Business Law Report: Analysis of UK Business Law and its Impact

This report provides a comprehensive overview of UK business law. It begins by examining the various sources of law in the UK, including Acts of Parliament, common law, and EU law, and elaborates on the government's role in the law-making process. The report then analyzes how statutory and com...Read More

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Description about the various kind of source which helps to commence law in UK.............1
Elaborating the role of government during the process of making law.................................2
How statutory and common law is applied in justice court, using appropriate case study....2
Provide an evaluation of the effectiveness of the legal system in terms of recent reforms and
development...........................................................................................................................3
TASK 2............................................................................................................................................3
Illustration on how company, employment and contract law have the impact on business with
the help of using UK examples..............................................................................................3
Difference between legislation, regulation and standards, leading to the analysis of their
potential impact upon business...............................................................................................4
TASK 3............................................................................................................................................5
Carefully explore on different types of business organisation and they are legally formed.. 5
How those organisations are managed and funded?...............................................................6
Detail assessment on pros and cons on the basis of their formation......................................7
Critical review and an evaluation of the different types of business organisations...............7
TASK 4............................................................................................................................................7
Identification and recommendation of appropriate legal solution for resolving the range of
dispute.....................................................................................................................................7
Comparison and evaluation of the different sources of legal advices and support................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law is the law which tells about the rules and policies which are to be
considered by any of the business organisation. It is one of the most important law because it
covers the whole commercial sector of any of the nation. It is important for any of the business
organisation that how they implement the policies of mercantile law in their business
organisation. When it comes to file there are lots of things that are needed to be covered starting
with the number of sources of law in UK. Government role will also be discussed for
constituting any of the law. The discussion will be followed by impact of branches of business
law on any of the UK company. Then file will reflect about formation of legal business with their
pros and cons. The file will be concluded by completing task 4 were legal solution will be given
to the disputed party in which scenario will be created so that better results can be obtained.
TASK 1
Description about the various kind of source which helps to commence law in UK.
It has been found that none of the country can be run unless and until they constitute law
and for that various sources are required if nation or country covers large area. In context of
Great Britain, they are required to use number of sources so that they can commence any of the
law in their country. Number of sources has been described below to understand it in detail. Act of Parliament: the main source of UK whenever law is required to be commenced is
Act of parliament because they constitute any of the law after find the actual requirement
of it. They have the lengthiest process whenever they show their involvement and even it
is one of the most expensive process. In this source House of Lords and House of
Common need to show their active participation (Vagts and et. al., 2015). Common law: The law which is commenced after considering the situation in which
judges have to take decision is known as common law. It is the law which is also
applicable for every single individual. Common law do not have the right to overrule the
decision of Act of Parliament or EU law and if it is found then it will be counted as null
and void.
 European Union law (EU Law): The most powerful body of UK whenever they want to
constitute law is EU law because they make the most number of laws within UK. It is
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said EU law mainly covers the commercial sector but it also do have the impact on other
area also.
Elaborating the role of government during the process of making law.
In any of the nation ruling government is the one who have to play the most important
role because they only know what are the requirement of public for there betterment. In context
of UK there are number of laws have been enforced by the different ruling government but still
the process which is being continued since very long (Schwartz and et. al., 2013). Government
have to show their participation by following the complete procedure were it starts from first
reading. Bill is drafted in it in which member check the points which are included in the file. It is
said that they are required to go in general about the bill. In second reading, members do check
the bill that what is their requirement and should it be sent ahead for constituting law. Committee
stage comes into the game when bill gets approval from second reading. It is said that member of
committee stage need to check the for so that amendments can be done if any requirement.
Report stage need to do the amendment if order is passed from the working committee stage.
After completing the process of report stage, bill is to be presented in front of the member of
third reading where they are required to take the permission of member that whether they do
agree on bill or not and if not then why? If majority agrees on the bill, then it is required to be
forwarded. The House of lords is required to check the bill ask all the peer member about their
point of view on that particular bill. If members do agree on the bill then they are allowed to send
to sent the bill for further processing which is known as Royal Assent.
How statutory and common law is applied in justice court, using appropriate case study.
There are number of cases which is entertained in justice court but they have the huge
responsibility which they are required to fulfil because single mistake might create lots of
problem for the person who is actually not a defaulter and because of justice court takes the help
of statutory law and common law (Schulman, Moscow and Lesser, 2017). Statutory law have
everything written in it which says that what should person/organisation and what they should
avoid. If they are unable to avoid that then legal actions are taken on that individual. Justice law
do take the same advantage because they don't have to worry that what decision should be
declared. Common Law is quite different in justice court because judges do get the option where
they can declare decision of own due to which it is also helpful for them. The reason to allow
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justice court to declare decision of own because everything is not possible to be written in
legislation and to cover up those weak area justice court have been given additional advantage.
Case law: Mark v Jonathan, 2006
Judgement: It was the case in which common law was applied because there were no provision
which were written in the legislation body.
Case law: James v Peterson, 1998
Judgement: It was one of the easiest case for judges because they simple have to declare their
decision by considering the law book where remedies are written for any of the default.
Provide an evaluation of the effectiveness of the legal system in terms of recent reforms and
development.
The legal system always plays the crucial role because they do know that how country
can be benefited. In context of UK law, it has been found that number of areas have been
covered by their legal system due to which people have to suffer from very rear problem. Each
and every day it has been found that changes is being done due to which it is effective too. The
main benefit that people do get from this legal system is that it is stable and because of that long
term policies can be easily formed by any of the organisation (Besley, 2015)
.
TASK 2
Illustration on how company, employment and contract law have the impact on business with the
help of using UK examples.
Various types of laws are there and they have different types of nature and it is important
to work as per the laws and policies because that is helpful from context of organisation. This
laws and policies do have the impact on organisation were some might be positive and even
some of them can be negative too so it is important that how well they are being treated or
understood. Here, impact of company law, contract law and employment will help to understand
that what can be their impact on business organisation (Park, 2012).
Contract law: The law which deals with terms and condition and all those agreement is
known as contract law. It has positive and negative impact on any of the agreement. If valid
contract is required to be formed then it is important that contract should fulfil some of the
condition like offer and acceptance is most, mutual consent is compulsory, written agreement
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must be there because it contain the prove which helps to justify the matter in court if anything
happens wrong. Let's take the example of British Petroleum to know what can be the impact of
contract law on their business. Firstly, they will be able complete their task because it will not
allow them to breach the contract and if anyone does that then company can be sued and even
sue other. The negative impact of contract law will make them sure in any of the situation they
have to complete the task on time (Picciotto and Mayne, 2016).
Company law: It is said that company law is one of the most powerful law when it comes
to business sector because every single guidelines is to be considered of company law. When any
of the organisation doesn’t work according to guidelines they are penalised by different charges.
Every registered falls under the category of company law. there are various kind of impacts can
be seen wherever company law applies. In context of British Petroleum, the fist impact of
company law on organisation is that they are unable to work beyond the Memorandum of
Association and Article of Association and if they do then they have to follow lengthy process
which consumes time and money both.
Employment Law: In this law everything is related with employer and employee that
how they both should have a relation with each other. Various policies are required to be
considered in employment law. This law also does have positive and negative impact were it has
been shown that how company required to treat their employee’s. In context of British
Petroleum, the positive impact of this law is that their employees are required to complete
working hour each day and when it comes to negative they need to distribute equal amount of
wages to employees.
Difference between legislation, regulation and standards, leading to the analysis of their potential
impact upon business.
Every terms have different meaning but they all are interconnected as this are the term
which has been derived the government bodies. Legislation is the body of government which
have the responsibility to commence law whenever it is necessary. It is fundamental source of
any of the nation (Buxbaum and Hopt, 2013). Regulation is also one of the body of government
which say that how is required to be done. Legislation do commence law but every people do not
have the knowledge about it and for that regulation do plays the necessary role. It is necessary
that every regulation should be followed. In the end, Standards are the most important thing
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because it tells that what should be the minimum standard that need to be maintained and if
anyone is unable to maintain the standard then legislation and regulation do come into play.
TASK 3
Carefully explore on different types of business organisation and they are legally formed.
Number of organisation can be formed but the things which are required to be focus that how
a person is willing to invest their assets. The thing which is necessary to be focus while
incorporating organisation is that how company can be legally set up. Here, Company law do
have the huge importance so investor must have the knowledge about it else they need to make
sure that they have a legal advisor who can help them out in any of the particular case (Posner,
2014). Some of the types of organisation have been categorised below with detail process that
how they can be legally formed.
Sole Proprietorship: The form of business where small amount of money is required to be
invested is known as sole proprietorship. The first thing which need to be focused in this this
type of business is that how investor can earn money by investing less amount of money. For the
process of incorporating sole proprietorship there is no such requirement which need to be done
because they do not have to conduct any of the meeting, even no need to prepare annual account.
This is the reason that there is legal process to form sole proprietorship.
Partnership: Business organisation in which number of people do engage together for the
common purpose to earn certain profit is known as partnership. Lots of advantages are being
given to any of the business organisation. It is said that whenever in UK partnership is required
to be formed, some of the legal process is required to be followed in which it starts from the
process of partnership deed which need to be deposited in the Companies House (Frank and Bix,
2017).
Corporation: The form of business in which various laws and regulation is required to be
considered is known as corporation. It is important for any corporation that they follow the rules
and regulation because penalties which can be imposed on corporation is much higher than other
form of business organisation. The process which need to be followed by corporation is bit
lengthy as number of formalities are required to be followed.
o Beginning with selection of name and address.
o Choosing the person who will work on the capacity of shareholder and director.
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o Then, preparing MOA and AOA from which it is decided that what organisation will do
and what are their main agenda.
o All this documents need to be deposited within the Companies House.
Limited Liability Company (LLCs): the form of business organisation in which investor have the
option to incorporate partnership and corporation both. Investor do gets various option as offers
and priority is given to LLCs because government wants more number of organisation within
their country so that more revenue can be generated (Scholes, 2015). The legal way to
incorporate LLC is
o Decided the member who will be the part of organisation.
o Working capital which will be used to use setup the business
o MOA and AOA should be drafted.
o After all this, all the legal documents must be deposited to the Companies House.
How those organisations are managed and funded?
Managing and funding is crucial task because that decided that how long a business can
survive in the market. The main role in any of the business is played by investor but alternate
sources are required because that decides that how organisation perform in future. Detail
explanation has been done of various business by defining that how they can be managed and
funded in future.
Sole Proprietorship: The person who have commenced the business have the
responsibility to manage the fund. When it comes to funding, few option are only available with
it but mostly it is said that investor themselves required to introduce their own personal assets if
fund is required.
Partnership: Approved partner take the responsibility to manage the business where as
they can apply for various loan from financial institutions if fund is required (Bently and
Sherman, 2014).
Corporation: Directors, Company Secretary, Shareholders take the responsibility to
manage the business. Whereas multiple option is available with the company if they want
increase the working capital. Firstly, loan is one of the option, issuing fresh share, debenture can
also be issued and many more.
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Limited Liability Corporation: The LLCs also have number of option because
organisation can be managed by manager and even investors too. Whereas credit card, loan from
banks, introducing additional capital is the option to raise capital.
Detail assessment on pros and cons on the basis of their formation
Name of the Company Advantages Disadvantages
Sole Proprietorship Investor himself enjoys the right
on profit which they will earn.
Company will never have the
option to sue on its own name.
Partnership More ideas can be introduced. Chances of conflicts are high.
Corporation Perpetual success is available. Every steps must be taken
after considering company
law.
Limited Liability
Company
Liability is limited. New investor cannot be
introduced.
Critical review and an evaluation of the different types of business organisations.
Number of organisation can be formed where preference is always given to the investor. To
influence more investor government is trying to give more felicity so that more number of
business can be incorporated. Still it is necessary to understand many of the organisation are not
satisfied because liability is unlimited in it and the greatest example of it is sole proprietorship
(Shackelford, 2014). Various offer is being provided to the investor which is one of the positive
sign for new commerce. Overall more changes are required in business sector for the better
progress in future.
TASK 4
Identification and recommendation of appropriate legal solution for resolving the range of
dispute.
Case scenario: There was an agreement between ABC Ltd and Salomon that Salomon will
not leave the company till 2015 but due to some circumstance he has to breach his contract. The
reason to breach the contract was that in village her mother was sick and one of the responsible
person should remain with her. But, company is not trying to understand any of the situation and
they are willing to file the case against Salomon (Allen, Kraakman and Subramanian, 2016).
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Alternative Dispute Resolution
One of the best technique in modern era is Alternative Dispute Resolution because helps to
sort out the legal matter without going to the court. It is necessary that dispute should not be of
criminal process. It is said that ADR process is one of the simplest way to deal with issues (What
Is Alternative Dispute Resolution (ADR) – Mediation & Arbitration. 2018). Various ways are
available in ADR process to solve the dispute and they are:
Mediation: The simplest way where various suggestion can be given is known as
mediation. Mediation suggest his client that how they can resolve the problem (Dolzer and
Schreuer, 2012).
Conciliation: It is said that conciliation process is one of the advance way to solve the
dispute where third person’s motive is to meet out the term and condition of the agreement. Most
of the person do relay on conciliation process because suggestion is the best way to solve the
issue.
Arbitration: The most reliable process for resolving issue is arbitration because decision
should be followed which is given by the arbitrator. Most of the complex issues are solved in
arbitration (Crane and Matten, 2016).
As per the given case, there is the requirement to solve issue which can be done through
the process of Arbitration because it is found that contract has been breached in it and even it is
necessary that legal decision should be declared so that same problem will not be raised again.
Comparison and evaluation of the different sources of legal advices and support.
Comparison can be done among the various method which are helpful in solving the issue.
This method is helpful because it does save the time and money which is required the most in
present scenario. Even it is important that other should also be given more option and priority
because if their decision will be legal binding then people will get more option to solve their
issue. It can be said that still it changes need to be done it this process so that more effective
results can be achieved in future (Craig and Campbell, 2012).
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CONCLUSION
It has been understood from the above report that business law is important field through
which knowledge of business can be easily enhanced. UK have one of the finest legal system
because. Different branches of business law have different impact on business organisation so all
the legal organisation must fulfil the requirement of it. Organisation is required to be formed
legally by following the legal process. Corporation is among one of that organisation which have
the maximum number of option to earn profit. ADR process can be useful but still most of the
people don’t have the deal knowledge about it so it necessary that more education program
should be conducted related to ADR process.
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REFERENCES
Books & Journals
Allen, W.T., Kraakman, R. and Subramanian, G., 2016. Commentaries and Cases on the Law of
Business Organizations: 2016-2017 Statutory Supplement. Wolters Kluwer Law &
Business.
Bently, L. and Sherman, B., 2014. Intellectual property law. Oxford University Press, USA.
Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the
World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-
120.
Buxbaum, R.M. and Hopt, K.J., 2013. Legal harmonization and the business enterprise:
corporate and capital market law harmonization policy in Europe and the USA (Vol. 2).
Walter de Gruyter.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dolzer, R. and Schreuer, C., 2012. Principles of international investment law. Oxford University
Press.
Frank, J. and Bix, B.H., 2017. Law and the modern mind. Routledge.
Park, W.W., 2012. Arbitration of international business disputes: studies in law and practice.
OUP Oxford.
Picciotto, S. and Mayne, R. eds., 2016. Regulating international business: beyond liberalization.
Springer.
Posner, R.A., 2014. Economic analysis of law. Wolters kluwer law & business.
Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
Schulman, S.H., Moscow, C. and Lesser, M.R., 2017. Michigan Corporation Law & Practice.
Wolters Kluwer.
Schwartz and et. al., 2013. Health law: cases, materials and problems. West Academic
Publishing.
Shackelford, S.J., 2014. Managing cyber attacks in international law, business, and relations: In
search of cyber peace. Cambridge University Press.
Vagts and et. al., 2015. Transnational business problems. West Academic.
Online
What Is Alternative Dispute Resolution (ADR) – Mediation & Arbitration. 2018. [Online]
Available Through: <https://www.moneycrashers.com/alternative-dispute-resolution-
adr-mediation-arbitration/>
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