Business Law Report: UK Law, Employment, and Business Structures

This report provides a comprehensive overview of UK business law. It begins by explaining the divisions and sources of UK law, including treaties, regulations, directives, and decisions. It then examines the impact of Acts of Parliament on businesses. The report includes a detailed analysis of the Pimlico Plumbers V Smith case, focusing on employment status and the employment status checklist. It further explores different types of business organizations, the nature of registered companies (with a case summary of Salomon v A Salomon and Co Ltd), steps for setting up an organization, and the role of directors. The report also discusses methods for raising shares and alternative methods of obtaining legal advice, offering a complete understanding of key aspects of UK business law.

BUSINESS LAW

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explaining divisions and sources of law in UK.....................................................................1
1.2 Impact of Act of Parliament to their business.......................................................................2
TASK 2............................................................................................................................................2
2.1 Brief introduction of Pimlico Plumbers V Smith..................................................................2
2.2 Representing Employment status checklist...........................................................................3
2.3 Conclusion.............................................................................................................................5
TASK 3............................................................................................................................................5
3.1 Types of business organization..............................................................................................5
3.2 Nature of registered company (Case summary of Salomon v A Salomon and Co Ltd)........6
3.3 Steps for setting organization................................................................................................6
3.4 Role of directors....................................................................................................................7
3.5 Methods for rising shares.......................................................................................................7
TASK 4............................................................................................................................................7
4.1 Alternative methods of obtaining legal advice......................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law is replicated as body of law which helps in governing commerce and
business with consideration to be civil law's branch and directly deals with problem of public and
private law. It has directly regulated with hiring practices, manufacture and sales of different
consumer goods and corporate contracts as well. The present report will give brief discussion
about divisions and sources of UK's law and associated issues. It will provide brief study of case
Pimlico Plumbers V Smith along with employee status checklist. Further it will give nature and
explanation for registering business organization along with role of directors. This report will
also provide alternative methods for obtaining different legal advice.
TASK 1
1.1 Explaining divisions and sources of law in UK
The sources and divisions of UK law are stated below:
 The treaties: There are various treaties such as Treaty of Rome 1957 and Maastrichit
treaty 192 which is revised through Treaty of Lisbon 2009. It directly defines constitution
of European union. The treaty of Amsterdam 1997 and treaty of Nice 2003 has
significant constitutional effect which is enlarging and changing various obligations of
member states. Some obligations are enforceable through individual citizens rather
relevant member state has considered different legislative action for implementation.
 Regulation: These are directly intended for imposing law's uniformity throughout the
entire community. It will take impact in every member state on immediate aspect for
issuance.
 Directives: It consists of various fruitful sources of law as its application on every
member states are directly intended for leading harmonisation of law among member
states. It helps in creating similarity but not identical. The objectives have been set which
could be attained but choice of form is left along with implementation of method for
every member state.
 Decision: It directly impacts only specific member states, individuals or organization. It
might empower party to whom it is issued for performing something or for preventing it
does something (Bell, 2018).
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1.2 Impact of Act of Parliament to their business
The law of English is created through authority of parliament. In this context, direct
legislation consists of act of parliament which is framed through passage of bill via certain
prescribed process in commons house and house of lords. Further, delegated legislation is
formed through body which has provided power to legislate via parliament under enabling act.
The practice of delegated legislation through which bulk of law is framed on every delegated
year instead of direct. These specific legislation are mode through which both local and central
government agencies are administered over policies. In the similar context, more than 2000
regulations are enacted on yearly aspect. These might helps in limiting benefit entitlements and
increment in required hygiene standards in a fast food business for helping to keep local parks
free with noise pollution. It has both pros and cons as it is referred as controversial such as:
The parliamentary process of legislative is protracted and slow and with perspective of
parliament it is very difficult for completing annual legislative schedule. It has absence of time
for debate on fine details related to regulations which are necessary for executing government
policy. However, details of policy administration are identified through relevant government
department, as parliament might be deprived of opportunity for question and to debate about
them. The formation of legislation has need of different specialist knowledge and different rules
could be introduced on quick and easy aspect. On the contrary, huge quantity of delegated
legislation is formed in each year which creates difficulty for lawyers to keep abreast of all
specified alterations. As adapting different alterations which might be added considerably for
aggregate of burdens related to operations of business despite appropriate circulation of publicity
through regulating body.
TASK 2
2.1 Brief introduction of Pimlico Plumbers V Smith
Gray Smith has worked exclusive for Pimlico Plumbers as they have an agreement which
reflects that he is an independent contractor of organization in business account. There was
presence of organization which replicated to 40 hour working week, as its agreement had stated
absence of obligation for providing or accepting work. Mr. Smith has hired branded van through
business entity and was registered as self-employed (Wright, 2018).
After six year of starting work, Smith has faced heart attack and took decision for
decreasing working days to three from five. Pimlico Plumbers has denied with his request and
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took van and agreement was terminated with him. In this context Mr. Smith has claimed for
unfair dismissal, sick and holiday pay along with disability discrimination. It had been noted that
Pimilco has need for exerting substantial measure related to control over its various operations.
In addition to this, contract was to made references to gross misconduct and wages as Smith was
employed.
2.2 Representing Employment status checklist
For identifying employment status there should be consideration about a particular
individual who is directly involved in contract of service. In the similar aspect, former would be
evidenced through employment relationship for latter of self employment. The contract terms
might be expressed in for of writing but on contrary implied or unwritten differences also
impacts actual relationship among the person with involvement of individual. The HMRC and
court had considered different series of factor for identifying status of employment. In every case
it is important for weighing its significance prior to considering whole picture. The checklist has
given a fast guide for key employment indicators which might be used for denoting that
individual is directly employed or not.
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The above case of Pimlico Plumbers V Smith underlies in self employed category
because of mutuality of obligation. In the similar aspect there are various additional factors
which might be very persuasive for taking decision that individual in business has own right. The
significance of every factor could be only weighed up through consideration of entire business in
round (Employment status checklist, 2018).
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2.3 Conclusion
While discussing whole case of Pimlico Plumbers V Smith with obligation for giving
work along with claim of worker as status of self employed must be undertaken with absence of
obligation. The contract of Pimlico has appeared in contradicting aspect. It has been stated that
absence of obligation for giving work rather than other document. Further, holding as self-
employed it had represented itself with advantages of particular status. It is not considered as
determining factor as this case law has given information that self employed status could be lost
if there is high dependency on work provision.
Hence, it could be stated in nutshell around contract of construction along with its fact of
case such as determination about features of self-employment status. There is presence of limited
control over worker. There is absolute right of substitution along with no obligation to give
work. There worker must be not fully dependent on work provider as clear right for worker has
turned its job.
TASK 3
3.1 Types of business organization
The types of business organization are stated below:
 Partnership
 Sole trader
 Registered public company
 Registered private company
 Other types of enterprise
Partnership: It has absence of public disclosure and general partner is severally and
jointly liable for debt of business entity. The legal setting up cost is minimal apart through
drafting cost of single partnership agreement. The ownership could be owned by 2 or more but
maximum is of 20. It arranges finance through borrowing and management consist of all general
partners. Security has been guaranteed on personal aspect or fixed charged on property.
Sole trader: Similar to partnership with context of privacy as there is absence of public
disclosure and minimal legal setting cost. It ownership is owned by 1 person and management
consist of sole owners. It also arranges finance through borrowing and security is personal
guaranteed on property.
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Company: There must be appropriate disclosure of both financial and commercial
information to public. With context of personal financial protection, there is loss of investment as
limited company unless personal security has been given. The legal setting up cost related to
buying or registration off the shelf. The ownership of company is owned through shareholders
and absence of limit in members. The management comprises board of directors and finance has
been arranged with borrowing or share issuance. The most important is of security as charges on
assets of organization which might be directly fixed or floating along with personal guarantee on
property of major shareholders and directors as well (Macaulay, 2018).
3.2 Nature of registered company (Case summary of Salomon v A Salomon and Co Ltd)
It is replicated as legal entity with separate entity through which members operate for it.
With context of law, it has separate existence in law through individuals for composing it. The
property is held in its name and property belongs to corporation which is quite different through
belonging to separate owners and members related to perpetual succession. Its existences us not
affected through change in membership or his death. The company is ceased and exist only when
it is wound up legally.
The case of Solomon helps in illustrating scope for abusing structure of organization.
This is had illustrated veil of incorporation. Salomon has directly transferred its business of boot
making and primarily it had run sole proprietorship to Salomon Ltd. which was incorporated
with its family members. The cost of this transfer was directly paid to Salomon as mode of
shares and debentures with security against debt on particular assets of organization. Later, the
business or organization was failed and moved to liquidation so the right of recovery of Salomon
against debentures stood at initial for claiming unsecured creditors.
3.3 Steps for setting organization
While setting up business, it totally depends on types of business as in initial stage it
should be registered as limited company, partnership or sole trader.
 Selecting name
 Decision for number of directors
 Picking of incorporation platform
1. It might be public or private as in public company it should be limited through shares and
guarantee where in private it is not defined.
2. The memo must be stated if it is other than public
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3. Compiled through CA and directly registered as public and private
4. In public minimum members are 2 and in private it is 1.
5. While, naming organization there should be plc. in public and ltd. in private company.
6. With context of share capital it should be 50000 pounds along with ¼ paid up capital and
in private there is no limit on capital (Set up a business, 2018).
3.4 Role of directors
 To exercise reasonable care, diligence and skill
 To act on basis of constitution of organization with application of powers
 To ignore conflicts of interest
 To promoting success for shareholder's benefit
 Not to accept advantages through third party
 To declare the other directors of company along with interest which director has
proposed transaction or arrangement with business entity.
3.5 Methods for rising shares
There is presence of significant variation among supply and demand causes increment in
share price until equilibrium is reached. The main reason for increment in price of share is about
observations of people who are looking to purchase stock and then sell it.
TASK 4
4.1 Alternative methods of obtaining legal advice
Alternative dispute resolution is a method for resolving disputes with absence of
litigation. In simple words, it is mode of settling disputes outside the courtroom. Typically, it
considers early neutral evaluation, conciliation, arbitration, negotiation and mediation.
 Negotiation: It is always attempted primarily for resolving disputes. It allows parties for
attaining in order for settling disputes. With context of advantage, this form allows
parties for controlling solution and process (Thompson, 2017).
 Mediation: It is referred as informal alternative litigation. They are individually trained
for negotiation aspect and to oppose parties together for attempting work out agreement
or settlement that are accepted or rejected by both parties.
 Arbitration: It is replicated as simplified version for a trial involved with limited
discovery along with evidence's simplified rules. Further, arbitration is directly headed
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and took decision through arbitral panel. For comprising a panel, both sides agree on
single arbitrator or every side chooses one and two arbitrators. Generally, arbitrator
hearings are lasted among few days to week and meeting of panel is held for few hours
per day. This panel has deliberated specific issues with written description or arbitral
award. Opinions are not recorded on public aspect. Arbitration is long used in regulation
of security, construction and labour but it is gaining popularity in various business
disputes (Hayford, Prenkert, & Raymond, 2014).
Advantages
 The parties have flexibility for selecting what discovery and procedural rule would apply
to their dispute.
 Here parties have chance for selecting mediator or arbitrator which will hear their case.
 There is absence of involvement of jury as they are unpredictable and directly damage
awards on solely aspect.
 It helps in reducing expenses.
 Generally trials are lengthy and in various states and countries it takes several years to
heard case through judge or jury.
 It helps in making outcome as confidential as parties could agree about disclosure of
information during arbitration of negotiation hearings which could not be used later
during ensue of litigation.
 ADR has permitted huge participation through litigants as it allows parties for
opportunity for showing side of story and huge control over result.
Disadvantages
 There is absence of guaranteed resolution which signifies possibility for investing money
and time.
 The decisions of arbitration are final as with few exceptions, decisions of neutral
arbitrator could not be directly appealed. On the contrary, court decisions could be
appealed to appellate court for different legal grounds along with numerous alleged
procedural errors.
 Arbitrators could resolve those disputes only which has involvement of money.
 The procedural safeguards are designed for protecting parties in court which might be
absence in ADR.
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Legal advice: There is absence of single answer related for pursuing ADR or litigation.
Instead, the circumstances of this case is directly concerned with average cost of obtaining legal
advice is of £350 per hour with careful analysis of both concerned parties. With this, arbitration
could be selected for resolving disputes rather than filing or proceeding with a lawsuit which is
filed. It is not common that after filing lawsuit for court perspective and to refer dispute. Hence,
ADR is used as it is less expensive, mutually agreed decision and informal as well.
CONCLUSION
From the above study it could be concluded that business law plays very important role in
present scenario for each aspect. It had shown various divisions and sources of law in UK where
treaties are highly concerned. This report had shown brief introduction about Pimlico Plumbers
V Smith where Pimlico was considered as self-employed along with presentation of employee
status checklist. It has articulated critical review of decision for establishing company with its
types with support of Salomon V A Salomon and Co. Ltd and various steps where registration
procedure is very important. It could be summarised that Arbitration is more acceptible.
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REFERENCES
Books and Journals
Bell, J., 2018. Sources of Law. The Cambridge Law Journal. 77(1). pp.40-71.
Hayford, S., Prenkert, J. D., & Raymond, A. H. ,2014. Employment arbitration at the crossroads:
An assessment and call for Action. J. Disp. Resol. 255.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Thompson, D. B., 2017. Teaching the Business Law and Ethics of Arbitration After
Concepcion. Journal of Legal Studies Education. 34(1). 63-88.
Wright, P., 2018. News from the net: Gig economy workers. Advocate: Journal of the National
Tertiary Education Union. 25(1). p.44.
ONLINE
Employment status checklist. 2018. [Online]. Available through <
https://www.rossmartin.co.uk/employers/essential-know-how/171-employment-status >
Set up a business. 2018. [Online]. Available through < https://www.gov.uk/set-up-business >
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