Analysis of the UK Legal System and its Impact on Businesses

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Business Law
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Table of Contents
Introduction......................................................................................................................................3
LO1 Explain the basic nature of the legal system...........................................................................4
P1.................................................................................................................................................4
P2.................................................................................................................................................4
M1................................................................................................................................................4
LO2 Illustrate the potential impact of the law on a business...........................................................5
P3.................................................................................................................................................5
M2................................................................................................................................................7
D1.................................................................................................................................................8
LO3 Examine the formation of different types of business organizations......................................9
P4.................................................................................................................................................9
P5...............................................................................................................................................10
M3..............................................................................................................................................11
D2...............................................................................................................................................12
LO4 Recommend appropriate legal solutions to resolve areas of dispute.....................................13
P6...............................................................................................................................................13
M4..............................................................................................................................................15
D3...............................................................................................................................................16
Conclusion.....................................................................................................................................17
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Introduction
The main purpose of the law is to implement the rule and regulations for protecting the rights
and liberties of its citizens. The Law supports resolving the conflicts among the different social
groups in society. Similarly, the main purpose of the business law is to determine the impacts of
the business legislations over the diverse areas. This assignment important aim is to highlight the
English legal system prevailing in the United Kingdom by analyzing the role of its government
in the procedures of the bill making. It also highlights the impact of business laws with relevant
legislation that impacts the functions of the business. Further, it includes and highlights the types
of business organizations along with the ways of its management and managing the finance. At
last, it highlights the recommendations given in the disputes by providing legal solutions and
advice.
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LO1 Explain the basic nature of the legal system
P1
Law is very significant as it acts as guidance and regulates conduct. It also settles or avoids
disputes. Various obligations and rights are set by the laws. It protects the general safety and
ensures that the right of the citizens is protected.
Before the recording of history, the evolution of law began that built up the laws one by one as
the settlement of disputes take place. The spontaneous rules are evolved in the customary law
through the adjudication of the dispute.
There are different sources of laws in the UK which are enacted by the UK government and
become the binding force.
Legislations- These are the primary law source and are enacted by the parliament after the bill
passes through the different law-making stages and then becomes the parliamentary act after
getting signed by the monarch. There can be the different purpose of legislations including
enabling, providing funds, proscribing, sanctioning, and declaring or restricting.
Case Laws-case laws are also referred to as the judge-made law that is associated with the
judgments made by the judges and they become the binding force for the lower courts. These
judgments are made by the courts when no adequate legislative law prevails (Klarsfeld, et. al,
2012).
Equity- This source is peculiar to England and Wales and is the case that is developed by the
Chancery court. The prevalence of equity is over common law but the application of the same is
discretionary. Equitable remedies, charities, and trusts are considered as the equity's main
achievement.
International treaties- The international conventions may be signed by the governments and it
becomes binding only when international treaties are ratified. The incorporation of these treaties
can be made into statutes. The conventions come into force only when signed by the prescribed
signatories’ number (Tombs, 2013).
European convention law- This is an international law source under which the EU policies and
laws are required to be followed by the countries who are the member nations of EU and being a
member nation UK has to comply with all the EU laws such as provisions of treaty, decisions,
precedent, regulations, and directives.
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P2
The creation of legislation is done by the parliament that consists of the House of Lords and
House of Commons. The UK government plays a vital role in the whole process of making laws.
There are three types of bills including the following-
 Public bill- These bills are also referred to as the government bill mainly focus on
changing the law that concerns the public at the large. The cabinet adopts these bills into
a legislative program of the government.
 Private member bills- the preparation such bills are made by the backbench MP. Their
entrance into ballot is mandatory so that they have the right to do so. Then persuasion
with the government is necessary so that it allows enough time to parliament for the
going through of the bill.
 Private bill- the proposition of such bills is made by the local authority, large public
organizations, and public corporations.
Different stages of law-making include the following-
 First reading- the bill title is read along with the contents of bills and is considered as
the formal stage.
 Second reading- In House of commons the main debate takes place and at this stage,
various amendments are made in the bill. The voting is done by the MPs and decision is
made regarding the acceptance and rejection of bill concerning its further proceedings.
 Committee stage- The reference of the bill is made to the committee of House of
Commons and detailed examination of the bill is conducted. Further amendments can be
made in the bill at this stage in case of necessity (Voermans, et. al, 2015).
 Report Stage- the debate is reported by the committee and amendments are made back to
House. The further debate takes place with bill and voting is cast upon by House.
 Third Reading- This stage is considered as the final stage and here the consideration is
made of the amended bill and the final opportunity is given to the MPs for voting on the
bill.
 Proceedings in House of Lords- after third reading this stage begins. The procedure of
this stage is similar to that of commons. The bill is sent back to the commons if
amendments have been made by the lords.
 Royal Ascent- The bill becomes the parliamentary act and is termed as the law after the
signature of the bill by the monarch.
Application of statutory and common law in justice court
All the judiciary principles and laws are required to be considered by the judicial authorities at
the time of decision-making.
 Statutory laws- These laws are the binding principles and parties' rights and offenses are
defined by them. The punishments are also provided by these laws in case of different
circumstances. The statutory law varies from administrative law or regulatory law which
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are passed by the executive agencies or can be termed as the law which is created by the
decisions of courts.
 Common-Law- Common laws are also referred to as the case laws and are the
applicability of these laws are based on the doctrine of stare decisis, meaning to stand by
the decided things. The legislature rules must be followed by the judges that are
established by the superior judges in case of similar nature’s case (Talmon, 2015).
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M1
The legal system of the UK is very effective in terms of its procedure and efficiency in dispute
resolution. In 2016, the launching of reform programs was made under which the civil, criminal,
and family disputes were made online. The access was given to the UK public to easily go and
use the online format for the legal matters, and this digital system proved very beneficial and
effective in the resolution of various legal matters in a more efficient manner. The online system
allows both the legal authorities and UK citizens to redress the case and manage them online
(Cooper, and Bruin, 2017).
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LO2 Illustrate the potential impact of the law on a business
P3
For effective compliance and growth of the business, it is crucial to analyze the impact of the
applicability of the diverse laws over the business and its purpose. The implication of various
legislations is mentioned below:
Environmental legislation is concerned about the environment protection in the united
kingdom, for instance, the Environmental Protection Act 1990, the Climate Change Act 2008.
This legislation supports eliminating the issues related impact of water pollution and change in
climate due to man-made changes. It is crucial that the businesses take effective measures to
reduce the harm to the environment by monitoring the methods of production.
Health and safety legislation concern by providing defense for the health and safety of the
workers at the place of employment (Straker, et. al., 2016). It supports eliminating and assessing
the risk to both the employers as well as employees. By abiding with the Health and safety at
work act, 1974, assist the organizations in analyzing the impact of risk over the business
functions.
Consumer legislation aim is to protect the consumer's rights and analyzing the unfair terms of
the contract which impact the consumer interest. Consumer Rights Act, 2015 is enacted to
protect the consumers by providing them several rights against any unfair contract terms
(McConnell, 2015). If any violation of consumer laws makes the business accountable for
penalties and negative publicity.
Legislation on data protection and confidentiality binds the businesses or workers to protect
the confidential and personal information of their clients. Data Protection Act (DPA) 1998,
ensures the businesses to comply with the protection policies mentioned under this legislation. It
assists in managing the confidentiality and harm to another, from disclosing the personal data of
the clients.
Rules and regulations relating to cybersecurity specify the measures that provide security
against the unauthorized access over the information of the clients (Shackelford, 2014). It
supports the businesses to maintain and comply with the rules and regulations mentioned under
ten Data Protection Act, 1998 and GDPR (General Data Protection Regulation).
Employee legislation, equal opportunities, and anti-discrimination
To maintain equality at the occupational place, there are several legislations are enacted that
protect the employee's dignity. It protects every employee against the practices of discrimination
and ensures that employee would be treated equally in the workplace (Selwyn and Emir, 2014).
The undermentioned legislations assures that each employee would be accepted with irrespective
of his or her color, religion, belief, nationality, sex, maternity, language, race, caste. There are
several acts which are enacted by the UK government for this purpose are as follows:
 Equality Act, 2010
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 Race Relations Act of 1965
 Sex Discrimination Act 1975
 Disability Discrimination Act 1995
 Employment Equality (Religion or Belief) Regulations 2003
Employment law and its impacts on business decisions and contracts
Employment is the contractual relationship between the two or more parties where the
employees agree to perform on the employer terms and conditions. In the case of
maladministration, it is an action of the body of the government, which seems to be unjust,
unreasonable and unfair. This maladministration process in the United Kingdom is administered
and monitored by the Ombudsman. At the employment, it is the obligation over the director to
perform their responsibilities as per the provision mentioned under Section 171to 177 of the
Companies Act, 2006. Directors are accountable for the task delegated to its employees and take
a decision which is in the best interest of the company as well as its workers. It is important that
the decision of the business must be taken in such a way which provides benefits to both
employees as well as an employer. To make this law effective it is important the contract must be
fair and consist of all the essentials of the English Contract law. This law is essential in
incorporating fair terms in the contract (Cartwright, 2016).
To interact with the employment law, it is significant that their must respectful relation between
both the employee and employer. It is important that the employee must feel comfortable in the
organization. Employment Rights Act, 1996. This act mutually obliges both the employees and
employer for their duties and obligations towards the organization, for instance, cybersecurity
regulations.
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M2
Legislations are the governmental laws, which is created for the benefit of the country and its
citizens. Before enacting any legislation like environmental legislation, health, and safety
legislation, the government analyzes its positive and negative impact over the society (Marson
and Ferris, 2015). The above-discussed legislations is one of its examples. Regulations are
enacted to carry out the main purpose behind specific legislation. Its main purpose is to fulfill the
purpose or provision behind any legislation. Standards are the specific provisions or the quality
standards which are only accepted after qualifying any products or services standards. These are
the guidelines which require to be fulfilled in the production process.
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D1
For evaluating the functions of the legal system can be used as the base. The judicial authorities
act independently in the UK and they make sure that all the UK citizens are protected
individually and equally. The focus is also in ensuring that all the parties are protected with their
rights and interests and justice is received by them. The impartial decisions are made by the
judicial authorities in tribunals and courts. But there are some of the challenges that the UK
people have to face regarding the legal system as the proceedings include high cost and much
time is taken for the whole procedure. However, the online platform has been provided to the
citizens to access the judicial system (De Lacy, 2013).
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LO3 Examine the formation of different types of business organizations
P4
Partnership business is operated by two or more owners, instead of a single owner. The duties
of the firm are divided into partners and where one partner is accountable for the financing
operations and other is for managing the operations of daily. The liability to pay the business
debts is upon the business owner of their assets.
A sole proprietorship is the easiest and simplest form of business where the business is run by a
single individual for own benefits. This type of business wholly depends on its owner decisions.
A sole trader is solely accountable for managing all the functions.
A Company is treated as a separate entity and considered as legal person which possess the
rights to file a case, can be sued, enter or terminate any contracts and have perpetual succession
(Johnson, 2013). The procedures of forming the company are stated under the Companies Act,
1985. Sections about the company formation are mentioned below:
 Section 7 determines the method of company formation
 Section 8 deals with the provision of Memorandum of Association
 Section 9 deals with the registration of documents
 Section 10 sets out capital statements
 Section 11 consists of the contents of the guarantee statement
 Section 12 contains the provision proposed officers
 Section 13 is concerned with the compliance statement
 Section 14 states the registration requirements
 Section 15 contains the provision about the certificate of incorporation
 Section 16 provides the effects of registration
It is important to rescue the company in case of its default in payment to the creditors. As per the
provision of the Companies Act, 2006 deals with the insolvency and winding procedures of the
company. Winding up is the last option, in case if there is any chance of revival of the company,
then the court can cancel the winding-up petition. Creditors have the right to file the petition to
the court to wind up the company to receive their payment given to the company.
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