Business Law Report: Impact of Law on Business Organizations

This report provides a comprehensive analysis of business law within the United Kingdom, examining various facets of the legal system and its impact on business organizations. The report commences with an introduction to business law, highlighting its role in regulating business operations. It then delves into the sources of law in the UK, including common law, domestic legislation, European conventions on Human Rights, and European Union Law, explaining their significance. The report further explores the role of the government in the law-making process, detailing the steps involved in creating new laws and differentiating between statutory and common law. An in-depth discussion follows on the impact of employment and contract law on business organizations, emphasizing the importance of these laws in protecting the rights of both employers and employees, as well as the consequences of breaching these laws. The report also examines different legal structures available to businesses, such as limited liability companies and partnerships, and discusses processes for managing and funding business organizations. Finally, the report provides recommendations based on a case study and concludes by summarizing the key findings.

Business Law

Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Sources of Law in United Kingdom............................................................................................3
Role of Government within the Law Making Process and Implementation of Statutory Law
and Common Law in Justice Courts............................................................................................5
LO2..............................................................................................................................................6
Impact of Employment and Contract Law on Business organization.........................................6
LO3..............................................................................................................................................7
Legal Structure in Business Organization...................................................................................7
Process of managing and Funding Business organization...........................................................8
LO4..............................................................................................................................................9
Recommendation for Case Study................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law is also considered as commercial law that is used to protect or Business law
or commercial law is considered as a part of civil law. Civil law deals with various types of
public and private laws that are implemented to regulate the business operation of the
organization in effective way. This report will be providing better analysis of business law that is
applied on different business organizations. Mainly organization processes like Recruitment,
organization management, people management and engagement, business and employment
contracts are considered as part of civil law (Butturini and DeJarnatt, 2020). All the legal and
business issues are treated under civil or business law. In this report different sources of law in
United Kingdom will be evaluated in the report. The role of local government will be evaluated
in law making process. The complete process of law making will be studied in report.
Application of statutory or common law in legal system will be analysed in report. Employment
and contract law in legal system of United Kingdom has been applied in the report. The impact
of these laws has been evaluated for business organization. Different ways has been evaluated in
the report which are used by the organization as legal structure of organization. Different
processes of managing and funding organization will be discussed in report. Specific
recommendation are provided for the particular case study as solution to their issue.
LO1
Sources of Law in United Kingdom
There are different sources are considered as source of Law in UK. These sources are
used by the legal system of UK to form complete law to maintain effective situations in country.
The major sources of law which are considered in UK are- Common Law, Domestic Legislation,
European conventions on Human Rights and European Union Law. There are main source of law
for the legal system that is used in United Kingdom. Complete legal system of UK is based on
the laws that are defined in this sources (Whaley and McJohn, 2016). Different laws are
considered from these sources in the constitution or legislation of UK.
Common Law - Common law in UK is also considered as Anglo American law which is consists
of customary body that is based on the judicial decision and prepared reports of the decided
cases. Common law has been continuously administrated by the common law courts of England.

Common Law courts of England are administrating since middle ages. This law includes the
legal system which can be found in United States along with the other commonwealth nations.
This law system that is derived from Civil Law. Most of the common law features of UK are
taken from the common law of England.
Domestic Legislation- This is also one of the most important source of law in UK. Domestic
Legislation is created by the parliament that is consists of both houses which are house of
common and House of Lords. The Domestic legislation can be categorised in two parts which are
– primary domestic legislation and other one is secondary domestic legislation. Primary domestic
legislation is taken from the Act of the Parliament which is commonly considered as the statutes
law. Various type of laws like criminal law, land law and contract laws are considered in the
primary domestic legislation (Gray and Hendley 2019). The secondary legislation in considered
as delegated or subordinate legislation. Secondary legislation is most common tool for
implementing change in UK. Majority of the legislations are made by the parliament of the
country. This is how primary legislation source is considered by the UK legal system to form
proper legal system.
European conventions on Human Rights- The conventions in the European continent for
human rights protection are majorly considered as source of law in UK. This law protects the
people of the countries who are belongs to the council of Europe. There are 47 members are
there in this council which also includes United Kingdom. The conventions that are defined in
the European Convention on Human Rights. This is how all the human rights protections acts are
taken from the European Convention on Human Rights.
European Union Law- European Union Law is considered as set of laws which are applied to
the countries who are members in European Union. The main objective of the European Union is
to promote peace between the countries who are part of the union. There are various laws are
made by this union to maintain law and order in countries who are members of union. The laws
of the European Union are considered by the Legal system because United King is member of
European Union. This is how as part of European union UK has adopted some laws of UK in
legal system.

These are major sources of law that are considered by the United Kingdom government
to maintain law and order in organization. the complete law of UK is formed by considering
various laws that are mentioned in UK legal system.
Role of Government within the Law Making Process and Implementation of Statutory Law and
Common Law in Justice Courts
Role of government in law making process is most important. Government is major
element in the law making process. UK government is the unit that works on the law making
process. Most of the laws that are currently in practices and most of the bills that will be
proposed to make law are proposed by government in the country. There are two parts in the UK
government which are known as House of Lords and other house in the UK government is house
of common. These are two important part of government that are involved in the law making
process.
There is a specific process is used by government for the law making process in country.
This process is consist of various steps in the law making process. The steps that are followed in
the law making process. The process of the law making process starts with the development of
the bill which will be presented in the parliament in order to passed it as law (Richard, 2018).
Government of the country forms a bill which is consists of all the considerations that are
implemented in the bill. All the required information and data is provided in the bill. Initially this
bill is presented in the House of common. As the bill is proposed in the house of common both
party in position open a discussion and debate on the bill. After this bill is presented in the house
of common parliament it is sent to the House of Lords for the reading discussion process. The
process that is followed in the house of the common is followed in the House of Lords bill is
discussed and analysed. After this reading process voting is performed in both houses of
parliament to pass it as law in parliament. As the bill get pass in both houses it is sent to the
queen for the royal accent. With the royal accent the bill is considered as law that is ready to
implement in the practice in country this is how a specific process is followed by the government
to make a complete new law in legal system of country.
There are two type of law are mainly applied in different cases. The statutory law is
passed by different government organization or agencies. This law is also considered as
substantive law in country. This law is written in the legal system of the country and it can be

applied suitable cases as per the need. The other law that is used in the courts of the UK is
known as common law. This type of law is based on the decisions or case studies which were
previously handled by the legal system. These cases are considered by the legal system to give
justification for other case on basis of the decisions that are made previously. This is how
common and statutory is applied in the legal system of United Kingdom.
LO2
Impact of Employment and Contract Law on Business organization.
In United Kingdom some laws are critically followed by the business organization in
order to keep this business running efficiently in business organization. The contract laws and
employment laws are made by the government in order to protect the rights of employer,
employees and customers in order to protect their basic rights that are mentioned in the
constitutions of country. The contract and employment laws are considered in organization in
critical and efficient way to prevent different legal actions against the organization. The
employment laws is considered as at that is consists of various rules, regulations and bonds that
are need to be followed by both business organization and employees (Mann, Warren and
Westbrook, 2017). The factors that are considered in this law are proposed to protect the rights of
people for proper wages, work hours and various other functions and regulations that are need to
be followed in country. The latest version of the employment law that is followed in United
Kingdom is employment act 2002. The main objective of employment act 2002 is to sort out or
solve various challenges and issues that are faced by the employees with in the work place.
Various facilities and protection form discrimination is provided to the employees in
organization. This process ensures the implementation of all processes that are followed in the
organization in effective way. Employment act come to action when organization or employee
do not follows the conditions that are mentioned in the employment contract. Legal system can
take strong action against the person who is breaching the law.
Contract law is considered as law which is derived from the sales and supply chain act.
This act ensure the protection to the seller and buyer. There are different contracts are signed by
the business organization with other organizations or customer. This act prevent the parties of the
contract from avoiding the considerations that are need to be followed by the organization. on the
breach of the contract organization have to face different consequences from the legal body of

the organization. This law come to action when a business organization beaches the contract with
the other party.
This is how business organization have to follow all the considerations that are included
in the contract and business law (Rustad and Kavusturan, 2019). This laws protects the rights of
business organization ad customer and prevent any kind of breach with in the contract that is
formed between business organization and business organization or business & customer. If one
of the party breaches the contract they have to face severe legal against them.
LO3
Legal Structure in Business Organization
For the effective working and management with in the organization different legal
structure are followed by company. These structure helps the leaders of the organization to run
organization with maximum level of management. The selection of the approach is based on the
type of the company and owned by whom. Various legal structures that are followed in the
business organization are- Limited liability Company, Private Limited company, Public Limited
company, Sole Proprietorship and Partnership. Structure of each organization is different in this
type of organization.
Limited liability Company- This is one of most common legal structure that is followed by the
business organization. In this type of legal structure the owner of the organization is legally
responsible for the debts of organization to the extent to the amount of capital individual has
invested in the organization (Benson, 2017). The level of risk in this type organization is
minimum for owner.
Private Limited Company- This type of legal structure is used for small business organization
which is owned by one of two individuals. In this type of legal structure the owner of company is
liability is limited to their share. Level of risk in maximum in this type of legal structure for
employees. In this type of organization simple organization structure like Hierarchical
organizational structure is used.
Public Limited Company- Public Limited Company is a different business entity that offers their
shares to be traded in the share market for the public. For this organization have to clearly
present their financial and operation condition publically (Block-Lieb, 2018). This structure is

mainly used for large size organization which is owned by group of organizations or groups. In
this type of legal structure proper organization structure is implemented in the organization.
Sole Proprietorship- This type of structure is used for small size business organization where the
business is owned by an individual person. All the risk with in the business process is handled by
the individual owner. There is no proper organization structure is followed in this type of legal
structure.
Partnership- Partnership is considered as organization where the company is owned by Two or
more than two individuals. All the profit and loss of the organization is shared by the owners
according to their percentage share in partnership. Mostly flat hierarchical structure is followed
in this organization.
Process of managing and Funding Business organization
Business management and fund rising process are most important operations that are
need to be followed by the organization. These operations are performed by the leaders of
manager of the organization in order to maintain the continuity in operations of company. There
are various organization management and funding approaches are used by the business
organization for effective management.
Business Management Approaches- There are various approaches are used by the management
of organization to manage completes organization in effective way (Parisi, 2017). Most common
approaches that can be used by the organization are- Classical business management approach
where planning, organizing and controlling operations are performed by the organization to run
organization efficiently.
Contingency Approach- This is most effective approach which is used by organization to
implement better management in organization. in this approach organization use different
strategy in different condition to maintain the effective performance of organization in market
place.
Funding Processes- To run organization continuously it is important to rise fund. There are
different approaches are used by the organization for the fund rising process. For example
Bootstrapping, crowd funding, angel investors, personal savings, venture capital and bank loans
can be used by the business organization for the fund rising process.

This is how management and funds are managed by the organization in business process.
LO4
Recommendation for Case Study
According to the case study the case of the Susan can be considered under the contract
law. It was a contract between the organization and Susan to provide the organization with
proper Bookface project framework but in between David had made contract with other
organization. This can be considered as contract breaching (Rogers and Shimada, 2020). Susan
can take legal action against the organization and David under the Contract act. This is how
Contract law will be applied in this condition.
CONCLUSION
This report is concluding various type of information regarding business law. Different
source of law for UK legal system has been analysed in report. Role of UK government has been
evaluate for the law making process for the legal system of the country. The implementation and
practice of the Statutory and Common Law has been explained in report. The impact of contract
and employment act has been analysed for organizations. Various legal structures that are used in
business organization has been studied. Different approaches of business and fund management
has been stated in the report along with recommendation for specific case study.

REFERENCES
Books and Journals
Benson, B.L., 2017. Customary commercial law, credibility, contracting, and credit in the high
Middle Ages. In Research Handbook on Austrian Law and Economics. Edward Elgar
Publishing.
Block-Lieb, S., 2018. Soft and Hard Strategies: The Role of Business in the Crafting of
International Commercial Law. Mich. J. Int'l L.. 40. p.433.
Butturini, P. and DeJarnatt, S., 2020. Taking on the Role of Lawyer: Transactional Skills,
Transnational Issues, and Commercial Law. Transnational Issues, and Commercial
Law (March 9, 2020). 44.
Gray, C.W. and Hendley, K., 2019. Developing Commercial Law in Transition Economies:
Examples. The Rule Of Law And Economic Reform In Russia, p.139.
Mann, R.J., Warren, E. and Westbrook, J.L., 2017. Comprehensive Commercial Law: 2017
Statutory Supplement. Wolters Kluwer Law & Business.
Parisi, F. ed., 2017. The Oxford Handbook of Law and Economics: Volume 2: Private and
Commercial Law. Oxford University Press.
Richard, E., 2018. The Rise of Usages in French Commercial Law and Jurisprudence
(Seventeenth–Nineteenth Centuries): Some Examples. In Understanding the Sources of
Early Modern and Modern Commercial Law (pp. 337-349). Brill Nijhoff.
Rogers, A. and Shimada, M., 2020. The Operation of Mitigation under Japanese and English
Commercial Law: A Comparative Analysis. International Trade Law and
Regulation. 26(2). pp.112-125.
Rustad, M.L. and Kavusturan, E., 2019. A Commercial Law for Software Contracting. Wash. &
Lee L. Rev. 76. p.775.
Whaley, D.J. and McJohn, S.M., 2016. Problems and materials on commercial law. Wolters
Kluwer Law & Business.