Business Law Report: English Legal System, Company Law, and Impact

This report provides a comprehensive overview of business law, focusing on the English legal system and its impact on business operations. It begins with an introduction to the fundamental aspects of business law and then delves into the structure, branches, and sources of law within the English legal system, including legislation, case law, and treaties. The report then explores the role of government in law-making and the organization of the judiciary. A significant portion of the report is dedicated to examining the impact of various laws on businesses, such as contract law, competition law, data protection, tort of negligence, consumer protection, and health and safety regulations. Furthermore, the report discusses the nature and formation of companies, differentiating between incorporated and unincorporated legal structures, and outlining various types of business organizations. The report concludes with a discussion on managing cases related to employment law, including dismissal, redundancy, and discrimination. This report is a valuable resource for students studying business law, offering insights into the legal framework that governs business activities.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO 1.................................................................................................................................................1
P 1 Nature of the English legal system...................................................................................1
P2 Role of government in making law-making......................................................................3
LO2..................................................................................................................................................3
P 3 The impact of various laws on business...........................................................................3
LO 3.................................................................................................................................................5
P 4 The nature and formation of a company..........................................................................5
P 5 The management of a company......................................................................................6
TASK 2............................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The business law covers that laws which are applicable to the business organisations
while conducting its activities and operations which starts form the day of its incorporation and
continues to apply till its ending. The laws applicable to the business are employment, contract,
competition, trot, GDPR, company law. In the present reports a detailed discussion related with
English legal system along with its structure, branches, sources of law, its purpose and evolution
is presented. Under the justice system how laws are made through role of governments and
organisation of justice is presented. Moreover, the impact of varices laws defined above on the
business is presented. Different types of organisation there legal structure, classification is
outlines further in this report
TASK 1
LO 1
P 1 Nature of the English legal system
Constituents of legal system: A legal system is a combination of various components
which includes the common and statutory laws and their administration. The common laws are
the body of principles which evolved and expands from the judicial decisions (What are the
major components of the legal system?, 2018). The statutory laws are the actual laws in the
written formate which came from the legislative body ad it can abolish any rule of the common
law through expressed words.
Purpose and Evolution: of the English legal system can be defined as legal as well as
judicial role. The legal aspect it to develop statutory and the common law to operate the legal
framework of UK. The judicial role of the legal system is to interpret the legislation and apply
the same in the justice court to give solution for the legal issues and problems.
The English legal system has developed from approximately 1066 till today. The
foundation of this system is more than 900 years old (English legal system – an overview, 2018).
In 1200 the rule of common law was established which is still in practised As the UK is never
rules by a foreign power some of its laws are still intact and followed in same manner. In 1869
the legislature was established to form the statutory laws.
Sources of law:
Legislation: the statues laws are formed through the primary legislation as act of
parliaments and this is the major source of law in UK. The Delegated legislation is another
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source of law in UK where the ministers, public bodies and local authorities are given power by
the parliaments to make laws.
Directives: are addressed to the Member States and are binding- Member States may
choose the form and methods of implementation. The process of implementation is called
harmonization.
Case law:the judicial decisions that arise during a trial court case from the laws with t
doctrine of the judicial principle. This is the original source of common law. This have evolved
and expanded from long time.
Treaties: is the primary source of UK law which consist of the founding treaties between
the member states and with third parties. These treaties define the rule of laws which is
applicable to all the member state of EU and with the third international parties.
Court structure:
Privy council: this is the highest authority to hear an appeal which is heard either by the Queen
or judicial committee.
Supreme court: here the appeal from court of appeal heard by a bench of justice including 5-9
lords of appeal.
Court of Appeal: (The Hierarchy of UK Court, 2018). The criminal Division of the Court of
Appeal hears appeals from the Crown Court.
High court: the high court have three divisions which are chancery, family and queens bench.
All hers cases of different nature and appeal from lower court.
County court: this deals with cases of complicated civil nature such as repayment of loan,
breach of contract, tort negligence.
Crown court: deals with cases of criminal nature such as rape, murder, robbery.
Magistrate: deals with summer offences including case of liquor licences, gabling betting.
Tribunal service: : The decision which are made by tribunals services are related to social
security, employment, child support, pension, tax.
Branches of law:
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Civil law: deals with the cases of lass serious nature where a civil wrong is done to a
person by another person or an organisation. This includes breach of contract, tort of negligence,
minor injury. The innocent party is referred as claimants and opposing party as respondents. The
remedy is available in the form of monetary compensation and imprisonments of 6-12 months.
Criminal law: deals with case of aggravated nature. Here the wrong done is terms as
offences which includes robbery, rape, murder. The injured party is referred as plaintiff and
opposing one as defendant. The remedy is available in the form of long term or lifetime
imprisonment along with heavy penalties and fine.
P2 Role of government in making law-making
Legislative draft is presented before cabinet ministers for getting approval so that it can
present in the parliament for further process. The introductory stage in the parliament first
reading where bill is presented to either houses that is house of Lord or house of Common. Here
the title of bill is read out and it is defined that what the proposal is and what is going to be
discussed in the future session. From here bill goes to second reading where principles of bill are
debated upon and voting is done to accept or reject the bill. After this comes the committee
stage, bill is referred to the house committee for detailed examination. Here amendments are
made in the bill. With this comes the report stage where the debated and amendments are made
back to the House. Here bill is further debated and voted upon. After this the bill goes it third
stage where short debates may be done and voting is done to whether bill should be accepted or
rejected. From here the bill goes to the another house of the parliament where is goes by all the
above mentioned stages and return to the earlier house with changes. The bill goes to and forth
until both houses agree on the same changes in the bill. From here bill is presented to Queen
form final formal approval to form the law.
Organization of the judiciary
The judiciary comprises all the law courts in the country including both superior and
subordinates. The judiciary performs the functions of administration of the justice it has two
division civil and criminal, the civil one hears appeal from family and civil matter. The
constitutional reform Act, 2005 and the concordat defines the responsibility of the Lord Chief
justice and head of the judiciary in the UK. The judiciary is the last branch of the power and is
made up of the court system which is defined in the above section of this report.
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LO2
P 3 The impact of various laws on business
Contract law:
This law explains the duties and obligations of the parties entered into a commercial
agreement to fulfil a promise in return of so meting in value. The contract law guides the
behaviours of the business relation of the parties under business transaction (Shen, 2018). This
law also provide remedy for the breach by any of the party as monetary compensation of
compulsory fulfilment of the contractual promise.
Competition law:
The competition act, 1998 prohibits any agreements and the business practises or the
conduct which can damage or threat the competition in the UK. This includes the abuse by a
company which uses its dominance position in market to curb competition. It contains both
criminal and civil provisions aimed at preventing anti competitive practices in the marketplace.
Data protection:
The General data Protection regulation, 2018 have made the strict policy over the
protection of data and information of the consumers by the companies. In case to failure to
comply with this regulation a company can face serious legal consequences as imprisonment and
imposition of heavy penalties.
Tort of negligence:
This includes the provision related with civil wrong done to an employee or the consumer
by a company. A company owes a duty of care towards its employee, consumers as well as the
society (Bengtzen, 2016). While carrying out its business operation it must take care of their
interest and in case of breach of such duty it can be imposed with penalty or fine as monetary
compensation to the innocent party who have suffered damages or injury.
Consumer protection:
An organisation also have duty towards it consumers as to give them the goods quality
goods at fair and just prices. Also, it must inform the consumer about the ingredient and material
used in the product so that they make an informed decision. The company must not cheat with its
consumers as it can face imprisonment and fines in case of malpractice and adulteration.
Health and safety:
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The health and safety Act, 1974 of UK defines the safety and healthy condition which
must be given to the employees when they are working in the employment. This act secure the
health, safety and welfare of a person at work against the risk of harm to health or safety
regarding the activities related with the work.
Product liability:
The Consumer Protection Act 1987 introduced statutory liability for defective products.
A claim can be brought for death, personal injury or damage to private property. The Consumer
Protection Act 1987 imposes no financial limit on the producer's total liability.
Duties of employer and employee:
The employer and employee both enter into an employment contract when an employee
is appointed in the organisation by the employer to work. The employment contract defines the
rights, powers as well duties, responsibilities and obligations of both employer and employee.
The employee have obligation to work as per the direction of the employer and have several
rights such as getting national minimum wages, leaves, leave pay, holiday pay, safe and healthy
workplace (Granger, 2018)(Kubica, 2017). The employer have obligation to give the employee
all the rights protect them from any unfair and discriminating behaviour at the workplace, to
provides them healthy work atmosphere.
Managing the cases of dismissal, redundancy, discrimination, health and safety:
The case of dismissal must be handles with case and an employee must be dismissed on
the fair ground and be provided with written document on the reason of that person being
dismissed along with reason. The cases of discrimination are sensitive so care mast be taken as
maintaining the privacy of the person and his/her personal information. Strict actions must be
taken against the culprit. For health and safety the injured one must be compensated fairly and
strict policy of safety must be followed in the organisation.
LO 3
P 4 The nature and formation of a company
Unincorporated v/s incorporate legal structure:
The legal structure of incorporated business can be stated as it is registered under the
provisions of the companies Act, 2006. It gets a separate identity of its own distinct from it
members and directors (Langford and Ramsay, 2015). On the other hand the unincorporated
business are not the registered one and the owners and business is treated as one unit. Moreover,
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the former gets a legal right to sue and be sue under it name and the unregistered one do not have
right.
Different types of business organization
Sole trader: is formed by a single person is not a registered from of business. The profit
belong to the owner only and all the activities are the responsibility of the business. The liability
of the owners is unlimited as his/her property can be sole to meet the obligation of the business.
Partnership: is formed by two or more person to operated the partnership business.
Capital is brought in by partner and profits is shared among them in predetermined ratio. All
partners work together and run the business and their liability is also unlimited.
Registered company: is incorporated business under the companies act 2006. The
capital is brought by outside sources and profit belongs to the shareholder. The liability of the
members and directors is limited to the extent of the investment. The directors and the company
are two separate legal persons. A company can sue and be sued under its name.
Classification of companies:
Public and private companies: are two different from of companies where public co can
sell its share freely in the share market and all public co are listed on the stock exchange. On the
other hand private co can not sale its share to the public, shares are subscribes limited number of
shareholders only. No private companies are listed on stock exchange.
Limited and unlimited companies: is also a form of classification whereby in the
limited one the liability of the members and shareholder is limited to the extent of their
investment (Ramsay and Sandonato, 2017). Conversely, in the unlimited companies the members
and the owners are labile to meet the financial dues and obligation for the business from their
personal asset as well.
Starting up a business organization and its registration
To start a registered business it is required to be resisted as per the provision of
Companies Act, 2006 and with the companies house. For registration memorandum and article
of association must be form where shares are subscribes by the initial shareholders and rules of
the running the companies are set out. Moreover, the statements of shareholder's equity and
legal compliance must be set out for registering the company.
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P 5 The management of a company
The first directors are appointed in the first annual general meeting (AGM) after that in
the broad meeting. The company secretory and auditors are appointed, retires and replaced in the
AGM only (Scott, 2018). The shareholders play a vital role in all these appointments and their
views are taken in form of votes as they are the owners of the company.
Application of company law in different types of business organization:
As per the provision of the Companies Act, 2006 the funds of registered business which
is incorporated as per the provision of this act and are funded through angle investors, crowed
funding, equity while in partnership and sole trader the owners themselves bring in the capital
and they are not registered as well. The company is operated and managed by the directors who
are appointed in the AGM. In partnership and sole traders the owner or the partners are
responsible to run the business.
TASK 2
LO 4
ENCLOSED IN PPT
CONCLUSION
From the above report it can be concluded that the English legal system serve an essential
purpose of establishing the legal laws in the UK and its have evolved with time. The sources of
laws are legislation, directives, case laws and treaties. The privy council is the last and highest
court to hear an appeal and the tribunal services is the initial and first authority to hear a case.
Both civil and criminal cases are opposite to each other as they deal with different types of cases.
All the laws including contract, competition, company, tort, Data protection and others are
directly linked to the business operation and non adherence leads to facing legal consequences.
Furthermore, it has been articulated that different types of business organisation have distinct
legal structures, source of funds and are also managed differently with having separate
ownership.
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REFERENCES
Books and Journal
Bengtzen, M., 2016. EU and UK investment disclosure liability: at cross purposes?. Capital
Markets Law Journal. 11(3). pp.429-441.
Granger, C., 2018. Data protection and the rules on retention. Practice Management. 28(6).
Kubica, M. L., 2017. Legal Doctrine on Rylands v. Fletcher: One more time on Feasibility of a
General Clause of Strict Liability in the UK. World Academy of Science, Engineering and
Technology, International Journal of Social, Behavioral, Educational, Economic, Business
and Industrial Engineering. 10(10). pp.3532-3540.
Langford, R. T. and Ramsay, I., 2015. Directors' Duty to Act in the Interests of the Company:
Subjective or Objective?. Journal of Business Law. pp.173-182.
Ramsay, I. and Sandonato, B., 2017. An Analysis of the Business Objectives of the Largest
Listed Companies in Australia, the United Kingdom and the United States.
Scott, P. F., 2018. National Security, Data Protection, and Data Sharing after the Data Protection
Act 2018. Data Protection, and Data Sharing after the Data Protection Act.
Shen, J., 2018. Regulation of Controlling Shareholder Misconduct in Listed Companies: A
Comparison of Hong Kong and Delaware.
Online
What are the major components of the legal system?. 2018. [Online]. Available
through :<https://brainmass.com/business/business-law/major-components-legal-system-
505236>.
The Hierarchy of UK Court. 2018. [Online]. Available through
:<http://www.justcite.com/kb/editorial-policies/terms/uk-court-structure/>.
English legal system – an overview. 2018. [PDF]. Available through
:<http://seas3.elte.hu/coursematerial/LojkoMiklos/The_English_Legal_System.pdf>.
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