Business Law: Sources, Role of Government, Impact on Business

This document provides an overview of business law, including the various sources of law, the role of government in making law, and the potential impact of company, employment, and contract law on business. It also explains the legal formation of different types of business organizations.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Various sources of law................................................................................................................3
P2. Role of government in making law and applicability of common and statutory laws ........4
M1. Evaluate effectiveness of the legal system as per recent reforms .......................................5
TASK 2............................................................................................................................................5
P3. Illustrate how company, employment and contract law has a potential impact upon
business.......................................................................................................................................5
M2. Differentiate between legislation, regulations and standards to analyse potential impact
upon business..............................................................................................................................6
D1. Coherent and critical evaluation of the legal system and law..............................................6
TASK 3............................................................................................................................................6
P4. Explain types of business organization and there legal formation.......................................6
P5 Advantages and disadvantages of unincorporated and incorporated, business organizations
.....................................................................................................................................................7
TASK 4............................................................................................................................................8
P6. Analyze legal solutions for resolving a range of disputes with examples............................8
M4. Comparison of different legal sources and advice for dispute resolution........................10
D3. Evaluation of legal solution and advice for dispute resolution..........................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12
Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Various sources of law................................................................................................................4
P2. Role of government in making law and applicability of common and statutory laws ........5
M1. Evaluate effectiveness of the legal system as per recent reforms .......................................6
TASK 2............................................................................................................................................6
P3. Illustrate how company, employment and contract law has a potential impact upon
business.......................................................................................................................................6
M2. Differentiate between legislation, regulations and standards to analyse potential impact
upon business..............................................................................................................................7
D1. Coherent and critical evaluation of the legal system and law..............................................7
TASK 3............................................................................................................................................7
P4. Explain types of business organization and there legal formation.......................................7
P5 Advantages and disadvantages of unincorporated and incorporated, business organizations
.....................................................................................................................................................8
TASK 4............................................................................................................................................9

P6. Analyze legal solutions for resolving a range of disputes with examples............................9
M4. Comparison of different legal sources and advice for dispute resolution........................11
D3. Evaluation of legal solution and advice for dispute resolution..........................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law is those types of rules and regulations that help in giving legal
stability for establishment of a company. They are those set of provisions
which are mandatory to be followed by all organization for smooth
transactions and dealing. Scopes of such laws are very wider in scope and
cover all legal aspects that are important for formation of an organization. In
the following file thing that are going to be covered is various sources of law,
role of government in law making, impact of different types of law upon
business. Further in the file formation of business organizations of various
types, its funding and management. Also, legal solution with case law is
explained.
TASK 1
Various sources of law
English law legal system is of a very dynamic nature which consist of
various types of laws and rules, which helps in governing individual within an
organization. There are certain sources that are to be followed as they
provide basic framework for laws to be formed. These sources are divided
into two type’s primary and secondary resources (Peterson. and et. al.,
2016). They are explained as follows:
Primary sources: Such sources are the very basic in nature and
contain original content that has not yet been used. These are as follows:
Common law: It consists of those judgments which are passed by courts.
Also consists of facts, issues, decision and laws that have been used in a
particular case. All these are prepared under a report known as legal report.
Doctrine of judicial precedent is followed in UK under which cases related to
laws are concluded as per previous judgments passed.
Legislation: In this source two houses are there, House of Lords and House
of Commons. Bills are presented in front of these houses in order to enact as
permanent law in UK. This is done for protecting of rights and making society
a safer place to live.(Bird, 2016)
Secondary sources: These are the sources that help in extracting of
information from those primary sources which are in existence. Further it is
explained below.
Legal encyclopedias: These are the most trusted and very well known
encyclopedia all over the world. It gives information about all legal term
present under various laws.
Parliamentary and non-parliamentary publications: These are that
sources which deals with command papers and debates which take place in
the houses of parliament. Reports of such type can be easily found over
official website of government.
Law commission: They are the commission which helps in making a law
more effective. Also helps in covering its flaws and loopholes. Such
commission provides recommendations for making amendments. Judgments
given by them are not at all based.

Textbooks: This is the most effective way of gaining knowledge for all
those law official and students. All this happens because kind of
language used in it is very easy to understand. Variety of authors has
explained various laws in easy manner.
P2. Role of government in making law and applicability of common and
statutory laws
Government has to play an important role for forming law in a
particular country. They help in formation of those policies and plans which
provides a better environment to the people living in the society. These laws
also become a key element for maintaining discipline and order in society.
Role of government in law making is explained below as follows:
Executive role: Role of them is related to making policies that is
implemented to all over UK. Enforcing of legal provision is very important for
managing of law and order. It consists of Queen, prime minister and other
members of cabinet (Allen. and et. al , 2016).
. Legislative role: As per this role various laws have been enacted
that which are presented in the form of bill in the parliament. There are two
types of houses and they are (House of Lords and House of Commons). They
have role of debating over the bill and finally suggesting government if any
changes has to be made. It is their responsibility to help in making bill an
effective law.
Judiciary role: Role of judiciary is very important as it guides, all
existing courts which is falling under various jurisdictions and through its
effectiveness in passing judgments. This helps in covering of loops holes that
are becoming barrier for delivering of justice in certain cases. All judges of
senior most position and higher government officials are part of this.
Statutory and common laws also play a major role in maintaining
balance in society. Both of these laws are very much essential for promoting
smooth justice system in courts. Further explanation about these laws is as
follows:
Common law: In these courts make landmark judgments into a
particular case which helps in forming of base for various cases of similar
nature. Such judgments also help in promoting positive role of judiciary in
giving justice. These laws are known as common law or case study. New
laws formed out of these judgments are base for dealing with other same
kind of situation (Hamad, Elbeltag. and El‐Gohary., 2018)
Statutory law: These are those concrete forms of laws which help in
giving a strong base for helping in governing of rights and duties of people
living in a country. All the laws are formed by legislative body of a country. A
fixed procedure is followed for passing of bill in the parliament. These laws
later on are applicable all over the country. It forms that kind of legal system
over which various statues and laws are established. Declaration done by
government is very important to be followed by every individual.
M1. Evaluate effectiveness of the legal system as per recent reforms
Laws of UK gone through lot of changes and many flaws are still left
unnoticed. Modification done into the field of law is able to moderate crimes

but has not been able to create a strong impact within the society. Modern
system of law is very complex and is difficult to understand. Due to existence
of different parts under laws of United Kingdom has made it difficult in
formation co-ordination in the legal provisions. With the existing modern
system of law in other countries, it is still considered to be outdated. This
reduces tendency of legal applications and rules in appropriate way. Thus, it
can be said that, still lot of improvement is required for reducing complexity
and significant changes has to be made in order to enhance effectiveness in
legal system( Hibschweiler. and Salzman., 2017).
TASK 2
P3. Illustrate how company, employment and contract law has a potential
impact upon business
Various laws have been introduced by government of UK which helps in
regulating of business organization. This has created stronger impact upon
functioning of such organization that I explained as follows:
Company law: Such type of business laws has to follow regulations
prescribed under Companies Act, 2006. This act has played very crucial role
in promoting less complexity under system of incorporation for a company.
This helps in availing of all privileges given to a company as per the act.
Under any circumstancesIf the company fails to follow this law then they
have to face consequences and legal issues which can lead to windup of a
company. For example, DCB Pvt. Ltd. tried to raise fund for motive of
expansion of its business. As the company fails to use their financial
resources for motive given in its prospectus. So, under such condition,
stakeholders can file a case upon the company (Allen, 2017).
Employment law: Human resources are very important element that helps
in achieving fast and better growth in an organization. These laws help in
protection of rights and duties of employer and employee. Under these laws
only safe and secure environment is mandatory to be formed for an
employee and it is applicable in legislation as per true spirit of law.
Employees Act of 2002 and Equality act of 2010 is to be followed by a
business organizations for guiding about health and safety measures. Also
following of these rules can result in high turnover for employees. For
instance, employee is teased for color by his manager; under this situation
case can be file by the employee against manager as well as upon the
company ( Amariles, Bassilana. and Winkler, 2018)..
Contract law: All kinds of business organizations are very keen upon doing
a business for which they are required to form agreement in order to carry
out transactions. So, those any kind of legal obligations can be avoided. This
is most important and required part within an organization. Every transaction
is deal through terms and conditions mentioned under contract. In UK
specific law has not been enacted through its government but instead these
are governed by Sale and Supply of Goods Act. Violation of these rules is
going to revocation of contract. For instance, a company has entered into
contract formed by IG Ltd. With its raw material provider, in under which he
violated the contract by not able to make payment within required time
period, hence, the contract was revoked by the suppliers.

M2. Differentiate between legislation, regulations and standards to analyse
potential impact upon business
Legislation: They are formed by government in the form of laws
enacted through amendments. These become an act after receiving
Queen's assent. This law is applicable to general public in order to provide
them security. Bill is presented under House of Lords and House of
Commons. Such legislation is formed by state and federal government and
are mandatory to follow.
Regulations: These are those instructions which are given in order to
enforce of administrative laws in appropriate manner. These have come out
from existing legal provisions within a country. These are also mandatory to
be followed.
Standard: They are fixed rules and regulations or guidelines which
are mandatory to be followed by company, in order to achieve goals and
objectives. It is implemented by government for ensuring the minimum
criteria that has been help in maintaining of quality within product and
services.
D1. Coherent and critical evaluation of the legal system and law
Legal system in a country like UK should be efficient for providing
proper justice without causing any problem. All legal system consists of
various parts which are judiciary, executive and legislative. Legal system of
UK's is very much outdated and needs lot of amendments in it. Existence of
direct relationship between law and system used to follow it. Any defect
exists in legal system prohibits from promoting of laws in proper manner.
For example, UK legal system is of very complex nature and also difficult to
understand which has resulted in making poor laws which has given rise to
unfair maintenance of law and order in the country.
TASK 3
P4. Explain types of business organization and there legal formation
Lot of business organizations can be there depending and types
mentioned under law specified for it. Procedure of establishing a business
comes under these laws only. These can be small, medium and large. Some
organizations are explained as follows:
Sole proprietorship: This form organizations are handled by an individual
person and is suitable for small business. This means only one person is
owner of this organization and contains whole responsibility of it. Such kind
of person is known as sole proprietor. Also, there is no liability of this type of
organization (Tepe, 2016)
Partnership: In such kind of businesses two parties come together with a
common interest of earning profit. Liability of such company is not limited, as
per the investment amount. So, that situation can be managed and handled
in better manner. For setting up of partnership company legal
documentation is done that helps in figuring out total contribution amount.
Joint Venture: In this type of business more than two organizations comes
together for full filling of specific project by making legal agreements. In
order to distribute liability accordingly.

Limited liability Company: Such kind of business has a major benefit like
rebate in tax payment and limited liability of both partner and owner.
Working environment of such company is of hybrid nature. Both corporation
and partnership can be made.
Corporation: Main purpose of such company is to provide better benefits in
terms of services and product. In order to run these businesses large amount
of capital is required to be invested for establishing it. As in the given case that
there are lot of different ways of raising fund for a company and they are as follows:
Issuing of new shares.
Bonds and debentures can be made.
Through rising of funds by debt methods.
Loans from different private and government financial institution.
P5 Advantages and disadvantages of unincorporated and incorporated,
business organizations
Incorporated organizations are those kinds of business organizations in which
personal legal existence is there, due to which it is easy to be a part of any
contract. This is one of the safest and secured businesses methods and rising
of fund is easy in such businesses. Advantages and disadvantages are as
follows:
Advantages:
Right of perpetual sequence is faced by company (Scheuerman, 2017)
Major advantage of such organization is easy to sue and get sued.
Disadvantage:
Discloser is not easy once incorporated.
Process of setting up of such business is time consuming and lengthy.
Unincorporated Organization: In such type of business mainly the
operations and events are executed in order to gain huge profit. This kind of
business is not legalizing to pay taxes. As company do not exist in the eyes
of law because of its process of formation. Arranging of funds is also not easy
for such type of organizations. Advantages and disadvantages are as follows:
Advantages:
Filling of annual accounts is not mandatory.
Lower cost of compliance is there for such businesses.
Disadvantage:
Legal and authenticated contract is required for a company for doing
business with an organization.
There is a major difference among incorporate and unincorporated
businesses that are discussed below:
Incorporated Association:

Name and address must be decided and attested properly.
Shareholder and manager are there for these businesses.
Memorandum of Association should be there.
To designee Article of association approval from stakeholder is required.
Responsible person must forward the Standard Industrial classification to
companies House.
The main sources of raising funds is taking loan from bank, issue of bonds,
share etc.
Unincorporated Association:
Set the actual objective of business.
A valid contract has to be made, when there is two or more partner.
In this association liabilities are not limited so it is essential to consider
amount of share.
There are various sources of raising funds in this kind of association such as
bank loans, capital, and raising funds for private money lender.
Some major advantages and disadvantage of companies in partnership firm
are defined below:
Advantages:
Company has the major benefit of enjoying right of perpetual succession
while partnership companies have major problems related to changes (Bird.
and Park, 2016).
In partnership firm it is not easy to raise funds as compared to company.
Company has limited liabilities and under partnership entity the members
consist of equal liability.
Disadvantage:
A partnership can be established easily. As compared to a company.
In context of company the decision-making process requires huge funds on
the other side funding are easy to make meaningful decision in partnership
firm.
TASK 4
P6. Analyze legal solutions for resolving a range of disputes with examples
Such solutions are those types of solutions which provide remedies as
per law. These remedies are world widely used whenever a dispute or
conflict takes place among two parties. And they are willing to take out
solution in order to end the dispute. Various types of legal solutions are there
and can be used by individual as per there problem and circumstances under
a situation. Every process involves proper procedure that has to be
applicable according to the situation. Some solutions of such nature is
explained below and are as follows:

Negotiation: Under this solution, both the parties has to talk to each
other face to face in order to reaching a solution. All this is done for solving
a particular dispute between them through mutual consent by adjusting
existing terms and conditions.. For helping in sustaining of relationship in
future between both parties. This method of solving dispute is one of the
easiest and less complex procedures out of all. Various kinds of features are
there like flexibility and most importantly confidentiality. This can be
understood better through this example Jacob Co. Ltd. And Stones shines.
Ltd. Entered into a dispute in terms of patents and because of this huge loss
has to be faced by the company. (Lee, 2017). Negotiation can be used here
and a meeting can be happen between both the parties. A solution can be
taken out.
Mediation: As per this method a third party is there who has to act
natural and should not be biased. Its aim is to guide both the parties in order
to talk to each other. Such method can be used only after failure of first
method. Role of mediator is to is to help both parties to come to a solution
that is going to help in sorting out dispute that has existed between them.
Mediator also helps in taking out main problem of dispute, this helps in
enhancing of co-ordinations. This helps in coming to an creative conclusion
out of discussion. It is easily applicable and sometimes legal personal is
required. For instance, worker is in wrong manner at the workplace that is
against legal conduct of a company. Mediation is going to be helpful in
solving the dispute..
Conciliation: It is helpful in sorting dispute taken place between two
parties outside the court. It consists of various characteristics which makes it
easy to solve dispute through self understanding. Only difference between
mediation and conciliation is that a conciliator can ask both parties and takes
out proposal which is non-binding. Public proceedings are dealt through this
method. The things which are included in conciliation is parties' legal
positions, commercial, financial as well as personal interest.
Arbitration: This method is final way of settling a dispute occurred
between the parties and its characteristics are also very suitable to give
proper solution. A person is appointed by taking permission of both the
parties or through mutual understanding. Such person is known as arbitrator.
No other requirements have to be full filled. This method is applicable
differently over various situations. More than one person can exist in a panel
of arbitrator and can give independent conclusion. Parties to dispute have to
be submitting evidences in the form of witnesses. Award for arbitration
should be in written form and is binding over both the parties.. The judgment
cannot be challenged in the courts. For example, there has been a dispute
regarding patent infringement between two parties, this can be resolved
through arbitration.
Recommendation: After analyzing all the methods with example,
most trustable and durable method is arbitration. It is most suitable way of
solving a disputes or conflicts. Also cost efficiency is there which gives is
more durability. Also, it involves a third independent person whose judgment
is not biased or influenced with any factor. Thus, the decision passed by the
arbitrator can be relied upon.

M4. Comparison of different legal sources and advice for dispute resolution
Legal advice is referred as an opinion which is in writing and is
presented in a formal way by an advocate. An client visits an advocate to
get legal advice, lot of things about the problem which includes facts and
also situation. How the whole proceeding will be carried out. Various sources
for gaining legal advice is given as follows:
Free legal consultation: In this a lawyer has a direct conversation
with client in which the whole issues and facts will be heard by him. This will
be followed by providing some time to the client so that he can decide
whether to proceed with the lawyer or not. There is no charge or obligation
from lawyer's side. Many questions are asked by both the parties.
Legal aid programs: Under these services assistance is given to
those people who are not able to pay for legal consultation fees. Main aim of
this program is to provide equality in legal right to every person. This has to
be done for maintaining equality in justice.
Self-help legal aid: An individual himself has to implement rights
that is legally vested or is reserved for an individual.
D3. Evaluation of legal solution and advice for dispute resolution.
Legal solution is that kind of remedy that is applicable upon solving of
dispute or conflict. This can be achieved in the form of negotiation,
arbitration, conciliation and mediation. It is basically out of court settlement
that helps in finding of solution and resolving of conflict. It is very useful
ingenerating immediate conclusion and also for future dealings of any
dispute.
An legal advice is a formal opinion that is given in writing that what has
to be done in particular situation to get justice. Such are given by
professionals only after hearing facts and issues of the client. For,
appropriate utilization of money and time.
CONCLUSION
From the above file it is clear that business laws are those kinds of
rules and regulations which is very important for running an organization in
smooth and lawful, manner. Different sources are there which help in
providing lot of information about laws and also role of government in law
making is explained. Statutory and common law is also necessary to
understand. Further various kinds of laws are defined together and also
impact upon business. Various types of business organization and there
management has to be explained. In the end contribution of legal solution in
resolving dispute with examples.

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