Business Law Report: Employment, Company Law, and ADR in UK

This report provides a comprehensive overview of UK business law, addressing various key aspects relevant to business operations. It begins by outlining the divisions and sources of UK law, including civil and criminal law, primary and secondary legislation, customs, case laws, and the influence of the European Union. The report then identifies problems within the English legal system, such as the unwritten constitution and the adversarial nature of trials. It also describes the process of establishing an Act of Parliament and its applicability to businesses. Furthermore, the report analyzes the employment status of drivers in the context of the Pegasus case, distinguishing between employees and self-employed individuals. It provides guidance on registering a company, including the necessary procedures and the roles and responsibilities of company directors. Finally, the report discusses alternative dispute resolution (ADR) methods as a means to resolve business disputes outside of court. The report concludes with a summary of key findings and recommendations.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Division of UK Law:..............................................................................................................1
Sources of UK law:................................................................................................................1
Problems associated with English legal system:....................................................................2
How an act of parliament is established and applicability of law in act in a firm:................2
TASK 2............................................................................................................................................3
Determination of Diver's employment status in Pegasus.......................................................3
TASK 3............................................................................................................................................4
Legal status of a registered company.....................................................................................4
Procedure to register a company...........................................................................................4
Roles of directors....................................................................................................................5
Decision on constitution of the company...............................................................................5
TASK 4............................................................................................................................................5
Alternative dispute resolution (ADR)....................................................................................5
Arbitration..............................................................................................................................6
Legal advise............................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In a business it is necessary for to comply with the legal legislation which are essentials
for carrying on the business operation in a firm. Laws and provisions are applicable from the
stage of formation of a firm and go on till the dissolution of the organisation. In the present
report Pegasus is presented with a report on what is the legal framework of the UK and what are
division of law, sources from which UK gets it law and the problems associated with the English
legal system. Along with his the employment status of the drivers in Pegasus who hires Vans
form firm is determined. Alex and Jay are advised on how to form as company and firm is
provided with alternate to solution resolve their business dispute.
TASK 1
Division of UK Law:
The division of the UK law means the branches of the law in under which different
disputes are being tried and remedies are determined, IN UK the law is divided into:
Civil law:
This branch deals with the action of civil wrong done by ab individual or organisation to
another person of firm. In this a party facing damages do not face any physical injury or harm.
The laws are made to determine the nature of the wrongful act done and to provide remedies to
the innocent party (Adams, 2016). The civil wrong action can be negligence, tort, family
disputes, cases of personal injury, breach of the contract, employment law etc.
Criminal law
Under this, crimes and offenses which are more serious in nature and provision related
with such crimes are made. The harms and damages occurred in-this type of crimes is to the
whole society or a lager group of people. This includes offense related with thefts, stealing,
murder, rape, sexual assault, battery etc.
Sources of UK law:
Primary legislation: this is also termed as act of parliament which is one of the major
source of a formation of law in UK. The laws are made by following a proper procedure defined
in constitution to establish a law.
Secondary legislation: in the power and authorities are given by the parliament to public body
and authorities to make laws related with certain specif matter for a local area or the community.
The extent of these law can be limited to that specific area or community.
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Customs: sometimes the belifes, habits of the people are so prominent that they become a part of
regular practice and laws are framed on basis of these, to give those habits and practice a legal
aspect.
Case laws/ judicial precedent: the judgment passed by a court gets a binding effect with
doctrine of judicial precedent. All the lower court are bound to refer that judgment in futre cases
on similar matter.
European union: Being a part of EU, UK gets it certain law form EU law as well. The
legislation and regulations made for all the member countries of EU, are applicable to UK as
well. In case of contradiction of any provision between UK and EU law, preference is given to
law of EU. This does not mean that EU law overrides the effect of UK law.
Problems associated with English legal system:
The problem associated with the UK law can be defined as:
 The UK constitution is not present in written format. This questions the foundation and
origin of the law and constitution of the nation (Adams, 2016). To form a principle that
can be derived form the constitution, UK need to pass laws are derived from parliaments
and courts.
 The legal of UK is adversarial as it is unwritten. This means how trials are persuaded in
the court, the judges and jury in the trial are entirely neutral and rely on the evidences
and witnesses.
 The UK legal system follows the common law system in which preference is not given
to write down the things. Most of the laws are not defined by the statues rather by the
case laws.
How an act of parliament is established and applicability of law in act in a firm:
Prior to presentation off a bill in the parliament, a draft of the legislation is presented to
ministers of cabinet. With approval from cabinet, the bill is forwarded to the parliament.
Procedure in the parliament:
First reading: here the topic of the bill is read out and all the peers of house of common
are provided with copy of bill.
Second reading: as this stage all the peers and member debate on the principle of the bill
and vote in the same, regarding assenting or decanting form the bill.
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Committee stage: with getting approval, amendments if any, are suggested here and
again discussed upon.
Report stage: When amendments are suggested, this stage is required to vote on the such
changes and inclusion of the sames in bill.
Third reading: this is the stage where the amended is bill is read out and bill is finally
considered by house of common.
Assent from house of Lords: here, consent from house of Lord is taken and same
procedure is followed as it was for hoses of commons.
Royal assent: with getting approval from both the houses, the Queen give her assent on
the bill. With this the bill becomes a law applicable in whole nation.
Laws affecting a business: It is important to know that the government changes the rules
and regulations concerning businesses from time to time (Adams, 2016). Therefore, to be on the
good side of the law it is essential to ensure that organisation is up to date with government laws.
Any change in laws directly effect the way in which a business operates. Business laws affect
employer -employee relationships and vice-versa. When it comes to international trade, business
laws are imposed in context with international trade tariffs.
TASK 2
Determination of Diver's employment status in Pegasus
Pimlico case:
This case was related with determination of the employment status of the plumber
working for the Pimico Ltd under contractual terms. The plumber went of leave and then
demanded sick and leave pay from the organization, they also filed a law suit against the
organization of unfair removal from employment. In this case it was held that, contractual based
worked are not employee of the business and they are not eligible for any rights adhered to full
time employee.
Employee and rights: a person is said to be under regular employment when he/she
works for minimum working hours per day in an organisation. They are paid for the time of their
work and activities and operation are supervised by leader or manager. For carrying out the
business activates tools, equipment and material are provided at the occupational place only by
the business. There is an employment contract between employer and employee stating the fact
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that the person is working in the organization in the capacity of employee is liable for all the
rights available to an employee of the particular business.
Self employed or on contract basis: An individual do not have an employment contract
and work for an organization one contractual basis. They only decide their own working hours,
terms and condition for working with the firm (Adams, 2016). They can also hire other to do
their work, company do not have a control over their operations and activities. The tools,
equipment and resources are brought by them to carry out the contractual activity. They are not
liable for any rights and power which are allotted to an employee in regular employment.
Employment status of the drives: with application of above rules and provision in the
present cased drivers in Pegasus, it is interpreted that they are the drivers are not employee of
Pegasus. Hence, they are not liable for any employment right in the firm.
TASK 3
Legal status of a registered company
With getting a registration as a company as per provisions of the Company's Act, 2006
the business get a separate legal status of this own which is not related with anyone (Adams,
2016). The company have its own identity and legal standing away from its owner and members.
The company gets it own asset, property, liabilities and obligations. It is treated a separate person
in the eyes of law and it gets a right to sue and be sued by other person. It gains an identity of a
unique entity which is isolated from its shareholders.
Procedure to register a company
Section: 8- Memorandum of company: All the members of the company must
subscribe to the memorandum. This contains name, and address of the organization registered
office.
Section: 9-Article of association: this contains general rules and provision of the
company.
Statement of shareholders: this statement contains the issues and subscribed share
capital of the firm along with the shareholdings.
Section: 13- Statement of compliance: this statement is about the fact that all legal
provisions and regulation have been complied with for registration of the company.
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Name of the company: the name of the company must not be identical or similar to a
company already register. It must not resemble any national or religious logo, must not hurt
sentiments of any community or people or individual.
Roles of directors
The duties and responsibility of directors of a company are defined in company's Act,
2006, under section 170 to 177. These are:
To act within power: It is the duty of the directors to work within the powers assigned to
them and do not act beyond the powers and rights allotted to them as per article of association.
To promote success of the business: the directors must work to promote he business
growth and profitability of the organisation. They must act in good faith for ensuring success of
the firm.
To exercise independent judgments: to make the own decision without getting
influenced by any other person. The directors must take decision on his/her own discretion.
To exercise reasonable care, skill and diligence: application of general knowledge,
skills and experience that is reasonably expected from a person under capacity of director
(Adams, 2016).
To Avoid conflict of interest: the organizational interest must be given preference over
personal interests.
Not accept benefits from third parties:the directors must not take any personal or
organizational benefits from any third party because of holding the position of director.
Declare interests in proposed transaction: any personal involvement or interest in any
transaction related with business must be declared prior entering the contract or agreement.
Decision on constitution of the company
Alex and Jay are advised to register their business as a company under provision
company's Act, 2006. This will give their business a separate identity away from its owner and
member. The organisation will have its assets and property and gain legal rights to sue and be
sued.
TASK 4
Alternative dispute resolution (ADR)
ADR is an alternative liability to all the citizens and business to resolve their personal
and business disputes without going to court. The ADR provides with certain methods to solve
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problems and issues outside the court (Alternative dispute resolution (ADR), 2018). This is also
referred as out of court settlements. ADR is preferred because it is less time consuming, less
expensive and informal in nature. The parties can involve in the solving the dispute unlike in the
court proceeding they need to follow the instructions given by judges. This is a process through
which disputes are settled down without ant litigation. Generally the dispute refereed in ADR are
related with labour disputes, divorce actions and personal injury claims.
Types pd ADR:
Arbitration: This is process similar to an informal court proceedings where an impartial
third party carried out the trail process. The decision given in arbitration is biding on both the
parties.
Mediation: in this a third party is appointed by both parties to dispute and is called as
mediators. Th mediator tries to bring both the patties at point of discussion but do not pass any
judgments, the parties themselves reach to a decision regarding the dispute resolution.
Negotiation: in this no third party is referred instead both the parties to dispute try to
reach an amicable decision to solve the dispute between them.
Arbitration
In the present business world, most of the business organisation are referring to
arbitration to resolve the dispute. This is most popular and used method Under ADR to solve the
disputes and issues out of the court without any litigation. The arbitration method is carried out
with inclusion of an arbitration clause in the agreement to refer any present or future dispute to
arbitration. This binds parties to agreement not to go to refer court in case any dispute arises.
In this process a third impartial party is appointed as arbitrator to decide upon the dispute
and give a decision. The arbitrators take into consideration all the evidences and facts presented
by both the parties. The views of parties are also considered and arbitrators also makes individual
inspection to investigate the fats of the dispute, after taking all facts and figures a decision is
passed by the arbitrators and it is binding on both the parties. This means that parties can not
deny abiding by the decision and need to comply by it. In arbitration the parties can not appeal
against the decision of arbitrators in the court. With agreeing to arbitration parties lose their right
to appeal in the court.
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Legal advise
The owners of Pegasus, Alex and Jay are being advised to opt for arbitration method of
ADR to resolve their business dispute. For this they must include n arbitration clause in each and
every contractual agreement entered by them in capacity of their business operation. The
recommendation is made to Pegasus on the fact that this is less expensive and less time
consuming process to solve the issues. The cost for getting each hour legal advise is £350 which
sometime can be cumulatively more than the amount involved in the dispute. Other than this the
cost is too high to get legal advise on per hour basis. Hence, they are advised to go for arbitration
rather than going to court to solve commercial and business disputes.
CONCLUSION
With completing the above report it can be interpreted that the UK law have two division
civil and criminal and both deal with different types of offenses, the sources of UK law are
customers, case laws, EU and primary legislation. The UK Law is not present in a written format
and same is determined as issue related with legal system of UK. The drivers who hired vans
form Pegasus has been concluded not as employee of firm. Jay and Alex are advises to register
their business in form of a company. On registration firm can get a status of separate legal entity
away from is owners and members. In the lase section of the report the has been given advice to
go for alternative dispute resolution in from of arbitration rather than going to court for
resolving the business disputes.
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REFERENCES
Books and Journals
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 71.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 75.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 107.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 418.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 507.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 532.
Online
Alternative dispute resolution (ADR). 2018. [Online]. Available through
:<http://www.nortonrosefulbright.com/uk/our-services/dispute-resolution-and-litigation/
alternative-dispute-resolution-adr/>.
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