Legal Framework, Business Impact, and Dispute Resolution Analysis

This report provides an in-depth analysis of the UK legal framework and its implications for businesses. It begins with an overview of the English legal system, including legislation, common law, and European Union law, and explains the roles of government in law-making. The report then delves into the application of statutory and common law in the courts, followed by a case study illustrating the impact of employment, company, and contract law on business operations, using the example of Mr. Smith and Pimlico Plumbers. Furthermore, it explores the legal formation of different types of business organizations, such as private and public limited companies, and examines various methods of business funding and management, including debt capital, equity capital, and government grants. The report emphasizes the legal requirements and considerations essential for business success and sustainability within the UK legal system.

Legal Framework and Legal
Solutions

INTRODUCTION
A legal framework is concerned with a step of rules, procedural steps often established
through common law on the basis of which decisions are given in the court. It is a document
under which the rules, regulations and obligations of government, citizen and companies are
set and it is mandatory for them to abide by in order to avoid any legal consequences. The
Potato council was established in UK in the year 1997 to promote the production and selling
of potatoes in the country. As of 2019, there are more than 2900 potato farmers and 700
distributors that sell and export in different part of the world. It is a division of non-
departmental public body and comes under the division of agriculture and horticulture
development board. The current report will focus on the nature of legal system, its impact on
business, formation of different business and legal solutions in solving disputes.
MAIN BODY
Different sources of English law.
The major source of English law are legislation, common law, European law and European
convention law.
 Legislation: Legislation involves preparation of laws by local, state or
national parties. The UK parliament holds the power to pass the laws. The
house of commons has 650 members where each member represents a
geographical location and is voted by the people living in that area.
Whereas, the house of lords involves 800 individuals out of which the 600 are
appointed by Queen on Prime Minister's recommendation and the other
member are inherited ‘lord’ or ‘lady’ of the England.
The legitimate arrangement of England and Wales is a customary law one, so
the choices of the senior investigative courts (see beneath) become some
portion of the law (Austen-Baker, 2017).
 European Union Law: EU laws outweifg the UK laws because Britain is a
member state of European union.
The European Convention on Human Rights
Being the Member State of the Council of Europe, the UK is a signatory to the
European Convention on Human Rights (ECHR). The Human Rights Act
1998, which became effective in October 2000, empowers every one of the
courts in the UK to ensure that the rights are diferentiated in the ECHR.
Arrangement of UK law

A qualification is made between open law, that oversees the connection
between singular residents and the state, and private law, which administers
connections among people and private associations.
For functional purposes, the hugest differentiation is between common law
and criminal law.
 Common law: It covers such zones as agreements, carelessness, family
matters, business, probate and land law.
 Criminal law: It is a part of open law, characterizes the limits of worthy
direct. An individual who oversteps the criminal law is viewed as having
carried out an offense against society in general.
How criminal law is enforced in UK
An individual who accepts that a wrongdoing has been submitted contacts the police,
who direct an examination. On the off chance that, in the wake of capturing and
meeting an individual, the police accept that the person in question perpetrated the
wrongdoing, that individual is charged. A report of the case is then sent to the Crown
Prosecution Service (CPS).
On the off chance that the CPS accepts that the case has a sensible possibility
of progress, and that it would be in the open enthusiasm to do as such, it will
begin criminal procedures against the suspect, who turns into the respondent
for the situation. In court, the CPS bears the weight of demonstrating, past
sensible uncertainty, that the litigant perpetrated the wrongdoing.
Explain the role of government in law making. Explain how statutory and common law are
applied in the courts.
The proposed new law is called a bill and it is imperative that a bill is agreed by both the
houses of parliament and receive the Royal Assent from the Queen in order to become an act
of parliament. The bill is introduced by a first reading and if the government has a majority
then the bill is passed by the House of Lords.
Also, the parliaments perform three functions which includes representing citizen’s interests,
passing and implementing the laws and also monitoring and controlling the actions of the
government.
Common law: The common law involves all the rules and regulations that have beenmade
up by the judges through the decision of the cases that they have heard. The common law is
of two types: substantive law and procedural law.
Substantive law is a rule about an individual behaviour. It means that an individual
cannot commit any crime as per the framed contract. These substantive rules differ from

procedural rules as procedural rules are only concerned with governing the way in which
things must be done.
Statutory law: Statutory law is a law that has been framed by the parliament in the form of a
legislation. The bill got approved by both the house of commons and the house of lords and
then it is given to Royal Assent by the Monarch. Theefore, it is called statue law in the UK.
The difference between these laws is that statue law is made by the parliament in the
form of a legislation whereas common law is a set of substantive and procedural rules that are
created by judges through the decisions in the cases that they have heard (Hannigan, 2017).
Although, the government plays a significant role in framing the laws but its not entirely in
the hands of the government as it also involves other parties like house of commons and lords
and parliament.
Using specific examples illustrate how company, employment law and contract law
have a potential impact on business.
Case Study:
Mr Smith, a previous 'labourer' for Pimlico Plumbers, carried a case to a business court in
2011, identifying with unjustifiable expulsion, unfair rejection, privilege to pay and
segregation. Following a respiratory failure in 2011, Smith looked to diminish his working
hours down from five to three days per week; a proposition which was dismissed by Pimlico
and at last brought about his rejection from work and expulsion of his leased organization
van. At the work council, and at each resulting stage, Mr Smith has been effective in his case.
All through the procedures of this case, thought has been given to the agreement went into by
Mr Smith, which plainly expresses that his business status is that of an independently
employed temporary worker for the reasons for his dealings with Pimlico. Significant thought
has been taken to the way that he had the option to reject occupations, arrange pay, settle on
choices on his working hours and was enrolled to cover regulatory expense on an
independently employed status. Pimlico was likewise under no commitment to give him work
and didn't furnish Smith with the instruments to finish his occupations. Be that as it may, the
Court of Appeal settled on the choice to order Smith as a 'specialist' because of Pimlico's
prerequisite for him to utilize their van and to work a base number of hours out of each week.
Employment law: Employment law states that all the employees are entitled to a contract of
employment and the employment rights act of 1996 requires every employer to provide all
employees a written statement of the main terms of the contract. The employees are entitled
to various statutory rights like equal pay, participation in trade unions, no discrimination and
not to be dismissed unfairly.
Self-employed and contractor: A self-employed person is an individual that runs the
business by themselves and also take the responsibility for the success and failure of the
business and are not paid through PAYE because they do not have the roles and
responsibilities of employees. A person is considered to be self employed and not an
employee if they are not paid through PAYE and also:
 They submit invoices for the work performed by them.
 They are not under direct supervision while doing the work.

 They operate under a contract that mentions the terms like self-employed, contract or
an independent contractor.
 They are allowed to work for more than one client.
Thus, it can be concluded that Mr. Smith is an employee of Pimlico Plumbers because he
used the company’s assets like Van and not his personal vehicle. Also, he did not provide
any invoice weekly or monthly which resulted that he is an employee and not a
contractor. Mr. Smith wore company’s clothes and worked under their supervision which
entitled him to be an employee for Pimlico Plumbers.
Explore how different types of business organisations are legally formed
There are various types of organizations in the United Kingdom like small, medium large or public
and private therefore every business has to follow a different procedure of incorporation depending on
its nature and size. The business organizations are formed through:
 Private limited company: It is a legal entity that is formed and managed by private
individuals and also the liability of shareholders is limited to the extent of capital invested by
them into the business. The requirements for private limited company are as follows:
At least one director must be above the age of 16 years
The company must have its registered office in the UK
There must be at least one share issued at the time of incorporation (Hannigan, 2017).
 Public limited company: It is a company whose securities can be traded in the share market
and offered to the general public. It is imperative to raise 50000 pounds of shares in order to
get a company registered as a PLC. Also, this structure is suitable to large scale organizations
that wish to grow and expand at rapid pace.
There must be at least two members at the time of going public and every member has a
limited liability up to the total value of shares purchased by them.
The Agricultural experimental centre (AEC) must be registered as a public limited company
Explain how business organisations are managed and funded.
It is imperative for every business to allocate funds in order to carry out its daily operations,
expand its activities and to grow sustainably. Depending on the size, nature and scope of an
organization, there are different ways to obtain finance like:
 Debt capital: Debt capital is a popular source of raising finance from third parties like
banks, financial institution and investors with the promise to repay the principle
amount along with interest after a fixed period of time. In the view point of Huang,
Ritter, and Zhang, (2016) debt capital is beneficial because it leads to easy funding
without any control by the third party on the business and the interest paid on the
debt is tax deductible and also costs less than other sources comparatively. However,
the Cole, and Sokolyk, (2018) argues that debt capital is risky because any failure.
 Equity capital: Equity capital is the process of obtaining finance where an
organization raise funds from a third party in return for an ownership or stake in the
organization. According to Lewis, and Tan, (2016) it is beneficial as the business is
not required to provide a fix sum of amount as interest per month or year which
keeps liquidity in the organization that can be used to grow the business. On the

contrary, Creutzfeldt, (2016) states that the shareholders of the company have voting
rights which means that he company has to give some power to the shareholders and
it can affect the smooth working of the organization.
 Government grants and subsidies: According to Campbell, Galpin, and Johnson,
(2016) In order to encourage innovation and the concept of entrepreneurship, the
government provides with subsidies and grants to the new businesses. Also, it
provides loans at a very low rate of interest in order to make it for the business to
repay the amount. However, the Burns, and Dewhurst, (2016) argues that it is not an
easy process to obtain government loans and may take a lot of which can defeat the
actual purpose of the funds.
The agricultural centre must choose government grants as a potential source to obtain
finance as the unique and innovative idea will help the country to grow in the long
run and can also help in increasing the production and exports that will help in
improving the economy of UK.
Recommend legal for resolving a range of disputes
ADR provides a voluntary alternative to the accepted practice of using courts as a source for
the purpose of settling legal disputes. The major principles of ADR include adjudication,
arbitration and conciliation and mediation.
 Arbitration: The arbitration is a popular type of ADR used in the United Kingdom
and it involves solving disputes with the help of an arbitrator instead of some legal
body appointed by the state. The decisions are given faster than the court and is also
much cheaper and flexible therefore many parties choose this alternative (Wahab,
2016).
 Mediation: Mediation is another form of ADR that is concerned with providing better
communication between the disputed parties. The mediation is basically concerned
with the process of settlement where both the parties come to a common ground in
order to reach a certain conclusion. It does not involve guiding or directing the parties
like arbitration (Schaub, 2019).
 Conciliation: Under conciliation, the third party provides various solution offers to
both the involved parties so that they can reach a suitable agreement. The conciliation
method is the least flexible and it is based on the provisions of law.
 Negotiation; Negotiation method involves solving dispute between both the parties
through negotiating and compromising in order to reach an end conclusion. The main
objective of negotiation is to avoid the intervention of third party into the
organization.
In the view point of Abdullah, (2017) the ADR is considered to be cost and time
effective and also really flexible when it comes to providing solutions but there are
certain risks associated with ADR like power differences which means that sometimes
unequal distribution of power can lead to biased judgements by the third party. Also,
some agreements reached in mediation fail to act as precedent in the future cases
which is a major problem for the parties.

CONCLUSION
From the above study, it can be concluded that the government and the parliament both play an
important role in the framing of laws in UK and there are different types of laws governing the
country like legislation, Statutory law, common law and European convention law. Also, the report
focused on the case study that differentiates between an employee and a contractor, different types of
business organizations, methods to raise finance and the different ways to settle disputes like
negotiation, mediation, arbitration and conciliation.
REFERENCES
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