Business Law: Types of Sources, Role of Government, Status of Employed and Self-Employed, Different Types of Business Organizations, Funding and Management, Range of Dispute Resolutions

This report covers the types of sources of law, role of government in law making, status of employed and self-employed, different types of business organizations, funding and management, and range of dispute resolutions in business law.

Business Law

Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Explain types of sources of law............................................................................................4
P2. Role of government in law making and utilisation of common and statutory law...............5
TASK 2............................................................................................................................................6
P3. Status of employed and self-employed.................................................................................6
TASK 3............................................................................................................................................7
P4. Different types of business organisations ............................................................................7
P5. Funding and management of business types.........................................................................8
TAKS 4............................................................................................................................................9
P6. Range of dispute resolutions.................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
A legal system is the base which has different types of laws, regulations and rules governing
conduct of individuals as well as organisations operating in a country. There are civil and
criminal law which has their own courts and judiciary systems. Business law is that branch of the
legal system which deals with commercial transactions that occur between entities operating in a
country (Acemoglu and Jackson, 2017). It comes under civil law and the matters are dealt in
courts in the same branch of legal system. This report covers meaning of English legal system
along with different sources, role of government along with the application of common and
statutory law, difference between employed and self employed, various types of business
organisations and their management and funding. Lastly, variety of dispute resolution methods
for obtaining legal solution.
TASK 1
P1. Explain types of sources of law
English legal system is applicable in United Kingdom which consist of different types of
laws such as common and statutory. Its legal provisions extend to England and Wales. There are
diverse legal principle along with legal consequences in case these are contravened or breached.
It has been made the base on which many countries have set their legal structure and system. The
constitution of UK is partly written for which numerous legislations have been passed in
previous years. The knowledge of English legal system can be gained from different sources
which are as follows:
Primary sources- The information is contained in original form without any interpretation
or addition. Some of these are:
 Case law- The judgement passed by the courts are presented in the form of reports
containing issues, facts, legal principles and the decision. UK legal system follows
the principle of judicial precedents according to which future cases are decided on
the basis of prior judgement passed (Antwi and Hamza, 2015).
 Legislations- There many legislation passed on the written portion of UK
constitution which governs the rights of individuals and organisations. These are
the foundation on which every activity is conducted.
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Secondary sources- This refers to integrated information deriving from primary sources.
Some examples are as-
 Legal encyclopaedias- These are the handy encyclopaedias which is used widely
throughout the world. Halsbury's laws of English and Wales is treated as the most
authentic and reliable encyclopaedia for gaining the meaning of legal terms.
 Parliamentary and non parliamentary publications- These are the debates of both
the houses of parliament, command papers, reports displayed by government
departments or agencies for general public.
 Law commission- There is an independent body formed for examining the
implementation of enactments. Report is prepared on findings or conclusion which
is then provided to the general public and interested parties for their valuable
suggestions (Burns, Mullet and Bryant, 2016).
 Textbooks- It is the easiest way to understand legal provisions. Different authors
give their interpretation to make the bare act understandable to a lay man. This can
be achieved with the help of textbooks.
P2. Role of government in law making and utilisation of common and statutory law
Government is the authority responsible for making plans and policies for the benefit and
better lifestyle of people living in a country. Every strategy used is to lift the minorities,
developed infrastructure, generate employment and many other things. One of the important task
for government is to improve the implementation of laws in order to have better legal system.
The role of government is significant in law making which is divided into the following
categories-
Executive role- This role is associated with effective administration and enforcement of
legal provisions that have been enacted. Queen, prime Minister and Central ministries are
included in this bench (Cain, McKeon and Solomon, 2017).
Legislative role- This is about making laws which can be for the benefits of people living
in a country. Every individual has to follow the legal provisions in order to carry their rights and
activities lawfully. House of commons and house of Lords are the authority who have the
responsibility of making legal provisions.
Judiciary role- This is related to judges available in the courts for or winding up of every
case in a prompt manner. Rest of the authorities who are not covered in above roles have the

responsibility to oversee the working of courts and judges so that in case of shortfall more new
judges can be employed for providing better judgement in an efficient manner.
Other than this, there is a procedure for passing the bill which is elaborated below-
 First stage- This is the beginning of the whole process where in the bill is presented
before the parliament.
 Second stage- In this, the features of the bills are discussed among both the houses
in a debate form (Carroll and Buchholtz, 2014).
 Committee stage- This comprises of MPS as its members who to assess the
possible outcomes after the bill is converted into law. This is done with the
intention to amend the provisions for better results.
 Report stage- The report prepared by committee is presented to the house of
commons within two weeks for making amendments.
 Third reading- the final draught of the bill is reviewed at this stage and cannot be
amended substantially at third reading. However if the approval of both the parties
are obtained then for the management can be.
 The royal assent- This is the last stage in which ascent of the queen is received.
This shows the completion of all the parliamentary formalities and now the act can
be enacted throughout the country (Cuervo-Cazurra, 2016).
The role of lobbyists is to influence the legislations and regulations in an opposite direction
than what has been provided by the member of parliament. Their interest is to put the self
motives at the top and sometimes it can be contradictory to the national interest.
TASK 2
P3. Status of employed and self-employed
Employees are the lifeblood of an organisation who to show their creativity in order to
achieve the goals and objectives (Cuniberti, 2016). Every organisation appoints candidates by
executing an employment contract in which terms and conditions are contained. However, in
past few years the growth of freelancers has been seen which is an entirely a new concept. These
are called independent workers who are different from employees. De difference can be
understood through Pimlico Plumbers v Smith case.
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Gary Smith was working in a company called Pimlico Plumbers for 6 years when this case
happened. He has been unfairly dismissed despite having presented himself as self employed for
VAT and income tax for 6 years. He filed a case in the employment tribunal coating that he
should be treated as an employee. The case was rejected on the decision that Gary Smith cannot
be treated as an employee as he was a self employed worker. To which he went to to appellate
tribunal and the case was again rejected by providing the same judgement it has provided by
employment tribunal (Deakin and Haldar, 2015).
After getting aggrieved with both the decisions, Gary Smith approached supreme Court to
which lord Wilson provided, Mr Smith contracts with Pimlico was an application of personal
performance, their features of contract which strongly militated against recognition of Pimlico as
a client or customer of Mr Smith. Its tight control over him was reflected in its requirements that
he should wear the branded Pimlico uniform; drive its branded van, to which Pimlico a tracker;
carry its identity card; and closely follow the administrative instructions of its control room. The
Syria terms as to when and how much it was obliged to pay him, on which it relied, betrayed a
group on his economy inconsistent with his being a truly independent contractor.”
This was a landmark case which clear the difference between employee and a self employed
worker. when a person is appointed as an employee he has to follow all the instructions given by
the organisation which is totally opposite in the case of an independent worker.
In this case, if the cooks work treated as employed then and the council would have been
under a duty to keep the employment rights of every such individual and in no case they can be
forced for doing anything other than the clauses given in the contract of employment (Ferrell and
Fraedrich, 2015). Also, an employee has all the rights to approach employment tribunal for
getting justice for the disputes or conflicts.
TASK 3
P4. Different types of business organisations
Organisations can be formed in many types depending on the nature of business and other
factors. The owner should select the appropriate and the most suitable organisation type which
can increase the profit as well as have legal support. Some of the the kinds of business
organisations are as follows:

Sole proprietorship- this business type is owned and managed by a single person who is
called as sole trader or sole proprietor. no outside party is involved in this however employees
can be the one either from the family, friends or other people. the owner has the exclusive right
on profit and loss and holds the power to make decisions. Generally the business is small and
there is no requirement of registration or to follow any specific law. It is easy to start and wind
up. It does not require much capital (Flavin, 2015).
Partnership firm- it is formed by two or more people having common interest and an
intention to carry business for making profit. it is a voluntary organisation which does not require
any registration however the partners can get a registered in order to avoid any conflict in the
future (Png, 2017). It is governed by partnership deed which comprises of terms and conditions
included with the approval of all the members. The decisions are taken by the partners after
obtaining approval from each one of them. In case of any single disapproval the whole decision
cannot be made. There is no such huge formalities for establishing a partnership firm and it can
be dissolved with the consent of all the partners. The profits and losses are divided as per the
ratio provided in the deed.
Limited company- a company is an artificial judicial person which is formed by the
members. It has a common seal and perpetual succession along with right to hold property, open
bank account, make contracts, sue etc. It is entirely different from its members which is called
the principle of separate legal entity (Gabaix, 2016). It can be limited by shares or guarantee.
Former is related to the nominal amount paid by the members on buying the shares. Liability is
limited to the extent of unpaid nominal amount on the shares held by them. Letter is concerned
with the amount of guarantee that has been mentioned in the MOA. The formation is expensive
as compared to any other business forms. The dissolution is not so easy even if all the members
die due to the separate legal entity.
P5. Funding and management of business types
Every entity has their own way of funding and managing the business. There should be
adequate funds and people to manage the activities in order to achieve the goals and objectives.
The same has been elaborated below:
Sole proprietorship- The management is done by the owner who is the sole person
responsible for administrative all the activities. Decision making is entirely a responsibility and
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role of the sole trader. On coming to the funding part, it has very limited access to the capital and
the sources are also very few such as personal investment, and bank loan.
Partnership firm- The business activities are managed by the partners who take all the
decisions by considering the interest of the firm. The partner should give their assent in all the
decisions for their implementation. The sources for funding generally consists of personal
savings, bank loan, venture capital, crowd funding and many similar sources (Lowrey, 2015).
Limited company- it is an artificial judicial person which manages the business activities buy
a pointing directors. the number of directors collectively are called as board of directors who to
make all the decisions and act on behalf of the company. Furthermore, managers are also there to
to handle the activities of each department falling under their roles and responsibilities. a
company is in the positive side when it comes to sources for raising funds. Some of the most
common sources are share capital, debenture, bank loan, retained earnings etc.
TAKS 4
P6. Range of dispute resolutions
Mediation- The goal of mediation is for a neutral third party to help disputants come to a
consensus on their own. Rather than imposing a solution, a professional mediator works with the
conflicting sides to explore the interests underlying their positions (Senat, 2014). Mediation can
be effective at allowing parties to vent their feelings and fully explore their grievances. Working
with parties together and sometimes separately, mediators can try to help them hammer out a
resolution that is sustainable, voluntary, and nonbinding.
Arbitration- In arbitration, a neutral third party serves as a judge who is responsible for
resolving the dispute. The arbitrator listens as each side argues its case and presents relevant
evidence, then renders a binding decision (Martin and Rice, 2014). The disputants can negotiate
virtually any aspect of the arbitration process, including whether lawyers will be present at the
time and which standards of evidence will be used. Arbitrators hand down decisions that are
usually confidential and that cannot be appealed. Like mediation, arbitration tends to be much
less expensive than litigation.
Litigation- The most familiar type of dispute resolution, civil litigation typically involves a
defendant facing off against a plaintiff before either a judge or a judge and jury. The judge or the
jury is responsible for weighing the evidence and making a ruling. The information conveyed in

hearings and trials usually enters, and stays on the public record. Lawyers typically dominate
litigation, which often ends in a settlement agreement during the pretrial period of discovery and
preparation (Picciotto, 2017).
CONCLUSION
From the above report it has been concluded that, business law is a very important law
for governing the monetary transactions between two businesses. This protects the owner and
parties involved from any conflict saw disputes which may lead to huge losses and financial
burden. It is a part of civil law where in the provisions of civil judiciary system are applicable.
Apart from this, a business can be established in any form depending on the advantages and
disadvantages and nature of business. In addition to this, every employee and self worker should
be categorised into their right category so as to provide employment rights to those people
following in the definition of employment. There are some dispute resolutions solutions which
can be applied to overcome the difficulties or conflicts in an amicable.
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REFERENCES
Books and Journals
Acemoglu, D. and Jackson, M. O., 2017. Social norms and the enforcement of laws. Journal of
the European Economic Association. 15(2). pp.245-295.
Antwi, S. K. and Hamza, K., 2015. Qualitative and quantitative research paradigms in business
research: A philosophical reflection. European Journal of Business and Management.
7(3). pp.217-225.
Burns, L. D., Mullet, K. K. and Bryant, N. O., 2016. The business of fashion: Designing,
manufacturing, and marketing. Bloomsbury Publishing USA.
Cain, M. D., McKeon, S. B. and Solomon, S. D., 2017. Do takeover laws matter? Evidence from
five decades of hostile takeovers. Journal of Financial Economics. 124(3). pp.464-485.
Carroll, A. B. and Buchholtz, A. K., 2014. Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Cuervo-Cazurra, A., 2016. Corruption in international business. Journal of World Business.
51(1). pp.35-49.
Cuniberti, G., 2016. The Laws of Asian International Business Transactions. Pac. Rim L. &
Pol'y J.25. p.35.
Deakin, S. and Haldar, A., 2015. How should India reform its labour laws?. University of
Cambridge Faculty of Law Research Paper, (25).
Ferrell, O. C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Flavin, P., 2015. Campaign finance laws, policy outcomes, and political equality in the
American states. Political Research Quarterly. 68(1). pp.77-88.
Gabaix, X., 2016. Power laws in economics: An introduction. Journal of Economic Perspectives.
30(1). pp.185-206.
Lowrey, K. M., 2015. State laws addressing youth sports-related traumatic brain injury and the
future of concussion law and policy. J. Bus. & Tech. L.. 10. p.61.
Martin, N. J. and Rice, J. L., 2014. Influencing clean energy laws: an analysis of business
stakeholder engagement. Business Strategy and the Environment. 23(7). pp.447-460.
Picciotto, S., 2017. Rights, responsibilities and regulation of international business. In
Globalization and International Investment (pp. 177-198). Routledge.
Png, I. P., 2017. Law and innovation: evidence from state trade secrets laws. Review of
Economics and statistics. 99(1). pp.167-179.
Senat, J., 2014. Whose Business Is It: Is Public Business Conducted on Officials’ Personal
Electronic Devices Subject to State Open Records Laws?. Communication Law and
Policy. 19(3). pp.293-326.