Business Law: Legal System, Sources of Law, and Types of Business Organizations

This document provides an overview of business law, including the legal system, different sources of law, and the formation of different types of business organizations. It also discusses the advantages and disadvantages of unincorporated and incorporated businesses. The document is relevant for students studying business law or anyone interested in understanding the legal aspects of running a business.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
PART 1 ...........................................................................................................................................4
Explanation of the legal system, different sources of law,.........................................................4
Explain the role of government in law-making..........................................................................5
How statutory and common law is applied in the justice courts.................................................6
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments...............................................................................................................................6
Different types of laws like contract law, Law of torts, copyright law, employment law..........6
Differentiate between legislation, regulations and standards to analyse potential impact upon
business.......................................................................................................................................7
Provide a coherent and critical evaluation of the legal system and law.....................................8
Explain how different types of business organizations are legally formed................................8
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process...........................................................................................9
PART 2..........................................................................................................................................11
Brief overview of Contract law, employment law, Company law, etc.....................................11
Salient legal points of each case................................................................................................11
Suggest an appropriate legal solution to each of the problems.................................................12
Provide justification for the advice and solution given;............................................................12
Compare & contrast the effectiveness of these recommendations given in your presentation.12
Critically and evaluate the use of the appropriate legal solutions suggested in comparison with
alternative legal advice..............................................................................................................12
CONCLUSION..............................................................................................................................13
REFRENCES ................................................................................................................................14
.........................................................................................................................................................1

INTRODUCTION
Business law are the laws which are required in order to set a business organizations
which helps in achieving of goals and objectives. Such laws are also required to provide a
concrete framework which posses various kinds of rules and regulation which provide protection
against legal issues to be occurred within such organization. Nature of these laws is dynamic
which is important for dealing with various aspects of business. Scope of these laws is also very
wider in nature because various elements of laws are covered under it. This file is based upon
business law. Things to be covered in this file are sources of law, role of government in law
making. Further various organizations there funding, managing with advantages and
disadvantages is covered. In the end of the file various scenarios is going to be covered and legal
solutions has to be provided for scenario presented.
MAIN BODY
PART 1
Explanation of the legal system, different sources of law,
As per the modern scenario every country should posses its own legal system that helps
in maintaining balance and discipline within society. This is one of the most important elements
that is required to control rate of crime. UK has its own legal system which has certain legal
rules to be followed by everyone living in society. This system consists of a well known
procedure which has certain stages in order to make a law as a permanent Act. Further there are
courts which have been given various jurisdictions that have been explained under her-achy of
court. In which Supreme court is the highest court of appeal, after this high court is there which
is divided in to three parts crown court dealing with criminal aspects, them comes court of appeal
that deals with civil cases and then comes family court dealing with family related issues.
Magistrate courts that deals with matter of both civil and criminal nature transferred from lower
courts. Certain sources are there which has played important part in making appropriate and
concrete law. Some sources are being explained as follows:
 Parliament: It is the highest authority that is that has been given power to form
laws through proper procedure. Such procedure comprises of House of Lords and
House of Commons and then has to gain signature of Queen to become permanent

law. Discussion has to take place over the bill that has been presented within the
parliament's houses top check over the legality of bill presented.
 Case law: These sources are one of the most important elements which helps in
making law to improve itself as per the situation occurred within a society or have
impacted society. In this source power to mould a laws lies within judges in order
improvise or covering of loopholes in a law. According to this amended law is
applicable to each person since the time of implementation (Deipenbrock, 2016)
 European Union Law: These are the laws that are being considered as one of the
most important source of law because it has helped in making various laws and
applicability over each person. Such laws have contributed 50% of total law
forming.
 Treaties: These are those agreements that have been signed in order to perform
trade and financial activities between two countries. Specific law that provides
guidelines of it is known as international law which provides concrete framework
under which working has to be done over it. These treaties are very important to
boost trading of in a country.
These are some of the main bodies of UK which has been commencing laws and regulation
within the premises of UK since long time period. Also, these laws are result oriented in nature.
Explain the role of government in law-making
Government is one of the highest laws making body which makes laws and plays major
role in formation of law. Laws are formed to maintain balance within society and are applicable
over every individual living in society. Also laws has played very crucial role in improving
various crime condition. Role of government has been explained as follows:
Executive role: They are responsible towards formation of policies that is applicable all
over UK. It focuses more on implication of laws that is required to establish to improve
condition of society and creating more discipline that is necessary.
Legislative role: Role of them in law formation in UK is that they are responsible over
passing a bill and making it law through proper process. It consists of two houses that are House
of Lords and House of Commons in this bill is presented and discussion is taken place over it.
Main focus of this authority is to enact a law that has to be made in order to make it applicable
upon society.

Judiciary role: In this the judges holds responsibility over implementation of law. Laws
made by judges are considered to be effective from the time it has been brought into
consideration by judge. Proper commission is being set-up for this purpose in which members of
government with judges are presented.
How statutory and common law is applied in the justice courts
There are two laws that have been formed as the base to be applied within the court and
application of process in court is different applied as per the requirement within an case. Further
detail has been explained as follows:
Common law: In this judgement are being passed by the judges that have is to be applied
in an case after analysing all the required parts of it. Such laws becomes base for the similar
cases that can occur in future. This is made to reduce complexity within an existing law of
similar kind. Judgement passed is considered to be equal to decision of court. These are helpful
in providing transparency to process of justice (Favarel-Garrigues, 2019)
Statutory law: These are the permanent law that are being formed through process
followed by government. Such laws are present in written form and are to be applied all over the
society. It is used in highlighting over the scenario that has been presented within a particular
case.
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and developments
Legal system of UK is being facing changes from time to time and has been evolved as
per the requirement. Law has been there since the very beginning of legal structure in UK. The
major development that has taken place is civil and criminal law. Criminal law deals over the
crimes that is being committed with the intention of killing and harming public at large. Civil
law deals with wrong committed by an individual. Changes has been made in UK legal system
but it still lacks compatibility with modern law and has to be change in order to cover flaws to
make it more strict and competing with modern laws.
Different types of laws like contract law, Law of torts, copyright law, employment law
In UK various laws has been formed within the country to make legal system for bsuiness
organizations more secure and are being explained as follows:
Government in UK has made various laws regarding business organizations and this function
such are being explained as follows:

Company law: These laws are important to maintain organization of business for
establishing it. These laws are being explained with proper rules and regulations under
Companies Act 2006. In this act companies has to have Memorandum of association and article
of association to be legally accepted under eyes of law.
Employment law: These laws have been formed to deal with rights and duties of
employees from the reason of protecting it. Such laws are to be applied within workplace to
make task accomplished. Rules and regulation regarding has been explained within the
Employment act 2002 and Equity act 2010.
Contract law: These laws are there to maintain strong relationship between two organizations
and to give agreement legality in the eyes of law. This is also important over dealing with
financial matters. Various elements are being presented under the law that is helpful in providing
legality as per the law.
Law of Tort: These are one of the most important parts of legal system of UK and have
dealing with aspects of society under various topics are covered like negligence, assault and
battery etc. It has been applied in an organization to maintain ethics and basic laws within the
workplace. It is said that any of the person or entity which performs any sort of work should
ensure that they will not conduct any of the work due to which any innocent party has to suffer.
It can be said that various types of effect has to be seen. Also business can be affected with the
problem in market (Hiller, 2016).
Copyright Law: This law explains about right that is being given over creation of work
within market. Such laws tell that no one can copy anything that is unique in nature and has to be
created in market. It is one of the most important laws that are there to protect a work of an
organization. It is also going to meet with the requirements of law and is going to increase
profitability. If laws are being violated then penalties can be imposed as per it.
Differentiate between legislation, regulations and standards to analyse potential impact upon
business
Legislation: These are that permanent laws that are being formed by following process
within the parliament. Such rules are present in written form and are being there to provide
legality to an organization's working process.

Regulations: These are that kind of rules that is being prepared to make administration
process or working more effective manner. Regulation is to be made keeping in mind policies
formed by government. It is required to be followed.
Standard: Such guidelines are fixed and organizations are required to follow it in order
to protect from any kind of legal issues that may occur in an organization. It is implied in an
organization to provide an base for working in effective manner.
Provide a coherent and critical evaluation of the legal system and law
Legal system of a country is very reliable as it has flexible nature that has been able to
make it relent towards modern law techniques. It is able to promote more opportunities for
growth of an organization from perspective of business. Legal institution is being given authority
of making law. In UK laws has enhanced but despite of this consists of rigidity in providing
justice. Laws in UK are required to be modified in order to provide more easiness in legal system
of UK.
Explain how different types of business organizations are legally formed
Organization of business is that kind of company that is being known for performing various
business functions that are dependent upon requirement of doing business. There are certain
organizations which are based on criteria like small, medium and large scale. Further explanation
has to be done as follows:
 Sole proprietorship: They are that organizations which are being run by an
single person and he is the only one handling all activities of business by his own.
In other words this means that business is being done by single person and all
kinds of profit, loss has to be barred by him (Massey and Denning, 2019)
 Partnership: This is that kind of business that is being run by two or more than
two persons. It is being formed with the common aim of earning profit at huge
margins. There is liability of all partners towards the business run by it. Only for
the purpose of agreement only documentation is required or else no
documentation.
 Limited liability Company: These are that kind of organization which is being
related over the business that is being benefited in terms of tax payment. These
organizations consist of partners that are its owner. Its having hybrid form of
working environment that is where partnership is also done.

 Corporation: In this type of business organization benefit is being provided over
services and products. Investment required is very huge and the process of setting
it up is very long. Such organizations are dealing with various services and
products.
Funds are being raised by an organization through various sources and they are being explained
as follows:
1. Through shares and there issuing.
2. Bonds, debentures can also be used as a source.
3. Fund arising can be done through crowd funding and other.
4. Loans from various private and government financial institutions can be
asked.
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process.
Incorporate Organization: Business organizations of these types are of a corporate
form of an organization that has been running by an individual. Such kind of organizations is
mostly contractual forms or is based on contract. Funding is raised through loan from bank and
other financial institution that can be government also. These organizations are being managed
by directors within an organization. Advantages and disadvantages of these organizations have
been explained as follows:
Advantages:
 It holds rights of perpetual succession that allows a business to continue even after the
death of a person or a partner.
 There is certain major advantage that is being possessed by a person and that is it is
separate legal identity.
 It can be sued which means that case is going to be filed under the name of organization
not directors or owners of it.
Disadvantage:
 Forming process of business is very long and is also time consuming. Such organizations
have to submit lot of documents to gain permit for doing business.

 Another disadvantage is that registration is required to be done by proper dealing with
legal documents and is to be submitted within Companies House for final approval to run
a business organization in legal manner.
Unincorporated Organization: In this type of business organization an individual or
partners has to operate these businesses. It is done with an only motive to earn profit out of the
business that is to be done. These organizations are being benefited only in payment of tax
because they are not required to pay it. Such organization is being funded through taking loan
from friends, relatives or through a trustable source. Sometimes funding becomes very difficult
to be arranged. Management of these organization is being done by the owner whole profit and
loss is being also beard by them (Mitten, Davis, Smith and Shropshire,, 2019) . Advantages and
disadvantage has been explained as follows:
Advantages:
 Financial accounts are being maintained by the owner and all account should be clear.
 In order to set-up business organizations of these types are being involving of lower cost
in investment.
Disadvantage:
 Authentic legal contract is not being form between business organizations because of
lack of time that has been existing.
 Also that various kinds of legal formality and complex process is not involved in it and
funds required is also very less
There is major difference between incorporate and unincorporated business that has been
discussed below and is as follows:
Incorporated Association:
 Also name address has to be given with proper attestation by the officer that is present.
 Memorandum of association is being required with as it is a most important document.
 Shareholders and managers has to give approval over memorandum of association has to
be formed.
 Standard Industrial classification to companies’ house is required to be submitted
Unincorporated Association:
 Objectives are required to be there in an organization.
 Contract should hold validity and legality also.

 Liability is not limited and it is very important to share amount with each other.
Some major advantages and disadvantage of companies over partnership firm are defined below:
Advantages:
 There has to be benefits that have to be generated through perpetual succession.
 This organization is having one more benefit that has to be changed and is very difficult
to be done.
Disadvantage:
 Partnership is not very easy to set-up in an organization.
 Decision making mechanism has to be required over lot of funds and also on the other
side partial decision making is not there.
PART 2
Brief overview of Contract law, employment law, Company law, etc.
Contract law: These are the laws that are being prepared to form an agreement between
both the parties and give it legal stability (Trad and Kalpić,, 2019)
Company law: These are that kind of law which helps in providing stability in the
establishment of business organizations.
Employment law: Such laws are being dealing with rights and duties of business that is
very important to maintain standards of employees at work place.
Salient legal points of each case
Case 1: In this case Gordon is required to get advice over wages of 2107 and claim upon
the wages of the years 2015 and 2106.
Case 2: In this case legal position of service provider and consumer has to be defined
over understanding of lot of elements with contract law.

Case 3: In this case options have to given to avoid compulsory winding up.
Suggest an appropriate legal solution to each of the problems
Case 1: In this case employment law can be used to claim over the salary but not of 2015
and 2106. He can only claim upon 2017 as he has already been in contract to only get
compensation on it.
Case 2: In this case contract law is going to be applied and its elements are going to be
used. Various elements are there in a contract they are offer, acceptance and consideration.
Case 3: In this case compulsory winding up can be solved through debts settlement.
Provide justification for the advice and solution given;
Case 1: Since there has been a valid contract for 2015 to 2016 situation. So only salary
for 2107 is going to be claimed. As he has entered into contract to attain only compensation for
2015 to 2016 salary and as per employment law he is bound to be get the salary since the time he
has started the job.
Case 2: Janet is the offer and Virgin mobile is the accepter this is because elements of
contract are being used in which offer, accepter and legality is there. Under this contract has been
made
Case 3: Winding up can be solved through paying of the debts by making all the payment
(Zuckweiler, 2016). This has to be followed by the organization to get out of the problem of
winding up.
Compare & contrast the effectiveness of these recommendations given in your presentation
The effectiveness of ADR is going to be there in a way that it is going to be helpful in
making out more logical decision. Methods of ADR are arbitration, negotiation and cancellation.
Critically and evaluate the use of the appropriate legal solutions suggested in comparison with
alternative legal advice
Case 1: Negotiation can be used and it is going to be helpful in making parties agree to a
common point. This has to be used to attain a solution in more precise manner.
Case 2: Mediation can be used and it is going to help in setting of a meeting while
making both parties talk to each other. A mediator has to make them agree to an common point.

Case 3: Arbitration has to be used in which an arbitrator is going to be used in which an
arbitrator is going to be hired and judgement given by him is to be followed by both parties.

CONCLUSION
In this file the concept of business law is covered which explains about all kinds of
aspects cover in order to give legality to establish a business organization. In the first part
sources of law, role of government in law making has been covered. Further various
organizations, management and funding is explained. In the end various kinds of legal solutions
is being provided for scenarios.

REFRENCES
Books and journals
Alzola, M., 2017. Character-based business ethics. In The Oxford handbook of virtue.
Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
Davis, L.M. and Geyfman, V., 2017. The Business of Title IX-Using the Law to Improve Gender
Equity in Undergraduate Colleges of Business. JL & Educ..46. p.163.
Deipenbrock, G., 2016. Business Judgment Rule and the Problem of Hindsight Bias-
Observations from a German Company Law, The. Eur. Bus. L. Rev..27. p.197.
Favarel-Garrigues, G., 2019. Digital vigilantism and anti-paedophile activism in Russia.
Between civic involvement in law enforcement, moral policing and business
venture. Global Crime. pp.1-21.
Hiller, J.S., 2016. Healthy Predictions: Questions for Data Analytics in Health Care. Am. Bus.
LJ.53. p.251.
Massey, C.R. and Denning, B.P., 2019. American Constitutional Law: Powers and Liberties.
Wolters Kluwer Law & Business.
Mitten, M.J., Davis, T., Smith, R.K. and Shropshire, K.L., 2019. Sports law and regulation:
Cases, materials, and problems. Wolters Kluwer Law & Business.
Trad, A. and Kalpić, D., 2019. The Business Transformation Framework and its Business
Engineering Law support for (e) transactions. In Advanced Methodologies and
Technologies in Business Operations and Management (pp. 230-246). IGI Global.
Zuckweiler, K.M., Rosacker, K.M. and Hayes, S.K., 2016. Business students’ perceptions of
corporate governance best practices. Corporate Governance.

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