UK Legal System - CRED Case Study

CRED is a start-up fintech company established in 2018 in the United Kingdom. This is a
private limited company that provides credit cards payment to customers with 251-500
employees.
This report is mentioned the basic nature of the legal system and its potential impact on
businesses. Thereby, they can clearly understand and operate rightfully.
The legal system includes rules, procedures, and institutions can be carried out through
legitimate means (Practical Law, 2021).
1. Civil law (includes socialist law): a system of legal documents (written law)
2. Common law (Eg: US, UK, Australia, India): case law, statute
3. Theocratic law (Eg: muslim countries and israel): the Koran
4. Customary law (Eg: Africa): life experiences, religious, or philosophical principles
Definition: Laws consist of rules that regulate conduct of individuals, bussinesses, and other
organisation in society. (Sashi, 2021)
Functions of law: In the legal system, there are many functions of law. One of the most
important functions is keeping the peace and promoting social justice. In addition, promoting
personal freedom, maintaining the status quo, and creating moral norms.
The analysis in this research will be based on Common law. Currently, the Common law
system in England and Wales combines the passage of legislation with the setting of
precedents through case law.
The kind of government in England is Monarchy, and the country is ruled by Queen Elizabeth.
However, the Queen does not participate much in England's legal system. But the Prime
minister does, Johnson who is the current prime minister of England (ICLR, 2020).
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It s clearly seen from the chart that the Supreme Court divided into 2 parts, which are
Criminal division (appeals from Crown Court) and Civil division (appeals from the High Court,
Tribunals, Country Court). Specifically, Civil court handles with small disputes, whereas
Criminal law handles with conduct that are against the law. From the High Court is divided
into 3 divisions:
o Queen’s bench division: contracts, terms, and other common law issues
o Family divison: in terms of matrimonial case and family property
o Chancery division: regarding to equity matters, trust, revenue, bankruptcy and
partnership
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(Court System in the UK, 2021).
Civil law deals with the disputes
between individuals,
organisations, or between the two,
in which compensation is awarded
to the victim.
These cases will be dealth with
ouside the criminal court
Criminal law is the body of law
that deals with crime and the
legal punishment of criminal
offenses.
These cases will be hear by the
criminal court system
It falls on the plaintiff It is always on the state/
Government
Landlord-tenant disputes, property
disputes, personal injury, etc.
For example, there was a young
man who was going too fast on
the road and crashed into
someone, causing them minor
injuries and damage to this
person's motorbike
Theft, assault, robbery,
trafficking drug, etc.
For example, when a young
man stole a bike and was
discovered in a residential area
Interrogation proceedings Litigation
It is the agency that applies the
law
It is a law-making body (set off
laws)
The person responsible will be
obligated to compensate for
injuries or damages (health costs
and cash). Depending on that,
there may be additional penalties
A guilty defendant is punished
by incarceration and/ or fines,
or even the death penalty
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