BTEC Unit 7 Business Law Report: Legal System and Business

This report provides an overview of the UK legal system, examining its sources, including domestic legislation, common law, European law, and the European Convention of Human Rights. It explores key legal terminologies and differentiates between civil and criminal law. The report further analyzes the role of the government in the law-making process and the impact of law on business organizations, including discussions on employment law, contract law, and competition law. Different legal structures used by businesses are also examined. The report concludes with recommendations based on a case study, offering potential solutions to legal issues faced by businesses. The report aims to enhance the understanding of how business law is applied to the running of a company. The report also aims to provide a better understanding of the areas of law in which students will want to specialize.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Sources of Law............................................................................................................................3
Key Terminologies in Legal System-..........................................................................................5
Difference Between Civil Law and Criminal Law......................................................................5
Role of Government in the Law Making Process........................................................................6
Impact of Law on Business Organization....................................................................................7
LO3..................................................................................................................................................8
Legal Structure in business organization.....................................................................................8
Explaining how business organization are manage and funded. ................................................9
LO4................................................................................................................................................10
Recommendation for the Case Study.........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
A legal system of the country is consists of various rules, regulations, processes and
institutions through the activities and business organization are regulated by the government in
country. This is report is providing brief of legal system in United Kingdom. Business law is also
considered as commercial law. Business law is mainly considered as the branch of the civil law.
Various causes related to the business organization, employment contract are analysed in this
branch of the legal system (Allen and Blackham, 2018). The legal system of United Kingdom
will be analysed in report. Various sources of law will be considered in report which are used by
the government to form the constitution or legal system of the country. Difference between the
commercial law or business law and criminal law will be analysed in the report. Role of the
government in the law making process will be analysed in the report. Implementation of
statutory and common law in legal system will be analysed in the report. The impact of the
business law on business organization will be studied in report. Different type of legal structures
that are used by business organization will be studied in report. On the basis of case study
various recommendation will be provided to find better solution for the legal issue faced by
people or organization.
LO1
Sources of Law
The legal system of United system is based on different sources that are used by the legal
authorities to form the legal system of United Kingdom. There are different sources are used by
the authorities to form a legal system in country. There is no proper written legal system is used
in United Kingdom. This sources of law are used by the business organization to meet the legal
standards in organization. Mainly in Legal system of United Kingdom four different legal
sources to form united legal system of country (Croce, Ughetto and Cowling, 2019). These four
sources of legal system of UK are- domestic legislation, common law, European law and
European Convention if Human Rights. These are the main sources of UK law that are
considered by the legal system of the country to maintain effective condition in country.
Domestic Legislation

In the UK law domestic legislation is categorised in two different categories which re
primary domestic legislation and other one is secondary domestic Legislation. In United
Kingdom primary domestic laws are passed by the parliament. These laws are presented in UK
parliament in form of bills that are passed by both houses and royal asset for form a new la in the
legal system of the country. Secondary domestic laws are different from the primary sources of
information. Secondary domestic laws are based on the cases studies and previous decisions of
the court. In the implementation of the secondary law previous cases are considered by the
judges to take legal action on basis of previous case. This is how primary domestic laws are
written and can be taken directly in order to take proper decision. These laws are writer in the
legal system of the country but the secondary laws are depended on the case studies where the
decisions and judgements that are passed by the judge are based on previous cases and the
verdict that I passed at that time. This is how previous case studies are used as example in order
to pass verdict for a case.
Common Law
Common laws are considered as Anglo American laws that are applied to the all people
in country. These laws come from the middle age or eleventh century. This type of law is known
as the case law where legal system of the country develops by implementing improvement in the
judgement passed by the judges for each cases (Karnell and Ryder, 2017). This is how common
law is the legal system that is develops with the time and experience. This is general that is
applied to the al people of UK. All the cases that falls into the common law are judged by the
common law courts in country. This law is practiced since middle ages in England. Similar legal
system also can be found in the American legal system. This laws are also derived from general
civil law and now these are practices to the normal people of the country. Common law is
applicable to the all people in the country. This is how common law feature of the England’s
legal system is considered in the legal system of United Kingdom.
European Law- European law is considered as the law that is formed for the countries who are
the members of the European Union. There is a law formed in European Union after world war
2. The main objective of the European Union Law is to develop better legal condition in union in
order to develop peace in the countries who are member of the European Union. All these
countries have to follow these law in order to maintain peace in the country. As United Kingdom

is the part of the European Union so they also have to follow these laws in order to maintain
same condition in country as other countries of European Union (Herlin-Karnell and Ryder,
2017). This is how All the European Union Laws are considered in the legal system of the UK
that is currently practiced. This is how European Union law is one of the main source of law in
United Kingdom.
European Convention of Human Rights- Some of the laws are their that are followed by all the
countries who are part of the European law. This laws are formed for the people who lives in the
countries that are part of the European Union. Main purpose of the European Union Convention
of Human Rights is to protect the basic rights of people and maintain better condition for people
to live. This law protects the fundamental rights of the people of countries in European Union.
All the human rights laws that are followed in the European Union are followed in United
Kingdom to protect the rights of the people. This is European Convention of Human Rights is
also considered as main source of the law in Country.
These are main sources of law that are considered by the legal system of United Kingdom. As
there is n any written legal system in UK all these sources of law are considered as the legal
system of country (Du Plessis, 2017). These sources of law are considered by the judges while
passing judgement over different cases.
Key Terminologies in Legal System-
There are some key terminologies are used in the legal system that are connected to different
legal procedures. some of the main legal terminologies that are followed in the legal system are-
Allegation, continuance, cross examine, interview, juror. Oath, defence table, felony, grand jury
and hearsay. These are some common legal terminologies that are used in the normal legal
processes. This is important to know the meaning of these terminologies in order to understand
there terms in effective manner.
Difference Between Civil Law and Criminal Law
Civil law is branch of legal system. The laws that are related to the civil wrongs, quasi
contracts are mainly considered under these laws. Nor mal cases that do not includes any
criminal activity are considered in the civil laws (Helleringer, 2018). It can be considered as-
only those cases are considered in Civil law that are consists of contract breach and violation of
the human rights. Criminal law is completely different from the civil laws. All criminal acts and

offences are considered under the criminal law. It is mainly considered as the body of law that is
related to the crime. For example threatening, harmful, endangering to property, health, moral
warfare and safety of people is considered in criminal activities. All the cases that are related to
these activities are handled under the criminal law.
Role of Government in the Law Making Process
In United Kingdom democracy is followed in which the government of the country is
consists of a particular structure of system that is followed by the government in the law making
process. There are main three element presents in the law making process of United Kingdom.
These three elements are- House of Common, House of Lords and royal asset. These three
elements comes in action while there is a law need to be introduced in country. Initially the law
making process starts with the preparation of a bill which is need to be related to the law that is
need to be implemented in the country (Gillies, 2020). All the elements and considerations that
are need to be considered for law are considered in the bill that is presented in the house of law.
This bill is prepared by the members of the parliament with help of legal authorities. Initially
these bill is presented in the house of common which is consists of number of members of
parliament who are elected from the normal voting process in country. As the proposed bill is
presented in the house of the common. It is read by the Member of Parliament who is proposing
it. As Member of Parliament reads this bill in house of common, it is discussed with in the house
of common for implementing required changes in the norms of the bill in order to improve it.
Initially the bill is discussed in the house of common and later it is provided to the house of lords
for the further discussion and implementing required changes in the bill. This is how both houses
discusses the bill to propose and implement it in future as law in country. As both houses
completed the discussion on the bill, it is provided to the group of the people who are considered
as experts and legal advisors to make further improvements to make the bill more accurate s per
the sugestions that are provided in the both houses. These team of authority implement all
amendments in the bill and again send it to both houses. Initially voting is performed to pass bill
in house of common and later voting is performed in the House of Lords. This is how the
propose bill is poased in both houses of parliament through the voting process (Zhang, 2018). As
bill got passed in the both houses of parliament it is provided for the royal accent. In this process
queen sign these bill. This is how a bill that is proposed in the parliament is develop as law of
country. With the royal accent passed bill is implemented as law in legal system of country. This

is how government have to follow specific role in the law making process. This is how complete
process is followed by the government to form law in the country.
There are various areas are considered in the organization of the Judiciary. Some of the
main areas that are considered in the organization of the judiciary are- the judicial executive
board, the tribunals judicial executive board, the judge council, the allocation of day to da
responsibilities, organization of the judicial responsibilities, organizations of the courts and
tribunal and the judicial office. These are some main organization of the judiciary system
Impact of Law on Business Organization
There are different business and civil laws are followed in United Kingdom to protect the
rights of the customer and business organization. The main role of this business law in the
country is to provide better conditions to both business organization and customers to make
effective deals. The main considerations that are need to be over looked by the business
organization are regarding employment law, contract law, competition law, data protection law
(Chiu and Barker, 2018). These laws are need to be considered by business organization mainly.
Contract law in United Kingdom is mainly focused on providing better condition to both
business organization and customer to make proper deal with legal protection process. There are
some terms are considerations are made by both parties that are guarded by the legal process.
Contract law forces both parties to follow all the considerations that are implemented in the
contract. If any party of the contract tries to breach the contract they are liable for the legal
action. This is how the contracts that are come in existence between different business
organizations are protected by the legal law that I known as contract law.
Competition law is part of legal system that promoted and seek to maintain market
competency by regulating the activities that are implemented by the business organization. This
law is processed are implemented by or through the public and private enforcement process. This
is how legal system regulated the marketing competition by regulating the activities that are
implemented by the organization and considered as anti-competitive for market place. This is
how proper law is used by the government in United to maintain healthy and effective
competitive market in country (Spiller and Whiting, 2019). All types of anti competitive
strategies and policies of the business organization are regulated by the organization through the
competition law.

Data protection act or law is related to the security of the information of data that is hold
by business organization and people. There is different type of information and data is possessed
by the business organization that is used by the company to implement various business
strategies in market place. This act prevent the illegal and misuse of customer, employee and
company data for personal use. This is how data protection act prevents the personal use of
public data in business organization. Main purpose of this law is to prevent the business
organization to avoid the use of customer data for personal interest.
Apart from these there are some other laws are followed by legal system in United
Kingdom in order to maintain better business condition in the country and maintain better
business opportunities to all business organization in the market place. Some of the laws that are
also important to consider by the business organization are- tort law, customer protection act, and
health and safety act and protection liability act (Costa and Rossati, 2017). This is how all these
laws are need to be considered by the business organization.
There are various roles and responsibilities employees and employer have in order to
maintain the effective implementation of all these legal act in the business organization. This is
responsibility of the business organization to maintain better business condition in the
organization in order to avoid any kind of illegal practices in organization. There are various
legal processes are followed by both employer and employees that are mentioned in the laws that
are for business organizations. For the process of managing dismissal, redundancy,
discrimination and health & safety are considered by using all these process in the business
organization.
LO3
Legal Structure in business organization
There are different legal structures are followed by business organization to manage
proper operations in market place. In cooperate legal structures are mainly followed by the
business organization wo are owned by the private organization of individual owner. The
corporate legal structures are mainly followed by the public entities that are owned by
government (Arsalidou, D., 2018). Each type of incorporate and corporate legal structure
consists different legal structure in organization. some of these legal structure are- sole

proprietorship, partnership, Private Limited company and public limited company. These are
main legal structure are followed by business organization.
Sole Proprietorship- in this type of business structure complete business of organization is owned
by an individual and this person is liable for all profit and loss of organization. In this type of
business organization flat organizational structure is followed.
Partnership- This is also one of legal structure that is followed in the business organization. In
this legal structure all the profits and investments are shared between the different partners in the
organization. Complete organization is owned by two or more then people or organization.
Private Limited Company- For this type of business structure business is owned by individual
organization of person and individual person is only liable to their share in the organization. This
shares are not transferable to other people.
Public Limited Company- In pubic limited organization proper legal structure is followed. Some
part of the organization shares are owned by the public (Turner and Amirnuddin, 2018). This
organization are mostly of large size and proper organizational structure is followed in this
companies. For example matrix and hierarchy structure are most common in this business
organization.
There are different requirements are need to be considered by the business organization
to run their business effectively in country. For this process there are some legal activities are
need to be followed by the organization to get their business registered in legal portal of country.
Through this process these business organization can effectively conduct their business
operations.
Explaining how business organization are manage and funded.
Sole propritorship:
For sole traders, bank loans is consider one of the best known source that give access to
much larger pool of cash in order to raise money. On the other side, sole trader may also use
personal saving as a source of finance so that they get high profit and there is no interest which
company has to paid. Further to manage the same, proper registration of the company should be
followed like, company has to comply with Company law and make sure that there is no
appointment of directors etc. Because it is sole trader.

Partnership:
For partnership, two types of sources of fund uses i.e. Bank loans and both partner get the
fund from their personal saving (Kwon, Lowry and Qian, 2020). This sources of finance are help
the company to increase the profit. Moreover, as per the law, company's entire profit and loss is
managed by all the partners as specified under the contract. Further, the decision of the company
are are taken by consulting with all the shareholders so that proper decision are taken.
Public limited company:
generally, company raise equity capital with initial public offerings by raising new share
to public so that they may sell off their shares to other people without raising capital. This will
help to generate fund and public listed company may pursue new projects and buy new projects
as well (Leung, 2018). Moroever, there are minimum 3 director in this type of company and if
company is owe by one person then minimum 1 director should be hired. All the stakeholders
have their own roles and responsibilities which assist to meet the define aim of a company.
Private limited company:
Basically, private companies uses bank loans as a common source of fund because they
pay interest as per specified tenure. Moreover, they also use crowd funding as a source of finance
in which a person who is interested may provide amount to the company and provide advice as
well (Haslem, 2017). Also, there are minimum 2 directors required under private firm so that
they will run the company in better manner to raise it at further level of success.
LO4
Recommendation for the Case Study
Case Study 1
It is advise to Gordon that if he has a contract with Orange Computers Ltd then he may
ask to get back the amount which he left when the company is not making healthy profit. As
Gordon may claim againts the company because it is clearly written under the Contract and as
per the contract law, he has a right to get all the wages of 2015 to 2017, otherwise company have
to pay the penalty as a breach of contrat law (Blake, Browne and Sime, 2016). On the other side,
as per the employment law, it is mention to offer minimum amount to the person, but company

only pay wages based upon commission which is not written under contract. If the person is
permanent employee then commission is consider as a incentive and extra benefit, but firm has to
pay minimum amount as it is mention under employment law and contract law. Thus, Gordon
may file a case against the company.
Case Study 2-
As per the contract law, there are three major element of contract law in which it is
suggested to consumer (janet) to choose mutual consent. Technically it is not fair that Virgin
Media took charge of whole week to consumer. That is why, Janet may use mutual consent as a
key element because it is a combination of valid offer and acceptance between the parties. On the
other side, as per Alternative dispute resolution, it is also suggested to use negotiation as a
method of ADR in which both parties may negotiatie at a specific term and condition which
help to solve the problem and take better decision accordingly.
Case Study 3-
In order to avoid compulsory wirnding up, it is recommended to Blackhorse that thety
may use mediation as a method of Alternative dispute resolution method. Under this method, a
third party i.e. Mediator facilitate the resolution process but never impose a resolution on parties.
As a result, the mediator provide a way to both parties in order to solve the dipute otherwise one
of the party has to suffer. Moroever, through this method both parties have a complete control
over settlement and the entire proceeding remains confidential and this method is consider as one
of the quickly resolve method among all (Kramer, 2016). Hence, with the help of Alternative
Dispute resolution, exact results are generated which in turn leads to solve the problem.
CONCLUSION
This report is concluding the information of the business law according to the UK law.
Various sources of law has been evaluated in report. Role of government and process that is
followed by government in law making process has been explained in report. Application of
Statutory and common law has been analysed in report. The impact of the business law has bee
evaluated on the business organization. Various legal structure that are followed by business
organization has been studied in report to analyse their operation and operations in effective

manner. Various cases had been considered in the report for providing better recommendation
for the legal process.