Business Law Report: Legal Solutions for Business Organizations (BTEC)

This report provides a comprehensive analysis of business law, encompassing various aspects relevant to the UK legal system and its impact on business operations. The introduction sets the stage by emphasizing the importance of business law and its implications for commercial activities. Task 1 explores the different sources of law, including the Act of Parliament, Common Law, European Union Law, and the European Convention on Human Rights, and explains the role of the government in law-making processes. It also clarifies how statutory and common law are applied in justice courts and evaluates the effectiveness of the UK legal system. Task 2 delves into the practical implications of business law by illustrating, with specific examples, how company, employment, and contract law can impact businesses. It differentiates between legislation, regulations, and standards to analyze their potential impacts and offers a critical evaluation of the legal system. Task 3 focuses on the legal formation, management, and funding of different types of business organizations, assessing their advantages and disadvantages. Finally, Task 4 recommends appropriate legal solutions to address various business challenges. The report concludes by summarizing key findings and providing a list of references.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Explain the different sources of law............................................................................................3
Explain the role of government in law making and how statutory and common law is applied
in the justice courts......................................................................................................................4
How statutory and common law is applied in the justice courts.................................................5
Evaluate the effectiveness of the legal system of UK.................................................................5
TASK 2............................................................................................................................................6
Illustrate, using specific examples, how company, employment and contract law has a
potential impact upon business....................................................................................................6
Differentiate between legislation, regulations and standards to analyse potential impacts upon
business........................................................................................................................................7
Provide a coherent and critical evaluation of the legal system and law......................................8
TASK 3............................................................................................................................................8
Explore how different types of business organisations can be legally formed............................8
Explain how business organisations are managed and funded....................................................9
Assess the advantages and disadvantages of the formation of different types of business
organisations..............................................................................................................................10
Critically review and evaluate the formation of different types of business organisations.......10
TASK 4..........................................................................................................................................11
Recommend appropriate legal solutions....................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business law is one of the most important topic in current scenario, which simply explains
about the rules and policies which are needed to be considered within commercial sector. Any of
the organisation or commercial transition whether it is of small level or of bigger level, law must
be followed as per the required guidelines. If in any of the circumstances, law will not be
followed then legal liability upon the organisation may occur where different penalties types of
penalty can be imposed. In context of the file, it has been categorised into four different task
where first task will describe that what are legal terms and condition which organisation must
and how any of the law is formed including the role of government at the time of commencing
law. The second task will be based on the impact of different laws and regulation upon the
organisation. Along with this, third task will be prepared on the guidelines that how any of the
company can be formed by following legal structure where pros and cons will also be discussed.
At the end, fourth task will be explained which will discuss that how any of the organisation can
sort out any of the legal issue in the best possible where some of the laws will be discussed in
and if possible it will be solved with the help of Alternative Dispute Resolution process.
TASK 1
Explain the different sources of law.
In present circumstances, law is quite important because it helps to make any of the
discussion important due to which chances of breach of legal penalty can be removed. Talking
about the business organisation, government of UK has included different area through which
they form legal law which must be considered at the time of making any of the decision
(Chemerinsky, E., 2019). Below, different source of laws has been discussed which will allow
the entity to make effective discussion for future period of time.
Act of Parliament: This is one of the crucial source of UK which has been forming
different types of laws and regulations which must be followed for making effective decision. It
is said that at the time of forming law, House of Parliament takes the help of two most effective
internal source and they House of Lords and House of Common who discusses about the good
and bad points of the bill and according to that they enforce new law.

Common Law: There are number of circumstance of business where some new laws are
required to be formed for the purpose of declaring the result so that problem can be resolved. In
this particular context, government has given the authority to Judicial body which can form the
law for declaring any of the result (Cojocaru, 2019). In order to find the solution, Judicial body
has the power to take the reference of similar case which has been discussed in different part of
the world so that solution can be obtained.
European Union Law: It is among the most powerful law forming body of UK before
the date of Brexit. It is because they had shown their involvement in commencing more than half
of the commercial law which is required to be conducted on a daily basis. It is necessary to
understand that in any of the situation their laws and regulation must be followed by the business
organisation so that goals can be accomplishing in specific time period.
European Convention on Human Rights: It is also among one the factor which plays the
crucial role in formed the law which is related with providing the human rights within the
premises of a business organisation. As per law and policies which is has been formed by
European Convention, organisation must provide rights to every single employee so that targets
can be achieved.
Explain the role of government in law making and how statutory and common law is applied in
the justice courts
In any of the nation, there is a huge role of government because it directly or indirectly provide
direction that how any of the work is required be done so that goals can be accomplished.
Talking about the UK government, they have distributed the role to multiple bodies so that
weakness can be overcome from the bill and goals can be accomplished. Below, roles of
government has been discussed in detail.
Whenever government wants to form the law then it is necessary for them to understand
that at primary stage they must be able to prepare the bill where House of Common and House of
Lords both has to discusses and follow the same stage to pass bill for making it as an Act (Crane
and et. al., 2019).
First Reading: The bill which is being proposed by Member of Parliament is required to
decide the title at beginning. After deciding the title, they are required to pass it to the next stage.

Second Reading: On the basis of title given by the team of first reading member of
second reading has to discussion whether mentioned points in the bill is appropriate or not. If
member becomes satisfied, then they are needed to forward the fill to next stage.
Committee Stage: Detail examine of every points are done which allows to determine
about the points mentioned in the bill that where changes are required by the team.
Report Stage: Here members are required to work on the points by bring changes on the
points where member of committee stage is not satisfied. After making the changes they
immediately forward the bill (Grant, 2019).
Third Stage: It is that particular stage, where voting process plays the crucial role in order
to decide whether bill should be passed or not.
House of Lords: If bill has been passed by the third reading then, members of House of
Lords are required to conduct every similar steps to review the fill for the final time.
Royal Assent: It is that particular stage where final approval is provided to ensure that bill
has been passed as new act has been enforced from the immediate effect.
How statutory and common law is applied in the justice courts.
In context of UK, there are certain roles and responsibility has been provided to the Justice
court in order to declare any of the result. So, looking at the requirement, it has been said that
statutory law and common law has the huge role for declaring any of the fair decision. In context
of Statutory law, judges of justice court are needed to overview the situation of the case and
according to that they are required to declare decision where they are also required reviews laws
and policies and remedies if it has been breached (Graw and et. al., 2019). On the other side,
talking about common law, it is necessary to understand that judges do not have any laws and
provision for declaring any of the decision. In this situation, they are needed to review past case
or even they form new law for declaring the result so that appropriate decision can be obtained.
Evaluate the effectiveness of the legal system of UK
It can be easily said that the law of UK is one of the most systematically law due to which
there are very few percentage of chance for any of the business to face any of the problem. But,
still it can be said that they can bring some of the changes so that organisation will not have face

any of the problem. Some of the important points which can allow to understand about the
effectiveness of legal system of UK has been discussed below:
 Long Term Decision: It is said that UK laws and policies rarely changes due to which
people do not have to face problem and they can take long term decision for attaining
their goals and target on specific time period (Gupta, 2019).
 Process of formation of law: Talking about the UK law, there process of forming law
has a lengthy process where huge amount of expenses may incur but it also allow them to
ensure that chance of errors significantly reduces in it.
TASK 2
Illustrate, using specific examples, how company, employment and contract law has a potential
impact upon business.
In present scenario, there number of branches of business law and all of the laws and
regulation have different types of impact on the business entity. It is necessary to understand that
all of those laws and regulations have different upon the entity. Below some of the laws has been
discussed and their major impact upon the business organisation.
Company law: This is the law which simply discusses about the guidelines which are
required to followed by business organisation at the time of making any of the decision. It is
among one of those law which do not allow the business organisation to take those decisions due
to law can be breached because of the heavy penalty can be imposed (Hay and Eagle, 2019). It is
among one those law which affect the working policies of the business because it restricts the
business to take their own decision. Also, there are some of the guidelines which are very
lengthy in nature and enforces the company to spend more amount of money to meet out the
targets.
Contract law: The law which discussed about the agreement which is created between
two parties for meeting out the target is known as company law. It is among one of those law
which is very crucial because it certainly forces the contracted parties to complete the given
work in specific time period and if they fail to do then penalty can be imposed upon defaulter
party. This is among one of the law which has a positive as well as negative impact upon entity.
The positive impact is that it does not allow the contract party to breach its term because of the

problem which they might for breaching the condition. On the other side, negative impact is that
it forces the organisation to work as per the guidelines of contract which creates problem in some
of the circumstances.
Employment law: The law which govern the relation of employer and employee is known
as employment law. It is necessary to understand that in any of the condition both employer and
employee must perform their part of work as per the guidelines of employment law for meeting
out its target. This is among one of those law which has a positive as well as negative impact
upon business organisation (Honigsberg and Jackson Jr, 2019). For example: It forces the
company to provide some of the essential to facilities to their employee at the time of working
within the premises of company and in that respective condition overall expenses of company
increase and revenue decreases. Whereas positive impact shows that employee will be required
to work as per the guidelines due to which company can make assumption for making any of the
long term decision.
Differentiate between legislation, regulations and standards to analyse potential impacts upon
business.
In term of law, Legislation, Regulations and standard are the important term which plays
the crucial role for making any of the decision. In context of business organisation, they are
needed to understand that their goals can only be met in that respective condition where they are
able to work as per the guidelines of legislations, regulations and standards.
Legislation: It is explained as the law where role of government increases. It is the
legislative body who has commenced number of law for business organization which they are
needed to follow on a daily basis. If in any of the circumstances the law which has been formed
are not being considered by businesses, then they face number of problem due to which attaining
the goals on time becomes one of the major problem for them (Lerman, Schrag and Rubinson,
2020).
Regulations: It explains about the guidelines which has been formed by the legislative
body in any of the Act. It is said that regulations are the rules and guidelines which are needed to
be followed by the organization. There is huge impact of regulations on business organization. It
is because if regulation changes then company has to changes their rules which is one of the
costly and lengthy process.

Standard: It is defined as the guidelines which are needed to be considered for the
purpose of conducting any of the work. It is necessary to understand that any of the organization
must meet out the standard at the time of performing any of the work (MacLean, 2019). If in any
of the condition they fail to meet the standard, then penalties are imposed due to which attaining
the target becomes very difficult for the organization.
Provide a coherent and critical evaluation of the legal system and law
In context of UK, legal system has a huge importance for organization because it gives
idea to business entity that how they are required to work in any of the situation. Legal system of
UK is well managed which allows the any of the organization to decide that how they are
required to work. On the other side, legal system of UK forces the organization to follow long
procedure to make any of the decision which means overall expenses increases in it. This simply
shows that some of the changes can be brought for obtaining more effective results.
TASK 3
Explore how different types of business organisations can be legally formed.
Commercial sector is among one of the most important sector for any of the nation and it
clearly indicates that government brings number of offer on a daily basis for different type of
business organisation. Some of the types of business organisation are discussed below and their
legal process of formation are:
Sole Proprietorship: Business entity which is allowed to perform business activity at a
smaller platform by single investor is known as sole proprietorship. This types of business is also
known as sole traders. In order to start any of the sole trader, it becomes mandatory for the
investor to understand that they must be able to obtain HMRC and NIN (National Insurance
Number). Both of this document can allow to setup sole proprietorship (Mascarenhas and
Mascarenhas, 2019).
Partnership: It is explained as the form of business where there is a requirement of
minimum two members. This types of businesses are easy to perform because group work can be
easily done. But, this form of business does not get legal existence in the eye of law. The
partners who are involved in this form of business don’t have limited liability which sometimes

creates issues for the member of a firm. In order to start the partnership firm, it is necessary for
the partners to prepare deed according to which every work is conducted in it. Secondly, there is
also a requirement of taking permission from HMRC (HM Revenue and Customs).
Private Company limited by Share: It is the form of business which is started after
obtaining the permission from Companies House. It is necessary to understand that this types of
business are started in that particular situation where number of people come together or
performing business activity with limited liability in it (Nard, 2019). Whenever this types of
business is required to be performed, the first thing which is required to be done is that name and
address is to be pointed out. After that Memorandum of Association and Article of Association
are needed to be drafted. List of director and member is also needed to be prepared. On this
particular manner or requirement, all of the documents are needed to be submitted within
Companies House.
Explain how business organisations are managed and funded.
Organisation type Managed Funded
Sole Proprietorship This is one of those form of
business where there is no
requirement of team so it is
mostly managed by owner
himself/herself.
The source of raising fund are
very limited in it which
sometimes creates issues in this
types of business but still
investor has the option to take
the help of credit card and
personal investment to raise fund
(Sulphey and Basheer, 2020).
Partnership In order to manage day to day
business activity, organisation
focuses on authorised person to
manage all of the activity.
It is that form of business where
is it is necessary to understand
that fund can be raised to
additional amount of investment
from partners, credit card and in
some of the case option of loan
is available for firm.
Private Company There is a huge work load in This is the types of business

limited by share private limited company due to
which it is necessary to
understand that manager, director
and members of the company are
required to show involvement for
managing the work.
where option like Angle
investor, bank loan, credit card
are available for raising fund.
Assess the advantages and disadvantages of the formation of different types of business
organisations.
On the basis of formation, there are different types of business where different types of benefits
and drawback are available and they are discussed below in detail:
Sole Trader: Talking about this particular business organisation, it is necessary to
understand that this types of business at the time of formation requires very minimum amount of
investment which is a positive side of it. Even after following the guidelines of law, sole traders
are not given the legal right to sue and be sued on its own name.
Partnership Firm: This types of business requires very less paper work to start the
business activity which is a positive sign for a partnership firm. Talking about the negative side,
they are also among one of those organisation which are not given the legal rights to sue and be
used. Also, liability is not limited in this types of business (Thaete and Hebert, 2019).
Private Company limited by Share: This form of business has a great positive sign as
they are among one those organisations which are given legal rights to sue and be sued. There is
lots of paper work in it which is a major drawback in this types of business.
Critically review and evaluate the formation of different types of business organisations.
It can be evaluated from above discussion that there is different form of business entity
where different guidelines are needed to be followed in each one. It is said some of the them has
to follow long procedure and some of them can be started in a very short time period as well.
Even after following the guidelines, it can be clearly said that some of the form of business do
not get legal existence. The another point is that organisation like sole proprietorship, partnership
has to follow legal process to start business but still member’s liability is not limited in it.

TASK 4
Recommend appropriate legal solutions
Case 1
The case was between HR manager of the company and Company Secretary. The case
was found that employee was not performing work as per the requirement of organisation. The
case shows that Sarah who was a company secretary of the company was not performing her part
of work and it is one of the reason that many of the employee was not willing to perform their
part of work by taking the help of Sarah. As per the criteria of case, some of the laws has been
discussed so that solutions can be obtained.
Compromise and severance agreements: It is explained as the law or contract which has
been between entity and their employees. It is that form of agreement which is being formed by
the company for the purposes of terminating those employees who has unable to meet out the
expectation. The purpose behind the commencement of this agreement is very simply because
company do not want their employees to sue them for terminating them from the organisation.
But certain requirement which is to be fulfilled by employer such as compensation amount
should be transferred because employee will require time to settle within another organisation.
Walsh v Belfast Metropolitan College [2020], is among one of those landmark case which says
that employer fails to prepare compromise agreement due to which they had to suffer because
employee got the opportunity file the case against the company (Trad and Kalpić, 2019). Even
rewards were given to the employee. Here, HR of the company can take the help of compromise
agreement through which she can easily remove Sarah from the company.
Breach of Contract: It was the policy of the company where each and every senior
employee must treat each an d every sub-ordinate equally and if they fail to do so then legal
action can be taken. Here, case clearly indicates that Sarah was found guilty for breaching the
law as she misbehaved for number of times with other employees.
After analysing the case, it can be clearly stated that HR of the company can easily
impose different penalty upon Sarah and even they can easily find out the way to connect with
other employee working for organisation.
Case 2

The case scenario, indicates that there was the problem between Peter Romanov and the
important of UK who has been constantly buying products from the organization (Uddin, 2019).
But, importer and Peter Romanov involved themselves within the dispute because it was found
that there was a changes in currency rate due to which they were unable to decide that at what
rate payment should be done. But, Peter Romanov is not willing to take the case into court as it
has a lengthy process which is needed to be followed. So in order to resolve the issue, company
can take the help of Alternative Dispute Resolution through which case can be resolved in a
easiest manner.
Alternative Dispute Resolution: The method of resolving the problem where
government has given the legal permission for solving any of the civil cases. This process of
solving the problem is easy and effective too. It is because case can be solved out in short time
duration and even less fee is required to be given in it.
 Mediation: This is among one of the way which allows the disputed party to find way
through which they can resolve the issues. It is necessary to understand that appointed
mediator has the role of giving suggestion only as they are not authorized to declare any
sort of decision.
 Conciliation: The easiest way for resolving the issue within the ADR process is
conciliation where just suggestions are to be given to disputed party (Wooldridge and
Cowden, 2020). Conciliator is hired who has the role to listen the points of both party and
on that bases suggestion are to be given in short time period. Major focus is given that
how term of contract can be met.
 Arbitration: The most crucial way for solving dispute with ADR process is arbitration
where jury member in odd number is required who can give suggestion for resolving the
issues. Here, instead of suggestion, decision can be used be it mandates to follow the
order. But, concept should be there to solve issue through this particular process.
Recommendation: It is one of the case which has the issue related to financial deal which
means that parties must be able to find that respective solution so that similar problem will not
occur (Young and Frye, 2019). For this, disputed party can take the help of arbitration process
where decisions are of legal binding in nature and must be followed in any of the situation.