Business Law: Legal System, Laws, and Business Organizations

UNIT -7
BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1) Explanation of legal system...............................................................................................3
2)Critically reflecting the strength and weakness of legal system.........................................5
3) Laws, rules and standards applied in respect of establishing new business.......................5
4) Different types of laws which are applied in business and analysing its potential impact in
respect of smooth running .....................................................................................................5
5) Different types of business organisation............................................................................6
6) Examining the funding and managing criteria of different business organisation.............7
PART 2............................................................................................................................................8
CASE 1...................................................................................................................................8
CASE 2...................................................................................................................................8
CASE 3...................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law refers to the body of law which is covered by the business in respect
dealing in any activities which resulting in gaining profits to them. Business law mainly covered
two major laws such as civil law and criminal laws and also it impose on person or employees or
any other parties which are not carrying the business activities in accurate manner (Business Law
and Regulation, 2019). Thus, the activities which is relating to dealing in any contract such as
importing and exporting any goods or selling any goods to other parties or hiring any person to
perform the contract on that behalf. In such perspective the business law is examined by working
under the norms which is imposed by government so that they can protect the right of the parties
by providing fair decision.
Report will includes the nature of the legal system and also different sources of law. It
also includes the potential impact which is engaged upon business in respect of pertaining to law.
It further includes the different types of business organisation which is reflected to prefer the
accurate business to carry the business activities. Lastly the report ends up with the appropriate
legal solution which is recommended to resolve the area where the dispute arises.
PART 1
1) Explanation of legal system
Legal system refers to the procedure which is enacted through law and also it protected
the right of the citizen. So that they can carry the business activities in accurate way. Thus, in
such procedure the law is imposed by the government and it is the duty of every company to
follow it in right manner. There are majorly 4 major sources of law which stated that: Customs: This law is designed for the ancient times. As this law is mainly initiated in
respect of protecting the right of the person (Ahammad and et.al., 2015). Thus, through
this perspective they mainly custom the law by viewing the condition of the society and
than accordingly the law is designed or amended to bring changes in recent times. European law: This law is mainly designed for the European people to protect their
rights and interest in the country. European community takes this initiative to protect the
rights and also provides justice in case of any infringement of right. The matter related to
political, economic and social factors bring major changes in country working (Allen and
Kraakman, 2016). This law is beneficial in getting fair judgement to parties who faces
conflict in any of the issue faced through other person.

 Common law: This laws mainly based on case law as judges refers to the judgement by
viewing the previous case and than they raise justice. As through this aspects they
provides justice to previous parties through which the same judgement is refers to the
similar case.
 Statutory law: This law is mainly based on written judgement in which the parliament
had right to bring new laws in country and also impose laws which can protect the rights
and interest of parties. Such laws are mainly imposed on states and protect the right of
the citizen of country (Bayern and et.al., 2017).
Role of government in law making:
As it is the duty of the parliament to imposed laws in country but the procedure is started
from the legislation which is imposed through the public authorities. The parries decided the
matter which results in bringing major amendment regarding the laws which are working from
the ancient times. Once the parties decided the matter they impose a draft to the cabinet ministers
regarding the changes which they occurs in the country. Without the approval of cabinet
ministers, the draft not proceed to further reading (Miller, 2016). After getting the consent of the
cabinet minister, the bill further presented to either the houses. In this the bill is presented for
first reading where the bill is speak loudly and after getting approval it reached to second
reading. The authenticity of the bill is approved through majority where all the parties vote to
decide the integrity of the bill. With the approval, the bill is presented to the committee where
the detailed discussion is carried regarding the useful of implementing the law to country. After
the bills is approved by both the houses, it results in sending the report to monarch, where the
final approval is required on bill. The law is enacted after signing the bill from queen (Merry,
Davis and Kingsbury, 2015).
Application of Statutory and Common law in business:
In respect of common law, the law which is applied in business is refers to referring the
judgement or cases from previous case and than only the judgement is passed. Through this
aspects, they provide fair judgement to parties (Mann and Roberts, 2015). In respect of statutory
law, the judgement is mainly based on the written laws which is imposed by parliament. As it
carries various amendment and thus parties gets fair judgement by imposing the current laws
which is designed by parliament in respect of getting justice.