Business Law: Legal Systems, Legislations & Solutions to Problems

This report provides a comprehensive overview of business law, focusing on the UK legal system and its impact on business organizations. It begins by discussing the sovereignty of the UK parliament and the various sources of law, including Acts of Parliament, common law, European Union law, and the European Convention on Human Rights. The report clarifies the role of government in the law-making process and how statutory and common law are applied within justice courts. It further explains the importance of company, employment, and contract law, highlighting their major impacts on business organizations. The report also elaborates on the nature and constitution of various types of businesses, differentiating between incorporated and unincorporated businesses with respect to their funding and management, and comparing the merits and demerits of partnership firms to companies. The document concludes by referencing relevant sources and emphasizing the significance of business law in commercial decision-making.

BUSINESS LAW

Table of Contents
s........................................................................................................................................................2
INTRODUCTION...........................................................................................................................1
SECTION 1 – Nature of Legal Systems & Legislations Impacting Businesses..............................1
TASK 1............................................................................................................................................1
Discuss about Sovereignty of UK parliament........................................................................1
Explain about number of sources of law available in United Kingdom.................................2
Clarify about role of government in law making process and how statutory and common law
are applied within justice court..............................................................................................3
Explain about the importance of company, employment and contract law with its major
impact on business organisation.............................................................................................4
TASK 2............................................................................................................................................5
Elaborate the nature and constitution of various types of business.......................................5
Differences between Incorporated and Unincorporated business with respect to their funding
and management.....................................................................................................................6
Some of the merits and demerits of a partnership firm in comparison to company. .............8
SECTION 2– Legal Solutions To Business Problems.....................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
s

INTRODUCTION
Business Law is the branch of law which does have the responsibility to manage number
of work connected to commercial sector. There is huge importance of business law as it gives
idea and ways that what types of decision are needed to run any of the particular business. There
are number of branch under business law which gives knowledge about different department.
This file is based on different fields which is related to commercial law and regulation. Some of
the topics like law making process, sources of UK law and process of formation of a company
will play must significant role within this file(Acemoglu and Jackson, 2017). Additionally, two
case studies will be solved in it where recommendation will play the most important role in this
whole project.
SECTION 1 – Nature of Legal Systems & Legislations Impacting Businesses
TASK 1
Discuss about Sovereignty of UK parliament.
The Parliament House of UK is always known for its sovereignty where every plans and
policies are formed and even no one does the question against it. The decisions which are being
taken by the parliament house are non changeable and must be followed. The most important
thing which is necessary to be understood is that they are one who has been working for the
betterment of the nation. In UK, they are the one who decides who should be delegated what
types of responsibility and that authorised department is not allowed to ask a cross question with
anyone. They does have the right to enforce any of the law or even to end them with immediate
effect. If any of the body takes any sort of decision, then it becomes necessary that they must
take the final approval from the Parliament House which shows that how important role does it
plays within the UK premisses(Aylott, 2018) (Burns, Mullet and Bryant, 2016).
Every year queen of UK delivers the speech within the house of parliament and that does
have its own importance because it helps to sets the agenda for the ruling government parties and
even for opposition parties as well. This speech is also understood as the opening season of the
parliament house. In speech, it is focused that what are the main areas or department where
government will try to focus for work throughout the year.
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Explain about number of sources of law available in United Kingdom.
In any of the nation, it is never an easy task to commence any of the law but still it
becomes important to find the relevant sources that can give there best to commence finest law
so that chances of errors can be reduces. In the similar form, the government of UK has given the
power to commence any of the law within UK has given to four different sources which has been
making the work easier and fast. The detail description about the different sources are explained
below:
Act of Parliament: It is the most reliable source of UK as member of parliament has to
follow the detail procedure to pass any of the law. Within this sources, all of the areas are
covered. This is one of the source in which people are not allowed to raise question just because
of the sovereignty of the parliament house. In this source of law, it is necessary that final
approval should be taken from Queen. They does have the power to overrule or change any of
the law as per the requirement of situation(Cain, McKeon and Solomon, 2017).
Common Law: Even this is also one of the main source where law and regulation are
formed on the basis of case so that any of those area which seems to be weaker can be cover and
much better results can be achieved in future. Common law has delegated the power to judges of
higher level of court to form law which should be based on the situation which does arises.
European Union Law: This is the backbone of UK law because they does have the tag
to form the maximum number of law within UK so that peace can be maintained and equal rights
can be provided. This is the source which do commences the laws and regulation for around 25
countries situated within Europa. This mainly commences the laws and regulations which are
connected to commercial department.
European Convention on Human Rights: It has been also playing the important role
within UK as it do covers the laws and regulations which are related to human rights. It has been
working since very long period of time where they have commenced number of laws and act that
ensures that human rights must be protect.
These are some of the sources in UK which has been working really well by trying to
commences the suitable laws and policies. This laws are even helping in the commercial sector
to take any of the business decisions.
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Clarify about role of government in law making process and how statutory and common law are
applied within justice court.
The task of making the law is never an easy and because of this the parliament house has
passed the law which clearly says that any of the government ruling party must follow the detail
procedure to commence any of the law which has been explained below:
The parliament house has been divided into two parts i.e., House of Commons and House
of Lords. At first, it is the duty of government that they must prepare the bill so that further steps
can be taken that whether bill is correct or not or does it requires any sort of changes or not. The
whole process has been divided into two parts where every steps are needed to be conducted by
both HOC and HOL. When bill is ready, it is needed to be drafted for first reading (Cuervo-
Cazurra, 2016).
First Reading: This is the primary stage where title is required to be given by the member
which should be based on the points which are written in the bill. After they hand it for next
process.
Second Reading: In this step, it is the duty of the member that they must do the general
discussion on the bill that how the bill is and does it have the strong points which is beneficial
for the betterment of UK or not.
Committee Stage: This is the most important stage in the whole process because member
has the responsibility to do the detail discussion on the bill and after that they are required to
points out the heading or sub-points which do carry the issues in it(Cuniberti, 2016).
Report Stage: When bill reaches to report stage, they are needed to understand that they
must do some of the changes which are pointed out by the committee stage for the betterment of
bill so that further processing can be done on the bill.
Third Reading: This is one of must important stage where member has the responsibility
to do voting on the bill just to pass it, just to find the actual percentage that how many of them
are satisfied with the bill.
House of Lords: When bill arrives into House of Lords, all of the above steps are need to
be done by the peer member in order to find the value of the bill that can be obtained in the
upcoming period of time.
Royal Assent: This is the process just for the formalities as signature on the bill is only
required to pass. The approval is needed to be obtained from Queen of UK(Davies, 2017).
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How statutory and common law are applied within justice court.
In justice court, there is the requirement of both common law and statutory law because it
helps to identify the matter of case and according to that they can help to declare the result in any
of the situation. In case of Statutory law, all of the legal terms and laws are explained that must
be followed and in case if any of the person fails to follow the rules and regulation, then they are
liable for the punishment and for that justice court has been given the responsibility. The justice
court find the matter and then as per the laws and policies it declare the result. In case of
common law, justice court has to work hard on the case because they are needed to understand
the situation of the case and after that they also need to search for the past case and to declare the
relevant decision. If similar cases has been not discussed then new laws and policies can be also
formed(Gabaix, 2016).
Explain about the importance of company, employment and contract law with its major impact
on business organisation.
The laws are of different types where they do have the different nature and styles and it is
necessary that all of them must be followed. In any of the situation, all of these laws does have
the positive as well as negative effect. There are some of the laws and regulations which does
have the huge importance for any of the business organisation which are explained below:
Company Law: Company Law is the law governed by Companies Act, 2006. It has
great importance for any company because, it is compulsory to follow the guidelines in each and
every steps. It plays supportive role for business organisation for taking business decision which
shows that how important company law is in current scenario. The negative impact of company
law is that while working according to the laws and policies excess amount of expenses incur
which increases the burden for management of a company. Also, penalty for any mistakes
committed by organisation is very high, that gives huge trouble to the person who operates
business activities(Hann, Nash and Heery, 2019).
Contract Law: It is defined as law which takes the responsibility of every single contract
that are legally formed. The main things which is found within this law is that now one is
allowed to breach it, once they enter into it. The main aim of this law is that it makes sure that
there is offer and acceptance in any of contract to make it legal. Also, voidable types of contract
are never entered into court room as there is no strong evidence. For example: If ABC Ltd wants
to enter into crack any of the important deal but it is necessary for them to understand that they
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are not allowed to break the rules as they will required to follow the complete procedure to crack
it. But, all of this process are lengthy and time consuming due to which sometimes it might have
negative impact too.
Employment Law: The employment legislations are the provisions which gives the rules
the responsibilities and duties of both employer and employee. This particular legislations sets
out the various standards that how any business activities needs to be managed or carried out. It
is required on part of every business to comply with the given regulations of employment laws In
order to ensure its proper and smooth functioning. There are number of concerns which are
carried out in accordance with the legislation out of which one can be the minimum amount of
pay which any employee is entitled to get. Further there lies a number of perquisites which
should be rendered to every employee who has been working in the company as the failure of
same can impact the reputation which is image of the company(Hardman, 2021).
TASK 2
Elaborate the nature and constitution of various types of business
Every person who wish to start a new business while investing his capital must have a sheer
knowledge about the availability of different types in which the business can be formed. Also it
is required for owner to have knowledge as it helps in overcome the compliance work with the
running business legislations and also results in better decision making. Some of the major forms
of business organization are discussed as follows:
Sole Proprietorship: These types of business are conducted on a small scale and are
being operated in a specific limited area. As this requires a small amount of capital depending on
its decided type, therefore there exists a minimum amount of legal responsibilities which the
proprietor is required to comply with. The said business is registered on the name of his
proprietor and the affairs of the business can be solely managed by him. Any person who wishes
to incorporate the sole proprietorship type of business then he only needs to get it registered in
companies house and other than that there stands no such requirements (Ntuli, 2018).
Partnership Firm: it is a type of business organisation where two or more people
having having same objectives comes together in order to have profits by investing their shares
of capital. All the said affairs related to both the firm and its partners are governed by the
document named as partnership deed which specifies every single details including, the share of
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capital invested to the share of return of profit. Seeing the current trends the most commonly
formed types of business are of partnership firms. The said deed of partnership is required to be
registered in order to have effective results depending on the same. As all the things have both
merits and demerits here also lies some disadvantages on the part of partnership firms, that it
does not enjoy right to sue any of the partners on its own name(Onyoin and Bovis, 2021).
Public Limited Company: In this type of business it requires minimum seven number
of people to get it started by paying the required minimum capital. Also the company which is
not private in nature is said to be public limited company. These types of companies are need to
be operated at a large scale and requires a group of efficient members in order to earn maximum
profits. Further, as the money of people is involved in the process so there lies a obligation on the
part of company to provide the accurate knowledge of the affairs of the company to the public.
Also it is required for people to know as in order to if they wish to invest in the same. The public
limited company also enjoys the right of perceptual succession. advantages of public limited
company can be continuous growth of business, enough capital can be raised with the help of
issuance of shares and the said funds can easily be transferred to more potential investors, the
other major benefit which the public limited company enjoys is of the access of additional
funding other than the share capital(Picciotto, 2017). The process of formation of such company
are as follows-
 The suitable name must be decide for the company and that too which is totally different
from all the other existing names of the companies.
 Article of association and Memorandum of association must be formulated in order to
start a company.
 There also exist a requisite of first director and shareholder.
 When all of this procedure is completed then the nominated team is also needed to
acquire the SIC number.
 In the last, documents are required to be put forward in companies house.
Differences between Incorporated and Unincorporated business with respect to their funding and
management
Majorly in accordance with the given legislation of companies Act, all the existing
companies are bifurcated into two major categories that is incorporated and unincorporated.
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First being the incorporated company , here they are considered as one of the most flourishing
types of business reason being they enjoy various opportunities to conduct their business which
ultimately results in maximum earning of profits. Also it is the only business entity which have
the right to sue in his own name. Whereas, in case of unincorporated company, the business
activities are said to be operated at a minimum level where the invested amount of capital is also
very less as compared to the earlier one(Png, 2017) further, below mentioned are some of the
differences which have been explained with respect to incorporated and unincorporated
companies and how they are being funded and managed.
Basis Unincorporated Incorporated
How it is managed These types of business
organisation are managed solely by
the ones who has invested in it.
Here these businesses are
always managed by its Board
of Directors, Company
Secretary, Shareholders etc.
How it is funded There lies very few instances where
an additive investment is required.
But if there arises such
circumstances then in such case the
option of taking helps from, bank
loans and credit card is always
available in the hand of company.
The business enterprises who
have the dominance to increase
the amount of investments with
the help of other available
sources. The major sources
which are at option to the
company are debentures,
shares and PFI.
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Some of the merits and demerits of a partnership firm in comparison to company.
First being, merits of company over partnership firm are as follows-
 all the major decisions with respect to different departments of the company are need to
be taken in a very organised form whereas in case of partnership firm no such clause
applies.
 For any partnership firm, at some point of time, can become a tedious task to recover
from the acquired losses but for the companies there exists some possibility to recover
from the same.
Demerits of Company on over partnership firm.
 The company needs to face a high burden of compliance of legal documentation where
partnership firms are escaped more from this concern.
 The absence of double taxation policy is one of the major benefit on the part of
partnership firm whereas in case of company it is required(Poncibó, 2017)
SECTION 2– Legal Solutions To Business Problems
 Alternative Dispute Resolution: It is the process where disputes are being resolved with
the method other than directly going to the courts is known as alternative dispute
resolution. The said process of ADR is widely used in many situations as one main
reason being it involves the lesser period of time. Some of the forms of Alternate dispute
resolution are as follows-
 Negotiation: The method of negotiation is used where the possibility arises that the said
issue can be resolved outside the court while going for the idea of negotiation. The
involvement of parties in the process should be of voluntary nature and they themselves
are required to show up for the process.
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 Mediation: In this form of ADR, the process involves the third party, who is known as
the mediator. Where he is required to act in an impartial way, and responsible for
understanding the whole scenario in order to come to the conclusion.
 Conciliation: If in case there is the disagreement between the parties with respect to the
terms and conditions of written agreement then conciliation is one of the process that can
proved to be effectual to sort out any of the said difficulties. This process is simple, easy
and less time consuming (Scott-Patel, 2019).
 Arbitration: Further in Arbitration, an arbitrator who is an impartial outsider decide
between the two claims of the parties. The arbitrator makes a stern conclusion on the
facts stated by the parties and acts like a judge. Here the parties in prior can decide the
applicability of the award, whether it will be legally binding or not.
They can there by used and managed that they can apply arbitration as by choosing the
independent arbitrator who will manage the work and will collect all the evidence and give the
proper decision.
The role of union is mainly to resolve all the workplace issues and their manages all the
resolving all the voices through which the employees generally manage and negotiate. It focus
on all the workplace areas through which they maintain the workplace safety regulation.
Ombudsman generally are the individuals who manages all the work and try to resolve all
the issues through which the general matters and the determining options are being given. their is
applied that it focus on resolving all the issues and the problems which are being raised between
the parties.
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CONCLUSION
It is quiet evident for every enterprise to comply with the business laws which is
considered as the core legislation with respect to the operation and management of any business.
Every existing company needs to abide by the said legislation in order to ensure its smooth
functioning. Also in order to get its legal existence, it is required by every company to follow the
given process of formation. Further this report concludes that irrespective of the type of parties
whether it is a firm or an individual, the conflicts between the said parties can be resolved with
the help alternative dispute resolution rather than directly going to the doors of the court.
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