Business Law: Sources, Role of Government, Types of Organizations, Funding, Legal Solutions

This document provides an overview of business law, including the different sources of law, the role of government in law-making, the types of organizations and how they are legally formed, funding options for organizations, and legal solutions for resolving disputes. It also evaluates the effectiveness of the legal system and provides examples of legal advice and support for dispute resolution.

BUSINESS
LAW
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INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
P1 Explain different sources of law.............................................................................................4
P 2 Role of government in law-making.......................................................................................4
P3 How statutory and common law is applied to businesses......................................................5
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments...............................................................................................................................6
M2. Differentiate between legislation, regulations and standards to analyse potential impact
upon business...............................................................................................................................6
P4 Types of Organisations and How they are Legally formed....................................................6
Sole Proprietorship......................................................................................................................6
Partnerships..................................................................................................................................7
Limited Company........................................................................................................................7
P5 How these Organisations are Funded with advantages and disadvantages............................7
P6. Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support.................................................8
M4. Compare and contrast different sources for legal advice and support for dispute resolution
.....................................................................................................................................................9
D3. Evaluate the effectiveness of legal solution, legal advice and support for dispute resolution
.....................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business laws are that kind of laws that helps in providing over establishing of business within
an country. These laws provide an kind of legal frame work that has been present in order to let
organization perform its activities in smooth manner. These laws are responsible for an
organization ton establish itself in legal manner. Scope of these laws is wide in nature because it
focuses upon various important aspects of an organization. Nature of these laws is very dynamic
as they can impact the growth of an organization. In this file things that has to be covered is
based on role of government in law making, sources of law and various organization has been
explained with their funding, managing. In the end various process of ADR is to be explained
with considering scenarios to be explained.
MAIN BODY
P1 Explain different sources of law
Law is that kind of element that has been helping in maintaining of balance within
society. Also law provide basic structure that helps min punishing the criminal committing
crime. There are certain sources that has been using in forming laws and they are being
explained as follows:
Legislation: This is one of the most important sources that help in forming of law. In
this legislation consist of parliament which has the power to amend the laws. Under this there are
two types of houses that are House of Lords and House of Common. In this a valid discussion
has to be done over the law before making it permanent one (Hess, 2017).
Common Law: This is also an important part of source that is being formed to enhance a
particular law. Under it judgements related to landmark case is being presented in the form of
report. Judgements passed in such cases are going to be helping make an law applied further in
similar case.
Law Commission: Duty of commission is to give suggestion over the impact of law on an
society. It helps covering of loopholes in an existing law. Also commission is being for the
purpose to analyse law with its impact upon society. The main objective of this commission is
tom ensure that laws is being applied in fair manner.
P 2 Role of government in law-making
Parliament is highest authority that is being formed to make laws in UK. It is responsible
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over the discussion of the bill that is being presented in front of it. Bot houses does discussion
and proper procedure is followed for it. Further procedure has been explained as follows:
Stages of law making
Bill: This is the draft that has been prepared by the government. Under bill only expatiation of
the law is being covered and its main motive. These are of three types private members bill,
public bill and private bill.
First Reading: Under this only the bill is presented in front of the house of parliament and no
discussion nothing is done at this stage.
Second Reading: In this stage detail discussion has to be done over the bill that is being
presented. Also Whip system is followed to attain support of its members to gain majority.
Committee Stage: At this stage the bill that has been presented in front of the House of
Commons and discussion is being done in detail. Also amendment is to be done.
Report Stage: Under this stage bill is being presented within the house and again debate is done
over it. Voting is also done again.
Third Reading: in this stage bill has been presented over amendment that has been done and
again acceptance or rejection is done.
House of Lords: Bill has to be presented in front of the House of Lords only after the above
steps have been followed. If changes have to be made then bill has to be send again to the house
that has checked it previously (Gurrea-Martínez, 2018).
Royal Ascent: This is last stage in which the bill is required to get signature of monarch and this
power has been given to him under Royal Ascent Act 1961.
P3 How statutory and common law is applied to businesses
These are the laws that has been presented or is being applied as per there requirement
within the court. Also these laws differ from each other because they are related to enchaining of
legal system. Laws have been explained as follows.
Common law: These are the laws that are being formed after the judgement passed by a judge of
a court under a landmark case. It is applicable to any kind of similar case and no new law is
required to be formed.
Statutory law: These are the laws that have been formed only after the following proper
procedure within the parliament and are being present in written form. These laws are formed
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according to constitution of a country and protect rights of individual. It used to give an proper
judgment within an case.
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and developments
UK’s legal system has been evolving from a very long time and has been able to create
an organized structure of judiciary which has been promoting transparency in the process of
justice. Also laws like civil and criminal have been able to protect both individual and public at
large. Still there is certain loophole required to be worked upon to make laws applicable to
present legal system.
M2. Differentiate between legislation, regulations and standards to analyse potential impact upon
business
Legislation: They are considered to be written rules that have been amended by the government
in order to create a concert structure that helps an organization to set-up itself and helps in
gaining balance within the society.
Regulations: These are those types of rules that have been formed for the purpose of
maintaining administration work easier. It promotes effective way of managing particular things
within an organization. Such rules are being applied keeping in mind the standards.
Standard: These are that kind of guidelines that is being promoted in a business organization to
maintain discipline and order. These are being formed keeping in mind both regulation and
standards.
P4 Types of Organisations and How they are Legally formed
While starting a new start-up it is a major challenge to select the nature of the
organisation. In UK there are many types of organisations but the most common which are in
trend and easy to form are Sole Proprietorship, Partnership and a Limited Company.
Sole Proprietorship
If a person wants to start a business in UK with less complex formalities and in a simple
manner then the best option is to start a business as a sole trader. To start a business as a sole
trader, it is required for the person that he should register the business with HMRC (Chow,
2017).
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As compared to other forms of organisations there is absence of difference between the
business entity and the person running the business which means that the sole proprietorship will
not be having a separate legal entity and sole trader will be having an unlimited liability.
Partnerships
Forming a Partnership in UK is also very simple like sole proprietorship. The minimum
number to form a partnership is 2 while the maximum number is 20. There will be a partnership
deed among the partners which will govern all the major points concerned with the partnership
firm such as sharing of profit and losses, partner's responsibilities, obligations and
responsibilities of partners regarding the investment.
In this the only requirement is to register your partnership with the “Her Majesty's
Revenue and Customs” for the purpose of filing the tax returns. Many a times a sole
proprietorship leads to a partnership firm after the expansion in the future. Here also the liability
of the partners is unlimited.
Now a days LLPs(Limited Liability Partnership) are also very popular where the liability
of all the partners will be limited in proportion to their initial investment.
Limited Company
A limited company is regarded as a separate legal entity in UK which means that the
company will be having a separate “Legal Personality” other than its directors. In UK to start a
company certain documents has to be submitted with the Company House like “Memorandum of
Association”(MOA) and “Articles of Association”(AOA) (Cassel, 2016). Once these documents
will be approved by the Company House, the company will come into existence. As these
companies possess a separate legal entity which means that they can acquire assets in their own
name and can sue and can be sued. There are two major types of companies that are “Limited by
Shares” and “Limited by companies”.
P5 How these Organisations are Funded with advantages and disadvantages
In “Sole Proprietorship” the responsibility to manage funds is totally upon the sole trader.
The sole trader will be only liable for accruing profit and discharging debts of the business.
In a “Partnership Firm” the funds will be raised through partners only. In the partnership
deed only it will be mentioned that what would be the obligations of the partners regarding the
investment in the firm. It means that the partners will be responsible for raising the funds.
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In a “Limited Company” raising funds is comparatively easy because they are considered
as separate legal entities and when they need fund, they can issue shares or debentures to its
shareholders and investors.
Incorporate Organisation: These are the organization that is being there and are having
personal legal existence. It makes very easy to make these as a part of contract. Such business
organizations have been safer and are secured. Some advantages and disadvantages have been
explained as follow:
Advantages:
 Under these rights of perpetual succession is being given that helps in smooth running of
business.
 Such organizations have advantage of being sued and getting sued.
Disadvantage:
 Not easy to get it disclosed till the time it has been come into existence.
 Huge amount of time and money is required.
Unincorporated Organisation: In such organization major operations has to take place
upon with a motive of earning profit. In these organization major operations is being taking
place over operations or events with a common motive of earning profit. Benefit of this
organization is that it is not considered as a legal entity so paying tax is not required. Advantages
and disadvantages have been explained as follows:
Advantages:
 Filling of annual accounts is not at all required (Barrédy, 2016).
 Businesses of these kinds are having low cost over compliance.
Disadvantage:
 No legal and authentic contract of an organization and time is not there.
P6. Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support
Legal solution is those solutions which are being given over the dispute that is being
there within two parties or organizations. These solutions are having various kinds of advantages
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and disadvantages as per there circumstances. Various solutions are there that is being applied in
order to gain solution upon a dispute. These are being explained under ADR that stands for
alternate dispute resolution system. Further these methods have been explained as per the
scenario.
Negotiation: In this legal method an negotiator is there to make both parties meet and
discussion upon the dispute. Also it is his responsibility to make them agreed over a particular
point that is helpful for each of them. For example SDG Pvt Ltd is being involved with the
dispute over trademark that is impacting business. This is being settled through negotiation as
both of them are going to made reach an appropriate solution.
Mediation: In this mediator has been used as an third and provide assistance to both the
parties in order to come to a common point of agreement. For example an employee is being not
given salary over 3 months and no justified reason is being given by the organization upon it.
Under this mediation is going to be used in order to get compensation over the problem that has
been occurred.
Arbitration: In this solution an arbitrator is being hired to solve the dispute and give an
appropriate solution over it. Under this the judgment that is being given by the arbitrator is
bound to be followed by the parties. For example there has been a dispute over not following.
Arbitrator is going to provide justified judgment after listing to both parties
(Alshowish, 2016).
M4. Compare and contrast different sources for legal advice and support for dispute resolution
Legal advice is that kind of advice that is being given by an legal professional having
knowledge over the law. Further they are explained as follows:
Free legal consultation: Under this an lawyer indulges into direct conversation with the
client and all scenario has to be understood and also facts is being understood in proper manner.
No cost is to be charged by lawyer for this.
Legal aid programs: The main aim over providing legal rights to its individual that is
there to create equality and justice. This introduces fair trial.
Self-help legal aid: Under this an individual is required to have all rights to be applied in
legal manner in order to obtain permission of superior authority.
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D3. Evaluate the effectiveness of legal solution, legal advice and support for dispute resolution
Legal solutions are that remedies that is being given upon rising of dispute upon
conflicts. Various legal solutions are arbitration, negotiation and conciliation. These are known
as out of court settlement. These are helpful to come upon with an immediate solution.
It is useful for immediate conclusion so that future dealings can be made effectively.
Legal advice is given over providing an particular situation over getting justice. These are
to be given by legal professionals after hearing facts of the problem.
Dispute resolution is going to be used only when there is required for it and solutions has
to be taken out in appropriate manner.
CONCLUSION
From this file it can be marked out that and business laws are one of the most important
kind of law as it explains rules and regulation regarding formation of business organization.
Then sources have been explained of law and role of government in law making is being
covered. Also business organizations have been explained with their managing, funding with
advantages and disadvantages. In the end legal solutions has been explained.
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REFERENCES
Books and Journal
Alshowish, A., 2016. An evaluation of the current rules and regulatory framework of corporate
governance in Saudi Arabia: a critical study in order to promote an attractive business
environment (Doctoral dissertation, Lancaster University).
Barrédy, C., 2016. In search of future alternatives for family business: Family law contributions
through Civil and Common Law comparison. Futures. 75. pp.44-53.
Cassel, D., 2016. Outlining the case for a common law duty of care of business to exercise
human rights due diligence. Business and Human Rights Journal. 1(2). pp.179-202.
Chow, D. C., 2017. Three Major Problems Threatening Multinational Pharmaceutical
Companies Doing Business in China. Colum. Sci. & Tech. L. Rev. 19. p.46.
Gurrea-Martínez, A., 2018. Re-examining the law and economics of the business judgment rule:
notes for its implementation in non-US jurisdictions. Journal of Corporate Law Studies.
18(2). pp.417-438.
Hess, D., 2017. Business, corruption, and human rights: Towards a new responsibility for
corporations to combat corruption. Wis. L. Rev. p.641.
Kaeb, C., 2016. The shifting sands of corporate liability under international criminal law. Geo.
Wash. Int'l L. Rev. 49. p.351.
Lorfing, P. A., 2019. International Business Law Journal (IBLJ) Chronicle On
Investment/December 2019.
Mayer, C., 2018. Prosperity: better business makes the greater good. Oxford University Press.
Naqvi, S. H. and Fatima, N., 2017. Authorship patterns in international business literature:
applicability of Lotka's Law.
Rhee, R. J., 2020. Essential concepts of business for lawyers. Aspen Publishers.
Richelle, I., Schön, W. and Traversa, E. eds., 2016. State Aid Law and Business Taxation.
Springer Berlin Heidelberg.
Vastardis, A. Y. and Chambers, R., 2018. Overcoming The Corporate Veil Challenge: Could
Investment Law Inspire The Proposed Business And Human Rights Treaty?.
International & Comparative Law Quarterly. 67(2). pp.389-423.
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