Business Law Report: Analysis of UK Business Law and its Application

This report provides a comprehensive overview of UK business law, exploring its sources, the role of the UK government in law formation, and the application of statutory and common law in justice courts. It evaluates the effectiveness of the legal system, considering recent reforms and developments. The report examines the impact of company law, employment law, and contract law on business organizations, using examples such as British American Tobacco. It also differentiates between legislation, regulation, and standards, and explores the legal formation, management, and funding of different types of business organizations. Furthermore, the report assesses the pros and cons of various business organizational structures and provides legal solutions for conflict resolution, comparing and evaluating different sources of legal advice and support.

BUSINESS LAW

Table of Contents
NTRODUCTION.............................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Detail information about the sources of UK law...................................................................3
P2 What is role of UK government at the time of forming law and even explain how statutory
law and common laws are being applied in Justice Court..........................................................4
M1 Provide an evaluation of the effectiveness of the legal system in terms of recent reforms
and development.........................................................................................................................6
P3 Explain with the help of example that what are the main impact of company law,
employment law and contract law on business organisation......................................................6
M2 Identification of difference between legislation, regulation and standards. ........................7
P4 Careful exploration of how different types of business organisations are legally formed.. . .7
P5 How above mentioned organisation are managed and funded..............................................9
M3 Detail assessment on pros and cons of the different business organisation on the basis of
their formation.............................................................................................................................9
P6 Providing the best form of legal solution in the condition where conflict arises between the
parties using the relevant examples...........................................................................................10
M4 Comparison and evaluation of the different sources of legal advice and support..............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

NTRODUCTION
The law which deals in the field of commence is called business law. It is one of the most
important law in everyone's life because it deals in that sector of law where requirement of law is
on regular basis. Business law is one of the vast term which covers different branch under it.
Even it deals with the creation of new venture and try to fix the issues which arises in front of the
organisation. The main motive of this file to give legal advice on behalf of Global Solicitor. The
advices will be given on the source of UK law and what is primary object of government at the
time of making law. Various examples will be included in different question which will help to
support the answers that how business law have the impact on business entity. Even their will be
detail information regarding the incorporation process of the company what are the essential
requirements of it with pros and cons. When it comes to end, legal advices will be based on case
studies as it is one of those matter which is very helpful to understand the topic in detail.
MAIN BODY
P1 Detail information about the sources of UK law.
This is not as easier work as it should be to commenced different different laws. For the
commencement of the laws the supreme authority is needed to consider all the aspects so that
future course of action within the economy stay in controlled and reduces the criminal activities.
The power must be delegated to all the higher bodies so that decision to commence law can be
taken in regard to render benefits to the general public. In context of UK, there are various root
age through which laws are commenced because UK cover four different nation which are
England, Wales, Northern Ireland and Scotland (Allen and Kraakman, 2016). So, it is needed
that help various law making bodies is taken to constitute new law and that bodies are:
 Legislation: this is considered to be the most higher authority in the UK economy. As
this considered the guidelines which is required to be follow by the general public as
these laws have been commenced in regard to serve the general people with certain
benefits. This is the core function that all the laws and legislation which have been
imposed of must be followed by everyone so that the decorum can be maintained.
 Statutes: here the generation of the new ways and ideas are done which are associated
with the commencement of the laws. In this the laws are enacted for the very first time

and than later on if any changes are required in this are made as per the requirement of
that particular region.
 Common law: these laws are formed by judging the situation so that the decision to
commenced the particular law can be taken as per the conditions. Here, common law
must not over rule legislation as they are termed to be the higher authority and no one
here has the right to change or alter the law which have been commenced under these
common law.
 European Union Law: It is anchor of UK when it comes for start out law as 52741 laws
has been present by them which covers near around more than 50 % of the total laws in
UK (EU law in United Kingdom, 2017). The authorization has been given since 1973.
European Union law has the specific area under which they are needed to commence law
and those area are finance, trade etc.
All these above mentioned are the sources of the UK economy under which the different
different law has been enacted. And this is also vital that all the laws and legislation which have
been formulated under this must be followed by each and every individual present within that
particular region.
P2 What is role of UK government at the time of forming law and even explain how statutory
law and common laws are being applied in Justice Court.
Commencing law in the economy is not the easier task as the power to commence the law
in the UK is in the hand of the higher authority. This can be said from this statement “Parliament
is Sovereign”. Government is required to see all the needs and expectation of the local public
that what exactly they are willing from the side of the government and what type of law should
be commend for their benefits. This procedure initiate by the member of the parliament as they
are the only chosen once by the public. Member of the parliament who have been selected is the
only who represents the public so that all the public requirement can be taken into consideration
and can be send further to the house of parliament just to check which of the point are valid and
which are not. Here is the extended procedure which necessity to be started once bill is drafted
(Backer, 2015).
 First Reading: This is the first and prior phase where the document is read and all the
formalities are done in a formal manner. Here in this is required to be read by each and
every other individual so that further can be transferred to the second reading.

 Second Reading: this stage is next to the first reading where all the individual are
engage in the debate regarding the bill which have been passed by the Parliament house.
It is vital that al the individual within the debate remain proactive so that they can easily
understand the beneficiary of the bill which have been passed.
 Committee Stage: Here in this process the bill is being examined so that each member
can easily understand the reason behind why the bill have been prosed and how important
it is to pass this bill(Beatty, Samuelson and Abril, 2018).
 Report Stage: this stage is required only when the necessity is felt to change or amend
the bill. This can also be performed when the point which have been mentioned does not
render a proper meaning. Member of parliament can alter these by checking all the
consequences.
 Third Reading: here in this phase the bill is finally made and the member of the
parliament final checks the bill and can give their review regarding the bill that has been
prepared is favourable to them or not. So that further proceedings can be carried out.
 House of Lords: this phase is considered to be as the upper body of the parliament.
Where decisions regarding the conversion of the bill into the law is taken. Here the
decision are considered on the point of each and every individual point of view so that
further decisions can be taken and can be transferred to the next step.
 Royal Ascent: The phase where autocracy want to settle the bill as new Act which will
implemented from the same day.
How statutory law and common laws are being applied in Justice Court.
In the proceeding of justice court this is said to be necessary that how all the decision are
to be taken and implemented as per the laws and legislations which have been imposed of by the
senior authority. Here in this,justice court does not foster the accountability to form the decision
on their part so this is necessary for them to take support from the statutory law so that the better
outcome can be received. It is core that all the laws must be written within the statutory law else
the support from the common law will be taken. Judges here have the capability to form the
decision of their own as they are the only one who pass the judgement.

M1 Provide an evaluation of the effectiveness of the legal system in terms of recent reforms and
development.
This is vital that all the laws which have been imposed of should be followed by each
and every individual on a continuous basis. This has been observe that all the laws and
legislation of the UK economy are better in regard to the level of outcome. The explanation
behind the powerfulness of lawful method is that it is sure which assist the individual in planning
about their strategies that are for the long lasting period of time. Along with this all the
information has been mentioned in a detailed manner in the law book so that every one can easy
examine and understand and can enhance their power of decision making (Buxbaum and Hopt,
2013).
P3 Explain with the help of example that what are the main impact of company law, employment
law and contract law on business organisation.
All these laws have been commenced for a certain purpose hand has both positive as
well as negative effect on the associations. It is vital for the business to understand on a prior
notice about which law has to been implemented and which not on the particular situation.
Because implementing any of the laws may cause business with a heavy burden and losses. In
regard to study this effect of the laws let illustrate an example about the company that is British
American Tobacco:
Company law: The law under which beginning, enrolment and liquefaction & winding
up of the association is performed is known as the company law. This law is the most vital that is
to be established by each and every business under their enterprise who come up with the idea to
deal in the trading. This also foster positive as well as negative impact on the association. In
regard to British American Tobacco, they are not suppose of performing their activity far
beyond their capabilities due to which they are not able to spread out their association. So taking
about the affirmative side of the law, it will enable the functioning of the business in such a
manner so that all the task performed within the company can be managed effectively.
Contract law: This is mainly concerned with the involvement of the agreement where
one party offers something to other and other agree to it where the term contact establish. This
document within the associations find out to be the most essential as this involves a detailed
information about the business activity and its working on a contract paper (Davidson, Forsythe
and Knowles, 2015) . The contact also foster both affirmative as well as pessimistic aspects. But

in comparison to the negative and positive effects there come numbers of benefits of this contract
law. In context of British American Tobacco, the contact law within the business foster an
affirmative effect as this renders the association with the benefits of maintaining the level of
stock so that further in future the cost can be reduce. In this the company is not suppose to break
the contract even if they want to as by the agreement they have entered into a valid contact which
sometime may be a negative impact for the company.
Employment law: Employment law is considered to be the law which have been
implement in relation to the employers and employees(Frank and Bix, 2017). this is the most
essential law which tells the associations about how the relation should be built with the
employees. This can have both affirmative and pessimistic effect on the association. In terms of
British American Tobacco, it is vital for the business to create a healthy working environment for
the worker so that they can perform effectively and can be proven beneficial for both.
M2 Identification of difference between legislation, regulation and standards.
Legislation: It is the formate from which laws are commenced for everyone. Here, body
of government required to form law as per the requirement and demand of the public.
Regulation: it is referred to the formate that how laws which have been commenced
should be followed and even it tells that what are the legal remedies that need to be fulfilled as
per the guidelines of law.
Standards: This is that form which shows that what is the special formate that need to be
followed by any particular industry during the manufacture process. It is very important that
standards should go below the level which have been set by the legislation. So, it can be said that
there is a difference between all of them but still there are interrelated with each other.
P4 Careful exploration of how different types of business organisations are legally formed.
There is a length process for any organisation which need to be followed by every
association at the time of formation. It is required every time that organisation are formed
through the legal process and if it is not found then various kinds of penalties are imposed on
illegal association (Hanrahan, Ramsay and Stapledon, 2013). The detail discussion on the legal
formation of organisation is mentioned below through which it can be understood that what are
things that must be kept in mind during the process of incorporation.
 Sole Proprietorship: It is the form of business organisation where requirement to run the
business is only of single person. As, it is required to be managed by single person so by

considering that thing in mind government have given lots of benefits to them under
which they don't have to incorporate their association legally because there is no
requirement of any legal documents.
 Partnership: The business organisation where more than one person are required to
work on the similar subject for the purpose of earning profit is called partnership
(Heminway, 2013). It is that form of business where persons do not have to face problem
which are required to be faced by other organisation. As, authority to incorporate
partnership is given just to provide flexibility so there is no requirement of length process
at the time of incorporation. The process that need to be followed by partnership firm
during legal formation are:
◦ firstly, partnership firm should draft the partnership deed to Companies House.
◦ After that they must register themselves under Partnership Act just for the purpose of
keeping records.
 Joint Venture: It is the business concept where two or more than two companies try to
share there resources with each other just for the purpose of gaining extra amount profit
in future. It is separate from the owner and formed for the special purpose. There is a
required that ventures should be required legal. Once it is registered, then only business
activities can be performed. To form any joint venture first it must prepare Memorandum
of article with the detail information of organisation which have came together for the
project. After that, it is necessary for joint venture to be registered under Companies Act,
2006.
 Corporation: The popular form of business organisation is known as corporation where
investors are required in maximum number. The reason behind the requirement of more
number of investor because it can be managed by small as there is more workload
compared to other form of business organisation (Johnson, 2013). It has one of the
lengthy incorporated process when comparison is done where it takes excessive time
period. Firstly, name of the company is required with its proper address. Then, there is a
requirement of preparing Memorandum of Association and Article of Association as they
are of one of those documents which helps to manage business activity.

P5 How above mentioned organisation are managed and funded.
Sole Proprietorship: Sole proprietorship is the business which is wholly managed and
controlled by an individuals in this type of organisation the arrangement of funds are done by
themselves only as they do not involved any other investor in their business. Further in future if
they seeks to have more finance within their business than they can also come up within their
personal assets to the business.
Partnership: Partnership is the term which itself denotes that there is a involvement of
the or more parties who come together to operate and manage the business activities. In this the
accountability to control and manage business function is only to the person who has the
authorisation and capability to do so. For funds this type of business depends upon the various
financial institution such as banks, loans etc.
Joint Venture: This type of organisation is formed when two or more firm mutually
come and take the decision to operate their business jointly so that firm profit margin and be
increased and can be managed properly only with both the accountable parties. For funds these
also depends upon the financial institutions like banks and government agencies from where they
can raise loans etc.
Corporation: In order to manage the business activity within the corporation a
corporation team is essential as they keeps checks on the activities which are performed within
the business. the members involved in managing such business activities are directors, managers,
shareholders etc. There are finite number of procedure through which these corporation raises
funds such as through the issuing of shares, debentures, bonds, loan from banks etc.
M3 Detail assessment on pros and cons of the different business organisation on the basis of their
formation.
Types of Business
Organisation
Advantage of the
Organisation
Disadvantage of the
Organisation
Sole Proprietorship Daily basis activities can be
managed very smoothly
(Kapottos and Youngner,
2015).
Legal rights are not given
which included capacity to sue
and be sued.
Partnership Firm New ideas can be easily Even, Partnership Firm also do

developed for earning more
profit.
not get the right to sue and be
sued on the name of
partnership firm.
Joint Venture Task can be performed very
easily as more number of
resources will be available.
Probability is high to occur
conflict as more number of
organisation and more number
of ideas.
Corporation Legal rights are given which
will include capacity to sue
and be sued.
Unnecessary cost is incurred
before the formation of
organisation.
P6 Providing the best form of legal solution in the condition where conflict arises between the
parties using the relevant examples.
Case 1: James is an individual working within the banana technology Ltd. A contract has
been signed with each of the employees in which the association is required to pay £12000
annually but due to some critical issue the business was not able to full fill their words of paying
James annual salary but during this point of time the James also did not pay much attention as
the company condition was known to him. But after a duration of time when the company has
overcome all their debt and was successfully operating the business James himself decided to ask
the company to repay him the amount of the annual salary which was not paid to him due to the
unstable financial condition of the business (Kraakman and Hansmann, 2017). here in after this
the company now has Refused to James to pay him the amount of salary which is accountable of
for this reason the James here has decided to file a case on the company for the breach of the
contract.
Contract: The piece of paper where detail information about the particular work is
mentioned in which approval of government is taken is known as contract law. The parties which
are try to create legal relation must know that contract should have offer and acceptance because
without that there is no existence of contact and it might fall under the category of undue
influence. Here, it is important that every terms must be read very carefully because it is not
allowed to terminate the contract in between and if it happens then it will fall under the class of
breach of contract.

Breach of Contract: The condition or situation under which term and condition of the
contract are not accomplished. It is necessary that under breach of contract the defaulter party
must give the proper justification for termination of contract else heavy charges are imposed by
the different level of court. If it is proved that any of the involved party has breached the contract
then they must compensate innocent party (Lyons, 2013) . Here, innocent party has the option to
sue defaulter. In the above case, it is found that there is breach of contract from Banana
Technology Ltd but it is important to understand James that it is never gonna be easy for anyone
to operate the case from the procedure of court as there is the lengthy process. So, it is necessary
for them to adopt of the modern way through which their case be solved with the help of legal
advices.
Alternative Dispute Resolution (ADR)
Alternative Dispute Resolution is also coined as the method for the resolution of the
disputes related to the civil nature of the crime. The main aim of these alternative disputes
resolution is to render solution to the specific cases only after considering and understanding the
cases in a complete manner. Different method to resolve disputes under ADR are as mentioned
beneath:
 Conciliation: This term is mainly concerned with the rendering of the advices as per the
requirement of the situation. In this both the parties are required to listen to the advice
which have been given by the conciliator so that further they may decide whether the
advices of the conciliator is beneficial to them or not so that they can adopt the advice to
resolve the disputes.
 Mediation: This involve mediators where a mediator comes and solve the disputes which
have been caused among both the parties by listening the consequences of both the
parties. After listening to the problem of both the parties a mediator tries to come up with
the mutual solution so that disputes can be resolved (Shackelford, 2014).
 Arbitration: Arbitration is the only technique among the alternative dispute resolution
where all the cases which are critical and complicated are resolved. Here a arbitrator is
only appointed when both the parties agrees on the term to solve their disputes with the
help of arbitrator as once the decision is declared by the arbitrator then no governing
body can interfere in it.

In the above case James and Banana Technology Ltd. Should try to adopt mediation
method of the ADR to resolve these disputes as this method is simple and does not involve much
longer procedure and documentation to resolve the issues. This process does not involve any
procedure of court or higher authority in this both the party are needed to sign the contract and
term and condition so that mediator can come up with the decision which give both the parties a
win win situation.
M4 Comparison and evaluation of the different sources of legal advice and support.
In regard to resolve the disputes and conflicts there are numbers of advices such as legal
advices .In all the preceding question the discussion which have been made was about alternative
disputes resolution, where it has been considered that this is the most less time consuming
methods to resolve all the conflicts and disputes. In the case of alternative disputes resolutions a
solutions for the problem is given only when it is required or felt necessary for the specific case
(Vagts and et. al., 2015). Herein, this it is not vital that all the time this method of disputes
resolution is always beneficial sometime it may be not as this only considered the cases
associated with the Civil Wrong.

CONCLUSION
Hence, it can be concluded from the above given statement and facts that business law
had already set the level of standards which is beneficial for business organisation. The law of
UK consist four sources through which Acts are commenced. There is a fixed pattern which is
given by companies act to form any organisation but it is also important that if law are changed
then it new process should be adopted to incorporate the company. The process of ADR is
crucial at present scenario to solve the dispute because it is not possible to entertain every case
from different level of court.

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