Business Law Report: Legal Systems, Contracts, and Organizations

This report provides a comprehensive overview of business law, examining different legal systems in the UK, including legislation, common law, European Union law, and human rights law. It delves into the government's role in law-making, the impact of employment and contract law on businesses, and the types of organizations and their legal formations. The report also explores the management of organizations, funding sources, and legal resolution methods for disputes. It highlights the importance of equality law, employment law, company law, and contract law in ensuring fair business practices and protecting employees' rights. The report includes a case study illustrating the application of contract and employment law, offering valuable insights into legal frameworks and their practical implications for businesses. The report is a resource for understanding the complexities of business law and its impact on various aspects of business operations.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
Different Types of legal Systems................................................................................................3
Government Roles in Making of The Law.................................................................................4
P 3 Impact of The Employment Law And The Contract on Business........................................5
LO 3.................................................................................................................................................7
P 4 Types of organisation and its legal formation.......................................................................7
P 5 management of organisation and funding sources:...............................................................8
LO 4.................................................................................................................................................9
P 6 Legal resolution for solving the range of disputes:...............................................................9
REFERENCES..............................................................................................................................12

INTRODUCTION
An organization need to have a effective framework to operate the legal activities in it. Business
law is a systematic arrangement of rules and regulations which help the business to provide a
better operations and have an ethical code of conduct in the business environment which will
also help the business to increase the goodwill. Business law is also helpful in managing the
human resource of the business by providing them a proper instructions so that they can be more
effective in the path and achieve the organization's business. Every activity as its different set of
rule which defines its effective working as all the industry have different ethical code of conduct.
The business also have to follow all the factors internally and externally which lies under
business law to gain the efficiency true and fair and increase the profit margin of the company. In
this report there is a brief information about different legal frameworks which any organization
will have in supervision of the governmental authorities. The report will also analyze the positive
and negative impacts of law in the business.
Different Types of legal Systems
The UK government have divided their legal system in to four parts to ensure the safety and
security of the citizens and also ensure to provide the justice to the criminal activities in the
country. (Fici, 2016)The four segments of legal system are civil law, common law, human rights
law, Legislation of UK, and European Union Law which help the government to provide a better
and systematic system for the citizens with equal opportunities and also with equality. UK have
focused on the legal system so that they can increase the efficiency of the country and making it
a safer place for operating any activity of the business which will also help the country to
increase the economy. (Oetzel and Miklian, 2017)
Legislation
Legislation is the accumulation of all the legal framework which acts as the backbone of UK.
Legislation of UK comprises many acts and laws by the government, and they also are amended
in the legislation of the country. (Thomas, 2016) Legislation is the action of the government
which gives them the power to transform the and reform anything which is best for the country
and the legislation have the right to change or remove any laws and acts. The legislation also
appoint the group of officials who can use the powers to save the laws and also maintain the
virtue of the country. UK have house of lords and house of commons which are the minister and

members of parliaments which are elected by the citizens of the country to protect them and also
provide the justice with the help of the laws and acts. The legislation of e country is also
monarchical which means the Queen of the country will take the decisions for the country.
(Luetge, Armbrüster and Müller, 2016)
Common Law
Common laws are the verbal laws and which are nit written in the legislation but are followed
and amended as they are unsaid laws. The common law of UK help the government to ensure
the civil conflicts and misconducts and top them. The common law help UK to make the
country's environment healthy and also ensure the justice system according to the crime or
conflicts done. (Howells, Micklitz and Wilhelmsson, 2016) The laws and acts can only be
changed or demolished by the judge of supreme court or by the legislation. Common laws also
provide a legal safety to the citizens and the business so that no one can be used and their
resources can be exploited without the consent.
European Union Law
European union is the coalition of many countries of the Europe which joined together and made
the laws to ensure the safety of foreign business and international operations of the citizens of the
member countries. The law also helped UK to be part of laws and make it easy for the business
industry to expand their business in the member countries which have the same laws which do no
increase the efforts of the business owners and also increase the profits to support the economy
of UK. The country which wants to join the union can easily join but only if they are willing to
accept the laws of the union. The union is governed by the founder nations of the Europe and all
the member nation's ministers.
European convention of Human rights
The human rights was very important as the rise in the exploitation of the lower and poor citizens
were analyzed and to stop the exploitation the convention was formulated in order to protect the
citizens. The convention also help the citizen to get justice and even compensate for their loses if
the case is justified. (Raz, 2017)
Government Roles in Making of The Law
UK have to design a legal system which will help the country to increase the stimulation the
safety to the citizens. The government are also having the responsibilities to analyze all the

factors which are slowing the economy and increase the efficiency by making or removing the
laws and acts from the legislation.
Role of government in making of law:- in the making of the laws government plays an important
role because it is the primary source that start process of making of the law (Singer, 2018).
Process of law making is starts with proposal of a new law known as bill which is must be
passed by both houses than it goes to the Queen for the royal assent an if Queen gives the Royal
assent than bill is become law or act.
The Bill is firstly introduces in house of common for reading which is a notice that the
bill is proposed and details and agenda of bill (Alzola, 2017). Than it gives time to the MPs to
think on bill and made discussion.
After short time it comes the second reading of bill and divide MPs in small groups
which examine bill in details.
After that it comes third reading and a debate on bill and there is a voting process and if
bill is passed than it shifted to next house (Beatty, Samuelson and Abril, 2018). If both the house
pass bill than it goes to the Queen for Royal assent and bill is become law passed by
government.
Since 1952 the Queen has given the royal assent on 3135 bills which became the law.
Common Law:- common law means that acts which is based on old decision which are taken by
judge on same kind of case are known as the common law. Common laws are implemented on
the basis of previous decisions taken by judge on same kind of the case with consideration of
the current situation. It is a part of the UK judicial system.
Statutory Law:- It means that law which is passed by legislation by the bill process and passed it
from both houses and take the Royal assent of the Queen (Giubboni, 2018). This are acts which
are made for the taking decisions.
P 3 Impact of The Employment Law And The Contract on Business
1. Equality law- The business which are operating in the small and medium level scale and
have the labor intensive nature as the business need to ensure that are adopting the right
strategies and also providing the equal rights and safe environment to the employees and
labor. As the Equality act,2010 helps to safe guard the right of equality of them. There
are many businesses which exploit their employees and labor and also discriminate on the

basis of caste, color, gender which is illegal in this law and the business will be penalized
for discriminating them. (Raz, 2017)
2. Employment Law – the business also need to analyze that the employees of the business
is very essential, and they are treated good. The business need to understand the
requirements and all the standards which will increase the efficiency and provide the
proper growth in the legal nature of the business. The legality of the business also
increases the goodwill of the company and provide a better profit margins. There are
many employment acts and laws to safe guard the rights and provide the better services to
the employees of the business organization. The family and medical act, workers
compensation law, the fair labor standards act, employment opportunity act, occupational
act are some policies and laws by the government ensure the proper job satisfaction of the
employees. (Cox, 2015)
3. Company law- The company law is amended by the government which help the
companies to set a standard and make all the activities running in the company fair and
true and all the activities are going in the company should be of legal nature and in the
notice of Government. This law is made to ensure the safety of the company as the
company is also the separate legal entity and there are certain rights of the company as
well which the directors and the owners have to follow.
4. Contract law- In this the business will develop a consideration with the employees in the
written form. The contract will only be legal when there is a free consent from all the
party which have made a considerations and accepted the proposal. There are different
types of contract, void contacts in which the consent of the person is not free or the minor
is involved in the contract which makes it illegal in nature. Business makes the proposals
to the employees to join the company for the particular period when the employees accept
the proposal that convert into a contract which is signed by the government. (Trevino and
Nelson, 2016)
Case- in the case given that Gordon which is the employee of Orange computers ltd. Stores
which in which the managers of the company made a verbal contract which said that the salary
of Gordon which is due fir 2015 and 2016 will be paid when the business will be make profits
due to the decrease in the sales the business is trying to survive the cut throat competition in the
market. The company came to normal financial position after some time and Gordon is entitled

with the salary of 2017 and the commission for which he sold the products to the customers.
According to the law after the company have increased the profit margins the employees have
the right to seek their due salary and if the company deny the according to the contract law ans
employment law Gordon and other employees can file a case against the company for not
entitlement with their salary and exploiting them for two years. (Backer, 2015)
LO 3
P 4 Types of organisation and its legal formation
Companies can ether be the privet or public organizations. There are a different way of
legal formation of various types of firms (Picciotto, 2017). Such formations with the types of
companies are following below:
Public organizations:
Public company are corporations which are owned by the public and its ownership are
generally transfers to the public through way of shares a security. The stock of a company are
traded on stock exchange in over the market (Samuel, 2016). This companies are held an initial
public offering. Such firms are sold their share through IPO in a counter market and such
shareholders are taking part on the decision-making of the organization and exchanging rights
such as right to vote in the firm and right to information and so on. Such company have there
maximum share in the hand of market shareholder.
Legal formation:
For Legal formation of publicly held companies needs to go with the registration process.
For registration under the there are essential needs of documents to submit in order to register the
firm for amalgamation of the organization (Sharma and Lertnuwat, 2016). Following are the
rules and the list of documents which are required to registration of the public company:
 There should not be less than seven members of the firm who must mentioned in the
Memorandum Of Association.
 The number of member which would sign in Articles of Associations are not less than
seven.
 The address and location of the company which is going to registers and mention must
have noticed.
 Details of directors regarding the roles of them in the organization.
 Director's declaration certificates (Singer, 2018).

 DSC of directors.
 DIN for all the directors.
Private firm:
Private company is the organization which is held by the private possession. Such firm
may have issues the share stock, but they do not trade on public exchanges (Alzola, 2017). Such
forms do not issue their share through IPO. Share of such firm are not more liquid in comparison
to public firms.
Legal formation:
Formation of such companies considers some steps which are discussed below:
 There should be minimum two shareholders and two directors of the firm.
 The address and location of the company which is going to registers and mention must
have noticed (Beatty, Samuelson and Abril, 2018).
 Digital signature certificate for all the directors.
 Director identification number is also required.
 Signed memorandum of association.
 Articles of association.
Partnership firm:
Partnership firm is the arrangement of the business which is held by two or more
individuals in order to gain profit with the business. Partners were share the risk as well as profit
and loss of the firm.
Legal formation:
Generally the partnership firm can be creates with the verbal agreement, but for the risk
of disagreement among the partners there is an written agreement is formed with some
documents (Giubboni, 2018). For legal formation there should be 2 or more individuals are
require. Also mention the ratio of sharing profit and loss, role of each partner, identification
number of owners.
P 5 management of organisation and funding sources:
To managing a business the owner should take the following points as consideration to
enacts the business wisely . Such following points are disc sued below:
Facilitates the growth:

For management of small business it is very essential to maintain the employees and
facilitate them growth to teach them to making their work more effective and keeps them
motivated (Knoke, 2018). The regular and proper communication with the workers may helps
the firm to achieve the goal and objectives.
Cutting in costs:
To a small business it is very important to cutting the cost whenever having a chance of
it. Organization should takes an advantages of taxation policies and they can procure the non
core firms aspects (Law, ed., 2015). It ma increase cost efficiency in the business.
Record tracking:
Owner of business should check the books of accounts. It gives an estimation that
weather the organization is stand in terms of finance and it gives an idea of expenses and income
and overall growth of the business.
Funding sources of business:
Bank loan:
Bank loans are the most old and favored method to fund the firm for carrying out daily
expenses or expansion. Bank can provides the fund in exchange of some securities (Ma and
Marquis, 2016). It is the safe and legal method to generates the fund. Bank charges some interest
rate ion the loans. Banks provides personalize services or customized repayment to the business.
Crowdfunding:
Crowd funding is the Modern way to gather fund for the business. It provides the
platform to share the idea or projects of the business in front of the investors and those who have
interest in such idea can invest in such projects.
Retained earning:
This is the most basic sources of getting fund for the firm (Picciotto, 2017). In this
method the firm makes more and more profits by selling the goods and services on cost more
than its production cost. This find can be used to investing in the new idea or in expansion plans.
LO 4
P 6 Legal resolution for solving the range of disputes:
For the resolving the problem of Alex it can be use the ADR theory. Alternative dispute
resolution theory are denoted the huge rang of problem solving process and techniques. It can be
acts as an agreement for short legislation.

Arbitration:
Arbitration is the process where a parties picks the third person to hear an makes the
decision of the case (Samuel, 2016). It is also called Cadillac justice. Arbitration is requires in
the labour contracts disputes, consumer employment and commercialized issues. It is alternative
legislation solution which is used in traditionally where the parties are having a continues
relations. Person that hire for resolution and judgment is neutral for both side provides an
efficient decision to resolving disputes (ADR Theory? The Conflict Resolution Practice Behind
the Rock-Paper-Scissors Story (Web), 2019).
Mediation:
Mediation facilitates to address issues with ethically and practically (Sharma and
Lertnuwat, 2016). It is the process in which third party can communicates and encourage the
voluntary decision making to both parties. It facilitates re-framing disputes re- directs negative
statements.
Negotiation:
Negotiation is the method which brings an interchange among all the individual parties to
establish a compromise (Singer, 2018). It can be done by making both parties or their legal
representative in front and makes a deal of compromise, after that they were comes to the third
party for the negotiation among both parties.
Recommendation:
It is recommend to Alex that for resolution of their dispute with Mr. Ali, Alex can go
with Arbitration method of ADR theory. In this method both Alex and Mr. Ali hire a third party
who hear all the problem of both Alex and Mr. Ali and makes an effective decision for such
problem to resolution of this dispute. They should adapt this method because this method can not
creates any complications and not takes much time in comparison to court.
CONCLUSION
From the above study it can be concluded the law regarding the business organizations in
the report shows the sources of laws and basic natures of the legal system. Sources of laws are
primary sources which considers the case law, legislation law and secondary law which
considers parliamentary documentations and legal encyclopedia. This report provides the roles of
governments in law making system and shows how the contact and company law can impacts on
the business. There is a brief discussion regarding the different types of organization and its legal

formation. Further this report has been summarized the fund management and the legal solutions
for solving the disputes in the business units.

REFERENCES
Books and journals
Alzola, M., 2017. Character-based business ethics. In The Oxford handbook of virtue.
Backer, L.C., 2015. Moving forward the UN guiding principles for business and human rights:
Between enterprise social norm, state domestic legal orders, and the treaty law that
might bind them all. Fordham Int'l LJ, 38. p.457.
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Cengage Learning.
Cox, J.D., 2015. Corporate Law and the Limits of Private Ordering. Wash. UL Rev., 93, p.257.
Fici, A., 2016. Recognition and legal forms of social enterprise in Europe: a critical analysis
from a comparative law perspective. European Business Law Review. 27(5). pp.639-
667.
Giubboni, S., 2018. Freedom to conduct a business and EU labour law. European Constitutional
Law Review. 14(1), pp.172-190.
Howells, G., Micklitz, H.W. and Wilhelmsson, T., 2016. European fair trading law: The unfair
commercial practices directive. Routledge.
Knoke, D., 2018. Changing organizations: Business networks in the new political economy.
Routledge.
Law, J. ed., 2015. A dictionary of law. OUP Oxford.
Luetge, C., Armbrüster, T. and Müller, J., 2016. Order ethics: Bridging the gap between
contractarianism and business ethics. Journal of Business Ethics. 136(4). pp.687-697.
Ma, J. and Marquis, M., 2016. Business culture in East Asia and implications for competition
law. Tex. Int'l LJ, 51, p.1.
Oetzel, J. and Miklian, J., 2017. Multinational enterprises, risk management, and the business
and economics of peace. Multinational Business Review. 25(4). pp.270-286.
Picciotto, S., 2017. Rights, responsibilities and regulation of international business. In
Globalization and International Investment. (pp. 177-198). Routledge.
Raz, J., 2017. The rule of law and its virtue. In The Rule of Law and the Separation of
Powers (pp. 77-94). Routledge.
Raz, J., 2017. The rule of law and its virtue. In The Rule of Law and the Separation of Powers.
(pp. 77-94). Routledge.
Samuel, G., 2016. Epistemology and method in law. Routledge.
Sharma, S. and Lertnuwat, N., 2016. The financial crowdfunding with diverse business models.
Journal of Asian and African Social Science and Humanities (ISSN 2413-2748).
2(2), pp.74-89.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal
system. Routledge.
Thomas, K., 2016. Regulating style: intellectual property law and the business of fashion in
Guatemala. Univ of California Press.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
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