Business Law Report: UK Legal System, Business Types, and Disputes

This business law report provides a detailed analysis of the UK legal system and its impact on businesses. It begins with an introduction to business law and the legal system of the UK, including the sources of law such as legislation, EU directives, and case laws. The report then explores the role of government in law-making and the application of statutory and common law. It evaluates the effectiveness of the legal system, discussing recent reforms. The impact of employment, company, and contract law on businesses is illustrated. Furthermore, the report differentiates between legislation, regulation, and standards and their impact on businesses. It then delves into different types of business organizations, their management, funding, pros, and cons, offering a critical review of each. The report concludes by recommending appropriate legal solutions for business disputes and critically evaluating these solutions. The report also includes a table of contents, references, and an introduction to provide a structured and comprehensive overview of the topic.

Business Law

Table of Contents
INTRODUCUTION........................................................................................................................5
ACTIVITY 1...................................................................................................................................5
P1 Presenting different sources of law........................................................................................5
P2 Role of government in making law and application of statutory and common law in justice
court.............................................................................................................................................5
M1 Evaluation of effectiveness of legal system in context of reform and development in recent
time..............................................................................................................................................7
P3 Illustrating impact of employment, company and contract law of a business........................7
M2 Difference between legislation, regulation and standards and their potential impact on
business........................................................................................................................................8
D1 Critical evaluation of legal system.........................................................................................8
P4 Different types of business organisation................................................................................9
P5 Management and funding of these businesses......................................................................10
M3 Pros and cons of different types of organisations...............................................................10
D2 Critical review of all types of business organisation...........................................................11
P6 Recommendation of appropriate legal solution for business disputes.................................11
M4 AND D3 Critical evaluation of legal solution and their comparison..................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCUTION
Business law is that body of law which governs and direct he conduct of a business in
legal direction and stooping it form doing any illegal activity against the law. In the present
repost a detailed discussion related with legal system of UK is done. This includes the sources of
law, hoe a law is made, how they are applied in the court system and what are the recent reforms
and developments in the system. Moreover, the impact of employment, company and contract
law on a business is defined along with impact of legislation, regulation and standards. Along
with this different types of organisation are presented with their pros and cons and critical
review of all of them. For the last section of the reports two different business problems are take
to present legal advises and same are also critically evaluated.
ACTIVITY 1
P1 Presenting different sources of law
The different sources of law from which law under the English legal system are made:
Legislation: includes tow sources that is act of parliament and the delegated legislation. Under
the act of parliament legislation and statute laws are made through the process of parliament with
getting assents from both the houses of parliament and the queen. Under the delegated legislation
the public bodies and local authorities are given power by the parliament to make laws and
legislation over particular matter.
EU directives: the EU have 18 nations as tis members and it has a set of laws which are
applicable to all member states (Barroso, 2018). The directives are the set of guidelines and
specific standard to follow a law which must be abided by al the member states.
Case laws: are the oldest source of UK legal system under which the decision of a provision
case is followed in the later cases to give a ruling on other cases with same matters and facts.
This power to the decision of law suit is given by the doctrine of judicial precedent.
P2 Role of government in making law and application of statutory and common law in justice
court
Role of government in making law:
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The laws are made through the parliamentary process. A draft legislation is presented to
the parliament after getting an approval from the cabinet ministers in the form of a bill. The bill
is presented to either of one of the houses of parliament. The bill is presented through first
reading to the house where title of the bill is read out. It is defined that what is going to be
discussed in future. From here bill goes to second reading where the principles of the bill are
debated and voting is done to accept to project the bill. After this bill is sent the house committee
under the committee state where intense discussion and debate is done and also amendments are
made at this stage (Adams, 2010). After this bill is sent back to the members of parliament
through report stage where the house consider the changes made and. Form here bill goes to the
third reading where final discussion is done and voting is done over acceptance or rejection of
the changes and modified bill. From here bill goes to other house where it went through same
stages and if changes are made it is sent back to the first house for consideration. This process
continues till both houses reach to same consent level. After getting assent from both houses the
bill is presented before her Highness to get final approval. With consent from Monarch the bill
becomes a law.
Application of Statue law:
The statue laws are made through the act of parliament and have a compulsory binding
order to follow them while giving a decision over a case. The status laws are interpreted by the
judges in the justice court through internal and external aids available. The judges and court do
not a have a right to question a status law and its application. The relevant law over a case is
identified and interpret them with help of the assistance available. The example of status laws
are Equality act, 2010, companies act, 2006 and others.
Application of Common law:
The common laws are made through giving binding effect to the decision of cases laws
in the justice court. This laws are required to be referred when decision another case with similar
subject matters and facts. The judges here have a power to apply their discretion in its
application as when they feel there is omission in the previous decision regarding consideration
of evidence or interpretation of the law. Such ads in the case of Pimlico plumber significant
reference from the decision of case Uber v Aslam was taken.
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M1 Evaluation of effectiveness of legal system in context of reform and development in recent
time
In the recent times there have been many changes in the English legal system which
includes removal of authority of House of Lords from the court structure and insertion of
Supreme Court. Moreover, the authority from the police was taken and the commission of police
authority was formed to make the justice application more intact. In the recent time there has
been a significance consideration of alternative dispute resolution methods for resolving the
disputes between parties under business transection. These changes have made the justice system
of UK more intact and there has been more significance delivery of the justice in UK.
P3 Illustrating impact of employment, company and contract law of a business
Employment law:
The employment laws include different laws under the same domain including
Employment rights act, 1986, Health and safety act, 1974, Equality act, 2010 and others. This al
guides the relationship between employee and employer. The employee are given rights and
power under these acts. In case any of the right or privilege given to employee is breached there
are serious legal consequences upon the employer. For example in the case of Uber v Aslam the
employment rights act was applied to determine the employment status of the employees of the
company.
Contract law:
The contract Act, 1999 defines the guidelines on governing the relation between parties
under business contract. This act outlines the duties and obligation of the parties over the
promise made under contractual agreement. The rights and duties are also defined in the act
which makes the legal remedies for any kind of breach made under the contract. The impact of
this act is that it allows the business to make legally binding contract with presetting legal
remedies in from of compulsory contract performance, fine, penalties imposition or even
imprisonment. For example in the case of Carlill v Carbolic Smoke balls, 1932, it was
established that though invitation to treat do not make a binding legal contract but company
made a unilateral contract with the consumer and it was a biding one on the company. The
company was held to complete the promise made under the contract.
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Company law:
The companies act, 2006 outline the way in which a company direct is business operation
and activities under the legal framework. It also defines the way in which it can be liquidated to
stop the business from operating. The act also defines the duties and responsibilities of directors
of company where they are required to act in accordance with the act. Within the statute law the
legal status, rights and power of the company are also defined. In case the provision of this act is
not followed the company as well as its directors can be held liable for their actions. For example
in the case of Lee v Lee air farming , 1960 it was held that as per provision companies act
(existing at that time), company and directors are two separate legal person. The directors can
not be held liable for the actions of company.
M2 Difference between legislation, regulation and standards and their potential impact on
business
The legislations are the statute law formed through the act of parliament which have a
provision of being followed compulsorily without any doubt and questions. Such as application
of Employment rights act, 1986 is compulsory for the business organisation in directing their
activities. The regulations on the other hand defines the guideline on how the law states must be
applied in the actual life and factual scenario. Such a the Employment regulations 1999 outlines
the guidelines and provision on how the clauses and sections of Employment rights act 1986
must be interpreted and applied in the given circumstances arising out of real life scenarios.
Conversely, the standards are the specification over certain criteria which a business organisation
can follow for better application of the law the business. It can be stated that the legislations and
regulations have a nature to be followed with compulsory requirement. Rather, standards do not
have any such requirements, they possess a voluntary nature of following. This means business
may or may not follow the standard published for certain specific criteria. Such as the health and
safety standard, 2010 define the extra guideline of keeping healthy, risk free environment at the
work place and this do not have binding requirement of adherence by the company.
D1 Critical evaluation of legal system
To Start the critical evaluation of the legal system of the UK it can be stated that its
constitution is not presented in a unique codified form. This means not all the status laws made
in UK are written in a single document. The laws are written in scattered formats and all are not
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complied in a single codified document. This is one of the major drawbacks of this system. Yet
is one of the oldest legal structure in the world with still intact in application of legal structure
and giving justice to whole nation. Moreover the legislations and regulations such as
Employments Rights act, 1986 and Employment regulation 1999 respectively are required to
follow compulsorily. On the other hand health and safety standard, 2010 do not have any such
requirement.
P4 Different types of business organisation
Sole trader:
This type of business organisation is formed and operated by a single person who is
responsible for handling all the activities of the business. The profit belong to the owners only.
The liability of the sole trade is unlimited and he can be held liable to meet financial obligation
of the business. This type of business is not registered and does not require meeting legal
obligations.
Partnership:
This type of business are formed and operated by two or more individual who agree to
come together to share responsibilities and profits of the business. All partners are the
responsible for the operations of business and share profits among themselves. The liability of at
least partners in partnership business is unlimited. Also all partners are equally responsible for
the actions of firm. The business is not a registered one.
Limited company:
This is a registered business under the companies act 2006. The company is a separate
legal entity under eyes of law, this means a business on its incorporate becomes a legal person
who is distinct from its members and director. The company have its own property and assets
with separate set of rights and responsibilities along with duties and obligations. The company
gets a legal identity with an right of suing others and it can sue by other as well for its actions.
The liability of the inventors is limited in the company to the leave of their investment in
business.
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P5 Management and funding of these businesses
Sole trader:
The sole trader is a business which is formed by a single person so that person is wholly
responsible to manage the business. The owners is the only person responsible for the business
so he only manages the business activities. The funds under this business are brought in by the
owners as his/her savings or borrowing from family and friends.
Partnership:
The partners in the partnership business are managed by all the partners. All partners
share the responsibility to run the business. They all share their ideas, skills, professional
experiences to take the decision of the business. The funds in this business are brought in by the
partners and loans, family, friends, spouse of partners.
Limited Company:
The limited company has a different structure of management and funding. The
management is done by the directors who run the business and act on the behalf of the company,
there is a company secretory who look in to the legal matter of the business. Moreover, there is a
authority whole look in to financial and other activities of the business. The funds for this type of
business is brought in through angle investors, crowd funding, equity and stocks.
M3 Pros and cons of different types of organisations
Sole trader:
The advantage of sole trader business can be defined as it is the easiest from of business
organisation in terms of formations. The management is easy and all the profit belongs to that
single owner only. Moreover there is not requirement of meeting legal obligation and registering
the business. The disadvantages of this business can be defined the funding is a tough task. The
owners have all the responsibility to run the business so all the burden is no one shoulder only.
The liability is unlimited so owners might have to repay business debts from personal property.
Partnership:
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The benefits of forming this business are that the management and funding of this type
of business is easy as compared to limited company. The responsibility gets shared so burden on
a single person. The partners bring in different set of skill, knowledge and experience to operate
the business. The drawback of this business is that with more people the changes of conflicts
arises. The profits are also shared among the partners. Also the business is not registered so there
is no legal backing of this type of business.
Limited Company
Limited company is the business which is legal registered under the legal structure which
is the major advantage of its formation. The management and funding is through various
different person and sources respectively. The company becomes a separate legal person with its
own rights and powers and responsibilities. The company gets a status of being sues and sues
others. The cons of this business organisation are that required high funds to incorporate it and
funding is also not that easy. The owners lose their ownership with incorporation of the business.
The company is a long structures so its need to meet more legal formalities and pay corporation
tax on its dividends.
D2 Critical review of all types of business organisation
The critical evaluation can be stated as the easiest from of starting a business is sole
trader with less funds and no legal formalities. Partnership is also good for small and medium
business where funding is also low and two or more people want to start a business. But the
tough one in context of formation is a limited company but this is most authentic and legal forms
of a business. On the other hand the sole trade and partnership are not registered one so they do
not have a legal back up in form of sorting remedies under legal framework.
P6 Recommendation of appropriate legal solution for business disputes
Case 1: Insolvency of a business:
ABC limited is going to a financial crisis and unable to repay the debts from law 6
month. The due to the creditors is £50000. The creditors are threating to file a winding up
petition. Can creditors do so and what action the company can take.
Legal advice:
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As per the section 182 of the insolvency act, 1986 credits who sues from a company are
more than £750 have a right to file a winding up petition in the court to liquidate the company.
With its there dues are paid off by selling the asset of the business. For this in the same act
remedies are available to a business to avoid a situation of compulsory winding up order from
court. The company can go under administration, to enter in the compulsory voluntary
agreements with the creditors.
Case 2: Contract formation:
A gave advertisement in newspaper it drink 10 bottle of chilled milk of his brands CoWos in 3
minutes and offers to pay the winner £500. This must be done on 15/12/2018 between 9 am-
3pm. Q upon this went to the venue and drink 10 bottles of child milk in 2.5 minutes at 10 am of
15/12/2018. Now is refusing To pay the prize amount. Advise Q as h don’t want to file a case.
Legal solution:
As per the contract law an invitation to treat is not a legally binding contract but here the
advertisement created a unilateral contract with Q. both of them go the arbitration process of
alternative dispute resolution to resolve the dispute. In this process the reference from case
Carlill v Carbolic smoke balls can be taken.
M4 AND D3 Critical evaluation of legal solution and their comparison
Both the legal solution are made as per the laws one is though the litigation process by
the order of court and the in the case 2 it is from the ADR method. Both provide effective
solution for the disputes. Moreover, both the solutions have used different procedure of given
under the legal structure of UK.
CONCLUSION
From the above report it can be concluded that the sources of law under the UK legal
system are legislations, directive form EU and case laws. The statues laws are made through the
act of parliament and application of both common and status law in justice courts have
significance difference. The impact of employment, contract and company law on a business
organisation have outlined clearly with stating real life example to reflect the actual impact on
the business. Furthermore, it can be articulated that the legislations a regulation have compulsory
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requirement of being followed but standards are voluntary for to be followed or not. Moreover, it
can be stated that the different types of business organisations are sole trader, partnership and
limited company. All of them have different legal structure and formation in which distinct
sources of funding and separate structure of management. There advantages and disadvantages
have also been presented. It can also be articulates that for various business issues there are
distinct legal solutions available under the legal framework which can be either from the
litigation process or through alternative dispute resolution methods. The critical evaluation of the
legal solution have also been presented in the report.
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REFERENCES
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employment relations in the UK.
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Private Equity International (PEI), 2016, 261 pp, $699.00, ISBN 978-1-911316-05-3.
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comparative perspective. Legal Studies. 36(1). pp.136-162.
Ng, K. C. C., 2015. Unsolved Conflict Issues Under Company Law Framework: A Comparative
Analysis Between China and UK Law. European Business Law Review. 26(3). pp.473-
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Rahman, S., 2018. Changing Sustainability Norms through Communication Processes: The
Emergence of the Business and Human Rights Regime as Transnational Law. By Karin
Buhmann. Cheltenham, UK; Northampton, MA: Edward Elgar Publishing, 2017. Pp. xxiii,
384. ISBN: 978-1-78643-164-6. US $160.00; UK£ 100.00. International Journal of Legal
Information, 46(3), pp.196-198.
Snyder, L., 2015. Does the UK know something we don't about alternative business
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s_structures.
Turner, J. J. and Amirnuddin, P. S., 2018. SOCIAL MEDIA PRIVACY AND THE LAW:
PERSPECTIVES FROM MALAYSIAN AND UK CONSUMERS. SEARCH-JOURNAL
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