Business Law Assignment: An Analysis of UK Law and Business Structures

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Business Law
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Table of Contents
Introduction......................................................................................................................................3
Section 1..........................................................................................................................................4
Task 1- (LO1 & LO2)......................................................................................................................4
a) Discuss the meaning of this statement and discuss the various sources of UK Laws (P1).. 4
b) Explain the role of government in the lawmaking process and how statutory and common
law is applied in the justice courts (P2).......................................................................................6
Recent reforms and developments in the legal system (M1).......................................................7
c). Use specific examples to illustrate how the company, employment, and contract law has a
potential impact on business. (P3)...............................................................................................8
Impacts of regulations, legislation, and standards (M2)..............................................................9
Evaluation of the legal system and law, with evidence drawn from a range of different relevant
examples to support judgments (D1).........................................................................................10
Task 2- (LO3)................................................................................................................................11
Exploring the nature and formation of different types of business (P4)....................................11
How business organizations are managed and funded (P5).......................................................12
The advantages and disadvantages of the formation of different types of business organizations
(M3)...........................................................................................................................................13
Critically review and evaluation of the types of business organizations (D2)...........................14
Section 2- (LO4)............................................................................................................................15
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In both cases, you are to recommend an appropriate legal solution to resolving the disputes
using case laws or statutes to support your recommendation (P6)............................................15
Compare and contrast different sources of legal advice and support for dispute resolution (M4)
....................................................................................................................................................18
Evaluate the effectiveness of legal solutions, legal advice, and support for dispute resolution
(D3)............................................................................................................................................19
Conclusion.....................................................................................................................................20
References......................................................................................................................................21
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Introduction
To conduct the operation of the business in a fair and transparent manner the role of the business
law is crucial. In this context, there are several laws and legislation that are enacted by the
government for the betterment of the nation. In this assignment, the first task consists of the law
and its sources and also depicts the role of the English government in the process of lawmaking.
Further, it also depicts the recent development and reforms in the English legal system. There are
several laws are discussed that impact over the business operation such as contract law,
employment law, and the company law and also include differentiation between the impact of
the legislation, standards, and regulation over the working of the business. Further, task 2
explores the various types of businesses and the ways how these businesses are managed and
funded for performing their operations. In this context, there are advantages and disadvantages to
this business are also discussed. In task 3, there are various legal solutions are provided and
recommended various alternates methods for resolving the disputes between the disputed parties.
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Section 1
Task 1- (LO1 & LO2)
a) Discuss the meaning of this statement and discuss the various sources of UK Laws (P1).
The literal meaning of the term ‘sovereign’ is the supreme ruler. The term ‘Parliament is
sovereign’ is a principle of the UK Constitution. It states that the Parliament of the UK has
the supreme authority and power to make or amend or end laws. There are three aspects of
the principle of sovereignty. These include:
 There is the supreme power in hands of Parliament to enact laws on any subject
 No predecessor can bind Parliament and no successor can be bound by Parliament
 There is no authority given to the court or any other person to question the validity of law
enacted by Parliament (LawTeacher, 2013).
Therefore, it can be stated that ‘Parliament is Sovereign’.
Sources of Law
The major sources of UK laws include the following:
Legislation: The principle source of law in the UK is the law enacted by Parliament. It is the
supreme legislative authority and the laws enacted by Parliament are called statutes or Act.
Parliament is the only body in the UK that has the authority to pass a law and make
amendments to existing laws.
Precedents: These are also called common law. The common law is based on the judgments
of the cases. The decisions of the court in previously decided cases are applied in subsequent
cases of similar nature. The legal system of England and Wales is based on common law.
European Union Law: The European Union Laws are the laws enacted by the EU and these
laws are applicable to all of its members. The laws supersede the laws of the United
Kingdom and therefore, in case of any conflict between both the laws, the EU laws shall be
made applicable. The EU laws are considered a binding source of laws of the UK.
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European Convention of Human Rights: In 1951, the UK became a signatory of ECHR.
This gave the citizens of UK a right to file a petition in ECHR for protection of their human
rights. It is a valid source of law as it provides the citizens of the UK with their freedom and
protection of fundamental rights (Dzehtsiarou,2017).
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b) Explain the role of government in the lawmaking process and how statutory and
common law is applied in the justice courts (P2).
Role of Government in lawmaking
In the UK, the law is enacted by Parliament. There are two houses of Parliament i.e. House of
Lords and House of Commons. The law is enacted when the bill of the proposal is cleared by
both these houses. The procedure of a bill to become an Act, the following steps is followed:
First Reading: In this stage, the bill is presented in the House of Commons and the title of the
bill is announced so as to notify the members about the proposed bill.
Second Reading: The members of House of Commons carry out a discussion on the bill and
vote on its contents after making required amendments in this stage.
Committee Stage: In this stage, the bill is referred to the House of Commons Committee for
consideration and scrutiny and makes required amendments.
Third Reading: The committee, then report back the amended bill to House of Commons for a
vote on the amended bill and to carry out further debate. The members of the House of
Commons vote to accept or reject the bill in this stage (Arden, 2016).
House of Lords: If the bill is accepted in the previous stage, then, in this stage, it is sent to
House of Lords for their approval and if any changes are incorporated by House of Lords in the
bill, then, those changes are sent to House of Commons again for approval.
Royal Assent: When the contents of the bill are finalized by both the Houses., it is sent for
Roya Assent. In this stage, Queen gives her consent on the bill. After the consent of the Queen,
the bill takes the form of an Act enacted by Parliament.
Application of statutory and common law in the courts
Statutory Law: These are the laws enacted by Parliament and these laws establish the rights
and liabilities of parties to the dispute. Based on these laws, the court decides the matter and
award damages and compensations or gives rights to specific performance.
Common Law: Whenever the law on any particular subject is not clear, the judges decide the
cases by considering the decisions of previous cases of similar nature. The junior courts use the
judgments of senior courts to arrive at a decision.
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Recent reforms and developments in the legal system (M1).
According to the case of Robinson v White where the court held that the subordinate court is
liable for then decision passed by the higher courts. As per the Education Act, 1944, which is
one of the reform for providing education to the states. Further, the Fixed Term Parliaments
Act provides the parties with equal opportunities for participation in the elections. Further, the
virtual courts are another example of one of reform and development.
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c). Use specific examples to illustrate how the company, employment, and contract law has
a potential impact on business. (P3)
Company Law: The companies in the UK are incorporated under the Companies Act 2006. This
Act provides the companies with the rules and regulations that are applicable to the business
activities and on the personnel. The directors and employees of the company are required to
comply with these rules and regulations to ensure that they do not cause any harm to the
stakeholders of the company. The interest of customers and other stakeholders are also protected
under this Act.
Employment Law: There are various types of employment laws applicable in the UK. These
laws include Health and Safety at Work etc. Act, 1974, Equality Act, 2010, Data Protection
Act, 1998 and such other laws that are implemented to protect the rights and interest of
employees. All these laws ensure that the employees are not exploited at the workplace and are
provided with a safe working environment. Further, these laws also ensure that the employees
are not discriminated on any basis (Edmunds, 2018).
Contract Law: In the UK, the English Contract Law is applicable to contracts. This law aims to
provide for rights and liabilities of parties to the contract and ensure that no party breaches the
contract. In case either party breaches the contract, the other party is compensated under this law.
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Impacts of regulations, legislation, and standards (M2).
Legislations are the laws enacted by Parliament. These are also known as Act or Statute. It is
applicable to all business organizations and people in the UK to ensure that the interest of the
public is protected at all times. Regulations are the directions and procedures which are
established by Government Agencies for monitoring, enforcement, and implementation of
legislation. Standards are the defined rules and guidelines which provide for the level of
achievement or quality that is expected from a product or service. They are issued by
departmental authorities (Focus, 2018).
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Evaluation of the legal system and law, with evidence drawn from a range of different
relevant examples to support judgments (D1).
In the legal system of the UK, the subordinate and lower are bound by the decision of the higher
courts that are already passed and the cases involve cases of the same nature. It is the
provisioning guide by the principle of Stare Decisis of the judicial system. The Parliament also
gives importance and considers the matter involving political nature instead of involving the
cases of technical nature.
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Task 2- (LO3)
Exploring the nature and formation of different types of business (P4).
In the business world, businesses not only vary as per the size but also on the basis of the
ownership. In this context, the Jenny, Penny and Marie advice by the accountant to registered
their partnership business in the form of a limited company. For this purpose, the nature and the
formation of different business types are mentioned and explained below:
Limited Liability Company- These are the companies where the liability of the members are
limited which means that the members are liable for the payment of debts and liabilities up to the
shareholding (McQueen, 2016). It is the business which requires more legal formalities in
comparison to any other business. This form of business has separate legal entity from its
members.
Corporation- In the UK, the law related to the corporate are performed as per the Companies
Act, 2006. In this business, the shareholders are the actual owners of the company and the Board
of Directors is appointed to manage and regulates the business operations (Miller and Pope,
2016). These businesses are funded by various external as well as internal sources.
Sole Proprietorship- This type of business is formed by the single individual and the owner is
liable for the payment of all taxes of the businesses. In this type of business, the single owner is
personally liable for the payment of all the debts and liabilities that arises in the business. This
business requires fewer formalities in comparison to other businesses during formation.
Partnership- It is the business which requires two or more individuals are liable to share the
profits and losses of the business. In this type of business partners are personally liable for the
performance of their responsibility towards the business (Flint, 2016). Partners regulate their
business functions per the term and condition mentioned in the partnership deed.
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