Business Law Report: UK Legal System, Business, and Dispute Resolution

This report offers a comprehensive overview of business law within the UK legal framework, commencing with an introduction to the English legal system, its sources of law, and the government's role in lawmaking. It then delves into the practical application of statutory and common law within the justice system, followed by an evaluation of the legal system's effectiveness, particularly in light of recent reforms. The report further illustrates the impact of employment, company, and contract law on businesses, differentiating between legislation, regulation, and standards and their implications. It also examines the legal formation, management, and funding of various business organizations, alongside a critical review of these organizational structures. The report concludes by providing legal solutions for various dispute scenarios and comparing different sources of legal advice. The analysis underscores the importance of compliance with legal requirements across various business operations, offering insights into navigating the complexities of the UK legal system.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................1
Activity 1.........................................................................................................................................1
P 1 Different sources of law in the UK.......................................................................................1
P 2 Role of government in making laws.....................................................................................1
Application of statutory and Common laws in the justice court.................................................2
M 1 Evaluation of the effectiveness of the legal system regarding recent reforms and
development................................................................................................................................3
P 3 Illustrating impact of employment, company and contract law in the business in the UK. .3
M 2 Identification of difference between legislation, regulation and standards and their impact
on business..................................................................................................................................4
D 1 Coherent and critical evaluation of the legal system and law .............................................4
P 4 Legal formation of different types of business organisation................................................4
P 5 Management and funding of various types of businesses.....................................................5
M 3 Detailing the pros and cons of their formation....................................................................6
D 2 Critical review of different types of business organisation..................................................7
P6 With examples identifying and recommanding different legal solutions for a range of
disputes........................................................................................................................................7
M 4 and D 3 Comparing and Evaluation of the different sources of legal advise .....................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business or commercial law is a body of law governing the direction of the business
operations and activities in legal direction. This law requires adhering with all the legal
requirement while carrying out the activities of organisation. An entity is required to follow laws
such as health and safety, employment, equality, contract, company, competition and many
more. In the present report a new started company is given an over view of the English legal
system with sources of law, role of government in making law. In the report the impact of
various laws on a business is defined and with differentiating regulation, legislation and
standards. The offer advice and guidance on employment law and dispute resolutions is given.
Moreover, various forms of business organisation, there management and funding infomania is
incorporated in the report. In the last section of the report legal solutions are given for case
example along with Alternative dispute resolution along with their critical evaluation.
Activity 1
P 1 Different sources of law in the UK
The various sources of law for UK legal system are:
Legislation: The legislation are divided in to two parts the primary and delegated
legislation. Under the primary legislation the laws are made by the act of parliament where both
the houses follow legal procedure to make laws. For the delegated legislation the public
authorities, ministers and the local bodies are given the power by the parliament to form the law.
Directives: the directives are given by the EU to its member states which creates a
unanimity in application of laws in all its members. Till date UK is part of European union and
the directive given under EU laws are applicable to this legal system.
Treaties: are agreements with the internation trade and other treaties entered in by UK
with foreign nations under trade and commerce between nations (Miller and Jentz, 2017). The
international laws are applicable to the UK and this forms a part of the Legal system of UK as
well.
Case law: is the first source of UK law where the decision of trials and ruling are made
laws with the doctrine of Judicial precedent. The decision forms part of law as the lower courts is
required to follow the ruling in the cases of same subject matter.
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P 2 Role of government in making laws
The process start with formation of draft legislation by the political parties or public
authorities who are interested in making law. This is presented to the cabinet ministers for
approval and before presenting the same to parliament. When minister approve it, the same is
represented to either one the two houses of the parliaments where it goes thorough following
procedure:
The bill is introduced by the first reading where title of the bill is read out and facts are
presented that what actually is going to be discussed in the future. In the second reading the
participles of the bill is discussed and voted upon on its further continuation. After this bill is
presented to house committee in the committee stage (The English legal system, 2018). Here a
debate is carried on and amendments are made in the bill. The bill is again referred back to the
house through the report stage where changes made in earlier stages are considered and debated
upon. From here bill goes to the third reading where small debate is done and Voting is done of
final acceptance and rejection of bill. No changes at this stage are made.
From here bill is referred to another house of parliaments where if any changes are made
it is sent back to first house to consider the changes. This process of to and forth of bill continues
till both reach to same approval. The last stage of bill to form into law is getting a approval from
the queen and with receiving an assent the bill becomes a law.
Application of statutory and Common laws in the justice court
Statutory law: are made through the act of parliament which and there complusory
requirement on all the court to follow the statue laws. No court or judge have a right or power to
question a statue law and they can not interpret laws on their discretion powers. The laws must
be interpreted thought taking assistance from internal and external aids (Davidson, Forsythe and
Knowles, 2015). This includes explanatory notes, definition section of acts, dictionaries, text
books, academic writing, Hansards. Such as in case of Pimlico case the judges interpreted the
section of employment status of the Employment Act m, 1999 to determined the status of
employee in the organisation. The laws must be applied and interpreted in with is actual essence
without compromising there meaning in the law.
Common law: are made by the parliaments rather they are formed thorough the decision
of lawsuits in trial and courts. The common laws are applied as the decision of the higher courts
is referred by the lower court judges with the cases of same subject matter. Such as the decision
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of the case of Pimlico case was referred in the case of Uber v Aslam. In applying the common
laws judges are given a power to exercises their discretion before application of the earlier
decision to a present case. If a judge or court denies referring decision it must be supported by
evidence as importance fact reacted to case was not considered in previous decision or there is
misinterpretation of the statute law.
M 1 Evaluation of the effectiveness of the legal system regarding recent reforms and
development
In laws 15 years English legal system have gone through several changes. This is related
to introduction of the labour administration from time 2000-2010. After that changes started to
take place from 2010-2015 if the form of institutional changes. For the first changes many laws
and court structure were made such as creation of ministry of justice, creation of supreme courts
and removal of house of lords. In the second phase of changes the local police authorities were
abolishes and replaced with elected police and crime commissioner. In this way the legal system
have gone to a crucial reforms and development making morn authentic and effective day by
day.
P 3 Illustrating impact of employment, company and contract law in the business in the UK
Employment law: in the UK the laws related to employment are Employment rights Act,
1994, Employment Act 2015, Equality act 2010 and many more. All these laws govern the
employee and employer relation under the employment contract. The organisation where fails to
abide by these laws any faces serious litigation.
For instant in case of Pmlico v plumber case the organisation Pimlico did not give a
status of employee to the Smith which was working as an independent contractor (Chromá,
2016). But Smith satisfied all the conditions to be an employee of the organisation. In the court
it was held that Smith was an employee of the Pimlico and is liable to the rights given to
employee.
Company law: the Companies Act 2006 in the UK is responsible to guide the operation
of a company from the day of its formation till its dissolution. All must be done as per the
provision of the act be it registration or liquidation.
In the case of Bushell v Faith[1970] AC 1099 the directors have a right to remove the directors
by the broads of directors. It was opposed by the directors and in this case it was held by the
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court that the board of director are empowered to remove a director under the section 184 of the
companies act 2006.
Contract law: In the UK the contracts under the legal terms is governed by Contract Act
1999. This defines the legality of the contract and makes the parties bound to complete the
promise made under the written agreement. If not it is termed as breach and the party under
breach can face legal charges (Akhtar and et.al., 2018). As in the case of Harvey v facey thru
entered into a contract with to a piece of land for $1000. On stipulated date facey refused to the
same when the whole payment have been made by Facey in advance. Held that Harvey was
under breach of contract and can be made to fulfil the promise to sale the land, by the courts
along with the losses suffered by Facey..
M 2 Identification of difference between legislation, regulation and standards and their impact on
business
The legislation is the statues laws made through the act of parliaments which is
mandatory of every business and court to follow without any loop and hole such as Health and
safety Works Act 1974. Whereas the regulations are the directives made by the authorities to
prescribe a certain type of conduct under a certain law such as Statutory instrument (Regulation)
2006 under health and safety law (Tushnet, 2017) These are also required to be followed
compulsorily Conversely standardised are voluntary to be followed or not and are set targets or
bar to performances or quality of performance such as Health and safety minimum stranded
2010.
D 1 Coherent and critical evaluation of the legal system and law
The above point can be more elaborated as every business is required to comply with the
Health and safety Works Act 1974 compulsorily which require a business to provide healthy and
safe workplace environment to every employee with no risk of health and life. The Statutory
instrument (Regulation) 2006 is related with official controls over the food and feed as this
requires a business to serve healthy ad safe meal and food to employees. Conversely, the Health
and safety minimum stranded 2010 defines the standard to proves happy and safe workplace
atmospheres in addition to those proscribed in act. These are not necessary to apply. This can
stated that legislation provides basic and set targets to maintain health and safety where the
regulation above is related with safe and healthy foods. Conversely, the standers is additional
requirement which business may or may not follow. For non abidance with standards and
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regulation a company can face legal charges in from of imprisonment and imposition of fines
and penalties. For non abidance with standard there is no legal complications faced by
organisation.
For example: in the case of Uber v Aslam case its was held by the court that the Aslam the
directors must be given a status of employee and the company was not following the
Employment Rights Act 1994. With tie decision of the courts all the drivers of the Uber was
eligible to get employees rights as defined in the Employee regulation 1999.
P 4 Legal formation of different types of business organisation
The different types of business organisation are:
Limited Company: is a form of incorporated business which is registered under the
company law 2006. The company with its registration get an identity of legal person which is
distinct from its members and directors. The company and its members are separate person and
they do not have any link with anyone this means the liability of the directors in limited in the
company to the extent of their investment in the company (Cotterrell, 2017). The directors and
mangers ate responsible to operated the company but for the action of business they can not be
sure rather company is sued in its name. Moreover, company also have right to sue others.
For forming a limited company the ones are required to follow certain guideline which
includes, selection of name and address for the registered office of the business. With this there
is a requirement to form articled and memorandum of association, statement of equity holders
statement and legal compliance.
Partnership: firm is formed by to or more person to carry out activities of trade and
commerce. This business is not a registered one and do not have a legal backup up under the
law. The partners and the firm are treated a same person hence the liability of the partners is
unlimited. They are to be held liable for the actions of the partnership business.
Sole trader: is a business started by a single person and is eligible for the operations and
activities of the business. The sole trading business and its owner are treated as same person and
he is liable to pay of all the dues of the business. Moreover, in the sole trading business to take a
action against the business the owner is to be sued.
P 5 Management and funding of various types of businesses
Particular Limited Company Partnership Sole trader
Management A company is The partnership The busniessi s
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managed by the
directors who are
appointed in the AGM
for the fist time and
then subsequently in
the broads meeting.
business is formed by
two or more persons
and they work as
partners in the
business (Kraakman
and Hansmann, 2017).
All the partners are
responsible to handle
the activities of the
business.
operated and sun by a
single peoron who is
the owner of the
business. Hence, the
owners is the one to
mange all the business
activities, and comply
with business
obligations.
The company
secretory and auditors
are also responsible
for managing the
company operations in
legal context (Wright,
2015). They are also
appointed in the
annual general
meeting of the
business.
As such no
requirement to appoint
CS and auditors.
Only a sinlge person
is responsible to carry
on the business
activities so no CS or
auditors are required.
Funding: Angle investor,
Crowds funding,
equity.
Partners bring in
capital as funds for
business.
Owner brings in
capital.
M 3 Detailing the pros and cons of their formation
Advantages of various types of business organisation:
Sole trader:
 Sole traders maintain full control of their business.
 Sole traders retain all the profits of their business
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 Information about sole traders is kept private.
Partnership:
 Partnerships are flexible and can be adapted to the management style and capabilities of
the partners
 It is effective when developing strategies and ideas to grow and operate the business.
Company:
 It becomes a legal person in the eyes of law and have a separate legal identity of its own.
 It gets a status of perpetual succession which means people may come and go in the
company it does not end with end death of people.
Disadvantages of various types of business organisation:
Sole trader:
 Sole traders are not seen as a separate entity by the law. Therefore, they are subject to
unlimited liability.
 Sole traders often find it difficult to raise finance to fund their business.
Partnership:
 It is not a separate, legal identity from its members, so the individual partners are taxed
individually.
 All the partners in the business are responsible both legally and financially for the
entirety of the business.
Company:
 The profits of the business are taxed under corporation tax.
 The gains belong to the shareholder not to the owner.
D 2 Critical review of different types of business organisation
To start the critical review it can be stated that t both partnership and sole traders are not
registered business rather a company is one (Lewis, 2018). It has an identity of a legal person in
the forms of separate legal entity whereas in sole trader and partnership both business and
owners are treated as same unit. In both its business the owners and partners can be sued and
have to pay from their personal property the financial obligations of the business. There is not
such provision of this type for a registered company.
P6 With examples identifying and recommanding different legal solutions for a range of disputes
Example case
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For an organisation ABS 20 of the couriers are employed who are self employed to
deliver packages of the business to customers. The ABD had an employment contract with 20 of
them and decided terms and condition of their operation. This includes couriers had to wear
uniform and ID card of business, drive their branded van with a GPS tracker. Moreover, they
were not allowed to take leave without prior approval of 24 hours and they can not allow
someone else to do the services. What is the employment status of the couriers.
Legal solution:
For deciding the employment status the conditions of self employed must be satisfies.
This includes that independent counteract do not work under the supervision of the employer and
have their own terms ad condition of working (Lee and Harris, 2018). There is not employment
contract and they bring in their own tolls and equipment to carry out the work. In absence of this
a self concentrate is referred as employee.
In the given case it can be stated that with the help of decided case of Uber v/s Aslam that
the 20 couriers are employees of ABC as they do not fulfil any condition of being self employed.
All of are entitles t get all the benefits and rights as are empowered to other employee of ABC.
Example Case:
The organisation PQR, was placed with an order of air purifies of 800wt of green colour by
Advin. He made the payment in full online was delivered with the product within 2 days of
payment. He received the product of 1200 wt and of green colour. He did not take an action after
that after 2 months of the purchases the air purifies blasted and Advin served serious injuries
due to this. Advin wants to sue the company. The company resisting the same to avoid litigation.
What is the alternate solution ot this.
Alternative dispute resolution:
The ADR methods are the one under which disputes are resoled outside the court without
undertaking any litigations (Alternative Dispute Resolution, 2018). There are mainly three
methods of ADR: mediation, arbitration and negotiation.
For solving the present case arbitration method can be referred by company to solve the
dispute. This is a method where both Advin and PQR ltd and will present their side of facts,
events and evidences and after this arbitrator will give an award with the hepl od deceided case
law of carlill v\s carbolic Smoke balls, 1893. This faster and cheaper process to solve the dispute
without going to court.
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M 4 and D 3 Comparing and Evaluation of the different sources of legal advise
For both the solution given in the above case it can be stated that both provide solution to
the case under legal terms and binding to the parties to dispute. Both of them have legal
evidences of solving the problems. They can be contrasted as the legal solution through the
litigation process where party refer court to solve the problems by spending much time and
money. On the other hand under the arbitration methods no court is being referred and its is
much fast and cheaper than the litigation process.
CONCLUSION
To conclude the report it has been articulated that various sources of laws are legislations,
case laws, directives and treaties. The statues are made through the act of parliaments and both
common and statutory laws applies in justice court with different legal perspective. There have
been reforms and development in the English legal ststem which have made significant
development in legal structure. The employment, contract and company law have been
identified as integer la part of business and have serious consequences of non following the
same. Moreover, different types of business organisation are sole trader, partnership and
company and all of them distinct legal structure, management and sources of funding. For the
last part of the report it has been in interpreted that for a given case gazelle solution is given by
following statutory and common law by courts and ADR solution is given through same
procedure by arbitrator out of the court.
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REFERENCES
Books and Online
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Top management tangible competencies, relationship‐based business networks and
environmental sustainability. British Journal of Management. 29(1). pp.43-62.
Chromá, M., 2016. Traps of English as a Target Language in Legal Translation. Comparative
Legilinguistics. 26. pp.71-97.
Cotterrell, R., 2017. Law, culture and society: Legal ideas in the mirror of social theory.
Routledge.
Davidson, D. V., Forsythe, L. M. and Knowles, B .E., 2015. Business law: Principles and cases
in the legal environment. Wolters Kluwer Law & Business.
Kraakman, R. and Hansmann, H., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
Lee, E. and Harris, R. L. W., 2018. The effects of online glossary quizzes and student autonomy
on domain vocabulary learning in business law. Journal of Computing in Higher
Education. 30(2). pp.326-343.
Lewis, T., 2018. Transforming Religious Liberties: A New Theory of Religious Rights for
National and International Legal Systems.
Miller, R. L. and Jentz, G. A., 2017. Business law today: The essentials. Cengage learning.
Tushnet, M., 2017. Comparative constitutional law. In The Oxford handbook of comparative
law.
Wright, P., 2015. Challenges to the Harmonisation of Business Law: Domestic and Cross-Border
Insolvency Law.
Online
The English legal system. 2018. [Online]. Available through
:<https://www.iclr.co.uk/knowledge/topics/the-english-legal-system/>.
Alternative Dispute Resolution. 2018. [Online]. Available through
:<https://www.iprhelpdesk.eu/Fact-Sheet-Alternative-Dispute-Resolution>.
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