Comprehensive Analysis of UK Business Law: Sources and Organizations

This report provides a comprehensive overview of UK business law, examining its various sources, including statutes, delegated legislation, common law, and EU law. It details the role of the UK government in the law-making process, outlining the steps involved in passing legislation through Parliament. The report then explores the impact of company, contract, and employment law on business organizations, using the example of British Leyland. It further discusses different types of business organizations, such as sole proprietorships, partnerships, LLCs, and corporations, along with their legal formation processes. The report also addresses how these organizations are managed and funded. Finally, it concludes with recommendations for legal solutions to resolve a range of business disputes, supported by relevant examples and case studies, offering insights into how businesses can navigate the legal landscape effectively.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Detail description on various sources of UK law..................................................................1
P2 Role of government while commencing law within UK and how statutory law and
common law are applied in justice court.....................................................................................2
P3 Impact of company, contract and employment law on business organisation by taking the
example of UK company............................................................................................................3
P4 Different types of business organisation with its method of legal formation........................4
P5 How above organisation are managed and funded on regular basis......................................5
P6 Recommendation of legal solution for solving the range of dispute using relevant example.
.....................................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The law which deals in the sector of trade and business is called business law. It is
necessary because because it tries to maintain the decorum at the time of conducting any kind of
business activity (Kraakman and Hansmann, 2017). The main source of Business law in UK is
legislation who have the power to commence law. The main purpose to prepare this project
report is to enhance the knowledge regarding sources of UK law and role of government on law
forming process. As file is related with business law so major focus will be on the various
branches of it which cover employment law, contract law and company and even there will be
detail procedure of various types of business organisation with its formation process. The
discussion will be ended by solving case studies where focus will be on recommendation that
how it can be given with the help of legal process. For conducting this lengthy process Global
Solicitor will give appropriate recommendation in every situation.
MAIN BODY
P1 Detail description on various sources of UK law.
Law should be commenced in ever country where different sources are used so that it can
be formed in one of the finest way. The different sources of United Kingdom law are listed
below with its detail information:
Statutes are the main sources in almost every country and even UK does the same. Here,
member of parliament need to come up with new ideas and plans through which level of decency
can be maintained with in the country (The English legal system, 2018). Statutes are mainly
commences once any problem arises or might arise in the future and as per the requirement of
any specific nation because UK law are formed for four nations and they are England, Wales,
Northern Ireland, Scotland.
Delegated Legislation is also one of the form of commencing law in UK. Here, Act of
Parliament try to distribute the power of commencing law into different hands. The power is
mainly delegated to ministers of all the nation where they can commence new law as per the
demand of situation. But in this it is important that any law which has been commenced should
not contradict Statutes and if it does then it is not allowed. Because in this situation law will
commence through the source of statutes
1

Common law is also one of the important body in UK which commence law after having
the detail overview on cases. The authority of commencing law through common law is since
11th century. It is also know as case law. Here, law is developed by tribunals, courts and
authorised judges. It is completely different from statutes because it prefers to commence those
law which have been not written by legislation. It is necessary that everyone obey the law.
European Union Law (EU Law) is the most important body when it comes to form any
law in UK. There are 52741 laws in UK which have been commenced by EU law (EU law in
United Kingdom, 2017). UK become the member of EU in year 1973. The main focus of this
law is in the area of trade, agriculture, finance. Any law which have been commenced by EU will
be directly implemented to member states of it.
P2 Role of government while commencing law within UK and how statutory law and common
law are applied in justice court.
It can be easily understood that government of UK plays necessary role while
commencing any law in UK because Parliament of United Kingdom is Sovereign. But, it is
important to follow the procedure which have been given by the Act of Parliament. Altogether,
there are seven steps which need to be followed and if approval from every process is obtained,
then only it will be finalised as legal law or Act. Firstly, members of parliament try to find the
actual reason that why new law is required and what can be the consequences of it. The process
start from preparing the bill which is required to be submitted for First Reading (Allen and
Kraakman, 2016). In first reading, normal formalities are to be done where debate between
member doesn't take place. Now, bill is required to be presented in second reading where first
opportunity for debate is given to Member of Parliament. Here, bill required maximum time of
two weeks. When bill reaches to committee stage it need to be examined in detail. Even opinion
of outsider is also required in this. If changes are to be done then MPs need to forward the bill
for Report Stage (Lyons, 2013). In Report stage, priority of is given to the Member of
Parliament for considering the points which are not cleared and should be amended. The time
gap which is require in report stage is not fix as it might take additional time for completing the
work on time. Then, Third reading is to be conducted where house of Common gets the last
opportunity to discuss on the bill which has been proposed in Parliament. Even if conflict arises
in third reading then voting is to done to find whether bill need to be send for next process or not.
If House of common agrees to send further then it is forwarded to House of Lords. Now, they
2

need to overview each and every point of bill to find whether it is acceptable or not and if there is
any kind of defaults then changes are to be done. Once approval for House of Lords is obtained
then it must be forwarded to Royal Ascent. When bill clear all the round of parliament then it is
necessary to have Royal Ascent on bill so that it can become law (Vagts and et. al., 2015). In
simple words, Royal Ascent is the agreement where monarch's need to sign so bill can be
converted into for the benefit of nation.
How statutory law and common law are applied in justice court.
It is important for justice court to give there judgement on the basis of evidence which
they have obtained with the help of authorised panel. But, while declaring the result it is
important the judgement should be on the ground of law which has been written in Parliament
(Beatty, Samuelson and Abril, 2018). Here, supportive role is being played by statutory law as
every guidelines are written through justice court can easily declare their decision by
overviewing the situation. When it comes to common law, they are also helpful for justice law
because in this condition justice court have the authority to declare their decision by looking at
the situation. Here, if judges do not get any better ideas to declare their decision then they can
even take the help of similar case law which have been discussed before in any part of the world.
P3 Impact of company, contract and employment law on business organisation by taking the
example of UK company.
There are various types of company where they do have different nature. It is important
to follow the guidelines which includes law. In large organisation mainly contract law,
employment law and company law plays important role.
Contract law is one of the most important law which has been commenced for protecting
the right of every person. It ensure that agreement which had been done are legal-binding in
nature. Even it tells that what are the duties and rights that individual gets after entering into a
valid contract. In context of the company it is necessary to to be understood that how valid
contract is formed. In context of British Leyland, it is important that complete the term and
condition of contract which they have done with their employee's. Sometimes, process of
entering into contact takes additional time which creates negative impact on company. While
talking about positive impact, it can be said that it helps British Leyland to complete assigned
project on specific period of time (Buxbaum and Hopt, 2013).
3

Company law is one of the most important law which ensure that how organisation need
to manage their work on lawful basis. It is necessary for every association to follow the
guidelines of company which is have a huge impact on every company. There are positive as
well as negative impact of company law on organisation. In context of British Leyland, they
need to make sure that they are following the guidelines of companies Act which create
excessive burden (Davidson, Forsythe and Knowles, 2015). Here, company need to conduct
Annual General Meeting which takes unnecessary time as it required lots of planning which have
a negative impact on company. As guidelines are already mentioned which can help British
Leyland to prepare framework that how any task need to be operated.
Employment law is one the essential law because it ensure that rights of workers are
secured. It is basically collection of various law where main focus is to maintain the relationship
between employer and employee. It ensure that what is the responsibility of employer towards
their employee. In context of British Leyland, it helps to provide equal opportunity to each and
every employee' where everyone gets the rights to show their talent which have positive impact
on organisation. This are some of the law which have positive and negative impact on day to day
activity of business organisation.
P4 Different types of business organisation with its method of legal formation.
The main motive of any business organisation is to earn profit and it is necessary that
they had been incorporated legally as per the guidelines of respective law. The different types of
organisation with its legal process of formation are described below:
Sole Proprietorship is one of the oldest form of business organisation which is found in
the premisses of UK. In simple words, it can be explained as the business where single person
manages the business activity. Here, business and owner are same as there is no concept of
separate legal entity. There is no requirement of legal document so it can understood that there is
no requirement of registration (Frank and Bix, 2017).
Partnership Firm is the business organisation where many people pool their money,
skills and also various other resources for the purpose of earning profit. Here, risk and rewards
are shared as per the requirement of agreement. To form partnership firm legally, it is important
to choose the name of firm where every parters must provide the information about nominee
partners. Then partnership deed must be prepared which is required to be submitted in
Companies House.
4

Limited Liability Company (LLC) is the corporate structure where liability of owner is
always secured. The nature of LLC is always of hybrid type where combination of corporation,
and sole proprietorship or partnership can be found. It is one of the most famous form of
business organisation which is found in modern time. To form legal LLC it is important to be
register under Companies House where it must submit the necessary documents like
Memorandum of Association and Article of Association (Hanrahan, Ramsay and Stapledon,
2013).
Corporation are the large group of organisation where various company works on the
capacity of separate legal entity. It is one of those company which perform their their day to day
activity on greater platform. But, it can be easily said that there are lots of legal formalities which
are required to be completed for forming any kind of legal corporation. There are multiple
numbers of benefits which are given to corporation only. To form corporation it need to follow
one of the lengthiest process under Companies Act. First, name of organisation is to be decided
then it is important that name of director and shareholders are declared because they are required
to work on the company before its incorporation. Even some of the necessary documents are also
required to be formed which included Memorandum of Association and Article of Association.
P5 How above organisation are managed and funded on regular basis.
Sole Proprietorship is that form of business organisation where it is managed by owner
themselves. There is no requirement to add on the staff to manage the activities which are to be
done on regular basis. While talking about fund there are very limited number of option to
manage the fund.
Partnership is one of that form of business organisation which can be easily manage its
business activity because there is numbers of partners who are involved in it who can take the
responsibility of firm. While talking about managing fund it can apply for bank loans which is
the most suitable way to raise money at present time, even personal assets of every partners is
also the alternate option to raise capital (Heminway, 2013).
Limited Liability Company is the organisation where team is required to manage its day
to day affair so it can perform well in current market. The team includes manager, investor and
other authorised person. While talking about managing fund it can easily manage its fund
through credit card, loan from financial Institution etc.
5

Corporation required a proper team who can take the responsibility to manage it task.
The member of management team includes directors, shareholders, Company secretary etc.
When discussion comes towards managing fund it can be said that there are lots of option
through which company can raise fund such as issuing share, debenture and bonds. Also loan can
be taken from government agencies etc.
P6 Recommendation of legal solution for solving the range of dispute using relevant example.
Situation of the case: Perry Ltd had taken the loan from different financial institution
where they had given the specific date on which they was going to do payment. It was found that
Perry Ltd was unable to pay the amount of money which they had taken in the form of loan. As,
Perry Ltd is unable to pay debt amount so by looking at the situation creditors wants to file a
case against Perry Ltd for winding up the company as the think this is the only way to recover
the money which they had given to Perry Ltd (Johnson, 2013).
Contract law is one the important law which provides guidelines to every individual
who enters into contract. If anyone fails to perform their part of performance then, that situation
will be known as breach of contract. In context of the given case, it can be easily understood that
there Perry Ltd didn't follow the guidelines of contract which they had done with financial
institution.
Winding Up is the situation where company is unable to manage their day to day affair.
In this situation, company do not have the sufficient amount of money to perform their
organisational task. Even it is ending stage for every company because after this there is no
chance to perform any kind of business activity. The process of winding up can be done through
two different ways and they are compulsory winding up and voluntary winding up. In
compulsory winding up it is found that order must of winding up must be received from court
side (Jones and Lainez, 2013). Here, role of filing the case for winding up is done by creditors.
While talking about Voluntary winding up, this process is conducted by company themselves
where they need to be pass the resolution by conducting the meeting where present of
shareholder is must. From the above case, it can be understood that company wants to file the
case against Perry Ltd which means if they file the case it will fall under the category of
compulsory winding up. But, it is important to understand that winding up is not the ultimate
solution in this case. So, here company can take the help of Alternative Dispute Resolution to
solve the dispute between credits and Perry Ltd.
6

Alternative Dispute Resolution is one of the modern way to solve the dispute between
those party who have involved themselves in miscommunication. There are three different ways
to solve dispute under this process and they are conciliation, mediation and arbitration.
Conciliation is that form of solving dispute where mainly minor cases are solved. It is important
that the person or team which is appointed as conciliator should not give their opinion without
knowing the facts in detail (Kapottos and Youngner, 2015). Then, Mediations is the second
most important process to solve dispute where mediator need to advise their client. The main
task of mediator is find that what is the possible to meet out the condition of agreement. When it
comes to Arbitration, it is the must valuable way under Alternative Dispute Resolution through
which dispute can be solved. The decisions which are given by arbitrator must be followed as it
legal binding in nature.
Recommendation
In above case, it can be said that winding up will not be the solution which is required in
this case. Here, creditors and Perry Ltd can take the help of arbitration as this case is related with
matter of where advices and suggestion doesn't work. So, must try to appoint arbitrator who can
solve their dispute without winding up the company which will be benefited for both the party in
above case.
7

CONCLUSION
From the file, it can be understood easily that business law is one of the essential body of
law which clearly tell that it is very important in the sector of commerce and trade. While talking
about source of UK law it can be said that there are various sources just to ensure that no one
does those work through which conflict can arise in the country. There are various types of
company where their roles are defined just to make sure that no one does any kind of mistake
from their side. Also, Alternative Dispute Resolution is one the way through which problem are
civil problems are solved and even it reduces the burden of justice court.
8

REFERENCES
Online
The English legal system. 2018. [Online]. Available through:<https://www.inbrief.co.uk/legal-
system/english-law/>
EU law in United Kingdom. 2017. [Online] Available
Through:<https://www.thomsonreuters.com/en/press-releases/2017/march/eu-laws-
introduced-in-the-uk-highlights-scale-of-challenge-facing-lawmakers-following-
brexit.html>
9