Various Sources of Law

The project report will explicate various sources of law. It will determine the role of government in law making. The study will illustrate the example of company about how contract law has potential impact on enterprise. Report will elaborate by doing differentiation between regulations, legislations and through standard analysis for identifying the potential impact upon the business. Furthermore, it will explain how various types of organizations are legally formed, funded and managed. Assignment will provide recommendations in order to resolve range of disputes through using examples. Lastly, report will provide legal solutions in order to resolve range of disputes and conclusion.

TASK 1

Various Sources of Law

UK's constitution refers to parliamentary sovereignty as their key principle. Parliament is said to be a legal authority that is supreme in UK. Members of Parliament has the power to pass any law or to end. Legislation of the parliament cannot be over ruled by the courts (Vagts, Kohand Buxbaum, 2015). It is supreme in against of the government institutes that includes judicial bodies and executive. Parliament has also power to change any previous laws that has been written by their ancestors. Thus, the Parliament can be said as "Sovereign".

Source of law – It refers to an origin from where a law is being obtained. These are the constricting rules that helps to govern a territory. United Kingdom of Northern Ireland and Great Britain consist of four countries namely, Scotland, Northern Ireland, England and Wales. Here, some laws are applied in UK as whole but some laws are applied only for three countries. Various sources of law are explained below -

• Legislation and Parliament – The parliament in considered as legal authorization in the UK that can end or create any law. None of the court can overrule its laws and legislation. Thus, it is considered as a source of law. This is the authority that has power to approve the laws for applying in four countries. 650 members are present in House of common in Parliament. They elect the members by using the Post system and first past. The candidate is being chosen that has the highest number of votes by the electors. 800 peers are preset in House of Lords (The Legal System of the United Kingdom, 2019). Queen has the right to appoint 600 out of them. Other members are the people in House of Lords that has given title of Lady and Lord and one of them is a senior priest in Church of the England. Some countries have the power to pass the law in devolved matters. It includes Scottish Parliament, National Assembly and Northern Ireland. The countries in which these laws are passed are applied on only those countries.
• Common Law – Common law is being made under the legal system of England and Wales. The decisions which is being taken in the courts of the England and Wales are used as a base for making other laws in the region. (Scholes, 2015). These laws are made on the basis of the cases that has passed over the centuries. At the time of starting of laws in the Wales and England since from the 11 of the century.
• European Union – The directive is being appointed for implementing the state, national law and regulations that has influence over member states. UK is a member state of European Union. Thus, this means that laws out there have also had implications in United Kingdom.
• European Convention on Human Rights – Being a member state of European council, UK is signer of the European Convention on human Rights (Solomon, 2017). Human Rights Act 1998 comes into the force. Thus, it makes courts enables in order protect the rights of European convention in UK.

Law making process and role of government as statutory laws are applied in justice court

The role of the government in law making process is to pass the law and evaluating and monitoring the actions of the courts. The role of the government is to decide which laws need to be implemented and to manage those laws is the responsibility of the government. The new law introduced in UK is known as bill. The bill needs to be agreed by the houses of parliament (both) as well must receive a Royal Agreement by the queen. In order to become a law of parliament the above conditions should be essential to be followed. Initial an introduced bill is termed as “First reading”. This is said to be an official notice that bill is being proposed in the court. At the flour of houses this bill is said to be “Second reading” where the principles points are being considered MPs looks an examined this bill in detail (How are laws made in the UK?,(2015). The bill is being voted by the members of the parliaments and this is called as “Third Reading”. If it has majority of the votes than it is gone through House of lords. Lastly the Queen gives Royal assents to this bill and it becomes Act of Parliament in UK. There are two ways through which laws can be formed in UK. This is explained as follows -

• Common Law – This refers to the case laws and are of two types first one is the law which is passed by the judgements to becomes the new law. Second one is existing laws that are passed by the judges that creates new distractions and new boundaries based on their interpretation (Morley, 2016). Various government agencies also frame laws that are called as regulatory laws. They have the authority to follow up the laws that are created by the legislature.

• Statutory law – There are the laws that are passed by different government agencies in various countries. State government and federal passed the laws. Cities and towns has the power of laws that are passed by the ordinances. The motive behind introducing the new laws is to meet the needs of citizens in order to resolve their issues and for formalizing the law that is already in existence.

Contract, Employment and Company law has potential impact upon enterprise

TASK 2

Various types of organizations are formed and legally managed

Types of organizations are as follows -

Sole Proprietorship – This refers to the sole trader. This type of business is carried out by only one person. The legal authority is also of one person. Any business losses is to be carried by the single business owner (Beatty, Samuelson and Abril, 2018). Thus, it is a major drawback of the sole proprietorship business. The profits and losses of the business is carried out by the proprietor. The owner makes arrangements of the funds by taking help of their friends and relatives. Total control of the business is hands of the proprietor. Here the owner has limited liability.

The business of sole proprietorship is being formed by registering the business name. The owner of the business needs to grant licence from the government. They need to establish separate finances. The owner needs to report the taxes correctly.

Partnership – Two or more partners when entered into the business can be termed as partnership. The losses are to be shared by the partners equally. Profits are being divided equally among all the business partners or as per their capital contribution ratio. The partners need to pay off income tax returns based on their profits contribution. Liabilities of the partners are also limited in the partnership. In this the partners can bring their own money to start up their business. One of the benefit of the partnership is that risk is being shared. Thus, the loss of the business is not overloaded on the single person. The terms and conditions of the business can also be adjusted by the partners as per their suitability and convenience. This conditions may include the withdrawal of the money by the partners. The money that is being withdrawal for the personal use by the partners needs to be repaid by them.

The partners need to registered their names as per the formation criteria of partnership. At least two of the partners needs to share ownership. They need to mention each partner name in memorandum of association and need to mention their contribution in the business (Beatty, Samuelson and Abril, 2018).

Corporation – This type of the business has separate lawful entity from its owners. The liability is unlimited under the corporation. The cooperation control is in hands of the directors of the business. Cooperation can be incorporated by filling the articles within the state in which the firm is interested to run the business. The article contains the information that is related to the business. It includes the business address, total number of shareholders and number of the directors of the board which are responsible for handling the management operations.

Number of shares needs to be issued by the corporation and the type of the business they are running need to be mentioned in the article of association (Epstein, 2018). For looking day to day operations of the business the president is being appointed by the directors of the board. In the case of the small corporation the shareholder is one and it is also the director and sole officer of the business. This can be of three types Public, private and one person. The corporations can be sued by their own name as they are apart from the business shareholders. The corporation does not end by the death of the shareholders, its keeps on going. Shareholders even doesn't pay off the obligations of the corporation or debts by using their personal assets. Thus, this is one of the benefit to being in the corporation.

Corporation is being formed by appointing the directors of the company. They need to submit articles of incorporation to the government. Fee of Paper filing ranges from £100 to £800, it depends on where the business is being incorporated (Epstein, 2018).

Difference between Unincorporated and incorporates business firms

Advantages and Disadvantages of the Partnership

Advantages

• The capital of the business is equally contributed. Large amount of the capital is being contributed as there are lots of the partners in the business. Thus, the funds of the business can easily be raised.
• The partnership business can easily be formed. The legal formalities are less in the business.
• It is cost saving as loses of the business is being shared among the partners (Ashcroft, Ashcroft and Patterson, 2016).
• The risks of the business are also being shared among the partners.
• Having a partner of the different mind set and creative skills can be productive for the business. Thus, more business opportunities are being created in the partnership business.

Disadvantages

• Liabilities of the partners is high due to debt burden on them.
• There is loss of autonomy in the partnership.
• There are chances of disputes and conflicts among the partners.
• Stability is lacking among the partnership. Partners need to cope up with the unpredictable changes of the business.

Thus, from the above discussion it can be concluded that 3 of the friends has successfully ruining their JPM Publishing business and as their advisor has said to registered their business as limited company can be helpful. By adopting the accountant’s suggestion, the firm can easily raise their fund from the public.

TASK 3

Recommendation of appropriate legal solutions for resolving a range of disputes

Recommendation

Alternative disputes solution — This is generally classified into four stages which is negotiation, mediation, collaborative law, and arbitration. It allows the parties to come up with the more creative solutions that court can be legally allowed to impose. This is one of the effective term that aids to addressed the issues and setting parties outside of the court. (Zhou and Wen, 2019).

Case 1 — In this case firm are not able to pay the amount to their creditors because Champion Ltd faced the financial problems due to decline in its customers so, Firm are not able to pay the loan amount to the bank as well they not able to pay their liberalities to creditors. Thus, creditors are afraid that firm not pay their money timely, so they apply for court and the low is winding up petition.

Solution — In this case the creditors apply the winding up petition. It is a legal action taken by a creditor or creditors against a company that owes them money (although others can also petition). Thus, court is favoured the creditors as firm pay all the money to creditors in any situation. Thus, to reduce the creditors firm sale their assets and shares in the market and firstly they payment all the money to creditors as reduce the creditors. Therefore, this act is favoured the creditors because creditor has valid reason to obtain their money. In this given case, the creditor can ask for the negotiation so that they can claim for their money that have invested in company. Henceforth. Creditor has to negotiate them and for this they must sell assets of the firm. So, compensation can be given. Therefore, Champion Ltd should sale their assets and make payment to the creditors to reduce the liability.

Case 2 — In this case, Mr Anderson was the CFO in Amber Ltd. On the other side, A competitor, Beta Ltd offered Mr Anderson a more attractive role as its CEO. Thus, Mr Anderson cannot apply the resignation letter according to the procedure and contract. In this contract of employment that Mr Anderson should give them 12 months' notice to the organization, but they do not give the notice and firm are not accept because they not follow procedure so this is creates the disputes among Mr Anderson and Amber Ltd. Thus, to resolve all the issue firm can suit the Mr Anderson.

Solution — According to the Alternative disputes' solution firm can used the arbitration method. In this method firm go to the arbitrator and solve their problem outside the courts. The dispute will be decided by one or more persons (the "arbitrators", "arbiters" or "arbitral tribunal"), which renders the “arbitration award" (Velenturf and Jopson, 2019).

In This case study arbitration method will be used to make judgements on the parties as per the given case study according to their knowledge. This is the third party decision both parties are legally binding up, and they both follow the decision of arbitrages. Thus, Arbitration is often used for the purpose of resolution the problem of commercial disputes, particularly in the context of international commercial transactions. In certain countries such as the United States, arbitration is also frequently employed in consumer and employment matters.

In this case arbitrator has listened the both parties, afterwords, they made judgement in the favour of Amber Ltd. From this, it can be stated that Mr Anderso was in fault as he didn't follow all the procedure that has already mentioned in company contract. So, he cannot leave the company before competition of the notice period of 12 months. If he do, so then he has to pay the penalty. Thus, Amber Ltd should use the arbitrator method to resolve the problem. Therefore, the solution of the arbitrator will bind both of the parties. In this given case study, Mr Anderso is in fault as he breaches the company contract so the decision of arbitrator will bind on him.

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CONCLUSION

From the above project report it can be concluded that Business law refers to legislative body of the parliament in the UK that governs the trade and E-commerce business. It has been summarized that the bill can become a law of the parliament when it receives the royal approval from the queen and from both the houses of the parliament. It has been determined that employment law has potential impact upon the business operations as the corporation need to adhere the rules that includes fair dismissal, fair wages and redundancy polices related to their employees. The companies Act has generally rules regard to its incorporation. It has been determined that there are three types of business namely, sole proprietorship., partnership and corporation and each and every business is legally formed and managed.

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