Business Law: Analysing Legal System, Business Types and Legal Advice

This report provides a detailed analysis of business law, focusing on the legal system of the United Kingdom, various types of business organizations, and methods for dispute resolution. The first part of the report discusses the sources of law, the role of government in law making, and the application of statutory law in courts. The second part examines the impact of contract and employment law on businesses, the formation and management of different business types, and funding strategies. It also compares different sources of legal advice and support for dispute resolution, offering recommendations for effective legal solutions. Furthermore, the report evaluates the advantages and disadvantages of various business organizations and the effectiveness of the legal system in addressing business-related issues.

Unit 7 Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
THE LEGAL SYSTEM...................................................................................................................3
CRITICAL EVALUTION OF DIFFERENT TYPES OF BUSINESS ORGANISATION............7
IMPACT OF THE LAW IN BUSINESS.......................................................................................7
PART 2............................................................................................................................................8
TYPE OF BUSINESS ORGANISATION .....................................................................................8
BUSINESS ORGANISATION'S MANAGEMENT AND FUNDING:.........................................9
LEGAL SOLUTIONS TO RESOLVE AREAS OF DISPUTE :..................................................12
COMPARE AND CONTRAST DIFFERENT SOURCES OF LEGAL ADVICE :....................15
ADVANTAGES AND DISADVANTAGES OF DIFFERENT TYPE OF BUSINESS
ORGANISATION :.......................................................................................................................15
EFFECTIVENESS OF LEGAL SYSTEM : ................................................................................18
CONCLUSION : ...........................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Business law which is also known as mercantile law or commercial law, the body of rule,
whether through agreement, convention, national and international legislation, governs dealing
between commercial and personal matters. These laws deals with the law of contract,
agreements, convention which deals with the matters related to trade and commerce. Business
law assists state for motivating workers of an enterprise who works in and organised manner.
This also assist in formation of an adequate policy for the business organisation(Truxal, 2021).
The law for business consists employment law of state. The law assisting government for
generation of revenue through tax form an enterprise which will run in the country. This report
have two parts first part is in essay form and contain sources of law, role of government in law
making and how statutory law apply to the court of justice. The second part of this report
consists impact of contract and employment law on business, formation of different kind of
business and how business organisation were managed and funded explained in this report. This
report also describes about comparison of various sources of legal advice and support of dispute
resolution which make appropriate recommendations for legal solution.
MAIN BODY
THE LEGAL SYSTEM
The legal system of United Kingdom is based on different perspective which exists in
the society. In United Kingdom there are two laws which were mainly use that are civil and
criminal law. In civil law they consider individual and the issues related to civil matters will
resolved in civil courts. In criminal law all kind of matters related to crime will covered. There is
procedure code for both the laws which is been followed in the matters of criminal and civil.
The law of crimes deals with the provisions related to murder, theft, robbery and many more. In
civil law they cover matters related to property, contracts, torts, state issues and many
more(Capps, 2020). The curt of magistrate and crowns court deals with criminal cases. Both
laws assists in making legal aspects which will be applied in practical and this prove legal
authentication. After BREXIT the legal system of United Kingdom face many changes and
applicability of law on business will be changed. So, new legislation which were implemented
developed the legal system of UK. The changes were made in corporate law in which company

have leverage to do business in the market. The threshold in competition market were also been
revised for new upcoming companies.
EVOLUTION OF THE LEGAL SYSTEM
United Kingdom have common law in the country but they do not have a written
constitution which makes a huge difference and co-seismic situation, this creates dis-balance in
law making or even enforcing them. The rule of Stare decisis were implemented in courts of UK.
Hence, there is dependency on judgements which have been given before, the judgement which
are of similar situation were being decided on the behalf for precedents. But this break the
harmony of law in which a situation is related but not same and directly makes question on law.
Still the legal system of United Kingdom have many loop holes which needs to look after for
improvement of their citizens(Kazim, and Koshiyama, 2020). The situation after Brexit is not in
favour of legal system of UK many procedure changes, threshold for competition market
evaluates and entry of new business enterprises were changes with new rules and regulations.
DIFFERENT SOURCES OF LAW
A legal system is a process and procedure to interpret and enforce the law. There are
mainly two sources of law, these are primary and secondary law. The primary sources of law are
the laws which were made through the act of parliament of the country. These are the data
which will be delivered through the legislature of the state. Primary source of law includes all the
statutory data. These are those laws which were formed through an authorised body. The
legislature makes law for the people who resides in the country. The primary source of law
consists of case laws(Tang, 2019). Primary legal source of law are website and books which
have written, formal statement of law which is issued by entities of government. The laws related
to this have everything from a states statute in ordinance of city to publish case laws published
by law. The case laws are the judgement which are passed through the court of the country. The
case laws were consider through the court and have binding effect on the lower courts of the
state. This is being mandatory for the court to follow the judgement passed by higher court of the
country.
The secondary source of law were referred to the legal writing which do not emanate
from courts or the legislature, this is neither a decision of judge nor the law passes through a
legislature. The secondary materials are formation of one or more authors who all analyse the
law in a given perspective. The secondary source of law includes monographs (which are

treaties, textbook, published paper, case book on textbooks), government reports, collection of
essay, conference paper or the legal education program material. The secondary source of law
depends wholly on the primary source of law which includes decision of court, new statutes and
many more which enhance the analysis and discussion in article and books. As per this the
judges and legal drafters will give attention on what the legal scholar have to say for a particular
subject. The texts of legal and articles are secondary as they are not law.
The delegated legislation takes place when an higher authority share the power with any
of the lower authority. The delegation of power decreases the burden form the higher authority.
The delegation will assists in releasing the stress and work load from higher authority. For
example, When state government give power to lower authority which frame the policy in local
area.
Common law is a law which will be applicable on every citizen of the state. This is not
made in codified manner as the statutory law will be made in the country. The equity law
describes that there will be no discrimination between the citizens of the state on the ground of
gender, religion, colour, sexual orientation, caste, disabilities, grace, maternity and many more.
The laws made by European Union are the laws which were formed through the security council
of European Union(Frosini, 2019). The Convention of Human rights will explains the provision
related to human rights which were applicable on all of the members of the state of European
Union. These will comply with the countries in all conditions for protecting individuals human
rights. The right of life and safety will be provided through the convention of human rights.
The Equality Act, 2010 mentions that there will be no discrimination done on grounds of
gender, disability, religion, sexual orientation and many more, within the workers of the
organisation. The laws for health and safety mentions about the precautions which were taken
through the workers in order to give them safe and healthy environment for work. The reform on
human rights act mention the changes which takes place from last time period. One of the reform
includes privacy rights as the human right in the law. The company's act 2006, gives the
provision for working of the company which establish and register in this act.
LEGISLATION, REGULATIONS AND STANDARDS
Legislation is an legal entity which governs a set of body or an community, organisation,
an industry or whole of the country. The legislation have a systematic way of establishing laws

in a country for every citizen, and these laws made by legislation have to be followed by each
and every business enterprises. Regulations are set of legal requirements which have to follow
through the enterprise for doing business or any of the other dealing which must have been
related to the legal obligations of the country due to safety of product, consumer protection and
many other factor in interest of public which makes rules for an administration. The standards
give an specification for a service or products through an organisation, this must have a wider list
for guidelines for a module of a company which make sure safety and quality(Kainer, 2019).
This have requirements for an enterprise which have to be there or this have to be followed
through a company.
ROLE OF GOVERNMENT IN MAKING LAW AND ORGANISATION IN JUDICIARY
The law is made and executed through three main body of the government. These
organisations are executive, judiciary and legislative. The main function of these bodies are to
frame and execute the law in the state. The main functions of legislation is to frame are law
which is to be complied through the citizen of the state. The legislature consists of two houses,
these are The House of People and The House of Lords. The law will be passed from these two
houses of legislation. This have mainly three steps in formation of law for the state(vom Lehn,
2019). The steps are, firstly framing of draft through the members of the parliament will be done.
After the draft is ready then first and second reading of the draft is to be done. In this the
discussion on pros and cons will be made on the draft in the parliament. They also discuss on the
history and the consequences of this draft. When they have completed the discussion, then the
amendment is going to made in the draft as per the argument done in the house of parliament.
After this process the draft will be converted into the bill. The bill have to be sent for receive
Royal Assent. When the bill get royal assent then the bill will become law. Then the law is
enacted and applicable on all of the individual in the country.
The work of executive is for executing the legislation in the state. Their main function is
to make people comply with the laws. They have the authority to arrest individual who did not
comply with the provisions of the legislation. This act is going to be done by the police authority
of the country(Durant, 2021). The main function of judiciary is for punishing the people who do
not abide the law of the state. In this the punishment will be granted to the persons who
committed any type of criminal activity.

The state have two kind of law, these are common law and statutory law. The common
law is in which law has been framed in non codified form. There is no specified procedure which
helps in execution of these law in the country. The law includes case law, precedents and many
more. The statutory laws are the laws which are framed through a specific procedure of the state.
These laws were made by proper process of legislation of the state.
CRITICAL EVALUTION OF DIFFERENT TYPES OF BUSINESS ORGANISATION
Making up a corporate from being a LLP, Sole trader or PLC, this is not as easy as it
looks. An individual have to invest their money and time more than they have imagined for
making a business successful and needs many investments of various type of people and many
type of time management(Gibson‐Moore, and Spiro, 2021). This results in growth of business
which will not be possible for each individual as this need many tactics and skills for understand
in depth corporate world so that owner of an enterprise will easily survive in business
environment and increase their profit in their industry, but they have to be ready in a calculative
way for managing their profits and losses.
IMPACT OF THE LAW IN BUSINESS
The laws of United Kingdom were applicable on each part of business and every
enterprise, each of them have to face legal obligations and rules for their business organisation to
run smoothly and the effects of relation between employee and employer affects everyone in a
company. These type of situation were handle by business laws. Make sure that the business
meet all legal requirement, so the business can grow and get protected from any expensive
mistake.
Impact on company: In case of business generates revenue on gains there are some legal
obligations which affect business by Tax given to government, this totally depends on the
structure of a company. Within establishment of 3 months a sole trader have to register himself
with HMRC, in case of failure for registering happens then the fine of 100 pound have to be
implemented to sole trader and registering the company completing annual self assessment test is
mandatory required and pay the taxes which were due(Grajzl, and Murrell, 2022). In limited
company there are many requirements for the company, the business have to get registered with
the companies house, in this all the directors along with significant influencer of a business are
also registered. They have to submit annual tax return to HMRC and payment of all the corporate
tax is mandatory.

Impact on Employment: According to the Employment act an enterprise have legal duties for
their employees through giving them minimum wages, liability insurance, pension and many
more. If there are some legal requirements a employer have to include in the business, if they
would be failing then the business will face a huge loss(Monkhouse, and Spiro, 2020). The
business have to be registered through an employer with HMRC before paying any worker of the
company. The legal obligation of a business is to make a check, that an worker have legal right
to work in United Kingdom or not. The employer have to pay their worker as according to the
National Minimum Wage mentioned form the government of United Kingdom which is 8.21
pound for the age of 25 and above. The employer have to give payslip to to their workers which
contains and show how much an employee have earned in period of pay scale after deductions
made for tax and insurance. Each and every employer have to give a written legal contract to
their worker which mentions their working hours, salary, duties of worker and contractual rights.
Impact on contract: The contracts basically affect the business due to any enterprise or
organisation, a contract is must to have before starting a business. Despite of facts that a business
sell a product or gives any service. The law of contract is involved in each situation of selling,
buying and resell of the good, there is a legal factor in which a contract is must. There is a
contract in every factor of business buyer or seller have contract, there is a contract between
employer and employee. The contract can be formed in oral or written form.
PART 2
TYPE OF BUSINESS ORGANISATION
Formation of a company is a process for registering the enterprise with Companies
House. A Companies House is a registrar for a company in United Kingdom, any individual can
register a company from completing an online application form. After process of registration, a
enterprise can enter in an contract with its own name or company have ownership of their assets.
 SOLE TRADER: As an business individual, a sole have to register with HM customs
and revenue to make a company and after registration with HMRC. The sole trader have
to give a self assessment tax return to wholly make a company in United Kingdom and
need to file tax return annually. The first step for becoming a sole trader is by choosing a
name and make sure that the name which is chosen that's not been used through any other
business organisation(Akhtar, 2020). If you do such thing then they can you from using

it. Keep this in mind, this worth registering the name in trade mark for preventing others
to use this name. A sole trader can trade under their own name, or come up with a name
which is suitable for business. If once the business name is used then make sure that the
business stationary display name of sole trader and the trading name of business. Make
sure that the name do not contain words which people find misleading or offensive.
 Limited Liability Partnership: There are some ways in which a limited company have
to be registered, an individual can register a company online without any approval of the
registration through Companies House and from a professional agent of company
registration or through sending post to Companies House directly through proposing
name of a company, address of office, details of directors, information of person
significant control, Article of association and memorandum of association. Everything
have to be there which have information list in proper manner to for an LLP. The limited
liability partnership is a separate legal entity from their members, who are liable for
amount of money they invested and any personal guarantee. The partnership is made at
Companies House and this can only used for profit making business. Partners have to
give a registered address of the business and maintain a register for members. There is no
restriction for maximum number of partners, but there must be two member for
incorporation, either for individual or limited companies(Scott-Patel, 2019). This is also
possible for setting up an LLP with including one person and a dormant company.
 Public Limited Company: Public Limited Company wants to have better capital for
assets and resources for a company. To form a public limited company, assets and capital
along with membership of Companies House as none of the business can take place in
UK without the registration from the Companies House. A public limited company can
be an listed or unlisted company. In UK, this company includes the words “public limited
company” at the end and as part of a legal company name.
BUSINESS ORGANISATION'S MANAGEMENT AND FUNDING:
There are various ways by which a business owner can manage the funds for their
organisation through which a company can grow in the market and raise its value and their
business by different types of steps and funding. Few of the ways through a company funds can
be managed in a business :

 SMALL BUSINESS GRANT has been provided by the government of UK with the
local authorities and private organisation through which they provide funding and grant
opportunities to small business owners which is available for new companies or the
existing one to help them grow their business in the market.
 CAPITAL REQUIREMENT of a company is a basic form to regularize the investment
in the business. Company needs to make a estimate amount in regard to the capital
requirements of the company which will help the business to run in an organised manner
through which making profits for the organisation would be in a solitary process to
manage the business transactions.
 CAPTITAL COMPOSITION has to be made by the company once the requirements of
the company has been settled down to determine the short and long term debt equity
analysis which helps the business for processing the additional funds which has to be
raised by the outside parties to their company(Jalili, and Azizollahi, 2020).
 CROWDFUNDING gives a platform where a company can raise the funds by numbers
of investments from individual investors and purchasers. Company can give an equity in
exchange of the investment or it can provide the grants and rewards to the investors in
exchange of their capital that would lead to more investments for the company to run a
business with more capital funding.
 VENTURE CAPITALS invest the capital into start ups and growing business with a
tremendous high risk which often results in as a great potential for raising the
organisation. They offer a vast capital with knowledge and take a huge risk which make
them expect a considerable rewards returns and make sure that the organisation have a
strong business plan for the investment who are helping in an economic growth in a area
or nationwide.
 MERCHANT CASH ADVANCE is a finance through which companies gets their
funding in exchange for a percentage of the daily credit card Income though it is only for
the companies who take their majority sale through credit cards and MCA will provide
the funds in advance , based on average monthly sales taken by the card. Through that
report company will generate the total credit income they have to get and MCA will
release the amount to the company.

 FINANCIAL CONTROL creates a security for the company to invest their capitals in a
smart way by controlling the finances and utilize the funds of the company in an
appropriate way which helps the company tiation it completely depends on the particular
situation of the dispute of the parties(Twigg-Flesner, 2022). There are different modules
in UK laws which in few situation it can give the best resolving mechanism for any
dispute or conflict between the parties.
APPOINTMENT OF DIRECTORS :
A company must have one natural person as a director who plays one of the vital roles in
the business of the organisation and there are few steps that needs to get completed while
appointing the directors of the company through the board meeting. Approval of board of
directors is necessary to appoint a new director and that can be approved by the simple majority
votes at a board meeting. Few companies even ask the shareholders for the approval of directing
a new director in the general meeting.
The new director needs to sign the appointment of letter to be appointed in that position
that gives the confirmation of the consent for acting as the director of the company. After the
consent of the board of directors and signing the appointment letter it is majorly required to
report the appointment with the Companies House within the 14 days of the appointment. The
legal requirement to have the written document containing the terms of the employment which
basically is the contract of the employment(MacQueen, 2022) .
APPOINTMENT OF SECRATARY :
A secretary can be appointed by the board of directors or by the member of the board as
well by giving the consent to act means giving an agreement to work as an secretary for the
company and afterwards company should inform the Companies house and inform them about
the appointment as soon as the secretary gets the appointment which shall include the basic
informations about date of appointment , service and residential address , signature etc.

ROLE OF SHAREHOLDERS :
Shareholders can also be known as the financial support of the company by purchasing
shares of the company and they specific rights and responsibilities to perform as per the
Companies Act 2006. Certain decisions of the company can only be made by the shareholders
like changing the name of the company , authorising the service contract for the director or
removing the director from the company(Cowling, and Liu, 2021). The key responsibility of a
shareholders is to attend the general and annual general meetings of the company for passing the
resolution which are ordinary and special resolution.
LEGAL SOLUTIONS TO RESOLVE AREAS OF DISPUTE :
CASE 1
FACTS :
Gordon is a salesman at Orange computer Ltd. Store. Apart from his salary which is
£10,000 he takes 9% of the commission on every computer he sells the estimated amount of that
commission is £11,000 per annum. Fred is the manager who asked Gordon if he would forgo his
salary of 2015 2016 and 2017 and just accept the commission because of the loss in the
business , Gordon accepted the contract. In 2016 business has managed to make its way through
difficult times and started to make a healthy profit and now he should receive his wages for
2017.
ISSUE :
Whether Gordon can claim for the wages of 2015 and 2016 for which he agreed not to accept ?
LEGAL SOLUTION :
For the betterment of both parties Negotiation would be an appropriate solution for the
situation Gordon and his manager Fred are into because as going with the process of Negotiation
they both can come to an conclusion of resolving their issue of the wages as it is a most flexible