Business Law: Legal System, Sources of Law, and Implications on Business

UNIT 7: BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1. Examining legal system, various sources of law, role of government in making law and
application of statutory law.........................................................................................................3
2. Critical reflection of legal system to determine strengths and weakness................................4
3. Examining key legislations, standards and regulations...........................................................4
4. Various law and there implication on business.......................................................................5
5. Different types and classification of business organization. ..................................................5
6) Organisation managed and funded in business.......................................................................6
PART 2............................................................................................................................................7
CASE 1........................................................................................................................................7
CASE 2........................................................................................................................................8
CASE 3......................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Business law refers to the such laws which is implemented on business and also take care
of the running and formation of various business activities. It mainly protect the right of the
parties in respect of dealing in any business or entering into any contract or also expanding the
business into different countries. Thus through this aspects it helps in protecting the i8rght of the
parties in respect of facing any illegal activities (Business Law and Regulation, 2019). The illegal
offences which is committed by any of the person are publishable under the courts of law. The
crime are related to civil and criminal matter as civil matter related to theft, fraud or trespassing
of any property which affects the right of the parties but not causes serious harm. In case of
criminal matter, the crime are related to rape, murder or infringement of any property which
affects the owner of the property in wider way. This report will includes the matter related to
nature of the English legal system and also the sources of law. It further carries the report in
respect of determining the potential impact of law on business. It also includes the types of
business formation and its procedure to managed and funding the business in better way. Lastly
the report ends up with the the legal solutions of the appropriate case study to provide the
accurate guidance to parties.
PART 1
1. Examining legal system, various sources of law, role of government in making law and
application of statutory law.
Legal system is referred to as an effective procedure which helps in enforcing and
interpreting laws (Nelken, 2017). This is useful in elaborating rights and responsibilities in
various ways. It helps in providing legal, predictable, systematic and orderly mechanism for
resolving any disagreement.
European community law: This is a body of law, court judgement and treaties which
mainly operates along the side of any legal system (Reimann and Zimmermann, 2019). EU law
tends to take precedence over the national law which in binded by national authorities.
Case law: This law is mainly supported by doctrine of stare decisive. It is the collection
of past legal decision which is mainly written by the court. This helps in resolving ambiguities in
order to make valid decision for current cases.
Legislation law: This law is created by the legislature and is considered to be the primary
source of law in United Kingdom (Barnard and Peers, 2017). This law main purpose is

regulating, authorizing, analysing, proscribing, funding, sanctioning, granting, declaring and
restricting. This mainly comprises of House of commons and House of Lords.
Common law: This is considered to be as a body of law which is mainly derived from
judicial decision making. This is considered a legal system of Wales and England, where senior
appellate courts decision tend to become part of the law.
Parliamentary conventions: These are not considered to be strict rule of law. This la w is
useful in compensating relationship between House of commons and House of Lords.
Role of government in law making.
The parliament of the UK perform various core functions which mainly includes drafting laws,
reviewing role of parliaments, amend law, pass law and effectively monitor the various actions
of the government (Haigh, 2018). The member bills of the UK mainly focuses on drafting the
laws. Government tend to focus on developing several new laws and policies. The legislative
branch is mainly responsible for approving policies and passing new laws in order to give legal
effect to policies.
Statutory laws are considered to be the most authoritative law of the England. They are
already written laws where they can be effectively applied to specific case. In the absence of
statutory law, then common law is considered to be the residual source of law with the most
common principle stare decisis.
2. Critical reflection of legal system to determine strengths and weakness.
The key strength of the legal system is that it helps in providing change and flexibility in
the law making process (Reimann and Zimmermann, 2019). Legal system tends to focus on
filling up the gaps in the laws in case the particular situation tend to arise. Judges tends to
critically evaluate the weakness and benefit of law for attaining valid conclusive points. On the
contrary, the major disadvantage of a legal system is that, the court tends to bound to outdated
precedent law which might result in unjust ruing.
3. Examining key legislations, standards and regulations.
Legislation is considered to be one of the important factor as it helps in protecting and
organizing activities of the business. It helps in determining responsibilities of each individual
within the organization (Nelken, 2017). Legislations such as environment, competition,
consumer, health and safety law, etc. largely influence the working of the business. Regulation is
a directive which is retained by an authority. It helps in setting rules which helps in smooth