Pegasus Business Dispute Resolution

This assignment provides a case study on Pegasus, a company involved in a business dispute between Jay and Alex. The report discusses the legal system in the UK, employment status of drivers in Pegasus, and the importance of registering the business as a registered company. It also advises Jay and Alex to opt for arbitration under alternative dispute resolution measures due to its cost-effectiveness, time efficiency, and ease of resolving business issues.

The Legal Framework and Legal
Solutions

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Division of law in UK............................................................................................................1
Sources of law in UK.............................................................................................................1
Problems associated with Legal system of UK......................................................................2
Establishment of Act of Parliament and determination of the fact on how an act can affect
business...................................................................................................................................2
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................4
Registered company and its legal status.................................................................................4
Process of registration of a company......................................................................................4
Roles of directors in a registered company............................................................................4
Decision on establishment of the company............................................................................5
TASK 4............................................................................................................................................5
Alternative legal solution (ADR) to resolve business disputes..............................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
For a business organisation it is mandatory to follow all the rules, regulations and
provisions made in respect of conducting and operating a business. The legislation defines how a
firm is incorporated and how its activities must be carried on with complying with all legal
requirements. In the present report Pegasus is being advices and given in depth knowledge on
division and sources in UK with presenting problems associated with legal system in UK.
Along with this the legal employment status of divers in Pegasus is also determined. Alex and
Jay are given a description on how they can register a company and recommended an alternate
legal solution to resolve the business issues.
TASK 1
Division of law in UK
Civil Law: This is the branch of law with deals with dispute between individuals or
organizations and provide them with remedy. The cases in civil law are generally less serious in
nature and belongs to civil wrong to person by another individual or any business firm. The cases
that are dealt under this branch of law are related with tort of negligence, family disputes,
personal injury cases, breach of contract and employment law. Remedies are available in from of
damages claims.
Criminal law: This branch of law deals with those offenses which are more serious in
nature and whole society is affected bu such crime (Adams, 2016). Under this the person
committing a criminal act is termed as offender and legal prosecutions are initiated against that
person in court. The offenses included in under this law are- thefts, murder, rape, sexual assault
etc. Punishment is given in from of death penalty or monetary penalty or both.
Sources of law in UK
Act of parliament: this is termed as primary legislation through which law are enacted
by parliament. This is the most importance piece of forming laws and regulations in the country.
A proposal is presented to cabinet and then same is presented as bill to both houses of parliament
with getting consent from both the houses the bill becomes and at or law after affixing from
royal monarch.
Doctrine of Judicial precedents: with this doctrine the decision given by judges for law
suits and trails in the court are given a legal authentication. The decision so passed becomes laws
and must be referred by judges in future cases before passing a pronouncement. The judgment so
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passed are referred in hierarchical order as a decision passed by district court is not taken into
consideration by higher level of court.
Costumes: Customs are generally accepted beliefs, trends and habits of people in the
society or in a particular community. These customs are followed by all people in the society
without any other perspective about it. With a general acceptance and application of customs,
regulations and laws are formed to give certain custom authentication.
European Union: UK is a part of European Union and EU laws are applicable in UK as
well. In certain cases the laws of both EU and UK contradicts each other and here the EU law is
given a privilege. The EU laws does not override the UK law it just given preference over
English law.
Problems associated with Legal system of UK
The main problem associated with English law is that is not in written form and this is
considered as a major drawback of English Legal System. This makes the position of nation a bit
low as compared to another countries which have written constitution. Another problem that is
faced by the legal system in UK is related with delay in the justice. According to a report
published by The Public Account Committee the in 2016 alone more than two third of trials in
crown courts were delayed or did not proceed with. This backlog numbered to 51830 cases.
Establishment of Act of Parliament and determination of the fact on how an act can affect
business
Per-parliamentary stage: A public problem or issues is present electing parties or
leading social groups (Adams, 2016). One such problem with needed to be dealt with a law is
considered and a draft legislation is presented to cabinet ministers. The legislation if approved by
cabinet becomes a proposal and same is presented in parliament for further consideration.
Parliamentary stage
 First reading: this is formal stage here title of proposed bill is read out in front of House
of Commons.
 Second reading: the peers of House of Commons debate on general principles on the
bill.
 Committee stage: here bill is examined in detail and amendments are suggested and
made at this stage.
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 Report stage: If amendments are made to the bill in committee, a report stage is needed
and the House votes on any amendments.
 Third reading: the final stage where amended bill is finally considered by House of
Commons.
 House of Lords and consent: same procedure is carried out House of Lords for
considering the bill. Any changes if recommended, same is referred back to House of
Commons.
 Assent from monarch: with consent from both houses of parliament, the bill receives a
royal assent and it becomes a law.
TASK 2
Issue:
Determination of employment status of drivers who hires vans from Pegasus to deliver
the products.
Rules
Pimlico case: in this case the plumbers were determined as self-employed who worked
for Pimlico on contract basis and thus were not eligible for any rights adhered to employees such
as leave and sick pay and bonus.
Employment statues:
Self-employed: A person is said to be self-employed or working under a contrast when
he can decide what work they do and when, where or how to do it. They can hire someone else
to do their work, employer fixes a price for their work in their own time. They use their own
money to buy business assets, cover running costs, and provide tools and equipment for their
work.
Employee: A person in regular employment is one who needs to work for minimum
working hours and paid for the time served by him/her (Adams, 2016). A manger supervises
their work, they cannot send someone to do their work, and the business provides the materials,
tools and equipment for their work. The contract state the term employee in it as their
employment status.
Application and Conclusion:
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In the present case driver are not allowed to work on their terms and conditions,
equipment and tools are provided by Pegasus only. Hence, it can be stated that drivers are not
self-employed and must be recognized as employee of organisation.
Conclusion:
TASK 3
Registered company and its legal status
The legal status of company will includes that it is wholly different from all their owners
so it is require to have their books of account need to be different. The financial books of
accounts also need to be separate from that of owner. While the management of company will be
regarded to as controlling power of whole company with having board of directors as well. So if
the company will be becoming registered after the specified process then it will be called to as
having specified legal status (Adams, 2016). As this is that workplace which would be having its
official records of ROC with workplace, stock market and company which is having record as
per Securities and Exchange Commission.
Process of registration of a company
There are different types of registered companies which are operating like that of sole
traders, Limited companies and business partnership all of them would be having different steps
to follow for becoming registered company within UK. Like for becoming sole trader the
company need to have National Insurance (NI) number and registered for self-assessment with
the HM revenue and customs (HMRC) then the trading will be done under their name or
choosing business name.
Roles of directors in a registered company
The company director are elected or appointed to manage a company's business and
affairs. A director's duties can include: determining and implementing policies and making
decisions. While the binding the company to contracts with suppliers, lenders and others dealing
with the company. The board of directors are in charge of the management of the company's
business; they make the strategic and operational decisions of the company and are responsible
for ensuring that the company meets its statutory obligations. It is very important for company to
have director and the secretary of company in way of making sure that company accounts and
report with properly prepared. While directors will not be living within having living into UK but
companies must be having all offices for registered office address. The company is having
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maximum of fifteen directors which could be increased with passing a special resolution with a
minimum number of director within company.
Decision on establishment of the company
The decision for establishment of company will be taken by the company’s owner to
where to establish their office or how they would be dealing with how the company would be
working (Adams, 2016). The decision will be solely based upon the owner or director only.
However it could also be included that there will be some shareholders who should be included
within the decision making process of company of their establishment.
TASK 4
Alternative legal solution (ADR) to resolve business disputes
Concern of Pegasus is very genuine as going to court for resolving a dispute can be a
lengthy and expensive process which sometimes exited for months or years. This consumes a lot
of time and money of both the parties to issues (Adams, 2016). Hence, concept of alternative
dispute resolution measures is developed to solve disputes both personal and professional
without going to court.
Alternative dispute resolution methods are the one which can be adopted by parties to
dispute to resolve their problems without going to court. It is also termed as out of court
settlement which is a faster way to solve issues. This is process in which parties on their own or
by consulting third parties usually called as arbitrator or mediator are referred to solve the
dispute and give a decision. Type of Alternative dispute resolution:
Arbitration: in this method parties appoint a common person known to both as
arbitrator. The decision given under this method is binding on parties to dispute so it is most
commonly used method to make out of court settlements.
Mediation: in this method a third person is appointed a mediator with mutual consent of
parties to dispute unlike arbitration decision taken in mediation is not binding on parties
(Statutory dispute resolution procedures, 2018). The mediators serve as a link between parties
so that they can reach to a decision. The mediator do not decide outcomes of a dispute rather
he/she serves as a link between parties to reach an amicable decision for their issue.
Negotiation: in this method no third party is involved rather both parties to dispute take
control in their hands and negotiate over issues and try to reach a solution for their dispute.
Arbitration:
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This is a type of ADR in which a person is appointed as arbitrators by mutual consent of
parties to dispute. Generally, individual appointed as arbitrators is known to both parties in order
to avoid any favor towards any one party. After, apportionment of arbitrator the dispute is-
presented to him/her along with facts and evidences from both parties. Arbitrators gives a
decision after taking into consideration interest of both parties and with their mutual consent.
The decision so passed have a binding effect means no party can deny the decision ones it
has been given and accepted by parties to dispute. As it have a binding effect means that no right
lies with parties to make an appeal to court against the decision given by arbitrator. The parties
lost their right to appeal when they enter an arbitration clause in agreement.
Advise to Pegasus:
In Pegasus, Jay and Alex are advised to opt for alternative depute resolution as a remedy
to resolve their business disputes through arbitration as this consumes lesser times and money of
both the parties and give a faster decision as compared to court proceedings. This advice is given
to Pegasus after considering the fact that cost of obtaining per hour legal advice amounts to £350
which is very high and sometimes can be more than the amount involved in dispute. Hence,
Pegasus must go for arbitration as a dispute resolution and includes a clause in the agreement to
refer arbitration to solve any dispute arising between parties to arbitrators.
CONCLUSION
From the above made report it can be concluded that the Legal system in UK has been
divided into civil and criminal law and it gets its law from different sources mainly act of
parliament, customs, EU and judicial precedents. The employment status of the drivers in
Pegasus has been defined full-time employees and eligible for all benefits and rights available to
employee in full-time emplacement. Further it can be interpreted that Jay and Alex must
registered their business as a registered company to get a legal and separate legal identity for
their business. They have been advised to go for arbitration under alternative dispute resolution
measures as it is less expensive, time consuming and easy and faster way to resolve business
issues.
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REFERENCES
Books and Journals
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 71.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 75.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 107.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 418.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 507.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 532.
Online
Statutory dispute resolution procedures. 2018. [Online]. Available through
:<https://www.legislation.gov.uk/ukpga/2002/22/section/29>.
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