Analysis of UK Business Law: Legal System, Company Impact & Case Laws

This report provides a comprehensive overview of the UK's legal system and its impact on business organizations. It explores various sources of law, including European Union law, European conventions, and case laws, and examines the role of the UK government in making laws. The effective...Read More

UNIT 7: BUSINESS LAW

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Sources of law..............................................................................................................................3
Role of Government in making laws...........................................................................................4
Application of statutory and common law in justice court..........................................................5
The impact of company, employment and contract law on business................................5
Evaluation of legal system and law.............................................................................................6
TASK 2............................................................................................................................................6
Advantages and disadvantages of different types of organization and its legal formation.........6
Management and funding of business organizations...................................................................8
CASE 1........................................................................................................................................9
Case 2.........................................................................................................................................10
Case 3.........................................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law is considered as the law related to the commerce and also the corporate law
that is regulated by the body of law and applied on rights, relations and conduction of persons
and business engagement. In this the commerce, merchandising, sales and trading are said to be
the part of business law. Through this report the nature of the legal system of the UK towards the
different organization is going to be explained. It is also going to be illustrating the various forms
of the potential impact of the law over the business in UK. It is also explained in the report that is
provided as the recommendations for the appropriate legal solutions that are required for the
given areas of dispute.
TASK 1
Sources of law
Legal system is related to the system in which it is necessary to installed various practices
in certain nation. The main aim of the legal system is related to eradicated the practise which can
be impact accordingly the interest of different stakeholders. There are different types of sources
that are driving conviction and notions.
On the basis of European union law can be considered as one of the major source for
nation as the part of EU and behind making the law is UK. The rule of EU law is related to the
every action that can be taken by founded on treaties and then approved voluntarily in the
democratic countries. The countries joining European union must respect all the obligations and
rights for convention on human rights.

European conventions are one of another factor that are change on the basis of UK laws
and supposed to do the same thing by which convention took place accordingly as the human
rights. It is related to the consumers rights act 2015 for driven it (Marson and Ferris, 2019).
Case laws are known as judicial precedent laws that can be made by courts then decided
by judge, this is also operated on the basis of principles in order to stare decisive that literally
means to stand by decisions. This is also considered as the judgement or guidance which can be
driven by some superior or predecessors and shape according to the national business laws.
The values of nation can be considered as the biggest factor in order focusing more on
inclination of nation. UK law can be carried out by their government on the basis of federal in
nature as well as it can be eradicated on the basis of impact of culture that has been very
professional so that it can be obliged with some of the addition in laws that drive by their culture.
Role of Government in making laws
UK is one of the parliamentary system with the role of government for make new law
there are different stages on the basis of draft a bill, discuss, then it is necessary to approve by
both the side so that it help for permitting monarch and ammend accordingly (August, Mayer
and Bixby, 2019). Only government can introduce bill in parliament, such as in 2006 companies
act introduced in parliament. Then bill being discussed by different leaders and then it is
necessary for making comprehensive changes which are related to range of parliamentary
meeting are conducted. Also, it is necessary to that bill should be pass on both the houses and
then extended to monarchy for final decision. When any changes are needed it is necessary to
carry such as 1985 companies act 2006. Further, for any changes queen can make it on the basis
of chancery division and tribunals for which any issues can be made.
Effectiveness of legal system in terms of recent reforms and development
In order to make effectiveness in legal system it is necessary to identify the range of
reforms as well as in the last couples of years such as Brexit is one of the best example of it.
Government of UK can be prone to replace all European union exemptions that can be brought
better competitiveness in same field. There were some changes were needed in order to focus
more on present competition laws of UK. In the year 2022 there are changes in order to imparted
hike the final outcomes (Mahaputra and Saputra, 2021).
Vertical agreement one of the most important thing which help business in order to
make local business that are imparted. There is another change which is related to removal of

retail parity obligation which can be intended in order o fetch better practices which can be
related to indirect sales channels. Also, there are legal issues that can be hindered the way of
free trade and impact accordingly. There are some changes were made in VABEO which can be
related to vertical agreement blocks exemption regulation. Also, in 2022 it can be expired by
making intended s for bringing higher level of free trade practices.
Company act 2006, surpass companies act 1985 which can be one of the most important
affluent change in business low on the basis of related practices in UK. All the legal process are
necessary to follow so that it help for carry out business activities with discriminatory policies.
Application of statutory and common law in justice court
Both the statutory and common laws are help for justice candidate as well as it help for statutory
laws that can be made process of legitimation which are related to employment act, company act,
consumers right etc. Judges are responsible for making rules in order to focus on health and
safety of employee by concentrate more on accentuating (DiMatteo, 2021). This is not always
possible in order to protect rights for all the stakeholder that can be give justice for predicaments
and other role of common laws that can be come up with great power. For instance, it can be said
that after Brexit it is necessary for drastic changes that be dealt by state using common laws.
Common law can be taken as legal action that can be taken into product liability. Also, on the
basis of tribunals that are quite clear on the basis of legal stand so that it help for product liability
for making rights of customers.
The impact of company, employment and contract law on business
There are business models are changing on the basis of different types of action taken by
government that can be make the best efforts which are help for bringing the transformation and
clarity so that it help for better management in nation. On the basis of respective changes it can
be said that it is necessary for pertaining legal system so that it help for determining roles and
responsibilities of employees and employer. Such as, according to contract act 1990 it can be
contributed for ensure about the security employers and employees in order to respect rights are
secured on the basis of rights of employees that help to provide protection at workplace. Also, it
is necessary to provide better tools so that employee can get challenges in order to put their
efforts by raising voice against any type of justice (Ağır and Artunç, 2021).
Employers have rights in order to focus more on granted right by law that no one can
deduct salary of an employee except unpaid leaves. Otherwise, the jurisdiction can make changes

on the basis of operational rule but aligning with some core nations. Such as, Consumer
protection act 2015 of UK are related to fair practices of business which can be intended on the
basis of employees in order to uphold interest in business practice. The focus is on faster dispute
which can be resolution in order to extend all of them. In the legal system are one of the great
impact on the basis of business now organization that can be supposed for follow legal notions
that is related to the malicious practise that may affect right of consumers.
Employment laws are considered as getting tougher, employment rights act 1996, are
help for shaping some of key changes in order to makes changes. From any point of view it can
impact on employee performance by experience in modern terms. However, it can be
experienced that modern business are abide that kind of challenges in order to make it ethical
image (Bowie, 2020).
Evaluation of legal system and law
The legal system in UK makes changes according to the law and order and the purpose of
the governing bodies. The corporate entities and its functions are also monitored as well as the
people for the preparation of the law. For being able to introduce a smooth level of functioning
the people will have to focus on the effective part of the English legal system. With the help of
this the system is able to generate the most efficiency system provides not just the case of as an
example towards the judgment of discrimination and unfair dismissal at the organization. it has
been considered that the guilty in this has been analysed on the basis of terms in the contract of
judgment of the court (Test, 2021).
TASK 2
Advantages and disadvantages of different types of organization and its legal formation
Business organizations can be of different types such as sole proprietorship, corporation
and company. For the different types of organization that are differences in their legal structure,
legal formation and the benefits and drawbacks that they cause from their operations,
Sole proprietary:
It is that form of the business which is said to be carried out by an individual that sells the
profit and bears the losses. In this form of business there is only one owner due to which all the
operations are managed by proprietor itself (Rogge and McGinley, 2022). Following are the
advantages and disadvantages of this type of organization,
Advantages Disadvantages

Proprietor is able to manage and control their
individuals that are involved in the operations
Owners is themselves responsible for all the
liabilities of the business.
Owners are the one that enjoy all the profits. The capability of this organization to be able to
raise the capital is very limited for this
organization.
For the establishment of such business a very
small amount of investment is necessary.
For the sole proprietor transferring ownership
is a very difficult task.
Legal formalities:
At the sole property the needs of registering itself with the HRMC is to pay a self-
assessment tax that is required for the registration that can be done through the digital means.
The sole proprietary is the required for filing the income tax. For registering with the national
insurance scheme and also paying the national insurance this business needs to focus on its
corporate governance activities (Townley, 2020). The process and the requirements of the
registration in the sole proprietor is considered to be fulfilled with receiving the certificate of the
incorporation. The sole proprietor is also known for the essential employment law and health and
safety law for the employees and the entity.
Partnership:
Partnership is the form of the business in which two or more individuals take the decision
of entering into the agreement for the purpose of trade and commerce. There are also two major
types of partnerships, general partnerships and the limited partnerships. The general partnerships
were said to be the one that is liable for the unlimited for the non-requirement of the formal
agreement and the liability of the partners. Following are the advantages and disadvantages of
partnership as an organization,
Advantages Disadvantages
It shares the burden and losses the organization This results in the unlimited liability of the
general partnership.
This sort of organization is benefitted from the
decision.
It influences the chance of conflicts for being
arise in the organisation.
It allows the business to gain more capital in
the business.
It is the reason for sharing of owners control in
the organization.

Legal formalities:
The limited liability partnership that is required for the registration of the company in the
house and HMRC. This is the partnership firm that is able to comply with the rules and
regulations of the partnership act (Sun, 2021). The limited liability partnership is said to be
needed to have a formal agreement which would help in filing a certificate of the firm that
complies with the other laws such as employment law, health and safety act and the contract act.
Limited Liability
Limited liability company are the ones that are considered to be owned by eh
stakeholders and managed and run by the directors. It is also said to have a separate legal entity.
These owners and the company are the two different entities and will be entering the contract
separately. In such a company there are two major types such as the private limited company and
public limited company that have the following advantages and disadvantages,
Advantages Disadvantages
This is also considered to be the factor that is
able to liability for the invested by them.
The set of the company is considered to be
complex (Wood, 2022).
With the help of certain ways the business are
able to get the corporate tax benefits.
High cost of formation due to high legal
requirements and paperwork.
It makes the owners separate from the entity. It requires maintenance of records and
registering of operations.
Legal formalities:
The limited company is considered to be required for the registering itself with the
company house and also getting certified as the incorporation of the compliance of the legal
requirements. It requires the draft to be registered of the HMRC and comply with the rules and
regulations. Filing tax return and paying of the corporate tax along with the duties is very
important responsibility of the company act (Silverman, 2021). The directors of the company are
the ones that require the confirmation of the statement from the house every year.
Management and funding of business organizations
Business organization Source of funds Management
Sole proprietary  This needs to have personal saving from The management of

the owner as fund
 Bank and financial institutions are great
options.
 Anger investors are the ones that provide
funds to this business.
this organization is
managed by the
owner itself.
Partnership  In this the capital is contributed by all the
individual partners (Samuel, 2021).
 The focus of this organization is on the
banks and financial intuitions.
 Reinvesting of the business profits is also
a very good option.
Partners and
management control
the business.
Limited Companies  The share equity, preferential share and
the retained earnings help the
organization generate the funds.
 The borrowed capital from the banks is a
very good option of this financial
institution.
Its managed by the
board of directors
and the management
itself.
CASE 1
Issue:
From this case study of Gordon and Orange computer LTD store there are contract of
employment that has been made in the salary of 10000 which is commission payment of 9% on
any computer sell. Along with this there is a year 2015 that is going to help cut throat
competition in the local market due to the organization that was running into the loss as there
was certain financial trouble it faced. Moreover, the manager is able to ask that the employee
forgive their salary of 2015, 2016 and 2017. Along with this the addition of Goran also accepted
the new variation of the contract as the main issue after 2016 company darted growing and now
Gordon can claim wages of 2015 and 2016.
Rule:

For this act there has been issues which were related to the payment of salary of the
forgone year of 2015, 2016 and 2017 and omission accepted. Even though in the year of 2016
there has bene rise in the economic growth and due to that the organ computer was able to earn
good profit. Hence, it resulted in the now capable of salary because of the term of contract was
poor condition of company. In the year 0216 situation of business had changed due to which the
terms of the contract need to be changed according to the employment an employee is liable to
get biased salary.
Applicability:
Certain rules have breach of contract is going to be applicable for the case as they are
owned orange computer which was terminated for the term of agreement of not paying the
money. In the payment of the applicability of the employment law the worker is liable for getting
basic salary such that it can meet its basic needs. Bret v JSt shows the breach of the employee
right as imposed to the contractual framework on at will not disturb the employers power to alter
main terms of the relations.
Conclusion:
The above IRAC report is able to concluded that there has been lack of hindrance of
Gordon right of employability and there has been breach of contract. Along with this it has also
seen that the Gordon has agreed with some of the new terms and condition which are only till the
organizations sufferings from loss (Yeoh, 2019). The term mentioned from the commission
payment was also given to the employee in addition to this Gordon filing complain in
employment terminal.
Case 2
Issue:
The issue in this case is regarding the liability to be paid for the period if they do not
receive any services. The issue is regarding Janet deciding to call virgin media to arrange the
purchase and its installation of the internet package (Ogunranti, 2021). When the invoice got
approved Virgin Media arrived Janet was charged for the whole package from the day the
internet was installed including the month phone line rental. This was the reason due to which
Janet got extremely depressed.
Rules:

The applicable law in this given case scenario is the contract law that provides that there
is no substantial performance from the services provided that are not liable for receiving the
payment for the given period. Despite this amount there has been mention of contract as per the
agreement in which the services receiver is not liable to pay the amount that has been agreed.
Application:
For this case which is related to Janet and Virgin media service provider there is going to
be the following application. Janet and this organization were in contract of installation of the
internet package and phone line. The complaint by Janet on Virgin Media and alter the 3 weeks
is about another engineer that came to fix telephone lines. In this Carlill v Carbolic Smoke Ball
Company invoice from the service provider was charged for whole package interacting with
connection and telephone lines (Nwafor, 2019). This is also involved with the inclusion of the
rent from the period of non-installation of telephone line. According to the contract the law
services provider cannot charge for the period it is not rendering any service.
Conclusion:
As per this contract law the consumer is said to be non-liable for paying any amount for
the period of no substantial performance by service provider. In such case Janet is not liable for
making payments of rent telephone line of 3 weeks as it was installed after the compliant.
Case 3
Issue:
In this company has breached the contract is not paying its creditors for application of
terminating the contract.
Rules:
This is the contract law which in partiers of the contract need to be complying with the
terms and conditions of the contract. Its noncompliance of any term of condition is said to matter
with contract and leads to the breach of contract.
Application:
In such application of the Black-horse Ltd towards entering into the contract with its
suppliers is to help render some services that would be paying for the use of some payments
method. The company has not been able to pay the creditors payment for the services provided
by them. Hyde v Wrench to such reasons the customers default payment of the creditors is only
application for the termination for the contract.

Conclusion:
In accordance to the contract law the company Black Horse Ltd is considered to be
breaching the terms and conditions of the contract. This is the company that pays the amount to
its creditors for 3 months. These services rendered by the creditors is able to appeal for the
termination of the contract by the creditor is correct as the company has breached the terms in
the contract.
CONCLUSION
With the help of the above project it has been concluded that the business law allows the
organization in the development of guidelines for conducting the business. It is said to be very
important for the organization to follow the rules and regulations in order to maintain smooth
flow of information. This report analyses that the role of government and common law is applied
in the justice as well as the legal system for being described regarding the development. In
addition to this the study has concluded on various case study and the legal solution has been
provided to them.

REFERENCES
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