Business Law: Sources, Role of Government, Impact on Business, Formation of Business Organization, Management and Funding, Legal Solutions for Disputes

Unit 7- Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P1 Different sources of law in UK..............................................................................................1
P2 Role of government in law-making.......................................................................................4
P3 Impact of different laws on a business...................................................................................4
P4 Formation of different types of business organisation in legal form.....................................5
P5 Management and funding of different form of business organisation...................................7
PART 2............................................................................................................................................8
P6 Legal solutions for resolving range of disputes.....................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Law is defined as set of rules and regulations that are implemented and enforced through
governing institution in a country so that behaviour of individuals and organisations can be
regulated in well defined manner. Laws in a country is established with a mix of science and arts.
English legal system is one of the oldest and laws in UK are created by the legislature. The most
important pieces of legislation are act of parliament. In UK legal system is comprised of different
laws that are designed to deal with a particular group or an issue. Business law defines set of
laws through which each form of commercial organisation is governed (Beattie and Smith,
2013).
In this project report basic nature of legal system in UK is defined with potential impact
of the law on a business. As per business law formation of different types of business
organisation and appropriate legal solutions to resolve different areas of dispute is discussed in
this project report.
PART 1
P1 Different sources of law in UK
A legal system is referred as process through which rules and regulations that needs to be
implemented or enforced by law is defined. In UK legal system is administrated by England and
Wales courts which provides regulations in relation to civil, criminal and common laws. Purpose
for which a legal system is established is to bring governance in the economy. As offences
against a federal, state or local community subject to any law will help to punish an offender
when legal system is available and defined in the country. When laws are established they must
accomplish the purpose of their establishment such as establishing standards, maintaining law
and order, resolving disputes and protecting rights and liberties of each citizen in UK. Formation
of laws was started even before any record of history was made. These laws were formed on the
basis of disputes that arises in the society (Blair and Stout, 2017). Slow and study changes are
made in legal system and law formation on the basis of changes that are taking place around.
From that time till now legal system is evolved for betterment. Their are several sources in UK
legal system that are considered for formation of laws. Some of the sources are defined as
follows-
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Legislation: These are the laws that are implemented by the governing body in a country.
In UK parliament based in London is considered to be the legislative body that possess all the
power for formation of laws for England, Wales, Scotland and Northern Ireland. In parliament a
proposal to become a law needs to be approved with house of common and house of lords with
royal consent.
Directives: As UK is the member state of European union and all the laws applied by the
union on member state become a source for UK law (Cane and Atiyah, 2013). Directives are the
laws that are implemented by the union to accomplish a particular objective and is a good source
of law.
Case laws: A law report is published which determine decisions of the court that are very
important and one of its kind. These decisions become basis to resolve issues in the same context
for future. They are termed as one of the important source through which laws in UK is defined.
Treaties: These are the written agreements that are entered among to countries in relation
to a particular situation. For example- business treaty of UK with America is one of the source
through which business law is established in UK.
Difference between civil law and criminal law-
Basis Civil law Criminal law
Meaning Laws that are formed to
resolve disputes take place
among individuals and various
organisations.
Criminal law deals with
offense committed by an
individual against society as a
whole.
Purpose Civil law is established to
bring sustainability in the
rights.
Criminal law is implemented
to maintain law and order in
the country.
Matter considered Harm and violation to rights of
an individual.
Actions that are considered as
offense as per law.
Results This law provide remedy to
compensate.
Punishments are provided for
offense.
Power of court Implementation of charge for
damages.
Imprisonment, fine and
discharge is applied on guilty
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