UK Business Law: Sources, Government Role, Statutory & Common Law

This essay provides a comprehensive overview of UK business law, examining its various sources, including legislation, case laws, and European Union law. It explains the role of the government in creating and implementing laws, and it differentiates between statutory and common law and their application in justice courts. The essay further explores the impact of company, employment, and contract law on businesses, highlighting the differences between regulations and laws. Specific case examples are used to illustrate these concepts, offering a detailed analysis of how legal principles affect business operations and organizational structures. The document concludes by evaluating the legal system and its effectiveness in governing business activities.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Different sources of business law UK.........................................................................................3
Role of government in making laws............................................................................................5
Application of statutory and common law in the justice court....................................................5
Explaining impact of company, employment and contract law on business...............................7
Differences between the regulation and laws in the analysation of the impacts over the
business........................................................................................................................................8
Evaluation of legal system and law.............................................................................................9
Part 2................................................................................................................................................9
Different types of organization with advantages and disadvantages and legal formation...........9
Case 1.........................................................................................................................................11
Case – 2......................................................................................................................................13
Case – 3......................................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES................................................................................................................................1

INTRODUCTION
Business law is considered to be the that commercial law that is able to set the rules and
regulations and policies that is able to govern the activities of the business. it is the body of the
business that is able to influence the business and commerce of the country. This is also
considered to be the factor that is able to govern the contracts that are related to the corporation
and the manufacturer, sale of the good and the rendering of the services that is able to help in the
protection of the liberty and the rights of the organizational individuals. In this project the
different sources of law that are essential for the organization has been considered. It is also able
to explain the role of the government in the law for the better law making and also the
analysation of the common law that is application for the justice of the courts. In this project with
the use of specific examples an illustration of how the company is employed and affects the
contract law has been analysed with the potential impact on the business.
MAIN BODY
Different sources of business law UK
Following are the major sources of law in UK,
Legislation enacted by Parliament
The constitution of UK is unwritten as it has been described as the partly written or wholly
unwritten. The most of the constitution of the UK has been considered to be the had written in
the laws passed by the parliament. These laws have been passed by the parliament or the form of
legislation and its application in the whole country. The parliament is the supreme legal authority
which is applicable towards the whole nation (Test, 2021). It can be found that the UK has some
rights that are enacted as the law for the management of the business operations. These laws
allow the challenges to be faced effectively and managed according to the parts of the operations
that are required for the superior and is said to be challenged by the delegation of the law.
Primary Legislations
This legislation includes act of the parliament or status which is and enacted by the
parliament (Rogge and McGinley, 2022). Statues are interchangeable terms which is able term
which is able lays out the general intention of the parliament in particular field.
Delegated legislation:

It can be explained as the legislation that includes the different instruments that is used
for the making the people act under the authority of parliament and are able to give the powers
towards the fulfilment of the details that explain their actions.
Case Laws
The case laws are said to be the judgement that is made by the court for the particular
case for the which the written in the law reports that has are able to provide the principles which
are related to the protection of the rights of individual which are against the rules and the law that
are stated (Huanyang, 2020). These laws are considered to be the reports which are written
judgement by the court that includes the details factors that provide the reason that is given to the
judgement of a particular case. This has been the development that is essential for the law that
depend on the report and also the factors issue, and the decision of the court which can influence
the nature of the legal principles that make the judgements. There is success in the development
from these laws which has been developed for the legal principles that is able to make the
judgements. The doctrine of judicial precedents enables the reported decision by law to form the
binding source for the future decision-making. Law reports refers to differences individual series
which are appeal case, queen bench family and chancery division.
European Union Law
European Union Law is the international sources that creates a law it is also eh system
that is able to provide the rules that are essential for the union. The primary law of the European
union is related to the treaties agreed between members of the European that is able to influence
the European union. This is able to structure and also govern the situations of the EU to set by
treaties. The secondary law is considered to be the law that is able to influence that is able to
gather the objective and principles of the treaties (Adeyemo, 2020). These treaties are the ones
that have power that is able to make the changes in the secondary law. This European body is
making institution as follows,
 It is the European commission that proposes the new laws
 European parliament formation
 Council of European Union
Whenever there are any kind of disputes between the interpretation of laws it can be refereed
that the court of justice of the European union is looked forward into. There are different

principles that re used by this body for the making decision to the where law that is essential for
the ways in which they are able to made are,
 Conferral
 Proportionality
 Subsidiarity
Role of government in making laws
The government the country is responsible for running and management of the country. This
is the government and the parliamentary structure that is able to play an essential role in the
making of the law and the regulation for the maintenance of the business properly and to protect
the rights of the individuals (Parliamentary Function of Lawmaking, 2022) These laws are
considered to be made for being able to analyse the functionality of the ways in which the
business can draft of the function that are related to the law-making. It can be said that the
drafting of laws for the factors that implementation for the parliaments for the prior to adoption
for the essential. These laws are able to be published of the white paper that is able to influence
the practices that are essential for the published of the country and ministers that is the
responsibility of the law in UK. The ministry of the government that is able to make it approved
so that to be legally imposed (Mandal and Aiyanna, 2020). The discussion and the finalization of
the policy is considered to be relevant for the ministry to be issued for the preparation of the
white paper that is debated and also adopted by the parliament for the cabinet members for being
approved for the similar sort of discussion. The law of this organization has been recognized as
the country that is able to minister the responsibility of the whole country is considered to be
essential for influencing the operations.
Application of statutory and common law in the justice court
In the court of justice, the application of the common laws for serving the justices which is
relevant to the ways in which there are judgements that are made for making common laws. The
laws that are made by the government is considered to be the influence that allow the common
laws to be found in making judgement or the laws that is already implemented in the particular
cases that is amended with the necessities that influences the particular cases where the
amendments that are essential. The judgements that are essential for the common laws that is
made for further being able to achieve the statutory judgements that is required for the
achievement of the amendments that is necessary for the high court. These laws have been

written in the reports of the law as the key factors that are able to influences the further
judgements in the similar cases (Helleringer, 2018). Some of the common existing laws that does
not as the face the determines other than the determination of the other cases. These judgements
are also considered to be the factor that is able to bind the future of the lower courts. Statutory
law covers all the areas that are issues that can arise in the many operations which can affect the
legislative practices (Wilke and MacPherson, 2019). The court is able to study and also evaluate
all the statutory and common laws that are ready to make the judgements on the any particular
case. This is essential for the evolution of the allow the both statutory and common laws which
are able to make the judgements on the any give case. Thence for the use of the statutory and
common laws to make judgements of the give case. The use of the statutory and common laws in
the case that is essential laws that is able to case the of the Fisher v Bell. In this case the
shopkeeper is able that is kept for the knives for the sales that is sale and also arrest the offering
the weapons. This is the court that is passed the judgment that is able to treat that is invited for
the offering.
The differences between the statutory law is nothing but the legislation that is able to
make the government bodies or the parliaments to be able to converse common law for the one
that arises for the decision that are made by the judges. Hence it can be found that the common
law is on that is able to make the decision which is regarding the judgments of the court and the
justice. Common law or the relevant fact and the evidence of the case that is in the past (Wheater
and Proudlock, 2018). It has been found that there are major differences that are against the
statutory law that is based on the statutes enacted or imposed by the legislative body of the
country. Common law is the procedural law that is comprised of the set of rules that are
presented in the court preceding’s which is needed to be separated from the statue to be able to
establish the must require operations. This is also the common law which is considered to be
statutory law that is able to amend the statutory law through the separation of the statue which is
needed to be established for the preparation of law making. Common law is the one that is able
to render in a given case about the statutory law which prescribes for the best governing rules of
the society. It is also known to be the common law the is involved in the decision making of the
judges from the past for being able to generate the law that has been prescribed by the best
governing rules of the society.

Explaining impact of company, employment and contract law on business
There are distinct types of the laws which are required to be taken into the consideration
so that effective functioning in the market can be derived. In the current era, possessing in the
smooth manner the company need to pay attention on having the relevant application of
activities that can allow complying with the prevailing requirements. Company law is basically
associated with possessing the better relationship so that accomplishing reliable ability to
coordinate with the prevailing circumstances can become possible. In order to have effective
processing the firm require to conduct its overall actions in such a manner that can helping to
gain competitiveness by setting the legal framework. This can permit to get the reliable level of
processing so that attaining objectives in effective pattern. It provides the assistance in gaining
the proper information regarding the caivities that are needed to be taken into the cosideration so
that higher performance to develoFor becoming successful it is important for the company to
give emphasis on having effectual functioning to get higher profitability by complying with the
prevailing requirements.
Employment law is related with having the effective performance from employees by
giving various facilities like offering ethical working scenario, proper working hours, significant
working remunerations, etc (Lockton and Brown, 2020). These can help in offering the
motivation to employees in order to perform effectively so that reliable level of growth and
development deriving can become possible. This can provide assistance in receiving distinct
pattern of benefits so that accomplishing higher productivity, good employee satisfaction, good
brand image, competitive edge, optimum utilization of resources, etc can be achieved. This
permits developing good relationship with employee that can allow to eliminate the irrespective
employee turnover so that good profitability & stability in environment of business. On the basis
of this it can be articulated that having effective performance by developing significant position
in market.
Contract law is associate with having the agreement that can give rise to obligations in
which enforced by law that create agreement, contractual intentions and consideration
(Eisenberg, 2018). On the basis of this it can be articulated that it helps firm to have exchange of
consideration and acceptance. It aids the company to get positive impact as irrelevant
obligations that can be eliminated that can help in achieving reliable level of performance by
maintaining good brand image in market. Contract law is related with maintaining good brand

image in market by possessing better visibility to meet the duties and achieve the objectives as
agreed per the agreement. For example, the case of the Fulham football club ltd. v Cabra estate
plc which is the director that didn’t making the use of their powers. This is also the company act
which consists of the framework that is the small business which has encouraged the people to be
able to grow their business. This agreement is needed to be must provide as a copy of the
contract that is essential for the employees. This contract law is able to signify that the rules and
regulation that are able to compile by the parties while. This is also the contract that is able to
include the penalties and the fines that are imposed on the breach of the contract. It also provides
the penalties and the guidelines which the company needs to enter into the contract and its
functions.
On the basis of the above illustrated information it can be articulated that there are
various form of laws which are required to be followed as it can positively impact in case it is
adhering with it. In case firm is not having the compliance with get the negative impact which
can hamper its overall position b declining competitiveness.
Differences between the regulation and laws in the analysation of the impacts over the business.
The differences that exist between the laws and the regulations comprises of the following.
Legislation is the directive proposed by the legislative body while the regulation are
requirements that are present within the legislation. This is also the legislation that is able to
provide a broader and more general while the regulation is something very specific to the
legislation that has been enforced. This legislation is also considered to be the proposed of the
head of state while the regulation is considered to be the enforcements that is able to help be
enforced meanwhile the head of the state does not have any interferences in them (Wheater and
Proudlock, 2018). Legislation is also considered to be the most internally generated within the
country government regulation but has been considered to be the internally or externally
generated especially pertaining to a certain type of industry. This is essential for the legislative
body to be very effective in the management of their performances.
This is also the legal system changes according to the requirements for the laws and order, it
is also able to govern the corporate entities and its functions. This has also been able to provide
the acts and also the laws that are essential for being able to provide a very smooth functioning in
a business. It can also be said as the legal system that is able to affect the most efficient system

that is able to ensure the justice and also provide justice to all the individuals that are in the
society. It has been acts of the full legislation which is able to enable the justice and also
influence. This is able to influence the smooth functionality that is able to affect the business and
its operations. This is able to affect the smooth functioning that is able to impact the business aim
the mitigation of the issues that might affect the working business. These regulation and
legislation are beneficial for the organization as they are compliance to them with the result of
growth in the organization. Such regulations are considered to be the negative aspect of positive
impact over the business which deals with the dependency of the type and size of the
organization. These impacts of the business have been on the dependency of the future for
affecting the legal results.
Evaluation of legal system and law
The laws and the systems that changes the requirements of the law and order would be the
reason that affect the overtaking of the smooth functions of the organization. There are other
factors that influence the legal system of the most efficient legal issues that are related to the
functioning of the organization. Hence, it can be said that ensuring of the justice in a very
individual society is a factor of justice that allows the society (Wilke and MacPherson, 2019). To
act as the law that influences and also enables efficiency of the solution that impacts the disputes
which may affect the business. This can be said as the factor that influences the O'Brien v Bolton
St Catherine's academy (2017) which was related to the discrimination practices that were held in
the unfair dismissal of the company that was found guilty towards the terms of the contract and
judgements of the country that was against issues that a business. These regulations can be said
as the issues that is going to be developed in the operation of the effective practices. This is
essential was a guilty according to the terms in the contract and judgement of the court was
against the company.
Part 2
Different types of organization with advantages and disadvantages and legal formation
There exist a varied range of organizations namely sole proprietorship, partnership,
limited liability partnership, and limited company.
Sole Trader
It is that form business which is considered as the easiest way of establishing and running
the business. The sole owner is entirely eligible to have all the profits and the authority to take

the decisions. There are various advantages that can be enjoyed by the owner of such a business.
The start- up costs are minimum making it easy to establish and operate. There is con of
unlimited liability and limited capacity of raising funds (Dommett, Kefford and Power, 2021).
There is legal formality of registering the business with the HMRC. Also self-assessment tax
return is to be filed.
This business type organization is wholly funded by the sole trader who is the only
controller and manager of such entity. The funds may be arranged for the establishment and
running the activities through varied sources like personal savings, loans from banks or other
financial institutions, retaining profits for expansion purposes and angel investors.
Partnership
In partnership form of business two or more individuals come together the profits and
losses of doing a business. The partners of self – employed in unincorporated partnerships. There
is responsibility with such partners in respect of the losses that the business undertakes. One of
the other disadvantage can be misconduct by one is suffered by all. The legal formalities include
registering with the HMRC and Companies House. In addition to this rules & regulations of
partnership acts are applicable (Hunt, Sarkar and Warhurst, 2022). Health & safety laws,
employment & labour law are also required to be compiled with.
In this capital is contributed by the partners. It may be decided to involve financial
institutions like bank to borrow funds. Profits are also reinvested in the business for expansion
and growth purposes. Business is managed and control by the partners.
Limited Company
The organization that owned and managed privately by shareholders is classified as
limited company. It is required to pay corporation tax. The advantages are that owners’ liability
is limited to the extent of capital invested by them and hence their personal assets are not at stake
while running the business. Company has a separate legal entity. Establishment of company is a
complex process. The costs that are involved in getting the business start is huge and legalities
inclusive of paper work is also an issue. Accounts are to be publically published and hence there
is difficulty in maintain privacy. Certificate of incorporation is to be get by registering to the
Companies House (Borraz and et.al., 2022). Registering with HMRC is must and all the laws are
to be compiled. Further the legal aspect includes drafting of Memorandum and AOA (articles of
association).

There are two variations to this type of limited business. It can either be limited by shares
or by guarantee. In a company limited by shares and incurring losses or facing difficulty is
paying debt amount shareholders liability stays limited to the amount they have not paid against
the shares. And in a company that limited by guarantee there exists no shareholders or share
capital. Members are the guarantors of the company.
The capital structure of limited companies is divided into two components: shareholders’
capital also known as owners’ capital and borrowed capital. Equity share capital, preference
share capital and retained earnings are parts of owners’ funds (Verbeke and Ciravegna, 2018).
Bonds, debentures, term loans from financial institutes & banks are classified as borrowed funds.
Directors are appointed from the shareholders who are responsible for running the business on
the behalf of such shareholders.
Limited Liability Partnership
This form of business is like partnership form of business only with difference that the
liability of partners is limited. Such an organization requires to get registered with the
Companies House and HMRC. Accounts and prepared and filed annually. Two or more
members are required to incorporate such business. Profits and responsibilities are shared among
the partners. In the agreement of limited liability partnership (LLP) details of sharing are stated
out (Godke Veiga and McCahery, 2019). Every year each member of the organization is required
to submit self- assessment tax return. Income tax is to be paid on each partner’s share of profits.
HMRC is the authority to whom national insurance payments are made.
Case 1
Orange computer Ltd store gives their salesman salary and commissions on any sale such
salesman makes. The heavy competition in the market led the company to suffer financially. It
resulted the company in asking all its employees to take only the payments of commission and
leave the amount of their salaries. This happened as the company was not in a position to pay for
its obligations against salaries. For the three consecutive years that are 2015, 2016 and 2017 the
salaries were not paid. The company revived and started doing well along with the growth in the
economy. One of the salesperson whose name is Gordon feels like the company has enough
profits to pay for his salary along with the commission for the year 2017. And he wishes to know
whether he is eligible to claim the salary for the past years that are 2015 & 2016.

This case of Gordon and his employer comes under two acts. These two acts that are
applicable are contract law & employment law. It is clear from the case study that there is a
contract of employment. Both the employee and employer are compelled to adhere to the terms
and conditions mentioned in the employment contract.
The parliament of United Kingdom has the employment act, 2008. Orange Computers
Ltd. store entered in the contract of employment with Gordon, salesman. According to the
contract Gordon has rights to receive an annual salary of £ 10,000 and commission on the sales
he makes at a rate of 9 percent. The company was facing tough times and proposed their
salesperson to accept only the payment for commission and forgo the salary for three years
starting from 2015 ending at 2017. Gordon accepted the proposal and agreed to receive only the
payments for his commission. There is no written evidence of this event between store owner
and Gordon. As per the contract act any changes in the agreement relating to the terms and
conditions stated between parties requires creation of new contract. In this particular case the
only contract between the parties is the one saying Gordon is to receive both salary and
commission amount. So as per the provisions of the contact law Gordon have right to get his
salary for all the three years.
Fitz v Holland and Barrett Retail Ltd is the case law similar to the given case. In this Fitz
was denied to be paid by the employer and the defendant of the case during the winding up of the
firm. as per the employment contract Fitz was to be paid in accordance to the number of hours
the services they have provided to the company. At the event of winding up of the company
employer argued that it is normal phenomenon of not getting paid in the retail sector for the
managers. Plaintiff worked for more than 200 hours for the year. It was found out that in the
employment contract there was no reference that the hours spent by the Fitz over the fixed hours
will remain unpaid (Case law: Ruling clarifies when employers must pay employees for extra
work performed out of hour, 2022). The court passes judgement in the favour of the plaintiff and
directed defendant who is the shop owner to pay for the hours Fitz worked over his actual
working hours as salary and any extra hours worked for to be settled by giving compensation.
This decision was entirely based on the provisions of employment law.
The store Orange Computers Ltd. did not compile to the terms of the contract. The
company is liable to pay the salary even for the years if incurs losses. By non- paying the salary