Analysis of UK and Chinese Legal Systems in Business

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Business law

Contents
Business law....................................................................................................................................1
Introduction......................................................................................................................................3
Section 1- Nature of the legal system and legislations impacting businesses.................................4
Task 1- (Lo1 & Lo2)....................................................................................................................4
A) Discus the meaning of parliamentary sovereignty and discussion on various sources of
UK Laws..................................................................................................................................4
B) Explain the role of government in the law-making process and how statutory and
common law are applied in the justice courts..........................................................................6
C) Use specific examples to illustrate how company, employment and contract law has a
potential impact upon business................................................................................................8
Task 2 – Lo 3.................................................................................................................................10
Difference between the incorporated and the unincorporated business................................11
Advantages and disadvantages of a partnership and that of a company................................11
Section 2- LO4...............................................................................................................................13
Case 1.........................................................................................................................................13
Case 2.........................................................................................................................................15
Recommendation.......................................................................................................................16
The legal system of two different countries..............................................................................16
Compare and contrast diverse sources of lawful advice............................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

Introduction
The term business law is defined as the law that is framed by the government of the country so as
to regulate the functioning of the organisation working in the country. The law is also popularly
known as the mercantile or commercial law as this defines the provisions that are related to the
business organisation. Through this law managers of the business organisation are able to
perform the duty in a way which is considered to be ethical and as per the rules and the laws that
are prevailing in the country. Through this law the organisations that are working in the country
are able to know the rules through which they are able to incorporate the different business
structures (Collison, et. al., 2014). This is seen that the business law contains various elements
some of which includes the company law, contract law, employment law etc. this report is based
on the terms of the law that are defined by the government of the country. In the first part of
report the basic nature of the legal system of the country are defined and also the role of the
government in the law making process is defined. The report would also answer the impact of
the company, employment and the contract law on the organisation and would also analyse and
differentiate the same. At law the legal solution for the specified problem would be suggested so
as to provide the best legal solution for the same.

Section 1- Nature of the legal system and legislations impacting businesses
Task 1- (Lo1 & Lo2)
A) Discus the meaning of parliamentary sovereignty and discussion on various sources of UK
Laws
The constitution of the country is considered to be the main law making body in the country.
This is seen that in UK there are various province that are working according to the rules that are
prescribed by the constitution of the country. These provinces includes England and wales,
Scotland and the Northern Ireland. This was seen that the recognition of the Monarch and the
courts in the parliament of legislative supremacy was developed in the 17th century. This was
seen in the case of Proclamations that the chief justice had a doubt that king legislative
supremacy as he had only the prerogative which was allowed by the law (Dammann and
Schündeln, 2012). This was seen that he was not allowed to make new laws. This is seen that the
parliamentary sovereignty is rooted in the legal rule which specifies that the court accepts the
legislation that are enacted by the parliament of the country. Hence this was seen that
parliamentary sovereignty is contained within the common law of the country. It is in fact
considered that the parliament sovereignty is found within the UK constitution and if the
constitution is absent then these are found in different laws that includes statutory law, common
law, constitutional conventions and other form of law contained in it. There are various theories
which are related to the parliamentary sovereignty which includes that the parliament is the
supreme law making body and this can help in enacting the laws on any of the subject matter,
this is also considered that the parliament cannot bind any of the successor and the main theory is
that the no court can question the validity of the enactments that are prescribed by the parliament
of the country. So there are various source of law in the country which are described as below:
Legislation This is the law that is created by the
legislature of the country. This is seen that
important pieces of the legislation are
considered as the act parliament. The UK
parliament is consist the house of commons
and the lords that helps in performing the
functions of applying the legislation in

deciding about the cases. The legislation of
UK is divided into two segments which are
considered to be the primary and the
secondary legislations.
Common law This is seen that the legal system of England
and wales are commonly based on the
common law and the decision lies in the
senior appellate courts so as to form the part
of the law for the country (Ebell, et. al.,
2017). This is seen that these are considered
to be the set of laws which are decided in the
court in the previous cases and are applied
accordingly in the court system. This law
helps in codifying the rules the rules that
helps in governing the court system of the
country. This applied in the court where it is
not possible for the court to apply the
statutes in the cases that are decided.
Equity law This is considered to be the law that helps in
performing the characteristics where the law
is considered to be prevailing already. The
law has the elements which includes the
equitable trusts and the remedies which help
in deciding the conclusion related to the laws.
This is seen that the law is considered to be
prevailing in the case where there is a dispute
between the common law and equity law.
European union law This is considered as the law where the
member state of the European union has to
abide by the structure that are defined in the

court system (Fenwick, 2016). It is considered
that the European union law is considered to
be precedence over the UK law and is
considered to be prevailing for the purpose
of deciding about cases in the country.
European convention on the human rights As this is seen that the UK is the member
state of the council of Europe and the
signatory of ECHR hence it becomes the
source of law in the country where the human
rights has to be protected.
International treaties This is seen that the term international
treaties is considered as the agreement
where the government of the country enters
into an agreement with the other countries
so as to make the treaties related to the
countries benefit (Fici, 2016). For example
the free trade of goods among the
international borders of UK and Scotland is
considered to be one of the treaties that
helps the country to achieve the objective of
maximising the performance.
B) Explain the role of government in the law-making process and how statutory and common
law are applied in the justice courts.
This is seen that the parliament of the country performs the three main functions which includes
representing the citizen’s interests, passing of the law for the country and to monitor the actions
that are taken by the government of the country. This is seen that government of the country
performs there functions as per the legislative procedures for the betterment of the country
(Hannigan, 2018). This is also seen that the parliament is considered to be the supreme law

making body and the law in the country is made through this procedure. Hence the government
of the country performs various functions such as looking at the area where the law is required to
be amended or regulated. There are various bill that are introduced in the parliament for the
purpose of making law in the country. These includes the public bill, private bill and the private
members bill. Hence the procedure that is required to be followed for the purpose of the issuing
the laws in the country includes:
 First reading: This is the stage where the title of the bill and what it would include is
given among the members of the parliament. Here the brief about the bill is being read
out and nothing else is done in the bill in this stage.
 Second reading: This is the stage where the detailed bill is debated among the members
of the parliament. Here then the MP’s of the house vote on whether the bill is to be
proceeded to the next stage or requires any amendment. Here the whip system is used for
the purpose of the getting support for the members and where the governing party is
considered to be winning in every stage.
 Committee stage: this is the stage where the bill is referred to the committee that is
framed by the parliament of the country. The bill is examined in details by the committee
that is formulated for the purpose of the issue. Here in this stage the further amendments
are made in the bill which helps in making the bill more productive and the impacting on
the legal system of country.
 Third reading: This is considered as the stage where the bill is represented to the house
once again. Here the short debate is done and then the voting is done on the amendment
of the bill. Here the discussion is done on the bill and the voting is done at the last after
which the bill is sent to the next stage.
 Royal assent: this is the final stage of the process of law making where the monarch of
the country has to finally approve the bill and then the bill is considered to become the
act of parliament. It is considered now as the royal assent act 1961.
The country of UK has various laws which helps in defining the legal structure of the country.
These law are applicable in the court in the different way and according to the requirements. It is
seen that the common law and the statutory law are considered to be the two types of law that are
applicable in the court (Katsos and AlKafaji, 2019). These are applied in the court system while
deciding about the case in the following manner which is defined below:

Statutory law This is the law that is defined by the
government of the country through the
parliamentary system. Here the court applies
these laws directly in the cases which are
prevailing between them. Here the law is
considered to be In the written form which is
directly applied to the case. The laws that are
made here are interpreted by the judge so as
to make them applicable on the cases that are
being discussed in front of the court.
Common law It is the main law that is applicable in the
country courts system. These are the already
decided cases which helps in deciding the
cases that are being discussed in the court
(Rashid, 2014). They helps in saving the time
of the court where the case of same nature is
decided within the court again and again.
C) Use specific examples to illustrate how company, employment and contract law has a
potential impact upon business.
The law system of the country helps in performing various functions and also regulates the
companies operation that are working in the country. These laws are important and compulsory
for the organisations to be followed as if these are not followed then penalty can be imposed on
them for further performance. It is seen that there are various laws that are applicable in the
country on the organisation that are working in the country (Roebuck, 2016). Some of them
includes company, employment and contract law. These have the impact on the business as
follows:
Company law Employment law Contract law
This is the law that has been
enacted by the government of
It is the law that is formulated
by the government of the
This is the act that is majorly
required by the business

the country under the
company’s act 2006. This is
the law that helps in
regulating the companies that
are working in the country.
Here it is seen that law
specifies the rules through
which the companies get
formed and it also helps in
specifying the boundary for
the purpose of the issue. This
is seen that here the MOA
and AOA is provided to the
registrar for getting the
company registered under
this act. This impact the
business organisation as the
company has to abide by
various rules and the laws for
getting the operations done
properly.
country so as to make the
employees being empowered.
Here various rights and
functions are defined for the
purpose of issue that arise
between the employees and
the employer. In this law
various rules are made which
includes the minimum wages
act, employees compensation
act etc. as there are various
rules that are required by the
company to comply under
this law hence the company
has to approve various rules
under this.
organisation to be followed.
This helps in performing the
function where the contracts
that are framed between the
parties to the contract and
regulate them. This is seen
that here the rules that are
related to the performance of
the contract and termination
of the contract are defined.
This impact the companies as
the company has to perform
various rules and regulation
under this law so as to form a
contract.

Task 2 – Lo 3
As this is seen that there are three partners JPM which are doing the business in the best way and
hence wants to expand the business to the new areas. As the organisation is already in the
partnership form and hence for the purpose of the expansion the accountant has suggested them
to form a company which would be easy to expand (Samuel, 2016). Hence for they want to seek
the advice as to what type of business would be best suitable for them to perform. Some of the
structure of the business organisation are defined below:
Corporations Partnerships Sole proprietorship
This is the type of the
organisation that are formed
through the association of
the person that want to
achieve the profit. This is the
organisation that are
registered under the
company’s act 2006. This is
seen that this act helps in
protecting the stakeholder’s
interest and rights (Santoro,
2015). This form of business
organisation is considered to
be best in form for the
expansion purpose as it has
the advantage of getting
more funds than other form
of business organisation and
the management of the
company can be done by the
different managers. There
This is the form of business
organisation that is already
being done by the JPM. This
is the organisation where the
two or more than to person
comes together to form the
partnership. Here the profits
of the organisation are shared
among them according to the
deed that is formulated
among them. It is seen that
this form of the organisation
is made so that they are able
to achieve the objective of
performing the operation with
the mutual consideration of
the other persons (Tutor2u,
2018). For this type of
organisation to register the
partnership deed is created
among the partners of the
firm and they achieve the
objective of having the shared
This is the sole proprietorship
firm that is considered to be
the extension of the owner of
the firm. Here in this form of
business the owner of the
company is consider to be the
manager of the firm. It is seen
that in this type of
organisation the funds are
relatively less than all other
form of business
organisation. This is also seen
that the expansion
opportunity in this type of
business is considered to be
very less as compared to the
other form of business
organisation.

are various forms of
corporations in the country
which includes voluntary,
public and the private form
of business organisation.
profits among them. For this
the registration has to be
made to the registrar of firms.
Difference between the incorporated and the unincorporated business
This is seen that there are various difference between the incorporated business and the
unincorporated business. Some of the difference between the two includes the following:
There are various categories of unincorporated business which includes,
 Sole proprietorship firm
 Partnership firms
Also there are various other difference which includes that the liability of the business is
transferred to the owner of the business, the tax rates for the unincorporated business is relatively
low as compared to the incorporated business, the cost of incorporation for the operations are
relatively low (Van Rijmenam, and Ryan, 2018).
And some of the categories of incorporated business includes the following,
 Private limited companies
 Public limited companies
 Limited liability companies
Here there are various differences against the incorporated business. Some these are that the
liability is not transferred to the owners of the company, the tax rate are relatively high then
unincorporated business, the cost of incorporation is higher than the other form of business
organisation (Watnick, 2016).
Advantages and disadvantages of a partnership and that of a company.
There are various advantages and disadvantages that are related to the partnership business and
the company form of business which includes the following;
Business type Advantages Disadvantages
Partnership firm  Less paper work in  Liability is joint and is

formation.
 Risk is shared among the
partners
 Investment is done by
two members.
related to the other
partner
 Liability of partner for
the acts of the other
partners
 Death of partner ends the
partnership.
Company  Common seal
 Association of person
 Separate legal entity
 The company has
perpetual succession
 The registration is time
consuming process and
not easy.
 The registration process
is costly.
