Business Law: Legal Systems, Business Impact, and Dispute Resolution

This report provides an overview of business law, examining the sources of law, the role of government in law-making, and the differences between statutory and common law. It also analyzes the organization of the judiciary and the jurisdictions of courts. Furthermore, the report discusses the impact of company, employment, and contract law on businesses, along with the relationship between regulations, legislation, and standards. It explores different types of business organizations and methods of funding, concluding with recommendations for legal solutions to resolve disputes.

BUSINESS LAWS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
1 Different sources of law...........................................................................................................3
2 Role of government in law making..........................................................................................3
3 Difference between statutory and common law.......................................................................4
4 Organization of Judiciary.........................................................................................................5
5 Jurisdictions and structure of court..........................................................................................5
TASK 2............................................................................................................................................5
1 Impact of company, employment and contract law on business.............................................5
2 Relationship between regulation, legislation and standards....................................................6
TASK 3............................................................................................................................................9
1 Different types of organizations................................................................................................9
2 Management and funding of business organization................................................................12
TASK -4.........................................................................................................................................12
1 Recommendations of the legal solutions to solve the disputes...............................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Law is defined as the set of rules and regulations regulated by the government and
enforceable by the court of law. It also refers to the system that is developed by the government
in order to deal with the crime and protect the society against the harm(Hatanaka, 2018). The
rules framed by the government are binding on all the people living in the country.
Business law refers to the branch of law and legal system of law which is related to the business
activities. It is that portion of law which is concerned with the rules and obligations originate
from the business transactions and is commonly known as Mercantile law(Roulet,et.al, 2019).
The law regulations are applicable to all the transactions related to trade and commerce.
The report illustrates the various sources of law which organizations should apply and
role of government in making laws, difference between statutory law and common law(Dwyer,
et.al, 2019). Apart from this the study included the impact of employment law, company law and
contract law, relationship between legislation, regulation and standards and various types of
organizations and methods to solve the disputes arises in the company.
MAIN BODY
TASK 1
1 Different sources of law
Law refers to the set of rules and regulations by the government which governs the behaviour of
a person in the society. They are represented as the origin of laws and the binding laws that
regulate any territory. The sources of law refer to the seat of power from where the law drives its
validity. Sources of law is classified into primary and secondary source of law. Primary sources
of law includes the legislation and case laws whereas secondary sources include the textbooks
and commentaries by the legal writers, expert opinions and decisions of the court(Lea, 2018).
Legislation is a primary source of law that is defined as the laws or set of laws that are passed by
the parliament. Case law is also the primary source of law that forms the doctrine of precedent in
the English legal system. Precedents are defined as the accumulated principles of law that are
based on the past cases and judgments having similar facts and where no law is applicable then it
is applied in such situations.
2 Role of government in law making
For making law in UK, it needs to pass through various stages:

 First reading :This is the first stage where the bill arrives in the lords. Thais stage is a
formality where the bill name is read in the chamber.
 Second reading:This stage involves the purpose and key areas of the bill. At this stage,
the discussion is done in the areas where the changes are required to be done.
 Committee stage:At this stage, there is line by line detailed revaluation on a particular
area which is required to be modified(Chochia, et.al, 2018). The member of the
parliament starts from the front till the end. Voting is taken place in order to decide
whether any changes should be taken place or not.
 Report stage:Examination of bill is taken place at this stage and further amendments are
debatable and make changes by taking votes.
 Third reading:The purpose of this stage is to clear all the loopholes and is the final call
for the amendments and changes to be made in the bill.
 Considerations and amendments :If any changes have been taken place then the draft is
sent to the commons to get their approval. It is the discretions of the commons whether to
agree, disagree or make their own changes as required.
 Royal assent:After making all the necessary changes and when all the houses agrees and
accept the changes, then the bill is approved to pass and become the law.
Statutory law are the written laws that has been approved by the state and legislature. Statutes are
created by bills that are planned for specific legislative authority. The main purpose is to
promote justice and prevent harm(Alden Wily, 2018). These statutes are the codified laws which
are arranged and collected at one place.
Common laws:England and Wales has a common law legal systems and is the body of legal
laws which is formulated by the judges and it arises as precedent(Heneghan, and Hall, 2021). In
certain cases where the parties don't agree, the court considers the past case which has similar
facts as that of present case.
3 Difference between statutory and common law
 Statutory law is a written law which is constituted by the legislative bodies and regularize
the behaviour of the members whereas Common law is case law of the legal system in
which the past cases are considered having similar facts.
 Statutory law defines the best governing rules for the society whereas common law
instructs the types of judgment should be delivered.

 Statutory law is the substantive law that defines the rights and duties of the people
whereas common law is the procedural law that comprises set of rules and regulation in
various proceedings in court.
4 Organization of Judiciary
Organizational judiciary highlights the structure of the organization of the judiciary as on 1 June
2017 and covers the following areas:
 The Judicial Executive Board
 The Tribunals Judicial Executive Board
 The Judges Council
 The allocation of day to day responsibilities
 The Judicial Office
 Organization of courts and tribunals
5 Jurisdictions and structure of court
The legal system in England and Wales consist of 5 levels:
 Supreme court
 Court of appeal
 High court
 Crown court and country court
 Magistrate courts and the tribunals services
Law reform is the process of examining the existing laws and implementing the new changes in
the legal system with the motive of enhancing in the administration of justice. Various research
work is carried out in order to simplify and modernize the rules and regulations of the country in
order to deliver justice quickly(Outhwaite, and Menjívar, 2019.). By making relevant changes in
the law can help the people to get justice quickly by applying simplified procedure.
The contract(rights of third parties) act 1999 enacted by the parliament and reformed the
common law and empowers the third parties to enforce the terms and conditions of the contract.
The consumer act 2015 is enacted by the Parliament of UK that consolidated the existing
consumers' protection law and also introduced new rights and remedies to the consumers related
to the unfair trade practices. It is classified into three parts such as part 1 deals with the consumer
contract for goods and services, part 2 deals with the unfair trade practices and part 3 other
provisions related to the consumers act 2015.

Equality act 2010 ensures that the rights of the individual Is protected and there should be no
discrimination on the basis of caste, race, disability. It also reflects on the unfair treatment and
assist in promoting fairness in the nation. It also ensures that there is no discrimination at the
workplace on the basis of disability of any person and gives privileges to the disabled person
regarding the discrimination.
Health and safety act 1974 is the primary source and ensures that it is duty of the employer to
secure the health, safety and welfare at the workplace, protecting the employees against the risk,
controlling the use of harmful objects and explosives which can harm the workers at the
workplace. The act ensures proper safety to the workers working in the organization and ensures
safety at work by keeping safe work environment.
TASK 2
1 Impact of company, employment and contract law on business
The companies act was enacted by the parliament of UK and is considered as the longest act by
the UK. The main purpose this act is to simplify and regenerate the company related provisions,
systematize the duties of the directors of the company, modifying the rights of the
stakeholders(Hopt, 2017). In some companies directors do not focus on the responsibilities
which can negatively impact the economic growth and thus affects the growth of the company.
For this, companies act has made the changed the provisions of the company like the directors is
requires carrying out the task which is important for the company and responsibility of the
directors to complete it within the specified time.
According to the Employment Law, it is very important to safeguard the rights of the both
employer and employee and in addition imposes duty on employer towards their employees. This
act specifies the provisions for the legal rights such as paternity leave and maternity leave. The
act also mentions the provisions regarding the settlement of disputes which arises in the
company(Bryson, 2018). The act also highlights the rights of the employees and changes in the
provisions related to the working hours and wages.
The contract act mentions the provision that it mandates the parties into the legally binding
contract for a specific time period. Under the employment law, the employer prepares a contract
which is legal and is binding on the employer at the time of offering the job and the terms and
conditions should be mentioned in the contract in order to avoid any confusion in the
future(Jansen, and Zimmermann, 2018). The contract specifies the tenure period of employment,

duties, working hours etc. It also consists of the condition in relation to the breach of contract by
any party to the agreement.
The legislation of UK fir equal opportunities in the organization is a support for many laws . The
act prohibits the employer from any type of discrimination on the basis of ace, caste , religion,
disability, gender etc.(Dunne, 2020.). The Act also lays emphasis on the disables that empowers
the disabled person to compete with the normal employees in the organization by giving the
disabled people privilege and any violation or discrimination, the disabled person can ask for
compensation.
Hiring and firing are two main aspects of the business and hiring is defined as the addition of
employees in the company in order to provide services to the company and firing is defined as
the subtraction or reduction of the workers that are not properly doing their responsibilities and
unable to provide services to the company. These both aspects fall under the employment act and
the process of hiring takes place over a period and a person is recruited on the basis of the skills
and abilities required for a job. Firing is done when any person is removed from the job as they
are unable to perform the work assign to the individual or the person does not comply with the
terms of the contract. Hiring or recruiting an individual in the company can support the faster
growth of the organization and efficient recruitment results in higher quality of employees and
provides competitive advantage over other business. Hiring efficient employees will help the
business not only to deal with the customer but also assist in providing effective services. For
example an individual hired by the company contributes to the overall success of the
organization by providing services. For recruitment, the company follows the procedure
mentioned in the policies of the company.
2 Relationship between regulation, legislation and standards
In the present scenario, every business operates in the environment where there are various
factors which impacts the functioning of the business and its operations. Every country has its
rules, regulations and standard and it is important for every business to understand this
legislation and regulations. Regulations are basically the rules that are adopted by the company,
and they are very difficult as they direct the company to keep control over the procedures and
the skills of the workers(Eskander, et.al, 2020). Legislation is the process of enacting laws and
are framed by the government after the parliamentary meeting. The legislation states the

provision about the health and safety of the employee at the workplace and maintaining healthy
work environment.
The Data protection act 2018 is considered as a very significant law and was developed to
control the personal information of the customers and to take care of the privacy of the customers
and safeguarding the breach of data which is used by the business, organization and the
government(Breuer, and Pierson, 2021). It is the UK's implementation of the General Data
Protection Regulation(GDPR). The act sets out the principles, rule and regulations regarding the
personal data and information in the UK and provides information to the business to install the
software or process that provides safety to the business world.
The employment is the immense area of the legal system that highlights the responsibilities and
duties of the both employer and employee in the organization. The act includes the provisions
such as contract of employment, equal pay working hours etc(Pleasence, et.al, 2017). Under the
employment act, it is duty of employer to ensure that the safety and health of the employees by
organizing various health assessments and taking proper steps in order to ensure healthy work
environment in the company. The employer should also lay emphasis that there is no
discrimination related to the race, religion, disability etc. so that the employee feel motivated by
working in the organization and stay focused on achieving the goals of the company.
Employment refers to the agreement between an individual and other entity that specifies the
responsibilities, payment term and the relevant details regarding the rules of the
workplace(Conti‐Ramsden, et.al, 2018). Employment is also defined as contract of service. It is
an agreement between the employer and employee which is made at the time of offering the job
and contains special terms and conditions related to the employment. It is binding contract that is
the employee has to comply with the terms and conditions specific in the agreement. It also
mentions the various other rules related to the company which is to be complied by the
employee.
The legal definition of maladministration is the abuse of the power by the public officers. It is
commonly known as the breach of trust by the public servant while performing the official duty
or dishonestly performing the official duty or unable to perform the duty(Armstrong, 2020).
Maladministration means that something wrong has happened or the complaint was handled in
the improper way by the public officer.

The company act upon two bodies that is the board of directors and the shareholders. The board
of directors is the in charge of the management of the company. The directors are responsible for
making the strategic decisions of the company and ensures that the company fulfil its statutory
obligation. The directors are the agents of the company appointed by the shareholders in order to
mange the daily activities of the business. The duties of the directors are:
 Act within the powers :It is the duty of the directors to act within the powers specified
under the constitution of the company and exercise its powers within the scope
mentioned(Keay, 2019). The constitution of the company incudes the memorandum of
association, article of association and various other terms and conditions of the company.
 Promote the success of the company:The directors should manage the operations of the
company to promote the success of the company in good faith and also for the benefit of
the members of the company. The director should focus on the long term achievement of
the goals and plan the strategies according to it.
 Decision making:The director should take appropriate decisions which is beneficial for
the company and act within the powers given under the company's constitution.
 Reasonable care and skill:The director should take reasonable care and apply its skill
and knowledge while taking the major and important decision for the company. Through
this the company understands the capabilities of the directors in taking the business
decisions.
 Avoid disputes:The directors is not only responsible for the management of the company
but it is also has duty towards its employees(Segrestin,et.al, 2021). Every organization
has conflicts between the employees related to the opinions and other company related
matters. It is the duty of the director to avoid the situation which can give rise to the
disputes
Delegation of task refers to the giving the authority or responsibility to perform any task or take
any decisions for the company(Saona,et.al, 2018,). The director of the company delegated the
task to different departments which is sub delegates the authority to their team members. The
purpose of delegating the authority is to increase the team work, encourage the creativity and
innovation in the company etc. By delegating the authority each member in the organization is
aware about their part of work to perform in order to achieve the long term goals of the
company.

The relationship of the employer and employee is a lawful link and exist when the employee
performs its work under conditions in return of the remuneration. The employer is under the
obligation to ensure the health and safety of the employees by making regular assessments and
maintain healthy working conditions in the organization. The employer should ensure that no
discrimination should take place in the organization on the basis of race, caste, gender and
disability(Magnavita, and Garbarino, 2017). The employee should also listen to the instruction
given by the employer and communicate more often with the employer in order to avoid any
conflict in the future.
The current business environment operates where there many restrictions and regulations
imposed by the government and is binding on all the organizations to follow these regulations.
Regulations are the rules which is framed by the government and it is important for the company
to comply with the rules of the government. Legislation is passed by the government after the
parliamentary meeting. It is related to the law making and influence the structure of the company
It binds the employer to keep regular check regarding the health and safety of the employees and
working conditions of the company(Atkinson, 2017). The legislation allows the company to take
control over the risk factors which can affect the working environment of the organization.
Regulation can both have negative and positive impacts on the organization but it depends on the
type of company which can balance the legal issues which can arise in the future.
The English legal system is considered as the most efficient as it ensures that the justice is made
to all the people of the society relating to the race, caste and religion. The government of UK has
taken various steps in the administration of justice. Measures have been taken to assist the poor
in providing justice to people who cannot afford the court fees. The legal system has made
various changes which is necessary for delivering the justice at right time.
The case related to the discrimination regarding the age, an 89-year-old Eileen Jolly was fired for
not able to use the modern computer. The employment tribunal found that the proper training
was not giving and awarded compensation to Eileen Jolly.
TASK 3
1Different types of organizations
1. Sole Trader: It is an unstructured business where a person pays the income tax on the profits
earned personally. Sole Proprietorship is considered as the easiest way to start a business the
profits and the losses of the business are managed by the single person. It is the easiest way

because there are no restrictions and interference of the government. Due to lack of government
interference, it is good for the small business owners to operate their business. The sole trader
receive all the profits generated from the business. An individual is also personally liable for the
debts of the business. To become the sole trader, an individual perform all the duties and
responsibilities all by itself. The person as a sole trader can trade by its own name and can opt for
any name of the choice of the sole trader(Minor, et.al, 2019). The sole trader pays the income tax
for the profits and file self assessment tax every year mentioning all the income and expenses of
the relevant year. The sole trader has unlimited liability and is personally responsible for the
profits as well as the losses of the business. A sole trader is self-employed person and can stop
trading or dissolve the business but it is the duty of the proprietor to maintain financial records
for six years from the date of the dissolution of the business.
Advantages:
 It has full control over the operations of the business.
 No interference and restrictions of the government.
 The sole trader has unlimited liability and enjoys all the profits generated form the
business.
Disadvantages
 It is not considered as separate legal entity in the eyes of law.
 The sole trader is personally liable for the debts of the business.
 IT is difficult for the sole trader to expand its business due to lack of funding.
2.Partnership:Under the Partnership Act, it is the formal agreement between two or more
parties entering into the business with the motive and to share the profits and losses equally or
the ratio decided according to the agreement. In order to form a partnership agreement all the
valid elements of the act should be mentioned and accepted by the parties. All the terms should
be legal and should be related to law in order to avoid any legal dispute in the future. In order to
start the partnership firm it is important for the partners to register with the HMRC and the
process will include the tax and any national contribution terms before starting its trading as a
partnership firm(Buchan, and Yates, 2019). The partnership deed also stated the provisions
related to the dissolution and included reasons for the dissolution of the partnership agreements.
It included:dissolution by agreement. Dissolution by notice, Dissolution on the expiry of the time
period, on the death of the any partner, insolvency and by the notice of the court.

Advantages:
 Under the partnership act, every parter has its own skill, knowledge and expertise in their
areas which can help to reduce the gap in the knowledge of the partners and the
contribution of each partners skills will help the company in its growth.
 Entering into the partnership requires capital investment and every partner contribute into
the business. The partners make the connections with the investors in order top attract
more funds into the company which will help in the growth of the business.
 The financial burden can be managed by the partners which can help in the growth of the
business and avoid necessary expenses.
Disadvantages
 Many times conflict occur between the partners regarding the difference in the opinion
which can result into the dissolution of the partnership firm.
 The number of partners can create a problem in the decision-making of the company as
different views will be presented by the partners which will result in to decrease in the
profits of the company.
3. Limited Liability Partnership:Limited Liability Partnership is a legal framework of
business and professional firms such as accountants choose to start the limited liability
partnership. It is considered as a separate legal entity. The partners are responsible to
provide the registered address for the business and maintain the register of its
members(Corfe, et.al, 2021). To incorporate the business, at least two members should be
involved and there is no limit for the maximum number of partners. To set up the LLP, an
agreement is made between the parties on how the business will operate, profit sharing
arrangements of the partners, solution for the resolution of the disputes and duties and
responsibilities of each member whose name is specified in the agreement.
Advantages
 In LLP, there is protection of the personal assets of the partners due to limited liability.
 There is flexibility in the management as all the terms and conditions are already made
and accepted by the members.
Disadvantages
 There is no protection of the accounts of the LLP as its available publicly.

 More cost in incurred in setting up of LLP as compared to the conventional business
partnerships.
4. Limited Companies:Limited companies are set up and have separate legal entity different
from its owners. In UK, limited liability companies are incorporated as a legal person at the
Companies House where they are allocated different numbers(Walthoff‐Borm, et.al,2018). Being
a distinct entity of its own the company can use the assets of its own name, can enter into the
contracts, sue or can be sued. There are two types of limited liability:Public and private.
Advantages
 In Limited Company, the owners are not fully liable for the legal action taken against the
company.
 The structure of the company increases the legal image of the company and provide the
professional image to the customers and suppliers.
Disadvantages
 The disadvantage company suffers that the information of company is disclosed on the
public record and no privacy regarding the details of the directors and owners.
 The company requires additional documentation for filling and additional requirements
and is a lengthy process.
The company is formed when the certificate of its incorporation is issued by the respective
authority. The certificate is issued when all the relevant documents of the company and the legal
formalities he been completed and the respective fees is paid by the company. Contract of
employment can terminate in multiple ways but the legal structure of the act focus on the
dismissal. This happens when the employer ends the contract of the employment. While ending
the contract of employment, both the employer and employee need to give the minimum notice
period before terminating the employment. An employer has the right to dismiss the employee
without giving notice if the employee has breached any terms of contract of employment.
Employees work to earn money to fulfil their requirements as financial rewards are important
and motivates the employees to increase its performance in the company. Every employee of the
company wants to be appreciated for the work they have done and should be rewarded for their
performance. It is said that a there is a positive relationship between pay and performance as they
are related to job satisfaction, trust and commitment towards achieving the goals of the
organization.

There can be various reasons for the closure or liquidating the companies. When liquidating the
company all the assets and properties of the company are distributed among the creditors. There
are two types of liquidation such as compulsory and voluntary liquidation. Compulsory
liquidation is done by the creditors when the company is unable to pay the debts of the company
whereas the voluntary liquidation is further classified into creditors voluntary liquidations and
members voluntary liquidation.
2Management and funding of business organization
In order to achieve the growth of the business organization, both the managers and the directors
have to perform their best of their capabilities. The management of the company is essential for
its growth. Proper planning and formation of strategies should be made to build the reputation of
the organization in the market(Clauson, et.al, 2018). The company is required to perform as per
the rule and regulations of the company and it is the duty of the manger and employees to work
with loyalty while accomplishing the goals of the organization.
Funds are essential for the financial growth and to continue the operations of the business
organization. Various types funding are small business loans are available for the business
operating at small scale level, crowd funding self funding etc.
TASK -4
1Recommendations of the legal solutions to solve the disputes
Disputes at the workplace is unavoidable and these are very time-consuming and costly.
Many companies avoid the disputes and tries to resolve the disputes without going to the court
by applying various methods. These can apply to the health and safety needs of the employees,
compromise in the payment scale, wrongful dismissal by the employer. In the case of contract,
disputes arises because of breach of contract by one party or not performing their part of
promise(Ahmad, et.al, 2020). In some cases disputes occurring regarding the claims on damages.
Legal solutions are also available in the disputes related to business of commercial matter and
properties.In order to solve the disputes Alternate dispute resolution has important role to play
such as unions, tribunal s help the parties to solve the disputes in the organization. Solving the
dispute through ADR is cheaper and flexible than going to the court(Hodges, 2019). The parties
also receives the compensation. There are some schemes in ADR that are legally binding on the
parties. The main purpose of solving the disputes using these methods is to avoid the conflict to
go to the court and aims at settling the disputes through negotiation.

The various methods available to resolve the disputes are through litigation, arbitration , alternate
dispute resolution, simple commercial settlement.
It is recommended to Larry and Chris can opt for alternate dispute resolution in order to settle
with the party and if In fault can obtain compensation without going to the court. These type of
settlement is less costly and time-consuming and ensure the parties to get justice quickly through
negotiation among the parties to dispute.
The legal framework of India is that it follows the common law and consist of the single court to
administer both the central and state laws and the courts are broadly classified into district
courts, high court and supreme court of India. The law of India is divided into criminal law that
is enforced by the police, civil law, common law and statutory law whereas the legal framework
of the United States is the body of domestic as well as the international laws that is applied to a
particular country.
ADR refers to the set of techniques and practices adopted by various organization in order to
solve the disputes without going to the court and involves arbitration and mediation. The role and
importance of ADR is increasing in the field of law and commercial sectors at all the levels
national or international. This method can be used in all the matters which can be resolved by the
mutual agreement of the parties. There are various forms of ADR that is conciliation and
mediation. Conciliation is the process where the conciliator meets the parties to dispute and tries
to negotiate without going to the court. Mediation method gives the party an option to resolve the
disputes by mutual agreement. Similar to UK law every country applies the ADR method to
resolve any disputes which arise within the parties without going to the court and by negotiating
between the parties.

CONCLUSION
From the above report, it can be concluded that law plays an important role in order to protect
the society from the crimes and bind the society together. The laws made by the government are
binding not only to the people but also the business organizations. The English Legal system has
taken various measures to reform the laws of the country by giving various privileges to the
people who could not afford the court fees. The law has bee modified in order to deliver justice
at right time and quickly. There are various organizations and every organization has its own
part. It has also discussed the importance of management. It is also discussed in the report about
various duties and responsibilities of both the employer and employee. The employment act also
ensures that the employer should take care of the management and safety related issues in the
company.

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