Comprehensive Business Law Report: UK Legal Framework and Structures

This report delves into the realm of business law, examining the fundamental sources of law within the UK legal system, including European Law, Parliament, Delegated Legislation, and Case Laws. It explores the role of the government in law-making, detailing the process from draft legislation to Royal Assent, and illustrates the application of common and statute law in courts. The report further analyzes the effectiveness of reforms and developments in the UK legal system, highlighting key changes in the past five years, such as the establishment of the Family Court and the use of alternative dispute resolution. It then presents the effects of employment, contract, and company law on businesses, providing examples of how these laws regulate employer-employee relations, contractual agreements, and company operations. Additionally, the report identifies and assesses various forms of business organization, including their management and funding, and suggests legal remedies for resolving commercial disputes. The report concludes with an evaluation of the legal structures and legislation discussed, offering a comprehensive overview of business law principles and their practical implications.

LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1 ...................................................................................................................................3
P1 Different sources of law.........................................................................................................3
P2 Presenting the role government play in making of law and how common and statute law
are use in courts ..........................................................................................................................5
M1 Analysing the effectiveness in context of reforms and development of the UK legal
system .........................................................................................................................................6
P3 Presenting the effect of employment , contract and company law on company...................6
M2 Difference between laws, regulations and standard and there impact on company...........8
D1 Coherent and evaluation d the legal structure and legislation with presenting examples ....8
P4 Presenting various forms of organisation formation.............................................................8
P5 Presenting how different types of business formation are managed and funded ..................9
M3 Assessing the various forms of business organisation of the basis of their advantages and
disadvantages..............................................................................................................................9
D2 Analysing the various from of business formation............................................................10
P6 Presenting and suggesting legal remedies to resolve different disputes with examples..10
M4 and D3 Comparing,contrasting and evaluating the range of legal solutions provided
above.........................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law is that branch of legal framework of a nation which regulates the direction
of a business and organisation in lawful direction. Under the ambit of business law comes
various law including employment rights act 1986, employment protection act 1996, health and
safety act 1974, Equality act 2010 and others. All these laws acts together provides the
provisions and rules to make the actions and operations of the business legitimate. The business
law is one sections of the whole legal framework of English legal system which have a vast
scope which have different types of laws ad its scope range from various aspects. For the below
report a discussion related with sources of laws and the hows laws and act are made under the
legal system is done. The potential impact that employment, company and contract law can have
on business is explained and identification of with different types of business organisation is
carried out along with provisions related with their management and funding. For different types
of commercial issues legal remedies are given.
ACTIVITY 1
P1 Different sources of law
Sources of Law are known as the basic of laws which basically contain all the binding
rules and regulations thereby enabling all the state a power to govern own territory. Different
types sources of law are as follows:
1. European Law – Is part of Sources of Law from 1973, the time when UK had become
member of the European Economic Community. It is having different parts as well: The treaties – It forces obligations of legal nature which is directly enforceable on the
member states and includes different treaties (ADAMS, 2016). The main aim of this
treaty is to provide equal treatment in case of employment to all men and women. Regulations – Objective is to bring uniformity and stability of laws throughout the
European community by considering all member states after it is being issued. Directives – Are intended for bringing law related harmony between each member states
by making it not identical but similar.
 Decisions – Provide power to party to do something whom it has been issued and also
preventing one from performing something. Has created impact on the particular member
states, companies or individuals.

The European Convention on Human Rights (ECHR) formerly known as the Convention for the
Protection of Human Rights and Fundamental Freedoms. It is an international convention so as
to protect the human rights and provides political freedoms in Europe. It is then newly formed
and known as Council of Europe.
For example Test-Achats ASBL v Conseil des ministres, the Court of Justice provides that Equal
Treatment in Goods and Services Directive 2004 article 5(2), purported for derogation from
equal treatment to men and women for charging different car insurance rates, was unlawful.
2. Parliament – Has the authority of creating a new law by passing of a bill which contains
all the necessary changes with the aim of getting approved (ADAMS, 2016). Bill is
present in the House of Commons for first reading. After which, it is forwarded to the
House of Lords for further discussion. On getting approval from both the house of
Parliament, Royal assent is to be taken for making of Bill as an Act of Parliament. For
example: the Treason Act 1945.
3. Delegated legislation – Are known as legislation of indirect or secondary nature as made
by bodies outside the parliament by making use of available legislative power as it has
been delegated by the act of parliament. Basically of four types: Orders in Council – Law making powers are given by the Emergency Powers Act 1939
& 1984 to all the Privy Council as the national emergency situation. Statutory Instruments – Formed by the statutory and Government departments for
executing general principles of policy defined in the Act of Parliament. Aimed at
designing of rules for safeguarding the interest of users related to credit facilitates. Regulations to implement law from European Union – It empowers the governmental
departments and ministers power to implement different provisions of treaties and
directives (ADAMS, 2016).
 Bye laws – Designed by local authorities and other bodies which are having statutory
powers of regulating all facilitates and services which they are providing and dealing in.
4. Case Laws - Is based on the principle of doctrine of Stare decisis, related to jurisdictions
having a base on the English common Law. In case situation of all the important cases,

important and crucial judgements made by Judges are recorded and thus becomes significant
part of sources of law (ADAMS, 2016). Also, known by term Judicial Precedent which is
defined as the decision made by court of law as given by the authority for deciding the
common state of facts in manner it was made earlier or by considering the same principle. For
example: Case related to Telereal Trillium (Respondent) v Hewitt (Valuation Officer)
(Appellant)
P2 Presenting the role government play in making of law and how common and statute law are
use in courts
The laws are made through the act of parliament but before presenting it Ito the
parliament is presented to the cabinet ministers as draft legislation. The draft proposal is
approved by the cabinet minister and the it is sent to the parliament foe getting assent from both
the houses.
The bill introduction is done to either one of houses of parliament which are house of
lords or house of commons. The first step is the first reading where title of the bill is read out
and it is sated that what the bill is about and outline of bill is explained. From here bill goes to
the second reading where a debate on the principles of the business is done and it is froward to
the committee stage where a detailed discussion is carries on the house committee make
amendment in the bill. The bill goes to the report stage where the alteration done are
acknowledged and than debate so done over the bill. With this comes the third reading where a
small debate is undertaken and votes are casted over continuation of the bill. From the bill is sent
to the other house of parliament where it goes through same stages and if any amendments are
done it is referred back to the first house for consideration. With getting an assent from both two
houses the bill is sent to her Highness fro a formal last consent. With getting a final approval
from the Queen the bill converts into law. An example of statutory law is Equality act , 2010.
Use of Common law in justice court
Under the common laws ruling of the previous case are applied in the giving the
decision of present case. In this a case with similar subject matter over which ruling have passes
in the past, is required to refer and acknowledge the same. The judges have a right to use their
discretion on use of the earlier ruling. If judge is of the view that there is omission of the
fact/evidence of the or there is misinterpretation of the statue law in the earlier case decision then

ha/she can deny referring the same with providing significant evidence for the same. This means
to consider the ruling is must, to refer and use the same while giving a decision dependent on the
discretion of the judge. So the rule over same case may change overtime with decisions given by
different judges over many cases with similar subject matter. The use of common law was done
of Fisher v Bell case the general principle of the contract law applied tot decide the offer to be
invitation it treat or offer to sale.
Use of statues law in justice court:
The laws which are made under the act of parliament are written down as an act and
provide assistance to the courts and judges in solving the cases of criminal and civil nature. The
judges identify relevant acts and sections from the act which can be applied to the given facts of
a case. With its application legal remedies are sought to give a ruling over the case and finalise
the law suit with giving the plaintiff a remedy under the legal system by use of and applications
of the significance legislations and acts (Gelter, 2016). The application of the statue law is
mandatory and no court have a right to question any provision of the law. It can be amended
through the act of parliament only and be understood through held on internal and external aids.
M1 Analysing the effectiveness in context of reforms and development of the UK legal system
In past 5 year the legal system have undergone under certain changes with making of
certain laws and amending them due to presumed confusion over establishment and applications.
In 2013 the Legal Aid, sentencing and Punishment of offenders Act, 2012 (LASPO), came into
force. The family court was established in 2014 where the national jurisdictions was set and it
was stated that all levels of family jurisdiction to brought under same roof to sit together in the
same court. A change in 2016 was made regarding the skeleton arguments in the family
proceedings where it was provided that to accredit reported from the cases being heard in the
court of appeal. With this for solving the legal issues the alternative dispute resolution methods
are used highly to avoid the litigation process (Olsen, 2015). With this is can be started that the
recent changes in the court structure and legal process the legal framework of UK have become
more effective and efficient in application of the justice law. The reforms means to examine the
exiting laws and advocating and implement changes in the English legal system. The change in
the legal system is done by a independent body that is law commission. The reform is regarding
the establishment of Family court in 2014 under the constitution of UK. The requirement was
seen after seeing the essence of bring both the parties to family dispute under one of of justice

court. With this litigation of family disputes have changed as all cases are now heard under
family court and this have helped the legal system in effective resolution the family disputes.
P3 Presenting the effect of employment , contract and company law on company
Employment law:
The employment law defines the various laws and legislation that regulates the relation
of the employer and employee. This includes the employment rights act, 1996, employee
protection act 1996. Equality act 2010 and others. The rules outlines the bas rights employer to
the employees such a national minimum wages, pension, workmen compensation and pay,
employment status, salary, holiday and leave pay, redundancy, discrimination, maternity,
paternity leave and pregnancy and others rights under the employment. For instances where these
so given rights are infringed by employer or co workers, the organisation or the individual of that
business indulges in such act can face serious legal consequences and a failure to these can lead
the company to face legal prosecutions, fines, penalties or even the winding up order by court.
This can be explained with the case of Pimlico lumbers where the employment status was given
to Smith with the checklist given under the Employment protection act 1996. As in the case of
Webb v Emo Air cargo UK, it was held that a pregnant employee can not be treated in way on
the basis that a sick man would have been treated. This case stated that a employer can not
defend pregnancy discrimination claim on the basis of absence of a sick man.
Company law:
This law defines the procedure to from a company and provision to conducts the business
operations and the manner in which is can be liquidate or wind up, along with outlining the
fiduciary duties, roles and responsibilities of the directors. The companies are required to follow
all the provision of this act otherwise they can face legal consequences in from of registration of
their name from companies house, legal proceedings, imposition of fine and penalties. Under the
laws and act legal position, rights and ability of the company are also characterized (Do,
Cowling, and Blackburn, 2015). For instances the condition of this enactment is not adhered the
company and as its directors might be held responsible for such lag. This can be explained with
example of case Solomon v Solomon where it was was decided that the company was a septate
legal entity distinct from its directors with application of the rules of companies act 1982. The
directors can not be held liable to pay the financial due of the company out of his personal asset
and property. For the business it means that a company is a separate legal entity and directors can

not take any personal benefits form it as well as the liabilities of business can not be imposed on
directors and members.
Contract law:
This contract (Applicable law) Act, 1999 lays down the guidelines for directing the
business relations under the commercial transaction where the responsibilities and duties
adhered to contracting parties who have entered in to a contract with another party in trade and
commerce are defined . The rights and duties so identified in the act also provide remedies for
for a breach made under the contract. The business can make a legal contract with binding effect
no both parties with providing them legal solution over any issues raised under contract. The
remedies are available in forms of imposition of fine or specific performance and sometimes
imprisonment. (Countouris, 2016). This can be explained with the case Carlill V carbolic Smoke
balls where the company held was liable to pay damages to the consumer who suffered health
damages due to the use of its smoke balls in accordance with the condition defined in the
advertisement. In this is case it was stated that the company have entered into a unilateral
contract through a advertise which was invitation to treat and it contract was binding on both the
company as well as consumer. For the business it means that it can not reveal itself fro
contractual obligation by offering a deal to its consumers and it needs to abide with all legal
requirement once a contract is made.
M2 Difference between laws, regulations and standard and there impact on company
The analysis can be done as the laws which are made through the act of parliament such
as the Health and safety act 1974 are referred as legislation. The statues laws provides the
provision to be applied within an organisation compulsorily. The analysis of regulations can
be done as its formulation is through government authorities to apply the law in general practice.
Regulation gives guideline on the laws and how the acts must be implemented. Its application is
also mandatory. The standard are the specifications and requirements for over certain laws. Its
use on regular basis ensure the effective application of law within organisation. Its application is
voluntary such a health and safety standard 2010.
D1 Coherent and evaluation d the legal structure and legislation with presenting examples
The effectiveness of the legal system can be stated as that with recent reforms and
development the court justice structure have been made more definite with ruling out any outside
involvement in the legal structure. However, all the laws are presented in written forms and its

strict applicability makes the legal system coherent and cohesive. On the other hand UK do not
have a single codified constitution where all the acts and laws are written under a single
document. But this done reduce the effectiveness of the UK legal structure. Conversely, all the
laws are presented in written forms and its strict applicability makes the legal system coherent
and cohesive. The UK do not have a single codified constitution where all the acts and laws are
written under a single document. But this done reduce the effectiveness of the UK legal
structure.
P4 Presenting various forms of organisation formation
Sole trader: is that type of business where only one person owns and run the firm with
having full control over business. The liability of the owner is not restricted and have right over
whole profits from business. A sole proprietary firms is not necessary to be registered and there
is no necessary legal requirement to get it registered.
Limited liability partnership: is that business which is started and run by two or more person
who are termed as partners. The partners are accountable for the shares of the frim but also are
liable for an equal part of the partnership business (Buhl, Blazejewski and Dittmer, 2016). The
ownership is limited to the partners only and their liability is also restricted to their proportionate
holding in the business. Legal provision for registration LLP is get registered with Companies
house as per the provision of Companies act 2006 with minimum 2 members and a registered
office address.
Limited company: is the registered business as per the provision of companies act 2006.
in this funds are raised form equity and debt finance and is managed by directors and managers.
The business on its incorporation becomes a legal person having its own identity separate from
its owners. The shareholders are given ownership in return of their investment in the company.
Legal provision for registration company is to get registered with Companies house as per the
provision of Companies act 2006 with minimum 1 director who subscribe the share of business.
and a registered office address. There is requirement of memorandum and article of association
along wit statement of shareholders equity and legal compliance.
P5 Presenting how different types of business formation are managed and funded
Management:
Management of Sole trader business is by the owner only. This business is operated by
a one person and often stated as one man army business.

Limited liability partnership is managed by all the partners which there distinct skills,
ability and professional knowledge. Each partners is given separate duty and responsibility to
conduct smooth operations of business
Limited company are managed by the creditors and mangers who are appointed in the
annual general meeting of the shareholders. Under a company a company secretory is also
appointed to look into the matter of legal compliance and also a auditors is appointed to
abidance with financial policies and standards.
Funding:
Sole trader business are funded by the owners by bring in money from personal saving
and borrowing funds from friends and family
Limited liability partnership are funded through capital which is brought in by partners,
browning form friends and family and loans from banking institutions.
Limited company have two sources of funding equity and debt (Lain, 2016). The sources
of equity funding are venture capital, crowd funding, angle investors and ESI. The debt funding
is through loans and borrowings from financial institutions and banks.
There is no law to govern the sole trader business rather limited company and LLP are
governed by the provision of companies act 2006.
M3 Assessing the various forms of business organisation of the basis of their advantages and
disadvantages
Sole trader:
The advantages of this type of business is that al profits belongs to wonders only and
there is no requirement of legal abidance. This is the easiest from of starting a business.
Disadvantage of forming this business is that funding is very tough a owners sometime
do not have sufficient funds to start the business. All the profits of the business are taxed as
personal income of owner and the liability of the owner is also unlimited.
Limited liability partnership:
The benefits of this business is that all partners bring in the capital to start and run the
business. The LLP are taxed at lower rate and only one partners have unlimited liability. Its
formation is easy and lesser legal requirements are needed.
The drawbacks of this business is that a disagreement between partners over business
decision can lead to conflict. And delay in decision making process. Limited partner have limited

liability to the business debt. The profits of the each partners is taxed under personal income of
partners.
Limited company:
The pros of forming this company is that it is a registered business where a legal remedy
can be sought under justice court. The shareholders gain a ownership in the company by
investing in business (Bevan and Greene, 2016). No person tax is required to be paid as business
profits is liable for corporation tax. Also the liability of investors is also limited.
The cons of this business that its formation required too may legal procedure which is
time consuming and expensive. To raise funds is also difficult and funds are required n huge
amount.
D2 Analysing the various from of business formation
The critical evaluation of different type of business organisation can be done as under
sole trader only one person is labile to run the business with all rights on profits, rather under
LLP, two or more person operates the business and profits are shared among partners.
Conversely under company management is done through managers and directors and profit
belongs to shareholders. The liability of sole trade and partners is unlimited while that of
shareholders is limited. This can be stated that all three of business types are different from each
other.
P6 Presenting and suggesting legal remedies to resolve different disputes with examples
Case example 1: For the issue between the organisation (XYZ ltd) and one of its self
employed drivers (P) have aroused regarding employment status of driver . The company gives
them car to drive with a installed GPS by wearing the uniform of the company with having a
employment contract. Moreover the driver can take a leave without prior approval form
management and can not hire some other direr to carry out work for company. Determine the
employment status of P.
Legal solution: The employment protection act 1996 proved checklist for determining
the employment status of a worker. This provide that an employee work as per terms and
condition of employer and have a employment contract. Along with these rules and applying
ruling of the case Pimlico plumber it can be stated that P is an employee of XYZ Ltd (Pimlico
Plumbers Ltd v Smith, 2019). The employee status is given through the employment checklist
where the employee provides his personal services, and is obliged to do work as per the

request of employer, the employer control what, how, when and where the work is to be done.
The employee have no right to appoint substitute for his work. All this element were present for
P so he is an employee.
Case example 2: Y is director of PQR lts and have a condition in the employment
contract that he can leave the employment without serving a notice period of 6 months. Y got a
better job offer from the rival firm STQ Ltd. Y took offer and joined STQ by serving only one
month of notice period in PQR. Advise POR.
Legal Advise:
As per he rules of injunctions a person can get a injunction order against another from
the courts if there are changes that basic fundamental rights is likely to get infringed and
monetary compensation is will not be sufficient. In the present case PQR can get an injunction
order against Y to stop him for taking employment in rival firm to mitigate the changes of
sharing confidential information of PRQ to STQ as Y was in position where he have access to
all that information. So here PQR can get a injunction order. The provision of injunction stated
that a person is likely to get injunction order against another to refrain another from doing an act
the court considered two elements before granting injunction order. One is that a fundamental
right is going to be infringed and other Monetary compensation can suffice the damage. In this
case the fundamental right if PRQ will be infringed if Y takes employment with rival firm. Also
there is no certainty as to how much loss or damage will be suffered if information is shared by
Y. So injunction can be taken.
M4 and D3 Comparing,contrasting and evaluating the range of legal solutions provided above
Both, above legal solution are furnished from the legal provision present under the legal
structure. For case one provisions of Employment act 1996 are applied while for case two rule
of injunction is used. For case one a legal remedy is presented involving litigation process where
as for case tow equitable remedy is presented to refrain a person from doing a particular act.
The effectiveness legitimate remedy can be established as for both case legal rules and provision
are used with presenting different solution for both legal issue.
CONCLUSION
To concluded it can be stated that sources of law for the English legal system have been
identifies as the EU laws, case laws, act of parliament and delegated legislation. The

legislations and acts are formulated through parliamentary process by getting approval form
house of lords and house of commons and Her Highness. The employment, contract and
company law defines the rules and provision which governs the direction of employee and
employee relation and business contracts. Any default in any law lead the organisation and
employer to face serious legal consequences in from of fins, penalties and prosecutions. The
various kind of business concern have been identified as limited liability, partnership, limited
company and sole proprietorship. All the three have different from of funding and distinct types
of management and control. For providing a range of legal solution two examples have been
given through tow different example having a issues on legal matters.

REFERENCES
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2014. 269 pp. ISBN: 978-1782546610. Business Ethics Quarterly. 25(4). pp.590-593.
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SMEs.
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Online
Pimlico Plumbers Ltd v Smith. 2019. [Online]. Available though
:<https://www.supremecourt.uk/cases/docs/uksc-2017-0053-press-summary.pdf>.