Business Law Report: UK Law, Business Organizations, and Disputes

This report provides a comprehensive overview of UK business law, beginning with an introduction to the field and its relevance to commercial activities. It examines the concept of parliamentary sovereignty, detailing the roles of the House of Lords and House of Commons, and the sources of UK law, including legislation, common law, European Convention on Human Rights, and European Union Law. The report further explores the role of the government in the law-making process, explaining how statutory and common law are applied in justice courts, and illustrates the impact of company, employment, and contract law on business organizations. It also covers the formation of different types of business organizations, comparing the advantages and disadvantages of unincorporated and incorporated businesses. The report concludes by analyzing two case studies, providing legal solutions and drawing parallels with similar cases. This includes a discussion of how both statutory and common law are applied in the court system for decision-making. The report also delves into various aspects of business law such as company law, employment law and contract law and their impacts on business organisations.

BUSINESS LAW

Table of Contents
INRODUCTION .............................................................................................................................4
SECTION 1......................................................................................................................................4
TASK 1............................................................................................................................................4
Discussion on the point ‘Parliament is sovereign’ with various sources of UK law..................4
Explain the major role of government in law making process and how statutory and common
law are applied in the justice courts............................................................................................6
Illustrate how company, employment and contract law has a potential impact upon business
organisation.................................................................................................................................8
TASK 2............................................................................................................................................8
Formation of different types of business organisation................................................................8
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process. .......................................................................................10
3. What are the advantages and disadvantages of company over partnership firm..................10
SECTION 2....................................................................................................................................11
Solve Disputes With Appropriate Case Laws & Legal Solution...................................................11
CASE 1......................................................................................................................................11
CASE 2......................................................................................................................................12
CONCLUSION..............................................................................................................................14
.......................................................................................................................................................14
REFERENCES..............................................................................................................................15

INRODUCTION
Business law is defined as the system of law is enforceable to manage all the commercial
work which are being conducted on daily basis. It is one of those law which provide guidelines
to different sectors regarding how business activities can be conducted (Miller and Jentz, 2017).
Various laws which falls under the category of commercial law are: intellectual property,
contract, company, taxation law etc. It is mandatory for every organization to follow the
guidelines of mercantile law to make themselves safe from different penalties. The most
important aspect is that it helps to solve all those legal issues which are related with corporate
sector through the process of Alternate Dispute Resolution. Also it helps to protect the rights of
every individual.
This project report will be helpful in find the major source of UK law and how it is
formed and who have the supreme power to take all necessary decisions of law. There will be
detail information about incorporated and unincorporated association and how it is beneficial for
small investor. Different case studies are also solved with best alternate solution with the help of
similar cases which have been previously discussed in Companies House.
SECTION 1
TASK 1
Discussion on the point ‘Parliament is sovereign’ with various sources of UK law.
‘Parliament is Sovereign’ is simply defined as the supreme body which have the power to
implement any kind of rules and regulation in the premises of its territory. In UK the power of
makes any law in the premises of UK which included Scotland, England, Northern Ireland and
Wales. the laws which are enforced the parliament cannot be challenged by any people who are
present in the country. Parliament is divided to two parts and they are House of Lords and House
of Commons (Mann and Roberts, 2015). The final approval is always given House of Lords and
once it is declared by them even it cannot be amended or said as void even from the different
level of court which included mainly high and supreme court. The session of parliament is
generally started in the month of October and November every year. Every year the first speech
is always given be the honorable Queen and after listing to that speech the different government
party start to prepare their agenda for the rest of year.

The speech of Queen is mainly prepared by the judges of high court where main focus is
given on roles and responsibility of general public is mentioned. In UK parliament has the power
to amend or overrule any law or act as per the Royal Ascent Act 1961. The sovereignty of UK is
being conducted since 13th century where king has started the concept of parliament is sovereign
(Beatty, Samuelson and Abril, 2018). At present there is not a single which is to be followed by
the parliament UK and as they are said as the top level of authority in the premises of UK.
According to the people of UK the concept of ‘Parliament is sovereign’ has been successful but
since couple of year’s general public are willing to remove the process of sovereignty. At present
many of the laws in UK are prepared in accordance with the area and demand of local people
with the help of elected MPs.
The law of UK has been so vast the it cannot be understood easily as it has been
presenting it self so strongly so that no one can even try to break and rules and regulations of law
which are enforced. There are different sources of UK law which are to be followed by all the
nations which falls under United Kingdom and those ways are listed below with its complete
description:
Legislation is the supreme body who makes laws in the premises of UK. The laws which
are prepared under the process of legislation are made by the House of Parliament which is
located in London. The approval of crowned prince is to be taken mandatory which is mentioned
under the Royal Ascent Act (Cox, 2015). The person who have the major role in enforcing law
through the process of legislation is the hand of House of lords and House of commons.
Common law is one of those law where roles and responsibility is given to the different
level of court such as high and supreme court. Judges have been provided the authority where
they can make any new law only in those condition where legislation is silent or law which is
still silent. This law can be made by having the overview on similar cases which have been
entertained on international level. This types of law can be changed at any period of time with
the prior approval of parliament. Common laws are also legal biding in nature and even no one
can challenge it. If it is found that anyone is not following this law, then strict actions can be
taken by court.
European Convention on Human Rights (ECHR) is one of those law which are
implemented to protect the rights of general public of UK. This law is prepared according to the
condition of different nation of UK. This law has been much beneficial as it provides the right to

every individual to put their point when something wrong is happening with them. Amendments
can be done on those law which are propose by ECHR but cannot be overrules by House of
Parliament.
European Union Law (EU) is one of the law which have commenced around 50% law in
premises of UK. The laws which are enforced by EU cannot be overruled by Parliament and
even cannot be amended without prior approval. This laws are being followed by UK because
they are also one of those member of EU in which they take active participation ( Cleaveland,
Dutcher and Epps, 2015). This law is mainly concerned with social, political and economic
policies. This law helps general people to vote for the process of election through which MPs are
selected for the Parliament season.
Explain the major role of government in law making process and how statutory and common
law are applied in the justice courts
The role of preparing law with in the premises of UK is only in the hands of Parliament
so they plays various role for the purpose of maintaining rules and regulation. The government
have been divided into two parts and they House of Lords (HOL) and House of Common (HOC).
The major role is being played by HOC as because they are the one who have been elected
through the votes of general people. So, they need to prepare law according to the demand and
requirement of public. The role of preparing law start from the process of drafting a bill.
The bill of must be passed from various stage so that it can be finalised as a law or Act. It
is necessary that while commencing any law the Royal Ascent must be obtained as per the term
and condition which have been written since 13th century. The process of drafting start when
MPs draft a bill which is made only after the requirement of common people. Once bill is drafted
it is send for the First Reading where member overviews the proposed bill. It is the duty of those
member who are present in the discussion of first reading that they forward the bill for next stage
if it up to the condition of entertaining (Bayern, 2016).
Next Stage is known as Second Reading where MPs of a parliament do discussion
regarding each and every point of a proposed bill. If they think that the agenda of a bill is up to
the mark then it is forwarded to committee stage. For the process of detail examination
Committee stage is conducted where members can give their opinion on the bill. Next process is
known as report stage which is specially a department who does necessary changes
(amendments) only if it is required.

Before sending the bill to House of Lords it is sent for third reading where process of
voting is done to find who is agreed for the bill. If more than half member of House of commons
don't agree on the bill then it is not possible to send for further proceedings. Once, resolution is
passed then bill is send for to the House of Lords. The major role of House of Lords is to check
where bill should be passed or not and if they think that it can be beneficial (Orlov, 2016). After
approval is received from HOL it is transferred for final formalities which is obtaining the royal
ascent under Royal Ascent Act, 1961. The authority to sign the bill is only with crowned headed
person. This is the role which is being played by the government of UK in forming new law or
Act.
How common law and statutory law are helpful at the time of declaring result in Justice
court?
It is said that both common law and statutory law plays very crucial role in context of
Justice court because the decisions which are being given by Justice court are based on those two
laws only. From common laws point of view it is applied through the process of checking the
past decisions which are similar in nature and decision can be also be as similar as prevision one.
When it comes to applying Statutory law it is said that Justice court declares its decision on the
basis of law which have been written in legislation. This is the process through which both
statutory and common law are being applied in Justice court.
Case Law: Jacky v. John
Facts: In this case it was found that Jacky was the one who killed John's brother so John decided
to file a case against Jacky.
Judgement: The decision of Justice court was decided on the basis of statutory law as it
mentioned that no on is allowed to kill anyone.
Case Law: Jonny v. Sunny
Facts: In this case it was found that Jonny took the Sunny share with unlawful activities which
was against the law.
Judgement: In this case court decided that the given decision is based on common law as
decision which was given was similar which have been discussed before.

Illustrate how company, employment and contract law has a potential impact upon business
organisation.
It is said that while conducting any business activities the role of business law increases
at it must be followed and even it provide guidelines that work can be managed. It is beneficial
because it one of those law which is helpful in for taking decisions on regular basis. Some of the
laws which have have a huge impact on day to day activity of business organisation are
discussed below which its major impacts.
Company law: It is one of the branch of commercial which helps to deal with the
activities of business on daily basis (Backer, 2015). It can be said that it is not possible to run any
organisation without the guidelines of company law. It has the major impact on day to day
activity where company need to conduct various meeting as per the instruction of a law and even
it makes the decision making process as a lengthy process where it increase the overall expenses.
` Employment law: It is one of those branch which deals with the employment section.
This law have major impact on the activities of a business by instructing how much company
should pay to their employee's and if this laws are not being followed that heavy penalties can be
imposed at any period of time.
Contract law: The impact of a contact law shows that company must read the guidelines
of contract as it cannot be terminated in the midway way of a project. The impact shows that if
business organisation does that then it will fall under the category of breach of contract where
company can be sued at any time.
TASK 2
Formation of different types of business organisation
Companies Act, 2006 can be defined as the law which regulates the business activities
with in the boundary of UK. It is important for every organisation that they follow the guidelines
of this law to work in a free environment (Kapottos and Youngner, 2015). At present, there are
various types of organisation which can be formed to earn profit but it is the choice of investor
that where they want to invest there money. The different types of business with its legals
formation process is given below in detail.
Sole Proprietorship is one of those form of business where investor can earn good
amount of profit which minimum amount of investment. It can be handled with single person

also but it do not have any legal creation from the laws point of view. So, it can be said that there
is no need for any legal document for the formation of sole proprietorship.
Partnership can be defined as the form of business where more than one people come
together with the purpose of earning more profit. It is easy to earn more profit in partnership firm
business investment can be of large amount which can show positive outcome (Stim, 2018). To
form a partnership is compulsory that partner must prepare a partnership deed that must be
deposited to Companies House and after that they should register themselves under Partnership
Act for its legal formation. But still liability is not limited in this form of business.
Joint venture is one of those form of business where main motto of a organisation is to
complete the task on given period time where chances of earning profit is high. This types of
organisation are legal in nature if two or more registered company have applied for it. Joint
Venture must complete the legal formalities where they need to register themselves under
Companies House and should provide MOA stating that who is the responsible person/authority
or how long this organisation will be run.
Limited Liability Company is the form of business which is very popular just because
of its reliability and various benefits which are being provided to it. The main purpose of
forming this organisation is just because of secured liability of investor. Although lots of
formalities need to be followed here which increases the overall expenses of a business
organisation. The legal process to form this types of organisation is that they need to register
themselves under Companies Act, 2006 where they need to submit Memorandum of Association
(MOA) and Article of Association (AOA). It is legal in the eyes of law.
Corporation is defined as those form of business where risk and responsibilities are
required in high frequency. The has on of the lengthy process to incorporate but once it is
registered there are lots of benefits that are being provided to it (Basedow, 2017). The main
reason to form this types of business organisation is that, business activities are not affected from
the entrance and exit of a member. Here, organisation need to provide all necessary information
at the time of registering themselves under Companies House. Some of the documents which is
compulsorily required are Certificate of incorporation, name of first director and shareholder,
MOA & AOA and Standard Industrial Classification. This documents are required to deposited
in Companies House.

Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process.
Incorporated Business Organisation is the form of business were company have a legal
existence because it is legally registered in respective Acts. Even this form of business is very
popular because it can be managed very easily as every single guidelines have been mentioned in
Act. In this form of business there are lots of ways through which money can be raised and it will
help to increase the capital of a company.
Advantages of Incorporated business organisation is that it will have a long duration of
life. Decision-making process will be easier under this form of business. Disadvantages will be
related with expensive formation process and there will be various formalities that need to be
done at the time of incorporation (Rohlin and Ross, 2016).
Unincorporated Organisation is the form of business where documentation is not
required as compared to incorporated business. This is one of those form of business where
individual investor wants to invest their money. According to law there is no legal existence of
this form of business because if there is no requirement of registration in most of the cases. But
some times of this types of organisation faces various issues which is not being faced by
incorporated business organisation.
Advantages of unincorporated organisation stats that there is no requirement of any
kinds of any document at the time of formation. Even company need to not prepare annual
accounts as there is no such requirement. Where as Disadvantage clears that according to this
types of formation there is no legal rights to sue and be sued in the name of organisation. Also,
the liability of a investor is not limited which is one of the major drawbacks of unincorporated
organisation (Ashcroft, Ashcroft and Patterson, 2016).
3. What are the advantages and disadvantages of company over partnership firm
There are different types of business organisation and they have there own pros and cons
according to its formation and legal formalities. It can be said that there are various advantages
of a company over partnership firm and among them only some of them can be discussed. The
major can be said that it enjoys the rights of perpetual succession which is not being enjoyed by
the partnership firm as entrance and exit of even single partners can create the issues in
partnership deed. Also, company have the opportunity that they can raise from various source but

it is not possible for the partnership firm because here money can be raised only from the
personal assets of a partner.
When it comes to the disadvantage of a company over partnership then also there are
various points which can be described. The main point is that company need to prepare annual
accounts but it is not required for a partnership firm (Scheuer, 2015). Companies have lengthy
decision- making process which is one of the expensive process but it is never required for
partnership firm.
SECTION 2
Solve Disputes With Appropriate Case Laws & Legal Solution
CASE 1
As given in the case it can be said that it one of those case where dispute is between
Champion Ltd and its creditor's. Due to shifting of business, company is not able to clear it's debt
on given period of time. Now creditors want to sue Champion Ltd to recover their money
through the process of 'winding up'.
Winding Up is defined as the process where assets of a company is solved with the help
of liquidator who is appointed either by court of company themselves. It is the condition in
which company is unable to pay debt amount on time. It can be applied on private and public
company both. There are two types of winding up process and they are voluntary winding up and
compulsory wind-up.
Compulsory Winding up is one of those process where company is wound up after the
order of court. Here, creditors need to file petition to the court against defaulter company. To file
the petition creditors must have the knowledge that debt must be around £750 as cases below this
figure cannot go under compulsory winding up. If order of a court is passed, then liquidator is
appointed (Winding up by the order of court, 2018). The responsibilities of liquidator is to
calculated the value of assets and sell them. Then amount is being paid to credits and all other
related parties.
Voluntary Winding Up is the process of selling assets of an organisation by appointing
the liquidator in the company. The decision is voluntary winding up is taken by board of
directors where they decides that company is unable to pay their debts and it is better to wind-up.
Resolution must be passed for this process.

NOTE: Notice of passed resolution must be posted to personal website and even it local news
paper too.
In this case, company must be consult with their creditors that winding up is not
appropriate solution to pay the money. They must try to ask them for some extra period of time
to clear their debts which is will be beneficial for both Champion Ltd and its creditors. Even
winding up is one of the lengthy process too.
CASE 2
The second case is related with the breach of contract where three party are involved and
they are Mr. Anderson, Amber Ltd and Beta Ltd. There was a contract between Amber Ltd and
Mr. Anderson that 12 months prior notice must be given from either side before leave the
premisses of a company. But Mr. Anderson didn't do that and breach the contract and joined Beta
Ltd. The main default which was done from the side of Mr. Anderson was that the reason which
he gave before leaving Amber Ltd was justifiable. So, now company wants to file a case against
him for recovering the legal damages.
Contract can be expressed as the law which stats that it is a set of agreement which is
done between two or more than two organisation or person (Persadie and Ramlogan, 2015). It is
said that every day people involve in a contract either it can be voluntary or written. Agreed
party must give focus on the term and condition of contact because once entered into contract
cannot be terminated in-between. If is found then it will fall under the category of breach of
contract.
Breach Of Contract is that condition where any of the involved party fails to perform
there part of work. In this condition, defaulter can be sued at any period of time where various
penalties can be implied. But, the major thing that must be kept in mind that contract should not
be void or voidable. In this case the it can be said that there is a breach of contract by Mr.
Anderson so Amber Ltd have the rights to receive legal damages from Mr. Anderson. But this is
not the applicable way to solve dispute between them. The way that can be helpful to solve their
dispute is Alternative Dispute Resolution(ADR) and even that is legal process too.
Alternative Dispute Resolution(ADR) is the legal method to solve dispute between
involved parties. In this process there are three different methods that can be applied for solving
out the issue. It is one of the most easiest way which provide flexibility(Cowan, 2018). The main
purpose to establish this legal process because it reduces the time and burden of court.

Mediation is the initial stage to solve legal disputes where mediator is appointed. The
third party listens to the problem of disputed party and after that he tries to advice the parties.
The main focus of mediator is to settle down the matter as soon as possible.
Conciliation is the key method to solve dispute under ADR process. Here, conciliator is
appointed who tries to solve dispute by meeting the term and condition of a contract. It is one the
must recommended method in ADR.
Arbitration is the last method to solve dispute in ADR process where arbitrator is
appointed. Arbitrator must be in odd numbers as here decisions must be followed by the party if
they follow this procedure (Hazels, 2015).
It is a common suggestion to Mr. Anderson and Amber Ltd that they must try to adopt
conciliation method. This method will try to solve their dispute in short period of time where
overall expenses will also be occurred in minimum amount.

CONCLUSION
In the lights of above mentioned detail and provision, it can be concluded that Business
law is one of the essential law which can be very beneficial for conducting day to day activity. It
can be said that Parliament of UK is Sovereign because of its power and rights where were given
to them since 13th century. There are various roles and responsibility that need to be completed at
the time of incorporation company. Also, there are various cases which can be solved with the
help of Alternative Dispute Resolution which is one of the easiest process to solve legal dispute.
In modern period it has been very beneficial.

REFERENCES
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Persadie, N. and Ramlogan, R., 2015. Commonwealth Caribbean business law. Routledge-
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Rohlin, S. M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from
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Online
Winding up by the order of court. 2018. [Online]. Available through:<https://www.gov.uk/wind-
up-a-company-that-owes-you-money>.