Business Law Report: UK Legal System, Company, Employment, Contract

This report provides a comprehensive overview of UK business law, examining the English legal system's sources, including legislation, EU directives, and case laws. It details the government's role in law-making and the application of statutory and common law in justice courts. The report evaluates the effectiveness of the legal system, referencing recent reforms. It further explores the impact of company, employment, and contract law on businesses, differentiating between legislation, regulations, and standards. The report analyzes various business organization types, their management, funding, and legal implications, along with their advantages and disadvantages. It concludes with recommendations for legal solutions to specific HR and business disputes, comparing and contrasting sources of legal advice and evaluating the effectiveness of these solutions. The report covers a range of topics relevant to understanding the legal framework for businesses operating in the UK.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Presenting the nature of English legal system....................................................................3
2. Role of government in making law and application of statutory and common law in justice
court........................................................................................................................................4
3. Evaluation of effectiveness of the legal system in terms of recent reforms and developments
in past 5 years.........................................................................................................................5
TASK 2............................................................................................................................................6
1. Explaining impact of company, employment and contract law on business......................6
2. Difference between legislation, regulations and standards and analysis of their potential
impact upon business..............................................................................................................7
3. Coherent and critical evaluation of the legal system and law ...........................................7
TASK 3............................................................................................................................................7
1. Different types of business organisations which can be formed legally............................7
2. Management and funding of these type of organisations..................................................8
3. Advantages and disadvantages of formation on different types of business organisations9
4. Critical review and evaluations of types of business organisation...................................10
TASK 4..........................................................................................................................................11
1. Recommendation of legal solutions to HR of the business regarding problem related with
Sarah.....................................................................................................................................11
2. Recommendation of legal solutions to Peter Romanov...................................................12
3. Comparison and contrasting of the different sources of legal advice and support from
dispute resolution for case 1.................................................................................................13
4. Evaluation of the effectiveness of legal solutions, legal advice and support for dispute
resolution..............................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................15

INTRODUCTION
Business law comprise that set of legislations and regulations which gives directions to
the business organisation in governing there transaction and activities under various structure of
businesses. In the present report several aspects related to business law applicable to the entities
and organisation operating in UK explained. The role of government in formulation of law is
presented. Also, application of common and status law will be explain. Impact of employment,
contract and company law is defined over the business. The difference between legislation,
regulation and standards is presented and their impact on business is analysed. Different types of
legal business organisation their management and funding. With this all types are evaluated with
outlining their advantages and disadvantages and critically reviewed. Furthermore, the
application of various law falling in the parameters of business law is shown by giving effective
solutions to the two problems given in the brief. Both the issues are business disputes and from
the appropriate legal solution is presented by identification and use of the relevant legislation and
common law.
TASK 1
1. Presenting the nature of English legal system
Sources of law for English legal system:
Legislations:
The legislation of UK comprise two different legislations the first one is the primary
legislation which is also referred as the act of parliament in which the laws are made through the
process of parliament such as the Equity act, 2010, the Criminal act, 1967 (Cotterrell, 2017). The
seconds one is the delegated legislation where the powers is vested to the local authorities and
public bodies to make laws and legislation over specific subject matters.
European Union Directives:
The directive is a legal act of the European Union which places a requisition on the all
the member states to attain a specific result or outcome without dictating the means of achieving
that result. The directives are required to be adopted by each member state by means of various
legislative procedure depending on the subject matter related (Edge and Harvey, 2017).
Case laws:

The case laws are the oldest source of law for the English legal system. In this the
decision of a law suit passed in various courts become laws with getting an authenticity and
binding effect through the doctrine of judicial precedent (Pound and DeRosa, 2017). Its
application is mandatory but with discretionary power of the judge. A judge can deny referring a
previous decision with evidence of non adherence.
2. Role of government in making law and application of statutory and common law in justice
court
The laws in the UK are made through the act of parliament. The draft proposal of the
legislation is introduces as a bill in the parliament. It is presented before any one of the houses
that is either to Lords of House of Lords or peers of House of Commons (Worthy, 2018). The
title of the bill is read out in the first reading where bill is introduced to the house of parliament.
Here, a brief outline is given as to what is going to be discussed in the future and what is the
subject matter. After this bill is sent to the second reading where the principles of the bill are
discussed and debated upon and amendments are made at this stage. Voting is also done on
whether bill shall proceed or not. With this bill is sent to the committee stage where the bill is
referred to the house committee for detailed examination. Here, further amendments are made to
the bill, if required. The bill is sent back to the house members in the report stage, where the
committee reports, amendments if any on it are taken into consideration. It is presented for
further discussion and then voted by the house. After such process the bill is presented for third
reading where short debate and voting is done for further proceeding of the bill to the other
house.
With this the bill is sent back to the other house of parliament, it passes through all
approval stage. Amendments are implemented and sent back to previous house for further
approval (Wilford, 2018). At this stage, Queen give consent over bill to form a legislation and
with this the bill convert into a legislation.
Application of statutory and common law in the Justice court:
Statutory law:
The statutory laws are made through the act of parliament which have a mandatory
applicability to the whole of the nation. The example of status laws are the Equality act, 2010,
Employment Rights act, 1986, Health and safety act, 1974, Criminal Act, 1967. The judges are
required to interpret the status laws so made with the held on internal ad external aids present in

this regard. This includes long and short title, explanations, dictionary, Hansards and others
(Judge and Leston-Bandeira, 2018).
This can be better explained with an example of the Lee v Lee air farming. As in this case
to determine the liability of a director of the company for the actions of business, the courts
applied the relevant sections of the companies act, 1867 which was applicable at that time. The
company and its directors are treated as two different legal persons and the acts can not be
mingled to impose liability of one on anther.
Common law:
The common laws are made by giving the ruling of the case law a binding effect
through the doctrine of Judicial precedent. The decision given under a case becomes a law and
all the lower courts are required to refer the ruling and factual application in the future cases to
pass a decision. The application is compulsory as not court can pronounce a decision over a case
without considering the previous decision (Iyer, 2018).
This can be explained with the case of Solomon v Solomon and Lee v Lee air farming.
As for the case of Lee v Lee for deciding the legal status of company and that off its direct the
case under the common law Solomon v Solomon was referred and it (Lee v Lee) was concluded
with reference to this case (Solomon v Solomon) only. The director and company are treated as
separate legal person where a director can be held liable to pay off the due of the company from
his personal property.
3. Evaluation of effectiveness of the legal system in terms of recent reforms and developments in
past 5 years
There are three separate legal system one each for England and Wales, Scotland and
Northern Ireland. The legal structure is of historic origin and there is change in court structure
and set changes in hierarchy of the courts. In 2016, there as an extensive review over the civil
court system in England and wales. There were recommendations made over the wider court
modernisation which is undertaken by the HM court and Tribunal services. In October 2015 a
specialist financial list was from which handles the claims related specifically to the financial
market. Claims are made on basis of raising issues related to importance to the financial market.
In the year 2014 the government planned go cut down the criminal legal aid by £220 million this
was due to the confusion which raised after the ruling of high court that Ministry of Justice
consolation process was so unfair that it was illegal.

TASK 2
1. Explaining impact of company, employment and contract law on business.
Employment Law:
It is design with the objective of protecting right of employees and covers norms of
employment relation (Zander, 2015). The employers are required to comply with the various
rules and regulations essentially. In this various laws are included which are rights act, 1986,
Health and safety act, 1974, Equality act, 2010, employment act, 2015. All these guides and
directs the actions and relationship between employee and employer.
It can be explained with the recent case of Uber v Aslam where there was application of
Employment Rights Act, 1986, to identify status of employment of drivers working of the
company Uber. In this case the drivers were given a status of the employee of the Uber and not
working as independent contractors.
Contract law:
The contract law defines the relation of parties under business transactions as per the
contract (applicable law)Act 1999 of the UK. This act outlines the way in which contracts are
formed, the performance and discharged. The business parties under the contract if fail to
perform the contractual promise and obligations under the contract is liable to be legally charge
for such breach.
This can be explained with the real example of the case in 1932, in this case it was held
that company entered in to a contract with its consumers by giving advertisement in the
newspapers (Koh, LEE and Tjio, 2017). The company formed a unilateral contract and the
advertisement was not mere an invitation to treat rather an offer for unilateral contract. The
company was held to complete the promise made under the contract.
Company law:
It assists the company by directing the norms, rules and standards which it has to comply
with for undertaking of business operation as per legal framework. The act states about duties
and responsibilities of the directors as well. Under the English legal system, act governing the
role and responsibilities of company is the Companies Act, 2006 (Hersch and Shinall, 2016).
This can be explained with the example of the case of Lee v Lee air farming, 1960, in this
case it was as per the provisions of the then companies act, stating that company and directors

are two separate legal persons. Also, because of separate legal entity directors of the company
are not held liable for any actions of company.
2. Difference between legislation, regulations and standards along with impact upon business
The legislation in the UK are defined the laws and acts which are made through the act
of parliament and have a compulsory requirement to follow. The regulation are the one which are
published by the government and its authorises which explains the applications of the provision
of the acts in legal matters to reach effective solution for the civil as well as criminal matters.
While the standards are the general specification which are given to meet a particular
requirement to a act beyond the statutory one. Its compliance is not compulsory. Its abidance is
voluntary on the part of businesses. It impacts on the business organisation can be explained as
the legislation and regulation are required to be followed essentially and a lag in this case lead he
organisation to face serious litigation and legal consequences in from of lawsuit, fines and
compensation for damages. Rather, with a standard not considered by the business do not attract
any legal proceeding towards the business.
3. Coherent and critical evaluation of the legal system and law
The evaluation of the legal system can be done as per the legislation such as Employment
Act 2015 which are implemented and applied through regulations such as the Employment
regulation 1999. These are statements to the act which are required to be attained by the
organisation compulsorily without a lag and default (Sappideen, O'Grady and Riley, 2016). On
the other hand, norms and standards are voluntary for company to adhere with or not. Such as
the health and safety standards 2010 definite the technical specification in the regards to legal
abidance.
TASK 3
1. Different types of business organisations on basis of legal formation.
Report
To, Mr Mc Jones,
Date:
Subject: Presenting different types of business organisation to established business in UK.
From:
Sir,

This report presents you different types of business organisation suitable for you to stat
up your business in UK. All these types of business formation fulfil your requirement of
employing numerous employees, rising capital and opening branches in different parts of UK.
Limited liability partnership:
Is business similar to limited liability company which is limited by the partners. This
business type is formed by two or more person having same objectives under one name. There is
no shareholding in this type of business rather the partner holds the ownerships and debt liability
of the business in the proportion of investment in the company.
Private Limited company:
Is a company which is limited by shares and its shares can not be issues to public. The
liability of shareholders of this type of company is limited to the percentage of investment in the
company. (Glynn and et.al., 2015). The company is required to be registered in UK companies
house are per the provision of Companies act, 2006. The company is required to abide with all
legal and government regulations. At the time of incorporation at least must be issued.
Public limited company:
A public limited company is similar to private limited company which is limited by
shares. In this type of business the company can offer its share to the member of public. This
means that the member of the public can become their shareholder of the company and can share
the ownership of the business (De Luca, 2017). The requirement includes having at least two
directors and towing shareholders at the time of its incorporation.
2. Management and funding of these type of organisations
Limited liability partnership:
In formation of LLP, the funds are brought in the partners from their personal saving
(Knapp, Crystal and Prince, 2019). These partners are only interested in the share of their profits
which is agreed among all the partners. So the management falls on the shoulders of active
partners and they manages the business altogether with all active partners.
Private Limited company:
Funds are brought by owners of the business who are initial investors of the company. All
those who have invested in the company are shareholders of the business and have a holding in
the ownership of the company. (Cartwright, 2016). The management is done through directors
and mangers. The directors appointed in the shareholders meeting where all shareholders vote

upon one shareholder as the directors and other as well. A company secretory is also appointed
who is not shareholder of the company.
Public limited company:
For a public limited company the funds are raised though equity, debt finance and lease.
The equity financing is done through angle investors, crown funding, venture capital and other
forms where the other interested businesses, individuals and institution invest there funds in the
company to run and operate it. The debt funding is done through taking loans and borrowing
form recognised banks and financial institutions. The management of this type of business is
done through the directors, managers and other official of the company (Tushnet, 2017).
Company secretary and auditors are also appointed in these meeting who are responsible to see
through the management in financial and legal transactions of the company.
3. Advantages and disadvantages of formation on different types of business organisations
Limited liability partnership:
Advantages:
Is very easy to form and operate. The funding and management is also easy as all the
partners bring in the capital. In case of any shortage friend and family is also involved and given
a partnership in the business to raise the funds.
Disadvantages:
The profits for this types of business gets distributed among the partners,, so more the
number of partners lesser the share in profits. The liability of one of the partners is unlimited.
The business can not raise from the member of public. The partners are required to pay incomes
tax n share of their respective profits.
Private limited company:
Advantages:
Is a legal entity having its own right and holds an identity separate from those who owns
and runs it, in the eyes of law. One on the major benefit of this type of business organisation is
that liability of the shareholders is limited to their investment and any unpaid shares owned by
them (Savelyev, 2017).
Disadvantages

This type of business can not issue is share to the member of public. The number of
members is limited is private limited company. The company is required to the corporation tax
on the dividend distributed to this shareholders.
Public limited company
Advantages:
The major benefit of this business is that the share can be issued to the member of general public
to raise the funds for business. There are lot of options available to raise the funds from outside
inventors.
Disadvantages :
For this type of to raise funds is difficult the set up cost is also very high. Management
of this business is complicated as lengthy legal requirements are needed to be met in order to run
and operate the business (Morrison, 2019). Moreover the dividends are required to be distributed
when the business earns profits and on the same corroboration tax is also required to be paid.
4. Evaluations of business organisation types
The limited liability partnership business is a easy open to from and operate as there is
less legal requirement needed. On the other hand the private limited company requires little
more legal abidance to form and operated the business rather in the public limited companies a
lot of laws and regulate are required t be adhered as t the shares are issues to public. But it can
be stated that with more legal compliance a public ,limited company can raise funds from
members of public which is not a option available to other two business types. Moreover, in all
there businesses the liability of partners or members are limited to the extent of their investment.
TASK 4
1. Recommending legal solution to HR of the business regarding problem related with Sarah
Issue: is the conduct and actions of Sarah are liable to gets her dismissed on the fair
grounds for the organisation.
Rules:
As per the rules of the companies act, there are different grounds of fair dismissal of the
employee from an organisation which included capability, misconduct, redundancy, illegality
and other reasonable reason.
Gross Misconduct:

An act of gross of misconduct is considered illegal behaviour which is performed by
employees. Such an acts are enough to attract the warrants of immediate firing. In the legal terms
it is referred as summarily dismissal. For the gross misconduct by an employee he/she can be
fired with or prior notice or pay in lieu of the notice and with immediate effect. For such an
dismissal the employee can not bring legal action against the company. Fro the company it is
necessary to follow the protocol, document all the steps and state the standard of the company
policy for the gross misconduct. The Gross misconduct includes the actions of theft and fraud,
damage to property, breach of safety protocol, offensive behaviour and drug and alcohol use.
Offensive behaviour:
This includes the behaviours in which an employee indulges including threats to self and
other employees and co workers, physical fights, bullying and harassing actions such as staking.
Offensive behaviours under the employment can be explained as feeling through aroused anger,
disgust or outrage in the mind of a reasonable person.
Alternative legal remedy (Alternative dispute resolution- ADR):
There are different methods of alternative dispute resolution which provides solutions
to the business problems without going to court. There are various methods of ADR available
such as arbitration, mediation and negotiations. Under the arbitration methods the parties to
dispute can go to the arbitrators appointed by the mutual consent to give an award over the
dispute. In this methods the parties present facts and evidences over the matters of issue and
arbitrators after considering these from both the parties pass an awards which is binding on both
the parties. Also parties do not have right to to file an appeal against the decision given by the
arbitrator.
Legal solution 1:
From the rules presented over the actions that can be taken for a employee indulged in
gross misconduct, it can be stated that action of Sarah was offensive as she have becomes
vulnerable after her divorce (Wilson, and Wortley, 2018). This action of Sarah as shouting and
insulting her juniors can be seen out of anger and outrage of what has happened inn her personal
life. This directly make her an employee under the gross misconduct. Over her action the
management of the company take a strict action of dismissing her from the job. But for this the
organisation is required to followed the protocol and the disciplinary policy of the company.
Sarah must be given the details and fair ground of her dismissal.

Legal solution 2 :
Another solution can be presented to the organisation to go for the arbitration. As most of
the employment contract have this clause to refer a dispute to the arbitration. Under this the
organisation can set the grounds of dismissing Sarah. Here Sarah can present her side for such
actions. Moreover this can avoid the ligation process when Sarah want to file a case against the
company over her dismissal.
2. Recommendation of legal solutions to Peter Romanov
Issue:
Is the payment made by UK importer fells under the ambit a valid contract.
Rules:
Valid agreement:
To establish a valid agreement between he parties there must be a valid offer and
acceptance on the part of both the parties. This means the offer must be agreed on the final
negotiated terms and the acceptance of the same to be communicated and acknowledged by both
the parties under the contract. In case such a condition is missing which can lead the contract to
be voidable at the part of innocent party.
Legal solution 1
As per the above rules it can be stated the offer was made by the exporter in Russia
through email over this no acceptance was made by the imported in UK. Moreover the
communication of the acceptance and acknowledge was not given to exporters which do not
make a valid agreement between both the parties. Hence the contract can be set aside by the
exporter form Russia due to lack of valid contract between them.
Legal solution 2
As both are parties to a business transaction they can go for mediation to solve the
dispute over the payment terms. The mediators will try to bring out the negotiating terms
between imported ans exported and they can reach to a mutual decision over the exchange rat e
and current of payment.
3. Comparison and contrasting of various legal advice and mechanism for dispute resolution for
case 1
For case of Sarah it can be stated that doe the issues the company is provided with two
alternative solutions ned under legal framework through litigation and other one is presented