Business Law: Legal Systems and Impact on Business Operations

Unit 7 Business Law
Legal Systems and the potential impact of law on
business operations and decision making

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
PART 1............................................................................................................................................4
P1. Identify different sources of law...........................................................................................4
P2 Examine the role of government in law making and how statutory and common law is
applied in the justice of courts....................................................................................................5
M1 Evaluate the effectiveness of the legal systems in terms of recent reforms and
developments..............................................................................................................................6
P3 Using specific examples, illustrate how company, employment and contract law has a
potential impact upon business .................................................................................................6
M2 Analyse the potential impact on business through difference between the legislation,
regulations and standards............................................................................................................8
D1 Provide a coherent and critical evaluation of the legal system and law, with evidence
drawn from a range of different relevant examples to support the judgements. ........................8
PART 2............................................................................................................................................8
P4 Explore how different kinds of business organisations are legally formed ..........................8
P5 Explain how business organisation are managed and funded ...............................................9
M3 Analyse the advantages and disadvantages of the formation of different kinds of business
organisation. .............................................................................................................................10
D2 Critically analyse the formation of different kinds of business organisation......................11
P6 Compare and contrast different sources of legal advice and legal support for the dispute
resolution to make appropriate recommendation to legal solutions. ........................................11
M4 Recommend legal solutions for resolving a range of disputes, using examples to
demonstrate how a party might obtain legal advice and support .............................................12
D3 Critically evaluate the effectiveness of legal solutions, legal advice and legal support for
the dispute resolution. ..............................................................................................................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................15
INTRODUCTION

The legal system of UK is divided into three separate legal systems which are England
and Wales, Scotland and Northern Ireland. The country of United Kingdom has a common law
legal system in order to impose legal obligations on the people of the country. There are four
main sources of law which are case laws, common laws, human rights and EU law. The
operational functioning of an organisation is conducted under the Companies Act, 2006. The
companies have to follow certain financial regulations which includes accounting, payroll, tax,
anti-money laundering regulations, Companies house and HMRC. The business of any
organisation is regulated through various laws such as contract law, employment law and others.
The employment law plays a major role in order to protect the rights and duties of workers
working in an organisation (Akhtar, 2020). This report will cover the legal system of UK in
relation to different sources of law with the role of government in the process of law making. It
will also cover formation of different kinds of business organisation with resolving of disputes
through the procedure of Alternative Dispute Resolution.
TASK
PART 1
P1. Identify different sources of law
A source can be defined as something from which certain thing originates and sources of
law means origin of law. This origin of law can be determined from historical conducts from
documents that helps in analysing the rules, regulations and customs that have existed since
previous or early times.
The different sources of law which are considered as common or general sources of law are
mentioned below:
 Legislation – A declaration of legal rule that have been incorporated by the people of
society with the base of national conscience through a competitive authority, practices
and customs in order to regulate the obligations of law. It is basically a legal rule that is
decided and regulated by a competent authority in order to develop a structural
framework for law (Baillie, 2019). They have generally evolved from customs which
has helped in determining the obligation of law as they are the obligatory legal sources

which helps in having a deep understanding of law. There are two main sources of law
which are Primary and Secondary legislations.
 Judicial precedents – The cases which can be considered as previously decided cases by
the higher authorities are known as Judicial precedents. They are previously decided
cases which have been decided by the superior courts. It is a very important source of law
that helps in interpreting the legal matter with consideration of judicial precedents. It
helps in analysing the matters that require legal interpretation of law with the aid of
previously decided cases. They are the valid sources of law that helps in having a
practical application of law. It is generally based on two factors where firstly it is decided
by the higher authority of judges in order to provide an appropriate interpretation of law
and secondly the evolution of case laws is through a principle which are taken into
consideration for interpretation of law.
 Customs – The customs were considered as the only source of law in the ancient times
and in present times it is these customs through which law is enforced on the people of
the country. The existence of customs have helped in analysing the different perceptions
of law through its ancient approach. They can be considered as an important source of
law as it is made and enacted through the will of people which is greater than the will of
sovereign.
P2 Examine the role of government in law making and how statutory and common law is
applied in the justice of courts
The process of law making is determined through the role of government which helps in
having a deep understanding of the process of law making (Creutzfeldt, 2018). The enactment
and enforcement of law is done through the competitive authority of the parliament. The
formation and creation of law is done through the system of common law that is prevailed in the
country. The legal system of UK is based on the common principle of law. The three main pillars
of the legal system of UK are Executive, Judiciary and the Legislative. The implementation of
authoritative power is determined through these pillars of the parliament.
Statutory law and Common law