Business Law: Sources, Business Types, and Dispute Solutions Report

This report provides a comprehensive overview of business law, beginning with an introduction to the subject and its importance in the context of commercial organizations. It delves into various sources of law in the UK, including legislation, common law, books, and encyclopedias. The report then explains the role of the government in law-making, detailing the legislative process from the first reading to the Royal Assent, and the application of statutory and common law in justice courts. It further explores the impact of company, employment, and contract law on businesses, using specific examples to illustrate these concepts. The report then examines different types of business organizations, such as sole proprietorships, partnerships, corporations, and limited liability companies, covering their legal formation, funding, and management aspects, including advantages and disadvantages of each. Finally, the report recommends legal solutions for resolving disputes, using a case scenario involving a breach of contract between two cinema chains, highlighting the importance of contractual obligations, and the concept of duty of fairness within contracts.

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
P1 Explain different sources of law............................................................................................3
P2 Explain the role of government in law making and how statutory and common law is
applied in the justice courts.........................................................................................................4
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business...................................................................................................4
P4&P5 Explore how different types of business organisations are legally formed, funded and
managed......................................................................................................................................5
P6 Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business law these are the laws which has been brought into existence for making an
business organization by following rules that is given within the laws. Such laws makes proper
framework to be formed which leads over achieving of goals and objective set by an
organization with the help of legality maintained. These laws are known as commercial laws due
to its nature of dealing with both private and government organization. Scope of these laws make
business organization various aspects covered in more effective manner. Nature is dynamic as it
deals with various processes which makes an organization attain value within market. In this file
things to be covered is based upon various sources used in forming laws, legislative process for
laws formation. Then types of business organization and then in the end ADR process has been
covered.
TASK
P1 Explain different sources of law.
Laws are the set of regulations which has been brought into existence for making balance
to be created within society through eliminating disturbing element present within society. They
covers various aspects within society by enhancing concept of welfare state. Law holds existence
from long time period and are been formed with the help of various kinds of resources which is
used in establishing of basic structure of law. Various sources of law in UK has been explained
below:
Legislation: It is one of the most affective law source which makes law formation
possible by helping in making analysed of conditions existing within society. In this three pillars
of that is executive, legislative and judiciary leads over law forming (Zu and Krever, 2020).
Common laws: These laws has been formed over those judgement which has been made
by judges within landmark cases. Such judgement is been used as law in relation to cases of
similar nature.
Books and journals: In this source laws in relation over information regarding laws is
been covered. The source is very important from view point of studying laws which makes
students understand about laws which are covered within there academic year.

Encyclopedia: This is one of the most important source which is used for understanding
meaning of law. Under it only specific meaning is been found over those words that is used
within cases.
P2 Explain the role of government in law making and how statutory and common law is applied
in the justice courts.
Parliament is the ultimate authority which make formation of law possible within the
process defined under constitution (WTO, 2020). In this two house is there which is House of
Lords and House of Commons within which discussion takes place in order to make bill as
permanent law. Proper process is been followed which makes law formation possible. The
process has been explained as follows:
First reading: At this stage bill is been presented in parliament. Only presentation of bill
is done with name and no discussion takes place within it.
Second reading: The stage is based upon reading of all key points of the bill is discussed
in detail and also amendments is to be discussed. Then voting upon bill is done with the help of
VIP system.
Committee stage: Under the stage line by line discussion is done including amendments that has
been made. Again voting is done over changes which is been made within the bill. There is no
limit over members taking part within it.
Report stage: The stage is based upon examine of changes again and if required more
amendment can be suggested. Then again voting is done over amendments made.
Third reading: The stage aims upon covering all the ambiguity presented within the bill. Then
its is send to House of Lords for further analysis. If any amendment is been suggested by the
upper house. It is dependent upon house of commons to accept or reject it. This can take lot of
rounds at several times.
Royal Assent: This is the last stage within which bill is been send to monarch for sanctioning of
the bill. Without it bill cannot become law and authority given under Royal Assent act.
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business.
Contract laws: These are the laws that has been used for making agreement formed
within two parties. Under the laws various kinds of elements is been used for making an
agreement to be valid contract. This can be in both written and unwritten form and elements

should be presented in an agreement over making it law. Elements that is been used in contract is
offer, acceptance, consideration and legality. Contract laws helps in handling of various
transaction in appropriate manner. For example A has to purchase radio set for ten thousand
euros from B. B tells that payment is to be done with the help of cheque.
Employment law: They are the laws which is been used for dealing over aspects that is
related with employment, remuneration, working environment and industrial relation. Also these
laws has been formed over building of tripartite relation between employer and employee. Under
the laws different rights and duties is been followed by employer and employee in an
organization. Employment laws make employees interest been protected from any kind of
exploitation. Arom is an employee working in an organization but feels that he is been
discriminated on the basis of colour by his seniors (Wintemute, 2016).
Company law: These are those body of rules which makes governing of rights, in
relation upon conduct of person possible within corporation or an organization. These laws has
been defined under Companies Act 2006 which deals with incorporation process and rights with
duties of directors is been protected. Also it makes comparably for an organization to form
Memorandum of Association and Article of Association. ABC ltd is new organization which has
been formed is required to make MOM over making its organization legal.
P4&P5 Explore how different types of business organisations are legally formed, funded and
managed
Sole proprietor: This is that kind of business organization which is not related over legal
distinction made between owner and entity. Businesses organization of these kind have only one
owner which makes running of business possible. These organization is been formed with the
helps of unique number which is been generated in the form of INHC number which allows
business to be generated. Management is done by person which is the owner of business and
funding is done by close member of family or friends. Different advantage and disadvantages has
been given as follows:
Advantages of sole proprietorship are
 Profit is been earned by the owner and himself over business. No complex process is involved within its formation of business.
Disadvantages Of sole proprietor

 All kinds of problems is required to take care by the owner himself that only increases
burden of facing loss and debts.
 Funding is also difficult to be arranged at times as funds arranged through personal
sources.
Partnership: In this business organization is been formed with two or more persons that
makes common motive of earning profit (Schillig, 2016). Under it common motive is there
through this profit is been earned. Under such organizations formal agreement is formed within
parties in order to run business. These organization is been formed by an agreement signed by its
partners and it is funded with the help of funds arranged by partners. Management is been done
by its partners. Certain advantages and disadvantages are been given as follows:
Advantages of partnerships
 Funds is generated in better manner as more persons is involved in business. Profit that has been generated is been divide equally among partners.
Disadvantages of partnership
 Debts and loss has to be bare by the partners that may get complex at times.
 If an partners dies then whole partisanship firm comes to an end. Due to
misunderstanding resulting into dissolution of partnership firm.
Corporation: These organization are those business organization which is private in
nature and organization is considered as separate organization. In this business organization is
been managed by its directors which are owner of business .(Sanseverino, 2020). Formation
process uses document verification which is been done from companies house. Also name of
organization with memorandum of association has to be submitted. In this funding of
organization which make loan from bank over debentures and bonds. Further Advantages and
disadvantages of such organization is as follows:
Advantages of a corporation
 Liability is limited over owners and various processes is to be handled by them only. Transferring of an organization is easy to be formed through through fair means or
losses .
Disadvantages of corporation
 Process of making an organization is also very complexed in nature.
 Forming of organization is required to makes lot of documents to be applied.

 Rigidity is there in the process of running that makes it complex in nature.
Limited liability company: In this limited liability is been separate with the owner of
business. The shares of the organization is been sell to public and contains multi pal owners.
Formation of these organization is been done by through incorporation process. Management of
these organization is done by members invested in owner. Funding is done by financial
institution. Further advantages and disadvantages has been explained as follows:
Advantages of LLC are
 Organization owners has to share profit as per there investment. Profit shared by owners is without any double-taxation.
Disadvantages of LLC are
 Different laws can be used for limiting of ownership.
 Agreement formed should explain about all the things in detail and must explain about
information related to business been done.
P6 Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support.
Case Scenario: In this case Canada's largest cinema chain which began to take legal action
against UK's Cineworld over making accusation over organization that has been breached with
obligation over terminating a planned £1.6billion takeover deal last month. The claim is against
cineplex as they have violated aspects of agreements. In this an Toronto based business were
there over wining cases and only receive damages concerning the cost of expense over
acquisition. Further Arrangement Agreement' was provoked between them on 12th June and head
become aware about breach done within the deal by Cineplax and also experienced a 'material
adverse effect.' Also “ 'Cineworld is entitled to recover from Cineplex all damages and
losses that it has suffered as a result of Cineplex's breaches and the Acquisition not
proceeding, including its financing costs, advisory fees and other costs incurred.” In this
Cineplx counter and reach of contractual obligation has taken place in relation to duty of good
faith and honesty while performing contract (Nyugha, 2020).
Legal solution: In this case scenario it can be observed that contractual agreement occurs
which makes both the parties bound to follow obligation over contract. Contractual agreements
are those agreements which has been formed in order to make an agreement turned into contract.

Further in the case it can be observed that duty of fairness is been marked out as reason for
breaking of contract.
Duty of fairness this is based over those contracts which is related to goodwill that is
been set by an organization or individual at the time contract has been formed. Under this duty it
is the basic responsibility of an individual to make trust developed between two parties. Breach
of such duty amounts to breaking of contractual obligation and damages can be covered in the
for of remedies given under contract (Derclaye, 2018).
Alternate dispute resolution system
Alternative dispute resolution (ADR) is the process by which parties make solving of
dispute with out going for litigation of court matters. In this various kinds of process is involved
which are mediation, arbitration, negotiation and conciliation. The process is less formal and
does not take time within proceedings as matter is been solved outside the court. In ADR
processes such as mediation, parties play an important role in resolving their own disputes.
The method of ADR that is to be used is arbitration which makes appropriate solution to
be marked out in relation to case.
CONCLUSION
From the above discussion it can be concluded that business laws are the laws that has
been formed in order to make business organization establish themselves in legal manner.
Further the file explain about sources of law that is involved within it. Then law making process
is explained. Also various kinds of organization there formation is been discussed. In the end
ADR and appropriate legal solution in relation to case study is been discussed.

REFERENCES
Books and Journals
Adams, A., Law For Business Students By Alix Adams.
Derclaye, E., 2018. CUDR and CRDR post-Brexit from a UK and EU perspective—Will all
unregistered design rights become history?. Journal of Intellectual Property Law &
Practice, 13(4), pp.325-331.
Nyugha, P.G., 2020. AN APPRAISAL OF CRIMINAL LIABILITIES FOR BUSINESS
OFFENCES UNDER OHADA LAW AND THE PENAL LAWS IN CAMEROON.
National Journal of Criminal Law, 3(2), pp.17-21.
Sanseverino, A., 2020. The Impact of Anti-Corruption Laws: Evidence from the UK Bribery
Act's Extraterritorial Reach.
Schillig, M., 2016. Corporate law after Brexit. King's Law Journal, 27(3), pp.431-441.
Wintemute, R., 2016. Goodbye EU Anti-Discrimination Law? Hello Repeal of the Equality Act
2010?. King's Law Journal, 27(3), pp.387-397.
WTO, 2020.THE UNITED KINGDOM's WITHDRAWAL FROM THE EUROPEAN UNION:
COMMUNICATION FROM THE UNITED KINGDOM. WTO General Council.
Zu, Y. and Krever, R., 2020. The United Kingdom has spoken: The receding impact of European
jurisprudence on the UK interpretation of the common VAT system. Common Law
World Review, 49(1), pp.75-91.