Business Law Report: Sources of Law and Business Impact Analysis

This report provides a detailed overview of UK business law, encompassing various sources of law, the law-making process, and the role of government. It explores the potential impact of contract, employment, and company law on enterprises, offering a comparative analysis of their legislative frameworks and regulatory implications. The report further examines the legal formation, funding, and management of different types of organizations, alongside recommendations for resolving a range of legal disputes. The assignment concludes with suggested legal solutions to address disputes and a comprehensive understanding of business law principles in the UK context.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................1
TASK 1 ..............................................................................................................................1
Various Sources of Law ................................................................................................1
Law making process and role of government as statutory laws are applied in justice
court................................................................................................................................2
Contract, Employment and Company law has potential impact upon enterprise..........3
TASK 2...............................................................................................................................5
Various types of organizations are formed and legally managed..................................5
Business organizations are funded and managed.........................................................6
TASK 3...............................................................................................................................9
Recommendation of appropriate legal solutions for resolving a range of disputes.......9
CONCLUSION.................................................................................................................11
REFERENCES................................................................................................................12

INTRODUCTION
Business Law refers to the body of laws of government that runs the commercial
activities. This governing body deals with both the private and public law issues. It major
regulates the hiring practices, corporate contracts and sales of customers’ goods. Trade
laws are the commercial law that has impact over the businesses in terms of sales,
trade and merchandising (Velenturf and Jopson, 2019). Business laws bounds the
businesses of the organization in the way in which they do business. To run a company,
the enterprise needs to follow the laws and ethics of the business. Any newly start up
business needs to adhere the business laws.
The project report will explicate various sources of law. It will determine the role
of government in law making. The study will illustrate the example of company about
how contract law has potential impact on enterprise. Report will elaborate by doing
differentiation between regulations, legislations and through standard analysis for
identifying the potential impact upon the business. Furthermore, it will explain how
various types of organizations are legally formed, funded and managed. Assignment will
provide recommendations in order to resolve range of disputes through using examples.
Lastly, report will provide legal solutions in order to resolve range of disputes and
conclusion.
TASK 1
Various Sources of Law
UK's constitution refers to parliamentary sovereignty as their key principle.
Parliament is said to be a legal authority that is supreme in UK. Members of Parliament
has the power to pass any law or to end. Legislation of the parliament cannot be over
ruled by the courts (Vagts, Kohand Buxbaum, 2015). It is supreme in against of the
government institutes that includes judicial bodies and executive. Parliament has also
power to change any previous laws that has been written by their ancestors. Thus, the
Parliament can be said as “Sovereign”.
Source of law – It refers to an origin from where a law is being obtained. These are
the constricting rules that helps to govern a territory. United Kingdom of Northern
Ireland and Great Britain consist of four countries namely, Scotland, Northern Ireland,
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England and Wales. Here, some laws are applied in UK as whole but some laws are
applied only for three countries. Various sources of law are explained below -
 Legislation and Parliament – The parliament in considered as legal
authorization in the UK that can end or create any law. None of the court can
overrule its laws and legislation. Thus, it is considered as a source of law. This is
the authority that has power to approve the laws for applying in four countries.
650 members are present in House of common in Parliament. They elect the
members by using the Post system and first past. The candidate is being chosen
that has the highest number of votes by the electors. 800 peers are preset in
House of Lords (The Legal System of the United Kingdom, 2019). Queen has the
right to appoint 600 out of them. Other members are the people in House of
Lords that has given title of Lady and Lord and one of them is a senior priest in
Church of the England. Some countries have the power to pass the law in
devolved matters. It includes Scottish Parliament, National Assembly and
Northern Ireland. The countries in which these laws are passed are applied on
only those countries.
 Common Law – Common law is being made under the legal system of England
and Wales. The decisions which is being taken in the courts of the England and
Wales are used as a base for making other laws in the region. (Scholes, 2015).
These laws are made on the basis of the cases that has passed over the
centuries. At the time of starting of laws in the Wales and England since from the
11 of the century.
 European Union – The directive is being appointed for implementing the state,
national law and regulations that has influence over member states. UK is a
member state of European Union. Thus, this means that laws out there have also
had implications in United Kingdom.
 European Convention on Human Rights – Being a member state of European
council, UK is signer of the European Convention on human Rights (Solomon,
2017). Human Rights Act 1998 comes into the force. Thus, it makes courts
enables in order protect the rights of European convention in UK.
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Law making process and role of government as statutory laws are applied in justice
court
The role of the government in law making process is to pass the law and
evaluating and monitoring the actions of the courts. The role of the government is to
decide which laws need to be implemented and to manage those laws is the
responsibility of the government. The new law introduced in UK is known as bill. The bill
needs to be agreed by the houses of parliament (both) as well must receive a Royal
Agreement by the queen. In order to become a law of parliament the above conditions
should be essential to be followed. Initial an introduced bill is termed as “First reading”.
This is said to be an official notice that bill is being proposed in the court. At the flour of
houses this bill is said to be “Second reading” where the principles points are being
considered MPs looks an examined this bill in detail (How are laws made in the UK?,
2015). The bill is being voted by the members of the parliaments and this is called as
“Third Reading”. If it has majority of the votes than it is gone through House of lords.
Lastly the Queen gives Royal assents to this bill and it becomes Act of Parliament in
UK. There are two ways through which laws can be formed in UK. This is explained as
follows -
 Common Law – This refers to the case laws and are of two types first one is the
law which is passed by the judgements to becomes the new law. Second one is
existing laws that are passed by the judges that creates new distractions and
new boundaries based on their interpretation (Morley, 2016). Various
government agencies also frame laws that are called as regulatory laws. They
have the authority to follow up the laws that are created by the legislature.
 Statutory law – There are the laws that are passed by different government
agencies in various countries. State government and federal passed the laws.
Cities and towns has the power of laws that are passed by the ordinances. The
motive behind introducing the new laws is to meet the needs of citizens in order
to resolve their issues and for formalizing the law that is already in existence.
Contract, Employment and Company law has potential impact upon enterprise
Basis Contract Law Employment Rights
Act 1996
Company Act 2006
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Legislation It is body of laws that
governs the contract's
in Wales and England.
It refers to the
engagement among
the two parties. It
bounds the two parties
by an agreement and it
is also enforceable by
law.
This law is an Act of
parliament in UK.
This law includes the
fair dismissal,
reasonable notice
and time off for
progenitor. The
redundancy of the
unfair dismissal is
also included in the
Employment Rights
Act. This Act mainly
deals with the rights
of the employees.
The business needs
to consider this law
by providing the fair
wages and
remunerations to the
workers
(McCorquodale, Lise
and Brooks, 2017).
It is also the act of the
parliament in the UK.
This act includes the
legal formulation,
termination and the
entity. This act defines
incorporation process
of the companies that
are newly formed. It
describes that
companies can now
fulfils their submissions
and duties by
communicated with
their shareholders
through electronically
(Laudon and Traver,
2016). This act now
has described the
director duties as to do
promotion of their
success to the
shareholders. There is
right to sue the director
of the organization in
this act by the indirect
shareholders. The
nominee shareholders
could receive the
company's information
through electronic
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medium.
Regulations This contract Act has
potential impact on the
businesses. For
making a contract valid
the parties should
consider following
elements of valid
contract -
 Acceptance and
offer – An offer
must be made
by one of the
party to another
one as it shows
the willingness
that must be
acceptable by
the other party.
Acceptance
means that the
other party has
to agreed upon
the conditions
and terms which
is being written
by the one of
the party.
Without making
any negotiations
if the party
This law is also
associated with the
flexible working
conditions of the
employees.
Employers are
ensuring that the
employers are
obliged with the
flexible working in
their organization. As
per the employment
particulars, the
employers need to
serve the conditions
and terms of the
employment in the
written form to the
employees. The
organizations need to
disclose the
information of their
business for the
public benefit. Paid
off time is also be
given to the
employees as per this
act. Before the
company is planning
to make their
This act provides rights
to the limited company
that now there is no
need to hire a
company secretary,
the one director is
enough to run the
business operations.
Naming rules of the
company is being
upgraded under this
act. Directors of the
company can now
keep their residential
address secret from
the public record by
providing the service
address. Annual
General Meeting is not
compulsory obliged by
the private companies.
Private companies is
now not bounds to
organize Annual
General Meeting (Zhou
and Wen, 2019). Share
Capital rules in the
private companies is
also being changed. At
the time of company
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agreed on the
terms and
conditions than
it is said be as
the contract is
accepted by the
both of the
parties (Merry,
Davis and
Kingsbury,
2015).
 Consideration –
The
consideration
must be present
in valid contract.
This is important
from the
perspective of
both the parties.
For example, if
one party sales
the goods to the
another party
than there must
be something in
return. Without
having
adequate
consideration no
party will enter
employees
terminated from the
job they need to give
a prior notice of 1
week. The employees
may have notice
period of long
duration under this
act. The employees
are also protected
from the right that
they are not unfairly
dismissed. Minimum
wages of the workers
need to be paid of by
the employers. At the
time when the
employer is in
insolvency conditions
and fails to pay their
staff in this condition
the secretary of the
state will pay some
amount of the loss on
behalf of the
government.
According to this act
redundancy amount
will be paid through
calculating the
service period of the
formulation, the
memorandum of the
association and
articles of the
association needs to
comply by the
company under this
act.
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into the
contract.
 Intention to
create legal
obligations –
The parties
needs to be
make an
agreement that
is bound by the
law and has
legally formed.
Without having
any legal
obligations, the
agreement can
be said as
contract. For
example, A Ltd
sold goods to B
on the faith that
he will pay the
amount of
goods which is
£25 after a
month this
contract is not
legally bound.
Thus, a has no
rights to claim
money from the
employees and their
age.
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B as there is no
legal document
is being signed
between them.
 Terms and
conditions – The
parties which
are entering into
the contract
needs to be
mentioned the
terms and
conditions of the
contract which
is specific and in
clear manner so
that it can be
bind by the
court. The court
will not approve
the conditions if
it is ambiguous
and vague. For
example, a
claim to B that
he will bring
moon for her
than this
contract is not
valid the
conditions are
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not possible.
Standards It will affect the
entrepreneurship
business. As per the
contract law the
entrepreneurs are bind
with the terms and
conditions of the
contract. There must
be an intention to
create legal
obligations. The
company while making
the contract ensures
that they must write
terms and conditions of
the contract on legal
document.
The company needs
to ensure that the
employees get proper
facilitates in the
organization as per
the employment
rights act. They need
to give reasonable
wages and
remuneration as per
this act. The
Employees are
facilitated with the
flexible working
condition. As per this
act reasonable notice
is being given before
dismissal.
As per the company's
Act 2006, the
enterprise needs to
follow the rules and
regulations regarding
Company Act. As per
this act one director is
mandatory needs to be
appointed. This act is
now providing flexibility
to the enterprise. They
doesn't need to
organized, Annual
General Meeting.
TASK 2
Various types of organizations are formed and legally managed
Types of organizations are as follows -
Sole Proprietorship – This refers to the sole trader. This type of business is
carried out by only one person. The legal authority is also of one person. Any business
losses is to be carried by the single business owner (Beatty, Samuelson and Abril,
2018). Thus, it is a major drawback of the sole proprietorship business. The profits and
losses of the business is carried out by the proprietor. The owner makes arrangements
of the funds by taking help of their friends and relatives. Total control of the business is
hands of the proprietor. Here the owner has limited liability.
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The business of sole proprietorship is being formed by registering the business
name. The owner of the business needs to grant licence from the government. They
need to establish separate finances. The owner needs to report the taxes correctly.
Partnership – Two or more partners when entered into the business can be
termed as partnership. The losses are to be shared by the partners equally. Profits are
being divided equally among all the business partners or as per their capital contribution
ratio. The partners need to pay off income tax returns based on their profits contribution.
Liabilities of the partners are also limited in the partnership. In this the partners can
bring their own money to start up their business. One of the benefit of the partnership is
that risk is being shared. Thus, the loss of the business is not overloaded on the single
person. The terms and conditions of the business can also be adjusted by the partners
as per their suitability and convenience. This conditions may include the withdrawal of
the money by the partners. The money that is being withdrawal for the personal use by
the partners needs to be repaid by them.
The partners need to registered their names as per the formation criteria of
partnership. At least two of the partners needs to share ownership. They need to
mention each partner name in memorandum of association and need to mention their
contribution in the business (Beatty, Samuelson and Abril, 2018).
Corporation – This type of the business has separate lawful entity from its
owners. The liability is unlimited under the corporation. The cooperation control is in
hands of the directors of the business. Cooperation can be incorporated by filling the
articles within the state in which the firm is interested to run the business. The article
contains the information that is related to the business. It includes the business address,
total number of shareholders and number of the directors of the board which are
responsible for handling the management operations.
Number of shares needs to be issued by the corporation and the type of the
business they are running need to be mentioned in the article of association (Epstein,
2018). For looking day to day operations of the business the president is being
appointed by the directors of the board. In the case of the small corporation the
shareholder is one and it is also the director and sole officer of the business. This can
be of three types Public, private and one person. The corporations can be sued by their
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