BTEC HNC Business Law: Legal Systems, Structures, and Case Analysis

This report provides a detailed overview of business law, commencing with an introduction to the legal system, sources of law, and the roles of government in lawmaking, including the application of statutory and common law to businesses. It critically reflects on the UK legal system, highlighting both strengths and weaknesses. The report explains key legislation, regulations, and standards crucial for new businesses, including the impact of different laws on business organizations. It further explores the legal structures in both public and private sectors, outlining their advantages and disadvantages, along with the management and funding of these organizations. Part 2 of the report delves into contract, employment, and company law, among others, analyzing salient legal points from case studies and suggesting appropriate legal solutions. It justifies the advice provided, compares the effectiveness of different recommendations, and critically evaluates the use of suggested legal solutions against alternatives, concluding with a summary of findings and referencing all sources.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1)Explanation of the legal system, different sources of law, the role of government in law-
making and how statutory and common law is applied to businesses.........................................3
2)Critical reflection of the legal system using examples to demonstrate strengths and
weaknesses...................................................................................................................................5
3)Explanation of the key legislation, regulations and standards that a new business needs to be
aware............................................................................................................................................5
4)Impact of different law upon business organisation.................................................................5
5)Explanation about different legal structure in public and private sector with their advantage
and disadvantages........................................................................................................................6
6)How different organisations are managed and funded in both public and private sectors.......7
PART 2............................................................................................................................................8
1)Brief overview of Contract law, employment law, Company law, etc....................................8
2) Salient legal points of each case..............................................................................................8
3)Suggest an appropriate legal solution to each of the problems................................................9
4)Provide justification for the advice and solution given............................................................9
5)Compare & contrast the effectiveness of the given recommendations..................................10
6)Critically and evaluate the use of the appropriate legal solutions suggested in comparison
with alternative legal advice......................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Law itself plays crucial part for any of the business entity. The law which governs
commercial activity is knowns as Business Law. Business law is defined as law & regulation
which tells about the activity which is to be considered while making any of the decision for
future goals. The assignment report is based on business law where detail knowledge regarding
various topics well be discussed which is can be crucial for conducting business activity in future
time period. Report is based on two different parts where first part will relate with laws and
regulation and types of entity and they are commenced. Similarly, second part will reflect about
three different case studies and how cases can be resolved without involving the procedure of
court.
PART 1
1)Explanation of the legal system, different sources of law, the role of government in law-
making and how statutory and common law is applied to businesses.
Any of the nation has to become strong from the side of legal system because if they fail
in this particular area then maintain economic level becomes very difficult task. Also, it creates
problem in maintaining peace and silence. But, at the same the UK government have set specific
standard in case of legal system where they follow specific patter and all of the order is finalised
by Crown person i.e., Queen. This process is being followed since the commencement of Royal
Assent Act 1961. The legal system of UK has managed its working style in that particular
manner where any of the law is checked in number of stages due to which chances of errors
reduces (Rutledge, 2014).
Law forming process is never easy and in that particular situation it is necessary for any
of the nation to find out those important sources which can allow them to commence law.
Similarly, UK legislative body have distributed its power to number of bodies which forms laws
within the premises of UK.
 Legislation: It need to be understood that legislation plays the necessary role where it
that particular body where role of parliament increases. In this process House of Common
and House of Lords have to pass bill through different stages which automatically
reduces the chances of error within legal system.

 Directives: After post world war, European nation forms the treaty where they allowed
European Union to form those laws and regulation which are effective for their nation
and even UK was the part of this treaty. Even this source of law was very much effective
for UK that it has commenced almost half of the law and even it is allowing them to
attain positive result.
 Case laws: Although, government and directives takes proper initiatives to commence
law and regulation but still it is not possible to cover all of the law and in this particular
situation it need to be understand that judges of higher level court have been authorised to
commence law as per requirement (Raz, 2017). This laws are also equally important that
even it allows to resolve the case in short time duration.
 Treaties: Government of UK is also the pat of International law where there are some of
the laws and regulation are being formed by them. The laws which are formed under
International law is needed to be followed and even it is result oriented as well.
It is necessary to understand that Legislative bodies gives power to parliament where they are
allowed to commence law for the nation and looking at the situation whenever they commence
any of the law, different stages are needed to be cleared so that law can be enforced. The detail
process of enforcing any of the law starts with draft present in front of First reading. The role of
first reading team is to give only title as per the points mentioned within the bill. Then after,
second reading has to take decision whether bill can be further discussed or not where opinion is
presented by the members. After all this, committee stage has to take responsibility where thy fix
those points which are problematic in nature where further report stage brings amendments and
passes the bill for third reading. In this particular stage, voting process is conducted which
simply explains or decided whether bill should be passed for commencing new law or not. If
member becomes agree then they further transfer it to House of Lords where conduct all of this
stage for cross verification (Bayern, 2016). Finally, bill is given to queen for obtaining Royal
Assent on it.
Statutory law and common law is important in context of business organisation where
entities must be able to followed their laws and order. Statutory law is formed at initial law by
hose of parliament which simply applies upon business entity and all of the organisation must
have to follow. But, common laws are formed by judges where they form any of the new law

looking at the situation so that chances of fraudulent activity can be reduced. The laws are
applicable for all of the entity and they must be able to follow it.
2)Critical reflection of the legal system using examples to demonstrate strengths and
weaknesses.
It need to be understand that legal system of UK is properly managed but still there are
some of the work which must be analysed. The weaker side of legal system says that it follows
lengthy procedure to commence law. For example: if any of the law is needed to be commence
then bill is needed to be passed from HOC and HOL and finally it is presented in front of Queen
which consumes huge amount of money. On the other side, power to commence law has been
distributed to number of bodies which means that different laws and regulation can be formed as
per the situation (Wachter and Mittelstadt, 2019). For example: Parliament, Common law,
treaties and many other sources are there which is commencing law for UK.
3)Explanation of the key legislation, regulations and standards that a new business needs to be
aware.
On a daily basis, there are different types of organisation which are being commenced but
all of them need to understand that they must be able to follow the guidelines of Legislation,
regulation and standards. Here, Legislation commences the law for UK which is to be considered
by business entity. Whereas Regulation has its own importance where it tells that how those
enforced law is needed to be regulated while performing business activity. Finally, standard says
all about the guidelines which is to be considered while following the law. Standard simply
explains about the quality of product and services which entity must maintain.
4)Impact of different law upon business organisation.
Contract Law: This law relates with forming agreement between two parties which relates
with business transaction. It is that particular law which provides proper guidelines that how
work is needed to be performed and when it needs to be completed. It has its own impact upon
contracted parties where it does not allow the parties to complete their work after the deadline
and if it happens then legal action is allowed to be taken.
Law of Tort: It is defined as law which explains that any of the person must not be suffer
just because of the mistake performed by other party. In simply words, any of the person is not
allowed to do any sort of those work due to which other has to suffer. It has negative impact

upon entity because in any of the situation it won’t allow to take any sort of those decision which
may create issues for other public or organisation (Armour and Sako, 2020).
Copyright Law: In any of the business sector, copyright law gives its own importance in
attaining the goals and target. The impact of copyright law upon business organisation is that
company will not be allowed to copy other product without obtaining rights and in that particular
situation copyright holder may seek for high prices.
Employment Law: This law discusses about the relation between employer and employee
which is important in conducting business activity. This law is applicable for each of the
organisation and they must be able to follow it. Its impact upon organisation says that in any of
the situation company or employer should treat their employees equally and discrimination is not
allowed as legal penalty can be imposed.
5)Explanation about different legal structure in public and private sector with their advantage
and disadvantages
Organisation always supports nation in raising their economic level. Many nations are
there which is constantly focusing that how they can promote business activity in their nation so
that goals can be accomplished. Looking at this, different types of business organisation has been
discussed below which are found within UK premises.
Sole Proprietorship: The business organisation which performs its business activity at
small platform for attaining its goal is known as sole traders. This type of organisation gets
limited right to perform its activity. Although, there no as such requirement of following legal
condition to incorporate sole proprietorship but still some of the documents are needed to
covered such as National Insurance number and registration of self-assessment with HMRC
(McCormack, 2017). The owner of this form of entity has the right to enjoy profit without
sharing which is a positive side of this business. This types of entity have list power to perform
business activity.
Partnership Firm: The business activity which gives power to perform business activity
with minimum two members is known as Partnership firm. Here, business idea is very much
crucial for earning profit. Two documents are needed to start partnership firm which is
partnership deed and HMRC. The advantage which can be seen in this types of business is that

losses can be shared equally in it whereas legal rights to sue to on the name of firm is not given
to any of the partnership firm.
Private Company Limited by Share: This are the company where most of the investor
tries to show their interest because of the working criteria which an been in it. In any of the
private business entity huge role is always being played by its member. Whenever any of the
private company is started, it is necessary to understand that some of the necessary documents
must be prepared. Name and address is needed along with Article of Association and
Memorandum of Association, list of director and members is also needed and finally documents
need to be submitted to Companies House. Advantage for private company is that they can easily
raise fund through Financial Institution and negative side says about lengthy procedure which is
required to be followed (Bodie, 2017).
Public Company Limited by Share: It is a large scale business organisation which
performs its business activity by including the interest of general public as well. This form of
business need to focus on number of factors at the time of conducting business activity because
simple mistake may create issue for organisation as well as shareholders. To commence any of
the public company there are certain requirement which is to be fulfilled. Starting off with name
of a company along within its headquarter address. Selection of first director and shareholder is
mandatory before starting business activity. Then, they take the responsibility to prepare MOA
and AOA. There is a requirement of SIN number as well where at final stage documents needs to
be deposited in Companies House. The positive side of this business is that investor can join and
leave the company as per own willingness. But, lots of legal procedure are here which is needed
to be followed by this types of business which is a negative side in it.
6)How different organisations are managed and funded in both public and private sectors.
Types of Organisation How it is managed How it is funded
Limited Company Investors mainly has the
responsibility to manage
work in this particular
business.
Multiple sources are their but
among them loan for FI and
investment from investor is
preferred the most in it.
Social Enterprises Here, major responsibility are There are number of occasion

always given to manger and
directors who plays major
role within the entity.
where this types of business
gets the opportunity to raise
fund through government
agencies and pubic donation
is also found in it.
Corporation Number of people has to take
part in it for managing
business activity such as
BOD, CEO, Company
Secretary and manager and
many more (McCorquodale
and et. al., 2017).
Multiple sources are there to
raise fund such as bank loan,
shares, debenture and many
more.
Co-operatives In this types of business
manage takes the
responsibility of managing
every single work.
Some of the popular way of
raising fund in this types of
business is members fees,
bonds and many more.
PART 2
1)Brief overview of Contract law, employment law, Company law, etc.
Contract Law: This law says about the contract where two parties come together for
performing any of the specific task. Contract law is important because it will not allow any of the
person to breach the contract.
Employment Law: It is the law which discusses about the relation of employer and
employee. The main purpose of enforcement of this law is to provide guidelines on which
employer and employee is needed to work.
Company Law: The law which deals with all of the matter related to company from the
day of incorporation to the day of windup is known as company law. It is the law which guides
management about the necessary requirement which they must fulfil at the time of taking
decision.

2) Salient legal points of each case
Case 1: Company and Gordon had entered into the contract where they have decided that
10000-pound p.a. will be the amount which company will pay to Gordon excluding commission.
There was a phase where company faced losses and they entered into new contract for certain
time period but after company starts to earn profit, they denied to pay previous amount which
was written within the contract (Sjostrom, 2019).
Case 2: This is the case of misunderstanding between Janet & Virgin Media. There was a
combo offer which company needs to provide to Janet but due to minor error performed by
technical team they failed to do so. But, company gave the bill where price of combo offer was
included on which Janet was upset.
Case 3: Blackhorse Limited is dealing in service providing of security guard. Companies
debt was increasing on a daily basis due to which creditors wants to file a case.
3)Suggest an appropriate legal solution to each of the problems
Case 1: Here, looking at the circumstances of the case, disputed party can go conciliation
process for solving out their problem.
Case 2: The suitable option which can be adopted by parties to resolve the problem is
mediation process.
Case 3: Problem is complex in nature due to which parties must try to take the help of
arbitration process.
4)Provide justification for the advice and solution given
Case 1: The main reason to adopt conciliation because here parties will be option to come
closer to the contract terms and condition through which problem can be resolved.
Case 2: Looking at the scenario of the case, mediation is necessary because suggestion can
allow them to find out the main reason of dispute. Even both parties will get the option to change
their view points.
Case 3: Arbitration process is needed because it will guide the parties to identify that how
they can recover their payment without winding up of company. Even this process may also
allow the company to sustain within the market.

5)Compare & contrast the effectiveness of the given recommendations
Conciliation: The process of conciliation is effective in this particular case because both
company and employee was unable to decide that which contract will be valid and guidance of
conciliator will allow them to take suitable decision.
Mediation: The second case required mediator process because disputed parties didn’t had
the idea that at what place default has been performed and if both of them can present their views
in front of mediator then they can easily come up to the solution that what should be the which
should be charged for services.
Arbitration: This process is helpful in resolving the issue because it will simply allow the
disputed party to identify whether they are able to do payment or not and if they are able to do
payment then how long time duration they require in it (Sharfman,, 2017).
6)Critically and evaluate the use of the appropriate legal solutions suggested in comparison with
alternative legal advice
After providing solution in three different cases, it can be said that Alternative Dispute
Resolution is one of the effective way of resolving issues. It is because it saves time and money
can even further business dealing can be continued in this types of method by resolving the issue.
But, it needs to understand that every time this process might not work as well.
CONCLUSION
As per detail view on above report, business law has its importance for conducting business
activity. Understanding about the law and policies which has been formed by different sources of
law will allow any of the entity to take those decisions through which goals can be
accomplished. There is certain situation where member have to select about organisation which
can fit for them in accomplishing their goals and in that respective situation different types of
formation process of organisation can become helpful. Additionally, some of the organisation
issues may occur and in that respective situation it becomes necessary for organisation to try to
resolve problem through ADR process as it is fast and less expensive in nature.

REFERENCES
Books & Journals
Rutledge, T. E., 2014. A Corporation Has No Soul-The Business Entity Law Response to
Challenges to the PPACA Contraceptive Mandate. Wm. & Mary Bus. L. Rev. 5. p.1.
Raz, J., 2017. The rule of law and its virtue. In The Rule of Law and the Separation of
Powers. (pp. 77-94). Routledge.
Bayern, S., 2016. The Implications of Modern Business–Entity Law for the Regulation of
Autonomous Systems. European Journal of Risk Regulation. 7(2). pp.297-309.
Wachter, S. and Mittelstadt, B., 2019. A right to reasonable inferences: re-thinking data
protection law in the age of big data and AI. Columbia Business Law Review.
Armour, J. and Sako, M., 2020. AI-enabled business models in legal services: from traditional
law firms to next-generation law companies?. Journal of Professions and
Organization, 7(1), pp.27-46.
McCormack, G., 2017. Business restructuring law in Europe: making a fresh start. Journal of
Corporate Law Studies, 17(1), pp.167-202.
Bodie, M. T., 2017. Holacracy and the Law. Del. J. Corp. L., 42, p.619.
McCorquodale, R. and et. al., 2017. Human Rights Due Diligence in Law and Practice: Good
Practices and Challenges for Business Enterprises §. Business and Human Rights
Journal, 2(2), pp.195-224.
Sjostrom, W. K., 2019. Business Organizations: A Transactional Approach. Wolters Kluwer
Law & Business.
Sharfman, B. S., 2017. The importance of the business judgment rule. NYUJL & Bus., 14, p.27.