Business Law: Legal System, Sources of Law, and Role of Government

This document provides a comprehensive overview of business law, covering topics such as the legal system, sources of law, the role of government, statutory and common law, legislation, regulations, and standards for new business entities, the potential impact of different types of law, legal formation of different organizations, advantages and disadvantages of different organizations, managing and funding of organizations, and an overview of contract law, employment law, company law, and more.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Explanation of the legal system, different sources of law, the role of government in law-
making and how statutory and common law is applied to businesses.........................................3
A critical reflection of the legal system using examples to demonstrate strengths and
weaknesses...................................................................................................................................4
Differentiate legislation, regulations and standards for new business entity...............................5
Potential impact of different types of law....................................................................................5
Legal formation of different organisations..................................................................................6
Advantages and disadvantages of several organisations.............................................................7
Explain managing and funding of different organisations..........................................................7
TASK 2............................................................................................................................................8
Brief overview of Contract law, employment law, Company law, etc........................................8
Salient legal points of each case;.................................................................................................8
Suggest an appropriate legal solution to each of the problems...................................................9
Provide justification for the advice and solution given...............................................................9
Compare & contrast the effectiveness of these recommendations given in your presentation...9
Critically and evaluate the use of the appropriate legal solutions suggested in comparison with
alternative legal advice................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
United Kingdom is a dual-division state in which its law gives people many freedoms,
laws and alternatives. Even it becomes important to business organisation to take their decisions
as per the guidelines set by legislative body. In simple words, Business law is the range of
regulatory requirements to create, function, dissolve, and interact with other corporations. The
file is explained into two parts where first section will have the information about legal law, law
forming process and detail structure to commence any of the business organisation. In part two,
topic will relate about cases which is needed to be sorted out in best possible manner.
TASK 1
Explanation of the legal system, different sources of law, the role of government in law-making
and how statutory and common law is applied to businesses.
The legal system of UK has fix pattern to commence any of the law for the purpose of
maintaining peace and silence within the country (Cowan, 2018). In legal system, the power of
taking final decision is in the hand of Queen where her approval is must. If in any of the
situation, approval is not being taken then bill cannot be passed as law or act.
There are number of Act which are being passed on daily basis and there is the requirement
of legal bodies to power is allocated by the central body of law making body. Some of the
sources of UK which has been given the power to commence act are:
Legislation: The most important body within the UK is legislation where they commence
the number of law as per the situation. It is necessary that bill is needed to be passed by different
stages to commence any of the law through the process of legislation.
Directives: It is the sources for commencing law in UK where decisions are being taken
by European Union which commences the law in UK since the end of world war and this source
is very effective. Although this is also the body which commences the law for UK but it is
important that approval must be taken by the process of Royal Assent Act, 1961 (Epstein, 2018).
Case law and treaties: It is also one of the important means in UK through which laws
are commence. Here, whenever any of the new sort of case arises in the court where they are
unable to take any of the decision of own then in that situation judges of court gets the special
power to enforce the new law and then declare their decision.

Government have been given the power to enforce any of the law but before that they must
obtain number of approval from different stage and if they are unable to do then it doesn’t allow
to commence the new law within the premises of UK. In primary phase bill is to presented where
member of first reading gives the title followed by second reading do general discussion that
whether approval is to be given or not to bill for sending it to committee stage. When bill is
presented in committee stage, they have to take the forward stage and decide that what are the
changes which is needed to be done and gives the opportunity to report stage to amend it in best
possible manner (Allen, 2017). After that voting is to be done in third reading to decide that
whether bill should be passed for commencing law or not. All of this steps are to be conducted
by the peer member of House of Lords where they also have the equal responsibility. In the final
stage, the approval is needed to be acquired from Queen under the terms and condition of Royal
Assent Act, 1961.
Statutory law is the set of regulation where pattern is fix and that is needed to be
considered at the time of taking any of the business decision. For example: Business law has
been formed by the statutory body which gives the idea that what types of actions can be taken
within the business and what can make liable to pay for default. This is how statutory law is
implied upon business organization.
Common law plays the crucial role for the business organization because whenever any
of those decisions are being taken by the organization lots of question are being asked. In this
situation power is given to common law to interfere and decide that whether decision which has
been taken is right or wrong and if it is not right then legal actions are also taken upon those
business organization (Cameron, 2017).
A critical reflection of the legal system using examples to demonstrate strengths and weaknesses.
The legal system of UK has been developed in the systematic where business
organization can depend on law for taking the decision for longer period of time. Proper
guidelines are explained by law due to which it becomes easy for business entity select that what
can help the to accomplish the target and what can create problem. Although, it is helping in the
positive manner but still it is necessary that amendments should be done which is rarely found
within UK and it has been one of the biggest weakness of UK legal system.

Differentiate legislation, regulations and standards for new business entity.
Legislations are the laws which are being commenced by the law and it necessary for the
new business entity to have detail knowledge about as it helps in number of situation. Secondly,
Regulations gives the idea to interpret the law which has been formed by legislative body. Here,
it helps to categories that what are those laws which applies upon business organization. The
third one is standards which tells that new business entity must take care about the product and
services which they delivery to their customers because it should not be below the set standard
and if in any of the situation it is found so then legal actions can be taken on that organization
(Hansmann and Kraakman, 2017).
Potential impact of different types of law.
Employment law: The law which defines the relation of owner and worker of the
organization is known as employment law. It becomes necessary for business firms that they
must comply with the terms and condition of employment law. The main impact of this law is
that it doesn’t allow to do discrimination with any of the employees and also helps to accomplish
the goals of a company.
Contract law: It’s the agreement between two people and commencing relationship of
business between them, this will declare to have a certain outcome and define the terms and
conditions (McCormack, 2017). This term defines several situations where people do provide
their side of negotiations and interest to be gained in the business. The main impact is that it
doesn’t allow to breach the terms and condition of the agreement due to which there are less
chances that company have to suffer from losses.
Law of Torts: It is the law which express about the civil wrong which has been
performed by the person without having any of the intention. The main impact of law of tort on
business is that if any of the wrong activity has been performed by the organization then legal
action can be taken upon the business organization where charges can be imposed.
Copyright law: It is the law which gives the right to control the way in which any of the
material should be used which has been invented by any of the person. The main impact of
copyright law is that it protects the product of company to be copied by other organization if they
have not obtained the prior permission.

Legal formation of different organisations.
Looking at the current situation it can be easily said that there are number of business
where formalities are different as per their size and structure. Below, some of the organization
has been discussed in detail.
Sole Proprietorship: It is on a sole trader where individual person run the business and
even there are no restrictions at the time of conducting business. It is famous form of business
when business activities are needed to be conducted alone. There is no legal requirement which
is needed to be considered at the time of formation but it is necessary to register at local
registration office to start the business activity (Picciotto, 2017).
Partnership: It is also small business but still number of people are engaged in it for
conducting business activities which help to achieve desired goal on specific time period. the
process of formation of partnership form it is necessary to prepare the deed then after choose the
name, register with HM Revenue and Customs. After this, business activities can be conducted
easily on regular basis.
Private company limited by Share: This is the form of business organisation where
limited number of member come together to conduct the business activity where there is no
involvement of any outsiders. Shares are limited to only those members who are the part of a
company but not to public at large. At the formation of private company, there is the requirement
of memorandum of association and article of association (Raz, 2017). It is necessary to prepare
the list of member who will be the part of a company then registration should be done under
Companies Act 2006 to start the business activity.
Public Limited Company: This is the form of business organisation where any of the
person can become the part of a company. It is necessary to understand that this type of business
organisation must be performed at bigger platform where number of investors are required so
that every activity can be conducted successfully. To form the business name, address is needed.
After that first director and first member is needed. Suddenly, after that SIC number is required.
Then MOA and AOA is required. At final stage, registration should be done under Companies
Act 2006.

Advantages and disadvantages of several organisations.
Sole Proprietorship: The business small due to which low cost is required to start the
business with less formalities which is one of the advantage of this type of organisation. As
owner themselves have to bear the liability and debt of a firm which can create problem at some
stage and that is one of the major drawback of this type of firm.
Partnership: It can be established only if there are two persons available with low
investment cost which is one of the benefit of this type of firm. distance can be easily created
anyone liability is not limited in it which is the disadvantage of partnership firm.
Private Company limited by Share: The source of raising funds is high as compared to
sole proprietorship and partnership form which is one of the major advantage of private company
limited by shares (Bayern, 2016). On the other hand, the main disadvantage of this type of
company is that there are lots expenses which is needed to be e paid off by company
Public limited Company: The liability of investors is always protected due to which
number of investor want to invest in it. While talking about drawbacks, it doesn't have the power
to take any of the shortcuts to conduct the business activities which increases the unnecessary
expenses.
Explain managing and funding of different organisations.
Corporation: These are the company which is needed to be managed by directors,
shareholders, company secretary, CEO and many more. the main source of raising fund in this
type of company is shares, bank loan, peer to peer lending etc. (Rutledge, 2014).
Social Enterprises: The manager are the one who is responsible for managing every
single work. The funding from government and public plays the crucial role in it as they are the
main source of funding in it.
Limited Company: The person who performs the business activity (investor) has the
responsibility to manage every single work. The main source of funding is personal assets, bank
loan and many more.

TASK 2
Brief overview of Contract law, employment law, Company law, etc.
Contract law: The law which provide the detail information that how any of the company
is needed to enter into the agreement is known as contract law. This law plays the crucial role
because it helps to confirm that no body breaches the terms and conditions.
Employment law: The most important law for the business organization is employment
law. It discusses that how employer is required to treat their employees and how employees must
for the purpose of achieving the goals of an organization (Besley, 2015).
Company law: This law is necessary to run any of the business organization as it is the
primary source to commence any of the business in legal way. If any of the organization doesn’t
follow the rules and regulations of company law then legal actions can be taken where various
penalties can be imposed.
Salient legal points of each case;
Case 1: It's the case in which multiple contract terms were defined. It has been identified
that Orange ltd wants to eliminate the income of Gordon, who serves as a salesman. The main
reason of eliminating the salary was financial problems. But, now the firm has continued to gain
a decent amount of funds, as a result of which Gordon wants to eliminate the new deal and
resume the old contract, yet Orange Ltd does not allow this to happen.
Case 2: This was one of the case which took place between Janet and Virgin Media.
Here, company did not deliver the services which they promised to Janet. But, still they charged
the price for those services which they were needed to provide.
Case 3: This case relates to Blackhorse Ltd and its lenders, where liability on the
organization of company has been raising day by day (Cleaveland, Dutcher and Epps, 2015).
Some of the lenders here has filed the petition against the company for winding up. Organization
is seeking to pay off the loan amount by for taking additional period of time.

Suggest an appropriate legal solution to each of the problems
Case 1: The first case can be sorted out with the help of conciliations method. The main
role of conciliator is to work as the third party who will listen to each and every issues of public.
Case 2: This case can be solved by taking the help of mediation process in which third
party interfere and check the validity that what were the main issues of the case.
Case 3: It is the complicated case where some of the strong base is required which means
that arbitration is required to solve the case.
Provide justification for the advice and solution given
Case 1: Conciliation is helpful because the main aim in it is that how parties can come
closer to the agreement. It will support them to come up with the solution that how both can find
that way through which they can continue in future period of time (Forrer and Katsos, 2015).
Case 2: The suggestive advice in this case is mediation as the matter is not of
complicated terms. This can easily work because just suggestion is more than sufficient so solve
the case. The main suggestion will be based that
Case 3: In this, arbitration will work because all of the terms and condition will be set
and it will make clear that how long time will be sufficient to pay off the debt amount. Even they
can also check that whether company can be able to pay off the debt amount or not.
Compare & contrast the effectiveness of these recommendations given in your presentation
Arbitration, Conciliation and Mediation are one of the process which is very effective in
sorting out the problem of civil wrong. It can be solved within the short period of time. Also, it
tries to find those solutions due to which any of the party is not suffered (Harner and Rhee,
2014). In case of Arbitration, decision is legal in binding due to which similar form of problem
doesn’t arise again in any of the situation which is the main benefit of it.
Critically and evaluate the use of the appropriate legal solutions suggested in comparison with
alternative legal advice
The advices which are being given in this are although helpful but it has been found in
number of situation that it may consume time as well because it is not necessary to follow the
advices which are being given under it and that is one of the main problem in it (Murray, 2014).

Legal solutions are of expensive process but Alternative legal advice is simple and less
expensive process.

CONCLUSION
From the above file, it is winded up that all of the business entity must comply with the rules
and regulations of business law. If in any of the situation, company fails to perform their
responsibility then legal actions can be taken. Different sources of UK law help to maintain the
peace and silence in nation. While forming any of the company, it is necessary that proper rules
of companies’ act must be followed. There are different types of cases which arises with the
company but alternative dispute resolution can be one of the way which can help to clear out the
problem.

REFERENCES
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Epstein, R. A., 2018. A Common Law for the First Amendment. Harv. JL & Pub. Pol'y. 41. p.1.
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Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
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McCormack, G., 2017. Business restructuring law in Europe: making a fresh start. Journal of
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Picciotto, S., 2017. Rights, responsibilities and regulation of international business.
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Cleaveland, M. C., Dutcher, C. and Epps, K., 2015. Comparing Business Law in online and face-
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Leadership Journal. 19(1). p.123.
Forrer, J. J. and Katsos, J. E., 2015. Business and peace in the buffer condition. Academy of
Management Perspectives. 29(4). pp.438-450.
Harner, M. M. and Rhee, R. J., 2014. Deal Deconstructions, Case Studies, and Case Simulations:
Toward Practice Readiness with New Padagogies in Teaching Business and
Transactional Law. Am. U. Bus. L. Rev. 3. p.81.
Murray, J., 2014. Social Enterprise Innovation: Delaware's Public Benefit Corporation
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Challenges to the PPACA Contraceptive Mandate. Wm. & Mary Bus. L. Rev. 5. p.1.