Legal Systems and the Potential Impact of Law on Business Operations and Decision Making

This study material covers the legal systems and their potential impact on business operations and decision making. It explains the different sources of law, role of government in law making, and potential impact of company, employment, and contract law on business operations. It also explores how different kinds of business organizations are legally formed and managed. The subject is covered under Unit 7 Business Law and is relevant for students pursuing business law courses in colleges and universities.

Unit 7 Business Law
Legal Systems and the potential impact of law on
business operations and decision making

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1 (ESSAY)............................................................................................................................4
P1 Explain the different sources of law......................................................................................4
P2 Describe the role of government in the law making and how statutory and the strand of
common law is applied in the purview of the court system of the United Kingdom .................5
M1 Critically Analyse the effectiveness of the legal systems in the terms of the recent reforms
and developments........................................................................................................................5
P3 Using specific examples, illustrate how company, employment and contract law has
potential impact on the business.................................................................................................6
M2 Examine the potential impact on the business through the difference between the
legislations, regulations and standards........................................................................................8
PART 2 (REPORT) ........................................................................................................................8
P4 Explore how different kinds of business organisation are legally formed ............................8
P5 Explain how business organisation are managed and funded ...............................................9
M3 Classify the advantages and disadvantages of the formation of the various kinds of
business organisation................................................................................................................10
P6 Compare different sources of legal advice and legal support for the dispute resolution to
make appropriate recommendations in respect to the legal solutions.......................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Detecting the determination regarding the knowledge of the Business law and its
regulations which follows its up under the mentioned provisions of the Company Act, 2006 in
the region of the United Kingdom. The regulations which are mentioned in the act works in the
conduct for the formation of the company. The scope of flexibility which tends to change the
things for the business or a company. The directives and process which is mandatory for the base
of to follow and work in accordance to it. The governmental authorities in the purview of the
United Kingdom provide assistance for the new business to boom and to tight knitted companies
to secure the position in the marketplace (Anning-Dorson, 2019).
The ascertain material is followed up by the Part 1, which is considered to be an essay
which states the directives and enactments of law which are beneficial for the company and the
formation of the business in the region of the United Kingdom.
In the extent of Part 2 which states as report, which determined the sectors of ADR and
its effect on the business and the operational functions of the companies.

PART 1 (ESSAY)
P1 Explain the different sources of law
To the purpose of explaining the different sources of law which tends to be covered by
the law-makers of the United Kingdom. To get the transparent understanding of how law and
legalities works and attains to help the business organisation, there must foremost understanding
where the law has been taken out from, there comes the sources of law which states relates with
the enactments which are working in an intact ,manner in the United Kingdom.
In the scope of United Kingdom, there held to be two different sources namely, The
Primary Sources and The Secondary Sources. Fitting the Primary Sources of law in the picture
which takes in the significance of the law contains, (a) The Common Law- This sources of law
is determined to be the law of the land, which is predominately necessary for the law and its
working. On the accordance of the common law, where every individual living in the UK and the
authorities needs to obey it. (b) The Legislation- This sources id determined to be the primary of
the triumph, as the potential of the UK is seen to be constitutional monarchy and the constitution
is unwritten, the regulations which are made through the process of legislations tends to keep the
enactments and solidify the law (Chamberlain, and Anseeuw,2019). The legislation procedure of
making the law which later are presented as act. (c) The Case Laws- This sources is stipulated
by the mighty strand of judiciary, the case laws are given by the judges of the court of law and
pertaining to be seen in the landmark case. The judges as a reference tends to be make the
possible case laws used as precedents. The bundle regarding different kinds of case laws can be
here within found in the law journals and the law books , the books and journal tends to be in the
scope of the secondary sources of law.
P2 Describe the role of government in the law making and how statutory and the strand of
common law is applied in the purview of the court system of the United Kingdom
The role of legal system which tends to be covered in the United Kingdom is considered
to be the foremost, and outbound, for a fact the legal justice structure of the UK has proven its
worth from years to years now. As the legal system is divided into England and Wales, Northern
Ireland and Scotland the measurements of the legal system vary somehow but it sticks together.
Purview of Common Law and Statutory Law in the Judicial System

The law of the land, hence the common law is similar and intact with the same
wavelength. The regulations and laws which are pertained by the legislation and uphold by the
judges of the court of law are different on the level that is where the statutory laws comes in the
picture for maintaining the fundamental and doctrines of the laws all together (Frosini, 2019).
For getting to know the law, there must prevail an understanding and easy determination of the
law. The legal directives contains the learning regarding, The Golden Rule, Mischief Regulations
which provide assistance for the getting the clear picture of the law.
Role of Government in the purview of Law Making Process
The rule making is determined to be an process which moves along in the legislation.
Parliament of the United Kingdom tends to have two houses, The House of Commons and The
House of Lords. The bills later goes in to the structural procedure which takes the determinations
with the steps which at last includes The Royal Assent which is necessary to be attained by the
bill to become an act which is followed later. There are tow types of bills which are processed
generally which involves The Private Bill and The Public Bill. The governmental authorities are
most certainly concerned with the mandate of the bill as it is for the welfare and development of
the country.
M1 Critically Analyse the effectiveness of the legal systems in the terms of the recent reforms
and developments
The measurements which are gravitates to be necessary for the possible parameters if the
legal system of the United Kingdom which involves the political factors, economical factors and
socio-cultural factors which later on the effects on the legal system within their various conducts.
The legal system has seen its highs and lows. Ardently, the English Legal system, tends
to have the solid hierarchy of the curt system which reflects the values and nurture the traditions
of the English legal system (Mills, 2020). The parameters which in the definite formations effect
the legal system includes,
(a) The parameters of the COVID 19 which ultimately puts an impact on the judicial
proceedings which seemingly improved after years. (b) Effects of the BREXIT on the judicial
system which gravitates the working of the court system and the legalities after the falling apart

of the Britain and the European Union, (c) Improving the judicial structure within the scope of
bringing the betterment in the digital platform, (d) Dwelling towards the equal opportunities in
the court of law, where comes around no types of discriminations and every gender ust induce
with equal pay scale.
P3 Using specific examples, illustrate how company, employment and contract law has
potential impact on the business
Affect of Company Law on the business
The indications of the meaning of the company law which relates with the business law and
provide assistance with its formations and other components to fall into places, while thee is the
major use of company law for the setting up of business. The regulations which supports the
business of the United Kingdom gravitates to be included in the Company Act, 2006. the
directives which are formatted covers the different stages of the organisation. There are various
kinds of companies which holds places in the UK such as, The limited Company, Partnerships,
Limited Liability and Sole Trader (Sobirovna,2021).
The existence of the parameters of the regulations of the company law seizes the
structures, (a) Protecting the rights and duties of the members of the firm, (b) representing the
duties of the director of the company, (c) pertaining with the learnings of the laws and the
lawyers of the organisation, (d) protecting the corporation from the legal, technical and every
other aspects which tends to put the firm at loss.
Affect of Employment Law on the business
The directives which are mentioned in the act of the employment law, states to be beneficial for
the workers of the company. The impact of the employment law on the business and the
corporation suffice to play its role safeguarding the rights of the employees. As it says, the
regulations of the employment law are employee driven , dwelling as the employees are the
priorities within the basis of the law (Wright,and Schultz,2018.). The subject matter which are
covered the employment law are, (a) carrying within the regulations and protecting the rights of
the workers, to induce the productivity level for the development of the company, (b) advancing

the measurements of the economical, political and every other aspect which tends to effect the
work life balance and surrounding of the company, (c) the support which the employment law
provides in the area of leaves, salary and wages, harassment and unfair dismissal.
Affect of Contract Law on the business
The nature and subject matter of the organisation define its role and its liabilities. The
components of the contract law derives to be of great importance fort he working of the
company. The structure of the contract can vary from clauses and by the kind of contract. Every
organisation is need of contract. The aspects of contract which hold it by in the organisation
works along everywhere, in the matters of employment, selling buying or any sort of merger
(Ryder2019,).
The major solicited work background of the contract is to explain the partners in clear
terms meaning and nature of the contract and the obligations which comes forwards from it. In
case, where the company does not work appropriately and does not follow the terms and
conditions of the contract, then the company who breaches the contract is liable. In case, where
the terms of the contract are not expressed in the right manners, then the contract gravitates to be
called as void.
M2 Examine the potential impact on the business through the difference between the
legislations, regulations and standards
Considering the witting of the legislations, regulations and standards which can be
calculated as,
Where, Legislations means, the determination of the rule making process which brings
abut to be of highly importance. It attains the scope of indulging wit the laws that are corrected
and measured by the Parliament. The predominant values which the legislation holds is of
immense importance. The legislations which are enacted for the betterment of the business or the
company, involves everything from the scratch, be it the positive laws or the negative laws. All

the laws works in the scope of the organisation. The illustration of the legislations which is
highly effective for the working environment of the company is Employment laws.
Regulations means, this subject matter is considered to be working in the parameters of
controlling what is necessary. The firm definition of the regulations tends to be covered as the
official rule or formal rule. In the course of action, the regulations connect the circumstance of
the firm, by protecting the clientele relations, looking after the health and safety measures of the
organisation, working on the ethical formations for the betterment of the company.
Standards means, this is determined to look after the statues which are mandatory
practices of the firm, such practices can advance the surroundings, ethics and potential of the
organisation and its workers. The determined standards must meet the statues of the regulations,
following the standards will advance the working conditions of the company.
PART 2 (REPORT)
P4 Explore how different kinds of business organisation are legally formed
In the scope of United Kingdom, there prevails various kind of companies which
maintains it places in the region which includes :
 Sole Trader- the registration method for setting up this organisation is not that
complicated. The assets and the other liabilities are considered to be shifted and
maintained by the sole owner. The process of registrations takes place from the HMRC
association.
 Partnership – this kind of organisation can imply to worked accordingly with one or
more partners. The shares, assets and every liabilities of the firm will be divided into both
the partners.
 Limited Liability Partnership (LLP) – this budding formation of the organisation
pertain to show similar traits as the partnership business. The method of registration
needs to necessary attributes which includes, the registration address, two members and
an agreement accordance with the LLP.

 Limited Company- this formation of company will be scattered into two parts, where
the organisation is divided into limited by shares and limited by guarantees
(Kwilinski,2019). The registration process of the business formation involves application
of IN01 form, the name of the company shall be unique, the type of the company, name
of the sectaries of the organisation, address of the organisation and other informative
relating to the shares and assets.
P5 Explain how business organisation are managed and funded
In the course of actions relating to the business and organisation which are setting up in
the United Kingdom. The complications and hard work it takes to collect funding for the
betterment and supporting the measures of the company, is all together difficult. The methods of
funding includes :
 The Environment of Funding – this arrangement plan states to be called as the general
credit or the state of affairs of lending money. This method of credit and lending brings
about with the small and medium enterprises.
 Banks as Financial Channels- this method which of gaining the funding used relate to
the earlier relationship of the banks, managers and the individual taking the loans.
 Angel Investors- These donors tends to provide their support through the fiscal values to
the small scale business and medium industries. The angel investors prevails to put their
focus on the start-ups to help them grow (Poon, 2018).
 Crowdfunding- it covers the small scale business and medium size enterprises. This
method of funding also has peer-to-peer financial fundamentals. This crowdfunding as a
method of funding is relatively growing every new day (Zournatzi,2018).
 Grants- in the knowledge of the UK, there are plenty of public grants which are open to
pubic an dan be associates with the enterprises. The parameters of grants heps the
organisation to turnover their business and help the organisation to advance.
M3 Classify the advantages and disadvantages of the formation of the various kinds of
business organisation

In the structure of the business formations and the corporate world inside the United
Kingdom, there pertains to be various kinds of business organisation, which are :
 Limited Company-
(MERITS)- in the case of loses or down the track days for the organisation, the essence of assets
and shares are protected by the shareholders. The benefits of the limited company conducts in the
manner, to holds it values in the area of sustainability.
(DEMERITS)- these limited company stipulates towards to cost much more other established
companies kinds. The registration process of the limited company takes places in the companies
house.
 Sole Proprietorship
(MERITS) – this business has easy fundamental in the process of registration which can carried
in the HMRC.
(DEMERITS) – things take south for the sole trader at the time of gaining the funds or
investments for the company (Sindakis, and Aggarwal,2022.).
 Partnerships –
(MERITS) - the attributes of the organisation are not complicated ad the head start is easy to
pursue. Platform of the partnerships decreases the risk of legalities
(DEMERITS) – the business fundamental of the partnerships tends to have unlimited liabilities.
Legal statues within this business organisation does not get into the way of the establishment.
Occurrence of disputes reverse the measures where the partners get into the conflicts.
 Limited Liability Partnerships (LLP) -
(MERITS) – The major tentative manner in which this business formation works, to secure the
fallouts in regard tot he workers, monetary subject matters and other working aspects of the LLP.
(DEMERITS) – going public in the measures of assets for the LLP is considered to be difficult
for the organisation. The documentation which relate to the assets,shares and account
informations must be submitted to the Companies House. In the purview of the profits which the
covers the zone of the company will be attained in the form of limited shares.
P6 Compare different sources of legal advice and legal support for the dispute resolution to
make appropriate recommendations in respect to the legal solutions

The determination of the alternative dispute resolution or the ADR is specified to
derived as the solution which is used in the state of affairs of resoling a dispute. When the parties
are tends to be in dispute of any sense, the method of ADR collectively works to respect the
issues and keep aside going to court of law. Significantly, the matters of conflict can be arranged
to be solve by the settlements which can be done between the parties.
SYNOPSIS OF CASE 1
ISSUE – Is the claim which is conducted by the employee towards the employer of the
organisation within the subject matter related to wages, is correct ?
SOLUTION- Looking at the facts of the case it can be states as a solution, that the
method of ADR which implies negotiation will be best involved option in this case.
EXPLANATION – Considering the facts of the case , where the parties to the case has
their individuals opinions which scattered out as different. The process of negotiation is
considered as the best space to resolve the dispute and to get the party to agree on the non-partial
terms. Involvement of a third party in the following procedure of negotiation tends to be the
negotiator who will provide assistance accordingly.
SYNOPSIS OF CASE 2
ISSUE- The ascertain calculated amount which has been asked form Janet, included with
the taxes which has been put on the telephone connection. Will it be accountable ?
SOLUTION – Classifying with the facts of the case, the method of Mediations is
determined to be best option for the conflict
EXPLANATION – Relating with the course of action of facts, the method of Mediation
is best of all for solving the disputes between the parties. The fundamentals of the case needs to
get through with the procedural Mediation. The parties would get relief from the hefty costs of
litigation.
SYNOPSIS OF CASE 3
ISSUE – The Appeal which is determined to be drifting, will encompassed to be with the
creditors or just one of the creditor ?

SOLUTION- Gaining the knowledge of the facts of the case relating to the Black Horse
organisation, the curse of action regarding in the ADR formation. It is best to use the method of
Arbitration (Hoffmann,2019).
EXPLANATION – In the process of Arbitration used to solve the dispute between the
parties, there is an third individual associated namely, adjudicator. The process arbitration
involves the method of adjudication in it. Later, the adjudicator will simplify the case and
provide the award.

REFERENCES
Books and Journals
Anning-Dorson, T., 2019. Complementarity of capabilities across cultures: Innovation, customer
involvement, and competitiveness of service firms across India and the UK. Cross
Cultural & Strategic Management.
Chamberlain, W. and Anseeuw, W., 2019. Inclusive businesses in agriculture: Defining the
concept and its complex and evolving partnership structures in the field. Land use
policy, 83, pp.308-322.
Frosini, J.O., 2019. Splendid Isolation or Open to the World? The Use of Foreign Law by the
UK Supreme Court. In Judicial Cosmopolitanism (pp. 29-68). Brill Nijhoff.
Hoffmann, S., 2019. International law and the control of force. In The War System (pp. 588-
612). Routledge.
Kwilinski, A., 2019. Implementation of blockchain technology in accounting sphere. Academy
of Accounting and Financial Studies Journal, 23, pp.1-6.
Mills, N., 2020. UK corporate corruption: A regulatory paradox. In Assets, Crimes, and the
State (pp. 171-184). Routledge.
Poon, J., 2018. Postgraduate student satisfaction in the UK. Property Management.
Ryder, E., 2019, March. Securing open justice. In Open Justice (pp. 125-142). Nomos
Verlagsgesellschaft mbH & Co. KG.
Sindakis, S. and Aggarwal, S., 2022. The Implications of Brexit for Small Businesses in the UK.
In Small Business Management and Control of the Uncertain External Environment.
Emerald Publishing Limited.
Sobirovna, T.R., 2021. Issues of further improvement of water cadastre legislation of
Uzbekistan. ACADEMICIA: An International Multidisciplinary Research
Journal, 11(4), pp.1241-1253.
Wright, S.A. and Schultz, A.E., 2018. The rising tide of artificial intelligence and business
automation: Developing an ethical framework. Business Horizons, 61(6), pp.823-832.
Zournatzi, C., 2018. International Conventions around Liability on Offshore Oil and Gas
Operations: National Jurisdictions and Sources of Law on Offshore Units and Crafts in
the United Kingdom and Greece. European Journal of Comparative Law and
Governance, 5(4), pp.378-400.