Business Law: UK Legal System, Regulations, and Case Study Analysis

This report provides a comprehensive overview of the UK legal system and its impact on businesses. It begins by presenting the legal system and different sources of law, including primary sources like legislation, case law, and European Union law, and secondary sources such as legal encyclopedias and law journals. The role of the government in making law is also discussed, along with the differences between common and statutory laws. The report then describes the strengths and weaknesses of the legal system, highlighting the importance of precedent and the potential for rigidity. Key legislation, regulations, and standards that a new business must adhere to are outlined, including company registration, insurance requirements, and data protection laws. Furthermore, the report delves into specific laws such as English contract law, the law of torts, the Copyright Act 1988, and employment law. The second part of the report includes case studies related to business law, providing legal solutions and justifications for each case, demonstrating the practical application of legal principles in a business context. This document is available on Desklib, a platform offering study tools for students.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Part A...........................................................................................................................................3
Presenting legal system and different sources of law..................................................................3
Describing strengths and weakness of legal system....................................................................5
The key legislation, regulations and standards that a new business............................................5
Different law which businesses have to follow...........................................................................6
Business legal structure...............................................................................................................8
Funding of different organization...............................................................................................9
Part B...........................................................................................................................................9
Overview of contract law, employment and company law.......................................................9
Legal points of each case...........................................................................................................10
Legal solution and justification.................................................................................................10
Use of appropriate legal solution...............................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Law is define as set of rules and regulation that being implemented by government in
order to maintain peace in society. Moreover, all citizen and corporate organization are abided by
these laws and if there is any negligence than it can lead into law suits. On the other hand,
business law is define as government policy that is being followed by company while running
their business in market. Along with this, some laws are mandatory to be followed by
organization so that it can avoid external threats and risk.
Furthermore, the study will discuss on legal system and different sources of law as well as
role of government made by them. It will also depict about different legal format that available
for organizations. Lastly, it will discuss on case studies related to business law and provide
them with legal solution.
MAIN BODY
Part A
Presenting legal system and different sources of law
It is a system for interpreting and enforcing the laws for citizen as well for public and private
business. Generally, it elaborates the rights and responsibilities in various way. Along with this,
three major legal system of UK is consist of civil, common and religious law. The other legal
system is jury that determine the facts at issues in a law suits (Ismatullayevichand
Bulturbayevich, 2021). However, the tax system is applied for assessing and collecting taxes
and electoral legal system is applied for selecting the right candidates and for making
democratic choices.
Principle sources of UK law:
There are two types of sources of law such as primary and secondary sources.
Primary: It refers to the law itself that means original and authoritative statements of laws
and it comes in following forms such as:
 Legislation: It is consist of laws that are being passed by the parliament. Moreover, UK
does not have written constitution it is mainly described as partly written and wholly un
codified (Murphy, 2018). It comprise of various bills of government such as public,
private and member bills.

 Case law: It is basically a report of case that includes decision of court and it is
considered as primary sources of UK law. It is consist of facts and the legal principle
applied in the judgement that can be used as reference in similar future case. Moreover,
the unique feature of English law is the doctrine of judicial precedent in this law reports
can be bind as source of law for the future decision (Dove and Bryant, 2019). However,
the judges is bound by the decision of superior court and not by inferior courts.
 European Union law: UK is member of European council and EU overrules the laws
that are prevailing in United Kingdome. Thus, it can be used as primary source of law as
it can helps in making the right decision.
Secondary source: It is know as commentaries on the law that includes:
 Legal encyclopaedias
 Parliamentary and non parliamentary documents
 Law journal
 Textbooks.
Role of government in making law:
In implementing laws government of UK plays a very important role like Parliament as it is the
top most authority for creating legislation. Furthermore, there has been long procedure that is
followed by government before converting a bill into law. Firstly, bill is presented in one of the
parliamentary house which is House of Lord or House of commons. After the bill is presented it
goes for first reading where the bill appears in the house (Javan Jafari and Norozi, 2018). In
second reading the debate is conducted in order to discuss about the main areas of the bill.
After first and second reading the bill is presented to committee stage that includes detail study
of every clause and the amendment that need to made in bill. Voting is conducted in this stage in
order to decide to continue with the proposed changes or not.
Furthermore, after committee stage bill is presented in report stage that includes the
examination of the changes and debate is conducted for discussing the minor and major change.
Along with this, voting is again conducted for implementing the bill as law or not. Furthermore,
third reading is the last chance for modification and voting and if there is no changes then royal
assent is given when both the houses get agree with the bill (Soares, 2020). At last queen
consent is taking by the parliament and bill is passed as law.
Common and statutory laws

Common laws has a continuous reforming structure and the principle of common law
has been taken into effect by the judges of court. Moreover, the judgement is done by legal
documentation as per the case in the court. It mainly means system of law consist of court
decision rather than written laws made by the parliament. It is applied in various function of
business in order to reduce lawsuits and threats.
Statutory laws: It is the type of law that has passed by body of legislature and it has a written
format as it under certain bodies (Kurpayanidi, 2018). Moreover, the law structure varies form
common and administration laws or as per the court decision.
Describing strengths and weakness of legal system
The main motive of legal system is to establish rules and regulation for the citizens in order
to maintain peace in the society. Moreover, it includes both primary and secondary source in
order to make new rules or to conduct any changes in it. The strengths of legal system is
precedent create certain consistency and predictability. As in case of similar case it is easy for
passing the judgement. For example in case of Balfour and Merrit is consist of similar facts
thus it will help in reducing time and cost required for judging that case. So it helps in fair
judgement of the case (Ivanovich, 2020).
However, the weakness of case laws is if there is unbinding then judges has to create and
modified new rules. For example, Donoghue v/s Stevenson. Thus, judicial precedent will help
in minimizing the mistake made by the judges as most of the cases have similar guideline. But if
there is no similarity in the case then it will be very time consuming for the judge and it will
require more cost to complete it. However, it can be rigid too that means is not very much
flexible thus, if there is similar case in the past it sometime cause hardship. Furthermore, the
another strength of the court is it can make quick decision that can resolve a dispute for the
parties and create precedent that will help in making the decision quickly (Rahman and et.al.,
2021). However, it can be weakness for the court as making change in the law is very slow
process and it can cause law of negligence.
The key legislation, regulations and standards that a new business
Every organization before commencing or while running the firm has to follow certain
norms in order to sustain in competitive market. Moreover, If company do not follow such rules
then it may lead firm into lawsuits and intervention of government. In UK company has to

legally register their company before starting their business. The organization need to mentioned
the type of business suits such as single owner, partnership or limited company.
The another legal requirement that need to be followed by the company is to take insurance
for employees and employ family if any things goes wrong. Along with this, it was
implemented for getting the compensation cost that crop up if any employee become injured
or ill in the workplace (Burton, Kavanagh and Brigham, 2019). It will also cover the costs of any
damage faced by the customer in case of negligent service. Another most important legislation
that organization need to follow is to provide their employees with equal opportunity and there
should be no discrimination on the basis of ethics, gender, age and income. Now days many
companies are using advance technology for smoothing their functions. So government of UK
propounded data protection as compulsory legal requirements that need to be followed. In this,
Company has to protect personal data of company and customer safe. Along with this, business
has to follow safety norms in order to protect them from hazardous substance. Furthermore,
employment act and national minimum wage act are also compulsory laws that need to be
followed by them.
Different law which businesses have to follow
In order to sustain in the business environment and to analyze the market position in the
market company has to follow certain laws that are mentioned in detail.
 English contract: It is an agreement between two parties for completing their task. This law
regulates the legal binding between contractor and acceptor. Moreover, in contract one
party makes an offer and another person accepts its by communicating or performing the
offers term. However, business has to make a contract with their employees and it
consist of policy that organization follow (Mucha and Oplustil, 2018). It helps in giving
clarity of the requirement that organization wants form the candidates and guarantee a
standard business procedure. In addition to this, it contributes in achieving organizational
goals and objectives quickly as it serves as proof in case the other party is not fulfilling
their job. However, in case of breach of contract parties has to bear loss for the service.
 Law of torts: This law mainly covers mostly civil suits and claims that arise in civil court
that area related to contractual dispute falls under tort law. The concept of this act is to
provide relief from the wrongful act and to award monetary relief as compensation for any

damage. Thus, the main motive of this law is to help victim by compensating. It mainly
includes loss such payment of medical expense or future income.
 Furthermore, it obliged offender to compensate for any kind of damage that occurs during
any kind of transaction between parties. Law of tort affects the business directly and
organization should follow the rules and responsibility define by legal bodies (Kurcz and
Paizis, 2019). It can create some major consequence for company such as if organization
have done something wrong that has harmed their customer. Then it has to pay
compensation to the injured party. Thus, it can lead downfall for business as it directly
affects the overall brand reputation.
 Copyright Act 1988: This act gives the creator an exclusive right of protecting their work
and sell them at high profit. The protection right will be granted to creator for their original
work it doesn’t have to register work to gain copyright. Moreover, it do not govern new
useful invention rather it consist of patents and trademark (Sternlight, 2019). It generally
last 70 years after the authors death so it doesn’t have to worry about the expiration. Along
with this, it provide business with symbol of C inside a circle that represent that it is
protected under the copyright law. It allows company to sue the people that have infringe
copyright and ask for damage. However, it is bit costly for small business as for using the
instrument of copyright it has to pay nominal fees for registration. That will contribute in
increasing the running cost of small organization.
 Employment Act:
 This law is designed to protect the rights of the employees and cover almost all aspect the
employees and employer relationship. It essential for organization to comply with various
rules and regulation so that it can avoid costly employment tribunal claims. It covers laws
related to areas of employment such as contract and condition, treatment of employees,
working hours and minimum wage. It can also affect the business directly that can increase
or decrease the growth of organization. If any employee sue company then it can create
negative image on firm as well as lose potential employees (Pohler and Riddell, 2019).
However, if subordinates are aware about their rights and treat them with respect will
contribute in increasing the productivity of the firm.

Business legal structure
It refers to legal structure of company that is recognized in given jurisdiction and
determines the key activities that need to be undertake by business. Such as raising capital,
amount of taxes and responsibility for business. However, four main business structure are
mentioned in details below:
 Sole Proprietorship: This is simplest business structure and involves single owner that is
responsible for running the organization and to conduct day to day operation. Additionally,
business tax is included in tax return of the owner. The advantage of this structure is it is
inexpensive to start and required minimal fees for registration (Ismatullayevich and
Bulturbayevich, 2021). It doesn’t have to meet ongoing requirements like limited liability
such as conducting meetings or election. However, the disadvantage is owner is liable for
all types of debts and obligation of business.
 Partnership: This form of business structure compromise two or more owner that work
together in order to accomplish common organizational goals. Along with this, it is quite
similar to sole proprietorship as it does not exist as separate legal entity from its owner.
Profit and loss is shared by the partner and each of them required to pay self employment
tax. Moreover, the advantage of partnership is that it do not required more paperwork and
partners has to meet equal level of requirements. Along with this, it enjoy special taxation
arrangement in which partners have to report their share of profit and loss (Dove and Bryant,
2019). However, disadvantage is partners are personally liable for the debts and their assets
can be sold off in case of high debts.
 Corporation: This type of business structure gives the entity separate legal entity form its
owner and its vey expensive and complex way to set up. The main types of corporation are
C and S. C exist as separate legal entity from its owner whereas S corporation has more
than 100 shareholders . Moreover, the advantage of corporate structure is ability to raise
capital and it offers owner with protection against debts and liabilities. The disadvantage of
this structure it has high requirements such as meetings, voting and election and it is more
expensive.
 Limited Liability company: It is known as hybrid business structure that is combination of
partnership and corporations. Moreover, it provides personal liability protection to
business owner by reducing tax and other obligation of company. The profit and losses of

company is shared among partners (Soares, 2020). Along with this, major advantage of
this type of business structure required fewer requirements and less paperwork. It not
subject to any limitation on the number of shareholders it can appoint. The disadvantage
are it is expensive and must be register with state where it intends to conduct operation.
Funding of different organization
Funding is the process of collecting capital through various means in order to run the business
effectively in the competitive market.
 Limited company: This type of organization need huge capital for running their business.
It can take loan for financial institution and angel investor . It can also raise capital
through going public issues debt securities.
 Social enterprise: This type of company is run by government or private individual with the
aim of not earning profit. It mainly works for development of the society or poor people.
Thus, it take loan form angel investor and form the customer that wants to donate money.
 Corporation: This business is run by the government and all the administration is also
managed by it. It mainly raise funds through government schemes or through banks.
Part B
Overview of contract law, employment and company law
 Contract law: It is basically a legal agreements between the parties in order to complete the
task. Moreover, offer is made by one party and it can be accepted through oral or by
following the condition lead down in the contract. Along with this, if nay breach is
conducted by any party then it will be liable for compensation of damage. It is important in
business as it helps in providing clarity about the requirement of the organization (Burton,
Kavanagh and Brigham,2019). Furthermore, it helps in accomplishing the organizational
goals quickly as both the parties and obliged to perform their d duties. Along with this,
according to UK law contract should be free from fraud, undue influence and
misrepresentation as it will convert valid contract into void.
 Employment law: This law cover the relation of employees and employer in business.
Moreover, it provides right available to employees while working with company so that it
can take legal action towards unlawful activities (Mucha and Oplustil, 2018). It includes
working hour, minimum wages, employment contract and norms related to any kind of

discrimination. Along with this, it is important for business to follow such rules and
regulation in order to avoid intervention of government.
 Company Law: It is consist of legal rules and regulation made by the government that
need to be followed public and private organization for running their business in the
market. Along with this, it is mandatory to be followed by every company and to register
themselves in this act. It is crucial for organizations as it simplify day to day running of the
business as well as provide protection from external threat and creditors as well as investor.
Legal points of each case
Case 1: Gordon has made contract with orange computer Ltd store regarding its salary that in
form year 2015 to 17 it will forgo its salary as the business is not going well. As such Gordon
has accepted the variation in the contract. However, business was good in 2016 due to good
economy and now Gordon wants its salary back for year 2015 to 2016 (Ivanovich,2020).
Moreover, in this case Gordon can ask for his 2016 and 2017 salary as contract was based on
downfall of the business. So company should pay minimum wage to Gordon as every employee
have a right to get minimum wage according to employment act.
Case 2: In this case Janet decided to call virgin media for installation of the internet package
including phone line. The company deal their services for 3 weeks and at time of invoice they
charge janet for whole package. So in this case Janet can sue virgin media for charging for the
delay service (Kurcz and Paizis, 2019). Virgin media has conducted fraud according to contract
and is liable to pay compensation for late service and causing inconvenience to their customer.
Case 3
Black horse limited is a security company that provides guard to other business. One of the
customer has left this organization with debt of £ 100,000 although organizations has recovered
its debts of last three months. One of its customer has issued winding up petition against the
organization. The company needs to find the right solution for dealing with the compulsory
winding.
Legal solution and justification
Case one: In case Gordon can claim for its salary in the court as the condition of the contract
has not been fulfilled. Along with this, it can also ask for minimum wage rate under
employment act as it is the right of the employee under this act.

Case 2: In this case Janet can file for fraud under consumer protection act and contract law in
order to claim for damage (Pohler and Riddell, 2019). It can file complaint on the portal of
consumer protection site or the customer care number of the company so that it is aware about
the wrongful act done by them.
Case three:
The black horse organization can simply avoid winding by ensuring that company pays all its
debts to all its creditor on time. Along with this, it can communicate with its creditor as it will
help in keeping them in their favour. For example, it can take loan from organization that lend
money so that it can repay past loan amount. In addition to this, organization can take legal
action such traditional administration halts this will stop creditors from winding the company
up (Soares, 2020). At this stage Blackhorse can take voluntary liquidation as it will give time to
prepare for such obligations.
Use of appropriate legal solution
In case one Gordon can file a complaint in the court regarding the minimum wage and not
fulfilling the condition of the contract. Thus agreement set by the owner of the company
would be null after 2016 as the main reason of the contract was not fulfilled.
In case of Janet it can file a complaint on customer website of the company so that organization
would be aware about their threats (Rahman, and et.al., 2021). Along with this, if there is no
response then it file a suit related to fraud and delay in service in consumer court. As
organization has wrong fully charged Janet.
In third case Black horse should either legally pay their creditor to avoid the winding up or it
should define it self as bankrupt so that it will have time to pays its creditors.
CONCLUSION
From the above report it has been concluded that business law is set of norms that is
followed by the organization so that it can sustain in market and avoid legal issues. Along with
this, it has summarized about types of law that are important in business such as contract,
employment and contract as it helps in dealing with external threats as well as provide company
with legal rights. Furthermore, it has also depicted about different legal structure that need to be
followed by organization such as sole proprietorship, partnership, corporation and limited
liability. Lastly, it has recommended legal solution to three case studies related with business
law.