Business Law Report: Sources, Organizations, and Dispute Resolution

This report provides a comprehensive overview of UK business law. It begins by exploring the essential sources of law in the UK, including legislation, case law, and European Union law, as well as the role of the government in law-making. The report then analyzes the impact of contract, company, and employment law on businesses. It further examines different types of business organizations, their management, and funding, followed by a discussion on legal solutions for resolving business disputes, including sources of legal advice and support. The report concludes with an evaluation of the effectiveness of the legal system and the various legal solutions available to businesses. The report covers various aspects of law including but not limited to sources, organizations, and dispute resolution, and provides detailed information on all the topics.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Essential Sources of law applied in UK.................................................................................1
P2 Role of government in law making........................................................................................3
M1 Effectiveness of the legal system..........................................................................................4
TASK 2............................................................................................................................................5
P3 Analysing some of impact associated to contract, company along with employment law
that are significant for business...................................................................................................5
M2 Difference between legislation, regulations and standards...................................................6
D1 Evaluation of the legal system and law.................................................................................6
TASK 3............................................................................................................................................7
P4 Explaining major types of business organisations that are formed legally............................7
P5 & M3 Management and funding of business organisations...................................................7
D2 Review and evaluation of different type of business organisation......................................10
TASK 4..........................................................................................................................................11
P6 Legal solutions for resolving business disputes...................................................................11
M4 Sources of legal advise and support for dispute resolution.................................................11
D3 Effectiveness of legal solutions, legal advise......................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Law is a word that possess different meanings when used at different times. Law is
defined as a body of rules of action or conduct by controlling authority that have some binding
force on them. Law must be obeyed and followed by citizens subject to sanctions or legal
consequence is a law. Legal system of UK consist various laws that governs different issues
arises in the country (De Luca, 2021). These laws helps in bringing peace, preserve individual
rights and promotes justice to every person. Business law is a small part of the large legal system
in UK that helps in governing all the business activities taken place in the country. Business
environment has changed over the past years and this change highly demand rules, policies and
regulations to conduct business in legal manner. Formation of law is quite a long process that
needs quality information and precise decision as these laws are going to affect public at large.
Having a legal system in the country is important as it helps to provide guidelines as to what is
accepted in the society. Business environment is changing day-by-day and to cope with these
changes it is important to understand business law to avoid legal hurdles.
This project report consist information regarding various sources of law through which it
is formed. Role of government in law formation and types of business organisation that can be
formed to conduct business operations. Management and funding of business formation with
legal solutions available to disputes arises in business.
TASK 1
P1 Essential Sources of law applied in UK
United Kingdom of Great Britain consist of four countries England, Scotland, Northern
Ireland and Wales. Laws that are formed in UK are not mandatory to apply over all the four
countries, some applies to one or some applies to two or three. It is seen that the law either
applied to whole of the UK or to England and Wales (Lynch, Cygan and Whitaker, 2020).
Application of law is secondary but formation of law is the first priority. Sources of law act as
information that helps in designing a law and then representing this as a bill to the parliament.
This bill to become a law is required to pass in both the houses of parliament with royal consent.
Laws is formed through various information and this information is collected through different
sources which are as follows-
1

Illustration 1: Sources of law, 2015
Source: Sources of law, 2015
Legislation: The UK does not have a single written constitution, it is described as partly
written and wholly unconfined. Laws that are passed in the parliament are the large part of
written legislation in the country. Laws are defined in the form of legislation which is applied to
whole UK. It is commonly said that “Parliament is Sovereign”. This means that parliament is the
highest authority to pass any law in the country (Schwemer, 2019). Most important piece of
legislation are Acts of parliament. These are considered as important source as any change is
quickly reflected through this source of law formation. When information is provided and bill is
passed the UK parliament which is the principal legislation of the nation passes law for the
country.
Case law: Decisions of the court that are reported in the publications are known as “Law
Reports”. These decisions of the court are considered as fundamental, primary source of law
formation. A law will be considered as successfully developed when the information in the
2

report is reliable. This has evolved as a unique feature in English law, where the reported
decisions of the court forms a binding source for future cases. Judgement that is passed in the
case which is different and may arise in future is considered before taking decision regarding
similar matters all over the UK (Fisch and Solomon, 2019).
European Union Law: UK is the member state of European union which means that
laws that are formed under European union needs to be followed by UK. This becomes another
important source of law formation. Laws that are defined by European union are international
laws which are incorporated into domestic legislation by Human Rights Act, 1998. Courts must
apply these laws according with the convention where possible. When it is not possible to apply
such laws then it can be changed through parliament only.
Law Commission: The law commission is an independent body that was set up in the
year 1965. this commission helps to keep law of England and Wales under review and
recommand reforms when needed. Commission performs its work to carry out consultations with
the wider public and interested parties and experts depending on the area of law. Findings for the
requirements of reforms are submitted to the Lord Chancellor. These reports are considered and
reviewed to bring changes in the legal system of UK.
In R v S of S Health ex parte Quintavalle [2003], case the Pro Life Alliance argued that
Human Fertilisation and Embryology Authority did not have authority to licence research with
regards to cloning. The Human Fertilisation and Embryology Act, 1990 granted the Authority
the right to licence research with regards to embryos. An embryo was defined in the act as “a live
human embryo where fertilisation is complete”. Embryos using cloning are not fertilised. In this
case it was held by House of Lords that the cloned embryos were covered by the statute taking a
purposive approach to statutory interpretation. This case law is served as source of law in the UK
legal system (R v S of S Health ex parte Quintavalle, 2003).
P2 Role of government in law making
Formation of laws required information that is collected through various alternative
sources available through legal system. Parliament perform three core functions one is to
represent citizens interests, another is to pass laws and last is to monitor the actions of the
government. Parliament performance a legislative function because in addition of introducing
new laws and legislation in the country they have power to amend, approve and reject
government draft laws (Kokkinis, 2017). Role of government in law formation is to designing
3

draft as bill for the required law and presenting this to the parliament. For preparation of draft for
new law or altering law various information which is reliable is considered to take decision.
Government in the country deals with general public through various departments and this givers
them privilege to grab information which is required in decision making for new laws. When any
requirement for law formation is noticed then proper research is done in the concerned matter to
check its reliability. All permutations and combinations are applied to make a secure decision.
When the requirement for the law is found then a bill is prepared by government which is draft
for new law. This draft will be submitted in the parliament and now all the decisions will lie in
the hands of the parliament to pass the bill and make it a law that will be applicable to UK. After
checking viability of the project House of Lords and House of common will show their concern
in favour of the bill if they find new law in the favour of public at large. With the approval of
houses royal consent to the bill is also necessary to make it a law.
In the recent reforms after BREXIT it is seen that government intervention is quite
commendable to restore economy of UK. When Britain announce its separation from European
nation this news brings a massive degradation in business sector. To reduce the impact of
BREXIT from the business sector new policies are introduced by government. These policies
helps in smoothing business operations and decreases legal requirement in business (Epeoglou,
2017).
M1 Effectiveness of the legal system
English legal system is one of the well established system that is known for its
effectiveness. To make legal system effective its roots must be stronger and need for adaptation
to changes must be their (Broccardo, Culasso and Truant, 2017). Legal system consist of various
laws that are designed to deal with different issues which make it make effective with no
complication to understand it. Having separate laws for major issues helps in resolving issues in
best manner by understanding legality of the law. Government in UK take an intervention and
helps in suggesting parliament while formation of the law regarding new issues that must be
concerned for taking decision.
4

TASK 2
P3 Analysing some of impact associated to contract, company along with employment law that
are significant for business
Operations in business are not conducted in isolation and while conducting business
activities all the other laws that directly or indirectly affects business needs to be followed.
Due to availability of high amount of competition in the market no business organisation
wants to be in any legal issues. Businesses that follows all the laws enjoys goodwill in the
eyes of general public which helps in surviving for long run (Smith, 2020). Their are
various other laws that business organisations needs to follow are as follows-
Contract Law: A contract is a voluntary, deliberately and legally binding agreement
between two parties to complete an important activity. Organisation while performing business
activities enters into various contracts that brings certain level of certainty for future. As contract
entered by business organisations helps them in performing certain transactions at pre
determined conditions. This helps in securing uncertain future. To enter into a contract which is
legal and how it can be cancelled or brought to an end all this information can be garbed through
contract law. While entering into a contract business organisations needs to know about all the
legal factors that needs to be considered to decision making. To conduct business in more
effective manner knowledge of contract law must be present with business law. For example- a
contract to sell good at a price on which agreed on is done. Then selling price will not be affected
with price fluctuation in the real market.
Company Law: Company is one of the form in which business can be established
legally. Company law guides business organisation from the incorporation till dissolution in
relation to legal requirements. Businesses that are registered as company needs to follow all the
regulations as per company to establishing business legally (De Lucia, 2019). When business is
registered as company each decision much comply company law with business law. Company
laws grants a separate legal entity to business distinct from its owners. Management, funding,
auditing and preparation of final accounts of business will be done as per company law. Any
breach of company law will create legal offence. For example- Appointment of number of
directors in the company must be as per companies act to complete the process of incorporation.
Employment Law: Rules and regulations to manage humane resource working in the
business is prescribed in employment law. Employees are considered important for success of
5

business as efficient and skilled employees brings success to the business. Employees wages,
maximum working hours, resignation rules are specified in the law. Any dispute arises among
business and employees will be resolved by following employees law to take legal decision
(Kopnina and Blewitt, 2018). For example- When employees are asked to double their shift for
working by managers then they will not be legally bound to perform what is asked for as per
employment law.
M2 Difference between legislation, regulations and standards
Legislation Regulations Standards
Legislation is the law which
has been enacted by a
legislature or other governing
body. These are the act of
parliament that are published
by legislature in the process of
formation of law.
A rule of order having the
force of law, prescribed by a
competent authority or any
higher authority relating to the
actions of the authority in
control. Regulations are issues
by various federal government
departments and agencies to
carry out the intent of
legislation.
Standards are the set
guidelines that provides basis
to various rules to bring
uniformity. They help in
making a good comparison
between organisations working
in same industry under same
law (Baudenbacher, 2017).
D1 Evaluation of the legal system and law
Legal system of UK was established over a years ago and it is formed with combination
of various laws. These laws needs to be upgraded on the basis of evolution in the economy. Due
to these changes legal system keeps on modifying to be more effective. In relation to business
law it is seen that requirement of capital has changed to incorporate a business over a period of
time. A new from of business incorporation is introduced named as Limited Liability Company
which is a hybrid of partnership and company (Kuzio, 2014).
6

TASK 3
P4 Explaining major types of business organisations that are formed legally
Business law defines number of forms in which business can be established. Selection of
one form under which business can be established depends on management, requirement of
funds and business objective. Jane, Penny and Marie has established a partnership business after
graduation (Lawrence and Weber, 2014). They wants to expand their business and for this funds
are required. Their are various alternatives available to them to alter their business formation
which are as follows-
Limited Companies: In limited companies liability of members or subscribers of the
company is limited up to the amount invested by them in share capital. Establishing a business as
company will give special status of enjoying separate legal entity in the eyes of law distinct from
its owners. Businesses established as company is managed through professional managers who
are appointed by owners of business with their mutual consent. Ownership is divided into small
unit named as share in which companies total capital is divided into small units and sold in the
market. Person having shares in the company will become shareholder. Limited companies
requires various legal compliances to be followed to bring into existence (Munkholm and
Schjoler, 2018). A huge amount of capital can be generated by selling shares to invest in
business. As funds required by Jane, Penny and Marie is for expansion of business the this form
of business is suggested to them.
Limited Liability Company: Business that possess quality of a company an da
partnership is LLC. These types of establishments are not permissible to establish in each state.
Business enjoys limited liability as company and management of operations are as flexible as
partnership business. Availability of funds to LLC is not as easy assessable as to limited
company and Jane, Penny and Marie want more funds to expand. So, this is not a competent
choice to convert partnership in LLC.
Jane, Penny and Marie are not suggested to form sole proprietorship as they are more
than one person involved in business activities (Di Torella and Masselot, 2020).
P5 & M3 Management and funding of business organisations
Unincorporated business: Business organisations exists because of the existence of their
owners and losses it with the owners existence. This form of businesses are termed as
7

unincorporated businesses. Their is no separation in the liability of business or owner and
personal assets of the owners are used to meet the liability of business. Unincorporated
businesses are sole proprietorship, partnership and family trust.
 Sole proprietorship- Business with single person acting as owner and manager with no
registration requirement is sole proprietorship. This is one of the simplest form of
establishing business with no legal compliances, no legal requirement of investment. All
the operations are managed by owner only and investment in business is limited as all
investment belongs to owner. All the risk and rewards in the business totally that of the
owner.
 Partnership: When two or more individuals operates business activities with the motive to
earn profits then it is termed as partnership. Partnership business is governed by a deed
that specifies all the details regarding capital investment and profit distribution, rate of
interest charged or paid to partners. Management of partnership is done by all the
partners and investment in capital is made in certain ratio as decided by them.
Availability of funds to partnership is more then sole trader business but not much as
resources to individuals are limited to certain extant (Waltman, 2017).
Incorporated Business: Business that are formed with complying all the legal
requirements and possess separate legal entity distinct from its owners are termed as
incorporated businesses. These businesses enjoys benefits of availability of funds and effective
management of operations to earn more profits and attain business objects. Limited companies
and LLC is form of incorporated business.
 Limited companies- Companies limited with shares possess large number of shareholders
so management of business operations in company is done by directors and managers.
Directors in the business is appointed by shareholders with majority. When management
is different from ownership chances of manipulation in financial records gets minimised.
Experienced managers leads to achieve business objectives as planned. Funding of
limited companies is done through issue of shares and loans can be taken from
unregistered financial institutions (Gammeltoft-Hansen and Aalberts, 2019). Jane, Penny
and Marie are advised to transfer partnership business as limited company to get funds
required for business expansion.
8

 Limited Liability Companies- Business registered as LLC is managed through persons
who are authorised for management. Feature of company to manage operations is
available but availability of funds as limited company is not available to LLC as issue of
share capital to public at large is not available (Theodosiou and Katsikea, 2012). Liability
of the owners is limited as company and flexibility is their in managing business
operations. Jane, Penny and Marie is in the requirement of huge fund investment to
expand their business so LLC form of business will be unsuitable for them.
Partnership:
Advantages Disadvantage
 Extra set of hands for business
operations
 Additional knowledge with more
partners
 Reduction of financial on a single
person
 Fewer tax forms
 Division of profits among partners
 Lack of separation of personal and
business assets
 Conflicts of difference in opinion gets
generated (Hadjiarapis, 2019)
 Less independence is available to
individual for decision making
Limited Company:
Advantages Disadvantage
 Limited liability of owners
 Business operations remains continuous
because of separate legal entity
 Available of large amount of funds in
business
 Easy transfer of ownership with
transfer of shares
 Cost of incorporation is high
 Shareholders in the business is entitled
to all information
 Expensive to be listed on a stock
exchange
 Ownership and management differs and
owners lose control over business
operations
Sole proprietorship:
Advantages Disadvantage
9

 Accounting of business operations is
simpler then other forms
 Minimum administration cost
 No requirement to take permission of
other for business decisions
 Incorporation takes minimum
requirement
 Liability of owners is unlimited and
personal property can be use to met
business debt
 Burden of tax liability totally lies on
one person
 Credit rating of one person is law this
reduces chances of getting more funds
 Lack of skill and knowledge to operate
business
Limited Liability Company:
Advantages Disadvantage
 Limited liability of owners
 Choice of taxation
 Flexible ownership rules
 Operational flexibility
 Flexible distribution of profit and loss
 Limited life span
 Difficulty in rising funds then public
companies
 Not traded publicly
 Management structure is unfamiliar to
the third party which leads to conflicts
D2 Review and evaluation of different type of business organisation
Establishment of business needs to be done in a form which is best suitable in terms of
funds and management of operations. A business when established once can change its form
with legal formalities. Businesses that lacks legal formalities and started with law funds and no
legal existence are initiated when operations needs to be performed at small level (Fellman and
Shanahan, 2018). To expand business at national and internation level it show be in incorporate
form with huge funds and good management. Incorporated businesses enjoys feature of
separated legal entity that which existence of business do not hindered with the owners
existence.
10

TASK 4
P6 Legal solutions for resolving business disputes
Case 1: In the present case scenario Champion Ltd. A business organisation took a
decision of shifting its unit from one place to another. This shifting hinders its business and
organisation is not able to pay its debt on time. A dispute among creditors and company arises
due to non payment of debt this can be resolved as-
As per companies law when company is unable to pay its debt of £750 to its creditors.
Together with this 21 days has also been passed to the statutory demand and no payment is made
and no reply is given. This puts company in the situation of compulsory winding up (Malyuga
and Orlova, 2017). This dispute can be resolved through dispute resolution panel through
litigation. For winding legal process will be followed and orders of the court will be received. To
decide the dispute decision of the case Mann v Goldstein [1968], will be considered. That
indicates that even if the partners in business owns money other then share in profits can be
termed a creditors. Any non payment of amount demanded will bring company into compulsory
dissolution (Mann v Goldstein, 1968).
Case 2: Issue in this particular case deals with employment contract. Mr Anderson who
is working with Amber Ltd entered into employment contract of serving a notice period of 12
months before leaving. Organisation should also given time of 12 months to Anderson to remove
from his position. Mr Anderson receives an offer form other organisation and shows his interest
to join new company without serving the required notice period.
Amber Ltd is seeking an injunction as Anderson is not allo0wed to work with other
company without serving the notice period. Receiving an special order of court will leads to
more legal requirements which will become expensive in long run. This problem can be resolved
through arbitration in which a mediator is appointed by both the parties involved. Decision
provided by arbitrator will be followed by both the parties as court orders.
M4 Sources of legal advise and support for dispute resolution
Legal advise to resolve various disputes can be obtained through various laws and cases
that are considered as landmark cases. Disputes arises due lack of knowledge and difference of
opinion. Following the legal path a fair judgement can be made and dispute can be resolved.
Dispute Resolution Panel provides various methods which can be used to resolved issues in the
11

best manner. Generally mediation, arbitration and collaborative law is used to decide the issue in
most suitable manner (Lauri, 2019).
D3 Effectiveness of legal solutions, legal advise
Legal solutions provided under law is developed over the years and they are based on
past year cases. A solution will be considered effective when the parties involved in the issue
received a solution which is best suitable for both. When a legal solution is given by involvement
of court it becomes binding on both the parties (Mjaaland, 2019). Legal solutions are used when
dispute is because of the law and not because of any misunderstanding. To resolve dispute legal
advise is provided by dispute resolution panel.
CONCLUSION
From the above project report, it has been concluded that presence of legal system in an
economy is very important to operate effectively. Legal system is designed with various sources
and comprising of different laws. Business law defines various forms in which business can be
established by considering funds and management requirement. Government of the country plays
import role in law formation form its initial to final stage. Together with business law various
other laws needs to be followed by businesses to avoid any dispute. Disputes when arisis are
resolved with best legal advise.
12

REFERENCES
Books and Journals
De Luca, N., 2021. European company law. Cambridge University Press.
Lynch, P., Cygan, A. and Whitaker, R., 2020. UK Parliamentary Scrutiny of the EU Political and
Legal Space after Brexit.
Schwemer, S. F., 2019. Licensing and access to content in the European Union: regulation
between copyright and competition law (Vol. 49). Cambridge University Press.
Fisch, J. and Solomon, S. D., 2019. Centros, California’s ‘Women on Boards’ Statute and the
scope of regulatory competition. European Business Organization Law Review. 20(3).
pp.493-520.
Kokkinis, A., 2017. Corporate Law and Financial Instability. Routledge.
Epeoglou, M. T., 2017. The Recast European Insolvency Regulation: A Missed Opportunity for
Restructuring Business in Europe. UCLJLJ. 6. p.31.
Broccardo, L., Culasso, F. and Truant, E., 2017. Unlocking value creation using an agritourism
business model. Sustainability. 9(9). p.1618.
Smith, R., 2020. International Human Rights Law. Oxford University Press, USA.
De Lucia, V., 2019. The'ecosystem Approach'in International Environmental Law: Genealogy
and Biopolitics. Routledge.
Baudenbacher, C., 2017. Fundamental Principles of EEA Law. Springer.
Munkholm, N. V. and Schjoler, C. H., 2018. Platform work and the Danish model-legal
perspectives. NJCL, p.116.
Di Torella, E. C. and Masselot, A., 2020. Caring Responsibilities in European Law and Policy:
Who Cares?. Routledge.
Waltman, M., 2017. Appraising the impact of toward a feminist theory of the state:
Consciousness-raising, hierarchy theory, and substantive equality laws. Law &
Ineq.. 35. p.353.
Gammeltoft-Hansen, T. and Aalberts, T., 2019. The Politics of Transnational Law.
Hadjiarapis, C., 2019. Tobacco plain packaging legislation in the context of the rationale of
European trade mark law: public policy, justification, compatibility. The University of
Manchester (United Kingdom).
Fellman, S. and Shanahan, M., 2018. Sectoral influence on competition legislation: evidence
from the cartel registers, 1920–2000. Business History Review. 92(4). pp.633-660.
Malyuga, E. N. and Orlova, S. N., 2017. Linguistic pragmatics of intercultural professional and
business communication. Springer.
Lauri, M., 2019. Mind your own business: Technologies for governing social worker
subjects. European Journal of Social Work. 22(2). pp.338-349.
Mjaaland, M. T. ed., 2019. Formatting Religion: Across Politics, Education, Media, and Law.
Taylor & Francis.
Online
R v S of S Health ex parte Quintavalle. 2003. [Online]. Available through:
<http://www.e-lawresources.co.uk/cases/R-v-S-of-S-for-Health-ex-parte-
Quintavalle.php>
Mann v Goldstein. 1968. [Online]. Available through:
https://swarb.co.uk/mann-v-goldstein-chd-1968/
13

Sources of law. 2015. [Online]. Available through:
<http://consumer.newbeginningsresources.co.uk/legal/the-english-legal-system/sources-
of-english-law/>
14