UK Law and Dispute Resolution

The provided assignment is a comprehensive analysis of the UK legal system, including its two divisions - civil and criminal law. It discusses the formation of laws in the UK, which involves consent from both houses of parliament and the monarch. The report also explores the problem associated with the UK's constitution being unwritten and the legal status of employees. Furthermore, it advises Pegasus management to choose arbitration as a dispute resolution technique for business disputes between parties. The assignment references various books and journals related to international law, construction contract claims, and pipeline engineering capability.

The legal framework
and legal solution

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................3
TASK 4............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
For a business it is important to know the legal framework of the nation in which it
operates. This incudes the laws and regulation that applies in business activities. In the present
report a division of law in UK are described along with the sources from which it gets the law.
The process of through which an act of parliament is set is presented to Pegasus. The legal states
of drivers employment is also determined for Pegasus. With this the company is presents an
legal dispute resolution alternative to solve its business disputes. Alex and Jay art advised to
from a company with presenting them details on how to register a company and their duties and
responsibility as directors.
TASK 1
DIVISION OF LAW
The legal framework of UK has been broadly divided into 2 divisions:
Civil law :this branch of law deals with the cases which are less serious in nature. In this
person who believes that another individual or organisation has committed a civil wrong can
complete a claim in appropriate court. The cases are related with tort, negligence, contracts and
breach etc.
Criminal law: this branch of law deals with the cases which are of more serious in
natures, the wrongs done here are termed as criminal offenses and are punishable with capital
punishment or penalties (Alostad, Steinke and Schafheutle, 2018). Under this criminal
proceeding are intended against the person who have committed the offender. This includes
offenses such as murder, rape etc.
SOURCES OF LAW:
Act of parliament: this is the most authentic source which enact a law through following
the procedures of parliament. The law are enacted by the parliament and this is also called as
primary legislation.
Customs: customs can be defined as the habits, behavioral, ethical and moral beliefs of
the people in the society and community. The beliefs and vales are so strong that laws are enc
acted in that particular local community or society. For eg: in a recent case it was determined
that a belief of the fisherman to dry the fishing net on beach was not illegal and hence a law is
made for the same declaring same as legal.
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European law: UK is part of European Union and it gets laws from Eu as well. In case
there is a contradiction between UK and EU law, Eu law prevails. This does not mean the
English law is eradicated rather EU law overrides the law of UK and priority is given to law of
European Union.
Doctrine of Judicial precedent: with this doctrine the decision pronounced in a legal
case by a court is given authenticity and it becomes bound on the subordinate courts to abide by
in future law suits (Sources of Law, 2018). The decision becomes a law and n future lawsuit it
must be referred to court in order of the legal hierarchy.
Common law: Federal case law comes from federal courts, and state case law comes
from state courts. Case law has its origins in English common law.
PROBLEMS ASSOCIATES WITH UK LAW:
The Constitution of UK is not in written format this is one of the major drawback of
English legal system. There is no formal separation of power in the UK constitution. With not
written format the authenticity of it can be questing anytime by any other nation. A proposed
legislation is prepared and present in form of memorandum to Cabinet committee on legislation
by concerned Ministry or Agency. The proposal must be approved by cabinet to go further.
Ones, it is approved it gets transformed into a bill.
ESTABLISHMENT OF AN ACT OF PARLIAMENT:
Pre Parliamentary procedure:
This is the first stage where an initiative is taken by the political parties or public
association working for social welfare. The issue or problem is either detected by them or
submitted to them by grope of person facing the problem. Then
Parliamentary procedure:
 First reading: the bill is introduces in national assembly and becomes a public
document. At this stage title of the bill read out and then it is published.
 Second reading: here, a debate is carried out by house of common over general principle
of the bill.
 Committee stage: bill is examined in detail and amendments if any can be made at this
stage.
 Report stage: amendments if made, this stage is required to conduct voting on the such
amendment.
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 Third reading: this is final stage where amended bill is taken in to consolidation. This is
the last stage where MP's from house of common can vote on bill.
 Proceeding in house of Lords: same procedure is carried out in house of Lords. If any
amended is suggested bill go back to house of common, and this process continues until
both houses reach a unanimous decision over the bill (LAW MAKING PROCEDURE,
2018).
 Royal assent: when bill is passed by both houses of parliament it is approved by The
Queen and a royal Monarch is affixed on bill. This make the bill into law.
DETERMINATION OF AFFECT OF AN ACT
The effect of an act formed or modified by the Parliament or other source of law can be
determined with establishment of a relation between the prima facia subject of the act with
activities and operation of the organisation (The Legal System of the United Kingdom, 2018). If a
single activity is related with that act the applicability of the act is set. Such as a modification in
employment law will surly affect business as this defines rights of employees within an
organization. Another way to determine the fact that an act might affect business operation is to
see the site and governmental site and to find out what law are applicable on Pegasus and legal
implication that follows with non fulfillment of those acts.
TASK 2
PIMLICO CASE
In this case it was determined the law the employees of Pimlico plumbers were working
as self employed under a contract in other organization, hence they have no rights to claim sick,
leave pay along with claim for unlawful removal from employment. All this are rights to an
employee who is in full times employment.
LEGAL STATUS OF DRIVERS IN PEGASUS:
Conditions for employees to be self employed:
A self-employed person operate heir own business and take responsibility for the success
of the business, and are more likely to provide a service for a client.
A person may be classed as self-employed or a contractor if:
they bid or provide quotes to secure work
they decide when and how to do work
they are responsible for their own tax and National Insurance
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they do not receive holiday or sick pay when unavailable for work
they provide the main tools, equipment or materials that are needed to complete a job.
Contractors can be self-employed, a worker, or employee if they work for a client and are
employed by an agency.
Applicability:
In the present case Pegasus's van are hired by drivers and they deliver goods as per the
time schedule provided by the business (Weber, Merino and Loder, 2015). The drivers are
totally controlled by Pegasus management and they need to work according to terms and
condition of P. They must were uniforms, carry ID card of company and can substitute another
driver which must be from P only.
As mentioned above in the definition of self employed most of the conditions are not
fulfilled. As drivers do not work on their terms and condition rather controlled by P. They do not
decide when and how to do work, drivers can not be termed as self employed for Pegasus. They
are must be considered in full-time employment as drivers under Pegasus.
Implication on business:
The operating cost of Pegasus will increase as drivers are eligible for sick and leave pay
long with bonus as a right under employment as full time emplyees. Further, they have full
access to all employment rights and benefits entitlements as mentioned in employment act 1997.
TASK 3
NATURE OF A REGISTERED COMPANY
Separate legal entity:
On being registered company get a separate legal identity of its ow which is different
from its owners, managers, directors, promoters and members (Besson and d'Aspremont, 2017) .
The business on registration gets an identity of its own, with having its owns asset, property and
rights. With this it gets its own liabilities and legal obligations which are not linked with owners
and managers,
The mangers and owners do no books their own liability in financial record of the
business as both a separate person from each other. With this company gets a right to sue and be
sues in its name for action undertaken in the name of organisation.
STEPS INVOLVED IN REGISTRATION OF A COMPANY
For registration of a company following is the process:
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Name of the company: selection of a suitable name for the company which must not be
similar and identical to already registered name and alps do not resemble any national or
international logo or symbols.
Address of the company: location of registered head office of the organisation must be
decided which must be in UK (Register your company, 2018). This is the place from all business
operations will be carried out, and this will be mailing address and mentioned on letter head of
business.
Appointment of directors: as per the legal formation being private or public limited
organisation directors must be appointed.
Share and shareholders: for private companies there must be at least one shareholder
and company can not issue share to public. There is not limit on maximum number of
shareholders in a private limited organisation.
Memorandum of association: All the members of the business must subscribe to MOA.
This can not be changed upon registration.
Article of association: This can be referred as written rules to operate the business, this
can be modified ans changes as and when requires with passing of special resolution of board
meeting.
After meeting all this requirement a business is registered as a company.
ROLE OF DIRECTORS:
As the directors of the newly formed company Alex and Jay have following duties and
responsibilities toward the organisation:
 To act in with in power adhered to them under the constitution. No activities must be
carried out beyond the powers in Memorandum and article of association of the firm.
 To act in good faith and promote the business of the organization and person goals must
not be given preferences over organizational objectives.
 To exercise rationale skills, cares and diligence in affairs of the organisation.
 To not take any personal interest and benefits from business operation and also not to
accepts benefits from third parties.
REVIEW OF DECISION TO FROM A COMPANY
The decision to from a company by Alex and Jay is fully correct and they are advised to
proceed with the decision to transform their business in a registered company as with this they
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will get a separate legal identity for their business. The organisation will have its own assets,
property, rights, liabilities and obligation away from owners that is Jay and Alex.
TASK 4
ALTERNATIVE DISPUTE RESOLUTION
This can be defined a legal solution to resole business disputes without going to court.
The ADR is the methods which is adopted by business to solve the dispute outside the court with
various methods. Under ADR parties to dispute do not go to court rather they go to arbitrators,
mediators or a party to solve their differences and reach to an amicable decision (Bult, Halligan,
Pray and Zack Jr, 2016) . This is less formal and less expensive methods as compared to court
proceedings. The methods under ADR also consumes less time. There are different methods of
ADR:
Arbitration: this is a method under which a solution is given by arbitrator which have a
biding effect on both parties to dispute. The decision is reached after taking into consideration all
facts and evidences presented by parties.
Medication: under this method a mediator is appointed and that present provides a better
communication between parties to dispute (Ray, and et.al M., 2018). The mediator asks question
to both parties and enhances communication among them so as they can reach a conclusion. The
decision reached under this method do not serve a binding effect of parties.
Conciliation: Conciliation is a form of ADR in which a neutral third party provides
different solution offers which will take place in accordance to the circumstances of the dispute.
It aims to provide the parties to reach an agreement as per one of these offers after negotiations
and deliberations.
Negotiation: This type of ADR aims for the parties to settle the dispute between the
same by negotiating and deliberating with each other with the attendance of their attorneys if
needed, without intervention of any third party.
ARBITRATION
This can be defined as a method which is less time and expense consuming and informal
in nature as compared to court proceedings. Under this an arbitrator is appointed which is known
to both the parties so that an unbiased decision can be reached. The arbitrators hear facts from
both parties to dispute and collects evidences from them. A decision is taken by arbitrator with
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taking into account interest and concern of both parties and the one which is acceptable buy both
parties.
Once a decision is pronounced and accepted by parties it cannot be changes as the
decision have a binding effect (Harvey, C 2018). This means that parties to arbitration do not
have a right to appeals to court against the decision. The arbitration clause is inserted in the
agreement at time of signing it to refer future dispute to arbitration. Or it can be inserted as time
when a dispute arises a to refer present and future disputes to arbitration.
LEGAL ADVICE
For the present case Pegasus is advised to go for Arbitration methods rather than
preferring to court to solve a dispute with other parties to business. As getting a legal advise
under court process cost £350 per hour which is very high, in-certain cases, the amount of
dispute might be lesser than this. Hence, Pegasus must go with arbitration and a clause of
arbitration can be inserted in agreement with parties as a dispute will be resolve through
Arbitration only.
CONCLUSION
From the above report it can be concluded that UK law have two division in law i.e. Civil
and criminal. The law in UK has been formed with different sources and to set up a law assent
from both houses of parliament and Monarch is required. The Problem associated with UK has
been determined as the constitutions of UK is not in written format. Further it can be articulated
that legal status of employees been determined as employed. The management of Pegasus has
been advised to chose arbitration as a dispute resolving techniques rather than going ti court to
soles the business disputes between parties. Alas and Jay are advised to from as registered
company for their business as this can provide their business a separate legal identity.
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REFERENCES
Books and Journals
Alostad, A. H., Steinke, D. T. and Schafheutle, E. I., 2018. International comparison of five
herbal medicine registration systems to inform regulation development: United Kingdom,
Germany, United States of America, United Arab Emirates and Kingdom of
Bahrain. Pharmaceutical medicine. 32(1). pp.39-49.
Besson, S. and d'Aspremont, J., 2017. The Sources of International Law. In The Oxford
handbook on the sources of international law. (pp. 1-39). Oxford University Press.
Bult, A. K., Halligan, D. W., Pray, J. and Zack Jr, J. G., 2016. Dispute Avoidance and
Alternative Dispute Resolution. In Construction Contract Claims, Changes, and Dispute
Resolution. (pp. 347-385).
Harvey, C., 2018, September. Achieving and Demonstrating Pipeline Engineering Capability:
The Role of Competency Standards, and Their Use for Qualifications and Registration.
In 2018 12th International Pipeline Conference (pp. V002T01A002-V002T01A002).
American Society of Mechanical Engineers.
Ray, A and etl.al., 2015. Alternative dispute resolution (ADR) versus the court system. Journal
of the Alabama Academy of Science. 86(2). pp.125-126.
Weber, W. E., Merino, J. G. and Loder, E., 2015. Trial registration 10 years on.
Online
Register your company. 2018. [Online]. Available through :<https://www.gov.uk/limited-
company-formation/register-your-company>.
LAW MAKING PROCEDURE. 2018. [Pdf]. Available through
:<http://www.moj.gov.na/documents/154647/416674/Law+making+latest/f28a2082-e5de-
4e90-bbd2-cdd425536806>.
The Legal System of the United Kingdom. 2018. [Online]. Available through
:<https://www.cilex.org.uk/about_cilex/about-cilex-lawyers/what-cilex-lawyers-do/the-uk-
legal-system>.
Sources of Law. 2018. [Online]. Available through
:<https://open.lib.umn.edu/criminallaw/chapter/1-6-sources-of-law/>.
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