Business Law Report: UK Legal System, Business Structures, Disputes

This report provides a comprehensive overview of UK business law, beginning with an introduction to the English legal system, its sources, and the role of government in law formation. It illustrates the impact of various laws, such as company law and employment laws, on business operations. The report then delves into a legal solution for a business problem, differentiating between employees and self-employed individuals, referencing the Pimlico case study to highlight the complexities of employment status. Furthermore, it examines different types of business structures, including partnerships, sole traders, and limited companies, comparing their advantages and disadvantages. Finally, it addresses alternatives for solving legal disputes. The report offers a detailed analysis of legal concepts and their practical implications for businesses operating in the UK.

Business law

Table of Contents
Business law..........................................................................................................................................1
INTRODUCTION.................................................................................................................................4
TASK 1.................................................................................................................................................4
Explaining nature of legal system of UK...........................................................................................4
Illustrating the impact of the law in the business...............................................................................6
TASK 2.................................................................................................................................................6
Legal solution of the business problem..............................................................................................6
TASK 3.................................................................................................................................................7
Different types of business stryctures................................................................................................7
TASK 4...............................................................................................................................................10
Alternatives of solving the legal disputes........................................................................................10
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Business law can be defined as a branch of legal system that contains laws for the
performance of all the commerce and civil activities. The study shows brief information
about legal system of the UK along with showing role of government in making law and
process of creating law in the parliament. Further, it also provides legal solution of some
business problems along with showing various options through which an dispute can be
resolved.
TASK 1
Explaining nature of legal system of UK.
English legal system
The English legal system includes all the rules and regulations of the country. These
rules are applicable to each person of the country including individuals, corporations, judicial
authorities of the country.
Each rule is made through the act of parliament. Constitute of the UK has been
provided a power to the parliament to make the laws for the country (Miller and Jentz, 2017).
Further, it also contains a clause that each law made in the parliament will have binding
effect over each person of the UK. No person have right to perform any activities which have
overriding effect over the laws made by country. In this regard, it can also be said that the
parliament is at sovereign state in the English legal system.
Sources of law
In UK, there are several sources through which the laws are made in the country. The
major sources of law are as under:
 Common laws: common laws are the combination of justice provided by the higher
judicial authorities of the country. Theses need to be taken into account at the time of
providing their justice over any dispute.
 Legislations: legislations are the statutory of the country. These are the original laws
that are applicable over each person of the country. No one have right to overrule
these laws. Further, each law made in the country need to be contrary with the
legislations. Therefore, these are also statutory of the country.
 EU laws: EU laws are European union laws. being a member state of EU, laws of the
UK need to b comply with EU laws. further, in case any laws of EU amends, each
rule affected y that EU laws are also needed to be amend accordingly. In this regard,
theses are also a major source of law n UK.

 Ethical laws: In UK, for the purpose of maintaining trust and eliminating
discriminations, the ethical laws are being made.
Role of government in law formation process
Government plays a vital role in the law making process. Each stage of parliament in
the law is performed by the authorised ministers of the government. further, the role of
government can be completely analysed as under:
 Preparation of bill: The law formation process starts with preparation of bill.
Authorise ministers of government identifies the need of law in the country and
prepares the bills accordingly.
 Presenting in front of parliament: The bill is presented in front of parliament. Here
the bill is transfers to both house of the parliament i.e. House of lords and House of
committee. In these houses, all stages of parliamentary procedure is being performed
by government ministers.
First reading: It is the primary stage of passing the bill (Orlov, 2016). In this stage the bill is
being thoroughly read by government ministers in front of parliament.
 Second reading: At this stage each clause of bill is being discussed along with their
pros and cons. A vote is being conducted among the ministers. The bill is amended as
per the majority of votes.
 Committee stage: After the amendments in certain stages, the bill is transferred to the
committee of the house. Here the each clause of bill along with the amendments made
earlier are being discussed. The committee members also amendments bill if they
think it fit.
 Report stage: After the committee stage the bill is being reported to the house of
parliament where all the clauses and amendments are discussed.
 Third reading: Here a vote is being conducted for the further processing of bill. The
bill is processed as per the majority of votes.
 Later stage: After getting majority of votes in the favour of bill the bill is transferred
to the other house where all the above mention stages are being processed again. The
whole process is performed continuously until both houses get agreed upon single
terms of the bills. After getting assent of the houses the bill is termed as law.
 Royal assent: The law is send to Queen of London for her assent on the bill. The
Queen provides her assent in terms of her signature on the bill. After getting Queen’s
assent, the law is termed as Act. Act has binding effect over each person of the
country.
In this regard, it can be analysed that the government plays a vital role in the process
of formation of law.
Effectiveness of English legal system

The English legal system gets amended on frequently as per the need of country. For
example, recently, it has recently amended its ADR system, with the help of which its legal
system has become more liberal. However the key drawback of this system is the unwritten
constitute of the country. Therefore, English legal system can be evaluated as an effective
legal system.
Illustrating the impact of the law in the business.
Companies Law:
Companies Act 2006 deals with the company law of UK. It includes rules relating to
each performance of the company. It provides rules for the business from its formation till its
dissolution. In this regard, the company law have potential impact over the business
operations. For example, if the company wants to change its business address, due to
boundation of the company law, business needs to perform a lengthy procedure like,
informing the registrar, etc.
Employment laws
All the laws that provides safeguard to the workers like, national minimum wages
law, employment act, etc. are covered into the employment laws. as the employees are the
key element of an organisation, its business operations majorly effected by these laws
(Creutzfeldt, 2018). For example, when the business appoints any candidate at a particular
post, it has to comply all the rules of employment laws. Due to this complacence, the
appointment procedure of the company may increase.
In this regard, it can be analysed that various laws have potential impact over the
business operations of the company.
TASK 2
Legal solution of the business problem
Employee
Employees are those individuals that are appointed by the business for the purpose of
helping the company in performing its business activities and getting success. These
individuals are appointed by signing a document called employment contract. Clauses of this
bill have biding effect over both employer and employee.
Self employed
Self employed are those individuals that have been employed by the company or the
purpose of helping the company in achieving its goals, but there is no need of signing any
contract while employing any self employed.
Employment status checklist
Factors Self employed Employee

Substitutions They have right t appoint the
substitutes for their job.
They cannot appoint their
substitutes.
Control Employer cannot control way
of performing job of self
employed.
The way of performing jb
can be controlled by
employer.
Uniform They cannot be bound to
wear any uniform
They can be bound to wear
uniforms
Employment benefits They are provided
commission for their job.
Generally salary is being
paid to employees.
Further, as per the Pimlico case study, the Pimlico imposed too much rules includsing
boundation of wearing cloth over its self employed workers (Supreme Court decision
announced in Pimlico Plumbers case, 2018). The supreme court held in this case that the
company can not exercise too much control over the self employed.
From the above definitions, checklist and predecided case study, it can be concluded
that, as K cannot treat aits employees as self employed, due to application of range of control
measures over the employees.
Further, if the company treats its workers as employees, its operating cost will get
increased, as the employee need to provide salary as per employment contract. Further, it will
also increase company’s regular business operation cost, as workers would be needed to pay
a monthly salary.
TASK 3
Different types of business structures
Difference between various business structures
Due to the rules mentioned in various business laws, numerous business structures
differ from each other. The key difference between various organisations can be analysed as
under:
Basis Incorporated Unincorporated
Meaning Incorporated businesses are
those which are framed on the
basis of various legal rules and
regulations (Strong, 2015
).
No legal rules or regulations are
beinvv complied while
formulating theses businesses.
Formation These are formed on the basis of
various business laws.
Theses businesses need not to
comply with any laws. they can be
formed just through starting its
business operations.
Management A roper team is being appointed
for the purpose of management
of incorporated businesses.
Owner plays the role of manager
in the company.
Funding They can raise funds easily due
to their set and trustful business
Due lack of faith of public, raising
fund is atypical task for

structures. unincorporated businesses.
Example Company Partnership firm.
Further, there is also various types of business on the basis of their operations.
Various business activities gets affected though the type of business structures.
Some of the major types of business structures are as under:
Partnership firm:
Partnership is that type of business which is not formed as per any legal structure.
When two or more individuals gets ready to perform various business activities together and
share all the profits or losses generated through those business activities, a partnership
business is being started.
Advantages No legal obligations.
 No need to follow a lengthy formation procedure.
 Efficiency of the business can be enhanced by dividing all the business activities
among the partners as per their professionalism and skills.
 Raising fund is an easy task.
Loss can be shared among partners (Ekberg and et.al., 2016).
Disadvantages Profit is needed to be shared among all the partners.
 Due to no legal obligation, lack of faith of the public.
 Chances of fraud with any partner get increased.
 In case of lack of coordination among the partners, business may suffer.
 Unlimited liability of the partners.
Sole traders
Sold trader is a kind of unincorporated business. Generally it is operated by a single
individual. Being an unincorporated business, it is also not needed to be formed through any
legal procedure. The owner is only the whole and sole of these businesses.
Advantages No formation procedure.
 Can be formed jut by starting the business activities.
 No share of profit.
 Least expensive business structure.
 Privacy in the business can be maintained.
Disadvantages

 Lack of faith of general public.
Raising fund is not an easy task (Cortes, 2015). Lack of perfect management.
 Unlimited liability of thee owner.
 Lack of efficiency of the business.
Limited company:
A limited company can be defined as a business which is incorporated as per the
companies act 2006 of UK. All the business activities of the limited company need to be
performed a per the rule mentioned in the companies act. Further, the shareholders are termed
as the real owners of the company.
Advantages Limited company has a set business structure.
 It contains an effective management of overall business.
 It can raise funds by just issuing shares to the public.
 Due to having a range of legal boundations, general public have faith over the limited
companies.
 Chances of fraud gets reduce due to inclusion of an effective management and legal
obligations.
 Limited liability of the owners.
Disadvantages Limited company need to be formed as per the lengthy formation procedure.
 Involves a huge amount of cost.
 Due to inclusion of a range of people, maintaining privacy in the business is difficult.
in this regard, from the analysis of various types of business strcture, itcan be evaluated
that there are various types of businesses and each contains variety of advantages and
disadvantages with them. At the time of deciding the type of business to be formed, each
needed to beanalysed carefully.
Although, from the above analysisi, it can be said that the limited company is the best
business structure due to being a set business structure and involving trust and faith of
the public. In this regard, it can be recommended to K that it should set up a limited
company, as it would provide lots of benefits to K.

TASK 4
Alternatives of solving the legal disputes
In case, any dispute arises in the business, it is needed to be resolved. Along with
approaching to the court, there are also various alternatives that can be used by the firm to
resolve its dispute.
These alternatives of resolving any legal disputes are termed as the ADRs i.e.
alternative dispute resolving systems. In this system, there are numerous alternatives that can
be adopted by K to solve its IT dispute. Some major alternative systems are as under:
 Neutrals: In this type of ADR system, the court appoints an evaluator. The evaluator
educates the parties to the dispute about various arguments of the dispute, chances of
winning, strengths and weaknesses of the dispute, etc. Along with the settlement
options.
Mediation: in this system, all the parties of dispute, the parties appoint a third party called
mediator (Types of ADR systems, 2019). They provides all the information about the dispute.
The mediator analyses the whole dispute and resolve it as per skill and knowledge.
 Arbitration: in this system, the dispute is being resolved through the arbitrators.
Arbitrators are the authorised individuals that are authorised by the court to resolve
the dispute. Further, due to inclusion of court, disputing parties need to follow a set
procedure for resolving their disputes.
 Negotiation : in this type of system, the parties come together and negotiate their
clams. After such negotiation, they get agreed upon a single term for the purpose of
resolving the dispute.
In this regard, there are various alternatives to resolve any dispute. K can choose any of
the above alternative for resolving their IT dispute. The key advantage of solving the
legal dispute through ADR system is that these systems are less time consuming.
CONCLUSION
From the analysis of the above study, it can be concluded that, the legal system of UK
provides a base to perform each activity in the country in a set manner. Further, the legal
system also helps in eliminating fraud from the country. For the purpose of forming any law,
a bill is needed to be passed in parliament through a lengthy procedure. Further, the English
legal system is an effective legal system. The study has also concluded that there are various
business laws through which the business operations get affected. Due to rules mentioned in
the business laws, the business structures can be divided into numerous categories. Further,
there are various alternatives available through which a company can resolve its disputes.

REFERENCES
Books and Journals
Miller, R. L. and Jentz, G. A., 2017. Business law today: The essentials. Cengage learning.
Orlov, V., 2016. Introduction to business law in Russia. Routledge.
Strong, J., 2015. Why parliament now decides on war: tracing the growth of the
parliamentary prerogative through Syria, Libya and Iraq. The British Journal of
Politics and International Relations. 17(4). pp.604-622.
Ekberg, K. and et.al., 2016. New business structures creating organizational opportunities and
challenges for work disability prevention. Journal of occupational
rehabilitation. 26(4). pp.480-489.
Cortes, P., 2015, August. The impact of EU law in the ADR landscape in Italy, Spain and the
UK: time for change or missed opportunity?. In ERA Forum (Vol. 16, No. 2, pp. 125-
147). Springer Berlin Heidelberg.
Creutzfeldt, N., 2018. A European Informal Justice System?. In Ombudsmen and ADR (pp.
119-138). Palgrave Macmillan, Cham.
Online
Supreme Court decision announced in Pimlico Plumbers case.2018. [ONLINE] Available
through <https://www.employmentlawatch.com/2018/06/articles/employment-uk/
supreme-court-decision-announced-in-pimlico-plumbers-case/>
Types of ADR systems. 2019. [ONLINE] Available through
<https://konsument.gov.pl/en/redress/types-of-adr-systems/>