Business Law: Nature of Legal System, Key Legislations, and Types of Business Organization

BUSINESS LAW

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUTION..............................................................................................................................1
PART 1............................................................................................................................................1
1. Explaining the nature of legal system......................................................................................1
2. Reflection of legal system using the examples for demonstrating the strengths and
weaknesses...................................................................................................................................2
3. Key legislations, regulations and standards which business need to follow...........................3
4. Various laws which the business has to follow for the successful working of business.........3
5. Types of business organization................................................................................................4
6. Critical evaluation of how organizations are funded...............................................................6
PART 2............................................................................................................................................7
Case study 1.................................................................................................................................7
Case Study 2................................................................................................................................7
Case Study 3................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUTION
Business or commercial law is described as body of law that governs the commerce and
business and are often considered as branch of civil law. It deals with the issues of both public
and private law. Business law regulates hiring practices, corporate contracts and manufacture and
sales of the consumer goods. Report is based on the business law and its application to the
company. Report will provide about the nature of legal system, potential, impact of law over the
business, will examine the formation of different types of business organisation and
recommending appropriate legal solutions for resolving the areas of dispute. Stud will enhance
the understanding of business law and its implications over business.
PART 1
1. Explaining the nature of legal system.
Legal system
Legal system refers to the process or procedure for enforcing and interpreting law. It
elaborates rights and responsibilities variety of the ways. Major legal system comprises of
common law, civil law and religious law. England & Wales operates a common system of law
that combines passing the legislations and also creation of the precedents by case laws. Laws are
established by passing legislations by the parliament that consists of Monarch, House of
Commons and House of Lords. UK is constitutional monarchy, where monarch is head of the
state whose functions, duties and power is conscribed by the convention.
Sources of law
There are main four sources of law in the England and Wales that are domestic
legislations, common laws, European Union law (EU) and European Convention over Human
Rights (ECHR)
Legislation laws are created by legislature and Acts of parliament are most important part
of legislation. Principle legislature is UK parliament in London which is only body having the
power of passing laws applicable in four countries (Kleinheisterkamp and Upadhyay, 2019).
Parliament of UK consists of House of Common and House of Lord.
Common law & equity are developed over centuries by the judicial precedents and are
commonly referred as Case law. ECHR is the international law incorporates into the domestic
legislations by Human Rights Act, 1998. Court are required to apply the laws in accordance to
conventions and where not possible parliament can make changes to the law.
1

Role of the government in law making
Parliament is having two roles in the law making, First of passing government
programme of legislations for turning the bills which government proposed in Acts of the
parliament. Second is of scrutinising the government bills, preventing excessive bad or the
unnecessary laws from being made. Executive branch of the government develop draft laws and
main role of the parliament is of reviewing, amending and passing the laws.
Application of statutory and common law to business
Legal system of UK is founded over common law and stats have same level of binding.
Statute laws codifies the certain rules while the common law provide interpretation and
clarification of application of the instant cases to codified law (Burridge and Gill, 2017).
Business organisations are required to comply with all the rules and regulations applicable to
them in the state they are operating.
2. Reflection of legal system using the examples for demonstrating the strengths and weaknesses
England & Wales has the common law of the legal system that is established by subject
matter that are heard in the earlier cases and the law is created by judges. EU legislations are
applicable to the various parts of the United Kingdom of the Great Britain. It is based over
sources of law that are acts of the parliament, case laws from the hearings in courts known as
precedents. Legal system has also the sources of law from the legislation of EU to be followed
by member nations and the international laws obligation as signatory to the numerous
international conventions and treaties notably European Conventions over Human Rights.
However parliament has the authority of changing the laws and not the courts.
Legal system of the UK though appropriately structured has strengths and weaknesses.
Constitution of the legal system is easier to change and introduce the acts of parliament. It allows
the change in business laws. UK legal system has long unbroken period of the democratic rule.
Changes are brought in the system as per domestic pressure (UK Legal System, 2019). Judges do
not have direct influence over court is minimal unlike USA. However weakness of the system is
uncertainty at various parts of law as it is not certain about the constitution and particularly
unwritten parts. Dictatorship is a weakness as power is concentrated over executive that can
reshape constitution on their wish.
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