Business Law: Legal System, Business Impact, and Solutions Report

This comprehensive report delves into the intricacies of business law, providing a detailed analysis of the UK legal system and its various sources, including Parliament, common law, and European Union Law. It explores the role of government in law-making, differentiating between executive, legislative, and judiciary functions. The report then examines the application of statutory and common law within the justice courts, followed by a comparison of criminal and civil law. It evaluates the effectiveness of the legal system through recent reforms and developments, illustrating the impact of company, employment, and contract law on businesses with specific examples. The report further distinguishes between legislation, regulations, and standards, assessing their potential impact on businesses. It provides a critical evaluation of the legal system, explaining the legal formation of different business organizations, and discussing the advantages and disadvantages of unincorporated and incorporated businesses. Finally, the report recommends legal solutions for resolving various business disputes, offering examples of how parties can obtain legal advice and support.

BUSINESS LAW

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART 1............................................................................................................................................3
Explanation of the legal system, 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
Court system of UK.....................................................................................................................5
Difference between criminal and civil law..................................................................................5
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments...............................................................................................................................5
Using specific examples illustrate how company, employment and contract law has a potential
impact upon business...................................................................................................................5
Differentiate between legislation, regulations and standards to analyse potential impact upon
business........................................................................................................................................6
Provide a coherent and critical evaluation of the legal system and law......................................6
Explain how different types of business organizations are legally formed.................................6
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process............................................................................................7
PART 2............................................................................................................................................9
Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support.....................................................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Business law are that rules an regulations which is important for an business organization
in its establishment. These laws also help in making an organization dealing with its activities in
legal manner. These laws are having very broad scope that is helpful in covering of rules and
standards which forms major part of it. Such laws are also helpful in managing of various
business related activities and helps in channelizing of product and services. This file is going to
cover various sources of law, role of government in law making, different type of business
organization. Management and funding of this organization is also going to be explained. In the
end legal solutions is going to be explained
MAIN BODY
PART 1
Explanation of the legal system, different sources of law,
In current scenario, each and every nation perform its activity on the basis of decision taken by
legal system. It is essential that every sort of decision must be taken only after considering the
rules of legal system. In context of United Kingdom, they have set standard for the world in
terms of legal system because of the way they use for making any of the decision. It is among
well-established legal system where any of the bill has to pass several stages and then only it can
be finalised for any of the new law or Act. In addition, any of the law or regulation which is
being passed by parliament body should be followed and if any of the person or entity fails to
work as per guidelines then different sort of penalty can be imposed. The legal system has given
their supreme power to Queens under Royal Assent Act, 1961 (Greenleaf, 2018).
UK is one of the nation where different authorities have the power to commence law but
they are needed to ensure that their process of forming law and level of law should be specific
which must be helpful for general public. Some of the popular sources of law in UK are listed
below:
 Parliament: This relates to that particular law where member of parliament has to work
for the commencement of law but still they need to obtain final approval from Queen
who holds highest level of power in UK. Secondly, while commencing law under act of
parliament, it is needed to make clear that contribution from the side of House of Lords
and House of Commons is equally important.
 Common law: There are some of the conditions which is unexpected for law making
bodies due to which parliament have distributed its power to judges where they can
commence law and declare their decision. This particular strategy is of commencing law
is effective because of the time period it consumes to declare any of the result. But, the

thing which is to be considered is that law is applicable to each person with immediate
effect (Bird, 2016)
 European Union Law: It was also among important source which has commenced
number of laws and regulation within the premises of UK and all of those laws are
applicable to each of the person and they are needed to follow. The contribution of EU
Law in law forming is around 50% of the total number of law which shows how
important role has been played by European Union Law for UK.
These are some of the main bodies of UK which has been commencing laws and regulation
within the premises of UK since long time period. Also, this laws are result oriented in nature.
Explain the role of government in law-making and how statutory and common law is applied in
the justice courts
Government is the supreme authority which plays most crucial role in law formation and
policies that are related to it. They are formed for the betterment of people living in society. Also
these laws has become imperative to an efficient implementation such order is to be governed by
the individuals living in a country. Role of government has been explained as follows:
Executive role: Such role is related towards forming of policies that has to be applied
through UK. For enforcing of legal provisions that is required to be under this role because it is
necessary to maintain both law and order( Bird and Park, 2016).
Legislative role: These are the role in which various laws have to be enacted in which
presenting of a bill is done in the parliament. Then two houses House of Lords and House of
Commons have to discuss the bill which is required to make a permanent law.
Judiciary role: In this an government has an role of assessing the courts under various
jurisdiction and also effectiveness has to be there in passing of judgement. Such result has to be
obtained through building of required number of courts over all the delays upon different cases
which can be avoided. Members come under the panel of government that have been mentioned
above.
Various types of laws
Laws is that kind of rules and regulation which are being formed in order to mainly
maintain balanced and order in society these laws are related to various aspects of society.
Theres various types of laws like property, family, common law, statutory laws, competition law
and tort of negligence. Further there are two types of laws that has to be mentioned and are used
in courts that had been separated jurisdiction has to enter into cases and work on individual
pattern. Also detail explanation is as follows:
Common law: Under this an judgment has been made upon the basis of judicial
precedents this means that and case of law has to be issued with facts can be used in future
regarding same case. This is going to make passing of judgement easy under similar situation.
Formation of new law is not required under similar situation. This is known as common law.

Judgement case comes out on a new law then it can be considered equal to court decision. These
are very important and are found in the form of report also (Abril, 2016).
Statutory law: These are those concrete laws which are being formed by the government of a
country through proper procedure. Such laws are available in written form and are applicable all
over the society. It is also able to highlight the effectiveness of this as per case scenario. Also
legal rights are being protected under it of an individual.
Court system of UK
In UK legal system is one of the most important court system and consists of various
courts which are being used for different case hearing. The leagal system can be better
understood through hierarchy of court that is Supreme Court is the highest court of appeal and
then comes High Court that is divided into three parts crown court for criminal matter, court of
appeal for civil and family court for family related issues.
Difference between criminal and civil law
Criminal law
 It deals with crime committed in public
at large.
 In this punishment is given in form of
imprisonment and fine has to be paid.
Civil law
 It deals with wrong committed by an
individual.
 In this law of trot is followed which
deals with problem within society.
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and developments
Legal system of UK has seen lot of advancements in it. Various laws has been developed
during the course of time which has lead towards development of legal system in UK. Also
proper system of justice is being formed which can be explained through hierarchy of court.
Using specific examples illustrate how company, employment and contract law has a potential
impact upon business
Government in UK has made various laws regarding business organizations and this
function such are being explained as follows:
Company law: These are the laws that are being enacted for welfare of business
organizations that is going to lead in establishing of an organization. Rules and regulation are
been explained under Companies Act 2006. This can be understood through example that is
YTY Ltd is an company that is willing to expand its company and for this purpose do fund
raising. Funds collected have not been used for the mentioned purpose. Under such condition
cases can be filed towards an organization.
Employment law: Employment law are the laws which are being formed in order to protect all
the employee from getting adversely affected due to conditions in workplace and task can be
accomplished easily. These laws are form to keep health and safety measure within workplace
that is going to make employees feel safe. Such rules are mentioned in Employment act 2002 and

equity Act 2010 which is related to health and safety. For instance employee has been eliminated
from job on the basis of gender. Then case can be filed against him.
Contract law: These are that kind of laws which has been formed in order to maintain legality
within a agreement and make it legal within the eyes of law. It is an important aspect as it deals
with both financial and mutual relation. Under these laws various elements are being given that
specifies, differentiate between agreement and contract. An important line is there to justify this
law that is all agreements can be contract but all contract cannot be agreement. For example an
contract has been signed between two parties over the supply of raw materials but an party fails
to do so. In such situation case can be filed against the party.
Differentiate between legislation, regulations and standards to analyse potential impact upon
business
Legislation: These are those concrete laws which are being amended formed in order to make a
law applicable over a country through proper procedure. This is very important as it helps in
maintaining of balance within a society.
Regulations: They are that type of instructions which are being enforced in the form of
administration rules and have been originated through those laws which are applicable in
regarding to existing legal provisions. Such application is mandatory Barrédy, 2016).
. Standard: These are the fixed guidelines or requirements which a company has to fulfil with
regard to its products or services. These are implemented by government to ensure that minimum
criteria are accomplished to maintain the quality of the products or services.
Provide a coherent and critical evaluation of the legal system and law
Legal system of a country should be very strong and is required to be flexible in nature
that is going to make it compete with modern legal scenario. This also promotes balance and
peace in a society. In every legal institution various authorities are there which consists of law
making power authority. As laws in UK are very rigid and consist of long procedure. Such things
make it very much complicated and delay the process of justice. For example UK legal system is
filled with so many complexes it is very difficult to understand it. This makes quality of justice
poor.
Explain how different types of business organizations are legally formed
Business organizations have been that type of organization which is dependent upon
manner within which business is required to be set-up. It is meant this is dependent upon nature
of business that can be small, medium and large. These are explained as follows:
 Sole proprietorship: These are that type of organization in which a single person runs
the business and he is the owner of it. All kind of things related to business are being
handled by him alone. Such person is called as sole proprietor.

 Partnership: It is that kind of business in which two or more parties come together in
order to achieve a common goal that is to earn huge profit. Also these partners are having
liability of business and it is completely dependent upon investment that has been done.
Legal documentation has to be done in order to support the agreement that has been made
between two parties.
Limited liability Company: Such kind of organization is related to that kind of businesses that
are being benefitted in manner that rebate is there on tax. Also these organizations have partners
as its owner. They have advanced working environment in which partnership is done between
them.
 Corporation: Under this main purpose of an organization is to provide benefit and
substitute services of product to customers. Lot of capital is required to run such business
and time is also lot for setting it up. Various ways are there for the companies to increase
the fund and they are
1. Issuing of shares (Greenleaf, 2018)
2. Through bonds, debenture can be a source.
3. The best method of raising fund is related to monetary funding is through debt method.
4. Loans from various private and government financial institution.
Advantages and disadvantages of unincorporated and incorporated business with its difference
between in terms of starting process.
Incorporate Organization: This business organization is related to individual who has
its existence as per the contract formed. Fund can be raised through taking loan from friends and
relatives or any other trustable sources.
Advantages:
 Right of perpetual sequence is there in an organization.
 Major advantage of this organization is that case can be file against business
organization.
Disadvantage:
 Business formation is not easy it is very much complex and rigid.
 Legal documents of an organization are required for getting registration.
Unincorporated Organization: This kind of business is being majorly operated and
events have to be done in order to earn lot of profit. Major benefit of this organization is no tax
has to be paid because organization does not exist as a legal identity. Sometimes funding is also
very much difficult.

Advantages:
 Annual accounts are not important over maintaining.
 Business of these kinds are having lower compliance cost.
Disadvantage:
 Legal authentic contract in an organization which does not have time.
There is major difference between incorporate and unincorporated business that has been
discussed below:
Incorporated Association:
 Name and address is required to be attested with proper manner.
 Memorandum of association is also an important document (Lee, 2017)
 Particularly shareholders and mangers have to be nominated within the business.
 Approval of stakeholders and article of association is required to be designed.
 Standard Industrial classification to companies’ house is required to be submitted
Unincorporated Association:
 Objective should be there.
 Valid contract is to be made.
 Associating of liability is not limited but an important share amount.
Some major advantages and disadvantage of companies over partnership firm are defined below:
Advantages:
 Organization should be having benefit over perpetual succession.
 Organization has one main benefit which is changing that is very difficult to be made.
Disadvantage:
 Not easy to form an organizations within partnership.
Decision making process is required lot of fund on the other side and is easy to take practical
decision (Peterson and et. al. 2016).
PART 2
Recommend legal solutions for resolving a range of disputes using examples to demonstrate how
a party might obtain legal advice and support
Legal solutions are that kind of solutions which are founded in order to make disputes get
settled that has taken place between two parties. Such solutions are being mentioned under
Alternative Dispute Resolution System which are formed in order to solve any kind of problem

that has been there between two parties. It consists of arbitration, conciliation, negotiation and
mediation. They are being explained with examples as follows:
CASE 1: In this case it can be observed that Orange Computers Ltd store has contracted
employees and provide them salary with commission but due to economic problems. Companies’
financial condition was not good and Fred has asked Gordon to forgo his salary for 2015, 2016
and 2017 should only accept payment of commission. Reason given for this is to make business
sustain. Contract has been accepted by him suddenly in 2106 economic growth was seen in
certain areas. Now Gordon feels that he should get wages for 2017.
In this case method that is going to be used is of arbitration. According to this an arbitrator has
to be hired who is going to hear to both parties and then is going to give judgment over the
dispute. Contract law is going to be applied in a manner that an contract has been formed
between Fred and Gordon over the salary of 2015, 2016 and 2107 all elements exists which
makes it a valid contract. Employment law is to be applied to get compensation with salary
because these laws are formed to protect employees and its rights.(Rohlin and Ross, 2016).
CASE 2
As per the case Janet has taken an internet package and got it installed from Virgin
Media. Phone line is also included in the pack. Engineer come and arranged the data at 9 am and
installed the internet. Telephone was not installed because he did not find the point and told that
he is going to comeback after talking to his super visor. He did not return to complete that task
after this. She called Virgin Media and complained about engineer. The phone line was setup
after three weeks but at the time of bill she was charged for whole package. Janet is extremely
upset since she believed that her phone line should be charged after 3 weeks only. The method
that is going to be used is of negotiation. There are various elements of contract which give it
validity like offer, acceptance, consideration, capacity and legality. In this case the person come
to put the telephone was bound by a duty under the contract taken place between Janet and
Virgin media but he did not follow the duty hence contract can breach by Janet.
CASE 3
Case 3:
In this case the company Blackhorse Limited is having debt of £100,000 and it has been
incurred three months ago the company has recovered its previous level of turnover, but that
turnover is now spread over ten customers. In this case negotiation is going to play important
role in dispute solving. Negotiator makes meeting fixe and makes both parties agree over an
common point (Wen, 2016). Compulsory winding up can be avoided only through merger that i
going to provide stability to the company.

CONCLUSION
From the above file it can be concluded that business law is very important for
establishment of an organization. Sources of law have been covered with role of government in
law making. In the end legal solutions has been given over various problem.

REFRENCES
Books and journals
Abril, P.S., 2016. Reimagining the Group Project for the Business Law Classroom. J. Legal Stud.
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Bird, R.C. and Park, S.K., 2016. The Domains of Corporate Counsel in an Era of
Compliance. Am. Bus. LJ. 53. p.203.
Bird, R.C., 2016. Special Report: Legal Scholarship in Business Schools. Am. Bus. LJ. 53. p.9.
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business law classes. J. Legal Stud. Educ. 34. p.317.
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Coverage in Asian Data Protection Laws. In Session II Materials, Asian Business Law
Institute (ABLI) Data Privacy Forum, Singapore (Vol. 7, pp. 18-21).
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business e‐commerce adoption and its impact on SMEs competitive advantage: The case
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Lee, E., 2017. Financial inclusion: A challenge to the new paradigm of financial technology,
regulatory technology and anti-money laundering law. Journal of business law. (6).
pp.473-498.
Peterson and et. al. 2016. Law School-Business School Collaboration: An Examination of
Interdisciplinary Course in JD/MBA Programs. Atl. LJ. 18. p.21.
Report of the Task Force on Defining Key Competencies for Business Lawyers, Business Law
Education Committee, ABA Business Law Section, 2016. Defining Key Competencies
for Business Lawyers. The Business Lawyer. 72(1). pp.101-156.
Rohlin, S.M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from
new and existing business. Economic Inquiry. 54(1). pp.361-374.
Wen, S., 2016. The Cogs and Wheels of Reflexive Law–Business Disclosure under the Modern
Slavery Act. Journal of Law and Society. 43(3). pp.327-359.