Business Law Report: Legal Sources, Business Impact, and ADR

This report delves into the multifaceted realm of business law, providing a comprehensive analysis of its core components and practical implications. Beginning with an introduction to the subject, the report explores the various legal sources within the United Kingdom, including common law, statutes, and European law, elucidating their significance and function. The main body of the report further examines the role of government in law-making, and how the justice courts apply both statute and common law. The report also provides specific examples to demonstrate how company, employment, and contract law affect business operations, highlighting the importance of legal compliance. Finally, the report recommends legal options for settling a variety of issues, providing examples of how a side may get legal counsel and assistance, particularly focusing on alternative dispute resolution methods such as arbitration, conciliation, negotiation, and mediation. The conclusion summarizes the key findings, emphasizing the importance of understanding business law for successful business operations.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Describe the various legal sources...............................................................................................3
Explain the function of government in law making and how the justice courts apply statute and
common law.................................................................................................................................4
Using specific examples demonstrate how company, employment, and contract law may affect
business........................................................................................................................................5
Recommend legal options for settling a variety of issues, providing examples to show how a
side may get legal counsel and assistance...................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is a vast subject of law that, in a nutshell, governs the formation and operation
of businesses. They lay forth the groundwork for the company's key regulations. This field of
law also incorporates a variety of legal disciplines to address difficulties that occur when current
firms interact with other businesses, the general public, and the governmental (Schwartz, 2019).
Contract law, employment law, company law are just a few of the important topics that lie under
the umbrella of business law. The purpose of this study is to learn about the legal system in the
United Kingdom as well as other important laws. This also aids in the explanation of the
different legal conflict resolution alternatives accessible to corporations in addition to the court
system.
MAIN BODY
Describe the various legal sources.
The following are the primary legal sources in the United Kingdom:
 Common Law: law enacted as a result of previous judicial decisions (Judicial precedent).
The word "common law" have different meaning especially when it is considered under
English law. To begin with, it refers to such a body of law that is created by judges an
ancient period or in the king's courts, as opposed to legal principles drawn from
judgements made by judges in equity courts. Second, common law refers to laws created
by judges rather than laws enacted through statutes or written legislation. Finally, the
word "common law" refers to a situation in which two opposing parties submit their
evidence to a neutral judge or jury, who then decides which case they prefer.
 Statutes: The United Kingdom's Parliament passed legislation. This is also a significant
source of legislation in the United Kingdom. A statute is a piece of law enacted by
Parliament. The following are the different types of legislation:
o Public Acts: they are the laws that impact the entire public.
o Private Acts - legislation that affects a single person or group of people.
o Delegated legislation - the Parliament of the nation adopts the parent act or
legislation or statute, but other authorities are given the authority to specify the
legislation.

 European Law: In 1973, the United Kingdom joined the European Union, and Section 2
of the act of 1972 of the European Communities made EU law, a part of UK domestic
law (Weil, 2017). Countries who are members to EU have a legal obligation to both take
steps to guarantee conformity with EU legislation and restrict from taking such steps that
would obstruct the implementation and also the effectiveness of the laws of the EU. Laws
meant to allow most products, services, money, and people to travel freely among EU
member countries and states are at the heart of the European Union. Regulations and
directives are the two most frequent kinds of EU legislation.
Explain the function of government in law making and how the justice courts apply statute and
common law.
Function of government in law making
It is the government's responsibility to present plans for new legislation. Emergency
situations, such as the danger of terrorism, government pressure to update existing laws, and
court case law, can all influence to the necessity for new legislation. Except for European
legislation as well as international treaties, all laws are enacted by parliament (Croce, Ughetto
and Cowling, 2020). The House of Commons, the House of Lords, and the Monarch make up
Parliament. Surprisingly, no Parliament can pass legislation that prevents a future Parliament
from altering the law, and an Act of Parliament's legitimacy cannot be questioned. The
Parliament has the authority to refuse to utilize an Act that is in violation of European law.
The judiciary's application of statutory and common law
Judicial judgements are significant because they fill in the gaps where statute law does
not exist and develop a deeper understanding of statute law. Because Parliament is unable to
specify every possibility or define and explain every phrase in legislation, the court is left to fill
in the blanks.
 Statutory interpretation: The judiciary also plays an essential role in statutory
interpretation. While a statute's meaning should be plain and explicit, that isn't always the
case. Many instances end up in court because of a disagreement about the definition of a
term in a legislation. The literal rule, the golden rule, and the mischief rule have all been
created by the judiciary to aid in the interpretation of legislation.
o Literal rule: Even if the result is unfavourable, words must be given their regular
meaning.

o Golden rule: The legislation should be read in such a way that it does not
contradict itself.
o Mischief rule: This rule imposes a duty upon the court to analyze the law which
is in force prior to the enactment of an act so as to establish what exactly the gap
is or harm the enactment was aimed to resolve.
 Common Law: Whenever any of the judge of the court hear cases, they always look to
discover if a comparable issue which is in question has been heard already in a court
(Rodriguez-Garavito, 2017). If in any of the prior case, the precedent was established by
a court which is having an equal or higher authority than that of the one who is currently
working upon the similar type of a case in a courtroom, the judge in the new case
presented before them should apply the rule of law which was established in the previous
case so as to follow the rule of precedent. If the precedent comes from a lower court, the
judge in the current case might choose not adopt it as it’s his discretionary power, but he
or she will have to definitely examine the facts of the case accordingly so as to come to
true conclusion.
Using specific examples demonstrate how company, employment, and contract law may affect
business.
Contract Law's Impact on Business
A contract is a legally binding agreement that takes place between two or more persons
or companies. Contracts are a standard element of nearly every commercial transaction.
Contracts are made virtually every day by businesses. A contract is formed when one party
makes an offer to another. If the other party accepts the offer, both parties must exchange
consideration in order for the contract to be legally enforceable (Busco and Quattrone, 2018).
Businesses must guarantee that the contracts they sign are legally binding and enforceable. There
are five contract components that must be proven in order to show the existence of a legal
contract.
Company law's impact on business
The branch of law that deals with corporations and other commercial organizations is
known as company law. The Companies Act of 2006 is the primary source of company law. The
Companies Act of 2006 governs corporations created under it. According to Section 1 of the
legislation, any two or more people who are legally linked for a lawful purpose can create an

incorporated business both with and without limited liability. It is also very much important to
understand the legislation that governs a business in order to run it properly and prevent legal
problems. This legislation is crucial for businesses since it outlines how a company should be
created and what legal responsibilities they must meet. It also covers the directors'
responsibilities, the company's obligations, potential difficulties and remedies, and much more.
The impact of employment laws on businesses
Employment is a type of a legally binding agreement that exist between two people, one of
whom is the employer i.e. who hires in an organisation and the other the employee i.e. to whom
the employer hires in an organisation. A corporation, a for-profit or non-profit entity, a
cooperative, or another entity might be the owner. Employers should have been informed of
employment law in order to avoid facing legal action as a consequence of their ignorance or lack
of knowledge (Dauvergne, 2018). Different rules and regulations govern the employment status
of both regular and contract employees of a company. Employment laws protect both the
employer's right to profit and the employee's right to remuneration. Employment regulations are
unquestionably important for a functioning economy.
Recommend legal options for settling a variety of issues, providing examples to show how a side
may get legal counsel and assistance.
ADR (Alternative Dispute Resolution) is a way of resolving conflicts outside of the courts.
Outside of the courtroom, the technique aids in the efficient resolution of disputes. The approach
is more discreet than previous court appearances and requires less time. The most common forms
of ADR include arbitration, conciliation, negotiation, and mediation.
Arbitration is a fair and reasonable means of settling conflicts between persons. The
approach is easier and more successful in settling conflicts and resolving disputes, as in the case
scenario. It's viewed as a legally enforceable and contractually binding alternative to going to
court. The second approach is conciliation, in which a third party assists in reaching a fair and
unbiased agreement. Issues are isolated and remedial techniques are addressed with the help of a
neutral individual. Mediation is a method of resolving disagreements between parties in a
peaceful manner (Arleo, 2019). The technique stresses the parties' involvement in the decision-
making process. Negotiation On the other hand, is a fundamental ADR approach in which the
parties attempt to resolve their differences through a non-prejudice agreement with the help of
legal experts.

With mediation, there is a neutral third party that helps in encouraging the parties that are
involved to consider all of their commercial interests in existence rather than their legal rights,
with the goal of reaching an agreement that benefits all parties. If the discussions are successful
and all of the parties to the dispute agree to follow the conclusion, the agreement becomes
legally binding when they sign it. If talks fail, or fail only partially, the parties can still pursue the
remaining problems through arbitration or litigation if they so want. All parties participating in
arbitration are obligated by the arbitrator's or judge's judgment after they have reviewed the
submissions and evidence. Alternative dispute resolution can help to speed up the settlement
process, saving money, time, and stress compared to going to court (Lobel, 2017). Furthermore,
the parties make the choices and are not required to delegate authority to a court or arbitrator.
CONCLUSION
The report's conclusion is that an individual or a group of individuals may create a wide
range of organizations. It is also determined that the legal system of the United Kingdom has a
variety of legal sources. These aid the judicial system in issuing correct judgements and orders to
the persons or parties involved in the case. Every structure is distinct from the others, with its
own set of advantages and disadvantages. The finances and resources available to the owner
define the type of company they plan to build. There may be a plethora of issues and concerns
when it comes to business operations. Arbitration, mediation, and conciliation are examples of
alternative dispute resolution methods that may be used to address conflicts without the
participation of a court and in a shorter length of time.

REFERENCES
Books and Journals