Business Law Report: UK Legal System, Business Organisations, Disputes

This report provides a comprehensive overview of UK business law, beginning with an introduction to the legal system and the sources of law, distinguishing between primary and secondary sources. It then explores the role of the government in law-making, differentiating between statutory and common law and how they are applied in the courts. The report further analyzes the impact of company employment and contract law on businesses, followed by an examination of different types of business organizations, including sole traders, private limited companies, and public limited companies, and how they are legally formed. It addresses management and funding aspects, and concludes with legal solutions to resolve disputes through case studies. The report highlights the importance of understanding the legal framework to ensure businesses operate effectively and within the bounds of the law.

Business law

Contents
Part 1................................................................................................................................................3
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
P1 sources of law.........................................................................................................................3
P2 role of government in law making and how statutory and common law is applied in the
court of Justice.............................................................................................................................4
Statutory and common laws which are applied by the Court of Justice...................................5
P3 how company employment and contract law has a potential impact on the business............6
P4 different types of business organisation and how they are legally formed.............................6
Types of business organisation.................................................................................................6
P5 Management and funds...........................................................................................................8
P6 legal solutions to resolve the disputes with respect to case studies........................................8
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Part 1
Introduction
Business law refers to the rules and regulations which are developed by the government
or other authorities in order to govern the business and other organisations. It is used in order to
resolve the issues related to private and public laws. These kinds of laws play an important role
in order to manage and maintain the business and other dried practices into the competitive
market as this helps them to protect the rights of the organisation, employees, competitors and
customers (Bergman, 2018). The report discussed the legal system and different sources of law
which are present in the United Kingdom. The role of the government with context to
development of laws and how statutory and common laws are used in order to provide justice to
the people. What is the impact of company employment in contract law on the business
organisation. Moreover the report is being discussed about how the enterprise is used to manage
and funded with the help of appropriate examples. Lastly, the report is being discussed about the
three case scenarios and legal recommendations in order to resolve their dispute.
Main body
P1 sources of law
The structure of the legal system of the United Kingdom plays an important role in order
to provide remedies and help in resolving the disputes. There are three functions which include
adjudication, legislation and execution. The Judiciary is empowered to hear the cases and resolve
them according to the present laws which were developed by the legislature. The legislature has
the power to develop a law so that they can maintain the rules and regulations in the society. The
executive has a power to execute the rules and regulations which are developed by the legislature
and also used in order to ensure such rules and regulations are working with respect to the
provisions which are developed. There are two major categories of sources of law which are
mentioned below:
Primary sources of law: These are such kinds of laws which are made with the help of
documents, evidence, pictures etc. It is the law whose information is given in the original form:

 Case laws: it is the law which is developed by the Judiciary while resolving the
dispute between the parties (Bright, 2018). The decision of such a case will be
applicable with respect to the same facts in issue in another case. Every judge is
empowered to use the decision of the higher authority in order to take reference in
their case.
 Legislation law: the United Kingdom constitution is uncodified law. The written
constitution which was passed by the authority is known as legislation. With
respect to this no one has a right to raise the question upon its legality.
Secondary sources of law: the law which has been interpreted and quoted by the
researcher, scholars, authors are treated as the secondary law. There are several examples of
secondary source of law and some of them are discussed below:
 Parliamentary publications: it is also considered as the background and history in
order to develop any of the law. The Parliament also takes into consideration with
respect to the history of the particular law which was developed by the appropriate
authority.
 Law journals: these are some of the academic Publications which are giving extensive
information with context to any particular topic which might be in the issue in some
of the cases. This can be specific internally where the author used to provide the legal
provisions in simple form which can be used by the authority or any of the readers to
understand the law in a better form.
 Textbooks: it includes the written Bare Act and other interpretation of such laws
which can be included as the secondary source of law (Burke and Cowling, 2020).
These kinds of textbooks can be used by the students so that they can get better
knowledge with respect to the laws or any of the legal topics.
P2 role of government in law making and how statutory and common law is applied in the
court of Justice
The government plays an important role in order to determine how the loss can be useful
in order to manage peace within the society. It is important for the authority to determine several
strategies which can be used by them in order to develop the laws. The government can also plan
different slabs so that they can take taxes from the general people and also plan to use such
revenue into the Welfare of the general public. The government of the United Kingdom has a

power which can be deadly granted in order to the fault institutions in Scotland, Wales and
Northern Ireland. The government of the United Kingdom has the power to represent the other
Nations at the global level. It is also important for the authority to develop such laws which can
be used by the government in order to maintain the smooth functioning between the citizens and
other people who are sitting there. The theoretical is also responsible to adopt several strategies
so that they can utilise the natural and economical resources in an efficient manner which helps
them in saving such resources from wastage. The government can maintain the peace and safety
measures within the territory and the executive is responsible to look after whether such rules
and regulations are applicable in a specified manner or not (Fernández-Rovira and et. al., 2021).
The defense police and court of law or used by the government in order to maintain the peace
and order into the society.
Statutory and common laws which are applied by the Court of Justice
Statutory law means the law which was passed by the legislation. It is the law which is
developed by the help of a system of principles and rules and mentioned in the specified statutes.
When the authority wants to amend statutes there are specific provisions which must be followed
by the authority in order to amend such statutes. S the statutory law is in the form of written acts
and expressions which was developed by the legislation and used in order to develop rules and
regulations so that the government or other appropriate authority can regulate the society in an
effective manner.
Common laws are the laws which are formed from the judicial decisions. It is developed
on the basis of recorded judicial presidents and helpful in order to amend the statutory law. The
common law can be used by the other judges in their similar cases which are reported in future
and the court is empowered to pass the same judgement with respect to follow the previous
decision of the case. These kinds of case laws are also called the legal system as the judge has
used his own mind in order to resolve the issue while taking and reference from the past case
scenarios.
These both laws are playing a major role in order to provide justice to the party. The
return law is used by the authority in order to govern the society in a better manner. The common
law also plays an important role as it is used by the judges in order to decide the present cases. It
is important for the judges to to look after the statutory and common laws before concluding the
issues between the parties.

P3 how company employment and contract law has a potential impact on the business
In the United Kingdom there are three separate legal systems and the nation has an
unwritten constitution. As there is no written law which gives the rights to the individual and
government in order to enact such an act. It is important for every business organisation to
follow the rules and regulations and other guidelines during the process of attaining their
common goals in an effective manner (Frémeaux, Michelson and Noël-Lemaitre, 2018). Every
business organisation uses to develop their memorandum of association and article of association
in respect to the contract law employment and companies law. As with the help of memorandum
and articles of association, it can be used in order to manage the internal and external operations
of a business. These laws must be followed by the business enterprise in order to satisfy the
needs and wants of the designers of their employees, customers, competitors and other persons.
Legislation Regulation and Standards can be used by the business organisation as this helps them
to develop the rules and regulations in an effective manner. This can be used by the companies to
develop their and also helpful in order to provide a better working environment for their
employees.
For example, a company has mentioned in its article of association that an employee can
be fired without giving any notice within the three months of probation. Then the employee will
be liable with these kinds of rules as it is mentioned in the article of association.
P4 different types of business organisation and how they are legally formed
Types of business organisation
Sole trader
It is the most simplest form of business which can be easily started by the individual as
the process of registration is not required in the company's house. The owner of the sole trader
can notify themselves at HMRC. After the notification it has become a legal entity where the
owner is having an unlimited liability towards his debts and legal actions (Tippett, 2018). The
pros and cons are discussed below:
Pros
 It is the easiest form of business which can be developed by a single entity.
 In this kind of business organisation the government has least interference.
Cons

 The owner is the only one who has a decision making power. Sometimes it's been
difficult for one person to make a beneficial decision for the company.
 The death, physical disability or mental incapacity of the owner have an impact on the
organisation and resulted in the winding up of such a company.
Private limited company
It is the legal entity where the private individuals have their own legal rights and
liabilities which can exist before the Court of Justice. It is beneficial for all those individuals as it
helps them in protecting the personal assets because of the limited liability. In these signs of
organisation the shareholders will be liable up to the extent of their shares (Gadžo, 2018). The
advantages and disadvantages of such kinds of organisation are discussed below:
Advantages
 These kinds of organisations have a separate legal entity into the competitive market.
 The company has power to sue and to be sued.
 They can easily raise their capital by issuing the share to the shareholders only.
Disadvantages
 These kinds of organisations have a restriction while transferring their shares to the
general public as it is a private limited company.
 These kinds of companies cannot issue the prospectors of shares to the general public
because they cannot raise their funds from them.
Public limited company
These are such of the organisation where the liability of the members are Limited as up to
the extent to which they have invested. These kinds of companies are beneficial for the general
public as they can become the shareholder while buying the share of the organisation.
Pros
 It is beneficial for the organisation to raise their capital from the general public.
 It is easy for such companies to transfer their shares.
Cons
 These kinds of companies have the highest level of transparency.
 There are several issues which can be faced by these kinds of companies with respect to
rules and regulations.

P5 Management and funds
Sole trader: this kind of organisation which is managed by the owner of the organisation.
The owner is the only one who is responsible to manage their work and other operations of the
business (Zeng, 2019). The funds can be raised and arranged by the owner only.
Private limited company: These are such of the companies which are owned and
managed by the individuals only. In this kind of company members come together so that they
can analyse the different responsibilities which they can have towards the organisation and
develop the strategies accordingly which helps them to attain the common goal of the
organisation. With respect to this kind of Companies, the members can raise the capital by
showing the share among themselves as they cannot raise capital from the general public
(Gerard, 2018). This kind of organisation cannot publish their prospectors to the public but can
issue the prospectus to the existing shareholders only.
Public limited company: these are such companies which are owned and government by
the local authority or the state authorities. The affairs of these kinds of organisations used to be
managed by the directors. They are responsible to develop their strategies so that they can
achieve the set targets of the firm (Jimenez-Castillo and Hoy, 2019). These kinds of Enterprises
used to publish their prospectus to the general public as the company can raise the capital from
them.
P6 legal solutions to resolve the disputes with respect to case studies.
Case study 1
Gordon is a sales man and he is the contractual employment with the salary and
commission. In the year of 2015 and 2016 Gordon was not paid the salary and only the
commission amount was credited to him.
Legal issue
Once Gordon has waived the amount of wages in the year of 2015 and 2016, he can claim it in
the year of 2017 or not.

Solution
There are several options for Gordon to resolve the legal issue which he has faced in his
employment. He can directly ask the employer to repay his amount for the year of 2015 and 2016
as he was not waived the right to claim it as in the year of 2015 due to the competition in the
local market the business was adversely affected and in order to support that the the Gordon has
accepted the amount of commission only because he was aware about the issues faced by the
orange computer Limited Store. In order to support the organisation he has decided to accept the
amount of commission (Kimani and et. al., 2020). But he never agreed to waive his right from
such an amount. As the company is level toupee the amount as he has sufficient profits to repay
the money of Gordon. The coding can also file a litigation if the company is not paying the
amounts to him by the request. He can go to the appropriate Court of law in order to access his
right. The court can decide the matter with the help of evidence and other statements by both the
parties and then only will decide the case. The decision of the court will be applicable and is
binding in nature. When the court will order the orange computer Limited store to pay the
amount of Golden then he will be liable to pay the amount plus the amount of other
compensation which can be awarded by the court with respect to the infringement of his right.
Case scenario 2
Janet has decided to call Virgin Media in order to purchase and install the internet
package which was costing £35 per month. The engineers from the organisation have come and
arranged the setup and installed the internet but they did not find the telephone point on the
switch board and told him that he will call his supervisor and come back. Janet has waited but
the engineer has not come with his supervisor in order to complete the task and for the same she
has complaint in the organisation with respect to the issue and after 3 weeks the engineer came
and resolved the issue. When the invoice came from the organisation, it seems that she was
charged the whole package and has rental for the three weeks where she did not use the internet
as it was not active because of the fault of the organisation.
Legal issue
The legal position of the service provider and the consumer that Janet will be liable to
pay the three weeks rental or not.

Solution
While considering the above case scenario it can be said that the company will be liable
for the rental of 3 weeks as it was their fault that they failed to provide the internet services to the
customer. Both the parties came into a contract but the main purpose of the contract is not
fulfilled on the default of the Virgin Media as the field in order to arrange and install the internet
package in a proper manner. The customer can file the case in order to resolve the dispute before
the court of law (Nicolaides, 2017). As it is the fault of the company in order to provide their
services into an agreed manner. So here the company will be liable as it was their fault where
they failed to provide the appropriate services to their customers. It is the kind of unfair trade
practices which is conducted by the organisation in order to charge an extra amount from their
customers without rendering their services to them in an agreed manner. The court will take the
issue into proper manner while considering the evidence and other scenarios of their contract and
also take an appropriate decision which will be liable for both the parties.
Case scenario 3
Black horse Limited is a security company who provides security guards to other
businesses. The company has four main customers the largest of which has failed in giving the
£100,000 amount and it has become the bad debt for the organisation. After three months the
company has recovered the amount but the turnover is now spread over 10 customers and due to
the reduction of such bad that amount there is a stretching the due dates of the payment as which
was required by the organisation to be paid back to their creditors. When the creditors are not
able to get their money they filed a petition two weeks before before the court of law or and the
court has given an order to wind up the organisation.
Legal issue
What are the different factors which can be adopted by the black horse Limited security
company in order to avoid the compulsory winding up
Solution
There are several factors which can be considered by the organisation in order to avoid
the compulsory winding up. Some of them are discussed below:
 The company can request their creditors and communicate with them that the company
will pay back their amount within a specified period of time and also agree to pay the
amount of interest upon the amount.

 The company can also negotiate voluntary arrangements which can be helpful for the
company to take the stay from the compulsory winding up (Ovadia and et. al., 2018).
Once the petition is advertised in the gadget banks will freeze the company's bank
account and it will make it difficult for the organisation to trade in such a situation.
 They can file a petition before The Honorable Court in order to stop the winding up
order. As the company can also agree before the Honorable court to pay the amount of
the creditor and also ensure then that they are not insolvent.
 Arbitration is a kind of a settlement which can be done by the organisation as it is also
called as out of court settlement. In this both the parties have the right to decide their
dispute between them before the arbitral Tribunal. The parties can file an application
before the court in order to refer their dispute to the arbitral Tribunal. The decision before
the arbitral Tribunal is also Binding in nature and both the parties are liable to follow it.

Conclusion
It can be concluded from the above report that the business is an organisation which was
engaged in buying and selling of goods and services to on profitability from the competitive
market. There are several rules and regulations which were made by the authority in order to
regulate such business organisations and maintain a healthy and peaceful environment in the
society (Sobkowiak, 2018). The government also plays an important role during the development
of such rules and regulations. With context to the above report it can be said that there are
several types of business organisations which can be formulated in the United Kingdom and their
benefits and other disadvantages are discussed in the report. There are several channels which
help the companies to manage and fund their resources within the organisation as this helps them
to have a smooth functioning. Lastly, the report is being discussed about three case scenarios and
their effective legal advice which can be adopted by the parties in order to resolve their issues.

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