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

This article explains the sources of law, role of government, impact on business organizations, and management and funding in business law. It explores different types of business organizations and evaluates the effectiveness of the legal system in terms of recent reforms and developments.

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..............................................................................................................................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 judgements................................8
P4 Explore how different types of business organisations are legally formed...........................8
P5 Explain how business organisations are managed and funded with advantages or
disadvantage of an organization..................................................................................................9
P6 Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support. ............................................11
M4 Compare and contrast different sources of legal advice and support for dispute resolution.
...................................................................................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business laws are those set of legislation formed in order to set up business organization within
the legal framework of a country. These laws deals with various commercial and corporate
activities. Business laws are also studied with various laws used in an organization like contract,
company and employment law. Also they are helps in advancing business process making goals
and objectives achieved in more effective manner. Further these laws helps an organization to
perform its function with more efficiency. Business law has tendency to impact business growth
which makes business operations done in effective manner. In this file various sources of law has
been explained with the role of government in law making. Then various laws in relation to
business organization is covered wit different business organizations. Alternate dispute
resolution is explained in relation to provided case scenarios. Further legal solution and advice is
discussed.
TASK
P1 Explain different sources of law
Law are those legislation that has been formed to deal with various aspects existing
within society. They are responsible for providing legal aspect with penalties helping in
controlling crime of both civil and criminal nature. Laws are formed through different sources
based upon knowledge possessed in relation to identifying criminal activities and its nature. Thee
sources are of two types that is primary and secondary. Further it has been explained as follows:
Primary sources: These are the sources which holds basic knowledge about legal
perspectives of particular activity(Trad and Kalpić, 2017). Such sources provides first hand
information upon law required to be formed for well being of society. Further sources include
within has been explained as follows:
 Legislations: Legislation are those bill which is presented within parliament for becoming
permanent law applicable over a country. It is a important source making laws formed
through three stage reading process in United Kingdom.
 Case law: This is an important source as it helps in moulding laws as per the situation
existing within society. As per the source judgement is passed by judges in order to
procure justice in its original form.

Secondary sources: As per the source second hand information is provided through primary
sources which makes relevancy of law proved. These sources has been explained as follows:
 Encyclopedia: They are the sources defining about legal terms used within particular
case. It defines about laws terms in detail.
 Legal books: This is based upon knowledge that is provided upon topics that is used
under various laws. It helps law students understand about those concepts of various laws
making academic integrity achieved by law student.
P2 Explain the role of government in law-making and how statutory and common law is applied
in the justice courts.
Legal system within country helps in synchronizing laws as per the requirement possessed
within legal nature of country. There are three main organs which helps in regulating criminal
activities they are legislative, executive and judiciary. Further these organs makes laws formation
possible which has been explained as follows:
 Legislative: This is one of the most important organ that is used within law making
process of a country. Legislatives helps in forming laws by following three stage process
mention within constitution of a country. As per the process first stage only bill is
presented in parliament and discussion is not done upon it. Then comes second stage in
this bill is discussed in detail with voting is done over. The discussion is done in the
House of Commons. Then comes third stage in this bill is send to House of Lords for
final discussion. Fuhrer royal assistance is provided over bill and then it becomes
permanent law. This helps in making laws as per the aspects of society in more effective
manner(Trad and Kalpić, 2017).
 Executive: This is second important organ which makes law applicability checked in
effective way. According to the laws powers can be transferred to an sub authority after
delegated legislation. The organ makes laws acceptable within the society and under
executive police and administrators are covered. Also executives helps in performing
administrative work in smooth and effective manner.
 Judiciary: This is third important organ which handles work related to judiciary and
legal system. As per this judges has been given power to use laws for protecting legal
integrity within a country. They hold responsibility for protecting fundamental right and
constitutional framework existing within country.

There are two main laws that has been used within legal system of country which makes
applicability of law possible in judicial processes. Further the laws are statutory and common
law explained as follows:
Statutory Law: They are known as concrete laws which helps in proving solutions
within proceedings of particular case. Further statutory laws are formed through proper process
making laws to be more specific in nature. These laws protect legality of an existing legal system
of a country. It is used within the court to marl out judgements over particular case which is of
both civil and criminal nature(Hamdani and et.al, 2020).
Common law: These laws has been developed in order to provide powers to court of
passing judgement within a landmark case that can be considered later for crime of similar
nature. Such law is commonly based upon facts and laws applied within the case helping in
making judicial system independent in nature. The judgements passed can become law if found
that present law is irrelevant in nature. It is used by courts for punishing an person with a valid
reason and overlooking loophole of law.
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and developments.
Legal system of United Kingdom contains two main kinds of laws which are present they
are civil and criminal law. In civil law individuals commits wrong whereas criminal law deal
with crime taking place to harm public at large. Both the laws makes framework formed in
relation to law by allowing criminal code and civil procedure code formed. They are responsible
for making justice protected in effective manner making laws more relevant in nature. Under
civil law an individual's perspective is studied whereas in criminal law all perspective is required
to studied before taking any decision. In criminal law offences like murder, sexual assault,
extortion and fraud is covered. Civil law deals with issues related to tort, property issue, banking
issues and money laundering is deal with. They have helped legal system of UK enhance itself in
order to provide justice through covering loopholes existing in legal system. This made
legislation formed in more effective manner as laws is effective in making continuous progress
done within UK's legal system as per societies demand.

P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business.
Business organization seeks towards development of effective framework which makes
organizations various process completed in effective manner. In order to achieve this various
laws are used which has been explained as follows:
 Company law: Under this law business develop various features that makes business
process an operations conducted in organized manner (Born, 2021). Further the laws are
covered within Companies Act 2006 helping business organizations work in legal
manner. According to the act memorandum of association and article of association
requires to be formed by organization. Also the act covers about directors and
shareholders duties required to be followed within an organization. This can be
understood with the help of example that is VB Ltd for developing organization should
have its memorandum of association with article of association according to legislation.
 Contract law: These laws are developed to makes agreement attain shape of contract
with two or more than two parties. They can be in written and unwritten form which
results in causing expressed or implied manner. Further contract formed is based upon
various kinds of elements which are offer, acceptance, obligation, legality and validity.
For example CB Ltd has entered into contract with CF Ltd of supplying raw materials. In
this contract law is used over providing justification upon it.
 Employment law: In this laws rights and duties of employees is protected in more
effective manner. These laws makes employer and employee relationship more strong by
using various acts like Employment rights act 1996, Minimum Wages act 1986 and
Equality act 2010. Further an examples is given which is Altros has been working for an
organization like ASD and management fired the employees on the basis of skin colour
by managers. In this equality law is applied making discrimination problem solved at
work place.
M2 Differentiate between legislation, regulations and standards to analyse potential impacts
upon business.
 Legislation: In this laws formed by government is covered in relation to business
organizations. Legislation formed is required to be followed by an organization over
establishing working framework as per laws of country.

 Regulations: These rules are used by an organization upon regulating different process
which makes goals and objectives achieved in more effective manner. Regulations makes
organizational process run in effective manner making goals and objectives achieved
within time(Douma, 2017).
 Standards: It is based upon regulations and legislation through which ethical code of
conduct is developed within an organization. Through standards organization also
develops professionalism on work stations.
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.
According to legal system of United kingdom various laws has been formed from time to
time which makes strong framework formed over legal system of organization. Laws formed
within the legal system are complex in nature which makes legal process slow down. As per the
present legal system of United Kingdom changes should be made within the laws as it attains
rigidity within law. These laws should be developed as per modern standards which exists within
society which makes laws become more relevant in nature.
P4 Explore how different types of business organisations are legally formed
The business organizations operates within two main aspect that are unincorporated and
incorporated organization. This has been explained as follows:
Unincorporated organization: They are those business organizations formed through
complex process. Under it two main organizations are covered that is sole proprietorship and
partnership that has been explained as follows:
 Sole proprietorship: These are those organizations within which single owner is there
for an organization. All responsibility is hold by owners themselves in relation to
organization. As per this profit owned is kept by the owners themselves and nothing is
shared. In order to get organization register INHRC number is formed which makes
registration process fulfilled. This is an very easy process which makes registration done
in faster manner.
 Partnership firm: These organizations is formed with two or more than two persons
with common motive to earn profit. As per this firm risk, cost, benefits and responsibility
should kept in mind while forming it. There are two kinds of partnership firm which is

general and limited. In order to form the organization INHRC number and in certain
cases partnership agreements requires to be established.
Incorporated organization: These organization has been formed through complex
process that is formed. Under the heading two organization are covered that is public and private
organization. They are been explained as follows:
 Private organization: These organizations are that organizations within which shares is
not sold within public. Such organization uses Private Ltd in the end of organizations
name. In this all kinds of documents is collected and submitted to Companies House with
proper detail of an organization in order to get registration done(Singer, 2018).
 Public organization: They are those organizations that use Public Limited within its
name. Also its shares and debentures is sold to general public and covers about various
aspects making organization attain stability within its working process. In the process of
registration digital signature is required of all the owners and memorandum of association
is required to be prepared with all other documents like headquarters address and name of
shareholders. In this organization at least two directors are required with an company
secretary.
P5 Explain how business organisations are managed and funded with advantages or
disadvantage of an organization
Sole proprietorship: These organization are managed by the owner of business organizations
and holds duty towards all process of business organization. Funds are arranged through personal
relations. Further advantages and disadvantages has been explained as follows:
Advantages
 Profit earned by these organizations is attained by owners which makes revenue
generation possible in effective way.
 Process of formation is less complexed.
Disadvantage
 Funding at times cannot be arranged causing organization suffer heavy loss.
 Since organization is lead by one person which makes organization collapse
Partnership firm: These are those firms that has been managed by there partners and all work is
done by them. Funding is also done by partners themselves certain advantages and disadvantage
are s follows:

Advantages
 These organization is formed through smooth process.
 Partnership firm does not involve time and huge amount of money.
Disadvantage
 These organizations have legal status making partnership firm develop in running.
 These firms have limited access in relation to capital and only partners arrange required
for it.
Private organization: These organization is managed by directors of the company. Funding is
done through bank loan and selling debenture. Certain advantages and disadvantage are as
follows:
Advantages
 As per this an organization enjoys right of perpetual succession which provides
organization separate identity form its owners(Suder and et.al, 2018).
 These organizations provide long term success that helps organization grow at faster pace
in more effective manner.
Disadvantage
 Formation process consumes time and money which includes huge investment required
to be done in relation to process of organization.
 Divided ownership this is one of the most important disadvantage of private limited
organization.
Public organization: These organization is managed by owners and stakeholders within
business. Funding is done through government institutions, health programs, community
services, restoration programs, public service programs, and even environmental programs.
Advantages
 Public corporation has been formulated in order to make policies that makes promotion
of public welfare possible in more effective manner.
 This makes corruption handled in more effective manner to a extent over which delaying
in various process is also reduced.
Disadvantage
 This makes immunity from parliamentary as in this government should be involved
making day to day functioning handled in more impactful way.

 Public corporation makes government Formation process consumes time and money
which includes huge investment required to be done in relation to process of
organization.
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 solving dispute outside
the court. Further the process makes common point of agreement formed between parties without
going to court(Schmidt and Madison, 2021). This makes dispute solved in more effective manner
through applying various process like negotiation, conciliation, mediation and arbitration that is
used regarding dispute in more effective manner. The very first process is negotiation in this
meeting is held between parties through an negotiator making both parties come to common
point of acceptance. Second process is conciliation in this conciliator is hired making problems
solved by discussing upon it. Third process is mediation within which mediator is hired that
makes common point of agreement accepted by the parties. Final process is arbitration as per the
process an arbitrator is hired by the parties to solve dispute. It is the responsibility of arbitrator to
mark out judgement that is bound to be followed by parties. Applicability of these process within
various case laws has been given as follows:
In first case employment law is applied as Gordon is able to take wages for 2017 as per
employment contract. In order to take wages for 2016 and 2015 negotiation can be used which
makes both parties come to common point of agreement. In second case contract law is applied
with its element that helps in identifying he position of Jennet that she offeror and Vergin media
is acceptor. Further in the case mediation is used in order to make contract formation justified
between parties. In third case winding up is required to be done through liquidation which is
covered within company laws. Also in the case arbitration is applied through which arbitrator is
hired which makes judgement passed bound to be followed by parties.
M4 Compare and contrast different sources of legal advice and support for dispute resolution.
There are different disputes that take place on day to day basis which makes handling of
dispute done in better manner(Frolova and et.al, 2018). It is achieved through legal advice and
legal solution that is explained as follows:

 Legal advice: In this dispute is required to be solved through advice given by legal
advisor or any law professional. As per this problem is heard by legal personal and then
only advice is given.
 Legal solution: This has been provided by an lawyer or advocate after listening to all
facts and issue existing within a particular case. These solutions is been provided by an
advocate, lawyer through analysing fact and issues.
Dispute resolution can be applied in relation to legal solution which makes better
outcomes attained. Such solutions applied with ADR makes more relevancy and detail analysis
possible over any kind of legal issue that is required to be solved.
CONCLUSION
From the above discussion it can be concluded that business laws are those rules and
regulations which makes business organizations formed in more effective manner. These laws
leads over forming an business organization in more effective. As per the file things covered is
based over sources of law that helps in forming laws in more effective manner. Then organs of
government helps in forming law is covered. Further various kinds of organization with
advantages and disadvantage is explained. In the end Alternate Dispute Resolution is covered
with legal advice and legal solution.

REFERENCES
Books and Journals
Born, G. B., 2021. International arbitration: law and practice. Kluwer Law International BV.
Douma, W. T., 2017. The promotion of sustainable development through EU trade instruments.
European Business Law Review. 28(2).
Frolova and et.al, 2018. Improving the efficiency of hotel business through the use of tax
alternatives. In Financial and Economic Tools Used in the World Hospitality Industry
(pp. 29-34). CRC Press.
Hamdani and et.al, 2020. Regulatory Measures to Dismantle Pyramidal Business Groups:
Evidence the United States, Japan, Korea and Israel. European Corporate Governance
Institute-Law Working Paper, (540).
Schmidt, E. and Madison, A. D., 2021. Nonprofit Law: The Life Cycle of a Charitable
Organization. Wolters Kluwer Law & Business.
Singer, L. R., 2018. Settling disputes: Conflict resolution in business, families, and the legal
system. Routledge.
Suder and et.al, 2018. The Routledge companion to European business. Routledge.
Trad, A. and Kalpić, D., 2017, June. A neural networks portable and agnostic implementation
environment for business transformation projects the basic structure. In 2017 IEEE
international conference on computational intelligence and virtual environments for
measurement systems and applications (CIVEMSA) (pp. 153-158). IEEE.