Business Law Report: Legal System, Business Structures, and Disputes

This report provides a comprehensive overview of business law, encompassing various aspects of the English legal system. It begins by exploring the primary and secondary sources of law, including case law, legislation, and EU law, and discusses the role of government in law-making, differentiating between statutory and common law. The report then delves into the impact of company, employment, and contract law on businesses, using specific examples to illustrate these effects. It examines different types of business organizations, evaluating their advantages and disadvantages. Furthermore, the report addresses legal solutions for resolving disputes, comparing and contrasting different sources of legal advice and support. Overall, the report offers a critical evaluation of the legal system and various types of business organizations, providing valuable insights into the practical application of business law.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Provide different sources of law...........................................................................................1
P2. The role of government in law making and the application of statutory and common law. 2
M1. Evaluate the effectiveness of the legal system....................................................................3
TASK 2............................................................................................................................................3
P3. Using specific examples, illustrate impact of company, employment and contract law
upon business..............................................................................................................................3
M2. Differentiate between legislation, regulations and standards..............................................6
D1. Coherent and critical evaluation of the legal system and law..............................................6
TASK 3 ...........................................................................................................................................7
P4. Different types of business....................................................................................................7
P5. Management and funding of business organisations............................................................7
M3. Advantages and disadvantages of formation of different types of business organisations. 8
D2. Critical review and evaluate types of business organisations..............................................9
TASK 4............................................................................................................................................9
P6. Legal solutions for resolving a range of disputes.................................................................9
M4. & D3. Compare and contrast different sources of legal advice and support for dispute
resolution...................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Law is an important part of a country which helps in regulating the activities of people. A
legal system is mainly divided into numerous laws such as civil and criminal law. Business law
is a part of civil law which are applicable on the commercial transactions of the organisations.
There are different kinds of provisions which are applicable from the beginning of operations
and continue to apply until the entity is wound up (Clarkson and Miller, 2020). Various kinds of
legislations have been enacted by the government in order to protect the parties i.e. stakeholders
involved in business venture. This report comprise of two sections which include different
sources of law in English legal system, different types of businesses along with their critical
evaluation and assessment of advantages and disadvantages. Furthermore, legal solutions for
disputes are also covered.
TASK 1
P1. Provide different sources of law
English legal system is applicable to England and Wales which comprises of different
judiciary systems such as civil and criminal law. Furthermore, the constitution of UK is partially
written for which numerous legislations have been enacted by the government (Elliott and
Quinn, 2016). The knowledge of law can be gathered through the sources that are available in a
country. There are two kinds of sources such as:
Primary sources: These contain information which are fresh and new and authentic data
can be extracted from these sources. Some of the primary sources for UK legal system have been
elaborated below:
 Case law- In this source, the case laws held in past are considered as the base for making
judgements in the present cases. This is known as doctrine of judicial precedent which
provides that earlier cases which have similar situations with that of present cases.
 Legislations- UK has legislative bodies viz. House of Commons and House of Lords
who provide bills in the parliament for their enactment in the country through bill passing
procedure. These are treated as the foundation as these legal provisions govern the
conduct of people living in the country.
 EU law- There is a commission called EU which provides directives for carrying the
activities by the countries who are members of the EU. The member countries have to
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follow the directives for the conduct of the transactions from one nation to another which
are within the Europe.
Secondary sources: The sources are completely opposite to the primary sources as they
are the interpreted form of the first hand information. Authors, scholars etc. use them and modify
them by making changes. Secondary sources for law are as follows:
 Legal encyclopaedias- Many legal encyclopaedias are there in the world which can be
considered for obtaining information about the legal provisions which are applicable.
Halsbury's Legal encyclopaedia is the authentic source for law (Andrews, 2016).
 Parliamentary and non-parliamentary publications- There are debates of both the
houses which highlight the main points of the bills to be presented in the parliament.
Furthermore, reports are prepared and uploaded on official websites of various
departments of the government. These can be used for additional information.
 Law commission- A commission was formed by UK government with the
responsibilities of overlooking the whole legal system in order to assess the
implementation of existing laws. Furthermore, if there are is requirement of making new
laws, this is also suggested in the report.
 Law journal- There is journal which is beneficial for the students studying law. They
can take the help of such journals for better practice at courts. These are published at a
fixed time period which provide amendments that should be considered in the
implementation of the law.
 Textbooks- These are very easy to understand which can help students and other
individuals in determining information about laws. The language put in the books are
helpful in making a layman fathom actual meaning of the law.
P2. The role of government in law making and the application of statutory and common law
The role of government cannot be ignored as their interference is significant in shaping
the legal system of a country. Roles in law making have been mentioned underneath:
Executive role- This role is specifically for the administration and execution of the laws
that are implemented by the government. This role comprise of various cabinet ministers, the
queen and prime minister of the country (Hudson, 2014).
Legislative role- Every country needs laws for governing the activities of the individuals
who are living in there. House of Commons and House of Lords are the member of Parliament
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who have the authority to present the bills in in the parliament for their transformation into the
acts.
There are a bill passing procedure which is followed in the Parliament for every bill
presented therein. This has been shown below:
First reading- In this stage, the whole process begins whereby the a draft bill is presented
in the parliament for discussing on it.
Second reading- This stage comprise of amendments for increasing the effectiveness of
the draft bill. Some addition or deletion is done to make the bill suitable. It is done through the
voting.
Committee stage- In this stage, a detail examination of the bill is carried by House of
Commons for analysing the scope of improvements in the way of amendments. A report is
prepared and displayed to the wider public and other interested parties.
Report stage- On the basis of the report so prepared, further voting is done by the Houses
(Leyland, 2016).
Third reading- In this stage, the bill is re-presented to the House for a short debate. It is
the deciding stage for sending the bill to the next level.
Royal assent- This stage ends the closure to the whole process after obtaining the
signature of the queen on the bill. From this day, it becomes a law which is implemented
throughout the country.
Judiciary role- This is the last role which focuses on determining the ascertaining the
number of courts present in the country so that cases are resolved within the time. The people not
covered above are included in this to look after the working of judiciary system in the country.
Application of common and statutory laws are important for governing the activities of
the country. These have been explained below:
Common law- This law is based on unwritten laws which are mainly developed by
following the doctrine of judicial precedent. It is also known as case law which as there is no
addition of new law. The previous judgements are considered for making the decisions in the
current case laws. These can be easily amended as there is no such hard and fast rule and
provisions. These are not available in written form and the judgements passed by the judged
become new laws that are implemented on their areas.
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Statutory law- These are called as the basis for the whole legal system. The people who
are included in the government have the authority to pass the laws (Gluck, O'Connell and Po,
2015). It can be implemented by state government as well as federal government. Every citizen
has to comply with statutory laws as they govern the activities of them. These also help in
finding suitable judgement by which cases can be resolved. It is also known as legislation which
are enforced by legislative bodies. The existing laws can be amended by a separate statute.
M1. Evaluate the effectiveness of the legal system
Legal system works on many different principles which are useful in measuring the
effectiveness of it. UK's legal system lacks in maintaining consistency because there are many
acts which require amendments but there is no such changes made in them. This cause issues in
effective implementation of the laws so that appropriate judgements can be made. However, the
decision making process of the whole system is good enough to make the legal system works
without much problems (Leyland, 2016). Also, the distinct roles of government are helpful in
managing and administering all the activities. This in a way can enhance the effectiveness of UK
legal system.
TASK 2
P3. Using specific examples, illustrate impact of company, employment and contract law upon
business
Company Law-
A company is a type of entities which should be incorporated by complying with the
laws mentioned in the Companies Act, 2006. The provisions which are mentioned in this act are
related to the formation of a business in the form of a company. These are followed till the
dissolution of the business. Furthermore, there are punishment provided for any contravention
and offences committed by the company or any its members (Steinfeld and et. al. 2014).
Impact of company law on businesses
By abiding by the laws which are provided by the Companies Act, 2006 help the business
to be on track legally. This ensure that commercial activities are according to the provisions of
the act.
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Employment Law-
This law is applicable in every organisation irrespective of its nature, size, industry etc.
According to the provisions of employment law, there are certain rights which should be given to
every person working in the company. Furthermore, such laws also provide minimum criteria
which should be maintained by the employers for giving suitable and comfortable working
conditions.
Importance of Employment law
Employment laws are enacted to protect the workers from any wrongful or illegal
activities. There is a minimum pay which should be given to the employees. Along with this,
leaves such as maternity, paternity, paid etc. are also given (Mohamed, 2014). These laws are
also beneficial, if there is any action taken by the employer against the employee, then
negotiation followed by law suit can be done. Apart from this, personnel are protected against
events of discrimination.
Impact of Employment law on businesses
The laws related to employment helps a business survive for a long time by retaining the
employees who are skilled and eligible. In this way, employees can work in the company with
high satisfaction.
Types of employment laws
Employment Act, 2002- This act has been enacted for providing rules related to
maternity, paternity and adoption leave. Also, the amount to be paid to the employees is covered.
There are provisions which should be followed by the employers (McKendrick, 2014).
Employment Rights Act, 1996- This act has been passed by the Parliament of UK to
give individual rights to people working in the organisation. There may be some circumstances
such as unfair dismissal, discrimination, etc. which should be avoided by the entities.
Equality Act, 2010- This act provides the factors on the basis of which no discrimination
should be made with the employees. It protects the employees from any sort of discrimination
which can create number of adverse impact on the business.
Contract Law-
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This law explains that how to enter in contract 'a contract is basically an agreement that is
enforceable by law'. In a sense it can be observed that it is just an agreement which is bound by
laws.
Agreement
This means when two parties comes into consent of agreeing over a specific purpose and
are bound by legal duties to be followed by both of them and cannot be breach by any of the
parties entered in an agreement.
How Agreement becomes Contract
An 'contract is created through agreement but agreement is not created through contract'.
This means that offer and acceptance are basic elements in a contract and other elements
required for contract are legal obligation,consideration,free consent and capacity to contract
(Chalkidis, Androutsopoulos and Michos, 2017).
Types of contract are as follows-
 Void and voidable contract- Avoidable contract is an agreement that is formed by two
parties that is unenforceable because of legal reasons.
Void contract is the contract that is to be followed by the parties and is legally correct.
 Bilateral and Unilateral contract- A bilateral contract is the contract in which there is
promise for implementing of certain things by the parties.
Unilateral contracts are those contracts in this one party has to perform for the other party instead
of making a promise.
 Expressed and Implied contract- Expressed contract are the contracts that forms a
condition either orally or in written. The offer is accepted in form of offeree.
Implied contract means when there is 'implied in fact' in which an obligations and promise are
created with the intentions by the parties that are not expressed in words. 'implied in law' it is an
quasi- contract as it does not represent a real legal agreement (Endicott, 2016).
Impact of contract over business organisation-
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The contract has negative impact over the organisation only when the contract is not
framed properly the organisation would no be able to follow legal aspects of contract law and it
will lead to a voidable contract that will spoil the image and goodwill of the company.
In the given case of Jordan and James, they should follow employment law in whatever
business structure they wish to choose for commencing the business. Such laws help in making
the employees happy and satisfied and push their energy and productivity high.
M2. Differentiate between legislation, regulations and standards
Legislation- It is the directive provided by the governing body which should be followed
by every individual of a country. This is to help them be in the legal limits for conducting the
activities.
Regulation- This is the instructions enforced as the rules which help in enhanced
administration. Regulations carry the force of law due to which these should be applied
compulsorily (Haigh, 2018).
Standards- These are the specifications which are provided in the form of guidelines.
Furthermore, these are developed on the basis of various requirements for the products, services
and systems.
D1. Coherent and critical evaluation of the legal system and law
Legal system in UK is made of different types of laws which help in governing the
activities. There are some deficiencies in the legal system of UK due to the lack of latest
amendments in existing legislations. Furthermore, common law may not be that effective as
statutory law because there is no intervention of the government. And, UK follows common law
which depends on the judgements passed by the judges. The effectiveness of the system and law
can be understood with the example, that UK has Companies Act, 2006 which is outdated. This
should be changed with the transformations taking place in the business environment (Segal and
Choi, 2016).
TASK 3
P4. Different types of business
A business requires a particular structure for conducting the activities of commercial
nature along with ancillary operations for achieving the goals and objectives. There are number
of business types which can be opt. The same are as follows:
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Sole proprietorship- This business is handled by a single individual who is known as
sole trader. Profit and losses are not shared with any with anybody else. Also, the decision
making is entirely on the person who has the administration of the whole business. There is no
compulsion of registration as well as the identity of the entity is of the person himself (Pokorná
and Večerková, 2014).
Partnership firm- It is an association of two or more individuals who have the same
interest and aim for carrying the business in order to make profit. There is no such legal
requirement for this type of business to get itself registered. In other words, it is optional. A
partnership deed is prepared containing the terms and conditions that are going to govern all the
business activities.
Company- A company is an artificial judicial person which has different identity from its
members. It exists in the eyes of law after completing all the formalities and legal requirements.
It has a common seal and perpetual succession which makes it live without being wound up in by
the law. It can be limited by shares, limited by guarantee or even an unlimited company can be
incorporated. It should be registered under Companies Act, 2006 in order to become a company.
This means that registration is mandatory by the laws (Bubb, 2014).
Limited Liability Partnership (LLP)- This is a combination of a company and
partnership combining the features of both of these businesses. It is one of its kinds which is
suitable for the people who are professionals such as lawyers. Furthermore, it protects the
members from unlimited liability which because of the features of a company. On the other
hand, partners are there because of the characteristics of partnership.
P5. Management and funding of business organisations
Every sort of businesses need adequate funding in order to carry the business operations.
Along with this, management is also important which helps in putting individual together for
achieving the goals. The management and funding of the above-mentioned business
organisations are as follows:
Sole proprietorship- A single person is the owner of the business who manages all the
activities. There can be outsiders appointed for helping the trader as well as family members can
be included too (Sokol, 2015). Every decision is taken by the sole proprietor for the benefit of
the business. Along with this, profit and losses are not shared with any other person. The sources
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include personal investment and bank loan because it is difficult for this business to attract
investors.
Partnership firm- The partners are responsible for the management of the business
activities. They make decisions with the approval of each and every individual involved in the
partnership. Furthermore, profit and losses are divided in the ratio as mentioned in the deed. And
these are distributed equally if there is no ratio. The sources for funds are venture capital, bank
loan, partners' contribution, and many more.
Company- A company is managed by the directors appointed according to the eligibility
criteria mentioned in the Companies Act, 2006. They are responsible for taking decisions in the
interest of the entity. The liability of the members are limited to the extent of unpaid amount on
the shares held by them. A company has variety of sources which include bank and financial
institutions, retained earnings, share capital, debentures, etc.
Limited Liability Partnership- This type of business organisation is managed by the
partners who are responsible for carrying the activities (Norman, 2014). The professionals who
have created the business are under the duty to conduct the operations. There are sources for
raising the funds are more than that of sole proprietorship and partnership. The above-mentioned
sources such as bank loan, personal investment, etc. are included. Along with this, crowd
funding is another source which can be used for this purpose.
M3. Advantages and disadvantages of formation of different types of business organisations
There are number of advantages and disadvantages of the business organisations which
can be opted for by the individuals proposing to start the activities. These are as follows:
Sole proprietorship- It is easy to establish as there is reduced legal formalities. Also, the
dissolution is not that complex because the sole individual can close the business. The tax rates
are also lower as compared to any other form. However, it has limited sources of funds
(Chesnokova, Radina and Serdyuk, 2014).
Partnership firm- The partners have the mentioned ratio in which the profit and loss are
divided among them. This reduce the number of conflicts and issues between the partners. But
the disadvantage is that it can be dissolved with the approval of the partners by giving unanimous
voting.
Company- The members have limited liability to the amount of the unpaid amount on
the shares held by them or to the extent of the amount guaranteed in by the members. Also, there
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