Business Law Report: Analysis of Business Laws and Regulations

This report provides an overview of UK business law, focusing on various sources of law, including European law, Parliament, and the courts, with a specific emphasis on statutory and common law. It explores the roles of the government in law-making, detailing the parliamentary stages involved in bi...Read More

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
P 1 Different Sources of law..................................................................................................1
P 2 Roles of Government in law making................................................................................4
P 3 Impact of Contract law and Employment law in the business ........................................5
P 4 Different types of Legally formed organisation...............................................................6
P 5 Management and funding of the business .......................................................................8
P 6 Legal solution for resolving dispute in organisation.......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law include all kind of laws and ethics that tells how to form a company and run
business. This also includes all kind laws that govern how to start, run, manage, buy or sell and
close any type of business (What Is Business Law? - Definition & Overview,2019). In general a
business is governed by the civil law of the nation dealing with both public and private law. The
regulation related with contract, hire prices, manufacturing, selling is also defined under business
law. Report is based on the Pip and nut company which is a UK based natural food brand selling
a range of nut butters and almond milks.
This report will base on the businesses laws and its different sources. It will include the
role of the government in making statutory and common law in justice courts. Further this report
will include the impact of contract and employment law in the business operation. Report will
also explain the different types of the legally formed business organisation and how itwill
manage and funded. This report will also describe that different management and funding
sources to set up a new company.
ACTIVITY 1
P 1 Different Sources of law
English legal system: English legal system is one of the oldest legal framework in world
as it is in existence from around 12th century. The legal framework defined the laws guiding the
activities and operations of the business as well as the citizens in UK (Allen and Kraakman,
2016). The legal system is basically divided into three parts:
 European law
This European law is the part of the UK law since 1973 when the UK become the member of
European Economic Community (EEC). EU law takes the priority in the time of conflict. In
1992 Treaty on European Union (the Maastricht Treaty) officially changed the name to European
Community to signify that the objectives of the Community are not just economic The
Maastricht Treaty also created the European Union (EU), which consists of three 'pillars'. These
three pillars support the overarching constitutional order of the Union (Beatty and et.al, 2018.).
Sources of European Law
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The treaties A number of treaties impose the legal obligations on state members. Some
obligations are directly enforced by individual citizen whether the related state member has taken
the action to implement them.
Regulations - Regulations are used to impose uniformity of law throughout the Community.
After, being used of the regulation members have to take effect on all the states (Cameron,
2017).
Directives - Directive comprises the most productive and creative source of European
Community. Directives apply to all state members and its intention is to lead harmonisation of
the law between state and members. Directives set the aims which must be achieved but it not
gives the freedom to implementation method and forms to member state.
Decisions - Decisions only affect the individuals or company and state and state members. It
may be empowering to whom with it has issue to something or stop it from to do something.
 Parliament
Most English law is made with the authority of Parliament. It is comprises of
Direct parliament or legislation and indirect parliament or legislation. Direct legislation build
with Acts of Parliament, which is being created by the passage of a Bill through certain
prescribed processes in the House of Commons and the House of lords (Faúndez, 2016). Indirect
legislation is created by the body of government department or local authorities, in which
parliament under gives the power to legislation under an enabling act.
Most of the legislation is proposed by the government, but some ministers have limited
opportunities to put forward the Private Members Bill. Some private member bill become Act
because limited amount of time availability of the parliament to them.
 The courts
Creative powers - The laws which is made by the courts are case law and some time describe as
common law. When related case come in front of the court it is being followed slowly and
haphazardly. A point of case law may be very narrow in its effect since the courts can legislate
only with related things that have already happened, they cannot legislate for what is to happen
in future cases with different facts. Because of his case law describe the inadequate form of law-
making in a sophisticated industrial society, where legislation is needed to regulate possible
future problems (Kubasek and et.al, 2015).
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Interpretative powers - Most of the laws are statutory, and courts are mainly focused with
interpretation and application of points of law which is prescribed by the parliament Act.
M 1
 European law This European law is the part of the UK law since 1973 when the UK
become the member of European Economic Community (EEC). EU law takes the priority
in the time of conflict. In 1992 Treaty on European Union (the Maastricht Treaty)
officially changed the name to European Community to signify that the objectives of the
Community are not just economic (Miller and Jentz, 2017).
 Parliament Most of the legislation is proposed by the government, but some ministers
have limited opportunities to put forward the Private Members Bill. Some private
member bill become Act because limited amount of time availability of the parliament to
them.
 Courts
Most of the laws are statutory, and courts are mainly focused with interpretation and application
of points of law which is prescribed by the parliament Act.
D 1
Statutory and Common Law
The common law is also known as case law that have been created by the judges in the
case they have heard. There are two types of common law: Substantive and procedural law. A
substantive law is law or rule about behaviour and the procedural laws are some that simply
govern how things should be done.
Adler v George (1964)
A CND demonstrator who invaded a sentry post at an army base was charged with obstructing a
member of HM Forces ‘in the vicinity of a prohibited place’ under the Official Secrets Act 1920.
It was
argued that since she had actually entered the base she was on it when the obstruction took place
rather
than in its vicinity (Miller and Jentz, 2017).
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Held: to dismiss the charge on the basis of a literal interpretation would produce an absurd result;
‘vicinity’ must be interpreted as including the place itself, not just its environs.
P 2 Roles of Government in law making
Parliament performs three core function worldwide to presenting and pass law to monitor
the actions of the government. Parliament has the power to amend, approve or reject the law.
Parliament is closely engaged in law making process but it is depended on the type of the
parliament system. In British system main role of the parliament is to review, amend and pass the
law.
Parliamentary stages to the bill formation:
The first stage of the bill formation is Reading which is mostly bills are processed in the house of
common and then the same procedure is being followed in the house of lords. First reading is just
is a formality in which only title of the bill is announced and then set the second reading date.
Second reading involved the debate and voting system between the ministers who
proposed the bill (Parliamentary Function of Lawmaking,2015). The debate is starts with a
speech from minister who propose the bill and this speech is answered by the relevant and
against minister. After this debate vote has to be done in which vote is taken by the ministers and
count the number of majority who is favour to pass the bill.
After the second reading bill has to be pass the Committee stage which is appointed to
represent the party in this stage committee examine the bill clause by clause in detail. Here
amendments are made in the bill. With this comes the report stage where the debated and
amendments are made back to the House. Here bill is further debated and voted upon. After this
the bill goes it third stage where short debates may be done and voting is done to whether bill
should be accepted or rejected (Oakland, 2015). With this bill goes to another house of
parliaments where it goes to all the same stages, amendments are made and sent back to the first
house to consider the same. With getting approval from both the houses, bill is proceeded to
Monarch, where the Queen formally approves the bill and then it becomes an Act of Parliament.
Statutory and Common Law
The common law is also known as case law that have been created by the judges in the
case they have heard. The decision gives by a court over a case attains a binding effect on the
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lower court. The binding effect is given to the ruling through the doctrine of judicial precedents.
The effect is such that all the lower court are required to refer to the case ruling to higher court
over the same subject matter. There are two types of common law: Substantive and procedural
law. A substantive law is law or rule about behaviour and the procedural laws are some that
simply govern how things should be done (Pour and Sharafatpeima, 2016).
P 3 Impact of Contract law and Employment law in the business
Contract law describes duties of seller that is essential to be fulfilled by the employer.
Contract is the agreement that consumer or client or any part can take into the court to enforce
and contract law is the body of the law that enforce the making an agreement. Anyone who setup
a business uses this contract law both companies and consumer use his law in buying and selling
products, licence the products and activity for employment agreement and insurance and many
more. As in the case of Pip & Nut which is London based law firm, which hired the employees
that if they are working with the Pip & Nut company and handle any case they can not take any
other firm's case or they can not work individually at their home. This create the dispute between
employer and employee and employees can not concentrate on their work at one time (Faúndez,
2016).
Pimlico Plumber v Smith case: Mr. smith was a plumber in Pimlico Plumber
organisation from August 2005 to April 2011. In January 2011, he suffers from heart attack as a
result of which he becomes incapable of performing his job work. For this Mr. smith asked for
reducing working hours on which Pimlico refuses and fired mr. smith. Against such dismisssal
and unfair treatment mr. smith filed a claim. Mr. smith also claim for employee discrimination
made on ground of disablement, denial of sick and holiday pay under the Employment Rights
Act and the Equality Act. The decision of the case in 2018 being in the limelight over the
employment status of an independent worker Smith, working on contract basis in Pimlico. The
lord in this case held that Smith was employer of the organisation. This decision was given on
the fats that there was an overarching contract, business had a tight control over Smith, derives
the branded Van of Pimlico and tracker was attached to van and he also carried an identity card
with fowling instruction from the control room (Pour and Sharafatpeima, 2016).
Employment law is set of law which works foe the rights of the employees and
responsibility of employers. It also governs the relationship of the employer and employee.
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Which include the safety law, pension law, persons compensation law and many more. As Pip &
Nutis a law firm where many legal works has to be done and they have to be maintain the
secrecy in the firm from the outsiders, its employees responsibility to maintain its secrecy any
information is leaked by employee company can charge the case under thye employment
contract (Stark, 2017).
M 2
There are two different types of the legislation
Contract law describes duties of seller that is essential to be fulfilled by the employer. Contract is
the agreement that consumer or client or any part can take into the court to enforce and contract
law is the body of the law that enforce the making an agreement.
Employment law is set of law which works foe the rights of the employees and responsibility of
employers. It also governs the relationship of the employer and employee.
P 4 Different types of Legally formed organisation
There are different forms of business organization available to a business person to form
ad conduct the business under available business structure:
Sole trades: This is a form of unregistered business where only a single person forms
and carry outs actives of the bushiness (Stark, 2017). All the assets and liability pertained to the
owner itself. The profits belong to him/her as well. The liability of that person conducting the
business is unlimited.
Advantages:
 Owner receives all profits.
 Easy to start up and required lower cost.
 Owner is free to make their own decisions regarding the business operations.
 Owner pays only personal income taxes on the profits.
Disadvantages:
 Owner has the limited resources to raise the capital limited.
 Owner alone is responsible for all liabilities incurred by the business
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Partisanship: This is form of business formed by contractual agreement between two or
more individuals. It is a private association of persons having no legal distinction between
personal assets of partner and that of the business (Lee, Yiu and Cheung, 2016). Each of the
partner has an authority to bind the partnership as a whole and forms and partners are bound by
these acts accordingly.
Advantages:
 Get the help in capital that partners will fund the business.
 Partners can share and split their responsibility and provide the flexibility (Teasdale,
2018).
 Decision making process become easy by getting different and new views and
experience.
Disadvantages:
 May create dispute because of the disagreement on some decision.
 A partner cannot transfer interest in the business without the unanimous consent of the
partners.
Limited company: A company is registered under the Companies Act, 2006.With
incorporation its gets a distinct identity of its own separate form its members and directors. The
assets and property of the business belong to itself and owner have no right over the same. The
company gets a right to sue and be sues under its name as it is a recognized as a separate person
under the law. The liabilities and obligation of the directors and members of the company are
limited (Advantages and disadvantages of limited liability company,2014).
Advantages:
 With this type of company it gives the financial security.
 Business owner won't face any personal liability as their acts are undertaken as agent.
 Limited company are only taxed on their benefits.
Disadvantages:
 It need a lot of amounts to start up new business.
 Rules regarding the limited company is different from state to state, it becomes difficult
to start new business in new country and state.
As Pip and nut a natural food brand selling a range of nut butters and almond milks, can follow
the sole traders legal form it will helpful for the company as owner of the company do not
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require the large amount of capital and the profit of the business will be fully owned and only
need to pay personal tax on the basis of the profit (Walsh and Fox O’Mahony, 2018).
P 5 Management and funding of the business
There are various external resources to provide the fund to Pip and nut company to set its
business.
Micro loan program - Micro loans are small loans given to small businesses according to small
business administration This loan is to be given for set up new small businesses, fund repairs,
purchase supplies. The owner of the firm has to pay back this full amount of loan with accured
interest. This repayment terms vary depending on the lender (Walsh and Fox O’Mahony, 2018).
Business Angels - This business angels are the privet inverters who is former entrepreneurs who
helps by investing in start-up a new and small companies. Pip and nut can take fund from these
Business angels. This funding is usually ranges from £5,000 to £150,000.
Venture capital - Venture capitalists invest between £350,000 – £100 million into startups and
growing businesses with tremendous growth potential and traction. They are professional
investors who are responsible for investing and growing some world’s most innovative
companies including Facebook, Spotify, Airbnb and more (The UK's Hottest Startups
Revealed,2018).
Business accelerators - This typically offers new and startup businesses a small investment in
exchange for equity, while providing office space, mentorship, network access and access to
further investors once entrepreneurs have completed the accelerator program. They can be a
great way to grow your start up business but beware the failure rate after accelerator is
exceptionally high and many companies face difficulties transitioning from the high level of
support they receive in the program to virtually nothing.
M 3
Sole trades
Advantages
 Owner receives all profits.
 Easy to start up and required lower cost.
Disadvantages:
 Owner has the limited resources to raise the capital limited.
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Partisanship: This is form of business formed by contractual agreement between two or more
individuals.
Advantages:
 Get the help in capital that partners will fund the business.
 Partners can share and split their responsibility and provide the flexibility (Miller and
Jentz, 2017).
Disadvantages:
 May create dispute because of the disagreement on some decision.
Limited company: A company is registered under the Companies Act, 2006.With incorporation
its gets a distinct identity of its own separate form its members and directors.
Advantages:
 With this type of company it gives the financial security.
Disadvantages:
 It need a lot of amounts to start up new business.
P 6 Legal solution for resolving dispute in organisation
Arbitration :-
It refers to settlement of dispute between two parties and that can be resolved by third party
without interference of the government. It is a voluntary process that is undertaken by both the
parties mutually. In arbitration the decision of the arbitrator is not bounded on the parties but if
they both are agreed to the decision then it is bounded for both the parties. The procedure of the
arbitration is governed by a country's arbitration laws and the rules of arbitration is prescribed in
international chamber of the commerce. It is mostly used to settle the commercial disputes. With
the arbitration, dispute can be settle faster than court or any legal procedure. The proceeding of
the arbitration is generally confidential. There is no need of any official language for the
proceeding they can use any region language that is chosen by parties (Teasdale, 2018).
Conciliation:-
It refers to the settlement between two parties through the negotiation by the independent third
party. It is one of alternative of the court for resolving the dispute. It ensures the autonomy of the
parties means the timing, place, language and the content of the proceeding can be choose by the
parties. Conciliator can be choose by parties who may be not a professional and experience but
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may be the relative and friend of the parties. Conciliation process is a cost effective and time
saving. Conciliator assist each of the parties independently and develop the list of objectives. The
decision of the conciliator are not binding on the parties.
M 1
Difference between arbitration and conciliation:-
In arbitration, the parties are selected the arbitrator and arbitrator directly resolves the dispute
and render an arbitration award that is binding for both the parties. The decision of the arbitrator
is in favour of only one party. In conciliation, the conciliator is settled dispute through
negotiation. It do not resolve directly dispute and give the decision. The decision of the
conciliation is not bounded on the parties (Teasdale, 2018).
D 3
The arbitration and conciliation, both are helped in the Pip & Nut to resolve the dispute that
arises between employee and employee ,employee and employer and make dignity in the
organisation. It is very important to appoint a arbitration and conciliation for the company that
help to make satisfied to both the parties. This process are flexible and the discussion of the
proceeding is confidential that make dignity between the employee and employer , employee and
employee.
CONCLUSION
From the above study it can be concluded that business laws are very important to any
firm whether it is limited company, partnership or sole traders. These organisations have their
own advantages and disadvantages by reviewing theses any new can set up which is best for the
owner in term of the financial capital or legislation and laws. It concluded that there are many
laws in the parliament for the business which has to followed by the employers and employees
bothy to run their business without any hazards.
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REFERENCES
Books and Journals
Allen, W.T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Cengage Learning.
Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
Faúndez, J. ed., 2016. Good government and law: Legal and institutional reform in developing
countries. Springer.
Kubasek, N.K., Browne, M.N., Dhooge, L.J., Herron, D.J., Barkacs, L.L., Williamson, C. and
Giampetro-Meyer, A., 2015. Dynamic business law. McGraw-Hill Education.
Miller, R.L. and Jentz, G.A., 2017. Business law today: The essentials. Cengage learning.
Oakland, J., 2015. British civilization: an introduction. Routledge.
Pour, N.A. and Sharafatpeima, M., 2016. Civil Liability in Construction Contracts and
Compensation Practices in Iranian Law with an Emphasis on British Law. J. Pol. & L., 9.
p.283.
Stark, S.W., 2017. The Work of the British Law Commissions: Law Reform... Now?. Bloomsbury
Publishing.
Teasdale, J., 2018. The work of the British law commissions: law reform… now?.
Walsh, R. and Fox O’Mahony, L., 2018. Land law, property ideologies and the British–Irish
relationship. Common Law World Review.47(1). pp.7-34.
Online
Advantages and disadvantages of limited liability company.2014.[Online].Available
through<http://blog.lawkick.com/advantages-disadvantages-limited-liability-company/>
Parliamentary Function of Lawmaking.2015.[Online].Available
through<https://agora-parl.org/resources/aoe/lawmaking>
The UK's Hottest Startups Revealed.2018.[Online].Available
through<https://www.forbes.com/sites/davidprosser/2018/05/23/the-uks-hottest-start-ups-
revealed/#4f79d155e1b7>
What Is Business Law? - Definition & Overview.2019[Online].Available
through<https://study.com/academy/lesson/what-is-business-law-definition-
overview.html>
What is Contract Law?.2019.[Online].Available through<https://legalcareerpath.com/what-is-
contract-law/>
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