Business Law Report: UK Legal System, Business Law and ADR Methods

This report provides a comprehensive overview of business law in the United Kingdom. It begins by examining the structure and effectiveness of the English legal system, including its various jurisdictions, sources of law (legislation, common law, and EU law), and law-making authority. The report then explores the impact of business legislation, such as company law, employment law, and contract law, on business operations. Furthermore, the report delves into alternative dispute resolution (ADR) methods, including arbitration, conciliation, mediation, and negotiation, offering practical solutions for resolving legal disputes. The report concludes by applying these concepts to a case scenario involving a licensing dispute, providing insights into the application of ADR in business contexts.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ONE......................................................................................................................................3
P1, P2 & P3: Nature of Legal System & Impact of Law on Business...................................3
TASK TWO.....................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERNCES...................................................................................................................................7
TASK THREE.................................................................................................................................8
P6: Legal Solution..................................................................................................................8
REFERNCES...................................................................................................................................9

INTRODUCTION
Business law is the body of law which deals with commercial and business matters. The
legal regulation of commercial enterprises and the legal regulation of business activities are two
distinct areas of business law. It's also referred to as business law or commercial law. There are
many different types of legal entities, varying from sole proprietorships to partnerships, profit-
making enterprises to non-profit organisations, all of which have been regulated by the law and
must not operate in opposition of it. Thus, the report delves into the essence of the legal system
in the United Kingdom as well as relevant business legislation. Whereas, the essay examines the
legal solution and support for resolving dispute.
TASK ONE
P1, P2 & P3: Nature of Legal System & Impact of Law on Business
Effectiveness of English Legal System
In the United Kingdom, there are three separate jurisdictions: one each for England, Wales,
Scotland, and Northern Ireland. The constitution of the United Kingdom is drawn from a range
of sources, some written which are known as statute laws and others are unwritten referred to as
conventions. The English legal system is structure in such a way that higher court judgements are
legally binding on the courts inferior to them. The judgements can be overruled if it is in public
interest as stated by Lord Chancellor. The Supreme Court is the country's highest court, and the
European Court of Justice's decisions have major sway, with binding effect on all the courts of
UK. In the legal system, the Court of Appeal is a lower court than the Supreme Court. The civil
and criminal divisions of the court are two divisions (Binder, 2021).
The rulings of both courts are enforceable on the courts beneath them. The Civil division is
subject to specific criteria and exceptions in connection to the binding effect rule, as stated in
Young v Bristol Aeroplane Co. Ltd [1944]. In the Criminal Division, if the court decides, as in R
v Greater Manchester Cororner ex p tal [1983], that the earlier decision was based on ignorance
of the law, the court is not obligated to adopt that decision. In addition, the Divisional Courts are
one of three divisions that make up the High Court Division, as appellate jurisdiction. These
legal institutions are bound by the Supreme Court and Court of Appeal's decisions under the
doctrine of stare decisis. With the exceptions indicated, the High Court ranks above divisional
courts and binds their decisions. Whereas, the Crown Courts deals with the offences which are of

serious nature i.e. indictable, those which are transferred or appealed, or where decision related
to sentencing transferred are from Magistrate Courts. The decisions of the Crown Court are
convincing rather than binding. Furthermore, because Magistrate and County Court judgements
are legal reasoning based solely on the facts of the case, they do not bind any other court. In the
case of R v R [1992], the court reversed a decision that recognised rape within marriage in order
to reform the English legal system, which is necessary to maintain people's faith and belief. In
the context of the legal system, many acts have undergone change. The National Crime Agency,
which was established in 2013, and the Ministry of Justice, which was established in 2007, have
aided the English legal system's recent legal reforms and growth. The Consumer Rights Act of
2015 aims to safeguard customers from the illegal actions of entrepreneurs.
Various Sources of Laws
In the United Kingdom, secondary sources includes journals, publications, and judicial sites,
whereas, primary sources includes legislation, common law, and European Union law (Harmer,
2020). The key sources are covered briefly below.
 Legislation: It refers to the acts of parliament, or the laws made by the parliament. Only
the UK parliament has the authority to pass laws pertaining to all four countries. The
United Kingdom's two houses of parliament are the House of Commons and the House of
Lords. And no one has the power to amend or repeal laws, nor has the right to resist
them.
 Common Law: The legal system in England and Wales is known as common law, as
previously indicated. Courts have the power to enact legislation based on how a statute is
interpreted. The court's role is to interpret the content or phrasing of a statute passed by
parliament (Kelly, 2018).
 European Union Law: Being member of European Union the EU law takes precedence
over domestic legislation. In other words, the decisions of the European Court of Justice
(ECJ) are binding on all UK courts. Decisions of the European Court of Justice, such as
the decision to grant detainees voting rights in order for their freedom.
Law making Authority
Legislation is, without a doubt, the most important source of law. The highest legal
controlling authority is Parliament. Parliament first proposes legislation in the form of a bill.
Members of Parliament (MPs) introduce the public bill, which has a broad impact on the public.

Non-government MPs, on the other hand, introduce private bills. The two houses of parliament
are the House of Commons and the House of Lords. The bill passes through several stages and is
voted by both houses before being forwarded to the House of Lords, where it receives Royal
Assent and becomes an act. Statutory Law refers to the rules and standards of law that are
created by statute, whereas Common Law refers to law that originates from court decisions
(Prado and Trebilcock, 2021).
Impact of Business Legislations on Business
The three management techniques used by businesses are as follows:
• Legislation: a body charged with enacting laws.
• Regulations: rules imposed by the government or a regulatory body. These are required
in order to enforce the law.
• Standards: These are government-established conventions or standards that are used to
evaluate the efficacy of regulations or practices.
The laws which influence the business operations are discussed below:-
• Company Law: Rights, relationships, firms, and other forms of businesses are all
governed under the Company Law Act 2006. The legislation sets the legal framework for
doing business. In Salomon v Salomon Co. Ltd., the notion of a separate legal entity was
proposed. The concept of 'lifting the veil,' in which a court peeps inside a company's
processes in order to provide legal protection. It clarified the roles of directors and
shareholders while also streamlining the company formation process. As a result, the law
assures that the company operates legally and meets the requirements (Sandefur, 2021).
• Employment Law: Employment law regulates the relationship between the employers
and employees. A number of new legislation regulating minimum wages, regular hours,
maternity leave, non-discrimination, and other topics have been established in the United
Kingdom. The Equality Act of 2010, the Employment Rights Act of 1996, and the Data
Protection Act of 1998 are among the most essential pieces of legislation. These have a
positive impact on local firms due to their limited administrative resources and external
factors.
• Contract Law: Contract law assists in the effective drafting of parties' agreement. The
law facilitates the formulation and enforcement of contracts, as well as the provision of

redress on occasion of infringement. Contract law ensures that the essential requirements
are in place and that the parties can do business effectively and efficiently.
TASK TWO
Activity Two which comprises of P4 & P5 is discussed in PPT
CONCLUSION
From the above it concluded two tasks in which first task examined the English Legal
System accompanied by the relevant reforms. The various sources of laws were discussed
briefly. Furthermore, the impact of company law, employment law and contract law on business
performance is also examined. Third task, which is in essay highlighted the range of method to
solve the legal disputes.

REFERNCES
Books and Journals
Binder, J.H., 2021. Resolving a Bank–Judicial Review with Regard to the exercise of Resolution
Powers. In Judicial Review in the European Banking Union. Edward Elgar Publishing.
Harmer, N., 2020. Territory, identity and the UK overseas territories. In A Research Agenda for
Territory and Territoriality. Edward Elgar Publishing.
Kelly, M., 2018, February. A federal UK? The pros and cons: Federalism: What is it, and does it
work?. In The Putney Debates 2018: Powers to the Peoples: Electoral Reform and a
Federal UK?.
Prado, M.M. and Trebilcock, M.J., 2021. Advanced introduction to law and development.
Edward Elgar Publishing.
Sandefur, R.L., 2021. Access to justice. In Research Handbook on Modern Legal Realism.
Edward Elgar Publishing.

TASK THREE
P6: Legal Solution
Alternative Dispute Resolution (ADR) describes an effective strategy to resolve disputes
without going through the court procedures. The approach helps to resolve the disputes outside
court in a cost effective manner. The process is confidential and less time consuming as
compared to other court proceedings.
The main types of ADR are, firstly the arbitration is process with an aim to settle disputes
between the parties in fair and equitable manner. The process involves less procedures and quite
useful in resolving disputes including international commercial disputes as occurred in the case
scenario. It is considered as legally binding and an enforceable alternative to the litigation
process. Second is the Conciliation, in which a neutral person helps to reach an impartial and fair
agreement. With the assistance of the neutral person the issues are isolated and corrective options
are discussed (Wevers, 2021). In Mediation, mediator amicably settles the disputes between the
parties. The process lays more emphasis on the responsibilities of parties in making decision.
Whereas, in Negotiation, is the straightforward process of the ADR method whereby the parties
with the assistance of legal advisors seeks to resolve disputes by ultimately reaching to an
agreement on non- prejudice basis. Further the statements made in order to settle cannot be later
submitted before court to use against another party.
As per the case scenario UNIVEG Katope wanted to import and distribute Pink Lady
apples in the UK market but was prevented to do so by an existing UK licence holder. As
according to the decision of the licensing agency which is flawed, the company must be given
full rights to fulfil the own nation’s customer demands. Even the UNIVEG Katope must be
granted with a license to distribute Pink Lady apples in its own territory. Such restrictions in the
rights is not appropriate and further the licence holder and the company must form a valid
contract in respect to distribution of Pink Lady apples in consideration of some amount
(Efimova, Sizemova and Chirkov, 2021).

REFERNCES
Books and Journals
Efimova, L., Sizemova, O. and Chirkov, A., 2021. Smart contracts: between freedom and strict
legal regulation. Information & Communications Technology Law. pp.1-21.
Wevers, H., 2021. A Basic Guide to International Business Law. Routledge.