Business Law Report: An Overview of Legal Aspects for New Businesses

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BUSINESS LAW
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Contents
INTRODUCTION...........................................................................................................................3
LO1 NATURE OF LEGAL SYSTEM............................................................................................4
P1 A DIFFERENT SOURCE OF LAW......................................................................................4
P2 PROCESS OF LAWMAKING..............................................................................................6
LO2 SOME POTENTIAL IMPACT OF THE LAW IN THE BUSINESS....................................7
P3 HOW DOES THE COMPANY, EMPLOYEE AND CONTRACT LAW AFFECT THE
BUSINESS..................................................................................................................................7
LO3 DIFFERENT TYPE OF BUSINESS ORGANIZATION.......................................................9
P4 SOME OF THE DIFFERENT TYPE OF BUSINESS ORGANIZATION WHICH IS
LEGALLY FORM.......................................................................................................................9
P5 HOW BUSINESS ORGANIZATION MANAGED AND FUNDED.................................12
LO4 LEGAL SOLUTION TO RESOLVE ARE OF DISPUTES.................................................15
P6 ALTERNATIVE DISPUTE RESOLUTION.......................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
All the business law will identify with the help of business law report. In this report, all the
different types of topics are handled they are like nature and law of the law in the business and
many more (Beatty et al., 2018). On the other hand, they will also manage the different type of
business activity held in the organization. Business laws also govern some of the business
operations. This is the branch of the civil law and they will also try to solve all the issues of the
private and the public law of the organization (Beatty et al., 2018).
Most of the time the business law is also called as commercial law and it will basically refer to
the law that is governed by the government to deal between the people and commercial matters.
In business law, there are two different distinct areas (Beatty et al., 2018). With the help of
business law business will get help from preventing some problems that will harm the business
or cause any legal disputes in the business.
As a senior legal advisor in Trainee Legal Practitioner in a Central London based law firm called
Hardy and Morrison’s Solicitors, some of the advice is also explained which is basically related
with the new startup companies in the legal system (Beatty et al., 2018). In this assignment, the
senior manager gives a task to prepare a handbook for the latest company that advice and give
some of the guidance related to the business law. Some of the nature of the legal system will also
be explained in this assignment (Beatty et al., 2018). On the other hand, some of the lawful
impacts will also explain. With the help of business law, some different type of business
organization will also identify. The business laws also help to identify the different type of issues
and conflict held in the organization when all the employees are working (Beatty et al., 2018).
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LO1 NATURE OF LEGAL SYSTEM
CONSTITUTION OF THE LEGAL SYSTEM
The legal system is basically defined as some of the administration in a particular country which
will not take any type of written constitution. And in this some of the custom which will
implement by the law which is based on some traditional practices (Beatty et al., 2018). On the
other hand, some of the basic principles are explained in the civil or other different code of laws.
P1 A DIFFERENT SOURCE OF LAW
There are many different types of law in business. Different type of law will help all the groups
within the society that are safe by the inventing new laws (Beatty et al., 2018). With the help of
inventing new law in the business, they will maintain some of the order of the society who will
solve all the problems by inventing some standard (Beatty et al., 2018). There are five sources of
law in the UK that are constitutional law, statutory law, treaties, administrative regulations, and
the common law. The structure of the society is handling by some most important function. The
court of law or justice always tries to identify some legal rules (Beatty et al., 2018).
SOURCE OF LAW
LEGISLATION
The legislation is the law which is basically invented by the legislation or another different
governing body. On the other hand, legislation law is defined as a different type of source of law
which will consist of the announcement of some legal rules by some of the competent authority.
Legislation has a different type of purpose that is they try to regulate, to authorize or to restrict
(Beatty et al., 2018).
Most of the time legislation member proposed the legislation. On the other hand, legislation is
noticed as one of the three important functions of the government. Different legislation has a
different motive like some of them wants to provide some funds to grant and to authorize and
many more (Beatty et al., 2018). On the other hand, this is analyzed that this type of law is
basically for a different type of statutes. This is one of the primary sources of law and this will
not generate any type of issues with the different law. Here are some examples of the legislation
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are Equality act 2010 – No discrimination based on color, gender, ethnicity, sexual orientation,
Minimum Wage act 1998, Health and Safety at work act 1974 (Beatty et al., 2018).
COMMON LAW
Common law is basically built by the judges as compared to the parliament. Common law is the
body of the unwritten laws which is basically based on the legal precedent that was established
by the court (Bell et al., 2018). Most of the time the common law influence the decision-making
process in unusual cases where some of the outcomes will not be identified.
Most of the time common law is used to prefer the law that will develop with the help of
decision making. For many different types of a legal concept, the common law provides some of
the contextual backgrounds (Bell et al., 2018).
EUROPEAN UNION LAW
This law is basically a system of law that was operating within the member state of the European
Union. The European Union has some of the political institutions and social and some economic
policies. This law is divided into primary and secondary (Bell et al., 2018). On the other hand,
this is basically based on the rule of law. This means that each and every action is taken by this
law and this will approved by the member of the organization (Bell et al., 2018).
EQUITY LAW
Equity law is basically derived from the common law. Equity law is derived from old English
common law when courts used their discretion to apply justice in accordance with natural law.
Equity law supersedes common law and statute law when there is a conflict between the two and
neither can appropriately bring the correct verdict (Bell et al., 2018).
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P2 PROCESS OF LAWMAKING
Common law and the statutory law are different from each other because they are basically based
on the precedent. Most of the time statutory law is a more formal body of the legal system
because they basically consist of the written legislation (Bell et al., 2018). On the other hand, all
this legislation is based on some of the rules and regulation that are prohibiting some of the
specific behavior of normal people.
Common law is basically built by the judges as compared to the parliament. Common law is the
body of the unwritten laws which is basically based on the legal precedent that was established
by the court (Bell et al., 2018). Most of the time the common law influence the decision-making
process in unusual cases where some of the outcomes will not be identified.
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LO2 SOME POTENTIAL IMPACT OF THE LAW IN THE BUSINESS
P3 HOW DOES THE COMPANY, EMPLOYEE AND CONTRACT LAW AFFECT THE
BUSINESS
On a regular basis, this is notice that the government of the nation is changing some rules and
regulation for the betterment of the business. Through this, this is finding that the company is up
to date with all the government law (Bell et al., 2018). This is simply analyses that if the
changing in the government law occurs then the way of business operations will also change.
Taxation policy is one of the government policies which will affect the business highly (Bell et
al., 2018).
COMPANY LAW AFFECTS THE BUSINESS
This is notice that company law is creating some of the specific entity. This is basically taken as
of its own. There are some rules and regulation around all these laws so this is called the
business law (Capra and Mattei 2015). With the help of all these rule and regulation, the
company can easily create some wealth with the help of the requirement of the capital and
corporate governance. On the other hand, business is one of the important parts of life; there
must be some different type of rules and regulation for conducting its functions with disciplined
manner (Capra and Mattei 2015).
The best example of the company law which wills a positive impact in the organization is
companies Act 2006. Companies’ act 2006 is one of the most important parts of the legislation
which will basically govern by the company law in the UK (Capra and Mattei 2015).
EMPLOYEE LAW AFFECTS THE BUSINESS
In the employment law, there is a hiring process which is basically included when the company
is taking an interview with the people. The interviews keep asking some different type of
question so that on the basis of that question they will easily hire the person (Capra and Mattei
2015). With the help of this, the labeled employee or some firm contractor different will
explained. Employment law plays a very important role because through this the firing and the
job losses are occurring. With the help of employment law, some specific protection will get
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during the layoff, terminate and some different type of issues that will affect the unemployed
person (Capra and Mattei 2015).
Most of the time emplacement law affects each and every working aspect. With the help of
employment law, the emplacement of the organization will get more help related to hiring,
wages, and benefits, etc (Capra and Mattei 2015). this is most important that employee must
have knowledge about the employment law and how this will affect their workplace. For the
protection of the employee, there is much different type of employment rights and employment
rule and regulation in the organization (Capra and Mattei 2015).
Example of the employment law which affects the business is through The Equality Act 2010 in
this some people of the wider society are legally protected from the discrimination in the
workplace (Capra and Mattei 2015). With the help of a single act, it will replace the anti-
discrimination laws. It will set in various ways in society.
CONTRACT LAW AFFECTS THE BUSINESS
With the help of contract law, the entire jurisdiction was decreased and they will also decrease
some principle for regulating the enforcement and the working pattern of the contract. Toward
the law, this approach will affect the business (Folberg et al., 2016). On the other hand, all these
types of approaches are basically fully depended on the common law.
Example of the contract law is Unfair Contract Terms Act 1977 this is basically an act which will
regulate some of the contracts by banned the operation and some legality of some contract term
(Folberg et al., 2016).
COMPETITION LAW AFFECTS THE BUSINESSES
The completion law will affect positively in the business organization. This will affect positively
because with the help of this the business culture will maintain the competition in the market
through this the business will improve there a working pattern. And this will also help to remain
stronger in the competition field (Folberg et al., 2016).
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LO3 DIFFERENT TYPE OF BUSINESS ORGANIZATION
P4 SOME OF THE DIFFERENT TYPE OF BUSINESS ORGANIZATION WHICH IS
LEGALLY FORM
There is a different type of business organization like sole proprietorship, partnership,
corporation, Limited liability companies, and Cooperative Society (Folberg et al., 2016). With
all these different types of organization, the organization will easily be influenced by some of the
tax problems, some legal issues or many more. The reason behind all this type of organization is
making some of the normal impression of the business organization (Folberg et al., 2016).
SOLE PROPRIETORSHIP
A sole proprietorship means that individual person is doing some business. In the UK there are
different types of Sole Proprietorship. This type of business is basically owned by a single
individual person (Hannigan, 2018). In this, the business is also operated by the individual. They
have a separate entity and they will operate by the single and individual person. They are the
only person who was responsible for their profit of any loss (Hannigan, 2018).
In this, the owners of the company face many different types of liability. This type of firm is
basically adopted by small business entities. They have much different type of benefits like it
will easy to form and pack up (Hannigan, 2018). The sole proprietorship can easily take a
decision without consulting with anyone and they will also promote some of the action in the
organization. On the other hand, they have only some limited resource and unlimited liability
(Hannigan, 2018).
PARTNERSHIP
A partnership business is owned by two or more than two people who will give an equal
contribution to the organization. If in the partnership the business will suffer some law then it
will be equally divided with all the partners (Hannigan, 2018). On the other hand, the partner
will also share the organization profit with each other. On the basis of the normal partnership, all
the partnership have unlimited liability in the organization (Hannigan, 2018).
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FIGURE 1 TYPE OF PARTNERSHIP
[SOURCE: Hannigan, 2018]
Here are some of the benefits of the partnership in the organization that is a partner will easily
form the business. If the organization is facing any type of issues then that risk will share with
each other (Hannigan, 2018). On the other hand, there are some of the limitations in the
partnership that is they have unlimited liability and some limited capita (Hannigan, 2018)l. Due
to the partnership, there is more chance of the conflict between the partners in the organization.
The reason for the conflict is because different people have a different point of view that will
create more issues in the organization and this will impact negatively in the business (Hannigan,
2018).
CORPORATION
The corporation is basically business organizations that have a separate legal entity from its
manager in the organization. Share of the stock is represented by the stock corporation (Koulu,
2016). the stock holer that the owner of the organization will enjoy the limited liability but on the
other hand they have some limited involvement in the company operation. Some of the different
types of activity incorporation are handling by the board of director of the company (Koulu,
2016).
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LIMITED LIABILITY COMPANY
Limited Liability Company is not incorporated so this is not focused as a corporation. The owner
of the organization is enjoining some of the limited liability just like in a corporation. on the
other hand, limited source means that they don't have that much amount of money to recover
from the existing assets of the business (Koulu, 2016).
COOPERATIVE
Corporative society means that the society which has some of its objectives for the promotion of
economic interest. Groups of individual are owned by business organizations that are corporative
(Koulu, 2016). On the other hand, a group of person is called a member. There are many
different types of Cooperative Society like Consumers, Producer’s, Marketing Cooperative
Societies, Housing Cooperative Societies, Farming Cooperative Societies and Credit Cooperative
Societies (Koulu, 2016).
They have much different type of benefits like it will also easy to form just like the partnership.
They have limited liability and open membership. And on the other hand, they have a limited
capital, lack of managerial expertise in the organization (Koulu, 2016). And they are less
motivated due to this they have to face many problems related to the production of the product.
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