Comprehensive Business Law Report: UK Legal System and Organizations

This report provides a comprehensive overview of business law in the UK. It begins with an introduction to business law and its significance, followed by an examination of the UK legal system, including the roles of Parliament and the judiciary. The report then delves into the sources of law, such as common law and legislation, and explores the government's role in lawmaking. It further analyzes the impact of company, contract, and employment law on organizations, with examples. The report also differentiates between legislation, regulation, and standards. Activity 2 covers funding, management, and the formation of different types of organizations, and it evaluates Alternative Dispute Resolution (ADR) methods. The report concludes with a summary of key findings and a list of references.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Law and its evaluation in UK......................................................................................................1
Sources of law ............................................................................................................................2
Role of Government in law making in UK.................................................................................3
Statutory and Common law its applicability in courts................................................................4
Impact of company, contract and employment law over an organisation..................................4
Difference between legislation, regulation and standards...........................................................5
ACTIVITY 2....................................................................................................................................6
Funding, management and formation of different types of organisation....................................6
Evaluation of Alternate Dispute Resolution with example.........................................................7
Critical evaluation of ADR.........................................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Business law are those kind of law that deals with all the thing that is related to business
and company. This law covers basic aspects which are needed to be followed for smooth running
of business. It also covers rules and regulations which is mandatory to be followed by and
organisation to come into existence or for their establishment. Law of this types are also know as
commercial laws. Scope of these laws is very wide and covers all those aspects which are
required in and incorporation of a company. Its main objective is to create an easy in forming of
a company and business. In the given file sources of law, role of government in lawmaking,
about various organisation their funding, management and formation is going to be covered.
Also company, contract and employed is also talked about with an relevant example.
Understanding over legislation , regulation and standards is going to be explained.
ACTIVITY 1
Law and its evaluation in UK
Law is a very wider term that covers all those aspect which can have an dreadful impact
over the society and people living in it. This can be understood in simpler manner as rules and
regulations which are formed to maintain balance in a society. Their are various types of laws
present in modern world and they are company law, anti trust laws, civil and criminal laws.
Legal system in UK has two major elements they are parliament and judiciary. Both of them are
very important for smooth functioning of legal system in UK. Parliament is considered to be the
supreme authority in formation of law. All of these laws are formed under a basic structure
which is known as constitution. A proper process is required to be followed by parliament for
enacting of an law in UK. Their are two types of houses in an parliament of UK. They are House
of Lords and House of Commons. A draft presented by an committee needs to be presented in
both the houses (Cameron. and Pagnattaro, 2017). After this a discussion takes place in houses
and voting is also done for it by MPs. After this draft is send for Royal assen cent which is final
step to be followed in enactment of law. Judiciary plays also an important pillar for formation of
law in UK because of the concept of common law which still exists. Judges of courts in UK can
pass a law if they find a law passed by parliament is not appropriate to be followed by society.
Judicial system in UK consist of Supreme Court that is highest court for all kinds of cases . Then
comes High Court which I divided into Queens bench, chancery and family bench. Role of
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Queens bench is to deal with criminal matters, Chancery that hears civil cases of all type and
then comes family bench which deals with matter related to marriage, divorce or any other
marital problem. Then county court is their which deals with both matter of civil and criminal
cases. As law is a very vast and enhanced term which covers lot of aspects of society under it.
Law has its very existence from beginning of human race on earth and is evolving since then.
Existence of common law is their since time king rule is applicable in UK. After this common
law has become basic framework for UK legal system. During course of its development
company law come into existence to deal with formation of company, anti trust laws are
introduced for healthy competition. Civil law is introduce to solve problems of an individual and
in order to control crime rate in UK criminal law come in to existence. It ha impacted UK in
positive manner and has helped in lower down of crime rate and has provided healthy
competition in market due to which life of people has become safer.
Sources of law
Law is on of the basic need of society as it leads towards its development. Their are
certain basic things which are required for formation of law these are known as sources which
act as skeleton in forming of law of any kind. These sources are those elements which are
necessary for formation of law without it no law can be formed (Bird. and Park, 2016). Their are
various sources of laws which are to be taken into consideration for formation of laws. They are
explained as follows:
Common Law: This is one of the most important part among sources of law. This is
considered to be one of the most valuable source in law. In it various facts and judgements given
by different judges over a particular situation is present. All these are formed under 'law
report' . These reports are formed out of the cases which upon which judgement has been
passed by the court and is considered to be most reliable form of source in legal system of UK.
In this those judgement are which has relevancy with a particular situation. It can be found
online and in any legal library. Summary of legal cases is also covered under with other key
points in terms of law is their (Peterson. and et. al., 2016).
Legislation: It is also considered as one of the important part which plays an major role
in formation of law. A legislation is that rule which is formed under a draft and is applicable all
over a country. Some legislation are directly formed by government and some are authorised to
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perform certain work by their superior authority. An legislation is formed by an parliament of a
country.
Law Commission: They are those commissions which are formed in order to analyse
impact of an law over the society. A report is prepared by this commission in which all the loop
holes is covered and effect of a law over society with reason is explained. These commission
gives and over view about what can be done to control situation that is effecting a society in
negative manner. It is consider to be an important source as it explains about what can be
improved in a law formed (Greenleaf, 2018).
Role of Government in law making in UK
Government is one of the most important part of a country and also plays an important
role in formation of laws and passing of an legislation. In UK these laws are formed by
parliament. It is considered to be the supreme most authority required for formation of law or an
legislation in UK. Its parliament consists of two house which are House of Lords that is upper
house and House of Commons that is lower house. All the drafts are also known as bill. These
laws are formed as per constitution of a UK which is in unwritten form. Constitution is that
framework which provides a basic skeleton and all laws is formed within the limits prescribed
under it. In a simple manner constitution is the base over which a law comes into existence. The
draft which is presented by an committee is also known as bill. The bill is presented to both
houses and then discussion is done for it over its objectives. Then another discussion takes place
in detail about bill presented (Allen, 2017). After this voting is done for further moving of bill .
The bill is send for Royal Assent and then only a bill becomes law. In the House of Lords there
is 12 senior most judge of courts and bishops of senior category. In House of Common each
member is selected for a term of 5 years and is elected by contesting of election. A bill is a draft
which is presented by an government and is their to give details over the law being proposed by
government. There are two types of bills public and private. Proper procedure is followed by an
parliament in UK for passing of legislation which is explained as follows:
First Reading: In this step only the bill is represented by the committee to the house of
commons. No discussion takes place in this step only the title of bill is read out in front of lower
house.
Second Reading: This reading debate over the bill is started and only main objective of
government is told (Schuster. and Wroldsen, 2018). Also principals regarding the bill as an
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overview is explained by the committee presenting the bill. After this usage of whip system is
their for gaining support and majority to make present government win.
Committee Stage: In this stage the bill is presented to the House of Commons and their
detail analysis and examination of it is done by members of lower house. If any modification or
amendment is to be done in a bill it is suggested at this stage only.
Report Stage: At this stage again discussion and debate is done over amendments done in
a bill. After this voting is done for bill presented with amendment (Ulya, , 2018).
Third Reading: In this stage bill is again presented in front of the house for any further
discussion or a short debate . After this voting is conducted for acceptance and rejection of bill.
House of Lords: After complementation of the process mentioned above and passing
through these stages. Bill is sent to House Of Lords. If any amendment suggest by the house it is
done an d sent back to House of Commons.
Royal Assent: It is the final stage of process in this monarch has to do a formality by
approving the bill and then only a bill can become law or act in a parliament. This is explained
under Royal Assent Act 1961.
Statutory and Common law its applicability in courts
Statutory laws are those laws which are present in written form and is formed by
legislature or parliament in UK. These law can vary according to the concept in which it is
applied. Statuary laws are applied in court in a manner where concrete statement or judgement
has to be given. Common laws are those laws in which a judge is given power to pass a
judgement to overlap a situation which is contradict to norms of society. These are useful for
court in a manner that it is used to pass a law by judges of court to neutralize negative impact of
any law passed by government.
Impact of company, contract and employment law over an organisation
Company Laws: These are those laws which are formed for formation of a company and
its main objective is to maintain an ease in formation of a company. In a manner it can
understood as those rules and regulation which are necessary for an organisation to be followed
for its incorporation and establishment. Effect of this over an organisation is that if these laws are
not followed by an company then it is not going to be considered as an legal entity (Rohlin. and
Ross, 2016). For example an organisation like Tesla is benefited from company law as it helps in
conducting annual meetings and these are done as per guide lines of company law.
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Employment Law: These are the laws which are formed in order to help the employees in
solving problems that is faced by them during course of their employment in a country. It also
helps in maintaining relationships which exist between the employer and employee. These laws
are also important to bring out rights and duties of both employer and employee towards each
other. In these laws important rules and regulations are mention which are necessary to be
followed by both employer and employee. These laws creates an important effect over the
company or an organisation in a manner that if any of rules and regulation is not followed then
quality of both employer and employee decreases (Norris, 2016). For example company like
Jaguar is going to be benefited out of this in a positive manner as this is going to increase
workforce and quality of work by them which is ultimately going to increase profit and
production of the company.
Contract Law: These laws are those laws which helps in formation of a legal contract
between parties. In a way it is expressed as those laws which are helpful in formation of contract
between two parties. A contract can be of any type and can also take place between and
organisation. These laws are to be legally enforced over an organisation by other company with
whom it is coming in contract. These agreements is going to create an positive impact over an
organisation in a manner that it is going to enhance business. As contracts are formed for longer
period of time (Barrédy, 2016). Contract law is very helpful for an organisation like M&S
because it is going to give them concreteness in creation of agreements with its supplier and this
is going to make raw materials available to them at any point of time
Difference between legislation, regulation and standards
Legislation: These are those rules which are formed by government and getting it passed
in parliament from both houses. They are mandatory to be followed by any kind of business
organisations who has to do business in a country. In a simple manner these is understood as
those rules and regulations which are formed by government for maintaining peace and order in
a society. Regulations: They are the set of rules which is formed by an organisation for its
smooth running and better performance. It is mandatory to be followed by all the persons who
are working in an organisation or an company. Standards: It is set by the organisation to
provide a framework under which regulations can be formed according to the legislation. The
standard can not be ignored in any manner. For example in a company if any kind of activity
related to racism is going on and company is not taking any action against it. Then company is
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violating regulation formed by government for abolition of racism. A suit is to be filed against
the company and company has to pay fine with bearing punishment for it (Ma. and Marquis,
2016).
ACTIVITY 2
Funding, management and formation of different types of organisation
Sole proprietorship: These are those types of organisation or business which is run by
an individual himself which owner of the business is the person who is running it. In this types of
organisation all the profit is earned by the owner himself. These kinds of organisations are easy
in setting up because they require only HMRC number and after this they are able to do business.
Management of these organisations are done by the individual himself and he can higher persons
to perform task fro him. Funding of these organisations is done through investment done by an
individual or by his friends and family members. Advantage of this organisation is the profit is
earned by the individual running the business. Disadvantage is that lack of resources can occur
at anytime (Hiller, 2016).
Partnerships: Business organisation that executes activities in collaboration with the
partners is said to partnership. These organisations are generally in size and required less legal
workings in incorporation. Partnership entities acquires monetary resources or funding from
partners investment and bank loan. Authorised partners are responsible for management of all the
business activities in ethical and sustainable manner. To form partnership firms, it is mandatory
to register compulsory requirements with HMRC as well as preparation of partnership deed are
also mandatory in it. The major advantage of partnership is that it involves ease and simple
operations. Moreover, another advantage is that partners are not required to pay income tax that
saves their revenues. However, disadvantage of partnership is that duration of the deed is
uncertain and it involves huge risks related to additional liability (Vargas, 2016) .
Public limited company: Business organisational type which operates activities as
separate legal company that is distinct from owners is said to public limited company. These
organisations perform practices of business at large platform in which they have minimum
chances of any errors. It requires proper systematic procedure for executing activities in real
world. To manage this organisational type, shareholders and directors are appointed to run and
ensure smooth functioning in dynamic environment. In context to there funding, these are done
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by stakeholders addition to shareholders. As they are the owners of the company and do
investment within an organisation. Shareholders are formed by subscribing debentures, investing
in returns for new shares and by obtaining shares from an existing shareholders. All these
guidelines are mentioned under company law Moreover, formation of this business type requires
name of company, location of headquarters and many more information. Along with this, it is
formed by seven members together with no maximum limits. The major pros of the
organisational type are that they can better access capital and have huge values that are shown by
capitalisation within market. The downside of it is that it involves huge potentials for loss and
stock market vulnerability.
Private limited company: Organisation that have private ownership and limited
employees to carry out business activities is termed to private limited company. Formation of
these businesses involves basis documentation that are list of members, name of business and
other relevant information. Management of these firms are generally easy as organisational
managers and workforce together makes decisions after proper consultation regarding to some
situation or further business plan. Directors of the company guide mannagers to peform function
of mannagement and they are appointed through following procedure mentioned in
memorandum of association that is formed as per guigelines of company law. Funding is
acquired from bank loan, venture capitalists and angel investors. Separate legal entity, limited
liability and easy share transferability are some advantages of private limited company.
However, long registration process, division of ownership and wide compliance formalities are
certain disadvantages of it (Heaton, 2016).
Evaluation of Alternate Dispute Resolution with example
Case Scenario: In this case Margaret is an dealer of paintings and she has agreed to sell a
painting by Venn Pros to Christopher for £30,000. Christopher did 30% of payment to Margaret
in cash. Delivery of the painting and rest of the payment would be done at the time of ending of
exhibition in which the picture is going to be presented and exhibition is in Buckingham. As the
exhibition is about to end. Margaret has done negotiation of selling painting to another person for
£40,000. Christopher noticed that the painting is to be sell to another person by Margaret. Now
Christopher does not want to loose the painting.
Alternate Dispute Resolution System: This is the process by which an dispute is solved
which has accrued between the parties over some reason. In a simpler manner this is understood
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as process of solving of dispute between two parties. This can also be used for solving problems
which has occurred within the family members also. This technique has been developed in recent
years of time and has become popular in few years back from now. This system is proved to be
an more effective in solving of disputes outside the court. Their are certain methods which comes
under this system which is explained below:
Arbitration: It is the process by which dispute happened between two parties is solved.
In this process an arbitrator is appointed by an person who listen to both the parties and make
them come to a conclusion.
Conciliation: In this an conciliator is appointed by both the parties to solve dispute arose
between them. A conciliator makes both parties talk to each other and then come to an
conclusion.
Negotiation: In this process of ADR an negotiator is appointed by both the parties who
fixes meeting for both the parties and then makes them talk to each other over dispute occurred
between parties. He tries and make them agree over a particular point.
Mediation: This process a mediator is hired by both the parties who makes the come to
an point over dispute happened between them (Trautman, 2018).
Method of ADR which is going to be applied in the case mentioned above is Arbitration
because dispute has occurred when Margaret has decided to sell the painting to another person.
So in this case Christopher does not want to leave the painting. An arbitrator is going to be
appointed who is going to decide that painting should be given to whom after listening to both
parties.
Critical evaluation of ADR
Though ADR is an new process and is their to solve disputes without following long
procedure of court which means dispute is solved outside the court, but only arbitration is the
most effective method as judgement given by an arbitrator is applicable to both parties. Whereas
other methods like conciliation, negotiation and mediation are not useful because suggestions
given under them may not be always able to solve disputes occurred between parties. As it is
dependent over parties that weather they want to follow it or not.
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CONCLUSION
From the above file it is clear that business law is helpful for organisation or a company
that is to be formed. This law is important for an company or an organisation in a manner that it
gives them legal rules and regulation which are necessary to be followed by them for
incorporation. Then further various types of organisations like partnership, private limited and
public limited company is covered. Also contract law that helps in growth of an organisation,
employment law which increases quality of employees and company law deals with
incorporation of company is got to be known. Difference between legislation, standard and
regulation is learned. Then ADR about it different types of methods is also covered.
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