Business Law: Sources, Role of Government, Application, Effectiveness

This report discusses the different sources of law, the role of government in law making, the application of laws, and the effectiveness of the legal system in business law. It also covers the different types of business, how they are legally formed, managed, and funded, and the advantages and disadvantages of each. Additionally, it explores the difference between legislation, standards, and regulations, and the impact of company, employment, and contract law in business.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different sources of law..............................................................................................................3
Role of government in law making.............................................................................................4
Application of laws.....................................................................................................................4
Effectiveness of legal system......................................................................................................5
TASK 2............................................................................................................................................6
Different types of business..........................................................................................................6
Legally formed, managed and funded.........................................................................................6
Advantages and disadvantages of formation of business............................................................7
Difference between Legislation, Standards and Regulation.......................................................8
Company, employment and Contract law...................................................................................8
TASK 3............................................................................................................................................9
A)................................................................................................................................................9
B)...............................................................................................................................................10
C)...............................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law constitutes the collection of the legal rules and regulation which are mainly
imposed in relation to securing the right of the person in business or managing the activities in
business. By implementing this law in business, it mainly guides the company to work in which
direction or obliged to perform the contract or deal in valid agreement regarding buying or
selling of any goods or services (Davies, 2020). The main purpose of business law is that it
encompasses the business to follow all the rules and regulation which are mentioned under the
laws specially designed for business. Present report is covered with the judgement given by
Archie Richie & Lawson Solicitors on particular case scenario.
This report will cover the matters relating to examining different sources of law and also
the role of the government in making the laws and applied it to provide justice to person. It also
includes the matters relating to investigating different types of business and also its procedure to
manage and funding the business. In last task the recommendation is to be given to the parties
regarding resolving the disputes which arises through breach committed in three cases.
TASK 1
BOOK-LET
Different sources of law
Sources of law are considered to be the
origin of law which is stated as:
Customs: In this the laws are not mainly
written, but they are running from the ancient
times. As the judgement under this law is to be
given as an unofficial way. As it customized
the laws by depending upon the situation and
also the decision is to be given as per the cases
filed in the court.
Case law: It is also called as common law in
which there is no such written laws and the
decision is to be given to the parties on the
bases of the previous judgement (Hannigan,
2018). If any case arises in court for the
decision under the common law, the
judgement is to be referred from the previous
cases and then accordingly the decision is
passed.
Statutory law: It is also called as the act of
parliament in which the parliament carries the
right to make new laws or amend the existing
laws, and such laws are made in written form.
European laws: This law is mainly designed
for the European citizen regarding securing
their rights in respect of facing any such issues
in country. It is mainly designed to treat every

person equally and also protect their right
regarding dealing in any such matters.
Role of government in law making
It is necessary in country that laws are
to be amended as per the changes in time and
thus the public authorities carries the duty to
conduct the survey regarding making changes
in existing laws or examine the needs to bring
new laws. After verifying the changes, the bill
is made and passed to the lords for the first
reading. In this, the name of the bill is read in
chamber and then it is passed for the second
reading. The main debate is concluded
regarding examining the reason behind
choosing this topic (Ndzi, 2017). After making
changes in second reading, the bill further
passes on to the committee stage in which the
voting is undertaken regarding carrying this
bill for further proceeding. It than send to the
report stage, here the changes are made and
also debate is taken to make the necessary
changes. It than passes for the third reading
where the final amendment are made through
conducting the voting. After conducting the
third reading of the bill, it further raises to the
house of lord and house of common where
both the house conduct the debate and also
elaborate the changes if any they occur, after
finalizing the bill, it is sent to monarch for the
final consent. After signing the bill by the
queen, the laws are applied in country.
Application of laws
Statutory law: In context of providing justice
to parties in country, the judges mainly refers
the laws which are written in the constitution.
The liability of such laws are higher than they
cannot be challenged by any person regarding
providing justice which is not relevant to any
laws or rules. This is explained with the case
relating to the Lee v Lee air farming 1960, in
this the judgement is given to the parties on
the referring the laws written in constitution
(LEE V LEE’S AIR FARMING LIMITED: PC
11 OCT 1960, 2020).
Common law: This law applied when the
same cases is referred in country and thus by
giving justice to parties, judges refers the
judgement from the previous cases. As
through this manner, the fair decision is to be
given to parties regarding providing the
accurate judgement. It is supported with the
case of Indusstry v Bottrill 1999, in this the
issue raised regarding lifting of corporate veil,
the judgement is to be given by referring the
previous cases of the corporate veil
(SECRETARY OF STATE FOR TRADE AND
INDUSTRY V PETER BOTTRILL: CA 12 FEB
1999, 2017).
Structure and hierarchy of court in UK

Effectiveness of legal system.
The major effectivenesses which is
examined in legal system is that in respect of
the fastest decision of cases. As previously,
there is no such laws in which the judgement
is given on speedy bases but due to changes in
time, the most amendment are done in family
courts procedure where person gets speedy
result on the issue raised. The another aspects
which is examined is relating to settling the
matters through, out of court settlement. This
is one of the major changes which is examined
in legal system. As in previous times, person
had to wait for their number in court regarding
setting the disputes but nowadays by mutual
agreement between the parties regarding
appointing the arbitrator, mediator or
negotiator to settle the matter between them.
TASK 2
Different types of business
In respect of starting the business, James and Jordan had two option either to choose
Incorporated business in which they can carry the business as the separate legal entity or can
prefer the unincorporated business in which they prefer the sole proprietor or partnership
companies.
 In case of incorporated company I.e. limited company, the liabilities of the members are
limited to the amount of share held by them. If they choose to enter into such business,
they enjoy various rights regarding having tax concession of attaining the particular
activity or also carry the business as the separate legal entity (Ulfbeck, Mitkidis and
Andhov, 2019). It is easy to start the business and in case of fraud committed in any of
the activities, the owner are not liable to pay the debts.
 In respect of unincorporated company, it carries two companies firstly it is related to the
sole proprietorship business, in this the owner is considered to be the sole trader who is
liable to carry the business by their own. If they choose this business, they enjoy the
profits in the company and also take their own decisions. As under the companies act, it

is not necessary to register the name of the company while starting the business until such
name carry the unique identity or also special rights are to be undertaken to continue the
business with this name (Reinke and Zumbansen, 2019). Secondly, it is related to the
partnership business, in this business which is formed when two or more person brings
some amount of capital to establish the business, The partnership is formed by signing
the partnership deed in which the partner share equal profits and equal losses in business.
The partner of the company had to work under the set norms mentioned under the
partnership Act, 1890.
Legally formed, managed and funded
It is necessary that companies must be legally formed, managed and funded to sustain in
market for longer way. In case of Limited company, they are formed under the companies house
and also managed by the one or more shareholder in business regarding carrying the liability as
separate legal entity. In respect of managing funds in company for smooth running of business,
they issue shares to public and also take loan from banks regarding managing the business
activities in better way.
For operating in the partnership business, they provide legality under the partnership act,
1890 and also had to work under the set norms mentioned under the act. As partner are not liable
to work under the separate legal entity, they are personally liable for any such losses which is
incurred in business (Smits, 2017). Partnership business are managed by the partner themselves
and thus in respect of funding, partner bring equal amount to establish the business and also
borrow loan from banks. As they get easy approval of loan in respect of carrying the good brand
image of business in market.
In context of sole proprietorship business, they can form the business after starting the
business activities regarding dealing of any goods or services. In respect of managing the
business, they are individually responsible to manage the business and also in case of married
both the person can hold the business entity in better way (Lehmann and Zetzsche, 2016). The
funding is to be arranged by the person itself or can take helps from family or friends to invest
the money in business.
Advantages and disadvantages of formation of business
The advantages of preferring the sole trader business is that the owner itself is liable to
take all the decision and also in case of any profits is gained, they personally enjoy such profits.

To start the business as sole proprietor is easy and also it requires less cost to manage the
activities in business. The disadvantages of carrying this business is that the chances of
succeeding this business is less and also it is risky as the individual had to personally manage the
risk.
In case of partnership, the advantages of carrying this business is that all the partner bring
equal capital in business and also share profits equally. Thus, results in not facing losses
individually, as it is to be divided between the partner. The chances of succeeding this business is
higher than under the partnership business, all partner work in set guidances and also proper
management is to be undertaken in respect of accomplishing the task (Bayern and et.al., 2017).
The disadvantages of choosing this business is that in case of death of any business partner, it
results in causing dissolution of the partnership business.
The advantages of the limited company is that the owner gets tax relaxation in respect of
carrying the business as separate legal entity. The business continues to survive even if they lost
any of the partner. In this the liability of the members are limited to the amount of shares held by
them. The disadvantage of choosing this business is that it is complicated to set up the business
as it charges high fee to manage the business activities for longer term growth.
Difference between Legislation, Standards and Regulation
In respect of analysing the impact of legislation, regulation and standards in business,
legislation refers to the laws which is designed by the parliament regarding protecting the right
of the person towards attaining any task (Grimshaw and et.al., 2017). In this parliament had
power to make new laws or amend the existing laws regarding ensuring the safety of the person
at better level.
After the laws are made, the procedure of the Regulation is undertaken, in which the rules
are imposed to manage the work in right manner (Poole, 2016). It is mainly undertaken to
monitor and inspect the work, so that they are executed in appropriate way. The impact on
business examined through controlling the business activities to sustain in market for longer way.
Standards is mainly set in business regarding completing the task within the set time period or to
deliver the quality products in market.
Company, employment and Contract law
In case of running the business for longer way, various laws are imposed such as
company law, employment law and contract law. In terms of companies act, 2006, it is mainly

designed to ensure the rights and duties of the shareholders, managing the policies of the
company to secure the interest of the employees at work place and also to manage the internal
and external matter in right way (Giannakis and et.al., 2018). The potential impact upon the
company law in business is that they must secure the interest of employees towards the company
for longer way.
In case of employment and labour law, the major impact upon the business is examined
through working under the Equality act, 2010 which results in bringing lack of discrimination
between the employees at work place (Dorresteijn and et.al., 2016). It results in retaining more
employees at work place and helps in improving the working environment in better way.
Under the contract act, it is mainly formed when one party offer some valuable things to
another party and another party accepts such offer, they enter into the agreement which is made
on the bases of some considerations amount (Chiu, 2016). It results in bringing potential impact
upon business regarding securing the right of the person in case of breach committed in any of
the terms.
It is supported with the relevant case suggested as Pimlico Plumber V Mr. Smith Case, in
this case the issues of company law, contract law and employment law are undertaken as in case
of company law, Mr. Smith working with the Pimlico plumber and also carry right regarding
managing their interest in company. In case of employment law, Mr. smith is the employee of
the company and thus in case of damages incurred to Mr. smith at work place, employer is liable
to pay compensation for the loses incurred (Pimlico Plumbers Ltd & Mullins v Smith [2018]
UKSC 29, 2019). Under the Contract Act, Mr. Smith and Pimlico company both enter into the
contract regarding attaining the particular activity.
TASK 3
A)
Issue:
The dispute is faced between the Maxwell and Angelica regarding selling the rare
painting of the Duvell and the amount was decided as £500. As per the terms of contract, it is
stated that both the party enter into the contract regarding following the terms and regulation
which is mentioned in the contract and also the exchanges of promise is made through paying
some consideration money (Beale and et.al., 2019). The completion of dealing of painting is

made once the closure of exhibition is undertaken. After examining all the necessary details
regarding the valid dealing of the painting, the suggestion is given to the Angelica regarding
using the power of performing the contract under the special performances.
Rules:
Under the UK contract act, 1990, the contract is valid if their must be two parties and also
both the parties are competent to handle the contract and the contract must be made on some
considerations amount. As all agreement are contract but all contract are not agreement. As in
case of breach committed by any of the terms regarding not following the contract, they carry
various remedies in respect of performing the contract (Phang, 2018). Thus, in this case the
remedies such as specific performance of the contract is undertaken in which the parties are
forced to perform the contract rather than settling the matters on the bases of monetary benefits.
This is explained with the case study of Lamare V Dixon (1873) LR 6 HL 414, as in this
case the issues is raised regarding not keeping the promise once the contract is made in implied
terms (LAMARE V DIXON: HL 1873, 2020).
Application and conclusion:
In this case, Angelica can demanded from the court regarding using the specific
performance remedies to complete the contract as the deal is made and finalized for the amount
of £500. Maxwell cannot negotiate the painting to any third part regarding selling the painting at
higher prices. But in this case the contract is made on some considerations amount which results
in valid contract terms and thus the claimant is liable to perform the contract as suit is filed by
the defendant regarding breaching in contract terms. Thus, the demand of the specific
performances is to be undertaken regarding performing the contract on the bases of lease
agreement.
B)
Issue:
The issues which is faced by Nicholas Jakob regarding not accepting the proposal faced
an issue in context of removal from job. As this matters is related to the employment Act, 2002
which carries with all the amendment made from the exiting laws. Under these laws, the main
reason of imposing these laws is that it builds the strong relationship between the employer and
employee in business (Heidemann, 2018).

Rules:
Under the Employment and labour law, the termination terms are mentioned in respect of
committing breach in any of the norms which is necessary to be fulfilled at work place or dealing
in any illegal activity which affects the reputation of the business or also any other cases. It is
related to the case of Mr R Jakkhu V Network Rail Infrastructure Ltd [2019], the case is stated
under the terms of breach of contract in employment law regarding not accepting the offer from
the company in context of shifting the position to different country. In such aspects, the
termination letter is sent to Jakkhu regarding not accepting the proposal (Mr R Jakkhu v Network
Rail Infrastructure Ltd: UKEAT/0276/18/LA, 2020).
Application and conclusion:
In this case, Nicholas Jacob is the employee of the Newcastle and also working with such
business for longer time period. As there is no such terms mentioned in the agreement regarding
termination of the person in case of not accepting the proposal. Thus, Nicholas can file the suit
against the Newcastle regarding terminating him on the ground of the unfair terms. In this case,
they can also demand from the company regarding offering the same position in the business
with the same pay scale (Briggs, 2019). As under the employment contract nothing specific is
mentioned in the contract, thus New castle cannot carry the liability to terminate Nicholas from
the job. After filling the suit in the country the judgement is raised in favour of the Jakku
regarding not terminating any person on ground of not accepting the offer until such terms is
mentioned in the contract.
C)
Issue:
This case reflects the issues regarding not taking care of the employee at work place and
such matter reflects the violation of the law of torts. As in this law, it is mainly stated that the
torts is the civil wrong which is committed by the owners to their employees regarding knowing
the facts that this can bring injury to the person (Armour and et.al., 2018). The same situation is
happened in the respective case as Johnson fell down from the stairs, as company are familiar
with the facts that the railing is not properly fixed and thus anyone can suffer injuries through
these aspects.

Rules:
Under the law of torts act, it carries three major duties which the owners had to carry in
respect of providing safety to employees as firstly in respect of duty of care, as care is to be
provided regarding providing appropriate safety equipment if person is working at any hazardous
places (McDermott, 2017). Secondly it is related to the breach of duty, as in this case the breach
is examined regarding familiar with the injuries but not undertake any of the steps to secure such
injuries (Chern, 2019). Third step is relating to the causation or damages incurred from such
injuries.
It is stated with the case study relating to the Wheat V Lacon [1966] AC 552, the case is
filed under the court regarding negligences in performing the duty and also breach in terms of
contract after knowing the facts that this causes injuries to persons. The decision is made by the
house of lords that it is the occupier's duty to disclose all the suspects which is occurred at that
place (WHEAT V E LACON AND CO LTD: HL 1966, 2020).
Application and conclusion:
By referring this case, in relation to getting relief from the damages incurred, Johnson can
file suit under the occupier liability regarding paying compensation for the losses incurred. As
it's the owner duty to repair the railing after knowing the consequences which emerges through
not fixing it appropriately. They hide certain things which results in facing damages to the Wheat
in respect of falling down from stairs and causes death of her husband. The Lacon is liable to be
punishable under the breach committed under the Occupiers Liability Act, 1957.
CONCLUSION
From the above discussion, the report concludes the matter about the implementation of
business law in business which results in securing the rights of the parties or employees which
are engaged in business. In the first task, the discussion is made regarding explaining the sources
of law and also it important upon the country. The main reason of understanding the sources of
law is to examine the right of the person which they can avail in respect of breach committed in
any of the terms. Such source of law are mainly in written form, and they are covered under the
constitution. Second task describes the matter relating to the carrying various type of business
and also its advantage and disadvantages to deal in such business. As legislation, regulation and
standards are three basic things which make the business successful and also guides to work in

right direction. Third task reflects the various remedies which is provided to the particular case
regarding resolving the matter and also get proper justice in facing any disputes.

REFERENCES
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Chern, C., 2019. The law of construction disputes. Informa Law from Routledge.
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Online
LAMARE V DIXON: HL 1873. 2020. [Online]. Available through: <https://swarb.co.uk/lamare-
v-dixon-hl-1873/>.
LEE V LEE’S AIR FARMING LIMITED: PC 11 OCT 1960. 2020. [Online]. Available through:
<https://swarb.co.uk/lee-v-lees-air-farming-limited-pc-11-oct-1960/>.

Mr R Jakkhu v Network Rail Infrastructure Ltd: UKEAT/0276/18/LA. 2020. [Online]. Available
through: <https://www.gov.uk/employment-appeal-tribunal-decisions/mr-r-jakkhu-v-
network-rail-infrastructure-ltd-ukeat-0276-18-la>.
Pimlico Plumbers Ltd & Mullins v Smith [2018] UKSC 29. 2019. Online. Available through:
<https://www.magdalenchambers.co.uk/pimlico-plumbers-ltd-mullins-v-smith-2018-uksc-
29-2/>.
SECRETARY OF STATE FOR TRADE AND INDUSTRY V PETER BOTTRILL: CA 12 FEB
1999. 2017. [Online]. Available through: <https://swarb.co.uk/secretary-of-state-for-trade-
and-industry-v-peter-bottrill-ca-12-feb-1999/>.
WHEAT V E LACON AND CO LTD: HL 1966. 2020. [Online]. Available through:
<https://swarb.co.uk/wheat-v-e-lacon-and-co-ltd-hl-1966/>.