Importance of Business Law in Decision Making Process

This document discusses the importance of business law in the decision-making process and its impact on business organizations. It explores different sources of law, the role of government in law making, and how statutory and common law are applied in justice courts. It also evaluates the effectiveness of the legal system in the UK. Additionally, it illustrates how company, employment, and contract law can potentially impact businesses and analyzes the differentiation between legislation, regulations, and standards in terms of their potential impacts on businesses.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explain the different sources of law............................................................................................1
Explain the role of government in law making and how statutory and common law is applied
in the justice courts......................................................................................................................2
How statutory and common law is applied in the justice courts.................................................3
Evaluate the effectiveness of the legal system of UK.................................................................3
TASK 2............................................................................................................................................4
Illustrate, using specific examples, how company, employment and contract law has a
potential impact upon business...................................................................................................4
Differentiate between legislation, regulations and standards to analyse potential impacts upon
business.......................................................................................................................................5
Provide a coherent and critical evaluation of the legal system and law......................................6
TASK 3............................................................................................................................................6
Explore how different types of business organisations can be legally formed...........................6
Explain how business organisations are managed and funded...................................................8
Assess the advantages and disadvantages of the formation of different types of business
organisations...............................................................................................................................9
Critically review and evaluate the formation of different types of business organisations......10
TASK 4..........................................................................................................................................10
Recommend appropriate legal solutions...................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Business law is a wider concept which explains about the importance of commercial law.
It is essential that whenever any of the business performs business activity they must be done
with the accordance with laws and regulations. There is a huge importance of business law as it
makes decision making process more preferable. It is crucial for organisation to understand that
they must not take any of the those decision where they had not considered the laws and legal
language.
In reference to the file, there will be number of topics which will be important in itself as
it will guide that business can sustain within the market. Topics like importance of legislation
and their decision for the betterment of business organisation will be explained. In second
particular situation, Different laws will be discussed and there major impact upon business
organisation. Not only this, as investor must have the knowledge regarding the proper procedure
that how they need to manage each and every business activity. For the purpose of better
understanding, there are some of the cases in this file which will make understanding about
business law in detail.
TASK 1
Explain the different sources of law.
The English legal system has been developed in a systematic manner which allows to
ensure that work which are conducted within the organisation are being considered. For the
purpose of performing any of the business activity, English law have taken number of sources
which can allow to achieved desirable result. For the purpose of effective result, there are some
of the sources available in English legal system and they are:
Act of Parliament: The most power body in UK is act of parliament who has the right to
pass any of the law for nation. Whenever any of the law is formed, it will be essential that all of
the laws must be considered. The main benefit of this source is about prohibiting illegal activity
which can create issues for the nation (Thaete and Hebert, 2019). But, the process which is being
followed within the Parliament to form law is very typical because certain guidelines are there
which is to be considered.
Case Laws: This is also the powerful body which commences the law for UK premisses.
Here, laws are commences on the basis of cases that are completely different in nature. The cases
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which are discussed in primary phase and according to that respective situation judgement is
given. The judgement which is held makes the new law which is also enforceable for public
(Sources of law, 2018). There are legal remedies as well in those respective condition where
those laws are not considered.
European Union law: It is also one of the effective sources of law since of many year. It
is because they have formed number of laws within the UK which is allowing to maintain peace
and silence in the premisses of UK. This source has been efficient because it simply creates
number of laws for multiple area (Graw and et. al., 2019).
Journals: It is found that there are number of laws can be formed with the help of
journals. Here, some of the important articles can suggest about the requirement and importance
of additional number of law. To form the law, final judgement must be taken by the House of
Parliament.
Explain the role of government in law making and how statutory and common law is applied in
the justice courts
In any of the nation, ruling government plays the crucial role as they are the one who
decides that how any of the work is to be done. They are the one take in-charge of inclusion of
any laws and regulations through which effective results can be obtained. In context of the UK
government, they have been delegated the huge responsibility where they are needed to take
every single decision for the purpose of formation of law. The necessary steps which government
follows during the course of formation of law in UK are:
First reading: This is the primary step where actions and decisions are to taken by the
government on the basis of bill present in front of them. Also, the major portion of decision will
be based on introduction of name of the presented bill.
Second Reading: On this respective stage, it will be necessary for the members of
second reading that they must be capable of doing judgement on the bill. The main motive
should be related with the importance of bill and what can be the outcomes (Honigsberg and
Jackson Jr, 2019). On this respective ground, members will be required to declare the judgement
that whether bill needed to be discussed ahead or not.
Committee Stage: As permission has been granted by the member of second reading to
proceed further on the bill, it will be needed for the members to checkout the every points within
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the bill. The main motive behind checking the points within the bill will be very simply as
chances of improving the bill will enhance automatically.
Report Stage: The members will bring out the best suggestion or amendment for the bill
through which further results can be improved automatically. Also, there will be higher chances
reducing the negative impact in future period of time.
Third Reading: Whenever any of the bill reaches to this particular stage, it will be
essential for the member of House of Common to caste the vote. Casting of vote can be done
either in favour or against (Cojocaru, 2019). If vote is done in favour, it means that bill can be
transferred to house of lords.
House of Lords: This respective stage will be necessary because all of the stages will has
been considered by House of Commons will be considered again. This process will be required
to be conducted by peer members for bring further improvements on the bill.
Royal Assent: This one is the final stage which comes only after the end House of
Lords. It is just the final acceptance which is needed to be done by Queen.
How statutory and common law is applied in the justice courts.
Statutory law has the great importance within the justice court because decision making
process becomes easy in it. Talking about the justice court, there is the requirement of declaring
the suitable decision on the basis of situation of case. With the help of statutory law, it will allow
the justice court to declare decision as proper guidelines are mentioned in it which simply
determines about the remedies in any of the circumstances. And, on this respective ground
decision can be easily declared within the justice court.
Whenever there is the discussion about common law, it is necessary to understand that
judges themselves has to take the decision (Grant, 2019). In justice court, it will be the
responsibility of judges to check about the previously discussed cases through which similar sort
of cases can be solved. If any of the similar case is not found then new laws is needed to be
passed by judges and on that respective ground, the judges of justice court are required to declare
there decision.
Evaluate the effectiveness of the legal system of UK
There are number of benefits which can be easily seen within the premisses of UK just
because of the legal system which has been stable since longer time period. Some of the points
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has been mentioned which can allow to understand about the effectiveness of legal system in
detail.
 Long Term Decision: The government of UK is stable since longer period of time which
allows the public to make long term decision. There are number of nation where they lack
this respective department due to which they has to struggle in number of cases.
 Process of Formation of law: It is necessary for any of the nation to use appropriate way
to commence any of the law within the nation which can allow them to make situation
stable (Yu, 2019). Talking about UK, the parliament has given the power to house of
lords and house of commons to prepare and check all of the necessary steps to form any
of the new law.
TASK 2
Illustrate, using specific examples, how company, employment and contract law has a potential
impact upon business.
Company law: A company law is explained as the body of law which governs the rights,
relations and conducts of people, organisation as well as businesses. It is necessary that laws and
regulations must be followed by every business organisation which has been commenced by
company law. This law simply allows to understand and take decision through which goals can
be accomplished easily. In any of the situation, ignoring the law can create the legal issues for
the businesses. There are positive as well as negative impact of company law and that totally
depends upon the decision making process of the association. While talking about company law,
it gives the idea about decision requires to be taken by the organisation and this has the positive
impact. For example: Barclays Plc requires to decide that how many times they are needed to
conduct Annual General Meeting (AGM) in the company. For this, management has the option
to take the help of Companies Act 2006 which can allow them to determine about the
requirements to conduct any of the AGM (Nard, 2019).
Contract law: This are the agreement into which business enters by aiming to accomplish
the goals. There are certain guidelines which are to be followed as per contract law and if in any
of the situation company fails to do so then condition of breach of law will be applicable. This
law simply states that once organisation enters into the contract is not allowed to breach any of
the terms and condition. While talking about contract law, it can be easily said that it also have
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positive as well as negative impact for the organisation. The positive side of this law is that it
locks the prices and terms & condition once agreed and on that respective ground work is to be
done in it. For example: Barclays Plc has entered into the contract with one of the bank account
holder where they will provide him the loan on which 7.2% interest will be charged. The amount
will be paid till the end of next year. If in case, person fails to pay loan amount and interest
amount then legal action can be taken by the side of business organisation.
Employment law: This is explained as one of the law which simply states about the terms
and condition agreed between employer and employee. The main benefit which people can get
with the help of employment law is about the roles and duties which they are needed to consider.
There are number of sub branches of employment law which has the crucial role for the business
organisation at the time of accomplishing the goals of an organisation (Hay and Eagle, 2019).
While talking about the impact of employment law, it do not grant the permission to company to
take any of the decision of own for their employees which sometimes might have a negative
impact for the company. For example: There is the law that if employee get injured within the
premisses of a company then all of the expenses are to be paid by company which increases the
expenses and productivity decreases as rest is also required to be given to particular employee.
Differentiate between legislation, regulations and standards to analyse potential impacts upon
business.
Legislation, regulations and standards are the three different aspects of law which must
be performed. If any of the company is willing to perform better then they must be capable of
considering all of the aspects because all of the three terms i.e., Legislation, Regulation and
Standard has the impact to change working environment for the company.
Legislation: It is law and regulation formulated by legislature or any of the government
body. The law making process under legislation is required to be performed by the house of
parliament. The legislation has a great impact upon business organisation because they have
formed different law for companies such as employment law, environment law, healthy and
safety law and many more (Chemerinsky, 2019). All of this law are formed for business
organisation which they must follow for staying away from any of the penalties upon the
company.
Regulations: It is simply explained as the part of act which says about guidelines and
importance of any of the specific law or act. It is necessary for company to consider the
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regulations and even they can prepare there set of rules but those rules should not overrule the
laws and regulations. This has the impact on business because changes in rules and regulations
changes the whole working situation in the company.
Standard: It is explained as something established by the authority, customs or
legislation for the purpose of pointing out the manner to conduct the work. It is important that
those standards should be focused and considered by the law. If in any of the circumstances,
organisation fails to perform as per the set standards then in that respective condition, legal
actions can be taken upon the organisation (Uddin, 2019). Also, negative impact will have a
direct impact on goodwill of the a firm.
Provide a coherent and critical evaluation of the legal system and law
The legal system and law has great importance for the businesses because it directly or
indirectly supported to promote organisation. In recent period of time, changes has been made
where laws has been altered and various benefit regarding subsidies has been given which allows
the company to take best possible decision to accomplish the goals. Although, this are the
positive sides of the law but there are number of negative sides too as it changes in laws and
policies create issues for the organisation to take long term decision through which additional
amount of expenses do occur.
TASK 3
Explore how different types of business organisations can be legally formed.
Business organisation can be of two types where one from of business are to support
small investor whereas other form of business is for large size of industry where lots of legal
requirement is to be followed. The two form of business organisation are unincorporated and
incorporated business organisation.
Unincorporated Business Organisation: It is the smaller type of business which legal
requirements are very less and even it allows number of offers to investor which can easily allow
to earn profit (Young and Frye, 2019). Talking the laws, this types of organisation has to follow
very less number of laws and regulations. There are number of types of business and they are
 Sole Proprietorship: This form of business are small and working becomes easy in this
types of organisation. The main power to operate business activity is in the hand of owner
only. Whenever any of this types of organisation are formed, they must completed certain
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criteria. Those criteria are doing registration with HMRC and secondly, it is essential to
have National Insurance number. This are some of the most important area which is to
be considered for the purpose of forming sole proprietorship.
 Partnership: This types of business organisation are small in size but there are number
of activities which is mostly performed in it. Here, proper team can be formed, which can
allow to distribute the work for performing the task in best possible manner. In order to
perform the task, deed is required to be prepared which can distinguish the task
(Mascarenhas and Mascarenhas, 2019). Whenever there is the requirement to form any of
the partnership: It will be necessary for the organisation to understand about partnership
deed which plays the most significant role and secondly, there will also be the
requirement to have registration under HMRC. Once, it is registered all of the business
activity can be performed as per the required manner.
Incorporate Business Organisation: Whenever there is the requirement to perform any
of the business activity, this types of business are preferred the most because working at greater
level plays the vital role. Here, it is essential for the business to understand that whenever they
must perform there business activity as per the prescribed guidelines. Also, this types of
organisation are mostly registered as per the guidelines of Companies Act 2006. Different types
of incorporated business organisation are:
Joint Venture: It is mainly the mixture of two different organisation which forms the
new entity. It is important to understand that whenever any of this types of organisation are
formed certain criteria are required which is important and those must be followed. Whenever
there is the requirement to form any of the Joint Venture, it is crucial for the organisation to have
registration with Companies Act, 2006. While having the registration some of the criteria area to
be followed such as selection of name and address. Appointed authorised person should be
selected.
Corporation: Whenever any of this types of organisation is formed, they are required to
understand that considering the legal laws and regulations will play the important role. It is those
types of organisation where team work plays the crucial role for the purpose of accomplishing
the goals (Wooldridge and Cowden, 2020). The most appropriate benefit which any of the people
can get with the help of corporation is that this types of organisation will not restrict the entrance
as well as exit of any members from the company. During the course of incorporation, it will be
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important for the company to have registration as per the guidelines of Companies House. In
order to complete, the process of registration, there is the requirement of title and address of the
organisation. There is the need of first director and first shareholder. The appointed directors will
have the responsibility to appoint MOA and AOA. This will simply help to identify that what are
the essential work which company will perform. This are the main steps which will be
considered during the course of formation of business.
Explain how business organisations are managed and funded.
There are different form of business where they are needed to be managed and funded for
operating each of the business activity. Different form of business will have different nature and
procedure to manage the business activity. Below, there is the description about different form of
business and their attitude of managing the work.
 Sole Proprietorship: The working condition are very comfortable in this form of
business. It states that laws and regulation must be followed in any of the circumstances
so that accomplishing the goals can become an easy task (Lerman, Schrag and Rubinson,
2020). In order to manage, every single work it will be essential for the investor to
perform every single work in required manner. For the purpose of managing the fund,
there will be the requirement of credit card and even investment from sole proprietor will
play the crucial role.
 Partnership: Whenever any of the business is formed there are number of responsibility
which is needed to be performed on regular basis. Not only this, it will be essential for
partnership firm to manage every single work in a systematic manner so that goals can be
accomplished easily. There is the partnership deed which can allow to understand that
which partner will perform which type of duty in the company. When it comes to
managing the fund for the association, the first doubt comes within the mind is
investment from partners, second option which can be adopted is credit card which is
among popular means of raising fund.
 Joint Venture: In present scenario, this are the most popular form of business as it gives
the idea about performing the business in best possible manner. Whenever this types of
business requires fund, they get multiple option because of the trust worthiness in the
market. Some of the popular form of business for Joint ventures are Loan from financial
Institution, if it a public limited company then shares can be issued even credit card can
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be the alternate way and many more. Whereas, this types of company requires to manage
then, it is decided that mutual decision within the organisation plays the crucial role as in-
charge appointed who handles all of the necessary work.
 Corporation: In order to perform business activity within the corporation, it will be
necessary for the management to take effective decision which can allow to accomplish
the goals (Crane and et. al., 2019). There are number of sources which can allow to raise
fund. The available source for the organisation is shares, debenture, peer to peer lending,
loan from the agencies of government who is involved within the distribution of funding.
If in case, they requires to manage their work then in that respective case there will be the
requirement of board of directors, managers, key managerial personnel and many more.
Assess the advantages and disadvantages of the formation of different types of business
organisations.
If in any of the situation new organisation will form, they will have some advantages as
well as disadvantages. It will be important for the investor to have idea about those pros and cons
because may create some of the issues in future period of time. Some of the pros and cons of
unincorporated and incorporated business organisation are:
Unincorporated Business Organisation
There can be number of benefits which can be obtained within unincorporated business
organisation such as it is easy to performing just because of less number of legal formalities. The
investment required within unincorporated business is of small amount which can allow to attract
more number of investor. But, there are number of negatives sides of unincorporated business
such as it do not give power to sue on the name of organisation which creates issues for the
investor in some of the cases (MacLean, 2019). Also, this types of organisation do not have the
option of limited liability company due to which investor has to suffer.
Incorporated Business Organisation
This from of business simply gets high percentage of burden just because of the legal
rights and remedies given to the organisation. There are several benefits of investing in this form
of business such as power is to sue and be sued is available in it. The second most important
benefit for this types of organisation is Separate legal entity which do not create any of the issue
for the shareholders because entrance and exit of the member do not affect its working
environment. While talking about negative side of this form of business organisation, it can be
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easily said that high cost incur at the time of taking any of the business decision which do not
give power to each and every person to perform business activity. Also, considering the
guidelines of law is important and if company fails to do so then legal remedies are very high.
Critically review and evaluate the formation of different types of business organisations.
There are different form of business and their working styles also differ from other form
of business organisation. The motive behind performing any of the business activity is simply as
just to accomplish the goals on specific time period. There are some of the changes can be made
within the process of formation. For example: if unincorporated business organisation will get
more rights for the process of formation then in more number of investor can be attracted. Also,
on the other side, there are number of work which is to be performed by incorporated
organisation which is a lengthy procedure at the time of formation which can be altered for
making working condition more favourable.
TASK 4
Recommend appropriate legal solutions
Case 1
This is one of the case where employee was not performing their part of work as per the
required manner. It is one of the reason that company was facing issues and looking at the
circumstances of the case there are number of laws and regulations which can be imposed upon
the organisation. The main issues which has been created within the case from the side of Sarah
who has been working in the post of secretary since last 7 years (Trad and Kalpić, 2019).
Looking at the circumstances of the case, different legal advices are mentioned below to deal
with the case:
Compromise and severance agreements: It is a legal binding agreement created between
organisation and employee. It is being formed for the purpose of termination of employee who is
not able to perform as per the requirement of organisation. This agreement is generally prepared
so that in any of the situation employee will not be able to sue employer for the purpose of
claiming the damages. But, this agreement is not limited up to here because employer are also
required to add on the compensation amount which will allow employee to settle in future period
of time. Walsh v Belfast Metropolitan College [2020], is one of the famous case in recent period
of time which states the there was no compromise agreement which allowed Walsh to file legal
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case against Belfast Metropolitan College (Walsh v Belfast Metropolitan College, 2020). This is
one of the best law which can be used by the HR to resolve the case as company is willing to
remove Sarah after certain time period because of her misconducts.
Breach of Contract: It is one of the area which plays the crucial role for the purpose of
resolving the problem of HR. It is found that Sarah has breached the contract because in any of
the situation any of the employee is not allowed to discriminate any of the employees. But, in the
above given case, it was found that Sarah being as the senior employee, she was not treating her
juniors as per the requirement of law.
Here, different charges can be imposed by HR upon Sarah for the purpose of dealing with
the case. Also, this laws and regulations will allow the company to overcome the challenges
which is creating legal issues for the other employees working within the company.
Case 2
This is one of the case which explains about the dispute between Peter Romanov and the
importer of UK. The reason behind the dispute is simple because exchange rate founds the
fluctuation. This is among one of those case which can be resolved even without the
involvement of court proceeding. Also, the other way to resolve the dispute is Alternative
Dispute Resolution.
Alternative Dispute Resolution: This is one of the most prescribed way through which
any of the dispute can be resolved (Sulphey and Basheer, 2020). This process is effective
because of the nature which it carries i.e., solving the problem in short time period. The ways to
resolve the problem within this case is simple as number of sources are available in it.
 Conciliation: This process of solving the problem is simple because it directly gives the
idea that how raised issues can be resolved. The supportive role is to be played by
conciliator who guides the disputed party that how they can find out the solution. The
main purpose is to meet as near as possible to the contract.
 Mediation: This is almost a similar process for solving the issue because even this
process has been formed for the purpose of giving the suggestion. The appointed
mediator has to work on the points where disputed has been created so that suggestions
can be delivered.
 Arbitration: It is also among one of the way through which dispute can be resolved. It is
essential because orders are given in by the jury members. The decisions are final and
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must be followed by the respective parties. Before adopting this particular process, it will
be essential for the parties to agree to adopt this respective process.
Recommendation: After having the detail analysis on the case, it will be appropriate for
the disputed parties (Peter Romanov and UK importer) that they must try to find the way that
how they can resolve any of the problem (Gupta, 2019). In this case, they must use arbitration
process for solving out the problem. Here, jury member will have to decide that how both parties
can overcome from particular issue so that further dealing can be done easily.
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CONCLUSION
From the file, it is concluded that business law is among the crucial topics whose
knowledge should be available with every individual. It is because of the rules and regulations
mentioned in this law which can allow to operate business activity. Not only this, the legislation
and other sources of law allows to find the best way through which allow of the work can be
performed in a systematic manner. The impact of different law gives the idea that if in any of the
situation laws and regulations will not be considered then it may have a negative impact. The
process of starting any of the business is based on the nature and scope of business. Also, it is
essential for the business to understand that whenever they are performing any of the business
activity they must be able to take all of necessary steps for the purpose of forming the company.
In addition, there are certain circumstances where disputes occurs in the company and in that
respective situation it will be essential for the company to understand that have the multiple
number of option to resolve the issue even with the help of alternative sources.
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REFERENCES
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Hay, R. and Eagle, L., 2019. Impact of integrated sustainability content into undergraduate
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Online
Sources of law. 2018. [Online]. Available Through:
<https://file.globalacademicresearch.com/projectfiles/internal_cust_document/
BRIEF_1582623425.pdf>
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Walsh v Belfast Metropolitan College. 2020. [Online]. Available Through:
<https://www.casemine.com/judgement/uk/5e423aaf2c94e0394d733300>
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