Business Law: Sources, Role of Government, Impact on Business, Formation of Business Forms

This report discusses the sources of English law, the role of government in law making, and the impact of company, contract and employment laws on business. It also elaborates on the formation of various business forms such as sole trader, partnership and public limited company. The report provides expert guidance on Desklib.

BUSINESS LAW

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY ..................................................................................................................................3
P1. Elucidate different sources of English law. ........................................................................3
P2. Discuss the role of government in the process of law making and application of statutory
and common law in the courts. ..................................................................................................4
P3. Explain how Company, Contract and Employment laws plays a impact on the business. .5
P5. Discuss the funding and management of the various business forms. .................................8
P6.Make recommendations of legal solutions that can be applied to solve a range of disputes.9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In order to ensure the peace and order in the society as well as for the smooth functioning
of the business, laws play a major role and are very much essential. The laws states certain duties
and responsibilities which bounds the individuals as well as corporate bodies to act in certain
manner. The every minute acts of the company starting from its birth to its dissolution, are
governed and regulated under the guidance of law . It governs that how the activities of the
business are required to be carried what are the process for its incorporation, how the affairs are
managed, etc. the following report is going to elaborate the various source of law. What role the
government play in the process of law making and how the said law are effectively applied in the
courts. Moreover, the report also discusses the different business forms along with their ways of
management and funding. At last, it also recommends the various legal solutions for the given
case studies of three different individuals(Akhatovna, 2019).
MAIN BODY
P1. Elucidate different sources of English law.
The country, United Kingdom follows the legal system which comprises of both the
common law and civil law which means for the purpose of delivering the justice, there prevails
the combination of judicial precedents and legislations of the country. All the appeals with
respect to any matters be it a civil or criminal are pleased by the apex court of the country which
is the Supreme court. Further, in hierarchy, the high court and after that the divisional courts
comes under the apex court which deals with the matters on divisional levels. Further, the
sources of law are majorly classified into two broad categories which are the secondary and
primary.
The first being the Primary sources, are the one which are constituted by the authorities
of the country who are sanctioned to make such laws(Cappellino, 2020). These are considered as
the authoritative and original statements of the law. Mainly they lies in the two ways which are,
The Legislations- the law of United kingdom is referred as the uncodified form of law
reason being the constitution of the country is not in written form. The combined from of rules
and regulations which are being passed by the parliament by the majority, in the form of drafts

are addressed as the legislation. The only supreme authority who is sanctioned to make such laws
for the state is the Parliament.
Further, the other which is the Case laws, are the results which has been delivered as the
result of some landmark case laws by the court of law. These are the decisions of the courts
which stands applicable on the divisional courts having similar matters.
The second head being the Secondary source are the one which are not the original
sources of the law. Mainly they are the documents which are the discussions of the original one.
It consists of the parliamentary and non parliamentary debates, law journals, textbooks, legal
dictionary and encyclopedia which are discussed as follows,
Parliamentary documents, these are one of the major source as they helps in
understanding the basis or aim for which the particular legislation came into force. It comprises
of the green and white command papers, the publications and the debates of the
parliament(CRISTEA, 2019). The others is Law Journal, which comprises of the broad range of
information and data on some specific concern of law or in general. Some of the examples of the
Law journals are the West la and Hein online. Moreover, the Legal encyclopedia, are the
sources which acts as a tool which can be used for purpose of research on the topics of law. It
provides the information in the form of summaries and key points of legislation and case laws.
Halsbury laws of England is one such example of this source. The other being the Textbooks are
the work and the creation of the academic content writers. For the purpose of research on some
ground level these are considered as one of the most easiest form. The Criminal Law Book of
Smith and Hogans is one such example of this textbooks as a source of law(Davies, 2020).
P2. Discuss the role of government in the process of law making and application of
statutory and common law in the courts.
In order to constitute the effective laws for the country it is very much required to follow
the due process of it. The creation of any legislation in itself is a very complex task. The people
who are engaged in this process are bound to have certain knowledge of expertise and
experience. Parliament of the country is the sole body which enjoys the authority for same. The
basis of any law to come into force starts with the formation of a draft which further is
scrutinised with the help of various stages of the process. The parliament of the country

comprises of the two houses which are named as the house of lords which is the upper house and
house of people which is addressed as lower house of the parliament. Further, the proposed draft
of every legislation in order to have the royal assent to it is required to go through various stages
which are as follows,
First reading, this is the very first stage of the process where the rough draft is allotted
the best suitable title to it in accordance to the matter for which it has been created. Later after
getting the title the same is been forwarded to the next stage of process(Faulkes, 2018).
Second reading, at this stage the members of the parliament in depth, discusses all the
possible aspects of the draft and also emphasis is made as to what effect will the law will make
on the society and country. This analysis includes both the positive and negative aspects of the
draft.
Committee stage, in this stage the detailed discussion is taken place between the
members of the parliament with respect to the tilt, main body, and the concerned issues of the
bill.
Report stage, at this particular stage the earlier ascertained changes and modifications
are made to the draft accordingly as required.
Third reading, here, while conducting the voting system the majority of the members of
parliament is determined whether the same lies with in the favour of bill or not.
House of Lords, in this stage after the arrival of the proposed bill the measures are taken
to know that how the said draft is going to make a impact on society as well as country in the
future.
Royal assent, no bill is said to have its legal existence until it occupies the royal assent
from the queen of the country. This stage even though it is just an part of formality, is of very
important one as only after this process the passed bill is addressed as a codified
legislation(Freedl and 2020).
Moreover, with respect to the application of common and statutory laws in the court of justice
both plays different importance. For the purpose of delivery of justice both common as well as
statutory laws are required by the courts. The court of the country are broadly classified in the
two categories which are the upper courts which comprises of the supreme court, high court and
appellate courts. The other is of the lower courts which consists of the country, crown ,

Magistrate and family courts. Both the earlier mentioned types of laws are outlined in different
ways as the statutory laws are the result of the parliament which at further stage are enacted in
the form of legislations. Whereas the common laws are the one which results in the form of
judicial precedents by the judges. The statutory laws are applicable on all level of courts in
similar manner while the common laws have their binding only on the inferior courts and that
too in the cases bearing similar facts and aspects(Hann, Nash and Heery, 2019).
P3. Explain how Company, Contract and Employment laws plays a impact on the
business.
For any business to have its effective working and growth needs to comply with the
provisions of the different laws which are the contract, employment and company laws as each
regulates the different aspect of the business. All the said laws possess their own duties and
obligations which one needs to comply with. Below are laid down the impacts of each legislation
along with their some positive and negative aspects.
 Employment laws, one of the major objective behind this law is to ensure and regulate
the non-discrimination and exploitation of the employees of the organisation. The act also
looks after the workings of the several aspects such as fulfilment of adequate health and
safety measures, requirement of minimum wages, maximum working hours, etc.
moreover, the employment laws has been addressed as the relationship between employer
and its workers, where both has certain duties which they are bound to follow to each
other and to the company as well. Every business for ensuring the growth and working of
the company are required to comply with the stated employment regulations by the
government reason being that the disagreements among them can lead to hamper the
working of the company which at later stage can also reduce its profitability(Hannigan,
2018).
 Company law, all the stages of the business are governed and regulated by the company
laws starting from its birth to its dissolution. The companies Act of 2006 of the United
Kingdom is the the primary piece of legislation which specifies the regulations regarding
the conduct of the activities of the business. All the transaction and workings of the
business are required to be carried on under the guidance of the given legislations. The
legislation bounds both the company and their employees with respect to the imposition

of certain legal obligations on them. Furthermore, many a times the strict compliance of
the laws can create concerns for the company as the non compliance of the laws can
impose penalties on the part of the business owners and also the process of compliance
fetches the lot of time. Also, this task, on the part of business results in increasing the
overall charges which ultimately leads to the lesser profits.
 Contract law, the regulation and governance of the agreements which take place
between the companies and parties or any other separate legal entity, are taken care of by
the contract laws. The application of this legislation bounds both the concerned parties to
fulfil their own party of duties or acts which they are required to do as per the made
contract. Also, the act imposes various sort of legal obligations and liabilities on the part
of one who breaches the agreement against the other individual. One can also be asked to
pay the required damages in order to restore the actual position of the individual with
whom the wrong has been done(Horton, 2018). Moreover, the agreements to which the
companies are of part can lead to certain tangled situations as they need to be abided by
the various rules and procedures which can proved to be really lengthy and burdensome
for the business. This task can be resulted as an one of the major negative impact on the
organisation.
P4. Elaborate the formation of various types of business forms.
Any individual who dreams of stating a new venture or expanding the existing one
requires a keen knowledge of every possible form in order to move forward with any of them.
The ascertainment of the business form as per the requirement of the owners ideas plays a very
import task for the effective functioning of the business as each form entails different aspects and
benefits which can lead an individual in overall profit maximization. Therefore, the major forms
of business along with there benefits and implications, which are available at the option of one
party are as follows-
Sole trader, this form is also by the name of sole proprietorship or the single owner
business. The person who is the owner of the business are called as the proprietor or trader. Here
all the affairs and conduct of the business are managed and regulated by the proprietor
themselves. This form of business is considered as one of the simplest form on the part of owner
with respect to start the business. As the functions of the venture are carried on a small scale
therefore the its formation does not requires much requirements to fulfil. The capital required for

initiation of this form is very less in amount as compared to the other forms and also the same
can be acquired from the personal sources of the owner which are the borrowings from the
relatives, personal saving, bonds, retirement funds, etc. moreover, in sole proprietorship there
stands no such mandatory requirement of registration for this form and similarly for the process
of incorporation also there stands no such major legal requirements. Other than this, with respect
to the liabilities the proprietor alone is liable to pay all the same reason being this form does not
enjoy the status of separate legal entity(McCamus, 2021).
Partnership, in the option of partnership business, the individual is entered into an
agreement with one more than that people, all having similar objectives and ideas with respect to
the business and also to share the acquired profits and liabilities in equal proportions. The affairs
of the business are need to be carried on by the partners either by all of them together or any one
of them acting on behalf of others. The ascertainment of this fact lies totally on the discretion and
mutual understanding of the partners. Moreover, the partnership business can be carried in many
ways which are the general and limited liability partnership. The legal identity of this form is
said to be came into existence with the mere formation of the partnership deed and at later stage
the registration of the same in the companies house.
Public Limited company, is one such form where the company shares the limited form
of liability. The capital of public limited companies are acquired by the way of issuance shares
in the public. As the finances are taken from the public therefore the company is bound to
disclose their financial status to its interested shareholders. Moreover, as this form enjoys the
status of separate legal entity, so both the company and its members are treated in the individual
capacity. For the purpose of incorporation of the company there lies certain steps which are
required to be followed by such as the foremost is the determination of an appropriate title which
is regarded as the name of the company. After this the memorandum of association and article of
association of the company are need to outlined and the same documents has to be submitted in
the companies house for their further registration. This form also asks for the requirement of
minimum number of directors and shareholders for the incorporation of the business(Menkel-
Meadow, et.al., 2018).
Private limited company, where both the company an its members are treated and acts
in the individual capacity then each other reason being there exist the concept of separate legal
entity in these types of companies. The liabilities and obligations which arises on the part of

company lies with it only and the member to any extent are not bound to fulfil the same. Further,
as similar to that of the earlier one, the process of incorporation of this form consists of certain
stages which are the ascertainment of title, formation of AOA and MOA, etc. All the said
informations are required to be submitted to the house of companies where the registrar after
being satisfied issues the certificate of incorporation, with which the legal existence of the comes
into play.
P5. Discuss the funding and management of the various business forms.
With the change in the form, the way how business is funded and managed gets
changed as each form has its different aspects attached to it. In the from of Sole trader, the
capital is acquired by the owner themselves by the means of some primary options which the
personal saving, retirement funds, bonds, borrowings from relatives, small bank loans, etc. Also,
the availability of grants can be one of the source of acquisition of capital as in this option one
need need not to repay the amount. Further for the purpose of management the owner is the on
who carry out all the affairs of the business and the sole control lies with them. The other being
the partnership business, are funded mainly by the share of saving of each partner which they
tend to contribute to the total capital of the business. Some of the major ways in which the
money can be raised is of the personal saving of the partners, their retirement funds, bonds,
certain loans from the banks, etc(Merkin and Saintier, 2019). The option of retained profits is
also one way, but this lies only in the cases of existing business. Crowdfunding, can also be an
option as it also aids in raising the money through internet opportunities. Further, with respect to
the management of the partnership businesses the affairs and control of the business lies in equal
share among all the partners. Mop0reover, with respect to the funding s of public limited
company, the capital can be acquire by the ways of trading of certain goods and services and
also by the issuance of the shares in the market to public. Other than this with respect to the
management, the directors are the one who takes care of the business and the shareholders are
the one who owns the business.
P6.Make recommendations of legal solutions that can be applied to solve a range of
disputes
Alternate Dispute Resolution (ADR) can be defined as a process which involves settling
of disputes among the parties outside of the court. It is carried out by a third party who should be
impartial towards the case.

With respect to Case Scenario 1-
Legal Issue- Is it justifiable to claim for the wages among the employer and employee
Legal Solution- According to the given case scenario, the best option which is available is of
Negotiation.
Justification- Negotiation is a process of discussion which is informal in nature that helps in
resolving the dispute between the parties by clearly stating the points of each party so that end
conclusion can be made. For the given case study the negotiation stands the best option as for the
dispute of agreed wages, can be resolve well with the help of an informal discussion and that to
in the presence of an unbiased third person. With the assistance of the negotiator the parties with
common consensus can lead to the final decision(Pino, 2021).
For Case 2-
Legal Issue- whether the charges of the services along with the extra three weeks charges of
phone line as asked by Janet are justifiable
Legal Solution- in accordance with the given facts, the option of Mediation stands the best
solution for the parties.
Justification- Mediation is a process where the concerned parties indulges in the discussion in
order to resolve the issues in presence of the third person who is addressed as the Mediator.
Similarly for the given case study this option stands best as with respect to the charges which
according to Janet has been charged in unfair manner asks for the suggestion of the mediator in
order to come to the conclusion(Rosa, 2019).
For Case 3-
Legal Issue- is the made application of dissolution of the company by one of its creditors is
sustainable.
Legal Solution- the process of Arbitration is the best option for the given facts of the Black
horse limited company.
Justification- in this process the disputes are resolved under the assistance of the third person
who is called as the arbitrator. The process of arbitration is more formal in nature as compared to
the other forms and hence it stands most appropriate for the issue of winding up of a company
which in itself is of some serious nature.
Furthermore, every form of alternate dispute resolution is an effective method but along
with it there also lies various differences while comparing their legality. For example, the

decision made by the mediator is not of binding nature whereas the decision made by the
arbitrator stands binding on the parties. similarly the decision made by the negotiator lies at the
option of the concerned parties whether the legality of the same has to be enforced or
not( Stražišar, 2018).
CONCLUSION
From the following report it can be summarised that the laws plays a very crucial role
with respect to the regulation of the business activities. The said legislation as mentioned in the
report specifies certain legal obligation which one needs to comply with in order to ensure the
continuous running of the business. Other than this the way of management and funding of each
forms differs from that of other. The report also recommends the various legal options as per the
three different case studies along with the comparison between the various form of alternative
dispute resolution.

REFERENCES
Books and Journals
Akhatovna, A.M., 2019. SOME ISSUES CONCERNING SOURCES OF LAW. Review of law
sciences. 1(7).
Cappellino, A., 2020. How to Choose the Right Business Organization Form.
CRISTEA, G., 2019. THE ROLE OF CASE-LAW FROM THE SOURCES OF LAW
PERSPECTIVES. REVUE EUROPÉENNE DU DROIT SOCIAL, p.126.
Davies, P., 2020. Introduction to company law. Oxford University Press.
Faulkes, Z., 2018. Resolving authorship disputes by mediation and arbitration. Research
Integrity and Peer Review. 3(1). pp.1-7.
Freedland, M., 2020. Employment Law Revisited. Dalhousie LJ, 43, p.515.
Hann, D., Nash, D. and Heery, E., 2019. Workplace conflict resolution in Wales: The
unexpected prevalence of alternative dispute resolution. Economic and Industrial
Democracy. 40(3). pp.776-802.
Hannigan, B., 2018. Company law. Oxford University Press, USA.
Horton, R., 2018. Employment/Labour Law. Great Debates on Gender and Law.
Loo, T., 2019. Making Law, Order, and Authority in British Columbia, 1821–1871. University
of Toronto Press.
McCamus, J.D., 2021. The question of fairness in contract law.
Menkel-Meadow, C.J., et.al., 2018. Dispute resolution: Beyond the adversarial model. Aspen
Publishers.
Merkin, R. and Saintier, S., 2019. Poole's Textbook on Contract Law. Oxford University Press,
USA.
Pino, G., 2021. Sources of Law. Oxford Studies in Philosophy of Law, 4.
Rosa, A.T.R., 2019. THE ROLE OF GOVERNMENT APPARATUS (DEVOTION) ON
DEVELOPMENT OF BUREAUCRACY IN PUBLIC POLICY PERSPECTIVES IN
THE INDUSTRIAL REVOLUTION 4.0 ERA (R & D Study In Rancasari Riung
Bandung District, Bandung City, West Java). Jurnal Ilmiah Wahana Bhakti Praja. 9(1).
pp.17-30.
Stražišar, B., 2018. Alternative dispute resolution. Право. Журнал Высшей школы экономики,
(3).