Business Law Report: Sources of UK Law and Business Structures

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Business Law
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Table of Contents
Introduction......................................................................................................................................3
Task 1-(LO1 & LO2).......................................................................................................................4
Discuss the meaning of this statement and discuss the various sources of UK Laws (P1).........4
Explain the role of government in the law making process and how statutory and common law
are applied in the justice courts (P2)............................................................................................6
Recent reforms and developments in the legal system (M1).......................................................8
Use specific examples to illustrate how company, employment and contract law has a potential
impact upon business (P3)...........................................................................................................9
Impacts of regulations, legislation, and standards (M2)..............................................................9
Evaluation of the legal system and law, with evidence drawn from a range of different relevant
examples to support judgments (D1)...........................................................................................9
Task 2- (LO3)................................................................................................................................10
Exploring the nature and formation of different types of business, critically evaluate the
differences between unincorporated and incorporated (P4)......................................................10
Nature and formation of different types of business in United Kingdom..................................10
Incorporated and unincorporated businesses.............................................................................10
How business organizations are managed and funded (P5).......................................................12
Management and funding of incorporated and unincorporated business..................................12
The advantages and disadvantages of the formation of different types of business organizations
(M3)...........................................................................................................................................13
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Critically review and evaluation of the types of business organizations (D2)...........................15
Section 2- Legal solutions to business problems- (LO4)...............................................................16
Recommend an appropriate legal solution to resolving the disputes using case laws or statutes
to support your recommendation (P6).......................................................................................16
Compare and contrast different sources of legal advice and support for dispute resolution (M4)
....................................................................................................................................................16
Evaluate the effectiveness of legal solutions, legal advice, and support for dispute resolution
(D3)............................................................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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Introduction
Business law is the law that supports in guiding and governing the business and commerce rules
and regulations. Such laws play a significant role in determining and carrying out the commerce
activities in a fair and reasonable manner by complying with all the applicable provisions on the
business. Business laws assist in abiding with the laws of the businesses that are engaged in
business activities. This report consists the brief description on nature of the British lawful
system along with the basis of the laws of the United Kingdom. Further, it also highlights the
function of the UK administration in the procedure of creation and passing the bill. Next task
highlights the impact of laws on the business and its working. Moreover, in this report, it
highlights the several organisational types that are formed lawfully by assessing legal advice and
solutions and its effectiveness for resolving the business differences.
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Task 1-(LO1 & LO2)
Discuss the meaning of this statement and discuss the various sources of UK Laws (P1).
In the lawful English system of the United Kingdom, Parliament is referred to as sovereign
because in this legal system Parliament has the superlative power and right for creation or end up
of any law. Generally, the laws that are formulated by the Parliament are not take precedence by
the courts and Parliament has the authority to implement such laws which restrict the Parliament
of future for not changing the laws (Dams, 2016). In the constitution of the United Kingdom, the
sovereignty of Parliament is a mainly significant part. In the United Kingdom, there four main
sources of laws which includes human rights law, EU law, common law and legislation which
acting as a significant responsibility in the enactment of any law in the country. These sources’
are mentioned below:
In the United Kingdom, Parliament is the main and top most authority and the always
enactment by the Parliament is applicable in the whole country.
 EU law is the laws which are enacted for the purpose to ensure that the trade practices
get easier so that there is an easement in the movement of goods in relation to the policies
of trade (McDougal, 2018). The United Kingdom is also a associate of the European
Union and is abide by the regulation that are formulated by the European Union to
follow.
 Legislation is the laws that are passed by the Parliament which is considered as an
important piece of Parliament Act and has the only power that applicable in all the four
countries and this body consist both House named House of Commons and Lords. In the
Commons House, total of 650 members that are elected through a voting system. On the
other hand, Lords House consist, 800 members, of which 600 appointed by Queen.
 Case Law is also known as Common Law which is a significant part of the procedure of
making the law. As per the interpretation of the statutes, it explains the ways through
which court can create the law and the statutes that are formulated by the Parliament
covered the wide area of different circumstances. As per the Parliament will, the court
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tries to interpret ate the statute. Such common law is depending on the principle of Stare
Decisis where the subordinate bench are obliged with the pronouncement passed by the
upper courts.
 Treaties are the agreements that are signed between two different countries for trade
practices and such practices as per the international law (Horn, 2015). Europe Union is
based on the two treaties named Treaty on European Union (TEU) and the Treaty on the
European Union Functioning (TFEU).
 Courts are per the important to clarifying the various lawful capacities in according ace
to the different levels of courts as per the given court structure. Courts are the significant
sources in the laws of the United Kingdom that assist in inspecting the working lower
courts.
Difference between Civil and Criminal Law
In the United Kingdom, Criminal law depicts the boundaries that need to be followed by each
and every citizen and the majority of the laws of criminal are codified by the Parliament, for
instance, the Theft Act. In case, of any violate of the criminal rule is termed as wooing for the
whole society and community. The person is liable for breach of the wrongful act is liable for the
penalty and imprisonment. On the other hand, Civil law is the law that assists in protecting
individual rights and duties. For instance, as per the provision of the employment law under the
civil, it is important that the employers are abiding with the provision of employment otherwise
they need to penal provisions.
Court Structure
In the United Kingdom, the structure of the court is dividing into various stages where the
County courts are inferior courts responsible for handle the cases of civil nature and cases of
related to family are handle by the Family courts (Stumped Court Structure, 2019). Both the civil
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and criminal cases are handling by the court of Magistrate. On the other hand, High court is
responsible to hear the appeals belongs from all the three of the benches and the peoples of civil
and criminal cases are handling by the Court of Appeals. At last, Supreme Court is accountable
for hearing the appealable matters only.
Figure- Structure of the UK Court
Source- Google images
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Explain the role of government in the law making process and how statutory and common
law is applied in the justice courts (P2).
In the United Kingdom, the main function of the Parliament is todepict the interest of the country
and its citizens and also monitors the actions of the government. In accordance with the British
legal system, this system is categories into the three main countries named England and Wales,
Scotland and Ireland. The Parliament of the UK is mainly responsible and accountable for the
enactment of law. In this process, the bill is categories into types that are public bill and private
bill. This is first stage where the bill is drafted and present in the Houses of the British
Parliament named Houses of Lords and Houses of Commons.
Figure- Bill making procedure
Source-By Author, 2019
The initial stage of this procedure is beginning with the presenting of Bill in both the houses by
reading its title known as First Reading. After that, in the second stage the bill and its content
are considered by both the Houses title known as Second Reading. In the third stage, termed as
Committee stage where the members are suggested any changes in the bill and in the next
Reporting stage, final changes are decided with the help of voting (How does a bill become a
law, 2019). In the following step, the changes are implemented and considered with the mutual
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consent of both the Houses of Parliament. In the phase of Third Reading, with the mutual
permission of both the houses, the bill is passed. At the end of the bill making procedure, the last
stage is the Queen approval where the bill is termed as law.
Statutory and Common Law Applicability
The main difference between both the laws is in relation to the field of applicability. In the
United Kingdom, Common Law is developed on the foundation of the regular and daily
functioning of society. Statutory commandment is the law which are in written form and are only
applied in the appropriate and particular cases.
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Recent reforms and developments in the legal system (M1).
In England, there are several recent reforms and growth that are taken place for enhancing the
legal system and the way it proceeds to resolving the issues that are prevailing in the country.
Video links help out in making the litigation procedure easier with the help of the introduction of
the virtual courts. Further, introduction of Health Act, 2006 covers health-related matters for
providing protection to the citizens. Further, manner of ADR is introduced for issue resolution
among the parties of the disputes by taking assistance of the third party instead of going to the
court.
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Use specific examples to illustrate how the company, employment, and contract law has a
potential impact on business (P3).
Company Law
For governing the rights of the persons, businesses and organisations, it is important that
businesses must conduct their business affairs in accordance to the provision mentioned under
the Companies Act, 2006 (Hannigan, 2018). This act consults the provision from registration to
the winding up process of the company along with the availability of the rights and liabilities of
the company for its management as well as for the third parties. In accordance to this law, the
corporation is indulgence as a detach lawful body from its members, that posses the power to sue
another party on its own name and can be sued by the third party in case of any misconduct on
the company hand. Company is further categories into a limited corporation or unlimited
business, public or private corporation or a company limited by guarantee or not.
Employment Law
To regulate the employees and employees right at the occupation place, such provision is guided
by the Employment Rights Act which states the provision in relation to the employers as well as
employees so as to conduct the activities in a fair and transparent manner. In case, if any
contravene of the conditions and circumstance of the provision of employment act, the guilty
party is liable for the penal provisions (Burns, 2016). This act consults with the provision in
relation to the wages, health and safety, data protection, employee’s pay scale, and other related
provisions. It also consists of the duties of employees under the contract of employment. Under
the employment, it includes acting like Data protection, Equality Act and Health, and Safety Act
also.
Contract Law
Contract law abides the individuals; businesses and organisation with the third parties so as to
conduct the procedure of the commerce in a just and apparent manner. This law is very crucial
for providing satisfaction to the parties who are depending upon the contract. If the contractual
provision is not properly followed, then it not only hampers the company image but also impacts
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the company profitability. Contract law plays a very important role to abide the businesses with
the business terms and conditions in accordance with the mutual consent of the parties.
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