Business Law Report: Sources of Law, Legal Systems, and Solutions

This business law report provides a comprehensive overview of various legal aspects relevant to business operations. It begins by exploring the sources of law, including legislation, common law, and the role of government in law-making, particularly within the UK legal system. The report differentia...Read More

BUSINESS LAW

INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
LO 1.................................................................................................................................................4
P1. Explain different sources of law.......................................................................................4
P2. Explain the role of government in law-making and how statutory and common law is
applied in the justice courts. How statutory and common law is applied to businesses........5
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments..........................................................................................................................6
LO 2.................................................................................................................................................6
P3 Differentiate between legislation, regulations and standards to analyse potential impact
upon business..........................................................................................................................6
M 2 Impact of different types of law......................................................................................7
D1 Provide a coherent and critical evaluation of the legal system and law...........................8
LO 3.................................................................................................................................................8
P4 Brief overview of Contract law, employment law, Company law, etc.............................8
P5 Explain how different types of business organizations are legally formed.......................9
M3 Advantages and disadvantages of unincorporated and incorporated business with its
difference between in terms of starting process...................................................................10
LO 4...............................................................................................................................................11
P 6 Salient legal points of each case and Suggest an appropriate legal solution to each of the
problems with justification for the advice and solution given.............................................11
M4 Compare & contrast the effectiveness of these recommendations given......................11
D3Critically and evaluate the use of the appropriate legal solutions suggested in comparison
with alternative legal advice.................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Business laws are the laws which are related with establishing of a business organization.
These laws are helpful in providing of those rules and regulations which is responsible over
maintaining of framework which is responsible to create a concrete structure which helps in
performing of business operations. Such laws are responsible for an organisation to be
established within legality of law. Scope of these laws are wider in nature due to its applicability
upon various parts of business with. Nature is very dynamic as they deal with various aspects of
business that is helpful in achieving of goal. This file is divided into two parts out of which first
part is going to contain sources of law, role of government in law making and various types of
laws. Also business organizations there funding and management. In the end legal solutions are
required to be given as per the situation.
MAIN BODY
LO 1
P1. Explain different sources of law
Laws is one of the most important part of society as it is responsible for keeping balance
of law and order in society. These are formed through sources which has acted as a basic
ingredient of law making. Sources are being explained as follows:
Legislation: It is one of the most important source that is related to law. Legislation
consists of parliament which is responsible for passing of law in UK. It is the highest authority to
form law in UK. There are two houses which are House of Lords and House of Commons. A
discussion is taken place in parliament over it after then only law can pass (Ma and Marquis,
2016).
Common Law: This is another major source that helps in law formation. It consists of
those judgment which has been passed in landmark cases. These helpful in providing a base for
amending of law to be used in similar situation in existence.
Law Commission: It is that kind of commission which is being formed in order to give
suggestion over any kind of law having adverse impact upon society. They are there to help
public at large by analysing of problem that has been caused due to law formation. The main
objective of this commission is tom ensure that laws is being applied in fair manner.

P2. Explain the role of government in law-making and how statutory and common law is applied
in the justice courts. How statutory and common law is applied to businesses
Parliament is the highest authority to form laws in UK. These are responsible for examine
of a bill through discussion that takes place in both the house that is House of Commons and
House of Lords. Proper process is followed by parliament which has been explained as follows:
Stages of law making
Bill: It is a draft that has been prepared by the government. Bill is just a detail
explanation of what is the motive of law. These are of three type’s private members bill, public
bill and private bill.
First Reading: In this only the bill is presented in the house of parliaments and nothing
is done at this stage.
Second Reading: At this stage detail discussion is taken upon the bill which has been
presented and voting is done upon it. Whip system is used at this stage for the purpose of voting
and gain support of members in order to gain majority.
Committee Stage: At this stage bill is being referred to House of Commons for
examination of it in detail. Also it is checked that any amendment is to be done in it or not.
Report Stage: In this stage database and amendments is done and bill is being presented
in the houses and further debate takes place over it with voting is also done again.
Third Reading: This stage bill is presented with amendments and again voting is done
over accepting or rejection of it (Lee, 2017).
House of Lords: Bill is being presented in the House of lords after it has gone through
lot all the steps that has been mentioned above and changes are madder if required or else the bill
is send back to House of Commons.
Royal Ascent: This is the final stage that has been of the process of law forming in
which that bill is being presented to monarch for an approval of bill. After this inly the bill
becomes permanent law. This power has been granted to him under Royal Ascent Act 1961. He
has to only sign it.
These laws are every important and are being applied according to its character and
requirement. Also these two laws acts as an major elements in laws formation. These are the

basic elements of law and acts as concert rules in it. Further explanation has been done as
follows.
Common law: These laws are being considered as that kind of laws which are being based on
judgements that has been passed by the judge of a court in a particular case. It is related on case
laws which has to be taken into consideration. In this law judgement is being given over
landmark cases which is to be used further over similar situation. This is helpful in a manner that
new law is not required to be formed. These are presented in the form of law report which covers
about all elements of case.
Statutory law: Such laws are permanent in nature and has been formed by the government of a
country by following proper process. These laws are there in writen form and applicable to all
over the society. This is helpful in giving of concrete judgement in particular case. Legal rights
of an individual is being protected by an individual.
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and developments
UK is having very effective legal system and has been modified as per that time. A legal
system of an country is being handled by judiciary of an country and in UK the herarchchy of
court is the highest court of appeal is Supreme Court which hears all kinds of cases. After this
comes high court which is divided into three the crown court deals with criminal matter and
court of appeal deals with civil matters and family court deals with family, marriage issues. Then
comes magistrate court which deals with all kinds of matter passed from other lowers court. Civil
laws are those law which deals with individual and criminal law deals with public at large. Still
law in UK requires changes to match with modern laws (Holloway and et. al., 2017).
LO 2
P3 Differentiate between legislation, regulations and standards to analyse potential impact upon
business
Legislation: These are those laws that has been formed by following of proper procedure that
has been prescribed for it. This are one of the most essential rules that is required in order to
maintain proper order in society.
Regulations: Such are the instructions that are being enforced in relation to deals with
administration law that is helpful in making operations of an organisation to be performed in
smooth manner. These are required to be applied in permanent manner.

Standard: These are those kinds of guidelines that has been formed keeping in mind legislation
and standard. It helps in enhancing work culture in an organisation. It has mainly helped in
dealing over quality with product and services.
M 2 Impact of different types of law
Laws and regulation is crucial for any of the business organisation which gives idea that
how any of the business needs to operate. Performing business activity simply provides the
opportunity to earn profit but at the same time it is needed for any of the business that they must
consider laws and regulation because it is the only way through which their goals and target can
be accomplished. Each of the law which are formed for commercial sector needs to be followed
by business organisation because it is the only way through which any of the organisation can
perform effectively. Some of the law has been discussed below with its possible impact upon
business organisation:
Contract law: The law which is formed for the purpose of maintaining the relationship
between parties through legal process is known as contract law. It is among the important law
allows the business entity to meet out its target within specific time period and if in case any of
the business fails to perform their part of work as per the guidelines then legal penalties can be
imposed upon organisation. There are number of effects of contract law on business entity such
as contract law says that work is to be completed on specific time period and failure in this
particular clause will impose different types of penalty upon business organisation.
Law of Tort: The act of parliament which has been enforced for the purpose of imposed
penalty against the person who do not perform their part of work with proper care. It is said that
any of the person or entity which performs any sort of work should ensure that they will not
conduct any of the work due to which any innocent party has to suffer. Looking at this it can be
easily said that different types of effect can be seen. Failure to work according to the law, then
business may face problem in maintaining their goodwill in the market (Hamad, Elbeltagi and
El‐Gohary, 2018).
Copyright Law: The law which secures the right of the person who has created any of
the work for the first time within the market. This types of law is crucial for business
organisation because it certainly improves the profit percentage of a company. In any of the
context, if organisation do not meet out the requirement of law then in that respective condition

they might have to face problem where different types of penalty can be imposed which will fall
under the negative impact for an business organisation.
Employment law: Act of parliament which has been introduced for the purpose of
maintaining the relation between employer and employee is categorised as employment law.
This is among the law which is applicable for all types of organisation. The impact of the law on
business says that it can easily allocate the roles and responsibility of employee through which
work can be performed at greater speed.
D1 Provide a coherent and critical evaluation of the legal system and law
Legal system of an organization should be very strong and is required to be maintained a
kind of flexibility in it. This is going to lead towards making laws competent with the laws
present current society. It has to promote more of stability and peace within society. Laws are the
most important part of society which leads towards providing justice. Laws in UK are rigid and
is required to be enhanced to match current laws. For example UK legal system is filled with so
many complexes it is very difficult to understand it. This makes quality of justice poor.
LO 3
P4 Brief overview of Contract law, employment law, Company law, etc.
Contract law:They are being formed in order to make an agreement valid in the eyes of laws.
Such laws are useful in forming financial agreements which are important from perspective of
forming strong relationship within a business. These laws consists of various elements that leads
over forming of contract valid within the eyes of law.
Employment law: These laws are formed in order to protect rights of employees and providing
them health and safety. These laws are also deals with basic needs of employees with certain
benefits under emergency situation (Bird and Park, 2016).
Company law: These laws has been formed in order to establish an organization. Such laws
defines about various documents like Memorandum of Association and Article of association to
an organization's process of forming with an country. It is explained under Companies Act 2006.
P5 Explain how different types of business organizations are legally formed
Business organizations are that kind of organisation which carries on all kind of trade
related activities. These organizations that are being required to be formed should be only seen

situation and then only it can be set-up. Organization structure is dependent upon its idea of
business. Further explanation is being given as follows:
 Sole proprietorship: These are that type of organisation that has been formed to do
business by an individual. This means that single person is considered to be owner owner
of business and all problems has to be handled by him which is related to business. These
persons are being known as sole proprietor (Greenleaf, 2018).
 Partnership: In this organisation business is being performed by more than one parties
and is required to set a common goal of achieving profit. Also these partners are having a
basic duty to be performed by all partners because they are responsible for all kind of
things that is related to business. Legal documents to be required is only to provide
legality to agreement that has been formed between parties.
 Limited liability Company: This organization is based upon relating over those business
that has been provided with special privilege of getting tax rebated. Organization are
having both owners and partnership type of characteristics. This also made agreement
formation if required.
 Corporation: The main purpose of these organizations has to be provided over
benefitting and providing substitution of services to its customers. Also capital is required
in huge amount to run the business and complex procedure is there to run it. Various
ways are there for the companies to increase the fund and they are
1. Issuing of shares
2. Through bonds, debenture can be a source.
3. The best method of raising fund is related to monetary funding is through debt method.
4. Loans from various private and government financial institution.
M3 Advantages and disadvantages of unincorporated and incorporated business with its
difference between in terms of starting process.
Incorporate Organization: These are those types of business organization that is being run by
an individual and is being related according to contract that has been formed. Fund is going to be
raised by loan from family and relatives or any other sources.
Advantages:

 Perpetual succession is being given as a right to an organization.
 Main advantage of this organization is that case can be filed if any violation is done in
business organization (Fenwick and Wrbka, 2016).
Disadvantage:
 Business formation is not easy it is very much complex and rigid.
 Legal documents of an organization are required for getting registration.
Unincorporated Organization: Such business is being mainly operated upon the basis
of profit that has to be earned. Main benefit is over tax paying that is not required to be paid by
the organization. As it is not a legal entity. Funding also becomes very difficult and is not
arranged at times.
Advantages:
 Annual accounts are not important over maintaining.
 Organization is required to be benefitted that has been changing which is very difficult to
be formed.
 Disadvantage:
 Formation is not easy for an organization in partnership.
 Decisions making is required and huge fund generation is there to take decision and
implement it.
 Not easy to form an organizations within partnership.
LO 4
P 6 Salient legal points of each case and Suggest an appropriate legal solution to each of the
problems with justification for the advice and solution given
CASE 1: Gordon is a salesman in an Orange Computers Ltd and is having salary of £10,000 and
commission is 9%. Due to cut throat competition market got affected and Fred informs Gordon
about financial trouble. Requested to forgo salary for 2015, 2016 and 2017 only commission is
going to be given. In2016 economy grow and Gordon feels that he is able to get wages for 2016.
Now he seeks top obtain wages for 2017 and claim for wages of 2016, 2015.

CASE 2: In this case Janet has decided to buy internet connection from Virgin Media. In this
case legal position of service provider and consumer on the basis of various elements of contract.
CASE 3: This case discussion is to be done upon avoiding of compulsory winding up.
CASE 1: In this case Gordon has come into contract of employment with Fred which makes him
to pay salary as promised by him. So, Gordon can claim wages for 2017 but not for 2015 and
2016. As for 2105 and 2106 he has entered into contract for letting off the salary.
CASE 2: In this case Virgin mobile has entered into contract with Jenate to provide her services
and install all things. Offer and acceptance has happened between Janet and Virgin media. In my
opinion Virgin media is the accepter and Janet is the offerer.
CASE3: Under this case winding up has to be done that can be stopped. In my opinion reducing
debts can be done which helps in making organization gain stability within the market(Cass,
Diver, Beermann and Freeman, 2020).
M4 Compare & contrast the effectiveness of these recommendations given
First case employment law has been used to prove validity of contract that exists. In
second case offer and acceptance is made which are important elements of contract. In third case
winding up has to be stopped which can be reduced by reduction of debts in total.
D3Critically and evaluate the use of the appropriate legal solutions suggested in comparison
with alternative legal advice
ADR is one of the most commonly used method to solve disputes outside the court and is
also less complexed as compare to various procedure in court. Alternatives that can be used in
these cases are described as follows:
Case 1: In this case negotiation has to be used in which an negotiator helps in making
both parties come to an common point of agreement. Negotiation helps in making parties
negotiate over the terms of contract and makes come to a point.
Case 2: In this case mediation can be used to create a way that has been able to gave
outcome which both parties can follow. Mediation is helpful in identifying a way to gain
compensation.
Case 3: In this case arbitration has to be used in which an arbitrator has to be hired and
judgement passed has to be followed by both the parties. This process makes an judgement to be
marked after hearing over facts from both the parties.

CONCLUSION
From the file it can be concluded that business laws are those laws that has been used for
forming of organization. Further in this file sources of law, role of government in law making
and various organization is explained. In the end legal solutions is being given over various
scenarios and questions has been answered regarding it.

REFRENCES
Books and journals
Bird, R.C. and Park, S.K., 2016. The Domains of Corporate Counsel in an Era of
Compliance. Am. Bus. LJ. 53. p.203.
Cass, R.A., Diver, C.S., Beermann, J.M. and Freeman, J., 2020. Administrative law: cases and
materials. Aspen Publishers.
Fenwick, M. and Wrbka, S., 2016. The Flexibility of Law and Its Limits in Contemporary
Business Regulation. In Flexibility in Modern Business Law (pp. 1-12). Springer, Tokyo
Greenleaf, G., 2018, February. The Legal and Business Risks of Inconsistencies and Gaps in
Coverage in Asian Data Protection Laws. In Session II Materials, Asian Business Law
Institute (ABLI) Data Privacy Forum, Singapore (Vol. 7, pp. 18-21).
Hamad, H., Elbeltagi, I. and El‐Gohary, H., 2018. An empirical investigation of business‐to‐
business e‐commerce adoption and its impact on SMEs competitive advantage: The case
of Egyptian manufacturing SMEs. Strategic Change .27(3). pp.209-229.
Holloway, J.E. and et. al., 2017. Law and Business as a School of Thought: A Pedagogy to
Teach the Theory and Practice of the School. UC Davis Bus. LJ.18. p.215.
Lee, E., 2017. Financial inclusion: A challenge to the new paradigm of financial technology,
regulatory technology and anti-money laundering law. Journal of business law. (6).
pp.473-498.
Ma, J. and Marquis, M., 2016. Business culture in East Asia and implications for competition
law. Tex. Int'l LJ, 51. p.1.
Rohlin, S.M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from
new and existing business. Economic Inquiry, 54(1),pp.361-374.
Sulkowski, A.J., 2018. Blockchain, law, and business supply chains: The need for governance
and legal frameworks to achieve sustainability. Available at SSRN 3205452.

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