Business Law Case Studies: Champion Limited and Amber Limited

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Business Law

Contents
Business Law...................................................................................................................................1
Introduction......................................................................................................................................3
Section 1 Nature of the legal systems and the legislations impacting the businesses.....................4
Task 1 (LO1 & LO 2)..................................................................................................................4
A) Meaning of the why parliament is sovereign and discussion on various source so laws in
the UK..........................................................................................................................................4
B) Role of government in the law making process and these are applied in the courts..............5
C) Various impacts of employment law, contract law and the company law on the business
organisation..................................................................................................................................7
Task 2 (Lo 3).............................................................................................................................10
Difference between the unincorporated and the incorporated business....................................11
How these business organisation are managed and funded.......................................................11
Section 2 legal solution to the business problems.........................................................................13
Legal solution for the case studies that are given to solve the dispute......................................13
Case 1 Legal solution to the champion limited.....................................................................13
Case 2 legal solution to Amber limited.................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

Introduction
The term commercial law and the business law is the body of the law which helps in governing
the business organisation so that they are able to operate according to the law. It is seen that the
commercial law helps in regulating the corporate law as this helps in the practicing the
operations in the best manner. It is seen that business law is deemed to be one of the most
important law in the country and helps various citizens and the organisation so as to regulate
them in best possible manner. This law helps in dealing with both the public and the private laws
so that country can be regulated in the best possible manner so that they are able to achieve the
standardisation of the task in the country. This law also relates to the company’s operations and
regulates the formation of the company, bankruptcy provisions, partnership formation, etc. It
helps in regulating the funding option and the managerial function of the owners of the business
organisation. This report is based on the scope of the business law in the country (Coulter and
Hancké, 2016). This report would analyse the various source of law in the country and would
explain in details the sovereignty of the country. The report would cover the steps and the
process that are included in the formation of the law in the country and the parliamentary process
for the same are specified in this report. This report would also specify the various types of
business organisation that are recognised by the law in the country. At last the case analyses
would be done which would help in providing the solution for the case.

Section 1 Nature of the legal systems and the legislations impacting the businesses
Task 1 (LO1 & LO 2)
A) Meaning of the why parliament is sovereign and discussion on various source so laws in the
UK
The term “parliament is sovereign” is defined under the constitution of the country and it
specifies the powers of the parliament. This is seen that the constitution is the supreme document
that helps in defining the structure of the country and also specifies the rules according to which
the country should function. This is considered as the main document that helps in providing the
rights to the citizens of the country and it also specifies the duty on people having the citizenship
of the country. Hence this is considered as the main document that can be altered through the
way of the parliamentary process and any amendment can also be made through this process
only (Dhillon, Mohammed and Miin, 2017). The parliament of the country is termed to be the
main law making body and this has the legal right to form the law in the country. This is seen
that the parliament is also known as the legislative supremacy and hence it is having the supreme
power to control the functions of the country. The parliament of the country has the absolute
legislative powers that is considered to be the supreme over all the courts that are working under
it. The monarch is considered to be the head who adopts the changes and signs on behalf of the
constriction so as to bring the law into existence.
The legal system of the country is based on the rules and the regulations which are based on
various rules and regulations of country. Some of the rules and regulation are described as
below:
Legislations Common law Equity law
It is the law that is used by the
court of the country so as to
the make it the main sources
for the country laws. The
legislations are the laws that
are made by the parliamentary
system of the country. The
legislations helps in giving the
These are the law that are
based on the judgment that are
made during the proceeding of
the company and hence this
helps in achieving the
objective of maximising the
performance of the law in the
country. These laws helps the
This is the law that is
developed by the English
court of chancery which is the
considered to be administered
by the common law system.
This is known to be the
distinct part of the law which
is based in England and wales.

decision in the court so that
they are able to give the best
decision for the issue that is in
front of them. These laws are
made so as to provide the
original provisions for the
issue that is raised in front of
the society. These are enacted
so that as to help in the
regulating, restricting,
authorising, funding the
functioning of the government
of the country.
citizens of the country as these
are already decided cases
through which they can
achieve the objective of
making quick decision. This is
considered as the law that is
unwritten and are established
by the courts so as to
maximise the regulation in the
country. These rule sets the
standards and the example for
the similar type of cases.
This is the law that is seen to
be prevailing in the case when
there is a dispute between the
equity law and the common
law. This law is considered to
be based on the fact that which
includes the equitable trusts as
an element.
B) Role of government in the law making process and these are applied in the courts
The law is known to be the main source for the country that helps in regulating the functions of
the citizens and the organisation of the country. The government of the country introduces new
law and amend the old law so that they are able to improve the functioning of the law in the
country and provide the appropriate legal solution for the people of the country (Do and
Smallbone, 2017). Hence the law making process of the country is considered to be the one of
the difficult task as there is requirement to check that each and every part of the country needs to
the covered through the law that is being formulated and no citizens of the country is affected
adversely from the rue that is formulated. It is important for the government to follow the
parliamentary system so as to bring the law into existence in the country and to make them
applicable in the country. There are various steps that has to be taken so as to achieve the
objective of framing the law and bringing them to the existence. The bill is considered to be the
initial stage which is converted into the law through the process of the parliamentary system and
helps in achieving the objective of framing the law. Hence some of the steps that are included in
forming the law are bifurcated as below:
First reading This is the initial stage in the process of law
making where the bill is introduced in the

parliament of the country by the minister of the
government. In this stage the introduction of
the bill is given and the details of the bill is not
provided in this stage.
Second reading It is the second stage where the details of the
bill are given in the parliament of the country
and the main provisions that are related to the
bill are showcased in front of the member of
the parliament. It is the stage where the
discussion on the bill is done and lastly the
voting is done so as to process the bill to the
next stage.
Committee stage It is the stage where the committee is formed
by the parliament of the country and the bill is
taken into consideration for the purpose of
analysing the effects of the bill on the people
of the country. it is seen that the provisions of
the bill are analysed for this purpose so as to
check whether the bill is not affecting any
other law in the negative manner. After the
approval of the same the bill is sent to the next
stage.
Third reading This is the stage where the bill is again
presented in front of the members of the
parliament. Here the discussion is made on the
amendments that are made in the bill. Finally
the voting is done on the bill and if accepted
then it is sent for the final approval.
Royal assent This is the stage where the bill is sent for the
final approval from the monarch of the
country. Here the bill is signed and then is

converted into the law which is applicable on
the country from the day mentioned in the bill.
In the court system of the country there is requirement of the law while deciding about the cases
that are being discussed in front of them. There are various laws that are applicable in the
country and the court system of the country (Ferretti, Salomone, Sutschet and Tsiafoutis, 2016).
The statutory law and the common law is considered to be the main law that are applicable in the
court system of the country. These laws are applicable in the country so as to bring the peace and
justice in the country. in the court system they are applied as follows:
Statutory law This is the law that is in written form and is
framed by the parliament of the country. Here
this type of law includes the original
jurisdiction that is framed by the government
of the country. This law directly applies to the
issue that is being discussed in the court by the
judge.
Common law It is the law that is considered to be the
example which helps in solving the cases that
are in front of judges of the court. Here in this
case the decision is made on the basis of the
already decided cases which helps them to
achieve the objective of bringing the justice to
the people of the country.
C) Various impacts of employment law, contract law and the company law on the business
organisation
The government of the country took various steps so as to provide best working condition and
the law to the organisations that are working in the country (Hopton, 2016). While on the other
hand this is seen that these laws has different impact on the performance of the country. Some of
the impact of these laws are specified as below:
Contract law This law is enacted under the contract act of

the government of the country. The law is
made by the government so as to regulate the
contracts that are framed by the people of the
country and the organisation on the regular
basis. This is seen that this law impacts the
organisation as they have to make the contracts
on the regular basis for the sale and purchase
of goods for the country (Zhang, 2018). Due to
this law they have to make lots of paper work
which it takes lots of time to perform their
obligations.
Companies law This law is enacted for the regulation of the
companies that are working in the country. The
act that is governing the companies in the case
is the company’s act 2006. Various rules that is
related to the company that are given in this act
includes the steps for the formation of the
company. It is important for the organisation to
make it registered into the company to get
themselves registered into this act.
Employment act This is the law that helps in bringing the good
relation between the employer and the
employee of the organisation. This is the law
that helps the employee and brings various
rights and duties to the employee
(Sotiropoulos, Rutterford and van Lieshout,
2019).There are various rules that are included
in this law which includes the minimum wages
act and it also defines the working hour for the
different types of the workers. Hence it
impacts the organisation as sometimes they

have to provide the minimum wage which is
not applicable to the class of worker.

Task 2 (Lo 3)
As this is seen in the given case where JPM are the colleagues that were already in the
partnership business wants to make expansion of the business. It is considered that they were
advised by their accountant to make the company if they wanted to expand their business to the
new heights (Howe, 2016). Hence for the purpose of solving the issue there are various forms of
business that can be structured by the JPM which are bifurcated as below:
Corporations This is the type of the organisation which is
considered to be one of the best kind of
business option for the business owners. It is
seen that there are various advantages that
associated with this type of structure. All the
companies that are formulated in the country
have to get themselves registered into the
company’s act 2006. The act has the objective
to protect the shareholders of the company. For
registering the companies under the companies
act it is important to form MOA and AOA as
the governing papers for the company. There
are various forms of the company which
includes the voluntary associations, Financial
entities and the business entities which aims in
getting the best profit for the owners of the
company.
Limited liability partnership The limited liability partnership is considered
to be the form of partnership that is made
where the partners are not liable for the amount
of debts that has been raised by the firm
(Lowe, et. al., 2016). Here the partners are
liable till the amount that is due in respect of
them. This is seen that in this there is no
mandatory requirement of the partnership deed

that is required to be framed for this purpose.
Sole proprietorship This is considered as the organisation where
there is the single owner who is considered to
be the sole owner and the manager of the firm.
Here the expansion related criteria for the
purpose of the issue is very less. It is the seen
that this is considered to have advantage over
the formation process as there is very less
paper requirement for the same. This is
considered to be the expansion of the owners
of the business.
Difference between the unincorporated and the incorporated business
In the country like United Kingdom there are several types of business organisation that helps
the owners of the business to achieve the objective of profit maximisation. It is seen that the
companies and the firms that are working in the country are considered to be the based on the
basis of the incorporated company and unincorporated company. Hence there are various
difference between the two (McCormack, 2016). Some of the difference includes the following.
As in the category of the unincorporated firms these includes, sole traders and the partnership
firms. While on the other hand in the category of the incorporated company includes the limited
liability partnerships and the corporations for this purpose. These are guided under the
company’s act 2006 in UK.
Hence there are various difference in between them some of which includes the following:
 In the unincorporated business burden of liability is on the owners of the business while
on the contrary the burden is on the business firm in case of incorporated business.
 The tax rate is considered to be lower in case of unincorporated business as compared to
incorporated business.
How these business organisation are managed and funded
This is seen that these organisation are managed and funded by the different owners and in the
different way. These can be bifurcated as below:
Management
 Sole trader: This is done by the owner of the firm which is known as the sole trader.

 Partnership firm: These are done by the partners of the company. These are the sole
owner of the firm.
 Corporations: It is done by the directors and the managers of the company.
Funding
 Sole traders: Here it is done by the personal saving of the owner of the firm. The bank
loans also helps for the same.
 Partnership firms: the capital is contributed by the partners in the ratio that is decided
among them. Also the loans from the bank is taken into consideration for the same.
 Corporations: There are various ways through which the firm can achieve the objective of
the objective of funding. These includes the share capital, debentures, bonds and various
other forms.