Business Law Report

This report provides a detailed analysis of UK business law, covering its sources, the government's role in law-making, the impact of various laws on businesses, different types of business organizations, their management and funding, and legal solutions for resolving disputes.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different sources of UK law.................................................................................................3
P2. Role of government in law-making and application of statutory and common law in
justice courts................................................................................................................................4
TASK 2............................................................................................................................................6
P3. Using specific examples illustrate how company, employment and contract law has a
potential impact upon a business.................................................................................................6
TASK 3............................................................................................................................................7
P4. Explore how different types of business organizations are legally formed..........................7
P5. Explain how business organizations are managed and funded.............................................8
TASK 4 ...........................................................................................................................................9
P6. Recommend legal solutions for resolving a range of disputes using examples followed by
a recommendation.......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is a body of law that regulates business activities and their commercial
transactions. These are meant to protect parties involved in the transaction from fraud and similar
acts. It is a part of civil law in which general public can see justice and legal remedies. The
support covers define sources of law in UK from which information about legal provisions can
be gathered, role of government in law making, potential impact of various laws upon a business.
Furthermore, different types of organisations along with their management and fundraising.
Along with this different types of legal solution in order to resolve number of disputes.
TASK 1
P1. Different sources of UK law
English legal system is divided into three parts that prevails England and Wales,
Scotland and Northern Ireland. Each of them has their own courts and judges resolve to legal
cases. UK a does not have a completely written constitution and is complex which needs
amendments to make it effective. Furthermore, there is centralisation because the highest
authority to take decision regarding the country is with the parliament in consultation with the
Queen. A person can have knowledge about various acts and legislations through number of
sources which are as follows:
Primary sources: These original, first hand information researched by people who have
direct connection with the topic. Please have been mentioned below:
 Case law: these are the judgement or decision given by judges in the court for cases that
have been filed. Decisions are included in a report which can be used to gather
knowledge for its subsequent application. Each case is concluded on the basis of judicial
precedents which form a basis to be used to determine decisions in future.
 Legislation: In UK, Westminster Parliament has the highest authority to enact laws that
will govern the rights of citizens living in the country. There is a set procedure which is
followed for converting a bill into an act. UK constitution has laws for written part.
Secondary sources: When the information extracted from primary source is used again
by scholars or authors to conduct their research then search sources are called secondary
which are elaborated below

 Legal encyclopaedias: Halsbury's legal dictionary is considered a full-fledged source of
terms that are used in law. It is prepared with utmost precision by considering the
expertise of lawyers. These are arranged in an alphabetical manner to avoid any difficulty
in search.
 Parliamentary publications: the debate of house of commons and house of Lords in the
parliament are published. Along with this, speeches are also included in this source.
 Non-parliamentary publications: these are the reports prepared and disclosed by
government departments or agencies on their official site.
 Law commission: there is an independent commission set up by UK government to
oversee and monitor regularly the areas which needs improvement in the form of reform
in legal system.
 Law journals: these are the extensive piece of information which helps a practitioner to
gain better knowledge of legislations in UK. This may be restricted to a specific area or
may extend to general areas.
 Textbooks: every researcher or scholar find textbooks a very easy e and intelligible
source of legal terms and provisions. These are arranged in sequence to enable reader to
understand legal and its related aspects in an effective way.
P2. Role of government in law-making and application of statutory and common law in justice
courts
UK government has to play different roles in in many areas to protect citizens from any
wrong acts or crimes. The areas which are covered through policies and plants made by buy
government are taxation, legal, etc. Hence, in order to have effective implementation of
legislations and their outcomes, role has been categorised into three types which are as follows:
 Executive role: The laws and policies made are enforced under this role. Queen, prime
Minister and cabinet ministers are in this bench. The responsible to implement and
oversee legislations for desired results. They make policies which are in favour of of
majority of people living in UK.
 Legislative role: both the houses of parliament such as House of Lords and house of
commons have the authority and role to make legislations. These are enacted two women
rights of citizens. First, they assess areas which will require amendments to make it
effective.

 Judicial role: in this role, government is responsible to develop courts of various
jurisdiction. Legal cases are taken into the courts for final decisions to be made by judge.
Doctrine of judicial precedents is followed in which a case with similar circumstances are
decided with previous judgements.
There are two types of laws applicable in UK which are common law and statutory law.
A person should have sufficient knowledge about the applicability of both the laws in order to to
use in favour and take advantages. An explanation to both the types have been provided as
under:
Common law: the other name for common law is judge made law because of the reason
that legal cases are concluded on the basis of judicial precedents. According to this principle, a
case is assessed by its circumstances, and if these are same as in any previous case law, then
existing facts, issues, decisions and principles on which case has been result from the basis for
resolving future lawsuit. A common law can be amended through a statutory law and includes
additional rules and supplementary law for increasing its effectiveness.
Statutory law: these are the basis on which whole legal system is constituted. The
legislation passed by legislative authorities or bodies are called statues which have applicability
on whole UK. These are compulsory for each individual to follow. In case of any contravention
or breach or non-compliance of any legal provision, punishments will be provided according to
the offence. To make changes in an existing law, a new statue should be there. Further, a bill is
made as an act after receiving the royal assent and going through number of readings and stages
in the parliament.
TASK 2
P3. Using specific examples illustrate how company, employment and contract law has a
potential impact upon a business
Laws are made for systematic conduct of business organizations. These are meant to
protect various parties from fraud or misconduct. Furthermore, legal solutions or methods are
available which can be sought for breach or contravention in terms and conditions of a contract.
Hence, it can be said that company, employment and contract law have huge impact on how a
business carries its activities which have been discussed below:

Company: there are different types of organisation in UK which are government with
their respective acts. Companies are one of them which are formed in majority due to the
advantages it offer. Companies Act 2006, regulate a company from the time it is Incorporated
and tell the time it is wound up. Further, it provides laws regarding minimum number of
directors to be appointed, number of meetings to be held in a year, subscription of shareholders
etc. The legal provision of the above mentioned acts are meant to provide protection against
insider trading and fraudulent acts by the company or its directors. Furthermore, it contains
offences along with their fines and imprisonment. For example, a director has acted in
contravention to do the provision about non disclosure of interest in contracts formed on behalf
of the company. Then in such case he will be penalised and sentenced for minimum term of 6
months. Similarly, an offence can impact the image in a negative way which can push it to
situations of financial distress or even winding up.
Employment: every organisation has objectives and goals for which it has been
established which is accomplished with the use of resources known as manpower. The
environment and atmosphere at workplace should be healthy and safe for each employee without
being discriminated on various basis such as caste, religion, colour, nationality etc. Employment
Act, 2002 has been enacted by UK government to protect work force against harassment,
exploitation, and similar actions. It governs leaves such as maternity or paternity, working hours,
freedom to choose employer or work in the organisation as per individual choice, proper
dismissal of an employee, etc. It covers huge area and it is important. For example, an employee
has been discriminated on the basis of marital status, where divorcee has been treated unfairly
among other employees. This is an offence under Employment Act and legal action to be taken if
such employee file lawsuit against her employer. It can change the perception about company.
Contract: an agreement formed between two parties which involves a valid intention to
create a contract along with valuable consideration and acceptance from the party who has been
offered and which has any enforceability by law is called a contract. In UK there is no separate
law through which contracts are governed, thus, are regulated through Sale and Supply of Goods
Act, 1994. A contract comprises terms and conditions as per the demand of parties to it. A
transaction will be completed only when all clauses are abide by. Contract have legal
enforceability which protects the buyer and seller. There are consequences where a contract will
be considered as invalid and other of the party will be held. The act also provide characteristics

of a valid contract. Furthermore, in case a party has breached a provision written in the contract,
then and it may and search contract.
TASK 3
P4. Explore how different types of business organizations are legally formed
Business organisation can be of many types for carrying commercial activities with the
motive to earn profit. There should be a base or structure on which a person carries its business
for or accomplishing the goals. UK has different types of entities which can be chosen on the
basis of tax liability and other advantages. These have been explored below:
Sole proprietorship: it is the simplest form of business organisation which is owned and
managed by a single person named as sole trader or proprietor. Owner has the right over profit
on losses and is not shared with. There is centralisation as sole proprietor is the one who makes
decisions. It is easy to establish and wind up. Along with this, inexpensive in nature. Small scale
businesses are incorporated in the form of sole proprietorship. The rates of individual tax slabs
are applicable on the income of the entity. Further, there is no distinction between the owner and
the organisation. Also, there is no separate act which governs such types of organisations. No
registration is required. However, there are disadvantages search as non availability of options to
raise capital from, firm gets dissolved with the death of the etc.
Partnership: two or more people coming together to form an association for carrying
lawful business and to earn profit is called partnership. There has to be a common purpose and
registration is voluntary. Partners have control over the management of the firm. There is a
partnership deed executed which comprises terms and conditions upon which form has been
established. An important factor is that, ratio of profit and loss are mentioned in the deed
according to which these are shared between the partners. The liability of each partner can be
extended to his personal assets in case the obligations of the firm remains unpaid. Furthermore,
every partner is liable jointly and severally for the acts of another partner. However, creditors
cannot ask for their loan from the personal assets of each individual.
Company: in the eyes of law a company is an artificial person having separate legal
identity different from its members. Other features, perpetual succession, common seal for
authentication of documents and contracts, liabilities of members remained limited to the amount
guaranteed in the MOA or up to the nominal amount unpaid on the shares held by them.

Registration is compulsory under the Companies Act, 2006 to get the status of a company and a
avail advantages which are offered in the act. A company can be limited by shares of guarantee
and even an unlimited company is there. Also, a company can open an account, on properties or
sue or be sued in its own name separate from its members. The taxation system is favourable,
many options are available to raise funds. However, it is expensive to set up as compared to
other business organisations.
Limited Liability Partnership (LLP): it is a hybrid form which extract features from a
company and partnership. Liabilities of partners are limited to the amount of their contribution
just like shoulders have in companies. Also, there is flexibility in work. the partners are not
considered liable for the acts of other partners. Also, the personal assets are involved in paying of
the debts of the entity. the profits and losses are shared in the ratio as mentioned in the
agreement. It is a cost effective business organisation which is easy to form. This type of entity is
suitable for a group of professionals practicing advocacy, company secretaries, chartered
accountants etc.
P5. Explain how business organizations are managed and funded
Sole Proprietorship: This this type of business organisation are managed by sole trader
who has the authority to make decisions which would be beneficial for the entity. All the
commercial transactions are done by the sole trader without taking help from a third person. The
contacts which are formed within the lifespan of entity executed by the owner himself.
Furthermore, profits and losses are not shared. Day to day operations are conducted by the sole
trader, however, he made wish to appoint employees who will help in in effective management.
Also, family members can be engaged but only as helping hands. On coming to its funds, the
market does not offer much options to raise capital. there are only two sources through which
capital can be arranged viz. Personal savings and loans from banks of financial institutions. this
is because it is not a registered entity, thus, investors do not show much interest in investing.
Partnership: it is managed by the people who have formed it i.e. partners. They have the
authorities to make decisions regarding the firm, such as weather to admit a new partner or not,
to make contracts etc. All the partners may appoint a single partner who will act on their behalf.
In such a situation, it will be assume that all the partners are participating in the management in
equal proportionate. Also, a partner will be held liable for the act or negligence of another
partner. A partnership firm is on better side as compared to sole proprietorship when it comes to

raising funds. It has many options such as personal savings, retained earnings, loan from Bank or
financial institution etc. Also, on admitting a new partner, the capital gets increased with the
amount so brought by such partner.
Company: a company is the most popular form of organisation. It is an artificial person
who cannot act on its own, hence, appointment of some people becomes imperative. Directors
are appointed to manage the affairs of a company who are collectively known as board of
directors. They are responsible for making decisions, formulate plans and policies and develop
strategies that will be applicable within the company. All the contracts on behalf of company are
executed by directors by putting their signature along with common seal of the company.
Directives can be divided into two categories executive and non executive depending on the
nature of work provided to them. It has wider options to finance its activities. Most common two
ways for raising capital are by issuing debentures and shares. The other options that could be
explored are personal savings, bank loans, loans from financial institution, retained earnings,
venture capital, borrowings, don't from creditors etc.
Limited Liability Partnership: It is managed by its partners who have direct control
over the affairs of the limited liability partnership. They have the authority to to make decisions
about admission of a new partner, contracts to be entered, collaborations to be made etc. Each of
the partners have capacity to make decisions however, it must be accepted and presented by all
the partners. In case, even a single partner has opposed the proposal or decision, then it will not
be we finalized. There are many options available to a limited liability partnership as compared
to sole proprietorship and partnership firm. These are personal savings, retained earnings, crowd
funding etc. Loans from banks and financial institutions can be availed easily.
TASK 4
P6. Recommend legal solutions for resolving a range of disputes using examples followed by a
recommendation
Legal solution refers to any remedies given for settling disputes. There are number of
methods which may or may not include out of the court settlement. These are as follows:
Negotiation: It is a two way communication between the parties involved in the disputes
which is resolved through effective communication. Parties may appoint third party for finding a

solution. For example, employees of ABC company wish to get higher wages and pension
contributions from its employers, this can be managed through negotiation.
Mediation: it is resolved through the participation of a third party called mediator who
helps in conducting the communication in a better way so as to form a agreement with the
mutual consent of parties. It is used when negotiation fails to provide an appropriate solution.
Arbitration: it is the most effective way to resolve a case without going to a court. An
arbitrator is appointed who hears both the parties and take evidence on the basis of which forms
is decision. The decision is final and binding.
Litigation: it is the last remedy which involves going to a court for seeking justice. It is
approached only one case has exceeded all the limits and cannot be solved with the legal
solutions that have been explained above.
According to above-mentioned remedies, the most suitable legal solution is arbitration.
One can rely the decision awarded by arbitrator.
CONCLUSION
From the above report it has been concluded that business law consist of various laws
that are applicable to entities operating in an economy. It is a part of civil branch of legal system
and each case is resolved by following the set procedure in the civil code. Along with this,
English legal system is vast in nature and one of the oldest in the world which is complex from
certain angles. Also, the role of government in law making cannot be underestimated as they
have been categorised into three categories. Furthermore, there are business entities that can be
formed legally in order to carry business. Moreover, disputes or conflicts can be resolved
through legal solutions as provided under laws and rules.

REFERENCES
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