Business Law Report: Legal Systems and Business Applications

This report provides a comprehensive overview of business law, beginning with an introduction to the legal system and its importance for commercial transactions. It delves into the sources of law, including primary sources like case law and legislation, and secondary sources such as legal encyclopedias and textbooks. The report examines the role of the government in law-making, differentiating between executive, legislative, and judiciary roles, and explains the application of statutory and common law within judicial courts. It illustrates the application of company, employment, and contract law with examples, highlighting their significance for running a business lawfully. Furthermore, the report explores different types of legally formed business organizations, including sole proprietorships, partnerships, and companies, detailing their structures and legal requirements. This report is a valuable resource for understanding the legal frameworks that govern business operations in the UK.

Business Law

Contents
No table of contents entries found.

INTRODUCTION
Business law is that branch of legal system which governs commercial transactions for carrying
the operations in a business organisation. It is useful for running the business smoothly and
lawfully. There are rules which are in addition to the main legal provisions but hold equal
importance. It is applicable on different types of organisation which can be a company,
partnership firm, and many more (Clarkson, Miller and Cross, 2014). In addition to this, fines
and punishments are also given in case of breach of any of the business law provisions. This
report covers explanation of legal system along with sources and role of government followed by
application of statutory and common law in justice courts. Furthermore, different legal formats
of a business and their management together with how they are funded, impact of various
implications of different types of laws and legal solutions for business problems have been also
included.
MAIN BODY
P1. Sources of law
English legal system is based on the one single unwritten constitution which has legal provisions
for the part that is available in written form. It has its own judiciary system divided into civil and
criminal branches. It has been considered as a foundation for developing legal system by
different countries (Miller, 2015). There have been many laws and rules included in this as a part
of amendments. In other terms, it has evolved which has expanded its scope. There are different
types of sources which can be used for understanding the application of statues in English legal
system. Some of these are as follows:
Primary sources: These sources are first hand information in the original form which has
been kept without any interpretation or addition. These have been provided below:
 Case law- This one of the most authentic source which contains judgement passed by the
judges in different cases. These are comprised in a report form which can be used for
removing any doubts from the legal provisions.
 Legislation- Legislative bodies are there which have inducted various kinds of laws for
the portion of the constitution which is available in written form. Statues and rules
governing the acts of people living in UK.
1

Secondary sources: The information from the primary sources interpreted in order to make
the law easy to understand for everyone. These are as follows:
 Legal encyclopaedias- Different kinds of encyclopaedias are there which provide
information of legal terms so that clarity can be gained in order to used them for the
benefit. Halsbury’s law of England and Wales is the preferred legal encyclopaedia
(Gillespie, 2013).
 Publications- These comprises of debate, speeches given by members of parliament.
Many main points are highlighted about the laws to be enacted. Also, there are non
parliamentary publications which contain the reports posted by government agencies.
 Law commission- A commission has been set up by the government of UK to review the
laws which are applicable within the country. They make suggestions and
recommendations for improving the existing legal system. The forward there suggestions
to the interested parties and general public for obtaining their approval.
 Textbooks- These are the books written for the students who are studying in the high
schools. The language used is very easy to understand and already interpreted by
different authors. It is readily available for a person to explore.
P2. Role of government in law making and application of common and statutory law in judicial
courts
Government play a major role in law making by providing different acts and rules for
governing the conduct of individuals as well as organisations. Its role has been divided into three
divisions which have been elaborated below:
Executive role- This role is connected with the activity of reviewing the enforcement and
execution of existing legal provisions within the country. This bench comprises of Queen, Prime
Minister and other cabinet ministers. The work is of administrative nature.
Legislative role- There are two houses in the parliament viz. House of commons and house of
Lords which comes under the role of presenting bills in the parliament for their conversion into
acts. Legislations enacted govern the activities of people living in the country. There are
punishments as well as fines which can be imposed for wrong conduct (Hage, 2017).
Judiciary role- This role is related to the development of various courts in the judiciary
system of UK. Courts entertain cases with a view to pass judgements which can help the parties
in resolving the dispute. Therefore, rest of the members in the government have the role of
2

ensuring that different jurisdictions have sufficient amount of courts for avoiding any delay in
passing of judgement.
This role can be understand effectively with the knowledge of application of common and
statutory law within the judicial courts. A difference between the two has been presented below:
Statutory law- This law is available in written form which is made by the government.
Statues in this law for protecting the citizens as well as ensure that they are able to function in
everyday life. If there is an issue before the court that absolutely cannot be decided by president
or a judge’s decision, the court may turn to statutory law to decide the case. In case of breach, a
person will be punished which is in the proportion to the nature of the crime.
Common law- It is law that developed from new decisions made by the (Kerwin and Furlong,
2018) judges, courts and tribunals. It is also called case law which works on the doctrine of
judicial precedent. According to this doctrine, the preference decided case should be based on the
judgement that have been passed previously. It can be amended by statutory law however that
would be secondary. it is unfair to treat the same facts in a different manner in different
situations ask for this law.
TASK 2
P3. Illustration of company, employment and contract law applications on business along with
examples
Legal system comprises of different sorts of laws which can be in the form of employment,
contract our company. These are significant for running a business by providing lawful element
in the organisation. It is imperative to understand the implications of the above mentioned laws.
There impact on the business has been shown underneath:
Company law- UK has Companies Act, 2006 which is applicable to the companies
incorporating in the country. It has legal provisions which should be followed from the time of
inception till the winding up (Act, 2013). In addition to this, it has punishments and penalties in
case of any breach or contravention. A company cannot be formed without registering itself
under this act with the Companies House. It provides the basis for giving remuneration to
directors, formulation of MOA and AOA, raising of funds etc. For example, the company wants
to appoint a new director which can be made only through passing of resolution in the meeting of
directors by following the set procedure for the same. In case of any breach with this main lead
3

the company and its directors to pay fines. Also, the directors can be punished with imposing the
sentence of imprisonment.
Employment law- This law is designed for protecting the employees and their rights from
exploitation. There are numerous statues such as Equality Act, Employment Rights Act, Work
and Health Condition act etc. So that employees can work in an organisation without any fear.
Also, many cases have been recorded in the past of discrimination which is prevented through all
these laws made in the favour of people working in the organisation. It has been observed that
candidates prefer to work in the entities which value their employees and give them all their
rights without any discrimination. Also, these statue help in in bringing equal opportunities for
every individual so that dispute or conflicts can be reduced to considerable level. For example, if
an employee working in a company has come across a situation where the employer has made
discrimination, then the concerned person can approach employment for seeking justice. This
can affect the brand image as well as employment turnover can be high (Nechaev and Antipina,
2016).
Contract law- Business organisations form contracts for carrying commercial transactions.
Laws have been enacted for governing the contracts and their terms and conditions. There are
essential requirements for creating a valid contract which should be fulfilled in order to seek any
legal action in future. It helps in giving a lawful support to the parties involved in a deal. There is
no individual off for this in UK, and it is observed that most of the contracts are formed for
business purposes for exchanging goods or services between a buyer and seller. Therefore, it is
governed by Sale and Supply of Goods Act, 1954. If any breach in the terms and conditions has
recorded, then the whole contract will be cancelled and no further effect can be given to that
contract. For example, deal has been done between A and B for the exchange of goods for which
we has already paid 50% of the amount. A fail to deliver the goods to B within the time decided
for the same. In such a case, B can courts to get specific action against A (Corwin and Ciampi,
2019).
4

TASK 3
P4. Explore different types of business organisations that are legally formed
Business organisations can be set up in different formats by obtaining legal registration or
support. There are different types of and it is available through which a person can carry
commercial transaction in order to earn profit. The types have been discussed below:
Sole proprietorship- This business type is owned and managed by a single person who is called
sole trader or proprietor. No legal requirement is there to register the business and it is sufficient
that the person himself has been registered. According to the law, there is no separate legal entity
between the owner and his sole proprietorship firm. The trader has individual and sole right on
the profit and loss of the business. Also, members of family or outsider can be appointed to help
the owner with the daily activities (Kesselheim and et. Al., 2012).
Partnership firm- It is a setup made by two or more persons with common objectives and
interest who are ready to start a business in order to make profit. It is managed by partners and
governed through partnership deed which comprises of terms and conditions inserted with the
mutual consent of the members. Profit and losses are shared in the ratio as given in the date or
equally where no ratio has been mentioned. Registration is voluntary in case of a partnership
firm. If all the partner agrees, it can go for registration which can help it in future from seeking
any legal action for breach or contravention. The time for dissolution is mentioned in the deed it
can be e decided the unanimous approval of all the members before the date of dissolution.
Company- It is one of the most preferred business entities which can be seen in huge number all
over the world (Hui, He-Cheng and Min-Fei, 2015). It is an association of members which is a
artificial judicial person having separate legal entity from the members with perpetual succession
and a common seal. It is treated as a person in the eyes of law who can enter into contract, open
bank account, sue etc. Just like a normal human being can do. In UK, a company has to get itself
registered under Companies Act, 2006 before commencing the business activities. MOA and
AOA are the documents which govern the conduct of a company. It can be limited by shares
where the liability of members unlimited up to the extent of unpaid nominal amount on the
shares held by them. Also, it can be limited by guarantee where the liability is limited up to the
amount decided in the MOA is to be contributed.
Limited liability partnership (LLP) - It is the combination of a partnership firm with a
company and has features of both the entities making it suitable for the professionals like
5

company secretaries, advocates, chartered accountants etc. The liability of members is limited
unlike partnership firm.
P5. Funding and management of the above mentioned entities
Sole proprietorship- The business has very limited sources through which funds can be raised
and these are personal investment in the form of retained earnings and bank loan. The owner of
the business is the sole person whom administers all the activities as well as take decisions
beneficial for the business (Fiadjoe, 2013).
Partnership firm- It has different types of sources of raising funds such as bank loan,
capital contribution by members, venture capital, etc. Management is done by all the partners
however, we can mutually decide one person who can act on their behalf. Decisions are taken
unanimously and one single vote against will render the whole suggestion invalid.
Company- It has many sources of obtaining funds like share capital, debenture, deposit,
loans, retained earnings, contribution by members, loan from financial institutions, foreign direct
investment, etc. It appoints directors to act on its behalf and make contracts by representing the
company.
Limited liability partnership- The sources through which funds can be procured are
crowdfunding, loans from financial institutions as well as banks, members contribution. Just like
partnership, all the partners have the responsibility of managing the affairs of the business.
Decision making is also done by all the partners (Blake, Browne and Sime, 2016).
TASK 4
P6. Recommend legal solutions for resolving a range of disputes
Case 1-
In this case, a breach in contract as well as employment law has been noticed. Gordon has
all the rights to receive the forgone on salary and commissions according to the contract
executed between him and the company. Also, it is the basic right of unemployed to receive
salary within the right time. However in this case, has been a loyal employee who has worked
hard and also did not ask the company to pay his salary at the time of crisis going on in UK. But
now that it has revived its business through all the crisis, Gordon has the right to claim his salary
for the period of 2015, 2016 and 2017.
6

He can use negotiation as a legal solution which is outside the court for settling the dispute.
Negotiation is a method in which two parties have direct communication with each other by
sitting at a place in order to discuss the terms and conditions and make adjustments appropriate
to the parties. There is no formation of an agreement. It helps in negotiating the terms with
mutual consent. Gordon has all the rights to receive the foregone salary of past 3 years starting
from 2015 to 2017 (Singer, 2018).
Case 2-
According to the contract law, the service of telecommunication companies start from the
day when the install internet is being used by the other party. In this case, the company, Virgin
Media is at fault because of his negligence in completing the work. The day when internet was
installed, Janet did not use the internet because the engineer could not find the telephone line. It
is a breach of contract which provides that packages are charged from the day the internet is
used. If it is tracked in the record then, Janet has not used internet because of incomplete work.
Therefore, she has all the right to not paid the amount charged for the whole package because the
service was not used. Also the company was careless in contacting the engineer for reporting
weather all the work has been done or not. Furthermore, another engineer was sent after 3 weeks
of installation of internet which clearly prove that no such service has been used by Janet.
In this case, arbitration can prove to be a method suitable for resolving the above issue. This
method of alternative dispute resolution provides that a person is to be appointed with mutual
consent who will be called as arbitrator (Menkel-Meadow, 2015). The role of an arbitrator is to
see the matter, ask the parties to deposit evidence on the basis of which the whole matter will be
sorted out. Arbitrator use has and knowledge for resolving the issue. It is a quick way of
concluding a dispute as well as cost effective.
Case 3-
A creditor has all the rights to receive his payment if a company fails to pay within the
time prescribed for the same purpose. There is a concept of winding up petition which is an order
by the court to make the company to pay to its creditors the amount taken from them. A specified
time has been provided for this purpose and the amount of credit is above £270, then company
becomes liable to pay the creditor.
In case of Blackhorse Limited, the creditors can go for negotiation where the company and all
the creditors can sit it in the meeting room for getting a solution (Sheikh, 2013). It is useful as
7

both the parties will get a chance to put there terms and conditions which can be adjusted or
modified for best suitable solution. Therefore, negotiation can work in an effective way if the
parties appoint one of the persons who can facilitate the communication (Pound, 2018).
CONCLUSION
From the above report it has been concluded that, business law is a concept which provides
various rules and regulations governing commercial transactions and affairs of an entity. It is
imperative for the owners and business organisation to follow legal provisions in order to avoid
any disputes or conflicts in future. It is a part of English legal system and included in civil law
which treats every individual equal. Government has a role to play for making better laws in
order to improve the legal system. Apart from this, there are different types of business
organisation formats which can be obtained for carrying operations. Furthermore, different
dispute resolution solutions are there which can be obtained in case of getting solution out of the
court settlement.
8

REFERENCES
Books & Journals:
Clarkson, K.W., Miller, R.L. and Cross, F.B., 2014. Business Law: Texts and Cases. Nelson
Education.
Miller, R.L., 2015. Business Law Today, Standard: Text & Summarized Cases. Nelson
Education.
Gillespie, A., 2013. The English legal system. Oxford University Press.
Hage, J., 2017. Sources of law. In Introduction to law (pp. 1-20). Springer, Cham.
Kerwin, C.M. and Furlong, S.R., 2018. Rulemaking: How government agencies write law and
make policy. Cq Press.
Pound, R., 2018. The spirit of the common law. Routledge.
Sheikh, S., 2013. A guide to the Companies Act 2006. Routledge-Cavendish.
Act, C., 2013. The Companies Act 2006 (Strategic Report and Directors’ Report) regulations
2013 No. 1970. Retrieved February. 8. p.2016.
Nechaev, A. and Antipina, O., 2016. Analysis of the Impact of Taxation of Business Entities on
the Innovative Development of the Country. European Research Studies. 19(1). p.71.
Corwin, L.D. and Ciampi, A.J., 2019. Law Firm Partnership Agreements. Law Journal Press.
Kesselheim, A.S. and et. Al., 2012. A randomized study of how physicians interpret research
funding disclosures. New England Journal of Medicine. 367(12). pp.1119-1127.
Hui, Z., He-Cheng, W. and Min-Fei, Z., 2015. Partnership management, supply chain
collaboration, and firm innovation performance: an empirical examination. International Journal
of Innovation Science. 7(2). pp.127-138.
Fiadjoe, A., 2013. Alternative dispute resolution: a developing world perspective. Routledge-
Cavendish.
Blake, S.H., Browne, J. and Sime, S., 2016. A practical approach to alternative dispute
resolution. Oxford University Press.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal system.
Routledge.
Menkel-Meadow, C., 2015. Mediation, arbitration, and alternative dispute resolution
(ADR). International Encyclopedia of the Social and Behavioral Sciences, Elsevier Ltd.
9

10