Business Law: Analysis of Legal Sources, Business Structures & Impacts

This report provides a comprehensive overview of business law within the English legal system. It examines various sources of law, including customs, acts of parliament, case laws, European law, and treaties, while also detailing the role of government and the law commission in law-making. The report further explores the application of statutory and common law in justice courts and assesses the effectiveness of legal systems in managing disputes and securing parties' rights. Different types of business structures, such as sole proprietorships, partnerships, limited companies, co-operative businesses, joint ventures, and franchises, are identified and compared. The differences between legislation, regulation, and standards are clarified, and the potential impact of company, employment, and contract law on businesses is discussed, referencing the Pimlico Plumber V Mr. Smith case. The report concludes by emphasizing the importance of understanding these legal frameworks for effective business management and compliance.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Different sources of law..............................................................................................................3
Role of government in law making.............................................................................................4
Applying laws in the justice courts.............................................................................................4
Effectiveness of legal systems....................................................................................................4
TASK 2............................................................................................................................................5
Different types of business:.........................................................................................................5
Difference among legislation, Regulation and Standards...........................................................6
Company, employment and contract law had potential impact upon business...........................6
TASK 3............................................................................................................................................7
A)................................................................................................................................................7
B).................................................................................................................................................8
C).................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law refer to such laws which are complied for business in respect of dealing in
accurate activities such as entering into any contract with another party. It also carries the matters
relating to entering into sale deed in context of buying and selling of goods or services or also
punish guilty in case of breach committed (Armour and et.al., 2018). In UK, company law
regulated and formed under the Companies act, 2006 in which they guide business to formed and
run business in effective way. Present report is based upon reflecting the overview of the
judgement given by Archie Richie and Lawson Solicitors under various condition and also
provide effective solution to the parties regarding resolving their disputes by taking corrective
action.
This report will cover the matters relating to examining the different sources of law under
the English legal systems. It also includes the procedure of making the laws and also its reaction
on applying the laws to provide justice to parties. It further identifies the various forms of
business and also its effectiveness by imposing legislation, standards and regulation upon
business.
TASK 1
BOOK-LET
Different sources of law
In English legal systems, it carries
various sources which are interpreted as:
Customs: It refers to such laws which are
running from the ancient times. Usually, laws
are mainly approved by the queen and thus, it
is applied upon the persons, group or
companies to work according to the set norms.
It is customized depending upon the situation
arises in the court (Bayern and et.al., 2017).
Case laws: It is also known as the common
law in which the judges refer to the decision
of the previous cases and then accordingly the
judgement is given. By applying the common
law in providing decision to parties, it reflects
the accurate decision which helps parties to
get right decisions.
Act of parliament/Legislation: It is also
known as statutory law in which the
judgement is to be given on the bases of
written laws mentioned in the constitution
(Davies, 2020). In such aspects, written laws
are amended due to changes in time and thus
the right of the person are protected in better
way. They established various laws fro the
company to work under the set directions such

as Equality act, 2010, Health and safety act,
1974, partnership act, 1890 and also the main
important is the Companies act, 1980.
European law: This law is mainly imposed in
respect of securing the right and interest of the
UK citizen. It is the duty of the public
authority to verify the changes which are
attaining in country, so that they can use the
law making procedure to amend the exiting
laws in country (Beale and et.al., 2019).
Treaties: This mainly refers to the written
agreement which is made between the
countries regarding helping each other when
they both needed to resolve the matters which
arise in countries.
Role of government in law making
Due to changes in time, it is necessary
that laws are amended on timely bases and
thus it is the duty of the public authority to
identify the changes which are to be made in
country (Briggs, 2019). They draft a bill
which is to be started in either two houses
such as house of lords or house of common.
After arriving the bill in the house, it is to be
read and further discussion is conducted in
chamber. It than further passes on for the
second reading and after carrying the debate, it
sends to the committee stage where the
stability of the bill is determined through
voting. It sends to the report stage, after the
committee accepts the bill. The third reading
is conducted and changes are made and then
finally the bill is sent to the monarch. After
her signature, the bill is enacted in the country.
Role of law commission:
The role of law commission is to reinforce the
laws which results in facing confusion to
implement such laws or revising the version of
the existing laws. For e.g. in case of smart
motorways, the laws of the commission are
imposed in respect of wearing the stipulated
equipments before driving the smart
motorways.
Applying laws in the justice courts
Statutory law: By applying the statutory law in
the court, it results in providing justice to the
person through referring the written laws in
the constitution. It helps parties to get accurate
decision and also the laws are amended due to
changes in time (Bull, 2018). In the case of
Lee v Lee air farming 1960, the decision to
parties are given on the bases of referring
written laws mentioned in constitution (LEE V
LEE’S AIR FARMING LIMITED: PC 11 OCT
1960, 2020).
Common law: In this, the judgement is to be
given by referring the previous cases and then
accordingly the decision is given to parties
(Chaffey, Hemphill and Edmundson-Bird,
2019). In the case of Indusstry v Bottrill 1999,
the judgement to parties are given through
referring the decision of previous cases

(SECRETARY OF STATE FOR TRADE AND
INDUSTRY V PETER BOTTRILL: CA 12 FEB
1999, 2017).
Structure and hierarchy of court in UK
Effectiveness of legal systems
By applying the legal system in
country resulting in managing the disputes in
better way and also secure the right of the
parties through undertaking any activities in
better way. In context of well functioning
legal system, helps parties to secure their
interest and take strict action in case of facing
any infringement activities.
TASK 2
Different types of business:
James and Jordan had various option to choose the business as:
 Sole proprietorship business: In this business, the individual person is liable to run the
business and in case of spouse, they both can be the owner of the company. This can be
legally formed when they start dealing in selling or buying goods or services. It is not
necessary for the sale trader business to register their business under the companies
house. This business is managed by the owner itself and thus manage to borrow the funds
from the friends and family (Dorresteijn and et.al., 2016). The advantages of choosing
this business is that this business is easy to start and the owner of the company enjoy the
profits which they attained during dealing in any activity. The disadvantages of choosing
this business is that the person individual had to handle the risk as the person is not
expertises in every department and thus had to manage the work individually.
 Partnership business: This business is formed when two or more person agreed to share
some objectives in business, they enter into the partnership deed in which all the partner
are agreed with all the terms and condition mentioned in the contract. The partnership
business is legally formed when the partner registers the business under the partnership

Act,1890 (Giannakis and et.al., 2018). This business is managed by the partners itself and
in respect of funding, they bring equal amount of capital to be invests in company. They
can also borrow loan from banks in respect of undertaking the activities at larger way.
The advantages of choosing this business is that profits in the business is to be brought by
the partner itself and the business not had to pay any taxes. Partner are liable to pay taxes
from their own personal income. The disadvantage of partnership business is that in case
of death of any partner, the partnership firm will be dissolved. If the negligences of any
partner is committed than the losses is to be suffered by the remaining partners.
 Limited company: It refers to such company which is limited by shares or guarantee. In
this, the liability of members are limited to the amount of share held by them. Limited
company are legally formed when they are registered under the companies house and
then carrying the business for longer term growth. It is managed by the owner and
funding are raised through issuing share to the public in respect of getting high
investment (Gill and et.al., 2017). They can also borrow loan from banks regarding
carrying the strong reputation in market.
 Co operative business: This business is formed by the members who are dealing in
providing services to the customer. They mainly undertaken new business or modified
the existing business to gain more attraction of employees.
 Joint venture business: it is formed when two or more person bring the common
objectives and then execute the business to gain long term advantages.
 Franchise: It is mainly undertaken by giving right to other person to use the company
name and logo to enjoy the brand image by selling its products or services.
James and Jordan prefer the partnership business as by choosing this business it result in
gaining lot of advantages and also they can share losses with each other if the business is not
working in the set directions.
Difference between incorporated and unincorporated business:
Factors Incorporated unincorporated
Nature The business is separate legal
entity
Thy not carry any such right,
as business itself had to suffer
risk.

Taxes They carry the less tax rate Individual personally are liable
to pay taxes.
Registration It is compulsory to register the
business under the UK
companies house.
Not such registration is
compulsory.
Difference among legislation, Regulation and Standards
In context of examining the impact upon the business, the legislation refers to the laws
which are mainly designed by the parliament regarding managing the business. In terms of
regulation, it is stated that it carries various rules and regulation which helps business to work in
set directions (Grail and et.al., 2019). The impact of standards in business is related to setting the
specific objectives in business and motivates employees to attain such objectives within the set
time period.
Company, employment and contract law had potential impact upon business
Company law, 2006 refers to such laws which is specially designed to manage the
relationship between the company and its shareholder (Grimshaw and et.al., 2017). The impact
upon business is that it helps in monitoring the right and duties of directors to take right decision
to secure company from any illegal activity.
Employment and labour law refer to such laws which is mainly imposed to build the
strong relationship between the employee and employer (Hannigan, 2018). The impact upon
business is that, it simplified the duty of the owner to undertake duty of care for employees, if
they are working at hazardous places.
Contract law are such laws which mainly secure the right of the parties if they are
entering into any agreement (Hedley, 2017). Contract is formed when the parties fulfil the
essential elements of the contract such as offer, acceptance, consideration, mutual consent,
capacity of the parties to enter into the agreement.
The impact of all three laws are arises in the case of Pimlico Plumber V Mr. Smith Case,
In this case the Smith is the self-employed but working with the Pimlico plumber as the
employees by taking certain action which is imposed on employee at work place. Thus, in such
manner, they both enter into the contract regarding attaining the work (Ndzi, 2017). As after few

years, Smith suffered with serious health diseases which results in causing half body paralysed.
Smith demand from the company regarding getting relief from the working hours but in respect
of reducing the work hours, plumber company remove Mr. Smith from job. Smith files the suit
against the company in respect of not removing him on such grounds and thus the judgement is
raised in favour of the Mr. Smith (Pimlico Plumbers Ltd & Mullins v Smith [2018] UKSC 29,
2019).
TASK 3
A)
Issue:
This case reflects the matters of the deal which is finalized under the terms of contract
and also it is valid as it fulfils all the essential elements which is mentioned under the contract. In
this case, the deal is made between Maxwell and Angelica regarding selling the painting for the
price of £500. In respect of entering into the contract, it is necessary that their must be some
consideration in which the deal is finalized. Thus, in such aspects Angelica made the payment of
10% of the total amount to fix the rights of undertaking the painting. The contract is made on the
condition that remaining amount will be paid once the closure of exhibition is undertaken.
Before the exhibition closed, Angelica discovers that Maxwell had negotiated the painting with
some other person on the £900.
Rules:
Under the contract act, it is legal agreement which is bound upon the parties to follow all
the terms and condition mentioned under the contract. To enter into the contract, parties must
firstly offer some valuable things to another party and is such party accepts such offer, in return
of exchanging the promise to follow all the terms in right manner (Phang, 2018). Contract is
formed when the parties mutually agree on same things and also competent to handle the
contract in better perspective. The contract is said to be null and void if they are made under the
agreement of committing breach to another party or not performing the contract with the said
elements required to form the contract.
Remedies:
In respect of facing breach in any of the terms, parties are liable to carry two major
remedies firstly to apply for the specific performances of the contract or injunction in respect of

performing such duty which is affecting their rights (Poole, 2016). This is supported with the
case study which reflects the matters of specific performances as in case of Lamare V Dixon
(1873) LR 6 HL 414, the issues is raised regarding not maintaining the promise in respect of
keeping the accurate quality of cellars which is fixed by the defendant (LAMARE V DIXON: HL
1873, 2020). Thus, he filed suit against the claimant in respect of not keeping the promise and
thus demand for specific performances.
Application and conclusion:
By understanding this case study, it is relevant to the similar case as in respect of not
keeping the promise which is made between the parties regarding purchasing the painting. As the
deal is signed with some consideration money and also promises is to be made regarding paying
the remaining balances once the closure of exhibition is stated (Reddy and Jambulingam, 2017).
Thus, the contract is legal and also bound by the court to follow all the terms. Angelica can use
the remedy of the specific performances of the contract in which they order Maxwell to sell the
painting as per the fixed price and perform the contract with the set terms.
The effectivenesses of this legal advice is that, the disputes is to be resolved out of court
and also the rights of the parties are not affected in respect of not performing the contract with
the set manner.
B)
Issue:
The case is based upon the terms and condition mentioned under the employment law. In
this case, the issues is raised between the Nicholas and Newcastle branch regarding shifting the
office in London. By not accepting the proposal, Nicholas had been removed from the jobs
which resulting in facing major issues of earning or maintaining life.
Rules:
Under the employment and labour law, it is mainly designed in respect of building the
strong relationship between the employer and employee. It also helps in securing the right of the
employees and also they had to work under the norms mentioned under the employment contract
(Reinke and Zumbansen, 2019). In context of termination of employee or removal of any staff
members, it is mainly undertaken when any person committed any breach in any of the terms
mentioned under the contract. No employees can be removed from the job until the condition
regarding attaining such work is mentioned in the contract.

In case of Mr R jakkhu V Network Rail Infrastructure Ltd. The issues which the R
Jakkhu faced is relating to not accepting the offer which is made by the network rail in context of
shifting the job location (Mr R Jakkhu v Network Rail Infrastructure Ltd: UKEAT/0276/18/LA,
2020). By not accepting such offer, Mr R Jakkhu removed from the jobs which they claim that
this terms is not mentioned under the contract.
Application and Conclusion:
By referring this case which is similar to the recent case, it is stipulated that employment
law mainly secured the right of the employees if they are facing any unfair terms which is not
mentioned in the contract (Roberts, 2018). Nicholas Jakob had right to appeal under the
employment appellant tribunal which is specially designed for the employees who are facing any
type of disputes at work place. Through this manner they can get relief from such disputes on
speedy bases. The decision of the disputes is to be given within 14 days after the appeal is made.
The effectiveness of this legal advice is that, it helps Nicholas to get speedy disposal of
the conflict raised and also continue with the previous job as no such specific term is mentioned
in the contract (Singer, 2018).
C)
Issue:
In this case the issues is raised regarding carrying negligences at work place in respect of
avoiding the dangerous activity which is attaining at work place. The case is between the
Johnson V Construction company in which the issues are faced by Johnson regarding not reading
the notice board which stated that the railing are not permanently fixed yet, Do not lean on it.
Johnson didn't see the board, and he injured with his back and knee.
Rules:
Under the law or torts or negligent act, it is the duty of the owner to take care of their
employees regarding providing accurate duty of care, if they are working at any hazardous
places. In case of failure in performing the duty, they are liable to pay damages to the losses
incurred. Negligence refers to the civil wrong which is committed by one party in respect of not
performing the duty to another as per the set instructions (Smits, 2017). It is also stated that the
remedies to be performed by the defendant is relation to paying the losses for the actual damages
incurred to party.

It is referred with the case study of the Wheat V Lacon [1966] AC 552, as in this case the
same issues reflects regarding not maintaining duty of care which results in death of Wheat. As
after knowing the facts about the house, still the damages is not repaired by the owner which
results in facing lot of injuries to plaintiff (WHEAT V E LACON AND CO LTD: HL 1966, 2020).
The judgement is given under the law of torts in respect of paying losses to the damages incurred
to plaintiff.
Application and Conclusion:
From this case study, the same judgement is referred to the Johnson, as they are liable to
get compensation for the actual losses incurred. As owner is liable to pay damage as they not
work under the law of torts which results in taking care of the employees if they are engaging
with any dangerous activity (Ulfbeck, Mitkidis and Andhov, 2019). Thus, it is the duty of the
owner to repair the railing within the stipulated time period and thus in case of not undertaken
such activity, than they are liable to pay damages to the losses incurred to employees. In such
manner, Johnson can file the suit against the company regarding paying compensation for the
losses incurred or can appoint the arbitrators to settle the matters, if they are preferring out of
settlement matters.
The effectiveness of this legal advices is that if they prefer to settle the matter out from
court, this is the best way to resolve the disputes and also save the company image through
settling matters in right way (Wegener, 2018). This helps both the parties to get speedy disposal
of the cases and also they are liable to get relief from the damages incurred.
CONCLUSION
From the above study, the discussion stated with the working of business law in respect
of undertaking the activities for smooth running of business. Business law is mainly designed to
reduce the impact of civil and criminal crime at work place and also provide remedies to the
parties to take right decision in respect of resolving the matters. In first task, the discussion is
undertaken regarding the sources of law which is mainly designed to provide justice to parties. It
also helps in understanding the making of laws which carries various stages to establish the law.
In second task, the matters is discussed, about the formation of the company and its advantages
and disadvantages of choosing the company. In third task, various modes are discussed which
helps in resolving the disputes and also its effectiveness of giving the legal advices.

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