Legal Framework Report: UK Law, Business Impact, and Disputes

This report provides a comprehensive overview of the UK legal framework, examining the division and sources of law, including custom, judicial precedents, and acts of parliament, and their impact on business operations. It analyzes the process of how an act of parliament comes into being and its implications for businesses. The report further explores the potential impact of law on various business aspects, such as employment rights, exemplified by the Pimlico Plumbers case. It also explains the formation of different types of business organizations, including sole proprietorships, partnerships, and limited liability companies, and the steps involved in setting up a company. Finally, the report recommends alternative dispute resolution methods to resolve legal disputes, offering practical insights into navigating the legal landscape for businesses.

THE LEGAL
FRAMEWORK

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Description on division and sources of law in the UK and define the problem associated with
UK system. How an act of parliament comes into being and its impact on business. ...............1
TASK 2 ...........................................................................................................................................3
Define the potential impact of law on business..........................................................................3
TASK 3............................................................................................................................................5
Explanation on formation of different type of business organisation.........................................5
TASK 4............................................................................................................................................6
Provide recommendation on the legal solution to resolve the area of dispute. ..........................6
CONCLUSION................................................................................................................................6
Hamilton, 2018 Hatch, 2018 Park and et.al.,2018 Rahman, Qahar and Qamar, 2018 Singer,
2018 Wallensteen, 2018 What is Alternative Dispute Resolution?. 2018.REFERENCES.............7

INTRODUCTION
The legal framework is the kind of doctrine that is associated with set of rules, procedures
steps and test that established through precedent in common law (Hamilton, 2018 ). Thus, it is
system of rules that society and government develops in order to deal with crime, business
agreements and social relationships. This means the principles and regulation established in
community by some authority and policies recognized and enforced by juridical decision. The
present report will look upon business activities of Pegasus, it is firm set up by Jay and Alex.
They have tied up with Amazon and it is their major customer. Furthermore, the various
activities has to be covered as nature of legal system, potential impact of law on business,
formation of differ type of business and appropriate legal solution to resolve areas of dispute.
TASK 1
Description on division and sources of law in the UK and define the problem associated with UK
system. How an act of parliament comes into being and its impact on business.
English legal system-
The English legal system is comprises of criminal and civil law. It refers to procedure or
process for interpreting and enforcing the laws. The purpose of legal system is to provide
systematic, orderly and predictable mechanism for resolving disagreement between the legal
authorities (Hatch, 2018 ). In the common law system, judged are obliged to make the
obligations so that all things can be done in better mode. With help of it, all legal procedure are
to be done in better mode. Thus, the nature of legal system as-
Division- Law is the system that are created and enforced systematically and it is must be
divided so that all proceeding can be done in systematic mode. These as are-
1. Civil law- The civil law is the term that covers the areas as contracts, negligence, family
matters, and land law. This is the law that works as to set out the rights and duties of the
individual both with the help of legislation and with the help of common law.
2. Criminal law- This law works as to ensure the every citizen so that they can know the
boundaries of acceptance in the UK. If an individual breaches the criminal law It is the
term that perceived things as threatening, harmful and that all will impact over safety and
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morale welfare. Thus, criminal law will be inclusive of punishment and rehabilitation of
people who uses to violet thins kind of laws (Park and et.al.,2018 ). This is the body of
law that deals with that kind of conduct that considered to harmful to society.
Sources of the law
The sources of law is the origin of law that helps to have the understanding of the
objectives. Thus, legal power of the law are enacted by the parliament, state legislature and
territory laws. Thus, source of law are defined in following presented manner as are-
Custom- From the ancient time, it is one of the oldest source of law. Thus, customs were
practices by the habitually and violation of customs will be disapproved and punished by the
society. In addition to it, political institution of the people have the responsibility to work in
order to maintain peace, law and order (Rahman, Qahar and Qamar, 2018 ). In this, the enforcing
law based upon the custom and traditions. However, the custom are indeed the rich source of
law.
Doctrine of Juridical precedents- This is decision of the court used as the sources of the law in
terms to frame future decision making. Thus, the main aim is to stand upon the decisions and
with help of which precedents are authoritative and binding and this must be followed. However
the doctrine of precedents is the kind of the most rigid doctrine.
Juridical decision- This is also one of the important source of law. It is responsibility of the
court to perform as to interpret and apply laws to the specific cases. In this, courts settle the
disputes in front of people. The decision of the courts and juridical decision are binding on the
parities. In this, the lower courts can settle their dispute with the assistance of the juridical
decision.
Equity- This is the term that put major consideration over fairness and sense of justice. Under
this, it is also the essential part of source of law. Under it, judges interprets and apply laws to the
specific cases. The judges being dependent on the equity and in accordance with sense of fair
play and justice (Singer, 2018 ). In addition to this, equity is the term that used to provide relief
to the aggrieved parties and this kind of the equity act as the part of source of law.
Act of parliament- Under this, law creates the new or bring changes in the existing law. The
legal authorities are very responsible for bringing laws into force and after that it must be passed
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by the parliament. Under this, parliament is not responsible for execution of legislation, the act
will be considered as bill and that must be approved by both houses as house of common and
house of lords. Thus, the bill will go through with the help of following steps to become law as-
 First reading- At the initial level, bill arrives.
 Second reading- At this step, the debate will be undertaken on purpose and key areas of
bill.
 Committee stage- Under this, the detailed line by line scrutiny of the text with
amendments and at this it is need to be decided that whether to make changes or where
not.
 Report- Under this, amendments are debated and further votes take place so that there can
be better identification to decide that in which area changes must be brought.
 Third reading- It is tidying up the stage. This is the only final chance in which
amendments can be done in proper mode.
 Royal assent- At this level, both houses must be agree on the final content. To make it
proper the bill must be approved and it can be possible to become a law or act of
parliament.
Problems associated with UK legal system-
 The UK has an unwritten constitution.
 The legal system of the Britain is adversarial in which the judge and jury are entirely
neutral.
 UK uses the common law system and it has also the dualist approach to internation law.
 In the UK, parliament is the supreme legal authority in that law can create and end by
law.
TASK 2
Define the potential impact of law on business.
Self employed- This is the term in which an individual work for himself instead of
working for the employer that pays the salary and wages. Under this, individual earns the his
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income with the help of conducting the profitable operations from entity that he enables directly.
As per the jurisdictions self employed person can have the special tax filling requirements
(Wallensteen, 2018 ).
Employee- This means individual who uses to work for part time and full time under the contract
and that must be written, express or implied and the right and duties can be recognised in better
mode. This can also be called as worker.
Case summary of Pimlico plumber case-
Grey smith, who has worked in the Pimlico for the period of six month and told in the
court that he was entitled to have the employment right such as holiday pay. He has signed the
agreement in which it is clearly stated that he is independent contractor of the company. After
working of six years, he suffered with heart attack and decided to have reduction in his working
days from five to three. The plumbers refused and terminated the agreement with him. Therefore,
Mr Smith brought claims for wrongful and unfair dismissal, sick pay, holiday pay arrears of pay
and disability discrimination.
Employment rights-
The employee are also governed with the number of the employment rights and this are defined
in the following manner as are-
 Minimum wages 2010- This is the right of the work to get the equal amount of the wages.
The worker must be protected against the unlawful deduction from wages.
 Statuary sick pay- The independent contractor also has the right to have sick leave and
this must be paid. However he has the same right as normal employee are getting in the
enterprise.
 Holiday pay- The independent contractor also has the right to have the holiday pay same
as the permanent employee in the enterprise. Any kind of the work full time, part time,
casual and agency he has the right to get the holiday paid.
In the case of pegasus, they have hired the driver to drive the branded vans in this he was
working as independent contractor. Therefore, he was not getting any leave and as per the case of
Pimlico the driver in Pegasus is entitled to get the leave and wages equally.
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TASK 3
Explanation on formation of different type of business organisation.
The jay and Alex advised in term to set up the registered company. There are different
types of business organisation and this are defined in the following manner as are-
Sole proprietorship- This is simplest business form in which one can operate business
effectively. They can operate their business function under the name of its owner or can do
business under the fictitious name.
Partnership- The partnership is the business that can be created with the help of two or more
person. In this, the partnership is formed when two or more person engage in the business
activities in order to pursue the profits (Hamilton, 2018 ).
Limited liability company- It is the kind of hybrid business form. This is the term that will
combines the liability protection of a partnership. Thus, it will be easy to offer the liability
protection to its owners for the liberalities and debts.
Legal personality-
This means the corporation is the artificial person and it is distinct from its members.
Thus, they have right to sue and to be sued and can enter into the legal protection. It has separate
legal entity.
Salomon vs Salomon in this they have got the status of corporate legal entity and thus, they get
the legal entity in front of legal authorities.
Step to set up the company-
To set up the following things are taken into the consideration as are-
 Choose the name of company.
 The company address has to be selected.
 Appoint directors and a company secretary.
 The shares and shareholders.
 To get register in the memorandum and article of association.
 Register the company.
 To get register in corporation tax.
Role of directors-
The role of director as to set the vision, mission and values to guide the employees in its current
operation and future development.
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 To set the strategy and structure.
 The delegate authority to the management, monitor and evaluate the implementation of
policies and strategies of business plan.
 The director must be act with the due skill and care.
 He must be the person who should consider the interest of the company.
TASK 4
Provide recommendation on the legal solution to resolve the area of dispute.
The Alternative Dispute Resolution is the process that is helpful for settling dispute
without legislation and it can be done with the help of mediation, arbitration and negotiation.
This is the procedure that is cost effective an d more expeditious (What is Alternative Dispute
Resolution?, 2018.). It will be helpful in order to results in litigation, divorce action, personal
injury impose and high profile labour disputes. It is collaborative and allows parties to come up
with the creative solution that must legally allowed to impose.
In the case of pegasus they can also undertaken the arbitration process as it is similar to informal
trial in which third party uses to hear the each side of the parties and parties may be agree to gave
the decision on that can be binding and non binding. Under it, impartial person will have the
right to resolve the dispute by hearing the each side.
CONCLUSION
From the above summing up report it can be concluded that law and legislation helps to
conduct the business activities in the proper manner. Legislation is the law and that is enacted by
the such as parliament and legislature. In this report the business activities of the Pegasus has
been taken into the consideration, it is firm set up by Jay and Alex. They have tied up with
Amazon and it is their major customer. Furthermore, the various activities have been covered as
nature of legal system, potential impact of law on business so that the activities can be done in
better mode. Lastly, formation of differ type of business and appropriate legal solution has also
been covered to resolve areas of dispute.
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Hamilton, 2018 Hatch, 2018 Park and et.al.,2018 Rahman, Qahar and Qamar, 2018
Singer, 2018 Wallensteen, 2018 What is Alternative Dispute Resolution?.
2018.REFERENCES
Book & Journal
Hamilton, G.G., 2018. Culture and organization in Taiwan’s market economy. In Market
Cultures. Routledge.
Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Park, N.K., Martin, X., Lee, J. and Mezias, J.M., 2018. Effects of functional focus on bounded
momentum: Examining firm-and industry-level alliances. Strategic Organization.16(2).
pp.167-191.
Rahman, S., Qahar, A. and Qamar, N., 2018, June. Resolution of Land Rights Conflict
Resolution of Customary Law Community at Foreign Investments Company. In Journal of
Physics: Conference Series. IOP Publishing.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal system.
Routledge.
Wallensteen, P., 2018. Understanding conflict resolution. SAGE Publications Limited.
Online
What is Alternative Dispute Resolution?. 2018. [Online] Available thorough:<
https://hirealawyer.findlaw.com/choosing-the-right-lawyer/alternative-dispute-
resolution.html>.
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