Business Law Report: Analysis of UK Business Law and Legal Framework

This report provides a comprehensive overview of UK business law, commencing with an introduction to the subject matter and its significance in commercial decision-making. The main body of the report delves into the various sources of UK law, including legislation, common law, European Union law, and the European Convention of Human Rights. It examines the role of the government in the law-making process, detailing the stages involved in enacting legislation. The report further discusses the application of statutory and common law in justice courts, supported by case law examples. It then explores the impact of company, employment, and contract law on businesses, providing relevant examples. Additionally, the report covers the legal formation of different types of organizations, including partnership firms, limited liability companies, and corporations. It also addresses the responsibilities of managing organizational activities and the sources of funding. Finally, the report offers recommendations on resolving legal disputes, incorporating examples to illustrate the application of legal principles. The conclusion summarizes the key findings and insights, with a list of references for further reading.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Description of the different sources of law in UK..........................................................3
P2. Role of government of law commencing process and also explain how statutory and
common laws are being applied in Justice Court...................................................................4
P3. Discussion on the topic of company, employment and contract law and its impact on
business in UK........................................................................................................................5
P4. How several types of organisation are legally formed.....................................................6
P5. Who the responsibility to manage the activity of organisation and what are the sources of
funding. ..................................................................................................................................7
P6. Provide recommendation on legal issues with the help of resolving a range of dispute with
the help of using relevant example.........................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
Business law can be defined as law which deals with the issue of law in the field of
commerce and trade. It is one of those law which plays crucial role at the time of taking
commercial decision on regular basis. There are some of the branches of business law which
deals in various filed for the purpose of solving issues of general public. In this report, the detail
information will be given from Global Solicitor point of view as they have hired new employee
who need to work on the capacity of legal advisor. The file will contain detail information
regarding sources of UK law and how is being enforced. There will be complete discussion
regarding company, employment and contract law. The role of government will have proper
discussion as it is one the lengthiest process of constituting law in the world. Even points related
to incorporation of various types of organisation will also be covered. The file will wind up after
demonstration of solving legal case where advices will also be given as per the guidelines of law.
MAIN BODY
P1. Description of the different sources of law in UK.
The law of UK have been commenced by considering various objects which includes
social factors, rights of public, changes required for the process of conducting development work
etc. There are four main source of UK law which have been discussed in detail below.
Legislation is one the primary body of UK while commencing any law. The role of
legislation is to enforce all those law through which public are benefited. The main focus of
legislation body is that how they can reduce the number of crime within the country. Even it is
helpful for taking business decision on regular basis as guidelines of legislation are are always
constant and if it is to be changed then it requires long procedure (Kraakman and Hansmann,
2017).
Common Law is the second body which is working actively to prevent public from
criminal activities and many more. Common laws are being commenced in that condition where
legislation and all other sources of commencing law have not described any point and in that
case common laws are being formed. The authority for commencing common law is given to the
authorised panel of Judges of supreme court.
European Union law (EU) is also the leading body in UK which commences law for
United kingdom and for all the nation of Europe. This body was commenced after second world

war so that people will not conduct unnecessary activity. No one have the power to raise
question against those law which are enforced by European Union. The laws which are coved
under EU law are related to political issues. Even they are the one who have delegated power to
public just to provide more freedom to people of United Kingdom (Jones and Lainez, 2013) .
European Convention Of Human Rights (ECHR) is also the part of law making body
in United Kingdom. It can be said that ECHR is working in UK for the rights of public. There
are around 40% of human rights law in UK which have been commenced under ECHR.
P2. Role of government of law commencing process and also explain how statutory and common
laws are being applied in Justice Court.
One of the longest procedure in UK is to constitute law which is to be done by
government. There are various legal remedies that need to be considered by government as there
is no any chance of commencing mistake because laws are being enforced for the betterment of
public. The procedure of forming law starts when member of parliament present the bill in House
of Parliament. The bill which has been proposed is also known as draft. Once, bill is presented in
Parliament the procedure start where bill has to pass 7 different stages which includes first and
second reading then committee and report stage is to be held and after that bill is present for third
reading. In the end, last two stage is related with House of Lords and Royal ascent.
First Reading is held for having overview on bill which has been proposed by member
of parliament. Second Reading is for general communication where member of House of
Common need to show involvement. While taking about Committee Stage, it is the platform
where it is decided that how proposed bill can be more helpful by the process of amendment. The
next stage which is to be considered after committee stage is Report Stage, where team plays
the role of changing those point which have been told by committee stage (Johnson, 2012) .
Then, bill is to be sent for voting which is to be conducted in Third Stage. In this, it is being
checked that how many members have been agreed on bill which have been proposed by
members of parliament. If more than half member agrees upon bill, then it is to be send in House
of Lords. The peer member take the part in this stage where they check all the points in detail
and after that they decide whether it can be forwarded or still amendments are required. The last
and final procedure is Royal Ascent which is to be obtained from monarch person as it is
mentioned in the Royal Ascent Act, 1961 since 13th century (Legal systems in UK, 2019).

This is the role of government body in forming law within the boundary of UK. It is one
of the most important procedure of which is being followed by every ruling government. The
main motive behind following this lengthy procedure is that government don't want to commit
any mistake from their side through which rights of public are influenced.
At present, it is important that how justice court declare its result on the basis formation
of statutory law and common law as both plays vital role on regular basis at the time of giving
judgement (Hayden and Bodie, 2012). Common law is helpful at the time of giving decision
where statutory law have not described any particular section. In this situation, judges have the
supreme power to take best alternative to declare result. The judges have been given the
authority to declare its result by having the overview of overseas courts where similar kind of
case have been discussed earlier. Even judges have the option to take its decision by checking
the legislation where law have been defined regarding similar case. This is how common law is
being applied in judicial court.
Case law: Hardy v. Milan
Judgement: The judgement which was given in this case was based on common law as statutory
law was silent in this case.
Statutory laws have been already defined in the law book every year. Every single detail
are mentioned in that where appropriate solutions are also given in simplest form. Now, it is the
duty of judges who have the responsibility to give judgement on case which need to solved with
the help of written statutory law. The main thing that need to be consider by judicial court is that
how they read the laws as result is to declared upon that report. This is how statutory laws are
being applied in judicial court.
Case law: Jonathan v Court of Manchester
Judgement: The crime which was committed by Jonathan was able to be judged on the basis of
statutory law (Halbert and Ingulli, 2011).
P3. Discussion on the topic of company, employment and contract law and its impact on
business in UK
It is to be considered that how any organisation read any relevant law because that have
the direct effect on business activities. Specially, there are three law which are being used on
regular basis and they are company, employment and contract law as they have a huge impact on
business activity.

Employment law consists of various rules and regulation which safes the rights of
employees at the time of working in any office or factory. Here, responsibilities are delegated
equal to employer and employees. If anyone breaks the rule and regulation of a law then action
are being taken. It can be found that it have a huge impact on regular basis which increases the
overall cost of organisation as lots of formalities are to be done. The positive impact of a
employment law is that it helps to select the wages rate of all those staff who work in the
premisses of a company. For example, Unicorn Grocery need to decide the rate of wages which
is required to be paid to employees on the basis of given guidelines under employment law
(Greenwood, 2016).
Contract law is the sub branch of business law which focuses on the matter of contract.
It is been seen that there is a huge impact of contract law on the activities of business on regular
basis. The major impact shows that it bounds involved business organisation to wind up the term
and condition of contract. Even it say that organisation are not allowed to enter into those
contract which are void ab inito in nature. For example, when Unicorn Grocery agrees to
delivery food product to customer, then it mandatory to be done on given period of time. As, it is
the part of voluntary contract.
Company law is the backbone of business law as it helps to regulate all the activities of
business organisation. It has been helping in each and every step so that business organisation
can be benefited to earn additional amount of profit. The impact of company law stats that it
gives legal existence to the company where rule of perpetual succession is also applies. For
example, Unicorn Grocery is one of the SME which is registered under Companies Act. Now, it
can be understood that if owner of the dies then also it will not affect the position of company in
future (Frank and Bix, 2017).
P4. How several types of organisation are legally formed.
It can be found that there are several types of association, where they need to be
incorporated legally just to avail various kinds of benefits from government department.
Partnership Firm is the organisation which need to be formed by submitting all the legal
documents which includes partnership deed at the time of registering it under Partnership Act.
Even there is rule that it must submit the hard copies to Companies House just for the purpose of
keeping record.

Limited Liability Company (LLCs) is also one of that form of organisation where
flexibility is provided to investor. They enjoy the rights related to partnership firm and
corporation. The main method which need to be followed by LLCs at the time of formation of
company legally is that they should also invest their time on preparing Memorandum and Article
of Association where every single detail should be addressed. Once, preparation is completed, it
is necessary to submit those documents to Companies House (Fitzmaurice, 2017).
Corporation is the important body under the types of business organisation where
dealing are done in millions and billions. The purpose of commencing this types of company is
just to provide freedom to those investor who don't want to invest their money in other form of
business as liabilities are not secured under it. The legal process which need to be adopted by
corporation at the time of incorporation is quite lengthy compared to other as number of
responsibilities are given more to corporation compared to other form of business organisation.
Firstly, corporation need to decided the name of a company by checking the portal of company
where availability can be checked. After that, it is necessary to decide the location where it need
to be setup. Once this process is completed it is the duty of every member to decided the name of
first member of a company who will take the responsibilities to incorporate organisation in a
systematic manner. Then, there is a requirement of first director who is it to be appointed before
preparing Memorandum and Article of Association (Cq PressPollitt and Bouckaert, 2017). Then
responsibilities of first director and shareholder to prepare all legal documents which need to be
submitted in Companies House. The documents which need to be prepared are SIC (Standard
Industrial Classification).
P5. Who the responsibility to manage the activity of organisation and what are the sources of
funding.
Everyone plans to incorporate business organisation but actually they don't have a
knowledge that how they can be managed systematically and how fund can be collected in future
if any requirement arises.
Partnership Firm need to manage its business activity with the help all those partners
who are involved in partnership firm and among them main role is being played by authorised
partner. While discussing about managing fund they arranges their fund from banks, financial
institution and sometimes personal assets are also added for the purpose of managing fund.

Limited Liability Company is one of those form of company where responsibility of
managing business activity is delegated to those members who take active participation in the
company. It includes Managers and those member who are working on the capacity of directors.
The area which LLCs search for managing additional funds are Banks, Credit Card, Loan from
financial institution etc.
Corporation are need to work on greater platform and for that it is necessary that
responsibilities should be assigned to many person which includes Board of Directors,
shareholders, Company Secretary etc. (Buckley, Burton and Mirza, 2016). For raising additional
capital, organisation need to being fresh issue of share in the market which is helpful for raising
capital for any listed company. Even bonds and debentures are also one of the alternate option
for managing fund. In addition, company can apply for loan from financial institution and
government agencies.
P6. Provide recommendation on legal issues with the help of resolving a range of dispute with
the help of using relevant example.
Case Study: In a partnership firm, there were three partners. They had a agreement
between each other related to each and every activity. The name of the partners were Jack, Jonny
and Jolly. The main point which was covered in the partnership deed was that none of the partner
is allowed to leave the premisses of partnership firm without informing other partners. At least,
notice of 5 months should be given was the main condition (Bishara and Westermann‐Behaylo,
2012). It was found that Jolly want to remove himself from partnership deed but he didn't gave
any anterior notice of 5 month. The reason which was given by Jolly for leaving the partnership
firm was not appropriate. So, looking at this matter Jack and Jonny want to file a case against
Jolly to recover damages.
Contract is the legal paper which is signed by those persons who are involved in
agreement. After entering into contract no one is allowed to breach the term and condition of a
contract. In given case, there was a agreement between Jack, Jonny and Jolly regarding
partnership firm. But, it was found that one of the party breached the term and condition of
contract paper.
Breach of Contract is the situation which arises when any person or organisation denies
to perform their part of work. When ever the condition of breach of contract arises, it might be
possible that defaulter need to compensate innocent party. The obligation of proving the

intention of defaulter is in the hand of innocent person. Similarly, in this case it can be seen
easily that person Jolly breach the contract and the burden of proving in the hands of Jack and
Jonny. As, they want to suit Jolly for breach of contract in court room. But, it is not the
appropriate way to solve the dispute. The best solution for them to solve their dispute is through
the process of Alternative Dispute Resolution (Besley, 2015).
Alternative Dispute Resolution (ADR)
It is the simplest and legally allowed method which is being used to solve the dispute
which arises between two or more then two person. The concept of ADR was started since 19th
century and firstly it was adopted by United States of America. The main use of ADR is to solve
those matter which are criminal in nature as they can be entertained only in court. There are three
different steps which can be used to solve dispute.
Mediation is the main starting process of Alternative Dispute Resolution where person is
to be appointed after the mutual consent of the agreed parties. The one who is appointed under
the process of mediation is known as mediator. The neutral party need to understand the points
of disputed party so it will be easy for mediator to advice. The responsibility of mediator is just
to give neutral advice. But, it is the choice of party that whether they want to follow the
instruction or not.
Conciliation is as similar as mediation but rare difference can be found. In mediation,
only advices need to be given where as in conciliation, the main motto is to meet out the term
and condition of agreement. Conciliator is the one who is appointed in conciliation method. This
is the most valued concept of ADR (Berger-Walliser, Bird and Haapio, 2011).
Arbitration is also one the method of ADR where duty of judging the situation is given
to arbitrator. As, decision of arbitrator is final and cannot be challenged so it important to appoint
arbitrator in odd numbers. It basically entertains those cases which cannot be tackled through
mediation and conciliation.
In this case of Jack, Jonny and Jolly, they can select arbitration method because it is not
possible to solve this through two other process because their nature is just to provide advice.
But, in this case there is no such requirement of legal advices as case need to be solved as soon
as possible and for that Arbitration will only be the suitable choice in this situation.
Case Study: There are two friends (A, B) who were involved in joint venture. The
responsibilities of A is to conduct all the business activity where as B need to prepare the report

related to fund. There was some sort of miscommunication between A and B due to which A ask
to submit the complete report related to the source of funding. But, B was unable to do that.
Now, A want to file a case against B for money laundering.
Legal Solution: This case can be solved with the help of Alternative Dispute Resolution.
A and B can adopt Mediation process which can be beneficial for them to solve their dispute.
Here, mediation will be helpful because they can take the legal advices which will help them to
find best solution. As, case related to money laundering takes additional time within the
premisses of court.

CONCLUSION
The conclusion that can be taken out from this file is that, business law deals with various
branches through which decision of business can be taken easily. It can be found that while
constituting any law in UK, the authorised panel need to follow complete procedure as the part
of duty. It is being found that there are several types of company which need to be registered as
per the guidelines of relevant law else legal charges are to taken. At last, it can be said that every
time it is not necessary to solve case through the procedure of court as there are many
alternatives which is helpful at the moment for everyone.

REFERENCES
Books and Journals
Berger-Walliser, G., Bird, R. C. and Haapio, H., 2011. Promoting business success through
contract visualization. JL Bus. & Ethics. 17. P.55.
Besley, T., 2015. Law, regulation, and business climate: The nature and influence of the World
Bank Doing Business project. Journal of Economic Perspectives. 29(3). Pp.99-120.
Bishara, N. D. and Westermann‐Behaylo, M., 2012. Law and Ethics of Restrictions on an
Employee's Post‐Employment Mobility. American Business Law Journal. 49(1). Pp.1-
61.
Buckley, P.J., Burton, F. and Mirza, H. eds., 2016. The strategy and organization of
international business.
Cq PressPollitt, C. and Bouckaert, G., 2017. Public management reform: a comparative
analysis-into the age of austerity.
Fitzmaurice, G.G., 2017. Some problems regarding the formal sources of international law. In
Sources of international law (pp. 57-80). Routledge.
Frank, J. and Bix, B. H., 2017. Law and the modern mind. Routledge.
Greenwood, J. ed., 2016. The effectiveness of EU business associations.
Halbert, T. and Ingulli, E., 2011. Law and ethics in business environment. Cengage Learning.
Hayden, G. M. and Bodie, M. T., 2012. The Bizarre Law and Economics of Business Roundtable
v. SEC. J. Corp. L. 38. p.101.
Johnson, L., 2012. Pluralism in Corporate Form: Corporate Law and Benefit Corps. Regent UL
Rev. 25. p.269.
Jones, S. R. and Lainez, J., 2013. Enriching law School Curriculum: The Rise of Transactional
Legal Clinics in US Law Schools. Wash. UJL & Pol'y. 43. P.85.
Kraakman, R. and Hansmann, H., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
Online
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