Business Law Report: Legal Frameworks, Business Types, and Disputes

This report provides a comprehensive overview of UK business law, beginning with an exploration of Parliament's sovereignty and sources of law, including legislation and common law. It examines the role of government in law-making and the application of statutory and common law in justice courts. The report then delves into the potential impacts of company, employment, and contract law on businesses, differentiating between legislation, regulations, and standards. Task 2 explores the nature and formation of different business types, comparing unincorporated and incorporated businesses, and analyzing the advantages and disadvantages of partnerships and companies. The report concludes by recommending legal solutions for resolving disputes, including case law examples, and provides references to relevant sources.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................3
Section -1.........................................................................................................................................3
TASK 1............................................................................................................................................3
a. Explaining “Parliament sovereign” and sources of law.....................................................3
b. Role of government in law making and statutory and common law application in justice
courts......................................................................................................................................4
c. Illustration of company, employment and contract law potential impact upon business and
elaboration by differentiating between legislation, regulations and standards to analyse
potential impacts upon business.............................................................................................5
TASK-2............................................................................................................................................6
Exploring the nature and formation of different types of business:.......................................6
Evaluate the differences between unincorporated and incorporated business to how they are
managed and funded; .............................................................................................................7
Advantages and disadvantages of a partnership and that of a company................................8
SECTION 2......................................................................................................................................8
Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support................................................................8
Case law 1:.......................................................................................................................................8
Case law 2:.....................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
Books and journals...............................................................................................................14

INTRODUCTION
Law plays most important rule in society, it provides organisations people and business entities
guidelines. Acts & rules are to promote healthy environment, boost ethical follow-up in
relationship of producers and consumers (Allen, 2017). The difference to accomplish or not to
achieve ultimate goals, business is based on correct choices from legal point of view. It is
generalised in two categories which are public law that is conducted by government of country, it
portrays relationship between government and people of nation. In following study parliament
sovereignty,Royal queen speech, decision making sources of UK are discussed. The case laws
mentioned below are for better understanding circumstances of legal procedure in government
including other diversions.
Section -1
TASK 1
a. Explaining “Parliament sovereign” and sources of law
Parliament sovereignty means it is the ground rule in United Kingdom, it declared
parliament as the highest legal authority. In its authority parliament can make new laws and end
any as well. Its said that parliament is unwritten but actually its divided in several laws such as
statute law, common law and constitution provisions. Parliament does not have any limit to enact
laws, no other entity can revoke it's decision (Bayern, 2016). Royal Queens speech is the most
exquisite thing to watch every year at parliament opening, this speech is called “speech from the
throne”. This British ceremony is dedicated to celebrate culture and history. Procedure for it is
given below:
Legislation:
Any issue related to society which causes sociological or geographical issues in country
is resolved by making laws and that power is with legislature of nation. It defines laws made by
the country's government, it's basically the power house of making society move forward to a
clean, healthy and safe environment which they feel protected living in.
There are two divisions of legislation :
 Primary : The legislative bodies of UK generate guidelines for creating laws. It consist
act of parliament, and order in council to protect rules and regulations of country. These
are numbered chronologically with the year of passing. The church of England

determines equipments methods by which new reforms are enforced plus keep eyes on its
proper administration and their workings.
 Secondary : After primary guidelines are provided by the legislative bodies, secondary
legislation creates the path for their enforcement. The church of England determines
equipments methods by which new reforms are enforced plus keep eyes on its proper
administration and their workings (Bebchuk and Jackson, 2012). These instruments
consist of orders in council, which can pass special procedure orders which protect and
provide rights to people who are specially affected by the order
Common law
The formation of laws after bench of the court makes an jurisdiction that is remarkable .
In simple terms when a law is formed after a case of dispute, or case law is followed for
formation of law. In united kingdom certain cases where parties do not agree with jurisdiction of
court provides case laws that provided judgements that are relevant to the case shall imply the
jurisdiction and that is a “common law”. This was an ancient practice by kings in old era. This
practice was followed by many other colonies and was passed on to many different countries,
today more than 50 countries across the globe have common law.
b. Role of government in law making and statutory and common law application in justice
courts.
Most of the acts which are present in legislation are combined attachments of both
statutory and common law, they provide proper procedures to create correct jurisdiction in
procedures of case disputes (Besley, 2015). The government plays most important role in
executing or making a new law there is a specific procedure to pass such laws which are called
bills in parliament. These are presented by parties in parliament and from their its a procedure of
seven steps which transform an bill into 'Acts' of parliament. The following steps are given
below represent step by step representation of passing a bill:
 First reading: It is the first formal stage in this process of converting a bill to an “Act”.
Basic, purpose of the bill proposed is either for making new law or provide amendments
in current law. At this stage its only presented in parliament and its meaning and purpose
of presenting is explained.
 Second reading: At this step bill presented is discussed and nominated in favours and
non favours by minister's in parliament. It is discussed, debated and analysed on all

grounds by member's present. Voting here is also a sigh of showing dedication towards
parties representing and opposing the bill.
 Committee stage: At this stage bill is passed on to “House of Commons” for detailed
supervision, authentication and critical judgement (Fenwick, Kaal and Vermeulen,
2016). Any additions or removal from bill is done at this stage later it cannot be revoked.
 Report stage: At this step bill is presented in “House of commons” where it is again
evaluated and if any new amendments are made they are debated and modified in nature.
 Third stage: Final voting stage, here final voting is done by ministers in parliament,
which decides either bill will be passed or not.
 House of Lords: The bill is later forwarded to 'House of Lords' to pass through all the
stages mentioned above again because a bill should pass from both houses and then to
Royal Queen. Again is send back to 'House of Commons; for reconsiderations if any
amendments or changes are made earlier.
 Royal ascent: This signature is the final implementation of bill, signature by Royal
Queen convert a bill(draft law) into 'Act' in parliament.
c. Illustration of company, employment and contract law potential impact upon business and
elaboration by differentiating between legislation, regulations and standards to analyse
potential impacts upon business.
Company law: It provides rules and regulations which provide guidelines for companies
to be in proper legal format. These outlines are to give business ethics, code of conduct, legal and
illegal business description and crimes plus their punishments. Impact of this on business
organisations is that it works in correct formation but completing all laws includes time
management and a lot of paper work which is exhausting in nature.
Employment law: These set of rules represent employer's duties and rights of employee,.
This law provides control over working of any organisation which helps in getting a disciplined
and correct working environment for employees and employers. This law supports idea of
protecting employees from getting misused and treated with wrong behaviour in organisation.
This creates a huge impact on organisation workings and behavioural issue plus they protect all
members.
Contract law: It represents set of rules which provide guidelines that set outline for
correct contract agreement terms (Frankle and et, al., 2015). This law is created for protecting

both parties in contractual agreement. This law provides claim to innocent party in case of breach
in contract and provides punishment to other party.
Differentiating between legislation, regulation and standards.
Impact on business Legislation Regulation Standards
Definition These are guidelines provided
by government which define
'Acts' by parliament.
In simple terms these
are implementation of
'Acts' of parliament.
It means following laws
to maintain level in
organisation.
Positive These help in maintaining
company in discipline and
work in correct way.
Provide positive working
environment, for getting
better results.
This helps in achieving
required quality of work.
Negative This involves a lot of paper
work and is time consuming in
nature.
Too many laws sometime
take natural freedom,
away from business, its
confined in nature.
Excess focus on
maintaining standards,
makes achieving goals
on time, which later
causes loss for business.
TASK-2
Exploring the nature and formation of different types of business:
Sole proprietorship: This set of business is done by a sole business man who takes all
decision of the company. The capital investment of company is done by owner from his personal
assets and securities (Hawkins, 2012). Forming a sole proprietorship is very easy it dos not need
legal help in creating it. Put out some capital with idea of business setup and one can become a
sole proprietor.
Partnership: Here when two people who want o get benefit from same idea come in
legal binding to form a legal organisation. These share liability, debts and benefits with each
other as mentioned in the ratio decided in agreement. To form in a partnership its essential to
sign a legal consent dividing the liability and profit ratio of the person and later its worked
according to that.
Limited liability company: It is a partnership firm but the company is incorporated in nature
which means the company is a separate entity and the owners assets are not at risk while doing

business (Hayden and Bodie, 2012). These have different working procedures and have to
follow perfect code of legal entity. Formation of it includes legal provisions and registration by
the government approved department.
Evaluate the differences between unincorporated and incorporated business to how they are
managed and funded;
Incorporated: An incorporated is a separate entity and has it's legal rights. It protects the
owner from bearing any debts or liabilities because debts payment is made from the money
invested in the company's capital not owners personal assets. If any lawsuit is to be formed
against business it will be in the name of the company not the owner.
Unincorporated: An unincorporated company is formed when two or more people
having the similar areas of interest do business together for benefits. Here the owner is held
liable for any debts of the company and in the case of an lawsuit.
Referred to Incorporated Unincorporated
Management Managing an incorporated company
is a difficult and involves lot of
paper work. It is easy going once
established, providing benefits like
saving tax, less accountability.
Beginning stages are difficult to
follow and the responsibility is on
Directors of company.
Management an unincorporated
company doesn't involve much
paperwork and is easy to setup, but the
owner is always held liable for the
company's action and his personal
assets are at stake. Maintaining levels
is not difficult since, its divided
between all partners.
Funding  Bank loans
 Selling corporate stock,
assets and securities.
 Personal assets
 bank loans
Advantages and disadvantages of a partnership and that of a company.
Advantages and disadvantages of the company related to partnership:
Advantages:

 liability: Owners and the shareholders are not at risk of loosing personal assets , in a
partnership the owners personal assets are always at stake.
 Source of capital: Major benefit of having a company is easy access to raise capital
through selling corporate stock.
Disadvantages:
 Attestation and prices: Documentation of records for government is very important,
states charge for franchise tax and all paperwork must be complete before filing articles
of incorporation.
 Excessive rules and norms: many requirements like board of directors, meeting, breaks
and documentation for public records are to be fulfilled by the law to maintain the
company.
SECTION 2
Recommend legal solutions for resolving a range of disputes using examples to demonstrate how
a party might obtain legal advice and support
Case law 1:
Champion Ltd a London based company was provided with cash payment to build way
for new stadium paid by premier league club. This needed for company to shift in north London
which led to decrease in customers, later company started to become incapable of paying its
debts and creditors started harassing for their money. After multiple payment declines, creditors
decided to seek help from judiciary to take their investment money back from company which
led to winding-up.
WINDING UP:
It is situation where company or organisation is unable to pay-off debts to their creditor's
and is declared bankrupt or owner of company doesn't want to continue business or create
another and wind up company anyway (Johnson, 2013). In such cases assets and securities of
company is accumulated and liquidated. After an liquidator appointed by company accumulates
actual cost all creditors are paid off and this current year is considered to be the last assessment
year of company.
TYPES OF COMPANY LIQUIDATION AND PROCEDURES:

Creditors voluntary liquidation: It is situation where company is officially shut down and
declared insolvent in nature and company shuts down, due to non payment of debts to creditor's
and bank loans (Luetge,Armbrüster and Müller, 2016). Company is declared bankrupt, all assets
or security left with company is used to pay remaining debts. The procedure for liquidation is
easy and less time consuming in nature:
 The directors take meeting with creditors to discuss company's plans explaining condition
of company.
 The shareholders are sent notice of decision and shareholders should agree with decision.
 A liquidator is appointed to accumulated money that can be made after selling assets and
make balance with creditors.
 The 'Companies House' should be notified of the decision.
 Issue an article in the gazette for the public records.
Compulsory liquidation: When the company is declared insolvent and unable to pay the debts
of the creditors by the courts order (Peterson and et. al., 2016). The creditors can seek the help of
court to dissolve the organisation in order to get the debts out of the company. Generally
dissolving assets just to receive the money does not attain much because of the minimal rate of
selling them.
Procedure for this is a little complex:
 The procedure starts with filling up form of winding up decision and send it to the Court.
 Next to fill a form that will declare the last decision to wind up by the company.
 The shareholders should agree with the decision.
 The amount of debt shall decide which court will held the judgement.
 A hearing date is assigned by the court, either the court will reject or accept the petition.
 The company members shall be informed about the decision, send a article in the
newspapers for public records.
 Send a copy to court of jurisdiction, certificate of service.
Members voluntary liquidation: In this scenario company is not bankrupt nor it is declared
insolvent but owner seeks to wind up anyway. The company is shut down either due to personal
issue, want to setup a new business or any other reason due to which the company is liquidated.
Procedure for it is a bit exhausting and time consuming:
 Provide “declaration of solvency” certificate.

 Sign declaration that shall be signed in public notary.
 A meeting is held with shareholders within 5 weeks of notice.
 A liquidator is appointed to dissolve assets and other securities.
 Provide a article in the newspapers for public records.
 Declarations signed copy shall be send to the 'Company House' or form 4.25( for
Scotland) within 15 days of the declaration.
Recommendation: The company should take a meeting with creditors to change their mind to
dissolve with court orders of compulsory liquidation (Raz, 2017). They should perform creditors
voluntary liquidation, so that a good amount could be ascertain from it, easy method to conduct
better results and less time consumption. If creditors still dint agree after new negotiation then
champion Ltd have no choice but to dissolve through compulsory liquidation.
Case law 2:
In the following case Mr. Anderson is an employ at Amber Ltd being designated as CFO. The
contract from both parties is 12 months for termination or resignation. A competitor Beta Ltd
offered Mr. Anderson, post of CEO of which the offer 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.
CONTRACT:
A contract is an agreement between the employer and employee. This paper work
includes all policies and agreement details offered by company. To which after employee gets
acknowledge about knowing every detail agrees to work with them and follow rules, guidelines
and policies mentioned in it (Snyder and Maslow, 2018). It's a legal document having special
powers and if any tbreach of duty happens between the employer and employee they can be
taken to court in matter of breech of contract.
BREACH OF CONTRACT:
This refers to term where any of the parties obligated by contract either do not full-fill
duties and policies mentioned or else create a issue that leads to 'breach' of contract. Any default
done by either side can be legally sued and strict jurisdiction can be passed against them, looking

at the seriousness of dispute (Van Koppen and et. al., 2014). Generally in terms it leads to
compensatory resolve dispute inside company. If any damage is caused to either sides of parties,
they can seek judiciary help to conclude in monetary loss.
INJUNCTION
Injunction is defined in Interim Injunctions under section 25 Civil Jurisdiction and
Judgements Act 1982 and the American Cyanamid principles. It's given there to prevent
organisation, if any person who is going against or in disapproval of rights and norms of other
party which is causing legal issue to other. In simple words, court can order to prevent anyone
from doing any activity or any sort of issue which is creating problems to other which might cost
in monetary terms.
Alternate dispute resolution:
ADR is basically the procedure to solve the issues between two parties without the need
to go and file a lawsuit in Court. There are plenty ways to do so and provide a proper guide for
betterment and get There are three outlines to provide guidelines by ADR to solve disputes
between them:
 Conciliation: It is the procedure where parties appoint a conciliator and who listen to
both sides together and separate and resolve the issue between them. Having a conciliator
is a good option to have since it will provide parties to get better chance of gaining their
area of interest in compensation and they can approach together with a better solution
than going to court and waiting for the results.
 Mediation: It is an less complex process where a common neutral third person is
approached to solve the lawsuit of the parties before it runs for the trail in court. First he
examines both sides issue, later points out issues with both sides. Afterwards, present the
proposal made by both the parties (Voss, 2016). Generally, in mediation parties cannot
be forced into any decision.
 Arbitration: In this process an impartial third party(arbitrator) is appointed who provides
the arbitration award after hearing both sides. Arbitrator provides solving the issue with
less cost and time and removing the need to approach the court. In the arbitration process
generally both parties approach to negotiate with each other.

CONCLUSION
According to above mentioned report, it concludes that concept of understanding business law
and provides, government of United Kingdom offering several remedies, laws and rectification
process in dispute. Acts provided in parliament, which is a sovereign entity are to shield citizens
from recurring unlawful circumstances and maintain loyalty in people of the nation. These laws
are balanced combination of safety for country's residents, plus these are created keeping people
in mind and generating laws which maintain faith of citizens towards judiciary in need of
situations as mentioned in case laws provided above.

REFERENCES
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(Johnson, 2013) (Luetge,Armbrüster and Müller, 2016) (Peterson and et. al., 2016) (Raz, 2017)
(Snyder and Maslow, 2018) (Van Koppen and et. al., 2014) (Voss, 2016)