Analysis of Business Law: Sources, Impact & Dispute Resolutions

This report provides a comprehensive overview of business law, beginning with an elaboration of various sources of law, including legislation, judicial precedents, European Law, and human rights. It details the role of government in creating laws and the application of common and statutory law in courts. The report further uses specific examples to illustrate the potential impact of company, employment, and contract laws on businesses, highlighting both positive and negative consequences. It also explores the formation, management, and funding of different types of business organizations, such as sole proprietorships. Finally, the report recommends legal solutions for resolving a range of disputes, offering insights into how businesses can navigate legal challenges effectively. This document is available on Desklib, a platform offering a wealth of academic resources for students.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
Elaborate different sources of law. .............................................................................................3
The role of government in creation of law and the application of common and statutory law in
courts. .........................................................................................................................................4
Using specific examples illustrate how company, employment and contract laws has a
potential impact on the business. ..............................................................................................5
Formation of different types of business organisations. ............................................................6
Management and Funding of various forms of business organisations. ....................................8
Recommend legal solutions for resolving a range of disputes. ..................................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Laws are very much necessary for the society as it renders certain rules and regulations
which governs the businesses as well as people with respect to the interaction of certain duties.
Laws are the one criteria which affects every single conduct of our lives from birth to death.
Business in order to proper and its glassy functioning has to comply with the required business
laws as it affects every area and workings of the business. Moreover, business laws comprises of
all such regulations and rules which regulate and guides every business irrespective of its nature
that how to incorporate , manage , dissolve or sell the said business. Some of the very major
source of business law are Customs of History which is trade, Mercantile law , British statutory
laws, etc. furthermore, this report will discuss various different sources of law along with the role
of government in lawmaking and their application in court of justice(Chamoun, 2021). The
report will also discuss the formation of various forms of business along with their management
and funding.
MAIN BODY
Elaborate different sources of law.
The four major sources of English law are, first being the legislation itself, second being,
the judicial precedents, third is the European Law and last is the human rights. Also customs are
also considered as one of the important source of law but here it is not discussed as customs has
been to an great extent has been interpreted by judicial precedents and legislations itself. The
parliament is considered as the sovereign authority which is responsible for making laws as per
the need of an hour. The laws created by parliament are said as Bill, and the same becomes a law
after acquiring royal assent. Moreover, the sources are bifurcated in two major category as the
primary and secondary sources of law(Keers and van Fenema, 2018). Primary sources
comprises of the actual laws which comes directly from the official authorities who have power
to make laws, which generally, are there in the form of constitution, either state or Federal such
as constitution of United States , the laws made by the legislature, which are statutes. Also these
made laws by the legislature are applicable to the whole of United Kingdom and the legality of
the same cannot be questioned in the court of law unless some contrary appears. Judicial
precedents, which are the opinions of the court in some particular matter and the Treaties, such

as North American Free Trade Agreement, are also a part of primary sources. The said case laws
are the end results of the decision made by the courts and which further are being published as
the law reports. The implementation of such laws relies solely on the fact that how well the facts,
issues and legal principles have been ascertained which lead to the decision of the court.
Whereas Secondary sources of law comprises of roots which elaborates, criticize, helps
in locating or discusses the said primary sources(MacDermott and Meyerson, 2018). These
includes the law reviews and journals, such as Seattle University Law Review, legal dictionaries,
as Blacks law dictionary, various number of guides and manuals with respect to how to practice
law and last legal digests and encyclopedia. Mainly these sources are reasoned as the background
sources as they argue about the law but are in itself are not the said laws. Also, secondary
sources of law are said to be the most convenient option for conducting any research as majorly
they are available in the form of summary and briefs and also contains the original citation of
primary sources.
The role of government in creation of law and the application of common and
statutory law in courts.
The constitution of law in itself is a very complex and tedious task, therefore it requires
the people who posses certain level of experience in the same. The parliament of the country is
said to be the only body, to which the power has been given with respect to the creation of laws
required . Every bill which at later stage after the official assent becomes law which is an Act, is
proposed by either of the party in the presence of the opposition party. Moreover, the parliament
of United Kingdom, comprises of two different houses which are House of Lords and House of
Common. In the whole process of making of law, both the houses are required to take some of
the necessary required steps. The very first step towards the outlining of new law is to draft a bill
by the said authorised members and when the draft of the bill gets ready it goes through various
stages, so that the changes can be done as required(Ningsih, 2019). The said process is as
follows:-
First Reading: This stage is considered as one of the primary stage where the bill is
given a best suited title by the member s of the parliament and after this the proposed bill is
forwarded for the second reading.

Second Reading: Here, the members are after having a thorough reading, discusses the
all possible aspects related to the draft including both its negative and positive effects on the
country and its people(Westcott, 2021).
Committee stage: This step is considered as one of the most important stage of the
whole process, where a elaborated discussion is conducted with respect to bill including the title,
main body and the issues for which the said bill is proposed.
Report stage: This stage involves the changes which needs to be make in the bill as
earlier discussed on the prior stage.
Third Reading: At this stage, the voting is conducted among the members of the
parliament in order to find out whether there exists the majority or not in favour of the said
proposed draft.
House of Lords: with the arrival of the draft in the house, all the measures which are
carried out until this stage are followed by the groups in order to know the value of the bill and
how it can be proved to be beneficial in future.
Royal Assent : Even though this stage is just an formality to perform, it is very much of
importance as no bill can be said to be passed as a codified legislation it there exists no royal
assent to it by the queen of United Kingdom.
Further, moving towards the application of statutory law and common law by the court of justice.
Both Statutory as well as Common laws are needed in the court of justice, reason being it results
in the determination of judicial precedents which further helps in the process of decision on the
case as per the given situation(Ntuli, 2018). The court of justice has been authorized with the
responsibility of the allotment of punishment to those who stands liable for it. It also includes the
people who fails to abide by the rules of the existing laws. The statutory laws includes these said
rules and terms. Moreover the court of justice inquires about the issues and take steps to resolve
them by giving judgements and orders. But in the case of common law , the said situation stands
differ from that of the earlier one. As here the judge of the court is required to work on the
understanding of the given case and needs to identify, any previous judicial precedent if

available, which relates to the current case so that the judgement can be given on the basis of it.
Very often it also results in introduction of new policies and laws(Waters, 2018).
Using specific examples illustrate how company, employment and contract
laws has a potential impact on the business.
All the said legislation are different from each other but some how are interrelated in term,s of
there workings(Wial, 2018). Every legislation having its separate importance and nature,
requires one to get abided by the ones who comes under it. All the have have their own positive
and negative impacts to it. Moreover, business organisations are regulated by the number of
legislations who have some importance attached to it which are explained as below :-
Company law- Here, Companies Act of 2006, is the basic law which governs all the
company law of UK. And every company which falls under the ambit of this Act, needs to
follow the provisions which has been laid down in the Act. The act also acts in the capacity of a
guide for all the new starting businesses as it helps in providing all the compliances. Also
business who complies with the said business laws, ensures the smooth and proper running of the
affairs of the business(Ojelabi and Noone, 2020). But on the other hand, there also lies some
drawbacks as sometimes it can result in the ultimate rise in the expenses which the company
needs to incur while complying with the regulations which overall can put a burden on the
company as it also results in the less number of profits. Also many a times, the companies are
required to pay for the penalties as a part of mistakes which has been committed under the
provision of the said legislation.
Contract Law- All the legal agreements which takes place, falls under the ambit of
contract law as it ensures the duty of its validity on both the concerning parties. The very major
remedy which is available under this act is liability of parties in case one breaches the contract.
The very basic elements of a valid contract are offer, acceptance and consideration which are
required to form a contract. The contracts having voidable nature never enters the court room
reason being their strong nature. . For instance, if any company wishes to enter into any
agreement it needs to be abide by its procedures so that no rules are broken but this process in

itself can become really time consuming as reason being having prolonged nature which at
several times can lead to negative impact on the business.
Employment Law- Employment laws are defined as the relation of employee and
employer, who has the duties to manage and regulate certain business activities in compliance
with the said employment laws. The legislation provides several responsibilities and duties
which both employer as well as employee are bound to follow within the business organisation.
It is required by every business that they must work in accordance with the given terms and
conditions of the employment legislations(Orchi, 2019).
Formation of different types of business organisations.
It is required for every business organisations to have a keen knowledge of the various
form of businesses which are available at the option of business owners. Also the said knowledge
plays a vital role in choosing a correct form as it results in better decision making of the affairs
of business including its management and conduct. The formation of some of the forms is as
follows,
Sole Proprietorship: This form of business is comparatively very small in size and the
proprietor is said to be the sole owner to conduct and manage the affairs of the business. As the
conduct of the business is limited to a specific area therefore it requires a small amount of capital
to start the same. Also as talking about the incorporation of the sole proprietorship, there stand
no such complex legalities(WilsonEvered and Zeleznikow, 2021). The only basic requirement to
start this form of business, simply is to get it registered in the house of companies. Also, both
the business and its owner does not enjoy the identity of separate legal entity, hence owner is
said to be solely liable for the liabilities of the business.
Partnership: In this form, members having similar objective joins together to form a
partnership firm with an aim to have maximum earnings out of the said business. This form is
considered as one of the most common form of business which is becoming the choice of the
majority business owners. The required steps for formation of partnership firm are very first, the
constitution of partnership deed and then the same should be registered, while complying with
the given Partnership Act. Moreover, the said registration of the the deed needs to be done in the
house of companies.

Public Limited Company: This form of business is one, where company enjoys the
limited liability and shares can be issued to the general public for their association. The company
is regulated in stringent manner and is subject to the full disclosure of financial position to its
shareholders. Also the company enjoys the right of perpetual succession, as it has certain
separate legal existence in the eyes of law. Further, there lies various regulations and rules which
needs to be prescribed for the formation of public limited company, which are as follows. The
very first, is the ascertainment of a suitable name, which will become the face of the company.
The chosen name of the company should not coexist with the names of the existing companies.
Then the second step is of the mandatory outlining of the MOA and AOA, that is article of
association and memorandum of association(ParkerJr, 2019). The next step is of requirement of
minimum number of director, which is generally three in number and first shareholder. The
other step is of the when all the process is completed the appointed team is also needed to obtain
the SIC number. The very last step of the whole process is the submission of the required
documents in the house of companies.
Private Limited Company : This form of business is said to be the one of the most
common forms of business which prevails in United Kingdom. It is established by the mere
registration of the company in the house of companies. Also, both the company and its members
enjoys the status of separate legal entity than to its shareholders and directors. Which in simple
sense means that all the liabilities and profits lies with the company itself and its shareholders
cannot be held liable for the dues and debts which have been incurred in the name of the said
company. Moreover talking about its formation, the company is said to be registered by paying
the required fees and submitting the documents at the house of companies. The existence of the
company is said to be made only after the issuance of the certificate of incorporation by registrar
of the companies. Further, there lies certain documents which needs to be submitted in the
companies house which are, The form IN01, which includes the proposed name of the company
along with the place where the company will have its registered office. Also other than this the
outlined MOA and AOA of the company is also required to be submitted. And once the company
gets registered the registrar of companies, issues a certificate of incorporation, which further
confirms the existence of the said company.

Management and Funding of various forms of business organisations.
Usually, the small business prefer to operate as a sole proprietorship reason being it is one of
the easiest and fastest manner to incorporate a new business. Here the shares are not sold to
investors in the market to raise the required capital. Therefore, the primary sources of capital in
this form of business are of relying on ones sources which are the retained profits and personal
savings. In this at some time, the business owners also go for the idea of credit cards and bank
loans. The borrowings from relatives or friends are also a source of raising capital for the
funding of sole proprietorship business(Sarah and Vida, 2020). Moreover, the Grants can also be
an astonishing source by which the sole proprietors can get money and also it does not the
repayment which act as an additional benefit on the party of sole owner. Now talking about the
management of this form of business, they are solely and independently managed by the owners
themselves. Also the day to day affairs of the business are also carried out in the direct guidance
of the owner.
Further, the Partnership firms are managed by all the partners as there stands equal rights on the
part of every partner with respect to the management of business unless there exists any contract
to contrary. All the said partners shares both managerial profits and duties while acting in the
capacity of co-owners. Generally all the affairs of the business are managed while complying
with the terms and conditions as agreed in the partnership deed. Also the management of the
business can also be carried out the by the appointed committee or managing partner but the
major decisions are required to have a mandatory voting of partners. Moreover, the primary
source of funding for partnership firm as similar to sole proprietorship, is of the self savings of
the partners themselves which is combined together as a capital. This is basically the amount of
investment which one partner can contribute in the total share of capital. Some of the instances
for that are retirement funds, bonds, etc. Also reaching to banks as the allotment of loans is also
one source of funding. The trend of crowdfunding is also at some extent a beneficial source, as it
includes turning up to the internet for opportunities.
Further, the major source of funding for Public Limited Company is of raising capital by the
means of selling certain goods and services to the public as this helps in company obtaining
certain funds which can further be reinvested. Also while issuance of shares to public is also one
of the measures to have the capital. Further the process of IPO which is the initial public
offering, to obtain equity capital by issuance of new shares to the general public in the market is

also manner when public limited company can raise its share capital. Talking about the
management of the public limited company, these are owned by the shareholders and managed
by the directors.
Recommend legal solutions for resolving a range of disputes.
The alternate dispute resolution is a process by which the disputes between the parties can be
settled outside the court having an impartial third party with the help of this process.
With respect to the Case 1
Legal issue- whether the claim for agreed wages between the employer and employee is
justifiable
Legal solution- The best suitable solution which is available as per the given scenario is of the
Negotiation.
Justification- As negotiation is an informal process of discussion which helps to resolve each
parties by stating their points in order to reach to an end result(Singh, 2020). The process of
negotiations stands the best choice as here, the Gordon and Fred, both being in their respective
capacities can discuss the terms of agreed wages which one is entitled to have rather then going
for other processes or for litigation.
Case 2-
Legal issue- whether the fee charged for whole package including the phone line is excusable.
Legal solution- The process of Mediation is the best suited option for Janet and Virgin Media.
Justification- As in mediation, the parties discuss their issues under the guidance of an impartial
third party which is the mediator. So similarly the issue with respect to the charges which is an
addition one according to the Janet and the fair one for the service provider, needs the guidance
of mediator in order to come to the conclusion.
Case 3-
Legal issue- Is winding up of the company is legally justifiable.

Legal solution- The process of arbitration is said to be the most appropriate one for the Black
horse limited.
Justification- The process of arbitration is formal in nature, where the arbitrator resolves the
dispute between the concerned parties in acting in an impartial and independent way also the
decision made by the arbitrator which is called as award is said to be binding on both the parties.
Therefore, the process of winding up of a company requires a process which is more formal in
nature and requires the applicability of its discussion(Stražišar, 2018).
The every form of alternate dispute resolution enjoys certain effectiveness but stands the
difference in comparison to their legality. The award made by the arbitrator is legally binding on
both the parties whereas the decision made by the mediator is not legally binding on the parties.
Moreover, the decision of negotiator at very first instance is not legally binding but if the same
terms get incorporated in the contract between the parties then it such case the same stands
legally binding on the parties. Moreover, if talking about the comparison of different legal
solutions which are the litigation and ADR. The process of ADR stands more beneficial in
various terms as one of the major benefit is of the saving of time which is very much required in
terms of litigation.

CONCLUSION
From the above report it can be concluded that business laws in compliance with other
required laws are the major source which governs the businesses of UK. It provides certain rules
and regulations which governs the daily affairs of the business. Further the report concludes that
how the funding and management of form of business varies with respect to its type. Also the
report concludes the various legal solutions which are been suitable for the parties given in the
different case studies and compares the different forms of alternative dispute resolutions.