Business Law Essay

This essay provides a comprehensive overview of UK business law, covering its sources, the role of government in lawmaking, the impact of key legal areas on businesses, and effective dispute resolution methods. It also critically evaluates different business organization types and compares various sources of legal advice.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
..........................................................................................................................................................3
P1 Explain different sources of UK law.................................................................................3
P2 Roles of government in law making process....................................................................4
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and
development...........................................................................................................................6
P3 How company, employment and contract law impact on business............................................6
M2 Differences between legislation, regulations and standards to analysis potential impact
upon business..........................................................................................................................7
P4 How different types of business organisation are legally formed? .................................7
P5 How business organisation are managed and funded?......................................................9
M3 Detailed assessment on the pros and cons of their formation.......................................10
........................................................................................................................................................11
P6 Identification and recommendation of appropriate legal solutions for resolving a range of
disputes using relevant examples to demonstrate how a client might obtain legal advice and
support..................................................................................................................................11
M4 Comparison of different sources of legal advice...........................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business law can be defined as the set of rules and regulations that must be followed by
every individual. It covers different laws under it; such as Contract, Company, Employment,
Intellectual property laws and many more. It provide the guidelines regarding business activities
which are performed by entrepreneur. It is also said as commercial law. It helps to take legal
decisions as proper guidelines are provided in advance and if any one fails to perform his task
according to the requirement then penalties may be imposed. As case which falls under Business
law are discussed mainly in civil court. In this file, the suggestion are going to be given from
Global Solicitors law firm's point of view. The question and answers are related with nature of
legal system with different sources of law. Necessary laws are discussed and why they are
important in justice court. Even, this files provides proper guidelines regarding various law and
there major impact. Also, necessary solution is provided regarding dispute and what can be done
to solve the dispute with different cases studies which will help to enhance the knowledge
regarding Alternate Dispute Resolution.
P1 Explain different sources of UK law.
UK law is one of the most power law in the world. This law covers four different nation
under it and they are: England, Wales, North Ireland and Scotland (Besley, 2015). The guidelines
and laws are made with consideration to all these country. It is not mandatory that all laws are
made for all this country because some of them are to be followed by two or three countries also.
UK law is made on the basis of four different sources and they are listed below: Legislation: It is one of the major source of UK law and here laws are prepared from
Parliament house. Any decisions which are taken by parliament are mandatory to be
followed by general people. Legislation is the main body to pass any law in UK
premisses. Any law which is made through the process of legislation then it must be
followed every one. The authority to pass any act is the hand of legislation. Common Law: It is one of those law which is prepared by the judges on the basis of
current situation. Common laws are made only if there is no discussion on particular
topic in legislation (Forrer and Katsos, 2015). Here, power to make any law is in the hand
of high court and supreme court. This laws can be changed at any period of time if it is

required. Even past decisions can be considered in these types of law. Once law is made
under Common law it should be compulsorily followed. European Union Law (EU): It is one of the major source of law in UK premisses.
Around 60,000 UK laws are given by European Union Law (Kapottos and Youngner,
2015). This law takes precedent over UK law but final approval is to be taken from the
parliament of UK. It plays the necessary role to maintain peace environment in the
United Kingdom. The EU law is to be operated within the member state of European
Union.
 The European Convention on Human Rights (ECHR): In forming law within UK,
ECHR plays the necessary role. This source of law helps to provide rights to every
general people with in England, Scotland, North Ireland and Wales. The main
responsibility is provide to Court, just to protect the rights under Human Rights Act,
1988.
P2 Roles of government in law making process.
In UK the role of parliament is huge as they have the major responsibility to make any
kind of law. Parliament is divided into two group and they are House of Commons (HC) and
House of Lords (HL). In HC the there are around 650 MPs who are elected from election and
they have the responsibility to work according to general people and what are there
requirements. To form any Act or law final permission is required of HL under Royal Ascent
Act, 1961. The role of government in any law making process is listed in the points below:
1. Prepare a bill/draft: Authorised department need to prepare bill, according to its
requirement ( Murray, 2015).
2. First Reading: After preparing the bill, it is necessary to present the bill for first reading.
Here, authorised department read the bill in front of the committee.
3. Second Reading: In second reading, the member of parliament (house of commons only)
take the bill for general discussion just to pass for next stage.
4. Committee stage: Committee stage is said as detail examination of bill and if member
thinks that amendment is to be done then it is conducted.
5. Report Stage: This stage is entertained only when amendments are done through
committee stage.

6. Third Reading: In this stage, the process of voting is conducted by MPs on the bill which
is passed through committee/report stage.
7. Presenting the bill in House of Lords: Here, the member of House of Lords checks the
passed bill and forward it for Royal Ascent but if they thinks any amendment is to be
done then it is send back to MPs for necessary changes and voting too (Santoro, 2015).
8. Royal Ascent: This is the final stage where Approval is given by crowned member under
the Royal Ascent Act, 1961.
How common Law and Statutory Law are applied in Justice Court?
Common Law in Justice Court: In justice court, there are some situation where court doesn't
have the appropriate law to finalise the result and in that condition common law is applied.
Justice court tries to find the past decision with in the country or outside the country so that result
can be declared (as common law is based on those situation where Statutory law is silent).
Illustration 1: Steps of passing bill for new law in UK

Statutory Law in Justice Court: In justice court, mainly the decisions are given on the basis of
statutory law. Justice court read the guidelines of statutory law to declare the result (statutory law
is that law which is enforceable by the Parliament of UK).
Related case law: Matt Broad V High Court
Facts: In this particular case Matt was found guilty and even Statutory law was silent in this
situation.
Judgement: In this case, High court declared their decision by taking the support of supreme
court's previous decision which was similar in nature.
M1 Evaluate the effectiveness of the legal system in terms of recent reforms and development.
The government of UK need to bring out some changes in there law so that development
can be seen from the eyes of business (Tushnet, 2017). Government can update those laws which
do not have any use and can be benefited if changes are done. Companies Act, 2006 can be
updated as there are various laws which are creating unnecessary problem for an organisation. If
changes can be brought then objective of government and general people can be achieved easily.
Some of the advantages of UK Legal system are as follows:
 Consistency: The English law is considered as one of the strongest law in worldwide
as their law is consistent. Consistency of their law helps the citizen to take there
decision easily. It also help the general people regarding cases as guidelines are
provided and people can know what types of decision can be obtained from the
particular case. Judges are always consistent on cases.
 Certainty: There is always certainty in UK law because decisions which are given here
are of similar types. Judges go thorough the similar style while declaring the decision
which builds the confident between government and public.
P3 How company, employment and contract law can impact on business.
In every business organisation, the role of different laws increases as they need to be
followed according to the given guidelines (Raz, 2017). These laws are the essential part of
business law. Every businessman must have the knowledge regarding company, employment and
contract law as plays the major role in every organisation.
Company law is one of the essential law which helps to incorporate the company. In UK
every company needs to follow the guidelines of Company Act, 2006 where detail information is

mentioned.(For example: POR Ltd is multinational company and they are registered under
Companies House) The impact of company law on business organisation is:
 Guidelines regarding every single details need to be followed.
 Business need to satisfy the condition so that penalty cannot be imposed.
Employment Law is as necessary as Company law. Here, every organisation in UK need
to provide facilities to there employee's which are mentioned in Employment Act. (For Example:
XYZ Ltd. falls under the category of factories Act and Wages Act Of Employment Law) The
impact of Employment law is:
 Organisation need to provide wages according to the mentioned guidelines.
 It helps to provide different safety equipment in factory premisses (Schmidt, 2018).
Contract law is one of the most important law as it is not only used in business
organisation but in every general people's life too. The impact of contract law in business
organisation are (For example: ABC Ltd has done the agreement with Anderson for importing
row material from Germany):
 It helps to provide the guidelines regarding contact (whether it is valid, void or void void
ab initio)
 It tells what can be done if there is a breach of contract.
M2 Differences between legislation, regulations and standards to analysis potential impact upon
business.
Legislation is one of the most necessary thing for organisation because company need to
change its system of working according to the requirement of law. It creates lots of changes in
day to day activity of an organisation.
Regulations is the part of legislation where it provide complete knowledge regarding law.
Regulations will help to know how to apply related law. This is increase the cost of an
organisation as extra skill and knowledge will be required in this.
Standards are those part of law which provide guidelines that how to deal with situation
and what should be done to maintain the standard of an organisation. For example: no of
directors required in an organisation.
D1 Critical evaluation of the legal system and law.
The legal system Of UK provides different guidelines just to make sure that there will not
be any kind of violence in the premisses of UK. This have shown the great impact on the people

where they don't need to take any kind of burden as everything related with law is already
written but still there are some problem in UK law because the still the power of constituting any
law is in the hand of Parliament and it is mandatory to be followed by everyone.
P4 How different types of business organisation are legally formed?
Every business organisation need to be formed under Companies Act, 2006 but it is not
necessary for unincorporated company to form under Companies Act. This act was formed to
simplify the process of working condition for various organisation. It provide the guidelines
regarding formation, dissolution and winding up. There are various types of business
organisation which are present now and guidelines are provided while incorporating. The
different types of business organisation with its legal formation are listed below:
Sole Proprietorship: It is one of those business where less amount of capital is required
and business activity is mainly conducted by individual. This types of organisations don't have
various source of organising fund. There is no legal process to form this types of organisation as
it is not legal in the eyes of court (Zimmermann, 2012).
Partnership: This types of business idea is mainly created by two or more than two
person or group. In partnership firm the liability is always unlimited where partners need to take
all decision very smartly. There are not many ways to raise fund in this. The process of forming
partnership is simple where it must be registered under Partnership Act and should follow its
guidelines which includes
 address and telephone number of partnership firm.
 Agreement between partners should be done and must be submitted. Purpose of Partnership must be mentioned. And this all information must be submitted to
Companies House.
Limited Partnership: This types of partnership are formed with at least one general
partner and remaining are limited partners. Here, the liability of limited partners is limited where
as remaining partners do not have limited liability. This types of firm are formed just to protect
the personal assets. To form Limited Partnership it must be register under Partnership Act.
Joint Venture: It is one of the most popular form of business where two or more than
two persons, organisations comes together to earn profit. Mainly this types of business are
conducted for short period of time. If joint venture is between persons then it can be simply said

as partnership too but but when two organisations comes together for business then it must be
registered under Companies house where need to provide the the data of both company, need to
prepare MOA and AOA, motive of this Joint venture. (Grace and Cohen, 2013).
Limited Liability Company: This types of company are incorporated just to protect the
personal asset of members. There are various source of raising fund as this types of organisation
are registered under Companies House. To form legal Limited Liability Company it should
submit AOA, fees for filing the paper work of company. Also, it requires to create an LLC
agreement which sets the rights and responsibilities of all members.
Corporations: It is one of those form of business where entrance and exit of member
doesn't effect day to day activity as it is a legal person in the eyes of law. Investors are
comfortable to invest in corporation as personal assets are not involved. The process of legal
formation is lengthy and time consuming too (Norris, 2016). To register it needs:
 Certificate of Incorporation,
 Memorandum of Association,
 Article of Association,
 At least one shareholder and director etc.
P5 How business organisation are managed and funded?
For every organisation it is mandatory to be managed and funded in a systematic manner
because that decides the life cycle of every organisations. The different types of organisations
with its management and way of funding are listed below:
Sole Proprietorship: This types of organisations are managed by individuals and source of
funding is only personal assets as it is not legally registered.
Joint Venture: The source of raising fund for joints ventures are bank loan, organisations capital,
personal assets. It is mainly managed by authorised person.
Note: Authorised person means the person who have been given the responsibility to complete
the project on time.
Partnership : Partnership firms are managed by partners and sources of raising fund are personal
assets of every partners and even bank loans in some of the cases.
Limited Liability Company: The major responsibility to manage Limited liability company is in
the hands of mangers and shareholders. The sources of raising funds are:
 Bank loan,

 Private investor,
 Personal Acquaintances
 Credit Cards
 Financial Institutions Governments Agencies etc.
Corporations: Corporations are managed by directors, managers, company secretary and
shareholders too (Hazard, Hodes and Jarvis, 2014). The major source of funding are:
 Issuing fresh share in the market.
 Issuing debenture, bonds etc., on fixed interest rate.
 Applying loan from banks, financial institutions and even government agencies.
M3 Detailed assessment on the pros and cons of their formation
Every organisations have its own nature. It is upto the potential of company how well
they can perform by utilising proper resources. Some of the advantages and disadvantages of
different types of formations are mentioned below in the table.
Types of Organisation Advantages Disadvantage
Sole Proprietorship It requires small start-up cost.
Required very less paper work.
Liability is not limited.
Don't have the capacity to sue
on its own name.
Partnership More capital is available for the
business.
It can be started easily as there is
no time consuming process while
setting up of business,
Unlimited liability.
Risk of disagreement between
partners for management.
Limited Partnership Faces limited liability for losses. Limited Partners do not have
much and more impact on
decision making.
Joint Venture Risk and cost can be shared. Lack of commitment to the
project by any of the parties.
Limited Liability Liability will be limited. Formation costs and annual

Company There will be flexibility in
management.
fees will be high.
Corporations Ownership can be transferred
easily.
Protection from liability.
Lengthy and expensive
formation process.
D2 Critical review and an evaluation of the different types of business organisations.
There are different types of business organisation under which company can be formed. It
can be decided by investors themselves that in which type of organisation they want to invest.
But there are various issues in there formation as liability is not limited in partnership and sole
proprietorship and even the entrance and exit of single person can dissolve the agreement deed.
P6 Identification and recommendation of appropriate legal solutions for resolving a range of
disputes using relevant examples to demonstrate how a client might obtain legal advice and
support.
The given scenario is related with dispute where Mr. Mark was working in ABC Ltd.
Company and they had a agreement that both the part must give prior notice of before removing
or leaving the organisation (2 months notice is ). But Mr. Mark didn't gave the prior notice and
joined another company. Now, ABC Ltd wants to file a case against his employee and wants to
recover the damages which organisation has suffered because of Mr. Mark.
Business law is one of the essential things to solve the dispute between organisations. It
helps to deal with various topic by defining appropriate law. There are some of the ways to settle
the dispute and they are:
Alternate Dispute Resolution (ADR): It is one of the major source to solve the dispute
between different parties or organisation (Twomey, 2012). It provide guidelines regarding how
dispute can be solved. The third individual person is appointed in this process who have the
major responsibility to solve the problem. ADR consumes less times to finalise the decision. The
main aim of ADR is to reduce the burden or different level of court. The system of ADR was
copied from U.S legal system. There are three process to solve dispute under Alternate Dispute
Resolution and they are .
1. Mediation: It is one of the simplest form of solving dispute where mediator is appointed
who need to handle the matter of particular case. The advice which is given by mediator

are not necessary to be followed. The process of mediation is adopted only in the general
cases.
2. Conciliation: It is one of the major process of Alternate Dispute Resolution where
conciliator is appointed. The duty of conciliator is to do settlement between both parties
by trying to reach near to the agreement (Stout and Blair, 2017). Even the decision of
conciliator are also not legal binding in nature.
3. Arbitration: This is the lengthy process of ADR, compared to other.. Arbitrator is
appointed to clear the matter between parties. The decision of Arbitrator must be
followed. In arbitrator most of the cases are related with civil wrong in nature.
Contract: Contract can be defined legal documents which is prepared before starting any
work. It is required in each and every step of life. Contracts are prepared so that involved party
can't terminate in between. To make a valid contract there must be offer, acceptance,
consideration and even it must be enforceable in the eyes of law (Hanrahan, Ramsay and
Stapledon, 2013). There are two types of contract and the are voluntary contract and written
contract but court entertains only written contract. If any of the party fails to perform there task
then it is said as breach of contract.
Breach Of Contract: Breach of contract can be defined as the process where any one of
the party terminated the contract without completing it. Breach of contract falls under civil
wrong. The contract which are not completed because of certain changes in contract will not fall
under breach of contract. If any one is found guilty in breach of contract then penalties can be
imposed.
Winding up: It is also one of the source to solve dispute between company and creditors.
This process helps to appoint liquidator who calculate the value to total assets so that assets can
be sold to pay the debt amount. There are two types of winding up process and they are
Voluntary winding up and Compulsory winding up.
1. Voluntary Winding up: This process is conducted with the mutual consent of shareholder.
Here, company thinks that they are not able to pay amount to its creditors so it is better to
liquidate the company (Raz, 2017).
2. Compulsory Winding up: This process can only be started if order is passed from the
judges of court. Here, creditors need to file the case against defaulting company. It can be
said that it is one of the lengthy and expensive process to solve dispute.

M4 Comparison of different sources of legal advice.
There are various way thorough which legal dispute can be solve and among them
Alternate Dispute Resolution (ADR) will be the best while comparing with other. Because, this
process helps to provide advice according to the system of law and process is also simple. ADR
is not a lengthy process and even it try to meet out the terms and conditions of agreement where
as in the process of winding up, although dispute can be solved but after that there will not be
any physical existence of company. But in ADR, advices are given by neutral parties so there
will not be any chance of discrimination. So, it can be said that it is one of the finest method to
provide legal advice.

CONCLUSION
Hence, it can be concluded that business law is essential part of every business
organisation. It provide guidelines regarding various law like company law, contact law,
employment law and many more. This rules and regulations must be followed by every
individual for maintain suitable position in the market. In UK, Parliament has only the authority
to constitute any kind of law. Final approval is also required under this and no one has the
authority to challenge Parliament.
The duty of judges in justice court is to check different laws before giving any kind of
judgement and because of this common law and statutory law plays the vital role in it. Also,
there are various types of formation of organisation and each of them have different nature at the
time of formation. This types of organisations are managed by different category of people.
Different types of association have its own advantages and disadvantages and it totally depends
upon investor that what kind of business they want to setup according to investment. To solve
various kind of dispute Alternate Dispute Resolution will be the best among different types of
dispute solving process.

REFERENCES
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Online
Business Law and Legal Definition. 2018. [Online]. Available
through:<https://definitions.uslegal.com/b/business/>.