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

This document discusses 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 evaluates the effectiveness of the legal system in terms of recent reforms and developments. The document covers topics such as the formation of different types of business organizations, advantages and disadvantages of unincorporated and incorporated businesses, and legal solutions for resolving disputes. The subject is Business Law, and the course code and name are not mentioned. The document does not mention any specific college or university.

BUSINESS LAW

BUSINESS LAW.............................................................................................................................................1
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Different sources of law..........................................................................................................................3
Role of government in law-making..........................................................................................................4
.................................................................................................................................................................5
Statutory and Common law applicability in court...................................................................................5
Evaluate effectiveness of legal system in terms of recent reforms and developments...........................5
TASK 2......................................................................................................................................................5
Using specific example illustrate about how company, employment and contract law can create impact
upon business..........................................................................................................................................5
Legislation, regulation and standards to analyze potential impact upon business....................................6
Critical evaluation of legal system and laws............................................................................................7
TASK 3.......................................................................................................................................................7
How different types of business organizations are legally formed...........................................................7
Advantages and disadvantages of unincorporated, incorporated business...............................................8
TASK 4........................................................................................................................................................10
LO4 Give appropriate legal solutions for solving of following dispute...................................................10
CONCLUSION.............................................................................................................................................11
REFRENCES................................................................................................................................................12

INTRODUCTION
Business law is considered to be that type of law under which an organization is able to establish
itself as per the legality of rules mentioned in it. Such types of laws are also known as commercial or
corporate laws. These laws majorly deals with all conditions required to set- up an organization
according to an concrete structure of rules and regulation defined under it. Also these laws are very
important from point of view that it helps an organization for set-up. Such laws are applicable over
those types of business which are recognised under the law. These laws are related to every
organization that is related to any kind of corporate activity. Nature of such laws is very dynamic as they
have tendency to make an organization grow within legal rules and obligation of business law. Scope of
such organization is very wider because of those activities that have helped in making process of
incorporation easy. In the file things that are going to be covered are sources of law, role of government
in law making, statuary and common law. Further in this file various types of organization and there
funding, formation and management is going to be discovered. Lastly in this file ADR is going to be
covered in which different cases are given and there analysis has to be done.
TASK 1
Different sources of law
Under English law there are various basic elements that is required to formation
of sources. These sources comprises of various rules and regulation related to society.
Sources are very important as it promotes by providing knowledge over large aspects of
law. It acts as an effective polls which covers practical as we as theoretical studies of law.
Sources are divided into two types and they are primary and secondary (Allen,2016).
.
Primary Sources: These are very important and basic elements that cover original
content of law. This content is stored under certain heading that is as follows:
 Common Law: These are those types of law that has been given an very important
position in sources of law because they help in generating of those judgments which
becomes an important rule to be followed. These judgments consists of all facts an
summary of the case. Also covers various aspects of it. All this is made in the form of
report for further studying of such cases.
 Legislation: These are those permanent laws which has been enacted by the government
after following proper procedure regarding it in which at starting a bill is presented that
has to go through three hearings then only a bill is able to become law. It is only
applicable in UK after getting Royal assent.

Secondary sources: These are those types of sources which consists interpretation of
various laws that is done for helping out persons to understand concept present in law.
They are as follows:
 Legal Encyclopedia: This is one of the most useful thing which provides information
and meaning of terms in law that is helpful in understanding an overview of law.
 Parliamentary and no –parliamentary: Such publications are those types of
documents in which an order that has been passed by an government is written
and also laws amended are present.
 Law Commission: It is that kind of commission which is helpful in forming of
laws and explaining there impact of it over and society. All this is done by
preparing and report over any kind of condition raised because of an law.
Suggestion is also there in the report.
 Text Books: This play an very important role in helping out those students who
are studying law. In a manner that it creates an core understanding of all basic
concept of different types of laws. This is going to create an awareness about
those laws which can be helpful for them in future (Amariles, Bassilana and
Winkler, 2018).
Role of government in law-making
Government in UK has an crucial role to play in formation of law and policies related to it.
These are required to improve discipline and order in society. Such rules and regulation has been formed
by parliament in UK. All laws are formed under a proper procedure and this has been explained below
and they are as follows:
First Reading: At this stage only the bill is presented and main components are told in
front of House of Commons. At this stage an overview is given about bill and nothing
else is done. Regarding bill. (Bagley, 2020).
Second reading: In this also debate is done over the bill and important things about bills
is discussed and voting is done for and against the bill brought in the parliament. Whips
system is used in the bill.
Committee Stage: At this stage bill is presented to House of commons and detail
analysis of bill is done. Amendment is also done if important.
Report Stage: In this stage debate is done over the amendment that has been done in the
bill and agin voting is done.
Third Reading: in this bill is presented to the house again. Debate is taken place over it
then again rejection and acceptance is done.
House of Lords: Bill is sent to the House of lords after it has gone through all the five
stages mentioned above. Amendments are also done at this stage if any required.

Royal Ascent: It is considered to be last stage of the process in which an approval has
been send over the bill and after this only it can be enacted as law.
.
Statutory and Common law applicability in court
Common law: These are those types of laws that are very important from point of view that
judgments passed by judges fro an particular special law come under this. These judgments are prepared
by judges in an landmark cases. Various kinds of important elements related to an case is also covered
under it. There is no need to make a new law where two cases have same situations. It is also
known as common law or case law. As per this the judges can prepare an counter law for an law
that has been passed but is disturbing peace of society. Also judgments passed by judges has
helped in covering lot of similar kind of cases. These are important to create an transparency in
process of justice (Barrédy, 2016).
. Statutory laws: These laws are formed by following proper procedure which has been enacted
by parliament. These are formed through bills that is required to be discussed properly in both the
houses. After becoming an laws it is applicable all over the country and every person living init. In other
words it can be explained as fixed procedure of passing the bill in the parliament in which it is
transformed into an act which is made applicable across the country. It is the fundamental structure of
legal system on which number of statutes is established (Bird and Brown, 2018).
Evaluate effectiveness of legal system in terms of recent reforms and developments
Law s in UK has been changing from very long time that has caused to be development of laws
and has also made life of people safe. Still lot of loopholes exist in the legal system of UK this is because
of complexity that is involved in it. Also these loopholes can be identified very easily and keeps on
interrupting process of justice . This has made lot of lack of coordination between coping for fighting fro
justice. Such kind of loopholes can be fine out or solved only when change are being brought in the legal
system and more flexibility is granted. Rather then rigidity.
TASK 2
Using specific example illustrate about how company, employment and contract law
can create impact upon business
Different kinds of laws are there that is there in legal system in order to establishment of an
business organization. Certain laws are specially been formed to impact upon an organization and they
are explained as follows:

Company law: Such laws are that kind of laws which are into existence to manage various kind
of business organization. All rules and regulation give under this law is present under Companies act
2006. In this act rule and regulations is helping in formation of those set of rules and a concrete frame
work necessary for an business organization to establish itself. These laws help in building an strong
base to an organization which protects it from any kid of legal issues which can occur further and
also companies get privilege under these laws. Due to any reason if violation has been done by
any kind of company then legal action can be taken against them. This can be better understood
as example that is as follows ASW Pvt. LTD has been trying to raise fund fro it company fro
very long time. Through this only expansion of business is possible. As company has
successfully raised fund but does not utilized it for right purpose instead has been used for
personal self. In such condition case can be filed against the company for violating its prospectus
(Bird and Park, 2016).
Employment Law: It is a very important law that has been important in a manner that it
helps in main maintaining of relationship between employer and employee. These laws deals
with those aspects which are required to be covered in order to maintain strong relationship
between employer and employee. Over that such type of laws are important as it helps in dealing
with rights and duties that rae to be followed by employer and employee. These laws also
contains certain special rules regarding safety and health issues it is present in Employment Act
2002 and Equity Act 2010. An employee can also file a case against his senior if he finds any
kind of in appropriate behavior taking place.
Contract law: These are those types of laws that is most important for an organization to
do their activities of business and also helps in building of legal relation with another company.
such relations are formed upon the basis of an agreement. These agreement can be based of any
kind of business to be taken place. Also transaction can also be carried out through such
contracts are valid under the eyes of law. Special rules and regulations are mentioned under this
contract. Any if due to any reason these rules are violated then contract can be invalid at any
point of time. Also the person Like SAD Ltd can be sued for revoking contract through its
suppliers
Legislation, regulation and standards to analyze potential impact upon business
Legislation: They are those type of rules and regulations which is formed by an
government by following of proper procedure of passing a bill to make it law. These laws are
permanent and royal assent si required to become law. Then bth the houses has to discussed
about it. Such laws are those concrete rules which has been protecting an individual fro various
aspect disturbing peace of society. These laws are applicable to an business organization that
helps them in growing. Such are very important and major role has to be played by then and
helps in growing of an organization (Cossart, Chaplier and Lomenie, 2017).
Regulations: These are those types of instructions that is there to give an ensuring of all
over work in an organization to be performed in smoother manner. They are that type of

reasonable restriction which has been applied on administrative law in an organization. These
regulation has been set-up in form of policies formed by government. In order to establish such
regulations. Only law existing is considered for making an regulation. Such are applicable
permanently in an organization.
Standard: These are those types of guidelines or kind of requirements that are been
prescribed by company. They are very important to be followed an it helps in achieving
objectives and goals set by an organization. It has to be implemented because goods and services
are also produced under this only.
Critical evaluation of legal system and laws
Law is very wider and vibrant term that is covering all aspects of an organization and of society.
Laws has been there since a very long time in UK and has been helping in maintaining of peace in there
country. Common law has been used to exist that is still there and has helped in analyzing of various
situation for providing justice. Legal system in UK needs to go through lot of changes because of various
advancement taking place all of the world. Laws are also not modified in timely manner that has
resulted in down fall of modernity in an legal system of UK. Employee and individuals are being
protected due to various kinds of laws for them . Still certain laws are ridged and not flexible in nature.
This caused laws in UK to be outdated and concrete structure of law lacks.
TASK 3
How different types of business organizations are legally formed
Business organization is those types of organization which are to be dependent upon the
needs of establishing a business. There are various kinds of organization of different nature and
can be formed as per there nature. These organizations can be of any type and belongs to any
category.uch organizations are explained below:
 Sole proprietorship: They are one of the most important forms of organization and are
helpful for small business that is to be run through an individual. He is only responsible
for anything that is going to happen in business like profit and loss. These types of
working persons are known as sole proprietor or single owner. They do not have to face
any kind of problem related to liability(Davitti, 2016).
 Partnership: Such businesses include two parties which have come together to form a
firm and to full fill their common motive. The main aim of such organization is to earn
profit. In partnership liability of a partner is not at all limited and is based upon
investment done by them. An organization like partnership all problems are faced by
partners together. To form such organizations legal documentation is required.

 Private Company: Such companies are run through directors which are appointed in
order to take care of the company. These companies’ shareholders are those persons who
has done investment and no public is allowed to buy its shares (Scheuerman, 2017).
These companies are mainly having major benefit such as rebate in tax payment and also
liability of owner is also limited. Such company can also be working at hybrid pattern
existing in current market (Giubboni, 2018).
Public Limited Company: These companies are government organizations which are
work over investment from public. Main purpose of this company is to take out best
benefited from services and product provided t customer. Huge amount of capital is
required for setting up of this organization. Various ways are there through which an
organization is funded and they are issuing shares, making bonds, forming debentures.
Best method for rising fun is through debts methods and also loans from various
government organizations
Advantages and disadvantages of unincorporated, incorporated business.
Incorporate Organization: Such kind of business organizations are formed to legal
existence because of which it can be any part of any kind of contract. It is one of the safest and
secured form of businesses s and it is easy to raise funds:
Advantages:
 Such companies has to follow right of perpetual sequence and also profits are earned by
one person himself (Heminway, 2016).
 Advantage of such organization is that it can be sued and also is easy to sue.
Disadvantage:
 Any business is incorporated it is not easy to be disclose its information.
 More time consuming and money taking.
Unincorporated Organization: Such kind of business organizations has to main
operations and events that are performed to earn huge profits. The main benefit of this business
is that it is not legality of paying taxes, as company does not exist in the frame of law. Fund
raising is a hard a very difficult task sometimes.
Advantages:
 This company formation process is easy and also annual accounts are easy to maintain.
 Cost involved in these business is low.

Disadvantage:
 Authentic contract is not there as legality of company is less.
Major difference among incorporate and unincorporated businesses is as follows:
Incorporated Association:
 Name and address must be decided and attested properly.
 Shareholder and manager are nominated for these businesses.
 Required “Memorandum of Association”
 Apporval of each stakeholder is required.
 Designe of article of association has to be done.
 All documents are to be sent to Companies house.
 The main sources of raising funds is taking loan from bank, issue of bonds, share etc.
Unincorporated Association:
 Actual objective of business has to be set.
 A valid contract should be there when two or more partner.
 Association liabilities are not limited so it is essential to consider amount of share.
 There are various sources of raising funds in this kind of association such as bank loans,
capital, raising funds for private money lender(Katsos and AlKafaji, 2019) .
Some major advantages and disadvantage of companies over partnership firm are defined below:
Advantages:
 Company have the major benefit of over enjoying of right of perpetual succession
 In partnership firm it is not as much easy to raise funds as compared to company.
 Company have limited liabilities and in partnership entity the member have equal
liability.
Disadvantage:
 Formation of the company is not easy while partnership firm easily gets developed.
In context of company the decision-making process requires huge funds on the other side it is
easy to make meaningful decision in partnership firm.

TASK 4
LO4 Give appropriate legal solutions for solving of following dispute
ADR is an alternative dispute mechanism which helps in dealing with those types of
issues which are to be solved outside the court. Generally such issues take place between two
parties. Problems of only civil nature is required to be sorted with this process. It includes
negotiation, arbitration, conciliation and mediation. All the four process are to be applied as per
situation occurred. Further analysis of this issue has been done below as per the situation (Law
and Perryman, 2017).
Case scenario: In this case Sarah is an worker working as a secretary in a company from
past seven years. Her performance was good in previous years and also she had a pleasant
personality. During last nine months she lost an divorce fight and after it she become irritable
and also her efficiency to work has reduced to such an level that managers had started
criticising her work openly. Her annual review is due within four months. As she ha got good
assessment including last one. In this her condition has been take n into consideration. As the
secretary is about to retire in next three months and Sarah was to be next in that position.
However unwillingness to promote her has been explained by mangers. Also HR was informed
that some people is planning to leave if Sarah is given the position. Three months of now Sarah
has open an disagreement with two trainee mangers in front of customers and other staff
member. In appropriate language has been used by her. It was decided in management
meeting that Sarah to be issued with a warning letter. Now HR has to decide weather to
promote her or not. As it can be observed that due to certain problem only Sarah is not able to
perform well in the company and her behaviour has also change because of divorce. In such
scenario negotiation can be used in which an negotiator is going to be hired to arrange a
meeting and make both the parties talk to come up with solution that instead of terminating
her, some rest can be given to Sarah as she is an valuable employee. Then again she can join
the work and her promotion can only be granted when she gets an certificate of mental fitness
from an mental physician. This can be an better alternative in this situation.
Case scenario 2: In this case Peter Romanov is an Russian business man and does exporting of
high quality vodka to other Russian spirits to UK and many European countries of Europe. He
has been doing importing vodka to an UK importer to deliver in December and Romanov has
agreed over date of export and price is to be informed by him later on. In September and
October there was fluctuation in exchange rates and market has to face decline in value
because of unpredictable result (Marzen, Prum and Aalberts, 2016). Before sending cargo in
December 2019 ad email was sent stating because of fluctuating in Europe price is likely to vary.

Also UK firm send payment of 17th January 2020 and used exchange rate at time of placing
order in September 2019. Exchange rate in more than 10% then in December 2019. Also
Romanov is at financial loss of approximately 10%. After contacting UK importer he was told
that contract has taken place in august, September 2019 and rates have been used as per
exchange rate. As per the scenario mentioned above the best solution to solve the dispute is
going to be arbitration. In this method an arbitrator is hired and listen to both the parties.
Judgement passed by him is applicable to both parties. This is appropriate to solve the dispute.
CONCLUSION
From the above file it can be concluded that concept of business law covers that type of
rules and regulations that plays an important role in setting of an organization in an country
according to its rules and regulations. Also various organization like sole proprietorship,
partnership, public limited company is there which has been covered in this file with there
formation process, funding ways, managing. Advantages and disadvantages of these
organizations have been told. Laws like contract, employment, statutory and common law have
been covered with statutory and common law. Sources of law have been explained with
procedure followed by government to follow it. In the end there has been certain cases has
been told which is going to be solved with ADR.

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