Business Law Report: UK Law, Business Structures, Cases

This business law report provides a comprehensive overview of key legal concepts relevant to business operations within the UK legal framework. It begins by defining business law and its significance, followed by an in-depth analysis of parliamentary sovereignty and the sources of UK law, including legislation, common law, European Union Law, and the European Convention on Human Rights. The report then explores the role of government in the law-making process, detailing the stages of creating legislation and the application of both common and statutory law in justice courts. Furthermore, it examines the impact of company, employment, and contract law on business organizations. The report proceeds to discuss the formation of different business structures, comparing the advantages and disadvantages of unincorporated and incorporated businesses. Finally, it concludes with case studies that illustrate legal principles and their practical application, offering insights into dispute resolution and legal solutions within a business context.

BUSINESS LAW

Table of Contents
INRODUCTION .............................................................................................................................4
SECTION 1......................................................................................................................................4
TASK 1............................................................................................................................................4
Discussion on the point ‘Parliament is sovereign’ with various sources of UK law..................4
Explain the major role of government in law making process and how statutory and common
law are applied in the justice courts............................................................................................6
Illustrate how company, employment and contract law has a potential impact upon business
organisation.................................................................................................................................8
TASK 2............................................................................................................................................8
Formation of different types of business organisation................................................................8
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process. .......................................................................................10
3. What are the advantages and disadvantages of company over partnership firm..................10
SECTION 2....................................................................................................................................11
Solve Disputes with Appropriate Case Laws & Legal Solution....................................................11
CASE 1......................................................................................................................................11
CASE 2......................................................................................................................................12
CONCLUSION..............................................................................................................................14
.......................................................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business law can be expressed as the law which manages all those activities which are
related with various organisation. The main motto of this law is to provide guidelines that how
company can work in a systematic manner (Bishara and Westermann‐Behaylo, 2012). It has
been playing very crucial role since this law was enforceable. There are number of branches
under its roof which is beneficial for taking business decision. The major branches of business
law are company, contract, employment, intellectual property law etc. These all branches have
its own roles and responsibilities on daily basis.
It is one of those file where there will be complete information regarding the major
sources of UK law and how it has been very crucial for maintaining rules and regulation within
its territory. This report will also tell why parliament is sovereign. Even, there will be detail
information regarding incorporation process of various organisation. Also, different types of case
studies are solved in this which will help to enhance the capacity to solving similar cases.
SECTION 1
TASK 1
Discus the meaning of the statement 'Parliament is sovereign' and discuss the various sources of
UK Laws.
'Parliament is Sovereign' can be defined as the body of government which have the
supreme authority to prepare any kind of law in UK. They have such level of power that now can
challenge them because this has been written in law since 13th century. Then have such kind of
authorities where supreme court can also cannot amend the laws which have been passed by
them. They make the laws by looking at the situation of four different nations and they are
England, Scotland, Wales and Northern Ireland. In UK, there is a two part of parliament such as
House of Lords and House of Commons. The final approval is need to be obtained by House of
Lords (Burley, 2017). The decision once declared by Parliament cannot be changed by anyone.
Only they themselves can do that.
The season of parliament starts when speech of Queen is delivered in the month of
October and November. The main role in preparing the speech of queen is done by Prime
Minister. The session of parliament always starts after the speech of Queen. The main aim of the

speech is related with the agenda which is prepared for calendar year. The speech is such
powerful that even single party doesn't to prepare their program before it.
At present, there are various source of UK law and among that four of them plays the
crucial role while making it. The main aim of making strict laws is that no one can break the
regulation which can be very important to maintain peace and silence within its territory. The
major sources of law in UK are legislation, common law, European Convention on Human
Rights and European Union Law (Grace and Cohen, 2013).
Legislation is one of the major source in UK for making law. The responsibilities of
making legislation is in the hands of Parliament which is situated in London. It has a lengthy
process which need to be followed by every members of parliament. Here, the approval of Queen
is mandatory to enforce any new law as per the law which has been be written under Royal
Ascent Act, 1961. Here, rights and duties are delegated to the member of House of Common
who are elected through the process of general election which is conducted in every five year.
Common Law is one of those body of government which makes enforce new laws with
in the boundary of UK. The main role is being played by the judges of different level of courts.
The condition to constitute any new law under common law arise which legislation is completely
silent and doesn't provide its opinion. The authorised panel have the opportunity to take help
from the cases of other countries as well where similarities are found. It is compulsory for every
people to follow the law which have been enforced by common law although it do have a nature
to sustain for longer period of time. It can be amended at any period of time as per the
requirement. As per the rules and regulation of legislation it is said that if anyone is not
following the rules of common law then harsh action can be taken by authorised authority
(Hanrahan, Ramsay and Stapledon, 2013).
European Union Law (EU) is the major law which is prepare most of the laws for UK.
Its main aim is to provide extra security to the people of UK and all those nation who are its
member. It is said that the laws which have been proposed by EU cannot be amended by even
Parliament. It is compulsory for everyone to the guidelines of EU law as it have its own way of
declaring punishment. It is one of those law in UK which have provided the rights to every
common people to vote in election which is held in the time gap of 5 years. The MPs are selected
in that election who represent the House of Parliament.

European Convention on Human Rights (ECHR) is the fourth main body of UK
which have the responsibility to enforce any law for the welfare of general public. The major
laws that are made under ECHR is related with the rights of people. It's main focus on
commencing law is according to the area of UK because it might be possible that law in Scotland
and Wales might be different. Even, acts and laws of ECHR cannot be overruled by parliament
(Hawkins, 2012).
Role of government in law making process and how statutory and common law are applied in the
justice courts
It is necessary for every country that how they form their law because it plays the
important role in daily life. The law making process of UK is also so vest where they need to
follow various steps and according to that it is being prepared. The role of preparing law is in the
hands of Parliament. There are two different sections which have been divided for making any
new law.
Firstly, bill is prepared according to the demands of general public. Bill is also known as
draft. There are seven different stages in it. The first is known as First Reading, where drafted
bill is read in front of members. The seconds stages is said as second reading where discussion
takes place in the house of parliament by the committee members of parliament. Then after bill is
send to committee stage.
In committee stage, the members do the major discussion where it is decided that what is
the need to passing this bill. It this process the detail examination is done by the members of
parliament as it is their primary duty. Then after bill is forwarded for the report stage. It is one of
those stage which is entertained only in that condition where amendments are required.
The fifth stage is called third reading where the process of voting is done. It is the
responsibility of every member of House of common that they must cast the vote according to
the importance of proposed bill (Hazard, Hodes and Jarvis, 2014). If bill is passed after passing
resolution through voting process, then it is send to the House of Lords. The main work of House
of Lords is to check proposed bill and suggest for the necessary amendment. The last stage of
making any law is known as Royal Ascent where signature of queen is taken as she is the
crowned person. The crowned person has only the rights to do signature in this case.
It is the main role and responsibility which is being conducted by the government of UK.
Common and Statutory law applied in Justice court

Application of Common law in court rooms: It can be considered as the law which has
continuous rearrangement structure and even it has the full effect under the judges of court. Here,
the judgement is done on the basis of legal cases which have been earlier declared by the court
rooms. The cases that are decided earlier have the common structure all over the authority. For
the cases of criminal activities which have unusual nature of crime then the use of common law
increases because it helps to enforce any new law within the short period of time gap. Justice
court take the help of common law in this case at the time of declaring any result (Kaplan,
Weisberg and Binder, 2014).
Case Law: Roomie v. Jason
Facts of the case: In this case it has been found that Roomie took the share of Jason with
unlawful activities which was against the law.
Judgement of the Justice court: In this case court decided that the given decision is based on
common law as decision which was given was similar which have been discussed before
Application of Statutory law in court room: It is the law which is used very much at
the time of declaring any result in the room of court. As, laws are already written here and there
is no requirement to declare it’s result by taking additional time. So, it can be said that it plays
necessary role at the time of declaring result in the premises of court.
any peoplevate acts that forms the part of legislation system of UKslative act in orde
Case Law: Jacky v. John
Facts of the case: In this case it was found that Jacky was the one who killed John's brother so
John decided to file a case against Jacky.
Judgement by the Justice Court: The decision of Justice court was decided on the basis of
statutory law as it mentioned that no one is allowed to kill anyone.
.
Illustrate the impact of company, employment and contract law upon business organisation.
Business law have always shown its impact on the activities of a business organisation on regular
basis. Here, the duty of organisation is to manage their task according to the law which is
enforceable by the law. Although, this laws have always supported the business that how it can
be managed. There are various kinds of act which have its own effect on the activities of
organisation (Mann and Roberts, 2012).

Contract law is one of the law which is very crucial for any business organisation as they
need to prepare contract on daily basis so that work cannot be left between processing period.
The biggest effect of contract law on business organisation is that it doesn’t allow organisation
breach any contract it is clearly mentioned that heavy penalty can be imposed any period of time.
Company law is the law which has its own role for the betterment of any organisation. It is very
important to follow the instruction of this Act. It has clearly mentioned that if instructions are not
followed that penalty can be in huge amount which can result into financial loss for the
organisation. The most important impact of company law for any business organisation is that it
need to fulfil various formalities which consumes extra cost of a company. Even its lengthy
process of incorporation is one of the major drawback for any organisation (McMillan, 2012).
Employment law is that type of law which deals for the benefit of organisation and
employee’s. It is important for every organisation that they follow its rules and regulation so not
fall under the category of defaulter. Its impact on any business organisation shows that
organisation need to maintain the decorum for the employee’s to work in factor else it is not
allowed to work in that particular area. Even for the safety of employee’s they need to keep first
aid box 24*7 any if not found then penalty will be imposed.
TASK 2
Formation of different types of business organisation
Company law is defined as the law which deals with the activities of business which are
conducted on regular basis by association. The main aim of this law is to provide the path on
which company can work to achieve its goal. It is one of the main branch of Business law. The
guidelines are being followed by the investor just to earn maximum amount of profit. As, there
are various types of organisation and among them some are discussed below with its method of
formation.
Sole Proprietorship: This is that type of business where investor can easily invest their
money because it does not require huge capital. The main reason for giving priority to Sole
Proprietorship because it its incorporation process. There is no requirement of any team work in
it because it mainly managed by the single person. The additional benefit that investor enjoys
that there is no legal process at the time of formation (Murray, 2014).

Partnership: This is the type of business where more than one investor come together for
the purpose of earning more among of money at a single time. It is one of the popular form of
business because it does not have much and more headache at the time of conducting activities.
The legal process to form any partnership firm is that, firstly it need to prepare a partnership deed
which is to be submitted in Companies House. Also, it requires to register under Partnership Act
which is one of the important part.
Joint Venture: It is the type of business which is incorporated just maximise the amount
of profit in shorter period of time. It is project oriented companies which is started for shorter
period of time. The process which is required to form Joint Venture is:
 Registration must be done under Companies House.
 The objective of company must be clear that for how long it will be run.
The authorised person should be assigned at the beginning. This are the documents that must be
submitted to Companies House (Nichols, 2012).
Limited Liability Company: It is that type of business where liability of investor is protected.
There are many formalities that need to be fulfilled at the time of incorporation. It has legal
existence in the eyes of law. The process that required at the time of formation of LLCs are:
 Memorandum of Association and Article of Association must be prepared.
 Registration must be done at Companies House.
 The name every member must be submitted at the time of registration.
Corporation: The most complex form of business is known as corporation but it gets various
types of benefits which other do not enjoys. The process of incorporation of corporation is
mentioned below:
 Memorandum of Association and Article of Association is mandatorily required.
 The name of first director and first shareholder should be given.
 Certificate of incorporation is also required at the beginning.
 Certificate of Standard Industrial Classification is compulsory.
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process.
Incorporated Business Organisation These organisation are those who are legally
registered under law and have a legal existence. It is easy to manage these kind of businesses

because they have to act according to the guidelines provided by law. In these kind of businesses
money can be raise money through several ways such as shares and dentures. In order to raise or
increase the capital of the company.
Advantages being an incorporated firm is that it will have a long term life. As it is
guided by law it is easy to make decision under this form of organisation (Norris, 2016).
Disadvantages it is expensive to register a firm as it requires certain formalities that needs to be
done and company needs to bear certain expenses such as registration form fees and other
expenses.
Unincorporated Organisation is the form of business which is not registered under the
law. Thus it requires less documentation in the incorporation process as compared to the
registered firm. They are not registered under law they do not have any legal existence because
of this they have to face certain difficulties that a registered firm do not have to face. This is one
of those from of business where there are individual investors investing money.
Advantages: of being an unregistered firm is they do not have to get themselves
registered in the registrar office which saves money. Even they do not have to prepare annual
accounts because there is no such requirement.
Whereas Disadvantage of being an unincorporated firm is that it cannot sue and cannot be sued
because they are not legally registered. Also the liability of the investor is not limited to his share
which serve as a major disadvantage of unincorporated firm (Raz, 2017).
3. What are the advantages and disadvantages of company over partnership firm
The business environment consists of different types of organisations with their own plus and
negative points depending on their formation and legal formalities. There are different
advantages of a sole proprietorship company over a partnership firm and one from them is
explained here. The company enjoys perpetual succession whereas, the partnership firm cannot
because the entrance and exit of even one partner will lead in creating the issue in the partnership
deed. The company also has the opportunity to raise the funds from any which they want to but

the partners are not able to use this feature as they are only liable to gather funds from their own
assets (Schmidt, 2018).
The disadvantage faced by the company over partnership firm is that a company is required to
construct an annual record whereas the partnership firms are not required to do so. The
companies have a lengthy process of decision making which also incurs a huge cost but in the
case of the partnership firms it is not required.
SECTION 2
Solve Disputes with Appropriate Case Laws & Legal Solution
CASE 1
In the given case the dispute is between the champion ltd. And the creditors. The reason of
not clearing the debts on the given duration was the shifting of the business. As, the
payment was not cleared the creditors are willing to sue the company to recover their
money with the help of the process 'winding up'.
Winding Up is the process in which the assets of the company is solved with the help of
the liquidator who is appointed by the court or by the company itself. This process take space
when the company is not able to pay their debts to the creditors on time. This process is applied
on the public as well as private companies. This process can be classified into two parts which
are voluntary winding up and compulsory wind-up.
Compulsory Winding up can be defined as the process where the company is winded up
immediately after the order of the court. For this, the creditor is required to file petition in the
court against the defaulter company and the total value of the debt should be around £750
(Winding up by the order of court, 2018). The debts below this amount does not fall into the
compulsory winding up process. The liquidator appointed by the court is liable to calculate the
value of the assets a company possess and the not sell them to recover the money of the
creditors.
Voluntary Winding Up can be defined as the process of selling assets of a company
itself the help of an liquidator appointed by the company itself. This decision is taken by the
board of directors after coming to the conclusion that the company is not able to pay their debts
and it will be beneficial to wind up the business. To execute this process a resolution is required
to be passed by them.

NOTE: the resolution should be posted to the website of the company and in the newspapers as
well.
In this particular case, the company should take their creditors into confidence to grant some
more time to repay their debts which will be beneficial for both the parties because winding up is
very time consuming and involves a hectic process.
CASE 2
The second case in concerned with the issue of breach of contract in which three parties are
involved and they are Mr. Anderson, Amber Ltd and Beta Ltd. The contract was between
the two parties Amber ltd. And Mr. Anderson which stated that it is required to give 12
months’ prior notice for leaving the company premises. Mr. Anderson failed to follow the
rule and breached the contract by joining the new company Beta ltd. The main fault was
conducted by Mr. Anderson and the reason he conveyed at the time of leaving Amber ltd
was justifiable. For this, the company will file a case against him with the objective of
recovering the legal damages.
Contract is a set of agreement between the two parties in concern of some conditions,
that the both parties are required to follow with proper concern. Contract is very general process
and it is said that every person involves themselves in contract on daily Basis that can be
voluntary or written (Sharfman, 2014). The terms and conditions in the contract should be
considered properly because once entered in the contract it cannot be breached and if found then
the required actions will be faced.
Breach of Contract is the condition where any one party fails to perform their assigned
role in an agreement. In this case the party who has breached the contract stands liable to face the
consequences with the law proceedings and penalties coming down their way. The point that is
required to be taken care in this is that the contract should not be void or voidable. In the present
case scenario, it is said that the Mr. Anderson has breached the contract with Amber ltd. The
company has the right to sue the person for the damages caused by him. The another way to
solve the difference between them is the process called Alternative Dispute Resolution(ADR).
Alternative Dispute Resolution (ADR) is the legal process which is required to solve
the disputes between the involved parties. In this process the three methods are involved which
can be applied to resolve the disputes between the parties. It is considered to be the most flexible

way to solve the issues. It also helps in reducing the time and burden caused by the court cases.
The three methods are explained below:
Mediation it is the first stage to solve the dispute between the parties with the help of a
mediator. The mediator goes through the problem and listens the point of both the parties and
then tries to give appropriate suggestions accordingly to the concerned. The primary focus of this
method is to solve the matter within the given period of time (Stout and Blair, 2017).
Conciliation it is considered as the key method in the dispute resolution process as, it helps to
solve the dispute by appointing the conciliator who tries to resolve the matter by making up the
required terms and conditions of a contract. It is the most recommended method in the ADR
process.
Arbitration it is the last method of the process in which a arbitrator is appointed. The decision
made by the arbitrator has to be followed by both the parties if they consent to follow this
procedure effectively.
Mr. Anderson and Amber ltd should follow the conciliation method to resolve the dispute in the
short period of time and with less cost incurred in all the procedure.

CONCLUSION
From the above given report it can be concluded that the business law is considered to be
one of the important law which is very essential to conduct the business proceedings in effective
manner. the parliament of UK is sovereign because of its power and rights which were given to
them since the 13th century. At the time of incorporation of a company there are various roles and
responsibilities which are required to be duly completed and taken care of. The report also
consists of some cases which can be solved with the help of Alternative Dispute Resolution
which is considered to be the most flexible process to solve the legal disputes with ease.

REFERENCES
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Schmidt, S. J., 2018. Marketing the law firm: business development techniques. Law Journal
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Online
Winding up by the order of court. 2018. [Online]. Available Through <https://winding up by
court.com/b/business/>.

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