Business Law: Sources, Role of Government, Impact on Businesses, and Types of Organizations

Unit 7: Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Part1.................................................................................................................................................3
The Different Sources of Law.....................................................................................................3
The Role of Government in Law Making and Application of Statutory & Common Law into
Justice Courts...............................................................................................................................4
Evaluation of Effectiveness of the Legal System........................................................................5
Using Examples for Illustrating the Potential Impact of Company, Employment & Contract
Law Over Businesses...................................................................................................................6
Analysing the impact on business through differentiation between legislation, regulations and
standards......................................................................................................................................7
Part 2................................................................................................................................................7
Exploring and Analysing Different Types of Business Organizations with their Legal
Formation and management & Funding......................................................................................7
Case 1...........................................................................................................................................8
Case 2...........................................................................................................................................9
Case 3.........................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business law refers to the body of rules, principles and regulations with the responsibility
of governing the deeds of businesses. Business law is also popularly known as commercial law
or trade law or mercantile law. A framework is provided by such law for the functioning of
businesses. There are two categories of business law that are civil law & criminal law. The
purpose of such law is to maintain safe working conditions for all the people associated with
businesses. It provides the base for formation of businesses, securing shareholders rights and
compensation of issues. The report will be explaining different sources of law, the role of
government in law making and application of statutory and common law. Examples will be used
in the report for illustration of ways in which company gets effected from contract &
employment law. Different business organization will be explored for their legal formation and it
will be explained how they are funded and managed. Lastly three cases will also be studied.
MAIN BODY
Part1
The Different Sources of Law
Sources of law is the term used for referring to the various backgrounds of laws. Laws
are the rules that are enabled by the states for governing the concerned region, binding the
population and the activities of such region. There are four principle sources of law in United
Kingdom.
 Legislation – It is also known by the term statue law which means the law of a country
that are available in written format. Legislation in its relatively narrower sense includes
all the acts by the parliament of UK (Charlson, 2020). And the broader sense it comprises
such laws that are made by the powers given to the bodies under the Acts of Parliament.
 Case Law – Case Law also known as judge – made law is considered as laws’ primary
source. Law Reports are the origin where case laws are published, these are the examples
of The English Legal System Policies.
 European Union Laws – These are present in the treaties that have been agreed upon
between states included in European Union acting as the primary law. It is a systematic
set of rules that applies in the member states of EU. After UK’s exit from EU, it is no
longer a member country of EU. UK was a part of EU for a long time after Brexit
European Union Law has become domestic law of the country.

 European Convention of Human Rights – It protects the rights of people belonging to
the European Council. There are 47 Member States including UK in the Council of
Europe whom have signed the Convention (Barber, 2021). The convention is also a
principle source of law in UK at protects the people of the country by securing them the
right to life, liberty, free trial, equity, education, participation in election, marry & start a
family, etc. and freedom from slavery, torture, assembly, expression, etc.
The Role of Government in Law Making and Application of Statutory & Common Law into
Justice Courts
The government of UK have the responsibility of deciding the way by which the entire
country is to be run and the management of things on regular basis. Important functions of the
government comprise of setting the taxes, making decisions with respect to spending the public
money, deciding ways for delivering best services to public. The public services comprise of
services like national health, police & armed forces (security related services), welfare benefits
and energy supply. There is a systematic process that is followed in UK for the purpose of
making law (Mulligan, 2022). There are two houses in the parliament namely the House of Lords
and the House of Commons. The making of a law starts by a proposal for the new law or for
making changes into an existing law. This proposal is known with the term Bill that is further
debated before parliament. The proposal can be started by any of the house of parliament.
When the bill is proposed by the house of lords the first stage to which a bill passes
through is called first reading. In first reading the formal introduction of bill takes place which is
done without any formality, at this stage the member of such house who is in charge of the bill
reads a long title that states the bill’s content. After this it gets printed. Then comes the next stage
namely, second reading, giving chance to the member of such house to debate over the principles
and the core motive of the bill. At this the concerns and changes the members suggests are
flagged (Williams, 2022). The names of the members who wishes to debate upon the bill are
added into the speakers list before second reading takes place. The minister of government, and
spokesperson having the responsibility of the bill opens such a debate. At this stage the interested
members suggests the changes that should be made in the bill. The in detail line by line
examining of bill is held in the committee stage. A marshalled list is published before committee
stage including all the amendments in order. The update in this list is produced prior to each day