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

This comprehensive business law report delves into the intricacies of the UK legal system and its profound impact on business operations. The report begins by identifying and explaining the various sources of law in the UK, including Acts of Parliament, European Union Law, and common law, while also detailing the roles of government in the law-making process. It then explores the application of statutory and common law within the justice court, using case studies to illustrate key concepts. The report also examines the effectiveness of the legal system, considering recent reforms and developments. Furthermore, the report analyzes the effects of company, employment, and contract law on businesses, providing UK examples to enhance understanding. It differentiates between legislation, regulation, and standards, and assesses their potential impact on businesses. Finally, the report explores different types of business organizations, their legal formation, management, and funding, and evaluates their pros and cons. It concludes with a discussion on identifying and recommending legal solutions for resolving various disputes and comparing different sources of legal advice and support.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Description about the various kind of source which helps to commence law in UK.................3
Elaborating the role of government during the process of making law......................................4
How statutory and common law is applied in justice court, using appropriate case study.........4
Provide an evaluation of the effectiveness of the legal system in terms of recent reforms and
development................................................................................................................................5
TASK 2............................................................................................................................................5
Illustration on how company, employment and contract law have the impact on business with
the help of using UK examples...................................................................................................5
Difference between legislation, regulation and standards, leading to the analysis of their
petential impact upon business....................................................................................................6
TASK 3............................................................................................................................................7
Carefully explore on different types of business organisation and they are legally formed.......7
How those organisation are managed and funded.......................................................................8
Detail assessment on pros and cons on the basis of their formation...........................................9
Critical review and an evaluation of the different types of business organisations....................9
TASK 4..........................................................................................................................................10
Identification and recommendation of appropriate legal solution for resolving the range of
dispute.......................................................................................................................................10
Comparison and evaluation of the different sources of legal advices and support...................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law is explained as the body of law that mainly governs business and trade
commerce. It falls under the branch of civil law that has to deal with both private and public law.
Business law is required to deal with corporate contracts, hiring practices even manufacture and
sale of consumer goods. Business law is the most important branch which plays the supporting
role for any of the business organisation because decision is required to be given only once law
is understood in detail. The file is based on Global Solicitors where they are required to give
advices from the post of Dispute Law Advisor. The professional body will mainly reflect about
the number of sources of law within UK. Discussion will be related to law making process of
government and what they can do to achieve better result. In another segment, they will also
discuss about impact of major laws on business organisation. Also, file will discuss about
formation of several types of company. When it comes toward the ending of the project, with the
help of generated case scenario, disputes will be solved in the best possible manner.
TASK 1
Description about the various kind of source which helps to commence law in UK.
In any of the nation, number of sources will always be required to consititue the law
because it is one the difficult task when it is given to only single body. In the same manner,
United Kingdom also do have the number of sources through which law is commenced and they
have been explained below in detail:
 Act of Parliament: The body which have the authority to commence any of the law in
UK is only Parliament. They are the sovereign body because no one have authority to ask
question when law or Act is enforced. Number of steps are required to be considered
before commencing law so that chances of errors can be reduced (Vagts and et. al.,
2015). European Union Law (EU Law): It is the major source of UK if any of the law is
required to be commence because more then half of the law and Act which have been
commenced in UK is just because of EU law. Whenever any of the problem arises in UK
regarding laws and policies, EU law tries to cover up that areas so that weaknesses cannot
be seen by anyone.

 Common law: The source in which new laws are commenced as laws are not enforced
under EU Law and Act of Parliament. Judges have to take the corrective measure in this
so that law and policies can be introduced. Laws which is commenced by common law
process do not have fix life period because Parliament can come up with amendments at
anytime (Schwartz and et. al., 2013).
Elaborating the role of government during the process of making law.
Government has to consider the procedure which has been mentioned under the law
because it is the most important things because new law is required to commenced under this.
While commencing law, government is divided into two parts i.e., House of Common and House
of Lords. In initial stage, MP's who are elected through the process of election is required to
present bill in front of House of Commons where conduct several stage. It starts with first
reading in which bills need to be overviewed by the members. In second reading, it is checked
that what is the main reason that law need to be introduced. If they finds bill need to be passed
because it can provide benefit, then it is forwarded for the next round. The next process is
committee stage in which detail checking of the bill is done that whether at any of the point need
to be omitted or amended. If any of the points required changes, then it is sent to report stage
under which member do changes as per the guidelines which are given by the committee stage.
Once the amendment is done, bill is required to be presented in third reading under which
number of discussion is to be done. After that, voting need to be done in third reading where
resolution is required to be passed (Schulman, Moscow and Lesser, 2017). If resolution is
passed by the process of voting then bill is further forwarded to House of Lords. In this, peer
member is required to detail examination of the bill and after that they decides whether bill is to
be send further or not. Approval is required to be taken from monarch under Royal Ascent Act
1961.
How statutory and common law is applied in justice court, using appropriate case study.
Statutory law is one of the most important part of justice court because it provides the
guidelines regarding the decision which need to be taken on regular basis. In court room, it is
found that whenever judges need to declare any of his decision then they take the help of
statutory law because every single regulation is written where penalties are also mention in it if
any of them breaches it.
Case law: James v Peterson, 1998

Judgement: In this particular case, judges took the help of statutory law to declare their decision
because this case was related to murder. The penalties of murder is already written in Statutory
law.
Common law is one of the most important law because it gives freedom to judges as it is
not possible to commence law on every single day so in that condition it is important to take the
help of common law. Here, justice court can declare decision of own and form that particular day
new law is also applicable within the country which is required to be followed by everyone.
Case law: Mark v Jonathan 2006
Judgement: It is necessary of the judges to declare decision of their own because laws were not
written regarding this law. It is one of the finest example of common law (Besley, 2015).
Provide an evaluation of the effectiveness of the legal system in terms of recent reforms and
development.
In recent period of time, law and regulation has been changed in different manner as legal
system of UK is well defined which helps to take corrective measure and decisions. There are
even number of Acts which are not useful, so it is necessary to bring some of the amendments in
it so that positive changes can be brought in. The UK legal system is constant because changes
do not take place that easily and because of that people do relay on it. The legal system doesn't
allow anyone to involve themselves into criminal activities.
TASK 2
Illustration on how company, employment and contract law have the impact on business with the
help of using UK examples.
It is necessary for business organisation to understand that situation so that better results
can be obtained. Even company law, employment law and contract law also have the same
impact on respective business association. Detail description about the impact of this law is
mentioned below: Company law: The law which governs any of the organisation which are commenced
within the boundary of country is known as company law (Park, 2012). It is the law
which tells how business need to be carry on and what is required to be done if any of the
problem arises upon country. It has both positive and negative impact, so it is necessary
for organisation to work accordingly. For example: Shell is one of the biggest company

of UK, it means they generate maximum revenue and because of that they are required to
fulfil the requirement of CSR as per Companies Act 2006 which increases the expenses
of organisation. Even Shell will required to maintain the number of directors which are
required in a company whether they should be or not be with company as it doesn't
matter. It is one of the negative impact. Contract law: It has it's own importance in any of the organisation because detail
description is written under it that work is to be done on specific period of time. It do
have positive as well as negative impact on any of the business organisation . When it
comes to Shell, they have been benefited from contract law because they only perform
the task which has been written under the contract law (Picciotto and Mayne, 2016) .
Even it gives flexibility to the organisation because if any one enters into the contract
with Shell they doesn't allow them to breach it and if it happens, then legal action is
being taken on the company.
 Employment law: The law which helps to maintain and develop the relationship between
employer and employee is known as employment law. These types of law do increase the
flexibility of employee because they do know how much they need to work to get the
equal amount of remuneration. It has been creating positive as well as negative impact for
any of the association. While talking about Shell, it does have the positive impact for the
employee's because they are able to get the fair amount of wages which they should get
for the work which they do.
Difference between legislation, regulation and standards, leading to the analysis of their petential
impact upon business.
All this term legislation, regulation and standard have a difference but they are inter-
related in some point because all of them are related with law. Firstly, Legislation is one of the
most important part of any country because laws are mentioned in it which is equal for everyone.
It is necessary that while taking any of the decision it must be considered. House of Parliament
takes the decision regarding any of the legislation or law (Buxbaum and Hopt, 2013). When it
comes to Regulation, it says that how any of the organisation or individual is required to follow
them. It is inter-connected with legislation because legislation makes the law and regulation
defines that how is required to be followed. If any of person cannot work as per the regulation,
penalties are imposed on them in that situation. In the end Standard comes into plays which tells

that what should be standard which need to be maintained by any of the organisation. For
example: if any of the industry involve themselves into the work of manufacturing they are
required to identify the law manufacture the product as per the requirement and if they fails in it
heavy penalties are to be imposed.
When it comes to evaluation, it have lots of positive and negative because there are
number of people who lives in the country but they don't have the proper knowledge about law
but they are also penalised for the mistake which they do unknowingly. Even it is helpful
because it helps to maintain the decorum within Great Britain due to chances of crime reduces in
significant manner.
TASK 3
Carefully explore on different types of business organisation and they are legally formed.
Business can be conducted by number of style but it is necessary know the interest of
investor that where they feel comfortable to invest their money for the purpose of earning profit.
Once decision is made it important to treat any of the business a business from where you are
required to earn money. The list of some of the business organisation is mentioned below with
detail description that how they can be legally formed.
Sole Proprietorship: Easiest form of business is known as sole proprietorship because
number of restrictions are very rear in it (Posner, 2014). The concept of Sole Proprietorship was
started because government wants more number of investor to invest there money in business
organisation as it is the most popular way to collect tax and other charges. Sole Proprietorship do
not requires any of the legal process to commence there business. There is no need to do any of
the legal documentation on the name of organisation.
Partnership: It is also one of the simple form of conducting any of the business activity
because very few formalities is required to be done. It is also known as general partnership.
Various kind of tax benefits are given to partnership firm. Whenever partnership firm is being
incorporated it is necessary to consider some of the points. The most important is partnership
deed which is required to be prepared and submitted to Companies House. Even this type of
association is required to register themselves under Partnership Act (Frank and Bix, 2017) .
Limited Liability Company (LLCs): This form of business organisation is one of the best
possible corporate entity which can be incorporate. Mixture of Partnership and limited company

can be found in it. The main positive of LLCs is that it do get more flexibility compared to other
form of business organisation. When investor wants to incorporate limited liability company they
are required to follow the detail structure so that business activity can be performed.
 Firstly, name of the company is required which must not be similar.
 Members list should be decided
 Memorandum of Association and Article of Association need to be prepared.
 Director list need to be prepared.
 After all this, it must be register under Companies House so that business activities can
be started (Scholes, 2015).
Corporation: The form of business organisation were several benefits are provided to the
investor is known as corporation. The member who is connected with any of the corporation gets
to enjoy their life as it has the maximum opportunity to earn more amount of profit. This types of
organisation requires additional time to take any of the decision because once decision is taken it
is almost impossible to change in future. When it comes to legal formation, process is written
below which is required to be considered.
 Name should be decided
 Place of business should be disclosed.
 Memorandum of Association and Article of Association is to be drafted.
 First director and first shareholder is also required.
 (Standard Industrial Classification) SIC code need to be obtained (Bently and Sherman,
2014).
How those organisation are managed and funded.
Business are of different types as it is mentioned above but is it necessary to check that
how this are managed and funded because most of the things do depend upon it. In context of the
above above mentioned organisation, way is written down regarding how it is managed and
funded.
Sole Proprietorship: There are no such important work and task which need to be done
on daily basis so it can be easily managed by single person. Small amount of fund is required so
there is no much and more burden for fund. Personal assets can be brought for the purpose
raising fund.

Partnership: The member who are included within the firm have the responsibility to
manage work load of the firm. Although, final approval is required to be taken from authorised
partner. When partnership firm is required to manage fund they do have the multiple option
because they can take loan, working capital can also be increased.
Limited Liability Company (LLCs): Business organisation which have chosen LLCs for
operating their business do have the number of opportunity because there are lots of member
who can manage the work. Among all the member, main role is required to be played by
manager of the company (Shackelford, 2014). There are alternate ways through which company
can raise capital and out of them them the most helpful is bank loans, credit card, increasing the
capital of organisation and many more.
Corporation: Board of Directors and shareholder have the responsibility to manage
activities of organisation and in addition they are required the helps of Company Secretary who
for take most of the important decisions. Fund can be managed by the way of issuing share in
trading market. Debenture is also one of the way to raise fund. Peer to peer lending is also the
option available with company.
Detail assessment on pros and cons on the basis of their formation
Company Advantages Disadvantages
Sole Proprietorship Less amount of money is
required while setting up of
business.
Legal rights are not given to sole
proprietorship.
Partnership Workload can be easily
managed.
Chances of conflicts are also high.
Limited Liability Company Controlling system is
effective in LLCs.
Unnecessary expenses occurs while
commencing the business.
Corporation Changes of earning profit is
high.
Decision making process is lengthy
and expensive.

Critical review and an evaluation of the different types of business organisations.
While reviewing the business organisation it can be said that there are several ways for
this organisation to earn profit but it is important to focus on there stability because that is the
main reason that some of the business fails to earn profit (Allen, Kraakman and Subramanian,
2016). Also, business like sole proprietorship and partnership should be given more rights
because liability of member is unlimited in theses form of business organisation.
TASK 4
Identification and recommendation of appropriate legal solution for resolving the range of
dispute.
Case Scenario: Jason and Greta had a contract that Greta will sell her car to him and in
return Jason will pay £1200. As, proper documentation had been done for this contract so it was
necessary to be concluded on specific time period. One day, due to sort-circuit it was found that
car was totally damaged and even it was not in a stage were it can be handed to Jason. So, Greta
informed Jason that this contract cannot can be completed. By listening this, Jason wants file a
case against Greta as he is telling that there is breach of contract. Now, Greta wants to solve this
issue from the legal process but without taking the help of court proceeding (Dolzer and
Schreuer, 2012).
Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) is the mechanisms which includes number of
procedures through which disputed party can resolve their dispute within the private forum. It
has been designed to be an additional alternative so that legal disputes can be solved. It has only
got the right to resolve those case which are civil litigation in process. The area in which ADR is
mostly used is: family issues, employment law, consumer law, consumer law, contract law and
many more (What Is Alternative Dispute Resolution (ADR) – Mediation & Arbitration, 2018).
There are number of ways in ADR which helps to resolve the problem. Negotiation: It is the simplest form through which disputes can be solved. In this person
is required to solve there problem by themselves by talking with each other. Even
disputed parties can take the help of family members, friends etc. they can be the best
supportive person to resolve the problem.

 Mediation: It is similar to negotiation but the main thing which is included in it is that
here neutral third person is hired to resolve the issue. The neutral person is said as
mediator. They discusses with both the party for finding what can be the best solution
that need to be suggested to both of them. If parties agree on it then mediator prepares the
written agreement. Mediator is required to be fair for both sides. Conciliation: It is said that both mediation and conciliation are similar process but in
practical life it is different because it is found that conciliator is required to suggest the
solution by meeting the term and condition of the contract paper. Conciliator are the one
who mainly connects themselves with organisation, lower level of court etc (Crane and
Matten, 2016).
 Arbitration: It is almost same as court hearing. Arbitrator are the one who judge the case
and even all the proceeding are similar to court hearing. The decision of arbitrator is said
as Arbitration Award. It do have the special power which is almost similar to the court.
In the above case, both the disputed party can try to solve their dispute by the process of
conciliation because they have the minor issue which can be solved by the process of suggestion.
Comparison and evaluation of the different sources of legal advices and support.
There are number of sources through which disputes can be solved but it is important that
how parties want to solve them. Still process like conciliation should be given more priorities
because it is not necessary for any one to obey the suggestion which is given by conciliator. It is
one of the cons that need to be solved Arbitration has the best among all process because
decisions are legal binding in it. It is easier, faster and cheaper then the proceeding of court
(Craig and Campbell, 2012).

CONCLUSION
In simple words, it can be understood for the file that law have its own importance which
plays the vital role in any of the department. Business organisation should consider the available
source of UK law. There are number of organisation types and incorporation process is always
based on willingness and amount of investment by the investor. Several ways are available to
raise the fund. ADR process is considered as one of the best alternate to resolve the issue without
going to the court.

REFERENCES
Books & Journals
Allen, W.T., Kraakman, R. and Subramanian, G., 2016. Commentaries and Cases on the Law of
Business Organizations: 2016-2017 Statutory Supplement. Wolters Kluwer Law &
Business.
Bently, L. and Sherman, B., 2014. Intellectual property law. Oxford University Press, USA.
Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the
World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-
120.
Buxbaum, R.M. and Hopt, K.J., 2013. Legal harmonization and the business enterprise:
corporate and capital market law harmonization policy in Europe and the USA (Vol. 2).
Walter de Gruyter.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dolzer, R. and Schreuer, C., 2012. Principles of international investment law. Oxford University
Press.
Frank, J. and Bix, B.H., 2017. Law and the modern mind. Routledge.
Park, W.W., 2012. Arbitration of international business disputes: studies in law and practice.
OUP Oxford.
Picciotto, S. and Mayne, R. eds., 2016. Regulating international business: beyond liberalization.
Springer.
Posner, R.A., 2014. Economic analysis of law. Wolters kluwer law & business.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Schulman, S.H., Moscow, C. and Lesser, M.R., 2017. Michigan Corporation Law & Practice.
Wolters Kluwer.
Schwartz and et. al., 2013. Health law: cases, materials and problems. West Academic
Publishing.
Shackelford, S.J., 2014. Managing cyber attacks in international law, business, and relations: In
search of cyber peace. Cambridge University Press.
Vagts and et. al., 2015. Transnational business problems. West Academic.
Online
What Is Alternative Dispute Resolution (ADR) – Mediation & Arbitration. 2018. [Online]
Available Through: <https://www.moneycrashers.com/alternative-dispute-resolution-
adr-mediation-arbitration/>