Business Law Report: UK Legal System, Reforms, and Business

This report provides a detailed analysis of the UK legal system and its impact on businesses. It begins by explaining the nature of the UK legal system, its sources of law (Acts of Parliament, Common Law, EU Law, and European Convention Human Rights), and evaluates the effectiveness of recent r...Read More

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
SCENARIO 1 ..................................................................................................................................1
Explain the nature of UK legal system by looking at different sources of law in UK. .........1
Effectiveness of the legal system in terms of recent reforms and development must be
evaluated.................................................................................................................................2
Explain how statutory and common law applied in the UK courts........................................2
Illustrate the potential impact of the law on client's business................................................2
UK legal system has been going through reforms, as a legal practitioner you must evaluate the
effectiveness of these reforms and developments..................................................................3
Differences between how legislation, regulations and standards could impact their businesses4
SCENARIO 2...................................................................................................................................5
Examine the formation of different types of business organisations.....................................5
Illustrate with an explanation on different business organizations are managed and funded.6
Advantages and disadvantages of the formation of different types business organizations.. 6
Recommendations for resolving disputes using alternative dispute resolution methods.......7
Compare and contrast different sources of legal advice.........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law is explained as the law which governs the commercial department of any of
the nation. It has its own importance because it tells that how company is required to work for
the purpose of achieving there organisational goal. In context of the file, all the legal advice will
be based on Legal Practitioner in a Central London based law firm known as Hardy and
Morrisons Solicitors. In this project, the discussion will be on legal system and what are its major
impact upon any of the business organisation. In file, even points will related to commencement
of a organisation and at last recommendations will be given to solve the dispute.
SCENARIO 1
Explain the nature of UK legal system by looking at different sources of law in UK.
The legal system of UK is of the most systematic and well developed system which tells
about every single information through which working condition becomes easier. Every business
organisation are required to plan there policies as per the system of law as it tells them that how
work is required be done and what are the essential things which need be covered while taking
any of the decision. Altogether, there are four different sources of UK law which is categorised
below in detail:
 Act of Parliament: It is important source in context of UK where various authorised
person is required to take part for commencing law. The laws which commenced by the
committee of parliament is based on the requirement of general public.
 Common law: The method of commencing through common law is totally different as
power of commencing law is given is to the panel of Judges in that situation where any of
the other sources are silent (PARTINGTON, 2013).
 European Union law: Almost half of the laws which had been commencement in UK
are prepared by EU law. It shows its participation in every sector such as criminal,
organisation, infrastructure and many more.
 European Convention Human Rights: It is also one of the essential source for UK as it
is the main source which need to deal with the rights and responsibility of every
individual. It has been helpful in delivering the best within the premises of UK.
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Effectiveness of the legal system in terms of recent reforms and development must be evaluated.
It is said that legal system of UK is stable and it is able to deliver each and every single
thing which is required within the premisses of business organisation. It is being able to deliver
every single things which is required by an organisation. For example: plans and policies do not
change much and more due to which any of the business organisation is able to sustain for longer
period of time. Various new laws are being formed for the purpose of providing advantage to any
of the new venture. In short, it can be said that it has been helping any of the business
organisation to perform better within market just because of law and regulation.
Explain how statutory and common law applied in the UK courts.
In context of UK court, Statutory law and common law plays crucial role as it helps to
take every single in best suitable manner. While talking about statutory law, rules and regulations
are written in it and because of that judges are required to understand the situation and need
decide that which law can be applied and according to that decision is required to be given
(HONEYBALL, 2012). In case of common law, judges do get some sort of freedom as they are
required to declare any of the decision of own because exact remedies are not mention in it. By
considering this judges take the help of any of the past cases which are similar in nature and
declares its own decision.
Case law: Thomas v. Cook
Judgement: It was one of the famous case where judges took the help of common law because
exact remedies were not written in it.
Case Law: Smith v Anderson
Judgement: This is one of the case were judges found that remedies are written in statutory law
and because of that they took the help of statutory law to declare there decision.
Illustrate the potential impact of the law on client's business.
Business organisation is required to understand about the business law in detail because
they will help to take most of the business decision. Different laws and regulation have different
impacts because all are related to different field. Some of the law which is required to be
considered by business organisation are explained below with there major impact on any of the
association.
 Employment law: It is the law which informs that what kind of relation should be their
between employee's and employer. This law tells that when employer need to hire new
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employee's and what should be there wages rate. This law is helpful in context of
employee's because it doesn't allow anyone to discriminate any of the employee's within
the premisses of organisation (British Economy Survey). There are number of impacts of
employment law for any of the company as it doesn't allow any of the company to do
discrimination among the employee's who are working on the similar post. Employment
law also increases the overall cost of an organisation as it tells about the additional
facilities which is required to be given to employee's.
 Company law: It is one of the law which is related with the rules and regulation which
are required to be followed by every single business organisation. In UK, every single
company need to follow the guidelines of Companies Act 2006 which says that what is
right for the company and what is wrong for them. There are various effect of company
law and the major one is that it forces an organisation to increase the overall expenses
because of the meeting and other procedure which they are required to be conducted.
 Contract law: This is the law which is related with the terms and agreement so that any
of the task or relation can be maintained for the longer period of time. The basic things
which is required to be considered in contract law is offer and acceptance (DIGNAM and
LOWRY, 2012). It basically tells that how work is required to be done and when it
required to be wind up. Some of the impacts of contract law are listed below:
◦ It forces the involved party to complete the term and condition of contract on specific
time period.
◦ If any of the party fails to perform there part of work then legal action can be taken
where defaulter are being penalised.
◦ Chances of obtaining desire results are high because of contract law.
UK legal system has been going through reforms, as a legal practitioner you must evaluate the
effectiveness of these reforms and developments
The law keeps changes on every short period of time and because of that it is never every
for any of the business organisation to sustain in the market position. But, in UK law do not
changes a lot and because of that it is found that people are not required to suffer. The policies
for business organisation do not changes and that helps to make any of the plan for longer period
of time. Although, it can be said that because of Brexit, the current market situation is not so
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good for incorporating any of the new business but still it is said that existing organisation have
not been affected more.
In addition, it has been beneficial for any of the existing business organisation but in
present situation it has been not effective for any of the new organisation because tax rates and
various benefits which were being in past year are not being provided to most of the small
medium organisation and it is just because of the effect of Brexit.
Differences between how legislation, regulations and standards could impact their businesses
Any of the business organisation is required to understand that how law can impact on
there business organisation and what are those essential law and regulation which are require to
be followed. Legislation, regulation and standards are interrelated with each other but still there
are some of the differences which need to be considered as they do have the impact on business
organisation.
Legislation: It is body of government whose major duty is required to commence the law
as per the required condition of nation. It plays the vital role ion context of business organisation
because it tells that any of the company need to understand the law which are needed to be
applied on business organisation (FRENCH, MAYSON and RYAN, 2012). Here, organisation
need to hire an legal advisor who can tell about the required law and regulation that need to be
applied on business organisation. This does have the negative impact on company they are also
required to focus on laws which will increase overall cost of the company.
Standards: It is helpful for any of the business organisation because it tells that how
work is required to be done because guidelines are mentioned in it. It will have positive impact
on the company because it will not allow business organisation to deliver any of the low standard
quality of product within the market due to which reputation of company will be maintained.
Regulation: It is the detail information that how any of the law are enforced and why it
need to be followed. It says that every organisation need to work as per the regulation so that no
one faces kind of issues. It mainly says that how any of the things is required to be done. There is
the positive impact of regulation because it provides the complete guidelines to organisation
which they are required to follow.
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SCENARIO 2
Examine the formation of different types of business organisations
There are various types of business organisation but every types of business should be
setup legally so that business activities can be performed smoothly. It depends upon the members
of organisation that which types of business they want to setup for earning profit. The different
types of business organisation and its legal process of formation is explained below:
 Incorporated organisation: It is one of the type of business organisation which are
mainly commenced for the longer period of time so that profit can be earned. There is
lengthy process in it which need to be followed if any of the person wants to commence
business. The detail process which is required to be followed for commencing
incorporate organisation is mentioned below:
◦ It is necessary that name of the organisation must be selected which must not match
with other corporation.
◦ Secondly, name of first director and shareholder should be decided who will take the
responsibilities that how business activities will be managed (ANDREWS, 2011).
◦ SIC (Standards Industrial Classification) number need to be obtained.
◦ Memorandum of Association and Article of Association need to be obtained.
This are some of the essential requirement which need to be be fulfilled while
commencing any of the incorporated organisation. It is also the primary stage for any
organisation in the world of corporate sector.
 Unincorporated organisation: This are the business organisation are commenced for the
purpose of earning profit in short period of time as there are very few formalities which
need to be followed in unincorporated organisation. The legal rights to this form of
organisation are mainly not given there is no legal existence in the eyes of law.
Government is the one who wants to promote this form of business organisation because
business is one of the major source of growth of any nation. When it comes to the
formation of unincorporated organisation, there is no fix pattern and because of that it is
easy for any of the individual to commence this form of organisation.
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Illustrate with an explanation on different business organizations are managed and funded.
Whenever business are commenced it is necessary to find that how they can be managed
in an appropriate manner. While commencing any type of business it is important to understand
and find the right team who can manage the workload of an organisation. Below, it has been
mentioned that who will run the business organisation and how they will manage fund for their
day to day activity.
 Incorporate organisation: This is one of the business organisation where team is
required that can take the responsibilities to run the organisation. The main who are
required in it are Shareholders, Chief Executive Officer (CEO), manager, directors,
Company Secretary. Here, fund is required in huge amount so that work can be done in
required in manner. Some of the ways through which this types of organisation manage
fund are listed below:
◦ they can raise fund by issuing fresh share within the market.
◦ Bonds and debenture can also be issued.
◦ Loan is one of the option and it can be taken from different financial institution.
◦ Peer to peer lending can be done.
◦ Credit card is also one of the option for this type of organisation. (ADAMS, 2016)
 Unincorporated organisation: This types of organisation are mainly managed by owner
themselves and they need to understand about situation of market before taking any of the
business decision. This types of organisation doesn't work at greater platform due to
which they do not requires any big team who controls the activity of organisation. When
it required additional amount of fund, they need to use credit card, loan from bank is also
one of the possible way.
Advantages and disadvantages of the formation of different types business organizations.
Some of the advantages and disadvantages of incorporated organisation are:
Advantages:
 It do have the capacity to sue and be sued.
 Liability is limited up to the amount of investment.
 Company need to understand that
 Can easily expand its business to greater platform as number of funding sources are
available with them.
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 Perpetual succession is available in it.
Disadvantages
 Various law and rules are required to be followed.
 For any of the mistake, different types of penalties can be imposed.
Some of the Pros and Cons of unincorporated organisation are listed below
Pros:
 Doesn't need to register its organisation within the Companies House.
 Various benefits are given under Income Tax annual return (Harvard Business Review
The Economist ).
Cons:
 Doesn't have the authority to sue and be sue on its own name.
 Liability is always unlimited in it.
Recommendations for resolving disputes using alternative dispute resolution methods.
Case Scenario: D, L and F were the business partner and they had a deal/ contract that if
any of the partner doesn't want to continue with firm then they are required to inform other
partner with prior notice with justifiable reason. After working for 2 years, F doesn't want to
operate its business activity with D and L. Even he is not willing to give any prior notice to other
partner. By look at all this matter D and L wants to file the case against F for breach of contract.
Alternative Dispute Resolution (ADR)
It is the legal process where civil nature of cases are entertained for the purpose of
solving problem. Number of ways are there in ADR process which can help to resolve the
dispute and they have been explained below:
Conciliation: It is the process of adjusting any of the dispute in friendly way with the
help of judicial means. Conciliator tries to bring both party together by trying to go better
suggestions.
Mediation: It is also one of the process of ADR, where mediator tries to negotiation on
particular agreement through which disputes can be resolved easily. Ultimate choice to agree on
suggestion is of disputed party (What is mediation? 2018).
Arbitration: It is lengthy process compared to other method. Whenever disputes are
being solved with this process, it is necessary that it must be followed.
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In the above case, it is important for all D, L and F to solve there dispute with the help of
arbitration method because there is related with breach of contract and it is important to settle
down the matter in systematic manner.
Compare and contrast different sources of legal advice.
When it comes to comparison, it can be said that all of the methods are suitable but still
it is more important that how decision are being taken in it. Among all of the methods, it can be
said that Arbitration is more suitable because decision need to be followed but in other cases it is
not necessary that orders must be followed and that is one of the drawback of ADR process.
Here, still some of the change are required in it so that more number of people can take the help
of this method so that positive result can be obtained in high numbers.
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CONCLUSION
In this report, it is clearly written that business law is very effective for any of the
business firm because any of the decision can be taken in quick succession. The legal law of UK
says that business must consider the term and condition of law else there are number of penalties
that can be imposed on company. Incorporated organisation do get number of benefits compared
to unincorporated organisation. ADR can be one of the alternate way to solve out the problem
without taking the help of court procedure.
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REFERENCES
Books & Journals
ADAMS, A. (2016) Business Law for Students. 9th ed. London: Pearson
ANDREWS, N. (2011) Contract Law. Cambridge: Cambridge University Press.
British Economy Survey — basic subscription and also single-user electronic and network
electronic subscription (YPS Ltd, York)
DIGNAM, A. and LOWRY, J. (2012) Company Law. Oxford: Oxford University Press.
FRENCH, D., MAYSON, S. and RYAN, C. (2012) Company Law. Oxford: Oxford University
Press.
Harvard Business Review The Economist
HONEYBALL, S. (2012) Employment Law. Oxford: Oxford University Press.
PARTINGTON, M. (2013) Introduction to the English Legal System. Oxford: Oxford University
Press.
Online
What is mediation? 2018. [Online] Available Through: <http://www.dispute-resolution-
hamburg.com/mediation/what-is-mediation/>
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