Business Law Report: UK Legal System and Business Disputes Analysis

This business law report provides a comprehensive overview of the UK legal system and its application to business operations. It begins by examining the sources of law, including primary and secondary sources, and analyzes the role of the government in developing and enforcing laws. The report then delves into the impact of company employment and contract law on organizations, followed by a discussion of different types of business structures, such as sole proprietorships, private limited companies, and public limited companies, including how they are legally formed and managed. The report also explores how businesses are managed and funded. Finally, the report presents and analyzes case studies to illustrate legal solutions for resolving business disputes, offering practical insights and recommendations for effective conflict resolution within a business context.

Business Law

Contents
Part 1...........................................................................................................................................................3
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
P1 Sources of law.....................................................................................................................................3
P2 role of government in in developing laws and how statutory and common laws are applied in the
courtrooms..............................................................................................................................................4
P3 how company employment and contract law has a potential impact on the organisation................5
P4 different types of business organisation and how they are legally formed........................................6
Types of business organisation............................................................................................................6
P5 manages and funds.............................................................................................................................7
Part 2...........................................................................................................................................................8
P6 Legal solutions to resolve the dispute with respect to case studies...................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Part 1
Introduction
Business law means the development of such rules and regulations which are used to
govern the business and other corporate organisations. This helps them to resolve their issues
which are related to private and public laws. These types of rules and regulations play a
significant role to manage and maintain the business and other practices which are done by the
organisation into the competitive marketplace (Ali and Shabir, 2017). This also helps in order to
protect the rights of the company's, employees, competitors and customers. The assignment talks
about the legal system and different sources of laws. The control of the government in order to
develop the rules and regulations. The statutory and common laws which are used by the court in
order to provide justice. Several impacts of company employment in contract law on the
business. However, the report also discussed how the enterprise is used to manage and fund with
the help of examples. Lastly, the sin mint discusses the three case scenarios and legal
recommendations which helps them to resolve their dispute in an effective manner.
Main body
P1 Sources of law
The structure of the legal system of the UK plays a significant role in providing remedies
and resolving the disputes. There are three pillars which include adjudication, legislation and
execution. The legislation has the power to develop rules and regulations so that we can maintain
peace and security in the society (Backer, 2019). The executors are the authorities which are
executing the rules and the Judiciary is empowered to hear the issues in order to resolve it. There
are two major categories of sources of law which are discussed below:
Primary sources of law: These are such laws which are developed with the help of
documents, evidence pictures etc. The information of such loss is given in the original form.

 Case laws: it is the law which is developed by the judges during the solving the cases.
The judgement which was given in such cases are applicable between the parties and also
applicable with such cases with respect to the same facts in issue.
 Legislation laws: the constitution is uncodified law. The part of the written constitution is
passed by legislation and called as legislation law. This says that no one has rights to
raise the question with respect to the legal entity of such law.
Secondary sources of law: it is developed with the help of interpretation which is supported
by the researchers, authors, judges and other persons. There are several sources of law. Some of
them are explained below:
 Parliamentary publications: it is the background and history of law which is developed
through parliamentary Publication. As it is made by the appropriate authority.
 Law journals: there are several academic Publications which are giving their information
and explanation with respect to the laws. This can be a type of interpretation of the
provisions of law in a simpler form so that the reader can understand the law easily
(Böckli and et. al., 2017).
 Textbooks: it includes written where acts and other interpretation of laws which helps the
students to understand the law in an effective manner. This is used in order to get better
knowledge with respect to legal topics.
P2 role of government in in developing laws and how statutory and common
laws are applied in the courtrooms
The government of the United Kingdom plays a significant role in developing the laws in
an effective manner. This helps them to manage the peace and security within the nation. There
are different strategies which are used by the authorities. The government has power to represent
the nation around the world. This helps them to have a smooth functioning between the citizens.
The government is responsible to adopt the strategies so that they can utilise their resources in an
effective manner. The government used to maintain the peace and security within the territory as
they are responsible to develop the rules and regulations with context to that. The defence, police
and court of law are responsible to maintain the peace and order in the society (Busco and
Quattrone, 2018). The government is responsible to manage the peace and security in the local
area as well on the national boundaries as this plays a significant role. This is also helpful in

developing better relations with other countries in the international scenario. It is necessary for
the government to develop such rules and regulations for the business and other corporate sectors
so that the companies can work in the fair trade practices which helps them to protect the rights
of the competitors, customers and other people.
Statutory and common laws which are applied by the judges
Statutory law are such laws which are passed by the legislation. It is used in order to
develop the system of principles and rules which are mentioned in the specific statutes. It also
empowers the authorities to amend search provisions of the law with specified procedure. It is in
the form of written acts and expressions which are developed by the legislation and other
appropriate authorities who are empowered to do so (Chepurenko, 2018). These are the laws
which can be used by the executive and judiciary in order to maintain the peace and security
within the society.
Common laws are developed from the judicial decision. As it is on the basis of recorded
judicial presidents and used in order to amend the statutory law. These types of laws are
followed in their similar cases which are reported before the court of law and the authorities also
empowered to pass the same judgement as that was held in the previous case (Cosenz and Noto,
2018). It is also called the legal system as the judges use their own mind to resolve the issue and
develop new interpretations of law in order to provide justice to the parties.
The statutory and common law plays a major role while providing justice to the people.
The laws which are written by the authorities help in order to govern the society in a better
manner. As the common laws are developed by the judges where they applied their mind and
that can be used in the same cases in resolving future issues. As the judges are bound to review
the common law before passing the judgement.
P3 how company employment and contract law has a potential impact on the
organisation
In the United Kingdom, the nation has divided three separate legal systems and has an
unwritten constitution. Because of this they have not provided any right to the individuals and
government to develop a law (Eisenstadt, 2019). It is important for every business organisation
to be bound by the several losses as this helps them to maintain our fair trade practices. Every

organization used to develop their memorandum of association and article of association so that
they could develop their rules there which must be used by the organisation in order to achieve
the common goals. The memorandum and articles of association which are developed are formed
with respect to contract law, employment and company’s law. As this helps them to manage the
internal and external operations. These are followed by every business organisation and the
persons who are directly and indirectly associated with such a company (Fernández-Rovira and
et. al., 2021). The legislation Regulation and Standards must be fulfilled by the companies while
developing their rules and regulations. No business organisation is allowed to violate the basic
rules in their article of association or memorandum of association.
For example: a company has mentioned in their article of association that they can fire an
employee without giving a notice within their probation period which is of 6 months. This is a
valid provision and every new employee is bound by such rules.
P4 different types of business organisation and how they are legally formed
Types of business organisation
Sole proprietorship
It is the simplest form of company which can be started with a single entity. This type of
organisation is not required to get registered from the company's house (Gast, Gundolf and
Cesinger, 2017). The owner of such an organisation can notify themselves at HMRC. As the
owner has unlimited liability with respect to the debts and legal actions which might be aroused
during the course of business. The advantages and disadvantages are discussed below:
Advantages
 It is the easiest form of business organisation as it does not require a number of owners.
 These kinds of organisations are beneficial as there is less interference from the
government side.
Disadvantages
 The single entity who is the owner is responsible for all his debts and legal actions as he
has unlimited liability.
 The death, physical disability and mental incapacity resulted in the winding up of the
organisation.

Private Limited Company
It is the organisation in which the private individuals have their own legal rights and
obligations which are developed by the statutory law. It is used in order to protect the personal
assets of the members (Giles, 2018). The members will be level up to the extent of their
shares. The pros and cons of such kinds of companies are mentioned below:
Advantages
 These kinds of organisations are separate legal entities which have the right to sue and to
be sued.
 They can issue shares in order to raise capital.
Disadvantages
 The company is bound on transferring the shares to the general public.
 They cannot raise capital from the market.
Public limited company
It is the company where the liability of the members is limited but general people can
become the shareholder of the company
Pros
 It is an easy process organisation to raise capital from the general public.
 The organisation can issue prospectus into the competitive market.
Cons
 Highest level of transparency must be maintained by such companies.
 There are several issues faced by the organisation with respect to the rules and
regulations.
P5 manages and funds
 Sole trader: these kinds of organisations are managed and owned by the owner only. The
owner will be responsible to raise the fund. He is the only one who is going to manage
and fund the organisation.
 Private Limited Company: These types of company are owned and managed by the
directors of the company. The members of the company identification work together in
order to attain the common goal of the organization (Härkönen, 2018). The members
have the responsibility to develop search strategies which helps them to a team the

ultimate targets of the organisation. The members are responsible in order to manage the
affairs of the organisation and also where the capital is by issuing shares among
themselves as they are not allowed to raise capital from the general public.
 Public Limited Company: these are such companies which are managed and owned by
the government and local authorities. The affairs of such organisations are managed by
the directors. These types of organisations used to raise capital by issuing prospectus of
shares to the general public which helps them to raise capital in an effective manner.
Part 2
P6 Legal solutions to resolve the dispute with respect to case studies
Case study 1
Gordon is a salesman and his contractual employment. He used to work on a salary with
the Commission. In 2015and 2016 Gordon did not get the salary and only the commission
amount was credited to him because of the poor condition of the organisation.
Legal issue
Once Golden hands the amount of wages in the year of 2015 and 16 he can claim it in the
year of 2017 or not.
Solution
According to the case scenario Gordon has to resolve the legal issue with respect to his
salary. He can directly ask to repay the amount for the year of 2015 and 2016 from his employer.
As he was not waived the right to clean from such amount it was because due to the competition
in the local market the business was adversely affected and in order to support the organisation
Gordon has accepted the amount of commission only (Hoffman and McNulty, 2017). Orange
computers Limited Store has decided to accept the amount of commission. Gordon also has the
right to file a litigation against the company as he has already requested the organisation to pay
him that amount of salary. He can go to the appropriate court in order to exercise right. After
analysing the case the court will be delivering their judgement where he can make liable to the
organisation in order to pay the amount of salary to the golden and other amount with respect to
the infringement of his right or other issues which are faced by the Gordon in order to avail such

right. It is important for Gordon to speak before the court and prove that he never waived his
right to claim the amount of salary.
Case study 2
Janet has decided to call Virgin Media to purchase and install the internet package which
was costing £35 per month. But when the engineer visited his house in order to install such he
found that there is an issue of a telephone point on the switch port and for the same he told Janet
that he will call his supervisor in order to complete the task. Many times he complained in order
to complete the task but it was the result after 3 weeks.
Legal issue
The legal position of the service provider and the consumer that generates will be liable
to pay the three weeks rental or not.
Solution
As for the case scenario there is no fault of Janet in order to avail the services by the
Virgin Media organisation. Both parties were under the contract but the main purpose of the
contract was not fulfilled because of the fault of Virgin Media (Ludbrook and et. al., 2019). And
to resolve this, Janet can file a petition before The Honorable Court in order to get compensation
as it was the fault of the company in providing their services (Veltri, De Luca and Phan, 2020).
The court will resolve the issue in a proper manner and appropriate decision which will be taken
by the court that will be bound upon both the parties.
Case study 3
Black horse Limited is a security company which used to provide security guards to
businesses. As the company has four major customers and one of them has failed in giving an
amount of £100,000. This was recovered after 3 months but the turnover is now spread over 10
customers and due to reduction of such bad bets the amount was stretching the dates of payment
which bi organisation is liable to pay to the creditors (Mavi and et. al., 2019). The company has
failed to pay back the amount to the creditors which resulted in a case against them in the court.
The creditors have filed a petition before The Honorable Court and from there the court has
decided to wind up such an organisation.
Legal issue

What are the different factors which can be adopted by the organisation in order to avoid
the compulsory winding up order.
Solution
 There are several factors which must be considered by the organisation which will be
used in order to avoid the compulsory winding up order. Some of them are given below:
 The black horse limited company can request the creditors and communicate to them that
they will pay back their amount with interest within a specified period of time (Pletsch
and da Silva Zonatto, 2018).
 The company can also file a petition to the Honorable Court to stop the winding up order.
As a company can provide security in order to ensure that they will pay that amount to
creditors and then she asked that they are not insolvent.
 The company can also negotiate the voluntary arrangements in order to take stay from the
compulsory winding up order which was given by the Honorable Court (Rossignoli and
Lionzo, 2018). As it is not beneficial for the organisation, when the petition for stay on
compulsory winding up has been advertised in the public the bank will freeze the bank
accounts and then it will be difficult for the organisation to trade in the competitive
market.
 Companies can also adopt an out of court settlement that is arbitration (Saad, Farouk and
Kadir, 2020). In just the both the parties have the right to decide their dispute between
themselves before the honorable arbitral Tribunal. The decision of the Tribunal will be in
Binding in nature and bind both the parties to accept it and follow it accordingly.
Conclusion
From the above report it can be concluded that business is an activity which is engaged in
producing and selling of goods and services in order to earn revenue from it. There are several
rules and regulations which are developed by the authority in order to regulate the business
practices into the competitive marketplace. As discussed from the above report there are several
types of business organisations which can be formed to satisfy the needs and wants of the
company as well as customers. The company can manage and fund themselves with the help of

several channels so that they can have a smooth functioning. Lastly, with reference to the
different case scenarios there are several ways to resolve their dispute.

References
Books and Journals
Ali, J. and Shabir, S., 2017. Does gender make a difference in business performance?. Gender in
Management: An International Journal.
Backer, L.C., 2019. Unpacking accountability in business and human rights: The multinational
enterprise, the State, and the international community. In Accountability, International
Business Operations, and the Law (pp. 60-85). Routledge.
Böckli and et. al., 2017. A Proposal for the Reform of Group Law in Europe. European Business
Organization Law Review, 18(1), pp.1-49.
Busco, C. and Quattrone, P., 2018. Performing business and social innovation through
accounting inscriptions: An introduction. Accounting, Organizations and Society, 67,
pp.15-19.
Chepurenko, A., 2018. Small family business in Russia: formal or informal?. International
Journal of Sociology and Social Policy.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning, 51(1), pp.127-140.
Eisenstadt, L., 2019. Data Analytics and the Erosion of the Work/Nonwork Divide. American
Business Law Journal, 56(3), pp.445-506.
Fernández-Rovira and et. al., 2021. The digital transformation of business. Towards the
datafication of the relationship with customers. Technological Forecasting and Social
Change, 162, p.120339.
Gast, J., Gundolf, K. and Cesinger, B., 2017. Doing business in a green way: A systematic
review of the ecological sustainability entrepreneurship literature and future research
directions. Journal of Cleaner Production, 147, pp.44-56.
Giles, J., 2018. Neutrality in the Business Sphere—An Encroachment on Rights Protection and
State Sovereignty?. Oxford Journal of Law and Religion.
Härkönen, E., 2018. Conflict minerals in the corporate supply chain: is transparency the solution
to human rights violations in the tantalum, tin, tungsten and gold supply
chains?. European Business Law Review, 29(5).
Hoffman, W.M. and McNulty, R.E., 2017. A Business Ethics Theory of Whistleblowing
Responding to the $1 Trillion Question. In Whistleblowing (pp. 45-60). Routledge.
Ludbrook and et. al., 2019. Business models for sustainable innovation in industry 4.0: Smart
manufacturing processes, digitalization of production systems, and data-driven decision
making. Journal of Self-Governance and Management Economics, 7(3), pp.21-26.

Mavi and et. al., 2019. Ranking factors influencing strategic management of university business
incubators with ANP. Management Decision.
Pletsch, C.S. and da Silva Zonatto, V.C., 2018. Evidence of the effects of psychological capital
on the transfer of knowledge from accounting students to business organizations. Journal
of Knowledge Management.
Rossignoli, F. and Lionzo, A., 2018. Network impact on business models for sustainability: Case
study in the energy sector. Journal of cleaner production, 182, pp.694-704.
Saad, R.A.J., Farouk, A.U. and Kadir, D.A., 2020. Business zakat compliance behavioral
intention in a developing country. Journal of Islamic Accounting and Business Research.
Veltri, S., De Luca, F. and Phan, H.T.P., 2020. Do investors value companies' mandatory
nonfinancial risk disclosure? An empirical analysis of the Italian context after the EU
Directive. Business Strategy and the Environment, 29(6), pp.2226-2237.