Business Law: Sources, Impact, Formation, and Dispute Resolution

Unit 7: Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Sources of laws in English legal system.................................................................................3
Role of the government in making of law and application of them in justice courts.............4
How different laws has an impact on the business. Illustrate by examples...........................5
How business organizations are formed legally.....................................................................7
How businesses are funded and managed..............................................................................8
PART 2............................................................................................................................................8
Recommend various solutions for different disputes.............................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Commercial law is a set of legislations which governs the commercial or business
matters. As law evolves over the centuries, it has to adapt to the changes which made in society
and technology so that it can be complied in an effective manner. This a broad field which covers
many legislation under its ambit that includes employment law, contract, data protection,
immigration, company law and many others. It plays an important role in regulating the practices
of business so that there is confusion of chaos in organisation (Schulze and Zoll, 2021). This
report will cover the information relating to English legal system and impact of law on the
business. Further it will include formation of the business organizations and various legal
solutions for different disputes.
PART 1
Sources of laws in English legal system.
There is no written Constitution in UK so its principles and rights are enumerated in
various statutes and common law that are framed by legislative body and judiciary. The laws are
the set of rules of governs the working of the state and its citizens and comprises of various
penalties and restrictions in order to ensure its smooth running. There are many sources of UK
law which includes the following-
Primary
These are the original source of law as they are made by the bodies which have power to
enact the law. The primary source of law includes the following-
 Legislations: The UK has Parliamentary system of the governance wherein Parliament is
the superior law making authority. These are such law which cannot be challenged in any
court and takes precedence over common law due to the principle of supremacy. These
are called as statutory laws.
 Case laws: These are made by the judiciary from the judgement passed by them. These
have same relevancy as that of the statutory law as they have been evolved from the
changes in society. These are known as common law. Th judicial precedents are mainly
based on doctrine of stare decisis wherein the subordinate courts are bound to follow the
judgement of superior court (Chiappinelli, 2018).
Secondary

These are the commentaries on a law which are mainly prepared in order to bring clarity
in legal concepts and the rationale behind its formation. Some of the secondary sources are-
 Law journals: It comprises of specific area and general area of the law so that an update
in legislation is done. It is the combination of articles and case commentaries so that
understanding is brought on legal issues.
 Legal encyclopedia: It is the excellent way to initiate the law research as I comprises of
key issues, cases and laws. These are mainly made by lawyers or after consulting with
them.
 Text books: These are mainly written down by the academicians in order to start the
research on legal topic. It is aimed to bring clarity in legal issues and laws.
 Publication of Parliamentary and Non Parliamentary documents: It is aimed to bring
understanding on creation of law, its background and the discussion on the particular area
of law. It mainly consist of debates initiated in parliament while any law is being enacted,
command papers, etc. (Hee, 2019)
Role of the government in making of law and application of them in justice courts.
The Parliament in UK has mainly three core functions which includes, to represent the
interest of citizens, to monitor government's action and pass the laws. Their function is also
legislative in nature as it involves introducing the law on their own, reject or approve the draft
legislations and power to make amendments in it. As UK has parliamentary form of system, the
executive branch prepares the draft of laws and Parliament review, pass and amend it. The
process of law making is illustrated below-
 First reading: It involves reading the title of bill and also identifying date and members
to be present in second reading for the opportunity for debating on bill.
 Second reading: Now the bill is fully presented in Parliament and specific points are
outlined so that opinions are collected on bill. At the end, the votes are taken from House
as to whether the opinions are to be accepted or not.
 Committee stage: Now the bill is scrutinized and amendments are initiated. Every clause
is examined of bill by the committee of members and amendments are suggested. Votes
are taken to accept these amendments and it is re-drafted and then printed for further step
(Khan and Khan, 2020.