Business Law: Sources, Role of Government, Impact on Business, Legal Formation of Organizations

Unit 7: Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................5
P1. Explain different sources of law...........................................................................................5
P2 Explain the role of government in law making and how statutory and common law is
applied in the justice of courts....................................................................................................6
M1 Analyse the effectiveness of the legal systems in terms of recent reforms and
developments ..............................................................................................................................7
P3 Using specific examples, illustrate how company, employment and contract law has a
potential impact upon business ..................................................................................................7
M2 Analyse the potential impact on business through difference between the legislation,
regulations and standards............................................................................................................8
D1 Provide a coherent and critical evaluation of the legal system and law, with evidence
drawn from a range of different relevant examples to support the judgements. ........................9
PART 2............................................................................................................................................9
P4 Explain how different kinds of business organisations are legally formed...........................9
P5 Explain how business organisation are managed and funded .............................................10
M3 Analyse the advantages and disadvantages of the formation of different kinds of business
organisation. .............................................................................................................................11
D2 Critically analyse the formation of different kinds of business organisation .....................13
P6 Compare and contrast different sources of legal advice and legal support for the dispute
resolution to make appropriate recommendation to legal solutions. ........................................13
M4 Recommend legal solutions for resolving a range of disputes, using examples to
demonstrate how a party might obtain legal advice and support..............................................14
D3 Critically evaluate the effectiveness of legal solutions, legal advice and legal support for
the dispute resolution. ..............................................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The UK legal system consists of various legal principles, rules and statutes that are
important to safeguards the rights of the individual. The common law system has unwritten
constitution and uncodified legislation diversified the scope of English Legal system. It aim is to
maintain peace and security in the country and establish peaceful environment in the society. It
has complex and detailed legal system that regulates and governs the business activities for its
effective functioning. Law is defined as the rules and regulation that monitors and supervise the
conduct of the individual and provide security to its citizens (Ba Duong, 2021). The UK business
law provides mechanism through which legal relation between the parties can be formed. The
law of employment provides the statutory framework to protect the employees from all kinds of
discrimination that may affect their morale and confidence at workplace. This report will cover
classification of law and its impact on the performance of an organisation. Further, it will
identify the need of finance and its relevancy in the business organisation. Also, it will examine
the process of Alternate Dispute Resolution mechanism and its role in providing legal solution to
the clients.
TASK
P1. Explain different sources of law.
The UK legal system is complex and diversified. The various sources of law such as
International Convention, treaties, customs etc. emerged the unique legal system in a country.
The three pillars of democracy such as Legislative , executive and judiciary plays signifiant role
in the growth of the country and ensure safety of its individual and organisation. Legislative
body which is formed through Members of Parliament are responsible for making law whereas,
executive body enforces the law to harmonise the positive relation among the individual and
judiciary is an enforcement body that exercise their responsibility to provide justice and equity to
the victim.
Primary Sources of Law
The sources of law is divided into two parts which is primary and secondary sources. The
unwritten constitution is supreme law of land which defines the various rights and duties of the
individual including their right to life, right to privacy, human right etc. The case law is judge
made law that is given by the judicial body in a case to decide the matter (Charlson, 2020). It is

act as a judicial precedent for the inferior court to ease the right of the victim to claim justice
from the enforcement agency. The case laws has positive impact on the UK legal system as it
helpful source for the legislative body in order to frame laws. Legislation is divided into two
parts such as Delegated Legislation and Primary Legislation. However, Delegated
Legislation empowers the certain authority to the members to frame enabled Act in order to
suggest the Parliament about the contemporary issue of the society to reduce burden over them.
It helps the Parliament to cover all the aspect of provision that are important for regulating
human malicious conduct in the society. Primary legislation refers to original power of
legislative body to make laws for the society. They develops the idea and aims to enhance the
scope of legal system by regulating new norms, standards and legal principle to safeguard the
individual's right.
P2 Explain the role of government in law making and how statutory and common law is
applied in the justice of courts.
The English legal system is also referred to as a “ common law” system that plays significant
role in the development of England and Wales. The primary legal principles have been taken
from the courts in the form of precedent that have been heard by the judges. The customs and
tradition has great impact on the growth of UK legal system as it influences the enforcement
agency to act in such manner. Judicial decision plays active role in filling the gap where there is
no statute and not having interpreted law to deliver to fair regulatory mechanisms. The common
law is a combination of substantive and procedural law that are helpful for the judges to make
judgements (de Abreu and Ceglia, 2018). The common law and statutory law are followed by
the UK to serve social and justice and public welfare.
Common law and Statutory laws in the judicial system
The major line draw between the common law and statutory law highlights the uncodified and
codified statues. The common law is developed through judicial precedents and termed as judge
made law. It is procedural law that defines the method and ways to conduct legal proceedings. It
is instructive in nature and originated through judgement and judicial precedents.
Statutory law are the written and codified legislation that is established in the form of statutes. It
is substantive law that identifies various legal issues, concepts and its definition is given under
any statute. It is prescriptive in nature that is formed by the Government authority. New laws are