Business Law: Key Concepts & Applications

This business law assignment delves into essential concepts and applications of business law. It encompasses diverse topics such as ethics in business, international business transactions, intellectual property, and the legal environment of businesses. The provided readings delve into various aspects of business law, highlighting its complexities and practical implications. Students are expected to demonstrate their understanding of these concepts through critical analysis and application to real-world scenarios.

Unit 7
Business Law

Table of Contents

Introduction
The term business law has been reasoned as the intellectual study of the constantly
changing legal scenario that access firm to operate its problems in the legal manner. Business
law is considered as the statutory legal document which encompasses the owners of the firms to
start, buy, manage or close the business operations. As the protocols are formed by the
government of nation, this helps owners of the business to protect themselves from different
penalties which are imposed in case of noncompliance (Allen and Kraakman, 2016). While
working at the post of the top management and dispute law advisory in the law firm global
lawyer which is based in London hence this requires the advice on the nature of the legal system
of rules that prevails in country as well as different sources of legal system from which the law is
made. Also, the effect of the employment law, company law and the contract law would be
examined in this report. It would also give the reader the information about how the business
organisations are formed and at last the appropriate legal solution would be given for resolving
the disputes.
Task 1
P1 Different sources of law in UK
The UK is reasoned as one of the best provinces while taking into consideration the legal
structure. Legal structure in UK are divided into the three separate systems which includes one
each for Scotland, England & Wales and covering Northern Ireland. This helps in showing the
historical origin of the legal system of UK. This has been seen that constitution is an unitary
body and the legislative assembly is considered as the supreme law-making authority. As it is
seen that the basic concept of law is to keep a good structure of society with some of the written
provisions (Allen, 2017). The constitution of UK is considered as unwritten constitution which
updates as and when requires for the betterment of the society. This has been seen that the
fundamental law of UK is unitary body. English legal system is divided in to various types one
of which involves the common law, statutory and equity law. These are as follows:
 Statutory-law: It is termed as the law which is in the written form. This law is made by
the legislative assembly or the governing authority of the country. The law is enacted by
the legal entity of the country. It is the law that differs from regulatory and administrative
function of the government. Different government agencies and prior discussions made
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on issues forms the structure of these law. This law also helps in setting a general
proposition of law which helps them in specified issues which arise in the court. For
enabling this law and implementing it to society various steps must be taken by
government which are considered as the legislative process.
 Common law: A legal structure for England and Wales has been considered according to
the common law. They have reasoned as the body of unwritten laws which are based on
the legal cases established by courts (Bacon, 2017). This law is reasoned as the law
which helps in influencing the decision-making process in case of any unusual event
occurs which cannot be ascertained on the basis of existing statuses or written rules. The
primary aim of the common law is to yield a constant principles so that similar concepts
can give similar outcomes to the society and the court rooms while discussing any issue.
This law is framed only when the society requires it to be framed or in the case to case
basis.
 Equity law: The countries in which common law is considered as main principles then
equity also prevails and is built on judicial assessment of fairness. Such laws themselves
do not address an issue or are considered as inadequate in a way this law is used. The
term equity refers to a set of remedies and associated activities entangled with certain
civil law. These are in form of doctrine and procedures which are differentiated from the
legal terms. As It is seen that the legal remedies basically involve the monetary damages
while on the other hand equitable relief includes injunctions, specific performance or a
term of vacaturs. This is a law which is made while keeping in mind the remedies that are
needed to be solved for society. The chancery is the head of this system and has the
power to settle the dispute which arise between them.
M1 Evaluation of effectiveness of recent reforms and development in legal system
There are various laws that are made in UK and are considered to be followed by the
citizens of the nation. The laws should be made and must be revised timely so that the
development take place in the country. The government has to perform various functions so as to
update the laws in the country and to provide the benefits to the people. Various advantages
related to UK legal system includes the following:
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 Consistency: As the laws are framed by the authorities of the nation these are made with
the consistent provisions. This help in providing the direction and the guidelines to the
users so that they can make decisions which has a valid legal relation.
 Certainty: As the principles and the judgements that the courts follows are agreeable
within the judicial system. This assist in providing the surety in the decision-making
process.
Hence, it can be said that UK legal system is very efficient and is considered as one of
the strongest yet powerful tool which helps the users to perform their duties (Ball, 2015). Any
legal action can be taken as the law is in written form. However, the main authorisation to make
law is in the hand of parliament.
P2 Role of government in law making and how these are applied
The primary duty of the government of country to form law for the individuals of
country. The process of law-making is considered as one of the complex and rigid procedure
which is followed by government of country. For passing of law and implementing it to the
country the bill is taken to the parliament which helps in giving birth to the law. For making laws
and bringing it to existence the bill must go through various steps. These includes the general
election that is done according to the parliamentary process. The agenda in the bill is then
discussed with the opposition party which gives the recommendation through which certain
changes may be made in the bill. Various steps that are required for formation of bill involves the
following:
 First Reading: It is the first step in which the invoice is brought in front of members of
the company. In this step no discussion is made on the bill and the very first look of the
provisions which are included in the bill are made.
 Second reading: In this stage the bill is brought in front of the members and the main
provisions of bill will be brought in front of the members of parliament. Here the
powerful party minister will execute the bill and would set out the cases for which the bill
is made (Cox, 2015). Here the sound discussion is made in front of the chairperson and
the committee where the positive and negative response are noted upon. Here the
government then makes the amendments if required for the bill to become a law. At the
end the voting would be done on the bill. Hence if the bill is not voted upon or is voted in
negative then they would not proceed the proceedings.
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 Committee stage: In the third stage information regarding the bill is carried out and the
practical implication of the bill is done. This procedure is carried out by the speciality
convened committee of members of parliament which helps in reflecting the strength of
the house (Crane and Matten, 2016). The positive and the negative points that were
recorded are now taken into consideration. Later the committee would determine whether
the bill would remain into existence and would further grow or not.
 Report stage: It is considered as the phase where reading of the bill again takes place. In
this phase all the changes which are adopted in the bill is discussed and are used for the
purpose. Amendments that are made would be added in the bill in this stage .
 Third reading: This is a stage, in which the discussion on the bill that invariably takes
place garima.b(Vagts and Buxbaum, 2015). In this no amendments are possible to be
implemented and at last the voting on the bill is made through which the bill would be
either accepted or rejected.
 House of lords: It has been considered stage, where bill is to be sent to a house of lords
and in that situation no amendments are made in the bill. If the bill is sent back to the
house of commons then consideration of amendments are made and will be taken into
consideration.
 Royal Ascent: In this stage, where the bill are used to be sent for the royal assent after
which it would be given a consent for making bill. After the bill is passed and evaluation
has been made the royal assent is mandatory for making the bill practically applicable.
Application of common law in the courts
The Common law is the law which has the continuous reforming structure which has the
full outcome under the judges of the court room. As the judgement which is made by the judge
depends on the prior condition of the courts and the court (Davidson, Forsythe and Knowles,
2015). As in the criminal cases the courts decide about the intensity of the crime which has been
committed by the offender hence in some of the cases this is decided by the European union law
through which the disputes in the parties and society gets settled.
Application of Statutory law in the court rooms
The statutory-law is considered law which is considered in the written form based on
which the liability of the offender is decided. Here the judge takes the decision on the basis of
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certain pre-defined acts which are enacted by the parliament. Based on which liability of citizens
are defined.
Task 2
P3 How companies, employment and contract law have potential impact upon business
This has been seen that the contract, employment and the company law are considered as
one of the important laws which are used by the organisation to perform their difficulties as per
the laws that are defined in the organisation (Tushnet, 2017). As it is seen that the company’s
laws take into consideration the laws that are prescribed by the government. Also, for formation
of the company it is utmost important for them to follow the procedures that are relevant. If the
business organisation is not able to fulfil the prescribed laws then they would be penalised for
this and can lead to closing of the business also. There are various implications of laws on the
operations of the company.
Company law is reasoned as the law with the help of which the individuals can
incorporate the company. This law defines the norms and standards related to the company and
specifies the areas under which company must perform its obligations. It gives the main principle
that the company and the owner of the company are different legal person. The director of the
company must follow the guidelines and the provisions that are prescribed in the companies act
by which the company’s profit can be boosted (Drummonds, 2016). Also, the disclosure
requirements that are specified in the company’s law helps the company to disclose its financial
statements to the stake holders through which they would be able to know the right and adequate
working of the company. The company law also describes the norms and standards which are
related to the mergers and the acquisition of the company.
For example: LEE v LEE air farming co. founded that Lee incorporated a company in
which he appointed himself as the chief pilot of the company. After some time he died in a plane
crash, wife of Lee demanded for compensation. The judge held that as the company and the
owner are considered as the separate legal person hence the company is liable to pay his dues.
The law which is used to defining rights & duties of an employer as well as employees
towards each other is considered as the Employment law (Svantesson, 2016). It is considered as
a law which binds all organisations where the employees are working in the relation of employer
and employee. In this law there are certain guidelines described which helps in determining the
working hour of the workers, as well as the wages for which employee should be hired. Also,
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this law helps in deciding the employee as well as the employer relationships. The company
would be liable to a pay certain amount of compensation and can even lead to closure of
company , if this law is not followed by a company.
For example, a company namely ABC Ltd., where the employment law is applied, the
company needs to formulate a policy which let the employees to work according to the standards
that are prescribed by them. Also, the wages should be framed according to the policies that are
given in the employment act.
Contract law is considered as the main law while performing the daily business activities
of the business organisation (Folsom and et. al., 2016). The contract law prescribes the terms and
conditions according to which the contract should be formulated by the company. If these terms
are violated then the implications of these is also defined under this contract (Slee, 2018). As the
regular buying and selling takes place in the company , these are done based on contracts. Hence
all the business contracts are characterised by the terms and conditions of the contracts which are
agreed upon by the users.
For example, In a case of ABC Ltd., they have decided to sell the product to one of their
customers at a specified price of 25,000 Euro and made a contract accordingly. Hence from the
provisions of the contract act they must fulfil the liability of performing the contract at the given
price.
M2 Differences between legislation, regulations and standards to analysis potential impact upon
business.
Legislation are regarded as a vital part for the companies, and it is the liability of the
company to follow them to conduct business operations. These are developed as per the
changing specifications and on the daily activity basis.
Regulations on the other hand are regarded as the part of the law based on which the
functions of the business organisation are done (Frank and Bix, 2017). In addition, the company
requires the expert who charge extra.
However, standards are considered as the most specific part of the laws which helps in
providing framework to deal with different circumstances. Hence it is seen that every
organisation is required to follow the standards as per the requirements.
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D1 Critical evaluation of the legal system and law
This is regarded as the system that helps in maintaining the best behaviour among the
people of the country. It assist the government in deciding the conventions and the instructions
that would be needed by them to provide the legal solution to the citizens of the country. It is
considered as the adversarial system of UK where the company must describe the functioning of
the country. Various advantages includes the following:
 The system is regarded as definite while making the decision on a issue.
 The system is regarded as fast and special as it helps in making a faster decision.
Task 3
P4 Careful exploration of how different types of business organisations are legally formed.
For forming any business organization and bringing it to existence it is necessary that
they should consider a legal policy. It depends on the decision of the owners as to which type of
organisation they want to formulate (Kubasek and et. al., 2015). For formation of the
organisation there are different rules and regulations that are to be complied with by the decision
maker or the owners of the business organisation. Various organisation and the process of their
formation is discussed below:
Sole Proprietorship: This is the easiest form of the business organisation which is owned
and governed by a individual owner. As this is not required to be legally formed hence there is
no process of registration. Only single registration under the registrar is satisfactory.
Partnership: In this type of business organisation are owned and managed by two or more
than two partners (Scholes, 2015). Here for the formation business they are needed to formulate
a partnership deed which must be submitted to the registrar and must be signed by all the
partners. After which they would be given a certificate for starting the business organisation.
Corporations: This type of business organisation is generally used in the case of large
business. For forming such business at least two members are required who would be known as
the directors after its formation. The directors must make MOA and AOA which would be
considered as one of the main documents that they have to file to the registrar house (Merry,
Davis and Kingsbury, 2015). After considering the MOA and AOA the registrar would give
them the certificate of incorporation of the business through which they would be able to
perform their business.
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Joint Venture is also the form of business organisation where different formalities are to
be followed. It is important to appoint responsible person who will take the charge of venture.
After that it is necessary to submit documents in Companies House that howl long this Joint
Venture will work and what is the main motive of creating joint venture. This information should
be mentioned in MOA and AOA and must be deposited in Companies House.
Limited Liability Company are those business firm which are incorporated for the
purpose of earning maximum profit. MOA and AOA must be prepared with registered address.
In addition, it is necessary to prepare the deed where every member need to sign that they will
not transfer their share to outsider and that should also be submitted with other documents.
P5 How business organisation is managed and funded.
Once a business organisation starts it is utmost important for them to properly manage
and finance the business so that expansion of the business can be done and this would also help
in increasing the profits of the company. Different ways by which organisation can be managed
and funded includes the following:
S.N Business Organisation Managed Funded
1 Sole Proprietorship It is managed by the
individuals themselves who
are the single owner of the
business.
This is funded from the
owner’s own capital and
personal assets.
2 Partnership These business
organisations are managed
by the partners of the
organisation which are
considered as the active
partners.
There are various source of
funding which includes
Bank loans, personal capital
and other forms.
4 Corporation In this the directors are
considered as the main
body which manages the
business of the company.
There are various sources
of funding that are available
to them some of which
includes issue of shares and
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bonds and debentures. Also,
the bank loans are
considered as the sources of
funding for the company.
M3 Advantages and disadvantage of different organisation based on its formation.
There are various merits and demerits which are related to the types of business the
owners are forming (Miller and Jentz, 2017). These depends on the nature and the types of the
business which are followed by them. Some of the major pros and cos of the organisation are
discussed as below:
Sole proprietorship: The main advantages of this type of organisation is the owner has the
direct control over the affairs of the business and he manages it independently. However, they
cannot perform their obligations of expanding the business as a whole.
Partnership: In this type of business organisation have various advantages which are associated
with the partnership business. Some of the advantages which are associated with these are they
have a diversified management system which is helpful for promotion & expansion of business.
While on the other hand some of the disadvantage includes liability of a partners which are up to
the amount of their personal assets.
Corporations: In this kind of organisation, which has an advantage of expanding business
operations in to other parts of country on its own name and it also has the advantage of financing
the business of the company (Perry-Kessaris, 2016). Whereas it has the disadvantage of time
where every decision is to be taken by considering the shareholders of the company.
Task 4
P6 Identification and recommendation of appropriate legal solutions for resolving a range of
disputes with the help of relevant examples.
As for identification & recommendation of the legal solutions for any dispute that has
been arose between the parties. It is important to create a hypothetical case to better
implementation (Persadie and Ramlogan, 2015). Hence it is seen that there is a dispute regarding
the breach of contract between the parties named Jarvis and Tony where Jarvis worked for the
company named SI Ltd. Here the company face the problem of breach of contract where both
must give the prior notice of 3 months before leaving the organisation and Jarvis left the
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company without serving notice period. Also, the reasons which were given by Jarvis were not
appropriate.
Contract: this is considered as the document which has the legal binding on the
contracting parties who decides the terms and conditions of the employment. Hence here it was
given that the contract was valid as both accepted the offer. It has been seen as, there are various
types of contracts in accordance to which the terms and conditions of the contract are decided.
Some of the terms in the contract can make the contract void or void-ab-initio.
Here, in this case both the party can take the help of Alternative Dispute Resolution to
solve the legal dispute which is going on between them.
Alternative Dispute Resolution (ADR): It is the least complex type of method of solving
the dispute between the parties (Picciotto and Mayne, 2016). It is useful because it lessens the
general expense and time of included people. ADR was given the lawful rights to explain
question since it has lessen the weight of courts. There are different methods of solving disputes
under ADR which includes the following:
 Mediation
 Conciliation
 Arbitration
CASE 2: In this case there was a dispute between P and Q. The main reason of arising
dispute was related to default in payment. P was the defaulter in this case who took the loan from
Q. Due to some family issues P was unable to pay the debt amount on time. By looking at this
matter, Q want to sue P for recovering money from him.
As, this case totally related with default in payment. It was important to pay the debt
amount but, file a case is not the best solution. It is important to solve the case from the Method
of Alternative Dispute Resolution. Here, they can select mediation process as they only need
advices so that mind set can be changed. It is important for both the party to save their time
because filing a case in law will not allow to do that. If P and Q will take the help of mediator
whose responsibility is to solve the case by giving advice. Mediator will help to decide new date
on which P have to pay the debt amount.
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CONCLUSION
As per the description of the above given report it has been concluded that the business
law is reasoned as one of the essential law which is used by the different organisation to operate
their business. It is important for the company to have the knowledge about every aspect of the
law to perform their obligation accordingly. The potential strength is to develop law in UK is in
the hand of parliament. Hence it is important for the company to move the programme of the
organisations act to confront the penalties. Also, ADR is best way of dispute resolution.
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References
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Allen, W.T., 2017. Our schizophrenic conception of the business corporation. In Corporate
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Bacon, M., 2017. Taking care of business: Police detectives, drug law enforcement and
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Scholes, M.S., 2015. Taxes and business strategy. Prentice Hall.
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