice courts.
The government of any country plays an important role in the process of the law making.
Herein, the aspect of the United Kingdom, their laws are formed with the support of the House of
common. This community is very crucial for making of the different types of laws in the UK.
Herein, some roles are described below which are played by the House of common during the
process of the law making:
First reading- In this aspect simple drafted bill is presented by the civil lawyers
instructed by the government(Posner, 2014).
Second reading- The second reading phase is related to the discussion among the house
of commons.
Committee stage- The committee is responsible to make changes in the presented draft
and this committee also read all the concepts of laws to evaluate both aspects negative and
positive.

Report stage- The report stage comes in the action if above committee makes any
changes. If committee stage does not make any change then, this stage does not come into the
action.
Third reading- In this stage of reading, voting is done by the different members as well
as to proceed the next stage.
Proceeding of house of lords- Herein, if house of lords pass the bill then the next step is
possible otherwise in if house of lords do not pass then it is sent back.
Royal ascent- It is important to take the royal ascent to pass any bill under the royal
ascent act 1961(Scholes, 2015).
So it is the role of the government of the United Kingdom that is very crucial to encompass any
law or rule.
Application of the common law and statuary law in the justice courts:
The common laws are those laws which are prepared on the basis of past decisions. These
laws can be change as per the need.
On the other hand, the statuary laws are the kind of laws which can not be change apart
from the house of lords under royal ascent act 1961. Basically, these laws are prepared by the
parliament.
Herein, some cases are mentioned below to support how common law and statuary law
are applied in the justice courts:
(CASE LAW) matt Jacobs vs Henry:
Herein, this case of matt Jacob and Henry the court took the decision on the basis of the
statuary law that mention about the right of every person to speak.
(CASE LAW) Hoggard vs Lewis:
In this case court took the decision on the basis of the previous case like case in the
Australia. So it was based on the common law.
The both above mentioned case states that court justice court considered both the laws
including common and statuary laws.
M1 an evaluation of the effectiveness of the legal system.
The legal system of any kind of country must be fair and effective because it is the basis
of justice. In the absence of the effective legal system it would be difficult to provide right justice

to the general public. Herein, the aspect of the United kingdom, the legal system of law is
effective and all major decisions are taken by the house of lord. As well as government of UK,
supports in the preparation of the laws with the help of the house of lord. The Global Solicitors
company is responsible for maintain an effective legal system for newly established companies.
TASK 2.
P3 . Impact of Contract law, Employment law and Company law in business sector.
It is important for a newly started business to follow all the rules and regulations
effectively. There are a wide range of laws like contract law, intellectual property law, company
law, employment law etc. (Biondi and Zambon, 2013). All these laws play a crucial role in the
businesses. Among these laws mainly three laws impact to the companies which are: contract
law, employment law and company law. Herein, some impacts of these laws on the business are
mentioned below:
Impact of contract law on the businesses:- This law is helpful for the companies to
provide guidelines to analyse which contracts are legal and which one are not.
As well as it helps to informing about the legal bindings of any agreed contract.
Impact of employment law- The employment law enforces to the companies to adopt
various acts for welfare of the employees like minimum wages acts etc. Additionally, this law
provide guidelines to the companies about how to treat with the employees effectively.
Impact of company law- This act is helpful in offering the guidelines to the companies
for raising the funds from different sources. As well as it provides a set of rules for
commencement.
So these are the impact of the different laws on the business. Eventually, it is necessary
for the companies to implement these laws otherwise these may impact negatively. The Global
Solicitors company can suggest to the new companies about the impact of these law on them.
M2 Differences between legislation, regulations and standards, leading to the analysis of their
potential impact upon business.
The legislation, regulations and standards are different from each other as well as they all
impacts to the businesses in different ways (Svantesson, 2016). The regulation states to the
specific requirement that are used in different forms such as industry specific regulation. On the

other hand, legislation is a directive proposed through any legislative body. So basic difference
between these two is that regulations are specific purpose related and legislations are not. Apart
from both, standards are the principles behind the work which are not mandatory to follow. All
these three terms impacts to the business like regulation forces to the companies and industries to
follow various legislations. Same as legislation effects to the business to adopt various kind of
acts regarding to the employment safety and for health. Apart from it, the standards impacts to
economic environment of the country which ultimately effects to the business. Herein, the
United kingdom standards play an important contribution in the UK economy.
TASK 3.
P4 Different types of organisation
The concept organisation states that two or more people gathered together in order to
accomplish common goal or objective of firm. One of the main decision in every company
undergoes i.e. how the business should be structured. Each organisation contains some legal
configuration which defines rights and liabilities of participants in its ownership, control,
personal liability, life span, financial structure and many more(Allen, Kraakman and
Subramanian, 2016). There are several kinds of organisation which differ from each other in
terms of their formation which is described below:
Sole Proprietorship
It is considered as one of the simplest form of business entity as it signifies that only one
person is responsible for all company's profits and debts as well as day- to- day responsibility for
running business functions . Along with this, an owner faces unlimited liability i.e. creditors of
business may go after personal assets of owner, if the firms fails to pay them. The sole
proprietorship form is usually adopted by small business entities. Moreover, its main benefit is
that business owner is able to make all the decisions and also allows them to maximum control
over their entire management functions.
Partnership
Under this business type, two or more people share ownership of single business as the
partners contains legal agreements regarding sharing equally company's profits and loss, roles
and responsibilities. It is relatively easy to establish, however it require appropriate time to invest
in a partnership agreement. Along with this, this form of business enable the firm manager to

make effective decision as it allow them to adopt new and creative ideas or opinions from
different individuals. As partnership is classified into two types i.e. general and limited liability
partnership. Moreover, it consist limited partnership, where one partner contains full control
over its operation whereas the other person contribute towards the attainment of profit.
Corporation
In this type of business organisation, it has a spate legal personality from its owners and
ownership in a stock corporation is represented by shares of stock (Crane and Matten, 2016).
Moreover, owners (stockholders) enjoy limited liability but have limited involvement in
company's operation. The board of directors, an elected group from the stockholders controls or
monitors entire activities of corporation. Moreover, corporation has a life of its own and does not
dissolve when ownership changes.
From the above mentioned various types of business organisation that contains their own
features and ways of formation which made them different from each other. However, Global
Solicitor is a sole proprietorship i.e. only one individual runs the whole business function and
liable for all profits and loss. At same time, it is well known for its management which enable
them to attain high productivity and profitability.
P5 How various business organisation are managed and funded
Different organisation has unique purpose and their way of management and method of
raising fund is different from each other. The various kinds of businesses are as follows:
Sole proprietorship
As the name suggest, sole means only one person who directs and operates the entire
function. Along with this, it report business income and losses on their personal tax return and
are personally responsible for business's debts and legal obligation. However, it is easy to set up
and manage as they come up with a host of legal, financial and business risk. As a sole
proprietorship, owner has complete control over business decisions and priorities which reduces
the conflicts of interest among partners and enable the company's proprietor to maintain or
handle its functions or units smoothly. Moreover, it raises fund from personal savings and
consumer loans which becomes the threat for owner in terms of any type of failure of business.
Partnership
This business occur with the presence two or more partners who agrees to each others
regarding equal share of profit, loss, roles and responsibilities. Like the sole proprietorships, law

does not distinguish between business and its owners. However, partnership is reasonably easy
and inexpensive to set up and also it is formed by two or more partners which increases the
ability to raise fund. It allow the partners to share profits and losses as well as enable them to
make decisions together within the business structure. At the same time, it becomes challenging
to owners in terms of different opinions or views which generate disputes and hamper the
working condition of organisation as well as each partner is liable for the decisions made and
also to actions made by business partner. Their source of finance is personal savings, retained
profits, working capital, sale of assets, bank loans etc. due to which they establish their firm in
order to obtain maximisation of profit.
Corporation
The law regards corporation as an entity separate from its owners. It has its own legal
rights, independent of its owners as it can sue, be sued, own and sell property and sell their rights
of ownership in the form of stocks. However, it is fully managed by shareholders who have
limited liability and only accountable for their investment in stock of company that creates better
understanding among each other and each of them can contribute their full effort towards the
accomplishment of organisational goal. Moreover, it raises capital from investor, venture
capital, bank loan and also shareholders can sell their stock that ensure secure of additional
funding for growth.
M3 Advantages and disadvantages of various types of organisation
Some of the pros and cons of different kinds of organisation as re as follows:
Sole proprietorship
Pros
 Easiest and least expensive form of ownership to organise. The business is easy tom dissolve, if desired(Solomon, 2017).
Cons
 It has unlimited liability and are legally responsible for all debts against the business.
 It takes time and sometime it is risky to attract high – caliber employees.
Partnership
Pros

 It is relatively easy to establish, however time should be invested in developing
partnership agreement. It enhances the potentiality to raise funds as it consist two or more owner.
Cons
 Partners are jointly and individually liable for the action of other partners.
 It has limited life as it get ends with the withdrawal or death of any partner.
Corporation
Pros
 It can raise additional funds through the sale of shares. It can deduct the cost of benefits as it provides ton officers and employees.
Cons
 This process requires more time and money compare to other from of organisation.
 It is monitored by federal, state and local agencies.
D2 Critical review and evaluation of different types of business organisation
As per above explained various types of business organisation like sole proprietorship,
partnership etc. , each of its main goal is to earn profit but they contain their own purpose, size,
sources of fund and many more which differ them from each other. However , the effective
business organisation is corporation as it provide the freedom to its shareholders and they can
generate additional funds fro their growth.
TASK 4.
P6. Solve disputes of different cases with appropriate case laws with legal solution.
The disputes can be raise due to many reasons and these can be resolve with the help of
the different kind of legal policies and structure. Herein, some cases are mentioned below to
understand about the disputes and their legal solutions:
Case- In this example of case, the development authority provide the cash to the
champion limited for building the premier league club for shifting. After the moving from the
place the champion limited company faced the financial issues and to overcome from the issues
they take the loan from different financial institutions. Due to more loans, now the company is
unable to pay the creditors and the dispute is regarding to the payment to the creditors.

Solution(Winding up method)- It is a kind of method that is related to the dissolving of
any firm due to lack of finance. This method includes selling of all the assets to make the
payment to the creditors(Craig and Campbell, 2012). Herein, the above case, after selling of
assets of the champion limited some amount remains after the payment to the all creditors. In this
situation the remaining amount can be shared among the shareholders. There are two types of
winding up methods:
Winding up by court order- In this winding, court give the order to the companies to
close the business due to lack of finance. As well as companies have to follow the order of court.
Voluntary winding up- In this type of wind up, companies disclose the business from
own willing. The reason can be lack of fund to run the functions.
Judgement- In this case, the champion limited company adopted the method of winding up to
pay their creditors. Eventually, this method is not suitable for them because it closed their
business. They could apply below options:
The champion limited company should negotiate with the creditors to reduce the interest
amount on the loan
They should request with the creditors to pay after some time period.
M4.comparison and evaluation of the different sources of legal advice and support.
There are different kind of sources for the legal advice and support. Like in the
above case, they used method of winding up to solve their dispute of lack of credit. There
are two types of winding up method that are different from each other. Like winding up by
court order and voluntary winding. Both are different from each other. The court order
winding occurs when court give the order to dissolve. On the other hand, the voluntary
winding can be done by willing of the company. In the above case, the voluntary winding
method is used to pay the creditors.
CONCLUSIONS
From above project report it has been concluded that business law is a wide term that
contains a wide range of legislations and regulations. As well as law of UK is broad term that is
controlled by the house of lord. Additional, the government of United kingdom also contribute in

the preparation of the laws. Different laws impacts to the companies negatively and positively.
Apart from it this report conclude about the role of legislations in solving the disputes.

REFERENCES
Books and journals:
Vagts, D .F., Koh, H., Dodge, W .S. and Buxbaum, H .L., 2015.Transnational business
problems. West Academic.
Schwartz, R. L., Furrow, B.R., Greaney, T. L., Johnson, S. H. and Stoltzfus Jost, T., 2013.Health
law: cases, materials and problems. West Academic Publishing.
Park, W. W., 2012.Arbitration of international business disputes: studies in law and practice.
OUP Oxford.
Posner, R. A., 2014.Economic analysis of law. Wolters kluwer law & business.
Scholes, M.S., 2015.Taxes and business strategy. Prentice Hall.
Biondi, Y. and Zambon, S. eds., 2013.Accounting and business economics: Insights from
national traditions. Routledge.
Svantesson, D. J .B., 2016.Private international law and the internet. Wolters Kluwer Law &
Business.
Allen, W. T., Kraakman, R. and Subramanian, G., 2016.Commentaries and Cases on the Law of
Business Organizations: 2016-2017 Statutory Supplement. Wolters Kluwer Law & Business.
Crane, A. and Matten, D., 2016.Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Solomon, L. D., 2017.The privatization of space exploration: Business, technology, law and
policy. Routledge.
Craig, T. and Campbell, D., 2012.Organisations and the business environment. Routledge.