Business Law: UK Legal System, Business Types and Disputes Report

This report provides a comprehensive overview of UK business law, beginning with an introduction to the legal system and the role of government in law-making, including the four sources of UK law: Act of Parliament, Common Law, European Convention on Human Rights, and European Union Law. It then delves into the application of statutory and common law within the justice court. The report elaborates on the impact of company law, contract law, and employment law on business organizations. Furthermore, it discusses the legal formation of different business types such as sole proprietorships, partnerships, limited liability companies (LLCs), and corporations, outlining their advantages and disadvantages. Finally, the report recommends legal solutions for resolving business disputes. The report is written by a student and is available on Desklib, a platform that provides AI-powered study tools and resources for students.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explain about the multiple sources of UK law...........................................................................1
Explain the role of government in law making process..............................................................2
How statutory law and common law is applied within the justice court....................................2
TASK 2............................................................................................................................................3
Elaborate company law, contract law and employment by stating that how it has a potential
impact on business organisation..................................................................................................3
TASK 3............................................................................................................................................4
How different types of business are legally settled.....................................................................4
List out the advantages and disadvantages on the basis of formation.........................................5
How all of these organisation are managed and funded.............................................................5
TASK 4............................................................................................................................................6
Recommand the legal solutions for solving the range of dispute with legal advices.................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
The law which govern the business and all of the commercial sector is known as business
law. In present time, the alternate name of business law is mercantile law. The most important
thing which is required to be considered in this law that every organisations must comply its
terms and condition for better result. The advices in this project will be given by the paralegal
department of Smith Solicitors where they will explore their knowledge on the topic of legal
system of UK and what is the main role of ruling government in law making process. The
paralegal department will also tell that how any of the organisation is required commenced and
what are its major advantages and disadvantages and the ending segment will tell that how any of
the disputes can be solved without involving the procedures of court.
TASK 1
Explain about the multiple sources of UK law.
It is very important for any of the organisation to know about the legislation system that
how they commence law and what are those area which they need to cover so that business
activities can be managed successfully. While opening new company how different sources of
law helps to achieve better results and outcomes. The boundary of UK cover big portion of area
and that makes work more difficult and because of that government has distribute its power to
different bodies which commence law. So, government have given its power to four different
bodies who commences the law in UK and they are:
Act of Parliament: The most successful body of UK for commencing the law is
Parliament as they commences any of the law as per the requirement of local public. The
responsibilities in this has been given to the member who represent the Parliament House. Some
of the law which has been passed by Parliament House is Company Act, 2006, Employment
Wages act and many more (The Legal System of the United Kingdom, 2017).
Common Law: It is also one of the source where laws are commences as the situation
which arises. This law is helpful because it cover the weaker area of all of the other source. The
main motive of this source is to give justice to every by taking the appropriate decision as per the
situation. The judicial system has the power to commence any of the common law.
European Convention on Human Rights: This is one of those source which discusses
about the rights which are necessary to be given to every single person living within the
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premisses of UK. It has been the most successful source which is working very effectively. Some
of the Act which has been commenced by ECHR are Equality Act, Health and Safety Act and
many more.
European Union Law: This is one of the source which is working within the premisses
of UK since very long period of time. The most of important thing which is required to be
considered is that it has been commenced near around half of the total acts which has been
commenced within the premisses of UK.
Explain the role of government in law making process.
It is necessary for any of the company to understand that only sources of law doesn't help
to run business organisation successfully but the thing which is required to be understand is that
how government shows their participation in commencing law because that has the direct link
with daily basis transaction of an organisation (Raz, 2017). There are altogether seven different
steps which they mainly consider while commencing law. It starts with the first reading and ends
with royal assent.
In first reading, the member are needed just to overview the requirement of bills and need
to check that whether bill should be handed to anther stage or not. The second stage is called
second reading where existing member checks that whether the points which are mentioned is
valid or not. Then, the member of committee stage is required to do detail discussion to find the
area in bill where changes are required. Report stage plays the crucial role as they need to
amended the bill so that it can be send for next stage i.e., third reading. The process of voting is
conduct in third reading where they check how many number of member are ready to pass the
bill and if majority is not obtained then again changes are required. Now, Bill is handed to House
of Lords where they see that how effective the proposed bill is and if they don't find it workable
then they again send it for some of the changes. Finally, Royal Assent comes into the bill from
where approval is needed to be taken for converting bill into Act or law.
How statutory law and common law is applied within the justice court.
It is never an easy task to declare any of the decision because it is directly related with the
future of any of the particular organisation or individual. Whenever justice court wants to declare
any of the result they needs the help of various sources of law as it makes work easy and faster.
If cases are of simple in nature and previously discussed in then it is said that justice court takes
the helps of those laws which has been commenced under statutory law. Where as justice court
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always faces the problem whenever any of the new case come across them. In any of this
situation justice court tries to search the similar cases which might have been discussed in any
other part of the world else they declare their decision of own by commencing new law this is
how common law is applied in justice court (Morley, 2016).
TASK 2
Elaborate company law, contract law and employment by stating that how it has a potential
impact on business organisation.
The present scenario of law says that there are various laws and regulation which is
required to be complied by any of the business organisation as it helps to work in very efficient
manner. This laws have various kinds of impact as sometimes it helps to achieve the target and
sometimes it do create unnecessary problem for the company. Below, there is the discussion
about various laws and regulation.
Contract law: This is the law which tells that how any of the company is required to
work. The main benefit of this law is that chances of competing the assigned and contract term is
high. The advantage of of contract law is that it tells that in which task is needed to be done and
who can be involved so accomplishing it. The positive impact of contract law is that it provides
the guidelines due to which chances of occurring errors automatically reduces.
Company law: This law applies on each and every registered organisation where various
regulations are required to be followed. Company law has lengthy and expensive procedure
which is needed to be followed and that has been always been the negative impact on
organisation (Cameron, 2017). The most significant benefit of company law is that it help to
manage every work in systematic manner and this is the reason that chances of error
automatically reduces.
Employment law: This law has been very crucial for employees and employer both. It
tells that what are the boundaries of any of the employees and how they need to perform within
the organisation. The best benefit of employment law is that it allows to get actual amount of
remuneration to employees and that helps to motive worker to perform better in future through
which organisational goals can be achieved easily.
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TASK 3
How different types of business are legally settled.
It is necessary for any of the person to have the knowledge about business organisation
and how they are legally formed because that helps whenever person requires to setup the
business organisation. Knowledge about this sector is helpful because it help to complete the
required criteria in easiest way. Some of the business organisation are:
Sole Proprietorship: This types of business is performed at smaller ground were there
are no such requirement of following various laws and regulation (Bayern, 2016). because it
government wants to promote this form of business organisation just to increase the revenue of
an nation. There is no legal process of incorporate this form of organisation as one registration is
needed to be done.
Partnership: This types of business firms are required to involve number of people
together to earn higher amount of profit. The main benefit of partnership firm is that number of
formalities are very rear and very easy to operate. Here, profit is required to be shared as per the
amount of investment. The legal process of incorporation any of the partner starts from the
registration of deed and after that it is important that should be prepared.
Limited Liability Company: It is the corporate structure where owners are not
personally held liable for any of the debt which arises on the organisation. LLCs have the
characteristics of corporation along with sole proprietorship or partnership. There is a legal
procedure that is needed to be followed by LLCs while incorporating any of the business. Firstly,
while incorporating LLC, it is necessary for its member to decide the name of organisation and
its proper address from where physical activities will be performed (Rohlin and Ross, 2016). In
addition, this types of organisation are required to prepare legal documents where they mention
about the work which they are going to do in future. Then after, all this documents are needed to
be submitted within the Companies House.
Corporation: This form of business organisation are established for the performing the
business activities are international market too for the purpose of earning more profit. This types
of organisation are mainly involved in the manufacturing sector. There are number of regulation
which is needed to be followed by corporation in order to achieve its target on specified time
period. The legal process to incorporate corporation starts with the selection of name and address
where is should be different from other organisation. Then the most important duty is to select
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the director and first shareholder who will manage day to day activities. Then after, the selected
director and shareholder needed to prepare Memorandum of Association and Article of
Association to conduct the business activities (Swanson and Frederick, 2016). Even it is
necessary that business organisation should obtain the certificate of SIC number which will tell
that in which sector organisation is involved and finally all of this documents are needed to be
deposit in Companies House.
List out the advantages and disadvantages on the basis of formation.
Whenever any of the investor incorporate business organisation they try to check the
main advantage and its disadvantages. Below there are some of the advantages and disadvantage
mentioned which are found in any of the organisation while incorporating the company.
Business Organisation Advantage Disadvantage
Sole Proprietorship There is no incorporating cost
which is needed to be paid.
This types of association don't
get the right to sue and be
sued.
Partnership Several tax benefits are given. Partners and Firm are same as
liability is not limited.
Limited Liability Company This types of organisation are
flexible when it comes to
paying tax.
There are several additional
cost which is needed to be
paid.
Corporation Unlimited number of people
can connect with company as a
shareholder (Tepe, 2016).
The lengthy process of
incorporating takes additional
time to incorporate the
company.
How all of these organisation are managed and funded.
The investors are the one who need to take care that how they are going to manage every
single work within the company and after that they are also required to find the way of funding
through which business activities can be managed.
Business Organisation Who will manage it? Way to raise capital
Sole Proprietorship This types of business organisation They can raise capital through
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is required to manage by investor
himself.
the way of personal investment
and credit credit is also one of
the available source.
Partnership The partners will take the
responsibilities to manage every
single work (Tushnet, 2017).
Personal assets of partner is
one of the source of raising
fund, banks loan, Credit Card
is also one of the way.
Limited Liability
Company
Manager and member takes the
responsibility in it.
Bank loan, credit card and
additional investment by
member are the main source of
funding.
Corporation Directors, Company Secretary,
Member are the one who manages
the daily affairs.
Issuing share,debenture, bond,
peer to peer lending are the
main source of funding within
corporations.
TASK 4
Recommand the legal solutions for solving the range of dispute with legal advices.
Legal Solution can be defined as the way through which solution are being given by any
of the expertise panel. The way of finding the legal solution is important because it consumes
the the time and money both. Some of the ways through which disputes can be resolved are
listed below:
Negotiation: It is the easiest process to resolve the dispute by the means of negotiating
the terms and condition of agreement. Here, parties try to solve their dispute of their own. It is
one the less expensive process to solve the dispute (Hansmann and Kraakman, 2017).
Mediation: this process of solving dispute is very suitable in modern era as suggestion
are being given in it. The parties need to decided that whether they want to follow the
suggestions or not to solve the dispute or not.
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Conciliation: Under this method of solving the dispute, conciliator tells the disputed
parties that how they can solve their dispute by meeting the maximum term and condition of
contract. It is helpful because it consumes time and money both.
Arbitration: This form of solving dispute is being adopted the most because disputes are
solved through legal methods as contract are being prepared in it. The number of arbitrators
should not be in even number (Allen, 2017).
Recommendation: It has been recommended to Mr Alex and Mr Ali that they must try
to solve their problem through the method of arbitration. In this method they will get the chance
to solve the problem which has been arising in front of them. Also, it will help them to never
arise same kind of issue again.
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CONCLUSION
The above file describes that law has its own important which tells that how any of the
organisation is required to take business decision. The legal system of UK takes the help of
various sources to commence law so that none of the section can be weak and that will directly
reflect on results. Investors are required to comply with each and every section while
commencing any of business organisation to operate it in successful manner. The motive behind
selecting the alternative ways to resolve the problem is very simple that disputed party wants to
solve the problem as soon as possible and that is possible only through alternative ways.
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REFERENCES
Books & Journals
Allen, W. T., 2017. Our schizophrenic conception of the business corporation. In Corporate
Governance. (pp. 79-99). Gower.
Bayern, S., 2016. The Implications of Modern Business–Entity Law for the Regulation of
Autonomous Systems. European Journal of Risk Regulation. 7(2). pp.297-309.
Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
Morley, J., 2016. The Common Law Corporation: The Power of the Trust in Anglo-American
Business History. Colum. L. Rev. 116. p.2145.
Raz, J., 2017. The rule of law and its virtue. In The Rule of Law and the Separation of Powers.
(pp. 77-94). Routledge.
Rohlin, S. M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from
new and existing business. Economic Inquiry. 54(1). pp.361-374.
Swanson, D. L. and Frederick, W. C., 2016. Denial and leadership in business ethics education.
Business ethics: New challenges for business schools and corporate leaders. pp.222-
240.
Tepe, M., 2016. In Public Servants We Trust?: A behavioural experiment on public service
motivation and trust among students of public administration, business sciences and
law. Public Management Review. 18(4). pp.508-538.
Tushnet, M., 2017. Comparative constitutional law. In The Oxford handbook of comparative law.
Online
The Legal System of the United Kingdom. 2017. [Online]. Available Through:
<https://www.cilex.org.uk/about_cilex/about-cilex-lawyers/what-cilex-lawyers-do/the-
uk-legal-system>
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