Business Law Report: UK Legal System, Company Registration, and ADR

This report provides a comprehensive overview of the UK legal system, including its sources, divisions, and associated problems. It analyzes the status of drivers within a company (Pegasus), examining their employment rights and status. The report also details the process and nature of company registration, outlining the different types of business organizations such as sole proprietorships, partnerships, and companies. Furthermore, it delves into alternative dispute resolution (ADR) methods, specifically focusing on arbitration, and advises on its application for resolving commercial disputes. The report concludes with recommendations for businesses and a detailed list of references.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................4
TASK 4............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Legal system of a nation lays down rules, regulations and provisions to operate the
business operation conducted by different organization in the country. The businesses are
required to follow that this legal framework while carrying out the business operation. Usually
issues and disputes arises within firm or among business parties, and for this legal solutions are
also provided under the legal system. The present report cover a detailed discussion of legal
system of UK, with is sources, divisions and problems. Status of drivers in Pegasus is
identified, process and nature of registration of a company is defined and suggestions provided
to solve the commercial disputes.
TASK 1
Introduction to English legal system: the law system of UK is quite old. It began to
take structure in 12th century and main source of making legislation were customs (The UK Legal
System, 2018). But this system was reformed in legislation in 1925, and laws were made by
act of parliament and laws made with customs were named as common laws.
Division of Law
Civil law:  This can be defines as that branch of law which deals with cases
of civil wrong done to a person/business to another.
 The cases are concerned with rights and properties of the parties
to disputes.
 Eg: Personal injury cases, family dispute, breach, tort etc.
 Remedy is granted by court in form of claimed for damages.
Criminal law:  This branch deals with cases of more serious natter which are
termed as criminal offenses.
 Cases are subject to criminal prosecution, penalties are
imposed as imprisonment, community services or fines.
 Eg: Burglary, theft, Assault, sexual assault, Murder, Fraud drug
dealing etc.
Sources of law
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1. Legislation enacted by
parliament:
This is major sources of law in UK is through power and
delegation of parliament. Legislation can be dived into:
Primary: this is act of Parliament under which status and laws
are made by parliament.
Delegated: powers are empowered and delegated to public
bodies or authorities working under the parliament to make the
laws.
2 European law: Directives are needed to be implement in UK given by EU law as
it is a member nation of EU (Sources of UK Law, 2018).
Regulation of EU takes automatic effect in all member countries.
3. Customs : This is ancient rules of the law and are based on general beliefs
bad practices of the people or community. The laws are
applicable only if they are reasonable, certain, and obligatory.
4. Precedent: The decision given by the superior court gets a binding effect
through doctrine of judicial precedent and are applicable to all
inferiors courts.
Problems associated with legal system of UK:
 The UK laws does not have codified constitution in documentation.
 The constitution is based on principle of the doctrine of parliamentary supremacy and
rule of law.
Act of parliament:
An act of Parliament can be defined as creating a new law or modifying an existing law
(Acts of Parliament, 2018). An Act is a Bill that has been approved by both the House of
parliament and has been given Royal Assent by the Monarch. Acts of Parliament make up what
is known as Statute Law. The procedure of transformed into a bill into statues are as follows:
 First reading: title of bill is read out and copy is given to all members.
 Second reading: Debate on principle of bill is carried out.
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 Committee stage: each clause of bill is considered and then voting is done.
 Report stage: Amendment are suggested discussed.
 Third stage: Amended bill is considered and then voted upon.
 Consideration by another house: bill goes through same process in another house of
parliament.
 Consideration of amendments: any changes suggested by anther house it is resent to
first houses for reconsideration.
 Royal assent: with getting a royal assent from Monarch a bill becomes a law.
Tracking: this can be defined as keeping track of the changes in any laws which is
applicable on the business operation such as employment, contract, company etc, all the
amendments and changes in any of theses laws must be updated in the organisation to avoid
legal implication.
TASK 2
Employees and employment rights: Employee have a contacts and get paid for
working as per fixed working hours (Rose and Busby, 2017). All material and equipment are
provided by employer. They have rights to get statuary pay along with leave, holiday, sick and
bonus pay.
Self employed\ contract based employment: they do not have any contract, works on
their terms and condition, bring in all their tools and equipment to do work. They do not have
any employment rights.
Pimlico case: in this case it was held by the court that plumber who worked on
contractual basis for pimlico were working under contractual agreement and were given a status
of employee of Pimlico. They were granted rights available to employee such as sick, leave
and Holiday pay, bonus etc.
Employment status: the drivers has been determined as workers of the Pegasus and this has
been stated by completing the check list:
Determinant for establishment employment
status as worker\ employee:
Applicability on the drivers
Have a contract Yes
Tools and equipment are provided by Yes
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employer
Terms and conditions are defined by company Yes
Self employed can hire someone else to their
work
No
Contract based person are not controlled by
company
No, drivers are controlled by control center of
Pegasus.
TASK 3
Types of business organisation:
 Sole proprietorship: this is established and operated by single person and he/she is
liable for all activities and have right over whole profits.
 Partnerships: this is an association of two or more person who carry out business
operation under one name and share profits in a predetermined ratio (Rogers, 2016). This
can either by registered or not.
 Company: this is registered under company's Act, 2006 with having its own rights and
obligations, the liability of shareholder in a company can be limited or unlimited.
Process of registration of a company
 Subscription to memorandum of association (MOA) which consist name and registered
office's address of the company.
 Preparation of Article of association (AOA) which defines rules and provision of the
company.
 Statement of Shareholder defining issues and subscribe and total share capital of the
business.
 Statement of compliance stating the fact that all legal formalities are duly complied
with.
 The name of the company must be such that is not similar and giving resemblance to any
other company's name.
Nature of company on registration- legal personality
With getting register a company gets an identity of a legal person in the eyes of the law
and considered as a separate legal entity (Lee V/S Lee) different from its members, owners and
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shareholders. The status of corporate personality was given to a company under the decided case
of Solomon vs Solomon. The company have its own assets and liabilities, rights and obligations,
property and outstanding.
Role of directors:
 To act within the powers assigned under AOA.
 To exercise reasonable skill and diligence.
 To exercises independent judgment without getting influenced by others.
 To promote the success of the business.
 To not take interest in any present of future business transaction.
Raisin capital - advantages and disadvantages
Sources of business finance Advantages Disadvantages
Loans and mortgages Do not have nay rights over
equity and many options re
there to raise loans (Lee, Yiu
and Cheung, 2016).
Higher rate of interest and
business with poor credibility
reports may face problems to
raise loans.
Equity crowd funding Increase in public awareness
and attraction of expediences
inventors.
To give away the equity.
Angel investors Benefits more concretion can
be set taken from skilled
investors.
Angle investors have a right
over the equity of the firm.
TASK 4
ADR - Alternative dispute resolution
ADR is a measure to solve the commercial and business disputes out of the court. They
do not involve any litigation process rather ADR processes are cheaper and do not consume
much times of the parties to dispute. This is an informal and out of the court settlement
procedure to resolve the disputes. The methods of ADR are arbitration, negotiations, mediation
and conciliation.
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Arbitration: Arbitration is one of the most referred methods of ADR to solve the
commercial disputes and without going to court (Dau-Schmidt and et.al., 2017). Decision is
given by arbitrator (Impartial) who is appointed by mutual consent of both the parties to dispute.
Case is determined after considering evidences and fact presented by both parties and
conducting an inquiry in for reaching the solution. Decision once given creates a binding effect
on both the parties and they can not appeal against such decision in the court.
Advise: this is suggested to Pegasus that it should refer Arbitration to resolve its commercial
dispute as this is much cheaper than the ppr hour legal advise cost of 350 euros.
CONCLUSION
It has been concluded for the above report that the English legal system is Ont present in
written from and parliament is the regulating body of this legal system of UK with two division
ad four major sources of law. The drivers have been identified as employees of Pegasus and Alex
and Jay has been advised to register their business. To solve their commercial dispute they have
been advised to refer arbitration.
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REFERENCES
Books and Journals
Dau-Schmidt, K.G and et.al., 2017. The Restatement of Employment Law: Perspectives on the
Bench and Bar. Emp. Rts. & Emp. Pol'y J. 21. p.645.
Lee, C. K., Yiu, T. W. and Cheung, S. O., 2016. Selection and use of alternative dispute
resolution (ADR) in construction projects—Past and future research. International Journal
of Project Management. 34(3). pp.494-507.
Rogers, B., 2016. Employment rights in the platform economy: Getting back to basics. Harv. L.
& Pol'y Rev. 10. p.479.
Rose, E. and Busby, N., 2017. Power Relations in Employment Disputes. Journal of Law and
Society. 44(4). pp.674-701.
Online
Acts of Parliament. 2018. [Online]. Available through :<https://www.parliament.uk/site-
information/glossary/acts-of-parliament/>.
Sources of UK Law. 2018. [Pdf]. Available through
:<https://www.soas.ac.uk/library/subjects/law/research/file70249.pdf>.
The UK Legal System. 2018. [Online]. Available through
:<https://www.cilex.org.uk/about_cilex/about-cilex-lawyers/what-cilex-lawyers-do/the-uk-
legal-system>.
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