Business Law Essay

This essay examines the sources of law in the UK, the role of the government in law-making, and the impact of various laws on business organizations. It also explores different types of business organizations and their legal formation, management, and funding. Finally, it discusses alternative dispute resolution methods and recommends appropriate legal solutions for resolving business disputes.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Description of the different sources of law in the UK.....................................................1
P2. Elaboration on the role of government in law making process........................................2
P3. Illustration on how company law, employment law and Contract law have the impact on
business organisation by taking the example of UK company...............................................3
P4. Careful exploration of how different types of business organisations are legally formed.4
P5. How they are managed and funded on regular basis?......................................................5
P6. identification and recommendation of appropriate legal solution for resolving a range of
disputes by using relevant examples......................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The law which deals which several segments of commercial department is known as
business law. It has set the particular standard in terms of rules and regulation which need to be
followed by every organisation (Business Law and Legal Definition. 2016). The rules which
have been enforced under commercial law are beneficial for every department which deals for
the purpose of personal benefit. The main concept which need to be understand by every
organisation is that how it can be applied and who have the burden to complete regulations of
business law. In context of this file, the suggestion will be given by the employee of Global
Solicitor who has been appointed recently in the company as a legal advisor. The main focus of
legal advisor will be on sources of UK law and what is the main role of government at the time
of passing bill to form any new law. The critical evaluation upon various types of organisation
will help to know about different types of company and how it should be incorporated. When it
comes to end of the file, the discussion will relate towards the importance of Alternative Dispute
Resolution for solving dispute of various nature.
MAIN BODY
P1. Description of the different sources of law in the UK.
Every time various types of laws are being commenced within UK and responsibility is
given to different body so that work load will not affect any one of the body. The law making
bodies have been divided into four different parts which have various roles and that need to be
performed as per the guidelines of law. The four sources of United kingdom's law are explained
below.
Statutory law is the main body which constitute law in UK. The duty and responsibility
of statutory law is to commence those types of law which need to maintain peacefulness within
the area of UK. Member of Parliament need to take part at the time of making constituting
statutory law. The final authority should be obtained by monarch.
Common law is the law making body in UK. It tries to focus on those law which are not
defined by statutory law, European Union Law and European Convention on Human Rights.
Here, power to make common law is given to the magistrate of court. No one is allowed to ask
question against laws which have been formed by common law. This laws can be retained for
longer period of time if it is beneficial to reduce the ratio of crime (McMillan, 2012) .
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European Union law (EU) is that body in Europe which constitute law for almost 28
nations. It is important at present that how EU member work for constituting law because they
need to constitute as per the geographical area or demand and situation of the country. The main
source of EU law is legislation and agreement which take place on regular basis within the
country.
European Convention on Human Rights (ECHR) is fundamental body in UK which
deals with the human rights. In context of ECHR, it is important to constitute law for public
where rights are given to take correct action when anything wrong is happening with local
people. Some of the laws which are secured by ECHR are right to life, freedom from torture,
right to liberty, freedom of expression and many more (Murray, 2014).
P2. Elaboration on the role of government in law making process.
Government need to constitute law for the improvement of society to reduce the
percentage of crime. It is necessary to consider every point so that result can be obtained more
efficiently. The role of UK government in constituting law starts when any kind requirement
arises among the people. By looking at their demand, elected MPs need draft a report which is
given in Parliament House. Then, one of the lengthy process is followed which starts from First
reading and ends with Royal Ascent. In first reading bill is to be presented in just to check the
content of drafted bill. When bill is forwarded to second reading it is necessary to check the
points in detail to conform whether bill is entertain able or not in further steps. After that, bill is
to be forward to committee stage where discussion will take place within the House of
parliament. Here, members will check the points of drafted bill and panel will decide whether
alteration are required or not. Therefore, report stage need to take part when alternation is
required as they are the one who have this responsibility. Then, Role of third reading increases as
they are required to judge the bill with the help of voting. If results are in favour, then it is
forwarded to House of Lords. Now, it is the responsibility of 800 peer member to judge the bill
that whether it is to be forwarded to next process or still changes are required. In final stage,
there is the provision to take the permission monarch to pass the bill as new Act under Royal
Ascent Act, 1961 (Nichols, 2012).
How Statutory law and Common law are applied in Justice court.
Statutory and Common law both plays significant role in Justice court because it is plays
supportive role at the time of giving judgement in justice court. While talking about Statutory
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law, it is playing supportive role just because laws are already written in the book of law so
judges are required to read the relevant law to declare their result on given period of time.
Common law is helpful for the judges of justice court because are allowed to commence new law
as statutory law are silent in many of the case. So, judges of justice court are allowed to give
their judgement on the basis of common law.
Case law: James v. Jonathan
Judgement: As, relevant facts were not found in this case so judges were bound to check similar
cases of other country to declare their result. In short, judgement was given with the help of
common law (Norris, 2016).
P3. Illustration on how company law, employment law and Contract law have the impact on
business organisation by taking the example of UK company.
Company law is the essential and most fundamental law which is being applied on every
organisation. It is important that how company understand the situation to take suitable decision.
Company law have positive and negative impact on several business organisations. For example:
Wooden Furniture need to register themselves under companies act and for that they need to
spend unnecessary time on it because it has a lengthy process which takes additional time to
incorporate. Even, Wood & Furniture need to conduct meeting on regular interval where they
need to pay additional amount of money to their directors as sitting fees.
Contract law is one of the essential as it helps to sum up the project on given period of
time. It is mandatory for every organisation to prepare contract paper else it is not possible to
enter into any project. The role of contract law shows significant effect on any company. For
example: Wooden Furniture need to prepare a contract paper while entering into any agreement
which increase the cost. When any of the denies to complete the work then they will have the
option to complete sue that company on the basis of contract paper (Raz, 2017).
Employment law is also one of the important law where rules and regulation related to
employer and employees are written. It is necessary to follow every regulation of employment
law whether that person is worker of employer as it doesn't matter. It can be seen that different
remedies have been commenced under employment law when default is done by either of party.
For example: it is necessary for Wooden Furniture to provide equal amount of wages to every
employee if they are working on the similar post. Employments law bounds the organisation to
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provide all kinds of safety measure instrument due to which overall expenses increases and that
create negative impact on wooden furniture
P4. Careful exploration of how different types of business organisations are legally formed.
Organisation need to be commenced legally to perform its business organisation. To form
legally it mandatory to be registered under Companies Act, 2006. Even in some of the case firm
might need to be registered under another Act as well as per the given guidelines. There are
various of organisation and they are Sole proprietorship, Joint Venture, Partnership, Limited
Liability Company, Corporation and many more.
Sole Proprietorship is the basis form of organisation where small business activities are
performed. Government provide special types of benefits to sole proprietorship just to increase
the number of investor. As, it is being formed to provide flexibility to the investor, there is no
required to registration. Because of this it is not counted as a legal entity (Schmidt, 2018).
Joint Venture is the types of business organisation where main target of investor is to
wind up the task as soon as possible. Joint venture can take place between partnership firm and
even organisation are also included in this. The legal process of incorporating Joint venture says
that it must be registered under Companies Act, 2006 where Documents like Article of
Association and Memorandum of Association are required to be arranged.
Partnership is also one of the business performing organisation where many persons are
attached. The main advantage of partnership stats that it can be set by even two persons also. It is
necessary to have a Partnership deed to start partnership firm. But, it is also mandatory to register
it under partnership Act which registration fees is also required as per the size of firm.
Limited Liability Company is the bigger organisation then sole proprietorship and
partnership firm where it need to be incorporated under company’s act. There are several
hundreds of benefits which is being given to Limited liability company. It is obligatory to
prepare Memorandum of Association and Article of Association to incorporate limited Liability
Company. Also, if is working the capacity of partnership then it need to be registered under
partnership act (Sharfman, 2014).
Corporation is the oldest form of business organisation where unlimited number of
members can be found. It is allowed to add unlimited numbers of partners just to increase the
total capital of the organisation. It has a legal route which need to completed to start business
movement. The process of legal formation starts from the date of deciding name and address of a
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company. After that, Memorandum of Association and Article of Association need to be drafted
as it need to presented in Companies’ House where authorised person verify the given details by
the process of inspection. Once all the documents are verified, company get the permission to
permission to perform business activity.
P5. How they are managed and funded on regular basis?
It is mandatory to have sufficient amount of fund for running business successfully and for
that different kinds of sources are required. But, money is not only the thing through which
business activity can be carried on as appropriate management is also required. The arrangement
of both the work must be done before the date of incorporation as it will help to work easily.
Sole proprietorship is smallest form of organisation so there is no requirement of huge amount of
fund. Still, then need the fund then personal assets is only the major option for them as no one
wants to give their money to that organisation which is not registered. The main system should
be managed by investor themselves because there so no such kind of work where team work is
required (Stout and Blair, 2017).
Joint Venture is a project oriented company where role of management plays the key
role. The responsibility of managing the activity of Joint Venture is in the hands of selected
member of involved companies. Whereas major source of funding is from the Reserve capital of
company and even loan is also the alternative option when any requirement arises in from of the
company.
Partnership Firm are mainly incorporated by professional body so it can be understood
that they themselves manage their work in the firm. Even they have the option to appoint one of
the partner who need to take the responsibility of managing all the task. The source of managing
fund is from the personal assets of partners or even they have the reserve where every partners
need to add on the equal amount of money. Also, loan is one of the alternative option to raise
fund.
Limited Liability Company is that form of company where company never suffers from
the problem of fund as there are alternate sources available for raising fund. The best one is loan
which can be taken from banks, government agencies and many more. And, the management is
handled by investor themselves or they appoint manager who need to perform his duty according
to the guidelines of investors (Twomey, 2012).
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Corporation is the best organisation when it comes to managing fund for running
business successfully as they are the most trust worthy in the section of handling business. The
main source for them are financial institution, banks, government agencies, bonds, shares,
debenture and the latest one is peer to peer lending. When it comes to managing business
activities they need to build one of the finest team which includes manager, board of directors,
company secretary and shareholder themselves.
P6. identification and recommendation of appropriate legal solution for resolving a range of
disputes by using relevant examples.
CASE 1: Peterson and Russel are the two partners of ALM partnership firm. Peterson was
holding 60% of the partnership whereas Russel had only 40%. The agreement between them was
legal which says that no one is allowed to dissolve ALM partnership firm else penalty will be
imposed. In this case, it was found that Peterson need to break the condition of agreement as he
was suffering from the financial losses. But, Russel didn’t want to understand any of the
situation and wants to sue Peterson to claim damages under the breach of contract. The reason
which were given by Peterson had some sort of meaning but it is important to be understood by
the working partner of the firm.
Contract is the paper were detail information is written regarding any of the agreement. It
is that form of paper which is legal binding and must be followed by agreed party. The work
should be performed as per the guidelines of a contract so that it can be concluded in a
systematic manner (Yosifon, 2013). It has its own importance because it bounds the party to
mention all the evidence in detail. In the case, the contract paper was prepared by Peterson and
Russel with each other consent. But it was found that Peterson failed to perform his duty and as a
result this case was categorised under breach of contract.
Breach of Contract is the term which has been defined in the Contract law. The meaning of
breach of contract says that one of the party denied to perform their duty on particular time
period. Similarly, the case of Peterson and Russel was also one of them where condition of
breach of contract has been found. By looking at this Russel want to file the case against Russel
in court.
CASE: Jinny v. Hayden
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Judgement: In this case the Jinny and Hayden decided to take the help of Alternative Dispute
Resolution as they knew the process and procedure of court is lengthy and they are not in the
condition to waste their time on the activity of court.
Alternative Dispute Resolution
The most famous and modern approach to solve dispute is Alternative Dispute Resolution. Here,
neutral party is appointed who need to either advice or give judgement so solve dispute. It is
found that this method has been helpful because it tries to solve matter in quick succession which
is the positive attitude towards every cases. The process of solving are various but every time it
is a tough task to decide that which one is to be selected. But, plaintiff and defaulter to
understand themselves that which one is suitable for them. There are three ways under
Alternative Dispute Resolution to solve dispute and they are: Mediation, Conciliation and
Arbitration (Zimmermann, 2012).
Mediation is counted as easiest among all of the three possible ways as its main focus is on
solving dispute with the help of giving advices. The duty of giving advice is of mediator who
must be neutral party. The duty of mediator is to overview the condition of case so best advice
can be given. In context of the case, it can be said that if they appoint mediator for solving their
dispute then it is important to discuss all the matter with mediator. After, discussing all the topic
it is important for mediator to give one of the best advice which is suitable for solving the
advices. But it will be the choice of Peterson and Russel whether wants to follow the advice or
not.
Conciliation is also the part of alternative dispute resolution where main focus is always on
meeting out the condition of contract paper. While appointing conciliator it is important to have a
mutual discussion so that matter can be solved without involving the procedure of court. In term
of Peterson and Russel case if they will take the help of conciliator it is necessary for them to
appoint conciliator who will point out all the relevant facts of the case which will help him to
find the best alternative solution.
Arbitration is also the main body of alternative dispute resolution where mutual consent of
both the party is necessary. The focus of arbitrator must be on the point due to which dispute has
been occurred. It is a complex process as certain steps need to be followed in this case which
includes the number of arbitrator and mutual consent of disputed party. In context of the case, if
Peterson and Russel wants to solve dispute according to arbitration then they need to appoint
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arbitrator at the beginning. It is to be understood that arbitrator is in odd number as it is helpful in
solving dispute. Then, members are need to express their problem freely so that it can be solved
easily.
After having the knowledge of all the possible ways to solve dispute, it can be concluded
that Conciliation can be the best option for them to solve the dispute because mediation will not
be such effective as main focus of mediator is to give advice. While taking about arbitration, it is
length and only specific cases are discussed in it. So, the best choice under alternative dispute
resolution will be conciliation.
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CONCLUSION
It is to be concluded that business law is important where everyone is required to take the
basic concept of it as it is helpful on daily basis. The main focus on this file was sources of law
which stats that government need to do more work related the sources of UK law. The sources
and methods of funding and managing the business organisation is very important on regular
basis because it helps to generate profit for the company Even case were solved with the help of
alternative dispute resolution which says that it is not necessary that dispute need to be solved
only with the help of court as success is not obtained every time.
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REFERENCES
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