Business Law: Sources, Role of Government, Impact on Business, Types of Organizations, and Management

Business Law

Contents
INTRODUCTION.....................................................................................................................................3
LO 1............................................................................................................................................................3
P1 Explain different sources of law.........................................................................................................3
P2 Explain the role of government in law making and how statutory and common law is applied in the
justice courts............................................................................................................................................5
LO 2............................................................................................................................................................6
P3 Using specific examples illustrate how company, employment and contract law has a potential
impact upon business...............................................................................................................................6
LO 3............................................................................................................................................................7
P4 Explore how different types of business organizations are legally formed.........................................7
P5 Explain how business organizations are managed and funded............................................................8
LO 4............................................................................................................................................................9
P6 Recommend legal solutions for resolving a range of disputes using examples to demonstrate how a
party might obtain legal advice and support............................................................................................9
CONCLUSION........................................................................................................................................10
REFERENCES........................................................................................................................................12

INTRODUCTION
Business Law comprises of all the laws that direct the formation as well as operation of a
business. There are different laws that govern how to start and manage any kind of business. It
also includes all the rules that businesses should follow in order to run their operations in a
smooth manner.
Business Law is important as it helps in maintaining order in businesses that are alike.
Not only this, the law also protects the rights of companies as well as their employees in order to
establish a standard as to how different processes should be run (Batlan and Bass, 2018). One of
the major functions of business law is to resolve disputes among businesses.
The main purpose of business law is to protect the rights of individuals so that each of
them is allowed for their constitutional rights. The report is based on the of case Mrs. Sheigman,
who ran a pork butcher’s shop and leased the shop next door to Mrs. Tunstall and wanted to end
the lease.
The case comes to the court but before this happens, Mrs. Sheigman turned her business
into a company. The report explains different sources of law and the role of government in law
making and how statutory as well as common law is applied in justice courts.
There is also an explanation of the impact of law on a business and how different types
of organization are formed legally. Lastly, the report also explains how business organizations
are managed as well as funded along with some recommendations regarding legal solutions for
resolving disputes.
LO 1
P1 Explain different sources of law
In today’s world, it is considered to be important to have a legal system that is effective
and ensures an orderly function in order to avoid any kind of unethical behavior (Beatty
Samuelson and Abril, 2018). There are four major sources of law in the United Kingdom, which
are domestic legislation, European Union (EU), common law as well as the European
Convention on human Rights (ECHR). Mrs. Sheigman, Mrs. Tunstall, Larry and Chris need to

know the different sources of law that organizations must comply with. The same are explained
below –
Domestic Legislation – This source of law covers both primary as well as secondary
legislation. The UK Parliament, based in London, is the only body in the nation that possesses
the power to pass laws. Primary legislation is passed by the Parliament and includes bills of the
Government as well as the private members. On the other hand, secondary legislations can be
introduced by the Government and its is generally done by issuing regulations that are called
statutory instruments.
Common Law – The common law has been developed over the years by judicial
precedents and is commonly referred to as case law (Beatty, Samuelson and Abril, 2018). The
decision of a judge in a case becomes a precedent and is binding on similar cases. In simple
words, common law is legal model that is developed by the judges of a court. It is an important
source of law in those areas that are reserved for the states to regulate.
European Union (EU) – The European Union can require governments of the Member
states to introduce the legislation in certain areas. The United Kingdom is a Member state of the
EU, which means that the EU law comes before the UK law.
European Convention on human Rights (ECHR) – The ECHR is an international law
that was incorporated into domestic legislation by the Human Rights Act 1998. The act came
into force in the year 2000. It enables all the courts in the United Kingdom to protect the rights
that have been identified in the ECHR (The Legal System of the United Kingdom, 2020).
Statutory Law – This is another source of law that applies to and regulates both
individual as well as private action. It can be defined as a written law that that is passed by a
legislature body or another other official body. Most statutes are written into law by the
legislative branch of the UK government.
Therefore, these are some sources of law in the United Kingdom that govern human
conduct that can come into existence in different ways (Block-Lieb, 2018)