Business Law Report: Legal System, Company Formation, and Cases

This business law report provides a detailed overview of the UK legal system, including the roles of Parliament, the sources of UK law (Acts of Parliament, Case Laws, EU Law, and ECHR), and the procedures for law formation. It examines the impact of employment, contract, and company law on business organizations. The report also delves into different types of business organizations, differentiating between incorporated and unincorporated businesses and analyzing the advantages and disadvantages of partnerships and companies. Furthermore, it includes case studies that apply legal concepts to real-world scenarios, offering recommendations for resolving legal problems. The assignment covers the formation of companies and the legal implications for various business operations, making it a comprehensive resource for understanding business law principles.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1: LEGAL SYSTEM & FORMATION OF COMPANY..............................................1
TASK 1............................................................................................................................................1
Why Parliament of UK is Sovereign. Discuss............................................................................1
Explain about different sources of UK Law...............................................................................2
How government form any of the law and what is detail procedures which they have to
follow?.........................................................................................................................................3
How Judges of justice court take the help of statutory and common law to declare their result 4
How employment, contract and company law can impact any of the business organisation.....4
TASK 2............................................................................................................................................5
Discuss about different types of business organisation...............................................................5
Distinguish about incorporated and unincorporated business referring that how they are
managed and funded...................................................................................................................7
Explain in detail about advantages and disadvantage of partnership and that of a company.....8
SECTION 2: SOLVING DIFFERENT CASES..............................................................................8
CASE 1............................................................................................................................................8
Case Scenario..............................................................................................................................8
CASE 2............................................................................................................................................9
Case Scenario..............................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Law which has to deal with whole of the commercial department is known as business
law. This sector of law has to cover wider range of area through which it becomes easy that how
decision is needed to be taken. Business law has the potential to recover any of those business
which is not performing well or underperforming. Whenever any of the investors thinks that they
want to take some of the important decisions then they can refer business law. In this file, detail
information will be given that how laws are formed and how any of the legal decision is needed
to be taken by considering legal law. Formation of company will also be explained that what is
the detail procedure which they need to follow. Recommendation will be useful to understand
that how any of the legal problem can be solved.
SECTION 1: LEGAL SYSTEM & FORMATION OF COMPANY
TASK 1
Why Parliament of UK is Sovereign. Discuss
Whenever there is a discussion about parliament, name of UK parliament is raised as they
are the one who enjoys most of the rights and even their parliament is the most power parliament
as compared to other part of the world. Their parliament has the most power right i.e.,
commencing or dissolving any of the legal law within the UK. They are the one with whom each
and every sources have to discuss that whether any of the new laws and regulation are valid or
not. The concept of sovereignty was decided in mid 18th century that they will be the one whose
decision is mandatory to be followed.
(Source: What does the supreme court ruling mean for British Parliamentary sovereignty? 2016)
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Illustration 1: Parliament of UK

Queen has the major role to be played in any of the session of parliament as she is the one
who have to address the parliament every year in the opening day. Here, it is necessary that all of
the member of parliament must be present whenever she addresses the House of Parliament as to
give her full respect. The speech which she delivers is important for everyone because people
have to work and plan according to that particular speech only (Beatty, Samuelson and Abril,
2018).
Explain about different sources of UK Law.
Law and regulations cannot be formed if there is no involvement of any of the other
person of panel. It makes the job easy as chances increases to select the favourable points
through which outcomes can be more desirable. Some of the main sources of UK law is
explained below: Act of Parliament: Whenever there is the requirement of new laws and regulation it is
said that parliament have the part to perform. In this source, law are being commenced in
proper detail after collecting the relevant information. They have to even check what can
be the positive and negative of new bill which they are required to pass. Case laws: The law which is enforced in the session of court just for the purpose of
taking better decision is known as case laws. The most important thing which is needed
to be understood is that they have only got the power to commence any of the law in that
situation in which other sources have not done any sort of discussion. Whenever this
form of laws are enforced, it is important for everyone to understand that they are
required to follow all of them. European Union Law: Number of law and regulation are various within UK but the most
important thing which is needed to be understood is that how and who have been
commencing those laws. This source is important for UK because they help to take
relevant decision to any of the business organisation. The panel of EU law has great
responsibility because they have to cover various areas and laws and even they have to
make sure from beginning that they will not leave any of the weaker area because this
sort of laws and act doesn't need to be passed from Parliament House (Allen and
Kraakman, 2016).
 European Convention on Human Rights: The source which does have the rights and
responsibilities to commence any of those laws and regulation due to which rights can be
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protected is called European Convention on Human Rights. This sources gives the idea
that what an individual should do and what are those things which they are not allowed to
any period of time. This source also gives the idea that what are those freedom which
must be given to every individual. In sort, ECHR allows the people to take any of the
corrective decision whether it is in business sector or any other area.
How government form any of the law and what is detail procedures which they have to follow?
There are many nation in which various authorised department has to play huge role
because they are the one who have to decided that which sort of law is important and why. But in
context of UK, their ruling government has got this responsibility to manage every single work.
The government has been divided into two segment i.e., House of Lords and House of Common.
The member of common is changed in every short period of interval but it doesn't happen with
House of Lords. The roles and responsibilities have been delegated equally to both of the
department. The process starts from presenting the bill in front of House of Common. The bill is
presented for the first reading where major work it to think about the suitable title which is
needed to be given so that next proceeding can be held. Then bill reaches to second stage where
it is checked that what are the points which are mentioned in it and it can give advantage to
common public (Cameron, 2017). After checking the bill they forward it to next level which is
Committee stage. In this stage, it is necessary to check what are those point which can create
unnecessary issues in future so that they need to mark them for minor or major modifications.
Then, they draft the bill to report stage where they need to take the correct decisions according
to the criteria which has been set by committee stage. Once this process is complete they are
required to pass it for the next process who have the most important role in whole of this process
because once bill is passed from this stage, it is not possible that it will be amended by house of
Common. This stage is called third reading. Even voting is also required in it. Then, it is said
that bill is forwarded to House of common where they also follows all of the similar stages for
the purpose of cross verification. Finally, it is needed transferred for Royal Assent which makes
bill to law.
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(Source: English votes for English laws: an explanatory guide to proposals, 2015)
How Judges of justice court take the help of statutory and common law to declare their result
It is never easy for any of the person to decided that what types of judgement should be
given so that effective results can be obtained. For that, it is important for any of the government
that they must form proper laws and regulation so that judges don't have to suffer from any sort
of issues. If cases are not of complex in nature and guidelines can be easily found then declaring
the decision becomes easy. Justice court doesn't have to suffer from any of the problem
whenever information are available under statutory law. If laws and regulation are blank about
any of the sections then it role of case laws increase where justice court needed to search same
nature of issues and their judgement to find declare relevant decision in justice court.
How employment, contract and company law can impact any of the business organisation.
Whenever law and regulations are being formed, it is necessary to check that what are its
major importance and what was the main reason that it was needed to be commenced. Even, it is
also needed to be checked that how does it effect the organisation i.e., positively or negatively. In
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Illustration 2: Law Making Process of UK Government

addition, to understand about the law in detail, it is necessary to have a overview about various
laws and regulations.
Employment law is the law which has the authority to overview any of the business
organisation. This is the law which have set the particular standard that is needed to be followed
within the premisses of company. Here, laws and regulation defines that what should be the
relation of any of the employee and employer because they both have the equal role to be played
for the development and sustainable future of a company. They are even certain restrictions too
due to which different impacts can be seen. For example: the law decides that what types of
working environment should be given to any of the employee. Although, it increases the cost but
after certain time positive results can be seen which means it does have the positive impact on
companies day to day working style (Orts, 2017).
Contract law is also one of the law who guides the owner of a company that how they are
required to work and what types of contract should be formed. This law is useful because it work
on the policies of equality. This law says that there should be offer and acceptance in any of the
agreement to make it valid. The most important benefit of contract law is that work is needed to
be done according to the set criteria. For example: this is the law which focus on accomplishing
the terms and condition on specific time due to which company have to not suffer from any sort
of losses that means it does have the positive impact.
Company law is the law which tells that how any of the company is needed to do work
when they started any of the business organisation. There are number of guidelines which is very
crucial for any of the organisation because in each and every steps company have to be
considered. If company do not wants to involve themselves into any sort of issues and problem
then they can take the help of company law. For example: Company law have given the
guidelines that what types of decision is needed to be taken to overcome from the problem in
best possible way and that has the positive impact on business organisation (Snyder and Maslow,
2018).
TASK 2
Discuss about different types of business organisation.
Companies are of different types which is formed according to the amount of investment
and choice of investor. In the given case, it was found that all of three partners wants to form
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new form of business organisation and for that they are required to have a knowledge of different
types of business organisation and they are:
Sole Proprietorship: The business style where there will not be involvement of any of the
outsiders is known as sole proprietorship. This types of company don't have to fulfil any of the
legal demand for performing business activities. The benefits are multiple as compared to other
form of business organisation. During the process of formation, only registration is required
which takes very less period of time and even it is easy too. This means that three of the partners
will not be able to invest their money in this type of business.
Partnership: The business where there is demand that multiple number of persons are
required so that commercial activities can be performed is known as partnership. This types of
business needs the support and quick decision making ability so that competition can be done
within the market. Whenever partnership firm are being formed it is said that plans and policies
must be reviewed in every short period of spell so that results advantage can be taken easily. The
process of formation of partnership firm is that deed is to be prepared at first and after that this
documents must be submitted to companies House. This can be one of the option available with
Jane, Penny and Marie (Frankle and et. al., 2015).
Limited Liability Company: The business in which proper team is required to conduct
business activity is known as Limited Liability Company. This types of business has to make
sure that burden should not come on any of the person who have done the investment in a
company. This is one of the company where mixture is found as flexibility of partnership and
corporation can be seen. The process of forming it is quite complex if it is compared with other.
It starts with the selection process of name and legal laws which applies on it. After that article
of company is to be drafted in which detail program of company is to be mentioned. All of this
formed are mandatory to be submitted so that business activities can be started. This might work
for all them (Jane, Penny and Marie) where they will have to not suffer from various kind of
issues and problem.
Corporation: The style of doing business at much bigger platform is known as
corporation. This types of business have to do lot of hard work because there is no chance of
mistakes in it. The advantages are more in this types of business because number of benefits are
comparatively high. If any of the person wants to incorporate corporation then they have to make
sure that they are have the sufficient amount of fund to manage every single work. The legal
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process of forming corporation is selecting with the name of a company with adding the proper
tea. After that it is necessary that shareholder and director must be decided. Even it is necessary
that SIC code must be obtained for better results. This documents are given in the Companies
House.
From all of the above types of organisation, three of the partners can take the help
Limited Liability company to start business activities and they will be benefited form it too. The
main benefit they will get in it is that they will get the easy option to raise fund for their personal
and professional benefits (Cameron and Pagnattaro, 2017).
Distinguish about incorporated and unincorporated business referring that how they are managed
and funded.
Incorporated: An incorporated is a separate entity and has it's legal rights. It protects the
owner from bearing any debts or liabilities because debts payment is made from the money
invested in the company's capital not owners personal assets. If any lawsuit is to be formed
against business it will be in the name of the company not the owner.
Unincorporated: An unincorporated company is formed when two or more people
having the similar areas of interest do business together for benefits. Here the owner is held
liable for any debts of the company and in the case of an lawsuit.
Referred to Incorporated Unincorporated
Management The management of an incorporated
company is a little complex and
involves a lot of paper work.. It is
much more easy once established as
it provides benefits like saving tax,
less accountability and long run. The
initial stages are difficult to
maintain and the responsibility on
the directors is too much.
The management of an unincorporated
company doesn't involve much
paperwork and is easy to setup, but the
owner is always held liable for the
company's action and his personal
assets are at stake. Maintenance and
workload is generally divided between
the partners so it is not too much
responsibility on one member.
Funding  Bank loans
 selling corporate stock,
 Personal assets
 bank loans
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assets and securities.
Explain in detail about advantages and disadvantage of partnership and that of a company.
Advantages:1. liability: Owners and the shareholders are not at risk of loosing personal assets , in a
partnership the owners personal assets are always at stake.
2. Source of capital: Major benefit of having a company is easy access to raise capital
through selling corporate stock.
Disadvantages:
1. Attestation and prices: Documentation of records for government is very important,
states charge for franchise tax and all paperwork must be complete before filing articles
of incorporation (Bayern, 2016).
2. Excessive rules and norms: many requirements like board of directors, meeting, breaks
and documentation for public records are to be fulfilled by the law to maintain the
company.
SECTION 2: SOLVING DIFFERENT CASES
CASE 1
Case Scenario
The main issues and problem which were found in this case is that Champion Ltd. was
suffering from various kind of issues due to which they were not able to clear the debt amount of
creditors. After looking all of the possible situation creditors wants to file the case against
Champion Ltd to wind up the organisation.
Winding Up: This is the process where company have to struggle from various kind of
issues and even they don't have the option to recover in most of the cases. This are the black side
of any of the company because they start to be rated as underdogs who cannot compete in the
market. This types of process is based on situation that really company don't want to perform
their business activity or they wants are proven as insolvent. The different types of winding
process is
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Voluntary Winding up Process: If company themselves think that they will not be able
to deliver what they really wanted to do in this market then they adopt voluntary winding
(Shaffer, 2016). Their directors have to file the petition in court where they have to follow the
detail process to windup the company.
Compulsory Winding up Process: It is the process where court decides that if company
will perform their business activities they will create unnecessary problem so it is better to
shutdown is known as compulsory winding-up. The judges delegate the responsibilities to
liquidator who decides the final price of assets which they are going to sale in quick succession
of period.
Recommendation: The main motive of this business was not being fulfilled so it was
better for champion limited to shut it down its business. They must try to adopt voluntary
winding up where they can close the company of own after taking the permission. It will help to
pay the debt amount of creditors on time.
CASE 2
Case Scenario
There was the dispute between Mr. Anderson and Amber Ltd as contract was near to be
breached. It was found that company wants to file the case against Mr. Anderson as he breached
the terms and condition of a contract.
Solution
Looking at the case studies, it can be understood that business has been performing well
just because of Mr. Anderson and now company don't want to loose this types of employee
(Allen, 2017). But, problem can be raised if they will not solve it by themselves because process
of court is never suitable for any of the person or organisation. Both parties have the option to
select Alternative Dispute Resolution Process to clear out the issues.
Alternative Dispute Resolution
This is the activity which is beneficial in clearing out the problem. It is one of the most
advanced method of solving the issues in which court in never involved and even matter is also
solved easily. The process is easy because various department have been divided in it due to
which it becomes easy for to take help according to the nature of dispute (Mikami, 2016). The
different methods under it are:
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Mediation: The style of solving the minor level of problem with suitable way is
advising is known as mediation. The target which is needed to be achieved in it is to reach near
the terms of agreement. This is suitable too in modern days (Morley, 2016).
Arbitration: This is the technique in which disputed party have to decide that how they
are going to take the help of arbitration process of resolve the problem. They are required to
understand that if they adopt this method then they will not be allowed to take the help of any
other level of court. This is one of the most safest and secured way to clear out the problem in
easy process (Rohlin and Ross, 2016).
Recommendation: The disputed party like Anderson and Amber Ltd should with the
option of arbitration because both of them are looking their person benefits due to which it will
not be easy to clear out the issues. Arbitration method will give them the idea that how they can
reach towards the conclusion.
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