Business Law Case Studies with Solution

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Depict about the sources of UK law ..........................................................................................1
Role of government in law making process and how statutory law and common law is applied
in justice court.............................................................................................................................2
TASK 2............................................................................................................................................3
Illustrate how company, employment and contract law has a potential impact on an
organisation.................................................................................................................................3
TASK 3............................................................................................................................................4
How different types of organisation are formed legally.............................................................4
Advantages and disadvantages of forming different types of organisation................................5
How they are managed and funded ............................................................................................5
TASK 4............................................................................................................................................6
Recommand a legal solution for solving the dispute..................................................................6
Evaluate the effectiveness of legal advice and support for dispute resolution............................7
CONCLUSION................................................................................................................................7
REFERENCES ..............................................................................................................................8

INTRODUCTION
Business law is categorised as the set of legal rules and regulation which applies on any
of the business organisation. It is mainly helpful in the area of governing the daily basic
transactions. As it the main branch of corporate sector, it deals in various area such as buying
and selling the products, managing the organisation and many more. In this assignment, the area
which will be covered are inter-related to sources of law, importance of government in law
making process and their importance. Also, focus will be on recommendation on the dispute
which has raised within the organisation. All of the proposal will be given by para-legal post of
one of the popular law firm, named as Smith Solicitors.
TASK 1
Depict about the sources of UK law
The law of UK has reached in different level and because of that it has been found that it
is very effective for any of the business organisation. This sources helps to gain additional
advantage because decision making becomes more accurate in it. There are basically two sources
and they are primary and secondary.
Primary Source: It is the source where new law and regulation are commenced which
are very effective too. Some of the primary sources are:
 Case law: This source is very helpful because law are commenced by looking at facts,
issues and legal principles. Here, ultimate decisions are taken by the judicial precedents
who has the right to commence law (Allen, 2017).
 Legislation: This source is effective because the main participation in this is being taken
by House of Lords and House of Commons. Here, they are required to pass the bill and
after that it is important that they pass the bill by taking the prior approval from ever
department.
Secondary Source: It is also one the in UK to commence law if it is necessary to
commence any of the law by considering the facts of primary source. Some of the secondary
source are listed below:
 Legal encyclopaedia: The law of Halsbury's law in UK has been one of the main way to
commence law and even it is effective for other nation too. The speciality of this source
is that laws are explained in the finest way which is helpful for any of the sector.
1

 Parliamentary and non-parliamentary publications: This is the source of law and
commands which tells that how any of the law is required to be commenced. Both House
of lords and House of Command does the debate before posting it on the official website.
Role of government in law making process and how statutory law and common law is applied in
justice court
In any of the nation government plays the key role as they helps to decided that what they
are required and how they are needed to do. The main focus of government is to focus that how
they can bring new laws and policies which can be effective in maintaining the peaceful
environment within the nation. In UK, the role has been divided into three different parts and
they are: Executive Role: The main role of this body is to commence plans and policies which are
enforces in whole of UK. Enforcement of any of the legal provision do comes under this
role and it is necessary to be followed. The main body which takes part in it are Prime
Minister, Queen and some of the other ministers (Hansmann and Kraakman, 2017). Legislative Role: In this role, various laws and regulation are being passed but the main
thing which is necessary to be focused is that bill is needed to be present in the
parliament house . House of Lords and House of Common have the main role in it as they
have to pass the bill for governing the rights of people living within the boundary of UK. Judiciary Role: The judicial body has the role to judge the case as per the situation which
is available in front of them. Here, the main role of this body is to commence law and by
judging the case. If any of the laws has been not passed to declare the result then they
commences the law to declare the best decision.
How statutory law and common law is applied in justice court.
Common Law: The judgement which is being given within the court are always based
on judicial precedents which has a meaning that if any of the similar cases has been already
discussed then judges will not required to form new laws and policies as they will get the
chances to declare similar decision in it. If case has been not discussed before then judges do get
the chances that they can form a new law and declare there decision of own. It is very helpful for
declaring the decision in justice court.
2

Statutory law: It is defined as the rules and regulation which are commenced for
providing the rights to every single individual so various law and policies are written in it which
is needed to be followed. Fix patten are available in it and judges of justice court are required to
declare the decision as per the situation which is available in front of the authorised panel. This
law statutory law is being applied within justice court.
TASK 2
Illustrate how company, employment and contract law has a potential impact on an organisation.
The government of UK has commence number laws and regulation which helps to
operate business. This laws and policies do have the potential impact on business as sometimes it
is helpful and sometimes it is not. Some of the law which has a impact on business are explained
below: Company law: Every business organisation is required to follow the rules and regulation
which are written under Companies Act, 2006. It help to provide legal status to any of the
business organisation. The biggest negative impact of this law is that if any of the
organisation fails to comply the rules and regulation then it will directly affect on its
stability in the market (Cameron, 2017). For example: XYZ Ltd has raised the additional
amount of fund by issuing the share to invest in new sector but they doesn't do exactly the
same then different penalties can be imposed.
 Employment law: The main motive of employment law is to provide the healthy and
safety environment whenever they works within the organisation. Various laws falls
under this law such as equality act, Health and safety act and many more. Under this law
various rights are being provided to employment which makes them fell comfortable
while working within the organisation. If company fails to give them all of those rights
then legal actions are being taken against the company which has a negative impact on
organisation.
 Contract law: It is mandatory for any of the organisation to enter into the valid contract
for the purpose of carrying on the business transactions. It is beneficial because it doesn't
allow to breach the contract (Bayern, 2016). Separate laws and legislation has been not
formed but still its terms and condition has been included in Sales and Supply of Goods
Act. This law has positive as well as negative impact. For example: XYZ ltd breaches the
3

term and condition of contract then it will have a negative impact on the performance of
organisation.
TASK 3
How different types of organisation are formed legally.
Multiple options are available while commencing any of the business but the point that is
needed to be considered is that how many person are going to be involved in it so for the
common objective. The organisation can be of different types such as small, medium and large.
The detail information about various types of organisation is mentioned below:
 Sole Proprietorship: This type of organisation are suitable for the those person who
wants to perform business activities single handedly. The person who manages the
activities in sole proprietorship firm is known as sole proprietor or even owner too. In this
types of organisation, there is no legal obligation or way to form the organisation in legal
way (Raz, 2017).
 Partnership: Whenever number of people comes together with legal agreements and
deed to earn profit is known as partnership. While performing any of the business
activities it is necessary that partners should prepare the deed where every details are
mentioned. The requirement of other legal documents is not needed in it but still it must
be registered under partnership act and copy should be submitted to Companies House.
 Limited Liabilities Company: This from of business do get number of benefits once it
is incorporated. Member are also benefited as their liability is limited in it. This types of
company have the hybrid nature as different options are available such as partnership and
corporation both. The legal process of forming it is:
◦ LLCs must decide the name and address.
◦ Legal documentation should be prepared where working policies is needed to be draft
(Morley, 2016).
◦ All the member who will connect with the company should be decided.
◦ All of these documents should be drafted in Companies House.
 Corporation: This types of organisation are required to perform at bigger platform due
to which they are required to do suitable planning so that each and every activities can be
performed easily. The legal process of forming corporation is:
4

 It is important to select the name of a company.
 The second most requirement is that first director and first shareholder needed to be
select.
 Then it is necessary that company must obtained the SIC number.
 Memorandum and Article of Association also plays the crucial role (Tepe, 2016).
Advantages and disadvantages of forming different types of organisation
Association Advantage Disadvantage
Sole Proprietorship Legal obligation are very rear
it.
Don't have the capacity to sue
and be sued.
Partnership Decision-making system is
quick.
Do not get the legal existence.
Limited Liability Company Liability is fix up to the
amount of investment.
Lots of legal formalities are
required to be done.
Corporation Entry and exit of any member
doesn't bother the company.
Unnecessary expenses do arise
which reduces the profit.
How they are managed and funded
Organisation Who manages it Source of funding
Sole Proprietorship Owner is the only one who
has the responsible to manage
every single work.
Personal assets, credit card is one
of the major source of funding
Partnership To manage every single work
responsibility is given in the
hands of authorised partner.
Credit card, person assets of every
partners and even bank loan can
be the way to manage the fund.
Limited Liabilities Company Manager takes the
responsibility in it to manage
most of the work (Swanson
and Frederick, 2016).
It is said that whenever LLC
requires fund they takes the help
of Loan from multiple financial
institution, additional investment
5

from every involved member etc.
Corporation Key Managerial Personnel
are the one who manages
every single work.
Shares, debentures, bonds, bank
loan are the main source of
funding in it.
TASK 4
Recommand a legal solution for solving the dispute.
Legal solution means the way through which any of the problem can be solve in the best
possible manner. Legal solution are helpful whenever any of the dispute arises. The main reason
to find alternate way to solve the dispute is just to reduce the work load of court. Different types
of way to solve the legal dispute are:
 Negotiation: This is the way to solve the problem in which both parties try to negotiate
the term and condition of contract. Parties are required to do negotiation in many of the
condition. Among all other techniques to resolve the problem negotiation is always the
priorities as it is easy to apply in the conflicted situation.
 Mediation: Other person is hired in it who does his work without any of the partiality
with disputed parties. This is mainly applied whenever process of negotiation doesn't
work. The main work of mediator is to find the solution of a particular problem.
 Conciliation: This option is available whenever parties want to solve their dispute
outside the court (What is conciliation, 2018). This process of solving issue is easy,
flexible and helpful too. Conciliator are required to handle every situation in it.
 Arbitration: It is the last and final process to solve the problem which is favourable in
any of the condition. Before, appointing arbitrator it is necessary that disputed parties
must agree that they wants to take the help of arbitration method to solve the conflict.
The conclusion which is obtained by the arbitrator should be followed where as it is not
possible to challenge any of the question against the declared result (Rohlin and Ross,
2016).
Recommendation: It can be understood form all of the above method that Alex and Mr.
Ali should try to take the help of arbitration method to solve the issues which are going between
6

both of them. Arbitration process will be less expensive where all of the problem and their
solution will be address in best suitable manner.
Evaluate the effectiveness of legal advice and support for dispute resolution.
Legal advices means the view and points which is given by any of the lawyer in best
suitable manner so that client can understand it in detail. The above mentioned as also as
effective the suggestions which are given by lawyer because they try to find the way so wind the
problem (Tushnet, 2017). The main benefit of this legal advices is that it saves the time and
money both. Also, it try to find that way so that similar problem cannot raise again in future.
CONCLUSION
The above report shows that business law is important for operating any of the business
activity successfully. It is said the source of UK provide relevant information through which are
benefited in business making process. The legal formalities are necessary to be followed
whenever business is started. The main objective of an organisation is that how they manage the
things for conducting any of the activities successfully. At last, it can be said that in modern era
contribution of alternate ways to solve dispute is huge as it saves time.
7

REFERENCES
Online
What is conciliation. 2018 [Online] Available Through: <http://www.dispute-resolution-
hamburg.com/conciliation/what-is-conciliation/>
8