Comparing Common and Statutory Law

The provided text appears to be a collection of references related to employment law, labor relations, and private international law. It includes citations to academic articles, book chapters, and court cases that explore issues such as employee affective commitment, psychological contract breach, and the enforcement of clean water acts. The assignment seems to require students to understand and apply these concepts in a comparative context, possibly involving the analysis of common law versus statutory law. Students may be asked to discuss how these different legal frameworks interact with business practices and societal norms.

Business Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
TASK 1............................................................................................................................................1
A) “Parliament is sovereignty” and various sources of law........................................................1
B) Role of government in law making process and application of statutory and common laws
over justice court.........................................................................................................................2
C) Impact of company, employment and contract law over the business...................................4
TASK 2- (LO 3)...............................................................................................................................5
Explaining the Nature and formation of different types of business..........................................5
Critically evaluating the difference between unincorporated and incorporated business...........6
Advantages and disadvantages of partnership and company .....................................................8
SECTION 2 – (LO 4).......................................................................................................................8
Case 1..........................................................................................................................................8
Case 2........................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law is a set of rules that provides framework within which organizations are
required to conduct their activities. In other words, business law governs trade and commerce in
the country. It has two broad sections in which one section regulates the commercial entities
through company law, partnership, bankruptcy and agency law. The second section regulates the
commercial transactions by the way of contract law. The present project report is going to cover
various sources of law, role of government in law making process and how statutory and
common laws are applied in the justice courts. Further, in this report explanation will be
provided on company, employment and contract law in order to analyse their potential impact
upon business.
Nature and formation of different types of business, with critical evaluation of
unincorporated and incorporated will also be discussed in this report. Moreover, legal solutions
of both the cases will also be discussed in this assessment.
SECTION 1
TASK 1
A) “Parliament is sovereignty” and various sources of law
Sovereignty
Sovereignty is the self governing state. With the help of which the authority gets va
supreme and dominating power within the country (Emery, 2016). Sovereignty power makes the
authority independent as to make the rules for overall country.
Parliament sovereignty
In UK, the parliament performs the core function of making the law foe the country. No
law can be made without consent of parliament. Further, the constitution of UK has bound each
person of the UK to comply with the laws made by the parliament. Any non compliance may
cause in attracting the legal penalties over the defaulter. Therefore, form the above examples, it
can be evaluated that the statement “Parliament is sovereignty” is correct.
Sources of law:
Sources of law are the legal factors on the basis of which the laws are being made in the
country. UK also have decided some sources of laws as under:
 Statutory law: These are the main source of law. Statutory are the key legislations of the
country that are applicable to each governing authority, individual, commercial
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corporation etc. of the country. These are originated through green paper of the
parliament.
 Common law: Common laws are laws that are applicable to the lower divisional courts.
In UK, common laws are defined as the combination of the justice of the higher judicial
courts (Hunter and Waterman, 2016). Therefore, justice of higher divisional courts are
the main source of common laws.
 Equity laws: Equity laws are made in UK as to ensure the equality among the population
of UK. These contains the rules by which the illegal discrimination can be eliminated
within the country. Trust, equality and anti discrimination laws are the main sources of
equity.
 EU laws: EU laws are euro prion union laws. As the UK is also a member of Europiun
union, its laws are also a source of in UK. Any law made of amended by EU have a direct
effect over the rules and regulations of the laws of UK.
 International laws: As many of the companies of UK works at international level,
various international laws like WTO, WHO, etc. are also treated as a source of law in
UK. As its rule relating to the international treaties need to be comply with these laws.
Effectiveness of reformation of the legal system of UK
Legal system of UK is effective as the UK government keeps amending the laws as per
the requirement of the country. For example, recently the government of UK has amended its
ADR system with the help of which legal terms of the international business has become more
liberal. It has helped the country in enhancing the business operations of the international
business. Although, there is an ineffectiveness also in the UK's legal system that the constitution
of the UK is not in written format.
In this regard, it can be evaluated that the legal system of UK is an effective legal system
in terms of recent reforms and development.
B) Role of government in law making process and application of statutory and common laws
over justice court
Role of government in law making process
Government agencies performs a core function of identifying the need to new law or
amendments of any existing law. They make the bill as per the need of law in the country.
Further, each stage of parliament for passing the bill and making the law is also performed by the
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authorised ministers of the country. In this regard, in can be evaluated that the government plays
important role in the process of making law in the UK.
Further, the role of government can be understand in much better way by analysing the
overall process of making the law as follows:
 Identification of need: the law making process starts with the identification of need of
new law or amendment in any existing law. This function is performed by some
authorised governing agencies.
 Preparation of bill: After identification of need of laws in the country, the authorised
ministers of the government prepares the bill as per the need of the law. They enter
various clause to be included in the law as per the analysis of need in the country.
 Presenting the bill in both houses of parliament: After preparation of bill and inclusion
of all the clauses in the bill, the government agencies present the bill in front of house of
lords and house of commons where the law making process is being performed as to
convert the bill into the law. For this purpose the bill need to pass various stages of the
parliament as under
 First reading: It is the basic stage of the parliamentary process of law making. At this
stage, the ministers of government read each clause of the bill.
 Second reading: At the stage of second reading, a debate is conducted among various
ministers of the government. Minsters of the parties of government put their views about
numerous clauses of the bill (Dicey, 2017) . They vote for the bill. Amendment in the bill
as per the majority of vote is also being made in the bill.
 Committee stage: After making the amendment in the bill, the minsters transfers the bill
to the committee. The committee members refers the bill and all the amendments made at
earlier stage. They also examine the details of the bill. Further, the members can also
amend the bill if they find the need of amending any clause of the bill.
 Report stage: After the examination and amendment of the bill in committee members
need to report the bill and amendments for the further processing of bill. A debate is
made again upon the bill at this stage and government ministers again votes upon the
clauses of bill.
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 Third reading: After the debate in the report stage, the bill is represented in front of the
house. A debate about the acceptance or rejection of the bill is made at this stage. After
getting majority of acceptance the bill is sent for the further processing (Chang, 2018).
 Later stage: At later stage, the bill is sent to the another house of parliament. Where all
the above stages are performed by the ministers of another house. In case any amendment
is made by the house, the bill is again transferred to the first house. The process is
continuously performed by the houses of parliament until the houses agrees upon same
clause to be included in the bill. After the bill is passed by both house of parliament, the
bill is termed as the law.
 Royal assent: After converting the bill into law, the law is being represented in front of
Queen of UK as to get the royal assent (Png, 2017) . The Queen gives the assent by
signing the document of the law. Once the Royal assent provided, the law is termed as the
Act which is applicable to each person of the UK.
Application of statutory and common laws in the justice court
Statutory are the key legislations of the country made by the legislatures of the country.
The constitution have bound each person including governing agencies, judicial courts,
individuals, corporations, etc. to follow each clause of the statutory (Quratulain, 2018).
Therefore, judicial courts of each level need to apply the statutory while providing their justice.
Further, it also has clause that statutory need to be analysed in the same way in which they are
formed. Justice of courts can use various aids to properly analyse the legal terms.
Common laws are the justice provided by the higher judicial courts. In this regard, the
common laws are applicable on the lower judicial courts only. Lower divisional courts are bound
to apply both common laws and statutory while providing justice.
C) Impact of company, employment and contract law over the business
Legislations, regulations and standard, each terms are different from each other.
Legislations are the original laws. These are originated by the passing the bill in the country.
These are applicable over each person of the country including business organisations. Further,
regulations are framed as to monitor the compliance of law in the country. They provide the
reason behind the making of law as to provide a better understanding about the law (Besson and
d'Aspremont, 2017). Whereas, the standards are the minimum quality decided by the
government that are needed to be included in the product or services rendered by the company.
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Each legislations, regulations and standards applicable on the businesses have potential
impact over them. Further, non compliance of any of the legislations, regulations or standards
may attract the legal penalties over the company.
Company law
Companies Act 2006 provides the rules relating to the company law of UK. Company
law contains each law on the basis of which each company has to perform its business
operations. It contains the rules relating to formation, dissolution and running the business.
Therefore, it has a major impact over the company (Taylor, Rees and Damm, 2016). For
example, In case the company wants to expand its business, it has to follow the procedure of
expansion like informing to registrar, filing various forms, etc. it enhances the cost of company
along with number of activities to be performed for expansion purpose.
Contract law
Contract Act 1999 deals with the legal provisions of contract law. It regulates the
contractual transactions of the country including selling purchase of goods and services, which
are the major operations of the any business structure. In this regard, it has the impact over the
companies. For example, if the company sales any product or services to its customers, it has to
make the contract of sale as per the provisions of the contract law. In case of any non
compliance, the contract amounts to making the contract invalid that can not be enforces by law
which enhances the financial uncertainty in the business.
Employment law
Employment law includes the national minimum wages act 1998, employment act 2002
and all other acts that deals with providing security to the employees of country (Png, 2017).
This law also have potential impact over the business operations of thee company as, the
business needs to comply with the provisions of these laws at the time of employing any
candidate in the company, and each activity which have influence over the employment of the
workers For example, payment of salary, providing holidays, working hours, etc. all these
elements have impact over the cost of the business and performance of the business operations as
well.
From the above analysis, it can be evaluated that all the legislations, regulations and
standards applicable over the business have potential impact over the business operations of the
company.
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TASK 2- (LO 3)
Explaining the Nature and formation of different types of business
Generally nature of business is to focus on the profits because this is earning of
entrepreneur and employees which are working for satisfying consumer needs. It is considered as
the economic activity which deals in purchase and selling of services in terms of making money.
Thus, types of business formation are as follows-
Sole Proprietorship:
It is a type of business which owned and managed by only one person. Among all the
formation of business, this is mainly easy to set-up and is also the least costly where owner has
unlimited liability. This indicates that in terms of creditors payment, owner will be personally
liable. This is the form which mainly created by small business entities (Goel, Bandara and
Gable, 2018).
Partnership:
This is the form which usually owned by two or more persons who contribute their
resources for conducting business operations. In this form, generally partners divide the profits
among themselves where they have unlimited liabilities which means that they are personally
liable for the creditors' payment. The business generally get form with partnership agreement
which either be oral or written.
Corporation:
It is the form of business in which business generally has the separate legal personality
from its owners and directors. In this form generally ownership is represented by the shares
which hold by owners in the business where its stakeholders enjoy limited liability and has the
small contribution in the business operations (Benson, 2016). In this form, board of directors are
selected by the group of stockholders in order to control business operations.
Limited liability company:
This is the hybrid form of business which have the characteristics of both business form
that is corporation and partnership. It is considered as incorporated because of which the
enterprise does not consider as corporation.
Cooperative:
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This is the form of business which generally owned by group of individuals which is
operated with the motive of mutual benefits. It may be incorporated and unincorporated business
form.
Critically evaluating the difference between unincorporated and incorporated business
Basis of difference Incorporated Unincorporated
Business liability This business form generally
has independent legal entities
in which owner's of businesses
are not personally liable for
liabilities and debts
(Cromwell, 2019).
This is the business form
which generally considered as
extension from its owners
which indicates that the
owners are personally liable
for the business liabilities and
debts.
Unlimited liability This is the form which mainly
has the independent life which
means that business will get
continue even if owner's get
died.
The business generally has the
finite life which indicates that
the business will only get last
as long as its owners live.
Transfer-ability of interest Since, this business is legally
independent, the interest of
owners will easily get
transferred where its operation
did not get affected.
This is form which is
considered as extension of the
owner which indicates that it is
difficult to transfer its asset.
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Management Generally in this form, three-
tier structure in organization
management gets followed
where shareholders owns
business, BOD will select
officer and officers has
responsibility to run the
business.
This is the business which
simple considered as extension
from its owners. Therefore,
owners' are personally liable to
manage the business
operations (Bell, Bryman and
Harley, 2018).
Funded Money will mainly get raised
by equity financing which
involve selling of shares to its
investors.
This business mainly runs out
from the business where the
owners will have to pay
outstanding debts and
payments.
Advantages and disadvantages of partnership and company
Partnership Company
Advantages:
 This is the business form which is easy
to establish and its start-up cost is also
low.
 In this, more capital is available
 its business affairs are private
Advantages:
 Shareholders are personally not liable
for any debts and which incurred with
the company's operations.
 Additional funds will easily get raised
by selling shares in corporation (What
are some of the advantages or
disadvantages of forming a
corporation, 2019).
Disadvantages:
 Partners personally liable for business
liabilities and debts.
 Partners has unlimited liability.
Disadvantages:
 It requires more time and money in
order to form business structure.
 More paper work required because
business is monitored by governmental
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agencies.
SECTION 2 – (LO 4)
Case 1
Issue:
 Can the creditors file petition against the Champion Ltd.?
 Does the Champion Ltd. Have any remedy against the petition?
Rules:
 Insolvency: Insolvency is the state at which the company does not have sufficient
amount of assets as to pay the debts of the company (Svantesson, 2016).
 Insolvency and Bankruptcy (Amendment) Ordinance, 2018: As per this rule, if any
company fails to pay the debts of the creditors. Further, it has insufficient amount of
assets for the payment of debts, the court can declare the company as an insolvent.
Further, it also provides the procedure for the winding up of the company.
 Winding up: Winding up can be defined as a method of closing a business (Blyton and
Morris, 2017). In this method, the company sales all the assets and pay all the liabilities
from the amount received by selling the assets.
 Winding up petition: In case, the business fails to pay the debt of the creditors as per the
contract, the law has provided creditors a power to file a petition in the court as to order
the company to liquidate itself for the purpose of paying the debts of it.
 Winding up procedure: If the judicial court orders the company to dissolve itself and
pay all the debts of the creditors. In this case, the company needs to appoint a liquidator
who would perform the winding up procedure for the company (Schipani, Milliken and
Dworkin, 2016). The liquidator collects all the assets of business and sale it in the market.
The amount collected by selling the assets is being used by the liquidator to pay the
debts. In case of receiving insufficient amount of finance, the debts are paid on pro rata
basis to each creditor.
 Case law: In Stonegate Securities Ltd v Gregory Case, the Gregory and Stonegate
entered into a contract. After some time, the debt of Stonegate Security Ltd. Over the
Gregory became disputed (Stonegate Securities Ltd v Gregory,2018). Further, the
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Gregory filed a petition in the company for performing winding up procedure on the
ground of non payment of the debts.
The court dismissed the petition of Gregory as the debt was disputed and as per the laws relating
to the winding up petition, petition of winding up can not be filled against a disputed debts.
Application
By applying the above rules and pre-decided case on the present scenario, it can be
analysed that the Champion Ltd. Has made fault in payment of the debts of its creditors and
bank. In this regard, the creditors can file petition against the Champion Ltd. Further, as per the
above mentioned case, the petition of the creditors for winding up procedure would be dismissed
if the debt of the case is in dispute (Calvino and Virgillito, 2018). In the present case scenario,
the debts of creditors and banks are not under dispute. Therefore, the petition would not be
dismissed by the court.
Conclusion
From the analysis of above mentioned rules, cases and their application on the present
case scenario, it can be concluded that, the Champion Ltd. Is the defaulter company for the non
payment of its debts. As per the above rule, the creditors have right to file petition against the
company on this ground. As per the above mentioned rules, the court will have a complete
analysis of the financial position of the company. In case the court finds insufficiency, the court
may declare the company as insolvent.
As per the above mentioned case study. The court may dismiss the petition of the
creditors in case of disputed debts. In the present scenario, the debts of the creditors are not
under dispute, therefore, the petition of the creditors will remain constant. Further, as the
Champion Ltd. Has no sufficient reason behind the non payment, the court may held the
company insolvent and order the company to liquidate itself and pay the debts of creditors.
Further, the present dispute can also be resolved by arbitration method of legal solution.
This is an effective method of resolving the dispute in which both parties appoint a third party
with the mutual consent which is termed as the arbitrator. The third party analyses the dispute
and hears point of view of both the parties. The arbitrator provides the solution for the dispute as
per the analysis of the case. The solution provided by the arbitrator have binding effect over both
the parties.
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Case 2
Issue:
 Is the action of Mr. Anderson is valid?
 Has Mr. Anderson breached the contract?
 Does Amber Ltd. Have any remedy against Mr. Anderson?
Rules:
 Employment law: Employment laws contains many acts like Minimum wages act 1998,
employment act 2002, etc. that helps in providing safeguard to the employment of the
workforce in a business. Each employer need to set the terms of the employment as to
comply with the provisions of employment law.
 Employment contract: Employment contract is the contract made on the agreed terms of
the employer and employee (Yang, 2019). It contains each major element and rules
relating to the employment of the worker including salary details, working hours, terms
of working. Etc.
 Binding effect of employment contract: As per the provisions of employment law,
employment contract have binding effect over both employer and employee (Kumar,
2017). Each activity of them influencing the employment needed to be as per the
contractual term. Non compliance of any term may attract the legal penalties over the
defaulter.
 Breach of employment contract: In case, employer or employee performs any activity
having overriding effect over the employment contract would be amounted to attraction
of penalties for the defaulter party.
 Injunction: In case, any party to the employment contract performs any activity against
the employment contract, the plaintiff have right to file a petition in the court as to
provide injunction order against the defaulter.
 Case: In Brown & Anor v Neon Management Services Ltd & Anor (Rev 1) [2018]
EWHC 2137 (QB)case, there was an employment cpntract betweem Brown, Anor and
Neon management service ltd. Employment contract of both employees contains a term
to provide a 6 months and 12 months respectively before terminating the job (Brown &
Anor v Neon Management Services Ltd & Anor (Rev 1) [2018] EWHC 2137 (QB), 2018).
The employer terminated both employees without providing any prior notice to them.
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The court held the employer as a defaulter and provided the injunction order to the
company as to stop the termination of both the employees.
Application
All the above mentioned rules and mentioned case study can be apply on the present
scenario as to resolve the dispute among the parties. As per the application of above rules, it can
be analysed that there was an employment contract between Amber Ltd. And Mr. Anderson
which contained a term as to provide a prior notice of 12 months before terminating the job.
With the application of rule of breach of contract, it can be analysed that Mr. Anderson has
breached the employment contract by terminating the job without any prior notice.
Conclusion
From the above mentioned rules, pre-decides case and their application over the present
case scenario, it can be concluded that Mr. Anderson is the defaulting party and has breached the
employment contractual term of providing 12 months prior notice before terminating the job. As
per the above mentioned case, Amber Ltd. Have a remedy against Anderson to file a petition for
providing injunction order to Anderson as to stop him to work at Beta Ltd. As Mr. Anderson
does not have sufficient ground for breach of contract, the court will held the justice in favour of
Amber Ltd.
Amber Ltd. And Anderson can also use the ADR method of legal solution by solving the
dispute through mediation process. In this process, parties comes together and negotiate the
clauses of dispute. In this method, the dispute is resolved by communication technique. Amber
Ltd. And Anderson can communicate with each other and find the solution of the dispute by
themselves by negotiating the contractual terms.
Comparison and contrast of different sources of legal dispute resolution and evaluation of
effectiveness of them
Disputes can be resolved either by approaching the court or through ADR system. Court
is the most common way of resolving any dispute. Further, its solutions are also reliable and as
per the legal provisions of the country. But, resolving the dispute through this source contains a
lengthy procedure.
On the other hand, the parties may also decides to solve the case through ADR method.
In this method, they appoint third party who analyses the dispute and provide an appropriate
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solution for that. Although, this method is the fasted method of solving the case, but it is less
reliable than the solution of courts.
CONCLUSION
From the analysis of above study, it can be concluded that, parliament is at sovereign
state in the UK. Government plays a vital role in law making process of the parliament. Judicial
authorities also need to comply with the statutory and common laws. The study has also
concluded that there are various sources through which the laws are framed in UK. Further,
business operations of the company potentially affected by the regulations of the laws applicable
on them. Law has provided formation procedure, funding and management rules as per which
businesses needs to perform their business activities. The decision of formation of any business
structure or converting the business structure should be taken carefully by analysing pros and
cons of each business structures. At the end of assignment, it has also provided legal solutions of
some disputes on the basis of rules and case studies applicable to them.
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REFERENCES
Books and Journals
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handbook on the sources of international law (pp. 1-39). Oxford University Press.
Blyton, P. and Morris, J. eds., 2017. A Flexible Future?: Prospects for Employment and
Organization (Vol. 30). Walter de Gruyter GmbH & Co KG.
Calvino, F. and Virgillito, M. E., 2018. The innovation‐employment nexus: A critical survey of
theory and empirics. Journal of Economic Surveys. 32(1). pp.83-117.
Chang, C., 2018, July. Psychological contract breach and citizenship behavior: a thwarted need
to control perspective. In Academy of Management Proceedings (Vol. 2018, No. 1, p.
16017). Briarcliff Manor, NY 10510: Academy of Management.
Emery, T. J. and et.al., 2016. The role of government and industry in resolving assignment
problems in fisheries with individual transferable quotas. Marine Policy. 73. pp.46-52.
Hunter, S. and Waterman, R. W., 2016. Enforcing the Law: Case of the Clean Water Acts: Case
of the Clean Water Acts. Routledge.
Kumar, K. H., 2017. Winding up of Companies under Companies Act, 2013 & Insolvency &
Bankruptcy Code, 2016. The Management Accountant Journal. 52(10). pp.48-52.
Png, I. P., 2017. Law and innovation: evidence from state trade secrets laws. Review of
Economics and statistics. 99(1). pp.167-179.
Quratulain, S. and et.al., 2018. A study of employee affective organizational commitment and
retention in Pakistan: the roles of psychological contract breach and norms of
reciprocity. The International Journal of Human Resource Management. 29(17).
pp.2552-2579.
Schipani, C. A., Milliken, F. J. and Dworkin, T. M., 2016. The Impact of Employment Law and
Practices on Business and Society: The Significance of Worker Voice. U. Pa. J. Bus.
L. 19. p.979.
Svantesson, D. J. B., 2016. Private international law and the internet. Wolters Kluwer Law &
Business.
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Taylor, R., Rees, J. and Damm, C., 2016. UK employment services: understanding provider
strategies in a dynamic strategic action field. Policy & Politics. 44(2). pp.253-267.
Yang, J. and et.al., 2019. Sensorless Control of Brushless Doubly Fed Induction Machine Using
a Control Winding Current MRAS Observer. IEEE Transactions on Industrial
Electronics. 66(1). pp.728-738.
Dicey, A. V., 2017. Lectures on the relation between law and public opinion in England during
the nineteenth century. Routledge.
Online
COMMON LAW V. STATUTORY LAW .2018. [Online] Available Through:
<https://common.laws.com/common-law/common-law-v-statutory-law>
Stonegate Securities Ltd v Gregory.2018. [Online] Available Through:
<https://alchetron.com/Stonegate-Securities-Ltd-v-Gregory>
Brown & Anor v Neon Management Services Ltd & Anor (Rev 1) [2018] EWHC 2137 (QB)
.2018. [Online] Available Through:
<https://www.employmentcasesupdate.co.uk/site.aspx?i=ed37361>
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