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

This report delves into the intricacies of UK business law, providing a comprehensive overview of its various facets. It begins by identifying the different sources of law, including legislation, common law, European Union law, and the European Convention on Human Rights, and then examines the role of the government in law-making, detailing the processes involved such as first reading, second reading, committee stage, report stage, third stage, and royal stage. The report further explores the impact of company, employment, and contract law on businesses, outlining the effects of the Company Law 2006, employment laws concerning employee protection, and contract law principles. It also differentiates between legislation, regulations, and standards. The report then discusses legally formed business organizations, focusing on sole proprietorships and partnerships, highlighting their advantages and disadvantages. Overall, this report provides valuable insights into the legal framework that governs businesses in the UK.

Business laws

Table of Contents
INTRODUCTION...........................................................................................................................1
Task .................................................................................................................................................1
LO1..................................................................................................................................................1
P.1 Different sources of law.........................................................................................................1
P.2 role of government in law making.........................................................................................2
LO2..................................................................................................................................................3
P.3 company, employment and contract law effect on business..................................................3
Difference between legislation, regulation and standards:- .......................................................4
LO3..................................................................................................................................................5
P.4 legally formed business organization & its advantage and disadvantage. ...........................5
P.5 business organization managed and funded..........................................................................6
LO4..................................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law includes all laws that related to business because every for run and regulate
to business it provide many rules and regulations. So this laws make rules about sell, purchase
and winding up to business. It is a body of law that often considered civil law, private law and
public law. Business follow these all laws for maintain proper and systematic business operations
like manufacture, sales goods to consumer and purchase goods as well (Shaikh, Dars and Munir,
2018). This report will be cover that different sources of law, role of government in law making,
impact of employment and contract law, different types of laws, organization managed and
funded.
Task
LO1
P.1 Different sources of law.
In United Kingdom four types of source available for law that includes legislation, common law,
European union law and European convention on human rights.
Legislation :- it is created by legislature and its a most important part of parliament of
UK. It has only authority based on London and pas laws. United kingdom parliament has two
house one is house of common and second is house of lords. House of common includes 650
members of parliament and every member represent different geographical area. they become
Members of parliament through get vote from many electors and candidates who get highest vote
from electors so they become member of parliament. House of lords includes 800 peers and
whom 600 are appointed by queen on the bases of recommendation of prime minister.
Common law :- common law is create and made by courts, judges and similar tribunals.
This types of laws useful for judges because it take decision in individual case. Senior judges of
appellate court take decision in any cases so current judges who handle same case that they has
to follow same process and same decision. It only law that not present in written form but it
make by senior judges and if any case get by legal system so they have to evaluate and analyze
same cases of earlier and than take same decision. So it is also a source of law (Roth, 2018).
European union law :- these laws make by Europe but United Kingdom has to follow it
because it is a part of European law. United Kingdom can not make any laws and if it want to
take decision for change any laws and regulations so I can not do it. Union of Europe make laws
for develop and improve new area.
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European convention on human rights :- it is a international source of law that provide
rights and regulations to human at global level. European convention apply on 47 states that
human get basic rights like right of freedom and education so these laws increase democracy in
European countries. Peoples of United Kingdom also get helps and rights from European
convention and it is a best sources of laws. They also get protection and also free from politics.
Statutory law :- statutory law is a source of law that make by legislature and it apply on
everyone. This law is passed by executive agency and courts as well that useful for all types of
organization and agencies.
P.2 role of government in law making.
Government is important for making laws because it make laws and its apply on all
agencies and organization in United kingdom. It passed bills and right to change laws, rules and
regulations. Taxation elated all laws are mainly make by government and it also includes in all
laws making process because any laws made in parliament and it houses of common and lords.
Following process and roles of government in law making :-
first reading :- government make laws of any related so all these legislation's and laws
are read by house of common and house of lords of parliament in front of all members of
parliament. It prepare all documents related to making laws and send to parliament for first
reading (Hard and Sparrow, 2019).
Second reading :- it is a second process of law making so in this process all documents
that send by government to parliament. For second reading of all bills and documents common
house of parliament read in front of all members and take vote for consent about laws. Common
house pass these documents to next stage if members of parliament give their consent in large
number. In this stage documents and bills do not read in house of lords.
Committee stage :- after second reading of documents and bills of laws that make and
prepare by government. Committee members examine and evaluate all bills of laws and 16 to 20
members analyze these bills. For every new bill standing committee appoint new members and
chairman give vote only for tie event. If bills are very important and has need in emergency so
committee sent bills to all house of parliament for pass quickly. Many types of bills are prepare
by government like army bills and financial bills so these bills sent by it to parliament and all
bills divided among committee and standing committee for evaluation and analyze.
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Report stage :- committee has to give all reports, bills and documents related to laws has
to sent for report to whole house of parliament with in two weeks. Through this process members
of house has opportunity for add some reports from their own wish and make changes in reports
(Goyal, Kakabadse and Kakabadse, 2018).
Third stage :- it is a stage that all documents and bills are read in house of lord and third
reading is not conduct in house of common. All documents and bills are reviewed at this stage
and after done all above process than all process from starting to end repeated for pass bills by
both of houses of parliament.
Royal stage :- it is last stage of law making and in this stage queen give consent for
passed and declared by both houses. After these all things completed than legislation and laws
are listed in parliament and government ministers get authority for produce and create
legislation.
Statutory and common laws apply in courts :-
statutory laws are apply in courts because this laws make by legislature and government
and all these laws apply for all like organizations, agencies and business so courts has to also
follows. It make by local, state and national government. So these laws has to follow by all
institutions, organizations, agencies and courts.
Common laws is only follow by courts and justice because they has to evaluate and
analyze previous cases and match similar with current case because they has to follow earlier
decision that take by senior judges for solve case. So common laws applies through this process
(Payne, 2018).
LO2
P.3 company, employment and contract law effect on business.
Company law 2006 is a legislation in United Kingdom that includes 1300 sections and
make all rules and regulations related to company. It main purpose is modernize and make rules
and responsibility about duties of director, rights of shareholders and obligations about promote
and improve environment of company. This law also includes many things rules and regulations
for maintain all performance and activity of organization and made by government. It make rules
and policy related to reward, employees and accountability. So from start to winding up of
company all rules and regulation includes in this law. Company law put effects on business
because company has to take license for operate business according to need and also if it winding
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up their business so it has to complete many documentation according to law so business
affected. In this law all things like place of office, turnover and all condition mentioned in it so
that it can not change anything according to own wish. For example if company want to change
their registered office in other state and other city so it has to accomplish formality and
documentation and it is very lengthy process. It also consume more cost and time. In company
law employees limit also mentioned that company can not hire more employees because that is
illegal. Business affected through this law because company has to do all work legally
(Nachemson-Ekwall and Mayer, 2018).
Employment law means laws and legislation that made by government for provide
protection to employees. This laws includes health and safety law, minimum wages laws, anti
discrimination law and unfair dismissal act. So all these helps in provide protection because
health and safety act reduce risk from workplace and provide safety tools in organization for
safety o employees. Minimum wages law provide fair wages that fix by government and anti
discrimination act give protection to employees because members of organization can not
discriminate each other on the bases of color, age, gender and religion. All laws related to
employment motivate to employees. This law affect to business because if government pass
order for change any equipment related to safety so organization has to establish and adopt it for
protection. That things affect to business directly and capital structure unbalance. For example if
organization want to hire only able persona and disable person rejected by it so through
employment law it has to hire all types of candidate who have capabilities and talent.
Contract law is made by government related to agreement of two or more peoples so this
law provide protection to parties that includes in contract. It includes six elements offer and
acceptance, consideration, obligation, competency and written instruments. This law make rules
about all condition like sound mind candidates includes in contract and minor person not allow
in contact because they has not understanding power about wrong and right. In this law all
parties who includes in contract that have to follow rules and regulations. For example if any
unsound mind party include in contract so business affected and business declare void (Yeoh,
2019).
Difference between legislation, regulation and standards:-
Legislation is a rules and laws made by government and legislature for provide protection
to different things because through follow of legislation and laws peoples, company and
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employees get protection. Regulations is a rules that made by government for control and
manage organization that helps in manage business. Standards is make by acts for specific that
use by all organizations.
LO3
P.4 legally formed business organization & its advantage and disadvantage.
Many types of organization establish day by day for fulfill specific objective and for meet
purpose. Many organizations has legal structure and it has to follow rules and regulations. For
establish organizations it has to complete many formalities.
Sole proprietor :- it is a type of organization and it establish by only individual for earn profit.
Its owner known as proprietor it invest capital in business and profit and loss bear individually.
This type of organization and business has not need of formalities and documentation and less
need. Proprietor invest low and less capital for start a business.
Advantage :-
 this business has need of less expenses and require less formalities.
 Proprietor get all profit of business because it has no need of distribute.
 For winding up of business so sole proprietor easily close without any formalities.
Disadvantage:-
 Individual has to bear all loss that occur in business so that thing increase burden on
individual.
 Individual can not collect more capital according to their need and if need occur in
emergency (Peterson, 2018).
Partnership :- this type of organization create by two or more peoples together for fulfill and
achieve same objective. This type of organization has need of legal requirements that is
important for start new business. Legal requirement like partnership deed that includes all
conditions about profit, capital, roles and responsibility. All these things written in deed that
decrease conflicts and dispute among members. These documents registered in relevant act of
partnership.
Advantage :-
 capital increase easily in this organization because it includes more partners so all invest
money.
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 Its establishment is not lengthy and tough and partners of this organization does work
with their full efforts for improve business.
 Different skills and knowledge present in organization so it also useful in develop
business.
 Partners of business direct get profit.
Disadvantage :-
 partners distribute profit of business among them.
 This business suddenly dissolve through conflicts between members and partners and
death of one partner so business easily dissolve.
Company :- this organization is a artificial person and legal entity. Responsibilities is very more
in company like tax pay, borrow money from bank and enter into contract. This artificial body
has many members ad all are work or same objective that helps in increase profit and expand
business. Legal requirement of company like memorandum and article of association that keep
all records and conditions (Hartman, Blair and Blattman, 2018).
Advantage :-
 company issue share to public for increase their capital.
 It do not dissolve through death of members of company.
Disadvantage :-
 it has to need of more formalities that make very lengthy process and consume more cost
and time.
 Company has to share all information about business to peoples that is a big problem of
company.
P.5 business organization managed and funded.
Organizations has needs for operations and regulate their activity for earn profit so it has
to need fund and organization collect funds through many sources. Without funds and capital
business operation can not operate. So it collect funds from external and internal sources.
Through external investment it get funds frequently and quickly. Capital use for every activity
like research and development and beat to competition and purchase or sale. Management of all
organization also different and source of fund different.
Sole proprietor :- in this organization business management is maintain by proprietor
about all things and making decision also by it. Funds get by personal capital that means it is a
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source that business get funds from their own savings that means owner of business invest
money in their business through their own savings for increase business ad earn more profit. It
invest capital for development of business so it easily expand.
Partnership :- management of this organization maintain by partners related to financial
and all types of management that help in do work systematic and proper. It get funds from
Retained profit business earn profit also in earlier financial year so its also a funds keep by
owner and it easily invest money and capital. So it is also a source of fund (Menkel-Meadow,
2018).
Company :- management of company is handle by board of director that includes all
management work and make decision about expand business and earn more profit. It get funds
through Loans and credits owner of business also get money, funds and capital from loans that
means it borrow money a loan and credit from bank and financial institutions for increase capital
of business. Funds is very important for all activities of organization.
LO4
P.6 Legal solutions for resolving a range of disputes
In the business there are many cases offered in the course of business. The companies
needs to control and evaluate the actions of its employees, suppliers and other related parties.
While having the disputes that companies go to court for the relief. The court cases are lengthy
and time consuming therefore there are some alternatives of court in order to resolve the cases
quickly and effectively. The alternative dispute tribunal are the branches of the court and
involves the representative appointed by the court to resolve the disputes in the company and the
other related parties. With the increased use of ADR there is less time consumption of the courts
and also increase in the efficiency of the court cases as they are more focused because of fewer
cases. The alternate dispute tribunal consist of the following three methods to resolve the
disputes without going to court (Lee, Yiu and Cheung, 2018). The methods are-
Negotiation- In negotiation there is no involvement of the third party. The cases in the
negotiation are resolved with the mutual understanding of the parties in disputes. The parties
agree to a common decision which is beneficial to both the parties. The decisions in this type of
alternative dispute resolution are usually unbiased and accepted by both the parties in case. For
example- negotiation between the parties for the product price.
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Mediation – in case of mediation there is involvement of the third party in the case. The
third party in the mediation is usually a independent person and is appointed mutually by both
the parties. The third party takes the decision on the case after hearing all the substances of the
case. The decision by the mediator is unbiased and independent and is not influenced by the
parties in the case. The decision taken in the mediation by the mediator is not legally binding on
the parties in the case. The parties can terminate the decisions by mutual consultations. For
example – the disputes relating to the property (Trakic, Benson and Ahmed, 2019).
Arbitration – in case of arbitration, the decisions on the cases are decided by the persons
appointed by the court. The appointed person are called as arbitrator. The arbitrators are the
private judge who imposes the resolution. The parties in the disputes contract that every further
disputes in the related matter will be resolved by the arbitrator. The decisions of the arbitrator is
legally binding on the parties in the contract. But the parties can appeal arbitration outcomes to
courts, such appeals face an exacting standard of review. For example – credit card agreements
Different sources of legal advice :-
The alternate dispute resolution are the easy and effective resolution of the cases without
the intervention of the court but among them are some differences which differentiates them
from each other. The negotiation is the alternate method by which the dispute can be easily and
quickly resolved as compared to the mediations and arbitration which is quite time consuming
process as it involves the third party. The mediation involves a third party which is free from any
influence and gives the decisions on hearing both the parties which is missing in the case of
negotiation. Also in the case of arbitration there is appointment of the private judge which
ensures that their is legal solutions to the disputes in the cases. The arbitration decisions are more
reliable than the decisions in negotiation and mediation (Rohe, 2018).
Therefore the three of the methods have there own perquisites and are suitable according to the
situations they are applied on. When the case can be resolved by mutual understanding and
support their can be use of negotiation which results in the less time consumption and easy
resolution of the disputes.
Effectiveness of legal solution:-
there are several advantages and disadvantages of the alternate dispute resolution. The
following are the advantages over the litigation of the alternate dispute resolution-
Advantages-
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 There is flexibility in their process
 These are mostly suitable for multi party disputes
 They incur low cost as compared to the court cases
 Through these process parties have a control over the process
 The confidentiality of the contents of the case are preserved between the parties
 The decisions in the alternate dispute resolution provides for the practical solutions
Disadvantage-
 In some cases there is need for court order
 There can be power imbalance between the parties
 There can be some complex case which cannot be resolved by alternate dispute
resolutions
 There is also a need of evidential rules
 There can be quasi- criminal allegations
 A need for interim orders
 There can be a need of expert evidence (Sagara, Yokota and Hyakumura, 2018).
CONCLUSION
The report concludes that there are different sources of law in united kingdom which can
the parliamentary history, the European law and the decided case laws. Also the report concludes
the role of government in law making is very crucial and complex.
Furthermore, report states the impact of company law, employment law and contract law
effects the business. It also includes the difference between legislation,regulations and standards
in the business organizations. The report studies the formation of the different types of
organization which are partnership firms, proprietorship and company. The business
organizations are funded through different sources which can be external or internal sources of
the organization. The report states that the business needs funds to propagate and achieve their
business objective and targets. The report also includes the advantages and disadvantages of
different types of business organizations.
Furthermore , the report states the legal solutions, legal advice and support for dispute
resolution in the organization. The alternative dispute resolution is a solution to resolve the
disputes without going to court. There are three main methods in the alternative dispute
resolution which are- negotiation, mediation and arbitration. The report also states that the
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alternate dispute resolution is advantageous for multi party, flexibility of process, parties have
control over the process and the confidentiality of the documents of the companies.
The report also concludes that these methods provides quick and easy redress of the
problems of the business organization.
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