Exploring Business Law and Regulations

This assignment delves into the complexities of business law in the UK, covering various aspects such as primary and secondary sources of law, legislation, common law, customs law, European Union law, and international law. It also examines how to apply these laws in a court of justice, types of business organizations (sole proprietorship, partnership, corporation, limited liability company), funding for businesses (self-funding, loans, issuance of equity or preference shares), and management of business activities. The assignment provides a comprehensive understanding of the legal environment of business in the UK.

Unit 7- Business Law

Introduction ..................................................................................................................................... 3
Lo1 & 3 ........................................................................................................................................... 3
P1 Explain different sources of law ............................................................................................ 3
P2 Explain the role of government in the law making and how statutory and common law is
applied in the justice court .......................................................................................................... 4
P4 Explore how different types of organization are legally formed ........................................... 5
P5 Explain how business organizations are managed and funded .............................................. 6
References ....................................................................................................................................... 7

Introduction
According to Abbott, Pendlebury and Wardman (2013), everybody is confined by the law and
there is no exception that nothing can go beyond from the law. Along with UK the governments
of the rest of the world with the business and non-business institutions and individuals must obey
the laws and regulations. Everyone should comply with the legal system of the law in general
and the legal system of business in operating business. For the purpose of accomplishing the
study Avanade has been selected which is an American based multinational company serving IT
consulting and services and operates its business in several countries along with Europe. The
study is going to explore the legal system and different kinds of it encompassing the making law
sources and process, how the law exerts impact on the business along with the formation of
different business kinds, and the resolution of the disputes.
Lo1 & 3
According to Bixby (2011), the legal system of UK is flexible and changes over time. Law
legislator authorities are responsible in terms of making and establishing laws and regulations.
There are two sources of law both primary as well as the secondary laws. The following things
are included in the primary sources: -
Legislation: Legislation refers the laws formed in parliament abiding every single entity
including individuals, business entity, organizations etc. Parliament forms the acts for the
purpose fo making legislations (Blackburn, and Klayman, 2010).
Common Law: Common laws are the laws which are made through the use of right of UK
courts in making judgment in a particular case (Eliot, and Hughes, 2010). At the time of
judgement common laws are made by the higher courts and followed by the low-level courts.
Customs Law: Customs laws are formed and enacted in different communities and the
individuals living in that community must have to follow the laws and regulations of that
community.

European Union Law: European union laws are the laws which are formed to be followed by
the members of the European Union which is own legislation of the union and have to be
complied by each member of the union.
International Laws: According to Eliot and Hughes (2010), the laws that are formed and
followed by international organizations or agencies performing operation in UK like World
Bank, WHO and WTO, etc. are refers as the international laws.
The secondary sources of laws may include journals, books, articles as well as the research
publications etc.
The UK government plays a significant role in terms of formulating the law in order as it enjoys
the liberty in laws and legislation making (Fisher and Phillips, 2019). The parliament has the
responsibility to make the legislation in UK. The parliament’s members identify the issues and
place bills for the purpose of making the laws and legislations. The placement of bills can be
categorise in two types such as public and privet bills. Public bills are made or placed for general
public and the Cabinet members approve the bills. On the other hand, private bills are placed
focusing on local, individual and for the corporate interest.
Both bills are initiated and approved by the house of commons. The bills are approved in the
parliament after debating and voting by the majority in the parliament. The process of approving
the bills through majority votes has several steps- first readings is the general process in which
a title portion of bill is presented and published. In the second reading the government supports
the through discussion and debate of the bills and the opposite party criticise it Sagar, and Mead,
(2015). In the committee and report stage the bills are examined and the loopholes are found.
The amendments are reported in this stage. In the third reading the amendments are reviewed
and which is the final stage of voting. In the proceedings in lord’s house stage the final voted
bill are sent to the supreme court in UK and the house of lords send back the same to the house
of commons for change if any loopholes are found. In the royal assent stage, the Queen gives
the consent before the final enactment of the bill.

Applying Common and Statutory Laws in the Court of Justice
The application of Common and Statutory laws is-
Common Law: In terms of common law the legislators form in in the supreme court of UK.
Tribunals has also the authority to form and use them in similar type. The decision is made by
the jury about the law (Blackburn and Klayman, 2010). The supreme or apex court or apex
courts form het laws and the lower courts follow the laws.
Statutory Law: These laws are the fundamental laws and are more important than the common
laws (Bixby, 2011). These laws are formed with the by adopting a proper discussion process and
analysing the laws. These laws are basic laws and order of a region.
Various organizations can be legally formed in UK such as-
Sole Proprietorship: In sole proprietorship business, the owner is the leader and plays al in al in
the business. The responsibility regarding the revenue and loss are fall on the owner of the
business. It operates by one’s jurisdiction (Eliot, and Hughes, 2010).
Partnership: When two or more individuals come with the purpose of making profit and agreed
to manage the business which can be termed out as partnership business. it can be categorized in
two types (Sagar, and Mead, (2015). In general partnership business the parties are whole
responsible for the property and debt of the business. on the other hand, in limited partnership
business one of the parties can limit their liability to their portion.
Corporation: According to Abbott, Pendlebury, and Wardman (2013) corporation is a legal
entity formed by a group of people to perform a certain task. Corporation is formed with the
purpose of tax. Here, the organization pays tax as an individual and the owners pay tax when
they get dividends or profit. Corporations are two types c and s corporation.
Limited Liability Company (LLC): It is much like limited partnership business. It is a
combination of partnerships and corporations (Sagar and Mead, 2015).

To fulfil organizational tasks, the management of business should be done properly. In order to
achieve the organizational objectives managers and employees should perform in an efficient
manner (Fisher and Phillips, 2019). The business should operate its activities as per the rules and
regulations of business operations.
Funding for business organisations
Fund is the most key factor in operating business. Funds can be managed from different sources
such- self-funding is happened in sole proprietorship and in partnership business (Bixby,
2011). Here the owners get the fund for their business. there are several types of funds needed
depending on the length of the project such as Long, medium and short-term funds. Long-term
funds meet the capital requirement and it is needed for more than five years whereas the
medium-term funds are needed for the duration of three to five years. Further, the short-term
funds are needed for the purpose of working capital (Abbott, Pendlebury and Wardman, 2013).
Issuance of equity or preference shares is an important source of funding in the company
business. shares can be issued to the internal and external shareholders to raise money. Loans or
Borrowed funds is another important source for businesses. A large amount of funds can be
raised through issuing debentures and bonds by the company to the general people (Sagar and
Mead, 2015).

References
Abbott, K., Pendlebury, N. and Wardman, K., (2013). Business Law. Andover: Cengage
Learning.
Bixby, M., (2011). The Legal Environment Of Business. Upper Saddle River, N.J.: Pearson.
Blackburn, J. and Klayman, E., (2010). The Legal Environment Of Business. Boston, Mass.:
Pearson Learning Solutions.
Eliot, G. and Hughes, K., (2010). The Mill On The Floss.
Fisher, B. and Phillips, M., (2019). The Legal Environment Of Business. St. Paul, Minn.: West
Publishing.
Sagar, D. and Mead, L., (2015). Business Law. Oxford: CIMA Pub.