Business Law Report: UK Law, Business Organizations and Legal Advice

This report provides a comprehensive overview of UK business law, commencing with an introduction to the subject and its significance in regulating commercial activities. The main body of the report delves into the meaning of sovereignty and explores various sources of UK law, including common law, legislation, statutory law, and EU laws. It examines the role of the government in law-making and discusses the application of statutory and common law in justice courts. Furthermore, the report analyzes the impact of company, employment, and contract law on businesses, including the Company Act, Employment Act, and contract law principles. It also differentiates between legislation, regulations, and standards. The report then explores different types of business organizations, such as sole proprietorships, and their management and funding mechanisms. Finally, the report offers legal advice based on a case study, drawing conclusions and providing references to support its findings.

Business Law

Table of Contents
INTRODUCTION ...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
TASK 1.................................................................................................................................................3
A) Meaning of Sovereignty and various sources of law..................................................................3
B) Role of government in making law.............................................................................................4
C). Company, Employment and contract law impact on business...................................................5
Difference between legislation, regulations and standards..............................................................6
TASK 2.................................................................................................................................................6
Different types of business organisation and manner they are managed and funded......................6
TASK 3.................................................................................................................................................8
Legal advice.....................................................................................................................................8
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11

INTRODUCTION
Business law also known as Commercial law is a term which basically means all the rules and
regulation which are designed or framed in respect of commercial and trade business activities as
undertaken by any business firms. It has to be complied by every business organisation for carrying
on commercial, business and trade operations. It is related with function of regulating all the
contracts, agreements and bonds which are made by corporate firms. Also, compliance has to be
made at the time of manufacturing and selling of any consumer goods with the purpose of making
profit and growth. It is related with rules, provisions and norms with its main aim to regulate trade,
commercial activities as undertaken by business firms for making profit and achieving customer
satisfaction. It governs business function, working, operations & defines manner in which business
can be formed, financed and managed. This report is based on applicability of UK Law. It will
explain different sources of law along with role of government in making law. It will define
statutory and common law uses in the justice courts. Furthermore, emphasizes will be made on
impact on business as created by company, employment and contract law. Also, report will
elaborate about different business organizations types along with its legally formation, management
and funding mechanisms. At last, it will provide legal advice related to case study.
MAIN BODY
TASK 1
A) Meaning of Sovereignty and various sources of law.
Sovereignty
The term sovereignty refers to the full of power & rights for governing the body for itself,
without any type of interference from all the external and outside resources & bodies as well. It is
generally a substantive term that designating all the supreme authority that over the political
(Balganesh, 2019).
Sovereignty of parliament
Parliaments of Sovereignty is basically a type of principle in the constitution is UK. It
generally makes the parliament with all the supreme & legal authority in UK. It can create their own
end of any law. Basically, court be never overruled for its legislation & also no parliament can pass
any of law which can not be changed in the future. It is basically so much long doctrine where it has
been long regarded for the most fundamental elements of all the British constitution. It generally
holds the Parliament which has lots of authority of legislative & also that the court have nothing
authority for judging the statutes false. This doctrine is now has been criticized the philosophical &

historical grounds & also it claims the critics which is relatively recent creation of the academic
lawyers.
Various sources of UK Law
Common Law:- Common law is generally refers to the body of the law which has been derived
from all the decision of judicial of the similar tribunals and courts as well. Common has been arises
as the precedent in that case when all the parties are disagreed on the law then the common law in
the court looks for all the past Precedential decisions of the relevant courts & synthesizes all the
principles of all the past applicable about the present & current facts. The term common law has so
many connotations. The three set out of the least common utilization inside the legal community
(Bisschops and Beunen, 2019).
Legislation:- This legislation has been passed by the parliament of UK. Legislation generally called
as the bills that has been discussed in both the amendments & house which approved & added by
the house before the Bill has been received. Legislation generally a proposed by rememberer of all
the legislature. It is an official type of web-accessible database of all the statute law of UK. There
are so many purposes of legislation where to authorize, to regulate, to provide funds, to outlaw and
also to restrict of to declare.
Statutory Law:- it is generally an act of the parliament that has been created by the new law & also
changes in the existing law. It an type of bill which has been approved by both the Lords of house
& also common house that has been given for the Royal assessment of Monarch. This law generally
used as to write the law. It is basically enacted by all the legislative body. In this case court has
been required interpret the laws with all the current aids like Hansards, dictionaries, long titles &
others as well. There is no court which has the right to raise the problems and disputes over the
provision of the law as they are absolute nature. There is no entrain discretionary of power which
has been judged over the applications and interpretation as well (Cohen and Sabel, 2017).
EU Laws:-
European union law is generally a system where the law is operating within all the members of the
states in the European unions. It is a political, social & economic institutions of all the policies. It is
a type of regulation which has been passed for influencing the broad range areas in UK. It also
influences the European union that involves the financial services, agriculture & environment as
well. EU law is directives that has been implemented by the UK legislation in UK law. It is no
merely the economic union but also intend to the ensuring all the social progress & seek to the
changeless improvements of working & living the conditions of the individuals and peoples as well.
B) Role of government in making law
Parliament is one of the highest legislative in the authority in UK. It is one of the
responsibility to check the working system of the government and also examining, approving and

debating the new laws. It is basically knows as the legislature. Law is made through all the
parliament process where it has been started from being the draft of the legislation. Government of
the parliament has been performed all the functions and role of the legislations. All the authorities
& parties selected a manner over that a law has been needed to frame with all the draft legislation
with the actual help of the government authorities. This bill has been presented to either one in the
house of the common. This bill has been introduced through the first read where also the title of the
bill (Douglas and et.al., 2019).
Statutory & common law are applied in the justice court.
Common law ensuring that the law is remaining common end-to-end the land. However, it is in the
house of the lords & also the of the appeal which has been created all the legal precedent in the
relation where the criminal matters in the Wales & England. The decision has been made according
to the high courts which check the lowers courts. Statutory and common law has been applied in the
court justice which has been follows;
Statutory law:- statutory laws are earlier written and also need to be applied for the particular case.
This law of the UK has been made according to the parliament process and also have and
unanimous applicability towards the whole nation. The court has been required for interpreting the
laws which has been existed for such long aids, dictionaries and Hansards as well. There are no
court in UK which has right to raising the conflicts & disputes over this provision which is absolute
in nature. It does not entertain all the discretionary power that judge over the applications &
interpretation (Prozorov, 2016).
Common law:- This law has been developed on the routine basis without any of the causing any of
the fractionalisation of community and society for any of expense of the state. The decision which
has been taken from the high court has been refereed by all the lower court dicing for the case for
the similar matter of subject. In this law the judge can be rule out for not refer the all previous
ruling when the view that earlier ruling for the lack of interpretation of law for the consideration of
the evidence which has been related to the case (Zottoli and et.al., 2019).
C). Company, Employment and contract law impact on business
Company Act - Is related with guidelines, provisions and norms which every company has
to adhere or company as applicable to it. Non compliance can result in high penalty and suspension
from the governing body which will impact the image and value of business firm. The company is
an artificial person which is having separate legal entity from its owner and remains to continue
even after the death of its member unless and until it is brought to an end. For example – Salomon
V Salomon & company case related to separate entity of owner and entity
Employment Act - Aim at protecting rights of workers of company engaged in business

operations under the employment act such as Health and safety equipment Act, Equality Act. It
contains rules which has to be followed by every employee and employer for better performance
and smooth relationship. For example - Pimlico Plumbers Ltd and A Smith, court has ordered
Pimlico to consider Mr Smith as its employee under Equality Act and hence is capable of using sick
leaves, paid annual leave etc. like other employee’s of the company.
Contract Law – Basically related with contracts, agreements made by companies for
carrying own particular business transaction. It governs all functions and practices as adopted under
the contract made. On breaching of any contract terms and conditions by any individual it will be
liable for punishment and penalties.
Difference between legislation, regulations and standards.
Legislation is defined as a business law as enacted by a governing or statutory body having
the power to make it. Legislation before becoming a law is known as bill which has to obtain assent
from different houses.
Regulations are those order or rules which are having power to become applicable on
business firms and company's. These regulations are prescribed and designed by competent
authority having superior powers to do so. It bounds all the functions and business activities of a
company.
Standards are set defined quality level which company can adopt for making improvement
in its business performance and profitability level (Savelyev, 2017).
TASK 2
Different types of business organisation and manner they are managed and funded.
Organisation – is a business entity which has been made with the objective of conducting
some business activities having same ideas and motives.
Sole proprietorship - Is a type of business organization which is owned and formed by a
single person or trader who runs its business operations as per own beliefs and decision. Each
business activity is directed, controlled as well as planned by the sole trader without influence of
other thoughts. All profit made and losses incur are with the sole proprietor himself. Also, he is
personally liable for all the business liabilities and losses on part of business.
Advantages Disadvantages
1. It has full control over the business and
decision - making process.
2. Can use profit and losses associated with
business operations wholly.
1. Becomes personally liable for business
liabilities as no separate legal entity is
there.
2. It is difficult for sole traders to raise fund

3. Is considered as easiest way to form and
operate as directorship remains in one hand
only.
from own and thus impact business
expansion.
Example - Taylor Taylor London is one of the prestigious multi award-winning chain of
boutique hair salons which is rendering hair dressing and its related services in the city of United
Kingdom.
Partnership – It is a business agreement in which person having common goals and
objectives comes together to carry on a business transaction by sharing all the liabilities, losses and
profits of the company in same ratio making each partner equally liable.
Advantages Disadvantages
1. One of easy manner for starting business
as capital is contributed by each partner
which resolves issue of fund arrangement
(Na, 2016).
2. Decision making process is taken by all
the partners and share equal responsibility.
1. In partnership business all the retiring
partner continues to be liable for all acts as
done when they were partnered.
2. Lack of stability i.e. on death, insolvency
of partner it comes to an end.
Example - Construction Partnership UK Ltd is one of the building and civil engineering
company which is founded in the year 2000 by undertaking contract between £2 million and £25
million across the North of England and the Midlands.
Limited company – A form of business entity made by two or more individual having
common objectives. A type of private company which makes the owners held personally liable for
all the debts and liabilities up to the part of capital invested by them.
Advantages Disadvantages
1. Members in this have limited liabilities in
this form of business organization. Also,
liability of the shareholder ceases
immediately on the transfer of shares.
2. A limited company has existence as
separate entity which is independent of its
owners.
1. This type of business organization comes
up with lots of paper work and complex
business procedure at the time of its
formation.
2. Comes up with huge cost is incurred in
set ting up and maintaining of a limited
company.
Example - Tata steel Europe Ltd. Is a steel making company with revenue of US$2.167

billion and number of employees 21,000 (Tata steel Europe Ltd. Wikipedia, 2019). It is having its
headquarter in London, United Kingdom with its main operations in the United kingdom and the
Netherlands.
Types Management Funding
Sole proprietorship It is managed and controlled by
a single person having full
control over its business
operations.
Funding activities of this
business type is carried on by
the sole trader himself in form
of capital amount invested,
savings etc (Wood and
Logsdon, 2017).
Partnership Is managed by all the partners
having stake in the business
capital.
Partners of firms can add more
to the business capital. Also, by
taking bank loan financial
requirement can be fulfilled.
Limited company A legal person having separate
legal entity from its owner and
member formed it which is
managed by directors and key
managerial personnels
appointed (Jain and Thomas,
2016).
Company can arrange funds by
taking loan from financial
institutions, directors
contribution etc.
TASK 3
Legal advice
Liquidation is defined as a process of bringing the operations of business of company to an
end by making distribution or selling of all the assets with the aim of repaying all the creditors and
shareholders as per the priority of claims due. The main purpose of liquidating business is to make
all the business debts and liabilities clear by realizing its own assets which company has become
unable to do. Below are legal advice which can help in making appropriate conclusion:
CASE 1 – Champion Ltd
Legal Advice – The term Winding up is a proceeding in which any business firm can opt for
dissolving its business activities including assets. After realization of company asset is done, the
amount realized is used for making payment of debt amount as owned. In this case, as the company
is making default in making loan repayment to both the bank and its creditors, it has to adopt for
winding up as per the order of Court.

Compulsory winding up by the court can be done in case of Champion Ltd. In this type,
company is directed and advised to be wound up by the court order because of default made by the
company in respect of default of non-payment of loan amount taken from bank as well as from the
creditor. The petition for such winding up can be made by creditors, company itself, Registrar, any
person authorized by central government and by any contributory.
Procedure to be followed by Champion Ltd. Are as follows:
1. Appointment of Liquidator – It is the duty of court to ensures that person selected as Official
Liquidator is qualified to be appointed to such post as liquidator is having powers to realize
Champion's assets, pay off all the debts and making distribution of any surplus remaining as
per the Court control.
2. On appointment of liquidator, directors power cease unless as sanctioned by the liquidator or
the Court. It is required by Champion Ltd to carry on its business operations only in case it
is beneficial winding up of the Company, otherwise must ceases to operate.
3. 7 days after getting appointed, a copy of compulsory winding up will be sent to Registrar
who will further serve a notice of being wound up to Champion Ltd (Savelyev, 2017).
4. On realization of assets by liquidator, he will apply to the court for making appointment of
Commissioner of the Court to examine accounts and for distributing funds realized.
Creditors meeting will be arranged for making cross-examination and verification of all the
financial statement along with creditor's preferences and claims thereby fixing date on
which distribution of assets of company will be done. In this any dispute in context of claim
is resolved by Court.
CASE 2 – Amber Ltd
Legal Advice – In this case study, Mr Anderson has breached its own duties as well as contract act
for which he can be sued. By revealing confidential information to competitor company, it will
result in breach of trust and confidence on part of Mr. Anderson as he is having high access to this
information part of the business which can become strength for other companies. Also, Mr
Anderson is not completing the terminating condition of employment contract which has been
decided in between them I.e. serving for 12 months after giving notice in the benefits of company.
Thus, breach of duty of good faith has been made. It is the duty of all the directors as well as
key personnel to make decisions by acting in conscious and beneficial manner for making benefit to
both the company and its employees. No compliance has been made by Mr. Anderson related to
making sound decision-making in favour of Amber Ltd instead without completing a period of 12
months, he joined as CEO in Beta Ltd. Duty of fidelity relates to action which an employee has to
perform in the best interest of company he is working for. Amber Ltd can make case on Mr.

Anderson related to breach of employment terms and condition as mentioned in the contract act of
which he is having full knowledge (Khan, 2016). Also, Amber Ltd can seek help of Tribunal or any
arbitration agreement for resolving its issue related to preventing Mr. Anderson from commencing
employment & from breaching duties for 12 months after giving notice.
CONCLUSION
From above report it can be concluded that for making more profit, compliance of applicable
business as well as commercial laws, regulations is necessary. Every business organization has its
own advantages and disadvantages which has to be understood before opting for one. Also, report
has defined legal solution for Champion Ltd. Related to loss it has facing due to change in business
place and customer level decrease. Furthermore, legal advice related to Amber Ltd is that the
company can sue Mr. Anderson for breaching of contract and employment provisions.

REFERENCES
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Smits, J. M. ed., 2017. Contract law: a comparative introduction. Edward Elgar Publishing.
Wood, D. J. and Logsdon, J. M., 2017. Theorising business citizenship. In Perspectives on
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Zottoli, T.M. and et.al., 2019. State of the States: A survey of statutory law, regulations and court
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Online
Construction Partnership UK Ltd (CPUK Group) Wikipedia. 2019. [Online]. Available through:

<http://www.cpukgroup.co.uk>.
Tata steel Europe Ltd. Wikipedia. 2019. [Online]. Available through:
<https://en.wikipedia.org/wiki/Tata_Steel_Europe>.