Business Law: Sources, Role of Government, Impact on Business, Legal Forms and Funding

Unit 7: 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 of courts....................................................................................................5
M1 Analyse the effectiveness of the legal systems 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 ..................................................................................................6
M2 Analyse the potential impact on business through difference between the legislation,
regulations and standards............................................................................................................7
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 the judgements. ........................8
PART 2............................................................................................................................................8
P4 Explain how different kinds of business organisations are legally formed...........................8
P5 Explain how business organisation are managed and funded ...............................................9
M3 Analyse the advantages and disadvantages of the formation of different kinds of business
organisation. .............................................................................................................................10
D2 Critically analyse the formation of different kinds of business organisation .....................11
P6 Compare and contrast different sources of legal advice and legal support for the dispute
resolution to make appropriate recommendation to legal solutions. ........................................11
M4 Recommend legal solutions for resolving a range of disputes, using examples to
demonstrate how a party might obtain legal advice and support .............................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law is defined as the core area of legislation that are important to consider in
order to secure the right of the individual and organisation. The emergence of UK legal system
take place from the common law system that is based on the principle of equity that provides fair
and just treatment to all the individual. It provides comprehensive framework that monitors,
governs and regulates business activities. It is important for an organisation to create sense of
belongingness and harmony among the people so that they become satisfied at workplace to put
their efforts towards the organisational goal. Employees are the asset of the organisation who
contributes in performance of the business. The regulatory framework of UK imposes an
obligation over the organisation to secure the interest of its employees to promote their retention
and prevent conflicts among the other employees. Business Law covers range of protection that
are provided through different legislation including employment law, contract law and company
law etc. according to the nature, type and size of the business (Aguda, 2018). This report will
cover various sources of law and its impact on the business organisation. Further, it will analyse
the current reforms that take place in the economy of UK. Also, it includes significance of
financial resources that must be properly utilised and managed and mechanism that provides
amicable settlement of dispute through Alternative Dispute resolution mechanism.
TASK
P1. Explain different sources of law.
The UK legal system is varied and diverse as it provides various detailed legislation that
safeguards the right and interest of the individual. It is unwritten and uncodified, based on the
Principle of equity that provides just and fair legal system to all its citizens. Legislation and case
laws are considered as the primary sources of law in United Kingdom. The legislative authority
is the law making body that frames statutory policies and regulation to enforce their legal right.
Primary Sources of Law
The Common law is the primary source of law that is identified as the law of land and plays
significant role in the growth of English legal system. The role of International Convention,
treaties, customs etc. are important to give legal existence to the rights of the citizens. Also, case
law is the another source of law that is used as judicial precedent, derives through different
judicial matters (Akhtar, 2020). It act as a judicial precedent for the lower court and help them to

decide the similar issue arise in any of the case. Although, legislation is made with the help of
proposed Bill that are presented before the two Houses of Parliament who gives their assent to
the Bill to implement it as a law. However, legislation palsy signifiant role in maintaining law
and order in the society. Law is a set of rules and regulation that governs the behaviour and
conduct of the citizens. It influences the act of the individual and reduces the crime rates in the
society. The judicial authority contributes in securing the right to access justice of the victim as it
is their fundamental and legal right. The power of legislative body is divided into two parts
named Delegated Legislation and Primary Legislation. In Delegated legislation, some authority
has been given to the Delegated legislation to frame its own views for reducing the burden over
the legislative authority especially when the Houses of Parliament is not present to make
necessary laws.
P2 Explain the role of government in law making and how statutory and common law is
applied in the justice of courts.
The development of English legal system derived from the common sources of law where
principle of just, fair and equal treatment are applicable to settle the dispute between the parties.
The paramount objective of UK legal system is to impart justice and ensuring safety and security
of the individual. Government are the official authority that exercise their roles and
responsibilities to penalise the offender by imposing strict penalties over them so that individual
can live freely without any stress and fear (Ali, 2018). The government are the executive
authority that enforce the right of the individual and facilitates their safety within the territory of
nation. The main objective of government is to promote social welfare and justice in the society.
Common law and Statutory laws in the judicial system
Common law and statutory law are dealt with two different forms of law in which one is codified
and another is uncodified. Common law is the unwritten and uncodified legislation that is
identified by various International Convention, statutes and customs etc. It is a procedural law
that provides detailed knowledge about the legal proceedings and formalities that are required to
claim Justice from the court system. Whereas, statutory law is the substantive law which is
written and codified that provides detailed framework to implement statute and laws in the
society that are binding in nature and have some legal consequences. These laws are effective to
fulfil the needs of the society and ensuring the peace and security in the country.
Role of Government in law making process