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

This report covers the sources of legislation, role of government in law-making, and impact of business law on companies. It explains company law, contract law, and employment law with examples. It also evaluates the effectiveness of the legal system and recent reforms.

Business Law

Table of Contents
INTRODUCTION ...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
P1 Explain different Sources of legislation.............................................................................................3
P2 Explain the role of government in law-making and how statutory and common law is applied in
the justice courts. ..................................................................................................................................4
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and developments. .....5
P3 Using specific examples illustrate how company, employment and contract law has a potential
impact upon business.............................................................................................................................6
M-2 Differentiate between legislation, regulation and standards impact upon business......................6
D1 Evaluation of the legal system and law.............................................................................................8
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

INTRODUCTION
The Business law is based on the law which is used to make business organization form
as per legal structure of the country. This law is based on different legal perspective which helps
government to protect the project culture. The law also deals with effective working which
establish goals and objectives and achieve more effective business organization. The law will
ensure that the organization which performs activates of business makes establishment full
perseverance which does achieve goals and objective more impact fully(Aylott, 2022). The
business law makes many task in business organization which help in achieve more staleness
with development. The Range of this laws is more wider and this impact enterprise purpose
immediately. The report covering origin of legal document, role of authorities in legal document
devising and the impact of enterprise law on the organizations.
MAIN BODY
P1 Explain different Sources of legislation
The Jurisprudence can be defined as a rule which governs behavior of individual in a
civilized society. The scientific law distinguished from perceiving the material world and which
are immutable, the laws are made by human and this can be changed through intervention of
human. The law is mainly described as primary and secondary law:
Primary source of law:
a) The act done by parliament, order of council, etc. which is known as Legislations.
b) The record of courts which have binding effect, decisions of higher court.
Secondary source of law:
a) The decision of court.
b) Textbook and commentaries.
c) Opinion of legal expert.
The delegated legislation is also named as secondary legislation, this is made by an individual or
body under authority which have in primary legislation. The power is conferred with minister,

with the crown or public bodies. Draft bill is issued for consulting before introducing into
parliament. With this the changes will made before the bill is introduced. All of these bills are
Government bills. The departments of government will produce the draft bill and can issue them
to interested party(Bartman, and De Groot, 2021). This is also considered in committees by MPs
and Lords. The common law is also known as Judge made law, this is a body made by the
judges and quasi-judicial tribunals. The common law develops as precedent. This law was
develop in early middle age in the King’s judicature. They set up a individual royal judicature for
most of the state nearby London. This do not exist of substantive rights but substantive remedies.
The Equity law comes from Old English common law, this law supersedes common law when a
conflict arises between these two and none of them can appropriately bring the verdict. Only by
virtue of ECA the law of European Union have effect in UK. The United Kingdom is a member
of ECHR which protects Human Rights of people in country which belongs to council of Europe.
For protection from discrimination in workplace and in society there is Equity act 2010 in UK,
this act replaces anti-discrimination laws. The Health and Safety at work etc. Act 1974 set the
general duties which an employer have towards the employee. The companies act 2006 covers
all the aspects of a company that how a company should run, manage and financed.
P2 Explain the role of government in law-making and how statutory and
common law is applied in the justice courts.
The Statutory legislation is considered as the permanent law which is made through
process applied in court of trials. For controlling the activities happening in society this law is
formed. This law is also used for legal process for making civil and criminal cases covers
relevant law. The common law is based on principal of common law which makes judgment
passing in landmark cases(Cartwright, 2022). This law is used by the courts when the special
circumstances arise in statutory laws which fails in providing the justice.
 Legislative: This is one of the most crucial structure which is utilized in law creation of
UK. Legislative assembly assists in creating statutory legislations making with relevant
procedure that has been accepted by the parliament of UK. This procedure is also called
as three reading structure within which first level involves demonstration of bill by the
ruling political party.

 Executive: This is second main crucial structure which support and creating operation of
law possible. The structure consists management authorities. Which has been provide
power to delegate authority. It assists in performing laws with relevant productiveness
and strong intervention(Reisberg, 2018).
 Judiciary: This is third most important structure which assists for creating laws
generated in high effective way. They are protector of constitution and fundamental
rights that makes judiciary deal with legality of laws formed.
There are two important laws which are authentic in nature and is acceptable within legal
system of United Kingdom(Deb, 2022). These laws are used within courts in order to conduct
trials. they are being explained below as followed:
Statutory Law: It is considered to be permanent laws which are formed through proper
process applied in trials of courts. These laws are formed in order to control activities taking
place in society. This laws is used within legal process for making civil and criminal cases
covered with relevant laws applied.
Common law: These law are based upon common law principles which makes
judgements to be passed in landmark cases. The aspect is based upon analysis of case done in
relation over facts and issues raised within case which make proper judgement passed in relation
over case. The laws is used by courts only when special circumstances arises where statutory
laws fails to provide justice in its actual meaning(Telles, and Klingler, 2022).
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and developments.
The Lawful scheme of UK is depends upon the various prospects which are exist within
the society. In United Kingdom, there are mainly two types of legislation, that are civil as well as
vicious law. In the civil law, the single are being mark and issues related to them has been solved
and in criminal law all kinds of aspects related to public has been covered. In civil law civil
procedure code has been used and in criminal law criminal procedure code is used. Criminal law
deals with cases related to theft, extortion and murder and in civil law cases related over
property, torts and sate issues are handled(Ferdosi, 2022). In the current situation, it is
reasonable to assert that the United Kingdom's judicial system is of high ability. By establishing
new laws or amending existing ones, the legal system becomes stronger and more correct. When
the United Kingdom denote its leave from the European Union, all commerce in the economy is

broken, as witnessed in this recent scenario. The government intervenes in regard of this and
designed the reliable policy to carry out business and operations in smoother way. New
regulations and policies have to be introduced so business can established at international and
national level. The legal structure of United Kingdom is being developed since various reforms
have been portrayed through the parliament. They defines the circumstances to approval or
disapproval in society for a particular law or the parliamentary actions. This is very important for
society from a change in society needs to amend the law which works as per the requirement.
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business
Outcome of employment, establishment and contract law on enterprise by some examples
For forming legal structure which will help the business organization to run more effectively.
Laws used by company are as explained as-
1-Company Law- They are used for company to attain stability in different aspects of business. It
helps the organization to run its operations more efficiently and effectively. The important
legislation used for organization function application is Company Act 2006. It is used for
formation of memorandum of association and article of association. Duties of director are also
explained which are bound to be follow by them. For developing the understanding the example
used is of BN Ltd. For which formation of organization the article of association and
memorandum of association by the legislation(Grajzl, and Murrell, 2022). But sometimes it
becomes difficult as legislation charges some penalties which are due to certain faults or
liabilities by the organization. It increases the charges for the business which leads to reduced
profits.
2-Contract Law- They are formed by the formation of agreement between two or more parties.
The law works on different aspects which makes agreement into contract. Agreement becomes
contract by the contract law and expressed and implied in nature. It is based on different
elements like offer acceptance, obligation, legality and validity which helps in validation of
contract in eyes of legal system. The elements are connected to each other so if one element is

missing contract can not be formed. Offer refers to the presentation of idea related to contract.
Another element is acceptance done by parties who are presented with offer(Wareham, 2022)
(Williams, 2022).
M-2 Differentiate between legislation, regulation and standards impact upon business.
Legislation: Acts of parliament are a collection of laws. These are employed to manage a
country and represent the essence of the legal system. It's also a statutory body with the authority
to put laws into effect. This gives the group legal support. It keeps it cleaned and alert to any
other organization's wrongdoings(Naidoo, 2022). These can also be used to keep the
organization in order and maintain proper operating levels in accordance with the legislation.
Regulations: Legislation creates acts but its implementation is the main aspect, of
implementing these laws in society. Regulation provides procedures of implementation of these
acts. The main goal of these is to list certain policies and norms that all members of a company
must agree to in order to work there. This might be for the advantage of the company as well as
the personnel.
Standards: These standards are used by organizations to determine legal perspectives in
order for companies to achieve suitable standardization from a legal standpoint. These are
necessary to keep the company's structure intact(Rahbari, and Khodayarinejad, 2020). These
can be goals or standards by which a corporation operates, and deteriorating the standards set
will not be tolerated. These standards assist the company in maintaining its current market
reputation while also fostering goodwill in society.
Legislation Regulations Standards
The Legislation is a law which
is published through
parliament in process for
preparation of law. This is one
the crucial instrument of
government to organise society
and for protecting the right of
The regulations are rules
which is made through the
government or the other
authority for control
performance in different
business. The regulations is the
part of law which means these
The standards are deal as a
guideline or rules which help
to bring uniformity. The
standards were set in business
so the two business work in
same industry have to be

individual. A legislation to
help business is to help and
deal with different issues
which is generated in
enterprise.
are evolved form legislations. compared.
D1 Evaluation of the legal system and law
Legal system of UK was established over a years ago and it is formed with combination of
various laws. These laws needs to be upgraded on the basis of evolution in the economy. Due to
these changes legal system keeps on modifying to be more effective. In relation to business law
it is seen that requirement of capital has changed to incorporate a business over a period of time.
A new form of business incorporation is introduced named as Limited Liability Company which
is a hybrid of partnership and company(QC, 2022). It is difficult to evaluate law critically
because certain laws are strict, such as statute law, while others are negotiable, such as common
law, which is based on cases. Both serve a different purpose in society, assisting in the pursuit of
justness for guiltless individual and punishing the suspect through societal wrongdoing. The
legal system and laws are related to the business for keeping change because of change in
scenario of business. For example- any new form of business which is introduced in recent time
which is LLP and consist feature of the company and partnership. The legal system is flexible for
adopting the change in environment. The law is related to the business for getting obsolete and
being modified. In recent time when BREXIT takes place then the laws and polices were
introduced for minimizing the impact of change.
Conclusion
Business law refer to the Laws formed for making formation of business organization
effectively. They cover various aspects for achieving objectives of business more effectively.
The project explains various sources used for making lawn in a nation. For making law the
different departments of government are involved. Laws used by business organization for
contract formation. incorporation and creation of employees satisfaction is also mentioned.

Company law, contract law, employment law are some of the examples. Advantages and
disadvantages were so explained in brief of various organization. In last the alternate dispute
resolution system is also covered with solutions of law and advice.

References
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contract. Oxford University Commonwealth Law Journal, pp.1-25.
Deb, E., 2022. International Business Law-Critical Review on Corporate Governance in
UK. Available at SSRN 4074105.

Ferdosi, M., 2022. The Development of Employment Protection Legislation in the United
Kingdom (1963-2018) and Sweden (1971-2020) (Doctoral dissertation).
Grajzl, P. and Murrell, P., 2022. A Macrohistory of Legal Evolution and Coevolution: Property,
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Reisberg, A., 2018. Pettet, Lowry & Reisberg's Company Law. Pearson UK.
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(non) regulation and remedies. Copenhagen Business School, CBS LAW Research
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