Legal Systems and the potential impact of law on business operations and decision making

This article discusses the legal systems in the United Kingdom and their potential impact on business operations and decision making. It includes an essay on the sources of law, role of government in law making, and the influence of company, employment, and contract law on businesses. The report analyzes the legal formation of different types of business organizations and how they are managed and funded.

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 Define various sources of law................................................................................................4
P2 Explaining the role of government in the law making and how statutory and stem of the
common law is applied in the scope of he curt system of the United Kingdom.........................5
M1 Analysing the effectiveness of the legal systems in terms of the recent reforms and
developments...............................................................................................................................5
P3 Using a specific examples, putting out an illustration of how company, employment and
contract law has potential influence upon the business..............................................................6
M2 Evaluating the potential influence on business through the difference between the
legislations, regulations and standards. ......................................................................................7
PART 2 (REPORT) ........................................................................................................................8
P4 Analyse how different types of business organisation are legally formed............................8
P5 Classify how business organisation are managed and funded...............................................9
M3 Analyse the advantages and disadvantages of the formation of various types of business
organisation...............................................................................................................................10
P6 Compare different sources of legal advice and the legal support for the dispute resolution
to make appropriate recommendation to the legal solutions ....................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Countering the knowledge with the directives of the business law which is directly
connected with the region of United Kingdom. The regulations in the scope of the business law
tends to be operated with the doctrine of setting up of a business, formation of the company and
other regularities which are of great importance for the operational functioning of the
organisation. The fiscal values of the organisation, tends to be increased by maintaining various
growth factors and components of the company. The legalities which are considered to be highly
in value for he company, which will provide a blueprint for the formation of the organisation
which will ultimately provide assistance for the development scale of the company (Bates, and
Henderson,2021.). There is not always a positive scale towards the organisation and its working,
and to repent the negative side there are regulations, legal statues and measures which are to be
kept intact for better significance and bling about enhancements in the company. This prescribed
format contains of Part 1 and Part 2, which is divided further into an essay and a report. The
essay will mention the importance of laws on the formations of business, whereas the report will

mention the parameters of the company, with the significance of the contract law, tort law,
alternative dispute resolution measures, law of taxation and employment law.
PART 1 (ESSAY)
P1 Define various sources of law
It is determined necessary to gain the knowledge of sources of law, to attain the
knowledge of the legalities which happened to be fuelled up in the base of United Kingdom.
Heading according to the facts, there are considered to be two types of sources of law, Primary
Sources of law and Secondary Sources of law in the scope of the United Kingdom. The extent of
the primary sources of law tends to be major effected part for the zone of law.
The scope of primary sources of law, contains, (a) The Common Law - this source of
law is considered to be as the law of the land. The common law derives as the supported root of
the firm law standing in the United Kingdom. The justifies legal system of the UK, tends to be
merge within the understanding that the constitution of the UK gravitates to be unwritten.
(b) The Case Laws- used by the judges authorities, in the purview of the court of law. The case
laws are later utilized by the judges, formed as precedents. The case laws later termed as
landmark case, can be found in the law journals. (c) The Legislation- the termed constitutional
monarchy which is practised in the United Kingdom. The term holds the scope of Parliament
which tends to include, The House of Commons and The House of People. The persuaded
directives which are made through the process of bill making in the extent of the legislation
(Deb, 2022).
P2 Explaining the role of government in the law making and how statutory and stem of the
common law is applied in the scope of he curt system of the United Kingdom
The prescribes context which is associated to the mighty legal system of the United
Kingdom, it has been clearly divided to implicating a structure which involves, England and
Wales, northern Ireland and Scotland. Moreover, the authoritative parameters includes the stems
such as, The judiciary and The executive and the legislature.

Scope of Common Law and Statutory Laws in the purview of the judicial system
The directives which are given by the judges of the court of law, are not in the same role
with the directives which are given by the legislation. The lore of the operational functioning
which is associated wit the statutory laws. The knowledge which provides with the
comprehension of the law needs to be transparent enough for the understanding to get through
with the law. Relating with the knowledge of the informations which involves the different kinds
of postulates, the regulations related to mischief, the golden rule and purposive perception
(Lee,and Riffe,2019).
Role the government plays in the process of law making
The process start within the implications which are put forwards by the administration of
the legislations and the authorities which plays an header for the law making pursuit.
Furthermore, the process involves the installation of the bill which goes to the house (Lemassel,
2020). The bill is divided in the Public Bill and the Private Bill. The bill goes ahead with the
procedure of the reading and few more phases which are to be fullerides for the conduct of law
making, at last, it goes down with the royal acceptance. The introduction of the bills within the
law making process tends to put an impact on the common law of the land, here within the
United Kingdom.
M1 Analysing the effectiveness of the legal systems in terms of the recent reforms and
developments
The legal system of the United Kingdom which can be termed as the most distinctive
manner and which can be tends to fold by different types of factors. The systematic arrangement
plan regarding he legal system can be covered in the aspects to the politically measurements,
economical measurements and social measurements. In the scope of the legal system which turns
out to be covered for the benefits and eventually has a huge impact on the legal system which
involves, the factors of COVID-19 on the legal system, parameters of BREXIT on the legal
system, opportunities in the justice system which chaperoned to be necessitate with the purview
of equality and the announcements in the legal system which revolves into the public legal
information (Test,2021).

P3 Using a specific examples, putting out an illustration of how company, employment and
contract law has potential influence upon the business
The influence of company law on the business
There are factors of the company law which influence the formation and working of the
business in the scope of the united Kingdom. The purview of the regulations which are involved
within the scope of the company law incudes the rights and duties of the director and better
learning scenario for the comprehension of the business. The provisions which provide
assistance for the business within the laws of business are laid down in the Company Act, 2006.
The existence directives which are encompasses by the company law, involves (1) The
regulations which can safeguard the rights and duties of the employees of the organisation.
(2) to lay down the duties of the director of the organisation. (3) attaining the knowledge
regarding the associates, legalities and law for the benefits of the company.
The influence of Employment law on the business
The directives which are laid down in the purview of the employment law, provide
assistance towards the compass of thee employers. The procedure on the basis of the amount
score related to the components which acquires its position within hiring, procedure of salary and
training purposes. The rules which states the amount of equality which is necessary for the
employees and the employers (Vandich, 2022). Other maintainability parameters which are
looked after by this act, which tends to secure the issues which are usually faced in the scope of
the leaves, harassment be it physical or mental, loss of pay, termination of the job and issues
regarding salaries. The regulations which are related to employment are tends to be focused on
the sole purpose of the employees safety and their rights. The extent of benefaction and support
which handles the manoeuvrer of the rights of the employees, the health status of the employees
and other values which are necessary to be taken into account as per the factors of the
employment law.
Influence of Contract Law on Business

The components which are necessary for the formation of the contract, which works
accordingly in the maintenance of the contract for the operational values of the company. It is
essential before the consummation of the contract to understanding the significance of the notion
and the clauses which are mentioned in the contract (Kourabas,Ramsay, and Upadhyaya, 2020).
In the viewpoint of the notions which are usually added in the contract connects with the selling,
buying and other components related to the business. The course of action which regulates in the
parameters for the conduct of the organisation. The valuation of the company tends to covered in
the contractual terms and the further context related to contract covers its own perspective within
the directors, employer and employee relations following its terms with obligations. The extent
of the company can be gravitated towards partnerships, limited liability or sole trader, all the
factors of related to the business variables can be entered into terms within the contractual
liabilities (Hardman,2022).
M2 Evaluating the potential influence on business through the difference between the
legislations, regulations and standards.
Critically analysis of the regulations, legislation and standards which in their own source
puts an impact on the business and its conditions, the definitions of the pursuit can be determined
as,
Regulations can be defined as, the regulations or directives which is mandate to be followed, in
its conduct it puts an impact on the business for the protection the clients and provides the print
for the health and safety within the workspace.
Legislation can be defined as, this gives out a measurements of plan which covers the working
of the business parameters. It works accordingly in the mannerism of the process of hiring, salary
measures and any conduct related to the inequality (Giliker, 2021).
Standards can be defined as, this is termed as the elements which covers the measurements
which are picked up to do something. It puts an impact on the betterment of the working
conditions, in the standards of the goods and services and moreover it can bring about
advancements by understanding the role of the present scenario related to the marketplace for the
enhancements of the business.

PART 2 (REPORT)
P4 Analyse how different types of business organisation are legally formed
Understanding the extent of the corporate world, where states to be various types of
companies budding in the United Kingdom, the dwelling amount of formation of the company
related with the levy which is paid y the company. In the structure of the companies variables,
there are fur types of companies present, which are :
 Sole Trader – This kind of company tends to be generated by the individual who is
working solo for the company. The procedure of registration is covered by the role of
HMRC. The assets and other variables of the company are divided to the personal muse
of the owner. The introduction of the HMRC account and the finances are done
accordingly.
 Partnership – the structure of the company tends to be covered within the two or more
individuals which gravitates to take hold of the shares and assets in a combined conduct.
In the scope of the organisation the registration of the company took in charge to register
under the extent of HMRC.
 Limited Liability Partnership (LLP) – The organisation which laid down the
provisions as similar as the partnership company the framework related to the registration
process of the LLP considered which involves a registered address, consists of the
competent parties, LLP pursuit working agreement, Registration related to the LLP which
will be done through the course of action of the Companies House (Khodayarinejad,
2020).
 Limited Company – The company purview which can be scattered into the company
which is limited by shares and the company which is limited by guarantees. The state of
affairs of the registration variables is done through the application of the Form IN01. The
state of affairs which includes the name of the company, the address of the organisation
and the other informative related to the shares.

P5 Classify how business organisation are managed and funded
Encompassing the curse of action acquired in the sphere of business and organisation in
the United Kingdom. The operational functions related to the funding are not easy as it seems.
Undergoing for the measures of attaining the funding which needs to be done by following the
steps of the funding :
 Environment Funding – This technique which is usually used by the Small and Medium
Enterprises (SMEs), it involves the state of affairs of general way lending and giving
credit related to the fiscal values.
 Banks – The relationship which has been maintained between the individual who is
taking the credit of money from the bank managers (Kharisma, and Hunaifa,2022). The
scope of loans act accordingly in this pursuit of this bank management.
 Grants – The sort of connection which can be budded and enhanced while involving the
business and the company with the betterment of the governmental authorised grants.
These public grants will provide assistance to the business and the setting of the
company, it will provide an ray of hope for the companies.
 Process of Crowdfunding – This method is well known in the area of Small and
Medium Enterprises, the scope of SMEs is regulated covered by this method. This
method is also known as P2P including wit the coverage of the financial fundamentals.
 Angel Investors – The extent of small scale business and organisations are covered by
these donors, which provides the funds for the greater goods of the company. The
funding which is provided by the angel donors through he exchange of the equity of the
shares and assets.
M3 Analyse the advantages and disadvantages of the formation of various types of business
organisation
As in the scope of the business organisation which are acquired in the United Kingdom,
which follows around they most certainly contains their own advantages and disadvantages,
which can be states as :
 Limited Company : As the benefits of the limited company face the benefits of the
company which gives abut the outcomes which provide assistance to the company. As an

disadvantage of the limited company, it bring about huge amount and the registration can
be associated with the companies house.
 Sole Trader – the registration is easy and not much complicated, it can be done through
by the process in the HMRC. The disadvantage which is highlighted in the sole trader
business it tends to have difficulties in rasing the investments for the company.
P6 Compare different sources of legal advice and the legal support for the dispute resolution
to make appropriate recommendation to the legal solutions
It is to be determined in the coursework related to the ADR or the Alternative Dispute
Resolution, which takes up on between the parties to resolve the dispute. This process eliminate
the process of litigation which is prolonged in phase. Within the understanding of the framework
which is necessary to wit upon, is this process resolve the dispute without outside the spectrum
of the court of law. The dispute can be related to an individual, an organisation or any other
entity. The conclusion which comes out after the resolution of the dispute, tends to be non-partial
and acquired in a manner which can be eventually beneficial for both the parties. The thrid party
take active part in resolving the conflict between them (Hardy, 2022.).
OUTLINE OF CASE 1
Legal Issue- Whether fabrication of claim made by the employee towards the employer within
an organisation in relation to wages is appropriate?
Legal Solution- Considering the facts of the case, it is determined that negotiation will be
suitable option available to the parties.
Explanation – The Negotiator will be appointed by the parties to amicably settle their dispute.
The informal discussion will be take place between them to adjudicate the decision and assist
them in their commercial matter. The conflict raise between the employee and employer can be
easily resolve with the help of dispute resolution mechanism.
OUTLINE OF CASE 2
Legal Issue- The delay in installing phone lines and charging high installation fee is appropriate?
Legal Solution- Aforementioned case can be resolved with the help of Mediation procedure to
assist the parties in their matter.

Explanation- The Mediation process is the most economical way of settling the dispute among
the parties. The mediator is appointed who formally take part in discussion to understand the
subject matter of the dispute to guide the conflict and take effective measures to amicably settle
their indifferences. So, the parties can appoint the third party to interfere in their matter an d
settle them quickly (Malafronte,and Pereira,2021).
OUTLINE OF CASE 3
Legal Issue – Is the appeal made by the creditors for winding up of a company is valid?
Legal Solution- Considering the facts of the case, the Black horse organisation must settle their
affairs through Arbitration procedure as it is the most fastest mechanism of resolving the legal
matters between them.
Explanation- The process of arbitration gives quick solution to the parties through which they
get quick decision which are binding upon the parties. This method is most appropriate to settle
the commercial issues. The arbitrator can make effective decision to decide the winding up of an
organisation. But, party cannot appeal for the decisions made by the arbitrator.

REFERENCES
Books and Journals
Bates, J. and Henderson, S.J., 2021. The determinants of corporate saving in small private
companies, United Kingdom. In Economic Studies in Profit, Business Saving and
Investment in the United Kingdom 1920–1962 (pp. 182-195). Routledge.
Deb, E., 2022. International Business Law-Critical Review on Corporate Governance in
UK. Available at SSRN 4074105.
Giliker, P., 2021. Legislating on Contracts for the Supply of Digital Content and Services: An
EU/UK/Irish Divide?. Journal of Business Law, 2021(2), pp.143-162.
Hardman, J., 2022. United Kingdom historical viewpoint. In Research Handbook on Shareholder
Inspection Rights: A Comparative Perspective. Edward Elgar.
Hardy, E., 2022. The Effect of Human Resources Management Practices on the Quality of
Employee Work and Employee Satisfaction-A Comparative Analysis of United States
and United Kingdom Companies. Available at SSRN 4148650.
Kharisma, D.B. and Hunaifa, A., 2022. Comparative study of disgorgement and disgorgement
fund regulations in Indonesia, the USA and the UK. Journal of Financial Crime.
Khodayarinejad, A., 2020. The Jurisdiction of the UK Courts to Investigate the Crime of
Commercial Bribery. Journal of Legal Research, 19(43), pp.157-179.
Kourabas, S., Ramsay, I. and Upadhyaya, M., 2020. Equity Crowdfunded Companies in the
United Kingdom: What Factors Determine Post-campaign Success?. Company and
Securities Law Journal, 37(6), pp.426-434.
Lee, T.H. and Riffe, D., 2019. Business news framing of corporate social responsibility in the
United States and the United Kingdom: Insights from the implicit and explicit CSR
framework. Business & Society, 58(4), pp.683-711.
Lemassel, M.M., 2020. Regulations of financial institutions in the US/UK.
Malafronte, I. and Pereira, J., 2021. Enterprise risk management in the United Kingdom.
In Enterprise Risk Management in Europe (pp. 243-259). Emerald Publishing Limited.
Test, R., 2021. An Unwelcome Development in the UK Corporate. BUSINESS LAW
INTERNATIONAL, 22(2).
Vandich, A., 2022. Seven reasons to open a company in the United Kingdom.