Business Law

Research Based Task

Question 1 - What is the distinction between statutes and statutory instruments on the one hand and the common law on the other? State which is more important and justify this.

In the U.K the most important source of law is that enacted by the Parliament. This is done largely through legislation. Legislation may be referred to as a statute law or Acts of Parliament. Proposals from the government appear in a Bill and this Bill goes through a reading committee procedure in both the House of Commons and the House of Lords before it becomes a law. Statutes are used to govern both civil and criminal law across the U.K.

Acts of Parliament cannot always cover every rule or regulation for every detail of the subject they deal with. In order to prevent the need for an Act of Parliament every time a detail needs to be updated or added to, some statutes will give the relevant Secretary of State the power to make rules. The regulations are subject to Parliament approval and are called a Statutory Instrument and are also known as Secondary Legislation. For example a Statutory Instrument can be used for the fixing of fees or charges. The Statutory Instruments can allow fees or charges to be updated without the need for a new Bill. They are usually drafted in the legal department of the government department that presented the Bill to Parliament and they name the person, usually the Secretary of State or Minister, to whom authority is given to make the changes. This differs from a statute as this must receive Royal Assent from the Queen.

Common Law is the law made by judges when they announce their decisions in each case. Judges may consider sections from legislation during a case to help aid in decision making but, common law is entirely separate from legislation. The decision the judge will come to forms part of the common law where important decisions are recorded