Business Law: Sources, Role of Government, and Impact on Business

This report discusses the sources of law, the role of government in law making, and the impact of contract law, company law, and employment laws on businesses. It also provides legal solutions for dispute resolution and alternative dispute resolution methods. The report also covers different types of legally formed business organizations and their management and funding. The subject is Business Law and the course code is Unit 7. The report is relevant for students studying Business Law in any college or university.

UNIT 7: BUSINESS
LAW

Table of Contents
PART-1............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Different sources of law and role of government in law making:..........................................3
P2 role of government in law making along with statutory and common laws, their application
in justice courts:...........................................................................................................................4
P3 Impact of contract law, company law, employment laws on business:..................................5
CONCLUSION................................................................................................................................6
PART- 2...........................................................................................................................................7
INTRODUCTION...........................................................................................................................7
MAIN BODY...................................................................................................................................7
Employment law..........................................................................................................................7
Different types of organization legally formed with managed and funded.................................8
Business organization managed and funded................................................................................9
Legal solution to each case problems with justification and alternative resolution: ................10
CASE 1......................................................................................................................................10
CASE 2......................................................................................................................................11
CASE 3 .....................................................................................................................................12
RECOMMENDATION.................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

PART-1
INTRODUCTION
Business laws refer to all those legislations which are laid down in order to govern
businesses in legal manner (Goto, 2018) The report would be discussing different sources of law,
role of government in making it. Then legal system in term of most recent reforms would be
evaluated. At the end a critical evaluation of legal system and law along with some evidence
would be presented in order to bring deeper understanding of business law.
MAIN BODY
P1 Different sources of law and role of government in law making:
Legal system can be defined as a system which is installed to bring order in various
practises take place in certain nation. The main purpose of legal system is to eradicate all illegal
practises which may impact interests of different stakeholders in adverse manner. There are
number of sources of law which are driving the notions and convictions in attempt to fabricate
laws.
European union law, has been considered one of the biggest source since the nation has been a
part of EU for so long. It was behind the law making of UK. The legitimation of EU somehow
paved the way for legislation of UK to fabricate the laws aligning with them.
European conventions are another factors. Since UK laws are supposed to be the followers of
EU conventions. There have been number of conventions took place such as conventions on
human rights so it becomes essential for UK to make their laws aligning with them. Like The
consumer Rights Act 2015 is heavily driven by it (Lee, 2017)
Case laws, since the business laws in the nation are having their great and quite long history so it
would be a fair judgement saying that Case laws have give substantial shape to the national
business laws. Case laws are the judgements or guidance driven by some superiors or
predecessors.
Values of the nation as also very much important driver. The biggest factor is the
inclination of a nation. In UK the law making is being carried out by their government which is
federal in nature so it is inevitable for them to eradicate the impact of culture. In UK the business
culture has always been very much professional so they are obliged to have some additions in
laws driven by their culture.

P2 role of government in law making along with statutory and common laws, their application in
justice courts:
UK is having a parliamentary system so the role of government in making law is very
much high. It goes from different stages such as Drafting the bill, discussing it, approval by both
houses, permitted by monarch then if needed some amendments would be imparted.
 The government is the only party which introduces bill in parliament. For instance-
companies act 2006 was firstly introduced in the parliament (Spotorno, 2018)
 Then the bill is discussed by different leaders in order to make comprehensive changes.
Range of parliamentary meetings are held for fulfilment of the aim.
 Then bill is passed form both houses and extended to the monarchy for their final
permission.
 If any changes are needed then amendments are carried out for instance- the company act
1985 was surpassed by Companies act 2006.
 if there is any issue then there is a court structure which consists queen's bench, chancery
division, tribunals where the issues can be raised.
Effectiveness of legal systems in term of recent reforms and some developments:
For making the legal system effective there are range of reforms made in last couple of
years. Specifically after Brexit. The UK government is prone to replace all EU exemptions so
can bring better competitiveness in the field (Yidana, 2021)
Some changes were made in order to reform the present competition laws of UK. In may
2022 these changes were imparted so can hike the final outcomes. Earlier there were some
“Vertical Agreements” it was impacting the business so for making local business thrived these
changes were imparted.
“Removal of retail parity obligation” was another great change instilled in last couple
of years. It was intended to fetch better practises in term of indirect sales channels. There some
legal issues which were hindering the way of free trade so this change has made great impact.
Some changes were also made in VABEO, Vertical Agreements Blocks Exemption
Regulation. It was expired in the year 2022. so the changes were intended to bring higher level of
free trade practise (Sun, 2021)
Companies act 2006 which surpassed companies act 1985 can be seen as one of the most
affluent change or reform in the business low related practises in UK. The nation had need to

bring some paradigm shifts so it paved the way forward. Now dismissal can be done but a legal
process is supposed to be followed by the organization. Moreover, due to new employment laws
not it is not possible to carry out business practise with discriminatory policies.
Both statutory and common laws are helping to bring justice to the candidates. Statutory
laws are the laws which are made by proper process of legitimation such as companies act,
employment act, customer rights act etc. at the same time, common laws are the laws, which are
made by the rulings of judges. Now making sure health and safety the laws are accentuating on
it.(Cejnar and Duke, 2018)
It is not always possible to protect rights of all stakeholders and giving justice to all of
them, in such predicaments' role of common laws comes up with great power. For example- after
Brexit due to drastic changes some problems took place and these were dealt by state using
common laws.
The best example of common law is the legal actions taken to protect product liability.
Since earlier there were no such systems defining liability of product. Now tribunals are quite
clear with their legal stand when it comes to product liability so can make sure rights of
customers. It is somehow obliging businesses to be more inclined to their customers and
burdening them with additional cost too (Wronka, 2021)
So on the basis of the discussion above it would be fair enough to articulate that these
laws are helping government to fetch justice to all parties.
P3 Impact of contract law, company law, employment laws on business:
With the time, the business models are getting changed. Government is making its best
efforts to bring clarity and transform in the legal practise so can ensure better management in the
nation. With this respect some great changes were made in the legal system pertaining to contract
lows. The main aim was to determine role and responsibilities of employer and employees.
For example in UK at present Contract act 1990 is applicable which is there to ensure
security of rights of both employees and employers. With this respect, some rights are secured
such as- employees are having right to ensure their protection on workplace, they may ask for
better safety tools, they must be given challenge or chance to put their side forward, they may
raise their voice against any type of injustice (Craig, and De Búrca, 2020)
Employers are also having rights granted by the law, they can deduct salary for any
unpaid leave, termination is in their jurisdiction, they are entitled for making changes in

operational rules but aligning with some core notions of the law. These all rights are granted by
the law so can bring order in overall business practises.
For instance- Consumer protection act 2015 of UK is discussing a lot about fair business
practises so the main intention of this law is to make sure all rights of employees in order to
uphold their interests in the business practise. The focus is still on faster dispute resolution and
extending it to all of them.
This legal system is having its great impact on the business since now organization are
supposed to follow all legal notions to the fullest extent so can eradicate any malicious practise
which may affect rights of customers. Over the time, it was felt that the modern businesses are
somehow working to hike their profits besides keeping rights of customers alive.
Employment laws are getting tougher. The employment rights act 1996 is now getting
new shape where some key changes are made in it. So can enshrine the rights of employees. This
is somehow impacting organizational performance. But on the other hands, it is also being
experienced that the modern business are more likely to abide with it. And they are taking
advantage in term of making a good ethical image (Herlin-Karnell, 2017) This act is invigilating
the rights of employees and practises of organizations so can play the role of whistle-blower
when it comes to protection of their rights.
CONCLUSION
Form the report above it can be summarized that the role of government is quite intensive
when it comes to law making due to federal structure of the nation. The report has presented
great understanding pertaining to business laws and range of statutory, common laws, the way
they were impacting business practises. At the end of the report some examples and evidence
were also presented in order to present deeper insights of the business laws.

PART- 2
INTRODUCTION
The legal solution for dispute resolution is referred as the solve the problem issues which
face by company with taken action according to the employment act and contract act. alternative
dispute resolution is referred as find the other ways to solve issues with civil case such as
settlement conference, meditation, arbitration and neutral evaluation. This report will discuss the
employment law and its application as well as discuss the legal formation with different types of
business organization. This report will also elaborate the legal solution for the dispute resolution
with justification and also provide the alternative dispute resolution as well as recommendation
for give solutions.
MAIN BODY
Employment law
All companies use the sort of employment laws. it is the area of law that assess the
governs the employees and employers relationship. if company have various employees then the
company need to use the employment law within the organization (Sternlight, 2019).
Employment laws includes the various things such as family and medical leaves, minimum
wages, employee benefits, labor relations, workers compensation, labor relations, social security,
occupational safety and security, etc. UK's employment law make sure that employees and
employers are protected. Providing holidays, pays, legislation on dismissal and many more, this
law are applied for protect the workers right. It is the area of legal systems because it involves
the employment relationship with process and policies. It also includes the unfair dismissal such
as whistle-blowing, raise health and safety issues, legal rights, maternity or paternity leaves.
There are laws on employment legislation such as
 Employment law 1996: this law is for older labor and it covers he rights of employees in
condition such as unfair dismissal, maternity or paternity leave, dismissal.
 Employment relation act 1999: these laws establish the various numbers o rights at
work for employees, intraindustry actions, derecogniton, trade union recognition.
 Part time workers act 2000: this labour law measure that needs that employers give
employees on part-time contacts that must give comparable treat to other employees who
work on full time contracts because both do same job.

 National minimal wages act 1998: This law applied on the whole employees and
employers of United Kingdom (Galvin, 2019). The government of UK regularly reviews
it in line with the inflammation.
 The paternal and maternity leave act 1999: this regulation is rights of employees for
time off work according to the statutory legislation.
 Equality act 2010: This act helps in prevent the discrimination in workplace and
recruitment process of employees. This act for employees to make a suitable
arrangements to accommodate in workplace with their protect characteristics and it
cannot be used as a reason in workplace decision.
 Transfer of undertaking 2006: This is protection of employment regulations and
protection of existing workers rights
 Agency workers regulations 2010: It helps in prevent those employees who work with
employment agencies (Javed, 2020). Treat employees in working times, equally in-pay as
compare to those who work same job and full time.
There are three employment status in employment law such as worker have a contract services,
self-employed as owners or contractors, employees have an employment contract.
Different types of organization legally formed with managed and funded
In business organization, there are two categories that is incorporated and corporate
commerce. Incorporated business is different for cooperation and unincorporated business is not
separate and start with low cost unincorporated business includes the sole proprietorship and
partnership.
 Sole proprietorship:
 This business is owner by one person and it is accountable for day to day
responsibilities. This business is related when there is low risk in market and it also
depends on of owner decision (Schreieck, Wiesche and Krcmar, 2022).
 Partnership:
 This company formed written and verbally between to companies and it is listed
company. This types of business divide in two parts such as general partnership and
limited partnership. The limited partnership in business is formed with legal and formal
agreement. The partnership goes under the partnership act, 1890.
 Company:

According to business law, this type of organization is regulated under the companies cat
2006. In this real owner of business are shareholders follow the values of shareholdings. This
types of company have the authorities to enter in types of contract for purchasing and selling.
This company is categorized in various forms such as public, private, unlimited and limited
company. Public limited company is owned by governments and share ideas in stock exchange,
deposit of public, etc. limited company have limited liabilities for its owner and profit
distribution.
Furthermore, it is important for business laws although formation, because its is
measured by the law of states in which business organization is formed.
Business organization managed and funded
Sole proprietorship:
There are no requirements to register company with governments. This business can get finance
from friends, relatives, loans from bank, etc.
Benefits:
 starting cost are low and there are no requirements of government registration.
 Company have maximum privacy.
Drawbacks:
 raise capital capacity is limited.
 There is unlimited liability for debts.
Partnership:
Partnership business can get finance form retained earning, working capitals, bank loans,
business assets, etc.
Benefits:
 company have the limited external regulation.
 Company can also change their legal structure with circumstances.
 Partnership business also have the grate borrowing capacity.
Drawbacks:
 Liability of partner for debt is unlimited.
 Every partner is liable for the actions by other partners.
Company:

Private company are this company who are not sell and buy in stock exchange. unlimited
company is set up private company where shareholders have the accountability towards the
commercial debts. Company can take funds from retained earnings, bank loans, debt and equity
shares, etc.
Benefits:
 There are limits of owner legal responsibilities.
 Taxation are also favourable.
 Ownership can transfer by selling share to other party.
Drawbacks:
 reporting requirement are complex.
 Company financial affairs are public.
 Business profit distributed to shareholders.
Legal solution to each case problems with justification and alternative resolution:
CASE 1
The issues are Gordon can adopt his wages for 2017 and Gordon can claim of his wages in the
year of 2015-16.
In the context of law, as case study Gordon adjusted his wages of 2015-16 due to the
financial crisis. when market rises business must have payments to the employs. This case is
defining the act of protection of the wages and provision of the limit on the amount. It is
determination of wages by the references to the shortage.
As per the case study, business is facing the financial condition crisis. The business
manage has asked workers to note take the annual salary as well as they will pay the commission
payment for the employment to worker (Pistone and de Goede, 2021). Company faces financial
problems and business managers need to giving about financial crisis that why employees are not
getting wages for 2015, 2016, 2017. Yet, the financial growth and developments has begun it is
duty of the employer that he must pay wages to employees because it helps in overcome the
crisis.
In employment right act, employer can reduce the wages for the financial crisis but company
need to payback to employees. Gordon can use the alternative dispute solution for conflicts
between the manager and Gordon.

Alternatives: In the context of alternative dispute solution. Gordon can take helps from the
practitioner dispute and solve conflicts on workplace. Meditation process can also be used by the
dispute practitioner. This process helps in concern with employment in business organization
here employees want to solve the conflicts with employer. Meditation process helps or
employees because they get feel motivated and passionate within the organization (Menkel-
Meadow, 2018). This alternative dispute solution helps in business to maintain and preserve
relationship because mediator helps parties to effectively communicate their points of views and
needs as well as helps in satisfied them with better outcomes.
As per the above justification, employer have right to deduct wage’s for crisis financial
crisis where employee must agree with deduction. Employees can also claim wages from
employer if company overcomes crisis and then pay wages.
CASE 2
In case study, the main issues are that Janet are bound to pay internet charges where the
virgin media is failed to offer the services from the declared date of business are incorrectly
claiming the charges.
In the context of contract law UK, in this case, postal rule is applied where it is stated if
two or more parties can form contract through telephone and email. Virgin and Janet makes the
offer and other party will accept the contract than it is valid as per contract law.
In case study, Janet is customer in those case, and he orders virgin media for installation
of internet services (Peters, Subar and Martin, 2019). The virgin media send engineer for
installation process but engineer found that there is no phone connection and said to Janet that he
will come back with tools and equipment’s for installation but engineer not come back but after
3-week business again sent another engineer for installation, and she realized that company
charged her whole package.
According to postal rule, elements of contract presented such as:
Offer: One party give order to another party. Janet offers the service provide to offer internet
services.
Acceptance: This is one who accepts the offer. Virgin media accept offer from another party and
service provider is accepted that they will provide services to Janet with the help of email.
Consideration must be present between both parties.
Contract made verbally with email and it is legal as per the contract law (Illankoon, 2022).

Alternatives resolution: In this case services provider can also breach the contract that they are
not able to provide the services, and they can claim the full package's internet charges from
Janet.
As per above, Here, the consumer Janet can take action against the business and not pay for
internet service.
CASE 3
According to the case study, Backhorse provide security guards services to another
company. This company consist 50 employees within the organization. Company has main 4
important customers which use its services. One customer failed in to give debts of company
which lead in failed of payments to the creditors of business. Another company creditor has
issued for winding up petition before two weeks ago as well as court also consider that winding
up order at hearing take place after three weeks.
According to the employment right act, company manager need to make payment to
creditor out of their financial crisis. Company can also reduce the wages of employees because
they can use the employees reduction wages amount to pay the creditors bill which are most
important for business. Business has to pay 100000 bad debt to creditors (Romualdi, 2018). After
company over its financial crisis, they company can repay employees of their due amount.
Alternative resolution: As per the employer act, company can provide provision to employer
that they have to power to reduce employees’ wages and employees also support to company
with company policy about failing in financial situation of company. The labour law in United
Kingdom controlled the relation between employer’s and workers as well as trade union of
business.
As per above solution, As per the employments right, customer’s have to right to claim its wages
from business. Because it also defines the protection of wages and provision of limit on amount.
RECOMMENDATION
Case 1
 Gordon can also take another cation against the company regarding their wages, but he
can also support to company because company face the financial crisis.
 Gordon should focus on support to business after that orange computer Ltd will repay
after the sufficient profit.
Case 2

 Janet should breach the contract with services provider and after that service provider
will claim with fully charged (Stražišar, 2018).
 Rather than service provider should send the expert engineer for install internet package.
Case 3
 Court should provide hiring before3 week.
 Company also should focus on their employees and provide them meditation for
relaxation.
CONCLUSION
As the conclusion, the contract law is the promise enforceable by law with various
elements such as offer, acceptance, consideration, legality, mutuality, etc. this report discussed
the employment law and its application and different forms of business legally formed. This
report also elaborated the case given in report with justification and recommended.

REFERENCES
Books and Journals
Cejnar, L. and Duke, A., 2018. Competition and fair trading practices in the higher education
sector: A comparative review of the position in the UK and Australia. ECLR: European
Competition Law Review, pp.31-36.
Craig, P. and De Búrca, G., 2020. EU Law: Text, Cases, and Materials UK Version. Oxford
University Press, USA.
Galvin, D.J., 2019. From labor law to employment law: The changing politics of workers’
rights. Studies in American Political Development. 33(1). pp.50-86.
Goto, G., 2018. The logic and limits of stewardship codes: The case of Japan. Berkeley Business
Law Journal, Forthcoming, The University of Tokyo Business Law Working Paper
Series, (2018-E), p.01.
Herlin-Karnell, E., 2017. The robustness of EU financial crimes legislation: A critical review of
the EU and UK anti-fraud and money laundering scheme. European Business Law
Review. 28(4).
Illankoon, I.M.C.S., and et.al., 2022. Causes of disputes, factors affecting dispute resolution and
effective alternative dispute resolution for Sri Lankan construction
industry. International Journal of Construction Management.22(2).pp.218-228.
Javed, M., and et.al., 2020. The effects of corporate social responsibility on corporate reputation
and firm financial performance: Moderating role of responsible leadership. Corporate
Social Responsibility and Environmental Management.27(3). pp.1395-1409.
Lee, J., 2017. Striking a fair balance in UK takeover law: market interests, power of regulation,
and enforcement. European Business Law Review. 28(6).
Menkel-Meadow, C., 2018. Whose dispute is it anyway?: a philosophical and democratic defense
of settlement (in some cases). In Mediation (pp. 39-72). Routledge.
Peters, E., Subar, K. and Martin, H., 2019. Late payment and nonpayment within the
construction industry: Causes, effects, and solutions. Journal of Legal Affairs and
Dispute Resolution in Engineering and Construction.11(3). p.04519013.
Pistone, P. and de Goede, J.J. eds., 2021. Flexible Multi-tier Dispute Resolution in International
Tax Disputes. IBFD Publications USA, Incorporated.
Romualdi, G., 2018. Problem-Solving Justice and Alternative Dispute Resolution in the Italian
Legal Context. Utrecht Law Review.14(3). pp.52-63.
Schreieck, M., Wiesche, M. and Krcmar, H., 2022. Governing innovation platforms in multi-
business organisations. European Journal of Information Systems, pp.1-22.
Spotorno, A. R., 2018. Piercing the corporate veil in the UK: The never-ending mess. Business
Law Review. 39(4).
Sternlight, J.R., 2019. Mandatory Arbitration Stymies Progress Towards Justice in Employment
Law: Where To,# MeToo?. Harv. CR-CLL Rev..54. p.155.
Stražišar, B., 2018. Alternative dispute resolution. Право. Журнал Высшей школы экономики.
(3). pp.214-233.
Sun, L., 2021. Juan Antonio Caldero Faculty of Business and Law, Coventry University, UK.
Journal of Language Teaching and Research. 12(5), pp.724-734.
Wronka, C., 2021. Anti-money laundering regimes: a comparison between Germany,
Switzerland and the UK with a focus on the crypto business. Journal of Money
Laundering Control.

Yidana, N., 2021. Sale in the Ordinary Course of Business Under Ghana Law: Recent
Developments and Lessons from the UK. Business Law Review. 42(3).