Table of Contents

• LO1 Explain the basic nature of the legal system Assignment

• LO1 Explain the basic nature of the legal system
• P1 Explain different sources of law and laws that organisations must comply with.
• P2- Explain the role of government in law-making and how statutory and common law is applied in the
justice courts.
• M1-Evaluate the effectiveness of the legal system in terms of recent reforms and developments.
• M2 Differentiate and analyse the potential impacts of regulations, legislation and standards.
• D1 Provide a coherent and critical evaluation of the legal system and law, with evidence drawn from a
range of different relevant examples to support judgements.
• LO3 :Examine the formation of diffrent type of business organizations:
• LO4 :Recommented apporiate legal solutions to resolve areas of dispute
• Conclusion
• References

Assignment # Chapter no:7

"Business Law"

Solution:

LO1 Explain The Basic Nature Of The Legal System Introduction

Many researcher believe that human civilization is founded on the stones of legal laws and
legislation. Without an effective law and order system, nothing can be organised in an order and
may cause chaos. This is applicable to business world as well. Business organisations have to
follow certain legislations defined by the legal system in order to keep their business growth
growing and going. In this report, the English legal system and how it assists in running the
businesses. In addition, the role of the government is also explained in law-making. To broaden
the knowledge of legal system, its effectiveness and recent reforms is elucidated in this report. In
the next section, key essential laws for every business in the UK are talked about along with their
 application in different case scenarios. In the end, a comparison is drawn between the legal
solutions and alternative legal advices.
LO1 Explain The Basic Nature Of The Legal System
P1 Explain Different Sources Of Law And Laws That Organisations
Must Comply With.
• a) Discus the meaning of this statement and the various sources of UK Laws
Declaring the Parliament of the United Kingdom is sovereign, it is meant that the Parliament is
the supreme and self-determining body. The constitution of the UK is partially codified and
therefore, the Parliament has infinite powers and liberty. Prime motive of the Parliament is to
serve the nationals of the UK (Hart and Green, 2012). The meaning of the above statement is
perplexing. Scholars like A.V. Dicey have analysed both positive and negative sides of this
definition of sovereignty. Negative aspects include that the Parliament has no legal limitations
and nobody including the Supreme Court can have a right to challenge the decisions of the
Parliament. No authority having a necessary competency can supress the Parliament. Courts
cannot override the Acts of Parliament, but they can invalidate the statutory laws to fundamental
case law rights.
Sources of Law
There are two well-known sources of law: Primary and Secondary sources.
Primary Sources: These are the authentic and original source of information. These are
elaborated below:-
• Common Law: These laws are created by the judicial bodies instead of the Parliament. These are written and
recorded in the law yearbooks and reports. Court of same or lower level can refer to them in the similar cases
in future.
• European Law: Being a part of European Union, the United Kingdom have to follow the laws and standards
given in the treaty. Each member of EU has to unanimously agree upon the laws. These laws can override the
legislations of the UK.
• International Law: Being a part of the United Nation, the UK has to comply with the laws developed by the
UN or other international bodies, such as WHO, World Bank, Human Right Commission, etc.
• Custom: These laws are created by and for a particular community in the past. Not complying with them can
led to punishment by the community.
• Legislation: Parliament is responsible for developing and implementing the legislations. They are necessary
for maintaining the law and order in the region. Legislations are applicable on every citizen living in the UK.
 Secondary Sources: These consist of books, newspaper, journal, or any other law source. These
consist of case studies or articles on previous lawsuits. These may serve as the perfect source for
research purpose.
Apart from the sources of law, there are certain professionals who look after the proper execution
of law and order in the UK (Hart and Green, 2012). These professionals are: Solicitors,
Barristers, and Judges.
• Solicitor: It is a category of the lawyer who are professionals in providing expert legal support and advice to
their clients. They usually spend most of their time outside the court, but can also represent their clients in the
court.
• Barrister: These lawyers usually represent their clients in the courtroom. They have specific area of legal
advice. They can be guided by the solicitors over some case.
• Judge: A judge is a legal professional who carries out court proceedings. They are expected to act neutral and
conduct trials without being partial. There final target is to settle a disputes by complying with the rule of law.
P1
The English legal system is quite flexible and is ever changing. There is recognised bodies and authorities
responsible for making laws and legislation. The constitution of the UK is partially written that allows regular
changes in the legal system. The constitution of The UK is consisting of primary and secondary sources of
laws. In the primary sources, the following sources are present:-

Legislation:These are the laws that are formed by the parliament of the UK and are applicable to every
business entity and a human being living in the UK. Since the Parliament is the sole responsible body to form
Acts under which legislations are made. These are necessary to maintain the law and order in the UK.Ex-
Environment Act 1995

Common Law:In the UK, the courts have the right to make laws while providing a verdict on a particular case.
These laws can be followed and can be usedwhile making verdicts in identical cases by same and lower order
courts in near future. These laws are not preferred over legislation.Ex- Ratio decidendi

Customs Law:There are many communities in the UK that have established their own set of rules and
legislation. Each and every community member is required to follow them. Anyone who breaks them is liable
to punished by the community.Ex- Law of Nations
European Union Law:European Union has its own legislation that is mandatory for every member of the Union
to follow. In addition to this, the associated members are required to put the EU laws over their statutory laws.
Ex- EU consumer rights directive

International Laws:There are many international agencies working in the UK, such as WHO, World Bank,
WTO, etc. They have their own laws and guidelines that are required to be followed by the UK and prioritise
them in the first place. Ex: International humanitarian law

P2- Explain The Role Of Government In Law-Making And How

Statutory And Common Law Is Applied In The Justice Courts.
In the United Kingdom, the legislations are passed as a Public Bills. These bills are introduced
by the government of the UK or the MPs. The process starts in the House of Commons that
contains the elected candidates. In order to attend to the needs and issues of different social
groups, a bill is prepared and presented in the Parliament. Thereafter, the procedure is start with
the first reading in both houses: House of Commons and House of Lords.
In the Commons, the bill is analysed and the views of the opposition in the house are heard.
Later on, the bill is voted up and sent to the House of Lords. In the UK, this house usually
comprises the Supreme Court. After evaluating the bill, the House may suggest some changes in
the bill and revert the bill back to the House of Commons. Once the amendments are done, the
bill is again go through the reading process by both the Houses. After the reading and going
through the parliamentary stages, the bill is sent for the Royal Assent. It is given by the
Monarch- the Queen of the UK. No bill can be passed without the approval of the Queen. Once
approved by the Monarch, the bill is gazetted and passed.
Implementing the Statutes and Case laws
In the United Kingdom, there are two types of laws that govern the law and order system. First is
the statutory laws and second is common laws or case laws. The former is formed by the
Parliament and is applicable on everyone living in the UK. The government of the UK is solely
responsible to codify them. The latter ones are usually refer as the precedents. These are the laws
formulated in the court while making the verdict of similar past case. The statutes are superior
and can override the case laws. Common laws serve as a useful instrument in understanding the
statutory laws and can fill the gap in the statutes.
M1-Evaluate The Effectiveness Of The Legal System In Terms Of
Recent Reforms And Developments.

The English Legal system is one of the most effective legal systems in the world. It is keeping a
balance between the business world and the law & order in the United Kingdom. In order to
discard the elements causing delay, lowering down the efficiency, and intimidating the
witnesses, the legal system should be modernized. There are different meaning that can be
understood by the term ‘law reforms’. The Education Act of 1944 was recently reformed in
order to remove the gap in the education system (Barak, 2016).
The Company Act 2006 is the most perfect example of law reformation. The Act has simplified
the company law and it focuses on making the corporate world friendly for both employee and
employers (Wessing, 2016). The code has codified the duties of the employers and gave a new
concept called “enlightened shareholder value”. This concept helps in providing a greater
attention to all the stakeholders and encouraging the organisation to adopt more long-term goals.
Apart from this, General Data Protection Regulation 2018 and Equality Act 2010 are some
legislations that are far better than perfect.

LO2 Illustrate the potential impact of the law on a business.

P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business.

Each and every business organisation operating in the UK has to follow some basics laws and
legislations formed by the government of the UK. A few of them are elaborated below:-

Company Act:
This act was formed in the year 2006 by the parliament and has 1300 sections and is called the
longest Act. The Act obligates the organisation in many areas, such as employees, shareholders,
creditors, directors’ rights and duties. It sets the accountability of the directors in the company
and their job role. It also talks about corporate finance, etc. It safeguards the employees from
getting exploited by the firms and vice versa. The directors of the company can safeguard the
interest of the stakeholders. The aim of this act is to minimise the burden on the directors. This
act has made it easier for the business class people to start the company. The company can be
formed by a single person and with only a single constitutional document. This provision has
revolutionised the process of forming a company. The director is able to maintain confidentiality
of the information and can be able to protect the information at Company’s house.

Health and Safety at the Workplace:In 1974, the UK government passed the Health and Safety at
the Workplace Act in order to protect the safety and health of the employees while they are at
work. The act has obligated the businesses to take care of the basic safety measures at their
premises and carry out a regular risk assessment in the working area. This puts the extra burden
on the companies as they have to install new equipment, carry out training of the employees, and
carry out a risk assessment and mock drills. In addition to this, there are many consequences for
not following the guidelines. In the serious case, one can be fined and the owner can be put
behind the bars (Balland Ball―King, 2013). The most recent case is the Health and Safety
Executive v Polyflor Ltd (2014).

Employment Law:
The Employment Act is a result of many acts that existed in the UK in earlier times. This law is
important from an employer and employee perspective. This regulates the relationship between
employees and their employers. The act set the minimum wages and working time and rules for
leaves and holidays (Wessing, 2016). In addition to this, it safeguards the rights of the employees
by obligating the employer to form contracts. This way both employers and employees can save
their interests and fulfil each other’s requirements. It safeguards the employees from getting
exploited by the firms and vice versa

Equality Law:
The UK has legislation for equal opportunities in the organisation. The Equality Act 2010 is the
umbrella for many laws that were there earlier for controlling partiality and illegitimate
behaviour at the workplace. It prohibits the employer from indulging in any kind of
discrimination on the basis of gender, religion, ethnicity, pregnancy, disability, race, sexual
orientation, etc. In fact, the act has a special mention for the disables that empowers them to
 compete with normal employees by obligating the employer to provide special measures in the
workplace. In case of any kind of dereliction, the victim can ask for compensation from the
employers. But, it is important for the victim to bring the case within six years of the occurrence
of the event.It obligates the company to form a contract of employment that maintains the
employment relationship. It requires employers to provide to set terms in the contract, such as
hours of work, minimum wage, sick pay, pension entitlement, notice period, etc. It is derived
from parliamentary regulations and acts that might impact employee-employer relationship. It
helps in establishing flexible working arrangements that treats each and every employee fairly.

Data Protection Law:

It is one of the significant laws and the newly formed legislation. This law obligates the business
organisation to take care of the privacy and the personal data of the organisation and the clients
and customers. In short, GDPR is all about safeguarding the citizens of the UK from a data
breach. In addition to this, it provides guidance to the companies operating in the UK regarding
securing, storing, and using the personal data of the stakeholders. Being the EU parliamentary
law, it has to be followed across Europe. It provides information to the businesses to understand
and install the processes that provide safety to the business world. Heavy penalty and
imprisonment can take place
There certain basic laws that every industry or organisation operating in the United Kingdom has
to follow. These legislations include, the Company Act 2006, Employment Act 2002, Data
Protection Act 1998, etc. Most significant of the aforementioned legislations is the Company
Act. It defines various duties of the director of an organisation as given below:-
• Director should use his/her power within the firm’s constitution and only for the best interests of the
organisation.
• The decisions of the director should promote the success of the organisation.
• They must exercise the rule of independent judgement.
• They are liable to exercise reasonable diligence, care, and skill
In the given case study of JPM Publishing, the company is looking to convert into a public
sector organisation. This may have certain implications on the company. Conversion may have
both positive and negative impact on the organisation. The latter may include increasing liability
over organisation to contribute a bit into corporate responsibilities towards society. For that
purpose, company has to develop the policies regarding CSR. Company’s control may go to the
government authority. The conversion process is time-consuming and increase work load on the
organisation (Wessing, 2016). Here, some of the legalities are discussed in context of JPM going
public.
Health and Safety Regulations: Companies operating in the United Kingdom have to comply
with the Health and Safety at Work Act 1974. The Act regulates that safe environment at work
premises for all the stakeholders. For the public sector organisation, it is mandatory to follow the
guidelines given in the Act and carry out a comprehensive risk assessment. Organisation have to
provide regular training to the employee (Barak, 2016).
Equal Opportunities Regulations: Every employee has a right to equal opportunities at work as
defined under the Equality Act 2010. The act obligate the employer to treat every employee
with equal respect. Employer should provide an environment where any kind of discrimination
on the basis of sex, caste, religion, race, income, social status, etc., does not happen. In addition
to this, the law directs the employers to make relevant adjustments for the disabled individuals,
thereby assisting them in competing against the normal workforce.
Data Protection: The Data Protection Act 1998 directs the organisation to protect and preserve
the personal data of the stakeholders and users. This acts provided them with certain protocols to
follow while dealing with the personal information. In 2018, the General Data Protection
Regulations (GDPR) came into action and set new guidelines for the same.

Employment law and contract law talks about all the obligations and rights that are within the
employer-employee relationship. It is very complex relationship and involves various legal
issues, such as wrongful discrimination, termination, employment rights and laws, workplace
safety. And, almost all of these are governed by federal laws(HSL, 2014).

Right to safe workplace is the most essential employee right that talks about a workplace which
is free of toxic or hazardous substance and other potential safety hazards (Ball and BallKing,
2013).

So in this case, the employer is liable to pay compensation under the Workers Compensation Act
1943, as the fault is from the employer’s side.

M2 - You Will Differentiate And Analyse The Potential Impacts Of Regulations, Legislation
And Standards With Regards The Above Scenario.
In the above scenario, the two laws- Occupational Health and Safety Act, 1974 and Workers
Compensation Act 1943 played a crucial role together to provide a justified compensation to the
girl. Every employee has some basic rights in the work place. Differentiating the two is a bit
perplexing, still a brief of the two is given below:

Occupational Health and Safety Act, 1974:

It is one of the crucial part of legislation that covers occupation health and safety in the UK. This
act defines various duties of contractors, employers, and employees. It also defines the
substances to be used at work, set safety guidelines at work premises. A Health and Safety
Commission is established for the regulations and enforcement of this law. If anyone found
guilty of not following it, then he/she is liable to fine and imprisonment (King, 2016).

Workers Compensation Act 1943:

This law is applicable to every employer and employee working in British Columbia excluding
those who are living cross the border. It says that if in an industry or within its scope, a personal
injury or death occurs in and out of the employment to a worker, then compensation is provided
to him/her out of the accident fund (Chaklader, 2015).

M2: You Will Differentiate And Analyse The Potential Impacts Of Regulations, Legislation
And Standards .
Before differentiating regulations, legislation, and standards, it is important to understand the
meaning of the three terms.
A standard is the statements or approved steps of doing a task, characteristics of a good or
service, guidelines for processes given by some standardisation body.
Talking about a regulation, these are formed by the regulatory body regarding the
characteristics of process, goods, and services. These are the administrative provisions that are
mandatory to follow or comply with. Legislations are the laws that are formed and should be
followed by everyone in the country. They talk about the legal and illegal aspects of the business.
There is a very intricate relationship between the three terms. Regulations are important for the
business entities as they help in discarding the failure and uncertainties from the business and its
modus operandi. On the other hand, regulations increase the operating cost for the businesses by
obligating business to carry out some crucial activities. Standards can improve the quality in the
product and services of an organisation and following them can help in achieving consistency.
However, getting a certification of the standardisation and purchasing the standardisation might
affect the operating cost of the company. Talking about the legislation, they can help in
improving the employee-employer relationship. They can obligate employees and employers in
many areas.
The two laws- Occupational Health and Safety Act, 1974 and Workers Compensation Act 1943
played a crucial role together to provide a justified compensation to the girl. Every employee has
some basic rights in the work place. Differentiating the two is a bit perplexing, still a brief of the
two is given below:

Occupational Health and Safety Act, 1974:

It is one of the crucial part of legislation that covers occupation health and safety in the UK. This
act defines various duties of contractors, employers, and employees. It also defines the
substances to be used at work, set safety guidelines at work premises. A Health and Safety
Commission is established for the regulations and enforcement of this law. If anyone found
guilty of not following it, then he/she is liable to fine and imprisonment (King, 2016).

Workers Compensation Act 1943:

This law is applicable to every employer and employee working in British Columbia excluding
those who are living cross the border. It says that if in an industry or within its scope, a personal
injury or death occurs in and out of the employment to a worker, then compensation is provided
to him/her out of the accident fund (Chaklader, 2015).
LO2:3 and 4 part further Explaination:

The UK’s legal system is the most efficient and effective legal system around the world. It
covers the large portion of the population of Europe and to maintain law and order is a
challenging issue and requires a robust and powerful legal system. Many countries have based
their legal system on English Legal System like India. The English Legal System is adversarial
and it is based on the common legal system, wherein the rich and the poor shares equal rights
(Elliott and Quinn, 2015). With fundamental laws such as Health and Safety at the Workplace
Act, it safeguards the rights to safety of the workers while working. This happened in the case of
Burgess V Plymouth Cc, CA (CIV DIV). In addition to this, other laws such as the Employment
Act, data protection, contract law, etc., are making the English Legal System better than other
legal systems in the world. The only drawback in the legal system is that it is applying on the
partially coded constitution that requires amendments on regular basis (Marsonand Ferris, 2015).

LO3:Examine the formation of diffrent type of business organizations:

P4:Explain how different types of business organizations are legally formed.

For the growth and development of business organisations in the UK, there are several types of
business organisation that taken into consideration. These are mentioned below:
Sole proprietorship-
This is the business which is controlled and managed by the single owner and the owner is
personally liable for the payment of the debts (XueTing, et. al., 2018). The business owner is
responsible for the payment of all the debts, losses and liabilities arise in the business operations.
The owner has sole control over the whole business.
Partnership-
Partnership is the business where two or more partners are come together for sharing the profits
and losses as per their contribution to the share capital. The business is regulating as per the
terms and condition that are mentioned in the deed of partnership. In this business, the partner's
liability is unlimited as they are personally liable for the contribution to the payment of the
business liability and debts. The provisions of this act are governed by the Partnership Act
1890.
Limited partnership-
In this business of partnership there is a general partner who is responsible for managing the
business operations and the liability of the partner are unlimited for the business obligation and
debts. A partner with limited liability is not liable for participation in the management of the
company.
Company-
In the UK, the company is the separate legal entity from its members which can be suing and can
be sued in its own name. The shareholders are the actual and real owners of the company and
their ownership depends upon their shareholder's value (Legislation.gov.uk, 2019). For
managing and controlling the operations of the business the Board of Directors is appointed. The
company is bound with the provision of the Companies Act, 2006.

Limited Liability Company-

Limited Liability Companies are those businesses where the liability of the company towards its
business debts is limited for each of the value of the shareholder. It provides protection to the
personal assets of the shareholders in case of financial problems.

P5:Explain hoe business organizations are managed and fund

Management of business organisations:

To achieve the organisational growth and business objectives it is essential that both the
managers and the employees perform their best. It is important that the organization work as per
the rules and regulations that are necessary for business operations. Both the managers and the
employees work with loyalty while accomplishing the business task.

Funding for business organisations:

To run the business successfully, the funds are very essential for financing business operations.
There are various sources of funds are mentioned below:
Self-funding-
Self-funding is the way of funding which assists in the performance partnership operations.
These funds are gathering through family or relatives.
Long, medium and short term funds-
In this type of businesses, it includes several sources of funds in which the long term sources
satisfy the requirement of the capital in the businesses and taken for more than five years (Lopes
and Costa, 2017). On the other hand, the medium term sources are generally for three to five
years that satisfy the expenditures of revenue nature. In the end, the short term funds are the
funds that satisfy the short term requirement of the business which includes expenses for
managing the day to day operations.
Equity or preference shares-
These are the source of finance which assists the business organization to raise the funds by
issuing the shares to the internal or the external shareholders. These can be arranged internally
via the right issue which can be raised through outsiders by issuing preference or equity shares.
Loans or Borrowed funds-
Loan and borrowed funds are the loans that are raised by the company by issuing debentures and
provide interest to its holder. In case of another form of business, the business can raise the
capital by taking the loan from the banks or the financial institutions on which the interest is a
charge.

M3:Analyse the advantages and disadvantages of the formation of different types

of business:

In the case of the formation of a business, there are several advantages and disadvantages of the
business organizations are discussed below:

Types of Advantages Disadvantages

business
organisations
Limited The liability of the debts of the Limited partners, not much
partnership business is limited. involved in regular business
A partner with limited liability operations.
only responsible for the All business risk is assumed by the
 amount they invested (Pisani- general partner.
Ferry, et. al., 2016).
Sole This type of businesses has In this, the owner is personally
proprietorship tax advantages in comparison liable for the business debts and
to other businesses obligations
This type of business is easier This type of business has liability
to set up (Barak, 2016) and functional disadvantages as
compared to other business
organizations
Partnership The partnership business In this the liability of the partners is
need not have to pay the unlimited and partners are jointly
income tax or severally liable for the debts of
In this the business not taxed the business
separately
Company In this the ownership easily The legal formalities are more as
transfers and the company compared to other businesses
enjoys several taxable
benefits
Limited In this the liability of the There are less taxable benefits
Liability members is limited
Company

D2
To evaluate and critically analyse the types of business organisations are mentioned underneath:
Sole proprietorship- This is the business which is managed and controlled by the single owner.
In this, the whole business debts are borne by one single person.
Partnership- Partnership business is the business which is formed for sharing profits and losses
by two or more partners. In this the liability of the partners is unlimited (Johnstone, 2016).
Limited partnership- In this form of business, the limited partner with limited liability is not
liable for the contribution in the business management.
Company- This type of business is formed under the Companies Act, 2006 where the
shareholders are the actual owners and business operations are managed by the board of
directors.
Limited Liability Company- In this business, the liability of the partners is limited and liable to
share up to the value of the shareholders. This type of business enjoys less taxable benefits.
D4:Explaination:

1. Background of the Business:

Your client's business is a small publishing company named "F4 Book." F4 Book specializes in
producing educational materials, particularly focusing on chapters 6 and 7 of various subjects
ranging from science to literature. The company aims to provide comprehensive and accessible
resources for students and educators alike. F4 Book's target market includes schools, colleges,
and individual learners seeking supplementary educational materials.

2. Advantages and Disadvantages of Registering the Business:

Advantages:

Legal protection: Registration establishes a separate legal entity, limiting personal liability.
Access to funding: Registered businesses may have better access to loans, grants, and investment
opportunities.
Credibility: Registered businesses often appear more credible and trustworthy to customers,
suppliers, and partners.
Tax benefits: Certain tax deductions and credits may be available to registered businesses.
Perpetual existence: A registered business can continue to exist beyond the life of its owners.

Disadvantages:

Compliance requirements: Registered businesses must adhere to various legal and regulatory
obligations, which can be time-consuming and costly.
Public disclosure:
Some information about the business, such as financial statements, may need to be publicly
disclosed.
Initial costs:
There are costs associated with registering a business, such as registration fees and legal
expenses.
Complexity:
The process of registering a business can be complex, especially for certain structures like
corporations.
Loss of privacy:
Certain information about the business and its owners may become public through the
registration process.
3. Sole Trader & Partnership:

Sole Trader:

Legal Structure:
A sole trader is an individual who owns and operates the business on their own.
Funding:
Sole traders typically fund their businesses using personal savings, loans, or profits generated
from the business.
Advantages:
• Simple to set up and operate.
• Full control over decision-making and profits.
• Minimal legal and regulatory requirements.
Disadvantages:
Unlimited liability:
The owner is personally liable for all debts and obligations of the business.
Limited access to funding compared to larger business structures.
Lack of continuity:
The business ceases to exist upon the death or incapacity of the owner.
4 :Partnership:
Legal Structure:
A partnership involves two or more individuals or entities sharing ownership and management
responsibilities.
Funding:
Partnerships are funded by contributions from each partner, which may include capital
investments or loans.
Advantages:
Shared responsibility and expertise.
Potential for increased capital and resources compared to sole traders.
Flexible structure allowing for different levels of involvement and profit sharing.
Disadvantages:
Unlimited liability for general partners.
Potential for conflicts and disagreements among partners.
Dissolution of the partnership upon the departure or death of a partner.
4. Registered Companies and Their Types:

Public Company:

Legal Structure:
A public company is owned by shareholders and may offer shares to the public.
Funding:
Public companies raise capital by selling shares on stock exchanges or through public offerings.
Advantages:
Access to a large pool of capital from public investors.
Enhanced liquidity for shareholders through public trading.
Greater visibility and credibility in the marketplace.
Disadvantages:
Increased regulatory requirements and compliance costs.
Loss of control as ownership is dispersed among shareholders.
Potential for shareholder activism and scrutiny.
Private Company:
Legal Structure: A private company is owned by a small group of shareholders and is not
publicly traded.
Funding: Private companies raise capital through private investments, loans, or retained earnings.
Advantages:
Greater control and flexibility over operations and decision-making.
Reduced regulatory requirements and reporting obligations.
Privacy and confidentiality of company information.
Disadvantages:
Limited access to capital compared to public companies.
Difficulty in valuing and selling shares due to lack of public market.
Potential challenges in attracting high-profile investors or partners.
Limited vs. Unlimited:

Limited Liability Company: Owners' liability is limited to their investment in the company.
Unlimited Liability Company: Owners are personally liable for all debts and obligations of the
company.
5. Recommendation for Legal Structure:

Considering the nature of F4 Book as a small publishing company, a partnership structure may
be suitable initially, given its simplicity and flexibility. Here's how to proceed with registration
and management:

Registration Process:

Choose a suitable business name and check its availability.

Draft a partnership agreement outlining the rights, responsibilities, and profit-sharing
arrangements among partners.
Register the partnership with the relevant government authorities, adhering to all legal
requirements and paying any necessary fees.
Obtain necessary permits and licenses for operating the business legally.
Funding:
Partners can contribute capital to the business based on their agreed-upon share of ownership.
Additional funding can be sourced from loans, grants, or retained earnings.

Management:
Partners will collectively make decisions regarding the operation and direction of the business.
Roles and responsibilities can be divided based on each partner's strengths and expertise.
Regular meetings and communication channels should be established to ensure effective
management and decision-making.

LO4:Recommented apporiate legal solutions to resolve areas of dispute

P6:Recomend apporiate legal solutions for resolving a range of disputes,using

examples to demonstrate how a party might obtain legal advice and support:
Business disputes are very common and might affect business growth and brand image. The
process of establishing a business can be winding and long and might have many disputes.
Hence, tackling them while maintaining the relationship for a long-term is good for business
sustainability. There are two primary ways of resolving the disputes, namely court litigation and
Alternative Dispute Resolution (ADR). The latter is characterised by involving neutral third-
party who gives the solution to a problem between parties or disputants. In this section, various
ADR approaches that can be used for the business dispute resolution have been talked about.
Mediation:
In this process of ADR, the main goal of the third party who is a mediator is to resolve the
dispute and help the disputants to agree on an alternative on their own. The solution is not
imposed on the parties but the mediator tries to figure out the solution that is voluntary,
sustainable, and non-binding.
Arbitration:
In the method of arbitration, the natural party is kind of a judge who is solely responsible for
giving the decision as a solution after hearing both sides. The decision made by the arbitrator is
binding on both the parties and both of them have to follow it. The decision made by the
arbitrator is confidential and there is no way any party can appeal it. The process is a bit less
expensive than litigation.
Negotiation:
In negotiation, the two disputant parties are brought into direct or indirect contact through a
negotiator. Negotiations are used to lay the groundwork for healthy relations between the
disputant. No party is brought into the process of negotiation forcefully. In fact, the decision is
mutual. The parties are free to reject or accept the final decision made by the negotiator and can
oppose it. Confidentiality is maintained throughout the process. In addition to this, both parties
enjoy flexibility as they can carry out the process of negotiation as per their convenience.
Conciliation:
It is the process of dispute resolution which is confidential, flexible, and voluntary. The parties
try to solve the problem with the help of a conciliator. In this process, conciliator is asked by the
disputant to suggest some non-binding proposal. The process is free to follow and allow the
parties to choose the appropriate time, structure, content, and date as per their own convenience.
In other words, the process makes sure that the autonomy of the parties is maintained. The
overall process is cost and time-effective and both parties can ensure their confidentiality of the
matter.
Talking about the recommendation, the aptest method for dispute resolution among the
aforementioned ADR methods is arbitration. This is because the method is based on some pre-
defined principles and rules. In addition to this, both parties are bind by the final decisions.

Legal Advice’s Sources

Trade Unions:
The role played by the trade unions is very crucial as they can help the workers in defending
their pay related issues, working conditions and health and safety, job security, and working
standards-related issues. They are formed with a vision of being a legal adviser to the labour and
workers.
Legal Help Centres:
Majority of them are run by the NGOs and social activists and they aim at providing legal help
and financial help to fight litigation in the court to the needy ones. They are run by the charity.
Solicitors:
These are the professionals who provide legal assistance to individuals and businesses. They
charge their fee according to the need of the person. They operate in different legal fields.
M4:Compare and contrast different sources of legal advice and support for
dispute resolutions to make appropiate recomendations to legal solutions:
arious sources of legal advice and support are available for dispute resolution,
each with its own advantages and disadvantages. Here's a comparison and
contrast of some common sources:

1. Private Law Firms:

Advantages:

Expertise: Law firms typically have specialized attorneys with experience in various areas of
law, including dispute resolution.
Personalized service: Clients receive tailored advice and representation based on their specific
needs and circumstances.
Resources: Law firms often have access to extensive legal resources, research tools, and support
staff.
Reputation: Established law firms may have a strong reputation and credibility in the legal
community.
Disadvantages:

Cost: Private law firms can be expensive, especially for complex or protracted disputes.
Availability: High-demand firms may have limited availability or long waiting lists for
consultations and representation.
Potential conflicts of interest: Law firms may represent clients with conflicting interests, posing
ethical challenges.
2. Legal Aid Organizations:

Advantages:
Cost-effective: Legal aid organizations offer services at reduced rates or free of charge for
individuals who qualify based on income eligibility criteria.
Access to justice: Legal aid ensures that individuals with limited financial means can access legal
advice and representation.
Community outreach: Legal aid organizations often provide outreach and educational programs
to empower marginalized communities.
Disadvantages:

Limited resources: Legal aid organizations may have limited funding and resources, leading to
constraints on the number of cases they can handle.
Eligibility criteria: Eligibility for legal aid services may vary depending on income, residency,
and case type, potentially excluding some individuals in need.
Scope of services: Legal aid organizations may focus on specific areas of law or prioritize certain
types of cases, limiting the assistance available for certain disputes.
3. Online Legal Services:

Advantages:

Accessibility: Online legal services provide convenient access to legal information, resources,
and assistance from anywhere with an internet connection.
Affordability: Many online legal services offer cost-effective solutions, such as document
templates, legal advice subscriptions, and virtual consultations.
Efficiency: Online platforms streamline processes, allowing users to quickly access legal
documents, research relevant laws, and communicate with attorneys.
Disadvantages:

Limited personalization: Online services may lack the personalized attention and tailored advice
provided by traditional legal professionals.
Quality control: The quality of online legal services can vary, and users may encounter
inaccuracies, outdated information, or unreliable advice.
Security concerns: Sharing sensitive legal information online may pose privacy and security
risks, particularly regarding data breaches and confidentiality.
Recommendations:

For Complex Disputes Requiring Specialized Expertise:

Private law firms are recommended due to their depth of knowledge, experience, and resources.
Choose a reputable firm with a track record of success in handling similar cases.
For Individuals with Limited Financial Means:

Legal aid organizations offer essential support for those who cannot afford private
representation. Check eligibility criteria and available services in your area.
For Basic Legal Needs and Low-Complexity Disputes:

Online legal services can be a cost-effective option for obtaining legal documents, general
advice, and initial guidance. Ensure to use reputable platforms with positive user reviews.
For Proactive Dispute Prevention and Resolution:

Consider engaging in alternative dispute resolution (ADR) methods, such as mediation or

arbitration, which can help resolve conflicts outside of formal legal proceedings. ADR can be
facilitated by private mediators/arbitrators or through specialized organizations.
It is already discussed that there are two methods of dispute resolution i.e., litigation method and
ADR. Both of them have their own set of advantages and disadvantages. If somebody is looking
for a speedy solution for any dispute, then the latter method is the best option. ADR is a cost-
effective and time-saving method and it guarantees speedy resolving process. Going in the court
might take decades to get justice and till then, the cost would be borne by the parties (Marmot,
et.al, 2013). However, ADR does not guarantee a proper solution. In addition to this, there are
high chances of biases in the process of dispute resolution. The neutral party might not be fully
neutral. Litigation process, in this case, is at the more advantageous process as it guarantees the
dispute resolution and that too a bit fairer. However, ADR is always a win-win alternative for the
disputant parties.
D4:Expalantion:
Case Study 1: Contract Dispute

Case:
Company A entered into a contract with Company B to deliver a shipment of goods by a specific
date. However, Company B failed to deliver the goods on time, resulting in financial losses for
Company A. Company A is now seeking compensation for damages incurred due to the breach
of contract by Company B.

Teacher's Suggested Solution:

After reviewing the case, the teacher recommended that Company A pursue legal action against
Company B for breach of contract. The recommended solution involved initiating a lawsuit to
seek compensation for the financial losses suffered as a result of the delayed delivery of goods.

Alternate Dispute Resolution (ADR) Solution:

In lieu of pursuing litigation, an alternative dispute resolution approach could involve mediation.
Company A and Company B could engage a neutral third-party mediator to facilitate discussions
and negotiations between the parties. Through mediation, both companies can work towards a
mutually acceptable resolution without resorting to costly and time-consuming court
proceedings. This solution emphasizes collaboration and the preservation of business
relationships while still addressing the underlying dispute.

Case Study 2: Employment Dispute

Case:
Employee X filed a complaint against Company C alleging wrongful termination and
discrimination on the basis of gender. Employee X claims to have been unfairly dismissed from
employment and seeks reinstatement and compensation for damages.

Teacher's Suggested Solution:

Upon reviewing the case, the teacher advised Company C to conduct a thorough internal
investigation into the allegations made by Employee X. The recommended solution involved
addressing the complaint through internal grievance procedures and potentially offering a
settlement to resolve the dispute amicably.

Alternate Dispute Resolution (ADR) Solution:

An alternative approach to resolving the employment dispute could involve arbitration. Instead
of handling the matter solely through internal channels, Company C and Employee X could
agree to submit the dispute to arbitration. An arbitrator, acting as a neutral third party, would
review the evidence presented by both sides and render a binding decision. Arbitration offers a
more expedited and confidential process compared to litigation, allowing for a quicker resolution
of the dispute while minimizing disruptions to the workplace.

Other Possible Ways to Resolve Disputes and Sources of Legal Advice:

Negotiation:
Companies can attempt to resolve disputes through direct negotiation, where parties discuss their
concerns and interests to reach a mutually satisfactory agreement.
Legal Counsel:
Seeking advice and representation from experienced attorneys specializing in relevant areas of
law can provide valuable guidance in resolving disputes and navigating legal processes.
Industry Associations:
Industry-specific associations often provide resources and support for resolving disputes within
their respective sectors, including access to mediation or arbitration services.
Online Dispute Resolution (ODR) Platforms:
Utilizing online platforms designed for resolving disputes can offer convenient and cost-effective
options, particularly for businesses engaging in e-commerce or international transactions.
Government Agencies:
Depending on the nature of the dispute, relevant government agencies or regulatory bodies may
offer assistance or oversight in resolving conflicts, particularly in areas such as consumer
protection or labor disputes.
 In the case of the business world, the voluntary methods of dispute resolutions are always best.
This is because parties can carry out the process as per their time availability and convenience. In
addition to this, both parties can maintain their confidentiality and their reputation in the market
is safe (Hart and Green, 2012). Litigation lacks all such parameters and hence, it is the least
preferred solution to the problem. ADR keeps the process to continue with the consent of the
parties involved. One should go for litigation if the solution given by the ADR is not right for
any party and that can cause serious loss to it. The litigation method is best in those situations
where there are large implications and the ADR is not providing any legitimate solution
(Painterand Holmes, 2015).

Conclusion
In the following report, the importance of business law had been seen. It was highlighted that
business organisation must abide by the laws. There were four different sections in this
document. The first section talked about the English legal system, sources of laws, the role of
government of the UK in formulating laws and legislation. In addition to this, the whole process
of the lawmaking was elaborated. The next section of the report talked about basic business laws,
such as employment law, equality law, etc. In addition to this, it talked about the basic difference
and significance of regulation, standards, and legislation. In addition to this, the third part
elaborated the types of business, the process of forming a business, and rules and legislation
required to be considered while forming a business entity. The last part focused more on
resolving the business disputes by making of ADR method.

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