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Business Law


The following assignment is divided in to two parts. Each part consists of two separate answers to the questions related to business law.

Part A

Question 1

Common law

According to Bankowski, MacCormick, and Marshall(2016), with reference to the English legal system, “common law” is stated as the law that involves judges to apply law equivalent across the region. The common law is derived from customs and precedents whereas the statute refers to the primary source of law that involves the acts of parliament, statutory instruments, and orders in the council (Postema 2019).

How common law differs from statutes?

The common law refers to the rules that allow the region to be governed for the human behaviour and activities within a civilized society (Llewellyn, 2016). For the common law explanation it could be stated that the doctrine of binding precedent allows the courts to apply principles on the basis of the previous cases or the court of records involving both substantive and procedural rules. Whereas a statute refers to a formal writing that states the legislative authority to have the capability to govern the legal entities of a state. This involves the command or the prohibition that is mentioned in the statue law to declare a policy in a region.

The common law may be replaced by the legislation or the statute where the offences like of theft require Theft Acts 1968 and penalties for the murder require legislation under statutes such as the Homicide Act 1957 (Postema, 2019). This explains that for the common law the judges have limitatiosn for the reforms that are derived from the statute. This means that the parliament has the capability for change where the need for change involves the consultation by the Law Commission and reviewing on the old or inadequate laws.

Question 2


Tribunal for a person or an institute is the ability to judge and advocate a claim or a dispute (McEldowney 2018). In the recent times, the increase in the use of tribunals allows the individuals or the institutions to address the legal issue through various approaches.

Advantages and disadvantages of tribunals

Following are the advantages and disadvantages for using the tribunal (Farmer 2019):


  • The decisions made through the tribunals have a legal binding in order to comply with the judgment. This requires the process undertaken to be fair, just, and formal.
  • The tribunals act as the alternative for decision making on the claims and disputes. Thus, instead of the courts involved for the legal matters, the tribunals allow the parties to represent themselves as the lawyers for the case.
  • Not only the tribunals eliminates the long processes undertaken at the courts and higher costs applied for the professionals fees, the faster hearing helps address the situation promptly with fewer people involved.
  • With lesser appeals, the tribunal judge could hear the case and refer to the sound knowledge of the issue in the dispute as expert opinion or judgment is involved.


  • The delay could be reported for the tribunal decisions as higher number of cases is resolved through this process.
  • The tribunals involves the individuals or institution to take decisions for the parties, however no public funding is involved for the process causing a disadvantage for one of the parties who could hire a lawyer instead to make the process for efficient or fair.
  • The tribunals may cause confusions to arise due to individuals acting as lawyers for their case.

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Part B

Question 1

Difference between a Public Limited Company (PLC) and a Limited Liability Company (LTD)

For the companies to set up business, the approaches involve going public or operating as a private entity. As the businesses have the opportunities for both forms of operations, the Public Limited Company (PLC) and a Limited Liability Company (LTD) carry distinctive attributes, which may have both advantages and disadvantages to set up a business.

The limited liabilities companies in the UK are legal entities that own assets, liabilities, and profits with limited liability protection features (Morrison 2019). This involves the features for the operational flexibility of a partnership and tax efficiency. No taxation is involved for LLC owners as it is for a separate business entity and offers members with complete liability protection (Morrison 2019). The LLC owners carry no personal liabilities and allow the members to state profits and losses on personal federal tax returns.

On the other hand, the public companies have own profits, assets, and liabilities where the shares are freely sold and traded to the general public in the public domain (Geng 2018). This involves the stock exchange for the encouragement of public investment and requires incorporation of Companies House. 

Both the entities carry differences due to the offer for share sold to general public in public entities, requirement for directors (public require two where as private requires one), and the limitation for the shares that public companies cannot buy their own shares (Geng 2018).

Advantages and disadvantages of LLC and PLC

The following table consists of the advantages and disadvantages for both LLC and PLC (Bharadwaj 2020):

Question 3

Reasons for the decision in [Mohamud vMorrison Supermarkets]

Studying the case of “Mohamud v WM Morrison Supermarkets plc [2016] UKSC 1”,  it has been identified that the court rejected the claim of Mohamud in favour of the employer. Following are the reasons for the decision (Lam 2017):

  • No sufficient linkage among the role of the employer and assault had been identified.
  • No alter test had been required for the case
  • The close connected test had been enough to state the decision (the close test had been brought up through “Lister v Hesley Hall Ltd [2001] 1 AC 215” case)
  • The employer had been in the capability of his role to respond to queries
  • No personal linkages are involved in the assault
  • Gross abuse of the position is irrelevant





Carry no restriction on the number of members

Flexibility among the members for management structure

No requirement for the annual paperwork

No owner is personally liable for the business liabilities and debts

Have operational capacity

Shares open for public

Accurate representation of current financial position, profits, and tax responsibilities.


Difficult to transfer ownership

Limited Life


Increased conflict due to different directions

Potential for Loss of Control

Vulnerable stock market

Increased legal implications

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Bankowski, Z., MacCormick, D.N. and Marshall, G., 2016. Precedent in the United Kingdom. In Interpreting Precedents (pp. 315-354). Routledge.

Bharadwaj, S., 2020. Contents of Memorandum of Association: Name Clause.

Farmer, D., 2019. Representing Yourself In Court (CAN): How to Win Your Case on Your Own. Self-Counsel Press.

Geng, J., 2018. What are the corporate governance challenges for family businesses?: A comparison of the United Kingdom and China (Doctoral dissertation, Lancaster University).

Lam, J., 2017. Vicarious Liability for Assaults after Mohamud v Wm Morrison Supermarkets PLC. HKJ Legal Stud., 11, p.1.

Llewellyn, K.N., 2016. The common law tradition: deciding appeals (Vol. 16). Quid Pro Books.

McEldowney, J., 2018. 13 The UK Supreme Court and Parliament. New Challenges to Constitutional Adjudication in Europe: A Comparative Perspective, p.31.

Morrison, K., 2019. Theory of the Firm and the Law'. Management for Scientists. Emerald Publishing Limited, pp.17-31.

Postema, G.J., 2019. Bentham and the common law tradition. Oxford University Press.

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