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Every year the government announces its programme for legislation by way of the Queen’s Speech at the State Opening of Parliament in October or November. Therefore, it is commonly said that ‘Parliament is sovereign’.

Section 1 – Nature of legal systems and legislations impacting businesses

Task 1 – (LO1 & LO2)

Every year the government announces its programme for legislation by way of the Queen’s Speech at the State Opening of Parliament in October or November. Therefore, it is commonly said that ‘Parliament is sovereign’.


a) Discus the meaning of this statement and discuss the various sources of UK Laws

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

c) Use specific examples to illustrate how company, employment and contract law has a potential impact upon business. You could elaborate by differentiating between legislation, regulations and standards to analyse potential impacts upon business.

Task 2 – (LO3)

Jane, Penny and Marie have been friends from University. They established JPM Publishing as a partnership venture after graduation. After trading successfully for few years, the partners are seeking extra funding for expansion. Their accountants have advised them to register the business as a limited company. They are interested in finding out how this might impact the way the business is managed.


Exploring the nature and formation of different types of business, critically evaluate the differences between unincorporated and incorporated business referring to how they are managed and funded; advantages and disadvantages of a partnership and that of a company.

Section 2 – Legal solutions to business problems – (LO4)

Case 1

A London-based company Champion Ltd was given cash payment to move from its site in North London to make way for the development of a new stadium by a premier league club. After moving, the company experienced financial problems due to a decline in its customers. The company has defaulted on numerous occasions to honour its payment to the bank for loans taken during the relocation but also to the other creditors. The creditors are threatening to apply to the courts for ‘winding up petition’.

Case 2

Mr Anderson was the CFO with Amber Ltd, with access to highly confidential information. His contract of employment specified that 12 months` notice had to be given by either side to terminate the contract. A competitor, Beta Ltd offered Mr Anderson a more attractive role as its CEO. In April 2016, Mr Anderson gave Amber notice of resignation, stating that: - "In short, the hopes and expectations I have had…have come to nothing and I have therefore reached the decision to leave. Accordingly, insofar as this is required, please accept this as the required written notice of my resignation." Mr Anderson proposed to take up Beta`s offer after a period of transitional arrangements with Amber, which he suggested should end on 31 May 2016. However, Amber objected to that proposal, relying on the requirement in Mr Anderson`s contract of employment that he should give them 12 months` notice. After further exchanges, Mr Anderson ceased working for Amber at the end of May 2016, having claimed that "In the circumstances, both in respect of the matters leading to my resignation and our subsequent dealings…, I find myself now in an untenable position in respect of my continued employment with Amber". Amber Ltd are seeking an injunction to prevent Mr Anderson from commencing employment with or providing services to Beta or any other competitor and from breaching his duties of good faith, fidelity, trust and confidence for a period of 12 months.


In both cases you are to recommend appropriate legal solution to resolving the disputes using case laws or statutes to support your recommendation.

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