Introdcution To Law Project

Law project

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2 ...........................................................................................................................................2
TASK 3............................................................................................................................................3
TASK 4............................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The formation of a business starts with law and legislation and ends with legal procedures
as well. With this it is seen that in a business different legal acts and regulations are applicable
which are essential for formation and running operation of the firm. In the present report
discussion related with terminology and division of law is presented along with sources of law
and act of parliament (Adams, 2016). Along with this, issues related with gig economy and case
of Pimlico plumber and Smith Case is done. The step that are needed to register a company with
advantage and disadvantages, role of directors and concept of legal personality is defined with
analysis of a case. In last part of report a Pegasus a company is given advice on alternative
dispute resolution technique.
TASK 1
Introduction
Division of law
CRIMINAL LAW: this division of law deals with the offenses of serious nature that includes
injury, damages, assaults and battery to another person (Adams, 2016).
Terminology:
 Accused: the person who have committed a crime.
 Assault: an attempt to cause serious physical injury.
 Battery: unlawful use of force against another.
 Allegation: a claim by one parry to present the facts of case.
 Felony: a serious criminal offense which can be punished with death penalty.
CIVIL LAW
This division of law deals with protection of rights given to people by the constitution.
The case in this branch are related with civil wrong, quasi contracts etc (Adams, 2016). in this
punishment is give in form of imposition of compensation and minor terms of imprisonment.
Terminology:
Civil wrong: infringement of personal rights of a person.
Compensation: to pay a sum of money for any harm or injury caused.
Civil suit: a case other than criminal lawsuit.
Claim: a statement of relief desired.
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Sources of Law in UK:
Judicial president: the ruling pronounce in lawsuit by judge become biding with
doctrine of Judicial precedent and they can be referred by any judge in future cases (de Silva,
2017).
European Union: UK is a part of European Union so it also derives its law from EU.
The Eu law is applicable in UK as well, so in case of contradiction between two laws, the EU
law will always prevail (Adams, 2016).
Act of parliament: this is the man source form which acts and laws are made by the
parliament (Adams, 2016). Laws are made with consent of both houses of parliament and with
final consent of Monarch.
Act of parliament:
A new law or change in exiting law is made through act of parliament. An act is a bill that is
both, the House of Commons and House of Lords and then royal assent is given and it becomes
an act (What is an Act of Parliament, 2018). All acts that has been formed by parliament
together are referred as Statute Law in the UK.
Putting an act to force: the government is responsible to put an act into force ones they
are formed by parliament (Adams, 2016). The role of parliament is limited to formation of act
and to examine how well legislation have been implemented.
Changes to Act: changes in act can be made by parliament through passing another act
or by delegated legation (What is Secondary Legislation, 2018).
Conclusion:
With this it can be stated that UK law has two separate division of law one deals with
protection of rights and other deals with offense of criminal nature. The laws are made through
act of parliament (Adams, 2016).
TASK 2
Gig economy issue: this is an economy where jobs are flexible and organization hire
independent concentrates or freelancers instead of full time employees. They do not enjoy any
rights given to employees (Adams, 2016).
Employee:
An employee is a person who is employed by an employer in an organization and is
being paid regular wages or salaries (Adams, 2016).
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Self-employee:
A person who works for himself rather than working for an employer (Adams, 2016).
These type of people ear their income through conducting profitability operations such as on
contract or freelance basis.
Case of Pimlico v smith:
This was a case related with identification of employment status Smith in Pimlico
Plumbers as self-employed or employees. He was appointed as self-employed in the organization
and when he fell sick, he filled a case against the company for claim of unlawful dismissal, sick,
holiday pays and disability discrimination (Pimlico Plumbers Ltd and another (Appellants) v
Smith (Respondent), 2018). In this case it was held that as Smith was a self-employed he is not
entitles to any of the benefits and compensation from Pimlico.
TASK 3
Legal personality defined with case of Salmon V Salmon
In this case it was held by the court that business and its owner are separate from each
other. The Owner Salmon was separated from A. Salmon and Company Ltd. From personal
liabilities to creditors of company of which he was founder (Adams, 2016). The fact of Separate
Legal entity was established after judgement of this case. It was outlined the owner and business
are two different units and no one can be charged for one -another’s action.
Steps needed to set up a Company
As per provision of Companies Act, 2006, following is the process for setting up of a
company:
1. Selecting the type of company: before starting any business the person possessing the
ideas must be clear about the type of business he/she wants to start, same is the case with
company, the nature and type of company i.e. limited, unlimited, partnership, private
limited etc must be determined (Adams, 2016).
2. Determination of name of company: selecting the name of business is also important
once it is done than after address must be decided upon (de Silva, 2017).
3. Appointment of directors and members: as per provision of the act the entity shall
have more than one directors so they must appointed accordingly and along with this a
company secretory must be appointed as well (Adams, 2016).
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4. Total shares to be issued: details related with total capital that will be issued company
is required to be mentioned while registering it, so it must be decided before (Adams,
2016).
5. Formation of constitution of the company: for formation of company consent of all
shareholders and members must be taken this is required as it is mentioned in the act
(Adams, 2016). After that memorandum and article of associations of company is
formulated.
6. Registration of the company: with fulfilment of all abode requirements the registrar of
the company registers the firm as legal entity (Adams, 2016).
Registration of a company:
ADVANTAGES:
Separate legal entity: with registration of the company it gains a separate identity
different from its owners (Adams, 2016). It get its own assets and liability and it can be ended by
following law procedure. In case of death of all members it does not lose its identity and in same
manner owner can not charge personal expenses in income statement of company.
Legal protection: a company when incorporate have its own asset and liability so it is
protects it owner from being held liable for any liabilities or contingencies occurred in the
company (Adams, 2016).
Perpetuity: with registration company enters into perpetual succession as people may
come and go but company do not ends, it can be ended by dissolution or winding up (Adams,
2016).
DISADVANTAGES:
Liability of being sued: with being legalized the company can be sue in its name for any
wrongful act done in the organization (Adams, 2016). The director’s work on behalf of the
company but in law suits name of the company is mentioned.
Corporate taxation: with incorporation the profits and income of the company is liable
to taxation and one such tax is corporate tax (Adams, 2016).
Role of directors:
A company runs through two bodies – shareholders and board of directors.
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The directors are in charge of management of business and operations of business. All strategic
and operational decision are taken by them (Adams, 2016). As defined in companies Act, 2006 –
general duties of directors are:
 To act within power adhered to him.
 To promote the success of the company.
 To exercise independent and impartial judgment.
 To exercise rational car, skills and diligence.
 To avoid conflict of person and organization interest. Preference be always given to
business goals (UK- Parliament, 2018).
 To not to accept any benefits from third party.
 To always promote ethical practice at workplace.
TASK 4
Alternative dispute resolution
This can defined as a solution to resolve a dispute between two of more business
organization in trading or other term without involvement of court. There are different from of
alternative dispute resolution (ADR) techniques such as arbitration, mediation and negotiation.
Resolving a dispute through this process is generally less expensive and less time consuming
when compared to court procedures (Adams, 2016). This is an informal trial where solution is
either given by a third party or reached by mutual understanding of the parties to dispute.
Parties to dispute refer ADR as it considered the involvement of parties in process of
dispute solving and develop an understanding about each other’s position. Parties may come up
with creative new solution under this procedure as they are freed to give suggestions which
cannot be done in court process (Adams, 2016). The methods of ADR are generally referred
with different names and sometimes thus create a confusion about a specific solution techniques
but the fact must be considered that whatever the near be unless it is providing a solution the
name does not matter that much.
ARBITRATION:
Arbitration is most used and effective way to solve a dispute between tow of more parties
without involvement of the court. In this, disputes is submitted to one or more arbitrator and
they pronounce a binding decision (Adams, 2016). In arbitration parties refer their dispute to
arbitrator with mutual understanding and they only select one or more arbitrators.
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ADVANTAGES:
Impartial and fair: the parties generally agree on selection of arbitration so arbitrator
will be a person that both parties are confident with and know that decisions given will be fair
and without partiality (Adams, 2016).
Less time consuming: as far as the process is concerned this is less time consuming as
here no dates are given to here the case and to run trial rather case ids referred to arbitration and
after taking into consideration all statements, proofs and evidence will pronounce a decision, and
does not take much time (Adams, 2016).
Less expensive|: the fees paid to arbitrator is sometimes less than the amount paid to a
witness to come to trial. Preparation cost of the arbitration is lower than compared to expenses
of preparing for a trial (de Silva, 2017).
Confidential procedure: parties derives privacy when dispute is resolved as arbitration
is essentially a private affair and n parties require whole procedure can be kept confidential along
with the decision (Adams, 2016).
Binding effect: this decision given by arbitration is binding on both the parties neither
they can deny it nor they can go for appeal against such decision (Adams, 2016). This is because
the final decision is reached after tasking consideration of all facts and mutual understanding of
parties.
DISADVANTAGES
No right to appeal: as stated above decision given under arbitration is binding on both
parties and they lose their right to appeal against the decision (Adams, 2016). No opportunity of
any correction if one o the party feels that some are left or decision is given erroneous.
Fees of arbitrator: if the matter of dispute do not involve modest amount of money the
fess of arbitrator can be uneconomical as this can be higher than amount involved in dispute
(Adams, 2016).
No cross examination: for certain information witness is presented to arbitrators through
documents but there is no opportunity to cross examine the testimony of witness (de Silva,
2017).
No clear standards: in general arbitrator are required to follow laws and regulation but
sometimes they consider fairness and position of parties rather than following strict laws which
can result in a less favourable decision for one party (Adams, 2016).
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Legal advice:
Pegasus is advised to go for Arbitration under ADR as the cost of getting legal advice is
350 pounds per hour which is very high (Adams, 2016). This procedure will be less expensive
and less time consuming. Pegasus must go for arbitration as this will lead fated resolving of
disputes and maintaining the confidentially of the matter.
CONCLUSION
From the above report it can be concluded that UK law has two different branches of law
i.e. criminal and civil. Both of them different terminology and court procedures and penalties.
The gig economy issues is related with freelancing and is considered as self-employments not as
in full time employment of employer (Adams, 2016). Further it can be concluded that
registration a company get separate and legal identity in eyes of law with certain benefits and
limitations. The directors are one of the main operation body of an organization ad plays
different roles and duties. It is articulated for Pegasus that ADR can prove to be a better solution
to resolve the dispute and it can be done through arbitration.
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REFERENCES
Books and Journals
Adams, A., 2016. Law for Business Students, Ninth edition; The nature of law. Pearson. pp. (60).
Adams, A., 2016. Law for Business Students. Ninth edition; How law is made. Pearson. pp. (71).
Adams, A., 2016. Law for Business Students. Ninth edition; Parliament, pp. (75).
Adams, A., 2016. Law for Business Students. Ninth edition; What is law. Pearson pp. (61).
Adams, A., 2016. Law for Business Students. Ninth edition; Alternative Dispute resolution
(ADR). Pearson. pp. (107).
Adams, A., 2016. Law for Business Students. Ninth edition; The directors. Pearson. pp. (559).
Adams, A., 2016. Law for Business Students. Ninth edition; The registered company. Pearson.
pp. (513).
de Silva, C., 2017. Alix Adams, Law for business students Ewan MacIntyre, Business law. The
Law Teacher. 51(4). pp.527-529.
Online
What is an Act of Parliament? 2018. [Online]. Available through
:<https://www.parliament.uk/about/how/laws/acts/>.
What is Secondary Legislation?. 2018. [Online]. Available through
:<https://www.parliament.uk/about/how/laws/secondary-legislation/>.
Pimlico Plumbers Ltd and another (Appellants) v Smith (Respondent). 2018. [Online]. Available
Through: <https://www.supremecourt.uk/cases/uksc-2017-0053.html>
UK- Parliament. 2018. [Online]. Available Through: https://www.parliament.uk/.
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