Business Law Unit 7 Report: UK Legal Systems, Contracts, and Cases

This report provides a comprehensive overview of UK business law, beginning with an introduction to the legal system, its sources, and the role of government in lawmaking. It differentiates between legislation, regulations, and standards, analyzing their potential impact on businesses. The report examines various types of business organizations, their legal formation, management, and funding. Part 2 delves into contract law, employment law, and company law, offering legal solutions to case studies. It provides justifications for the advice given, compares the effectiveness of different recommendations, and evaluates appropriate legal solutions against alternatives. The report concludes with a synthesis of the key findings and recommendations, supported by references.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1. Discussion about legal system along with sources of law, role of government in law-
making and how statutory and common law is applied to businesses........................................3
2. Evaluate the effectiveness of the legal system in terms of recent reforms and developments
along with strength and weaknesses...........................................................................................5
3. Differentiate between legislation, regulations and standards to analyse potential impact
upon business..............................................................................................................................5
4. Impact of different types of law upon business organisation.................................................5
5. Explain how different types of business organizations are legally formed............................6
6. How different types of organisation are managed and funded...............................................7
PART 2 ...........................................................................................................................................8
1. Brief Overview of Contract Law, Employment Law and Company Law..............................8
2. Salient Legal Points of Each Case..........................................................................................8
3. Suggest an Appropriate Legal Solutions to Each of the Problems.........................................8
4. Provide Justification for the Advice and Solution Given........................................................9
5. Compare and Contrast the Effectiveness of these Recommendations Given in Presentation 9
6. Evaluation of the Appropriate Legal Solutions in Comparison with Alternative Legal
Advice.........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Business Law in UK governs various business organisations and how these organisations
will carry their business activities. Business law is basically civil in nature. Business law is
responsible for the smooth functioning of all the business transactions. It majorly deals with the
“contracts formed in business”, “hiring the staff” and “manufacturing and sales of goods”. While
starting or winding up a business in UK, many formalities has to be done by the owner of the
organisation and for this the legislature has passed certain legislations. Things to be covered in
this file is based on role of government in law making, sources of law. Further in this file various
organization is being covered with there management and formation. In the legal solutions has
been given regarding scenario.
PART 1
1. Discussion about legal system along with sources of law, role of government in law-making
and how statutory and common law is applied to businesses
Law is one of the most efficient element of society that is being established in order to
maintain discipline and control rate of crime within a society. These law are being formed
keeping mind the basic aspects existing within society like crime and wrong committed. Laws
come into existence due to sources that has provided need for its formation. Further sources are
being explained as follows:
Legislation: These are one of the most important source of law which are present in
written form. Under this two houses are there which are House of Lords and House of Commons.
Both these houses comes in parliament within it an discussion takes place over the bill presented.
Only after this discussion an bill can become permanent law (Thielborger and Ackermann,
2017).
Common Law: It is also one of the most important source of law in which judgement
passed by the judges within an landmark case is used. These are being used as under similar kind
of case that has come into existence in near future. It reduces complexity of making new law.
Law Commission: Such commission is being as per the situation under which an law
applied upon society has been impacting in negative manner. It the responsibility of commission
to give an report that contains all important points required to be amended within an particular
formed by parliament.

Treaties: They are that kind of legal agreement that has been formed between two
countries in order to conduct trade at global level. These treaties are justified as per the
regulations of international law.
Parliament has been given highest authority over law forming in UK. It is there to make
concrete law by providing an concrete framework to apply law all over the country. In this
discussion takes place in House of Lords and House of Commons. It is responsible to examine a
bill in detail. Further the process is being explained inn detail as follows:
Stages of law making
 Bill: This is considered to be an draft that is being presented in the parliament. In this
proper structure has been given over an law that has to be bough into existence also an
justified reason is mentioned for its formation. Bills are of two major types public and
private (Ngai and et. al., 2018)
 First Reading : This is the very first stage in which only presentation is done of the bill.
 Second Reading: As per this stage discussion is taken place over the bill and voting is
done through whip system.
 Committee Stage: In this stage bill is being presented in House of Commons and
amendments are suggested if required.
 Report Stage: In this stage amendments is being done over the bill that is being
presented in the house and voting is done again.
 Third Reading: At this stage bill is presented with amendment and again voting is done.
 House of Lords: Bill is presented in House of Lords after following above step and then
bill is passed for Royal Assent.
 Royal Ascent: It is the final stage in which only signature of Monarch is required.
There are two basic law that has been given to be applied in the court and they are
common law and statutory law. Both these laws are applied as per case presented. These are
explained in detail as follows:
Common law: In this judgement is being passed by judges under an landmark case and
is being used in future as a law in similar case. These are presented in the form of report and all
detail are explained in it.
Statutory law: These are concrete laws that are being formed after following proper
procedure. It is being applied in the court for obtaining of concrete judgement in an case.

2. Evaluate the effectiveness of the legal system in terms of recent reforms and developments
along with strength and weaknesses.
Legal system of UK has been changing form time to time and has formed a proper
judiciary under which courts are being given power to pass an judgement. As per the judiciary
Supreme court is highest court of appeal and after that high court comes that is divided into three
parts that is Crown court that deals with criminal cases and court of appeal that deals with civil
cases. After this family court is there that deals with all kinds of family issues with marriage.
Also laws has been amended like civil and criminal law in which both individual person, public
at large is covered. Loopholes still exist that has to be covered (Nersessian, 2018).
3. Differentiate between legislation, regulations and standards to analyse potential impact upon
business
Legislation: They are concrete laws which are being formed after following an
procedure. They are applied while forming an business organization. The main impact of
legislation is that it commences the law for business entity which needs to be followed.
Regulations: These are formed to make sure that administration work is done with
smooth and easiness. In an organization it is applied in administration department. The impact
of regulation on business entity is that it guides the organisation that how any of the potential
decision must be taken so that unnecessary penalty will not be imposed.
Standard: It is there to maintain ethical code of conduct and are formed keeping in mind
both regulation, legislation. It has a huge impact as it forces the organisation to follow laws and
regulation and even ensure that any of the those decision are not taken due to which standard of
work is reduced. If organisation fails to maintain standard then legal penalty can be imposed.
4. Impact of different types of law upon business organisation.
Laws are one of the most important part of an business organization that makes the
process of working smooth and more affective. Business related laws are being explained as
follows:
Contract law: These are the laws that deal with agreements that is based on financial and
trade work. It can be better understand with a statement all agreements are contract but all
contract are not agreement. All guidelines has to be followed by the parties given in an contract
(McEvoy, 2019). The impact of contract law says that organisation must be able to follow the
outlines of agreement while making any of the decision and failure in that respective department

will raise the point related to breach of contract. This can certainly create issues and unnecessary
penalty can be imposed.
Law of Tort: Under these laws society at whole is being covered and it deals lot of
aspects like negligence, tress pass and battery or assault. It only focuses upon functioning of
ethics and if not followed properly then legal issues may arise in an business organization which
can have negative impact.
Copyright Law: These laws are being used to deal with an issue of copying a work that
is being first done by some one else. An organization can use this to create originality in its work
and suing those involved in copying the work produced by it which means that copyright law has
an positive impact upon the organisation.
Employment law: In this law relationship between employer and employee is deal with.
Also rights and duties is also covered in it of employees. An organization is required to follow
these law to provide better environment to work in an organization. It forces employer and
employee to complete their part of work in any of the circumstance which is the positive side of
employment law.
5. Explain how different types of business organizations are legally formed
Business organization are that type of organization that is being dealing with all activities
that are related to trade or finances. Such organizations are being formed according to the
requirement of particular situation. These organizations are being set-as per the idea of person
forming business. Further they organizations is being explained as follows:
 Sole proprietorship: Such organization of business is being run by an single owner and
is responsible over performing all kind of management and things related to business.
The person running such organization are sole proprietor (Law and Perryman, 2017).
While starting sole proprietorship, it is crucial for investor to obtain national insurance
number and HMRC to perform business activity.
 Partnership: Such organization is being formed by two or more than two persons with
an common motive of earning profit. Partners are responsible for all problems that is
related to business. Documentation is done only when agreement exists between partners.
Two documents are necessary to start any of the partnership firm and they are HMRC
and partnership deed.

 Private Company limited by share: The form of business entity where interest of
limited person can be seen within the organisation. In this types of organisation, any of
the shareholder cannot be allowed to join the company. The legal process to start any of
the PCLS is that:
◦ Name & address is needed,
◦ List of members is essential,
◦ Memorandum of Association & Article of Association is also important.
◦ After completing all of this documents, file must be submitted Companies House
along with registration fees.
6. How different types of organisation are managed and funded.
Organisation Managed Funded
Corporation In order to manage daily basis
activity, it is important that
company must appoint
directors, company secretary
and member who can manage
all of the work.
Variety of option is available
for corporation to raise fund
such as Loan from financial
institution, shares, debenture
etc.
Limited Company This are company where role
of manager and member is
crucial.
It is among those entity where
bank loan, credit card and
investment made by the
members plays the important
role.
Social Enterprises Manager and founder has the
major role to manage
commercial activity.
Here, donation from
government, angel investors
and many more.
Co-operatives Manager, director and
members has to show active
participation.
Members make the
contribution to raise fund and
bank loan is also the suitable
option which is available.

PART 2
1. Brief Overview of Contract Law, Employment Law and Company Law
Contract Law: Contract law in UK governs the contractual obligations of parties and
decides the terms and conditions on which the agreement will work.
Employment Law: The employment laws must be followed while recruiting the
employees such as taking care of “Safety and Health Measures” of the employees and following
the “Minimum Wages Laws”.
Company Law: These laws are necessary for the “formation of any company”, “carrying
out their business activities” and “at the time of “dissolution”. The major governing law
regarding this is “ Companies Act 2006”. This law enumerates different legal obligations and
formalities related to companies (Davitti,2016.Flyvbjerg, 2017).
2. Salient Legal Points of Each Case
Case 1: This case deals majorly with contract law and employment law where there was
an agreement between the employee and employer regarding the deduction of salary for a certain
period of time because of the loss suffered by the organisation. Now as the employer's company
is in profit, the employee wants to take his salary and also want to claim for the previous years
also.
Case 2: This case is related to the contract law where the consumer has purchased an
internet connection from the seller but proper installation was not done in the proper time and the
amount was charged for that time period also when the installation was not done. Here the
analysis has to be done of various elements of contract law.
Case 3: This case deals with the company law where the company is unable to pay its
existing debts due to certain reasons. One of the creditor has filed for the compulsory winding up
and the advice has been demanded from the owner of the company to avoid the winding up
process.
3. Suggest an Appropriate Legal Solutions to Each of the Problems
Case 1: Here Gordan can obtain his wages for the year 2017 because now the company is
making profit but he cannot claim the salary for the year 2015 and 2016 .
Case 2: Here a valid contract was formed between the parties because there is presence
of “offer”from one side and “acceptance”. The Janet can avoid the payment to the Company.

Case 3: Here in this case Blackhorse Limited can avoid the winding up process by the
way of Alternative Dispute Resolution or through paying the debts.
4. Provide Justification for the Advice and Solution Given
Case 1: In the given case the contract entered was valid in nature because it includes all
the necessary elements of a valid contract. Now the company is in profit so the Gordan should
get his share of salary along with the commission for the year 2017 but he cannot claim the
salary for the year 2015 and 2016 because at that time he entered into an agreement with Fred
that he will no take his salary for these years because company was suffering loss.
Case 2: As the valid contract was formed, it was the obligation of both the parties that
they must follow the terms of the contract. As delay was on the part of the virgin Media that's
why Jnet is not liable to pay for the services he did not consumed.
Case 3: Here in the given problem it is suggested to adopt winding up process through
ADR because it is the most efficient and less time consuming process.
5. Compare and Contrast the Effectiveness of these Recommendations Given in Presentation
ADR is a most common and efficient way in solving such disputes in present times
because it is less time consuming and also gives a better judgement as compared to traditional
legal proceedings.
In Arbitration an arbitrator will be appointed and his decision will be binding on parties
and the decision will be generally non appealable.
In Mediation a mediator will be appointed but its the discretion of the parties whether
they want to follow his decision or not.
In Conciliation there will be an independent negotiator who will facilitate the
negotiations between the two parties.
6. Evaluation of the Appropriate Legal Solutions in Comparison with Alternative Legal Advice
Case 1: Here the conciliation can work where the negotiator can try to solve the issues
between employer and employee.
Case 2: Here mediation can work so that both the contracting parties can get a better
solution and finds a “win-win” situation for both.
Case 3: Here the arbitration proceedings should be adopted so that the amount would be
paid to the creditor and the winding process can be avoided.

CONCLUSION
The conclusion which can be drawn by above study is that how the business laws are
affecting business activities in different organisations. Business law are helping business
organisations as well as their customers in incorporation, carrying the day to day activities of
business and in dissolution of business. It was seen that some business organisations requires a
simple adherence of law and less formalities are required whereas others requires a complex and
lengthy procedure but what is same in all business organisations is that all of them have to follow
certain sets of rules or legislations related to business law for the smooth functioning.

REFRENCES
Books and journals
Davitti, D., 2016. Refining the protect, respect and remedy framework for business and human
rights and its guiding principles. Human Rights Law Review.16(1). pp.55-75.
Flyvbjerg, B., 2017. Introduction: The iron law of megaproject management. Bent Flyvbjerg,
pp.1-18.
Gerard, K., 2018. ASEAN as a “Rules-based Community”: Business as Usual. Asian Studies
Review.42(2). pp.210-228.
Law, P. and Perryman, L.A., 2017. How OpenLearn supports a business model for
OER. Distance Education.38(1). pp.5-22.
McEvoy, S.A., 2019. Teaching Law To Non-Law Students Through The Use Of Problems
Instead Of Cases. Business Education Innovation Journal.11(2).
Nersessian, D., 2018. The law and ethics of big data analytics: A new role for international
human rights in the search for global standards. Business Horizons.61(6). pp.845-854.
Ngai, E.W.T and et. al., 2018. Business sustainability and corporate social responsibility: case
studies of three gas operators in China. International Journal of Production Research.
56(1-2). pp.660-676.
Thielborger, P. and Ackermann, T., 2017. A Treaty on Enforcing Human Rights Against
Business: Closing the Loophole or Getting Stuck in a Loop. Ind. J. Global Legal Stud..
24. p.43.
Trad, A. and Kalpić, D., 2016. The E-Business Transformation Framework for E-Commerce
Architecture-Modeling Projects. In Encyclopedia of E-Commerce Development,
Implementation, and Management (pp. 733-753). IGI Global.
Vargas, M.J., 2018. In Defense of E. Merrick Dodd: Corporate Social Responsibility in Modern
Corporate Law and Investment Strategy. Business Lawyer.73(2).
Zarrabi, B. and et. al., 2017. Business education for plastic surgeons: a systematic review,
development, and implementation of a business principles curriculum in a residency
program. Plastic and reconstructive surgery.139(5). pp.1263-1271.