Business Law: Sources, Role of Government, Impact on Business, Types of Business Organizations, Dispute Resolution

This document provides an overview of business law, including the different sources of law, the role of government in law making, the impact of business law on organizations, the formation of different types of business organizations, and legal solutions for resolving disputes. It covers topics such as company law, contract law, employment law, and dispute resolution methods like mediation, conciliation, and arbitration.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Explain different sources of law.............................................................................................3
P2 Explain the role of government in law making and how statutory and common law is
applied in the justice courts.........................................................................................................4
LO2..................................................................................................................................................5
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business....................................................................................................5
LO3..................................................................................................................................................6
P4 Explore how different types of business organisations are legally formed............................6
P5 Explain how business organisations are managed and funded...............................................7
LO4..................................................................................................................................................7
P6 Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support.................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law is the law which has been commenced for the purpose of dealing within
commercial sector. This law covers wider aspects as there are number of sub-branches are their
such as company law, contract law, consumer law and many more. In context of business sector,
different laws are applicable on different types of organisation which means that each of the
decision which are being taken by entity must be taken only after considering its positive and
negative side. In reference to the file, different types of legal advices are required to be given
which will be provided by Nelson Solicitors. The topics which will be covered in in the file will
be relatable to UK law with its main sources, impact of multiple law and types of entity. Legal
recommendation will be provided to disputed party in one of the case.
LO1
P1 Explain different sources of law.
Any of the nation can perform better if they have strong laws and regulation and if in any
of the condition any of the nation fails to do so they several problem arises. For making effective
law and regulation, government requires multiple source which can be helpful in commencing
law and in the similar way UK is also one of the nation which focuses on making strong law. The
number of sources of law which is helping UK are:
Act of Parliament: This is among the source which is commencing law on regular basis
for UK. The base of commencing law in Act of Parliament is very much crucial because member
of parliament takes part in it which is crucial in it. There is strict liability in it which makes
difficult for any person who breaches the laws and regulation. In order to approve the bill, there
is a requirement of Queen’s approval.
Case laws: In context of UK, this source of commencing law has been very much
effective as it certainly provides the way that any of the decision needs to be taken so that
remedies can be imposed upon defaulter (Gomtsian, 2016). The judiciary body with higher
authority gets the power to form laws which are not mentioned in order sources for declaring
result in the case.
European Union law: Before Brexit, this was the main sources for UK because of the
number of law which has been commenced by it. In commencing law for UK, EU law has

always taken activity participation and it certainly has helped in improving the overall condition
of laws and allowed to enhance the economy of a nation.
P2 Explain the role of government in law making and how statutory and common law is applied
in the justice courts.
In any of the nation, ruling government has the important role because they are the one who
needs to guide local public that how they need to work. By looking at all of this requirement, UK
has given a huge responsibility to government where they need to take active participation in
forming the law. The main agenda of involving ruling government in making law is just to
ensure that better policies can be formed which can be result oriented. The role of government
has been clarified below in detail.
The whole concept starts where MPs draft a bill with Parliament House. Then, the process of
first reading starts in which members has to take part and requires to discuss that how they can
give best title to the bill. In second reading, members have to ensure that bill is favourable for
further discussion and it will not create any of the issue for any person (Nard, 2019). When both
of this steps get completed then the member transfers it for next step which is committee stage in
which members has the huge responsibility. In this it becomes necessary for members to check
whether points mentioned within bill are result oriented or changes will be more effective. If
changes need to be done, then bill is transferred to report stage who check those points which are
marked by committee stage and starts to work for making changes. After making all of the
changes, bill is given for Third reading where members are responsible for conducting voting
process. In this whole process, voting needs to be in favour for transferring the bill to House of
Lords, where members also have to conduct the whole process as a part of cross verification.
Finally, peer members transfer the bill for obtaining the royal assent from Crowned head.
How statutory and common law is applied in the justice courts.
Statutory and common law plays the important role within justice court because it the base
for any of the judges to declare fair judgement in the case. It is very clear that statutory laws are
those laws which are commenced by Parliament and for applying this judges needs to verify the
situation with case law and according to that judgement needs to be declared (Hjelmeng and
Soreide, 2016). But, in the case of common law, job is quite difficult as it is said that for

applying common law, judges need to pass new law as per the situation of the case and in
accordance to that decision is needed to be declared within the case.
LO2
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business.
Laws has its own impact but it is just the matter of time where person needs to
understand that which types of law have what types of effect upon the entity. The one thing
which is very clear in law is that following proper guidelines will give favourable result but at
the same time if person do not follow it then negative result will be obtained in it. Discussion on
some of the law has been mentioned which will allow to determine about impact of law upon
business organisation.
 Company law: The most important law for any of the business entity which guides that
how any of the business activity needs to be conducted. Without following the guidelines
of company law, it is almost impossible for entity to accomplish their goals and target.
The impact of company law simply says that there are lots of guidelines which is to be
considered but at the same time those guidelines simply enhances the overall expenses
due to which profit ratio decreases (Sprague, 2019).
 Contract law: The law which governs with all of the agreement which are formed
legally is knowns as contract law. Contract law is very much important in current
scenario where maximum number of cases can be seen which is related to fraud and
breach of contract. The impact of contract is positive for business organisation as it will
force contracted party to compete their part of work even that also on specific given time
period.
 Employment law: It is also the important law in context of business organisation
because it guides that relation is to be maintained between employer and employee. It is
said that company should be able to work in that respective manner so where they will be
able to maintain healthy relation with their employees. The positive side of employment
law for business organisation is that it will guide that how any employee can give their
best within the entity so that goals can be accomplished. Also, it will allow enforce

employees to complete their assigned work and if they fails then legal charges can be
imposed upon entity.
LO3
P4 Explore how different types of business organisations are legally formed.
Organisation can be explained as the entity which works with the motive to earn profit in specific
time period. Here, different types of entity can be seen where nature of those organisation are
also different so which makes important for organisation to complete given responsibility for
attaining the targets. Listing of different types of entity has been done where it will also explain
who it can be legally formed.
 Sole Traders: This types of organisation are small where area captured for performing
business activity is also limited. The thing which needs to be understand that in any of the
situation involvement of outsider should not be seen within this types of entity as it is
against the law as it business activity must be conducted by investor himself or herself
(Ricks, 2017). In order to start any of the sole trader in UK some of the documentation
work must be completed such as National Insurance is necessary along with it HMRC
(HM Revenue & Customs) is also required for operating any of the sole trader.
 Partnership firm: The business entity where roles and support is required of more than
two but restricts up to 20 is known as partnership firm. This types of business are very
much crucial because performing any of the business activity is quite easy in it as
compared to other form of business. Here role of deed is huge because all of the decisions
are taken on the basis of prepared deed. For the purpose of incorporating any of the
partnership firm, it needs to understand that partners must obtain HMRC including the
documents like partnership deed. Both of this document can allow the organisation to
conduct business activity.
 Corporation: Businesses which are performed at greater platform where main motive is
just to generate profit is known as corporation. In this types of business, role of Directors
and shareholder increases because mutual understanding is needed for making any of the
business decision. Even this types of organisation gets the right to perform their business
activity at international level as well which is very much crucial for enhancing the overall
profit percentage (Hamid, 2019). There are lengthy guidelines which is to be followed if

members want to incorporate any of the corporation. The first thing which is mandatory
to be done while starting any of the corporation is name with address followed with
Memorandum of Association and Article of Association. Both of this documents
certainly helps business organisation to grow their business. Also, director and
shareholders plays the necessary role so that incorporation process can be conducted
successfully. At the end, for having registration, there is the requirement of Companies
House where documents need to be deposited.
P5 Explain how business organisations are managed and funded.
Incorporating the business is only on the way through which targets and goals can be
accomplished. The most important thing which needs to be considered is that how company can
manage its affair and fund which is important. Some of organisation has been listed below along
within their way of managing and funding.
Sole Traders: The ground of performing business is small so huge capital is not required in
it so for managing additional fund investor can include their own capital into business and credit
card is the suitable option which can certainly allow to accomplish the goal.
Partnership Firm: In order to manage day to day transaction, it is necessary for business to
appoint authorised partners who can take the charge for managing business activity. The thing
which is important is that how organisation can manage their fund and for that company can take
the help of additional investments from partners and secondly they can take the help of credit
card and Financial institution for raising fund (McCormack, 2017).
Corporation: This types of business has number of work which is to be performed and for
that it is important for them to ensure that they have manager, directors, shareholders who can
take responsibility for managing the work of a company. The sources which are available for
raising fund are shares, debentures, loan form FI, banks and government agencies as well.
LO4
P6 Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support.
Alternative Dispute Resolution is the process which is the most popular source through
which disputes can be resolved even without following any of the judicial proceeding. It needs to

be understand that the process which is followed by in ADR process is quite simply and even
result oriented. The motive behind allowing ADR process to resolve any of the issues is just to
reduce overall burden from court which is very much important in current scenario. There are
different types of method in ADR which is used by companies for resolving the issues and those
process has been explained below:
Mediation: The easiest process among whole ADR process is mediation. In this, mediator is
appointed where his role is to understand the situation of case through both parties and in
accordance to that best possible solution must be provided to the client (Faulconbridge, 2019).
The solution is just the form of suggestion where disputed party has to decide whether they will
go for that process or not.
Conciliation: It is as similar as mediation but motive in this form of process is that how
disputed parties can come closure to the contract terms for resolving the problem. In this
respective process, conciliator takes the responsibility for resolving the problem which is
necessary within the whole process.
Arbitration: Here, panel is required in odd number who can understand the situation for
declaring their result. This process is complex as compared to other one where approval from
both parties is also require so that dispute can be resolved. Once decision is declared, order must
be followed by disputed parties (Rodrigues, 2018).
Recommendation: It will be important for Susan to take the help of Arbitration for
resolving their issues with Start Up Pty Ltd. Arbitration process can allow them to resolve their
issues and it will provide them the way that how they can make payment of the work done by
Susan which is related to the development of application.
CONCLUSION
The discussion in above file shows the importance of business law and how it helps in
making great decision which can be in the favour of a company. Although, company operates at
a great platform but the most important thing for them is to remember that how they can apply
relevant law so that unnecessary penalty cannot be imposed upon organisation. The sources of
UK law have allowed UK to maintain their economy and has reduced criminal activity from the
nation. Finally, different types of organisation face different issues but they need to understand

that all of the issues cannot be solved with the help of court proceeding as it is one of the lengthy
process so for alternate option ADR can be the best possible solution.
REFERENCES
Books & Journals
Gomtsian, S., 2016. Private ordering of exit in limited liability companies: theory and evidence
from business organization contracts. Am. Bus. LJ, 53, p.677.
Nard, C. A., 2019. The law of patents. Aspen Publishers.
Hjelmeng, E. and Soreide, T., 2016. Bribes, crimes and law enforcement. The European
Business Law Review, Forthcoming.
Sprague, R., 2019. Using the ABC Test to Classify Workers: End of the Platform-Based
Business Model or Status Quo Ante?. Wm. & Mary Bus. L. Rev., 11, p.733.
Ricks, M., 2017. Organizational law as commitment device. Vand. L. Rev., 70, p.1303.
Hamid, F. Z., 2019. Proceedings of the 1st International Coference on Business, Law and
Pedagogy. The Efficacy of Boarding System University in Producing Competent
Graduates for the Era of Industry 4.0, 1(1), pp.1-8.
McCormack, G., 2017. Business restructuring law in Europe: making a fresh start. Journal of
Corporate Law Studies, 17(1), pp.167-202.
Faulconbridge, J. R., 2019. Business services and the financing of global production networks:
the case of global law firms in Southeast Asia. Journal of Economic Geography, 19(4),
pp.897-919.
Rodrigues, U. R., 2018. Law and the Blockchain. Iowa L. Rev., 104, p.679.