Business Law Report: Nature of Legal System and Business Implications

This report provides a comprehensive overview of business law, beginning with an introduction to the legal system and its fundamental principles. It explores various sources of law, including customs, European law, common law, and statutory law. The report then examines the role of government in law-making, detailing the procedures involved in creating and amending laws. It also discusses the application of statutory and common law in courts, including relevant case studies like Lee v Lee Air Farming Ltd and Industry V Peter Bottrill. Finally, the report concludes by analyzing the potential impact of company, employment, and contract law on businesses. The report aims to provide a clear understanding of how legal frameworks shape business operations and decision-making.

7 BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1 Nature of the legal system .....................................................................................................3
P1 Different sources of law.........................................................................................................3
P2 Role of government in law making and statutory and common law applied in respect of
justice in courts...........................................................................................................................5
LO 2 Potential impact of law in respective of business ..................................................................7
P3 Company, employment and contract law having potential impact upon business................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Laws are mainly imposed to protect the right of the parties and also provide security to
the society and individual in respect of committing any such activity which is in favour of them.
Laws are mainly designed by the government or parliament and it is bound on judges to follow it
without any delay or negligence (Teubner, 2017). As law and legal system are mainly based on
trust which is formed between the parties in respect of any illegal activity which is committed at
work place or at the time of dealing in any transaction. Thus, Business law or commercial law
refers to such law which is designed or regulated to control the overall activity in the business.
Business law mainly imposed on such activities which give rise to civil and criminal law. Thus,
present report is based upon the determining the different sources of law. It also includes the role
of government in respect of law making and also identifying the aspects relating to statutory and
common law in respect of justice in courts. Lastly the report ends up with the explaining the
company, employment and contract law which carrying the potential impact upon the business.
LO 1 Nature of the legal system
P1 Different sources of law
Sources of law carries the main origin in which the whole laws are depends upon and also
it includes 4 major types of sources such as:
Customs: It is considered to be one of the most important source of law as under this law they
mainly related from the ancient time. As people which are doing things from the ancient time are
continuing theses things in near future (Cann, 2018). Thus custom law are imposed in respect of
changing the habits of the people due to changes in time. People belong to different caste,
culture, background or country and thus they carry such things which they came from their
anchester. Thus, in such manner, custom law are designed by keeping the need of society in
better way.
European Law: This law is mainly regulated to protect the right and security of the European
member and they design such rules which is mainly imposed to the society only. This law mainly
come into existence in respect of facing any conflict between the EU and national law. The
legislation are imposed in respect of viewing the condition of the country when they are facing
any illegal offence which affecting the rights of the individual (Dicey, 2017). Thus, in such case
the European commission is imposing laws to protect the interest of the society in dealing in any
such matters.

Common law: It is the part of the English law in which the law is relevant to the case law. As
they are mainly based on unwritten laws in which the judgement is given on the bases of
verifying the cases in which the judgment is already given by court. As if the any case arises in
respect of the case which is relevant to the previous case, the judgement is to be given by
referring the previous case and than accordingly the decision is given (Zander, 2015). In this the
judges carry the right to use the decision which is relevant to the previous case but the condition
is that the previous case is relevant to the recent case and also by giving judgement it not affects
the right of the parties in respect of getting justice. This law is mainly came out from the customs
and precedent which is given by the judges in courts. The mater are related to civil and criminal
aspects. This in such manner the civil cases are relevant to the infringement of property or
hacking any company information or committed fraud. In case of criminal matter it mainly
resulting to committing murder or any rape cases or also dealing in any illegal activity (Nonet,
Selznick and Kagan, 2017). As in context of punishment, it depends upon the case and also the
nature of the crime which affects the other partiers rights.
Statutory law: It is also known as written laws which is stated by the parliament and also it is
mentioned under the constitutions. As in this aspects, the parliament had right to changes the
laws when they find that the people are violating the norms or misusing the country laws for
their personal benefits. The major aspects arises in respect of giving judgement to the parties In
respect of the cases which is filed in courts and also the decision of the respected cases is to be
given on the bases of laws which are imposed by the parliament (Campbell, 2016). Parliament
also carry the power to amend the existing laws when they found that the right of the people are
not secured and also they are not getting proper judgement regarding the issue raised.
Delegated legislation law: This is also one of the type of law but this law is not regulated by the
parliament but this law is applied in respect of the guidance of the parliament. This law is mainly
in forced in respect of undertaking any such activity or resolving any such dispute which results
in facing any criminal crime. In this aspects the powers are vested in the hands of the people
which are authorised at legal authority can take decision and such decision must be based on
justice.
UK joined European commission on 1975 with the procedure through voting in which the
major rights are given to them, in respect of joined the Community. As convention are the
unwritten laws which are regulated by the rules and regulation governed by the government.

Thus, they are considered to be the sources of laws which is specially designed for the UK
people and they are bound to follow the terms and condition which is mentioned and imposed by
the government.
Thus, in such aspects the impact of EU on law making arises in respect of undertaking
the complete control of the EU member as the European law is designed for the people of the
country. Thus, the rights are imposed in respect of managing their social, economic and political
aspects and also controlling the activities of the people in respect of dealing in such matter. The
major rights if the individual are affected at the time of voting which is influenced by the
political party (Rosenthal and Knighton, 2017). Thus, in such aspects their rights are secured and
than only the law making is undertaken to protect the right of the citizen.
P2 Role of government in law making and statutory and common law applied in respect of
justice in courts
Role of government in law making
In respect of making laws, various procedure is to be followed in respect of bringing any
laws in country or amending the exiting laws. The government play the vital role in respect of
undertaking such procedure which results in bringing security to the country. In context of
bringing new laws in country, firstly it is the duty of the public authority to take this initiation to
examined the aspects through which the right of the individual are affected (Cornish and et.al.,
2019). After examining the aspects, they propose the bill to the cabinet minters. Cabinet minters
verify the matter through which the reason behind proposing the new law is to be undertaken.
First reading:
After getting proper authentic report regarding the bill, it than proposed to the first reading in
which the bill is sent to either of the house of parliament (Oakland, 2015). In this, the title and
the main matter is to be mentioned which indicates that whenever is bill is proposed to the next
stage or not.
Second reading:
In this stage, the whole content of the bill is debated in front of the present members. The
integrity of the bill is determined through the voting and also the judgement and reviews is
undertaken regarding proceeding the bill or not (Watkin, 2017). In this stage, the whip system is
appointed which manage the behaviours of the political party in resect of maintaining the

discipline at that place. After getting the reviews regarding the majority of the MP's voting
regarding the proposed bill it further sent to the committee stage.
Committee stage:
In this stage, the bill is presented by the House of common and they carry the duty to amend the
bill if they find any changes as per the matter which is imposed under the bill (Kerwin and
Furlong, 2018). They carry the detailed discussion regarding the integrity of the bill if they
approved such bill for further stages.
Report stage:
In this the report which is sent by the committee is further verified and the amendments are to be
made to get the authenticity in bill (Scalia, 2018). The bill which is received by the committee is
further debate and than voting is committed to get the accurate results.
Third reading:
In this short discussion is to be done once the voting is accomplished and than the amendment is
to be made once the issue is identified.
House of lords:
In this the bill is sent to the house of lords in which they verify the proper bill procedure and also
determined the strategies behind which the initiation of the bill is undertaken (Thirlway, 2019).
Monarch:
After getting approval from all the stages, the bill is presented to the royal ascent in which the
authenticity of the bill is determined through the signature of the queen. After that the bill is
initiated to be law which is imposed by parliament and applied to whole country.
Statutory and common law is applied in respect of justice in courts
Statutory law:
In respect of imposing the statutory law which is governed by the act of parliament are
mainly based on written laws. It is the duty of the court to provide judgement on the bases of
written laws which is mentioned under the constitution. By this act parties get justice on more
particular way but statutory law are usually imposed on specific cases (Edge, 2017). The laws
which are designed for the states and are passed from the common laws come under the statutory
laws. In this new laws are also issued to satisfy the needs of the citizen in respect of imposing
any new laws or amending the exiting laws. This statement is supported with the case study of
the Lee v Lee air farming 1960, in this the case of statutory law is determined through the written

laws in which the issue arises in respect of undertaking the company as separate legal entity (Lee
v Lee Air farming Ltd, 2019). As the issue arises in respect of carrying the right of employment if
they are owing the company individually. In such aspects, the judgement are given on the bases
of verifying the written laws.
Common law:
In context of applying the common laws in respect of providing justice to the parties, it
can be undertaken in context of referring the judgement from previous suits. In this aspects, the
judges can also refer the judgement from other court if the case is reflecting the same matter and
also the parties are expecting the similar judgement (McQueen, 2016). Thus, in such manner the
judges can take helps from superior court so that they can give such judgement which is not
based on written norms. This also results in providing justice to parties in respect of facing any
issue in getting the right decision. This law is supported with the case study of the Industry V
Peter Bottrill (1999) In this the judgement is given on the bases of examining the issue which is
relating to the lifting of corporate veil. As Mr. Bottrill is the employees of the company and thus
carry any such right in respect of getting wages (Secretary Of State For Trade and Industry V
Bottrill, 2017). Thus, issue arise in respect of not getting payment in context of work
accomplished. The judgment is given in context of referring to the previous cases which is
relating to lifting of corporate veil.

Structure and hierarchy of court in UK
Illustration 1: Hierarchy of civil courts in England
Source: Hierarchy of civil courts in England, 2018
This is the structure of the court in UK in which the person can file suit in the supreme
court which is considered to be the highest court in UK in respect of not getting fair decision in
any of the subordinate courts. In respect of the judgement related to criminal matters, the suit and
fair decision are given in the crown court or queen bench division. It helps parties which are
conflicted between any illegal activity get fair decision in their section.
LO 2 Potential impact of law in respective of business
P3 Company, employment and contract law having potential impact upon business
Company law: This law is covered under the Companies act, 2006 in which the rights and duties
are assigned to company in respect of working or dealing in any activities in right manner. In

respect of identifying the impact which is undertaken in company is relating to managing the
administrative work in respect of managing the time and money in better way (Ten Kate and
Laird, 2019). The impact of law arises in respect of keeping an eye on the administrator
department regarding undertaking the correct transaction and also manage the time effectively. If
the company not work under the norms which is imposed under the companies act, than they are
liable to be penalties under the companies act and also there are more chances of dissolution of
company (Radin, 2017).
Employment law: This law is mainly imposed in respect of building the strong relationship
between the employer and employees. Employer are bound to follow the norms which are
mentioned under the employment act, 2016 (Hunter and Waterman, 2016). In this they carry the
duty in respect of treating the employees equally and also helps them in respect of facing any
issue in solving the problems. On the other hand employees are bound to follow the guidance
which is given by the employer in respect of attaining the particular task (Blair and Stout, 2017).
In respect of mistreating the employee regarding any work issue, they are punished under the law
of torts and negligence. The suit is filled regarding not carrying the duty to protect the right of
the employees at work place. Thus in such aspects strict action are taken against the employer
under the employment and labour law, 2016.
Contract law: Contract is mainly made between the parties in respect of entering into any
agreement. There are various terms and condition which is to be fulfilled by the parties in respect
of entering into any contract. Parties must be competent to handle the contract and also carry the
legal terms and condition which is mentioned in the contract (Breyer and et.al., 2017). In case of
infringement of any right of parties, the suit is filled under the Contract law, 1919. In respect of
breach committed by business in contract, the other party had right to file the suit against the
business or also demand compensation in respect of actual loss incurred in respect of not
pertaining the contract in better way. If the business not fulfil their contract, it also affects their
reputation and also resulting in decreasing the goodwill of the company.
These both three laws are supported with the case study of the Pimlico Plumber Ltd. V
Mr. smith, in this case study, Mr. smith is engaged with Pimlico plumber business from august
2005. he carry all such aspects which results in undertaking the employee of the company
(Pimlico plumber was a 'worker', 2019). Pimlico allots the proper uniform for their employees
and also provide van in respect of visiting to any such place. In January, 2011, Mr. Smith met

with serious health diseases which resulting in causing half body paralysed. Through this
aspects, Mr. smith demand from Pimlico plumber to reduce the work time as he cannot give
more time at work. Instead of reducing the work timing, Pimlico give notice to Mr. smith in
respect of terminating him from jobs. As Mr. Smith demand that he is the employee of the
company and also carry various right regarding facing health issue. As the judgment is also given
in favour of company regarding not being the employee of the company.
CONCLUSION
From the above study, the whole report concluded that business law are mainly imposed
in respect of regulating the business activities. So that the right of the parties are protected and
also helps parties to take legal action in respect of getting justice. In respect of undertaking the
matter related to sources of law, they are mainly undertaken to determine various aspects in
respect of engaging in customs law. As to make any law is difficult thus accurate procedure is
identified in respect of determining the role of government in law making and also it applied in
respect of getting justice in courts. The laws which is relating to employment, contract and
company law are undertaken to initiated company to work smoothly and also protect the right of
individual in dealing in certain aspects.

REFERENCES
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the nineteenth century. Routledge.
Edge, P. W., 2017. Religion and law: An introduction. Routledge.
Hunter, S. and Waterman, R. W., 2016. Enforcing the Law: Case of the Clean Water Acts: Case
of the Clean Water Acts. Routledge.
Kerwin, C. M. and Furlong, S. R., 2018. Rulemaking: How government agencies write law and
make policy. Cq Press.
McQueen, R., 2016. A Social History of Company Law: Great Britain and the Australian
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Nonet, P., Selznick, P. and Kagan, R.A., 2017. Law and society in transition: Toward responsive
law. Routledge.
Oakland, J., 2015. British civilization: an introduction. Routledge.
Radin, M. J., 2017. Reconsidering the rule of law. In The Rule of Law and the Separation of
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Rosenthal, D. E. and Knighton, W. M., 2017. National laws and international commerce: The
problem of extraterritoriality. Routledge.
Scalia, A., 2018. A Matter of Interpretation: Federal Courts and the Law-New Edition (Vol. 47).
Princeton University Press.
Ten Kate, K. and Laird, S. A., 2019. The commercial use of biodiversity: access to genetic
resources and benefit-sharing(Vol. 15). Routledge.
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Thirlway, H., 2019. The sources of international law. Oxford University Press.
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Online
Pimlico plumber was a 'worker'. 2019. Online. Available through:
<https://www.crosslandsolicitors.com/site/cases/Pimlico-Plumbers-Ltd-v-Smith-Supreme-
Court-decision>.
Secretary Of State For Trade and Industry V Bottrill. 2017. Online. Available through:
<https://www.casemine.com/judgement/uk/5a938b3e60d03e5f6b82bb26>.
Lee v Lee Air farming Ltd. 2019. Online. Available through: <https://alchetron.com/Lee-v-Lee's-
Air-Farming-Ltd>.
Hierarchy of civil courts in England. 2018. Online. Available through:
<https://www.hierarchystructure.com/hierarchy-of-civil-courts-in-england/>.