Understanding Business Law and Its Impacts on Business

This report provides an overview of business law, including the legal system, different sources of law, and the role of government. It also covers key legislation, regulations, and standards for new businesses, as well as the legal solutions for resolving disputes. The report discusses different types of business organizations and their legal structures, and provides case studies to illustrate legal solutions for resolving disputes. The subject is Business Law, and the course code and college/university are not mentioned.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Legal system along with different sources of law and role of government................................3
Legal system along with strengths and weaknesses....................................................................4
The key legislation, regulations and standards for new business ...............................................4
Understanding of business law...................................................................................................5
PART 2............................................................................................................................................7
The legal solutions in order to resolve the disputes under businesses:.......................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business law refers to that laws which provides complete guidance to the business in terms of
performing the business activities. It determines the legal process for establishing the business
organizations. It also involves drafting, breach of contract, right assignment and penalties in
terms of violation of the agreement. Business law creates the legal guidelines for the businesses.
And it is mandatory to perform all of these guidelines in order to make business secure. These
laws are made in order to maintain the legal environment of the business. This report will
illustrate the concept of business law along with its impacts on the business. The report will also
describe the management of the different organizations in terms of business law. Apart from this,
the report highlights the various problem face by the local businesses and the ways through
which the issues can be sort.
MAIN BODY
PART 1
Legal system along with different sources of law and role of government
Law generally refers to set of rules and regulations which are created by particular
country, government institutions to regulate the actions of the nation's people. The legal system
includes the rules, procedures and organizations by which public and private companies can be
carried out effectively with recommending various laws. It makes the system efficient by
considering rights and responsibilities of an individual. Legal systems are developed in order to
provide orderly means for dealing with various problems facing the members. The sources of
laws constitute with rules that enables any state to govern its territory. (Koppel, 2018).There are
various sources of law are codified laws, judicial precedents, customs, juristic writings, expert
opinions, morality and equity. The government plays vital role in making the laws. As
parliament performs majorly two functions firstly it drafts the legislation and amendments to
laws. Another it examines the draft laws before the parliament prior to adoption. Law-making is
initial process in modern democracies which is the work of legislatures. These are applicable at
the local, regional and national levels makes such laws as are appropriate to different level. The
essential influences on new law creation is the government whom the public makes elected. This
will lead to next general election and political parties who win need to implement the promises
which are made to public.

Statutory law is written and passed by a body of legislature. The main purpose of this law is to
promote justice and prevent from harm or losses. This law vary from regulatory or administrative
laws that are passed by executive agencies and common law. At the time when all laws are
considered collectively known as statutory law. Whereas, common law is less prescriptive and
affects the business operations which are constructed within the country's specific jurisdiction.
The civil law deals with the private rights of individuals such as property, money, housing,
divorce, custody of a child in the event of divorce etc. whereas, criminal laws cases are only
conducted through the criminal court system and deal with offences that are committed against
the society. These laws meet out in varying degrees of punishment with the crime committed.
Legal system along with strengths and weaknesses
Basically, legal systems are set of laws of the particular country and the process of laws
in accordance to the use. The legal system of any states reflects the role and objective of laws of
the development of the society. The formation of common laws is based on the preceding rules
and regulations by the ruling parties. (Mike and Kiss, 2019). On other hand statutory laws are
passed by legislature and government of the country with the acceptance of the laws by the
society. Quality legal and judicial reform depends on a thorough and accurate evaluation of a
country's legal institutions. Conducting a good evaluation of a juridical system is difficult, time-
consuming and expensive.
The major strengths of law is that it provides uniformity and certainty to the administration of
justice. It assures the law's applicability in all relevant cases by identifying the facts as same.
Whereas the weaknesses of legal system is that it is complicated procedure. As different laws are
constructed for different conditions in the society. The common laws are reactive which means
courts make decisions only in the individual cases which are brought before them. They develop
legal principles only in specific situations and treated accordingly.
The key legislation, regulations and standards for new business
Government regulations affects the business structure and decides the geographical
location along with the employees laws and many other things. Their are various types of
legislations that new business needs to follow such as employment laws, consumer laws and
intellectual property laws. The employment laws refers to the structural relationships between

the employees and business entities along with the trade unions and government. Collective
labour law relates to the relationships between employee, employer and union territory. The law
signifies the general rights like about health and safety matters. The right to participate in
decisions will affects their health and safety. The right to refuse the work which affects
employees health and safety. (García-Álvarez, Pineiro-Villaverde and Varela-Candamio, 2018).
The next legislation is the consumer law which the business needs to concern. This act is related
to consumer protection which seeks various rights such as to protect consumers from marketing
of goods which are hazardous to human's life and property. The business needs to inform the
consumers about the quality and quantity of goods offered. It also needs to make aware about the
standards and prices of products to consumer and further the business needs to protect the
consumers from unfair trade practices. However, there are different regulations on new formed
business needs to pay various taxes according to the dealings they are operating. Their is also the
government regulations on businesses that employ workers and independent contractors in the
form of federal and state labour laws.
Understanding of business law
Different laws under the business law
There are different types of business laws and those are:
Contract law- This law includes the agreement between the private parties which is enforced by
the law. The basic requirement for a legal contract is, offer and acceptance by both the parties.
This is mandatory in a business as it provides an assurance about the standard procedure of the
business.
Tort law- It involves the legally wrongs done by the one business entity for harming the other. It
acts as opposition for the wrongful acts in the business. Whether the wrongful act is accidental or
intentional. This law is for that business that has experienced the financial harm. The law is
important in business as it provides the way of defending again the financial loss.
Copyright law- It refers to the legal right of the owner towards their business. The owners have
the complete rights towards their businesses. (Miller, 2021). They can make policies regarding
their business. It helps in protecting the approaches of expressing the ideas under the businesses.
Employment law- This law provides an assurance regarding the safety of the employees in the
business. It protects the exploitation of the employees. The main motive of this law is regulating

the relationship between the employee. Employment law provides safety to the employees. Any
harm done to the employees will be taken as illegal action and the penalties has to be full-fill by
the business.
Different business organizations with different legal structures.
There are different types of business organizations and all of them have a different legal
structures. Here are the examples of the different business organizations:
Sole proprietorships- It is that entity which has been formed by an individual. All the rules and
regulation is performed by that individual only in relation to the business. These firms are not
regulated by any law as this is owned by one single person. The firms are free from the
exploitation of any other party. On the other hand, firms has to face all the loses individually.
Partnership- It is that form of business under which two or more than two parties are combine
in order to form business. The legal of the partnership firm says that each partner is personally
liable for the business debts. In the situation of loss made by one partner, the other partners are
free from bearing the loss. This legal structure saves other partners from bearing the loss. On the
other hand, it becomes difficult for the single partner in bearing the whole loss.
Company- The company has its own separate legal entity and bears its own name and seal.
(Davis, 2021). It can perform activities such as, incurring debts, borrowing money and can own
the property. According to law, the company is completely separated from its owner and the
liability gets protected. The shareholders do not have a risk of losing personal assets.
The management of different organizations in public and private sectors
Limited companies- Public limited companies are managed by the government. On the other
hand the private limited companies are managed by the independent group of the people. For
example: British petroleum company is a public limited company and B&M retail is a private
limited company.
Social enterprises- These enterprises are the private limited companies that works for the
betterment of the society. They have a partnership with the government in order to provide social
services to the society. The funding is managed by both the sectors public and private. For
example: Mutual Ventures limited is the social enterprise in the UK. This organization is
working with the motive of making the society a better place.
Corporation- It is that form of the business under which, the corporation has its separate legal
entity from its owner. In public corporation the main aim of the corporation is to provide social

services. (Kubasek and et.al., 2019). On the other hand, the private corporations focuses on the
making of profit.
Co-operatives- Cooperation is those organizations which works for their customers and helps
them. It works with the aim of increasing the economic interest. Cooperative organization is the
part of both public and private sectors. The cooperative bank is the example of the cooperation
organization in the UK.
PART 2
The legal solutions in order to resolve the disputes under businesses:
In order to understand the concept of legal solution in the business. Here is the legal solution of
three case studies:
Gordon's case study
Under this, the Gordon is able to receive his wages for the year 2017 and not for the year
2015 & 2016 because, due to heavy loss of the firm, the manager signs the contract with the
Gordon in relation of only paying commission for the next three years as the financial stability of
the firm is not good. The contract law under the business law says that the contract refers to the
legal obligation by both the parties. Gordon has accepted the variation of contract. He cannot
claim for the wages of 2015 and 2016. The manager has that agreement under which, they made
an agreement.
In year 2016 the firm earns the profit. The firm is no more facing the financial crisis. The
contract that has ben made between the manager and Gordon was for only that particular period
under which, the organization was facing loss. Now, the firm has good amount of profit
therefore, Gordon can claim the wages for the year 2017 under employment law. This law helps
in ensuring that the business is treating their employees in fair manner. Otherwise, the business
has to go through penalties. The employment law provides full right to Gordon in order to have
his wages from the firm at the time of profit gaining. For understanding this with the clearance
here is the explanation of contract law and employment law:
The contract law shapes the guidelines of the business for both the parties. The contract
comes into an existence, when both the parties get agree. Business face many situations under
which the variation in contract takes place. These variations are done by the mutual

understanding of both the parties. The party that denies the policies and decision made under the
contract in future has to bear loss. (Danau, 2019). The contract works as a legal proof between
both the parties. This law in important in business as it works as a legal proof between the
parties. On the other hand, employment law under business law protects the employees from the
biasness and exploitation. Employees who face exploitation in the organization have right to take
a legal action with the help of employment law. This law is mandatory in the business as it helps
in sorting out the issues of the employees.
Janet & virgin media's case study
Different elements of the contract law that helps in deciding the legal position of both the parties
are:
Offer- This includes the terms and condition of the contract. For initiating a contract, mentioning
the terms and conditions are the first requirement.
Acceptance- After the offer has ben made the acceptance is required by the second party. The
acceptance is given by the mails. (Navas-Loro, Satoh and Rodríguez-Doncel, 2018). Afterwards,
a clear statement has been made in relation of all the terms and conditions are accepted by both
the parties.
Meeting of mind- it involves that stage when both the parties has recognized the contracts and
enters into the obligation.
Consideration- This element says that there is an exchange of value must take place between
both the parties. For example: services are provided to the customer in the exchange of money.
Capacity- This ensures that both the parties are fully capable of entering into the contract. The
arising of confusion in the mind of the any party results in less alerting of mind in forming the
contract.
Legality- The contract must be legal. The parties must show their legal intension while forming
the contract.
In the case of Janet and virgin media there was no written agreement has been made in
order to form the contract. Instead of this, a verbal agreement is formed by expressing the terms
and conditions verbally. The legal position defines the legal justification by the parties.
Legal position of the virgin media and Janet

The company has already stated that there was no switchboard to connect the telephone line and
told Janet to wait. But, in return the company did not respond to the customer. After several calls
and emails by the customer the engineer sets the phone line after three weeks. And the fees has
been charged from the consumer for that entire three weeks in which the user doest not used the
service of the company. Here, the consideration element of the contract law is missing. That
element says that, there must be an exchange take place between the parties. But, the customer
did not experience the service and has to pay the charges in return. In the basis of this, the
company is in fault.
Black horse limited case study
The various options that can be approached by the black horse limited in order to avoid the
winding up of the company are:
Make an informal agreement- The company does not in a position to pay the debt then,
informal agreement can be made between the parties. Under this, the company pays to the
creditor after a certain period of-time. (Benoliel, 2021). The time has been mentioned under the
agreement. This has been considered agreement as this is made on the mutual understanding of
the parties besides the formal process.
Request an adjournment- The company can pay debts by selling the assets. Apart from this, the
firm can take help from the third party in order to pay debt and save the company.
CVA- Under this, the company prepares an agreement in order to pay the debt to the creditors at
the time of insolvency. The acceptance of the creditor helps in the continuation in the trading of
the company.
The company can use these elements in order to avoid the process of winding up.
Repaying the debt is the hard task for the company as the firm is not in a good position. Making
an informal agreement results in providing time to the firm. In that time, the firm can allocates
the fund and can pay the debts. On the other hand, requesting an adjournment may provide
immense help to the firm. The company can take help from third party and after some time the
company has to pay to that third party. Preparing the company voluntary arrangements helps the
firm to set the plan for paying the debt. Along with this the company can continue its activities.
In my opinion, the company should approach the CVA element in order to avoid the
winding up of the firm. The making of CVA enables the firm for setting up the plan in terms of

paying debt and along with this, the firm can continue its business operations. The firm does not
have to face more loss in this situation as the trading process will be in the continuation form.
Here is the description of the CVA that is efficient enough to proof that “why CVA helps the
firm in avoiding the winding up”.
The company voluntary arrangement helps in negotiating with those creditors who are
insecure. It helps in providing time to the firm in order to pay debt. This agreement last for two
to five tears. The time period is mainly depends upon the situation of the company. At the time
of insolvency the time is given to the firm is generally more. (Gojani and Curri, 2021). The
beneficial point of the CVA is that the firm can operated its activities. It saves the firm from the
process of the winding up. It contains the complete plan regarding the repayment. Therefore, it
becomes easy for the firm to perform the task in order to make payment.
CONCLUSION
From the above report, it can be concluded that laws and legislation are made for the society's
benefits and this make the awareness about the actions which are not acceptable in the country.
As laws serves the uniformity in all business and protects against any fraud, biasness and
dishonest behaviours. It covers all aspects of human lives including protection of health and
safety of people at work and those affected by work performances. Common law is more
flexible, faster and responsive than parliamentary law. Legal system plays important role by
serving uniformity among different groups, communities and people. The report has described
the nature of the legal system along with the potential impact of the law in the business. It further

has discussed the different types of business organizations including sole proprietorship, Hindu
undivided family, companies etc. And at the end certain recommendations of legal solutions are
provided to resolve disputes in business areas.

REFERENCES
Books and Journals
Benoliel, U., 2021. Formalism Versus Anti-Formalism in Contract Law: An Empirical
Study. Available at SSRN 3784626.
Danau, D., 2019. Contract law and Contract theory. A survey and some considerations (No.
2019-04). Center for Research in Economics and Management (CREM), University of
Rennes 1, University of Caen and CNRS.
Davis, K.E., 2021. Contract Law and Inequality.
García-Álvarez, M.T., Pineiro-Villaverde, G. and Varela-Candamio, L., 2018, March. Proposal
of a knowledge management model and virtual educational environment in the degree
of law-business. In World Conference on Information Systems and Technologies (pp.
1275-1286). Springer, Cham.
Gojani, S. and Curri, G., 2021. Contract for International Sale of Goods-CISG Its Importance
and Applicability. Technium Soc. Sci. J.. 21. p.527.
Koppel, R., 2018. Uses of the Legal System that Attenuate Patient Safety. DePaul L. Rev.. 68.
p.273.
Kubasek, N.K., and et.al., 2019. Dynamic business law: The essentials (pp. 28-50). McGraw-Hill
Education.
Mike, K. and Kiss, G., 2019. Combining formal and informal contract enforcement in a
developed legal system: a latent class approach. Journal of Institutional
Economics. 15(3). pp.521-537.
Miller, R.L., 2021. Business Law Today, the Essentials: Text and Summarized Cases. Cengage
learning.
Navas-Loro, M., Satoh, K. and Rodríguez-Doncel, V., 2018, November. Contractframes:
Bridging the gap between natural language and logics in contract law. In JSAI
International Symposium on Artificial Intelligence (pp. 101-114). Springer, Cham.