Business Law Report: UK Law, Business Operations, and Legal Analysis

This report provides a comprehensive analysis of UK business law, commencing with an introduction to the subject and an overview of the sources of UK law, including Acts of Parliament, case law, and European Union law. It further explores the role of the government in the law-making process and the application of laws within justice courts. The report then delves into the impact of company law, employment laws, and contract law on the operations of a business, emphasizing the importance of compliance and the implications of legal changes. The report also examines various business organizational structures, differentiating between unincorporated and incorporated businesses, and discussing their management and funding. Finally, the report presents and analyzes two case studies, offering legal solutions to business problems. The report concludes with a summary of key findings and relevant references.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
a) Meaning and different sources of UK Laws...........................................................................1
b) Role of government in law-making process and how laws are applied in justice courts.......3
c)Defining impact that company law, employment laws and contract law have on the business
of an organization........................................................................................................................4
TASK 2 ...........................................................................................................................................6
Business organisation types........................................................................................................6
Difference between unincorporated and incorporated business and how they are managed and
funded..........................................................................................................................................7
TASK 3 ...........................................................................................................................................9
Case1...........................................................................................................................................9
Case 2........................................................................................................................................10
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business law includes all the laws that are mandatory to be followed by all types of organizations
to form and run a business. This consists of all the laws that guide how to begin, manage, buy
and sell any business. They establish the rules that needed to be followed by all the businesses. It
consists of all state, federal laws and administrative regulations. Business laws are made to
prevent business from all types of problems and legal disputes. Business law comprise of laws
regarding business formation, employment considerations, anti-trust, sale of consumer goods,
intellectual property, taxes and bankruptcy etc. The report consists of the different sources of UK
Laws, the government participation in law making process and laws are applied in justice courts.
Further study focus on employment and contract law and their influence on business. The type
and formation of various types of business, differentiate between unincorporated and
incorporated business. Their is brief description of various type of organizations , their
advantages and disadvantages. In the we have to suggest right legal solutions to resolve business
problems by using laws to support(Twomey, Jennings and Greene, 2016).
TASK 1
a) Meaning and different sources of UK Laws
Power of parliament is the basic principle that is applied within the world. The UK Parliament
has unlimited powers of making laws. The countries following monarchy system does not have
the power to make own laws and decisions and the court also does not hold power of overriding
laws. The parliament is the only body holding the power for creating, adjusting and abolishing
any law. In UK every power to make decisions or laws is vested with the parliament. There are 4
briefs or principles to explain the sovereignty of the parliament:
1. Only parliament has the power to make laws and statutes.
2. Court does not hold enough power to invalidate any statute by the parliament.
3. Current parliament does not bring any law that the coming parliament cannot alter or
cancel.
4. Laws build by the previous parliament has no bounding on the present parliament.
Parliament balance its working by stating that laws are not absolute. The present parliament has
the power to alter, change and eliminate any laws begin by the UK(Cox, 2015).
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Sources of UK Law
Act of Parliament
In UK, an Act of parliament is the basic law passed by the parliament. Due to the declaration by
the UK'S parliamentary and Glorious Revolution, laws passed by the parliament cannot be
changed or overruled by any other statutory body despite the parliament itself as it is the basic
law, but it is clarified that any rules and regulations of the part of law that is passes by the UK
Parliament that are conflicting with the European Union can be neglected. Any act of parliament
or any law passed will be enforced to four countries that are England, Wales, North Ireland and
Scotland however after devolution the acts passed by parliament are applied to England or
Wales. It is the primary source where the laws are developed in parliament. The classification of
laws are as follows: like Public General Acts applies to everyone across United Kingdom.
Private Acts applies to a particular locality or some legal person.
Case Laws
Other source of law is case laws also remarked as doctrine of judicial precedents that is basically
developed on the Latin principle of standing by decisions. Judges at court has to follow the
decisions given by the superior courts. Only house of lords is not bound to the decisions passed
by itself or other courts where as the supreme courts decisions are followed by the court of
appeal. In short the decisions taken previously by judges can be taken back for making any
changes or by taking any current judgement. And the prior judgements are bound by the courts
decisions except supreme court.
European Union Law
It is the law operating across the member states of European Union. For past 40 years of
partnership, UK is following the laws passed by European Union. As per a signed agreement the
law passed by EU has to implemented by its member countries as they become automatically
enforceable to them. The rules and regulations are to be followed at the National Level in every
member country. If any dispute occurred between UK and EU law, laws made and passed by EU
will always have an upper hand over UK law((Hansmann and Kraakman, 2017)).
Delegated Legislation
Parliament Government has two types I.e primary legislation and secondary legislation known as
delegated legislation as it is given some extra powers to make laws. It is also called as
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subordinate as it hold other acts that is not passed by parliament. Other government bodies are
accepted and allowed to make changes but only if it is necessary.
b) Role of government in law-making process and how laws are applied in justice courts
`Public authority offers or present a draft to the cabinet minister on the basis of which the
law is needed to be developed. The relevancy of the proposal is checked and analysed by the
minister and required to be approved and is passed to the parliament for further consideration.
The approval and rejection of the proposal depends upon both the houses of parliament.
The bill is submitted to any one houses of parliamentary that are house of the lord and
house of the common. In the starting of the introduction of the bill, the bill is read out which is
called as the primary or first reading that means disclosing the matters of the bill proposed. Then
after this the bill is passed on for another reading session that is second one within 15 days of
time duration and then the discussion regarding the principles of the proposed bill is made and
then the members vote. Voting is a constant process until the bill is passed. Till then the
opposition party will be ready with their views in against the proposal. Recommendations are
invited for changing anything in the proposed bill. Business law contains equality, employment,
contract, health & safety, company laws etc. In the second meeting the bill is passed to the
committee stage where each and every clause that is written in the bill is thoroughly checked by
the committee. The committee deeply analyse every fact of the proposal and find any chances of
possible mistakes that can be changed in the bill. The committee has a chairman and other
members. The chairman can cast a vote only when there is a tie. After this stage the bill is further
referred to the next level that is report stage. The bill analysed by the committee and the
decisions given by them are described to house of commons at is in 14 days. Any amendments or
addition of clauses can be made by the members at this stage. This report stage is lengthy in
process. Bills checked by the committee of houses at this level is not discussed. The final stage is
the third reading session where the final draft is examined. Now at this level no changes or
amendments can be made in the house of commons but changes can be done in house of lords.
After this the bill is delivered to other house of parliament and the whole procedure is repeated.
Even a small change or amendment is transferred to the first house for reconsidering it. The bills
passed still has a possibility of changes and each house is restrained to agree to the changes. The
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process becomes quiet lengthy when the houses does not show up for the meeting over the final
drafts. In UK the final stage for legislative process in the Royal Assent. After every change and
the completion of every procedure Queen gives the final approval to the bill and then a law is
said to be passed. The bill is listed in the parliamentary record(Hui and Chan, 2016)).
Application of Common Law
The law is made on the basis of previous judgements given by the courts and these
judgements have restrained effect on the new judgement due to the doctrine of judicial
precedent. Courts are amend to refer to the previous judgement that is made on the previous suit
for making decision for some new case. It is applicable on civil and criminal cases. The judge
can reject the rulings of previous cases if they have the solid basis like laws were misinterpreted
or some evidence were omitted.
Application of Statutory Law
This law is made by parliament's decisions and the analysis is done with the hand of
internal and external aids developed for this purpose . Before the final decision judges of both
criminal and civil courts are adhere to check the relevancy of the laws and thyen can make
decisions.
c)Defining impact that company law, employment laws and contract law have on the business of
an organization
Difference between legislations, regulations and Standard
According to the legal system followed in UK the terms legislation, standards and
regulations has different meanings. These terms have different meanings in the context.
Legislations are the rules and regulations that are the part of the legal system. Every person has
to abide these laws irrespective of country. Legislation are the set guidelines according to which
every person has to perform activities across the country. While regulations are the information
justifying the making of law in the country for each and every activity. Standards are same in
meaning. These are fixed by the government to maintain the quality of product and services that
are manufactured in the country. These are developed for products and services used by every
trader of the product which are ultimately consumed. These are followed at every stage for
satisfying the consumer needs(Soule and King, 2015)).
Impact of Company Law
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All the companies registered in UK adhere to the companies act, 2006. Several rules and
regulations govern, control and monitor the operations of businesses. And different types of
business follow the companies act's norms. Almost 1300 sections are there to provide the
guidance for the company start from its incorporation to its liquidation. UK's company law has
an important influence over the business of the organisation. As per the company law , 2006 the
financial reports are to be prepared keeping in mind the modern reporting framework that is
given by the Institute of Chartered Accountants of England. This increases the need for
professionals as the new financial reporting will require the expertise for preparing it. In addition
to this the requirement of audit of financial reports are done by professional experts. Implying
new laws has increased the operational costs of the business. Even a small change or amendment
in the laws have an impact over the company's business. Therefore complying company law is
beneficial and important for the company and the business.
Impact of Employment Law
The UK government has passed many laws, rules and regulations for protecting the rights
of the employees of their country. This law contains Equality Act 2010, National Minimum
Wages Act 1996, Anti-Discrimination Code of Conducts,Employment and labour laws 2016,
Employment right act 2006, Equality act 2010,pension act 2006 etc. As employees play an
crucial part in the success of the business and without them no business can run or survive,
therefore it is necessary to protect their rights are safeguard them. Companies are required to
follow the contractual agreement made between employer and employee when the employees
can into business. For benefiting the employees with retirement benefits such as pension act,
gratuity act(Baskerville and Baskerville, 2018).
Impact of Contract Law
Contract that is enforceable by law. It has important influence on the business of the
organization as every transaction is done on a contractual basis in between parties and
companies. Contract are made generally for consideration that is something in return. The
contractual agreement protect the company against any conflicts or misuse by the outsiders.
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TASK 2
Business organisation types
There are 4 types of business organisation which is legally formed. It depends on the nature of
the organisation which type of business they need to perform. Owners start business to adopt
legal systems which protects the duties and rights of people. JPM need to analyse which business
type they want to start:
Sole-proprietorship:
In this type of business there is only one owner who controls and monitors the business. They
have full rights to conduct there business as they want. It is beneficial because profits are not
shared and tax is paid only once. It is also expensive and risky because liability is on one person
only. To form a sole-proprietorship a society number and licenses are required(Boldt, Kassis and
Smith, 2017).
Advantages
 It is easy to form and less expensive.
 Proprietor has complete ownership over its business. Power of decision making.
Disadvantages
 It is full of liabilities.
 Owners have risk of selling their assets and properties.
 Limitations in fund raising.
Limited liability company:
This type of business is owned by various other people or individuals. It is more flexible in
nature and has a limited liability. It is consist as a separate entity which bear a limited amount of
debts. It allows incurring huge capitals and it is easy to raise funds in this business because it is
registered in the companies act(Cowan, 2018).
Advantages
 Easy to raise funds.
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 Unlimited owners means unlimited capital.
 It is a separate legal entity.
Disadvantages
 It incurs huge cost, yearly administration cost.
 Personal liability of tax(Siems, 2018).
JPM publishing need to use limited liability company. It will be beneficial for them because
there is limited liability and they could share profits. It is easy for them to raise funds. Profits are
shared according to their capital invested.
Difference between unincorporated and incorporated business and how they are managed and
funded
Basis Incorporated Unincorporated
Definition  Incorporated business
includes partnerships and
limited liability companies
where business are legally
operated.
 It is free from personal
liability when a business is
incorporated.
 Deductions for expenses are
reduced from the taxable
income of the company.
 It is easy for incorporated
company to raise funds that
why most of the financial
institution prefer to lend
money to incorporated
 Business which
are not registered
under the
companies act are
said to be
unincorporated.
 It may consist of
2 or more persons
or family trusts. It
does not have
separate entity.
 All the liabilities
and assets of the
business belongs
to proprietor.
 It need not
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business rather than
unincorporated because.
require to meet
legal obligations.
The owner is
fully liable for
wrong and right
decisions made
for business.
 It incurs less cost
in management
and financing as
compared to
incorporated
business(Vago
and et.al., 2017).
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Managed  It is managed by board of
directors and managers of
the company.
 It is the duty of BOD to take
care of the corporation.
 They need to have good faith
and interest in the business.
 In order to check the position
and stability of the company
auditor of the business
makes financial policies and
regular annual report.
 This helps in controlling and
taking various measures to
protect there firm.
 It is managed by
the owner.
 They manage
their financial
reports and audit
 They analyse and
find the position
of the company.
 They make their
own policies so
they only are
responsible for
any wrong
decision making.
Funded  These business are funded
through initial public
offerings.
 IPO is the main source from
which company is able to
raise funds for itself.
 By adding partners in the
entity company raise funds
 At an certain rate of interest
financial institutions also
provides loans(Brijs, 2016).
 These business
raise funds
through their
personal savings
which is often
called retained
earnings.
 As they are not
legally registered
under law they
face difficulty in
raising funds
through financial
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institutions.
 Financial
institution cannot
legally sue if an
entity is unable to
repay the fund
back then.
TASK 3
Case1
Issue: In the given case Champion Ltd is facing a problem of repayment of loan to its creditors.
The creditors are threatening the company for filing up a compulsory winding up order so that
they can get their money back. The issue coming here is that whether the creditor's contention is
right or wrong. If yes, what legal action the company can take in order to stop the legal action
against the company.
Rules:
Insolvency Act, 1986:
As per section 122 of the act, when any company is unable to pay its debt to the creditors for the
amount which is higher then seven hundred and fifty dollar then the creditor can file a winding
up petition in court against the organization. The court can give order to the company for
winding up of the company and selling of its assets and property so that the realised amount
received from it can be used to pay the creditors in proportion of their dues to the company.
Administration:
As per the provision of this act, a company can go under administration by filing up portion I in
the court. The court gives order to the company to appoint an administrator who take all the
business operation in his hands. The administrator with all his knowledge and experience tries to
bring the business in the profitable position in a time spam of 2-5 years which is agreed between
the company and creditors. While the administrator is working some amount is paid in
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instalment to its creditors in between the years. The creditors in this time cannot file any winding
up petition against the company. An example can be seen in the Realbuzz company situated in
UK. It is a sportswear company which recently has gone under administration in 2017. Almost
all the stores of the company are shut down but still other company is working which is
unaffected and is running under administration.
Application and Conclusion:
From the rules and regulations of UK government and Insolvency Act of 1986 it can be said that
the creditors have legal right to to file winding up petition in court to realise their amount back
from the business. This company can undergo administration where it can again start to operate
through administrator like the Realbuzz company and can make the business earn profits.
Case 2
Issue:
Mr. Anderson left the job of CFO from Amber Ltd. and he joined Beta Ltd as CEO. Now in the
contract with Amber Ltd it is mentioned that Mr. Anderson cannot leave the job without 12
months prior notice. Now Amber is seeking for imposing legal case and stop Anderson working
with Beta Ltd(Luetge, Armbrüster and Müller, 2016).
Rules:
 Employment Law: Employment Law and Labour Law 2006, Employment Right Act
2006, Ethical Code Of Conduct etc. are some laws which provides provision regarding
employment. These laws provide various rules and regulations in respect of both
employer and employee of the country.
 Employment Contract: As per the employment law, at the time of appointing any
candidate to the company or business at any position, the company needs to formulate an
employment contract with the new employee. The contract between the employer and
employee contains various rules and regulations that are needed to be followed by the
employee regarding employment. This agreement contains several essential information
relating to the employment such as working hours, salary to be given, rules regarding
leaving the job and terminating the employee from the job.
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 Binding of Employment Contract: As per the provision of UK rules mentioned in the
employment law, employee and employer are bound to follow each and every condition
mentioned in the employment contract between them..
 Breaching of contract: In any case, If either employer or employee perform any activity
which is against the employment contract will be considered as a breach in contract. An
employee works with other company without informing the first company with whom he
is in contract, is also called breach of contract. No person is allowed to engage in dual
employment as it is illegal. If the two party know about the dual employment then it is
not illegal as they both are working with the allowance of each other.
 Claim for breach of contract: Out of the two party that is the employer and employee
breach the contract then the opposite party has right to sue and also the innocent party
have right to claim compensation or order of injunction against the party as well. The
compensation is either paid by the person or by the organization. The litigation should be
true and if false litigation is done then the case can be done on the person himself for
wasting the time of the government.
 Remedies Available: Along with duties and liabilities given in contract there are remedies
available for the innocent party like he can ask for monetary compensation, injunction
order against defaulting party or combination of both. Less remedies are available for the
person and it also depend upon the different laws of different countries to give justice to
the innocent person(Finnegan and et.al., 2016).
Case Law:
Lambeth v Agoreyo, who is a teacher performed an activity beyond the term of her duty
with the company. The organisation terminated her job beyond the terms mentioned in the
employment contract. The teacher went to court and sued the organization on the ground of
breach. On this the court find out and the result were that the organization did not breached the
employment contract. Rather, teacher breached the contract and she lost the trust and confidence
of the company. So the court dismissed the claim of teacher.
Application:
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By seeing the conditions of both, it can be said that it is compulsory for both the party to
follow all the conditions which are written in the contract. If any of them will break the trust and
will not follow conditions then he will be pleaded guilty. In the present situation, the
employment contract between Anderson and Amber was broken by Anderson as he left the
organization without giving prior notice of 12 months. With seeing the case it can be said that
trust and confidence should be maintained by both the parties and if any one of them will break
the trust then it will affect both the parties. In this case, Anderson has breached the trust with
Amber by not giving a prior notice of 12 months and before that only he started working with
Beta Ltd who was a competitor of Amber Ltd(Yu, 2018).
Conclusion:
With the analysis of all the employment laws stated above, it can be stated that Anderson
and Amber Ltd were both in a contract and it said that Anderson cannot leave the organization
without giving prior notice of 12 months. Now as Anderson has started working with Beta Ltd
without informing Amber Ltd so he has done a breach in the contract between the two. In this
regard, It can be said that Mr Anderson is found guilty and Amber Ltd have right to claim for
damages from Anderson. It is also found that order of injunction can be passed by Amber Ltd
against Anderson.
Conclusion
From the above study it can be concluded that there are different laws which the government
announces each year for the benefit and safety of its citizen. It is announced every year and is
called Parliament's Sovereign. There are meanings of various laws and sources of various UK
laws. The role of government in law-making process is also given and how common laws are
applied in court. Information on different types of business and how they are funded and
managed is also given. There is also a case of a company which is getting insolvent is given in
report and how creditors are forcing organization to sell all its assets and properties. The case of
a person who breached his employment contract is also given. There are different steps which
can be taken if a person breach the contract of employment. The person who breached the
contract can be sued or a big fine can be imposed on him for breaching the contract. Contract is
usually made when two employees know each other and they come together to work as one so
13

that they both can earn profits. There is usually trust between the people who are in contract.
Contract is made for a single task or for single goal only.
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