Business Law Report: Business Law, Legal Structures, and Impact

This report provides a comprehensive overview of business law, dissecting its various sources, including European community law and case laws, and the government's role in law-making, highlighting the significance of statutory and common laws within justice courts. The report then delves into the impact of contract law, company law, and employment laws on business operations, underscoring the importance of these legal frameworks in shaping business practices. Furthermore, the report examines the advantages and disadvantages of different organizational structures, such as sole proprietorship and partnerships, and their legal formations. It also explores the management and funding aspects of business organizations through case studies, offering insights into the practical application of business law principles. The report concludes by emphasizing the importance of business law in guiding organizational activities and ensuring compliance with relevant regulations.

UNIT 7: BUSINESS
LAW

Table of Contents
PART-1............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Different sources of law and role of government in law making:..........................................3
P2 role of government in law making along with statutory and common laws, their application
in justice courts:...........................................................................................................................4
P3 Impact of contract law, company law, employment laws on business:..................................5
CONCLUSION................................................................................................................................6
PART 2............................................................................................................................................6
INTRODUCTION...........................................................................................................................6
Advantages and disadvantages of different types of organization and its legal formation.........6
Management and funding of business organizations...................................................................9
CASE 1........................................................................................................................................9
CASE 2......................................................................................................................................10
CASE 3......................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

PART-1
INTRODUCTION
Business law combines all the legislation that are laid down for govern business
requirement in manner. Present report will discuss different sources of law and role of
government for making it. Also, all the legal system is in terms of most recent reforms that will
evaluate accordingly. Then it can be said that it is necessary for critically evaluate legal system
and law with its evidence that would be present for better understanding of business law.
MAIN BODY
P1 Different sources of law and role of government in law making:
Legal system reflects need and value of society that are also help for serves and consider
acceptable by the majority of community. This is help for together the activity in order to focus
more on identify which practice may affect interest of different stakeholder in adverse manner.
Legal sources are consisting of creating legal rules on the basis of agreement, customs,
competent, practices which are accepted by society and based on national conscience (Beatty,
Samuelson and Abril, 2021).
There are different types of sources of law which are help for driving notions and
convictions in order to attempt and fabricate laws.
European community law- This is one of the best example of European union, European
nations are help for joining EU in order to adopt all laws up to date. That are considered with
treaty provisions, directives, regulations, precedents and decision. Also, legitimation of EU helps
for UK laws in order to provide proper alignment. The European conventions are considering as
another factor in order to provide by followed different numbers of convention which take place
human rights in order to become essential part for aligning laws such as consumer’s rights act
2015.
Case laws- The concept is an another part of which help for accumulated laws as well as it
helps for adopted by civil laws system. Judgement passed by judge in orders to focus on
important cases which are recorded earlier (Bowie, 2020). There is no legislature on the basis of
particular point that arises in changing conditions and judge that depend on sense of right and
wrong so that it can solve disputes of others. The values of nation can be related to necessary
driver by inclination of nation. In order makes law in UK is necessary for developing and
changing conditions so that it can depend on principles.

P2 role of government in law making along with statutory and common laws, their application in
justice courts:
In UK parliamentary system is carried out by following different types of aspect in order to
make laws which is high in nature. There are different stages which are followed for drafting bill
and discuss in both houses so that it helps for providing permission from monarch if it is needed
in parliament. It can be said that government is the only party that is introducing bill in
parliament such by considering company act 2006 fist time introduces in parliament. Also, bill is
discussed by different leader that make comprehensive changes and all the bill are help for
providing full of parliament meeting in order to fulfilment of aim (DiMatteo and Poncibó, 2018).
Then, bill is passed in both the houses so that it is help for extended to monarchy for final
permission. For any changes it is necessary for amendments that are carried for companies act
1985 in order to surpassed by companies act 2006. Also, if chosen body find any issue in it is
necessary for cost structure that consist of queen’s bench in order to focus more on chancery
division and tribunals issues can be raised.
Effectiveness of legal system in terms of recent reforms:
In order to making legal system, it has been analysed that there are different range of
reforms which can be made in last couple of years and Brexit. Government of UK is prone to
replace all European union exemptions in order to bring better competitiveness in the field.
There are some changes which are necessary for made in order to present competition laws of
UK. In 2022 all the changes are imparted by final outcomes. Also, vertical agreement impacting
the business as well as for making local business this is thrived by impart changes.
In order to removal of retail parity it can be said that it is necessary for instilled in last
couple of years and it can be intended for fetching best practice in regards to indirect sales. Also,
in legal issues that are hindering way for free trade that impact great as well as it can be made by
vertical agreements blocks exemptions that can be expired in year 2022 by providing changes at
higher level of free trade practice (Djurovic and Janssen, 2018).
According to companies act 2006 are passed companies act 1985 that can be seen one of
the most affluent changes and reform of business law related practices in United Kingdom. In
order to follow the practice, it is important for new employment laws process that are not
possible for carrying out business practise with discriminatory policies. Statutory and common
law are help for helping in order to bring justice candidates as well as it help for making proper

process by supposed in order to followed by company on the basis of proper process of
legitimations which are related to employment act, company act and customer rights. All the
laws are related to ruling by judges in order to make health and safety accentuating on it.
This is not possible for protect rights of all stakeholder which give justice by all of them
such as predicaments role of common laws that come up with great power (Fenwick and Wrbka,
2018). For instance, due to Brexit it may face drastic changes for solve the problems in order to
take place where it can be dealt by using common laws. In order to analyses the best example, it
can be said it is necessary for protect product liability and earlier it help to defining liability of
product. Tribunals are quite clear in order to focus on defining liability of product then it help for
making changes. Some of them obliging business that inclined to their customers and burdening
them with additional cost.
P3 Impact of contract law, company law, employment laws on business:
Business model are getting change with time and governments make the best efforts to bring the
transformation and clarity in the legal practise so business can ensure better management within
the organization. The main objectives to identify the employers and employees roles and
responsibilities with the changes in legal system.
Contract act 1990 is applicable in business to ensure the security of rights of both the
employers and employees.
In moreover, some rights are secured such as employees and employers have right to
secure an ensure their protection within the workplace. Employees can also raise voice against
the any types of injustice. Employers of business also have rights which granted by the law, they
can also minimize salary or unpaid leave and terminate in their jurisdiction. Company also need
to improve the operational rules with core notion of law. In business practices, all laws are
granted by law so it can bring in company practices.
In the context of consumer protection act, it designs to ensure that products and services
of company must be safe and company must put the trademark in business as compare to only
sell, liable for any causes by defective products and poor quality products. Company also give
rights to anybody that they right to claim against the procedure of products for damage which
caused by manufacturing defect (Setyoputri and Mardijuwono, 2020).

The company have legal impacts on business so business need to flow the all legal laws
with the fullest extent that helps in that eradicate practices which affects the rights of customers.
It also felt that business must keep the customer rights alive with their profits.
In employment laws, its getting shape newer with the modern business to business ensure the
rights of employees because this can impact on business performance. Business can also take the
advantages by making the good ethical image of business. It also offers the safe legislation for
business staff. Employment protection is mosts important for business because it helps in treat
business fairly, security and feel motivated (Rakov and Karasev, 2020). For employment
protection company can impose the training and developments with additional cost to business
with training and recruitments of employees.
CONCLUSION
As the conclusion, business law is important for organization and its is also known as the
corporate law. It consists the rules and regulation which govern the operations and activities of
business. The business law includes the various laws such as intellectual property, employment
law, contract law with the appropriate elements such as agreements, contracts, court proceedings.
The business law helps in provide the business framework through which company are run with
governing business law applying on the types of business and industry. This report elaborated the
various sources of law and roles of governments in law making along with the common law and
statutory laws with the applications in justice courts. In the conclusion, This report also discussed
the impact the various impacts of law on business such as employment law, contract law and
company
PART 2
INTRODUCTION
In the present report advantages and disadvantages of different types of organisation with its
legal formation. Then, management and funding of business organisation will be discussing on
the basis of three case study.
Advantages and disadvantages of different types of organization and its legal formation
There are different types of business organisation which are related to sole proprietorship,
corporation and company. Also there are different type of legal structure followed by each of the
company in order to follow its own legal formation as well as there are several benefits and
drawbacks which can be used for operations.

Sole proprietorship-
This is a type of business that can be carried out by an individual in order to focus on
sells profit and loss by their own. In this type of business owner is responsible for managing its
operations by its proprietors itself. In order to follow advantages and disadvantages of that kind
of organisation (Haapio, 2020).
Advantages Disadvantages
Owner can able to manage and control
operations of business by their own.
Proprietor is responsible for all the liabilities.
Proprietor can responsible for managing all
profit and loss.
The capability of company is to raise capital by
limited option only.
This is better for small business investment in
order to focus on start up.
It is very to difficult to transferring the
ownership of organisation.
Legal formalities of sole proprietor-
There are very few legal responsibilities in order to operate sole proprietorship because there is
no separate registration is necessary for business entity. On the other hand, it is requiring for
getting license under any of government enactment on the basis of nature of business. Then state
and central government tax registration is obtained for making for trademark registration in case
of branded business. Then, it is requiring for register for self-assessment then choosing name for
business and keeping records of sales and expenses. Also, sending tax return every year is
necessary for paying tax bill accordingly (Kaltenboeck and Calleja-Ibáñez, 2022). That’s is why
sole proprietor is known for essential employment health and law for maintaining safety. Then
certification is requiring for incorporation and consider the fulfilment for all the needs.
Partnership-
This is a form of business in which two or more individual can take decision for entering
business with the aim of commerce and trade. There is some main type of partnerships, general
partnership and limited partnership. On the basis of general partnership, it said to be that one is
liable for unlimited and non- requirement of formal agreement which are related to liability of
partnership. Here are advantage and disadvantages of partnership. There are partners who are
legally followed activities under lawful business. Also, related to transfer of interest in the firm

so that outsiders and other partners agree unanimously. It is important for having mutual trust
with understanding and confidence between partners (Warren, Porter and Pottow, 2020).
Advantages Disadvantages
This is help for sharing burden and losses of
company
The result is in unlimited liability of general
partnership.
This is sort of organisation and benefited from
decision (Keay, Loughrey and Stewart, 2020).
Also, influence the different chance of conflicts
and being arise in organisation.
Also, allows the business in order to gain
capital in business.
It is reason for sharing of owners control in
organisation.
Legal formalities for partnership-
On the basis of limited liability the limited liability partnership is required registration of
company in house and HMRC. There are partnership firm that can be comply on the basis of
rules and regulations of partnership act. Then limited partnership also need formal agreement in
order to filling certification of firm which is help for complies laws on the basis of employment
laws, health and safety act and contract act.
Limited liability-
Limited liability company can be considered to be owned by each of stakeholder and
manage in order to run business by directors. It can be said that there is separate legal entity.
Owner and company are both different from each other while entering into contract separately.
Such as company can be related to the major two types which are private limited company and
public limited company and it has advantages and disadvantages.
Advantages Disadvantages
This is consider to be factor and able to
provide liability for invested them.
This is one of the complex set for organisation.
There are certain ways which are include in
business and get corporate tax benefits.
The high costs of formation is due to high legal
requirements and paperwork.
It help to make owner and legal entity. This also maintenance records and registering
of operations (Miller, 2018).
Legal formalities of limited company-

The limited company can be considered for require for registering itself with company
house and getting certified as incorporation of compliance of legal requirement. It is also
requiring that in order to draft to be registered of HMRC and comply with rules and regulation.
Also, company must have share capital, undertaking, actual numbers, registered agent, company
secretary. The details of company can be placed by publics records, shareholder, including
director, PSC details and financial accounts. Then article of association must be adopted outline
of organisations rules and regulations. Statutory responsibility is related to the registering
company for tax, filling confirmation statements, preparing annual accounts, paying corporations
tax, keep company records and registers.
Management and funding of business organizations
Business organization Source of funds Management
Sole proprietary  This is requiring personal saving from
owner’s fund
 Financial institution and bank are good
source of fund
 Angel investor are help to provide funds.
Owners is
responsible for
managing business
by own.
Partnership  Partner are responsible for funding and
contributing capital.
 Banks and financial institution
 Reinvesting business profit as good
option of increasing capital.
All partners are
responsible for
managing business.
Limited Companies  The share equity, preferential share can
be retained earnings by helping
organisation and generate funds.
 Borrowed capital from bank (Sazonova,
2021)
Boards of directors
are responsible for
managing the
company.
CASE 1
Issue-

In this case study Gordon and Orange computer ltd store their contract of employment in order to
focus more on salary of 10000for which commission payment is around 9% on selling a
computer. Also, in 2015 there are cut to cut competition in local market due to company run into
loss as well as it faced certain trouble related to finance. Along with this, Gordon also accepted
new variation of contract with the main issue afters 2016 and company darted growing and now
Gordon claim for wages of 2015 and 2016.
Rule-
This act is related to issue that are related with payment of salary of forgone year 2015,
2016 and 2017 and omission accepted. In the year 2016 it is related to the rising economic
growth and that is why organ computer able to earn profit. Hence, this can be related for capable
of salary in terms of contact was poor condition of company. In 2016, the business situation is
related changing terms of contract that is need to change on the basis of employment is liable to
get biased salary.
Applicability-
There are certain rules for contact which is necessary to follow by applicability of case as well as
it is owned orange computer that terminated for term of agreement and not paying the money.
The applicability of payment is on the basis of employment law and the workers are liable for
getting basic salary in order to use contractual framework and not disturb the employers power
for alter main terms of relations (Mazhaeva and Kuznetsova, 2021).
Conclusion-
IRAC report is able to concluded by lack of hindrance for Gordon right of employability and
there are breach of contract. Also, it can be said that there are Gordon has agreed by
understanding new terms and conditions that are only till organisation sufferings from loss. The
term is mentioned from commission payment that given employee for addition to this Gordon
filing complain employment terminal.
CASE 2
Issue-
In this case issue is related to liability that paid for particular period if there is no service
received. Also, Janet call virgin media for arranging the purchase and installation of internet
package. Then, invoice approved by virgin media in order to charge in a whole package from day

of internet installed that include the month phone line rental. This was reason dues to which
Janet got extremely disappointed.
Rules- law can be applicable on the basis of given case that are related to no substantial
performance from services provided and not liable for receiving payment for given period. On
the other hand, it has been mention of contract on the basis of agreement by which service
receiver not liable for paying amount that were agreed earlier.
Application-
In this case it is related to Janet and virgin media that provides service and going fort following
application. Janet and organisation were in contract of installation for internet package and phone
line. Also, complainant filled by Janet on virgin media for altering 3 weeks as well as it is about
another engineering which came for fixing telephone lines. In case Carlill v Carbolic Smoke Ball
company invoice from service provider that was charged by whole package interacting with
connection and telephone lines. This is involving inclusion of rent from period of uninstallations
of telephone lines. On the basis of contract service provider cannot charge for period in order to
nots rendering any service (Jennings and Greene, 2021).
Conclusion-
Contract law is the consumer is said to be non- liable in order to paying any amount for period of
no substantial performance on the basis of service provider. Also, that kind of case Janet not
liable for making payment for using rent telephone line of 3 weeks as it was installed after the
complaint.
CASE 3
Issue-
This case is related to the company has breached contract for not paying its creditors by
following application of terminating the contract.
Rules-
For contract law involved party are complying on the basis of terms and conditions of the
contract that cannot compliance any term of condition that said for matter with contract and lead
to breach of contract.
Application-
For application of Black horse ltd. towards entering into contract on the basis of suppliers
and it is necessary for help services which are paying for use of some payment methods.

Company has not been able to pay creditors payment for services provided by them. Hyde V
Wrench for such reason the customer default payment to creditors and it is application for
termination for contract (Twomey, Jennings and Greene, 2021).
Conclusion-
On the basis of contract, it can be said that contract law for Black Hoarse ltd is considered
for breaching terms and condition of contract. Also, company can pay the amount in orders to
creditors for 3 months as well as it is rendered services by creditors can appeal for termination of
contract by creditors that is correct as organisation which is breached by terms of contract.
CONCLUSION
It has been concluded that present report is helped for concluded business law and allow for
developing guidelines for conducting business. There are different types of rules and regulation
are discussed in the project which is based on different types of business organisation. Further,
this report analyses different legal system followed by company while making it. Lastly
providing relevant solution for case study with its applicability.