Business Law: Legal System, Business Impact and Dispute Resolution

This report provides a comprehensive overview of UK business law, beginning with an introduction to its role in governing commercial activities and its division into key areas like company law, contract law, and employment law. The report explores the sources of UK law, including Acts of Parliament, common law, EU law, and the European Convention on Human Rights. It then details the role of the government in law-making, outlining the process from bill drafting to Royal Assent, and explains the application of statutory and common law in justice courts. The effectiveness of the UK legal system is evaluated, considering recent reforms and developments, along with a critical analysis of its strengths and weaknesses. The report further illustrates the impact of company, employment, and contract law on businesses, detailing the legal requirements and implications of each. It also explores different types of business organizations, such as sole proprietorships, partnerships, and corporations, and how they are legally formed. Finally, the report examines the legal solutions for resolving business disputes, comparing various sources of legal advice and support, and evaluates their effectiveness.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Explain different sources of law.......................................................................................1
P2. Explain the role of government in law making and how statutory and common law is
applied in justice court............................................................................................................2
M1. Evaluate the effectiveness of legal system in terms of recent reforms and development3
D1. Provide a coherent and critical evaluation of legal system and law with the help of
different relevant example......................................................................................................4
P3. Illustrate how company, employment and contract law has potential impact on business4
M2. Difference between legislation, regulation and standards to analyse the impact on
organisation............................................................................................................................5
P4. Explore different types of business organisation and how they are legally formed........6
P5. Mention the ways in which this organisation are managed and funded...........................6
P6. Recommend the legal solution for solving the range of dispute with the help of legal
advices....................................................................................................................................7
M4. Compare and contrast different sources of legal advices and support for dispute
resolution................................................................................................................................8
D3. Evaluate the effectiveness of legal advice and support for dispute resolution................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is introduced as legislative body to govern any of the business activity. It is
important because it guides to operate commercial activity. For detail knowledge, it has been
divided into various sub parts such as company law, contract law and many other related law. It
is said that business law has a vital role to play and that is one of the reason that business are
being operated in systematic manner. The advices in this respective project will be given on
behalf of Smith Solicitors whose major focus will be on the topic of new start-up companies. As
new companies required to be setup detail explanation on sources of law is required. Role of
government will also be explained. Even what action can be taken by the company when dispute
arises will also be described.
MAIN BODY
P1. Explain different sources of law
Law always cover wider range of area and for that it is important that number of
department should come together so that better results can be obtained. Altogether, there are four
sources of UK law and they are: Act of Parliament: These source of law is crucial in context of UK because there
government is the sovereign body and that makes more important that law should be
properly commenced. Here, laws are commence as per the need and demand of society
and country. Common law: This is one of the important source in context of UK because instant laws
are commenced by the judges by understanding the situation of law. Once judges declare
decision under common law, then from the same moment that law is enforceable for the
whole of nation (Gillespie, 2017). European Union law: Most of the law which are being regulated in UK has been
prescribed by EU law. The main aim of EU law is to check the situation and commence
law so that situation can be maintained.
 European Convention on Human Rights: The vital sources of UK in commencing law
is ECHR because there main focus is to protect the right of individuals. Specially this law
is helpful in the premisses of organisation because most of the discrimination are found
their.

P2. Explain the role of government in law making and how statutory and common law is applied
in justice court
The role of UK government is huge whenever they commence law within the premisses
of Great Britain. Long process is required to be followed in which various steps are there and
approval must be obtained from every single step. The detail description about the process is
explained below that how government commences the law.
The process of commencing law starts when necessary points are written in bill and it is
drafted to House of Parliament. Then different stages have to be cleared and they are: First Reading: Bill is generally read in this stage by authorised member. Second Reading:Points which have been mentioned are being checked in it that whether
it should be introduced or not (Saleem, M2012). Committee Stage: Detail examination process is conducted to find that what are the
changes that need to be done. Report Stage: This is one of the stage where process of amendment is conducted and
even it plays vital role. Third Reading: Voting process is being done in this stage and every members are
required to be present while conducting this stage. House of Lords: When approval is obtained by this stage, it is important for House of
Lords to check the bill in detail that whether bill should be passed or not and if not what
changes are required.
 Royal Assent: This is ending stage where people approval from Queen is required to
make bill as law or Act.

(Source: Primary Legislation, 2018)
How statutory and common law is applied in justice court
Statutory law and common law, both has its own importance because it tells that how law
is required to be applied in the premisses of court. It is found that Judges need facts, issues and
relevant law to declare their decision (Goode, Kronke, McKendrick and Wool, 2012). Here,
whenever laws are required to be declared judges takes the help of statutory law and if they don't
get any kind of help from statutory law then common law is applied in which judges read the
situation and try to find the best possible way to declare appropriate decision.
M1. Evaluate the effectiveness of legal system in terms of recent reforms and development
The law of UK has been effective because lots of changes are not being done generally
and it helps business organisation to sustain on some policies. The main benefit of legal system
of UK is that is provides clear guidelines on which business is required to and even it helps to
Illustration 1: Primary legislation

take best possible decision for the company. Still there are various changes required in it because
it is said that it is one of the lengthiest legal system where number of laws are not in use so that
part should be amended (Whaley and McJohn, 2016).
D1. Provide a coherent and critical evaluation of legal system and law with the help of different
relevant example.
The legal system and law of UK has been working for any of the business organisation
because the guidance which is being given to them are accurate and relevant. The results which
are being obtained by the organisation are much satisfying for the new ventures because different
benefits are being provided to them. Some of the points which can help to prove that legal
system of UK is effective are listed below:
 Government is stable: Whenever government of any of any of the nation is stable then
business organisation have to not suffer from different kind of issues as results are
satisfying in it. Even policies also do not changes which helps to bring positive changes.
 Structure of Law: It is found that the structure of law do not changes much and more
because of that long terms policies are easily formed.
P3. Illustrate how company, employment and contract law has potential impact on business
It is necessary for any of the corporation to understand about the language of law because
it tells that how decisions is required to be taken and even single mistake can create lots of
problem for the organisation (Holtzmann and Neuhaus, 2015). Different laws are there which
can have positive and negative impact on company and due to which company might have to
suffer from losses. Number of laws have been explained below which can impact business
organisation.
 Company law: The company law is applicable to all types of business organisation and it
is important for any of the business organisation to work as per the guidelines of
Companies Act, 2006. In UK, if any of the organisation wants to start it business it is
necessary for them to take the permission of Companies House. Some of the impact of
company law on business are:
◦ Guidelines are lengthy which consumes additional period of time.
◦ Additional expenses occur while working as per the regulation of companies act.

 Employment law: The law which governs employer and employee relation is known as
employment law. In every organisation, employment law is mandatory is to be followed.
Some of the impact of employment law on business organisation are listed below:
◦ It prohibits the discrimination among the employee's.
◦ Doesn't allow to raise dispute within the premisses of organisation (Coulson, N.,
2017).
 Contract law: This is the law which tells how any of the organisation is required work as
it makes any of the work as legal binding. The contract are basically formed whenever
there is offer and acceptance. Some of the impacts of contract law are listed below:
◦ Allows to complete any of the work on specific time period.
◦ Tells the area which need to be covered in any of the particular task.
M2. Difference between legislation, regulation and standards to analyse the impact on
organisation
Legislation, Standards and Regulation are three different terms but all three are related to
the law because each and every term are needed to be considered in business organisation.
 Legislation is related with legislative part whose major work is commence law and it is
necessary for any of the organisation because organisation need to check the list of laws
which are commenced for them and it might impact positively sometimes and even
negative effect can also be seen.
 Regulation is the almost similar to legislation because statute law need to commence law
and regulation says about that laws that what can be the benefit of following it and what
demerits can be found if any of the mistake is done by the organisation. It do impact
positively on business organisation because it says that how law need to be applied within
the organisation (Bently and Sherman, 2014).
 Standards says that how law need to be followed because it says that whenever any of
the organisation manufacture any of the products it says that what should be standard
quality of any of the product. It do impact positively on organisation because it doesn't
allow them to do fraud with customer due to which there reputation do maintain in the
market.

P4. Explore different types of business organisation and how they are legally formed
Company can be formed in different manners but the main thing that need to be focused
more is that what is the main motive of investor while incorporating the organisation. Different
types of business organisation are explained below:
Sole Proprietorship: This types of business organisation are small in size and number of
member is one. The only member have to take each and every decision of own which makes
work easy for them because there is no interference of any other person. As, this form of
business is required to be performed at small platform so that is such required while
incorporating the business. Only registration is required to be done that who will operate the
business activity in future.
Partnership: It can be performed when two or more then two person come together with
common objective to earn profit is known as partnership. It is necessary that limited should not
be exceed for the number of partners else it need to be converted into corporation. While
incorporating partnership firm, list of total number of parnter and motive of the firm need to be
mentioned and it must be submitted to the Companies House after doing registration under
partnership act.
Corporation: Whenever business is required to be performed at greater platform it is
necessary that proper corporation should be incorporated. It is said that corporation plays crucial
in any of the nation and higher amount of tax is being collected by this sector. The legal process
to incorporate corporation is:
 Name should be decided and that name should not match with any other firm.
 To manage all the activities before incorporation, first director and shareholder are
required.
 Memorandum of Association and Article of Association is must.
 SIC code is compulsory to find that organisation is involved in which sector.
This is the basis process which is needed to be followed and all documents need to be
handed in Companies House.
P5. Mention the ways in which this organisation are managed and funded.
Organisation Who manages it Source of Funding
Sole Proprietorship There is no requirement of team so it The main source of funding in

can be easily managed by owner
themselves.
this types of organisation is
personal assets of investor,
credit card etc.
Partnership Number of involve partner prepares
the deed where they decided the
candidate who manages the business
activities on regular basis.
The major sources of funding
for partnership firm is loan
from financial institution,
personal assets of all the
partners etc.
Corporation Board of Directors, Members, Key
Managerial person, Company
Secretary etc. are the one who
manages the daily basis activity.
Crucial sources of funding are
issuing share in the market,
debenture, bonds, bank loan
are the major sources.
M3. Advantage and disadvantage of forming different type of organisation.
Organisation Pros Cons
Sole Proprietorship No need to file annual return. Don't have the power to sue.
Partnership Chances of taking correct decisions are
high as more number of members are
involved in decision making process.
Cannot exceed the maximum
limit of 20.
Corporation Sources of raising found is high. Lengthy process need to be
followed.
D2. Critically review and evaluate types of business organisation.
Various types of organisation are there and they do have different types of nature.
Opportunities which is being provided to sole proprietorship is less compared to other form of
organisation. The process which is needed to be followed by corporation are very lengthy and
expensive due to which company takes additional period of time to take and of the decision.
Changes in Companies Act, 2006 can bring positive result for different form of organisation.

P6. Recommend the legal solution for solving the range of dispute with the help of legal
advices.
Given case scenario: The scenario says that the main issue is related with Alex and his
new owner to next door is creating problem. Here, Mr. Ali keep his bins open in the back garden
due to which Alex is being suffered. Alex have got new contract with HSBC Bank in which he
have to deliver lunch, breakfast and even afternoon tea. In this case single mistake can create lots
of problem for him. This is one of the reason that Alex don't want to take legal action against Ali
and due to which it is necessary for him to take the help of alternate way to solve it.
The given case is not of criminal nature and because of that it can be solved by number of
alternate ways because proceeding of court are length and expensive. Even both Alex and Ali is
busy in there own work so it will be important to take the help of Alternative Dispute Resolution
method.
Alternative Dispute Resolution is one of the process of law which tells that that how civil
nature of crime can be resolved. It is one of the popular way which helps to solve dispute in
quick succession by taking less period of time (Baamir, 2016). Alternative Dispute Resolution
has got legal right in the premisses of UK to resolve the dispute because there are thousands of
case which are pending in the court. So, this the reason that ADR has got legal rights to handle
civil nature of cases in short period of time. Several methods are there to resolve the issues in it
and they are described below.
Conciliation is the method under ADR process which helps to resolve the issues without
going to court premisses. The main role in conciliation process is played by appointed conciliator
who needs to understand the current situation of case. Here, conciliator tries to find the way in
which both parties can be satisfied and conclusion of the case can be taken out. In sort, the main
thing which is being focused is that how terms of contract can be meet where both party can
agree.
Mediation is also among one of the way through which disputes are resolved. Mediator
takes the responsibilities to handle the situation of respective case (Lee, 2012). In this, main
motive of mediator is to give advices to disputed party so that they can clear the matter without
going to the court.
Arbitration is also one of the ways to solve out the dispute. Appointed arbitrators are the
one who takes the responsibilities to solve the case by understanding the situation of case. If

parties try to take the help of arbitration process then they need to make sure that decision by
arbitrators are final and must be obtained (Keirsbilck, 2011).
M4. Compare and contrast different sources of legal advices and support for dispute resolution.
In the above given case, it can be said that Alex and Ali both can take the help of ADR
process to resolve there dispute by Conciliation process. Here, both party will put there points
what is the main reason behind dispute (Hobér, 2011). It will help to save there time and money.
This is the case which tells that dispute is not of that complex nature where they need the help of
arbitration method. In this, they will have the option to solve there case after completing there
office hour which will help to save there time.
D3. Evaluate the effectiveness of legal advice and support for dispute resolution.
Alternative Dispute Resolution will be helpful any of the organisation to resolve there
dispute and even it is very effective because the duration which is taken in this method is very
less in comparison to court proceeding. Here, clients are allowed to set there time which will no
interrupt there personal work also (Jess, 2011). Here, some of the changes are also required
because it has been found that except arbitration all of them of the method just give advice which
shows that it is not necessary to be followed.
CONCLUSION
It is understandable from present report that business law helps as a guider to business
firm through which chances of earn profit automatically increases. There are positive and
negative impact of it so every single decision need to be taken by evaluating its pros and cons.
Business organisation are totally dependent upon the sources of law because they need to be
flexible as per their decision. Company law, employment law and contract law plays important
part in organisation and it is necessary that there guidelines are followed else penalties are also
imposed.

REFERENCES
Books & Journals
Baamir, A.Y., 2016. Shari’a Law in Commercial and Banking Arbitration: Law and Practice in
Saudi Arabia. Routledge.
Bently, L. and Sherman, B., 2014. Intellectual property law. Oxford University Press, USA.
Coulson, N., 2017. A history of Islamic law. Routledge.
Gillespie, J., 2017. Transplanting Commercial Law Reform: developing a'rule of law'in Vietnam.
Routledge.
Goode, R., Kronke, H., McKendrick, E. and Wool, J., 2012. Transnational commercial law:
international instruments and commentary. OUP Oxford.
Hobér, K., 2011. International commercial arbitration in Sweden. Oxford university press.
Holtzmann, H.M. and Neuhaus, J.E., 2015. A Guide To The 2006 Amendments To The
UNCITRAL Model Law On International Commercial Arbitration: Legislative History
and Commentary: Legislative History and Commentary. Kluwer Law International BV.
Jess, D.C., 2011. The insurance of commercial risks: law and practice. Sweet & Maxwell.
Keirsbilck, B., 2011. The new European law of unfair commercial practices and competition
law (p. 312). Oxford: Hart.
Lee, R., 2012. Law and regulation of commercial mining of minerals in outer space (Vol. 7).
Springer Science & Business Media.
Saleem, M.Y., 2012. Islamic commercial law. John Wiley & Sons.
Whaley, D.J. and McJohn, S.M., 2016. Problems and materials on commercial law. Wolters
Kluwer Law & Business.
Online
Primary legislation. 2018. [Online] Available Through:
<https://www.instituteforgovernment.org.uk/publication/parliamentary-monitor-2018/
primary-legislation>