Comprehensive Report on UK Business Law, Legal Systems, and Structures

This report provides a detailed overview of the UK business law, exploring the legal system, sources of law, and the role of Parliament in law-making. It examines the impact of various laws, including company law, employment law, and contract law, on business operations. The report also differentiates between various business structures such as partnerships, public limited companies, and sole proprietorships, highlighting their formation processes, advantages, and disadvantages. Furthermore, it offers legal solutions to potential business problems, making it a valuable resource for understanding the legal landscape affecting businesses in the UK.

Business law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Describing legal system of UK...................................................................................................1
Role of government in law making process and application of statuaries and common laws
over justice courts.......................................................................................................................2
Potential impact of laws over the business.................................................................................3
Explaining difference in formation and nature of different types of business structures...........5
TASK 2............................................................................................................................................6
Legal solution of some business problems.................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business law can be defined as a law which contains law relating to commerce and civil
activities in the country (Koutsias and Dine, 2019). It helps the government in having strong
control and monitor over the all the private and public commercial activities within the country.
The present study includes a brief description about the overall legal system of UK and impact of
various laws over the business organisation. Further, the study also provides legal solutions for
some business problems along with recommending appropriate legal solutions based on various
alternative legal advices.
MAIN BODY
TASK 1
Describing legal system of UK
Constitution of legal system
A legal system can be defined as a set procedure for the purpose of analysing,
interpreting and enforcing the laws along with elaborating all the rights and responsibilities to
each person of the country. The legal system of UK has been constituted by rules and regulations
that need to be followed by the by each person of the country including individuals, corporations,
judicial authorities, etc.
Further, the constitution has provided the power of making and amending the laws to the
parliament of the country. No person in the country have right to override the rules and laws
made by the act of parliament. In this regard, it can also be said that in the legal system of UK,
the parliament is having sovereign state.
Sources of law
Sources of law can be defined as those factors through which the laws are framed in the
country. The major sources of law are as under:
 Legislations: Legislations are the original source of law. They are created by the
legislatures of the country and applicable to each individual, corporations, governing
bodies and even on judicial bodies of country (Mason, 2018). These are framed through
the green paper of parliament and are the basis of each law of the country as well.
 Directives: Directives are the laws applicable over the member states of europium union.
As the UK is also a member of Eurpion union, the directives are also need to be
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considered as the source of law. Each law which attracts the rules of derivatives ned to be
framed as per the law mentioned in the directives.
 Case laws: Case laws are generally termed as the common laws. These are the made by
combining all the previous justice provided by the higher judicial courts. Common laws
are need to be taken into account by the lower divisional courts while providing their
justice.
 European human right law: Further, it is also a major source of law in UK. As,
according to the constitution, no law could be made against the human rights of the
population. In this regard, while forming any law, the European human right laws are
also needed to be considered.
Role of Parliament in law making process and application of statuaries and common laws over
justice courts
Parliament plays a vital role in the developing new laws and amending the existing laws
in the country. For both purpose, a bill is needed to be passed through various stages of
parliament. The whole process starting from preparation of law till passing it in the parliament is
being performed by the ministers of parliament.
Further, the role of Parliament can be more clearly analysed through the following law
making process;
 Preparation of bill: Law making process starts with the preparation of bill.
Parliamentary authorities identifies the need of laws in the country and prepared the bill
accordingly.
 Presenting in front of parliament: After preparing the bill, authorised ministers present
the bill in front of parliament where bill needs to be passed through various stages for
converting into an Act as under.
 First reading: It is the primary stage of parliament. In this stage, the bill is thoroughly
read by the parliamentary minsters in front of parliament.
 Second reading: At this stage, a debate is conducted among various ministers in which
they discuss pros and cons of each clause of the bill (Craig, 2017). They vote for various
clauses of bill. Bill is amended as per the majority of votes.
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 Committee stage: After amending the clauses, the bill is transferred to the committee of
house. Here the committee members discuss the clauses of bill along with all the
amendments made earlier. They also amend the bill if they think it fit.
 Report stage: Committee members report the bill after passing the committee stage.
Again a debate among the minsters of parliament is conducted over each clause of the
bill.
 Third reading: After passing the report stage, the bill is again passed to the house of
parliament. Here a vote is conducted for the purpose of deciding further processing of
bill. after getting majority of vote in favour the bill can be further processed.
 Later stage: At the later stage, the bill is transferred to the another house of parliament.
In the another house all the above mentioned stages are performed again. In case the
another house makes any kind of amendment in the bill, it is again passed to the first
house (Griffith and Tengnah, 2017). This process remains continuous until both houses
agrees upon same set of clauses.
After making both houses agree upon same clauses, the bill is converted into the law.
 Royal assent: For the purpose of converting law into the act, the law is passed to the
Queen of UK for getting her assent over the law.
After getting royal assent the law is termed as an act which becomes bound over each person of
the country.
From the analysis of above procedure, it can be evaluated that the parliament plays an
essential role in law making process. Each stage of this process is performed by the authorised
ministers of government.
Improving local laws by government ministers without going through parliament
The Government ministers have been provided a power through which they can amend
the local laws of the country without applying to the parliament. In this regard, they can improve
the local laws by detecting the need of improvement without going through parliament.
Application of statutory and common laws over justice court
Statutory are the legislations of the country that are passed through the act of parliament.
These are applicable over each person of the country. On the other hand, common laws are set of
Justice provided by the higher judicial courts. Common laws are need to be comply by the lower
jurisdictions while providing their justice.
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In this regard, it can be analysed that the statutory is applicable over all the justice courts.
Whereas, the common laws are applicable over lower judicial courts only.
Potential impact of laws over the business
Legislations, regulations and standards are some key terms of legal system of UK.
Legislations provides laws and rules regarding performance of each activity within the country.
Whereas, the regulations provides the reason behind framing any law. In this regard, regulations
provides a better understanding of laws (Hertogh and Kurkchiyan, 2016). On the other hand,
standards are some minimum quality and quantity that need to be followed for complying with
any law.
As the legal system contains various laws regarding various commercial activities, each
business need to comply with the laws made all the laws applicable to it. In this regard, they
impact various operations of the business.
Potential impact of some major laws over business operations are as under:
Company law:
Companies Act 2006, deals with the company law of UK. It contains law regarding each
activity performed by a business from its formation till the dissolution procedure. For example,
in case, a company is needed to be framed, it need to follow each procedure provided in the
company law. It results in making the formation procedure quite lengthy. Further, it also lead in
enhancing the cost of formation.
Employment law
Employment act 2002, National minimum wages act 1998, anti discrimination
standards, etc. covers under employment law. As the employees are the key element of any
business structure. It decides the rights and duties of both employer and employee. In this regard,
these law have major impact over the business (Lehmann and Zetzsche, 2016). For example, Due
to application of these laws, at the time of employing any candidate into the company, an
employment contract is needed to be framed. It contains all the key rules which need to be
comply by both employer and employee.
Contract law:
 Contract act 1999 contains the rules regarding contract law of UK. The whole
contract law includes various acts like, equality act, health and safety act, 1974, etc.
inclusion of these acts helps in eliminating discrimination among the parties and provide
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them safeguard as well. It provides rules relating to the selling, purchasing of products
and services and other commercial activities as well. These are the key operations of each
business. In this regard, this law also impacts the business operations. For example, In
case, the company wants purchase any asset in the business, it need to prepare a contract
as per the laws of the contract act. In case of any non compliance,. The contract would
become void and unenforceable in the court as well. It may result in increasing the
financial uncertainties in the business.
In this regard, it can be evaluated that all the above laws have potential impact over the
business operations.
Explaining difference in formation and nature of different types of business structures
Business organisations can be categorised on various basis. Nature of the business
represents the earnings of employer and employee, profitability of the business, level of
customer satisfaction, etc. in this regard, there are various types of business formations like:
Partnership:
It is the business that is framed by an agreement between two or more individuals.
Formation of partnership does not need to comply with the large procedures (Kitching, Hart and
Wilson, 2015). In this type of business, the owners, i.e. the partners contains unlimited liability
towards the debts and other liabilities of business.
Advantages
 There is no specific law for the partnership businesses, in this regard, there is no legal
formation procedure for formation of the partenership. No legal boundations over business. In this order, they can effectively perform there
business activities.
Disadvantages
 Unlimited liability of partners. It enhances the risk over the partner of the company.
 Lack of faith of public. It results in enhancing the hurdles in arranging the funds for its
formation.
Public Limited Company
A public limited company is a corporation that is framed to a lengthy procedure of the
company act of UK. This types of business organisation needs to form a set business structure.
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Further, the shareholders are treated as the real owners of company that contains limited liability
upto the amount of shares held by them.
Advantages
 Limited liability of shareholders. It reduces the burden of the owners of company.
 Board of directors, managers, etc. are selected by the shareholders that reduced the
chances of fraud.
Disadvantages
 Due to the application of company laws., it need to follow a lengthy procedure to form a
company.
 Further, due to the lengthy procedure, it also needs to spend huge cost in formation
procedure.
Sole proprietors:
These business organisations are owned and managed by a single individual. There is no
set structure of these types of businesses and also the owner have unlimited liability for the
payment if debts and other liabilities (Epifanova and et.al., 2015). For forming the sole
proprietorship, no legal procedure is needed to be followed.
Advantages
 Law does not provide any formation procedure to the sole properietors.
 As the owner is the whole and sole of the business, there is lack of interference of others.
Disadvantages
 due to lack of legal interfaracnce, there is no faith of general public
 As the owner is the whole and sole of the business, there is Unlimited liability of owner.
Limited liability partnership
Limited liability partnership is another form of partnership in which all the partners have
limited liabilities. Further there is a special law has been formed for a limited liability
partnership.
Advantages
 Its partners contains limited liabilities towards the partnership firm. It also have a set structure of the business.
Disadvantages
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 As there is a specific law that is applicable it, there partners need to follow a lengthy
procedure for its formation.
 Partners needs to incur a huge cost in its formation.
Private limited companies
Same as the public limited companies, private limited companies are also which are
formed as per the rules of company law of the country.
Advantages
 Due to the boundation of various laws, they have faith of the public.
 All the shareholders have limited liabilities towards the company. As the general public can not purchase the shares, it can maintain privacy in the business.
Disadvantages
 As it can not issue shares to the general public, raising fund is a difficult task.
 It need to follow huge rules and regulations of company law.
Critical evaluation of the legal system
The English legal system iks an effective legal system of UK. It have all the rules and
regulations that helps the country in having effective control over each activity of the business.
On the other hand, the major drawback of this legal system is uts unwritten constitution.
TASK 2
Legal solution of some business problems
Covered in ppt
CONCLUSION
From the above study, it can be concluded that the UK have an effective legal system.
Government plays a vital role in the law making procedure. There are various sources through
which the law is made in the country. The study has also concluded that a business organisation
has to comply with many laws of country. Further, these laws also have potential impact over the
business operations. In addition, the business structure can be categorised on the basis of their
formation and legal procedure. The law has provided different rules for each type of businesses
that need to be comply by them while performing their business operations.
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REFERENCES
Books and Journals
Koutsias, M. and Dine, J., 2019. " The Three Shades of Tax Avoidance of Corporate Groups: Company
Law, Ethics and the Multiplicity of Jurisdictions involved”. European Business Law
Review. 30(1). pp.149-182.
Mason, L., 2018. A Continuity of Confusion Rather than a Helpful Synthesis: The UK Supreme Court’s
Failure to Clarify the Correct Approach to Contract Interpretation. Business Law Review. 39(1).
pp.25-26.
Craig, P., 2017. Formal and substantive conceptions of the rule of law: an analytical framework. In The
Rule of Law and the Separation of Powers (pp. 95-115). Routledge.
Griffith, R. and Tengnah, C., 2017. Law and professional issues in nursing. Learning Matters.
Hertogh, M. and Kurkchiyan, M., 2016. ‘When politics comes into play, law is no longer law’: images of
collective legal consciousness in the UK, Poland and Bulgaria. International Journal of Law in
Context. 12(4). pp.404-419.
Lehmann, M. and Zetzsche, D., 2016. Brexit and the consequences for commercial and financial relations
between the EU and the UK. European Business Law Review. 27(7). pp.999-1027.
Kitching, J., Hart, M. and Wilson, N., 2015. Burden or benefit? Regulation as a dynamic influence on
small business performance. International Small Business Journal. 33(2). pp.130-147.
Epifanova, T. and et.al., 2015. Modernization of institutional environment of entrepreneurship in Russia
for development of innovation initiative in small business structures. European Research
Studies. 18(3). p.137.
Online
Brown & Anor v Neon Management Services Ltd & Anor (Rev 1) [2018] EWHC 2137 (QB).
[Online]. Available through <https://www.employmentcasesupdate.co.uk/site.aspx?i=ed37361>.
. [Online]. Available through <>.
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