Business Law Report: Business Law and Carters LLP Expansion

This business law report examines the legal framework governing businesses, focusing on the context of Carters LLP's expansion. It begins with an overview of the legal system, differentiating between common and civil law, and exploring the roles of government in law-making. The report then analyzes the impact of company, employment, and contract law on local businesses, emphasizing the distinctions between legislation, regulations, and standards. The analysis extends to different business types, their legal formation, advantages, and disadvantages, alongside how businesses are funded and managed. Finally, the report compares and contrasts the effectiveness of legal solutions and support for dispute resolution within the business environment. The report highlights key aspects of business law to ensure effective business operations.

Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
Critical evaluation of the legal system and sources of law by using appropriate examples........3
The role of government in making law and ways of applying statutory and common law.........4
Impacts of company, employment and contract law on local business by analysing difference
between legislation, regulations and standards............................................................................5
ACTIVITY 2....................................................................................................................................7
Different types of businesses along with their advantages and disadvantages and legally
formation......................................................................................................................................7
How businesses are funded and managed....................................................................................8
Comparing and contrasting effectiveness of legal solutions and support for dispute resolutions
......................................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business law refers a wide area of law whose main responsibility and role is to govern
businesses and commerce (Allen and Blackham, 2018). It is also considered the branch of civil
law which deals with both types of law private and public as well. This study is based on Carters
LLP which is a successful law firm based in a London. It wants to expand into the Aldgate East
Area. This present study of business law in going to show different sources of law and
importance of legal system by which business can make themselves able to perform activities
effectively. Further, it will discuss some steps which are being followed in law making by the
government. There are varieties of laws which critically impacts on the business performance
such as; employment, contract and company law. Lastly, this study shows different types of
business organizations which are being formed legally in different manner and have both
advantages and disadvantages.
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ACTIVITY 1
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Critical evaluation of the legal
system and sources of
law by using appropriate
examples
Legal system refers mainly
common laws and civil law
and combination of two laws.
In the context of UK, it can be
said that England and Wales
operate a common law system
which include creation of
precedents via case law
(Bishop, 2019). So, it can be
said that legal system of the
UK is common law which
consists of criminal and civil
law. There are approximate
100 of legal systems in which
some countries have dual legal
systems. There are mainly 2
sources of law such as:
primary and secondary. In
which primary law include:
case law and legislation. On
the other hand, some laws
which comes under secondary
source include: commentaries,
opinions of legal experts on
some issues as well as decision
which courts take. Some types
and sources of laws are
The role of government in
making law and ways of
applying statutory and
common law
Government refers a group of
people who have authority to
govern a state or country. It
has many roles as spending
and making money, employ
people and give a right
direction to businesses and
people to go and work. One of
the main role of the
government by which all
people can perform activities
in an effective manner is law
making. Creating a law is not
an easy task as they have to go
and follow several steps
effectively (Pedersen, 2019). A
process and all steps of law
making as well as the main
role of the government in it are
discussed in a detailed manner:
There are mainly 3 stages in
which bill goes under through
which are:
First reading: Firstly,
law is being drafted in the
form of bill. Before making a
law and going under several
Impacts of company,
employment and
contract law on local
business by analysing
difference between
legislation, regulations
and standards
There are different types of
laws whose main aim to
support businesses to perform
activities and manage day to
day operations smoothly. They
have a great impacts on
business such as:
Employment law:
Employment law refers a law
whose main aim is to improve
relationship of employees and
employer. By the aim, it can
be said that it has great impacts
on businesses. In the context
of Carters LLP, it can be said
that by applying it in its
organization it can accomplish
all its goals because it will
allow it to manage working
environment effectively
(Adams, 2019). It motivates
employees because by using
this law they can seek for
protection and can protect
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discussed below:
European law:
European law refers a system
of law which are operating and
using within all members of
European state and union. It is
also being divided into 2 parts
such as: primary and
secondary. Ground rules as
well as treaties fall under
primary EU laws. Regulations
and decision comes under
secondary EU laws. In this
context, it can be said that
actions which are being taken
by the EU is founded on
treaties. These treaties are
being chosen democratically
by its all members.
Act of parliament:
Many people consider act of
parliament as primary
legislation which are statutes
passed by a legislature. The
main aim of parliament is to
discuss bill in order to provide
approval of making it act or
law. It is a law which is being
made by the central national
elected body of Britain. So, it
can be said that all news laws
stages it is called bill. In the
first stage, the house of lords
reads and evaluated drafted
bill which is going to become
a law. When government feel
requirement of people safety
and smothering function then
they propose a bill and after
that for confirmation it goes to
the House of Lords where all
members of this house
evaluate its effectiveness.
Second reading: After
confirming bill by the House
of lords and if its all members
find it effective then this bill
go for second reading to House
of common. After transferring
this bill to the House of
common, they read it and also
evaluate for knowing
effectiveness. If they think that
this bill can fulfil the main aim
of making it then they give
confirmation otherwise it got
rejected. In this house, small
groups of MPs read it and
confit it as per its ability to
accomplish the main goal
(Singh, 2019).
themselves against accident,
unfair treatment and others.
So, it can be said that it has
several positive impacts on
businesses and its
performance.
Company: Under the
companies act 2006, these
laws are made. The main aim
of developing and applying
this law of companies is to
protect their business and
manage all operations
efficiently. Employees can
cheat the company and
companies can also take undue
advantages of employees but
with the help of this law, they
both are liable to perform
activities in a legal and
effective manner. So, it can be
said that this law also have
positive impacts on the
performance and growth of
businesses.
Contract: Under
contract law 1919, businesses
or carters LLP can apply this.
There are several types of
businesses who require making
contract with other parties and
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and existing laws which
developed and improved are
being done by the act of
parliament. Act of parliament
make up what is known as
statute law in the UK.
Common law: This
common laws are those which
are being developed by the
government and applied it
common for the country. This
law and statutory law are being
followed by many nations in
the world. The main aim and
role of the government is
taking appropriate decision in
this regard which they take on
the basis of previous case
(Varuhas, 2018). Those
previous cases which have
features and as like the current
case, only they are being taken
as consideration for making
decision for the present case.
England and Wales of English
legal system or legal system of
the UK are known as common
law.
So, overall it can be
said that, legal system plays an
important role. There are
Third or final
reading: It is the last stage in
which queen of the country.
After confirming the bill in the
second stage, it is transferred
for the final reading to the
Queen of the country. Here all
members or voters give votes
in regard to the bill and its
confirmation. On the basis of
the hugest numbers of people
who want to confirm it, this
bill is being developed. It is
the stage in which bill comes
into a force and known as a
law.
Application of statutory and
common law
Statutory: Application
of this law is time-consuming
because there is a specific
process which consist of
several steps. It is the law
which goes into a three stage
such as first reading, second
reading and the final or third
reading. All stages are being
discussed above.
Common: It is a
common law so, it is applied
within the court of justice. In
have security that other party
will fulfil all conditions of the
contract. This law protects
both parties of the contract
against lawsuit. They must
follow all terms and conditions
of contract and if they do not
do then other party has rights
to take action against opponent
(Perriello, 2018). So, it can be
said that it also have great
impacts on the businesses
because it protects both parties
of a contract to complete all
terms and accomplish the main
goal.
There are some
differences between
legislation, regulations and
standards which are discussed
below:
Legislation: It refers laws
which is proposed by
legislative body. The main aim
of law is to protect people
against illegal actions,
accidents and provide them
safety. It also makes
businesses able to manage day
to day operations effectively
and give punishment to
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several reasons which shows
the importance as well as
effectiveness of legal system
such as: they are associated
with inbound tourism in an
efficient manner which has
great impacts on decision-
making. They help in
protecting property rights.
this type of case and common
law, if judges find similar case
which has already been help
than they present case
(Parraman and Blake, 2020).
employees if they commit
breach.
Regulations: It refers detailed
instructions which shows the
way of enforcing laws. It
sometimes can be determined
as rules as well as
administrative laws. After
making laws, it is important
for businesses to have details
and ways of regulating them or
enforcing. So, these
regulations solve this problem
and support businesses and
telling them the way of
enforcing (Kim and Kim,
2018).
Standards: It refers a
document which is being
approved by an authorized and
recognized body. It gives rules
and guidelines about products
and processes. In other words
it can be said that t is a
document which describes
features of processes as well as
products.
So, from the above t
can be said that all three terms
has difference but are
interrelated with each others.
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ACTIVITY 2
Different types of businesses along with their advantages and disadvantages and legally
formation
There are different types of businesses which has different ways of legally formation as
well as advantages and disadvantages. When an individual think about running a business then
they need to analyse all types of businesses. They need to identify advantages and disadvantages
as well as their legal formation for making the best decision. All types of businesses are
discussed below:
Sole traders: An organization and a business which an individual can run individually is called
sole proprietorship. A person who run this type of business is known as sole trader. Owner or
individual is liable for all generated profits and losses. But they can employ other person if they
want as like employees and supporters (Gabriel and Kirkwood, 2016).
Advantages
 All profits are being enjoyed by an individual.
 Easy formation.
 Sole trader is free to take decision and ways of performing activities as there is no
involvement of other parties.
Disadvantages
 Liable for all loss.
 Lack of creativity and poor decision due to lack of suggestions.
Legal formation: There is no specific formal federal forms as like other types of businesses
partnership. An individual run the business so, there is no requirement of legal formation.
Partnership: A business which requires minimum 2 and more than 2 people are known as
partnership with having common aim. On the basis of their contribution and investment amount
they share profits and losses. They are also liable to pay taxes on their own shares (Fröhlich,
2016).
Advantages
 Losses are shared among all partners.
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 Better decision-making.
 Effective management by sharing work.
Disadvantages
 Lack of separate legal system.
 It can be dissolved if any partner die and all losses are being shared among rest partners.
Legal formation: Under the act of partnership 1890, all rules of this business type are formed.
All partners are liable to share profits and loss as per their contribution. Some steps of formations
include: preparing partnership deed which involve all informations, payment of stamp duty,
registration etc.
Limited companies
Limited companies have separate legal identity and owner has limited liability to repay all debts.
These enterprises have rights to sell their shares on stock exchange. All the business decisions
are taken by chairman and board of directors. It is very important for limited firms that to prepare
documents like memorandum of association, article of association and also it is compulsory to
conduct audit according to norms.
Advantage
 Limited companies have benefit of minimum personal liability, as owner is not
responsible for debts of firm. That means if business fails to generate profit then also
personal properties and assets will be secured.
 Limited firms are tax efficient, as firm pays tax every year which develops confidence of
stakeholders and encourage investors (Advantages and disadvantages of a limited
company, 2020).
 Limited firms have to registered itself and this registration protects firm from future legal
consequences. For example, name of registered company cannot be used by any other
firm.
Disadvantage
 It is very difficult for director and owner to set up limited firm because registration of
business with companies house is lengthy process and enterprise have to pay huge
amount as fees for the same.
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 Limited companies are required to maintain different accounts and have to file tax in
every fiscal year. If it fails to keep record properly then it may cause legal problems to
organization.
 Limited firms require to publish their annual reports and this can be used by outsider
which may create privacy issue to business.
How businesses are funded and managed
There are different types of businesses like partnership, limited companies and sole
traders who require money for investment in business. There are several ways and sources from
which they are funded and managed. Some ways include:
Business loans: It is one of the most useful and effective ways of managing and funding
business. Selection of the best one and source of funding mainly depend on the scale of business
as whether it is on small scale or large scale. If people want to run a business to a large scale then
they choose this way of managing and funding their business for managing all operations
effectively. For getting business loan, businessmen require to show all required documents
related to business to bank (Barraza, Civelli and Zaniboni, 2019). These documents include:
expected income which they will generate and business plan. After that, bank verifies all
documents and measure capability of businessmen and partners if they can generate profit or not.
After evaluation, they provide loan by which business are being managed and funded.
Bootstrapping: If people want to run and start a new business as a partnership than it is
considered the best way and source of funding and managing. It is also known as self funding in
which people have some skills and confidence that they will make profit if they run a business as
they only require money for investment. Savings, retirement money, FDs and other own findings
are some sources of this type. By collecting amounts by own basis business can be managed
(Iliesiu and et.al., 2016).
 If corporation wants to manage and fund their businesses than they either can use debts or
equity.
Comparing and contrasting effectiveness of legal solutions and support for dispute resolutions
There are different types of issues occur in an organization related to safety, breach of
contracts and others. As per the type of issue and dispute, different types of laws can be applied
and solved disputes. For example: If any person breach a contract and do not fulfil all terms and
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conditions of contract whether it is oral and written than in this case: it can be recommended that
people can take advantage of contract law. As per the contract law, there is important for both
parties to complete all terms and create mutual obligations enforceable by law. If any person and
one party of the contract break legal contract than as per the contract law, other party can file a
lawsuit against the opponent (Austen-Baker, 2017). After that, party will be liable to pay penalty
and fulfil all terms of contract. So, in the case of breach of contract, contract law can help people.
Whereas, in the case of safety and accident at workplace, employees can take help of
safety law. For example, due to some unfixed railings and other poor working environment,
employees fail down and met an accident than it can be recommended that they should make an
effective use of safety law. As per the workplace safety law, employers are liable to provide an
effective working environment and provide safety to their employees. Under employment law,
health and safety law will be beneficial for people who met an accident and face some problems
at workplace due to poor working environment and other mismanaged things (Self, 2017).
On the other hand, in the case of unfair dismissal and unfair treatment, it is suggested to
employees that they can make an effective use of employment law. As pert the rules of
employment law, employers can not dismiss a person without any specific reason. There should
be a valid reason of terminating a person. So, if employees feel that they are being terminated
and fired without a specific reason and unfairly then they can case a file against employers as per
the rules of employment law (Venter, 2016).
So, from the above discussed laws, it can be said that different types of laws are being
applied according to the situation. But the main common aim of all types of laws is to protect
people and provide them justice for their legal action.
CONCLUSION
From the above study it has been summarized that laws and legal system played a vital
role in managing business and protecting people against illegal actions. This study has shown
different sources of laws whose preliminary aim is to protect people and make them safe and
secure. It has also shown importance of the government in making laws as well as all steps
include in law making. There main stages has been shown in which a proposed bill goes under
through for making a law. Further, it has discussed different types of businesses such as sole
traders, partnership and limited companies who have some advantages and disadvantages. They
also have different ways of legal formation. By analysing each type, people make decision of
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