Business Law: Legal System, Legislation, and Implications on Businesses

BUSINESS LAW

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INTRODUCTION
Law basically means all rules and regulations established and enforced by a governing
body. All the business functions will be affected by the certain laws in some or other manner.
Business law also affects every business from its incorporation to its dissolution. Business ethics
is also a term which is concurrently used in this aspect however they both differ in their
meanings and nature. Business ethics refer to the moral concern that occur in a commercial field.
Business ethics could be normative or descriptive control both. The unit begins with the
discussion upon the existing legal system of UK, various sources through which law was
evolved, how the government plays a significant role in law making and how doctrine of
precedent and laws passed by legislature will be applied to the business organisation. The
research will further explain about the implications of various other laws passed by the UK
Parliament which has to complied by the business organisation.
PART 1
1. Explanation of the legal system, different sources of law, the role of government in law-
making and how statutory and common law is applied to businesses.
In United Kingdom the system of Constitutional Monarchy exists. The United Kingdom
is divided into four countries namely England, Wales, Scotland and Northern Ireland. So it is
quite evident that some law applies to one country and some in others. It has been observed that
England and Wales follow a system of common law which involves the following of doctrine of
precedents as well the laws are passed through its legislature. So, a law is established only when
a legislation is passed by the Parliament (Balch and Balabanova, 2017).
The two houses of the UK Parliament are “House of Commons” in which the members
are elected through general election whereas in “House of Lords” the members are appointed.
The sources of law may be characterised into two main categories Primary and Secondary:
Primary Sources: These are the sources that has helped in basic formation of law which
consist of various kinds of sources under it and they are explained as follows:
Legislation: In this the laws that are being created is being formed through following
process and getting Royal assistance over it.
Common Law: This source is very important as it gives judiciary power to make laws by
using the judgements that has been passed in landmark cases.(Begikhani and Gill, 2016).
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Secondary Sources: These sources are generally the legal writings. Various authors try
to interpret the laws through textbooks or commentaries by referring various judgements and
their own understanding of law. This sources includes following things
Journals: Under which articles related to laws are being presented. This helps in making
analysis of law to be done in proper manner.
Books: This is helpful in making understanding of laws that are formed in better way.
Such legal books helps students in studying law as a subject in appropriate manner.
Parliament of UK has been given powers to form laws for which they are required to
follow proper procedure for enacting it. This is based on three reading that is explained as:
First reading: Draft in the form of bill is presented. No discussion takes place over draft
presented.
Second reading: Presented draft is being discussed in proper manner. All points are
being marked out. Also voting is done in order to gain majority.
Committee stage: In committee stage the committee will go through the bill and after that
submit its report suggesting various amendments in the bill.
Third reading: Again the voting will take place and if the bill gets the required number of votes
it will be sent for the approval to the other house where also voting will be done.
Royal Assent: In this sign of monarch is required in order to make bill a permanent law. This
power is been given to him under the Royal Assent Act.
Common law is basically that law which applied on the basis of precedents which means
that judgement in a landmark case can be used as a law in the similar case that occurs in future.
Statutory laws they are considered to be permanent laws that are being used by courts to
give appropriate judgement in a case. These laws can be used as per there applicability in a
particular only(Blackham, 2016).
2. A critical reflection of the legal system using examples to demonstrate strengths and
weaknesses.
UK follows the system which is based upon common law. Due to the dynamic society
there is need of various laws so that the society can be governed in a smooth and efficient
manner. The major strength of the system is the separation of the parliament from judiciary. This
separation has lead to the Independence of Judiciary. As the British Constitution is unwritten &
unmodified it is easy to amend it when needed which makes it a flexible Constitution. The one of
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