Business Law Introduction: UK Parliament, Laws, Business Impact

This report provides a comprehensive introduction to UK business law, beginning with an analysis of the statement "Parliament is Sovereign" and a discussion of the various sources of UK law, including legislation, common law, and European Union Law. It explains the role of the government in the law-making process, outlining the stages from the first reading to Royal Ascent, and how statutory and common law are applied in justice courts. The report further illustrates the potential impact of company, employment, and contract law on business operations. Additionally, it explores the nature and formation of different types of businesses, differentiating between unincorporated and incorporated businesses and examining their management, funding, advantages, and disadvantages. Two case studies are analyzed to demonstrate the application of legal principles in organizational and dispute resolution contexts. The report concludes with a summary of key findings and includes a list of references.

BUSINESS LAW

INTRODUCTION...........................................................................................................................1
SECTION 1.....................................................................................................................................1
TASK 1............................................................................................................................................1
Discus the meaning of this statement “Parliament is Sovereign” and discuss the various
sources of UK Laws.....................................................................................................................1
Explain the role of government in the law-making process and how statutory and common law
are applied in the justice courts...................................................................................................2
Illustrate how company, employment and contract law has a potential impact upon business...4
TASK 2............................................................................................................................................4
Nature and formation of different types of business...................................................................4
Difference between unincorporated and incorporate business....................................................5
How they are managed and funded.............................................................................................6
Advantage and disadvantage of a partnership and that of a company.........................................8
SECTION 2.....................................................................................................................................9
Solve disputes of different cases with appropriate case laws with legal solution.......................9
CASE 1........................................................................................................................................9
CASE 2......................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business law is expressed as the collection of legal requirements while forming,
operating, dissolving and engaging with any of the business activities. This law has a crucial
while operating with legal transactions (Allen and Kraakman, 2016). Several branches are there
under business law which makes this law effective and helpful for obtaining better results. In this
respective project , there will be description about the sovereignty of parliament of UK and how
it is started every year. Two different cases will also be solved in which first one will be
connected with organisational sector where as second case will related with solving legal
disputes in suitable manner. Even various example related to similar past cases will also be
considered in this respective file.
SECTION 1
TASK 1
Discus the meaning of this statement “Parliament is Sovereign” and discuss the various sources
of UK Laws
Parliament of UK has its own rules and regulation which is needed to be considered by
everyone as it tells that what are the legal terms and regulation which is needed to be followed.
In present scenario, there are number of nation where if any of the decision are taken by the
House of Parliament is not suitable for general public then they have the rights to raise question
and change the policies but while talking about the parliament of UK no one has that sort of
rights as it is considered that any of the decision taken by Parliament House will be right and
even helpful too. The decision which they takes are required to be supposed that they are right
and they have been commenced just for the welfare of everyone. The Sovereignty also allows
them to take best possible decision which are beneficial for any of the organisation or
individuals.
There is the huge role which is being played by Queen as if any of the law or policy is
required to be passed then it is necessary that her permission must be taken. If in any of the case
permission is not taken then it is not possible to enforce the law within the boundary of UK.
Every year Parliament is required to be started in the month of October and November, but it is
always started once the speech is delivered by the Queen. The most important thing which is
required to be considered is that each and every political party commences their agenda once
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speech is delivered (Jones and Lainez, 2013). The main thing which is needed to be considered is
that this speech is such power that every agenda is based on this particular speech.
The UK law has number of sources which helps to commence any of the new law
through which affective results can be obtained. The detail information about all of those source
is mentioned below:
Legislation: This is the major source of UK when it commences to source of law. There
are number of people who come together just for the common purpose. In commencing law
through legislation process it is said that member of parliament shows their support in it. Here,
they try to takes the suggestions from general public and then they commences the law which has
been very effective for maintaining suitable environment in UK.
Common law: Here, it is said that judges have the authority to take any of the decision
for making any of the law. They decide it as per the situation that how any of the law can be
helpful if it would be commenced. The main benefit of this law is that it is commenced as per the
requirement of situation to make the situation control.
European Union Law: This is one of the most suitable source which have the knowledge
and idea that at what time any of the new law is required to be commence. This is one of the
most oldest source for the UK premisses and even there are thousands of laws that has been
commenced by EU law (EU law in United Kingdom. 2017). The main benefit of this source is
that it cover almost all of the sector and specially commercial and that is the main reason that
companies of UK have been performing well within the market.
Explain the role of government in the law-making process and how statutory and common law
are applied in the justice courts
The government is the one which has the main role to be played for effective legislation
system. Government has huge responsibility which is needed to be fulfilled and for that they are
required to check each and every information in detail so that new laws and policies can be
proved as effective. Whenever government commences the law, they are required to consider the
fix pattern as it is helpful in obtaining the required result because every steps check the proposed
bill in best suitable manner.
 First Reading: This is the step where member is needed to check bill and its basis
requirement to find whether it is effective or not. If all of the member are satisfied in it
then it is further send to the next step (Vagts, 2015). Also, they gives the title to the bill.
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 Second Reading: This is also crucial step because MP's need to vote to check that all of
the member are agreed or not and if they are not agree then they further conduct the
voting process. It is one of the stage where where lots of complication can be found
because it is always said that argument with opposition party is never a easy task
(Kapottos and Youngner, 2015).
 Committee Stage: In this stage, bill is transferred to House of Common as they are the
one who represent the House of parliament (Johnson, 2013). They check the bill in detail
and if they think that this bill will not work as changes are required to be done. If there is
any requirement then they further transfer it to report stage for amendments.
 Report Stage: In this stage, changes are done as per the instruction given by the member
of committee stage and further it is send for the next process.
 Third Reading: Once bill is passed from report stage, it is presented back in House
where member of house of commons needs to do debate. In addition, voting process is
done in which it is necessary that resolution should be passed to transfer it further.
 House of Lords: All of the above stage must approve the bill to reach up to House of
Lords. They are the one who takes the final decision on bill that whether it is acceptable
or not and if any of the doubt arises then they do changes in it.
 Royal Ascent: It is the final stage in whole of this process. Here, it is necessary that bill
must be approved as per the guidelines of Royal Ascent Act 1961. The approval must be
be given by monarch.
All of this process are needed to be followed before commencing any of the new else,
there is no possibility that new laws and regulations can be formed. It is said that this process has
to be done by the government themselves because their effort plays the crucial role in it. The
main thing which is needed to be understood is that House of Lords and House of Commons
have to put equal efforts so that they can commence better and sustainable laws and policies.
How statutory and common law are applied in the justice courts.
The decision making process is one of the most difficult task for any of the justice court
because it is one of the most difficult task which is needed to be done. Here, justice court takes
the help of statutory law and common law to declare any of its decision because it saves the time
and even decision are also helpful in it. Whenever any of those case arises where terms and
condition are written about the law the justice court takes the help of statutory law and if any of
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the legal laws and conditions are not prepared then in that condition court takes the help of
common law where they commences new law and declare their decision of own.
CASE LAW: King v. Burrell
This was one of those rear cases where it was selected that each and every individual
have the right that they must not be discriminated and this decision was totally based on statutory
law.
CASE LAW: Joseph v. Setal
In this respective case, the panel of judges decided that there is no legal terms which has
been described and because of that judges gave the decision of own by enforcing new law and
regulation (Shackelford, 2014).
Illustrate how company, employment and contract law has a potential impact upon business.
There is not a single enterprise that don't have the knowledge regarding various law
which has the capability to show the effect on daily transactions of a business organisation.
Member who are incorporating the business should try to think and must understand the law so
that effective results can be obtained. Some of the laws and its major impact on business
organisation are:
Contract law: It is one of the most important law which tells that any of party which are
going to involve within the contract should be known that what the terms and condition which
they must do for effective results. Here, once contract deed is prepared then it is not allowed to
breach the term and condition and if any of the case company fails to perform then legal actions
are taken in which they can be sued and even compensate should be done as per the order of
court which has the negative impact.
Company law: The most important law for any of the business organisation is company
law which guides to take every single decision within the company for its welfare. This does has
the positive as well as negative impact on company because it one of the law which reduces the
revenue and shows negative impact (Jones and Lainez, 2013). The positive impact of company
law is that it doesn't allow the company to take any of wrong decision, if is applied in right
manner.
Employment law: It is helpful in creating or developing the health relationship between
employer and employee. The positive impact of this employment law on organisation is that it
binds employee's to work as per the given instruction till standard time formate per week.
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TASK 2
Nature and formation of different types of business
Business is always needed to be incorporated as per its actual requirement so that
required profit can be earned. It is necessary that whenever business is needed to be incorporate
the proper terms and condition must be read and after that legal formalities is also required to be
done. Some of the organisation and its legal way of formation is:
Corporation :- A corporations are different lawful entity that is created by shareholders.
Corporation allows your business organization to deduct taxes like individual but in this tax is
deducted twice both at firm level and the individual level (Vagts, 2015). If the owner of business
passes away in that situation also business will run continue as it enjoys the right of perpetual
succession. There are number of rules and regulation which are applied on corporation so it is
necessary that each steps must be taken in best possible manner. The legal way to incorporate
any of the corporation is:
 It is the responsibility name should be selected where it should not be matched with any
of the other firm working in the same market.
 Address is needed too for physical presence in the eyes of law.
 Then, there is the requirement of Memorandum of Association and Article of
Association.
 Before, preparing MOA & AOA it is necessary to select first shareholder and director for
the company because there are number of formalities which is needed to be done till the
date of incorporation.
 SIC code has its own importance which tells that how any of the work is required to be
acquire.
Sole proprietorship:- sole proprietorship is a type of enterprise that is owned and control
by one individual. In this there is no separate legal entity because business and individual
consider same. It is simply refers to the individual who owns the business and personally liable
for all its debts. It is not registered or incorporated and it is ideal for small and medium type of
organisation that is run and control by individual.
Partnership:- partnership refers to when business is run and control by two or more than
two persons. It a business that is drive by multiple owners and each of them is invested their
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money in it. The income of business is activated as owners income so once tax is charged on it
and in business all its partners are liable for the liabilities of the organisation.
Difference between unincorporated and incorporate business.
Unincorporated Incorporated
 In this individuals have liability to
meet any type of outstanding debts
personally.
 In this type of organisation there is
unlimited liability hold by owners.
 Sole traders and partnership is existed
in unincorporated form of business.
 They are not generally able to enter
into a contract in organisation name.
 In Unincorporated form of
organisation risk can be an equally
distributed.
 Unincorporated organisation mainly
has no legal separation in between
forms and owners and is not able to
sell shares (Frank and Bix, 2017).
 In this form of organisation members
have limited set of liabilities
(Buxbaum and Hopt, 2013).
 Incorporated body can enter into
contract in its own right.
 As in this all the members are treated
same thus risk can be equally
distributed.
 They have limited liability and include
Private Limited companies and public
limited companies.
 Owners and business are mainly
separate legal entities in incorporated
form of organisation.
 If any debt occur in this then
shareholders are liable as per
according to their shares and the
amount which they invested.
 Incorporated business organisations
are separate legal entity and can sell
shares.
How they are managed and funded
There are different types of business organisation who perform their activities to achieve
their different set of goals and objectives in an effective manner. In order to facilitate business
operations in the well effective manner there is a requirement of funds thus, in order to fulfil
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fund requirements it is essential for organisation to evaluate major source from which they can
gather funds and can further acquire fund when there is an additional requirement. With the help
of this they can effectively able to accomplish their goals and objectives in a define manner and
can conduct their functioning in smooth process (Heminway, 2013). Mentioned below there are
different types of organisations along with the manner with the help of which they can manage
their fund is elaborated in a well defined manner:
Sole proprietorship:
Sole proprietorship is a form of business organisation which is run and managed by sole
individual in order to effectively conduct business operations. In sole proprietorship owner is
required to understand different types of government benefits that are given to them which, is no
requirement of legal documents. In addition with this in sole proprietorship there is no further
need of Manpower to accomplish activities as business as this business is run on small ground
that can be effectively managed by owner themselves. This form of business organisation does
not require large amount of fund to incorporate and further there is no need of additional fund, if
in a case any future requirement of funds arise then owner required to manage this by their
personal assets.
Partnership:
Partnership is a form of business organisation in which more than one individual works on a
common goal in order to earn a large amount of profitability (Shackelford, 2014). In this
partners are divided as per according to their shares invested that further facilitate them to share
risk and profit. Partnership is an organisation in which there is no requirement of lengthy
process. In addition with this in the stage of incorporation partners are required to consider
partnership deed and must register themselves in Partnership Act. In this authorised person is
required to manager responsibility in this form of business organisation fund can be effectively
manage and further requirement of funds can be fulfilled by financial institutions, bank loans etc.
Corporation:
Cooperation is one of the most popular business organisation form in which there is a
requirement of maximum number of investors as in this there are more workload as compared to
other business organisation that are only managed by maximum number of investors. It is mainly
a lengthy process in incorporation that takes excessive amount of time. In this form of business
organisation partners are required to prepare memorandum of association along with article of
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association in order to effectively conduct their business operation (Kapottos and Youngner,
2015). For managing business activities directors, company secretaries, shareholders and
managers are required to ensure all the legal bindings are done in proper and systematic manner.
In this form of business organisation funds can be managed by peer to peer lending, issuing of
shares bonds and debentures, bank loans etc.
Advantage and disadvantage of a partnership and that of a company.
There are different types of organisation those who engage in the process of operating their
business activities for the purpose of gaining profitability. These entire business organisation
somehow have different types of advantages and disadvantages which are required to be
considered in order to initiate business functioning (Johnson, 2013). As to effectively conduct
business operations in a well suitable manner by considering advantages and disadvantages
business organisations can effectively able to facilitate their operations in a well-defined manner
that may further lead towards accomplishment of profit ratios in a best effective manner. Further
with the help of this they can also able to understand their legal rights that may lead towards
conducting of business operations in a define manner. Mentioned below there are some certain
advantages and disadvantages are described in an elaborated manner of different types of
organisations:
Types of Business
Organisation
Advantage of the
Organisation
Disadvantage of the
Organisation
Sole Proprietorship Sole proprietorship is a form
of business organisation in
which day to day activities can
be manage in an effective and
smooth manner as in this
decisions are made by owner
themselves.
In sole proprietorship legal
rights are not given which is
related to the capacity of to sue
and be sued.
Partnership Firm As there are more than two
partners in a partnership firm it
Along with this partnership
firm also do not allow with the
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may lead towards generation
of new ideas with the motive
to earn large base of
profitability (Davidson,
Forsyth and Knowles, 2015).
right of to sue and be sued on
partnership firm name.
Joint Venture In joint venture there are more
number of organisation
associated to perform
objectives thus, in can be
accomplished in an easy
manner further resources are
available in Quantum level.
As in joint venture there are
more number of organisations
perform their operations
towards a common goal there
is a probability of conflicts that
may lead towards decrease in
performance efficiency and
further lead organisation
towards facing loss.
Corporation In this form of business
organisation there are legal
rights which are allotted to
cooperation in which they
allow to sue and be sued
(Beatty, Samuelson and Abril,
2018).
In corporation form of
business organisation there are
chances to incur unnecessary
cost in the initial stage of
formation of organisation.
SECTION 2
Solve disputes of different cases with appropriate case laws with legal solution
CASE 1
Winding up :- winding up refers to liquidate the company to pay their liabilities. The
company will stop doing its business and its purpose is to sell off assets, pay off creditors, and
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