Business Law: Legal System, Sources, and Impact on Business Organization

This report discusses the legal system in the UK, including the role of parliament and the judiciary. It explores the sources of law, such as common law and legislation, and their impact on business organizations. The report also examines the role of contract, company, and employment law in business operations and discusses funding, formation, and management for different types of organizations.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITITY 1................................................................................................................................1
Legal system and its evaluation..................................................................................................1
Sources related with law.............................................................................................................2
Role of systems in law-making...................................................................................................3
Impact of contract, company, employment law over business organisation...............................5
Variations between standards, regulation and legislation...........................................................5
ACTIVITY 2 ...................................................................................................................................6
Funding, formation and management for different types of organisation..................................6
Example and its evaluation relates with concept of dispute resolution system..........................7
CONCLUSION ..................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law refers to the functions and purpose which maintain order, rights, liberties
and implementing standards for performing all work without disputes. Law are implemented
among whole business operations and functions such as to interact with individuals, government
agency and other stakeholders. From the perspective of scope law-making or business law assist
company to formulate an effective framework for the commencement of organisation in market
(Allen and Kraakman, 2016). This report highlights on aspects of sources related with law, role
of government for formulation of law from UK perspective of UK government. Along with this
law related with UK courts are also consider in this report. Moreover, types of business
organisation along with their project, funds and formulation will be covered in this report.
ACTIVITITY 1
Legal system and its evaluation
Legal system of UK demonstrate aspects of parliament, judiciary and local rules that
helps for functioning and law understanding for society of UK. Parliament is the top authority
which forms legislation, laws, regulations for companies that are performing their work in UK.
On other side, judiciary system of UK consists courts that perform function as per legal power
and jurisdiction which is assigned by ruling government to companies, courts and individual.
Courts are divided into two different types which is lower and higher. According to the point
view of higher court supreme court deals with all types of cases that relates with criminal and
civil law in order to declare sue as per bench and specific laws. For criminal divisions crown
courts holds various criminal cases for sectioning personnels in which defendant is convicted by
magistrate of court. In case of magistrate court this deal with cases that contains offences and its
summary (Arsalidou, 2018). Criminal issue undertakes serious offences and pre-trial issue which
is done to give an intentional damage and harm to other persons. High court is also divided into
three different categories that deals with civil dispute involving negligence, defamation and
breach of contract. After this chancery decisions includes those matters which are related with
property, tax, insolvency. Moreover, personal and professional decisions such as divorce,
maintenance, welfare of children is also resolved in chancery decisions. After this country court
deals with both nature of cases either they are civil or criminal. Law is a large and diversify field
which keeps involvement of firm from their start period to close perspective. The base for
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formulation of UK laws is similar as it existence in market for longer period. Similarly, for
development of law different there are various new laws formulated such as contract law which
explain about formation of contract and then it comes with company law that formulates the
company by implementing rules and regulations decided by government and industry. Business
law also monitor and check business action and activities for developing right plan and strategy
for business (Brown, 2014). Along with this by understanding all laws related with civil and
criminal it is also identified that effective decisions are formed by company. Development in law
also work as an important perspective which help company to control and manage smooth flow
of trade in market.
Sources related with law
Law and its aspects relates with rules, legislation and regulations which is formed to
maintain systematic structure, discipline and peacefulness in organisational work. With
implement of rules properly in society it is easy for company and individuals to complete all task
appropriately. In the present scenario, law is most important aspects that helps in formulations of
company, country and society. Further, rules are developed by assessment of various sources
that helps in formations of company effectively. Trends are also developed by customers to
perform work in society with positive approach. Some important sources of law related with UK
are mention as follow:
Common law- This is important source of law that relates with UK that covers basic
principal and provides specific law for each situation. It is also explained with formation of law
company provides power to judge to formulate law and its amendments for each task. Decisions
of court is also formulated for considering all work as per sources that leads to overcome issue,
facts, challenges that impacts on law. With reprints related with full text of judgements and facts
that is related with key points are also covered in this report. Many series that are related with
England and specialist which helps in covering for new amends in court (Cameron and
Pagnattaro, 2017). This report is also developed to make doctrine as per judge which bound
decisions for making superior markets that reduces number of lower courts. Reprints of full text
and judgement leads company to perform work as per official portal that help company to work
with sources online.
Legislation- In UK there are various task relates with company that are not written in
constitution along this they are partially written. All laws that are codified for formulation of
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regulations that gives authority to business for performing all work as per authority. Parliament
is supreme body that forms new laws to implement in country effectively so it work as per
superior of law. Along with this with two types of legislations company manage primary to
contain all acts of parliament. Other one that is delegates to perform work as per persons and
authority of law (Cheffins, 2015).
Law commission- This is an independent body which set various concept of law to track
that company make actions to perform work as per England and Wales. It also work as an
efficient source that maintain quality to reform new amendments in country. The main work of
law commission is to submit report and make amendment to regarding business for submitting it
to Lord Chancellor.
Legal Encyclopedia- It covers definition that relates with concepts of law and helpful to
understand elements relates with law that exists already. Legal Encyclopedia also explain
definition in various forms. Majority of the important terms are also mention that covered in
interpretation and aspects of various terms. This governs that with individuals and government
business perform its work to complete their task as per committee.
Law Journals- Law Journal covers specific and general area which are related with law.
Range of various generals is extensive in nature. This also provide information to public for
explaining them from law perspective. It also help that with experienced lawyers company gives
information to perform work as per law that helps to gain opinion from law to understand its
impact on public (Dedman, Kausar and Lennox, 2014).
Role of systems in law-making
Government is one of the most important pillar for a legal system as it has duty to form
law and regulations of country. It is formed as per basic nature, structure, framework etc. Law is
one of the most effective form that constitute better structure for law formation. Within context
of UK laws are not written or unwritten. Higher authority formulate laws for country so
parliament are major aspects which is formulating rules for country and no new law is
implemented without permission of parliament. Law-making is a long process so it is complex
for government and individuals which are engaged to make a new law. Before formulation of
law bill first is demonstrate to front of the house. After modification and bill is again send to
complete its work with performance of law that asses royal persons to discuss on law and its
amendment to send bills with positive approach (Eberlein and et. al., 2014). After compilation
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and amendments voting is done with positive approach to complete essential action with motive
of laws. Moreover, there are two different types of houses. Among which first is house of
common which represents current members of parliament. Moreover, they are elected for a
tenure of five years through general election. Second is house of Lords that contains 12 judges
which are professional and expert in a field. Bill is also recognise as draft that explain law
proposed by government (Flume, 2014). Process which is followed by UK to formulate law is as
follow:
 First reading- In first read only name of bill and its general information is associated
that is read by house of commons. This stage show bill and elements to lower hosue of
the organisation.
 Second reading- In this all essential details of bills is debate and discuss that is
amendment with various stages. Second reading also voting for bills so whip system is
utilised by organisation to make possibilities of government win.
 Committee stage- With this stage bill is refers to House of common to examine detail
in proper manner. All amendments and changes is considered in this stage if they are
mandatory for organisation.
 Report stage- in report stage committee represents the bill again. Further, with in
front of both houses debate is again done to make essential amendment in bill. Their
are various governance and voting process is also done in houses.
 Third reading- This bill also represents to house and again it represent a short debate
to make draft and present within appropriate manner. It also decide whether company
present accept or reject bill.
 Royal ascent- It is last and final step which is follow by management. With this
approach monarch supposed to approve bill on formal basis. It concern that bill is
formed with motive of completing task as per monarch and parliament basis.
Application of Statutory law and common law within Justice Court
In present scenario, justice court is one of the most essential place as they have the
responsibility to declare the decision on the nature of case. In order to implement statutory law
within justice court, it will be essential for the judges to collect detail knowledge about the case
and according to that they must declare the decision by imposing penalties and remedies upon
the defaulter. On the other side, implementing the common law is difficult task as it explains that
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judges are required to take step in it and they should decide the criteria of the case. After having
the analysis on the case, it will be necessary for the judges to overview the past cases or
constitute new law and declare their final decision for effective result.
Impact of contract, company, employment law over business organisation
Company law- This law deal with formation of a new business or company. Rules,
regulations which are required by company is mention as per law. Main motive of company law
is to manage all work with smooth flow (Greene and O'BRIEN, 2016). It deals with rights,
regulations that are conducted to form organisation in effective manner. With this perspective
company complex process for registration of introduced in ease of company. This law has a
positive impact for business organisation as it easily allows to raise fund for the company. For
example: Bentley Motors requires the help of additional fund and company law guides that how
they can issues the share within the market for raising fund.
Employment law- With the name suggest employment law are developed for ensuring
safety of workforce. This deals with right candidates, duties and rights which reduces
employment turnover in internal premises of company. It is also beneficial to improve positive
aspects that improves quality of workforce to perform work with more efficiency. This law has
favourable impact as it allows to distinguish the obligations of employer and rights of employees
while working within the business organisation. This simply doesn't allow to create any of the
legal issues for the company in future period of time.
Contract law- Agreements that is done within parties to generate mutual obligations
which are enforceable by law (Hansmann and Kraakman, 2017). Basic elements which are
required by organisation to make effective agreement is amended or enforceable to make valid
conclusion and consideration by performing work in ethical manner. The impact of contract law
is favourable as will as unfavourable for business organisation. For example: In any of the
situation it do not permit any of the parties to cheat another party as penalty can be imposed. On
the other side, elements of contract will clear out each and every term of contract in best possible
manner which will not allow to raise conflict or delay in performing the task.
Variations between standards, regulation and legislation
Standards- This refers to rules which are formed to see and monitor regulations to
complete work as per legislation. For example- if regulation of a company engage child labour
and not stop it then it creates challenges for company. Regulations refers to rules which is
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formed by company to follow by employer and employee to perform all functions and work as
per regulations. Legislation is laws which are formed by government to follow and complete
work as per process. It means all legislation is enacted by legislature in kind of bill to complete
whole task properly.
ACTIVITY 2
Funding, formation and management for different types of organisation
Sole trader- It is one of the most common type of business that is presented in form of
UK that directly and indirectly provides long term benefits. This is crucial aspect for
management that help to manage business on single operated business. Advantage of sole trading
is that it is easy to operate and on bases of disadvantage it is difficult to make decisions with in
specific time period. Along with this to collect funds sole trader face difficulties to invest right
money in all projects (Jones, Hillier and Comfort, 2014). Business meeting is essential aspect for
company which is enhancing business size is also impacted due to changes in decisions.
Partnership- Business which are associated with business activities perform work with
help of partners. It is small in nature and determines that all legal work which relates with
performance of company. In order to manage partnership within a business all task are required
with organisation manage company to perform their work was per HMRC and its deeds. To
complete task and projects authority and responsibility is also delegated to workforce within
proper manner. On other side, to manage funds appropriately financial institution also leads
company to complete all task with in organised and sequential manner.
Registered Company: This are those business organisation which are easy to perform
just because of its nature and ways of performing the business. It is important to understand for
registered company that they should be able to work as per the guidelines of Companies Act
2006. Whenever this types of business are started they must perform any of the work in a
systematic manner so that any of the problem will not occur. To incorporate any of the registered
company, there is the requirement of name, address, first director and shareholder. Also, it is
essential to prepare Memorandum of Association and Article of Association which will allow the
company to accomplish their goals and target on specific time period. All of the documents will
be required to submit within Companies House along with registration fees.
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Limited and unlimited Company: Talking about the classification of limited and
unlimited organisation, it is necessary to understand that both are different from each other.
There are number of benefits which are included in it. It is totally dependent upon the business
organisation and there investor. When it comes to limited company, investor are always
benefited in it because there liability is secured in it and provide lots of benefits to the public. On
the other side when it comes to unlimited, all of the liability is required be paid by investor if
something goes wrong.
Private limited organisation- Business organisation in which shareholders are offered
rights of limited liability as it is based on investment of individual. Shares of organisation is not
transferable outside the company. Further, towards incorporate private limited organisation basic
requirements related with documents, members and their list is also included in this report. MOA
and AOA perform crucial role to submit changes in companies. Benefits for private limited
organisation represent that it is easy to operate as per legislation process (Laes, Gorissen and
Nevens, 2014). Similarly, for negative side shares are not transferable to other companies.
Whereas, to make effective arrangements for sources of funds company take loans by issue of
shares, stakeholders and company enhancement.
Public limited company- Public companies perform their work at large platform for
satisfying needs of employees effectively. Operations are performed to match with needs of large
customers so it work as positive aspect because there are low probability for making mistake in
organisation. Information must be provided with requirements that its headquarters perform work
at large level. It is also required by firm to complete all task by allowing manager to manage
their operations as per incorporation of work. Association relates with documents must be
submitted to perform work by submitting companies and their work in proper manner. To raise
funds public limited company manage raise funds directly from shareholders. Advantages of
public limited company is that it attracts more number of investors. In context of disadvantage it
relates with potential loss because multiple investors invest money to attract customers.
Example and its evaluation relates with concept of dispute resolution system
Case- Facts related with case are berry, he is a dealing in painting and agree to deal with
Davis Duke at a base price of £10,000. Martha perform an initial deposit of 20% in cash to Berry
which is too in cash. Delivery prices relates with painting and balance of cost is done on basis of
taking exhibition to offer picture that is demonstrated in Burlington. Before the exhibition was
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owed and it is ready to close. It is identified that negotiation to sold painting with deal with other
customers is also done but now Martha reduces probability for loose of painting (Loafman and
Altman, 2014).
Alternative Dispute Resolution- The resolution system refer to the process that deal
with dispute accrued within two parties. With implement of laws it is easy for organisation to
implement new methods that leads company to solve dispute by follow of proper systematic
process. In simple terms it also refer to ways by which company understand its work that accrue
between individuals. ADR also provides new ways to solve dispute outside court through using
various methods that are mention as follow:
Arbitration- Unbiased or neutral third party solve the case and dispute that take place
between intermediated parties. According to this process arbitrator is to solve dispute that
accrued in company.
Mediation- as per this method third party work as mediator that acts to deal with dispute
with in parties (Marsh, 2016). It refers to process completely that voluntary and not force parties
for make of effective decisions.
Negotiation- Negotiator is hire with purpose of solving dispute in process that is required
by third party to perform work as per appoint of negotiator. It also talk with both parties to fix
meeting to develop an meaningful and right conclusion by understanding and making agreements
within both parties.
Conciliation- Dispute are solved outside the court premises by appointing third party for
reconciliation of dispute. Further, it is a requisite process that helps conciliator to deal with
dispute and then to make an actual and right agreement.
Recommendation- By the above cases process of ADR that is going to be implement as
per Arbitration act. This process is implemented as negotiation done by Berry with another
person that sell of painting and Martha to not want leave as per painting (McMorrow, 2015). So
an arbitrator for going to appoint by both parties that is going to complete task as per study facts.
It also work to perform work as per conclusion statement to complete task as per parties.
On the other side, this case can be easily resolved with the help of other procedure which
can be effective for solving out the problem.
Breach of contract: It is defined as the situation where defaulter party fails to perform
their part of work. Looking at the scenario of the case, legal action can be taken upon the
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organisation for the breach of contract. Here, rewards is provided to the one who is proved
innocent in the case. This can allow to recover the damage amount or amount which has been
invested by the innocent party. This is one of the way through which Martha will get the
opportunity to recover the amount which she had deposit to Berry. This is one of the way
through which can between the contracted party can be resolved easily within the short period of
time.
CONCLUSION
According to this report, business law is explained that is leading company and
organisation to perform all work with per rules and regulations. This is also undertaken that
business law-making is performing work ethically by governing laws and legislation. Sources
related with common law, legislation, law-commission as well as law related encyclopedia which
is explained in proper manner. Further, with various alternate and dispute resolution way to deal
with cases is also covered. Role of government in formulation of law with implement of process
is understand that leads personnel and business to make an effective and right bill for company.
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REFERENCES
Books and Journals
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Brown, F., 2014. Outsourcing Law Firm Libraries to Commercial Law Library and Legal
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Cheffins, B.R., 2015. The rise of corporate governance in the UK: When and why. Current Legal
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Dedman, E., Kausar, A. and Lennox, C., 2014. The demand for audit in private firms: recent
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Eberlein, B and et. al., 2014. Transnational business governance interactions: Conceptualization
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Flume, J.W., 2014. Law and commerce: the evolution of codified business law in
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Jones, P., Hillier, D. and Comfort, D., 2014. Assurance of the leading UK food retailers'
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Marsh, I., 2016. The Commons Select Committee System in the 2015–20 Parliament. The
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McCormack, G., 2016. US exceptionalism and UK localism? Cross-border insolvency law in
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McMorrow, J.A., 2015. UK Alternative Business Structures for Legal Practice: Emerging
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Palombo, D., 2019. The duty of care of the parent company: A comparison between French law,
UK precedents and the Swiss proposals. Business and Human Rights Journal, 4(2),
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Shackelford, S.J., 2014. Managing cyber attacks in international law, business, and relations: In
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Siedel, G.J., 2016. The three pillar model for business decisions: Strategy, law and ethics. Van
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