Business Law Report: Sources of Law, Liability, and IOM Analysis

This report provides a comprehensive overview of business law, beginning with an introduction to various sources of law, including common law, equity, statute law, case laws, and legislation. It then delves into the nature and management of businesses, highlighting the importance of planning, organizing, leading, and controlling. The report explores concepts of business liability, specifically focusing on negligence and its consequences, such as awards and damages. It also examines vicarious liability of employers, emphasizing their responsibilities related to employee actions. Furthermore, the report addresses individual employment rights, as per the Employment Rights Act. Finally, it offers an IOM solution for a business owner, recommending the transition from a sole trader to a general partnership to facilitate business expansion, considering the benefits of shared responsibilities and resources. The report concludes with a summary of the key findings and recommendations.

BUSINESS
LAW

Table of Contents
INTRODUCTION :..............................................................................................................................3
SOURCES OF LAW :..........................................................................................................................3
NATURE AND MANAGEMENT OF THE BUSINESS :..................................................................4
COCEPTS OF BUSINESS LIABILITY IN NEGLIGENCE : ...........................................................4
VICARIOUS LIABILITY OF THE EMPLOYER :............................................................................5
INDIVIDUAL EMPLOYEMENT RIGHTS :......................................................................................5
IOM SOLUTION :...............................................................................................................................6
RECOMMENDATION FOR IOM SOLUTION :...............................................................................7
CONCLUSION :..................................................................................................................................7
REFERENCES :...................................................................................................................................8

INTRODUCTION :
There are a lot of concept which would get discussed in this report on the first the main 5 sources of
law will be elaborated with the nature and management of the business which creates the value for
the business for growing and evaluating. There will concepts in this report regarding the business
liability in negligence to have the effective results in the business and outcome of the negligence
will come in the form of awards and damages along with that there will be vicarious liability of the
employer of which he should be aware about because of the rights of the employee as per the
employment rights act containing the individual employment right and lastly there will a solution
for sam for choosing the appropriate form of business for his business which now running as a sole
trader(Williams,2022).
SOURCES OF LAW :
There are various sources of law which demonstrate and plays a vital role in helping to interpret the
law in a different situations which has been divided and elaborated in 5 sources and that has been
mentioned below :
 COMMON LAW : The regulations which has been given by the lawgivers with the
shared rules in the whole country having the similar customs and traditions , interpreted
by the courts. Although it can get amended through government of the country by the
parliament because there is no written act of the parliament in the whole country.
 EQUITY : The concept of the principles and relaxation recognised by the Lord
Chancellor have the bases on the natural justice. The equity of the precedent views with
a reasonable situations in the past with the similar cases.
 STATUTE LAW : The legislation where the bill has been passed and drafted by the
ministers of parliament , on a different part of delegated legislation it has been passed by
the advice of the Majesty of privy council(Anthony,2018).
 CASE LAWS : The decisions which have already been made by the court helps the
judges to implement that judgement on the case having the similar circumstances which
have been already decided by the courts. In UK it is the primary source of law as UK

laws has various feature which is the doctrine of judicial precedents through which they
implement the previous decision of the court which is always binding on all of the courts
subordinate to them only on a situation of a similar case.
 LEGISLATION : UK does not have a single and written constitution and it has been
demonstrated as partly written and whole uncodified where the most important part has
been written down and most of it has been passed by the legislation which has been
applied in all over UK. Making a new law or implementing a change in the law has to
go through a procedure of the bills which has to get passed by both of the houses of the
parliament for it to become a law(Keeling,2018).
NATURE AND MANAGEMENT OF THE BUSINESS :
Business has always been one of the primary source which do effect the social and
economical value of everything in the country as it is not disinterested or neutral because of that it
always carried out the parties with the focused aim. Business is everywhere and it has it roots in
everything that has been running in the country from the legal framework to the norms of culture.
There are various corporate and non corporate business. The corporate business is a single entity
which makes the contract of the business owners for not be liable for any kind of costs which will
be taking place in the business transaction. On the other situation non corporate business has to be a
person where the owner of he business is responsible for every cost in the business and they could
be sued personally.
The 4 impactful management of the business is planning , organising , leading and controlling
which helps in the evaluation of the business with great profits.
COCEPTS OF BUSINESS LIABILITY IN NEGLIGENCE :
There are many liabilities in the business and those relationships of the business involve
mass contracts which includes leases , buying or having the contract for professional services etc.
The failure of performing the contract can result in the breach of contract and the outcome of that
breach can takes place in the negligence in the form of awards and damages which have been
caused due to the negligence in the business which will the only factor in the contract for having the
failure of the contract by the negligence(Polinsky,2018).

VICARIOUS LIABILITY OF THE EMPLOYER :
The liability which oftenly takes places between the employee and the employer which is
liability of the defendant as per the action of the another person and the relationship between the
disputed parties is the employment and it is named as the strict liability because the defendant does
not required to be an wrongdoer as it implements the strict liability on the employer and they could
get liable for the wrongdoing which has committed on the time when the employee is in charge of
the duties.
Based on the doctrine of the objectives of the common law elaborates the legal responsibility of one
party for others wrongful actions. Employer vicarious liability comes forward when the employer
has held liable because of the actions of the employee and that action would always get treated as it
has been committed by the employer himself as in result he would be liable for the action of the
employee(Harris,2021).
There are 2 features which explains the close connection test between the employee and the
employer :
SUFFICIENT CONNECTION : It reflects the relation between the position of the employee and
the connection seems to be enough for the employer to be liable in the vicarious liability and there
is not an single doubt about the relationship or the connection between the both employer and the
employee.
NATURE : The role and responsibilities reflect the nature of the employee that he has for the
employer which reveals the relationship between the two which includes the actions the employee
has been doing for his employer disclose the relationship between the employee and the employer
for the vicarious liability(Lewis,2019).
INDIVIDUAL EMPLOYEMENT RIGHTS :
As per the Employment Right Act every employee has the right for having the national
minimum wage as the rules and regulations of the government which protects the employee from
having unlawful deduction of the wages with that they have the right to get the minimum level of
paid holiday having the limitation of working that should not be more than 48 hours per week along

with that they have the right of having the protection from the unlawful discrimination at the place
of work and not getting treated as a less favourable employee if they are the employees who are
having a part time job(JohnstoneDobbins,2021).
IOM SOLUTION :
Sam runs a business of selling the electric parts for about 8 years and he has been working
as sole trader. Since 2 years his business have started growing as per the demands of the product
and the need of the employees. Currently sam has decided to expand his business but he is not clear
about the exact ownership of business that he should be choosing for the IOM solutions and there
are few options which are available to sam for expanding his business and every option will get
elaborated according to which sam would get the appropriate business entity(Mikalonienė,2020).
 GENERAL PARTNERSHIP : This partnership requires two or more than two persons to
form na general partnership with a agreement. The group of individual or two owners of the
business share the roles and responsibilities towards the business and along with that they a;;
share the profit and loss together on an equal amount and the partners are required to share
the financial risk , profits and debts of the business as well. It needs to maintain the joint
liability due to the agreement they are into or they get a unlimited personal liability along
with that they get difference experience because of which they will get various ideas to the
table as per their roles in the business which will enhance the profits and he productivity in
the business.
 LLP ( LIMITED LIABILITY PARTNERSHIP ) : As compared to the general partnership
this partnership has a limited liabilities for the partners because of the limit in the amount of
money that could get spent by the partners from the business of the company although they
do have a collective and joint liabilities. The partnership should be in corporation with the
government rules and regulations and has to get registered in the registrar office and in the
companies house for forming up the limited liability partnership(OmarFraser,2020).
 PLC ( PRIVATE LIMITED COMPANY ) : The partnership of the private limited
company has been governed by the companies act through which it gets the right and this
partnership is also knows as limited liability company and the formation of the private
limited company is very easy to understand the formation of the company as per the
regulations and dissolution by the government. These companies has been owned by the
shareholders of the company and it do have it's own classifiable corporate individuality.

RECOMMENDATION FOR IOM SOLUTION :
The decisive recommendation for sam for the IOM solution is changing from sole trader
to the General Partnership as Sam has been doing his Individual Owner Compensation in a
Hybrid Limited Liability Entity in a Comparative Context business form past 8 years and his
business organization is spreading and growing out since 2 years. For having a befitting equality
in the business he should opt for the general partnership as it will convey some other associate to
business and it will be effectual for intensify the business on a larger level. Sam has beenhaving
the thought process to enlarge his business and this business partnership is best for his business
as there will be someone with whom he will be sharing his roles and responsibilities in the
business which will be accommodating for the evaluation of the profits of the business and
evaluate the productiveness as well. The time administration and having the sole duty of the
business might be getting agitated for sam and going for other 2 alternatives rather than general
partnership which Limited Liability Partnership and Private limited Company might get
expensive for the initially expanding business and there are a lot of rules and regulations by the
government which could get in way of the business as completing the formalities for having
these partnerships as there are compound set of convention in forming up the Limited liability
partnership (LLP) or Private limited company (PLC). Therefore , the best foremost option for
sam is to have the general partnership for his business through which he would be able to scale
his business and without risking everything on the stake of the business(Ghadas el. at.,2018).
CONCLUSION :
As per this report it has been concluded that the there are 5 different types of sources of
law and the nature and management of the business is one of the things which is primarily
important for the business. There are vicarious liabilities of the employer of which he should
have the knowledge about as it is for the protection of the employees as per the employment
rights act. While on the other hand sam is having a great sole trader business IOM solutions and
his business is expanding and wanted to have a suggestion over choosing the most appropriate
form of business and after looking forward and going through the informations the best solution
for him is to switch from the sole traders to the general partnership which will benefit his
business and create the profits for his IOM solutions and that would enhance his business on a
larger scale.

REFERENCES :
BOOKS AND JOURNAL :
Williams, M., 2022. Rule of Law Without a Constitution in the UK. In Judges and the Language
of Law (pp. 141-188). Palgrave Macmillan, Cham.
Anthony, G., 2018. Brexit and the common law constitution. European Public Law, 24(4).
Keeling, D., 2018. Management in government. Routledge.
Polinsky, A.M., 2018. Strict liability vs. negligence in a market setting. In Economics and
Liability for Environmental Problems (pp. 115-119). Routledge.
Harris, D., 2021. The Rival Rationales of Vicarious Liability. Fla. St. U. Bus. Rev., 20, p.49.
Lewis, K., 2019. Vicarious liability. BDJ In Practice, 32(4), pp.16-17.
Johnstone, S. and Dobbins, T., 2021. Employment relations in the United
Kingdom. International and comparative employment relations: Global crises and
institutional responses, pp.29-55.
Mikalonienė, L., 2020. Individual Owner Compensation in a Hybrid Limited Liability Entity in a
Comparative Context: LLC (the USA), LLP (the UK) and the Small Partnership
(Lithuania). European Business Organization Law Review, 21(4), pp.915-936.
Omar, O. and Fraser, P., 2020. Small and medium-sized enterprise retailing in the UK.
In Entrepreneurship Marketing (pp. 202-221). Routledge.
Abd Ghadas¹, Z.A. and Radzi, M.S.N.M., 2018. Limited Liability Partnership (LLP); the
Alternative Corporate Entity for Islamic Businesses. PROCEEDINGS–ICLG 2018,
p.481.