Business Law Report: UK Legal System, Business, and Regulations

This report provides a detailed overview of the UK legal system, exploring its various sources, including legislation, case law, and European Union law. It examines the role of the government in law-making, highlighting the interplay between statutory and common law. The report delves into the impact of company, employment, and contract law on businesses, emphasizing the importance of compliance. Furthermore, it assesses the effectiveness of the legal system, particularly in light of recent reforms and developments. The report also differentiates between legislation, regulations, and standards, clarifying their respective roles in the legal framework. Overall, the report offers a comprehensive analysis of the UK legal landscape and its implications for businesses, with a focus on ensuring legal compliance and adapting to evolving regulations.

Business Law

INTRODUCTION
Legal system is a process that helps in imposing different types of laws in the country.
These laws helps in governing and developing economy of the country by performing all the
activities in lawful manner. English legal system is one of the oldest and has evolved over the
years. Initially the legal system was initiated by royal judges on common law that has spread
over the years and termed as laws for the country. Establishment of the laws for the country is
based on information that has been collected from different sources. These sources are served as
an important means that helped in establishment of legal system for United Kingdom (Andenas
and Negra, 2017). Different laws are established for different sectors to deal with issues
generated in that particular area. Business law is established in UK to govern all forms of
businesses from their establishment to dissolution. Business environment has changed over the
years and business law helps in adopting these changes without getting into any legal
consequences.
In this project report legal system of UK will be explained with different sources of laws
in the country. Role of government in law-making with implication of statutory and common
law. Formation of different business forms and legislations and regulations followed by them.
Together with this different other laws a business organisation needs to follow while providing
various solutions available for disputes in businesses.
TASK 1
P1 Different sources of law in UK
In UK Parliament is the highest or law making authority for the country and fundamental
law is comprised of different sources that helps in formation of judicial scheme in the country
(Ball, 2015). There are mainly four types of law such as criminal, civil, common ans statute.
Difference between civil law and criminal law:
Civil law Criminal law
Civil law is codified set of laws. Criminal law is not codified.
Judgements provided on judicial case in point
are not binding.
In criminal law legal case in point are binding.
Role of judges in civil cases is to found the Judges make rulings set precedent and
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facts of the cases and apply them to
appropriate manner.
moderate between conflicting parties.
Main source is judicial precedents or case law. Statutes and other subsidiary legislations are
the main sources.
Legal system of United Kingdom has evolved over the years and still it is getting more
effective by making required changes as per economical conditions. Formation of law requires
information that will be served as the basis for law making. Some sources of law are discussed as
under-
Illustration 1: Sources of law, 2019
Source: Sources of Law, 2019
Legislations: These are the laws that are enacted by a legislative assembly or the
governing body of the country. In UK parliament is the governing body for law formation and
different acts of the parliament is served as primary source of law. The parliament consist of two
houses one of House of Common and other is House of Lords. To pass a bill in the parliament
majority of both the houses with royal consent is required (Sources of law, 2019).
Case law: Ruling on a case that has provided basis to other cases relating the similar
dispute will be termed as important source of law. Civil law in UK is largely based on the
previous case law. A benchmark decision of the judges are mentioned in the law books and
termed as the new law for future cases.
British Railways Board v Herrington [1972] case law served as a source of law. In this
a six year boy was electrocuted and experience terrible burns when he marvel from a play park
onto a live railway line. Railway line was covered with fencing but a gap has been established
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between this for making a short passage to the park. Under this case the verdict of the previous
case law of Addie v Dumbreck was set aside and new decision was held (British Railways Board
v Herrington, 1972). This new decision was opposite to the previous one as railways company
was held in default of owing a duty of common humanity to passengers.
European Union law: As a member state of the European union all the laws and treaties
that are made and imposed by union will be applicable on United Kingdom. These laws will be
served as the important source of law for the legal system of UK.
Parliamentary and Non -Parliamentary Documents: Certain documents such as
government proposal of the law in form of bill, various debates and reports that are prepared by
government agency will serve as the basis for formation of the legal system and termed as source
of law.
P2 Role of government of UK in formation of laws for the country
Government plays important role in running a country and formation of laws for the
nation is one of the primary activity that is performed by government department on continuous
basis (Barrédy, 2016). As parliament is the highest authority in UK for passing a law but a bill
for law is presented through government of the country. Government works through different
departments and each department works for managing economy of the country in legal and
effective manner. Various executive agencies are appointed by government of the country that
helps government in achieving their objectives. Formation of a law requires some basis on which
the new law will be designed. Departments of the government are established for serving large
number of general public and to implement laws in the country. Serving large public helps
government to have access to information that is required for law making. Effectiveness of the
laws that are already established and how they are lacking in maintaining legal system of the
country is all analysed through government department which is responsible for that particular
law.
Requirement for changes in the existing legal system and for formation of new laws are
intimated through government departments (Cleaveland, Dutcher and Epps, 2015). A panel of
skilled and experienced individuals are formed that will help in designing new law policies for
the country. Different departments have availability of huge amount of information and to make
the available information reliable for decision making analysis will be done. In this analysis all
the information is checked through its viability and results are observed. Authorities of the land
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is accountable for taking all the required steps necessary for designing a bill to be presented to
parliament. When government of the country is ready with all the information required for law
formation then a bill is presented by the system of rules to the parliament to pass it as a law.
When any loop hole is found in the bill then corrections will be made by government. After this
parliament passes the law with majority approval through both the houses and with royal
consent. Government of the country helps in designing laws that helps in explanation of key
legislation, regulations and standards for new businesses.
Statutory legislation comprises the act of parliament and it is regulated though regulations
and laws that are imposed in the legal system of the country (Emerson, 2015). The common law
with its principle of stare decisive forms the residual source of law that is based on the judicial
decisions, custom and usage. Both the laws are applied in justice court with the help of legal
system or with the decision of previous case laws.
P3 Impact of company, employment and contract law businesses
Establishing and operating a business in the highly competitive and challenging
environment has become one of the major concern for all the business houses. Each business
organisation to survive in long run needs to earn goodwill. Following all the legal requirement is
one of the common way that helps in establishing and serving a business for long run. Businesses
conducts various activities and involves different individuals. To operate legally various other
laws needs to be followed with business law. Company law, contract law and employment law
have their consequence on enterprise that is described as follows-
Company law: Business when established in form of a company then following
company law for is important. Company law describes all the legal requirements that needs to be
completed for establishing a business as company (Fenwick, 2016). Appointment of director and
auditor, issue of share capital, filling of tax return, preparation of financial statements, meetings,
dividends etc. are done as per company law. Company law helps each type of company business
to avoid any legal consequences and establish a business in legal and formal manner. For
Example- A public limited company must appoint three director for operating in the legal
manner.
Contract law: Contracts are the legal agreements binding the parties involved in the
contract on the basis of rights and duties mentioned in the agreement. Future is uncertain and to
bring some amount of certainty in future business transactions contracts are entered. These
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contracts have certain terms and conditions on the basis of which business transactions will be
conducted in future. Contract law needs to be followed by businesses to enter into legal and valid
contract and to know regarding legal consequence of breach and non performance of a contract.
Following business law with contract law helps each business form to perform each business
activity in lawful manner. For example- A contract for selling goods in future at predetermined
price mentioned in contract. This transaction will involve business law and contract both to be
followed at the same time (Hibschweiler and Salzman, 2017).
Employment law: Human resource in a business organisation is one of the key resource
through which business activities are performed and objectives are achieved. Employment law is
introduced to save employees from any form of misconduct at the workplace. Employment act
provides all the rules and regulations regarding maximum working hours, minimum wage
payments, removal of employees. A business organisation to operate in legal manner and avoid
any legal consequences needs to follow the employment law. For example- No business
organisation can force an employee to work for more then maximum working hours mentioned
in the act. Employees have power to take legal action business when any misconduct is done
against them.
Copyright law: Copyright act is governed by Design and Patents Act, 1988 that provides
right to an individual or organisation to enjoy rights to use for a period of 14 years plus option of
renewal for 14 years. Business organisation when selecting name for the product then copyright
act needs to be follow that will help in minimising duplicity and helps in generating brand name
by serving under one name (Kapottos and Youngner, 2015).
M1 Effectiveness of the legal system in terms of the recent reforms and development
Legal system of UK is quite effective that can be seen in the recent reforms takes place
through Brexit. When exit of Britain form Europe is announced then it leads to a drastic
destruction in the economy of the country. All the businesses turned at the stage of shut down
and all economy was facing a decrease in the growth. To bring reform of Brexit new policies for
businesses are introduced. These policies helps in minimising the restrictions for performing
business activities. Together with this government help in establishing businesses through
minimising the legal requirements. A quick decision of government in UK reflects a great
change and helps the country to regain the stable economic condition for businesses.
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M2 Difference between legislation, regulations and standards
Legislation Regulations Standards
Legislation are the directive
placed by the government or
governing body in the country.
These are placed on people to
make compliance with legal
system in order to remain in
the legal boundaries of the
country.
Regulation is termed as an
activity or process of rules
based on and meant for caring
out a specific piece of
legislation. Regulations are the
part of legislation designed for
performing a particular
activity.
Standards are termed as the
basis for judgement that helps
in establishing uniformity.
Application of standards are
voluntary to check the
application in correct manner.
D1 Critical evaluation of the legal system and law
Judicial scheme of UK serves as the basis for establish legal system in various other
countries. All the laws, policies and procedures characterized in the English lawful method are
critically analysed on the basis of their results after implications. Legal system of UK is evolving
and developing towards becoming one of the well established legal system all over the world
(Lasprogata and Foster, 2016). Strength of the UK legal system is its quick actions to maintain
legal system in the country. This well established legal system is available with one of its
weakness of implementing multi-pal laws that make it difficult for general public to understand
compliances to perform all the activities in legal manner.
TASK 2
P4 Various types of business concern organization which formed lawfully:
The main concepts of the business organization is all about the gathered two or more
group to achieve the business object. One of the main decision taken by the promoters of the
business is how a business organisation can be formed. It have some legal procedure in order to
form of the company or firm. Whereas the firm concludes the minimum two member to run a
partnership firm. An sole proprietors is real owner of the business and established the business
by it own after considering the market analysis. Here, some of the business organisation and its
formation are discussed as under:
Sole Proprietor
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This is also knowns as sole business trader. Proprietorship is type of business that is run
by a individual and manage the business by its own skills (Norris, 2016). This is the simplest
structure of the business enterprises in which the total role and responsibilities of the business in
order to handle the business activities is concerned with owner of the business. In the sole
proprietor business, there are no legal distinction between the business enterprises and owner. In
addition to this, the proprietor is answerable for the net income and sales. An individual adopt
the shorter formate to kick start the business that's the main reason to this kind of business entity
is highly recommanded by the people. Moreover, the key benefit to business proprietor is able to
form all the business judgement and also power over their entire direction purpose.
Partnership
It is the provision under which the different parties are agree to cooperate the businesses
by mutual understanding and their field (Types of Business Organisation, 2019). Parties are
called as business partners. The business partner may be individual, business, government and
the business organisation. In the normal partnership, the business partner handles the firm and
deduce the responsibilities for the business partner for the assets and obligation in the firm. This
is the agreements between the partner that is called partnership deed. In which legal consent of
profit sharing ratio, role to partner, interest on capital, salary, bonus, commission on sales etc.
Partnership is categorized into two kind as basic and LLP. In limited partnership, it belong
where one partner hold full control over its business operation and other individual can make
contribution towards the profit.
Company
This is the main kind of the business organisation that formed by a group of person to
engage in the business concern to operate the business activities. It includes the legal structure
of company such as memorandum, article of associations, management, board of director, issued
capital regarding the company. Institution can be organized in various ways for net income and
expenditure liability purposes as per the corporate laws. The business owner are the shareholders
that holds the stock of the company (Rohlin and Ross, 2016).
P5 How different business organisation are handled and funded
Here is the various kind of organization that manage the business and provides the fund
as per its requirement to business organisation. All business have unique way to handle the
business and manage the fund from outside of the business.
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For Sole proprietorship :
Sole proprietor are the only person behind the business in order to operate and run
business action and entire function of the business concern. As per the report business income
and losses , the business owner is personally responsible for business's assets and income
obligation. It is become easy to establish and manage the business legal, financial after
considering the business risk. The fund can be managed by the business owner from the newly
introduced capital and saving of the particular person. The role of the sole proprietorship in the
business is to provide control over business operation and decision to enable the proprietor to
maintain its functions or units smoothly (Rutledge and McGuire, 2015).
For Partnership
The function and the operation of the business partnership can be handled and managed
by the partners in order to make any new decision in the business. Partnership firm is reasonably
easy to de business in shorter formate by devising the work as per the capabilities of the
individual to the money can be raised by the business partner by introducing new capital. It
enables to devise the profit and loss equally and as per the partnership deed. The main sources
of the finance that needs to introduced in the business is personal savings, profit earned in
previous year, assets sales, bank loan. Partner join the business firm to earn more profit.
For Corporation
In order to manage the business in the corporate and company, there is team of board of
director which operates the business operation and the management team that handles the overall
action of the business organisation. But the real owner of the enterprise are the stakeholder of the
commercial enterprise. The management of the corporates are accountable to creates perceptive
among each of the members that can impart their its best effort to achievement of business
objects. The money can raised by the management of the business by issuing share, loan term
loan, debentures. Shareholders can be buy the new share to enhance the return on investment and
further growth (Scheuer, 2015).
P6 Legal solutions for resolving disputes
a) Explanatory Memorandum
Explanatory Memorandum for fulfilling obligations under
Health and Safety Act 1974
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As per Health and Safety Act 1974 lays down the general principals for the governance of
health and safety at workplace. Section 1 of the act list out its objectives of securing health and
safety at workplace against risk to health of employees by controlling usage of explosive or
highly flammable substances. As an employee of Regent Vision LTD each worker has power to
know regarding appropriate steps to be taken by the company by concerning heath and safety as
priority. The plant and machinery used by workers are safe to use and reasonable maintenance
is made on the regular intervals for machinery. When goods are produced and transported for
storage then all the safety instruments required are stored in the premises. A training program is
introduced in the company that will help in minimising accidents. Workplace is controlled by
managers to supervise heath and safety of all the employees working for the business. All the
provisions that helps in performing welfare at workplace is taken by the organisation. A safety
policy is implemented in the organisation so that it can be implemented at each level in the
business.
b)
In this case Charlotte is employed as an accounts clerk in Regent Vision LTD. She has
been asked by her friend who owns a dress making business for bookkeeping in her spare time.
The issue is related to the Employment Law (Tepe, 2016). All the terms and condition of
employment is governed as per employment act by providing contract for employment. As per
employment act when the contract of employment is made for full time employment and restrict
duel employment of accountant then his this issue will be resolved through contract of
employment. In the present case it is assumed that Charlotte has an employment contract with
company with a clause of restriction on duel employment. As per employment act she will not be
allowed to do bookkeeping for Daisy. If she accepts offer made by Daisy then it will be termed
as breach of employment contract and company can take all the necessary steps to resolve the
issue and can held Charlotte liable for damages if any.
c)
The issue in the case is regarding Nicholas Jakcob who is an electrician and married with
two children. He has worked all his life in Newcastle. He was employed with Regent Vision
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LTD for the last three years. Due to restructuring and closure of the Newcastle branch he was
offered a job in London. This offer was refused by him as he refuse to move to London. This
case involves issue related to business law and employment law. As per provisions of the law
when a business is restructured and closed with offering their employees at other job location is
legal as per Business law. The provisions of the Employment law helps employees protecting
towards unfair dismissal. When employee is offered a job at different job location then it can not
be termed as unfair dismissal. Here, Nicholas Jakcob can not take any legal action against
company. Regent Vision LTD can not force him to accept job at different job location as per
business law (Yu, 2019).
M3 Advantages and disadvantages of various types of organisation
Here, advantage and disadvantage of various kinds of business structure as are as under :
Sole proprietor-
Advantages:
 Easiest way to own a business and required less capital to kick of the business . Easy to organise.
Disadvantage :
It takes time more time to set up the business and required high – calibre in owner.
Partnership -
Advantages:
 It is easy to make invest in settled business partnership consent. It required less capital to hike funds as it belong various no. of partner.
Disadvantage :
 Partners are conjointly and separately susceptible for the activity or act of the partnership.
 It may end with withdrawal and death of the partner.
Corporation -
Advantages:
 The additive primary can be raised by issuing the new share and debenture. It can deduct the cost that is issuing on the shares.
Disadvantage :
 This process of raising money required more time and advance money to organization.
 It is regulated by company' s act data are published as publicly.
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M4 Different sources of legal advise
Business activities are complex and to perform them lots of transactions are made.
Involvement of more number of individuals and organisations brings more and more disputes. To
resolve these disputes approach can be made to courts or to Alternative Dispute Resolution
panel. Under ADR disputes will be resolved out of court through negotiation, mediation,
collaborative law and arbitration. Most of the time ADR is preferred by business organisation as
it helps in quick decision and less expensive then filling a case in court. Parties involved in the
dispute are agreed on a solution which is beneficial for both of them and avoid legal
consequences (Orlov, 2016).
D2 Evaluation of each type of business organisation
A business organisation can be established in any form on the basis of requirements for
achieving business objectives. Business organisation differs on the ground of legal existence,
direction, accessibility of finances and nature of complexity in formation. Formation a business
organisation is highly effected with existence of legal system in the country. A effective and
cooperative legal system will help in development of more formal business structures that will be
in existence for long run.
D3 Effectiveness of legal solutions, legal advise and support
Disputes arises while operating day-to-day activities in the business organisation. All the
disputes are resolved through legal system by using various laws established to deal with the
issues. Following the laws for business various legal solutions and legal advise are provided to
business organisations. These legal solutions helps in resolving disputes through court of through
ADR. When a decision is provided in legal manner to resolve then it becomes binding on both
the parties involved in dispute. Legal solutions are quite effective and helps in resolving issues
that hinders business operations.
CONCLUSION
From the above project report it has been concluded that establishment of judicial system
is important for application of various forms of Torah in the country. Laws in UK are developed
through different sources and government of the country plays major roles in establishing and
implementing of laws in the country. Business law is designed and will be applicable on all the
forms of businesses. Rules and regulations regarding operating business will be mentioned in
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company law, contract law, copyright law and employment law. A dispute when arises will be
resolved through filling an application to court or through alternative dispute resolution methods.
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