Business Law: Sources, Role of Government, Impact on Business, Formation of Business Organizations, Funding and Management

This report discusses the sources of law, the role of government in creating and applying common and statutory law, the impact of company, employment, and contract laws on businesses, the formation of different types of business organizations, and the funding and management of various forms of businesses.

Business law

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................3
P1. Sources of Law.....................................................................................................................3
P2. The role of government in creation of law and the application of common and statutory
law in courts. ..............................................................................................................................4
P3. Using specific examples illustrate how company, employment and contract laws has a
potential impact on the business. ...............................................................................................5
P4. Formation of different types of business organisations. ......................................................6
P5. Discuss the Funding and Management of the various forms of businesses. ........................7
P6. Suggest appropriate legal solutions to resolve the areas of dispute......................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business are generally all the commercial practises through which all the goods and the
services are being made for the individuals in order to manage their engagement and the up
lining activities in competitive market areas. The main aim of the company is to protect and
regulate all the best services which are needed to be provided to all the individuals. In UK their
can be seen business law manages all the rules and the regulations through which the rights of
the customers, competitors and the other individuals are being protected. Some of the major laws
which are being covered under it are like contract law, employment law, IPR and many more. in
this report their will be discussion about different sources of law along with the role of the
government for managing all the regulations and the rules. The discussion about the work of
employment law, contract and comps any law(Bookman, 2019). Further their will also be
provided a case scenario in which all the legal alternative dispute resolution will be applied.
TASK
P1. Sources of Law
UK implies to have the unwritten constitution and their implies that it covers partly
written and not wholly codified laws. Their main aim is to protect the rights of the individuals
and also to maintain all the regulations in the people. Their can be seen that so many
applicability of the duties are being made through which the justice can be attained and the
protection can be applied for all the people. Their can be seen that their consist of different
sources of law through which the duties and the rights are being managed. It is been implied that
the parliament manages all the sovereign authorities and the rights through which they enact the
law making process. It is been seen that there are mainly two important sources of law which are,
Primary sources where all the law making are given on the hand of the authorities which have
the power to manage the legal implications. In this the legislature who carries all the law making
power through which the house of people and house of commons are made who helps in making
and amending the laws. Other then this the judicial precedents are under the primary sources as
they are all the case laws and the judges made laws,m where all the judgement which are raised
by the judges will be effective as the binding source of law it is also the common law which
plays an important part in all the UK constitution and the law making and management. And

then there are treaties and the conventions which helps in applying and maintain all the legal and
the other contemplated relations within the countries or globally(Cappellino, 2020).
Another important source is the secondary in which all the elaboration and the
discussion s being made through all the research work. It involves all the law journals in which
the legal dictionaries and the details regarding the relevant case laws are being untaken, legal
encyclopaedia which provides all the legal; details and the digests which are being made for all
the effective legal knowledge. Other then this textbooks are also one of the prime sources as this
provides all the articles, rules and the other important sources for the students.
P2. The role of government in creation of law and the application of common and statutory
law in courts.
In UK their is been seen that the constitution is one of the important element through
which all the rules and the regulations are being applied. Their is been seen that the legislature
plays a vital role in managing and applying the regulations(Clarkson and Miller, 2020). Their are
generally two important houses in UK which are House of lords and House of people all the
further rules are made with the general discussion and the assent by the members. For this the
bill is being made by the houses on important amendment or the applicability which will be
drawn from various stages. Their are some of the major outlining steps that are required to
maintain the laws and they are given as under: First Reading- This is the primary stage in which all the introduction of the bill is being
made and their applied all the general discussion regarding the topic of the bill. In this
stage the bill is being proposed to all. Second Reading- In this stage the members will manages the reading and they will apply
the discussion about the need of the topic and their will also be given the drafting fro the
positive and the negative aspects. Committee stage- In this stage the general discussion is being made and all the main
elements and the issues are being discussed by both the houses(Eisenberg, 2020). Report stage- In this stage all the necessary changes and the amendments are being made
for the bill in order to manage and cover all the discussion on the prior stage. Third reading- In this stage there is made general voting through which all the members
generally discuss and maintain the proposed draft to be discussed accordingly.

 House of lords- Through this stage all the loopholes and the prior changes are being
made and their applies all the value and the general areas of the bill along with the
necessary changes and the loopholes being made in all of them.
 Royal assent- this is the final stage in which when the bill get the assent of both the
houses it will be passed in order to manage the formality and here the codification of the
law is made. The royal assent is being taken in this and once the monarch provides a the
asset this will become a law and will be owned and applied on all the individuals.
Further their is been seen that the statutory and the common law are the most important
part in all the law making their implicated that all the court of justice managed the rules and the
conduction through which the general principles and the applicability is being assigned. Court of
justice manages all the abiding rules and the further existence of the laws through which ball the
resolving of the issues is being made(Faulkes, 2018). As the rules which are being made by the
judges are contemplated as the judge made law or the judicial precedents and their it is being
given that all the case law and the judgement that are being given by the judges will be effected
as the binding force on all the 9individuals and the lower and subordinate courts(Абдуллозода,
2020).
P3. Using specific examples illustrate how company, employment and contract laws has a
potential impact on the business.
In the legislation their is been seen that all business organisation need to follow some
strict rules and implications through which all the rules and the abiding norms can be enforced
while making the general transaction and the commercial practises. Some of the important laws
which helps in providing the legal rules are like: Contract law- This provides all the agreements which are being enforced by the law are
covered in it. This implies that when any agreement is made in the parties for managing
and making any of the work then in all much areas and cases the agreement is applied
which are managed by the court. This helps the parties to get the protection from all the
breach which are made by the other party. As this generally have some essential elements
which are like offer, acceptance, consideration and legal intention without this no
contract can be made. In order to manage the contract law then their implicated a
prolonged areas and the nature through which all the abiding rules and the procedures are
addressed(Halbert and Ingulli, 2020).

 Company law- This act is made in order to manage and maintain all the laws and the
regulation as the company law provides the systematic rules which are applied through
all the ensuring areas and the norms where the ambit and the further management is being
laid. It helps in incorporating and attaining the compliances through which the smooth
functioning and working is applied. It is a separate legal entity and this also have their
own perpetual succession through which they impose and generate all the penalties and
the legislative rules and norms.
 Employment Law- It manages all the laws and the regulations which are being required
in managing all the effective working in the companies. This helps in managing the work
life balance and the efficient relations between the employers and the employees. This
considers to have all the responsibilities for all the terms and tenure and make the work
force to gain protection from all their issues. It generated the rights and the regularities
through which the employees majorly gain the rights and the protection from all the work
and the principles(Igartua and Hayes, 2021).
P4. Formation of different types of business organisations.
Their is been seen that business organisation have majorly varies kinds and forms which
manages the functioning of the company and the firm. In order to manage the smooth
functioning of the companies there is required to have the proper process for its formation. The
said processes of incorporation of different forms of business is as follows-: Sole proprietorship- It is mainly all the small scale business practises in which the
business which are being managed are through the single owner and they are bound to
carry out all the responsibilities. It is mainly being initiated and managed through small
amount of capital formation and this applies the further registration and the formation. It
is registered through the companies house and are counted as the separate legal entity. Partnership- In UK Partnership is governed by the Partnership Act of 1890. This law
provides that the partners should act with fairness and in good faith laying down
provisions stating the roles and responsibilities of partners. this is mainly all the laws and
the working patterns in which two nor more individuals work together in order to manage
the maximum earnings and there is given that all the profit, loss, liabilities and the assets
are mutually being shred together in all of them. The partnership companies are said to
be incorporated with the outlining of the partnership deed which states all the shares and

ratios in which the partner needs to work . Later, the firm is said to be incorporated when
the same gets its registration done from the house of companies(Kumari, 2020). Private limited company- this is governed by the Companies Act of 2006 in UK which
provides a legal identity to the company of a professional entity. These are the
organisations which are owned by the private members that is by non governmental
enterprises. Generally, these sort of companies do not offer there shares on the platform
of stock exchange for the raising of capital. Instead the stocks are privately owned and
traded. The private limited companies gets the benefit of the title of separate legal entity,
which is the both the company and its directors have their own separate legal obligations
and rights to perform. For the incorporation of this form, the ground measure is of the
compliance of the required documents and fees to the house of the companies. After
which the registrar of the companies, on his discretion, gives or denies the assent for
registration. And after being fully satisfied gives the certificate of incorporation of the
company(Kushare, Kabra and Ghotekar, 2019).
 Public limited company- It is defined as an entity, whose share are listed in the stock
exchange. Also, in terms of liability theses firms enjoy the limited form to it. Moreover,
there lies a process which needs to be fulfilled in order to get the business registered. The
very first is of the minimum number of shareholders which is in most of the case is seven.
And also the minimum number of directors as mentioned in the statutes. The other is the
mandatory requirement of at least one director for the purpose of Digital signature
certificate. The other step is of the compliance of all the documents to the companies
house along with the said costs. The documents includes the AOA and MOA. The last
step is of the issuance of certificate of incorporation by the registrar which confirm the
existence of the company.
P5. Discuss the Funding and Management of the various forms of businesses.
The activity of managing includes that how the affairs of the business on the regular basis
are get managed. Whereas in funding, is the way in which any business acquires it capital in
order to start or continue the enterprise. Each forms has their own different ways to manage and
fund the company which is been discussed as follows-

Sole proprietorship: with respect to the funding, the primary sources from which the proprietor
acquires its capital are of his own personal saving such as the retirement funds, borrowings from
relatives, retained profits and some small loans from the banks. Other than these, there are also
lies the option of use of grants and credit cards. The use of certain amount of profits in the form
of reinvestment is also the way in which one can have the funds but this stands effective only
when the business id of continuing nature which is it should not be the newly established.
Moreover, with respect to the management of the business, it is wholly and solely controlled by
the owner himself. The owner has the rights to delegate the right to act in certain way or to carry
affairs of the business in some special circumstances to some other person(Robison, 2021).
Partnership: In these forms of business with respect to the funding, as similar to that of the sole
proprietorship, the primary sources of acquiring capital are of the personal savings of the
partners. The bonds, retirement funds, and retained profits are also the ways in which the capital
can be arranged for these types of businesses. Also the way of crowd funding and venture capital
funding are the other new emerging measures. Moreover, the business is controlled and managed
by the partners themselves either by all of them together or any one of them acting on behalf of
others. The affairs of the business can also be at sometimes, controlled by the person such as
managing partners in discretion or guidance of the actual partners.
Private limited company: The major sources which are available for raising capital for private
limited companies are bifurcated into two categories which are the internal and external options.
The internal option are of the various deposits from its members including its employees,
directors and also their relatives. The additional issuance of shares is also one of the option of
internal funding. Whereas, the external funding includes the finances from banks, angel investors
and venture capital, etc. further, with respect to the management the private limited companies
are owned by the share holders and managed by the managers. Generally, these types of
companies are managed by its directors and they are said to be the responsible for the affairs of
the organisation.
Public limited company: In these form of company the capital can be acquired by many ways
out of which one is by trading of goods and services. The other is of the by issuance of shares in
the market. Further, the option of initial public offering is also one manner in which the capital
can be raised. Now, with respect to the management, the company is controlled by its
directors(Sarah and Vida, 2020).

P6. Suggest appropriate legal solutions to resolve the areas of dispute.
Alternative dispute resolution is a method in which the conflicts are resolved between the parties
in the presence of a third impartial person who assists the parties in reaching to a solution. In this
the issues are resolved outside the court which means this is the process which takes place before
going for the solution of litigation.
 Negotiation is a method where an informal discussion takes place between the parties
who are the part of conflict in presence of the negotiator who aids them equally in order
to result to some conclusion (Schwidetzky, 2018). The option of this process is more
justified for the conflict of Gordon and Fred because here both the parties can freely
negotiate on the terms of wages as whether they are maintainable or not. Also as this
process is more of an informal nature therefore stands appropriate for the issue of
ascertainment of wages.
 Mediation is a type of process where a mediator is involved and he is the one who gives
directions to the parties which are involved in a case. Mediation involves a healthy
discussion where issues relating to the case are talked and discussed(Stražišar, 2018).
Thus, this case is a similar issue relating to mediation where according to Janet the
charges were unfair and thus there is requirement of a mediator who can give impartial
and unbiased recommendations so that with the conclusion all the parties involved in the
case can benefit in an equal manner.
 Arbitration is a method of solving conflicts with the help of the arbitrator who acts on
the decision made by the arbitrator is binding on the parties which are involved in the
case. Thus this process where an application was made is a serious issue because it
involved the question of winding up of a company making it seriously concerning. This is
the reason why a formal type of process is needed to conclude the case and to reach a
decision by applying proper method and procedure(Wial, 2018).
The legal comparison of the Alternative Dispute Resolution method makes it clear about
its effectiveness and also about the differences which are involved in its meaning. But it is clear
from the definition of ADR that the decision made by the ADR is binding in nature but when it
comes to mediation there is no legal binding of the decision taken by the mediator. It is also
important to understand that the decision taken by the negotiator while negotiating between the

parties in a case is also not lawfully binding. But can become enforceable when it is listed in the
contract on a later stage between the parties.
CONCLUSION
From the above report it can be concluded that various business laws in compliance with
the other major laws such as employment and contract are the aspects which plays a very crucial
role in the affairs including its management and control of the business. The said laws specifies
various rules and regulations which the prevailing businesses needs to comply with in order to
get escape from indulging in any sort of liabilities. It also considers the variables which are
available with respect to each business form detailing its way of funding and management. The
efforts has also been made for the comparison of different forms of alternate dispute resolution
which are the negotiation, mediation and arbitration. Further, fir the last part which is of the
three different case scenarios, the report suggests the best legal solution out of the available
options in according with only after assessing the facts and point of conflicts of each case.

REFERENCES
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