A Comprehensive Report on UK Legal System and Business Laws

This report provides a detailed analysis of the UK legal system and its impact on businesses. It begins with an introduction to business law, differentiating between the regulation of commercial entities and commercial transactions. The report then explores the structure of the English legal system, including the hierarchy of courts from the Supreme Court to the Magistrate Courts, and the binding effects of decisions at different levels. It also identifies the primary sources of law in the UK, including legislation, common law, and European Union law. Furthermore, the report examines the impact of company, employment, and contract law on businesses, highlighting key legislation such as the Company Law 2006, the Equality Act 2010, and the Employment Rights Act 1996. The report discusses the role of legislation, regulations, and standards in business operations, and their effects on the business environment. Finally, the report also mentions the importance of contract law in business transactions.

Unit 7

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY ONE.............................................................................................................................3
Structure of the English legal system.....................................................................................3
Sources of Law.......................................................................................................................4
Impact of Company, Employment and Contract Law............................................................5
ACTIVITY TWO.............................................................................................................................6
CONCLUSION................................................................................................................................6
REFERNCES...................................................................................................................................7

INTRODUCTION
Business Law is the body of law which deals with the business and commercial matters. The
business law is covered under two distinct areas, one the regulation of commercial entities in
accordance with the law and second regulation of commercial transactions. It is also known as
corporate law or commercial law (Aqifi and Emini, 2019). There are many legal entities from
sole trader to partnership, profit making firms to non- profit organisations and these are governed
by law and required not to practice in contrary to law. Thus, the report examines nature of UK
legal system accompanied by relevant law applicable to businesses.
ACTIVITY ONE
Structure of the English legal system
The United Kingdom consist three separate legal systems one each for England, Wales,
Scotland and Northern Ireland. The constitution of UK is derived from various sources some are
written, called statutory law while others are unwritten, includes conventions. In the structure of
English legal system, the decision of higher courts causes binding effect on courts below it.
Supreme Court is at the top of the hierarchy structure, also formally known as House of Lords.
The decisions causes binding effect until the Lord Chancellor issued the statement that former
decisions can be ignored if it appeared right to do so. Though the Supreme Court is the highest
court but the decisions made in European Justice of Courts led binding effect on all UK courts.
Further there are many committees and courts (European Court of Human Rights) whose
decision are persuasive but not causes binding effect on English Courts. (Grammond and Guay,
2021)
The Court of Appeal which is below the Supreme Court in the structure. The court splits
the divisions in two parts Civil and Criminal. The decisions in both the courts are binding on
courts lower to it. The Civil division is subject to exceptions of the binding effect rule as stated
in Young v Bristol Aeroplane Co. Ltd [1944]. In Criminal division, if court finds that the former
decision was made on the basis of misunderstanding of law then court is not bound to follow
such decision as in R v Greater Manchester Cororner ex p tal [1983]. Further the Divisional
Courts falls under category of three division of the High Court Division to which the jurisdiction
is appellate. These judicial bodies are bound by the decisions from the Supreme Court and Court

of Appeal under the doctrine of stare decisis. The High Court is above the divisional courts
which also binds the decisions with the exceptions stated.
Crown Courts handles the indictable offences (Serious criminal offences such as rape,
manslaughter), offences transferred or appeal from magistrate court, sentencing orders
transferred from magistrate courts. Even crown courts are bound to the decisions of superior
courts. The decisions derived from crown courts are persuasive not binding. Further Magistrate
Courts and County Courts do not bind any courts as the decision made by them are legal
reasoning which is generally based on the facts of the case. Thus, a court has power to overrule
the former decisions. In R v R [1992] where court changed the decision recognising rape within
marriage in order to reform the English legal system which is necessary in order to maintain the
faith and trust of people. In Context of the legal system many act has gone through law reform.
The Consumer Rights Act, 2015 aims to protect the consumers against illegal practices of
business owner (Khan and Javaid, 2018). Further creation of National Crime Agency, 2013,
Ministry of Justice, 2007 supports the recent legal reforms and development in the English legal
system.
Sources of Law
The sources of law in United Kingdom are Primary sources and Secondary sources
(includes textbooks, journals, legal sites, etc.). The primary sources are discussed below.
Legislation
Legislation are the acts of parliament i.e. law passed by the parliament. The UK
parliament has the only power to pass law which is applicable in all four countries. The UK
parliament consist of House of Commons and House of Lords. The legislation cannot be
repealed or amended by anybody nor has right to challenge them.
Common Law
The legal system in England and Wales as discussed above forms common law. Courts
has the power to create law in the way the statute is interpreted. The role of court is to clarify the
language or drafting of the statute passed by the parliament. Thus, interpretation of statute is
binding through legal system in accordance with the doctrine of stare decisis and is binding on
all lower courts by courts superior to them.
European Union Law

The United Kingdom being the member of the European Union allows EU Law to take
precedence over UK Law. In other words the decisions of European Court of Justice (ECJ) bind
all UK courts. The parliament is bound to ECJ rulings, such as decision involving the liberty to
prisoners by giving them voting rights (Grievson, 2019).
Impact of Company, Employment and Contract Law
It is clear that the main source of law is the legislation. The Parliament is considered as
supreme law making authority. At initial stage legislature created by parliament is bill. The
public bill is further brought by the Member of Parliament (MPs) and affects the public.
Whereas, private bills are brought by non-government MPs. The UK parliament consist of House
of Commons and House of Lords. Bill passes through several stages and is voted by both the
bodies before going to House of Lords and it becomes act on receiving Royal Assent. The
Common Law refers to as law emerges out of judicial decisions whereas in Statutory Law
principles and rules of law are put forth by the statute.
The three approaches of management used by organisations are:-
 Legislation: law making body
 Regulations: rules formulated by government or regulatory authority. These are
mandatory to carry out the legislation (Whittle and Simkiss, 2020).
 Standards: these are norms or principles establish by government in order to measure the
performances of the rules or practices formulated.
Company Law
The change in business law causes change in the way to operate business. The Company
Law, 2006 governs the rights, relations, companies, organisations and businesses. The law
formulates legal practice to conduct business. Salomon v Salomon Co. Ltd 1879, the separate
legal entity concept was evaluated. Lifting of veil as protection provided by law. Further rules
allow business to avoid conflicts. These rules help businesses to understand the practices which
need to be adhered. It helps in keeping up the business by paying taxes. The standards and norms
are maintained to continue ethical practice in the market. Duty of care is needed to eliminate
negligence. It set out the duties of the directors, shareholders and even simplified the
incorporation process of business. Thus, the law makes sure that the business acts agreeable in
nature and performs its obligations for which it is formed.
Employment Law

The employment law regulates the relationship between the business and employees.
Employment legislation raises firm’s labour cost and burdens the administrative. The UK law
devised range of recent law governing minimum wages, working time, parental leave, non-
discrimination and others (Lobo, 2019). Even creates safer environment for its employees to
work. The Equality Act, 2010, Employment Rights Act, 1996, Data Protection Act, 1998 are
some of the primary pieces is legislation. These causes positive impact on local business because
of their limited administrative resources and economic vulnerability.
Contract Law
The contract law helps in effectively formulating contracts between the parties. The law
helps in making an enforcing the agreements accompanied by remedies in case of breach. In
local business for every transaction contract exists and thus, contract law helps to enforce and
create these contracts by granting the rights. Further norms are maintained as the parties are
required to perform their obligations without violating law. The contract law ensures whether the
essential terms are present and also allows party to conduct the business confidently.
ACTIVITY TWO
Activity Two is discussed in PPT
CONCLUSION
The report concludes two activities, First activity evaluated the legal system in United
Kingdom and the relevant law applicable to businesses. It provided the supportive judgements in
accordance with the recent reforms and developments. Further the report determined the sources
of law along with the law making authority. Also how statutory and common law is applied in
justice courts are also discussed. Lastly the report determined the approaches of legislation,
regulations and standards along with the impact of business laws on local businesses.

REFERNCES
Books and Journals
Aqifi, B. and Emini, A., 2019. The System of Inheritance according to the Canon of Lek
Dukagjini (English Language). Ius Romanum, p.793.
Grammond, S. and Guay, C., 2021. Legal pluralism in Canada: The example of customary
adoption. Les Cahiers de la Justice. (1). pp.99-1090.
Grievson, O., 2019. Monitoring and controlling a smarter wastewater treatment system: a UK
perspective.
Khan, N.A. and Javaid, M.S., 2018. Innovation in Construction Technology in the UK,
Influenced by Accidents, Reduces Legal Risks. Const. L. Int'l, 13, p.25.
Lobo, H., 2019. Brexit–Some implications for UK waste management law and policy. Brexit: A
Way Forward, p.135.
Whittle, S. and Simkiss, F., 2020. A perfect storm: the UK governments failed consultation on
the Gender Recognition Act 2004. In Research Handbook on Gender, Sexuality and the
Law. Edward Elgar Publishing.