Different Sources of Law and Their Impact on Business

This study explores the different sources of law and their impact on businesses. It discusses the role of government in law making and how statutory and common law are applied in courts. It also examines the different types of business organizations and how they are managed and funded. Additionally, it provides legal recommendations for resolving disputes in organizations.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different sources of law..........................................................................................................1
P2 Role of government in Law making and how statutory and common law are applied in the
court.............................................................................................................................................2
LO2..................................................................................................................................................3
P3 How different types of government laws impact the business. .............................................3
LO3..................................................................................................................................................5
P4 Different types of business organization................................................................................5
P5 business organisations funded and managed..........................................................................7
LO4..................................................................................................................................................8
P6 Legal recommendation for solving disputes in an organization.............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law of commercial laws which are commend under the branch of civil law. It
deals both with issues of private law and public law. Commercial laws regulates corporate
contract, hiring practices etc.
this study includes different sources of law which can be used in commercial as well as
civil purpose. Roles and responsibilities of government in law making and how laws are applied
in the courts. Impact of company employment law and contract law and the impact over the
business. Evaluation of types of business organization legally formed and ways in which
business organizations are managed and funded. Recommendation of legal rights and its
implementation in the organization which can used to resolve conflicts.
LO1
P1 Different sources of law
English leading system is working from since 12th century. System is required to develop laws
for the business so that they work smoothly by following all the legal rules.
Law is basically is set of rules and system that prevails in the country or the community
and are enforced on its citizens or members. Sources of law forms the origin of different laws
and binding rules which enables the state to govern their territory. Northern English legal system
of UK is categorized into three jurisdiction that are England and Wales, Ireland and Scotland
(Featured on the UK parliament website, 2019). There are generally different types ans sources
of laws prevails in every country
Constitutional laws
This is the first law source which is applicable within every state as well as country.
There are generally two constitutions that exists within this which are federal as well as US
constitution that is enforceable throughout US as well as the state's constitution. The US
constitution generally created the legal system. The main purpose of this constitutional law is to
regulate the different government actions. Under this, the private individuals are being protected
by constitution.
Statutory law
The second source of the law is statutory law. Unlike the constitutional law which
normally applies to the government action, statutory laws applies to the individual and thus
regulate individual as well as the private action. A statue is normally written and thus published

law which can be further enacted in two ways. Most of the statues are generally written as well
as voted within law by legislative branch of government. The statutory laws are developed by
federal, local as well as state legislatures that comprises of the elected official that possess power
for building laws.
Administrative laws
The third source of the law consists of administrative law as well as the ordinances. The
other written as well as published laws which apply ti different individuals are called as
administrative law. These are the law which does not supersede or clashes with statutory law.
These laws are generally enacted by the administrative agencies that are the governmental
agencies built for regulating the specific areas. These administrative agencies are usually federal
or the state and thus contain legislative branch and an executive branch along with judicial
branch. The administrative are basically charged with the administration of different government
actions. Thus the administrative laws are significant for the judicial system.
Effectiveness of legal system
The effectiveness of the legal system is basically the rules as well as the procedures in
order to make sure that various disputes and conflicts are treated in neutral way. A large system
is said to be effective when it makes the fair judgment and hence in the favor of the conditions
recent reforms in the legal system like protecting citizens against the crimes and offences have
stimulated the legal system to take strict actions against various aspects. Citizens generally
expects the courts to make fair decisions and thus in transparent manner (de Silva, 2017). The
effective legal system protects the rights of the citizens and thus series them form various
harmful acts. The fair judicial system ensures the well-functioning of different laws and well as
the constitution and thus respects the interest of different citizens. The independence of judicial
system creates a strong relation between the perception of people and the civil system and thus
results in the effective implementation of various laws. Besides this, the effective legal system
also provide the fair chance to every individual to be header and thus courts are advised to make
the rational decisions based on this.

P2 Role of government in Law making and how statutory and common law are applied in the
court
There is mainly division of law in the legal system where the legal system is mainly
divided into three laws that is administrative law, statutory law and constitutional law. There is a
huge role of the government in making the law. There are certain steps in law making in which
any issue which is having the scope of becoming bill is raised. The issue met the condition of bill
then it goes to the house of the parliament which then passes or reject the bill. There are three
readings of the bill, first reading is just a official notice, second reading the principles of the bill
are taken under consideration and in the third reading of a bill debate for the vote is done by the
government. It completely depends upon the government as majority of members of a
government party agrees then the bill is passed if the majority of the government party disagree
the bill is not passed. The bill must be agreed in both of the houses of the parliament.
Common laws can be where judgments passes from lower courts become laws which are already
implemented in higher level. Where there are no statutes and the other one is where interpret and
existing laws defined new boundaries and distinctions.
Statutory law are put up into practice which is passed by various governmental laws and law
abiding agencies which make laws for the welfare of the people. Which are used in various
criminal and non criminal cases which can be used to develop the easy working culture among
the people.
Statutory law and common laws are the laws which are based on legal paradigms which
are established by courts. Common laws are also known as case laws they are applied in the
court according to the case conducted which can be used to evaluate the cases which can be used
to resolve the severity of the case. If there exist no particular law for the offense situations there
exist a legal common code which can be applied to resolve the cases.
The judge precised over the case which are summered in the lower court the hierarchical level is
maintained and the decision and laws in the lower courts are reflected and on that particular basis
proceedings are done. These laws are put up into practice by various courts which practices the
decision making.
Bill formation
The bill is required to read by authorities of government and after that reading the bill is
taken into consideration. After that committee is set to discuss on the bill. All the members in

parliament were start their discussions on bill and speaker needs to take a final decision. And
after the changes are done final reading is done.
LO2
P3 How different types of government laws impact the business.
Company laws affect the business in two ways as as it assist regulation of wealth creation
and acts as an pricing mechanisms for investors. Company law makes a separate legal entity for
business. There are some rules which are mandatory to be followed by all the companies.
Employment laws refers to the regulations which establish minimum conditions that are related
to the employment of staffs in an organization. Like minimum working age, rate per hour etc.
The law affects the aspects of workplace as employment law is included in the hiring process in
an interview. It details out differences between labeled emp0loyee or an contractor of the firm. It
impacts the business in this way that it assist in prohibition and harassment in the organization.
The company has to make measures for the safety of the employees, the employments law
protect the workers against retaliation and hostile workplace environments. Having an legal
professional contract allows to frame the negotiations. The impact of contract on business is that
the comp0any can not make any changes on their own as they have to follow the guidelines
which are mentioned in the law. If any company voids the laws made by the government are
penalized for that. Any change in the law affects the working of the organization as they also has
to make changes according to that.
Pimlico Plumber v Smith case: Mr, Smith was appointed as a plumber In Pimilco plumber
organization, the plumber worked in organization from August 2005 to April 2011. The worker
suffered from heart attack as a result which he is not able to perform on its job. For this the
plumber asked for reducing his working hours on which the organisation refuses and fired Mr.
smith. Mr smith filled a claim for such unfair treatment. Mr smith also makes claim for denial of
sick leaves, discrimination against workers on ground of disablement, holiday pays under
employee rights act and equity act. The decision of the case in 2018 becomes an limelight over
the status of employment as independent worker Mr. smith, working for Pimlico on contract
basis. This decision was given on the fats that there was an overarching contract, business had a

tight control over Smith, derives the branded Van of Pimlico and tracker was attached to van and
he also carried an identity card with fowling instruction from the head control room.
Gig economy in which companies have right to be in a temporary contract for a limited period.
In this economy companies has to run on their own rules and norms.
Pimlico vs smith case provides an example of an act in which the smith is a working as a
plumber and have a problem of heart attack. The illness make him unable to work and complete
his task on time. He tries to minimize his working time. But still the smith is terminated from his
post.
Employment status checklist
Factor Self employed Employee
Personal
services
Provide own services also can hire
someone else to carry out the work
Provides personal services
Obligation Work as per ow term and condition, can
turn down work ant time.
Must work as per work offered by
employee which is being requested to
worker.
Right to
control
Control their own work and no control
of the other party.
Employers control all the action of
employee at the work to what, how and
when to do.
Equipment Bring in their own supplies and tools. Employer provides all machinery,
materiel and equipment to carry out the
work (Featured on the UK parliament
website, 2019).
Employme
nt benefits
Entitled to benefits but not such
pertaining to a full-time employee.
Eligible to get pension, enjoy canteen,
sports club, car parking.
Financial
benefits
Amount ids received on job to job
basis.
Eligible to get national minimum wages.
Leaves, holidays and sick pay.

LO3
P4 Different types of business organization
Each and every organization needs to maintain their legal structure. It helps their to
develop their business at large scale. The legal regulations are required for a business for their
smooth working. Development of organization is largely depends on how they follow rules and
regulation that are formed by the government on their working. If a organization needs to
develop their business in an another territory then they have to follow rules and regulations
according to the requirement of those territory. Each and every company has hos own rules and
every territory have their own rules in an economy.
Public sector
Public sectors are the organizations which are developed by the government. All the
working is done another the government sectors. The funds are provided by government as well
as from the taxes provided by citizens police officers, schools, railways are part of public sectors.
Public sectors organization are work for development and welfare of the people in their economy
they have less concern to earn profit at large scale. The development of public sectors is largely
depends on the working of their employees. They provide services to each and every one of their
territory all are considered equal. The rules and regulation of public sectors are set by the
government of those sectors. Government needs to know all the working and have to maintain
smooth working of those organization (Featured on the UK parliament website, 2019). Health
sectors, travelling sectors are largely depends on the public sector of the economy. Public sector
provide facilities to their employees like flexible working hours, retirement benefits, job security.
The employment have no burden over the employees of public sector. The public sectors growth
is largely depends on the growth of the economy.
Private sectors
Private sectors are different from public organization their main motive is to earn profit
by satisfying the wants and desire of their customers which helps them engage large number of
customers for the development in a long run. Private sectors laws and rules are set by the
government of their nation they have to pay taxes and have to work on the guidelines set by the
government. Private companies needs to compete with their competitors to increase their profit
and for smooth working of their company (de Silva, 2017). Whereas government has no control
over the working of private sectors. The sectors needs to know that they are providing quality

products to their customers. Advantages of private sectors are they have high potential to earn,
focus on innovation.
Voluntary organization
They are not government or private organizations. Whereas some rules and regulations
are implemented by the government of the nation. This type companies work for the welfare of
the society. The funds are generated from trusts and government of the nation. Companies will
not work to increase their profitability or for development of their organization they want to
provide quality life to the people in society. Employees of this type of organization have not earn
any income they work for charity. Advantages of voluntary organization are to make positive
difference, cultural awareness.
Legal personality In the case Of Saloman
Saloman is a merchant who prepares a product of leather and helps business to achieve
their objectives at a large scale. Saloman converted is business into a company named as
Solomom & Co Ltd. After a year of incorporation a company is not able to manage his work for
a long run going to liquidation. Company cosist his wife and childrens as a members for their
organization.
Steps to set a company
 MOA is a statement that shows that each and every member of a company can take a one
share in an business (Practical tax resources for accountants and advisers, 2019). The
contract are signed by each and every share holder of business.
 AOA is required because that contains all rules and regulations that are required for
running a business and shareholders are also need agree on those contracts.
Roles and duties of directors
 To develop policies that helps business and in favor of their working.
 Needs to promote the company
 Needs to avoid conflict in an organization.
 Needs to work for development of organization and personal interest are kept
aside.

P5 Business organisations funded and managed.
Government funding- the government is the main and trustworthy funder who funds
organisation like small and large and medium organisations. The government usually grants
these types of loans to the make growth of the economy and this will depend on the industry as
well. Government fund are like both for micro loans are small loans for the small organisation or
small size business. Government also provide loan to biding entrepreneur to grow and encourage
on easy instalments. They also provide loans to non profit organisations.
Bank Loans- bank loans are so popular and very worthy funder who also fund the organisations
and managed there funds in systematic way and operate them. Credit history provides the
financial lenders with an idea of your ability to pay off debts. Most banks require you to provide
a business plan that should reflect the products and services of your business as well as your
company mission.
Venture capitalists- they can provide funds to the small business. Venture capitalists are those
group of people who invest there money to those technological driven business with specific
blueprint of the plan.
Angel investors – they generally offer large amount of funds to the new entrepreneur as they
have good vision and they also find this bushiness very effective and efficient where they take
ownership in the business and they provide funds in returns on investments when they work on
the deal (Practical tax resources for accountants and advisers, 2019). They took whole business
ownership as they give large amount of funds for the business and that business will be owned
by them otherwise they will not provide funds to them.
LO4
P6 Legal recommendation for solving disputes in an organization.
It is common that that issues can arise in an organization. There are different types of
issues which can arises in ajn organization, such as share holder disputes as the are holders are
not satisfied with the policies of the government. They are getting less interest rate as mentioned
in the agreement. To solve this type of issues the company has to take some measures like they
should check the articles and agreements of the shareholders. The director must proposed an
resolution at the general meeting so that the issue can be resolved as soon as possible. Until the
issues are not solved the organization can not lead further and it imp0acts the overall

productivity of the business. If company is not able to solve the problem on their own they
should go the court and then tries to solve the disputes (de Silva, 2017). Another type of disputes
which can be arises in an company is contract dispute. In contract issues government is the only
body which can help in solving the disputes in company. Two parties disagree on same situation
as mention in the contracts in this case contract issues arises. The company can file an case
against the contractor if they don't agree. This type of issues is solved by legal terms only. As
these issues if not solved properly on time can lead to bigger problems and it affects the overall
business productivity.
Alternative dispute resolution (ADR): This can be defined as an alternative approach assist in
solving the commercial dispute between parties in business transactions. Alternative dispute
resolution (ADR): ADR can be defined as an alternative approach to solve the commercial
dispute between the parties to business transactions. There are various method available under
ADR: Arbitration, mediation and negotiation. This is an out of court settlement technique where
parties need not to go to court to solve the dispute saving their time as well as cost of court
proceedings. This is informal in nature and parties can also can involve in process of resolving
the dispute unlike in the litigation proceedings there is no such option available. The ADR
methods are called central system.
Arbitration: It is the most effective and practices method in the real world to solve the
business disputes. Under this a third impartial party is appointed as arbitrators who decide over
the case and pass the final decision as award over the issue. It is the most used method among all
rthe methods of ADR .Three of the advantage of Arbitration are the parties can trust the
resolution over the dispute as judges are chosen by themselves (Practical tax resources for
accountants and advisers, 2019). Secondly, the parties do not have a right to make apples so the
decision given is final to meticulous legal accuracy and finally, the proceedings are held in
private so the matter remains to the parties and the arbitrators only which is a boon for sensitive
matters.

CONCLUSION
This project is based on the business law and rules and regulation which should be followed by
the organisations. In this study there are different aspects of organisation funds has been
described and the role of government in law making and how government make laws and for
them they make statutory and common laws are applied which are also applied in the court. In
this study the examples are given in the context of company law and employment law and
contract laws and there potential impact on the business. Then the different types of business
organizations are managed in legally formed and how this organisation are managed by the
businessman's and who funded them like government funds and banks and angel funds who fund
the large amount of funds and venture capitalist they can provide funds to the small business.
Venture capitalists are those group of people who invest there money to those technological
driven business with specific blueprint of the plan. The legal formed of the making of the
company from getting no objection certificates from the government and till the end of pa[er
works. Different recommendations for resolving the legal obligations from one party to other
party to and this study defines the journey of business under the law and rules and regulation of
government.

REFERENCES
Books and Journal
de Silva, C., 2017. Alix Adams, Law for business students Ewan MacIntyre, Business law. The
Law Teacher,.(4). pp.527-529.
Featured on the UK parliament website. 2019. [Online]. Accessed through
<https://www.parliament.uk/>
Practical tax resources for accountants and advisers. 2019. [Online]. Accessed through
<https://www.rossmartin.co.uk/>