Business Law: Sources, Role of Government, and Impact on Business

This document provides an overview of business law, including the different sources of law, the role of government in law-making, and the impact of company, employment, and contract law on businesses. It also discusses the legal formation of different types of business organizations and evaluates the effectiveness of the legal system in terms of recent reforms and developments.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1.......................................................................................................................................................3
Different sources of law..........................................................................................................................3
Role of government in law-making.........................................................................................................4
Statutory and Common law applicability in court...................................................................................5
Evaluate effectiveness of legal system in terms of recent reforms and developments.............................6
TASK 2......................................................................................................................................................6
Using specific example illustrate about how company, employment and contract law can create impact
upon business..........................................................................................................................................6
Legislation, regulation and standards to analyze potential impact upon business....................................7
Critical evaluation of legal system and laws............................................................................................8
TASK 3.......................................................................................................................................................8
How different types of business organizations are legally formed...........................................................8
Advantages and disadvantages of unincorporated, incorporated business.............................................10
TASK 4.....................................................................................................................................................11
Recommend appropriate legal solutions open to the Head of HR in case..............................................11
CONCLUSION.............................................................................................................................................14
REFRENCES................................................................................................................................................15

INTRODUCTION
Business laws are those types of laws which are there to help an organization in its
establishment according to the legal framework prescribed under law. These laws are also known
as commercial laws because they deal with various aspects of business organization and also
explain about rules and regulations formed for such organizations to set-up. Nature of such laws
is very dynamic as they help in growth of business organization within legal framework given
under laws related to this. These laws cover a wide scope of performing those activities that
helps in making procedure of establishment easy. In the following file various sources of law,
role of government in law making, statutory and common laws is going to be explained. Further
covering employment, contract and employment law is to be covered. In the end ADR and its
applicability under various situations is to be analyzed.
TASK 1
Different sources of law
As per the laws in UK various kinds of main elements are their which are required for formation
of laws. Such elements are known as sources which relates to basic structure of law. Certain rules and
regulations has been related to society. Sources are very important for promoting of knowledge over
those seeking for career in law. It is an affective polls that covers practical and theoretical studies of law.
Such sources are divided into two parts. They are primary and secondary sources explained as follows :
(Peterson, E.A. and et. al. 2016. )
Primary Sources: Such sources are an important and basic element is used as a base in
law and its content. These sources are being explained under following forms that is as follows:
Case law: They are those types of sources which act as very important part in formation
of law. Judgments are included in it that has been passed by court and contains various aspects
like facts, issues, decision and legal principle. All these are determined under a report from
known as ‘law report’. This report covers those important cases which have helped in giving
base for identifying loop holes in various laws(Allen, C.H. and et. al., 2016.).
.

 Legislation: It consists of two houses in which a bill is presented and debate is
taken place over it. These bills include those rules and regulations which help in
governing of rights and individuals existing in the society.
Secondary sources: These are that sources which helps in doing interpretation of law as
it is. This helps an individual and law professional to understand the law completely in
depth. Such source are explained as follows:
 Legal Encyclopedia: This provides information about the definition and meaning of a law
in general. These are useful for understanding meaning of legal terms used regarding
various crimes.
 Parliamentary and no –parliamentary: Such kinds of publications are related with
commands and those papers which have been enacted as laws. They are posted upon
government websites and also are available with government agency.
 Law Commission: They are those bodies that are formed by government of UK in order
to reviewing of the act enacted by parliament for benefit of people in society. Suggestions
given by the helps in covering loop holes present in an organization.
 Text Books: These are one of the most important sources of secondary nature as they
help in providing of reliable information which helps in studying about laws and various
concepts. This makes them aware about how these laws can be used for benefit of
society(Hamad, H., Elbeltagi, I. and El‐Gohary, H., 2018).
Role of government in law-making
Government has a very important role in forming of laws and policies that is required for
improving discipline and order in society. These rules and regulations have to be formed
by parliament in UK. All this is done through proper procedure that is very necessary to
be followed for forming of law and they are:
First Reading: In this stage a bill is presented and major components of it are readied out
in front of House of Commons. Other than this nothing is done at this stage.
Second reading: Under this detailed related to bill is discussed. Also debate is done over
it. Important things about bill are discussed and whip system is followed which is mainly

used for getting support in favors of bill that is presented in the house. All this is done to
generate votes in favors of draft presented.
Committee Stage: At this stage the bill is put in front of House of Commons and also
detailed examination of bill is done by this house. If required then amendment can be
done in bill at this stage.
Report Stage: At this stage debates are done over the amendments made in bill. Again
bill is voted upon in the house.
Third Reading: In this stage bill is re-presented to the house. Debate is done over the
bill ageing and vote is done for rejection or acceptance.
House of Lords: Bill is again sent to House of Lords after going to five stages mentioned
above. Amendments are done and sent back to the House of Commons for consideration.
Royal Ascent: This is the final stage of the process in which monarch has to approve the
bill and the only it can be enacted as law within a society.
Statutory and Common law applicability in court
Common law: These are those kinds of laws which are related to the judgments that
have been passed by judges under certain landmark cases. It consists of some important elements
of case such as facts, summary and major issues formed in a case. Also such judgments become
a most important part for taking decisions in cases that contains similar facts or evidences. In
courts these are used for this purpose only. Also making of new laws is not required and
loopholes can be covered on the basis of judgments passed in certain cases. In simple words this
can be understood as these laws help in esaydown of procedure of justice.
Statutory laws: They are referred to as those laws which are concrete in nature and are
made by government in order to maintain balance in society. These are formed by following a
proper procedure. Bill is presented to both the houses and then only it is enacted as permanent
law all over the country. These structures of legal system upon which statute are formed. These
are used in courts for complying over certain cases related to an individual. As these laws are of
permanent nature they are always going to be used for cases that are there in the court and are

applied in each case of various situation considered legal under the eyes of law(Lasprogata. and
Foster, 2016)..
Evaluate effectiveness of legal system in terms of recent reforms and developments
Laws in UK have gone through lot of changes and reforms but still there are lots of flaws
or loopholes which can be noticed easily. The complexity of legal procedure and long procedure
in forming laws has made it very difficult to of loop holes in the laws adjust with modern
scenario. This has created lot of application density and also lack of coordination has taken
place. This has resulted in needs of making significant changes in enhancing of laws and legal
system. So it is clear that improvement is required in legal system of UK and has to promote
more transparency in it.
TASK 2
Using specific example illustrate about how company, employment and contractlaw can create
impact upon business
Various laws are there which has come into existence for regulation of business
organization. Certain important laws create very strong impact over such organizations and these
are explained below:
Company Law: These are the laws that has been formed in order to deal with issues
related to corporate world and organization. Rules and regulations with regarding this has been
explained under Companies Act, 2006. This act consists of rules and regulations which help in
forming of those rules and regulations that is necessary for business to sustain. These laws also
provide those concert rules and regulations which help a company in getting all privileges under
this law. Any kind of violation is done by a company of any of these laws then can be sued for it.
For example CJS Pvt. Ltd has raise funding for expansion of business. It is clear that a company
has failed in properly utilizing its financial resources as it has not used fund for the same
purpose. Case can be filed against the company (Allen, 2017)
. Employment Law: They are one of the most important laws which are very important
from view point of sustaining relationship of employer and employee. Also laws of such kind are
very much important in dealing with rights and duties of employee and employer. Under these

laws only various specific rules are give which deals with safety and protection of employee at
workplace. They are applicable in a business under the Employment Act of 2002 and Equity Act
of 2010. For, example if an employee is being harassed by his higher superior, in this case case
can be launched against him or company.
Contract law: These are those types of laws that play a very important role in formation
of agreement between two business organizations. These relations are formed on the basis of
agreements and these agreements are later on converted into contract that gives them legality in
the eyes of law. These laws are very important from the motive of carrying out transactions and
there legal regulation. The entire situation regarding this is mentioned under contract formed. In
UK such laws are governed under Sale and Supply of Good Act. If at any time any rule is
violated then contract is revoked immediately. If a contract has been signed between SCJ Ltd to
its supplier within stipulated time and is not followed by him then contract can be revoked.
Legislation, regulation and standards to analyze potential impact upon business
Legislation: Such kind of amendments are of permanent nature and are being formed by
the government of an country. These are formed through following of proper procedure and
discussion over bill presented in the parliament. After this only the bill can become law that is
applicable over all the country. These laws helps in protecting individual and public at large from
various problems occurred within a society. All such laws are applicable to business
organizations also. Such laws are very important as major role is played by them in helping
growth of an organization and also of individual (Fici, 2016).
Regulations: It is considered to be those kinds of instructions which has been formed in
order to ensure that all activities in an organization has been performing in smoother manner.
Also administrative actions is being controlled through these regulations only.These regulations
are set up by a company out of the policies formed by government for establishing of these
regulations. Only existing laws are considered as basis for forming of regulation. Applicability of
these regulations is mandatory. This regulation gives a strong base for administrative department
to work with more efficiency and consistency.
Standard: They are that type of guidelines which has that kind of requirements which
has been formed by an organization. It is very important and has to be followed by an

organization. These are o be implemented in order to make goods and services production very
fast. Is also helpful in achieving of goals and objectives. Also government adopts these standards
for ensuring that they are able to fulfill the safety standards given under law. It is moral duty of
government to set up standards keeping in mind rights of citizens. These standards are formed
using legislation and regulations as base.
Critical evaluation of legal system and laws
Law is very wide and of dynamic nature that is why it consist of those important aspect
of society which are to be handled through care. Law has been into existence from the very long
period of time in UK it is there since the time if monarch. Common law use to exist and is still an
important law making tool used by government. Effectiveness of legal system in UK is very less
because of complexity of legal system in UK. Laws are not been amended timely which make
them loose modernity in such system. Criminal law has been developed for dealing with crime
and civil law for individual wrong. Also employees are being protected under employment law
and agreement is formed as per contract law, then company laws are there that gives concrete
structure of organization. Legal system of UK is very much outdated and has failed to match
standards of modern laws. More strict rules are to be framed by them which can give boost
towards smoothing functioning of legal mechanism of a country.
TASK 3
How different types of business organizations are legally formed
Certain organizations are their which are dependent upon various kinds of rules and regulation in
order to establish itself within an country. Such type of organizations has different key features and
process of establishing themselves. These organizations are known as business organization. Such
organization can be of various types and belong to different category depending upon is process of
establishment and are explained as follows:
 Sole proprietorship: Such organizations are one of the most common form of business
organization to be run. This type of organization is run by an individual and he is the only
owner of it. All activities regarding the business is handled by him. Process of
establishing this organization is very easy and not complex in nature.
 Partnership: Such organization is required to be formed by two or more person. Under
this both these parties come together in order to form an organization and all

responsibilities has been taken by the partners together. All the partners work for a single
goal of achieving profit from it. Liability is not limited in partnership firm and all
arrangements are done by partners themselves. In order to form such organization no
legal document is required.
 Joint Venture: Such organizations are those types of organizations that has come
together to achieve common goals that has been set-up by the persons forming it. In this
type of organization main focus is over higher gains and better opportunities to earn it.
Agreements are signed between partners before forming it.
 Private Company: These are those types of organization that has been appointed in
order to take care of the company. In such type of organizations shareholders are their
which has invested in the organization. Shares are not for sale to public only to
shareholders themselves. Also these companies are having rebate in tax payment and
liability of owner is also unlimited. .
 Public Limited Company: In these companies there are multi pal owners which means
that shareholders of such companies can be public. Main aim of these companies is to
provide all persons and individual with its services or product. Capital invested in it are
very huge in amount that includes issues sharing, , making bonds and also forming
debentures. Funds are raised through loans from various government institutions and also
from government organizations.
Advantages and disadvantages of unincorporated, incorporated business.
Incorporate Organization: Such kind of organizations has its existence in the eyes of
law because these are formed by following a proper procedure. Also agreement and formation of
contract takes place within it. Fund raising is also very easy. Advantages and disadvantages has
been explained as follows:
Advantages:
 Companies of these kinds are required to follow proper procedure with perpetual
sequence.
 These organization are considered to be separate from its owner and a case can be filed
within the name of company not in the name of its directors.
Disadvantage:

 Information remains confidential and it becomes very difficult to disclose it.
Proper protection is guaranteed of sensitive information.
 As it involves long process of establishment as lot of documentation is required to
be submitted which makes it expensive.
Unincorporated Organization: This business organization has to perform major
operations and events only from the objective of earning profit. Major point of this organization
is that no legal bonding of paying tax is there and organization does not have to face legal
consequences of any kind. Sometimes fund rising also becomes difficult.
Advantages:
 Formation of organization is not complex which makes it very easy to be established.
 Annual accounts are very easy to maintain and documentation is also very less. This
mean paper work is also very low. Investment is also very low.
Disadvantage:
 No proper contact has been formed that is why legality is not there.
Main difference that is there between incorporated and unincorporated business has been
given as follows:
Following things are being required by the incorporated association and are as follows:
 Name and address is required to be given and reregistered through proper attestation.
 Nomination is to be done of shareholders and managers.
 Memorandum of association is required by the company to be made.
 Shareholders’ approval is required.
 Article of association has to be designed.
 Important documents are required to send Companies House.
 Funds are raising through taking loans from bank, issuing of bonds and share etc.
Unincorporated Association:
 Business objective is required to be formed
 Contract should be valid when more than one person is involved in its formation.
 Liabilities is not limited and it becomes essential for considering amount of share.

 Various ways are there for fund raising and in such business corporation funds are
arranged through friends, family members and loan from bank.
Major advantages and disadvantages of companies in partnership firm has been explained as
follows:
Advantages:
 Such companies are having right of perpetual succession and deed of partnership is made
between partners.
 In these types of organization rising of fund is not easy in comparison to private
company.
 Also limited liabilities are there in this partnership has its entity and liability is also equal.
Disadvantage:
 Forming of these companies is not easy and partnership firm can be developed without
any complex issue.
 In relation to company decision- making process is required to generate huge funds and
then it becomes easy to take strong decisions in partnership firm..
TASK 4
Recommend appropriate legal solutions for the following cases
Case 1
Case Scenario: Sarah has been working within a company on the post of Secretary since last 7
years. Due to her personal issues she was unable to perform the work in the manner which was
required. The behavior which was being shown by her in recent period of time is not favorable
for the organization and even number of employees are not satisfied due to which they are
willing to leave the company. Also, HR is not willing her to promote her to next level as
reputation can be affected. Now, HR of the company is facing the issues as she is willing her to
terminate from the company so that other employees can perform their work in best possible
manner for accomplishing the goals of a company.
Equality Act: It is one of the most crucial law which can be applied within the given
scenario. The law simply explains that any of the employee should not be discriminated on any
of the basis. Looking at the scenario of the case, it can be easily identified that employee should

treat whether they are working at a senior or junior level. Here, Sarah was not following the law
and way not treating the employees as per the required manner where she can be proved as
defaulter (Cowan, 2018).
Employment law: It is also the law which is applicable in this particular situation as it
will tell about the relation and responsibility that employer and employee have towards their
work. In context of the case, it was found that Sarah was unable to conduct her work as per the
requirement which has been creating the problem for accomplishing the goals of a company.
Removal of Secretary: It is one of the important section within Companies Act 2006
which explains about the situation to remove any of the director from the organization. Firstly, if
company is willing to remove the secretary, they can take the help of resolution process were
more than half of the shareholder must be agreed. Secondly, if given responsibility are not being
performed as per the required manner then in that respective situation company can remove the
secretary.
It is recommended to the HR of a company that they can take the help of above
mentioned law under which Sarah have breached number of terms and condition which has been
directly affecting the performance of a company and that is simply not allowing to accomplish
the goals on specific time period. Also, her presence is not letting other employees to perform as
per required manner.
Case 2
Case Scenario: Peter Romanov is one of the successful Russian business who has been
exporting vodka to different Spirits in UK. They have maintained all of the information in a
systematic manner.Due to the fluctuation of current they are having the issues due to which Peter
Romanov has to suffer from losses due to which he is willing for the suggestions so that effective
result can be obtained.
Alternative Dispute Resolution: The process of sorting out the issue where there is no
much requirement of court proceeding is known as Alternative Dispute resolution. It is necessary
to understand that this types of process are easy and effective but not applicable in all of the

situation because only civil cases can be solved through this process. This process has been
further categorized in detail which has been explained below:
 Negotiation: This is the primary step through which problem between two parties can be
solved. It is essential to understand that whenever any of this problem occur there is the
requirement that both the parties must try to cooperate with other members through
which they can easily sort out the issues.
 Mediation: This is essential process of sorting the problem in which it is required to
understand that disputed parties can even solve the problem within mutual understanding.
For the purpose of better mutual understanding, it will be important to take the help of
mediator who can guide them in best possible manner.
 Conciliation: This is also the crucial process in which guidance of senior authority plays
the important role in accomplishing the target. In order to resolve the problem, it is
essential to work on the ground agreement formed so that maximum number of terms can
be met.
 Arbitration: In this particular stage, it is essential to involve the panel of arbitrator who
can guide that how work is to be done. Instead of suggestion, decision is declared which
is to be considered by either parties (Lee, 2017).
Recommendation: For resolving of problem, it will be important to Peter Romanov to take
the help of arbitration process because it will prepare the legal documentation which will be
needed to be followed by all of the suppliers. It will allow both the party to reduce the percentage
of loss through which target can be accomplished easily. An also process of arbitration is one of
the most important and commonly used method of ADR. This is going to helpful in the above
situation in a manner that it is going to helps in coming to an right decision that has to be obeyed
by both the parties. Also this is going to be justified as facts are being heard of both the parties.
So, no biasness will be there

CONCLUSION
After having the detail analysis on the file, it can be easily concluded that business law is the topic
which will allow the business to decide what can be important decision and what are those decisions
through legal remedies may arise. For the purpose of improving the level of strength, multiple authorised
department are there in UK who has been forming the law single long time period. On the other side,
conducting the business it is necessary to consider its impact because sight mistake can create lots of
issues to the future of the entity. The process of forming business is essential where guidelines of
different law must be considered as that plays the crucial in performing the activity of entity. In order to
resolve any of the business issues, it will be necessary to take the help of Alternative Dispute Resolution
can be essential.

REFRENCES
Books and journals