The Role of Law in Business Growth and Development

The provided report evaluates the significance of law and legal system in facilitating better control and safety within a community, society, or nation. It highlights how law enables businesses to maintain growth and development while achieving set objectives. The importance of taking legal advice is also emphasized to resolve disputes and ensure appropriate growth.

BUSINESS LAW

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Learning Outcome 1.............................................................................................................................3
P1 Concept related to different Sources of Law...............................................................................3
P2 Role of government in law marking and the application of statuary and common law in justice
courts................................................................................................................................................5
Learning Outcome 2.............................................................................................................................5
P3 Illustration of company, employment and contract law and its impact on the business.............5
D1 Critical Evaluation of Legal system and Law............................................................................6
Learning Outcome 3.............................................................................................................................7
P4 Exploring the legal formation of various types of business organization. .................................7
P5 In what manner the business organisations are managed and funded.........................................8
D2 Critical Evaluation of types of business organisations...............................................................8
Learning Outcome 4.............................................................................................................................9
P6 Legal solutions to resolve disputes and ways to obtain legal support and advice.......................9
D3 Effectiveness of legal advice, solutions and support to resolve the dispute.............................10
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11

INTRODUCTION
Business Law is also known as Commercial Law, which is defined as the body of law
governing all the activities undertaken in relation with the trade and commerce. Business Law is
associated with the formulation and implementation of effective and sound governing rules,
regulations and acts pertaining to all the trading and commercial business activities. With the help
of business law, company is able to determine what are the procedural aspects of formation and
starting of new business entity. The present report is based on a London based law firm named as
Global Solicitors which provides legal solutions to all the dispute and employment related cases and
laws. This report will discuss about the different sources of law along with recent reforms and
developments taking place in legal system (Miller and Jentz, 2017). Also, explanation about
company, employment and contract law will be provided. How legislation, regulations and
standards differentiates will be assess in report. Further, types of business organisations on legal
basis and its advantages and disadvantages will be included in report. At last recommendation
related to the disputes will be provided.
MAIN BODY
Learning Outcome 1
P1 Concept related to different Sources of Law
Sources of Law are defined as body of law which are considered as the origins of laws
containing all the rules, regulations and acts which are applicable, binding or provides governing
authority to all the states (Beatty Samuelson and Abril, 2018). With the help of sources of law, states
are enabled to govern or control all its territory and business taking place within that territories.
Different types of Sources of Law are as follows:
European Law – It has been part of Sources of Law from 1973, when UK became member
of the then called European Economic Community. European Law consists of different types of
sources which are as follows:
 The treaties – The main objectives of treaties is to impose legal obligations on all the
member states including different types of treaties. The legal obligations formulated under
treaties are enforceable directly by the individual citizens irrespective of legislative action
taken by the member states for implementing them. These obligations are related to the fact
of providing equal treatment in case of employment to both the men as well as women
(ADAMS, 2016).
 Regulations – The term regulation are basically framed with intention of bringing

uniformity of law by imposing it throughout the community. After being issued, these
regulations creates immediate effect on all the member states.
 Directives – It is the considered as the one of the most important source of law among all
the European community. It is applied to all the member states with the aim of bringing in
harmonisation of law by making it similar between all the member states and not identical
one. Directives contain some aims which are required to be achieved by all the member
states by implementing it in as per their choice and methodology.
 Decisions - The term Decisions provides authority by issuing it to the party either to do
something or preventing from doing something. Decisions taken affects only a particular
member states, individual or company (ADAMS, 2016).
Parliament – The Parliament has authority to create a new law by passing of a bill through
different processes for getting it approved. The new bill containing all the requisites for making
changes are contained in it. This new bill having all material issues are processed in the House
of Commons for its introduction and first reading which the first stage in formulation of new act
is. Discussion related to new bill are made and is forwarded to the House of Lords for further
discussion (Cameron, 2017). After first reading is completed, bill is under second reading for
seeking majority voting. In the stage of Third reading, any grammatical changes are made in the
House of Commons and significant changes takes place in the House of Lords. After getting
approval from both the house of Parliament, Royal assent is required to be taken for making of
Bill as an Act of Parliament.
Delegated Legislation – These are considered as the secondary or indirect part of legislation
which are framed outside the Parliament by the regulatory bodies (ADAMS, 2016). These
regulatory bodies are given legislative power by the Act of Parliament for exercising of such
delegated legislation. It has four types:
 Orders in council – At the time of national emergency, law making powers are been
granted to the Privy council by the Emergency Powers Acts, 1939 and 1984.
 Statutory Instruments – Helps in execution of general principles of the policy created by
Government Departments which has been set out in the Act of Parliament. It ensures
providing safeguard to all the users using credit facilities.
 Regulations for implementation of Law from the European Union – Ministers and
Government departments are given powers to implement all the directives and treaty
provisions as per the European Communities Act, 1972, s 2.
 Bye laws – Helps in regulating all the facilities as provided by bodies such as London
Underground and Network Rail. Bye laws are made by local authorities along with other

bodies having significant statutory powers.
Case Law – Also known as Judicial Precedent. The case law under the sources of law are
based on the doctrine of Stare decisis which is basically related to the jurisdictions based on the
English common Law. Civil law system has contained a part of case law under it. In situation of
important cases, judgements made by the judges are recorded and becomes significant part of
sources of law. Judicial Precedent is defined as the judgement or decision made by the court of
law which is cited as the authority for deciding similar state of fact in the manner made earlier
or by considering the same principle (ADAMS, 2016).
P2 Role of government in law marking and the application of statuary and common law in justice
courts
While making laws the executive branch of the government tends to develop most draft laws
and the main role which parliament plays here its to pass, review and amend those laws. The
individual member of parliaments introduces draft laws which are known as private members bills.
In most of the parliaments with permanent committees, the proposed legislation formally gets
introduced on the house floor and then it is referred to one or more committees with legislation or
jurisdictions. The government ensures that appropriate laws are being made and these laws are not
effecting any of the people living in their countries and the laws made before as well.
The application of common law (also known as case law) in justice courts evolves with the
new decisions made by the court's judges whereas the application of statutory law (also known as
written law) is as per the new law which are issued by numerous government agencies. The
operational level in common law is procedural and in statuary law it is substantive. It has been seen
that the nature of the common law is instructive which explains that while applying it the justice
courts have to instruct as what they think should be needed to done (DiMatteo, 2016). The nature of
the statuary law is prescriptive which explains that during its application the justice law impose
them on the people of the country whether they are in favour or against it. The common law tends to
provided freedom to the people whereas the statutory law restricts the freedom of the individuals
and the businesses.
Learning Outcome 2
P3 Illustration of company, employment and contract law and its impact on the business
The company law (also known as corporate law) refers to a body a law which governs the
rights, businesses, organisations, relations, person conducts and companies as well. It refers to the
legal practice which relates to theory of corporations. It tends to provide the businesses with the

strict directions under which they required to be operated. Along with it, the company law tends to
create specific situations for the overall stakeholders, the business itself, its processes in which they
have to work under the set rules and guidelines. These rules tends to make the business have less
freedom in operating as per its requirements.
The labour law which is also known as employment law refers to law areas that commonly
relates to the relationship between the government, employers and the trade unions. Under this law,
sometimes the businesses have to make their decisions as per the laws of the employers and trade
unions. This makes it difficult for the business to work as per the set goals and requirements and
being focused on ensuring that set growth and development is taking place appropriately.
Sometimes it impacts on the growth of business and its entire vision as well.
Contract law refers to a legally binding agreement under which the rights and duties of the
parties are governed and recognised (Picciotto and Mayne eds., 2016). This law is enforceable
because it tends to meet the approval of the law and its requirements as well under which the
promises, services and exchange of goods are typically involved. Under this condition, a business
has to suffer from the growth and development issues because from this its particular freedom is
being jeopardised. It impacts the motivation of its employees and working potential as well.
D1 Critical Evaluation of Legal system and Law
Law refers to a body of action rules or conduct which are prescribed by an authority that is
controlling. It tends to control the actions of a particular society, community, or a business. It helps
the government to control and manage the actions of the individual or a group of people. It is not
possible for the government of the nation, a community or a particular area to ensure that
appropriate growth and development is taking place and law ensure that everything is working as
per these requirements. In context of business, it is necessary to have appropriate practices of law in
place, because without law a business cannot produce appropriate practices to hold or retain
knowledge, property or right. The law also allows the business to operate under the set values and
requirements under which both the economy and the business can flourish.
The legal system is as important as the law of the society, country, community, businesses
etc. It is important for the society and the community to follow the legal system in order to maintain
better security and safety within the environment of the business or the community (Norris, 2016).
The legal system mainly consists of a constitution under which general instructions are provided to
the people, business and norms are set to ensure appropriate growth and development. It tends to
help the government to maintain a strict control and gain the best out of the desired practices. Along
with it, it is important for a business to follow appropriate legal systems in order to ensure its

appropriate growth and development as well.
Learning Outcome 3
P4 Exploring the legal formation of various types of business organization.
There are several business organizations that can be formed for running the business in UK.
These organizations might vary in context of their scale, investors and the liability (Le Bris, 2019).
It is also provided that starting with one form of organization a person can shift or move to another
structures as well. The different organizations include sole proprietorship, partnership firm and the
limited company.
The legal formation for each of the company differs as per their structure and the number of
persons required for forming such organization also different. The legal duties and the statutory
obligation of these business organizations is entirely varies as per the laws provisioned under the
UK business law.
Sole trader- This business entity is considered as an unincorporated organization which is
not registered with the company house. They are the self-owned person who runs their business on
their own on a routine basis. It is not a company so are not counted as separate entity from its
business. The liabilities and the assets of the sole trader are seen as the person who owes and runs
the business. They liability of the sole trader is unlimited which means in case of non-payment of
the debt obligation his person assets can be sold for meeting its liability. Very few formalities in
relation to the regulations is enjoyed by such enterprise. No statutory requirement and annual
returns are compulsory for the sole trader. The books of accounts need not be mandatory for the
trader to maintain.
Partnership firm- It is the firm where more than two persons come together for carrying the
business activity or trading in accordance with the agreement between them. In the UK, partnership
firms are classified into two categories that include unincorporated partnership and the limited
liability partnership. The legal form of unincorporated partnership is said to be similar to the sole
trader, the difference is only that in sole trader only one person is the owner while in this two or
more persons can become the owner (Melnyk and Shatska, 2019). All the partners will be having
the stake in their business in proportion of the capital invested by them. Limited liability partnership
firms differs from the traditional partnership firm in the sense that it has to be registered at the
company house and it is not necessary for the firm to maintain its statutory records or preparation of
statements and filing the return to the registrar of the companies.
Limited company- This type of business organization is very much different from the sole
proprietorship and the partnership firm because it is considered called as the separate legal entity

where the owners and the company has separate identity. The liability of the owners is said to be
limited under this organization as per the legal laws in the UK, this means that the liability of the
members is limited to the non-paid value of the shares held. This company is owned by the person
who holds or has the stake in the shares of the company.
P5 In what manner the business organisations are managed and funded
Below mentioned is how the above mentioned business organisations are funded and managed:
Sole Proprietorship: Sole proprietorship is a business proposition under which only one
person holds the authority to ensure that set goals and developments are being achieved. The same
individual is also responsible for ensuring that business is growing as per the set requirements. The
management of the business is in the hands of the owner as well. The owner of the sole
proprietorship decides the goals, hires the employees, and makes them work as per the required
needs. Along with it, the owner keeps the revenue earned, and allocates it to the suppliers of raw
materials, invests in the processes etc. The funding in sole proprietorship is done by various means
such as from the activities of crowdfunding, bank loans, attracting investors etc.
Partnership firm: The management of partnership firm is dependent upon the partners of
the business. They are only one responsible for the activities of the business and ensuring that set
growth is being achieved. The partners of the firm often tend to divide their activities as per the set
needs and requirements and allocates responsibilities according to the business needs. The partners
also manage the expenses, profits and overheads of the business. The funding is done for the
partnership business is done by bank loans, crowdfunding, venture capital, via angel investors etc.
Limited Company: The management of the limited company is different from the
management of both sole proprietorship and partnership firm. As seen above that the limited
company holds a separate legal entity from its owners. The activities of the limited company are
managed by the owners of the business and in some cases the head CEO, Board of Directors, the
leaders etc. They manage the company and its shares as per the set requirements of the stakeholders
and the needs of the company's set objectives, requirements, and its vision (Roach, 2016). The
funding in limited companies are garnered from the ways of debt, equity and the deposits as well.
D2 Critical Evaluation of types of business organisations
As seen above, the business organisation are very different from each other and their roles
and functioning differs as well. The sole proprietorship tends to manage its functioning by a single
person, who is responsible to manage the activities and the growth and development as well. This is
one of the most effective ways of managing a business as seen above. It eliminates the situations of

disputes and problems related to decision making etc. When it comes to partnership business
organisations, it has been seen that two partners working together can help the business overcome
issues effectively with the support of each other and ensuring appropriate growth it taking place.
Sometimes, it can lead to conflicts as well between the partners which can later make the
organisation and its development face issues. The limited company is one of the most effective
business organisation approach seen, as the company holds a separate legal entity. It decision are
made by the organisations board of directors, the top leaders and the CEO's which often does not
involves a person who holds every responsibility but still is responsible for taking the organisation
further with the set decisions and vision.
Learning Outcome 4
P6 Legal solutions to resolve disputes and ways to obtain legal support and advice
In order to resolve disputes there are different legal solutions which can be used. Below
mentioned are these solutions and in what manner legal support and advice can be undertaken:
 Mediation: Under the act of mediation, the neutral third party tends to help the disputants in
arriving at a consensus of their own. Instead of imposing a solution, a professional mediator
tends to work with the sides which are conflicting in order to explore the underlying position
interests. It is effective in order to allow parties to vent the feeling and exploring their
grievances as well (Emerson, 2015). Mediators while working with the parties and
sometimes working separately can try helping in hammering a solution which is non-
binding, sustainable and voluntary.
 Arbitration: In this aspect, the neutral third party tends to serve as a judge. The judge is
responsible in dispute resolution. The arbitrator under this listen to each and every side and
tends to argue the case and presents the evidence that is relevant and after that renders a
solution which is binding, The arbitrators tends to hand down decisions which are usually
confidential and are not appealing as well.
 Litigation: It is one of the most familiar type of the resolution which is used in resolving
disputes. The litigation which is civil tends to typically involve a defendant which faces off
against a plaintiff before a judge and jury or either a judge. It is the jury which is responsible
for evidence weighing and rule making. The conveyed information in trials and hearings
usually stays and enters on the record that is public. The lawyers typically tend to dominate
a practice of litigation, which tends to end in a settlement agreement during the preparation
and pretrial period of discovery.
In order to take appropriate legal support businesses can consider taking counselling from

the lawyers. The lawyers are the appropriate resources which are being hired by the businesses
across the world in order to obtain both legal support and advice. Apart from this, the businesses
can make use of legal agencies under which they can gain appropriate advice and support. These
agencies are best in resolving disputes and understanding the risks that a business can face and can
provide them with appropriate directions in order to ensure better growth and development.
D3 Effectiveness of legal advice, solutions and support to resolve the dispute
Legal advice is one of the most important aspect seen in resolving disputes as it helps the
businesses to overcome the reoccurring challenges hampering the growth and development
(Cameron, 2017). Legal advices provide the businesses with effective solutions under which
effective growth and development can take place for the business and it can achieve set goals and
objective without facing any conflicts and surrounding issues. The legal solutions and support taken
from the entity which is expert in the field can help the business reach required growth ensure that
new development is taking place effectively.
CONCLUSION
As per the above evaluations, it has been seen that law and legal system plays an important
role in order to maintain better control and safety. The above report concludes that the government
plays a major role in creating and managing law within a particular community, society, nation etc.
The conclusions drawn illustrate that the law also helps a business to maintain a level of growth and
development and achieve required growth. The law allows the businesses to work under strict
restrictions and follow the guided way to reach required objective and ensure appropriate growth.
At last, the report explains that it is important for a business to take legal advice in order to resolve
disputes because with disputes it is not possible for business to achieve set growth and development
and ensure appropriate development as per the set visions and requirements.

REFERENCES
Books and Journals
ADAMS, A. (2016) Business Law for Students. 9th ed. London: Pearson ANDREWS, N. (2011)
Contract Law. Cambridge: Cambridge University Press.
Le Bris, D., 2019. Testing legal origins theory within france: Customary laws versus roman
code. Journal of Comparative Economics. 47(1). pp.1-30.
Melnyk, A. and Shatska, Z., 2019. business structures, as new forms of institution, in context of the
civil society development. Social and legal aspects of the development of civil society
institutions. Part I. p.219.
Miller, R. L. and Jentz, G. A., 2017. Business law today: The essentials. Cengage learning.
Beatty, J. F., Samuelson, S. S. and Abril, P. S., 2018. Essentials of Business Law. Cengage Learning.
Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
DiMatteo, L. A., 2016. International business law and the legal environment: a transactional
approach. Routledge.
Picciotto, S. and Mayne, R. eds., 2016. Regulating international business: beyond liberalization.
Springer.
Norris, K., 2016. Common European Sales Law: A Missed Opportunity or Better Things to
Come?. Business Law Review. 37(1). pp.29-32.
Roach, L., 2016. Card and James' Business Law. Oxford University Press.
Emerson, R. W., 2015. Editor's Corner: The Business Law Team Brand. American Business Law
Journal. 52(3).
Online
Litigation and Dispute resolution. 2018. [Online]. Available through:
<https://www.kppblaw.com/practices/litigation-dispute-resolution/>