Business Law Report: Analysis of UK Legal System and Contract Law

This report provides an overview of UK business law, beginning with an introduction to the legal system and its sources, including parliamentary sovereignty, statutes, common law, and EU law. It then delves into the role of the UK government in law-making, outlining the stages from pre-parliamentary processes to royal assent. The report further examines contract and employment laws, highlighting their potential impacts on businesses, with a focus on JPM company. It discusses the importance of health and safety legislation, equal opportunities regulations, and GDPR compliance. The report also suggests legal solutions for various business issues, referencing case studies and justifying the best alternative legal solutions. Finally, it touches upon certain legal frameworks and concludes with a comprehensive overview of the key aspects of business law.

Business law

TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
SECTION A.....................................................................................................................................1
TASK 1............................................................................................................................................1
P1: Valuable structure and essential sources of legal system of UK.....................................1
P2: Role of government in law making process and statutory or common law.....................2
TASK 2............................................................................................................................................4
P3: Discussion of various contract laws and employment having potential impacts.............4
SECTION B.....................................................................................................................................5
TASK 3............................................................................................................................................5
P4: Suggestion of legal solution for large range of business issues.......................................5
(A): Case 1..............................................................................................................................6
Case 2: Amber ltd...................................................................................................................8
P5: (b) Justification of best alternative legal solution............................................................9
TASK 4..........................................................................................................................................10
P6: Certain legal framework.................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Law is a system of rules which are formulate and imposed through government
authorities in order to regulate the behaviour of individual or a community adhere to the will of
the state. The law consists of two parts which are Civil and Criminal law. Business law contains
the rules and regulations which are essential required to be followed by business organisation in
order to form and operating the business activities more successfully. The present assignment is
divided into two parts describing the information about the business law. The first part consists
of discussing various sources of UK laws and the involvement of government in formulation of
law which are applied in respective court. In addition, with this, some other aspects which are
related with designing of law made by government bodies are also discussed under this report.
The other part contains the brief information about certain recommendation about legal solution
in wide range of business problems. On the basis of which justification regarding alternative
legal solution is covered under this report (Addo, 2014).
SECTION A
TASK 1
P1: Valuable structure and essential sources of legal system of UK
Meaning of “Parliament sovereignty”: It refers to a principle of UK constitution which
makes parliament the supreme legal authority of UK which has attained right to create or end any
law. It means the court or other body has no right to overrule their legislation and pass any laws
until the future parliament get changed. It holds the constitutional bodies which is having
absolute sovereignty and has supreme over other legal authority which includes executive and
other judicial bodies. The principle of parliamentary sovereignty which means that neither
maximum nor lower than this have the alternative to go beyond the rules those are made by
government bodies. It has been considered as the most effective fundamental component of
English constitution (Bacci and et. al., 2016).
Various types of UK laws:
English Law is the common legal system which comprising of two laws i.e. criminal law
and civil law who’s each branch has attaining its own courts and procedures. There is certain
unique feature which are associated with English law i.e. doctrine of judicial precedents. The
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judicial members are bound through decisions of courts of effective jurisdictions but cannot
essentially by those of lower courts.
Classification of laws: The laws are classified into two parts which includes Criminal and Civil
law containing unique features and regulations. Such are briefly described as below:
Criminal: It is related with law which are made by government with an objective of
taking strict legal actions against the offences or criminal activities occurred in their nations. It
protects the interest of individual or community and ensure them to live safe without facing any
Harassment and immortal practices (Coyle, 2011).
Civil: It is such a law which are made by government with an objective of resolving
disputes that may arises between private companies and customers, suppliers, employees and
employer. In this case, the injured party filed a case against the companies.
There are different types of important sources which are related with UK constitution are given
as below:
Statutes: It is such type of regulations which are formulated under parliament. It includes
various laws related with employment right act 1996 and many more. The initial stage is
associated with green paper. A draft proposal which is in the white paper and a bill made before
a parliament.
Common law: It is considered as an important law which is made with the help of using
certain kind of principles established in various case over the nations during the period. It is body
of laws that are derived from constitution decisions of court and related tribunals. It is basically
crime under the English criminal law which are associated with criminal laws.
Law from the EU: It is considered as an effective operating laws which need to be
followed by the members of EU in order to operate their business activities in smoothly manner.
It must ensure that a populations of associate states are treated them equally. This seems to be
one of the highest courts in Europe and used to make compulsory decision for every nation.
P2: Role of government in law making process and statutory or common law
The UK government play a vital role in formulation of different criminal and civil laws.
Along with this, government also contributes maximum in the preparation of policies and
strategies. The parliament of UK holds a power of developing legal system and verify laws made
by government. The main function which are performed by parliament is to pass bill which are
present in parliament which further turns into laws after getting majority in favour of such bill.
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These laws are applicable to overall country and makes huge impact on the regulation of
different activities of individual or institutions which perform several business functions. There
are several process which are required to be followed by government. Some of them are
discussed below in brief:
Pre-parliamentary stage: It is the stage in which the process of formulating any
regulation under parliament are made. It includes the formulation of draft of concern proposal
which will be introduced in near future (Dennis and Monahan, 2013). It is firstly discussed with
the ministry stage. After transfer the proposal into the “Attorney general chambers” is get
modified as bill. It will be further approved by cabinet members.
First reading: It is the stage which includes the process of reading out the principles
related with bill and distribute its copies to all the members.
Second reading: In this stage, important discussion regarding principle are made between
the members of parliament. At the ned of discussion, MPs voted either in favour of against such
bill. After this, it is further transferred to the house of lords if such bill contains some
controversial content.
Committee stage: Under this stage, changes are made by the committee after considering
the bill. In this, house of lords is taking participate in voting system regarding adoption of
proposed changes.
Report stage: In this stage, the changes made in the bill are reported to all the members
of house. After reviewing amended bills by MP's they may suggest further changes.
Third reading: It is the final stage in which the debate is done on the principles of bills and give
votes on finally (Dilloff, 2010).
Approval of bill by one chamber considered by another: It includes the process where
approved bill by House of commons has given to House of Lords. After that, such bill has gone
through some stages. If the changes are recommended by House of Lords, then it should
necessarily require by members of parliament. To make such principles of bill turns into law then
it required the approval of both houses.
Monarch's Assent turns into bill: It is called as Royal Assent. After getting approval by
both houses they are required to pass by Monarch's. It is required to first consult with members
and after that bill will be passed with the consent of all members of parliament.
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TASK 2
P3: Discussion of various contract laws and employment having potential impacts
According to the given case study, it has been seen that the three friends which are Jane,
penny and Marie comes from common university. They all three are mutually take decision
regarding starting new small business with the name JPM which will be a public limited
company. They have an adequate knowledge about doing business but instead of that they face
lack of sufficient funds which brings difficulties in operating business more smoothly. Apart
from this, there are also suffering from various types of issues which brings challenges among
them to form a business (Dolzer and Schreuer, 2012). Thus, all three are taken a decision
regarding acquiring sufficient knowledge from various experts and accountants so that proper
ideas can be taken into account which will be further used to start a new business. There are
some crucial acts which need to be considered so that problems which may come in the process
of starting a new business can be resolved in an effective and efficient manner. Some of the acts
are disclosed under the below:
Health and safety legislation: Such kind of legislations are formulated to ensure
employees about their safety at workplace. Thus required to apply such act by JPM company in
order to mentioned rules and regulation which is provided under OSHA norms. As the
employees are a valuable part of an organisation on the basis of which the performance of an
organisation are based. Therefore, it requires for every organisation to think for their betterment
and protect them from any damages and accidents that may occur at workplace. It will help in
bringing motivation and confidence among employees which results in greater performance. The
management also required to collect all views and suggestions from employees and accordingly
implement safety measures to resolve all issues and difficulties that restricts them to give their
performance at optimum level. It helps company in retaining experienced employees with them
for longer period of time which directly makes positive impact on the overall performance of an
organisation (FBA, 2011).
Health and safety at the work act, 1974: This is the act which directs the management of
an organisation to adopt safety measures at workplace so as to protect their employees from any
hazards or accidental damage at workplace. Employees are an asset of company thus have right
to get protect while performing. Such act is formulated in 1974 with an objective of maximising
the health of employees at workplace. It is essential for each and every employee of an
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organisation to become aware about all rules and regulations related with such act in order to
protect themselves from any discrepancies at workplace. It brings motivation among employees
to work hard and contribute maximum efforts in achieving desired goals and objectives within
pre-determined period of time.
Equal opportunities regulations: This act states that workers employed in an
organisation are having rights to get equal opportunities to increase their position in company
and should not be discriminated on the basis of power or designation. The legal bodies are
mainly concentrate on maintaining proper equality among staffs and members so that a healthy
working atmosphere can be created which makes positive impact on the interest and working
behaviour of workforce (Folberg and et. al., 2016). In given case study, JPM focuses on
expanding their business to different nations in order to attain position at global level. The owner
of the company is held liable to make proper communication and monitoring each activity which
are done in an organisation so as to get profitable result.
GDPR: It one of the effective legal design that provide an essential set of rules for data
collection and processing of personal data of an individual with UK. A general data protection
agreed on primary law regulation that companies used to protect EU citizens as individual data.
The law would be also used to apply to any business that were related with various data
processing associated through offering product and services in effective manner. The network is
changing continuously through proper communication and keep on changing in every day. Some
of the effective activity needed to evaluate various impacts in case of dealing with all local law
that consists of certain name, address and other documents. The initial data protection laws used
to make all client used to supportive to balance all their coming transaction in proper manner.
The activity associated with overall regulation that lies on business must be operated within JPM
industry in effective ways. In case any unethical aspects are analyse in an organisation, the fine
or penalties would be more out of the entire amount.
SECTION B
TASK 3
P4: Suggestion of legal solution for large range of business issues
As per the mentioned case scenario, it has been determining that effective most reliable
company which is operating with the name of Champion ltd. It has been found that after moving
from the other places, the company experienced various financial issues because of decline in
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total number of customers. They have been made plenty of efforts on taking loan from banks for
the purpose of relocation or to make payment of creditors. Because of not having sufficient
amount of funds payment, creditor started threatening for winding up petition in the court. In this
process, they are needed for the determination of structure a new stadium. In accordance to this,
they required to deal with different kind of problems those are making huge impacts on customer
and have to bear large number of downfall in recent time. The owner of the company is trying to
make full efforts to provide valuable amount of interest to the creditors by make proper
evaluation of property (Glynn, Arnow-Richman and Sullivan, 2015).
(A): Case 1
In respect to the mentioned case study, it has been found that all the laws and regulations
that are made in accordance to the providing capital to the creditors. It is important to make full
support through making proper evaluation of business and fine they need to pay to the creditor.
In case of allocation resources during the time of building a new stadium is based entirely on the
amount that is taken from the creditors. The primary motive of powers that a creditors used to
have better understanding of different types of deal that act within an organisation.
Winding up petition: It is kind of appropriate action or order that is being made by court
that forces an insolvent company into to go for compulsory liquidation process. It is one of the
reliable process under which judge appoint an official to liquidate every company’s assets in
respect to repay all the amount to the creditors that they had taken for the purpose of making the
stadium. It is related with one of the techniques that is being taken into consideration that is
based on closing or liquidation of a business proper ways. It included selling property or assets,
paying off creditors through making distribution those are valuable for the company as well as
various stakeholders (Hofmann, Rowe and Türk, 2011). This has been evaluated that total cost
collected from winding up process a Champion Ltd will be similarly need to follow all small
business stages in proper manner. It would be evaluated that total cost for winding up of a
company that are common as small business. Generally, the entire cost of lies between 400 -800
to any specific issues. During this, they need to deposit a sum total of 1600 with a fine of 280 is
required to be paid.
Insolvency Act (1986): According to the section c (45) is an important act of parliament
that used provide legal platform for every issues those are related with personal and corporate
insolvency in UK. It is a legal term that describe specific situation of debtors that unable to pay
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their debt obligation as mentioned in the case of Champion ltd. In cash flow insolvency, the
debtors suffer from a lack of financial obligation that cannot be paid to the creditors.
Liquidation: It is known as one of the reliable process that is taken into account to bring
every business transaction to end and make entire distribution of their assets and capital. It is
basically deal with every kind of activity those are associated with Champion ltd. It is going to
make valuable event that is basically develop in cases related to the company that get insolvent.
They are not being discussed to meet their obligation or does not used to make payment of short
term debts. It needs to minimum and compare the fair value in the areas. It can be implemented
through using various types of implementation process. This will be taken into account at any
given point of time such as creditor, voluntary, member or taking permission of court. As per the
mentioned case study, it has been evaluated that all the creditors are in threat to make proper
valuation of petition regarding the process of winding up. All the process is needed to be
followed in proper manner so that chances of getting better growth in near future time can be
more. The owner of the champion Ltd required to be agreed on all terms and condition that are
made by creditors at the time of liquidation stage. It required to analyse numerous lists of
creditors and amount they are taken into account (Hutter, 2011).
 Voluntary liquidation: As per the section 84 of insolvency act, it has been found that
this kind of liquidation take place in case the company resolve by special resolution that
is to be wound up for any reason. The liquidator is being appointed by the member to
deal with their matters. The Champion ltd get insolvent as they are not being able to pay
amount to their creditors.
 Compulsory liquidation: It is said to entire process which is regulated by the one order
to court. According to the section 123(1), the company is unable to pay their debt as they
fall under this particular category. It is a court order that target an insolvent company to
go for winding- up process.
Ways to deal with insolvency:
 Call in outstanding debts: It seems to be the case the company allow outstanding
liability to go unpaid for important period of time. A growth in account receivable is a
common cause of company insolvency issues.
 Cut costs and repay creditors: They can make use of redundancies and focusing on core
activities or to cut the marketing spends.
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 Positive aspects: The creditors would have to get chance to retain back their investment
amount by the filing compliant against the champion company.
 Negative aspects: The Companies entire business operations wind up permanently. They
cannot be able to perform their role anymore.
Case 2: Amber ltd
Under this specific case study, it has been determining that the employees which is
operating with the mentioned company Amber ltd is denying for serving additional transitional
arrangement. According to the mentioned contract, it has been mentioned that a total 12-month
notice period is being provided to Amber Ltd before switching for any other job. One of the
competitor of Amber ltd known as Beta Ltd is offering an effective amount of salary or position
in their company. But the contract is not even followed or ignored by Anderson. The company is
able to make reliable determinations to prevent Mr. Anderson from initiation job with the other
organisation through providing various benefits to them. It has been noticed that amber is in
injection to protect their valuable concern through providing reliable services in accordance with
getting maximum benefits in coming time.
Law of contract: It is said to be an agreement among two or more people to perform a
service or provide commitment to act accordingly. Not every agreement are important contracts,
as the parties must be deemed to have intention to be legally bound. As it has been found in case
of Amber Ltd.
Injunctions: A party that fails to comply with comply with an injection to faces criminal
or civil penalties that consist of best possible monetary sanctions and even imprisonment also.
The Anderson have to pay sever consequences that are ordered by the courts it can be in terms of
high fine.
Types:
 Preliminary injunction: It seems to be one which is given to a party as a trial basis.
 Temporary restraining order: It is limited in time and scope. It orders to court time to
analyse the matter in order to determine, whether to grant any preliminary injunctions.
 Permanent injunction: It is the one which is granted after the completion of trail
regarding the matter or any kind of cases.
Term of contract: It is an effective provision that form as a part of contract. Each term must
increase to a contractual obligation or breach of which can be given to any kind of litigation.
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As, it has been notified that Amber company is being the connection that used to
safeguard from making valuable commitment with other companies as per the mentioned
agreement. There are various ways in which contract can get terminated. Some of them are:
Redundancy: It is known as one of the effective condition under which the employees
used to get release from their job or company used to fire them from their concern post. There is
certain process which is needed to be followed during doing so (Percival and et. al., 2017). Such
as:
 The company need to choose that employees who is under performing. Under this overall
performance is being analyse and on that basis they reach to conclusion to terminated
them.
 Termination of agreement would be made in case one individual is already provide
information regarding various section about the terms and conditions.
 Positive aspects: Both the party would get equal treatment by using right process. Amber
ltd can get maintain their reputation by providing evidence against the Andersons.
 Negative aspects: Anderson would have to bear plenty of losses because of breaching of
law as per the contract act.
P5: (b) Justification of best alternative legal solution
This seems to be one of the crucial aspect that is being found out as reliable solution in
regard to overcome various issues that are arises within the department. It is crucial for the
department to reduce time period of agreement in respect to mentioned parties. Like for example,
in relation to Amber and Anderson case, it has been examining that professional matter are
missing among each other (Alternative solution, 2018). As, because of which a business can be
run through provide use of various matters those are associated with the company as well as
employees. It will help them out to attain maximum benefits from the set objectives. likewise,
the decision is being made through using ADR process at the workplaces. It will assist all
department in many ways that would assess in attainment of best solution through proper
decision making process. The best solution is to solve all their effective negotiating with one
another personally so that matter cannot get excess level in coming time (Reed and et. al., 2013)
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TASK 4
P6: Certain legal framework
Alternative dispute resolution (ADR): It refers to various number of processes that assist
all the parties to resolve different kind of disputes. ADR process consists of mediation,
arbitration and collaborative laws matters. It is effective act that is applicable as effective norms
that is disagreeing to various parties’ litigation areas that are made in the court about the certain
issues those are found within an organisation (Trevino and Nelson, 2016). It happens to be
combined effort for the ways parties used to resolve various disputes that are existing in a legal
system. All the methods that are mentioned in the resolving disputes are taken into account as
effective process. Thus, some of important problem that are associated with ARD is being
mentioned below:
Resolution: It seems to be that part of any case where conflict is resolved. It is basically
carries the lesson behind the entire story and mostly marks the closing outcomes. It is relatively
short run that makes difficult to assess the multi-decadal natural variability.
Negotiation: Negotiation is a method which allows organisation and its employees to
communicate with each other in order to reach at a compromise level which includes satisfaction
of both the parties. The primary aim of using this tool is to provide equal opportunity to both the
parties which can result into positive outcome.
 Advantage: It is more flexible form of dispute resolution as it consists of only those
parties with an interest in the matter and other representatives.
 Disadvantage: Unequal bargaining power. Companies are careful in case of bidding
under this particular system.
Arbitration: Arbitration is a legal tool which helps parties to resolve their disputes using
path of law. This process is mainly adopted by multinational companies, so that they can carry
out their business activities without any interruptions. This method helps organisation by
reducing the mistakes because of their organised legal structure.
 Advantage: The parties do have the choice of decision making with the concern
expertise. More fast results can be generated.
 Disadvantage: It is essential for arbitrator and agency to charge certain amount for deal
with all kind of issues. Lack of formal discovery.
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Mediation: According to this method, a dispute is resolved using a mediator. Under this
process a business organisation involves a third party in order to clear their doubts. This method
does not levy any order to any party.
 Advantage: Assistance through an individual professional that can assist customer to
reach at fair outcome during the time. There is no any court intervention.
 Disadvantage: Court cannot impose restraining orders to subpoenas right that assess
parties to resolve their issues. Mediator must balance the power so that party cannot bully
the other into any agreement.
CONCLUSION
From this project report, it has been concluded that business law is considered as one of
the effective ways which will lead to manger all kind of matter arises within an organisation. For
this purpose, is providing particular information regarding different laws and rules that are
related with evaluation of business. Role of legal authorities in formulation of law making
process. However, some legal solution is being made to various problems that is being faced by
Champion ltd and Amber. Effective use of alternative legal solution is upcoming decision
making is taken into account. Every analysis is being made for the purpose of getting better
results through following effective laws within an organisation.
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REFERENCES
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agreements in chain community pharmacies. Journal of the American Pharmacists
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Coyle, J.F., 2011. Business Courts and Interstate Competition. Wm. & Mary L. Rev., 53, p.1915.
Dennis, D.L. and Monahan, J. eds., 2013. Coercion and aggressive community treatment: A new
frontier in mental health law. Springer Science & Business Media.
Dilloff, N.J., 2010. The changing cultures and economics of large law firm practice and their
impact on legal education. Md. L. Rev.. 70. p.341.
Dolzer, R. and Schreuer, C., 2012. Principles of international investment law. Oxford University
Press.
FBA, S.F., 2011. Discrimination law. OUP Oxford.
Folberg, J., and et. al., 2016. Resolving disputes: Theory, practice, and law. Wolters Kluwer Law
& Business.
Glynn, T.P., Arnow-Richman, R.S. and Sullivan, C.A., 2015. Employment law: Private ordering
and its limitations. Wolters Kluwer Law & Business.
Hofmann, H.C., Rowe, G.C. and Türk, A.H., 2011. Administrative law and policy of the
European Union. Oxford University Press.
Hutter, B.M., 2011. Understanding the new regulatory governance: Business perspectives. Law
& Policy, 33(4), pp.459-476.
Percival, R.V., and et. al., 2017. Environmental regulation: Law, science, and policy. Wolters
Kluwer Law & Business.
Reed, O.L., and et. al., 2013. The legal and regulatory environment of business (p. 328).
McGraw-Hill/Irwin.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Online
Alternative solution. 2018.[Online]. Available through: <https://www.whanganui.govt.nz/our-
services/building-consents-and-information/Documents/Brochure003-
AlternativeSolutions.pdf>.
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