Law and the English Legal System: Business Law - NCL HND Report

This report delves into the Law and the English Legal System, covering various sources of law including primary (legislation and judicial precedents) and secondary sources (parliamentary debates and legal journals). It explains the government's role in creating law, differentiating between common and statutory law and their application in courts. Specific examples illustrate the impact of company, employment, and contract laws on businesses, highlighting key aspects like contract formation, company regulations, and employer-employee relations. The report also discusses the formation, funding, and management of different business organizations, including sole proprietorships, partnerships, and private limited companies. Finally, it suggests appropriate legal solutions for dispute resolution, emphasizing litigation and Alternative Dispute Resolution (ADR) methods. This comprehensive analysis provides a foundational understanding of the legal landscape affecting businesses.

Law and the English
Legal System

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................3
P1. Sources of Law ....................................................................................................................3
P2. The role of government in creation of law and the application of common and statutory
law in courts................................................................................................................................3
P3. Using specific examples illustrate how company, employment and contract laws has a
potential impact on the business.................................................................................................4
P4. Formation of different types of business organisations........................................................5
P5. Discuss the Funding and Management of the various forms of businesses..........................6
P6. Suggest appropriate legal solutions to resolve the areas of dispute. ....................................7
CONCLUSION ...............................................................................................................................7
REFERNCES ..................................................................................................................................9
INTRODUCTION
The business is the body which governs and regulates all the activities as well as transactions
which takes place in an organisation. The basic objective behind the formation of such laws is to
ensure the protection of the activities of the business(Balzer and Schneider, 2021). The said
legislations also entails the various number of duties as well as responsibilities of the concerned
individuals. Other than this there also lies the various other legislations which contributes in
dealing the affairs of the business such as the company law, employment, law and the contract

laws of the country. The folliwi8ng report is going to cover the various sources of law along with
the explanation of the different forms of business. The report in its last part also suggests the best
suited legal solution in accordance of the given scenarios.
MAIN BODY
P1. Sources of Law
The country consists of the laws which are of partial written nature which means that there lies
the unwritten form of constitution in the United Kingdom. The ground aim behind the outlining
of such laws is that the individual interest of the people in the society can be protected. Further
there lies the two major types of sources of law which are the primary and secondary sources of
law. The primary sources are said to be the direct sources and comprises of the legislations
made by the parliament by following the due process of the law making as well as the judicial
precedents marked by the judges of the courts, which stands binding on all the other subordinate
courts of the country. The other being the secondary sources are not the original as well as the
direct sources of the law rather they are the result of extended discussion and the elaboration of
the various research works. The parliamentary debates which takes place in the parliament while
passing of any law is one such major example of secondary sources. Other than this the legal
discussions by the jurists, legal encyclopedia as well as the law journals and the text books by the
renowned authors are also considered as the form of secondary sources(Bell, 2018).
P2. The role of government in creation of law and the application of common and statutory
law in courts.
The process of formation of required laws for the country is a very complex task. The said
process comprises of the number of stages thro0ugh which the proposed bill is required to go
through. In UK, the parliament is said to be the authority which is embodied with the powers of
enactment of laws. Moreover, there lies the two house4s in the parliament as named house of
people and house of lords. The said stages of the process are as follows -
 First reading - it being the very first stage comprises of the step where the bill in actual
sense is introduced in the parliament.

 Second reading – at this stage the possible negative as well as the positive impacts of bill
which are likely to made to made the society are ascertained.
 Committee stage – here with respect to the title and the contents of the draft, the general
discussion is taken place by the members of the parliament.
 Report stage – the other being the report stage in actual sense, the bill is subjected to the
alteration and amendments as proposed by the members of the parliament in the prior
stage.
 Third reading – at this very stage the the bill is subjected to the process of voting in
order to determine the total majority to it(Cappellino, 2020).
 House of lords - in this stage the all the alteration which has been in the prior stage is
mad to the value and also the general terms of the proposed bill along with its loopholes
are made to the discussion.
 Royal assent – this stage, even though being carried out as the part of formality , but is
considered as the most important one in the whole process because the bill is said to have
its legal existence only after it attains the royal assent by the queen of the country.
Furthermore, the laws of the country are also bifurcated in the other two heads being named as
the common law and the statutory laws. Where the statutory laws are the ones which are resulted
by the dues process of law making and prevails in the form of codified legislations. Whereas the
common laws are the ones which results from the decisions made by the judges of the courts.
The court of the country are subjected to have the applicability of both the types of laws for the
purpose delivering the justice in the society. Moreover, the legislations stands binding on all the
courts in the similar manner whereas the judge made laws stands binding on the inferior courts
only and that too when they are given by the supreme court and high court of the
country(Gealfow, 2018).
P3. Using specific examples illustrate how company, employment and contract laws has a
potential impact on the business.
Every organisation for the purpose of assuring the smooth functioning of its business is required
to comply with the concerned prevails legislations of the country such as the company law,
contract law and the employment law which has been elaborated more as follows -

 Contract law - this law stands responsible for the purpose of governing the commercial
transactions which takes place in the business between the different parties. This law
creates a binding a binding effect on the parties who are the signatories of the contract to
perform their part of performance. Under this the party who stands at loss due to the b
reach of contract also gets entitled to have the protection for the same by the way of
equitable compensation(Graw, et.al., 2019). Further for the formation of legal contract
there lies certain essentials to it which are the offer, acceptance, consideration and legal
intention.
 Company law – the company laws of the country regulate the manner in which the
operations of the business are required to be carried in. other than this it provides the
companies based on their forms the number of titles such as the separate legal entity,
perceptual succession, etc. the company law of the country also states the manner in
which the companies need to be incorporated as well as dissolved.
 Employment law – the said law stands mainly responsible for governing the relation of
the employer and employee which takes place within the organisation. Further one of the
major employment legislation of the country is the Employment Relation Act of 1996,
which also describes the rights, duties as well as the manner in which the work is to be
conducted of the concerned persons. This Act also underlines the several number of
statutory duties which the employer is bound to follow towards their employees(James
and Thomas, 2020).
P4. Formation of different types of business organisations.
There prevails several types of business forms where the activities of their management and
functioning differs from that of each other. The discussion of the said forms of business is as
follows -
 sole proprietorship – in this type of form the activities of the business are solely
governed by the owners themselves. Other than the owner is the one who is entitled to
have all the profits which results from the business and similarly stands responsible for

fulfilling the arising liabilities. The registration of this form of business is not a
mandatory condition and it totally lies on the discretion of the owner.
 Partnership – The Partnership Act of 1890 of UK is the primary legislation which states
the regulations regarding the working of partnership firms. It also entails the number of
rights and obligations which lies on the part of members of the firm. Moreover, in simple
terms it is an arrangement where two or more individual joins together bearing similar
objectives for the purpose of earning certain revenues out of it. The registration of this
type of form is a mandatory requirement.
 Private limited company – the major provision which governs the working of this form
of business is the Companies Act of 2006. it also entails the various legal titles to the
companies such as the title of separate legal entity , perceptual succession, etc. the said
types of companies are wholly owned by the private members and there lies the no
involvement of the government holdings in it(Kisi, et.al., 2020). The registration of
private limited companies is the mandatory requirement where it needs to be registered
by the house of companies following the certificate of incorporation by the registrar.
P5. Discuss the Funding and Management of the various forms of businesses.
The management and funding of each from of business from that of each other depending on its
type. The funding is addressed as the way in which the capital is introduced in the business
whereas the activity of the management is the one by which the activities of the business are
governed as well as regulated. For the very first form of business which is of the sole
proprietorship, its management is carried on solely by the owners themselves,. Moreover, the
acquisition of the funds is a simple process as they can easily managed by the way of
borrowings from the relatives, owners personal savings, small bank loans, etc. similarly the other
being the partnership firms, the management of the firms is equally carried on by all the
partners in a conjoint manner. Here the partners can act on their own or any one of them acting
on behalf of all, the determination of the same lies on the common discretion of the partners
themselves. Moreover, the modes of funding for this type of business are same as that of the sole
proprietorship. The option of crowdfunding is also one such way. Further the other being the
form of private limited company, some of the basic ways in which the capital can be acquired
for this type of companies are categorised into heads which are the external and internal sources.

The introduction of the capital in the form of deposits by the internal members of the company is
addressed as the internal source of funding(Nicolini and Pedrazza, 2019). Whereas the
borrowings from banks in the form of loans, venture capital and the angel investors are
considered as the external sources of funding. Moreover, the other being the form of public
limited company, here the primary way in which the capital can be acquired is by the way of
trading in goods and services. Other than this the issuance of share in the market place open to
general public is also one method of introduction capital in business. Furthermore, the
management of the company is said to be look after by its board of directors whereas owned by
its shareholders.
P6. Suggest appropriate legal solutions to resolve the areas of dispute.
Mainly the two ways in which the disputes can be resolved are of the litigation which
comprise of the court proceedings and the other is by the way of ADR methods which is the way
of out of court settlement. The alternate dispute resolution is a way by which the conflicts of the
parties can be solved while having the aid of third party who acts as an impartial one. Moreover ,
the method of ADR in itself comprise of certain types of forms which are the arbitration,
mediation, negotiation and conciliation. The very first being the method of negotiation, is more
of an informal nature, where the discussion is carried out between the concerned parties in
presence of the negotiator. Moreover, the mediation is process where in the presence of the
mediator the parties discusses the subject of conflict for the purpose of reaching at conclusion by
the common consensus. Furthermore, the other being the process of arbitration, is said to be of
more formal nature as compare to the other forms. Here the disputes are resolved in the presence
of the arbitrator who guides both the parties in am impartial way(Robison, 2021). Also the
decision made by the arbitrator, which is also referred by the name of award stands binding on
the concerned parties.
Moreover, the decisions made by all the said forms enjoys the different type of status as
in mediation, the decision made by the mediator is not of binding nature whereas in arbitration,
the award creates a binding effect. Similarly in the case of negotiation, the decision made by the
negotiator in itself at the very first stage does not create binding effect but later on the same can
be made enforceable by the common consensus of the parties while listing the same in the
contract.

CONCLUSION
From the said report it can be summarised that the business laws of the country play a major role
with respect to the governance of the various forms of the business. They also entails the number
of rights as well as the obligations which arise on the part of concerned individuals. It also
elaborates the way in which the activities of funding as well as the management of the business
are required to be carried out. Moreover, it also sates the various form of alternate dispute
resolution while also recommending the best suited legal option for the given scenarios.

REFERNCES
Balzer, B. and Schneider, J., 2021. Managing a conflict: optimal alternative dispute
resolution. The RAND Journal of Economics, 52(2), pp.415-445.
Bell, J., 2018. Sources of law. The Cambridge Law Journal, 77(1), pp.40-71.
Cappellino, A., 2020. How to Choose the Right Business Organization Form.
Gealfow, J.A., 2018. Case Law and its Binding Effect in the System of Formal Sources of
Law. The Journal of the University of Latvia (Juridiskā zinātne/Law), (1).
Graw, S., et.al., 2019. Understanding business law. LexisNexis Butterworths.
James, N. and Thomas, T., 2020. Business law. John Wiley & Sons.
Kisi, K.P., et.al., 2020. Alternative dispute resolution practices in international road construction
contracts. Journal of Legal Affairs and Dispute Resolution in Engineering and
Construction, 12(2), p.04520001.
Nicolini, M. and Pedrazza, G., 2019. Sources of Law. Constitutional Law in Italy.
Robison, L., 2021. Alternative Forms of Business Organizations. Financial Management for
Small Businesses, 2nd OER Edition.