Business Law Report: Analysis of UK Legal System, Employment, Business

This business law report provides an overview of the UK legal system, including its division into civil and criminal law, sources of law (common law, Acts of Parliament, European law, and customs), and the process of passing a bill in Parliament. It further analyzes employment law, specifically the Pimlico Plumbers case, differentiating between employees and self-employed individuals, and examining employment rights and the employment status checklist. The report then delves into business structures, discussing legal personality, types of organizations (partnerships and corporations), and the steps to form a company, along with the roles of directors and methods of raising capital. Finally, it explores alternative dispute resolution (ADR) methods, with a focus on arbitration, advising Pegasus on resolving commercial disputes, considering the high cost of litigation.

Business law

Table of Contents
TASK 1............................................................................................................................................1
TASK 2 ...........................................................................................................................................3
TASK 3............................................................................................................................................3
TASK 4............................................................................................................................................5

TASK 1
Introduction Of English legal system: The legal system of UK is administration of the
procedure and process for interpreting and enforcement of the law. This system is followed by
many courtiers such as Canada, New Zealand and Australia. This defines he legal framework of
hoe laws must be made, followed and applied in general practices of the nation.
DIVISION OF LAW: the division of the legal system of UK is broadly divided into
two parts that deals with different types cases and defines remedies to solve those cases.
Civil law: This law protect the interest of a person against another and the state. The
civil law defines the rights and duties of individual of UK. The laws are formed through
legislation and common laws(Court decisions). The remedies for an act of civil wrong is
resolved through giving claims for the damaged suffered by the innocent party. The cases in this
law includes tort, negligence, employment dispute, family dispute etc.
Criminal law: this law covers any from of criminal behavior irrespective of the scale of
severity and present the citizen the boundaries of the conduct in UK. This law defines what are
offenses and what palatines can be given to criminal. Majority of the act for this prance are
made through act of parliament such as Theft and offense against the person act. A person is
convicted under this law for committing offenses such as rape, murder, sexual assault, battery
etc.
SOURCES OF LAW: Sources can be defined as the origin of the law or from where the laws
are originated. Different laws in the UK gets their bases from various sources which are
presented below:
Common law: this is a unique source in which the court ruling are given binding effete
through doctrine of judicial precedent. The decision of a court is mandatory to be referred by a
lower court in case with similar matter. The ruling are to be referred in order of hierarchy no
higher court is bound to follow the decision given by a lower court.
Act of Parliament: It is also termed as primary legislation and an act or statue is formed
through following the process of making law (What is an Act of Parliament?, 2018) . The laws
so made are mandatory for all the citizens of UK. The courts and judges are also required to
follow the legislation in the same manner as they are formed no changes can be made by anyone
in interpretation.
1

European law: UK is a member nation of EU so the all the laws bad legislation made
for members are applicable to UK as well in case there is a contradiction between UK and EU
law, EU one gets an upper hand and this does not mean that the UK law is eradicated.
Customs : the oldest sources of the UK law, initially the laws were bases on the general
practices and behaviors of the communities and society. It is still a part of Sources of law, in this,
laws are made in the basis of the behavioral practices of the locals or national level patterns.
PASSAGE OF A BILL IN PARLIAMENT: A draft of the legislation which is
approved by the cabinet ministers is present in the parliament for getting the assent from both
houses of parliament to become a law. The process goes as follows:
First reading: One of the house that is House of Lords or House of common is presented and
each member is given a copy of bill and title is read out this stage.
Second reading: here a all the member participate in the debt to discuss the principles of the bill.
Committee stage: at this stage changes and amendment in any or all the principles of the bills
are suggested (How does a bill become a law?, 2018). This changes are voted upon to make a
pert of the bill.
Report stage: the final bill with all the amendments is considered and votes to pass for the
further approvals.
Third reading: at this stage amendments are often mad to clarify Amendments at third reading
are often used to clarify specific parts of the bill and to allow the government to make good any
promises of changes.
Approval by second house of parliament: bill approved by one house is presented to another
house and goes thorough same procedure as defined above.
Royal assent: with getting consent of both houses bill is made a law with approval, from the
Monarch.
Problem associated with UK constitution: is that is not present in Written form and the
parliament is the main authority of the nation rather tan then Government and it still follows
tradition way to make laws such as customs.
CONCLUSION: this can be concluded that English legal system have a vast expansion
and is followed by different Countries and it was originated somewhere in 12th century. Civil
law deals with cases of civil wring on the other hand criminal branch deals with offenses of more
2

serious nature. The main source of UK law are act of parliament, case rulings, customs and EU
law. A bill after getting approach from both the houses and the royal assent becomes a law.
TASK 2
Pimlico case: In this case ruling was given by the court that with application of the
employment checklist the plumber Smith were given a status of employees (Pimlico Plumbers
Ltd and another (Appellants) v Smith (Respondent), 2018). He was eligible to holiday and leave
pay and all employment rights.
SELF EMPLOYED: provides services in accordance with own terms and condition and
can also delegate work to other. He/she can turn down the work as when they desire and
controls all the aspects of work done. They can bring outside assistance to carry out the work .
No presence of contract between parties.
EMPLOYEE: An employee provides his/her personal services and they must carry out
the work in accordance with employers request and instruction. The employee work as per terms
and condition of employer as they only decide what, how, where and when to work. Employee
do not have a right to substitute another to do hos/her work. Employment contract is present
between employer and employee.
EMPLOYMENT RIGHTS: All the employees of a company are entitled to statutory rights as
defined under the employment Act 1996. These are related with working hours, basis wages,
bonus, holiday, sick and leave pays. They must not be discriminated and care must be taken to
ensure their health and safety.
EMPLOYMENT STATUS OF WORKERS CHECKLIST:
Limited control over the workers: Pegasus have full control over the drivers from
deciding their work shift to not make is compulsory to wear uniform of the company.
Absolute right to Substitution: the drives has no complete right to substitute another
driver rather other-one must be from Pegasus only.
No obligation to provide work: the drivers were dependent on Pegasus to provide the
work as they called the drivers in accordance to the delivery status of the clients.
Clear right of worker to turn down the job: they drivers can not deny the work
allocated to them.
3

CONCLUSION: there is a significant difference between employee and self employed
and drives are delegated as workers of Pegasus with application of provisions of employment
Act and checklist of employment status.
TASK 3
LEGAL PERSONALITY: The doctrine of separate legal personality of the corporation
is a fundamental assumption on which successful market economies are based. This defines that
a company have its own corporate legal identity separated form its directors and members. This
principle was set in the case of Solomon V Solomon which stated that owners can not be held
libel for the dues of the company.
TYPE OF ORGANIZATION:
Partnership: A business is established and operated by two or more person and they
bring in their own capital to run the firm. Profits are shared as per the profit sharing ratio
decided by all the partners.
Corporation: A company formed and registered under Company's act 2006. this can be
limited and unlimited. Limited is the one in which liability of the shareholders and directors are
limited to the capital contribution or shareholding. Unlimited companies are those in which
directors are liable to pay all the outstanding amount due to the creditors in case of insolvency or
dissolution.
REGISTERED COMPANY: it can be stated as a company formed and registered
under Company act, 2006 in the UK.
STEPS TO FORM COMPANY:
 Memorandum of Association: it contains name and registered office's address of the
company. The name must not be similar or identical to another name and do not
represent any flag of any nation.
 Article of Association: this contains rules and provisions related with the company's
operations.
 Statement of shareholding: this present the issues and subscribe share capital of the
company along with name of members and shareholders.
 Statement of Compliance: this states that all the legal requirement to register a
company have been complied with.
4

ROLE OF DIRECTORS: the directors are presented with cretin roles and
responsibilities under the Company's act 2006. These are presented under section 1710 to 176:
 The directors are required to act within the powers allotted to them under article of
association of the company.
 They have a duty to pro note the success of the business.
 They are responsible for not taking any benefits from any third party under the capacity
of directs of the company.
 The directors must not get influences by another other person while taking business
decision and practice diligence, care and skill.
 The directors have responsibility to not to take personal interest in any future or present
transaction of the business.
RAISING CAPITAL: for running and formation of business capital is required and this
can be created through different sources:
 Business angles: the wealthy people invest in high growth business or in those firms
that have a potential to grab a significant market position in return for shares of the
company.
 Venture capitalism: Venture capital is also known as private equity finance. Venture
capitalists look to invest larger sums of money in return for equity.
 Crowd funding: in the number of people invest, lend and contribute small amount of
money to the business idea (Adams, 2016). All the money nominally from capital of the
business and with its organizational goals are achieved.
CONCLUSION: in the above task it is found out that a business corporation has its own
legal identity separate from its founders and members. A business can be incorporated in
different forms and with registration of a company, business gets legal rights and obligation.
Alex and Jay are advised to incorporate a company for their bunnies as this will give business a
legal identity and right.
TASK 4
Alternative dispute resolution: ADR presents the methods of resolving the disputes
without litigation. This means to settle the dispute without going to court and also termed as out
of court settlements. These methods are relativity less expensive and time consuming as
compared to the court proceedings. In the present time with increasing cost of litigation
5

businesses are more inclined towards ADR. Most popular methods of ADR are Arbitration,
negotiation and mediation.
Arbitration: this is one of the best methods of ADR and this is because the decision
given under methods have a binding effect on parties to dispute. In this method a third party is
appointed as arbitration who is not biased to both parties and gives its decision after investigating
all the evidences and facts presented by disputed parties. Once ruling is given parties lose their
rights to appeal in the court as it is binding on them.
Legal advise: Pegasus is advised to go for Arbitration method of ADR to resolve its
commercial dispute as the cost of litigation is very high that is 350 euros per hour for legal
advise and in totality this amount can shoot up high as business dispute are not resoled on few
hours.
Conclusion: this is concluded that ADR is an alternative method to solve the business
different without going to court in less time and cost. Arbitration is most used methods as this
give binding rulings which can not be denies parties afterwords. Pegasus is suggested to go fro
arbitration as consumes lesser time and money.
6

REFERENCES
Books and Journals
Adams, A., 2016. Law For Business Students: Pearson.
Online
How does a bill become a law?. 2018. [Online]. Available through
:<https://www.parliament.uk/about/how/laws/passage-bill/>.
What is an Act of Parliament?. 2018. [Online]. Available through
:<https://www.parliament.uk/about/how/laws/acts/>.
Pimlico Plumbers Ltd and another (Appellants) v Smith (Respondent). 2018. [Online]. Available
through :<https://www.supremecourt.uk/cases/uksc-2017-0053.html>.
7