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

This report elaborates on the sources of law, role of government, impact of employment, contract and companies laws on business, and formation of various types of business forms. It covers the Companies Act, employment Act, and mercantile laws. The report also suggests legal solutions for disputes. Get study material, solved assignments, essays, and dissertations on Business Law at Desklib.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................2
P1. Elaborate the different sources of law .................................................................................3
P2. Elaborate the role of government in the making of law and also the application of
common and statutory law in the court of justice. ....................................................................4
P3. Using specific examples illustrate how the employment, contract and companies laws has
a potential impact on the business...............................................................................................6
P4. Explain the formation of various types of business forms. ..................................................7
P5. Explain the management and funding of the different forms of business ...........................8
P6. Make recommendations of legal solutions that can be applied to solve a range of disputes.
.....................................................................................................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................11
INTRODUCTION

The affairs of the business for its continuous growth, must be managed and regulated in
accordance with the business laws of the country which mainly comprises of the Companies Act,
employment Act and mercantile laws. Also the conduct of each business are required to be taken
in a way which lies in accordance with the stated legislations. Also these laws states the duties
and obligations for the part of individuals as well as of the bushinesses which they must adhere
to in order to escape from fetching any legal actions. The said legislation also mentions the way
in which the company is formed and at later stage how the same is need to be dissolved. The
following report is going to elaborate the various sources of law. Also it describes the ways in
which the government carry out with respect to the making of laws of the country. Further, it
specifies the applicability of the civil as well as common laws in the court of justice. The report
also mentions the various forms of business along with the ways ion which they are managed and
funded(Abdul-Malak and Senan, 2020). For the last part of the report, there are suggested the
various legal solutions depending on the facts of each given case studies along with the
comparison of different types of legal solutions.
MAIN BODY
P1. Elaborate the different sources of law
The legal system of the country is based on the aspects of both common as well as civil
law. Every court of the country are required to work in accordance with both the types of laws
for ensuring that the proper and fair justice has been delivered in the society. Which means that
courts must adhere to the codified legislations of the country along with the judicial precedents
laid down by the superior courts. Other than this the apex court of the country which is called as
the supreme court is the one who deals with all the matters related to appeals which lies from its
subordinate courts. Moreover, the source of law are mainly classified into major types which are
the primary and secondary sources.
The very first being the primary sources are the one which are considered as the original
sources of law and are codified in the form of legislations by the law making process of
parliament. The only authority which enjoys the power to makes such laws in the United
Kingdom is the parliament which further comprises of two different house named as house of
people and house of lords(Bradford and Creutzfeldt, 2018). The legislation and judicial
precedents falls under the head of primary sources which are explained below-

The Legislations are the codified form of law which mainly are designed by the
parliament. The formation of a legislation starts with the outlining of the draft where it is require
to go through the various stages of the law making of parliament. Every law comprises of certain
conduct, duties and obligations in which the individual as well as the other corporate bodies are
required to act. The other being the Case laws which are also addressed as the judicial
precedents. These are the result of decisions of the courts which they deliver which dealing with
the cases. Not ll the decisions of the court are considered as the judicial precedents reason being
the only the decisions of the superior court stands binding on all its subordinate and inferior
courts.
Furthermore, the Secondary resources comprises of the sources such as textbooks, law journals,
parliament debates, legal dictionaries, etc. These are not reasoned as the original sources of law
and mainly has been resulted in the form of drafts or documents from the dialogues of the
original source. The mentioned types of secondary sources are explained as follows-
The parliamentary debates lies in the kind of green and white command papers , the resulted
drafts of debates which takes place in the parliament with respect to any law, official
publications, etc (Charlson, 2020). It is said to be one of the crucial source as it aids in
ascertaining the actual objective behind the making of legislations. Other being the legal
encyclopedia and legal dictionaries, are the tools which aids the individuals for the purposes of
legal research. This in many ways proved as an effective source as in this the information in
relation to any subject matter lies in the form of summaries and short briefs. One example of this
type can be Halsbury Laws of England. The other type is of the law journals, is a tool which
focuses on the publication of the wide range of legal issues. It comprises of the information and
data for the every possible areas of law. One relevant example of this can be the Hein online.
Other being the
Textbooks, mainly are the creation of the renowned academic writers. For an individual to start
with any form of research this is considered as one of the simplest way. The Criminal Law Book
of Smith & Hogans is one such example of this type(Duddington, 2019).

P2. Elaborate the role of government in the making of law and also the application of
common and statutory law in the court of justice.
In United Kingdom, for the constitution of any law there lies certain number of stages to
it. The parliament is said to be the only body which is authorised for the making of laws and
regulations for the country. The creation of laws is an very important task for any country as the
whole working of it works in accordance to that therefore, for the said process of law making the
person having high knowledge and skills are required. The parliament comprises of two house
which are the upper and lower house named as house of lords and house of people. The process
of law making comprises of various stages through which the every draft has to go through in
order to get the status of codified legislation. The said stages are as follows-
The very first stage is of the First reading, where the title of the draft which seems most
relevant in accordance to its subject matter is allotted to the draft after which it is sent to the next
stage of the second reading(Fagan and Rubery, 2018).
Second reading, in this stage the forwarded draft is subjected to elaborated discussion
with respect to the different features of the draft along with its possible negative and positive
effects which the draft is going to make on both the country as well as on the society.
The other being the Committee stage, at this particular stage the aspects of the draft
mainly with respect to its title, subject matter and its issues are discussed by the members of the
parliament.
Further, other is the Report stage, where all the changes and amendments which has
been discovered at the committee stage are made to the draft in actual sense(Zahn, 2020).
After this there comes the stage of Third reading, where the members of the parliament
are gives there assent in favour of the bill and after attaining the majority to it the bill is said to0
be passed in the parliament.
Next comes the stage of House of Lords, where the measures are taken by the members
in order to ascertain the possible impacts which the draft can make on the society.
The last stage is of the Royal assent, where the said draft acquires the assent to it in
order to get legal existence in the form of codified legislation. Out of all the mentioned stages
this is considered as one of the most important one as the assent from the queen of the country is
the must for the legal applicability of the draft (Giliker, 2018).

Other than this, as mentioned the courts of the country are mainly classified in two categories
which are the upper and lower courts and similarly in accordance to that there also the lies the
difference with respect to the application of statutory and common law. The higher courts are the
supreme court , high and appellate court whereas the lower courts are the divisional, country,
magistrate and family courts. The civil laws are the one which lies in the form of codified
legislation of the country and has been execute by the parliament. Other than this the common
laws are the result of the decisions of the judges which are made in the from of judgements.
Furthermore, the statutory laws which are the legislations are applicable in equal manner on all
the levels of courts. Whereas the common laws which are the judicial precedents are applicable
on inferior courts and that made by the superior courts.
P3. Using specific examples illustrate how the employment, contract and companies laws
has a potential impact on the business.
In order to carry out the dealings of the business in an efficient manner, every company
or organisation is required to follow the concerned legislations of the country. Some of the such
major legislations are the contract, employment and companies Acts. Moreover, the non
compliance of said laws effects the working and success of the business. Each above mentioned
Acts specifies the number of duties, implications and the conduct in which any individual or the
corporate bodies are bound to act with. Below there lies the more elaborated explanation of the
said legislations along with their legal impacts(Goldberg, 2019).
Company law: The Companies Act of 2006 is one of the primary legislation which looks
after the regulation of the organisation in the United Kingdom(Williams, 2022). All the activities
of the organisation are need to be carried out in accordance of this law along with the manner of
its incorporation and dissolution. With the pertinence of the companies Act, because of the duties
and responsibilities embodied in it, both the company as well as its members which for
examples the directors stands bound to comply in the given manner. But from the other view, the
stern compliance of the regulations can consume a lot of time and money on the part of the
company. Also, the organisation as well as its concerned members can be subjected with the
imposition of certain penalties and liabilities as a result of non compliance and non adherence of
the Companies Act.
Contract law: The agreements and contracts which arises out of the transaction which
takes place among the individuals as well as different corporate bodies of the business are

governed and regulate in accordance with the contract laws of the country. The contract act binds
both the parties of it to fulfil their part of contract. The parties are said to be legally bound to do
the acts or services to which they have agreed to do as per the terms of the agreement. Also, the
party who stands responsible for the breach of the contract is legally bound towards the other
party for the payment of damages and compensation. Moreover, the primary objective of this
acts is to ensure that the other party with whom the wrong has been done can be restored to his
actual position by the way of adequate damages and compensation. Further, the strict compliance
of the said laws can also result in the more consummation of the time and also the process can be
a lengthy one(Ivanovska Hadjievska, 2019).
Employment laws: This law has been outlined as the relationship of the employer and
their workers along with number of duties and responsibilities which they are required to adhere
on their part. One of the ground objective behind the formation of this act is that the conduct of
the employees as well as employers of the organisation can be taken care of. Moreover, with
respect to certain issues such as the exploitation and discrimination of the workers, that there
stands no such abuse with the workers within the work premises. The employment laws also
takes care of the issues such as measures with regard to the health and safety in the workplace,
appropriate leaves, the payment of minimum wages, the working hours, etc. also, every
organisation for the measure of effective running of the business is required to comply with the
employment legislations of the country as the management of employees is one such aspect
which directly leads towards the success of the organisation(Themistocleous, 2019).
P4. Explain the formation of various types of business forms.
The owner in order to start their new business or for expanding their continuing business must be
aware of all the other forms of business which are prevailing in the market. The ascertainment of
the correct form of business is one the major criteria which aids in the growth and success of the
business. Each form comprises of its own negative and positive effects. Some of the major forms
of business are explained below
Sole trader, it is one of the most simplest form of business which most of the business
owners in the country chooses for. It is also known by the name of sole proprietorship where the
owners are known by the name of proprietor and trader. In this form of business the affairs of the
business are solely managed and controlled by the owner themselves. Other than this with
respect to incorporation and dissolution of the business there lies no such formal process and by

the mere registration the business is said to have its legal existence. Generally ,as this type of
form operates on the small level therefore the capital which is required can be easily assessable
by the means of personal savings of the owners (Martin, 2018). It can also be acquired by the
way of retained profits, small bank loans, no interest borrowings from the relatives, etc. further,
with respect to the profits and liabilities of the business the trader alone is entitled to bear them
and also is alone entitled to enter in to the transaction which takes place in the name of the sole
proprietorship business. One of the major drawback of this form of business is that because there
lies no concept of separate legal entity therefore the owner can be made liable to settle the
creditors out of his personal belongings as well.
Partnership, in this form of business all the affairs of the firm are required to be carry
out in the manner as specified in the partnership deed as it is the only document which entails all
the related details of the firm. For the incorporation of this form some of the basic requirement
are that there must two or more individual bearing similar objectives in order to earn the profits.
All the concerned partners of the firm are entitled to have the equal share of profits and losses
and similarly are also bound for carrying the affairs of the partnership firm. Moreover, for the
process of incorporation and its dissolution the partnership deed plays a very major role. Also,
the registration of the partnership deed is a mandatory requirement of this form.
Private limited company, as the form of private limited companies does not benefited
with the status of separate legal entity therefore because of this this reason both the company bas
well as its members are treated in the individual capacity for the purpose of bearing the liabilities
and legal implications. Also, the registration of the company is a mandatory requirement in this
form as for that there lies a separate process to it which comprises of various stages which are the
ascertainment of the name of the company, formation of its MOA and AOA, availability of
number of required directors and shareholders, etc. After the fulfilment of these informations
one has to put forward it ahead to the house of companies in order to acquire the certificate of
incorporation in the name of the company(Monkhouse and Spiro, 2020).
P5. Explain the management and funding of the different forms of business
The functions of management and funding of each form of business differs from
that of the other based on different aspects. For the business of sole proprietorship, mainly it is
managed and controlled solely by the trader themselves and he alone stands responsible for
carrying out the activities and transaction of the business. Further, the capital in such business

are easy to access as can be retained by the means of personal savings and retained profits of the
owner. Also by the way of borrowings from the relatives and small bank loans the capital can be
acquired. Further for the form of partnership businesses, the partners of the firms in co-joint
manner stands responsible for the management of the affairs of the business. And similarly all
the partners are entitled to be the part of major decisions taken for the business. Other than this
with respect to the funding of the firm, it is acquired by the means of shares of each partners
which at later stage collectively called as the total capital of the firm. Also, by the means of
bonds, personal saving of each partners, crowdfunding, etc. funds can be collected for the
business of partnership firm. The other being the private limited company, the company is
managed by its directors and shareholders are said to be the owners of the company. Moreover
the ways in which the capital can be acquired in this form are by the issuance of shares to the
shareholders and also by the trading of goods and services in the market which results in the
acquisition of the profits
P6. Make recommendations of legal solutions that can be applied to solve a range of
disputes.
Alternative Dispute Resolution is the type of process which involves resolving disputes between
the parties which are involved in the case. It is basically the process which involves outside court
settlement that means the conflict are resolved in the presence of a third party who should be
impartial and not biased for any party that are in the dispute.
Case Scenario 1-
Legal Issue: Is the claim justifiable by the worker towards the employer in relation to wages?
Legal Solution- According to the facts that are given in the case scenario, negotiation is the
process that is most suitable for this case.
Justification- Negotiation is the type of process that involves parties between which an informal
discussion takes place due to the presence of dispute between them. The discussion takes place in
the presence of a third party who can be referred as the Negotiator. They are the person who
understand the concerns of the parties and try to resolve them by finding a solution so that
conclusion can be reached.thus, for the case the above mentioned process seems to be the best
the reason being that the dispute is related to wages between the employer and employees. An
informal discussion can really help them to bring conclusion in their conflict(Morrison, 2018).
Case Scenario 2-

Legal Issue: Are the charges justifiable that are asked for the services by Janet along with the
phone line charges?
Legal Solution: according to the given case scenario, the mediation process seems to be the best
option for the case parties
Justification: Mediation process basically involves having discussion between the concerned
parties by a third party that relates to the dispute among them which is resolved by the mediator
in an impartial manner. So Mediation seems to be the best option for the given case as there are
concerns among parties in relation to extra charges which requires assistance for reaching a
conclusion.
Case Scenario 3-
Legal Issue: Is the application made in relation to the purpose of winding up maintainable or not
by one of the creditors?
Legal Solution- According to the facts given about the company of Blackhorse, Arbitration
seems to be the most suitable option for them.
Justification: Arbitrator is the person who resolves the conflict that arises between the parties in
the process of arbitration. In comparison to others, this seems to more of a formal process as the
reason of the application is related to the winding up of the whole company(Riley, Prenzler and
McKillop, 2020).
There is a huge difference between each method of dispute resolution in relation to their legal
aspects. The decision made by the arbitrator is binding in nature and in the process of negotiation
and mediation the parties are not bound to follow the decision taken. But with respect to the
other mentioned above two cases, the parties have the discretion power to have one of the
method and its legal implication to resolve their dispute(Sillanpaa, 2020).
CONCLUSION
From the following report it can be summarised that the affairs of the business are
required to be carried out in the manner as specified in accordance of the legislations of the
country. The compliance of the said laws play a very crucial role for the growth an success of the
organisation. Each mentioned piece of legislation specifies certain number of duties and
obligations which one needs to comply with. Also the ways of funding and management also
changes with the change in the bus9iness form. The said report also recommends the best legal

solution out of the available legal options with respect to the given three case studies along with
their comparison.
REFERENCES
Books and Journals
Abdul-Malak, M.A.U. and Senan, M.H., 2020. Operational mechanisms and effectiveness of
adjudication as a key step in construction dispute resolution. Journal of Legal Affairs
and Dispute Resolution in Engineering and Construction, 12(1), p.04519051.
Bradford, B. and Creutzfeldt, N., 2018. Procedural justice in Alternative Dispute Resolution:
Fairness judgments among users of Financial Ombudsman services in Germany and the
United Kingdom. Journal of European Consumer and Market Law, 7(5).
Charlson, J., 2020. Briefing: Brexit and UK construction law: past, present and
future. Proceedings of the Institution of Civil Engineers-Management, Procurement and
Law, 174(1), pp.3-6.
Duddington, J., 2019. Ministers of Religion in UK Civil Law: Obstacles to Employment Status
and Potential Reforms to Achieve a Degree of Employment Protection. The University
of Manchester (United Kingdom).
Fagan, C. and Rubery, J., 2018. Advancing gender equality through European employment
policy: the impact of the UK's EU membership and the risks of Brexit. Social Policy
and Society, 17(2), pp.297-317.
Giliker, P., 2018. Examining English contract law in the light of Brexit–an end to the European
dream?. In Essays in Memory of Professor Jill Poole (pp. 14-32). Informa Law from
Routledge.

Goldberg, V.P., 2019. Rethinking the Law of Contract Damages. Edward Elgar Publishing.
Ivanovska Hadjievska, M., 2019. Exploring the link between non-profit law and the internal
governance of non-profit membership organisations: Legal forms and maintaining
indirect benefits in the UK and the Netherlands.
Martin, S., 2018. The Evolution of Good Faith in Western Contract Law. Available at SSRN
3177520.
Monkhouse, A. and Spiro, P.S., 2020. Employment Class Actions and the Gig Economy in the
US and UK, and Implications for Canada. Available at SSRN 3548317.
Morrison, C., 2018. Illustration for instruction and the UK higher education sector: Perceptions
of risk and sources of authority (Doctoral dissertation, King's College London).
Riley, M., Prenzler, T. and McKillop, N., 2020. Alternative dispute resolution and mediation of
complaints against police in Australia and New Zealand. Police practice and
research, 21(1), pp.3-17.
Sillanpaa, T.M., 2020. Freedom to (Smart) Contract: The Myth of Code and Blockchain
Governance Law. ISLRev, 7, p.38.
Themistocleous, C., 2019. Employment status in the UK: implications for business
owners. Journal of Aesthetic Nursing, 8(2), pp.92-94.
Williams, M., 2022. Rule of Law Without a Constitution in the UK. In Judges and the Language
of Law (pp. 141-188). Palgrave Macmillan, Cham.
Zahn, R., 2020. Finding New Ways of “Doing” Socio-Legal Labor Law History in Germany and
the UK: Introducing a “Minor Comparativism”. German Law Journal, 21(7), pp.1378-
1392.