Business Law: Sources, Impact, and Formation of Business Organizations

This article discusses the different sources of law, including constitutional law, statutory law, and case law. It also explores the role of government in lawmaking and how statutory and common law are applied in the justice courts. Additionally, it explains how company, employment, and contract law impact business operations. Furthermore, it provides an overview of the legal formation of different types of business organizations and how they are funded and managed.

Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 different sources of law..........................................................................................................3
P2 role of government in lawmaking and how statutory and common law is applied in the
justice courts................................................................................................................................4
LO 2.................................................................................................................................................5
P3 How company, employment and contract law impact on business........................................5
LO 3.................................................................................................................................................5
P4 Explain how different types of business organisation are legally formed..............................5
P5 How business organisation are funded and managed.............................................................6
LO 4.................................................................................................................................................6
P6 Legal solution for resolving range of disputes .....................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
In every nation there are different types of rules and regulations which needs to be followed. The
rule and legislation is set up by government to manage and regulate business, company etc. They
need to be governed and their behaviour has to be analyzed. Business law refer to evaluating
company way of conduct, governing and regulating their operations in effective way.
Government plays crucial role in making of law. They govern and regulate various business
bodies as well. (Staub, 2019).
In this report it will be described about different sources of law. Also, it will be discussed about
role of government in law making and how it is applied in statutory law. Besides that, it will be
explained on how company, employment law impact on business. Moreover, how different types
of organization are legally formed and how business are managed and funded.
LO1
P1 different sources of law
The business law generally define the legislation that are appropriate for element of
enterprise. It is related to the organization legislation which comprises of different areas. In
additional, there are many enterprise which provide the law as one of prime concept at the time
of doing any management program (Thirlway, 2019). According to the concept of basic law, it
has performed the major function to maintain their overall structure of community, society with
some enlisted behaviors. Moreover, it can be identified the level of legal rule and regulation
which automatically violation that measured or identified by court law, justice. There are
different way to divide source of law.
Constitutional Law:
It is the first source of law which is known as constitutional legislation. Usually, it
applicable in every state. The constitution has been increased the legal system which always
focused on the issues or problem of local concern. The purpose of federal as well as state
constitution is to maintain or regulate the government action. In order to protect the individual
through constitution but they do not have follow themselves (Banks, Hendrix and Kyckelhahn,
2016). Moreover, this type of state constitution is written with words in particular subject to
more than one interpretation. There are various exceptions to other constitution which will
protect or secure.
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In context of security and safety, it always concern about the exception in order to protect
in public prisons, schools and institutions. For Example- The public school, prisons are generally
consider the certain style of dress in purpose of ensuring safety. Technically, it is forcing an
individual person to understand the right direction (Banks, Hendrix and Kyckelhahn, 2016). The
dress must be specified the violate which consider a right way to self-expression. However, it is
also wearing uniform that can lower gang related conflict within institution. The government will
help for maintaining and protecting the constitution with proper legislation.
Statutory Law:
It is the second source of law, known as statutory law. An appropriate constitution may
be applied to the government action and regulate both individual as well as private. The statute is
mainly written law which always enacted in the different manner. Many statutes are voted as
well as written into the specific law by other government branch (Hage, 2017). It is the simplest
way to determine the group of individual that are elected for purpose. Each and every state must
follow the legislation and codify their criminal statues into penal bar.
The statutory law is generally inferiors to other constitutional law. It means that statute
never conflict with another supersede right of constitution. At that time, court plays significant
role to resolve the conflict issues (Banks, Hendrix and Kyckelhahn, 2016) . If in case, it has
found the invalid unconstitutional statues which automatically control to use the judicial power.
Case Law:
The 3rd source law is case law. When judge rule and regulation on the basis of particular
facts so that it will create case legislation. The Federal case and state law comes from the courts.
The case law has its own origin in term of English common regulation. This was the contrast to
other countries which followed the Roman law system, which primarily relied on the specific
written code of conduct enacted by legislation (Maxeiner, 2018). It should be considered the
societal principle of legislation which mainly following the guideline and court issued their
rulings.
In modern community, there are many states and other federal government where they
can create the own judgmental policies. In order to support for maintain the fairness which
making up new crime and then punishing the individual (Banks, Hendrix and Kyckelhahn,
2016). However, it does not provide the better consistency and other predictability in their legal
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system. The case law still plays important role in the criminal case which help for providing
better regulation.
P2 role of government in lawmaking and how statutory and common law is applied in the justice
courts.
In worldwide, parliaments perform different functions such as represent citizen interest, to
pass and monitor law, perform legislative function. These are considered as an important for
introducing the legislation. Government has a power to amend, approve as well as reject the
legislation. They are strongly believed on the representation function. In this way, people know
that parliament receive its authority within democratic countries.
The exact means that Government is directly engaged in the law-making process which
varies depending on the type of system. The executive of government will support for
developing law and its primary role to review, amend and pass legislations. In this way, it
provide the greater opportunities to produce the laws before they can review (Banks, Hendrix
and Kyckelhahn, 2016). Sometimes, it also including the other authority which always
coordinate with parliamentary committee to develop rules and regulations. The staff members
need to be well trained in legal drafting and legislative review process. It often rely on the
specific external expertise to assess scope of law and its consequences.
Common law is based on the legal precedent that original made by judges sitting in the
court. Other provision which are generally applied the codified act of court but it constantly
changing (Banks, Hendrix and Kyckelhahn, 2016). Both statutory and common law applied in
the court where they interpret with legislation and using the knowledge of legal precedent,
common sense which applying the facts. Sometimes, common law opposed to the civil system
which relies on the status and certain texts.
Within court, Judges create the common law by delivering the proper written judgements
on the basis of particular cases (Wang, 2018). For Example- Magistrates court across wales,
England that are able to make and follow their own procedures. In this way, it could develop a
large variation in both regional as well as local customers. At certain level, it automatically
regimes which easily identified the barely recognisable from another one. Legal system is
identified on the basis of common law. On the other hand, statue law must be codified the certain
rules whereas it provide the interpretation, clarification among multiple case laws.
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LO 2
P3 How company, employment and contract law impact on business
A business has to to follow various types of laws and regulations. This is because they have to
work in ethical and legal manner. However, these laws highly impact on operations. It is as
below
Company act- it is an act formed in 2006 which is to be followed by companies. Here, it sets
accountability of many persons within a firn such as director, shareholder, manager, employee,
supplier etc. Besides the act safeguard right of employees within it and make things easy for
them. Moreover, it reduces burden of directors on company and he is responsible for protection
of confidential info of company. (Bahoo, Alon and Paltrinieri, 2019).
Health and safety act – the act was formed in 1974 where it safeguard right of employees. It
ensure that they are provided proper health and safety environment at workplace. It sets
responsibility of business to set up proper safety measures at workplace for staff and do risk
assessment. Alongside, they have to train staff as well on how to deal with safety measures. If
measure are not followed then legal action is taken as per act
Employment act- it is an act between employee and employer. This acts as creating a relationship
between both of them. Also, in that it is included about working time, minimum wages and other
rules and regulations which needs to be adhered by both employee and employer. Thus, the act
safeguard rights of employees by forming a contract.
Contract law- this law state the agreement between two parties which is done to provide a
product or service. In business contract are made between parties or supplier etc. Moreover, there
are several elements which is followed in it. There is great impact of contract law on business. It
is because if contract is breached then legal action is taken. The contract is often legally
enforceable and bind into. In UK contract act 1999 is followed by business.
Therefore, these all laws impact on business as they have to follow and adhere it. So, if laws are
not followed then it result in taking legal action against it which affect on operations.
LO 3
P4 Explain how different types of business organisation are legally formed
There are various types of business which are formed. They are then legally registered as per
law. These business operate according to its formation. However, nature and size of business
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varies from one another. So, the different types of business legally formed is defined as
(Lavallée, Abdin and Husted, 2019).
Sole proprietorship- this is a type of business in which there is only one owner. It is controlled
and managed by single person. The owner is responsible for any debt or profit earned. He is
having entire control over it and is having right to take decision.
Partnership- this is a type of business where two or more than two person come together to
achieve a mutual goal. They decide to do business together as per share capital or investment
done by them. There is a partnership agreement done in this type of business. Usually, liability of
partner is unlimited as they are responsible for their own debts. Moreover, partnership business is
governed as per partnership act of 1890.
Limited partnership- this is a type of legally formed business where liability of partner is limited
and he manages and regulate entire business. Basically, the partner whose liability is limited is
not liable to engage in decision making of company. (Deakin and Markesinis, 2019).
Company- In the UK, the company is the separate legal entity from its members which can be
suing and can be sued in its own name. The shareholders are the actual and real owners of the
company and their ownership depends upon their shareholder's value. For managing and
controlling the operations of the business the BOD is appointed. The company is bound under
provision of company act 2006.
Limited liability company- it is a businesses where the liability of the company towards its
business debts is limited for each of the value of the shareholder. It provides protection to the
personal assets of the shareholders in case of financial problems
So, these all are different types of business which are formed in legal way. They all have to
follow several laws and regulations and liable for debts and profits as per legal obligation
implied on them.
P5 How business organisation are funded and managed
Every business require funds to run and operate within industry. Without fund it is difficult to
manage them. Moreover, funds needed are as per business size and nature. They are managed
differently on basis of funds. Thus, there are several ways of funding and managing which is as
follows (Nabilou and Prüm, 2019).
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Bank loan- it is the most common source of funding where business get loan amount at a
nominal interest rate for a fixed time period. Here, the fund is given against some security
deposit. Therefore, loan amount given is as per value of security. It is easily to get loan from
bank.
Personal deposit- this is a fund where a person uses his saving or assets to use as fund within
business. But here saving can be limited which may not fulfill fund requirement of business.
Financial institutions- they are those institutions who provide loan to business at high interest
rate as compared to bank. The amount given is for limited time period. Henceforth, here as well
security is to be deposited to get loan. Also, procedure of loan is fast and does not take time as
compared to bank.
Angle investor- they are those investor who are highly interested in investing in business. They
can be either individual, group of people, businessman etc who want to invest. But they require
business idea to be unique and innovative. Along with it, if business is successful then they
might take share in it of certain stake. This will led to making them partner within business.
(Abdullahi, 2019).
Friends and family – it is also a source from where business can get fund. The friends and family
member can help in providing money for funding a business. They can be convinced for
borrowing of money.
Bank overdraft- it is also a source of fund for business in which they can get an overdraft from
bank for a specific time period. This provides flexibility to business to fulfill their needs in
effective way.
Hence, these are ways to manage and fund business in efficient way. By providing them funds it
is easy to fulfill business need. It allows them to run and operate within industry. However,
source of funds vary from one another and there are several condition in it as well.
LO 4
P6 Legal solution for resolving range of disputes
Case 1- This case is about the dispute between Gordon and orange computer limited. In this it is
found that due to certain economic conditions company is not able to give salary to him. But in
contract it is written about that Gordon will get both salary and commission. However, he agrees
to take commission. After some time business is able to grow and earn enough profit. Thus,
Gordon says he wants salary of 3 years. In this case he liable to get his salary as there is contract
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law applied between him and company. Besides, there is no agreement done legally between
Gordon and company of taking only commission. In this case company can pay him salary in
installments. This will be easy for both of them to deal with it as Gordon will get his salary and
without having affect on profit orange limited can pay his due salary. (Ciepley, 2019)
Case 2- as per the contract law invoice sent by Virgin media is not valid. This is because only
internet package is installed at initial stages and also due to incompletion of tasks Janet was not
able to use Internet services till the time telephone line was installed. Moreover, it is stated that
after 3 weeks when engineer came and install remaining work then only Janet was able to use
Internet. This means that invoice sent by company is invalid. She should have been charged for
service after 3 weeks. So, legal solution of it is that Janet can file a complaint in court for it. In
this she can sue company for taking of charges for which she is not liable to pay as the
installation process was incomplete. Also, after sending e mail and calling company send
engineer to fix issue.
Case 3- here, a case is been filed by a creditor of black horse limited to pay all debts. So, in this
case it may be advised the at company can take more time to clear all debts. In addition to it, the
company can take loan from Bank and pay their debts. It will help them to survive and terminate
the process of winding up. Other than this, some asset can be sold out in order to pay the amount
to creditor. Therefore, these all legal advice will help in saving from process of winding up.
(Staub, 2019).
CONCLUSION
Hereby, it is summarized that business law is related to governing and regulating of conduct of
business. There are various sources of law that are case, constitutional and statutory.
Furthermore, government plays vital role in forming of laws. The executive and legislative
bodies form and regulate laws. Besides that, company, employment and contract law highly
impact on business. They have to adhere them and there are certain obligation which needs to be
followed. Also, there are different types of business such as sole proprietorship, partnership,
company etc. The business are funded and managed in various ways like bank loan, financial
company , angle investor and other.
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REFERENCES
Book and Journals
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Humanitarian Law: A Legal Analysis. Archives of Business Research, 7(10), pp.61-74.
Bahoo, S., Alon, I. and Paltrinieri, A., 2019. Corruption in international business: A review and
research agenda. International Business Review, p.101660.
Banks, D., Hendrix, J. and Kyckelhahn, T., 2016. National Sources for Law Enforcement
Employment Data. Washington, DC: US Department of Justice, Office of Justice
Programs, Bureau of Justice Statistics.
Ciepley, D., 2019. Can Corporations Be Held to the Public Interest, or Even to the
Law?. Journal of Business Ethics, 154(4), pp.1003-1018.
Deakin, S. and Markesinis, B., 2019. Markesinis and Deakin's tort law. Oxford University Press,
USA.
Hage, J., 2017. Sources of law. In Introduction to law (pp. 1-20). Springer, Cham.
King, E.M., Deibel, M.G.. and Kieke, S.N., 2020. A Business Plan for The Fitzgerald Institute.
Lavallée, J.F., Abdin, S. and Husted, M., 2019. Barriers and facilitators to participating in
physical activity for adults with breast cancer receiving adjuvant treatment: A qualitative
metasynthesis. Psycho‐oncology, 28(3), pp.468-476.
Maxeiner, J., 2018. Failures of American Methods of Lawmaking in Historical and Comparative
Perspectives. Cambridge University Press.
Nabilou, H. and Prüm, A., 2019. Ignorance, Debt, and Cryptocurrencies: The Old and the New in
the Law and Economics of Concurrent Currencies. Journal of Financial Regulation, 5(1),
pp.29-63.
Staub, L., 2019. The role of technology in the business model of law firms.
Thirlway, H., 2019. The sources of international law. Oxford University Press.
Wang, S., 2018. Guiding Cases as a Form of Statutory Interpretation: Expansion of Supreme
People's Court's Judicial Lawmaking Authority in China. Hong Kong LJ, 48, p.1067.
King, Deibel and Kieke, 2020
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