Understanding Business Law and its Impact on Organizations

Business law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
Different sources of laws.............................................................................................................3
Constitute of legal system............................................................................................................3
Division and key terminologies of legal system..........................................................................4
Difference between civil and criminal laws................................................................................4
Role of government body in making law and justice system......................................................5
Organisation of judiciary.............................................................................................................5
LO2..................................................................................................................................................5
Impact of different legislative law on business...........................................................................5
LO 3.................................................................................................................................................7
The way different types of organisation legally formed..............................................................7
Different types of organisation and their legal structure.............................................................7
Classification of firm...................................................................................................................8
Various registration requirements for starting a business............................................................9
Management of firm....................................................................................................................9
Different types of laws in formulation, raising capital and liquidation of firm...........................9
LO4................................................................................................................................................10
Legal solution for resolving range of disputes..........................................................................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Business law refers to various rules and regulation that are made by government about
the way enterprise needed to be established and operates in competitive market. Organisation
needs to abide to all laws and legislation in order to protect itself from penalty and fines at the
same time to retained strong brand image. There are various sources of generation of business
laws which have to be implemented by organisation to promote its smooth operation in
competitive market condition. This report discusses several key areas that impact business
strategy, operation and objectives in any industry. It also explained about natures of legal
systems and different types of business organisation that are formed legally such as sole trader,
partner or registered firm. At last the report analysed three different case studies on basis of legal
laws that are made by government to reduce chance of conflict or dispute among customers and
company.
MAIN BODY
LO1
Different sources of laws
There are various legal laws that are made by government which needed to be followed
by organisation while operating its different function so that no harm can be caused to other
individual living in society.
Constitute of legal system
Legal system refers to several procedures that are made to enforced laws such as
common law, civil law and religious law. It helps in define roles and responsibilities of each
individual so that several disputes in future circumstance can be easily resolved. It can be stated
that both Wales and England both operates common law system that is mostly established in
order to pass legislation by parliament that is House of common, Monarch and House of Lords.
Judiciary is mainly responsible for controlling case law and court system separately from
parliament (Lifland, 2017). Therefore four main sources of laws in UK (England and Wales) can
be illustrated as follows:
Domestic legislation: There are two types of legislation that is primary and secondary
legislation. In primary after lot of debate and approval by parliament, bills sponsored by
3

government than it becomes “Acts” which is commonly known as statutes. On the other hand in
secondary legislation government have power to issue regulation such as statutory instrument
without needs for issue as debated by parliament.
EU law and ECHR: It is international law that was incorporated by Human right act 1998 into
domestic legislation therefore court need to apply laws as per convention in possible situation.
Therefore, it is mainly for parliament rather than court to changes its laws (Durkee, 2016).
Common law: In ancient years there was a common laws that was applied to whole country so
it have many defects in systems therefore people starting beginning petition against king in 13th
and 14th century. Therefore a single system have been created named Judicature Acts 1873-75
that is used to administrator both common law and equity. But rules and content of both laws
that is common and equality remained different.
There are four main purposes of laws in UK that is resolving disputes, maintaining order
and harmony, protecting right and liberties of various individuals that live in specific country.
Division and key terminologies of legal system
There are several key terminologies that are used in legal system which can be illustrated
below:
Court structure: It refers to various level of courts that are operating in particular nation and
their power to take accurate and correct decision for benefits of individuals.
Act of parliament: It started as a bill which is further passed to both houses of parliament in
order to become a statutory act that is applied for whole country that is UK.
Appellate Jurisdiction: It is another term used in legal system that means court have power to
review decision taken by lower court so that no injustices can be caused to other person (Davies,
2020).
Civil procedure rules: It includes set of rules or procedure that are governing civil courts in
Wales and England for only cases that are commenced after 26 April 1999.
Difference between civil and criminal laws
Both laws are different to each others such as civil law always suggested various
remedies or solution that can be effective to resolve dispute like compensate. On the other hand
in criminal laws individual get punished for conducting offences. Civil cases are filled by private
parties whereas Criminal cases are filled by government or states thus motive of criminal case is
4