Business Law in UK: Impact on Various Business Models and Formation of Different Types of Organizations

Unit 7: Business Law

INTRODUCTION
The business have an direct impact from law in very essential and vast for an enterprise,
there are various kind of business models in UK which play very important role in company. For
understanding depth of this topic we go through from nature of legal system in UK and the
source of law, the role of government to make law, impact on various law on any kind of
business, formation of various kind of business organisation with their funding and management
which have best solution for business model in UK and their sources of law(Begum, 2020). At
time of covering whole topic point by point we get to know for serious variations of law in UK
and their major scenario within sources of their organisation. Moreover, these important
information provides better view of legal system in UK and role which government play in same
legal system of country.
MAIN BODY
LO1 - NATURE OF THE LEGAL SYSTEM :
The UK have four country in this which is Scotland, England and Wales and Northern
Ireland, each of them have their own jurisdiction and courts law which apply various jurisdiction
were derived through parliamentary act and statutory instrument. They have various jurisdiction
and courts which can decide matter as according to their courtroom regulation but all matter
appeal lies to Supreme court of UK(Blindell, 2021). The legal system of country is working well
and still they have no written constitution for the country as Queen is head of state but all major
authority vests within the government which have all executive function. There are significant
constitutional since Labour Government came in force in year 1997. They immediately start
process for devolution, which means transferring some areas of government to countries which
forms UK.
DIFFERENT SOURCES OF LAW :
Mainly there are 3 sources of law in UK before December 31st 2020 but after exit from
EU, UK have 2 sources of law through which they consist law without a written constitution:
CASE LAWS :
The judge made decision in court of records or higher court will be binding on each
inferior court of country. From going through precedent in earlier cases the judgement of same
case happen in past which have been already decided assists court for having decision if facts of

case are same. Once case have to be decided in same facts such as new case then the case get
treated in same way like before as according to principle of “stare decisis” this means “ to stand
by things decided”, the lower court do follow precedence set through previous case with similar
fact and if facts were similarly sufficient and not exactly same as judge have options:
1) Distinguish : If case facts are different then judges have an option for distinguish 2 cases
and they do not have to follow decision of earlier cases.
2) OVERRULE : If the decision is made by lower court in a case, then in same case upper
court can overrule the judgement made by lower court(Baillie, 2019).
3) REVERSE : In which appeal raise on higher court then the judges can reverse the
judgement passed by lower court.
LEGISLATION :
This is the primary source of law in UK, this is the only entity which make or abolish law
and this means making a new law or altering existing one. Bill passed by parliament means
getting approval from both the houses then bill become act. There are steps which make new
law. The rules set from legislation were refer to statutory provision. The parliamentary act or
statue are essential source to form new law or to demolish older one as this is one of a primary
source for making law of country beside decision of judge in court.
ROLE OF GOVERNMENT IN MAKING LAW :
This have a big role of government to make law in UK as this is only a way for making
law in country through parliament. The legislation is made through parliament which have 2
house one is House of common and second is House of lords, the parliamentary act apply in all 4
country of UK.
There are two kind of bill which were produced before parliament:
1) PUBLIC BILL : The bill which is presented when public in large have to change law
adopted from cabinet in programme of legislative government.
2) PRIVATE BILL : The bill will be introduced through non ministerial MP's, the bill have
priority in some day but not regularly as the lack of parliamentary time.
COMMON LAW :
The decision made by appellate court or previous judicial precedent called as case law or
common law or case law, the system give pre eminence to common law as this is consider that
this is unfair for treat same fact in various manner(Cejnar, and Duke, 2018). The judges referred

to cases happened in past for making decision in present cases which were enforced in future
judgements of courts. In future when case come to court similar to previous one then the court
gives same judgement.
STATUTORY LAW :
This is a written document or an act which is being consider as will of legislature. This is
declaration for command formed by law which have to be prohibits or followed some actions of
people. This is a rule of law or system of principles which have been laid down through the
legislature which governs citizen of country. When the bill is passed from both the houses for
getting followed through every citizen and if they fail then judicial proceedings have to be done
against a citizen. The court have to follow the law or act passed be legislation.
M1 – EFFECTIVENESS OF THE LEGAL SYSTEM :
The UK's legal system is totally based on precedent which were clear as this have
substantive common law. After exiting European Union, UK have now become totally
independent judiciary with rule of law and the fact attracts business confidence which make
stability in commercial world and changes with a rapid speed. Arbitration of UK become most
common legal factor for resolve a dispute which have is a great thing for time efficiency of court
and the citizen of country or people in dispute. The organisation of UK are rising as according to
time and this become on of most leading insurance, commercial and financial centre in whole
world which make an impact on business in whole UK.
D1 – CRITICAL EVOLUTION OF THE LEGAL SYSTEM :
United Kingdom have common law in the country but this do not have written
constitution which makes whole difference and unstable situation which makes dis-balance in
law making or even follow them. In the court they apply rule of “stare decisis” which have to be
described above for the project(Cowling, and, et. al., 2020). Since they have dependency on
judgement which have given before use of judgement in similar situation which have been core
in UK courts but this break harmony of law when situation is related but not exactly same. Still
they have loopholes in legal system of UK which need to look after for betterment of citizens.