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

This article explains the sources of law, role of government, and legal impact on organizations in Business Law. It covers different types of business organizations and how they are legally formed. It also evaluates the effectiveness of the legal system and provides examples to support the judgments.

BUSINESS LAW

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
P1 Explain different sources of law ...........................................................................................4
P2 Explain the role of government in law-making and how statutory and common law is
applied in the justice courts.........................................................................................................5
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
developments. .............................................................................................................................6
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business...................................................................................................7
M2 Differentiate between legislation, regulations and standards to analyse potential impacts
upon business..............................................................................................................................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 judgements................................9
P4 Explore how different types of business organisations are legally formed...........................9
P5 Explain how business organisations are managed and funded with advantages or
disadvantage of an organization................................................................................................11
M-3 Advantages and disadvantages of formation of different types of business organisations.
...................................................................................................................................................13
D-2 Review and evaluate types of business organisations. ......................................................13
P6 Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support. ............................................14
M4 Compare and contrast different sources of legal advice and support for dispute resolution.
...................................................................................................................................................15
D3 Effectiveness of legal solutions, legal advise......................................................................15
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Business law are based upon the laws that has been utilized in order to form business
structure form as per legal organisation within country. This is based upon various legal
perspectives which helps in making government of country protect its project culture. Also the
law has been dealing with more effective working which make goals and objectives achieved
more effectively within business organization. The laws guarantee that system plays business
action makes organizations attain full perseverance which form goals and objectives achieved in
more impactful mode. Business law form different task of business structure done with more
ease and assist them in achieve stableness with development. Scope of these laws are broad as
the impact business role directly. Nature is dynamic as they have tendency to outcome business
form in both internal and external mode. The file includes sources of law, role of government in
law making and different business form has been explained in first task. In second task Alternate
dispute resolution process with legal solutions is covered.
TASK
P1 Explain different sources of law
Laws means those regulation which is used in order to make action taken regarding
activities that has been conducted within society. Also they have set legislation formed with laws
making organizations work as per factors which impacts peace of society. Laws are created
through various kinds of sources which are of primary and secondary nature making
development of knowledge about particular legal aspect with legal elements of society. These
sources are based upon two important factors which are given as follows with proper
explanation:
Primary sources: These are very first source that has been used in order to make
knowledge attained about various aspects helps in law making possible. They have been
explained as follows:
 Legislations: Legislation means those legislation that has helped in making laws related
over aspects which exists within society(Uniyal, and Sharma, 2018). This is most crucial
source which makes law arrangement done effectively.

 Case law: This is an important origin which helps in providing information over various
kinds case. It makes laws formed as per the facts and issues related to case making
judgement passed in more relevant manner.
Secondary sources: These are sources that is related upon information which provides with
primary sources. The source has been explained as follows:s
 Encyclopedia: These the sources which is provides upon information that is based upon
legal terms used in legal procedure this makes different terms to be understood in
impactful manner.
 Legal books: This form information furnish in relation over law and statute law helpful in
making knowledge attained by law students making academic goals achieved by them.
 The law journal as a sources, cover the extensive range of data either on some specific
area of law or in general. Some of the major database which comprises law journals are
the Heinonline, Westlaw UK, etc.
 The Textbooks, are one of the best thing to initiate a law research on any issue. It
contains several number of books which are been written by the academic writers.
Example of this can be the, Smith & Hogans Criminal Law book and etc.
P2 Explain the role of government in law-making and how statutory and common law is applied
in the justice courts.
Legal system is one of the most important part which helps in developing strong legal
structure leading towards developing legislations and law in appropriate manner. There are three
main organs that leads over law formation within UK. Further the organs has been explained as
follows:
 Legislative: They are one of the most crucial organ which is used in law making of UK.
Legislatives helps in making statutory legislations created with proper process that has
been adopted by parliament of UK(Shikha, Arvind, and Gupta, 2021). This process is
known as three reading system within which first stage includes presentation of bill by
the ruling government. Then in second stage bill is discussed in detail an voting takes
place over it in the House of Commons. Then comes third stage in this stage bill is send
to House of Lords with amendments and they send bill for Royal assistance. After the
assistance bill becomes permanent law

 Executive: This is second most essential organ which leads upon making execution of
law possible. The organ contains administrative authorities that has been given power to
delegate authority. It helps in executing laws with proper effectiveness and strong
interference.
 Judiciary: This is third most essential organ which helps in making laws created in more
effectual manner. 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. These laws are used within courts in order to conduct trials they are
statutory and common law has been explained as follows:
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 real sense(Sharma, and Mandal, 2020).
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and developments.
Legal system of United Kingdom is based upon various perspectives existing within
society. In United Kingdom there are two main laws which are used that are civil and criminal
law. In civil law individual are targetted 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. Both the laws has helped upon making legal aspects applied in practical
sense which makes legal authentication proved. Also these laws has make regulations and rules
formed in more effective way. The legal scheme of UK is based upon these laws making
loopholes covered in legal perspective of UK.

P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business.
Business organization in order to perform legal structure which make functions of
business run in more effectual manner. These laws used within organization has been explained
as follows:
 Company law: These laws are used in order to make organization attain stability within
its various process of organization. The laws has helped in making business operations
conducted more effectively. Also there are essential legislation that has been used in
order to make business arrangement function applicable legislation is Companies Act
2006. The legislation is used for creating memorandum of association and article of
association. Also in this duties of directors has been explained which is bound to be
followed by them. In order to develop understanding over it example is given that is BN
Ltd which is required for making establishment done of business organization for this
memorandum of association and article of association is formed as per rules of statute
law. But it also, at sometimes can become a hardship for the owners as the legislation
also charges several penalties as a result of certain faults or liabilities which have
occurred on the part of a company. This concern can very often increase the charges for
the organisation which ultimately leads to the fact having lesser profits
 Contract law: These laws has been agreement formed between two or more parties. The
laws has been working upon different aspects that makes agreement become contract.
Also contract law makes agreement become contract thus an contract can be in expressed
and implied in nature. The law is based upon different kinds of elements which are offer,
acceptance, obligation, legality and validity it helps in making validity of contract
achieved in the eyes of law(Roberts, Choer Moraes, and Ferguson, 2018). These
elements are interconnected with each other thus if any one element is absent then
contract is not formed. Offer is related upon presentation of idea which is related to
contract. Second element is acceptance which is done by parties over offer presented.
Third element is obligation which is based upon formation of rules and regulation that
has been formed in relation over contract and then comes fourth element related to
legality which makes contract formed in legal manner. Fifth element validity that helps in
making contract formed in legal manner. For example that is AER Ltd and KJL Ltd has

formed agreement that is based upon supply. So, for this purpose contract law has been
used in order to make contract become agreement which is valid in nature. But at the
same time the contracts entered by the several companies can result in a complex way as
the need to get abided by the said procedures and rules can be really lengthy and time
consuming for the organisation and this be proved as one of the major negative impact on
the situation.
 Employment law: These laws are used for protecting employees and solve issues that is
related to employee's. The law is focused upon making employer and employee state
more strong making tripartite relation developed within them. It covers about
employment and its various aspects is covered under statute law which are Employment
rights act 1996, Minimum Wages act 1986 and Equality act 2010. In order to make deep
understanding formulated about employment law example is given that is Gen has been
working in an organization but faces harassment in relation to cast by senior employee's
which made him quit the job. So, now he has right for suing employees under the
Equality act 2010. Moreover, every enterprise is required to adhere to the given
employment laws in order to have a smooth functioning and proper working of the
business, as the continuous conflict among the employer and its workers can hamper the
growth and productivity of the company. Therefore it is very much required for
businesses to work in compliance with the existing employment laws
M2 Differentiate between legislation, regulations and standards to analyse potential impacts
upon business.
 Legislation: These laws are permanent helping in developing legal framework which is
used by country in developing protection against atrocities. In this various factors are
kept in mind which makes laws and acts developed as per situations of society. These are
used in business organization for developing strong corporate structure making relevancy
proved upon internal and external process(Pandhi, Kumar, and Gupta, 2022).
 Regulations: They are used in making organization develop its structure which makes
business process conducted helping in goals and objectives achieved by an organization
with over all progress.

 Standards: They are based over ethical rules and regulation which is developed within
ethical code of conduct which makes discipline formulated within an organization. These
are based upon legislation and regulation as based of standards are created through them.
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 judgements.
In legal system of United Kingdom different laws are defined which helps in making
process developed developed in more effective manner. The legal scheme is one of the most
effective system of UK which exists all over world. Through these laws balance and discipline
created within an organization. This system has rigidity within its process making laws
applicability low. Also lot of time is invested in procuring justice making judiciary become less
transparent. Thus laws and acts which are used within UK should be applied in more effective
manner. The laws used must be amended as per modern farmworker of law which make more
transparency created within UK. It is appreciated with the helps of an example that is Workmen
compensation act 1987 which is an very old law and has been amended many times that makes
compensation gain easily.
P4 Explore how different types of business organisations are legally formed
In UK various kinds of business organization exists which assist in operating business in
more effectual manner. These organizations are covered under two heads they are
Unincorporated and incorporated organization which has been discussed as follows:
Unincorporated organization: These are those form that has been formed without any
complex process which makes operations conducted easily. Such organizations are used in order
to form various organizations operating on small level. There are tow main organizations which
are sole proprietorship and partnership that has been discussed as follows:
 Sole proprietorship: These are those organizations which are most commonly used for
setting up a business. The organization is based upon performing various activities easily
as such organizations are termed as sole business organizations. In this organization there
are only one single owner they are known as sole proprietor. Registration process is also
easy for such organization as only INHRC number has been generated and name requires
to commence business. Further, with respect to its incorporation there stands no such
legal postulates and by the mere registration of the enterprise in the house of companies ,
it can be started. Also unlike the other forms, the sole trader does not enjoy the status of

separate legal entity than of his business and hence is bound to entertain all the unlimited
liabilities of the said business.
 Partnership firm: In this kind of organization two or more then two persons come
jointly with common motive to earn profit. The organization has been operating with the
help of its partners. Formation process includes INHRC number and partnership
agreement is formed only when licensing is caught up or legality exists while opening
business(Ilina, and Klypin, 2022). The process of formation of this form requires some
simple basic steps such as the establishment of the partnership deed including all the
terms and conditions which will govern the concerned parties to it and last step is of the
registration of the same in the house of companies.
Incorporated organization: These organizations are related upon performing business
operations at corporate level which makes professionalism performed within its functions and
process as legal aspect is included in the organization. The organization are defined through
complex activity. In this two form are included that is private and public organizations they are
explained as follows:
 Private organization: These are those social group which is related over performing
business in relation to private activities. They uses Private Ltd within end of name and
share is not sold in public. The organization is formed by collecting all documents and
then submitting it to Companies House that makes registration done in more effective
manner. The said documents should consists of the chosen title of the company, its MOA
and AOA all the other details including the address of its likely registered office. After
the submissions, the registrar of companies, on being getting satisfied, issues the
certificate of incorporation and makes an official notification for the same. This very last
step of issuance of certificate of incorporation is said to be the confirmation that the
company has come into existence.
 Public organization: These are those organizations which works as per rules decided by
government. The organization uses Public Ltd in its end and shares are sold to public in
general. Under it various aspects is covered which makes organization attain stability
within its various process. Under it various kinds of documents like digital signature of
all owners, members of memorandum of association and other importation documents of
required to be gathered. The organizations are needed to make two directors and a

company secretary. The process of formation of this form of business requires several
steps which are as, first being to decide one appropriate title as a name of the company.
The other stage is of the designing of the memorandum of association and article of
association , which cover s all the information of the company. The other stage is of the
need of minimum number of shareholders and directors. The last stage requires the
submission of all the required documents to the house of the companies in order to get it
registered.
P5 Explain how business organisations are managed and funded with advantages or
disadvantage of an organization
Sole proprietorship: Management of such social group is done with the help of owner owing
the enterprise and all activities related to business is handled by them. They holds responsibility
for profit and revenue generation. Then funds are arranged through personal sources that
includes family members and friends. There are different kinds of advantages and disadvantage
which has been given as follows:
Advantages
 These organizations helps in making profit and all profit earned is kept by owner
themselves(Dey, Pandey, and Rawtani, 2022).
 Formation process is also easy which is based upon making all process run in more
effective manner.
Disadvantage
 Funds are arranged with lot of difficulties that makes organization face difficulty over
capital investment required for business.
 Also the organization is not able to handle heavy loss which makes its functions collapse
leading struggle in its existence.
Partnership firm: These organizations are managed by partners making working done in more
effective manner. All activities taking place within an organization is handled by partners
themselves. Funds for these organizations are arranged by partners themselves in direct or
indirect manner. There are certain benefit and disadvantage which has been explained as follows:
Advantages

 In this there are less formal obligations which is not legal in nature.
 Under it burden is shared by all partners commencing the business.
Disadvantage
 These organizations are not legally recognized which makes its face difficulties at times.
 As the source of accessing capital is less since partners arrange for it only.
Private organization: These are those organizations within which management is done with the
help of directors or person hired for performing business activities on behalf of owner. Funds for
these organizations are arranged through bank loans and debentures.
Advantages
 In this social group enjoys right of succession which form it separate entity from its
owners.
 Business privacy is that kind of advantage which makes private limited company function
properly.
Disadvantage
 Formation procedure means time consuming and money involves large that makes it very
complex in nature(CORNELIUS, 2021).
 Then another disadvantage is divided ownership making private organization face
ownership problems.
Public organization: Managements of these organizations are done by the shareholders and
stakeholders. In this funds is arranged with the help of government establishment, health
programs, community services, restoration programs, public service programs, and even
environmental programs.
Advantages
 Public corporation making formulation done by implementing policies which helps in
promoting public welfare.
 Also the corporation handles various kinds of society problems like red tapism and
corruption.
Disadvantage
 It helps in making immunity developed against enquiry of day to day functioning which
makes these problems effect functioning of business.

 Public corporation incur loss by providing subsidies which makes loss faced. As
subsidies are free services which makes functioning to be interrupted.
M-3 Advantages and disadvantages of formation of different types of business organisations.
Sole proprietor
Advantage: Decision making is solely in hands of sole proprietor, no intervention from any other
person.
Disadvantage: This type of business organisations have critical drawbacks of limited capital
investment as there is one individual to invest and manage processes.
Partnership
Advantage: As compared to sole proprietor, there are two or more individuals to handle business
and will be expertise in their fields to manage business effectively.
Disadvantage: Being two or more still makes it difficult to invest adequate capital to start
business operations.
Limited liability partnership
Advantage: It most prominent and important benefit is that it provides sources of funds
throughout existence of business.
Disadvantage: The only hurdle in this type of business structure is delay in decision making
process due to disputes and mismatch conclusions
D-2 Review and evaluate types of business organisations.
Limited liability partnership: In this type of partnership either all or few members have
limited liability towards organisation. It consists features of both partnership and corporation,
here negligence of any partner is not liability of any other partner.
Partnership: In such type of organisation two or more partners work together and share
liability and responsibility of organisation. The income generated here is divided and each
partner claim their tax refunds along with organisations tax receipts since it is not taxed
separately.
Sole proprietor: It is easiest form of business run by single person, this is not separate
entity in nature. It means all responsibility and decision making is in the hands of one person. In
here simple registration and can start-up the business.

P6 Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support.
Alternate dispute resolution system is the process which helps in making disputes solved
without going to court. This is one of the most effective system that makes cases solved in more
effective manner through such process burden of courts is reduced. It is important system
introduced in order to solve various disputes in which judiciary is not required to be involved.
Moreover, the each method of ADR possess certain effectiveness but at the same time there also
lies many differences while comparing their legality. As for instance, the award made by the
arbitrator is of the binding nature whereas the decision made by the mediator is not legally
binding on the parties(Rodrigues, 2018). Also the decision of the negotiator made during the
process of negotiation, in itself not enjoy the legality which is binding but the same can be made
enforced if the concerned parties later at any stage gets it incorporated in their contract.
This includes various process within that is negotiation, conciliation, mediation and arbitration.
In negotiation an person is hired to conduct meeting between parties and makes them agree over
common points which leads over better outcomes achieved. Then comes conciliation which is
applied after negotiation in this conciliator is hired making parties discuss upon matters helping
in developing agreement over point of discussion. Another process used is mediator that has
been applied over making parties come to common point of discussion which makes better
outcomes achieved. Then last process is arbitration within which an arbitrator has been hired and
judgement is passed making parties bound to follow judgement(Cohen, 2018). Further its has
been applied in relation over various case scenario which has been given as follows:
In the first scenario, Negotiation must be used in this as there was contract being signed
by the parties which is Mark and Oaks Furniture Ltd. The company has asked Mark to forgo its
salary for the year 2020 and in only receive commission but now that the company is flourishing,
he can claim the wages. Now negotiation can help in resolving this dispute in effective manner.
another scenario is of Jack and BT Media wherein the mediation must be used so that there is
protection being given to the goodwill of the company.
M4 Compare and contrast different sources of legal advice and support for dispute resolution.
There are different kinds of dispute that exists in relation over various cases which makes
tow kinds of legal aspects covered while handling dispute. These are legal advice and legal
solution which helps in solving dispute in better manner. They are explained as follows:

 Legal advice: In this only advice is given which makes legal advice attained in relation
to UK's legal aspect. The advice is given by UK professionals and makes legal personal
listen to problem(Adewumi, 2021).
 Legal solution: This solutions is related to laws which is applied in a case it is given by
lawyer or advocate making facts with issues discussed upon particular case. These
solutions has been given in relation to advocate, lawyer through analysing fact and issues.
Dispute resolution has been applied for making more impactful outcome achieved in
relation to legal advice and legal solution. In case of legal solution applied in ADR helps in
making relevancy with detail analysis possible over legal advice that makes issues to be solved
perfectly.
D3 Effectiveness of legal solutions, legal advise
Legal answer to resolution dispute furnish by challenge resolve panel is quite effectual as
a mediate result is render which is most appropriate to the parties caught up. When court is
interested to resolve resistance then decision of the court becomes valid on both the parties
involved. When out of the court settlement is done with respond of the parties caught up then
judgement of the arbitrator needs to be followed by both the parties interested in the dispute.
Dispute resolution panel gives most effectual solution and legal advise to solve different issues.
CONCLUSION
Business laws means laws that has been defined in order to make business structure
formed more effectively. These laws covers characteristic making business content achieved
with more effectual. The file inform about origin which is used for forming laws in a country.
Then law production process in relation to different organs of government is covered. Also laws
which is to be utilized by an social group in its arrangement of contract, incorporation and
creating employees satisfaction is been explained. These laws are company law, contract law and
employment law. The in this various social group with there advantages and disadvantages is
been explained. In the end alternate dispute resolution system is arillate with the legal solutions
and advice.

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