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Business Law- Solving Legal Disputes (Champion Limited)

University: European Business School London

  • Unit No: 7
  • Level: Post Graduate/University
  • Pages: 18 / Words 4546
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 886
Question :

The assessment will cover some elements need to be discussed they are as under:

  1. What is the nature of legal system?
  2. Analyse effective potential impact of law on companies and on Champion limited.
  3. Explain potential impact made by law on business organisations.
  4. Recommend different legal solutions which helps in resolving disputes of Champion limited.
Answer :
Organization Selected : Champion limited


Business law is expressed as the collection of legal requirements while forming, operating, dissolving and engaging with any of the business activities. This law has a crucial while operating with legal transactions (Allen and Kraakman, 2016). Several branches are there under business law which makes this law effective and helpful for obtaining better results. In this respective project , there will be description about the sovereignty of parliament of UK and how it is started every year. Two different cases will also be solved in which first one will be connected with organisational sector where as second case will related with solving legal disputes in suitable manner. Even various example related to similar past cases will also be considered in this respective file.

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Discuss the meaning of this statement “Parliament is Sovereign” and discuss the various sources of UK Laws

Parliament of UK has its own rules and regulation which is needed to be considered by everyone as it tells that what are the legal terms and regulation which is needed to be followed. In present scenario, there are number of nation where if any of the decision are taken by the House of Parliament is not suitable for general public then they have the rights to raise question and change the policies but while talking about the parliament of UK no one has that sort of rights as it is considered that any of the decision taken by Parliament House will be right and even helpful too. The decision which they takes are required to be supposed that they are right and they have been commenced just for the welfare of everyone. The Sovereignty also allows them to take best possible decision which are beneficial for any of the organisation or individuals.

There is the huge role which is being played by Queen as if any of the law or policy is required to be passed then it is necessary that her permission must be taken. If in any of the case permission is not taken then it is not possible to enforce the law within the boundary of UK. Every year Parliament is required to be started in the month of October and November, but it is always started once the speech is delivered by the Queen. The most important thing which is required to be considered is that each and every political party commences their agenda once speech is delivered (Jones and Lainez, 2013). The main thing which is needed to be considered is that this speech is such power that every agenda is based on this particular speech.

The UK law has number of sources which helps to commence any of the new law through which affective results can be obtained. The detail information about all of those source is mentioned below:

  • Legislation: This is the major source of UK when it commences to source of law. There are number of people who come together just for the common purpose. In commencing law through legislation process it is said that member of parliament shows their support in it. Here, they try to takes the suggestions from general public and then they commences the law which has been very effective for maintaining suitable environment in UK.
  • Common law: Here, it is said that judges have the authority to take any of the decision for making any of the law. They decide it as per the situation that how any of the law can be helpful if it would be commenced. The main benefit of this law is that it is commenced as per the requirement of situation to make the situation control.
  • European Union Law: This is one of the most suitable source which have the knowledge and idea that at what time any of the new law is required to be commence. This is one of the most oldest source for the UK premisses and even there are thousands of laws that has been commenced by EU law (EU law in United Kingdom. 2017). The main benefit of this source is that it cover almost all of the sector and specially commercial and that is the main reason that companies of UK have been performing well within the market.

Explain the role of government in the law-making process and how statutory and common law are applied in the justice courts

The government is the one which has the main role to be played for effective legislation system. Government has huge responsibility which is needed to be fulfilled and for that they are required to check each and every information in detail so that new laws and policies can be proved as effective. Whenever government commences the law, they are required to consider the fix pattern as it is helpful in obtaining the required result because every steps check the proposed bill in best suitable manner.

  • First Reading: This is the step where member is needed to check bill and its basis requirement to find whether it is effective or not. If all of the member are satisfied in it then it is further send to the next step (Vagts, 2015). Also, they gives the title to the bill.
  • Second Reading: This is also crucial step because MP's need to vote to check that all of the member are agreed or not and if they are not agree then they further conduct the voting process. It is one of the stage where where lots of complication can be found because it is always said that argument with opposition party is never a easy task (Kapottos and Youngner, 2015).
  • Committee Stage: In this stage, bill is transferred to House of Common as they are the one who represent the House of parliament (Johnson, 2013). They check the bill in detail and if they think that this bill will not work as changes are required to be done. If there is any requirement then they further transfer it to report stage for amendments.
  • Report Stage: In this stage, changes are done as per the instruction given by the member of committee stage and further it is send for the next process.
  • Third Reading: Once bill is passed from report stage, it is presented back in House where member of house of commons needs to do debate. In addition, voting process is done in which it is necessary that resolution should be passed to transfer it further.
  • House of Lords: All of the above stage must approve the bill to reach up to House of Lords. They are the one who takes the final decision on bill that whether it is acceptable or not and if any of the doubt arises then they do changes in it.
  • Royal Ascent: It is the final stage in whole of this process. Here, it is necessary that bill must be approved as per the guidelines of Royal Ascent Act 1961. The approval must be be given by monarch.

All of this process are needed to be followed before commencing any of the new else, there is no possibility that new laws and regulations can be formed. It is said that this process has to be done by the government themselves because their effort plays the crucial role in it. The main thing which is needed to be understood is that House of Lords and House of Commons have to put equal efforts so that they can commence better and sustainable laws and policies.

How statutory and common law are applied in the justice courts.

The decision making process is one of the most difficult task for any of the justice court because it is one of the most difficult task which is needed to be done. Here, justice court takes the help of statutory law and common law to declare any of its decision because it saves the time and even decision are also helpful in it. Whenever any of those case arises where terms and condition are written about the law the justice court takes the help of statutory law and if any of the legal laws and conditions are not prepared then in that condition court takes the help of common law where they commences new law and declare their decision of own.

CASE LAW: King v. Burrell

This was one of those rear cases where it was selected that each and every individual have the right that they must not be discriminated and this decision was totally based on statutory law.

CASE LAW: Joseph v. Setal

In this respective case, the panel of judges decided that there is no legal terms which has been described and because of that judges gave the decision of own by enforcing new law and regulation (Shackelford, 2014).

Illustrate how company, employment and contract law has a potential impact upon business.

There is not a single enterprise that don't have the knowledge regarding various law which has the capability to show the effect on daily transactions of a business organisation. Member who are incorporating the business should try to think and must understand the law so that effective results can be obtained. Some of the laws and its major impact on business organisation are:

  • Contract law: It is one of the most important law which tells that any of party which are going to involve within the contract should be known that what the terms and condition which they must do for effective results. Here, once contract deed is prepared then it is not allowed to breach the term and condition and if any of the case company fails to perform then legal actions are taken in which they can be sued and even compensate should be done as per the order of court which has the negative impact.
  • Company law: The most important law for any of the business organisation is company law which guides to take every single decision within the company for its welfare. This does has the positive as well as negative impact on company because it one of the law which reduces the revenue and shows negative impact (Jones and Lainez, 2013). The positive impact of company law is that it doesn't allow the company to take any of wrong decision, if is applied in right manner.
  • Employment law: It is helpful in creating or developing the health relationship between employer and employee. The positive impact of this employment law on organisation is that it binds employee's to work as per the given instruction till standard time formate per week.


Nature and formation of different types of business

Business is always needed to be incorporated as per its actual requirement so that required profit can be earned. It is necessary that whenever business is needed to be incorporate the proper terms and condition must be read and after that legal formalities is also required to be done. Some of the organisation and its legal way of formation is:

Corporation :- A corporations are different lawful entity that is created by shareholders. Corporation allows your business organization to deduct taxes like individual but in this tax is deducted twice both at firm level and the individual level (Vagts, 2015). If the owner of business passes away in that situation also business will run continue as it enjoys the right of perpetual succession. There are number of rules and regulation which are applied on corporation so it is necessary that each steps must be taken in best possible manner. The legal way to incorporate any of the corporation is:

  • It is the responsibility name should be selected where it should not be matched with any of the other firm working in the same market.
  • Address is needed too for physical presence in the eyes of law.
  • Then, there is the requirement of Memorandum of Association and Article of Association.
  • Before, preparing MOA & AOA it is necessary to select first shareholder and director for the company because there are number of formalities which is needed to be done till the date of incorporation.
  • SIC code has its own importance which tells that how any of the work is required to be acquire.

Sole proprietorship:- sole proprietorship is a type of enterprise that is owned and control by one individual. In this there is no separate legal entity because business and individual consider same. It is simply refers to the individual who owns the business and personally liable for all its debts. It is not registered or incorporated and it is ideal for small and medium type of organisation that is run and control by individual.

Partnership:- partnership refers to when business is run and control by two or more than two persons. It a business that is drive by multiple owners and each of them is invested their money in it. The income of business is activated as owners income so once tax is charged on it and in business all its partners are liable for the liabilities of the organisation.

Difference between unincorporated and incorporate business.



  • In this individuals have liability to meet any type of outstanding debts personally.
  • In this type of organisation there is unlimited liability hold by owners.
  • Sole traders and partnership is existed in unincorporated form of business.
  • They are not generally able to enter into a contract in organisation name.
  • In Unincorporated form of organisation risk can be an equally distributed.
  • Unincorporated organisation mainly has no legal separation in between forms and owners and is not able to sell shares (Frank and Bix, 2017).
  • In this form of organisation members have limited set of liabilities (Buxbaum and Hopt, 2013).
  • Incorporated body can enter into contract in its own right.
  • As in this all the members are treated same thus risk can be equally distributed.
  • They have limited liability and include Private Limited companies and public limited companies.
  • Owners and business are mainly separate legal entities in incorporated form of organisation.
  • If any debt occur in this then shareholders are liable as per according to their shares and the amount which they invested.
  • Incorporated business organisations are separate legal entity and can sell shares.

How they are managed and funded

There are different types of business organisation who perform their activities to achieve their different set of goals and objectives in an effective manner. In order to facilitate business operations in the well effective manner there is a requirement of funds thus, in order to fulfil fund requirements it is essential for organisation to evaluate major source from which they can gather funds and can further acquire fund when there is an additional requirement. With the help of this they can effectively able to accomplish their goals and objectives in a define manner and can conduct their functioning in smooth process (Heminway, 2013). Mentioned below there are different types of organisations along with the manner with the help of which they can manage their fund is elaborated in a well defined manner:

Sole proprietorship:

Sole proprietorship is a form of business organisation which is run and managed by sole individual in order to effectively conduct business operations. In sole proprietorship owner is required to understand different types of government benefits that are given to them which, is no requirement of legal documents. In addition with this in sole proprietorship there is no further need of Manpower to accomplish activities as business as this business is run on small ground that can be effectively managed by owner themselves. This form of business organisation does not require large amount of fund to incorporate and further there is no need of additional fund, if in a case any future requirement of funds arise then owner required to manage this by their personal assets.


Partnership is a form of business organisation in which more than one individual works on a common goal in order to earn a large amount of profitability (Shackelford, 2014). In this partners are divided as per according to their shares invested that further facilitate them to share risk and profit. Partnership is an organisation in which there is no requirement of lengthy process. In addition with this in the stage of incorporation partners are required to consider partnership deed and must register themselves in Partnership Act. In this authorised person is required to manager responsibility in this form of business organisation fund can be effectively manage and further requirement of funds can be fulfilled by financial institutions, bank loans etc.


Cooperation is one of the most popular business organisation form in which there is a requirement of maximum number of investors as in this there are more workload as compared to other business organisation that are only managed by maximum number of investors. It is mainly a lengthy process in incorporation that takes excessive amount of time. In this form of business organisation partners are required to prepare memorandum of association along with article of association in order to effectively conduct their business operation (Kapottos and Youngner, 2015). For managing business activities directors, company secretaries, shareholders and managers are required to ensure all the legal bindings are done in proper and systematic manner. In this form of business organisation funds can be managed by peer to peer lending, issuing of shares bonds and debentures, bank loans etc.

Advantage and disadvantage of a partnership and that of a company.

There are different types of organisation those who engage in the process of operating their business activities for the purpose of gaining profitability. These entire business organisation somehow have different types of advantages and disadvantages which are required to be considered in order to initiate business functioning (Johnson, 2013). As to effectively conduct business operations in a well suitable manner by considering advantages and disadvantages business organisations can effectively able to facilitate their operations in a well-defined manner that may further lead towards accomplishment of profit ratios in a best effective manner. Further with the help of this they can also able to understand their legal rights that may lead towards conducting of business operations in a define manner. Mentioned below there are some certain advantages and disadvantages are described in an elaborated manner of different types of organisations:

Types of Business Organisation Advantage of the Organisation Disadvantage of the Organisation
Sole Proprietorship Sole proprietorship is a form of business organisation in which day to day activities can be manage in an effective and smooth manner as in this decisions are made by owner themselves. In sole proprietorship legal rights are not given which is related to the capacity of to sue and be sued.
Partnership Firm As there are more than two partners in a partnership firm it may lead towards generation of new ideas with the motive to earn large base of profitability (Davidson, Forsyth and Knowles, 2015). Along with this partnership firm also do not allow with the right of to sue and be sued on partnership firm name.
Joint Venture In joint venture there are more number of organisation associated to perform objectives thus, in can be accomplished in an easy manner further resources are available in Quantum level. As in joint venture there are more number of organisations perform their operations towards a common goal there is a probability of conflicts that may lead towards decrease in performance efficiency and further lead organisation towards facing loss.
Corporation In this form of business organisation there are legal rights which are allotted to cooperation in which they allow to sue and be sued (Beatty, Samuelson and Abril, 2018). In corporation form of business organisation there are chances to incur unnecessary cost in the initial stage of formation of organisation.


Solve disputes of different cases with appropriate case laws with legal solution


  • Winding up :- winding up refers to liquidate the company to pay their liabilities. The company will stop doing its business and its purpose is to sell off assets, pay off creditors, and remaining distributes to company's partners (Besley, 2015). Company is formally dissolved when winding up has been accomplished. Company can liquidate by two ways first on the order of court which is compulsory winding up and secondly on the mutual decision of senior authority that is called voluntary winding up. With the help of Winding up
  • Voluntary winding up:- It is a situation where company become insolvent and is unable to pay off its liabilities. It starts when senior authority of a company decide to close their enterprise because they cannot pay off their creditors. This procedure is very quicker than the compulsory winding up and there is no interaction of court and other legal entity because it is mutually decided by directors and owners of the company.
  • Compulsory winding up:- compulsory winding up is the order of court to closed down the affairs of an insolvent company (Jones and Lainez, 2013). Court give order to official receiver after the appeal of creditors and official receiver investigate properly to find out the reason of company's insolvency and freeze its bank accounts.
  • Mediation :- Mediation is the peaceful conflict or dispute resolution tool in which a mediator helps to both the parties to reach a mutually adequate agreement. It assists the parties in distinguishing their own interest, want,priorities and desire of each other. In this mediator don't play a role of judge but they use proper negotiation techniques to provide proper solution to the disputed parties.

With the help of mediation Champion Ltd can effectively able to resolve their dispute with creditors. In this with the help of mediator company can help up meeting with the creditors those who are threatening to apply to courts for “ winding up petition. Thus, mediation will prove to be effective for Champion Ltd as to resolve dispute.


  • Alternative dispute resolution:- alternative dispute resolution is the process of settling the dispute outside the court. In this disputes are solved with the help of third party and allows parties to come up with originative solution that is not allowed by court.
  • Arbitration :- arbitration is a process in which a third party is play a role of judge who listen both the parties and mutually take decision. If both the parties is agreed with his decision then it is called reward. Arbitrator play a role of third party and accountable for resolving of conflict.
  • Conciliation :- conciliation is the process in which a conciliator meets with the disputed parties together or separately to resolve their conflicts and differences. They try to resolve their disputes by proper communication, reduce tensions,explain issues, and help parties in determining a mutually acceptable solution (Backer, 2015).

Arbitration method can prove to be effective for Amber Ltd as with the help of this organisation can able to solve their case against Mr Anderson in a speedy way. This further help them to get results in timely period of time. In addition with this, Arbitration allow Amber Ltd to resolve dispute much sooner while ensuring enforceability of Awards. University students must go for our cheap University Assignment Help services from top writers.

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As per the above mentioned report it has been concluded, that business law includes standards and policies that are required to be effectively considered by different types of organisation for Welfare of their entities. In addition with this it is also evaluated that English law mainly include four sources with the help of which act come into existence. Along with this there are some a certain specific patterns that are effectively required to be followed by Organisation in order to initiate there business organisation. By binding all legal procedures organisation can effectively able to conduct their business operations without facing any legal obstacles and hurdles. However if a changed occurred then it is required to be effectively considered by entity in their incorporation process. This report further include process of alternative dispute resolution with the help of which disputes can be resolved in a feasible manner as if any legal case drag in court level then it may take long time period that may lead towards wasting of time and funds.


  • Allen, W. T. and Kraakman, R., 2016. Commentaries and cases on the law of business organization. Wolters Kluwer law & business.
  • Backer, L. C., 2015. Moving forward the UN guiding principles for business and human rights: Between enterprise social norm, state domestic legal orders, and the treaty law that might bind them all. Fordham Int'l LJ. 38. p.457.
  • Beatty, J. F., Samuelson, S. S. and Abril, P. S., 2018. Business law and the legal environment. Cengage Learning.
  • Besley, T., 2015. Law, regulation, and the business climate: The nature and influence of the World Bank Doing Business project. Journal of Economic Perspectives. 29(3). pp.99-120.
  • Buxbaum, R. M. and Hopt, K. J., 2013. Legal harmonization and the business enterprise: corporate and capital market law harmonization policy in Europe and the USA(Vol. 2). Walter de Gruyter.
  • Davidson, D. V., Forsythe, L. M. and Knowles, B. E., 2015. Business law: Principles and cases in the legal environment. Wolters Kluwer Law & Business.
  • Frank, J. and Bix, B. H., 2017. Law and the modern mind. Routledge.
  • Hanrahan, P. F., Ramsay, I. and Stapledon, G. P., 2013. Commercial applications of company law.
  • Heminway, J. M., 2013. Teaching Business Associations Law in the Evolving New Market Economy. J. Bus. & Tech. L.. 8. p.175.
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