Business Law: Sources, Role of Government, and Impact on Business

Unit 7: Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 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.........................................................................................................4
TASK 2............................................................................................................................................6
P3 Using specific examples, illustrate how company, employment and contract law has a
potential impact upon the business.............................................................................................6
TASK 3............................................................................................................................................7
P4 Explore how different types of business organisations are legally formed...........................7
P5 Explain how business organisations are managed and funded..............................................8
TASK 4............................................................................................................................................9
P6 Recommend legal solutions for resolving a range of disputes using examples to
demonstrate.................................................................................................................................9
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business law, also known as commercial law refers to a body of law which regulate the
commerce and business. It is a branch of civil law which deals with the issue of both public and
private law. Commercial law applies to the relations, rights and conduct of the persons and the
businesses which are engaged in the trade, commerce, merchandising and sales. It is vast field
which covers various laws that includes contract law, employment law, company law and many
more. Contract law governs the rights, liabilities, conduct and relation of parties who enter into a
contract for a business transaction. On the other side, employment law regulated the rights of
employee and protect them from exploitation. Company law regulates the formation, dissolution,
rights and obligations of the stakeholders connected with the company (Dewi, 2020). This report
shall deal with the business law which shall cover the sources of laws, role of government in law
making and the impact of contract, employment and company law. Further it will deal with
different types of business organisations followed by recommendations for legal solutions in
solving the disputes using various examples.
TASK 1
P1 Explain different sources of law.
The English legal system is centralised to the legislature who have the sole authority of
enacting the law. Apart from legislation, the laws are also enacted by precedents through the case
laws. There is no written Constitution of the UK therefore, the laws govern the rights and duties
of the people. It is constitutional monarchy where head is the monarch.
Laws are made with a purpose of maintaining orders, protecting liberties, establishing
standards and resolving the disputes. The English legal system has evolved over a large period of
time which has been subject to great changes. The amazing fac is that the ancient laws still
prevails in UK and are valid.
The different sources of law in English legal system is divided into primary and
secondary which are discussed below-
Primary sources are the one which are formed by the official bodies which are as follows- Legislations- The UK legal system does not consist of written Constitution to which most
of its parts are written in the laws passed by the Parliament (Wood, 2020). These are the
legislations that applies to whole of UK which cannot be questioned in any English court.

These are primary source which are solely enacted by the Parliament which consists of
House of Lords and House of Commons. Case laws- These are the decisions and judgements passed by the judges in the courts
which are published in law reports. It includes the facts, issues and the decisions together
with legal principles through which the judgement is passed. These are valid and are
recorded for future decisions.
 Treaties- These are often considered as international source of law which regulate the
international relations and are often considered as laws. These are signed by the different
states in order to regulate their relations.
Secondary sources are the one which have a background resource containing the citations of
primary sources. These include the following- Law journals- These are considered as a combination of case commentaries and studies
which help in clarifying the complex legal issues. Some have general information while
others deals with particular area of law. Text books- For beginning a law research, these are the best source which are written by
academicians or experts in order to clear the concepts of legal issues.
 Directives- These are the objectives and rules which are to be achieved by the member
states. The legislations are to be applied in compliance with directives. These have a
binding effect on member states (Zimmermann, 2019).
P2 Explain the role of government in law making and how statutory and common law is applied
in the justice courts.
Role of government in law making
The Parliament consists of two houses, which includes House of Commons, where people
are elected through general election and the other is House of Lords, where people are appointed
according to their experience and achievement (Varney, 2019). The Parliament is entrusted with
a duty to make laws which includes the following procedure-
 First reading- Initially a bill is proposed by ether House of Parliament and the title is
read out which is regarded as first stage.
 Second reading- During this stage, the bill is now explained and debate is started as to
the need of bill. There is a voting system at this stage which decides whether the bill will
go on to next stage.