Business Law Report: UK Legal Framework, Contracts, and ADR Methods

This report provides a comprehensive overview of business law within the United Kingdom, addressing various aspects such as the sources of law, including primary and secondary sources like Acts of Parliament, European Court decisions, and common law. It delves into the role of government in shaping laws, the effectiveness of the legal system, and the impact of regulations, legislations, and standards on business operations. The report examines the obligations and responsibilities of company directors under the Companies Act, particularly in the context of employment and contract laws. It also explores the application of legal solutions to business problems, including alternative dispute resolution (ADR) methods and the positive and negative impacts of these solutions. Relevant case studies and references are included to support the analysis.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different Sources of Law..................................................................................................1
P2 Role of government in formation of laws.........................................................................3
M1 Effectiveness of legal system in terms of recent reforms and developments..................3
D1 Critical evaluation of legal system and law with specific examples................................4
TASK 2............................................................................................................................................4
P3 ...........................................................................................................................................4
M2 Impact of regulations, legislations and standards............................................................5
TASK 3............................................................................................................................................5
P4 Solution for the given cases..............................................................................................5
P5 Justification of Solution....................................................................................................7
M3 Positive and negative impact of legal solutions to business problems............................7
TASK 4............................................................................................................................................8
P6 Alternative Dispute Resolution.........................................................................................8
M4 Effectiveness of recommendations..................................................................................9
D2 Critically review and evaluate the use of appropriate legal solutions..............................9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business laws are cluster of several acts and statutes which assist in the performance of
commerce and trade in the market. Each country complies with their rules of business and these
regulations are necessary to be followed by companies doing their business. These obligations
are comprised of laws covering contract, company, sale of goods, employment rights and many
more legal statutes.
It is essential to abide by these laws otherwise it will create threats related to legal
formalities. This report deals with assessment of sources of laws in United Kingdom and how
these laws are created and applied upon an organisation, also what are the regulations a company
has to follow during incorporation. This report covers advice to the clients as per given legal
problem in the sector of contract and employment laws. Methods of Alternative Dispute
Resolution have also been discussed in this paper with relevant case studies and references.
TASK 1
P1 Different Sources of Law
“Parliament is a sovereign” this statement shows that every individual have the
authority to express their views and act as per constitution needs. It means, nation is working as
per the current changes and legislation by considering necessary elements fir controlling several
probabilities of conflicting situations. Main objective of general assembly is to enact several laws
and acts for imposing it at marketplace in order to prevent society from wrongful conducts.
Laws are those set of rules and regulations, enacted by governing entities of a country. Generally
there exist two kinds of sources Primary and Secondary. Primary sources are comprised of
customs, constitution, international conventions, treaties, usages, etc. whereas secondary sources
are formulation of judgements and precedents given by the court. Every source has their own
importance in structuring laws. Secondary sources are usually used to remove contingencies or
anomalies in provisions of law (Bagley, 2010). In addition, secondary sources are helpful in
creating new laws or amending the existing laws. These sources provide a basic view of why and
how laws are being created.
European laws are considered as primary source of law and are enacted by the parliament
which is consisting of the Queen as its head and the Houses of legislature, the Commons and
Lords. These laws are enforced in the jurisdiction of European Union. EU is a member of 28
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states and business is conducting among these members according to the laws implemented by
European Commission. EC was originated under Communities Act 1972. It is regulated by
European Ministers, Cabinet, Courts and various Councils. EC is considered as executive body
of EU. The primary source of European laws is extracted from various treaties, directives and
regulations. Treaties are those agreements between two states in order to perform certain
promises as per the agreement. As treaties were the oldest form of legal obligations; hence it is
considered as primary source of framing laws. The precedents or judgements given by courts are
considered as secondary source and in UK these are the reason for enforcing new laws as
common law has been practised there.
Similarly, laws of business are made by using these sources. Basically, treaties and
precedents are considered to formulate business laws. Treaties are the oldest source which was
used in establishing trade relation with other states and precedents of court are the part of
common law in UK. International conventions are also synchronised to form such laws which
can meet the expectations or other countries entering into business in UK. These conventions
provide a guidance of how trade and business to be conducted in peace.
English legal system are mainly classified into two parts such as; civil law and criminal
law. However, these two laws are having distinct objectives like civil one is handling normal
things whereas criminal act is ensuring that crime is get controlled. At the same time, it is also
identified that laws are originate are from various elements which are known as sources of law.
Some of the major sources of laws are- European court, common law and acts of
parliament. All these three origins are totally different from each other in various extent.
However, European court was originated in societies and established after world war II in order
to maintain lasting peace. In fact, it is also known as court of justice and supreme court of
European union where various judges are present for managing several complex cases which
may affect the environment of nation. Mainly, this court is focussing in controlling wrongful
conducts because initially 7 judges are appointed of each or every state in this tribunal for
resolving issues. On the other hand, acts of parliament are also enforce somehow to impose some
specific legal norms for managing inappropriate things which is incurred at societal place.
However, “Act of Parliament” is liable for creating new or fresh laws or can also authority to
modify existing one. Basically, bill is known as act which is prior approved by both house of
commons and lords or furthermore pass it to royal assent by Monarch. Thirdly, common law is
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also consider as judicial precedent as well as norms made by legal bodies or any case law. By
this, number rules and regulation is going to established with the consideration of current
situations.
P2 Role of government in formation of laws
Government is a functioning group of the Legislature, Executive and the Courts. These
organisations are responsible for the governance in a state. The legislature is responsible for
making laws and the executives implement them. The courts have a special duty which is to safe
guard the interest of people and to imply these laws while interpreting in a manner as needed in
any circumstance. In the United Kingdom, laws are made by the parliament which is consisting
of House of Commons, House of Lords and the Royal Assent. Without the consent of the Queen
a bill cannot become an Act of Parliament.
Bills are drafted before enforcing laws on public, it is necessary that the bills are passed
through the parliament with due procedure. A bill is of three types, Hybrid, Private and Public. A
hybrid bill is such which regulates or affects the rights and duties of individuals by forming a
public bill. A private bill influences the interest of individuals whereas a public one affects the
people as whole. There is a process of forming or enacting laws which has to be followed by the
governing bodies (Crane and Matten, 2016).
At first, a bill is proposed in the houses for discussion. In its First Reading, facts related
to bill are introduced and a detailed vision of act is provided. In the second reading, discussion or
debate over the facts takes place, the main motive of this level is to bring out any changes in the
bill then it is transferred to a committee in its committee stage for making a report in Report
stage. The bill is again transferred to the houses in the Third Reading for making amendments.
This process is carried out in House of Commons at first stage then in House of Lords. After
passing from both the houses it is then presented for Royal Assent. After getting consent of the
Queen, a bill is enforced as an Act.
This is the way in which governing entities in the United Kingdom enforces laws by
using these sources and the process has to be followed. These laws are implemented by EC in
EU (DiMatteo, 2010).
M1 Effectiveness of legal system in terms of recent reforms and developments
The legal system is a revolutionary framework of older administration. It is consist of
methods that are utilised in solving matters in Roman Empire. Treaties are used as significant
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texts to perform trade and business earlier that is why it is considered as a primary source. In
addition, customs and constitution are considered as major primary source for constructing laws.
Legal system is becoming more effective by changing as per the current requirement of demand
and consumer choice. Their main motive is to develop nation by imposing relevant norms and
policies at marketplace. Along with this, preventing entire society from exploitative activities by
imposing acts.
D1 Critical evaluation of legal system and law with specific examples
Laws are constructed from sources which are old and non-reformatory. It becomes
evident to upgrade these sources. For instance acts related to cyber crime cannot be formed using
old sources because no such provision has been given under it. According to Ye, (2011) legal
norms are playing crucial role in developing the nation by taking corrective measures by setting
things in proper manner. Legal system are playing major role by imposing beneficial acts at
marketplace by satisfying the clients needs or requirement.
TASK 2
P3
Directors are liable for performing numerous of roles and responsibilities which is
mentioned in companies act. Their main objective is to develop the organization by
accomplishing distinct business activities in proper manner as well assist others towards their
personal or professional goals. According to companies act some of the major obligation of
directors are- liable for making impartial decision, suggest company while making strategy, act
as watchdog for interested of various shareholders, transparency and so on. According to given
scenario it has been assessed that company needs to expand their business for generating
maximum revenue by grabbing the opportunities present at marketplace. Along with this,
directors are becoming liable for resolving various situations by imposing useful acts related
with employees. Contracts are also a pair of employment. An employee engages with employer
through the contract of service. According to it, an employee has to follow the instruction of his
employer but those which is against the ethics or law (Morrish v Hensly). It is his fiduciary duty
obeys the orders of employer.
Therefore, it is essential to consider few major legal norms or acts related with
employees for facilitating them with useful benefits. Some of the outstanding act which is
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enacted by legal bodies for preventing staff members are- Health and safety regulations is all
about implementing acts related with security of employees for preventing staff members from
instant accidents. On the other hand, equal opportunities means offering best chance of success
to entire staff in order to develop them in suitable manner. Thirdly, general data protection
regulations means directors needs to maintain the confidentiality of certain information and
prevent from getting misused. However, GPDR is helpful for selected firm in various manner
such as; keep the consistency of records, protect it from unusual things henceforth.
Apart from this, employment law and contracts elements have a major impact on
organization and their business because legal elements are necessary to consider while running
business entity. In fact, it is essential to focus on various things for attaining organizational goals
in a defined time frame.
M2 Impact of regulations, legislations and standards
The contract and employment laws are essential aspects of conducting trade and business.
A company has to abide by the statutes of business administration otherwise they can enter into
conflicts. In addition, it gives a framework to the companies for performing their work but in
some cases it results in problems related to threats of law.
TASK 3
P4 Solution for the given cases
In order to terminate employment contract, certain conditions has to be kept in mind. An
employment contract can be terminated only when it is executed or time expires, on the breach
of duty by the parties and on winding up of company.
Case 1- Its all about champion Ltd. Who is going to move their location towards North
London due for providing development of new stadium by premier league. Thus, because of
relocation company is encountering a major financial issue and failed in fulfilling the demand of
creditors and other payment. Therefore, other members are advising company to wind up their
association in order to control losses. Basically, various types of liquidation are identified from
which selected firm can prefer any one as per their situation.
Compulsory liquidation- In this condition organization get failed in fulfilling the demands of
creditors and requisite to wind up the association for controlling the maximum losses.
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Voluntary liquidation- According to this, company is not able to pay its debts which was owes
and the entrepreneur, directors and other shareholders decided to recognise this then they suggest
for insolvency for closing the business.
Company liquidation- Its a formal binding arrangements which is agreed by creditors are also.
Throughout the assessing these above liquidation process it has been understood that
Champion Ltd. Is facing a compulsory liquidation because company get failed in fulfilling the
payments and creditors are enforcing for winding in order to finish the order. Thus, this process
will gone through an appropriate stages as well as requisite to acquire suitable application from
the court for completing this in ethical way. However, legal bodies was implemented an effective
procedure for this whole liquidation in order to control probabilities of any mistakes.
This process starts from the presenting winding up petition at high court of the nation
tribunal with the suitable jurisdiction. Basically, whomsoever parties set out in section 124 of IA
1986 must present the petition that are consist of-
 organization itself,
 director of an association as well as any one of the members,
 supervisor of voluntary association,
 financial conduct authority,
 official receiver.
Normally, petitioner requisite to offer a copy of petition on the liquidate company as well
as must handover the notice of petition in the “The Gazette” . After that , court hearing is going
on in which company have the right to oppose the liquidation of an association. But, judge is
liable for this decision with the help of several facts or figures. Most prominent proof of petition
is that company get failed in fulfilling the payment of creditors.
Hence, proper liquidation process get completed by following all the entire process set by
legitimate bodies while winding up the business for controlling mistakes.
A creditor has all rights to wind up or liquidate a company. As per the given case
Champion Ltd can be wind up by its creditors as it is their right and power to perform such act.
When the debts are not paid by the company then its creditor can appoint a liquidator to wind by
the company. Creditors can voluntarily wind up a company (Johnson, 2013).
In a company there are two type of creditor, secured and unsecured. A secured creditor
can liquidate the company on debt by selling the property in lien. Where as it cannot be done by
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an unsecured creditor. A secured creditor can sold out the properties of company for getting is
amount back which he has invested in it. Mortgage lenders are known as secured creditors. They
can wind up a company very easily.
Unsecured creditor can liquidate a company by filing a petition in the court and can get
money back through this process, in the case of bankruptcy. Through this method, a debt is paid.
It is their right to appoint a liquidator to calculate the amount of debt which shall be paid to them
by the company. It is their right to form a liquidation committee in the case of voluntary or
compulsory liquidation.
Case 2- In the case of Amber Ltd v Mr Anderson, he has breached his duty of good faith,
fidelity, trust and confidence. According to the contract of employment Anderson has to provide
a notice of 12 months prior leaving the company but he has not done as per the said condition.
However, major problem which is identified in this case is that Mr. Anderson get failed in
fulfilling the terms and contract because as per agreements 12 month notice needs to prior given.
Thus, these type of problems must be can be solved with the use of Alternative Dispute
Analysis. In which three types of methods are falls such as; negotiation, mediation and
arbitration. Amongst all these arbitration is best option for clearing this problem in suitable
manner.
P5 Justification of Solution
According to given scenario liquidation is necessary for champion Ltd. Because company
getting failed in completing their company orders because of which creditors is encountering a
major issue. Thus, legal bodies have implemented suitable procedure for implementing
compulsory liquidation at workplace. Basically, creditors are not getting their payment because
of financial issues which is faced by company because of relocation. On the other hand, in case 2
Amber Ltd. Has signed the agreement with Mr. Anderson in which it is clearly mentioned that 12
months prior notice needs to given before resignation but he didn't fulfils the terms and
conditions. Thus , alternative dispute analysis is most suitable method which is used by company
for resolving this issues in effective manner.
M3 Positive and negative impact of legal solutions to business problems
Some of the major benefits and disadvantage of legal implications are discussed as follows:-
Positive Negative
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 Aids in minimizing the probabilities of
mistakes and errors.
 Controlled fraudulent activities.
 Assist others towards corrective path.
 Difficult to understand.
 Complex procedure.
TASK 4
P6 Alternative Dispute Resolution
Parties to the contract has to comply with the terms and conditions mentioned in it. It is
their fiduciary duties to obey the conditions of contract and on non-fulfilment of such terms end
up in breach of contract which gives rise to dispute. A dispute can be sort out in two ways either
by filing a suit in the court or by the methods of Alternative Dispute Analysis. ADR is
considered as the cheapest and simplest way to resolve any disputes between contractual parties.
In addition, it does not need them to go to the courts.
It is comprised of three general methods Arbitration, Negotiation and Mediation.
Arbitration is a process in which parties appoint their own arbitrator and the appointed member
nominates an Umpire whose decision is final upon the parties. The award given in arbitration is
cannot be appealed until and unless it is given without the principle of natural justice and equity.
Negotiation involves agreement between the parties regarding the disputed matter between the
parties. It is the only method ion which parties can ensure their privacy.
In mediation, a mediator is appointed to help them for coming on a conclusion. A similar thing is
also in the method of conciliation, but the only difference is conciliator is responsible for his acts
(Ye and et. al., 2011).
All these methods involve a third party except negotiation. A ADR is a unique process
and is practised in every country with a slight change. In the given case Mr Anderson has
resigned from his post of CFO without a proper 12 months notice. This issue can be resolve by
the methods of ADR. The company can negotiate with him if this does not end up in solving the
dispute then they can enter into arbitration.
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M4 Effectiveness of recommendations
The best method to resolve disputes is by the use of negotiation process because it
involves s on the parties. As it provides privacy to the matter. If it is not useful then methods can
be resolved by the process of Arbitration. However, there is no secrecy in this method and parties
are bound to comply with the given order.
D2 Critically review and evaluate the use of appropriate legal solutions
Arbitration is a better method in resolving a dispute because parties can appoint an expert
in its field also they have to abide by the decision of the council. Moreover, the orders are not
appealable in the court.
CONCLUSION
It is necessary to follow the laws of business without such it will not be easy to perform
trade and business in the market. These laws are helpful in regulation of business in a smooth
way. In addition, it restricts companies to perform anticompetitive practices and unfair trade and
sale of goods. This paper deals with various sources of laws which are used in enacting laws in
United Kingdom. In addition, it provides a brief view of how government is responsible for
making laws in UK. It also deals with various employment and contract laws, which concluded
that it is essential for companies to follow the provision of Companies Act 2006 and several acts
which have been discussed. Various partnerships are also discussed in this analysis, limited and
unlimited. Much emphasis is given on limited partnerships. It also gives solutions to the given
case studies with justification. In the end, this paper provides various methods of resolving
disputes through Alternative Dispute Resolution process. It is an overall view of business law.
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REFERENCES
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Online
Alternative dispute resolution (ADR). 2017. Available through
<https://www.citizensadvice.org.uk/consumer/altern
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