Business Law Unit 7 Report: Legal Solutions for Business Disputes

This report, focused on Business Law Unit 7, delves into the intricacies of the UK legal system, its sources, and its impact on business operations. It examines the influence of law on business organizations, exploring topics such as the gig economy and employment law, including a case study on Pimlico Plumbers v Smith. The report further details different types of business organizations, including sole proprietorships, partnerships, joint ventures, and limited liability companies, outlining their characteristics and legal implications. Finally, it addresses the resolution of legal disputes, suggesting suitable legal solutions and the use of Alternative Dispute Resolution (ADR) methods. The report provides insights and recommendations applicable to KANGO(K), offering advice on navigating the legal landscape to foster positive organizational changes.

UnitNumberandTitle Unit 7Business Law
Targeted Learning
outcomes
LO1, LO2, LO3 and LO4
Referred Pass Merit Distinction
Unit Final
Grade
Learning
Outcomes
Feedback Grades
awarded
LO 1
LO 2
LO 3
LO 4
Guidance for improvement / Action Plan / General comments
Date project marked:__________________________

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1Discription about the legal system of United Kingdom..................................................1
LO2 What are the potential impact of law on any of the business organisation....................2
LO3 Detail description about various kind of organisation...................................................4
LO4 Suggesting the suitable legal solution to resolve areas of dispute.................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law is crucial for each and every business organisation for the purpose of giving
and appropriate shape and size. The law and act which are framed in respect of business should
be followed through which overall economy of a country can be changed. It mainly deals in the
department of corporate sector. In order to achieve better outcome it is necessary government
should also formulate those policies which provides additional benefits to an organisation. The
main purpose of the written report is to enhance the knowledge on the topic of nature of the legal
system along with the impact of law on business activities. The report will also examine the
different types of business organisation and what is the main importance of them. The ending
segment will relate about legal dispute and how they can be solved with the help of Alternative
Dispute Resolution. In this file, all the advices and suggestions will be given to the Intern of
KANGO(K) so that they can being positive changes in their organisation.
MAIN BODY
LO1Discription about the legal system of United Kingdom.
The English legal system was commenced when United kingdom uses to rule the world
and even at present all the activities in Great Britain are being carried by English Legal system.
Its main objective is to focus that what are the area where changes are required for the purpose of
introducing effective laws. The law which is start in UK should be followed in England, Wales,
Northern Ireland and Scotland. Parliament's House is the only body that have authority to
introduce new law. Parliament is the sovereign body and no one can raise question about the
laws and regulation which are enforced. The legal system is further divided into two sub parts
and they are Criminal law and Civil law (Adams, 2015). Criminal Law discusses about the topic
where nature of crime is serious. It falls under the category of non bailable offence. For example:
If A is the person who tried to kill B where his intention was to take revenge from him then it
will fall under the category of Criminal offence. Where as civil law is that law where nature of
crime was no intention to hurt other person. This offence mainly falls under the category of
bailable offence. For example: There are two partners in the business M and N where intention
of N was to take the possession of business in which he can easily succeed which is one of the
civil crime.
Sources of UK Law
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UK law consist various sources as there is major requirement of it because it covers large
area when it is compared with other part of the world. There are basically four different source
which are being used to form any kind of law within the premisses of UK and they are custom,
common law , Act of Parliament and European Union Law.
Custom Law: This is the one of the source of law within UK where formation of law is
based on the work which are being done on regular basis in society or community. There are
basically two types of Custom and they are National and local. There are very few chances
where there is the requirement of custom law because must of the part are always covered by
national level of law.
Common law: It is one of the source of UK law where government have delegated the
power to local authorities which includes Supreme Court and High Court. Common law always
complements the Act of Parliament as they are required to commence only those law where Act
of Parliament as not clarified any of the things (Parliament of UK, 2019).
Act of Parliament: This is the most important source of UK which commence law within
the boundary of UK . Here major role is Played by the member of House of Parliament . Once
law which has been approved by Act of Parliament cannot be overruled by any of the body as
reason is simple that they are sovereign. In This final Authority is required to be obtained from
House of Lords where they approve the bill and forwards it Royal Ascent. Website of Parliament
is <https://www.parliament.uk/>.
European Union Law: This is one of the most important source of UK because it is found
that most of the laws which have been commenced within Great Britain are commenced by EU
law. It is also one of those body whose decisions cannot be overruled by anyone. This is one of
the sources which shows their interest in each and every field. The past results shows that out of
total number of law within UK, almost half of them have been commenced by EU law which
shows how big role they plays within the boundary of Great Britain .
In context of the case scenario, KANGO is required to work as per the policies which are
formed with the help of different source. The legal system of UK is stable so there will not be
much and more problem for the organisation to perform their task and duties.
LO2 What are the potential impact of law on any of the business organisation.
It can be said that business organisation always have the potential impact on any of the
business organisation. It can be said that law have huge impact due each and every decisions
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must be taken only after considering the law because single mistake can reduce the reputation of
business within the market place.
The GIG Economy
The GIG economy discusses about the temporary and flexible job. In this, any of the
organisation mainly tells about free marketing system where employees are not required for the
longer period of time. The term “GIG” refers to job for the specific time period.
Distinguish betwixt Employed and Self- Employed
Employed Self Employed
They are the one who is required to be paid on
the time period of month.
This is the situation where person have the
rights to take all the decisions of there own.
There is no flexibility in there field. They have the flexibility in there work as no
one can order them to do any work.
Chances of contribution are rarely valued. The contribution to the organisation is always
valued.
Employment Law: This is the law which is commenced just for the purpose of providing
additional benefits to the employees. It ensure that each and every employees are being treated
equally and because to that decorum of any of the organisation can be maintained easily. It
mainly provides the guidelines to the employees under which they have to perform there task.
Even employment law describes each and every point related with the wages rate of employees
including additional benefits that should be provided to them (Employment law, 2018).
Pimlico Plumbers v Smith
Issue: This is the case which was filed by Mr Smith where he is claiming that he falls under the
Employment of UK and most be provided with all the benefits which any of the worker do get.
But, Pimlico told that he is self employed and each and every report of tax proves that he is self
employees.
Judgement: The supreme court held that Mr Smith is the the one who is working for Pimlico and
GIG is always considered for the shorter period of time. So, Mr. Smith must gets each and every
rights of employment law.
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Conclusion
In my opinion, this is one of that case where lots of complication can be find because in
one side Pimlico has all the evidences which proves that he is self employees but in other side he
has been giving the wages to Mr. Smith since last 5 years. So, from my point of view it can be
said that Mr. Smith must gets the rights of employment because the time duration of five year is
never short. Even GIG economy also explains that freelancing is always for the short period of
interval.
LO3 Detail description about various kind of organisation.
Business organisation is an entity which offers a legal framework that defines the
structure, profit and risk of the business. A business organisation is said to be good if it
successful in satisfying the need of customers by providing them goods and services to meet the
customers need. Organisations are formed since an individuals are unable to achieve their desired
goals individually, so different kind of organisations are formed. Basic forms of business
organisations are: Sole Proprietorship : These are the enterprise which are owned and managed by a
single individual who is connect with the affairs of a business. That individual will be the
whole and sole of organisation i.e., all the profits and losses will be enjoyed and suffered
by him. To make a business legitimate, the business name should be registered with the
government and lastly all the necessary business permits and licenses will be obtained by
the government which will be subjected to safety standards. It is important that person
who is engaged in sole trading must check and also handle all the activity of a firm. Partnership : These are those business entity in which two or more individuals share
unlimited liability and contribute their resources in order to generate sales and profit. All
the profits and losses are shared equally by both the partners. A partnership can never be
formed by missing out one partner. It can be easily formed by a verbal agreement
between two partners and with documentation of a written agreement. The agreement is
made to handle certain situation and states various rights and responsibilities of each
partner . Joint venture : it refers to a business arrangement where two or more organisation agrees
to combine their resources just for a specific span of time in order to accomplish a task.
Ownership, expenses, return on investments, profits, etc. will be shared equally by both
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the organisations. The venture generally comes to an end once the goals are met. A joint
venture is formed when different companies sign a contract to work together towards
attainment of common goal. Under this contract details regarding the role of each party,
contributions, revenue distributions, decision-making power and many other details are
mentioned. All the profits and losses will be equally shared by all the parties. Limited liability company : These are the business firm where the owners are not
personally liable to pay the debts and liabilities of an organisation. Basically, it entails
features of both sole proprietorship and partnership. For formation of a limited liability
company, it is must to choose a legal name and reserve it with the help of online sources.
Then, Articles of Association with the Secretary of state will be filed and decision
regarding how many owners will be there and who will run the business. For making a
business legitimate,various license and Employee Identification Number are required to
be submitted in Companies House. Corporation: It refers to a business entity which is separate and different from its
owners . These are owned by their shareholders, who shares in profits and losses which is
generated by business operations. For formation of a corporation in UK, it is essential for
a company to implement memorandum of association, articles of association as it helps in
establishment of rules and regulations which an organisation needs to follow. It is
required to choose a unique name and address to register the corporation. A Standard
Industrial Classification code will be generated to identify the type of business and what
it does .
Legal Personality
It is defined as the rights and duties which is given to the individual person under the
legal process. Once legal rights are given, person have the capacity to sue and be sued on its own
name. This concept is mainly seen in any of the organisation. In context of person they gets this
rights after attaining the age of 18 years.
Salomon v Salomon Ltd.
This is one the rare case which says that every registered company and their members are
different from each other. In this, the liability of any member can be only up to the amount of
money which they have invested in an organisation. When case was filed within the court, they
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declared there decision that Salomon and Salomon Ltd are different person (Truyens and Van
Eecke, 2014).
Lee v Lee
It is one of those case which took place in New Zealand which is important in the context
of company law because it discusses about the lifting of corporate veil. The judges of this case
decided that, company is separate from its owner. So, it can be understood that directors can
work under the process of contract of employment in which they wholly owned the company.
Duties of Director's
 The main duty of director is manage day to day affairs within the organisation.
 They are required to determine the rules and regulation for taking any kind of decisions.
 Even they are required to conduct general meeting every year.
LO4 Suggesting the suitable legal solution to resolve areas of dispute.
Case Scenario: There is the legal dispute between K company and their IT suppliers.
This results in litigation which was one of the time consuming process and even costly as well.
There are lots of ways through which legal conflict can be resolved. In context of the
given scenario, they are willing to solve there dispute with the help of secondary methods as it is
never a procedures to solve disputes through the method court method as that is expensive
process. To solve this issue Alternative Dispute Resolution can be the best option.
Alternative Dispute Resolution: It is suitable way to clear out the disputes which arises
on daily basis within any work place. This is one of the modern approach which can easily solve
the disputes among the people. There are basically three techniques which can be found under
this and they are Mediation, Negotiation and Arbitration
 Mediation: In this, both the party need to take the advice of mediator who helps both the
party to solve dispute. Here, mediator listen to the points due to which dispute has been
raised.
 Negotiation: This is also of the technique to solve dispute. In negotiation, both the party
tries to resolve their dispute with their own consent through which positive results can be
obtained.
 Arbitration: The person whose case is of typical nature and which requires additional
time period to solve then people adopt this method. This is the case which is solved with
all legal formalities and there is no chances that problem similar problem will raise again.
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In the above case K and their IT department can solve their problem with the help of
arbitration method because there will be everything in written which will not allow to raise any
of the similar case again.
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CONCLUSION
From the above file, it is understandable that business law is one that law which tells that
how any of the business organisation can manage there day to day affairs. It provides the
guidelines under which work is required to be done. The legal system of UK is based on the
human action which there public does on daily basis. Employment Law is helpful for all the
person because it tells that what should be given to the person who is working for any other
person.
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REFERENCES
Books and Journals
Adams, A., 2015. Law for Business Students Mylawchamber Pack. Pearson Education Limited.
Online
Parliament of UK. 2019. [Online] Available Through: <https://www.parliament.uk/>
Employment law. 2018 [Online] Available Through: <https://www.rossmartin.co.uk/>
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