Business Law Report: Legal Frameworks for UK Business Organizations

This report provides a comprehensive overview of UK business law, covering various aspects such as the sources of law (legislation, customary law, EU law, and the European Convention on Human Rights), the process of creating law, and the roles of statutory and common law in courtrooms. It delves into company law, employment law, and contract law, explaining each in brief. Furthermore, the report analyzes the legal formation and management of different organizational structures, including sole proprietorships, partnerships, and limited liability partnerships (LLPs), detailing their characteristics and funding mechanisms. The report concludes with recommended suggestions towards case laws. The document is a valuable resource for students studying business law, providing insights into the legal frameworks governing businesses in the UK.

Business Law

Table of Contents
INTRODUCTION................................................................................................................................3
Task-1...................................................................................................................................................3
P-1. Define several sources of law...................................................................................................3
P-2. Properly explain procedure of creating law and define purpose of statutory and common law
in court rooms..................................................................................................................................4
TASK-2.................................................................................................................................................4
P-3. Explain company, employment and contract law in brief........................................................4
Task-3...................................................................................................................................................5
P-4. Legal formation of different organisations. .............................................................................5
P-5. Explain managing and funding of different organisations.......................................................6
Task-4...................................................................................................................................................7
P-6 Recommended suggestions towards case laws mentioned below.............................................7
CONCLUSION ...................................................................................................................................9
REFERENCES ..................................................................................................................................10

INTRODUCTION
The UK is a multi-governmental state and its laws provide citizens with multiple rights,
rules and remedies. Its very diverse nature makes it exciting to change the country's laws or create
new ones. Business law is also the most important area, especially for business organizations. They
provide guidelines on how to carry out various company tasks and how to comply with all legal
processes. Each year, the Royal Queen delivers a heart warming speech at the government-set
program for the current evaluation year. Known as the "Speech from the Throne," this speech also
has guidelines and can help other legal agencies get an idea of how to follow the correct process. It
consists of several sections. In addition to this, there are various sources, methods and techniques
that business organizations use in different situations.(McClean, D., 2019,)
Task-1
P-1. Define several sources of law
The English law is fragmented geographically, it is governed by four well-categorized sources of
law, each covering a different aspect of the law.
Legislation: The driving force behind the creation, repetition, and repeal of laws. Ultimately, this
means multiple authorities and multiple functions working together with legal departments and
work processes. It is one of the country's highest authorities and works with all legal departments in
the country. Legislation is divided into her two parts, the Act and the Act of Delegation. Along with
the European Union, it is the highest legislative body. The updated law includes legal entities with
the power to legislate through Congress.(Wincott, D., 2018)
Customary Law: This division is also a very important aspect of law, and the principles laid down
in ancient jurisprudence are governed by statutes. It should create a great prospect for Congress.
Historically, this common law predates the development of known legal systems. In royal power,
the king was part of the highest hierarchy, and the laws he passed became law, followed by the
entire empire over which they ruled. Common law is very popular and best followed. Law one. All
laws are different in that they are different. Very unusual laws and opinions can become law in
Congress.
European Union: This Union was created for the benefit of its citizens and took shape after the
Second World War. People began to civilize again, but this union was created so as not to interfere
with each other. Composed of 28 countries, all of these countries have dominant markets around
the world. The union also offers an advantage in market dominance as most developed countries
participate and offer worldwide advantages. We also need to end war and promote peace.

European Convention on Human Rights: The sole purpose of this Convention is to spread and
promote peace among all nations. The basic need of this treaty is to create better living conditions
for all, to produce and to develop developed countries. Unions have a particular interest in the
proper implementation of human rights laws and norms in business organizations and various
sectors. Human rights are very diplomatic and bring many new changes along with changes in area.
P-2. Properly explain procedure of creating law and define purpose of statutory and common law in
court rooms.
Statutory law: This law of the United Kingdom is produced in written format by the legislation.
The judges use all these laws for making judgements, they are even helpful in the operating of the
justice court and the wording are brought in usage for a smooth case. This is made able in the
easiest form and way that it is easy to understand and no reference can be found by the profitable
result.(Steinberg, D.L., 2019.)
Court Application Process: This process can be illustrated in the old case of 1836 R v. Harris. In
this case, the defendant bit the victim's nose, and although the law states that he "stabs, cuts, or
injures" another person, the crime is not biting. On this basis, the defendants were released and not
charged. This example illustrates the literal meaning of the particular Law, and the words used in
this Law are to be used literally and cannot be turned or altered to achieve the set result.
Common law: In the easiest words, it can be refereed as courtroom decisions for special
decisions or cases that can only be enforced in cases. it originated in the early medieval period in
the courts of kings, where the king's choices were made into law, taking this idea sometimes certain
unusual jurisdictions due to the benches The Supreme Court makes legislation that is acceptable and
enforceable in Acts of Congress.
Court Enforcement: The enforcement of this law in courtrooms is fairly common and easy to
identify. Similar cases that have arisen before are adjudicated in this case law and it is expected that
in favour of the present case. (Craik, N., 2020.)If a case has the same facts or the same issue or
dispute between two parties, there will be a series of comparable case precedents that one can refer
to and gain an advantage in one's case law by achieve the desired results as the judgments.
TASK-2
P-3. Explain company, employment and contract law in brief.
Company Law: this act was established in 2006 under the name “Company Law” to collect
all the facts and figures of the company organization and later formulate them properly in the legal
system so that they are legally bound by this law. There many various factors in the United
Kingdom corporate law that rule the business. All these aspects of legislation focus on the area of
the business including formation of the company, shareholder rights, taxation and many others. This

law covers almost all areas of activity recorded in a business organization and defines methods and
remedies in the event of disputes later during work. It provides a comprehensive body of law for
the UK and changes practically all practices in business-related law. (Wellings, B., 2021)The
company law is also can be said as the corporate law which is a body of law that has many aspects
under the guideline for the same, all these have creation, maintenance and few more. Corporate
regulation encompasses the legal guidelines that relate to the formation, registration, qualification,
operation, and control of corporations. Corporate regulation commonly offers with problems
consisting of incorporation, shareholding, control, directors, and officers.
Labour Law: The employee-employer relationship regulates the mutual expectations of both
parties. In this contractual legal form, every member or employee is bound by a system of basic
terms and conditions while on the job, which must be bindingly followed by all and who
circumvents them. Any attempt or finding a loophole will result in a fine. and penalties. It protects
the company and its employees from unfair treatment on any grounds. Labour law of the United
Kingdom's primary worries are to make certainty that each operating man or woman has a minimal
constitution of rights of their workplace, and voice at paintings to get honest requirements past the
minimal. It distinguishes self-hired people, who are loose to contract for any phrases they wish, and
employees, whose employers are accountable for complying with labour laws. Courts and statutes
also, provide extra or fewer rights to one of a kind businesses including worker, people who have
job , apprentice or a person with an employment relation.(Hardman, J., 2022. )
Contract Law: A relationship between parties that constitutes a legally binding structure in which
both parties have voluntarily agreed to certain terms. They are subject to legal personality and
obligations consisting of powers of sale of goods, regulation between goods and services, and
exchange between the parties. d Tariffs will also be charged. It controls and regulates the
interpretation of both parties and also regulates the relationship and validity of contracts. It consists
of the general commerce of commodities, consisting of the sale of goods, the regulation between
goods and services, and the commanding role of interaction. A contract comes into existence when
it is made – that is, when there has been acceptance of an offer, and consideration (payment) has
passed from one party to the other. In the case of a conditional contract, the contract becomes
enforceable when the condition is met (or when otherwise agreed).The acceptance of an offer can
be made by words or by conduct. Acceptance occurs when the offeree’s words or conduct
objectively infer that the offeree agrees to the offeror’s terms.

Task-3
P-4. Legal formation of different organisations.
Sole proprietorship: Sole proprietorship operated by a single person who fully assumes all
responsibilities and duties. There is no distinction between owners and organizations in this
business organization. Here you can hire people who will share responsibilities but not share the
organization with others. Setting up a sole proprietorship is not easy and does not require
legalization. In general, you don't even need to register legally. If you wish, you can set up your
company by registering it with your local registry office. (Anderson, P., 2022.)
Partnership: In this type of organisation,task and authorities are shared with others. It is a
contractual form of organizational agreement and is formulated after a legal agreement between
two people. This contract contains the obligations, responsibilities and winning allocations shared
by both parties. In this form of business, two people agree on certain terms to profit financially. A
partnership company must follow the steps outlined below in order to legally form a partnership.
 There must be a legal verification and should be a contract formation among the parties.
 The organisation should be registered., to get an specific identity in the society. The name in
which it is register is original and not a duplicate.
 The business start up with keeping up the share holders.
Limited Liability Partnership: Like any joint venture, it is formed on the basis of a contractual
agreement containing the proportions and terms pre-established in this legal document. The biggest
difference in this organization is that partners are not responsible for the company's debts and
creditors. Here, the company is essentially an independent legal entity and members are not
required to be held liable for the company's debts. Very self-sufficient in nature and does not affect
the owner when settling. The law does not provide for the governance structure of LLP. There are
no legal provisions regarding shareholder meetings, directors, company secretaries, allocation of
shares, etc. As with common law partnerships, these are matters of LLP agreements. (Cowan, S.,
2018.)Although there is no legal requirement to register (or have) a written LLP agreement, such
agreements are essential in practice. It is governed by the Partnership Regulation. When
Incorporation Services registers an LLP, an LLP contract is provided as part of standard services.
Company Law Solutions can create a bespoke his LLP contract. The legal process for forming an
LLP is as follows:
 should be register under the company house, it is mandatory to register to be able to avail all
the legal liabilities that an organisation can achieve.
 The name of directors are mentioned along with the number of people to be hired at the
position of the Secretary.
 Some shares percent are sold among the public

 Employees are hired and the policies are made for business start up
 Start the business, with decided percentage of duties and responsibility.
P-5. Explain managing and funding of different organisations.
Basis of: Sole proprietorship Partnership LLP
Management It is a company that can
be managed smoothly
without any trouble. It is
managed and processed
exclusively by one
person. The particular
person must complete all
task and authorities of
the company and all
decisions made in this
business must be made
by that one person only
so that there is no trouble
in decision making for
the organisation.
Running this company
requires a lot of time
and paperwork. All the
duties and work
pressures are shared
among two people, and
not just the single
person. In this the there
are responsibilities
headache of every
employee in the same
ratio.
The nature of this
company is that it is a
completely separate
legal entity. This
particularly helps in
explaining the nature of
the company and the
condition of the
company. If in case the
company is getting
close the staff working
in the company are not
bound to pay for the
amount by independent
values.
Funding  Loans for
personal use
 bank loans
 personal savings
 Personal loans
 investment by
all partners.
 Shares and
debentures of
company.
 Loan from bank
 selling shares
on stock
exchange.
Task-4
P-6 Recommended suggestions towards case laws mentioned below.
Court system is the most traditional form of solving the dispute between the parties. Apart
from this, the UK government have initiated the alternate dispute resolution under the Civil
Procedure Rules, 1986 so that the parties can get speedy disposal of case.(Milman, D., 2019. )
These solutions are time and cost effective and the parties can have out of court solution. Different
alternative dispute resolutions for the case scenarios are discussed below-
Case 1
Scenario:Gordon is a salesman for the Orange Computers Ltd and his employment contract
stipulates a salary of £10,000 a year with a sales commission of 9%, making him an average of
£11,000 a year for the past three years. In 2015, business took a hit thanks to competition, and Fred
asked Gordon if he would forego his salary for 2015-2017 and only accept commissions. Gordon
accepted a contract change. In 2016, the economy started to expand and the company started to turn
a profit. Gordon wanted to claim wages from 2015 to 2017.

Legal notice:In this case, the legal question is whether Gordon is entitled to her 2015, 2016 and
2017 wages.
Legal solution:In certain scenarios, the recommended response is negotiation. This is the
appointment of an independent third party as a negotiator to attempt to reach an amicable
settlement between the parties. The main goal of this solution is to create a win-win solution.
Negotiator's choice is not binding until a contract is signed between the parties(Dnes, N., 2022)
Legal reasons:This solution was suggested to Gordon because negotiations include a quick solution
that allows the parties to resolve their issues quickly. And because negotiations promote a win-win
situation, Gordon, and thus the company, can reach an amicable solution. Validity of legal
settlement
Effectiveness of legal Solution: With the help of the negotiations, Gordon and the company are
able to negotiate wages for the past few years. This allows us to return to a solution that works for
both parties. This case concerns the modification of an employment contract concluded with the
consent of both parties, and negotiations will contribute to an amicable settlement.
Case 2
scenario: Janet decided to call Virgin Media about installing and purchasing her package on the
Internet. This package will cost you £35 per month including a phone line with a rental fee of £11
per month. The technician came the next day and installed the internet but couldn't find the phone
line and she suggested I come back after speaking with the supervisor. Janet, whose engineers were
waiting, didn't come, so she complained about the company's technology. Three weeks later, the
phone was installed and Janet received a bill for the complete package, including her month's worth
of phone lines.
Legal notice: The major question in this case is that will Janet have to pay the full monthly phone
rental fee even though it was installed later the period of three weeks.
Legal solution: In this case, the recommended solution is mediation. This includes the appointment
of an independent and impartial mediator to mediate between the parties. His decisions are not
binding on the parties, but help resolve disputes quickly.(Glazer, A.H., 2021.)
Effectiveness of Legal reasons: This solution is recommended as it helps protect the goodwill of
the company as the issue is resolved internally. Janet will get back to you as soon as possible. Since
Virgin Media has failed to provide Janet with adequate service, the purpose of the arbitration is to
help them understand each other's claims, and the matter is also kept confidential. Validity of legal
settlement Virgin Media has no right to charge Janet for the months she didn't use the phone
because she violated her service contract. Mediation helps resolve disputes internally and also helps
protect a company's reputation. In this case, it was a contract and Virgin Media breached the
contract by failing to perform its contractual obligations.

Case 3
Scenario: Black Horse Ltd is a security company with 50 employees. There are four major clients
of his who have failed to repay their money with bad debts of around £100,000. The company has
been unable to repay its creditors, who have filed for liquidation, and the court must now decide
whether to issue a liquidation order.
Legal notice: The question is whether this will be the last opportunity for creditors to file a
liquidation petition for Black Horse. And is liquidation the last solution available to creditors?
Legal solution: The recommended solution in this case is arbitration. It includes the appointment of
an independent arbitrator who, after hearing the facts and evidence of record, will issue a ruling that
is binding on the parties. The main advantage of this is that the parties can choose the arbitrator, the
time and place of the arbitration. You may also choose to arbitrate. This includes appointing an
independent arbitrator, called a settlement, who examines the facts and evidence and makes a
decision. Once the parties sign the settlement agreement, it becomes binding. The parties have the
flexibility to change the settlement agreement at will. And once signed, it is binding. (Yilmaztekin,
H.K., 2019.)
Effectiveness of Legal reasons: This resolution is recommended to allow parties to resolve
disputes out of court. Since arbitration has the same validity and binding power as a court, this
solution can help parties resolve their cases quickly, and a binding arbitration award can also be
obtained for the parties. Validity of legal settlement Arbitration helps to prove to creditors that the
company is not responsible for non-payment because their large amount of money has suddenly
turned into bad debt. Arbitration therefore helps bring about binding decisions between the parties.
CONCLUSION
This report is a concise compilation of key insights in business law and its various areas. It consists
of a complete description of correct functionality and some remedies in case of disputes. The case
law presented here provides coherent and condensed solutions to a variety of problems that arise in
business organisations. It also shows the importance of having strong business laws and regulations
in place, such as those provided by the government of United Kingdom, to give a strong foundation
for working in the country. The legal system of the UK can be challenged in any court. Business
organisation can take many forms, including sole proprietorships, partnerships, corporations and
public companies. Each and every business is managed and funded according to its structure.

REFERENCES
Books and Journals
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politics of Brexit (pp. 15-26). Routledge.
Steinberg, D.L., 2019. Legislation—United Kingdom. In Encyclopedia of Reproductive
Technologies (pp. 298-302). Routledge.
Craik, N., 2020. The duty to cooperate in the customary law of environmental impact
assessment. International & Comparative Law Quarterly, 69(1), pp.239-259.
Wellings, B., 2021. Brexit, nationalism and disintegration in the European Union and the United
Kingdom. Journal of Contemporary European Studies, 29(3), pp.322-334.
Hardman, J., 2022. United Kingdom historical viewpoint. In Research Handbook on Shareholder
Inspection Rights: A Comparative Perspective. Edward Elgar.
Anderson, P., 2022. Plurinationalism, Devolution and Intergovernmental Relations in the United
Kingdom. In Intergovernmental Relations in Divided Societies (pp. 91-112). Palgrave
Macmillan, Cham.
Cowan, S., 2018. All change or business as usual? Reforming the law of rape in
Scotland. Reforming the Law of Rape in Scotland (May 28, 2018). Rethinking Rape Law:
International and Comparative Perspectives Edited by Clare McGlynn and Vanessa Munro
(Routledge 2010).
Milman, D., 2019. UK restructuring law: recent developments considered. Sweet and Maxwell's
Company Law Newsletter, (418), pp.1-5.
Dnes, A.W. and Garoupa, N., 2022. Efficient Breach and Ex-post Disgorgement of the Defendant’s
Gain: A Comparative Contract Law and Economics Perspective. European Review of
Contract Law, 18(1), pp.32-62.
Yilmaztekin, H.K., 2019. A Brief Overview of the Remedies Available to a Minority Shareholder
under the UK Law. Ticaret ve Fikri Mülkiyet Hukuku Dergisi, 5(1), pp.131-142.
Glazer, A.H., 2021. Building a purposive approach to UK labour law (Doctoral dissertation,
University of Glasgow).