Business Law Report: Sources of Law, Business Types, Problem Solving

This report on business law delves into the core principles governing business activities. It begins by exploring the various sources of law, including customs, statutory laws, common laws, and European laws, within the English legal system. The report then examines the role of government in law-making, outlining the procedures involved in creating and amending laws. It further analyzes the application of statutory and case laws in providing justice, supported by case studies such as Lee v Lee's Air Farming and Industry v Bottrill, and presents the structure and hierarchy of courts in the UK. The report also evaluates the effectiveness of the legal systems. The second part of the report focuses on different types of businesses, including limited companies, sole proprietorships, and partnerships, discussing their advantages and disadvantages. It differentiates between legislation, standards, and regulations and examines their application in company, employment, and contract law, with the support of the case Pimlico Plumber V Smith. The report provides a comprehensive overview of business law principles and their practical implications.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................7
TASK 3............................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business law refers to the structure of law which is mainly regulated to control and
manages the activities in business. It mainly carries laws relating to the forming and running the
business, the funding which they are using to manage the overall activities and also the rules and
regulation which is imposed to manage the activities in better way (Business Law and
Regulation, 2019). Usually parliament impose such rules in respect of securing the rights of the
parties and also provides security to the employee who are engaged with the business. It mainly
secures the parties from committing any civil and criminal laws and also impose condition for
breach in case of violation of the norms by any of the parties.
Present report is based upon the case study relating to examining the sources of law and
also the role of government in law making. It also covers the matter relating to types of company
which is carried by partners regarding establishing the business. Further it includes the aspects
relating to examining the solution which is used by partner regarding solving the business
problems.
TASK 1
In relation to explaining the different sources of law, they are undertaken in ways of
interpreting the English legal systems. It is mainly categorized into four sources:
Customs: This law is not mainly written and also it runs from the ancient times. Generally, it
customs the existing laws due to changes in time and demand of the public regarding getting fair
judgement from the issues faced.
Statutory laws: It refers to such laws which is mainly imposed by the parliament and thus mainly
focus on providing justice to parties regarding the laws which is mentioned in the constitution. It
carries to be the act of parliament which attains the right regarding amending the exiting laws
due to undertaking the market demands and fulfilment of the people needs (Singh, 2016).
Common laws: It is also termed to be case laws in which the judgement to the people are given
through referring the existing case laws. It not mainly focus on undertaking the laws which is
mentioned in the constitution as the judgement is to be given on the bases of the reflecting the
previous cases and then accordingly decision is passed.
Europeans laws: This is mainly established in 1973 which the motive is to secure the right of the
citizen of UK. This law is mainly designed in respect of bringing changes in country culture and

also providing more security and rights to citizen to take their own decisions. This law is mainly
operated by the member of the European community and European Union.
Thus, it refers to the major sources of laws which carries the equal importance in
providing justice to the persons. In respect of undertaking the matter relating to Role of
government in law making, it carries various procedure which is undertaken as follows:
The procedure of making law is undertaken when the changes are demanded by the
person regarding imposing new laws or amend the exiting laws. In such manner the duty of the
public authorities is examining regarding evaluating the changes in making new laws. Thus,
from such aspects, the draft is placed and presented before the cabinet ministers in respect of
undertaking further proceedings (Marson, Ferris and Fletcher, 2019). After getting approval from
the cabinet minsters, the further proceeding is done which carries the presentation to be made in
either, house of common or house of lords. As through these aspects, the first reading is
undertaken in which the title of the bill is read and also the reason behind carrying the bill.
After getting the approval of the first reading, the second reading is conducted in which
the stability of the bill is determined through conducting the majority. After having the detailed
procedure of the second reading, the bill further raised to the committee where the detailed
discussion is undertaken and also changes are to be made in the bill. From this procedure, it
further refers the bill to the report stages where again the decision is undertaken by both the
houses in respect of verifying the changes or also recommend for the changes to provide better
laws. It can also be said to be third reading of the bill.
After carrying the majority regarding the imposition of the bill in country, it refers to
undertaking the voting regarding carrying the bill for further proceeding (Lee and BAO, 2019).
After getting accurate results, it sent to monarch for consent regarding implementing such bill.
The law is established once the queen sign the bill and gives the liberty to impose in country.
Application of statutory and case laws in providing justice to parties:
Statutory laws: In these laws, the justice is provided to the people regarding the laws mentioned
in the constitution. Thus, it is the duty of the court to provide justice to the people through
recommending the laws which is mentioned in constitutions, though this manner it results in
undertaking fair decisions. It is explained with the case study relating to the Lee v Lee air
farming, 1960 which is important for UK company law as well as the case is relating to facing

issues regarding carrying the separate legal entity (LEE V LEE’S AIR FARMING LIMITED: PC
11 OCT 1960, 2020).
Case laws: In this case, the justice is given to the people regarding carrying the issues which is
already occurred in the previous cases. In such manner the judgement is to be raised through
referring the decision of the previous cases and applied it to recent case. It is explained with the
case study relating to Indusstry v Bottrill [1999] EWCA Civ 781 in which the issues are raised
regarding lifting the corporate will and the judgement is to be given through referring the
previous cases where the same situation arise and the decision is made through resolving
disputes (SECRETARY OF STATE FOR TRADE AND INDUSTRY V PETER BOTTRILL: CA 12
FEB 1999, 2017).

Structure and hierarchy of court in UK
Illustration 1: Hierarchy of civil courts in England
Source: Hierarchy of civil courts in England, 2018
Evaluating the effectiveness of the legal systems:
In respect of carrying the effective legal systems, the positive aspects regarding these
aspects is that it helps in providing fair decision to parties and also resolve the disputes within
the stipulated time period. The negative aspects of undertaking this effectiveness is relating to
changes in laws resulting in sometimes affecting the rights of the parties regarding providing
jut8ie. As they mainly depend upon getting judgement through referring common laws but this
sometimes not vary to the right of the parties (Nemeczek and Pitz, 2018). This can be supported
with the case relating to Fred V Gordon. As the issues is undertaken by not following the

employment act and also not manage the company according to the norms mentioned under the
companies act.
TASK 2
In context of undertaking the matters relating to identifying different types of business, it
is stated as follows:
Limited company: In respect of choosing the limited company, the liability of members are
limited to the amount of share held by them (Four Forms of Business Organisation, 2019). It is
managed by the owner itself and also funding can be raised through offering shares to public.
The benefits of choosing the limited company is that:
 The benefits are to be given on taxes and also in respect of undertaking the business as
separate legal entity.
 In case of death of any partner, the company will not be dissolved.
In respect of examining the disadvantage to limited company, it is stated as:
 It carries higher cost to set up the limited company.
 The business had to pay high cost in respect of paying the corporation tax.
Sole proprietorship company: It is also known as sole trader company in which the company is
ruled by the individual person which is liable to enjoy all the profits or occurs all the losses. In
terms of laws, they can also legally mark their name through enjoying the right of carrying
unique identity in business (Marson, Ferris and Kawalek, 2019). The business is managed by
individual itself and also funding can be undertaken from friends and family. The advantages of
carrying this business is that :
 To start-up the business as sole trader is generally easy and also not so complicated to
manage the business.
 Owner can enjoy the profits for it own.
The disadvantage of undertaking the sole proprietorship business is that:
 They are not liable to get easy loan as they not carry the renowned brand name in market.
 They had to bear the losses by their own without any sharing of any person.
Partnership company: In this company two or more partner with mutual agreement start the
business by signing the partnership deed in which they mutually decide to share profits equally
and also distributed losses. In this, company is to be managed by the partner and also funding is
to be undertaken through getting investment which is made by partners (Biermeyer and Meyer,

2019). They can also take help from banks regarding applying for loans in respect of managing
the business. It covers the following advantages as:
 The business is easily established and also require low cost to manage the activity.
 The investment in respect of capital and loan is easily incurred in business.
Disadvantage of the partnership business is that:
 The chances of difficulty arise between the partner regarding sharing profits and losses in
business.
 The issues arise regarding taking the right decision for business for longer term growth.
 In case of death of any partner, the partnership firm will be dissolved (Azmi, Abd Razak
and Ahmad, 2017).
Differences among legislation, standards and regulation:
 Legislation: In relation to undertaking the matter relating to examining the impact upon
the business, the laws are imposed in respect of securing the right of the business in
country. Mainly laws are designed regarding the employment act, consumer protection
act, maintaining health and safety norms, competition act etc.
 Regulations: After undertaking laws for various aspects, rules are imposed upon the
particular sectors regarding working under the set norms (Adams, Caplan and Lockwood,
2020). Usually for the companies, various rules are set regarding maintaining the
relationship with the employees in better way.
 Standards: It refers to setting the particular target for the employees and company which
they had to achieve within the set time period. This can be achieved through carrying the
detailed investigation of activities which is attaining by employees in respect of
enhancing the business.
In context of examining the norms which is set under the following aspects such as:
 Company: This law is mainly regulated under the companies act, 2006 and also it is
designed to manage the working criteria of the shareholder regarding attaining the task.
 Employment law: This is regulated under the employment and labour laws, 20156 to
mange the relationship between the employee and employer and also working under set
norms to not violate any of the terms (Mai, 2017). In this the employer had to carry the
duty of torts regarding attaining any task which affects the right of the employee.

 Contract law: In these laws are to be maintained in respect of entering into any agreement
between any of the parties. The contract law is mainly designed in respect of securing the
right of both the parties regarding entering into any agreement or dealing with any
matters in respect of some consideration.
In respect of dealing with all the matters, it is supported with the case related to the
Pimlico Plumber V Smith, as in this case the issues is raised regarding getting termination from
the job and also violation o the terms of contract. As during attaining the task Mr. smith faces an
injury which resulting in causing the half body paralysed. By demanding from getting time
compensation, the notice of termination is given to Mr smith by Pimlico plumber company
(Pimlico Plumbers Ltd & Mullins v Smith [2018] UKSC 29, 2019). Thus, the case is filed against
company regarding committing breach in terms of contract and also not providing compensation
for the losses incurred. The judgement against this case is given in favour of Mr smith by
considering him the employee of the company and also liable to get damages for the losses
incurred.
TASK 3
A) In this case, the issues is raised between the Maxwell V Duvell Angelica regarding selling the
painting for £500 and for that the 10% deposit is already made in cash. The deal is made
regarding paying the remaining amount during the closure of the exhibition. But before such
closing happens, Maxwell had already negotiated the painting with some other clients for £900.
Thus, the issues is raised regarding stopping Maxwell in respect of illegal dealing as per terms of
law. In such case, Angelica can demand from the court regarding imposing special performances
against maxwell in respect of performing the contract (Barker and Chiu, 2018). As the deal is
made regarding purchasing of the painting but Maxwell make the deal with other clients
regarding selling painting at greater price. Thu by imposing special performance in contract or
can also approach to negotiator regarding settling the disputes. In this case the issues can also be
resolved through carrying the negotiation in which both can present the part of the contract and
also this is mainly undertaken in respect of out of court settlement.
This is supported with the case relating to Carlill v Carbolic Smoke Balls Company Ltd.
In this case the contract is made regarding fulfilling the agreement which is made between the
parties regarding purchasing of any carbolic smoking balls through accomplishing the task

(Carlill v. Carbolic Smoke Ball Co, 2019). Once the task is completed but later the company
refuse to pay money. Thus results in not accomplishing the contract with the said terms.
B) In this case, the matters reflects the issues relating to the terms of employment which is
carried by Newcastle. As the issues is raised regarding not accepting the offer which is made by
company in respect of moving the city with family. Thus, the results of rejection is raised in
respect of loosing job. Under the employment and labour law, 2016, no company carries the
rights regarding removing any employees until and unless they commit breach in any of the
terms (Singh, 2016). Thus, it is stated that under the norms mentioned under this act, if the
employee is the member of the company that they carry the right regarding retaining the interest
until the breach is committed in any of the terms. Thus, Nicholas can file the suit under this act
for getting compensation for the losses incurred regarding removing from job. In such manner,
Nicholas carries the right regarding working under the same company with the stated position,
which they are previously working in it. In this case the Nicholas can also appoint the arbitrator
regarding making settlement with the company in respect of not removing from his job. As the
role of arbitrators is unique as they listen to both the parties views and then make judgement
which is liable on both the parties to follow it. Usually parties can demand from the court
regarding appointing the arbitrators to settle the matters. But the decision or rewards given by the
arbitrators is bound upon the parties and also they are liable to follow it without any negotiations.
This is explained with the case study as Pimlico Plumber v Mr. smith, as in this case the
termination of the Smith job is undertaken regarding not carrying the work with the said terms
(Pimlico Plumbers Ltd & Mullins v Smith [2018] UKSC 29, 2019). As it also reflects the matter
relation to carrying Mr. Smith as the employee of the company and that's the results the
compensation is also not paid in respect of losses incurred.
C) In this case the issues is raised regarding not undertaking the instruction which is made in the
company regarding walking safely at work premises. In respect of providing the legal advice the
matters resulting under the law of torts, as the duty of care and negligences is stated as the
employer duty is to fix the railing within the stipulated time period. It also undertaken that the
incident is happened at work place and thus the company is liable to pay compensation for the
losses incurred under the law of torts act.
In law of torts act, if the employer is familiar with the issues which is raised in near
future and also such issues affects the right of the parties, than it is the duty of the company to

pay compensation for the losses incurred (Marson, Ferris and Fletcher, 2019). Thus, in this case
the Johnson is liable to get compensation for the actual losses incurred but in return company
also claim Johnson regarding not reading the appropriate norms which they stick on the notice
board regarding getting aware of such issues.
This is supported with the cases relating to the Wheat V Lacon [1966] AC 552 in which
the issues are raised regarding not taking proper care of stepping out of the stairs. The damages
which is caused in respect of hitting his head and her husband died due to such aspects. The
claimant filed the suit against the owner regarding not providing the accurate details about the
house (WHEAT V E LACON AND CO LTD: HL 1966, 2020). Thus, compensation is demanded
for the losses incurred by them. In such aspects, they file the suit under the owner liability Act,
1957 regarding failing negotiation in respect of complying with the actual terms which is
mentioned in contract.
CONCLUSION
From the above study, the report conclude the matters relating to examining the
importance of the business laws and also it works under the norms established under the
companies act, 2006. Various powers are given to the employer and employees and other people
regarding working under the set direction and also guide people to take right decision. In this
report it also concludes the matter relating to providing various sources of law which is designed
to provide justice to parties. It also covers the matters relating to examining the formation of the
companies and also the best methods which the company is using to establishing the business. In
respect of appointing the arbitrator and negotiator to resolve the disputes helps in setting the
matters within stipulated time period and also getting judgement on speedy bases.

REFERENCES
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