Business Law: Sources, Role of Government, Impact on Business, Legal System Evaluation

This report explains the nature of the legal system of the organization, potential impact of the law over the business in UK, different types of formation of the business organization and its formation, and provides recommendations for appropriate legal solutions. It covers sources of law, role of government in making laws, application of statutory and common law in justice court, and the impact of company, employment and contract law on business. It also evaluates the legal system and law and explores the advantages and disadvantages of different types of organization and its legal formation.

BUSINESS LAW

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Sources of law..............................................................................................................................3
Role of Government in making laws...........................................................................................5
Application of statutory and common law in justice court..........................................................5
The impact of company, employment and contract law on business..........................................6
Evaluation of legal system and law.............................................................................................7
TASK 2............................................................................................................................................7
Advantages and disadvantages of different types of organization and its legal formation.........7
Management and funding of business organizations...................................................................9
CASE 1......................................................................................................................................10
Case 2.........................................................................................................................................11
Case 3.........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law is also known as the commercial law or the corporate law that is body of
law which is applied on the rights, relations and conducts person and businesses engagement in
the commerce, merchandising, sales and trading. In this report the nature of the legal system of
the organization is explained. This report will also able to illustrate the potential impact of the
law over the business in UK. In this report the different types of formation of the business
organization and its formation is explained. This report will also provide the recommendation for
the appropriate legal solutions that required for the give areas of dispute.
MAIN BODY
Sources of law
In UK there are many different sources of Law that exists. It can be said that these sources
are considered to be differentiated in the following segments such as follows,
Legislations enacted by Parliament
There is constitution of UK that are considered to be unwritten as the described as the
part that has been written or wholly unwritten. Some of the most important constitution of the
UK are considered to be written in the laws that is passed by the parliament of UK. These laws
are considered to be passed by the parliament from the different sorts of legislation as they are
applicable for the whole country (Yeoh, 2021) In the UK the supreme legal authority develops
the rights to enact with any law. These are also considered to be the factor that are said to be the
superior part for the challenges that are part for the law. These legislations are considered to be
divided into the different parts primary legislations and delegated legislations,
Primary legislations:

Following laws are also considered to be the inclusion of parliament or the statues which
it is able to enact by the parliament. There are statues that are interchangeable in the terms of the
how the laws are laid out as the general intention of parliament in particular field.
Delegated legislations
It is also considered to be legislation that is said to be that are made by the people that act
under the authority of the parliament which are given power to be able to fill the details. It is also
able to explain that is able to act towards the ways in which the business works.
Case Laws
There are case laws that are considered to be the previous judgements which were made
by the court written in the law reports. These are also considered to be the key legal principles
that are relevant to the protection for the rights of the individuals against the rules of laws and
state. These reports are also considered to be the written judgement by the court which includes
the detailed facts and the reason given in the court. It consists of the summary of the legal issues
which are cited as the reference of legislation and other key points of the judgement. It is very
successful development of the law which depend on the law report that has the fact issues and
decision for the court in a given case (Salhi and et.al., 2019). These legal principles which are
used for making the judgement is also considered to be the factor that is influenced by the
doctrine of the judicial precedents which enable the reports decision of the law for the form of
binding source for the future decision making. These laws for the reports refers to the different
individual series which appeal case, queen bench, family and chancery division.
European Union Law
The European union law is the international source of the law that is the system which
rules through the operation of the members of the EU. The following primary law of EU also
contains the treats that are present as agreed between the members of the European union. These
structure and the governance of EU is also said to be able to enable the treaties and the secondary
law that is the body of law that comes from the objective and principles of the treaties. These
treaties have the power to be able to make the changes in the secondary law of the EU for being
able to make the in secondary laws.
European union has two law making institutions such as,
 European commission proposes new laws
 European parliament

 Council of European Union
There are disputes regarding the interpretation of such laws that can be referred to the court
of justice of the European Union. Following are the three major principle that can be used by
the EU for the decision of the area that are able to make the law.
 Conferral
 Proportionality
 Subsidiarity
Role of Government in making laws
The role of the government in making the law is very important as the country is
responsible for making focus in the management of the country. These are also considered to be
the factor that is essential in the parliamentary structure that plays an important role in the
making of the laws. These regulation of business is considered to be very important for being
able to protect the rights of the individuals. These rules of party of UK debates which is
discussion that impacts the issues for the decision of the goals and direction for the resolving
issues. This is the ruling party tries to be able to convert the laws and government policies
officially through the constitution. This is the ministry of the government that makes new
policies that is able to make new policies that allow the business to be able to impose legal
issues. These discussion is considered to be better finalized as the policy for the relevancy of the
ministers that issue for the preparation of new publishing the whitepaper. These white paper is
also considered to be the statement that is made as the policy for the management of the
statement (Tachmatzidi, 2019). It can be found that the policy is published as the white paper
that is debated and adopted in the country and ministries which would be responsible for the
implement the law in whole country. This is also considered to being able to generate the
responsibility for the implementation of the law in the whole country.
Application of statutory and common law in justice court
In the application of the justice court is considered to be the application of the common laws that
is able to serve the justice. The laws of the individuals are considered to be the made on the
judgment of the court hence it is called the common law. Statutory laws are considered to be the
implementation of the case that is considered to be the amendment are necessary. These
judgement of higher court is considered to be the reason that is able to influence the similar case
of the existing common law that does not have the statues of judgment which can be used for the

existing common law that can interpret the law and also determine the new boundaries for the
similar cases these judgements have made the future cases bind with the lower courts and have a
law that can be made by government and the parliament for the resolving the issues of the
citizens (Monciardini, Bernaz and Andhov, 2021). The statutory law can also be able to cover all
the area that can help in issuing the arise that is present with the common laws that are applicable
for the requirement of the statutory laws. These courts also provide the studies that can help in
the evaluation of the both the common law and the judgment made in the particular cases. For
example, the usage of statutory and common laws in case of Fisher v Bell. In this case the
shopkeeper kept knives for sale and was arrested for offering weapons. The court passed the
judgement that it was to be treated as invitation not an offer.
The impact of company, employment and contract law on business
The company Act, 2006 was passed by the parliament of UK. It consists of the essential
reforms which are affect the shareholders, directors, auditors of both private and public
company. This Act codifies the duties of directors, rights of shareholders and the simplifies the
organizational operations of the businesses in the UK. There is negative impact on the business
for the directors of the company which focuses on the responsibilities given in the act. This is
also the duty of the directors to make the use of their power effectively and not get influenced by
others. For example, the case of Fulham Football club ltd v Cabra, estate plc is also considered to
be directors that helps in making use of their powers. This act consists of the framework in which
the small business and the climate that encourages the people to set and grow the businesses. It
has been said that the ruling power of the people are considered to be the key factor in which
they invest as a business to reduce the cost and the burden of the running a business. It allows in
the smooth functioning of the business for being able to comply with the rules and regulations.
Company act consists of framework for small business and a climate that encourages people to
set and grow businesses. It provides rules that enables people to invest in business and reduce the
cost and burden of running a business. For the smooth functioning of business, it is necessary for
companies to comply with all the rules and regulations set in company act. For example, health
and safety act demands to offer safe environment to its employees. It is also considered to be the
contract law that mandates employer to make legal agreements of the employees which are
offered with jobs. This is also the agreement that includes the terms and conditions of the

employment and the employer must provide a copy of the contract to the employees (So, 2020).
The contract law is also significance of the rules and regulations that are compiled by the parties
while entering the contract. The law of contract has provided the guidelines to the company to
enter into the contract with anyone. These law of contract also known as the commercial law
defining the essence of the business and its functionality. This is also the cover the losses of the
party when the other party breaches the contract. The contract specifies the terms and conditions
which enable to avoid disputes and enjoy the rights and profits for which they have made a
contract.
Evaluation of legal system and law
The legal system is considered to make changes according of the law and order. Maintain
the purpose of governing the corporate entities and its functions as well as the people. It has been
found that the providing the smooth functioning of the organization is also considered to be very
effective part of the English legal system. It this system the most efficiency system is going to
help us The case of O'Brien v Bolton St Catherine's academy (2017) is an example that provides
the judgement on the discrimination and unfair dismissal. With the help of this the guilty can be
analysed through the terms in the contract of the judgement of the court.
TASK 2
Advantages and disadvantages of different types of organization and its legal formation
There are different advantages to the types of business organization such as the sole
proprietorship, corporation and company.
Sole proprietary:
Sole proprietary is that for of the business that is able to carry out the individuals that
sells the profit and bears the losses.
Advantages: This is able to manage and control the individuals All profits of the business can be enjoyed by owners It requires less legal requirements and low cost of formation.
Disadvantages:
 Owner solely is liable for the liabilities of the business.
 Capacity to be able to raise capital is limited.

 It is also considered to be difficult for the transfer of ownership.
Legal formalities:
At sole property needs the register itself with the HRMC to pay self-assessment tax. This
is also the registration that can be done online by the individual (Xhomara, Hasani and Karabina,
2021) The sole proprietary needs to file income tax. This is also considered to be the required to
register with the national insurance scheme and pay national insurance. Once the procedure and
requirements for the registration as the sole proprietary is fulfilled, they receive certificate of the
incorporation. The sole proprietary is also essential for the employment law and health and
safety law of the employees of the entity.
Partnership
Partnership is that form of business that is formed by two or more individuals that have
decided to enter into the agreement for the purpose of trade and commerce (Adeyemo, 2020).
The partnership of two types general partnerships and limited partnership. This is also considered
to be the general partnership the liability of the partner which have unlimited for the non-
requirement for formal agreement. The liability of partners in the limited liability partnership is
limited up to the partnerships.
Advantages
 Sharing of the burden and losses of the organization
 Enabling better decision-making
 More capital in the business
Disadvantages
 Unlimited liability in general partnership
 Chance of conflicts
 Sharing of ownership and control
Legal formalities:
Limited liability partnership is required to register with the company is house and
HMRC. The partnerships firm is required to comply rules and regulations of the partnership act
(Nästega, 2022). Limited liability partnerships are said to be required for the formal agreement
and need to file certificate of partnership firm is complying with other laws such as employment
law, health and safety act, contract act.
Limited Company

Limited company is considered to be owned by the stakeholders and managed and run by
the directors. It is also said to have a separate legal entity. The owners and the company are two
different entities and will be entering contract separately (Tachmatzidi, 2019). The limited
companies are two types of private limited and public limited company which have the following
advantages and disadvantages.
Advantages
 Owners liability are limited to the amount invested by them
 There are ways of getting tax benefit with corporate taxes.
 It separates entity from owners.
Disadvantages Company has complex set up High cost of formation due to high legal requirements and paperwork. Require to maintain records and registers.
Legal formalities
For the limited company the requirement is to be able to register itself with the company
house and get certificate of incorporation after the compliance of the legal requirements. The
need for draft also requires the registration of the HMRC and comply with all the rules and
regulation. Filing tax return and paying of corporate tax is very important. The directors and
shareholders of the company is needed to be comply with all duties and responsibilities
mentioned in company’s act. The directors of the company are required for the confirmation of
the statement from the house every year (Business law, 2022).
Management and funding of business organizations
Business organization Source of funds Management
Sole proprietary  It requires personal saving from owner
 Banks and financial institutes
 Angel investors
Sole proprietary is
completely
managed and owned
by owner.
Partnership  It is the contribution of capita from Partners and

partners.
 Banks and financial institutes
 Reinvesting of business profits
management control
the business.
Limited Companies  Share equity, preferential share and
retained earnings.
 Borrowed capital. Bank loans and from
other financial institution.
Managed by board
of directors and
management itself.
CASE 1
Issue: In the case study of Gordon and Orange computer LTD store there was contract of
employment has been made in which annual salary of £10,000 and commission payment of
9% on any computer sell. Along with this, in year 2015 there will be cut-throat competition in
the local market and due to that company was running into loss as well as there was financial
trouble. Moreover, manager asked employees to forgive their salary such as 2015, 2016 and
2017 and omission accepted (Kilpatrick, 2018). In addition to this, Goran accepted new
variation of the contract. One of the main issue is after 2016 company darted growing and now
Gordon can claim his wages of 2015 and 2016.
Rule: In this act there has been issue related to payment of salary of forgone year 2015, 2016
and 2017. Although in year 2016, there has been rise in economic growth and due to that organ
computer was able to earn good profit. So Gordon is now capable of salary because the term of
contract was poor condition of company (Böheim and Mühlberger, 2018). But in year in 2016
situation of business has been changed so terms of contract need to be changed and according to
employment an employee is liable to get basics salary.
Applicability: The rule of breach of contract will be applied in the case because owner orange
computer has terminated the term of agreement of not paying the money even after earning
good profit. Along with this, there will be applicability of employment law because each worker
is liable to get basic salary so that it can meet its basic need (Ioannou and Dukes, 2021).
Moreover, there is breach of employees right as imposing contractual framework on at will not
disturb the employers power to alter main terms of the relation.
Conclusion:

From the above report it can be concluded that there has been hindrance of Gordon right of
employability and there has been breach of contract. Along with this, it has been seen that
Gordon has agreed with new terms and condition but it was only till the organization was
suffering from loss and there was term mentioned for commission payment which was also not
given to employee. In addition to this, Gordon can file complaint in employment turbinal.
Case 2
Issue- Consumer is liable to pay for the period if they don’t receive any service.
Rules- The law applicable in this case is the contract law, which provides that there is no
substantial performance from the service provided that they are not liable for the receiving the
payment for the given period. Despite the amount that has been mention in the contract as per the
agreement the service receiver is not liable to pay the amount which has been agreed.
Application- The case is related to the Janet and Virgin media service provider. Janet and this
organization were in a contract of installation of the internet package and phone line. The
engineer installed internet connect but couldn’t find telephone point so he didn’t fix phone line.
The complaint by Janet on Virgin Media and after the 3 weeks another engineer came to fix
telephones lines. The invoice from the service provider was charged for whole package interact
connect and telephone lines. However, the involve included rent for the period of non-
installation of telephone lines. As per the contract law service provider cannot charge for the
period it is not rendering any service.
Conclusion- As per the contract law the consumer is said to be not liable for paying amount for
the period of no substantial performance by the service providers. In such case the Janet is not
liable for making payment for the rent telephone line of 3 weeks as it was installed after the
complaint from Janet.
Case 3
Issue- In this the company has breached the contract and has not paid its creditors for the
application of terminating contract.
Rules- The contract law is for the parties of the contract need to comply with the terms and the
conditions of the contract. Its noncompliance of any term of condition is said to matter with the
contract and where its leads to breach of contract.

Application- Such application of the Black-horse Ltd was towards entering into the contract
with its suppliers to help render some services that will be paid for the use of same payment
method. The company has not been able to pay the creditors payment for the services provided
by them to the customers. Due to the customers default of payment of the creditors one of the
creditors has applied for the termination of the contract.
Conclusion- In accordance to the contract law, the company Black-horse Ltd. Has breach the
terms and conditions of the contract. The company has not paid the amounting to its creditors for
3 months for the services rendered by the creditors. The appeal for termination of contract by the
creditor is correct as company has breached the terms in the contract.
CONCLUSION
From the above report it has been concluded that business law helps in developing
guidelines to conduct the business in competitive market area. It is very important for the
organization to follow all the rules and regulation in order to maintain smooth flow of
information within company. Along with this, study has also summarized about role of
government and common law is applied in the justice as well as legal system has been described
regarding the development. In addition to this, study has concluded on various case study and
legal solution has been provided to them.

REFERENCES
Books and Journals
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employment and self-employment in the UK. Zeitschrift für
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Kilpatrick, C., 2018. The new UK retirement regime, employment law and pensions. Industrial
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Governance in Ireland Following Brexit. Business Law Review. 43(3).
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Nästega, E., 2022. Equivalence Decisions in the EU and UK Financial Services Sectors Post-
Brexit. European Business Law Review. 33(3).
Adeyemo, F., 2020. Rebutting the presumption: are whistleblowers really protected under PIDA
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of Law, Finance, & ICT at Luarasi university vs three UK universities.
Tachmatzidi, I., 2019. Comparative analysis of takeover defenses in strong and weak economies:
the paradigm of the UK and Greece.
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Salhi, B., and et.al., 2019. The mediating role of corporate social responsibility on the
relationship between governance and tax avoidance: UK common law versus French
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Yeoh, P., 2021. Post-brexit Deal: The New Normal for the UK?. Business Law Review. 42(2).
Online

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