Business Law Report: Sources of Law, Business Structures and Solutions

This business law report provides a comprehensive overview of various legal aspects relevant to businesses. It begins by defining business law and then explores different sources of law, including legislation, customs, judicial precedents, conventional laws, and justice equity. The report then examines the role of government in law-making, highlighting the stages involved and the application of statutory and common law. It analyzes the impacts of company, employment, and contract law on business operations, discussing both positive and negative consequences. Furthermore, the report delves into different types of legally formed business organizations, their management, and funding. The effectiveness of the legal system is discussed, along with recent reforms and developments. Finally, the report recommends legal solutions for various scenarios, comparing different sources of legal advice and evaluating the effectiveness of these solutions, concluding with a discussion of the overall legal framework and its implications for businesses.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1. Different sources of law........................................................................................................3
P2. Role of government in law making and the ways statutory and common law applied.........5
M1. Effectiveness of legal system in recent reforms and developments....................................6
D1. Coherent and critical evaluation of legal system..................................................................6
LO2..................................................................................................................................................6
P3. Company, employment and contract law impacts upon business.........................................6
M2. Difference between legislation, regulation and standards to analysis potential impacts
upon business ..............................................................................................................................8
LO3..................................................................................................................................................8
P4. Different business organisations legally formed...................................................................8
P.5 Ways to manage and funded business entity.......................................................................10
M3. Advantage and disadvantage of formation of different type of organsiation....................11
D2) Critical evaluation of formation of different business organisation...................................13
LO4................................................................................................................................................13
P6. Recommend legal solutions................................................................................................13
M4. Compare and contrast of different sources of legal advice................................................14
D3. Effectiveness of legal solutions..........................................................................................14
CONCLUSION.............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business law defined as selective body of law which govern business and commerce and
is also considered branch of civil law deal with issues related to public law and private law. This
report will analysis different aspects and elements work behind formation of laws. Henceforth,
report will emphasis over different sources of law in context to commerce. Role of government
will also elaborate in making of law and also the project will give emphasis over certain ways
that support application of statutory and common law to provide justice in court. Different
impacts will also disclose created by company act and contract law over business operations.
Furthermore, project will disclose different types of business organisations can be formed
legally. Further this project will discuss how different business entities are managed and funded
by organisation. Legal solutions will also cater in respect to certain case studios to address some
situations.
LO1
P1. Different sources of law
Sources are the ways to generate and collect necessary information to achieve the bets
level of formation of laws and legal regulations. Sources involved under law formation are
segregated into legislation, customs, judicial precedents, conventional laws and justice equality.
Legislation: Legislation comprises with different legislative requirements and need. It
comprises with provisions that can favour to the best level of formation of legal structure.
Legislation is deemed as primary source of law. All provisions applicable are clearly mentioned
in this part so that all required areas can be covered by the government. Legislation contains
wide range of ambit such as regulate, authorize, enable, provide funds, prescribe, sanction, grant,
declare or to restrict (Crick and Crick, 2020). All the ambit are clearly mentioned under
legislation section. Legislation are further segregated into two parts which are supreme
legislation and subordinate legislation. Supreme law is the present legal regulation originate
from the sovereign strength of the country. Supreme legislation can never be repealed, annulled
or managed by any other legislative authority. Subordinate legislation are further influenced or
dependent upon the supreme legislative authority.
Customs: Customers are considered as the established model behind social behaviour of
communities. Customer are considered as among the traditional sources that allow formation if

laws in country. Custom further comprises into different factors such as like law formulated by
custom of famous motion, law formulated through judicial choice and law is constructed with
support of doctrinal writings and clinical discussions to cope up with legal standards. Apart from
the above mentioned prominent customs participate in formation of law there are many other
customs also take part in formulation of laws in country (De Silva, Wang and Kuah, 2021).
These customs involve antiquity, continuous, obligatory in nature, consistency, reasonability,
peaceful enjoyment and certainty. Customs are the main fundamental behind creation of laws in
the respective territory.
Judicial Precedents: Judicial precedents are also among the major source used to formulate
laws in country. This involves previous judgements made by court and justice. With the support
of legal treatment declared by courts in previous time laws are developed and modified. Various
principles work behind the judicial precedents that support the law making are consistency,
hierarchy and foundation related to own decisions. All the principles play basis behind
formulation of laws in country (Gupta, Gupta and Gupta, 2019). Precedents provide a suitable
basis as every judicial decision comprises some kind of fundamental behind formation of legal
transaction. Judicial precedents always remain conclusive in law making so that proper factual
information can be generated out of the legal regulations formed.
Conventional Laws: Conventional laws become the modern era need and requirements related
to law and legal structure. Globalisation has been increasing massively at a global level.
Business environment become very volatile that allow business entities and organisations to
expand at the international level or in international territory to formulate legal regulation and
laws. These laws deal with commerce and legal dimensions involved under business
environment (Hopkin and Rosamond, 2018). Requirements of business environment and
especially in context to international trade keep on changing. In order to support all the modified
need and demand of the sector conventional laws provide support. Conventional laws play huge
role in matching up with the trading related need, and they play huge role in supporting the
growth of commerce in national and international market.
Justice Equity: Justice equity is also among the core values behind formulating laws and legal
regulation in country. This fundamental implement in a situation where judge feel or assume that
the existing legal regulations and laws are completely not capable enough to provide legal
support to deal with a certain situation or dispute. In such a situation judge take support of this to

form new regulations and construct new laws. Under this judge make decisions on the basis of
equity, good conscience, fairness and justice. All the four elements provide support to the judge
in formulating the best level of legal fundamentals and structure to meet the existing and related
future need and requirements of society.
The above mentioned sources are prominent and all possible ways to formulate laws and
legal regulations. In context to any law making any of the source mentioned above is used and
consumed so that best level of legal assistance can be granted.
P2. Role of government in law making and the ways statutory and common law applied
Government play huge role in making or formulating laws to match certain requirements
of the country. Law making comprises with multiple stages like ruling party conference gives
vision, goals and direction, executive draw up policy on an issue, finalising a policy and the last
stage is to finalise a law. Government play huge role at all level of law making or all the stages
involve under law making. Government provides a clear vision, goals and aim behind
formulating any certain or specific law. A proper conference is executed where media and all the
necessary stakeholders are called to witness the conference. Executive stage is the place where
government try to implement the policy as a government policy (Khairuldin, Anas and Embong,
2018). Government tries to keep up the link between legislative and executive structure. This
become the duty of the executive branch of government to develop or formulate policy and laws.
At this level government also negotiate with all different stakeholders such as public, opposite
parties, non government organisations and other such stakeholders so that all key requirements
could have been addressed through policy making. Government also draft papers such as green
paper and white paper to allow all possible debates over policy making. Third stage is where
government try to finalise the policy or law. Once the law or policy is fully debated with all
stakeholder groups than government try to implement the certain policy or law with suitable
legal process. White paper often considered as basis behind any legislation. Government in the
end implement or pass the law. At all level or stages role of government is supreme. Stages like
bill goes to respective committee. Once the cabinet approval is achieved draft send to public
domain. After receiving comments government try to modify the law. In the end respective
legislative authority pass the law.

M1. Effectiveness of legal system in recent reforms and developments
Legal structure always witness development and improvement based on need and
requirements. In recent time different developments such as recast in 2021 related to Brussels I
regulation. In the end of 2020 United Kingdom drooped the European Union jurisdiction and
procedure to enforce their rights. Many more recent developments such as Hague Contention on
Choice Agreement 2005 and many more are formulated pr entertained due to strong legal system
or structure. Legal system in UK comprises with certain positive elements and some negative
factors could affect the efficiency of the legal structure and system in the country. Due to open
nature and approach of the UK Legal system regulations related to European Union could easily
be passed (Mourby and et.al., 2019). The wide nature of the system could benefit all the
potential legal requirements of the society. The negative area also in legal system is that it is a
time-consuming practice. Many times as the law went into public domain that create negative
impacts over jurisdiction or in law making. The practice related to public proceeding is
complicated in nature as many times this could modify laws and legal structure without any need
and requirements.
D1. Coherent and critical evaluation of legal system
Legislation are many times confusing to implement. Not every individual is literate
enough to understand the respective laws and legislations. This is critical as every time a normal
human being want to understand about any law it required to take legal advice of professionals.
For example legislation like justice equity and all other required professional level of guidance
to understand the respective law.
LO2
P3. Company, employment and contract law impacts upon business
Company law is the mandatory requirements attached all private and public limited
companies entertain business operations in United Kingdom. This legal structure provide a right
balance for business entity so that they can match up all statutory requirements related to the
business. Company law also create positive impacts to sustain an effective flow of business
operations. This guide businesses to conduct annual meetings, appoint board of director and
many such regulations. This also disclose the right accounting records by allowing mandatory
audits at the end of every year. All different regulations attached with companies act allow the
businesses to easily run and control different business activities. The regulations and

requirements attached with the company act is mandatory in nature that denote that they must be
applied in any situation (Porter and et.al., 2018). Legal requirements are always a mandatory
thing or situation for businesses and companies that in any case needs to implement by business
entities. The biggest impacts companies act create is that it could cherish the business operations.
The processes also become smother due to the application of companies act. Along with the
different positive impacts there are certain negative consequences businesses need to suffer is
that it could motivate the companies to deliver some time-consuming practices that has no
relation with the business operations. Conducting annual general meeting every year and many
such practices could somehow create hustle for businesses. Companies act comprises with
mandatory type of need and requirements which create extra legal burden over management to
implement the regulations.
Application of employment laws over companies and business create different positive
and negative impacts over the operations of business entity. Laws like equality act, anti
discrimination, equal wage payment act, data protection and many such legal act are applicable
in this regard. All these legal regulations could develop a suitable consequences in regard to
growth of company as it could minimise the discrimination under recruitment and selection of
candidate which could deliver potential employees at all level of organisation hierarchy (Ragas
and Culp, 2021). Employment law also catered right to employees which further could boost the
employee satisfaction in the organization that could also advance the productivity and
operational effectiveness of company operations. There are certain disadvantages like advancing
the system to protect the data, hacking issue and many such challenges also created due to the
application of employment law.
Contract law on the other hand provided legal support to all types of contractual
agreements established between stakeholders. This could support companies and businesses in
legalising every agreement and transaction associated with the business. The major impact
contract act could create is that it could empower more legal operations and could support
business ventures to minimize the negative aspects involve in business. Contract law also
supported in protecting rights of different stakeholder group such as suppliers, small
manufactures to witness claim over big organisations and ventures.

M2. Difference between legislation, regulation and standards to analysis potential impacts upon
business
Legislation is a mandatory requirement which companies and businesses need to
implement and fulfil in any situation. Regulations are the outcome of legislation designed by
government. Standards are the set hierarchy established by government in order to implement
laws and regulations in the best way possible. In order to analysis potential impacts related to
business operations all the legislation, regulations and standards play huge role. They provide
support to businesses to monitor and control business operations, analysis growth and outcomes
of business activities and also provide significant legislative advantages to businesses
(Schmarzo, 2020). Every business venture aim to analysis the impacts create by business
decision-making and these regulations, legislation and standards could somehow improve the
decision-making practice of business entity in the normal course of business.
LO3
P4. Different business organisations legally formed.
Organisations in UK are segregated into different types. Every business has some kind of
legal involvement when it comes to establishing the business entity. Entities are titled as public
limited company, private limited by shares, company limited with guarantee, unlimited
company, limited liability partnership, community interest company, industrial and provident
society and royal charter.
Public limited company
Public limited company is a business venture in which normal people can invest. This
business is formed under the legal system of the United Kingdom in respect tp companies. On
the basis of the legal structure of United Kingdom there must be two shareholders. Company
must have issues shares of at least £50,000 or the prescribed amount (Lafuente, Vaillant and
Vendrell-Herrero, 2017). Office of company must also get registered along with the
authorisation of business. It must contain at least two directors. Company must hold a qualified
company secretary. All these are the key requirements associated with the business.
Private company limited by shares
Private companies are also needed to get the business registered under the legal structure.
Under the private company limited by shares the obligation of directors and investors is

associated with the number of shares they promised to buy (Malecki, 2018). This business model
must be registered with company house of UK. Registered office must hold by business entity.
One director and one shareholder must be associated with the business entity. Standard industrial
classification codes needed to be included. Details related to person of significant control must
also be included in the application.
Company limited by guarantee
Company limited by guarantee must be registered with the company house, the registrar
of companies in UK. This company must own atleast one director and one guarantee. Under this
when it comes to register the business detail about the registered office must also required to
submit under this practice.
Unlimited company
Registration of Unlimited Company is occurred under the Companies Act 2006. Most of
the companies could have been formed electronically an unlimited company can only be
registered by fulfilling the relevant section of paper from IN01 (Axmedjanov, 2020).
Limited liability partnership
Limited liability partnership is very popular form of partnership business. This business
model contain limited liability of partners. Under this partners of business are only liable to the
amount they have promised to pay in dissolution of partnership firm. The limited liability
partnership must be registered with the Company house. It must contain 2 members. It also must
provide an address of its registered office at the time of incorporation of this business venture
(Abouchedid and et.al., 2017). This business type is very popular in United Kingdom as it is
very easy to incorporate and also the fast way to start the business.
Community Interest company
Community interest company is a type of business idea introduced by the government in
year 2005 under the Companies (Audit, Enterprise and Investigations) Act 2004 (Rita and
Priyanto, 2017). This act is designed to promote social enterprises who wish to use the funds in

the service of people of country. This type of organisation can be formed online as well over
internet. Existing business venture can also convert into this type of entity.
Apart from the above mentioned organisations there are other entities such as Industrial
and Provident Society and Royal charter is also a part of the UK. Different ventures contribute in
the overall growth and development of United Kingdom in different manner. Legislations are
applicable for all types of entities operate in UK.
P.5 Ways to manage and funded business entity
Management in every business is conducted with support of management, director, board
members and other such stakeholders. Board of director take all decision related to the
management of operations in organisation. Every year general meeting also conducted in which
all decisions and results are presented. Board of director in business entities take decision related
to present operations and also about the future functional direction associated with the business
entity. Majority of business venture follow a set hierarchy contain multiple departments and
functional areas. Decision related to each department is taken by the head of the respective
department. The decentralized process of decision-making allow the organisation to achieve the
best level of control over decision-making in organisation. Decentralised process allow the
business entity to conveniently and professionally manage all different functional activities
associated with the organisation (Wahyuni, Alam and Pakki, 2020). IN context to the business
organisation management is among the most significant functional activity associated with the
venture. This allows the company or the organisation to achieve all its objectives behind the
formation of such entity.
In most of the organisation all decisions related to management are taken by the board
members or directors appointed. The further process is that organisation structure is distributed
into multiple teams and structure that can incorporate bets level of managerial decision. The
major part management play is about to take the best level of decision-making that can favour
the overall growth and development of venture.
Funding practices
Funding is about to collect financial resources to channelise different functional areas
associated with the entity. Funding practices are distributed into different part such as sources of
funds, approaches to generate funds and other such manner. Following are the funding sources
available for the business ventures.

Banks are the prominent funding source available for the business venture. This is the
most common source of funds available in front of the business entity. This source is used by
majority of institutions as it is safe and charge convenient interest rate. Also this source is
capable enough to mitigate both long term and short term financial need and requirements of
business venture (Imran Nkun, 2020). Banks charge interest that is also convenient enough for
the business entities. Also the repayment is done with equal monthly instalment system that also
create a specific and fix burden over liquidity of the organisation. Facilities like part payment
and full settlement is also available in case of banks are approached as a funding source. This
source is explore by both large and small ventures to allocate funds over different projects
undertake by the entities.
Financial institutions are also among the most prominent funding source available in
front of the organisations. Companies and business entities approach this source to collect the
funds for both long term and short term plans. Financial institutions charge fixed or flexible rate
of interest against allocation of financial resources to business ventures. They charge security
against providing funds for the entities (Thodla and Kundu, 2017). Company and business
venture can repay all the loan in a stipulated time and also before the allocated time. This source
is flexible enough to mitigate all types of financial needs associating with the business venture.
Crowd funding is also a crucial financial source available in front of the public limited
companies. Almost every entity that is public limited explore this source of finance to collect
and generate funds. Crowd funding is an option where companies issue shares so that people get
opportunity to invest in the business operations of organisation. This source allows the
organisation to collect all the finances they need. Also this source is safe as it does not require
any security to put in against to collect funds. This source is also critical as it allows the business
entity to sacrifice some amount of ownership in against to collect funds.
The above mentioned sources are prominent to collect financial resources. All the
sources mentioned above contain some advantage and disadvantages.
M3. Advantage and disadvantage of formation of different type of organsiation
Advantage of public limited company
 This type of business allow investment from general people.
 Resources get easily collected under this organisation.
Disadvantage of public limited company

 Obligation like conducting audits every year, cratering general meetings and many such.
Advantage of private limited company
 Liabilities is fixed under this.
 Easy to form the business organisation.
 It is a separate personality.
Disadvantage of private limited company
 Registration process is hectic.
 Division of ownership.
Advantages of Company limited by guarantee
 Limited liability.
 Professional status.
Disadvantages of Company limited by guarantee
 It must incorporate with company house in UK.
 Restrictions with company name.
Advantages of Unlimited company
 Easily formed.
 Convenient approach to deliver business.
Disadvantages of Unlimited company
 Complex process of registration.
Advantages of Limited liability partnership
 Limited liability of partners.
 Easy to incorporate business.
Disadvantages of Limited liability partnership
 Complexity in finalising name of business.
Advantages of Community Interest company
 This entity support the socio-economic.
 Improve brand value of business venture.
Disadvantages of Community Interest company
 This entity is influenced with the political environment of country.

D2) Critical evaluation of formation of different business organisation
All businesses are registered under the legislation. The key issue is related to the process
which is time-consuming. The practice of registration create extra burden in form of time and
money. Also the legal requirements related to director take time to appoint. There are also not
specific sources available which can project the fruitful information related to documentation.
LO4
P6. Recommend legal solutions
In context to business entity there are different situation or disputes arise. There are
different legal solutions in context to each such dispute can be projected in the following
manner.
Problem One: In context to employment disputes like health and safety of employee, equality
of pay claims, compromise and service agreements, wrongful or unfair dismissal claims and
other such disputes arises (Narooz and Child, 2017). Legal solutions like proper implication of
each and every law at the work place. Further human resource team can overlook these issues. In
context to the area of employment legal solution is based on the contract of employment and
condition on which employment is provided. For example in Marks and Spencer Company many
disputes about the employees has been solved with support of the legislations like equality act,
anti discrimination law and many such.
Problem two: Breach of contract, contesting a damage and dispute between directors are the
usual issues. Under this based on the terms of contract and agreement legal guidance is given. In
this legal solution involve contract law and such related documents. For example Tesco
Company has faced many commercial disputes with its suppliers that could be dealt with support
of this legislative applications.
Problem three: This involves commercial lease, real estate and investment properties issues.
This contains legal advice based on the ownership over such property. Companies and entities
can visit to courts to resolve these issues (Lewis and Vandekerckhove, 2018). Commercial
disputes must be overlooked at the courts as it risk a huge amount of investment value of
business entity. Further property is on the risk under this which further cause to a risk factor
under. For example Marks and Spencer Company has empowered itself to face and deal with
different commercial property disputes related to property under this legislation.

Problem four: Rental is associated with the agreement. In case the agreement is done between
both the parties than vehicle is hold for the time of the contract. In case of not such agreement
has been projected than any time the vehicle could have been taken back. In the present case as
there is not any specification is given which deemed that there is not any agreement has been
done. In case of liquidation the implication is legal so the party needed to submit the vehicle.
Problem five: The current case is related to the unprofessional behaviour at the work place. In
the current situation as it is not mentioned that there is not any warning was given to those
worker. Just a direct action has been taken. This is completely wrong as there is a process that
company needed to follow. Company should give a proper warning first than to monitor the
improvement and if the repetition is still conducted than take actions like this. Employees has
right to challenge the decision of company in court.
The above mentioned solutions and guidance are based on the usual circumstances or the
normal issues arises in such disputes. Always further the legal solutions or guidance of the
dispute is based on the situation and case study.
M4. Compare and contrast of different sources of legal advice
Legal advice can be collected through sources like internet, books, advocate, company
secretary and other legal professionals. These professionals will provide professional level of
advice to the people for resolving all disputes.
D3. Effectiveness of legal solutions
Legal solutions are effective based on the cleverness of advocate. Effectiveness always
influenced with the level of outcomes generated out of the legal advice allotted to the individual.
Level of benefits always decide the effectiveness of the legal solutions. Also it influenced with
the laws and regulations.
CONCLUSION
Sources of laws are segregated into legislation, customs, judicial precedents,
conventional laws and justice equity. All these are the prominent sources used to formulate laws
and legal regulations. Government play role at each stage of law making from the stage of
introduction to the final implementation of such legislation. Role of government is direct in each
and every law or regulation implemented. Company law and employment law influence each
and every functional area of company. These legislations could somehow improve the trust
between stakeholder and organisations. There are different types of organizations such as public

limited company, private company limited by shares, company limited by guarantee, unlimited
company, limited liability partnership, community interest company, industrial and provident
society and royal charter are the entities operate in UK. In usual circumstances board of director
or management take role in managing business operations. Finds are collected under the business
entities through banks, financial institutions, crowd funding and many such key funding sources.
Legislative solutions are majorly based over the situation.

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