Business Law Report

This report provides a detailed analysis of UK business law, covering topics such as parliamentary sovereignty, lawmaking processes, and the impact of various legal areas on businesses. It also explores different business structures, their formation, and their advantages and disadvantages. The report concludes with case studies demonstrating the application of legal principles in real-world scenarios, including winding up a company and resolving contract disputes through alternative dispute resolution (ADR).

BUSINESSES LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
A) Discussion on the point 'Parliament is sovereign' and what is the importance of Queen's
Speech at the state opening of parliament...................................................................................1
b) Explain the role of government in process of law making.....................................................3
Use specific examples to illustrate how company, employment and contract law has a
potential impact upon business...................................................................................................5
TASK 2............................................................................................................................................7
Nature and formation of different types of business...................................................................7
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process. .........................................................................................9
Advantages and disadvantages of company over partnership firm...........................................10
CASE 1..........................................................................................................................................10
CASE 2..........................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business law is the term which cover all those laws that helps to organise and mange to
run a successful business organisation. It is important on daily basis because it provide that
essential outline which is helpful to commence, execute and wind up the activity of any business
association. At present, it can be said that because of business law day to day decision has been
improved. In result it can be seen that profit have been enhanced due to business law. It is also
known as mercantile law as well as commercial law (Ashcroft, Ashcroft and Patterson, 2016). It
have been beneficial in increasing the overall knowledge regarding various tax obligations,
different litigations also various non profit oriented law which is being complied in business
organisation. Some of the special branches of commercial laws are contact, intellectual property,
company, employment law etc. which plays the necessary role in concluding any kind of
activities.
As having better understanding regarding business law it is necessary to provide all
relevant information as per the given guidelines. Here, in this report the detail discussion on the
point Parliament is sovereign will clear the doubt regarding it. The information related to various
sources law will tell that how policies are being formed in UK to maintain its decorum. The
discussion on incorporated and unincorporated business organisation will describe its uses that
how it is funded and managed. And it the end the cases will be solved according to the relevant
laws, rules and regulation etc. Thus, Alternative Dispute Resolution might play important role
while solving dispute.
MAIN BODY
TASK 1
A) Discussion on the point 'Parliament is sovereign' and what is the importance of Queen's
Speech at the state opening of parliament.
Every were in the world any authorised body have to play the role of formation of any
laws or even maintaining peace in the country. It is very important that how country manages
that on regular basis. In the same manner, Parliament have that power within UK (Backer, 2015).
It is known to everyone that 'Parliament of UK is sovereign' because it is not necessary for all the
people that they should follow every laws which have been commenced by Parliament. At
present no one have the power to challenge House of Parliament. The sovereignty process have
1

been commenced since 13th century because law had passed in that century. If anyone tries to go
against the policies of parliament then defaulter is liable for the punishment. Even it can be
included that Supreme court also don't have such kind of power that they can over rule the
guidelines of legislation. The Parliament of UK covers four different nations and they are
England, Scotland, Wales and Northern Ireland. It can be easily understood that powers and
authorities which Parliament have cannot be found with other law making bodies in UK.
The speech of Queen is delivered in the month of October & November just to represent
House of Lords. The speech of queen in so powerful that none of the political party wants to
prepare its agenda before the speech (Basedow, 2017). The day when speech is delivered, that
day is known as the opening session of parliament every year. The main reason behind delivering
speech is to provide guidelines that how activities is to be managed through out the year. The
supervisory role in preparing the speech is mainly performed by honourable Prime Minister. The
speech will relate all those international agenda which is to be performed during the year and
also the state visits by the monarch will be mentioned in that. But it is necessary that speech mus
be be approved by the cabinet. Once speech is over the Queen leaves the parliament and from
that moment the first session of parliament is started.
Explain in detail about Various sources of UK law.
There are various sources of UK which are commenced everyday. As United Kingdom
covers four country i.e. England, Wales, Scotland and Northern Ireland so, it is necessary that
laws are formed according to the demand and nature of this countries. It is mandatory that any
laws which have been commenced by these bodies must be followed by every person wither they
are from UK or not but they must follow (Bayern, 2016). The main reason behind taking the help
of multiple bodies to enforce law is that, it can enhance the rules and regulation and even burden
will also not be in the hands of Parliament only. It has been beneficial because best suitable laws
are proposed under it. The detail description of sources of UK law have been described below:
Statutory law: This is the form of constituting any law within United Kingdom. Here,
role of government is counted the most. It is compulsory that laws must be followed by everyone
which have been composed by legislation. This laws are to be passed from the House of
Parliament where lengthy structure is followed. In statutory law formation, the final approval
must be obtained from crowned person I,.e. either queen or prince. Once, law is passed then no
2

one can challenge it as it must be followed. The main reason behind forming law through this
process is just because of it form law by taking the overview of current market situation.
Common Law: The process of forming law under common law is done by judges of
court. Here, judges need to declare result on the basis of critical situation which arises because of
the criminal or civil activity. The main concept of this law says that it main purpose to enforce
those law which have been not commenced by legislation or by statutory law. It is the obligation
that people must obey the rule and regulation which have been commenced by common law
because its main duty is create peace environment within the boundary of UK. If anyone doesn't
stay within the given guidelines then actions are taken according the level of default. Common
laws are mainly commenced for short period of duration which can be changed at any period of
time (Beatty, Samuelson and Abril, 2018).
European Union law (EU): It is one of that type of law where main focus is on political
and social factor. It is necessary any law which have been proposed by European law must be
enforceable because even parliament also do not have the authority to overrule any laws of EU.
The power for commencing law in the premisses of UK was given since the end second world
war so that any kind of violence cannot be created again.
European Convention on Human Rights (ECHR): It is that one of that body in UK
which form enforce new laws. The laws which are mainly prepared by ECHR is related to rights
which must be given to everyone. Even, it is compulsory that ECHR laws must be obeyed by
everyone and laws are always equal for all the people. So, it in necessary that it must be
followed. The rights of general people are protected under Human Rights Act.
b) Explain the role of government in process of law making.
Their is always a vast role of government while commencing any kind of law because
they are the one who have detail knowledge regarding the current situation of a country. So, in
accordance to it laws are prepared (Cleaveland, Dutcher and Epps, 2015). The main role is being
played by the government of central level. Here, in case of UK, parliament plays the important
role in commencing business. They have a length process to enforce any bill as a law.
Parliament have been divided into two parts such as House of Lords and House of
Common. At the time of commencing law, main role is always played by House of Commons
(HOC). There are 600 members in HOC and 800 peer members in House of Lords (HOL). All
the members are given instruction that they need to consult general public and after taking there
3

point of view,bill is proposed to the House of Parliament. Proposed Bill is also known as drafted
bill. Once, Bill is prepared by the members of House of Common it is send for the processing of
commencing new law. The detail procedure is described below:
First Reading: It is the initial stage, where bill is published as a first paper for the first
time. Here, member just to see the bill which has been proposed. If member think that bill be
entertained in next level then then forward it next process (Cowan, 2018).
Second Reading: The next stage is known as second reading where member need to
show active participation. They must ensure that discussion have taken place in detail where
each and every points have been discussed in detail. If members are satisfied then they transfer it
for next process.
Committee Stage: It is the third stage of commencing law in UK. Here, members of
House of Common need to do debate on each and every point of bill. If they thinks that any of
the point is not appropriate then amendment is done. It is one of the important stage of
constituting any law within UK.
Report Stage: It is the fourth stage of making law in UK. It is not such important as
other but sometimes it becomes very crucial. The main use of report stage is when amendment is
to be done. It is in the hands of the representing member that how they do changes according to
the command of committee stage.
Third Reading: it is the fifth stage of passing law for the process of making new law or
Act. It is one of those stage where major discussion plays vital role. Once debate is completed
then voting process starts. If voting is in the favour then it can be understood that resolution has
been passed, so it can be forwarded to next level i.e. House of Lords (Cox, 2015).
House of Lords: This is the stage where 800 peer members need to take part. Firstly,
they conduct the parliament session where everyone must present. After that, discussion on the
proposed bill take place. Once, discussion is over it is necessary to find result that whether bill
should be forwarded to it can be still amended. So, it can be understood that in this stage if
changes are to be done then it is sent back to House of Commons else, it can is send to final stage
i.e. Royal Ascent.
Royal Ascent: The stage where permission is granted to proposed bill, that it will be one
of those bill which can provide benefit to UK as well as to general public. Here, the major
4

involvement can be seen of crowned lady. It is mandatory that every laws are being passed
through this process as it is written in the law of Royal Ascent Act, 1961.
Above mentioned steps are important while commencing any law in UK and if any one
don't follow this then it will not be counted as a Law. The law is applicable for general public
from the date of obtaining Royal Ascent. It is be easily sad that role of government is huge in
making any law (Hazels, 2015).
How statutory and common law are applied in the justice courts.
It is very necessary that how court understand the situation of any law because it is
important that to declare the decision according to the raised condition. Specially, two laws are
very important to from Justice courts points of view and they are Common law and Statutory
law. Lets understand in detail that how this two laws are being applied in Justice court and what's
its main use.
Common law in Justice Court: Common law is defined as the condition where laws are
constituted according to the desire situation. As, this laws are mainly prepared by Judges of
Supreme court, then it can be said that hearing should also held in Justice court. Here, judges
check the condition that what situation is demanding from them to maintain peace and silence in
the country. The judges checks the past relevant matter and concluded judgement and then after
they mark their decision. Once, decision is declared it becomes new law. This is the way through
which common law is implemented in Justice Court (Kapottos and Youngner, 2015).
Statutory Law in Justice Court: The decision which are declared by overviewing the
situation is known as statutory law. The judges of supreme declare their decision by studying the
case matter. Statutory law is that condition where laws are constituted by Parliament. It is very
beneficial for Justice court because they just need to declare their decision by studying the case
and relevant law.
Use specific examples to illustrate how company, employment and contract law has a potential
impact upon business.
In every business, the role of Business law increases because it tells that how business
activities can be conducted successfully. It is very important for earning maximum profit that
how investor understand the situation and then how it take its benefit. As, there are various laws
under commercial law but major impact is always of company, employment and contract law
because they are the one which is being used on daily basis in an organisation. So, it is important
5

that how Board of Director, Company Secretary and Shareholder takes their decision according
to these laws. Their decision will have major impact on the activity of a organisation because
single wrong decision can be change the daily routine of a company. Some of the major impacts
of this laws have been discussed below.
Company Law: It is defined as law which is written under Companies Act, 2006. The
main role of this law is to guide that how company can conduct their day to day activity so that
maximum amount of profit can be earned easily (Mann and Roberts, 2015). The main impact of
company law upon any business is that it makes any organisation to work in a systematic manner
which increases the overall cost for a company. Even on regular basis it do updation and because
of that organisation need to change its working style and consumes unnecessary time of any
company. This are some of the impact which can be seen on regular basis within a business
organisation.
Contact law: This is the law which tells that how any work should be conducted. It is
very necessary for any organisation or even for individual that how they manage to complete the
activities which have been mentioned in the agreement. One thing is clear that on one is allowed
to terminate the contract in-between because in that condition damages are to be paid by
defaulter. When example is taken from companies point of view it can be said that it have a
huge impact on regular basis. Because, it is also clear for business organisation that how they
complete the term and condition of contract because it can if company fails to do so that it will
show the major impact on its share (Miller and Jentz, 2017). Even it will help company to
manage their work according to the guidelines of a contract. So, this are some of the impact of
contract law on any businesses.
Employment Law: The law which helps to protect the rights of employee or even which
provide guidelines that how to behave with worker is called Employment law. It is one of those
which must be followed by all those organisation where employment law applies. If it is found
that, companies are not following this guidelines then heave penalties are being imposed on
organisation. The main impact of company law on business is that it gives the guideline that how
much amount of payment should be done to employee's who are working in organisation. Even,
there is written in employment law that how business organisation should manage the safety of
their employee's. If they doesn't do that they penalty can be imposed and in this case penalties
are of harsh nature.
6

TASK 2
Case Study: The given case is related with three partners Jane, Penny and Marie whose
has been friend since the studying in University. They had a partnership firm named as JPM
publishing but now they want to expand that organisation on a higher node. So, in this they
required heavy amount of money and for that they are taking the help of their accounted who
looks after the account of a company. In return, their accountant have suggested them that they
can convert their partnership firm into limited company. For that accounted is going to explain
the different types of association and what are their possible ways to raise capital with its major
impact.
Nature and formation of different types of business
It is being said that there are various types of association and it is up to the willingness of
investor that how they want to manage their business activities. Every company have its own
features which must be kept in mind because it is the key point to achieve success. Some of the
types of organisation with its formation process have been discussed below.
Sole Proprietorship: It is one famous form of business organisation because there are no
such requirement of legal formalities in this. Always, investor shows their interest in sole
proprietorship because there is no such requirement of documents any it is easy to commence. It
is easy to setup where documents will not be required by investor must keep in mid that from
laws point of view that it will never get the legal existence (Orlov, 2016).
Partnership: There are two types of partnership and they are general partnership and
limited liability partnership. In general partnership, the liability of investor is always unlimited
where as in limited liability partnership the liability is secured of partners except one partner i.e.
general partner. The concept of starting partnership firm was just to ensure that many people can
come together and after that they do business at small level. The legal process that need to be
followed by partnership firm at the time of commencing business is:
 Firstly, they need to prepare a legal contract (partnership deed) with the mutual consent
of every partner.
 Once, deed is completed then documents must be submitted to Companies House.
 Even, partnership firm need to register themselves under Partnership Act, 1891.
Joint Venture: It is one of that form of business where many organisation come together
for earning maximum amount of profit. Here, it can be said that it is mainly incorporated for
7

shorter period of time. To incorporated Joint venture special motto should be there and
permission should be obtained from Companies House. The legal process of incorporation is:
 firstly, name of authorised person must be appointed,
 Name of all those organisation must be addressed and new name must be selected.
 Then, Memorandum of Association and Article of Association should be designed
 Once, this process is completed then all documents must be submitted to Companies
House and must be registered under it (Persadie and Ramlogan, 2015).
Limited Liability Company (LLCs): It is the modern formate through which
organisational work can be done. This form is business is incorporated just to secure person
assets where combination of partnership and joint venture can also be seen. Although, there are
lots of legal formalities in LLCs but then also it has been very successful for investor. Even it do
get legal existence and enjoys the rights of perpetual succession. The process through which
LLCs can be formed is:
 Firstly, company need to prepare the list of members who are going to invest in the
company.
 Deed must be prepare which is subject to not transferring of share to outsiders.
 Then, Memorandum of Association and Article of Association must be prepared as it will
tell that what company will do in future to earn profit.
 Once this process is completed then all the documents should be submitted to Companies
House and must be registered themselves under Companies Act, 2006.
Corporation: It is the form of business where unlimited investor can take part into it.
The main motto of establish this form of business to provide freedom to every investor. There
are lots benefits which have been only given to corporations (Rohlin and Ross, 2016). Here,
company enjoys the right of perpetual succession which means entrance and exit of any member
will not effect the validity of a company. There are many formalities that need to be followed by
corporation and if those formalities are not completed then penalties are imposed. The major role
in corporation are always being played by preference shareholder, equity shareholder, debenture
holder and even Board of Directors too. The legal process that need to be followed by
corporation at the time of formation is:
8

 Name of organisation must be decided which should be checked online whether similar
name is found or not and if it not found then permission is given to register under that
name.
 Address of Head Office must be mentioned so that random checking of annual accounts
can be done at anytime by authorised department.
 After that Memorandum of Association and Article of Association are to be presented.
 Once this process is completed, then first director and shareholder should be selected so
that power can be given to them to manage all the activities in future (Scheuer, 2015).
 Then it every documents must be submitted to Companies House.
This are some of the types of business organisation where all of them have separate
formate to incorporate it.
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process.
Unincorporated Organisation: These are those types of business organisation where
government doesn't give legal existence. The purpose of this types of organisation is that it
allows the investor to work freely without giving unnecessary trouble in form of formalities
which need to be done by incorporated organisation.
Advantage and Disadvantages of Unincorporated Business.
Advantages:
 There is no legal formalities at the time of commencing. No requirement of preparing Annual report, conducting AGM (Annual General Meeting).
Disadvantages:
 Opportunity are limited (Stim, 2018). Ownership cannot be freely transferred.
Incorporated Organisation: This are those types of business where huge amount of
capital is required. The main objective behind commencing incorporated organisation is that to
provide freedom to shareholders. Eve many opportunity are provide to this types of organisation
whether it is perpetual succession or capacity of sue and be sued.
Advantage and Disadvantages of incorporated Business.
Advantage:
9

 Work can be completed in a systematic manner so that result can be obtained in positive
way. Decision making ability can be improved as there is very few chances of taking negative
decision.
Disadvantage:
 It always have a expensive process which increases the cost.
 There are lots of legal formalities that need to be completed (Cowan, 2018).
Advantages and disadvantages of company over partnership firm.
Everyone need to know that what are the advantages that company gets and partnership
don't because it helps to know that why it is important on to incorporate a company rather that
partnership firm. Even there are disadvantages too and they all are mentioned below:
Advantages:
Every time when discussion will take place regarding advantage of company over
partnership firm the point perpetual succession will raise because this is always given to
company not to partnership firm. Even entrance and exit of any member doesn't effect the
organisation but when any of the parter left the premisses of partnership firm then deed must be
changed and again registration process need to be held.
Disadvantages
The disadvantages of company can be explained that member of a company do not get
the opportunity to include profit and losses while filing annual return where as every partner of
partnership firm enjoys that. Even company need to follow long commencement process but
partnership firm doesn't need that (Hazels, 2015).
CASE 1
The case study of case one explains that there is dispute between creditors and the owner
shareholder of a Champion Ltd. The dispute have across because Champion Ltd is unable to pay
the loan amount which the have taken from various banks. In this situation, creditors wants to
file a petition report against Champion Ltd that they are not doing the the payment of creditors
and the y only way to recover from those types of company is winding up.
10

Winding up: This is the process where company need to end their day to day activity just
because they are found as defaulter. It is one of that method where condition company is not able
to survive in the competitive market. Winding up process can be conducted from two different
methods and they are:
1. Winding up by the orders of a court: It is one of the method of winding up where order of
winding up is passed by court. In this situation, court appoints liquidator who gets to
opportunity to sell the asset of defaulter company. Once, assets are sold payment of
creditors is done and company is no more able to perform any business activities. After
paying the amount of creditors if anything remains that it is divided among the
shareholders (Winding up by the order of court, 2016).
2. Voluntary winding up: In this method of winding up the role is being played by board of
directors and shareholder. The process starts when directors take the decision that
company is unable to perform at a greater platform so it is better to close organisation
rather than taking loan from financial institution. Once board of director takes the
decision to wind up they call for a General Meeting to just to pass resolution because this
process must be followed as given in the guidelines.
The given case can be also be solved from various other ways too because winding up is
only not the method to do repayment of creditors. Champions Ltd to convince their creditors that
additional time should be granted to solve this situation.
CASE 2
From given case study of case two it can be understood that breach of contract had taken
place between Mr. Anderson and Amber Ltd. It was a contract between Amber Ltd and Mr.
Anderson that between both company and employee must inform at least before 12 month now
they are not willing work with each other. But Mr. Anderson didn't do that so it had fallen under
the category of breach of contract and now company wants to claim damages from Mr. Anderson
because their privacy can be affected in this situation.
Contract: The contract is a legal agreement which is done between involved party. This
document is required to complete the part of performance from either side so contract paper are
always given the top priority (Miller and Jentz, 2017). Contract are of two types such as written
contract and voluntary contract. But, court always give top priority to written contract because it
11

can be used as a valid evidence to prove defaulter a wrong person. If anyone don't follow term
and condition of contract, then breach of contract can arise.
Breach of Contract: The condition of breach of contract can arise only in that condition
when contract is valid. In void and voidable types of contract are not entertained. Here, condition
of contract is not fulfilled, so innocent party wants to claim legal damages and for that they want
to suit a case against the party who have breach the contract. Before, declaring any of the party
as defaulter it must be proved in court (Orlov, 2016).
As case of Mr. Anderson and Amber Ltd is not of that serious types and even proceeding
of court is always a lengthy. So, the best suggestion to them can be advised as following the
process of Alternative Dispute Resolution.
Alternative Dispute Resolution (ADR): This is that method of solving dispute where
involvement of court is not found. Still, it have received the legal certificate to do just because it
have been realising the pressure from court. There are three process to solve dispute under ADR
and they are:
1. Mediation: It is one of the simplest form of solving dispute where just advise are allowed
to be given to disputed parties. The role of solving dispute is being played by mediator. It
is necessary that mediator must not have any kind of relation with any of the party. If
there any kind of relation is found that then they are not eligible for appointment (Rohlin
and Ross, 2016).
2. Conciliation: This is the second process to solve dispute where main object to meet out
the term and condition of a contract. The one who is appointed is known as conciliator
who must be advise without favouring anyone.
3. Arbitration: The last and one of the expensive method to solve dispute through
Alternative Dispute Resolution is known as arbitration. The one who is appointed is
known as arbitrator. It is compulsory that number of arbitrator must be in odd number
because it will be easy to declare valid result.
As dispute was not of serious nature then the best suggestion that can be given to solve
dispute under ADR is conciliation. This one will be best because it will help meet out the term
and condition of a contract without involving many person.
12

CONCLUSION
From the file it can be easily concluded that there are various sources of forming law in
UK which is working on daily basis so decency can maintained. There are various types of
organisation but it is the choice of investor that where they want to involve themselves to earn
money. Company have various benefits compared other form of business and also there are
various source of raising fund in this. The cases tried to explain that it is not compulsory to go in
court for solving dispute because Alternative Dispute Resolution is also working for that.
13

REFERENCES
Books & Journals
Ashcroft, J. D., Ashcroft, K. and Patterson, M., 2016. Cengage Advantage Books: Law for
Business. Cengage Learning.
Backer, L. C., 2015. Moving forward the UN guiding principles for business and human rights:
Between enterprise social norm, state domestic legal orders, and the treaty law that
might bind them all. Fordham Int'l LJ. 38. p.457.
Basedow, J., 2017. BREXIT and business law. China-EU Law Journal. 5(3-4). pp.101-118.
Bayern, S., 2016. The Implications of Modern Business–Entity Law for the Regulation of
Autonomous Systems. European Journal of Risk Regulation. 7(2). pp.297-309.
Beatty, J. F., Samuelson, S. S. and Abril, P. S., 2018. Business law and the legal environment.
Cengage Learning.
Cleaveland, M. C., Dutcher, C. and Epps, K., 2015. Comparing Business Law in online and face-
to-face formats: A difference in student learning perception. Academy of Educational
Leadership Journal. 19(1). p.123.
Cowan, S., 2018. All change or business as usual? Reforming the law of rape in Scotland.
Cox, J. ed., 2015. Business Law. Oxford University Press. USA.
Hazels, T., 2015. Ethics and Morality: What Should Be Taught in Business Law?. Academy of
Educational Leadership Journal. 19(2).
Kapottos, M. and Youngner, S., 2015. The Texas Advanced Directive Law: Unfinished business.
The American Journal of Bioethics. 15(8). pp.34-38.
Mann, R. A. and Roberts, B. S., 2015. Business law and the regulation of business. Nelson
Education.
Miller, R. L. and Jentz, G. A., 2017. Business law today: The essentials. Cengage learning.
Orlov, V., 2016. Introduction to business law in Russia. Routledge.
Persadie, N. and Ramlogan, R., 2015. Commonwealth Caribbean business law. Routledge-
Cavendish.
Rohlin, S. M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from
new and existing business. Economic Inquiry. 54(1). pp.361-374.
Scheuer, L., 2015. The Legal Marijuana Industry's Challenge for Business Entity Law. Wm. &
Mary Bus. L. Rev. 6. p.511.
Stim, R., 2018. Music law: How to run your band's business. Nolo.
Online
Winding up by the order of court. 2016. [Online]. Available through:<https://www.gov.uk/wind-
up-a-company-that-owes-you-money>.
14