Business Law Report: Business Law in the UK - Cases and Solutions

This report provides a comprehensive overview of UK business law, examining key concepts such as parliamentary sovereignty, sources of UK law, and the role of government in forming laws and policies. It delves into statutory and common law procedures within the justice system, including the impact of company, employment, and contract law on businesses. The report further explores different types of business organizations, their formation processes, and the advantages and disadvantages of each. It includes case studies to illustrate legal problems and propose solutions, covering topics such as business organization structures and legal disputes. The content is designed to provide a thorough understanding of business law principles and their practical application in the UK context, offering valuable insights into legal procedures and business operations.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1: RULES & REGULATION OF LEGISLATION ......................................................1
TASK 1............................................................................................................................................1
Tell something about 'Parliament is Sovereign'..........................................................................1
Tell about number of sources of UK ..........................................................................................1
Role of Government while forming law and policies.................................................................2
Study of Statutory and Common law's procedure in Justice Court ............................................3
TASK 2............................................................................................................................................4
Explain about different types of business organisation with formation process.........................4
Difference between incorporated and unincorporated business organisation.............................5
Advantage and disadvantages of a company over an partnership firm.......................................6
SECTION 2: SUGGESTING THE SOLUTION FOR LEGAL PROBLEMS................................7
CASE 1............................................................................................................................................7
Case Scenario..............................................................................................................................7
CASE 2............................................................................................................................................8
Case Scenario..............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is the study of all criteria that is important to run a organisation. It covers
the ground from manufacturing, purchasing and selling of goods, commercial contracts to
consumer regulations, tax benefits, trust funds and many more. Without the brief study of these,
one cannot run a business and provide qualitative and quantitative work. The following paper
will include a brief analysis of all aspects of business law which includes parliamentary
sovereignty, various forms of law in United Kingdom. The paper will explain a critical
evaluation of corporate sector, the nature, formation and its different divisions. This study will
also explains the legal procedures through case laws and solutions of solving disputes.
SECTION 1: RULES & REGULATION OF LEGISLATION
TASK 1
Tell something about 'Parliament is Sovereign'
It is said that Parliament is Sovereign but they are they one who have been delegated with
number of roles and responsibilities so that legacy can be maintained in future. The concept of
sovereignty was developed in 18th century where UK government use to have maximum power
within the world. Even they were so powerful that no one was allowed to ask cross question with
them and if anyone use to do that then they were penalised with number of penalties. In current
scenario, they are the only one who have got maximum rights where concepts are same that no
one will ask anything with them. The action which they take are required to be supposed as right
and that even should be followed by all. When they take steps, it is considered that it is for some
of the benefits and positive results will be obtained through it (Mikami, 2016).
Every year queen delivers the speech just to address the House of Parliament. When she
delivers the speech, it is necessary that member of House should give their attendance as no one
is allowed to take a leave. The main purpose of the speech is clear that, this speech gives the
exact idea that how and what types of laws and policies should be commenced. This is counted
as the first day of parliament house on every year.
Tell about number of sources of UK
The area like UK needs the help of number of number of people or department which can
help them to take any of the legal decision and that includes amending any of the existing law or
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even forming new laws and policies. The main source in UK which commences the laws and
policies are:
Legislation: The important source of commencing law is legislation. Here, parliament
has to see the current situation and demand and according to that they have to act. Whenever
they commence the law they make sure that it will be easy to understand and following it will not
create any sort of problem to anyone.
Common law: The cases are being discussed with the court and while discussing it
whenever solutions are not found that they have the responsibility to form new laws and policies
art the time of declaring the result. The main benefit of common law is that it has the power to
form law as per the need and demand of particular case.
European Union Law: This source is important because they cover wider range of area
which involves agriculture law to competition law. The main purpose of EU law is to ensure that
treatment should be given equally to everyone as differentiation creates lots of problem and
issues. When it comes to overview about international law then they does this work in best
possible manner (28 Member and one Legal System, 2018).
European Convention on Human Rights: The area of law which do covers rights of
individuals or organisation is known as European Convention on Human Rights. This is one of
the source which tells that people should not be discriminated on the basis of caste and gender
and even they make sure that opportunities should be similar for everyone.
Role of Government while forming law and policies
The government has to fulfil all of the area where they need to ensure that every steps are
being followed because that automatically reduces the problem and threats. The main benefits
that government do get while following this procedure is that they can do cross checking at any
period of time which makes work easier and faster, also results are fruitful. The first role of
government is draft the bill within the Parliament House. Once, bill is drafting process of first
reading starts in which it is necessary that drafted bill should be given the appropriate title. After
completing this round, it is necessary that member of second reading will prepare plans to check
what are those points which can bring positive result and what are those points which might give
trouble (Morley, 2016). After completing this, they send the bill to committee stage where they
cross check the points which are doubtful and they take the final decision that points should be
changed or not and if they think it must be changed then they transfer it to report stage. In report
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stage, process is quite simple because they are required just to make sure that points will be
amended where questions has been raised. Once they do the amendments they have the
responsibilities to hand the bill for third reading and here voting is needed to check whether
member are agree or not. If they agrees on the bill they draft the bill into House of Lords where
all of the about stages needed to be conducted. After getting the approval from all of the stage
they finally send it to next process known as Royal Assent. In this stage, only approval is
required to be taken from Queen.
Study of Statutory and Common law's procedure in Justice Court
Statutory law: It is a formal body of legislation that is in written format, which provides
the judgements made in the court rooms and parliament which discuss the existence of an Act.
The first implied rule is to follow the judges perspective, which makes each civil case laws result
different from one another (Rohlin and Ross, 2016). These laws are already created, mentioned
and used at different hierarchy's of Courts.
Common law: This law provides the power in the hand of the judges, its base of
formation is by the judges, court rooms and judgements made. Its enlightening in nature and
provides guidelines to the parliament for the formation of new emerging laws. These are new in
each case and its generally undefinable of what solution will resolve the matter.
Illustrate company, employment and contract law and the potential impact upon business
Company law: It regulates the acts and laws that help functioning a corporation, its the
compilation of rights, relations and prosecution of company's overall performance. Having a
whole new changes of laws and acts after a certain period of time involves changing the
workings of business and a lot of paperwork but at the same time provides certain benefits as
proper management and saving tax.
Employment law: This law is the guideline for the relation between the employer and
the employee. It provides the rights of employee and defines the responsibilities on the employer.
It comprises issues such as discipline, harassment, equal pay, data protection, condition of
employment and many more. These rules and acts sometimes become a huge trouble for the
companies, if not implied properly it can cost them on financial and professional levels (Peirce,
2019).
Contract law: This works after an agreement between two parties having common
interest of making profits. It protects both the parties in the case of breech from any party and
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claim the loss using the rights and duties of the parties. It's little expensive and time consuming
in nature, but provides clarity in the business framework plus it diminishes any confusion and
provides proper guidelines to business.
TASK 2
This is the case which is related with the business organisation where all of the three
partners want to earn more amount of profit and for they are trying to take some of the legal
advices from their appointed accounted who manages their business on regular basis.
Explain about different types of business organisation with formation process.
As all of the partners are interested to earn more profit, it will be important for them that
how they manages their business because all of them have different process of formation due to
which they are not required to suffer from any sort of problem. For that, accountant explains
about different types of business entity.
Sole Proprietorship: If any of the people doesn't want to invest their important in
employing under any other person then they can setup sole proprietorship firm where investment
is very low (McCorquodale and et. al., 2017). The main thing which is needed to be understood
in this types of business organisation is that people are not allowed to work unethical as it does
create problem for the people. Only registration in Companies House is required to setup any of
the sole proprietorship.
Partnership: This types of business is small in nature but it does have the huge potential
to work at greater platform as help can be taken from various sources which makes work easier
and faster too. The main thing which can be seen in partnership is that number of options are
available at the time of taking decision which makes work easier and faster. The formation
process is easy because people just have to form deed and that deed should be deposited within
Companies House.
Limited Liability Company: The form of company which is needed to be follow all of
the legal terms and condition is known as Limited Liability Company. This types of company
have various rights and benefits which are not given to other sort of business entity (Phillips and
et. al., 2019). They do get several benefits under taxation which enhances the interest of investor
to invest in this types of business. But, investor are required to fulfil all of the criteria so that
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company can be incorporated legally. Here, name has the important which investor have to
decide and after that they will also need to make the plans and policies that in which sector
company in going to deal in future and even they have to tell that who are the member that will
take active part in the organisation. After that they have to visit Companies House where they are
required to deposit all of the documents for starting their business.
Corporation: The business organisation which have to work for longer period of time to
achieve its mission and goals is known as corporation. This types of company is needed work
according to policies which they have form so that their targets can be accomplish. Here, it is
necessary that wrong decision should not be taken because it directly affected business
organisation for longer period of time (Epstein, 2018). The legal process of incorporation starts
with name selection and then address. Here, director and shareholder has the role because they
select that plans and policies should be formed. Then have to take the legal permission which is
SIC number and that has the bigger role because it can help to understand the customer that how
company will deal in future. Then documents are deposited within Companies House.
Difference between incorporated and unincorporated business organisation
Basis Unincorporated Incorporated
Definition An unincorporated provides a
opportunity to people who
want to collaborate together to
make a profit out of it.
Registration is not compulsory
here.
A incorporation provides a
separate entity of the business.
Here the structure hierarchy is
followed depending on the
needs of the company. It has
less risk factors, less liability,
tax benefits and business run
for many years.
Management The person who bring the
money within the organisation
has to manage every single
work.
Team is required who have
been delegated with multiple
responsibilities to manage the
work for example: Directors
have to collect all of the
information that what is
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current performance of
company and how they can
perform in future. While
talking about Company
Secretory, they have to deal
with the legal compliances of a
company and finance
department has to deal with the
problem related to records and
data.
Funding The sources of funding is
generally from personal
capital, bank loans and credit
cards (Haidt and Trevino,
2017).
They have various option to
work for the longer period of
time and even they do manage
fund easily. The main
available sources are shares,
debentures, bonds, peer to peer
lending, bank loan and several
other ways are available.
Advantage and disadvantages of a company over an partnership firm.
People decides to incorporate partnership or company in very quick succession but they
never focuses that what can be main advantage and disadvantage of each sort of organisation. To
make them clear, below some of the advantages and disadvantage are mentioned which will help
to decide that where person should invest their money.
Advantage of company over partnership
1. The biggest difference one can count on is that a company gives less liability than a
partnership. Any debts in a partnership are paid by the profits or assets as it is the owners
responsibility. Since a company its a separate entity the member's shall not be held liable
for it.
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2. Concept of Perpetual succession is available in it but in case of partnership is not so
allowed.
Disadvantage of Company over partnership
1. Company doesn't have the rights to shutdown its business as orders should be passed
from different courts but if no debt is available then partnership firm can be closed easily.
2. Large number of people and fund too is required for its setup but in case of partnership, it
is not so important to have both the components.
SECTION 2: SUGGESTING THE SOLUTION FOR LEGAL PROBLEMS
CASE 1
Case Scenario
In the following case champion Ltd is a London based company paid by premier league
club to develop a new stadium in north London which needed the company to shift. The
company started facing financial issues due to decrease in its customers. The company became
unable to pay the loan amount to be bank and many other creditors. Due to such behaviour of
non payments the creditors threatened to file a petition in court for winding-up.
SOLUTION
Winding Up :It refers to the last phase of the company where all the assets of the
company are being sold in order to pay its debt. It can also be referred to as permanent
dissolution of the company when the business is not successful and is not able to manage its debt
(Soule and King, 2015). Winding up of the business involve legal process in which the benefits
of closing a business is provided to its member as well as creditors. The process of winding up
can be done through 2 methods that are:
Compulsory winding up- It is the method of winding up of business when the is at the
stages of their inability to pay debt and the government has passed the order for the company to
be wound up. Compulsory winding up is the dissolution of the business ordered by the law. If in
UK, anyone have to liquidate their company through compulsory winding up process, then it is
necessary that creditors will have to file the petition. Once they file the petition, it is necessary
that order should be passed from any level of court. After that, liquidator is appointed by the
court will sell the capital and all other assets of a company at fair price just for the purpose of
repayment.
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Voluntary winding up- It is self imposed dissolution of the company where the decision
regarding the winding up of the business is taken by the mutual understanding of its
shareholders. Voluntary winding up is done voluntarily by the members of the business when the
company is solvent. Here, member have to publish the relevant information that why they are
liquidating the company with fair justification and reasons. At the end of the day, even approval
is also required which should not be less then 3/4th of the total member.
Recommendation: This is advisable to the company that they are in that situation where
it is not possible for them to recover. So, it will be better for them liquidate their company with
the process of voluntary winding up process.
CASE 2
Case Scenario
In the following case Mr. Anderson is an employ at Amber Ltd at the designation of
CFO. The contract from both the sides is 12 months for termination or resignation. A competitor
Beta Ltd offered Mr. Anderson the post of CEO which ends on 31 may 2016. Later Mr.
Anderson gave a resignation to amber Ltd. After receiving the resignation the company objected
on the fact that the contract clearly defines a 12 months period for it. Amber Ltd is finding an
injunction to prevent Mr. Anderson from leaving the company before 12 months. He knows most
of the confidential files and can pass it to its competitors Beta Ltd. It leads to breach of trust,
duties, fidelity, trust and confidence towards the company.
SOLUTION
Whenever this types of cases arises, it is necessary to understand that how it can be
resolved as that matters the most. Here, chances are their that it can be solved even without going
to the court or taking the help of any strict sort of action. The best possible way to solve this
types of issues is only one i.e., Alternative Dispute Resolution.
The process in which it is focused that how problem can be resolved with available
resources is known as Alternative Dispute Resolution (Mitchell and et. al., 2016). It is being
used the most in current scenario due to which it becomes easy for any of the person to sort out
the problem which are of civil nature. The necessary information about ADR process is that, it
doesn't make the process lengthy which attract more number of cases towards ADR method. The
cases can be solved with the help of number of process in it.
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Mediation: If problem cannot be solved with mutual understanding then parties do have
the option to take the help of mediation process to sort the minor form of issues. The main issues
in it is that orders are not allowed to be given as just advices are allowed. The appointed person
has to clear and make sure that they will give best suggestion so that mindsets can be changed.
Conciliation: The main duty of any of the conciliator is select the best possible advice
and give to disputed parties so that they can clear it out according to agreement papers.
Whenever conciliation process is adopted, then there is the motive of disputed parties as they
both wanted to sort out the case so that in future they can still deal and earn profit (Harding,
2019).
Arbitration: Whenever any of the person thinks that they will not be able to sort out
their problem through any other means of method, then goes to arbitration. This is as similar as
court process but still permission is not given to them to judge any of those case where there is a
involvement of criminal proceedings. Arbitrator has to be in odd numbers.
Recommendation: Here, Anderson and even Amber Ltd has to understand that this is one
of the minor case which can be easily cleared if they takes the help of arbitration method. The
main thing which they will get in it is that problem will be managed and legal ways and costing
will also not be so high which is its main benefit (Kusiak, 2019).
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