Impact of UK Law on Business Operations: A Comprehensive Report

Desklib provides solved assignments and past papers to help students succeed.

The Legal System and Solutions
1

Executive Summary
In this study, the various the structure of the legal system of UK has been analyzed and various
aspects of the common law system have been discussed. The various nature of the legal system
of the UK associated with Civil law and parliamentary conventions is also been discussed in the
assignment. Moreover, in this assignment, the process by which the organizations of UK can
perform effectively and solve the discrepancies in the business process has been analyzed with
the help of the law system of UK.
2

Table of Contents
Introduction......................................................................................................................................4
LO1 Explain the nature of the legal system.....................................................................................4
Different sources of law...............................................................................................................4
Application of statutory and common law in the UK courts...........................................................5
LO2 Illustrate the potential impact of the law on a business...........................................................6
Impact of law on business............................................................................................................6
The usefulness of present developments along with reforms......................................................6
Dissimilarities between regulations, standards, and legislation..................................................8
LO3 Examine the formation of different types of business organizations......................................8
Configuration of various sorts of business organizations............................................................8
Private Unlimited Company..........................................................................................................11
Management and funding of business organizations.....................................................................11
Benefits and Drawbacks of several forms of Business Organizations......................................13
LO4. Recommend appropriate legal solutions to resolve areas of dispute....................................13
Alternative Methods for Dispute Resolution.............................................................................13
Several Sources of Legal Advice...............................................................................................14
Reference List................................................................................................................................16
3

Introduction
The law system of the UK can be divided into mainly two major segments namely civil Law and
criminal law. The legal system of this country is one of the oldest legal systems of the world and
it is based on the principles of most common law systems of the earth. The structure of the
legislation system of the UK is based on specific divisions and the Supreme Court is the highest
court of law. Under the Supreme Court of this country, there are many subordinate courts and
senior courts.
LO1 Explain the nature of the legal system
Different sources of law
The legal system of the UK is based on various sources namely Primary sources and secondary
sources. The secondary sources for the legal system of this country are various anecdotes and
legal opinions. On the other hand, the Primary sources for the UK legal system are various
business laws and precedents.
Common Law and equity
Common law and equity is a type of system where a court can pass various preventive
regulations for obstruction of work and any type of work that can happen in the future. The UK
legal system follows the common law and equity process and it is supervised by the Chancellor
of the Territory (Lynk, 2015).
Civil Law
Civil law is another important facet of the legal system of the UK. It is based on various rules
and regulations that are civil and do not entail any degree of criminality and grievances. The
important concepts associated with the civil law of the UK are the law of Tort and other revenue-
based regulations (Dwyer et al., 2016).
Parliamentary Conventions
4

It is an important part of the legal system of the UK and takes into consideration of various
arrangements and rights that decide in what ways an organization can behave. These primary
conventions are unanimous and they guide the effective running of the organizations.
Common laws and statutes
These are the collective accumulation of various judicial decisions and judgment processes based
on constitutional beliefs and it helps to speed up the delivery system of the legal process of the
UK. Thus, the common law and statutes are applied in various new cases and helps to influence
the thought process of the jurists over a period.
Application of statutory and common law in the UK courts
The statutory and common laws in the UK courts have created a landmark for judgment for
various systems of the UK. These are used over a variety of aspects over the systems of the
Legal process of the UK even today (Burridge and Gill, 2017).
Application of statutory laws can be explained in the case of De Keyser's Royal Hotel and it
created the pathway for the application of pre-war statutes in recent times (Karran and
Mallinson, 2017). In this case, several officers of the crown entered into the Hotel Premises and
they stated that they are acting as per the regulations of the constitution of this country and
following the Realm Act, 1914 (Haigh, 2018). However, in this case, the owners of this hotel
argued with the officers of the crown that they are acting according to the Defence Act, 1842.
Finally, in this case, the owners won and they were provided various compensation by the crown
(Hertogh and Kurkchiyan, 2016). This case created the pathway of formulation of various legal
regulations of the UK that are used today (Mai, 2016).
Another important application of the statutory and common laws in the courts of the UK can be
found in the case of Donoghue Vs Stevenson (1932). In this case, a Snail has been found in the
beer bottle and for this reason, the Donoghue claimed compensation in the court. Finally, in this
case, the Donoghue won and they received compensation for the expenses required for treatment.
This case has paved the way for the creation of negligence Laws in the UK (Cath et al., 2018).
5

LO2 Illustrate the potential impact of the law on a business
Impact of law on business
UK regulations have many impacts on the business process of the country. Most of the
organizations of this country have to follow different types of regulations like Employment laws,
competition-based regulations, contract-based regulations, and company laws.
Employment Law:
Employment regulations associated with the Legal System of the UK are associated with the
grievances of the employees and the steps to tackle various problems that the employees of an
organization can face in the workplace. Employment Rights Act, 1996 and the Pensions Act,
2008 provides proper guidelines to the organizations of the UK to solve the grievances of the
employees.
Company Law
The Companies laws are associated with the concepts of involvement of the employees of an
organization in a structured way so that they can perform the work properly. Moreover, these
laws help to solve any type of discrepancies that can work in the workplace of the organizations
of the UK and apply the concepts of corporate governance. The Companies Act, 2006 provides
various types of guidelines about the effective ways by which the organizations of the UK can
effectively treat their employees.
Competition Law:
The Competition Laws of the UK focuses to prevent various unhealthy based competitions that
can occur in the process of enforcement of free trade and this process, it helps to foster the
economic growth of the country. The most important competition laws associated with the legal
system of the UK are Competition Act, 1998 and The Enterprise Act, 2002.
The usefulness of present developments along with reforms
In the present time, this can be seen that the legal system in Britain has been witnessed of various
changes along with amendments. Besides, this can be seen that all of these changes in the legal
system are taken place to make sure that the judiciary becomes robust progressively. Besides,
6

this is helpful to reduce the degree of ambiguity along with the involvement of cloudiness
(O'Brien et al., 2017). In this regard, it can be seen that changes are taken place in two places in
which one is under the government of Blair and the second being the government of Cameron. In
this regard, this can be revealed that primary changes, which are taken place, can be considered
as the creation of the ministry of justice. Besides, this made the replacement of the department
for the reason of constitutional affairs. This can be seen that it clubbed different bodies in the
government along with agencies under only one department. The prime aim for this is to enhance
the coordination along with streamlining the whole procedure. In addition, this can be revealed
that there is also one other very significant change, which needs to be mentioned (McBarnet,
2019). That change was the development of the legal services commission. This can be
considered as one of the landmark adjustments, which enabled the speedy delivery of the
information along with justice toward the poor and most importantly toward the underprivileged
people. The Tribunals Service along with the Judicial Appointments Commission was built as
well. In addition, it made more efficient all of those different procedures in the future with the
judiciary to a large degree. The introduction of the private sector within the services of
government can be revealed as one of the prime steps. The reasons behind this were to apply to
private prisons. Apart from that, the first private facility came about in the year of 1992. The
services, which are based on the experiment, can be told as the improvement to the same. In
addition, this plays a major role to decrease the load on the government. This could be found at
that time that the number of prisoners was increasing heavily in the United Kingdom. The
government of Cameron saw several improvements, which came about. This is happened with
the very significant being the beginning of the College of Policing, the establishment of the
Family court, the Agency of the National Crime, restructuring the national court and many more.
In this regard, this can be seen that the use of all of these different reforms was widespread along
with extensive to a large degree. In addition, this brought the general sense of the commitment
toward the provision of justice in a well organized along with a timely way. This plays a major
role in order to make sure that the quality of the consumer is good. The technologies of
information and communication engaged within the procedures were restored as well very
significantly (Hansmann and Kraakman, 2017). In addition, the current solutions were applied in
several very important reasons. In this regard, this can be revealed that all of the current solutions
were very useful and this can assist to make the process more efficient. Along with these are
7

advantageous in order to decrees all of the existent barriers. This can be revealed that these
solutions play a major role to develop the very useful along with strategic channels regarding the
communications with the judiciary. In this regard, this can be seen that all of the changes
prioritized on the application of highly specialized courts and it could boost the judiciary in the
future to target the challenges in a well-organized manner. The concepts of the methods of
alternate resolution along with the creation of the new avenues because of the adequate funding
of justice could be considered as one of the very important resultant outcomes. These are the
result of those changes, which are taken place in the legal system of Britain. In addition, this was
seen that these changes brought a sense of equity between the legal systems along made courts.
Judiciary was obtainable to each of the individuals and in this regard, the social status regarding
the amount of wealth, which they had been capable to build up, was not considered.
Dissimilarities between regulations, standards, and legislation
The laws, which are followed in the United Kingdom can be possible to break down into the
primary legislation, standards and regulations. In this regard, this can be seen that legislation
refers to the statues, which have been ratified with the help of an authorized body or an agency in
the United Kingdom. Apart from that, this can be seen that there are mere guidelines along with
directive statements, which are issued generally by the government in general or the specific
ministry. This becomes possible with the purpose of making sure a certain line of action. In
addition, this can be seen that it can prevent a negative and potential obstructive action, which
could be the reason for the damage for any organization or any individual. Standards can be
considered as completely dissimilar from the regulations and legislation.
LO3 Examine the formation of different types of business organizations
Configuration of various sorts of business organizations
Business organizations have different sorts of choices during the time of setting up the structure
by considering the legal provisions along with the regulations in the United Kingdom. The
classification can be made into two and those are unincorporated and incorporate (Forde and
Slater, 2016). Based on certain specifications, the organization can be possible to divide more.
Public Limited Company:
8

Public limited organizations are the business organizations, which are listed on public stock
exchanges.
Private Company Limited by Guarantee:
There is predetermined guarantee in the private company.
9

Private Company limited by Shares
The most common business firms that exist within the UK market as well as across the world are
private companies. These private companies have a uniqueness, which denotes that they are
limited by the shares (Bayern et al., 2017). The reason these organizations are referred to as the
private limited companies are that they are limited by the specified shares. It is a crucial factor
that enhances the popularity of the organization. It is evident that the asses of the organizations
are above the company's operations and it cannot be re-modulated during the liquidation or
winding up of the scenario. The organizational structure is completely different from other
established companies as they are regarded as an individual legal entity from the respective
owners (Osei–Kyei and Chan, 2016). The personal economic status of the company is protected
as they have access to limited economic liability. This is to ensure that the company can fight
back when a financial crisis strikes. Limited liability is particularly suitable for a sole trader as he
is liable to get access to every resource of his organization.
The benefits offered by these companies are as follows:
Restricted economic liability refers to the stakeholders' private economy that is protected. These
are only ideal for organizations that are capable to increase their share values.
The private companies often select to sell those shares at any point in time so that additional
capital is raised. This helps the organizations to expand their business in other countries.
The companies have different authorities at a different level. However, the companies demand
one director who will take responsibility of the whole organization (Apan and Miff, 2016).
The sole proprietorship is another important aspect of these private companies. This means when
the owner dies, the company is transferred to another owner.
Once the company is registered, it gets protected and cannot be utilized by another organization.
The other limited companies are not legally permitted to use the name of another organization.
The private companies that are limited by shares allow strategic economic planning concerning
the tax. The profits gained are distributed according to dividends and salaries. This can be
regarded as the tax-efficient structure for the organization.
10

Private Unlimited Company
The companies which operate their businesses through unlimited liability are likely to face
significant risks in the long run. This is because the private assets of the directors are organized
in a ubiquitous manner. Certain companies prefer this kind of secrecy in business regulations.
This can range from an economical standpoint to non-demand regulations of audit (De Fontenay,
2016). The private companies operating through unlimited liabilities are not forced to proof their
aforesaid annual business reports. The authorization can take place through the Companies
House and this act in favor of the competitive culture of the business. Thus, it is recommended
that they must undertake regular financial and audit supervision.
Management and funding of business organizations
The investment, as well as management, can be accomplished within the business environment
by undertaking numerous measures. It is evident that all measures are not widely used by every
company and some take out the best for their business suitability. Crowdfunding is highlighted
as a significant measure that is utilized by the organizations that depend on the massive set of the
business operations that will help the business in its initial stages (Belleflamme et al., 2015). A
virtual reality headset manufacturing company called Occulus can be thought of as an example in
this context. This company used crowdfunding as an important method for its business
operations. The company has established itself as an innovative organization providing novel and
advanced solutions to its leaders. Currently, the organization has a million-dollar value over
other virtual reality organizations. The voluntary donation is another aspect of the revenue flow
to the company. This is because crowdfunding requires individuals to share their creative ideas
on both online as well as offline platforms. The company sets up its operations once the
voluntary contribution is made by the individuals. Crowdfunding has gained global acceptance
and the organizations are adapting to this kind of investment as it helps to scale up their business
operations.
Another trial and tested method in case of organization investment is the Venture funding. In
this context, the business owners of the owner of the business idea are exposed to a series of
investors (Zhou et al., 2016). This kind of investment depends on the investors' investment in the
organization so that huge capital flow is maintained by the organization through their funding.
11

This is considered to be the most significant part of the business as it helps to upgrade and in
scaling up of the business organizations. Alibaba group is regarded as an important example of
this strategy so that they can excel in the competitive business environment. The business was
started by Jack Ma along with his friends. They altogether invested in venture capital to grow
their business range. The money they took from the market was repaid within three years.
Through this effective strategy, Alibaba is considered as an important supply chain company
having operations over 130 countries.
The organizations have undertaken another important approach to the funding of the
organization. This is called private equity. This approach requires the special dedication of the
directors as a part of success (Bernstein et al., 2016). Amazon is an important example of private
equity. The organization was started in 1990s by Jeff Bezos. He started the company by
investing his savings that he had saved while he used to work at Wall Street. Through this special
strategy, the company started to grow and expand its business in almost every part of the world.
Amazon serves almost a million customers on a regular basis across the world.
12