Business Law Report: Parliament, Law Sources, Business Impact Analysis

This report provides a comprehensive overview of UK business law, examining the concept of parliamentary sovereignty, the various sources of UK law, and the differences between common and civil law, as well as direct and representative democracy. It delves into the government's role in law-making, the application of statutory and common law in courts, and the effectiveness of the legal system in terms of reforms and developments. The report also analyzes the potential impact of contract law, employment law, and company law on businesses, differentiating between legislation, regulations, and standards. Furthermore, it explores different types of business organizations, their management, and funding, and concludes with recommendations for legal solutions for dispute resolution. The report covers key aspects of business law in the UK context and the potential impact of legal frameworks on business operations and strategies.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A. The meaning of Parliament is sovereign and the various sources of UK laws. ....................1
B. The government's role in law making process and common & statutory law which are
applied in courts justice...............................................................................................................3
C. Company, employment and contract act has potential impact on business along with
difference between legislation, regulations and standards to analyse this potential impact........4
TASK 2 (LO3).................................................................................................................................6
TASK 3 (LO4).................................................................................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is governing business through dealing with different laws such as private
law and public law (Bian, and Veloutsou, 2017). The report will lay emphasis on the meaning of
parliament is sovereign and the various sources of law in UK. Also, the difference between
common law and civil law will also be disclosed in this report. This report will also lay cover
difference about representative democracy and direct democracy . Report will also highlight
about the role of government in law making along with application of statutory law and common
law applied in court's justice. The report will also explain about the effectiveness of legal system
in the term of reforms and development. The potential impact of contract law, employment law
and company law will be discussed in this report along with the difference between legislation ,
regulations and standards to gain the potential impact on business. The report also discloses
about different types of business organization which are formed legally. Also, how this
organization are managed and funded will be covered in this report . Some recommendations for
legal solutions for resolution of disputes will be discussed in this report.
TASK 1
A. The meaning of Parliament is sovereign and the various sources of UK laws.
‘Parliament is sovereign' is a concept in constitutional law of some democracies of
parliamentary. This holds about a legislative body which has absolute sovereign as well as
supreme all institution of government (Frame, and Moss, 2015). It includes judicial or executive
bodies. It is a principle which is applied all around the world . It focuses on the parliament is
superior among the judicial and executive government branches. The term sovereignty is a full
power and right of a body which is governing over itself. Without any other interference from
outside body or sources (Akdeniz, Taylor, and Walker, 2018). Therefore, for the UK constitution
it is cornerstone and superior authority.
Legal system is an approach which resolves dispute , disagreement, etc. The norms of
people under society is also provided under this system (WIllIams, and Walters, 2018) . The
legal system safeguards from chaos and conflicts among communities as well as social groups.
The various sources of UK laws are
Common law - This law is concerned with decisions executed by appellate court which
is a major source of law (Ekara Helfaya, and Moussa, 2017). The legal system is adopted under
Wales & England. The law is formed is based on principles that is established under apes and
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appellate court (Shiwakoti, Iqbal, and Funnell , 2018). Thus, the source of law is provided
through highest authority and judicial for the representatives of lower divisional is crucial
element in formulation of UK laws.
Act of parliament - The parliament act is focusing on making modification or changes in
the existing law or making of new law. The bill under act of parliament is approved by house of
lords, royal monarch, house of commons, etc . The bill in process of becoming law need to go
through all these stages (Conley, and Page, 2017). After approval of all the authorities the bill is
converted into law. Thus, it is important for UK laws to proceed this stage for every law.
The legislation - This plays a crucial role in formation of law as the law which is formed
under legislature is referred to as legislation. The legislative law is followed all over the UK.
Although UK didn't have any written constitution but legislation has the power to infringe
existing law or new law (Akdeniz, Taylor , and Walker, 2018).
European law - The European law is operated in European union state members. The
UK law is operated by European members. This law is taken into consideration during formation
of UK laws (Ekara Helfaya , and Moussa , 2017). Along with it, European law is a source of law
in UK as European union is needed to be implemented in formation of law.
Difference between common law and civil law
The legal system of common law is characterized through case law in which law is
developed by judges by executing decisions in courts whereas in civil law's legal system is
originated in Europe and the core principle is codified under referable system (Fulton, and
Pringle, 2017). The common law is followed in US , England, Canada, Australia and England
whereas Civil law is followed in China , Germany, South American and African nation , Spain
and Japan.
Difference between representative democracy and direct democracy
A direct democracy is concerned with people are treated as a part of decision making
whereas in representative democracy people have right to elect their representatives by different
election styles (Corrigan, and Sayer, 2018). Another difference is that direct democracy is
suitable for small communities whereas for the large communities the representative democracy
is most suitable.
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B. The government's role in law making process and common & statutory law which are applied
in courts justice.
Identification of need – The ministries analyse whole legal system for need
identification. They evaluate the country's condition in according to their requirements. These
ministries properly analyses all the conditions of country like misconduct, crime rates, that
access them to analyse the basis of making of the law.
Formation of bill – Then the ministries begin their role which begins from need
identification till implementation of law. The steps in need identification is further executed
under formation of bill. The government ministries formulate bills in draft and begin the process
of enforcement of law.
First reading – The bill is a draft that is made according to instruction of government.
The bill title and components in which it is comprises is read among house of commons (De
Fraja, Facchini, and Gathergood, 2017). Unless nothing is done in this stage except reading.
Second reading – This stage consist of bill which is discussed by different members of
parliament and an activity of debate is done before preceding of bill to further stage.
Committee stage – On this stage, the bill is directly refer to house of commons committee
for further and in detail examination (Yu, Cao, and Tan, 2019). The committee suggests about
amendments needs they observed in the bill.
Report stage – The report stage is concerned with preparation of a debate which is
conducted by a committee for the concern face by these committee members.
Proceedings in the House of Lords - At this stage, the bill is then sent to house of lords
for the further process (Shiwakoti, Iqbal , and Funnell, 2018) . Also, the amendments are made
by the house of commons is analysed under house of lords.
Royal Assent – This is the final stage in which a bill become law by the approval of royal
assent in which the monarch holds the final authority for the approval of act.
The common law is formulated by courts of higher divisional. Therefore, it is only
applicable to lower divisional (De Fraja, Facchini, and Gathergood, 2017). While statutory law
sets by legislature and is used to define laws which is in writing. The statutory law is applicable
on whole UK.
Effectiveness of legal system in terms of reforms and development
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Since 1965, the law of England and Wales are reviewed through review commission.
This body of commission is independent for examination of fairness and effectiveness of law
(Conley, and Page, 2017 ). The law commission act, 2009 aims for the improvement in ratio by
implementation of the recommendation (Yekini, Adelopo, and Adegbite, 2017). Since 2016 , a
reform programme is launched in 2016. On the other hand, as the legal system is in not in written
form therefore it is not that much reliable and this is the biggest disadvantage of this system.
C. Company, employment and contract act has potential impact on business along with
difference between legislation, regulations and standards to analyse this potential impact.
Impact of employment law, contract law and company law on business.
Employment law - This law is concerned with employees and the company they are
working in it. The employment law provides benefit to employees as well as employer (Bian,
and Veloutsou, 2017). The rights of employees are stated in this law which enables them to take
stand.
The employment law is consisted of different set of laws under which Employment act,
2002, minimum wages act, 1998, anti discrimination act, 1991, etc . are there (Yekini, Adelopo,
and Adegbite, 2017). This law not only regulates law regarding employees but also for the
company so that they stay in line with the law (Frame, and Moss, 2015). The employment law
impacts directly on businesses to regulate them and business entity which need to follow law
under smooth functioning.
Contract law - It is an agreement in which more than two parties binds together to
perform a contract. The contract law governs while making contract and also regulate all
business transaction within a particular contract. All the business entity enters in contract with
other business need to follow this law (WIllIams, and Walters, 2018) . The purchase and sales
are done in accordance with this law. The companies to follow this law is to overcome financial
uncertainty. It is the obligation of every business to follow this law while executing any business
contract. Sue and other lawful action can only be executed when businesses follow this law of
contract properly (Fulton, and Pringle, 2017).
Company law – The company law is am essential element governed under Companies
act, 2006. The company law enables very lengthy procedure for a company while executing
merger and acquisition with any other company. The company need to go through special
resolution which foster a lengthy procedure for them. Also, the board of directors of companies
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who are acquiring go through very lengthy process by signing different documents under
company law (De Fraja, Facchini , and Gathergood, 2017). The process of documentation
requires time to get approval from legal authorities. Along with it, cost of advertisement also
rises while performing merger and acquisition with other company.
The company law lays a time consuming procedure which need to follow by the
companies. To perform aligning functions in the company helps business to prevent hinder from
all the legal actions.
Difference between legislation, regulation and standards
The legislation is a set of rules which is formulated by government of state, city or
country. Rules act as a body of legislature and these are signed by ranked officials like president
or governor (Akdeniz, Taylor, and Walker, 2018). Every individual being a citizen of a country
need to follow these legislations which are implement by the government in order to be in
aligning of the law. The laws which are in relation with business such as company law , contract
law, employment law, health and safety law, etc . are followed by all companies to avoid all the
legal hazards.
Regulations are far different from legislation because they law enforcement instruction
for the laws and the procedure of carrying them . These are also called administrative rules or
laws because the law force are carried by regulations and it is mandatory to apply these
regulation on laws (Ekara Helfaya, and Moussa, 2017). It is essential for the businesses to follow
regulation along with the legislation as these offer proper guidance to an individual for smooth
business operations.
The standards are different from legislation and regulations. These lay guidelines and
requirement that is provided for system, services and products so that things do work regarding
it. The need of standard is consistent as this ensure efficiency, quality as well as safety.
Standards formulated in reference documents form provides detailed criteria and also lay
guidelines for the involvement of individuals and businesses (Yu, Cao, and Tan, 2019). The
business activities are affected a lot by standards like by following these standards and to meet
the need of business, they ensure products quality in accordance with stated standards . The
company can not go beyond these set limits which is stated in standards.
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TASK 2 (LO3)
In case of formation and expansion of the business into different types it includes the
following ways in which the three friends can establish their business (Business Law and
Regulation, 2019). There are various types of business such as
 Sole proprietorship: In these types of business, the sole proprietorship is run by the
individual person or also known as sole traders which carry business activities by its own
terms and condition and also there are less chances of risk arises in that business. But the
procedure to establish such business is same as they are bound to follow certain norms
regarding the company trade mark (Ahammad and et.al., 2015). In the case of being the
owner of the sole trader business, the owner is personally liable for all the profits which
they gain in any transaction relating to company and also losses are to be incurred by that
person if they not take the accurate decision relating to benefits to the company. Thus, to
establish the business as sole proprietorship, person needs to be publish in newspaper
regarding their establishment of business as incorporated company and also take
permission to carry their activities in larger scale.
 Partnership: In these types of business it includes two or more person to carry the
business activities and termed it as partnership firm. There are certain rules which are to
be imposed in the partnership business and every partner if they want to enter into the
partnership business had to signed their partnership agreement. Thus, this agreement is
valid till there is existence of all the partners (Hedley, 2017). In case of resultant in death
of any partner, the partnership deeds are not valid and it is to be dissolved. There are
certain terms and condition which every partner are bound to follow and the terms are
regarding to sharing the profits and losses in the company. Partner had to equally share
the profits and also the losses are to be shared equally so that each partner are liable to
enjoy the profits and losses in the company. The major disadvantages while adapting the
partnership firm is that the profits earned by single partner dedication towards work
enjoys the benefits by all other partner and also the advantages is that it reduces the
chances of risk which is overburdened by single person (Jones and Sufrin, 2016). As all
the partner are bound to follow their partnership deep and also they are not liable to
neglect any of the terms which is mentioned in the partnership deed.

 Limited Liability company: This company is related to the corporate structure and in
such cases the owners are liable to pay the debts or liabilities to the company which is
related to personally uses. As the company can be limited by share or limited by
guarantee and they are liable to wok under the corporate norms. In this company, the
owners are generally the members of the company and in such cases if there is death of
any members the company will not be dissolved (Press.Lee, 2017). They continue to
carry their activities to bring more profits in their business. By choosing this business, it
results in getting the high reputation in the market and also there are more chances of
facing risks in the business. In this business article of association and memorandum of
association are to be prepared by company and they had to follow the norms while
carrying their activities internally and externally.
In case of managing and funding various types of business, it includes the following ways to be
varied from this point such as the matters related to
 Partnership firm: In case of partnership firms they are managed by all the partner in the
company and the funding is raised through partner who entered into the partnership
agreement and they are bound to share the profits and losses equally. The major
advantages of partnership agreement is that the partner can easily borrow loan from any
bank or investor only when they are stable in the market and there reputation and
goodwill reflect the smooth working if the company (Lowe and et.al., 2016). In case of
death of any partner the partnership is to be dissolved and in such cases the profits and
losses are to be shared equally mentioned in the partnership deed.
 Limited liability company: In this case of company, they are to be managed by the
members itself and they are not liable to face any errors which arise in resultant of debts
and any case of liabilities are to be occurred. Thus, in case of funding they are to be
funded by issuing shares to the public and through such share they gain profits by raising
money (Bayern and et.al., 2017). They can also take loan from banks and investors to
invests money in the company. But to invests money, it is the duty of the company to
represent company background strong and reputed in the market and also if they are
financially strong can invent money in some project to get more profits by having success
in that projects.
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The major difference between the partnership firm and limited liability company is
related to liability of the debts. In case of partnership firm, the partner are personally liable for
such debts and any such losses which they had to face in near future. In case of limited liability
company, the owners are not personally liable to pay such debts. In case of registration of
partnership firm is not so compulsory, as it can be incorporated by announcing the name of the
company. In case of LLC the registration is compulsory as they can issue share in the market to
invite public to invest money in the company (Bouch and et.al., 2018). If the 3 friends choose to
enter into the partnership firm they are not bound to user such word such as limited or private
limited to the company but in case of having the LLC they can put such words after their
company name. The major difference which arises in case of partnership firm is that the
members are unlimited and it is affected by death of any partner. In case of LLC, the company
can be limited or unlimited through its members or creditors and the company is not affected by
death if any member. It will continue survive to carry its activities for further use.
Thus, by extending their business into large scale Jane, Penny and Marie choose the
Limited liability company to expand their business and earn profits to increase their goodwill and
reputation in the market. The major advantages is that the business can easily be managed and
funded by public and if they take loan from any bank or investors it can be easily approved by
viewing their strong reputation in the market (Westermann-Behaylo, 2018). Thus choosing
limited liability company is the best way to enhance their business and start trading their
business into large scale.
TASK 3 (LO4)
CASE 1
Issue:This case is related to London based company champion Ltd and they financed in such
business to move their business sites in North London for the development if stadium to organise
the premier league club. After moving their business, they face many losses by seeing the least
interest of the customer in their expansion. The company has also defaulted numerous of times
on paying the payment to banks. After viewing such defaulters, creditor filed petition regarding
the company to be wound up by the courts.
Rules: In case of winding up of company, there are two types of winding up, winding up by the
order of the court it means compulsory winding up and voluntary winding up by the order of
member and creditors (Yeoh, 2016). Winding up from is such matter in which the company is
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not able to pay its money to creditors and debtors and in such case they order court to wound up
company in grounds of not carry their business activities and not dispose their money to pay its
debts.
Application: Thus wound up by the order of the court resultant in case of Champion Ltd is that
by shifting the business into new sites they are not getting more profits as resultant of lack of
interests of customers in their stadium (Willett and Koutsias, 2016). Thus, they cannot dispose
such payment to creditors in such case creditors order court to wound up such business and
appoints a liquidator to dispose their assets by paying their amount due in such business.
Conclusion: From the above study it is to be concluded that as company is not applied for such
failure in context of expanding their business into large scale, and after expanding they face the
financial crisis in relation to making payment to creditors. In such case court order company to
wound up their business and also from such sale amount they make payment to creditors to
secure their interest in that business for longer term.
CASE 2
Issue: In this case Mr Anderson was the CFO in the Amber Ltd and carry the confidential detail
for the company. Amber company had certain rules and regulation regarding the resignation
period CFO that is any person wants to resign from the job they had to serve the 12 months
notice period of the company and cannot work with any other company while he serves his duty
to the company. Mr Anderson by getting the better opportunity from Beta Ltd. company join the
post of CEO and just give the formal resignation in writing regarding not comfortable with the
work and also the work is not moving according to their condition. Thus, Amber Ltd. company
wants to file a suit against Mr Anderson in context of committing breach to their norms and also
not fulfilling their duty which they committed for 12 months to be fulfilled.
Rules: Under the companies Act, 2006, contract laws are to be performed which secure the
rights of the parties and also employees are bound to follow certain norms. Under contract law
various rulers and regulations are imposed regarding employees which they had to follow
without any negligence (Ahammad and et.al., 2015). In case of companies Act, rules are
implemented so they every parties can easily expand their business into large scale.
Application: From the rules made under contract law it is thus related to case study of Amber
Ltd. In this case Mr Anderson committed breach in company as it is clearly mentioned in that
contract law that they had to fulfil the time period at the time of resigning from the job (Hedley,
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2017). Amber Ltd, company can claim for breach to contract against Mr. Anderson as they
offering the higher post from Beta Ltd he switched his interests in some other company. Thus,
contract law is valid if both the parties agree for certain norms which is made between the parties
and in such case Mr. Anderson is agreed with that rules. Thus, he is liable to be punished under
breach of contract.
Conclusion: From the above study it is to be concluded that to resolve such problem which
resultant in breach of contract, Mr Anderson had to fulfil certain norms as he holds the most
confidential information of the company and also agree with the terms which is imposed by
company regarding the resignation period.
CONCLUSION
From the above study it is to be concluded that business law is usually implemented for
companies to work according to the norms imposed by the government and are bound to follow
the rules and regulation regarding to secure the rights of employees and citizen of country. In
case of English legal system it determines the various sources of law which helps parliament to
verify the new changes and then amend such existing laws or bring new laws in the country.
Under the companies Act, 2006 they implement various laws under the employment law,
contract law and bring various changes which results in providing major benefit to the
companies. It is also concluded from the above report that there are various types of business
which the three friends can choose out of any. Thus, the chosen business such as limited liability
company are to be managed and funded by member and public and the various factor regarding
to formation and its nature are also to be discussed in this report. Thus, business law bring
various challenges and also its method to resolve problems between the parties are also to be
initiated in this report.
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Online
Business Law and Regulation. 2019. [Online]. Available through:
<https://www.icaew.com/library/subject-gateways/law/business-law-and-regulation>.
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