UK Business Law: Exploring Sources, Procedures, and Key Legal Areas

This report provides a comprehensive overview of business law in the UK, detailing the various sources of law including legislation, common law, European Union regulations, and the European Convention of Human Rights. It explains the procedure for creating law, differentiating between statutory and common law and their application in courtrooms. The report further elaborates on key areas of business law such as company law, employment law, and contract law, outlining the legal constitution of different organizations including sole proprietorships and partnerships. Additionally, the report analyzes several case laws, offering recommended suggestions. Desklib provides access to similar solved assignments and past papers for students.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
Task-1..............................................................................................................................................3
P-1. Explain different sources of law in UK..........................................................................3
P-2. Clearly explain procedure of creating law and define the purpose of statutory and
common law in court rooms...................................................................................................4
TASK-2............................................................................................................................................5
P-3. Explain company law, employment law and contract law in brief.................................5
Task-3..............................................................................................................................................6
P-4. Legal constitution of different organisations in UK.......................................................6
P-5. Explain negociating and funding of different institutions..............................................8
Task-4..............................................................................................................................................8
P-6 Recommended suggestions towards the below mentioned case laws.............................8
Legal solution:......................................................................................................................10
CONCLUSION.............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
The business law regulates the functioning of the businesses in UK. It deals with the
provisions related to the operations of business in UK. The laws are applied to all type of
business organisations. The business law includes the company law, contract law, etc. All these
laws deals in different fields. The laws are framed by legislature of the nation. In addition to this,
the case laws, precedents also provide for the law of the country(Armour and Sako, 2020). This
report would discuss about the company law, contract law, employment law, etc. It would also
discuss about three case scenario which is related to business law of UK. This report would also
discuss about the formation of laws in UK. It would also outline the hierarchy of different courts
in UK. The courts includes both civil and criminal courts of the country.
Task-1
P-1. Explain different sources of law in UK.
The law is derived from different sources. In UK, the law has mainly arrived from the
four sources. These sources are based on the geographical boundaries of the country. These
sources of law is discussed as follows-
Legislation- The legislature is the prime source of making the laws for the country. It can make ,
modify or delete all the laws of the country. The legislature is also eligible to amend the
previously framed laws for the country. These are framed by the discussion held between the
members of the legislative assembly in the parliament. Firstly, a bill is framed, then the
discussion happens on such bill. After the discussion, the bill is passed from the legislature and
then sent for receiving the royal assent. Then these laws are applied on every citizen of the
country. The legislation can further be divided into two categories. These are the supreme
legislation and delegated legislation(Christie, Saintier and Viven, 2022).
Common Law: The common law is the primary law of country. This division is too crucial
aspect of law devising, principles are created in old case laws. In case of parliamentary it would
create a big perspective. It is made even before the judicial system is being created in the
country. Earlier, there were kings who was supreme. All the decisions made by those kings were
final. These decisions were then used by the government that framed the common law. The
common law has basically explains the structure of the legal system.

European union: The European Union is the authority that frames the law for the citizens of
UK. Its need was realised back after the World War II. There are twenty eight members in this
union. The laws framed by this union is applicable on all these member countries. The member
countries also enjoys the rights provided by this union. It is the basic framework of the legal
system of UK. All the also are made by keeping the laws of this by the parliament of UK. All the
laws are created to promote the peace and unity between the countries of Europe after the world
war. Moreover, it has given a benefit in dominating the market with the most developed
countries as it provides global dominance at the international level(Deb, 2022).
European convention of human rights : This convention basically supports the working
towards the interest of human rights. It is created to promote the peace and harmony in the
country. This would have also resulted in the reduction of conflicts between the countries. The
main need of having this organisation is to create and make a better living surroundings for all
individuals along with cultivate progressive nations. This union has particularly taken care of
implying the human rights laws along with the norms decently within the business organisations.
It also works for the different sectors as well in the country. Moreover, the human rights are one
of the diplomatic aspect along with changing with several new improvements while making with
the change in the society.
P-2. Clearly explain procedure of creating law and define the purpose of statutory and common
law in court rooms.
Statutory law: The statutory laws are the laws that are formed by the statues. These laws
provides the written format which is being created by the legislation of United Kingdom.
Moreover, the basic principle is that is is mainly used in the legal sector by the judges and
advocates in the court room. The meaning if these laws is more clear to the legal sector
individuals. Moreover, these cannot be used by the general people. But, these statues are
applicable on all the citizens of nation. Since, it cannot be justified for profitable result so it is
always used in its simplest manner(Enriques and Ringe, 2020).
Process of application in justice court: This procedure can be understood through a earlier case
of year 1836 R vs. Harris where the accused bit the nose of victim. But, in law it was mentioned
that “stab,cute or wound” to other person is a crime but not biting . So, on this basis the accused
was released with no charges that was implemented on him. Moreover, it explains that the literal

meaning of this law and term could only be used in its actual meaning. In addition to this, it
cannot be bend for needing the desired outcome as per the case.
Common law: In the most simplex terms it can be explained as the law that can be
defined as the judgements which is given in the court room for particular decision or cases that
would only be enforced in cases. Moreover, it was originated in the early middle ages in court
rooms of kings where the decisions is being given by king as per the law made by the king. The
decision of the king is final. No questioning can be done on the decisions of kings and it has to
be abide by all the persons in the country. So, these makes the common law. So, it does not have
any specific statute or guideline to be followed as it has arrived by the judgements of the king.
Moreover, by taking this concept sometimes, there are some extraordinary jurisdictions that is
being given by the supreme benches which is accepted by statute law as well as implemented in
acts of parliament(Giliker, 2018).
Process of application in justice court: By implementing these law in court rooms is a very
common and easy to explain. There are similar cases that has happened before and are refereed
in this case law which is being provided to be in approval of these current case. If a case is
having identical facts or dispute between the two parties, then there are series of same case laws
by which one can advert and gain merits in its case law with getting the desired results as given
in the judgements.
TASK-2
P-3. Explain company law, employment law and contract law in brief.
Company law: The company law explains about the different provisions related to the business.
It was formulated in the year 2006 by the name Company Act 2006 for the purpose of rolling up
all facts in the business organisation which would formulate them in the right way in legal
system of the country. Moreover, it is legally bound by this act. This act binds mostly all fields
of activities which is being recorded in any business arrangement. Moreover, it would also define
different methods and remedies in all cases related to any dispute arises while working in the
organisation. It alos details about the set of laws that is comprehensive in nature to United
Kingdom along with changing almost every working process of law in concern with the business
entities(Hardman, 2022). The company law explain the guodelines for the shareholders, directors

and management of the company. It would also detail about the provisions related to the
commencement and the disposal of companies.
Employment law: This law explains about the relationship between worker and employers that
would govern the expectations of both parties from each other. Moreover, in this contractual
agreement form all the members or employees are beholded by a basic system of terms and
conditions while operating which is mandatory used by all in the company. In addition to this if
any person tries to flight them or figure out a demerit is charged with fines and penalization. It
too protects business and workers from getting any unfair handling on any basis. The Equality
Act 2010 explains that no mis treatment is to be done with the employees on any of the basis like
sex, maternity, pregnancy, disability, etc. by the employee of the company. The Employment
Rights Act 1996 explains about the rights of the employees. These rights has to be abide by the
all the employers of the company. These would explain about the duties of the employer with
realte to every employee of the company. The employer should provide safe working
environment to its employees. These employees are also eligible for the paid leaves, parental
leaves, etc. on the annual basis(Kumar and Heidemann, 2022).
Contract law: It is kinship between parties that is a legal bind makeup where both the parties of
the contract has agreed on given terms and conditions voluntarily. This is the legal body that is
applied over them along an obligatory consisting of sale of goods, regulations between the
goods and services for the role of exchange between both parties of the contract. In addition to
this, the duty is also imposed as well. This would also control and govern the interpretation of
both the parties and also rules the relationship and validity of contract. Moreover, it consists of
general daily goals of business deal that would consist of sale of goods, regulations between
goods and services. It also commands the role of exchange between both the parties of the
contract.
Task-3
P-4. Legal constitution of different organisations in UK.
Sole proprietorship: A sole trader is the person who runs the business on individual level. All
the responsibilities and obligations has to be full filled by this individual only. In this business
arrangement there is no differentiation between the proprietor and the arrangement. Here one can
utilise the people to distribute duty but cannot share the arrangement with any other individual.

Setting up a sole ownership business is not too simple and does not require for any other
legalisation. Generally, it is not even required to be legally certified, in the case if the person
needs then one can register the institution in local registration office along with starting the
business. The sole proproprietor has to pay tax under his own name and not under the name of
the firm(Nyoni and Hart, 2018).
Partnership: The main requirement of the partnership firm is availability of minimum two
numbers of partners. It is optional to register the p[artnership firm in UK. But, the partners can
also make it register as it is not compulsory to do so as per the business law of UK. The partners
share the duties and responsbilities of the business firm. These share of responsibility make all
the partners relief. The legal agreement is made between all the partners related to the
partnership firm. These partners share both the losses and profits mutually in all the conditions.
Moreover, the partners can be active or sleeping. There are certain steps that has to be followed
in order to establish a partnership firm as follows-
 Create a contract between all partners and make it legally verified.
 Register the arrangement in local registry office.
 Make share holders and commence the business.
Limited liability partnership: This is like any casual arrangement which is formed on
the basis of contract agreement along with the ratios and terms & conditions which is pre-
decided in the legal document. The main difference in these organisation consists that no partner
parts any liability with institutions debts and creditors. The company is very much a detached
legal entity in its own nature and does not require any other member to take any duty on the
debts of the company. Its very much self adequate in nature and would not affect its owners at
the time of winding-up. The legal procedure is to setup an LLP which is discussed below as
follows-
 Register under the company house.
 Set up a list of directors and hire a chief.
 Sell at least a portion of shares in public.
 Set-up business policies along with hire employees.
 Start the concern, with decided percentage of work and responsibility(Omolaja, 2018).
P-5. Explain negociating and funding of different institutions.
Basis of: Sole proprietorship Partnership LLP

Management Managing these firms is
very simple and quick to
operate. Its solely
arranged and worked up
by single individual. This
individual has to fulfil
all the work and
obligations of this
organisation and all
decisions is to be made in
which is to be done by
one individual.
Moreover, this means no
other unit shall have any
authority which creates
any debts(Rahman,
2018).
Negociating this firm
requires time taking
and so much of paper
work along with all
duties and work
pressure which is
divided into two
people. Moreover, the
company is headache
of all associates
equally.
In a LLP the main plus
point is that its a
detached legal entity in
nature that describes it
to be advantageous in
nature since, if in any
condition the company
has to close up the
members private assets
are not held liable
related to it.
Funding  Private loans
 bank loans
 private savings
 Personal loans
 investment by
all the partners.
 Shares and
debentures of
company.
 Loan from bank
 selling shares
on stock
exchange.
Task-4
P-6 Recommended suggestions towards the below mentioned case laws.
Court system is very traditional form of resolution the dispute between the parties of the
case. Apart from this, the UK government have started the alternate dispute resolution as per the

Civil Procedure Rules, 1986 so that parties would get speedy disposal of cases in the civil courts
of the country. These solutions are time and cost effective as the parties could have out of court
resolution. Moreover, various alternative dispute resolutions for the given case scenarios are
mentioned below as follows-
Case 1
Scenario:
Gordon is salesperson in Orange Computers Ltd and its work contract states for annual
salary of £10000 and bonus on the sales of 9% that is average of £11000 per annum as per last
three years. In 2015, because of competition the concern was affected. This resulted that Fred
asked Gordon that if he would forgo the salary of 2015- 2017 and accept commission only in this
case. Gordon accepted the modification in contract. In 2016, the economy began to spread out
and company commenced to earn profits. Now Gordon wished to claim the wages of 2015-
2017.
Legal issue:
In this case scenario, the legal issue is that Whether Gordon is eligible for the wages of
year 2015, 2016 and 2017 ?
Legal solution:
For the written case scenario, the solution suggested is negotiation. It would require
appointment of the independent third party who is the negotiator that tries to bring the friendly
solution between the parties. The basic aim of this solution is to apply the win solution for both
the parties. Moreover, the decision of negotiator is not attraction until the agreement is not
signed between both the parties(Refalo, 2020).
Legal justification:
The solution is recommended to Gordon as the negotiation requires quicker solution
where the parties would get speedy disposal of its case. Therefore, the negotiation encourages
win win situation for all so Gordon and its company both can go with the friendly solution.
Effectiveness of legal solution:
By negotiation, Gordon and company could negotiate between each other for wages of
past years. This would aid them to come to these solution that would be beneficial for both the
parties of the case. This is regarding the variance in contract of employment that was done by
the consent of all the parties. Hence, the negotiation would aid in coming to friendly solution.

Case 2
Case scenario:
Janet decided to telephone the Virgin media for installing and purchase of internet
package that would cost £35 per month that includes phone lines of monthly rent of £11.
Moreover, the engineer came next day and installed the internet. But did not find the telephone
point so recommended to come back after speaking with the supervisor. Moreove, Janet waited
by an engineer who did not came when she complained about this to the engineering company.
After 3 weeks the telephone was comparted and the invoice came that Janet was charged with
whole package including the bill of telephone line for the whole month.
Legal point:
The chief issue in this case is that whether Janet is liable to pay the the entire month
telephone rent even if the fact that it was installed after three weeks ?
Legal solution:
In this case scenario, the solution suggested is mediation because it requires the
appointment of independent and unbiased mediator that would mediate between the parties. Its
decision is not constricting on the parties but it would aid in solving the dispute in more quicker
way(Ridley, 2018).
Legal justification:
This solution is suggested as it will aid the company to defending its goodwill as the
matter would be solved internally. Janet would get the speedy disposal of the case. As Virgin
media failed to supply the adequate service to Janet hence mediation shall aid in understanding
each other points along the matter would also be kept private.
Case 3
Case Scenario:
Black Horse Ltd is security institution which has 50 employees. This has four chief
customers who was unsuccessful to repay its money of the bad debt of around £100000.
Moreover, the company was incapable to repay its creditors as one the creditor has filed the
request of winding up and now the court has to decide as to whether winding up order could be
issued or not.
Legal Point:

The legal issue is whether the creditors have last resort to file the close up application for
company Black horse ? Whether winding up is the last resolution available to creditors of Black
Horse ?
Legal solution:
The solution considered for this case is arbitration. It requires the appointment and
independent arbitrator that shall be after hearing the facts of case along with the evidence on
record which would provide the award that is binding on the parties of the case. The primary
benefit of this is that the individuals can select its own arbitrator along with its suitable time and
place of the arbitration. Moreover, the client could also opt for conciliation. In this, the parties
has the flexibility to change the agreement as per their comfort. Moreover, when it is signed, it
has the binding effect on both the parties of the case(Twigg, 2022).
Legal justification:
This solution is suggested as the parties can work out their dispute outside the courts of
the country. Moreover, the arbitration has the same validity and binding effect just like the court.
Hence, this solution can aid parties to have speedy disposal of the case along with the binding
award that can also be brought for the parties(Yidana, 2021).

CONCLUSION
This report concludes about a brief amalgamation of apprehension business law and its
different divisions critically. This requires the perfect representation of right workings and
different remedies in matter of conflict. The case laws existing here would provide a conclusive
and compendious solutions regarding different issues that arise in business concern. It also
portrays for the value of having powerful business law acts and legislations, that would be
provided by UK government by which they could have a strong ground to work in their nation. It
also summarises that there are various forms of business organisation that includes sole
proprietorship, partnership, company and corporations. Moreover, it also concludes that each is
managed and financed according to its structure.