Business Law: Sources of Law, Impacts, and Organizations Report

This report provides an introduction to business law, discussing its sources, including legislation, common law, and EU law. It examines the government's role in law-making and the application of statutory and common laws in courts. The report analyzes the impact of company, employment, and contract law on businesses, with examples. It further explores different types of business organizations like sole proprietorships, partnerships, and corporations, and how businesses are managed and funded through equity capital and liquidated capital. The report also provides legal solutions for resolving disputes in various case scenarios, such as employment contract breaches and contract disputes.

Business Law

Introduction
Business is an activity which is conducted by the individual in order to get profitability by selling
their goods and services to their targeted customers. Business law is also called as Commercial law
which is formed to protect the rights and liabilities of the companies and their customers so that no one
can breach the interest of another (Andrina, 2017). The legislature has formed variety of laws to
safeguards the rights of every individual and also for the smooth working of the business enterprises. It
includes laws relating to contracts, hiring and firing of the employees, getting minimum wages of
workforce, consumer laws and many other laws. These all issues are under the head of civil courts. This
report is being discussed about the different sources of laws and the major role of the government in
formulating the laws which are applied by the court of justice. Further, the impacts on the business
relates to company laws, employment and contract law. Moreover, the report is being talked about the
formation of variety of business organization, how they are managed and from where they generate
their funds for smooth working. Lastly, there are some recommendations which are made to resolve the
issues.
Main Body
P1 What are the different sources of law?
The source of law refers to the source of rain are the powerful seat from which the law
gets it's validity. The legal system of United Kingdom has four major principles to constitution
the law. There is no single document which talks about the whole law of the nation (Eberlein,
2019). The laws are formulated to protect the rights of one person from another. The major
principal sources are discussed below:
Legislation: when the law is been created by the Legislature it is called as law of
legislation. In this the house of parliament uses to give their consent about the laws then only
they are enforceable. The UK Parliament consists of house of commons and house of Lords.
Common law: The English legal systems consider decision of the senior most senior-
most courts as the part of their law. In this the judges have power to make laws by providing
judgment in their pleadings. This empowers the judges to make laws so that they can easily
provide justice to the parties. It is an most easy way to formulate law in the country (Gaillard,

2017). The apex court of appeal is heard by the supreme court which is the highest court in UK.
This court hears all the matters to provide justice to the general public. The court can decide on
the basis of simple majority or unaimity.
European Union law: United Kingdom is the member of European Union. This means
that the law of the European Union takes precedence over the law of the United Kingdom. When
the question of law is under the dispute and is regulated by both local laws and European Union
laws then the court will consider European Union laws. It is just because the UK is the member
state of European Union Territories.
The European convention on human rights: UK is the member state of Council of Europe
where the state has signed to the European convention of human rights that was affected from
October, 2000. This convention gives power to the courts to exercise their jurisdiction and
protect the rights related to human rights which are identified in the European convention on
human rights.
P2 What are the role of government in making loss and how statutory and
common laws are applied in the courts?
The government of United Kingdom plays an important role in making laws which helps
them in smooth functioning of the nation (Hidayat and Van Klinken, 2018). As the government
is responsible to determine the strategies how the country will run and manages different things.
The government used to decide the criteria of the tax and where to spend that public money e in
order to provide best services to their citizens. The government used to delegate their powers to
the institutions where these institutions are used to work on behalf of the government and also
represent the government Global areas. It is important for the government to formulate the laws
as first there will be the proposal for a bill where both the house of parliament give their consent
on the described proportionate, further there will be the detailed discussion upon the subject
matter of bill then the government will formulate thee laws accordingly. The judicial organ is
different from executive and legislative organs. The series of magistrate and constituted tribunals
will make laws on their judgments. The main function of the judiciary is to provide justice to the
aggrieved persona and punish the guilty one without any bias. They are treated as the guardian of
the constitution as they work according to the laws which are mentioned in the constitution.

Decision making power is been given by the constitution where it gives an validity of their
judgments to them.
P3 How company, employment and contract law has an impact upon the
business. Give example.
Contract law refers to the concept where parties come together to form an agreement
where the create some legal rights and obligations upon each other (Marcacci, 2017). It is purely
personal in its nature enforceable only when the party is in default. It affects the business as the
business practices on either providing a service or products. The contract helps in determining
the terms and conditions so that the business enterprises can regulate their business in an
effective manner. The contract law helps the business in their operations in an appropriate
manner so that they can attain their goals in an efficient ways. It is usually on be all and all of all
all the transactions and which the companies enter into. For example XYZ company has came
into an agreement related to selling of their products, where the buyer has failed to provide
agreed consideration on time which resulted in the breach of contract.
Competition law: it is the law Bhojpuri events the market distortion caused by the anti
competitive practices in the competitive market. The purpose of this law student sure fair
practices for or both consumers and producers. The act prohibits the an article practices which
are designed by the companies in order to gain more revenue from the market. The effect of
these kinds of practices is on the small companies to enter into the market. The impact of this
law on the business is that companies have to formulate their working by keeping and laws
related to competition. They should not conduct any anti competitive practices which are
prohibited by the law in order to success in their business. For example the company has
conducted unfair trade practices in order to enhance their sale.
Data protection: the laws related to data protection must be followed by the business
enterprises in order to protect the data of their employees and customers. It is for the purpose of
securing their operations so that the other competitive companies will not take it. Protecting the
data is an ethical value the company has to perform (Naz, 2018). The failure to handle the data
will have a harmful effect on the people which leads to the loss of trust on the products and
services of the organisation. For example when the company has failed in protecting the data of
their employees which resulted in infringement of the right of privacy.

P4 different types of business organisations which are legally formed.
There are different types of business organisation which are discussed below:
Sole proprietorship: it is the kind of a company which is owned and operated by the
single entity. The sole proprietor used to carry out all the business functions by himself. Where
he has invested his capital and discuss and is so lonely responsible for the liability. There is one
man control with undivided risk and liabilities.
Partnership forms a business enterprise where two or more persons join hands together to
attend the common goal of their firm. All the partners use to contribute there is skills and capital
in the firm so that they can avail the specialization which enhances their growth in the market
(Pan, Zhang and Qin, 2018). They can come under the contract will relation with the help of
written or oral agreement where they decide the ratio of their profit and losses.
Private company: it is the company having a minimum paid up share capital and higher
paid up share capital as described by the government. These kinds of company have a restriction
on transferring their shares to the other person. The members of the company have a limited
liability which can be extended to the paid up capital on the shares which are held by them.
Public limited company: It is company which is incorporated under the Companies Act
where they are allowed to transfer their shares freely find having the largest number of
shareholders. There is their capital from the public by issuing their equity Dept or other forms of
Financing domestic or International funding system.
P5 how business are managed and funded?
There are several strategies which are used by every business organization in order to
manage their operations to enhance their profitability. The company manages their affairs by
appointing the directors which helps in managing the whole operations of the company. They
can also manage the affairs with the help of company secretary, auditors so that they can help the
enterprise to manage their functions in more effective manner. The major role in the company is
played by the stake holders where they use to invest their money by becoming owner of the
shares of the organization (Plump and LaRosa, 2017). The company use to provide financial
backing in return to potential dividends to their shareholders.

The company of a needs to raise their funds or capitals so that they can expand their
business into new market or locations. This can be done by investment of research and
development in the existing trends which are present in competitive market (Tan, 2017). This
leads to the business organisation to aim on their growth and hence the external investors in the
company. Some of the sources of funds which are available to all firms are as follows:
Equity capital: the company use to raise their capital by selling their shares to the
investors which are called as stockholders (Payne and Petrenko, 2019). This method is beneficial
for the investors as they do not require making interest payments like bondholders.
Liquidated capital : it is the mode of capital where the company can convert their assets
into cash or equivalent to cash by selling them in the market. It occurs when the investors close
their positions in an asset. It mostly happens when an investor or portfolio manager need cash
urgently to reallocate funds or to rebalance a portfolio of the enterprise.
P6 what are the legal solutions for resolving a range of disputes in the
different case scenarios.
Case scenario 1: the major legal point in the case of Gordon is under and Employment
contract with orange computers Limited Store. Where the has agreed upon the salary and the
amount of commission which will be given to Gordon but the company failed to pay his wages
in the year of 2015 and 2016 due to cut throat competition in the local market (Tajti, 2018).
Gordon has an right to claim his wages from 2015 and 2016 and also has the right to get
sufficient profit to repay this money. For this the appropriate legal solution in this problem is
alternative dispute resolution where the parties can go out of the court to settle their disputes. It is
beneficial for Gordon to adopt this method as it is less costly for both the parties and the decision
of the tribunals are beneficial for both of them.
Case scenario 2: in this Janetdecided to purchase and install the internet package from
Virgin Media. While installing the device there was no telephone point on the switch board so so
the company suggested Janet that the engineer come and complete the task but the engineer fails
to come after making so many calls and e-mails. Due to which the engineer came and install the
device after the three weeks. The company has issued the bill of that tenure also which makes
Janet more upset as he was not even used the services and the company is asked to pay charges
on it. On this point the Janet can knock the doors of the consumer court where he can plead that

without providing any services to their customers the company is charging there price. The most
suitable for the customer to protect their rights from unfair trade practices of company is
consumer court. After this, Janet can also go to the alternative dispute resolution where the
tribunals can solve their dispute in an quick manner at lower cost.
Case scenario 3: In this case scenario blackhorse Limited is in security company which is
providing security guards to other organisation. Due to the heavy loss in the cash flow of
company (Zeng, J.S., 2019). The enterprise is decided to wind up there company and filled in
petition before The Honorable Court. Indian legal advice the client can avoid this compulsory
winding up by paying back the amount of debts to their persons which helps them to withdraw
the petition of winding up. They can also take loan from the appropriate banks in order to to save
their company from winding up.
Confusion
From the above report it can be concluded that, there are primary and secondary sources
of law which helps the Legislature to formulate the different laws in order to maintain the peace
and security in state. The government also plays an important role in making the laws and there
is statutory applied by the judges. The the employment and contract law have any positive
impact on the business as it protects them from unfair trade practices and also rights of the
employees which helps them in motivating them to resulted in growth of the business
organisation. Further, report is being discussed about the different organisation of business and
how they used to manage and funded. Lastly the three case scenarios are discussed and which
can be used in order to resolve them.

References
Books and Journal
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Cases due to Measures to Protect the Environmental and Public Health. European
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Eberlein, B., 2019. Who fills the global governance gap? Rethinking the roles of business and
government in global governance. Organization Studies, 40(8), pp.1125-1145.
Gaillard, N.J., 2017. Credible sovereign ratings: Beyond statistics and regulations. European
Business Law Review, 28(1).
Hidayat, S. and Van Klinken, G., 2018. Provincial business and politics. In State of
Authority (pp. 149-162). Cornell University Press.
Marcacci, A., 2017. European regulatory private law going global? The case of product
governance. European business organization law review, 18(2), pp.305-332.
Naz, R., 2018. Efficacy of corporate social responsibility in corporate governance structures of
family owned business groups in India. Corporate Governance and Organizational
Behavior Review, 2(1), pp.52-68.
Pan, B., Zhang, G. and Qin, X., 2018, April. Design and realization of an ETL method in
business intelligence project. In 2018 IEEE 3rd International Conference on Cloud
Computing and Big Data Analysis (ICCCBDA) (pp. 275-279). IEEE.
Payne, G.T. and Petrenko, O.V., 2019. Agency theory in business and management research.
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Plump, C.M. and LaRosa, J., 2017. Using Kahoot! in the classroom to create engagement and
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Tajti, T., 2018. Bankruptcy stigma and the second chance policy: the impact of bankruptcy
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Tan, C., 2017. Risky business: political risk insurance and the law and governance of natural
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