Legal Solutions for Business Disputes: A Case Study Approach

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Business Law
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Table of Contents
Introduction...................................................................................................................... 3
Section 1- – Nature of legal systems and legislations impacting businesses...................4
Task 1- (LO1 & LO2)........................................................................................................4
a) Discus the meaning of the term Parliament is Sovereign and sources of law in the
country.......................................................................................................................... 4
b) The role of the government in the law making process and how the statutory and
common law are applied in the justice of courts...........................................................5
c) Illustrate how company, employment and contract law has a potential impact
upon business. Differentiating between legislation, regulations and standards to
analyse potential impacts upon business.....................................................................6
Task 2- (LO3)...................................................................................................................8
Section 2 -Legal solutions to business problems-- LO4.................................................11
Conclusion..................................................................................................................... 13
References.....................................................................................................................14
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Introduction
Business law is the most effective and efficient law which guides the businesses in
carrying out the business operations as per the government norms. Business law
covers different areas in which the business deals by considering the issues of both
private and public law. This project mainly deals with the role of commerce law and its
related compliance and its effects in the process of making decisions. This assignment
consists the several basis of the commandment in the United Kingdom and the
government role while making the law. Further, it also analyses the impact of several
laws of the business operations along with the administration and funding of the
business. It provides brief knowledge about different types of organisations along with
its merits and demerits. At the end of this assignment, it discusses about the different
legal solutions that supports the businesses in resolving their disputes while performing
business functions.
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Section 1- – Nature of legal systems and legislations impacting businesses
Task 1- (LO1 & LO2)
a) Discus the meaning of the term Parliament is Sovereign and sources of law in
the country.
In the British government, Parliaments is termed to be sovereign because in the
permissible structure of the United Kingdom, Parliament is the highest authority who
possesses the authority to produce or ending any law (Young, 2016). No courts of
the UK have authority to overrule its constitution and have the supreme power which
includes both the judicial and executive bodies. The laws of the United Kingdom
assist in governing country lawful structure and the country lawfully and primary
sources are mentioned below:
Legislation is one of the primary and essential sources which help out in the
creation of law which assist in governing the government and its functions by
regulating and authorizing the operations of the government by providing grants and
funds (Marson and Ferris, 2015). It is the main sources of the structure of
Parliament. The constitution of the United Kingdom is in written form which is
pertinent to all over the country.
Common Law is the body of the laws in unwritten form which is based upon the
lawful precedents which is established by the courts. Common law influence in the
process of making decisions in cases of unusual nature and assist in determine
rules which are in written form. This body consists legal rules which are enacted by
the judges. This source cover the Doctrine of Stare Decisis where the inferior courts
bound by the higher court judgments.
European Law is the law which is enacted for the members of the European Union
and the regulation enacted under this Union are overruling the UK laws and its rule
and regulations are necessary to comply by its members (Georgosouli, et. al., 2018).
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International Treaties are the agreements enacted between the governments of
two different countries guided under the provision of international law. For instance,
Peace Treaties of England.
In the United Kingdom, the law and its enforcement are determined under two parts
that is civil and criminal law, Where the civil deals with the matter of civil nature
includes family or property matters. In such cases the innocent party has the right to
claim damages by appealing in higher court (Fici, 2016). Criminal law concern with
the subject among the parties are of criminal and serious nature. Criminal
proceeding is initiated under the Crown court, for example, murder or rape.
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b) The role of the government in the law making process and how the statutory
and common law are applied in the justice of courts.
Law is an important term for any country that helps in forming the policy and rules for
the country and its citizens. While formulating the law of the United Kingdom, the
function of administration is essential and in this method the Parliament of the United
Kingdom play crucial and essential role while making the bill (Huxley-Binns, et. al.,
2017). In the United Kingdom, the bill is divided into two main categories named
public and private bill. For creating law, there is a process which needs to be
undergone by the government of the United Kingdom. This process is divided into
various stages are mentioned below:
 First Reading is the formal stage, the statement with its title and headings is
read among the members of both the Houses name Houses of Lords and
Commons and then, it gets published. At this stage, short details of the bill
are given to the Parliamentary members.
 Second Reading is the stage where there is a debate in the Common House
on the basic values of the bill and its provision are discussed in more detail.
 Committee Stage where the Parliament enacted the committee in the
country where the bill and its feasibility is checked out by providing
recommendations for implementing amendments in the bill or not and if both
the houses are not agreed with the bills and its provision, it sent back to the
government for making further changes (Elliott and Quinn, 2015). The major
aspire of this stage is to inspect the bill in detail and making necessary
amendments.
 Report Stage, where changes are implemented by the committee in the bill
and if any changes are required to be implemented further, then both the
Houses voted upon the bill and it’s upon the speaker to select the subject
matter on which the bill is debated.
 Third Reading is the last and final stage where it commences after the end of
the Reporting stage and if any, changes are necessary, then bill is again drive
to the Commons House.
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 After receiving the assent of the Queen, this bill called as law and is termed
as a Parliament Act and its date of commencement is determined by the
delegating legislations.
In the courts of justice, Common law is used by the judges to get the solution of the
case which is already determined by higher courts of the cases of the same nature.
Whereas the Statutory law are the laws in the written form which is created by the
court, the government and are used in determine and interpreting the law of the
country. The court and its judges use this law is such a way that helps in enhancing
the court and its performance.
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c) Illustrate how company, employment and contract law has a potential impact
upon business. Differentiating between legislation, regulations and
standards to analyse potential impacts upon business.
The crucial function of the business law is to resolve the issues between the legal
entities by regulating the acts performed by the businesses including its owners.
There are numerous laws that affects the process of the business are as follows:
Company Law is an important law that guides the companies in regulating the
functions by creating a company as a separate legal entity where the company owns
its assets and obligations by creating its own wealth and fulfills the capital
requirements with the help corporate governance. The most important aspire of this
law is to guide the companies and its director’s work under the boundaries set under
this act. Under the Companies Act, 2006, the main documents are prepared that
determine then boundaries under which the directors and its management are liable
to perform and regulate their operations and responsibilities includes Articles of
Association and Memorandum of Association. Non compliance of this law negatively
impacts over the reputation of the business.
Employment Law is an important law which involved the process of hiring of the
employees while interviewing and plays an important role in hiring and firing
process. The major intend of this law is to provide protections to both the employer
and employees at the place of occupations while layoffs, termination and other
practices that affect the job of an employee. This law determines the issues in
relation to the unemployment (Honeyball, 2016). The law of the employment affects
each and every person at the workplace by determining the rights of the employee
as well as employers in relation to the wages, discrimination, family, wages, benefits
and other related matter. It is very crucial to know the impacts of the employment at
the place of occupations by depicting various rights attached to the employees and
protection that are enforce under this law. If any employee or employer violated the
laws of the employment and then that person is aggrieved for the payment of the
compensation odor damages to the innocent party. This law also assists in providing
a minimum amount of wages which is required to pay the employee according to
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their performance (Selwyn and Emir, 2014). The positive impact of this law is that
workers can raise voice against the malpractices of the employers in the legal
environment.
Contract Law lays down the procedure for regulating the performance of contract
between the two or more parties of the contract who are entering into the relations of
commercial nature. Contract law is the law which binds the parties to create legal
and valid relations for entering into the contracts. All the legal transaction in the
business is administered by the contract law and courts compel the parties for the
performance of the contractual responsibilities. The impact of the contract law in the
business is crucial, it protects the parties against the unfair practices of the
contractual parties. This law ensures that the contracts are enacted between the
organisations as per the provisions mentioned under the law (McKendrick, 2014).
This law impact over the trading activities of the businesses and its rule and
regulation impact over the business processes. Any change in the laws of the
business directly impacts over its management activities. This law is enacted to
guide the agreements enforceable under the contract act, businesses and provides
the power to compensate the aggrieved party by providing the appropriate amount of
damage.
Legislation is the body that governs the laws in the field of business, for instance
competitors, environment, health and safety and competitor (Borisov, 2015).
Regulations support the businesses to direct the business operations as per the
rule and regulation provided by the respective authority and it consist the details
behind the enforcements of the legislations for instance, health and safety
regulations. Standards are the specified procedures or guidelines for performing
the functions as per the set standards for example, food and safety standards.
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Task 2- (LO3)
As per the given case of Jenny, Penny and Marie and they are planning to establish
JPM formed the venture of a partnership with the help of extra funding for enhancing the
business boundaries. As per the advices provides by their accountants, it is advices to
the JPM to form limited company and its impact over the management of the business.
Further, apart from the limited company, JPM can opt for different types of business
options are as follows:
 Partnership is the business where two or more persons agreed to work as co-
owners for operating and managing the business functions. All the partners of the
business engage over the decision for managing the business and its day to day
activities. In this type of business, partners are legally responsible to add from
their private assets while winding up the business of partnership, but in case of
limited partnership, it formed where there is at least one partner is general and
other partner is entered with limited liability.
 The Corporation is the business organisation where the groups of people act
and run the business as a single entity, as per the law for the fulfillment of certain
purposes. A Corporation is a separate legal entity which is different from owners
and enjoys the rights and obligations for entering into the contracts, borrowings
and own assets (Hannigan, 2018). The existence of the corporation is perpetual
and the founder of the business can continue business for the infinite period of
time. Its provision is mentioned under the Companies Act, 2006. Further, the
company is categories under private company, public company, private limited
company and public limited company. The chief principle of the corporation is to
limit the liability of its members.
 Limited Liability Company is a combination of partnership as well as
corporations. The main characteristics of this business are that the accountability
of the shareholders is limited, and where the owners of the business are liable to
contribute the amount up to the amount they are invested in the business. This
business is managed by the directors of the company and they have the power
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to fulfill the obligation of the company by assigning the duties and responsibilities
to the respective authorities.
 Sole proprietorship is the business where there is single consultant act as an
owner and independently run the business. Sole proprietor is solely accountable
for performing the business activities and this business is easy to set up in
comparison to other businesses. The main motive behind this business is to earn
profits by the sole proprietor and there is no required to share profits and losses
with others. The sole proprietor has full control over the business and its
management while taking the decisions.
Incorporate and unincorporated business
In the England, the business structure is categories is divided into two categories
includes incorporated and unincorporated business as per the provision of the
Companies act, 2006. Incorporated business is separate from its members on the other
hand, unincorporated business are generally the businesses like a sole proprietorship or
the partnership businesses (Wild and Weinstein, 2019). Incorporated business must file
their tax return separately on the other hand, then business owners in the
unincorporated business file their tax returns individually. The main examples of the
incorporated companies are private or public company, nonprofit organizations or
company limited share or guarantee.
Under unincorporated firm, the cost of operating business function is comparatively than
the incorporated business. There is no complication in relation to the paper work under
the unincorporated business, but the incorporated business, the procedures of
formation involved high cost and other cost in relation to the compliance provisions. In
the unincorporated firm, the liability for the payment of the debts of the firm is upon the
members of the firm, but in case of incorporating businesses, the liability is not upon the
owner of the company.
Funding and Management of Business
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Business and its management are important for running the business activities or
operations efficiently. Both the profitability and productivity depends upon the company
capability to manage its business. To establish the business for a long phase of time, it
is significant that the directors or the senior executives of the company manage the
business processes with just and reasonable care. It is crucial that the directors must
work as per their responsibilities towards the company and take decisions which is in
the company interest not in their personal interest. As per the Companies Act, 2006,
bounds the administrator of the corporation to work and take decisions in favor of the
company and its shareholders under Section 171 to 177 of the act (French, et. al.,
2012). This binds the directors to take effective decision which results in company
growth and success.Further, for managing the functions of the business, funding is
important to implement the decisions practice. Funding assists the businesses to carry
out their business activities as per the available budget. For managing the business like
Sole proprietorship, the whole responsibility upon the single owner to take all the
decisions in relation to the business and this business is funded with the help of
personal savings and loans from banks or relatives. Business like Partnership is
managed by the firm partners and distribute the profits of the business in the ratio of
their amount invested in the firm capital. This type of business can be funded by
captivating loans from the banks or other financial institutions. Business organization
like limited liability corporation is administer by the Board of directors for managing the
day to day business responsibilities and this business funded by issuing equity shares,
debentures or by issuing preference shares to the public or the existing company
shareholders (Dammann and Schündeln, 2012).
Merits and demerits of partnership and company
Type of business Merits Demerits
Partnership  This business is
easy to establish
 Its commencement
 The partners liability
towards firm debts is
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