Business Law Report: Sources, Impact, and Legal Solutions in UK

This report provides a comprehensive overview of UK business law, exploring its various sources such as legislation, statute, common law, and EU law. It delves into the role of the UK government in law formation and the application of statutory and common laws within the justice court. The report evaluates the effectiveness of the UK legal system and examines the impact of company, employment, and contract law on organizations, using British American Tobacco as an example. It differentiates between legislation, regulation, and standards, and discusses the legal formation, management, and funding of different types of business organizations, along with their pros and cons. Finally, the report addresses legal solutions for conflicts and compares different sources of legal advice and support.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Sources of UK law..................................................................................................................3
Role of UK government while formation of laws along with application of statutory and
common laws within Justice Court.........................................................................................4
Evaluation of effectiveness of legal system of United Kingdom...........................................6
LO 2.................................................................................................................................................6
Impact of company, employment & contract law on organisations with example................6
Identification of difference between legislation, regulation and standards. ..........................7
LO 3 ................................................................................................................................................7
Careful exploration of how different types of business organisations are legally formed.....7
How organisations are managed and funded..........................................................................9
Pros and cons of different business organisations ass per their formation...........................10
LO 4...............................................................................................................................................10
Legal solution where conflict arises between parties...........................................................10
Comparison and evaluation of the different sources of legal advice and support................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business law sometime is also termed as commercial law and mercantile law, this law
mainly governs people and commercial matters. Business law include all the law that dictates the
manner in which a business run and form. In simple terms business law is a commercial law that
deals with issues related to legal in a business and Commerce (Shackelford, 2014). There are
different types of business law such as Corporate Law, contract law, intellectual property law,
uniform commercial code and negotiable instrument law. Thus, it is essential for an individual or
an organisation to have proper understanding of business law in order to carry out formation,
operation, dissolution of business.
In this report formative discussion has been made on source of UK law along with its
primary objectives. In this report numerous examples are covered along with questions with the
help of which the manner in which business law impact on UK business organisations are easily
depicted. In addition with this information in relation to incorporation of an organisation’s along
with their requirements and advantages and disadvantages are included. Lastly, report cover legal
Advisors that are based on case study are also covered in this report with the help of which in-
depth analysis of overall business law can be made.
LO1
Sources of UK law
It is not an easy task to devise a law as for this, every department has to be taken into
account in order to ensure that the quantum of criminal acts decrease with the passage of time.
To facilitate this, it is of prime importance to delegate the authority to a number of legal bodies
in a manner such that it results in creation of one of the best laws which has the capacity to avail
maximum contentment from public (Jones and Lainez, 2013). With respect to United Kingdom,
there are a number of sources from which laws owe their emergence. UK is the integration of
four nations, namely, Wales, Scotland England and Northern Ireland. This is why it is essential
that various law making bodies are taken into account to make a new law. Such legal bodies
which serve as the sources of UK laws are briefly explained below:-
Legislation: This is the supreme legal body within the confines of United Kingdom that
devises laws. It is essential for every person to abide by the guidelines stipulated by legislations
as the law which is commenced under legislation in established for the welfare of public. By

adhering to the laws formed under this, decorum can be maintained within the territorial
boundaries of UK.
Statute: Hereby, unique and innovative ideas are invited which have to be associated
with the constitution of law. This is ascertained to be one among the various sources where a law
is established for the first time and post that, if alterations have to be introduced within its scope
and confines, they can be incorporated by the respective country as per the needs of the
respective law.
Common law: The laws within the confine of common law are initiated as per the need
of situation whereby judgement is made regarding the law that has to be started for the effective
stipulation of decisions. It is also commonly regarded as the case law whereby ample number of
laws is started owing to a certain situation (Johnson, 2013). Herein, common law should not
overpower legislation as it is regarded to be most supreme power and no decision or judgement
can alter the laws started by legislation.
EU Law: This is considered as the backbone of United Kingdom’s legal framework.
Owing to this, 52741 laws have come into existence and been commenced that approximates
over 50% of the quantum of UK laws (EU law in United Kingdom, 2017). It has a certain field
under which laws are commenced and these areas are ascertained to be trade, finance and so on.
Above mentioned are some of the most important and well known sources of UK legal
system in the confines of which laws are commenced within United Kingdom. Each and every
individual prevailing within the territorial boundaries of the respective nation has to abide by
these laws and even government focuses upon the compliance of such laws by people of UK.
Further, government also recognises the need to bring about any kind of alterations within the
law so as to ensure welfare of general public.
Role of UK government while formation of laws along with application of statutory and common
laws within Justice Court
It isn’t easy to commence a law in UK as government is ascertained to be most supreme
legal body which is handed over with this responsibility. This can also be comprehended from
the statement “Parliament is Sovereign”. It is required by government to gain understanding of
the demands as well as situations of domestic people in regard to their needs from this respective
legal body (Lyons, 2013). As per the demand placed by general public and also in accordance
with the requirements, laws are commenced by government. The procedure associated with

formation of law begins when MP receives any kind of suggestion. MP is elected through voting
process and represent public at large so it is required by MP to take into account all the
suggestions and then transmit the most relevant and suitable ones to House of Parliament in
order to gain knowledge about their judgement upon such suggestions in terms of their validity
to be converted and commenced as a law. In case the suggestion is ascertained not to be valid,
pondering is done to decide what has to be done then. Once the bill is drafted in front of House
of Parliament, a lengthy process needs to take place for a new law to be formed. Such process is
explained as follows:-
First Reading:
In the initial stage, members are required to complete the formalities. It is essential for
every member to read the points mentioned in first reading so that they can be sent to second
round (Kapottos and Youngner, 2015).
Second Reading:
The second round witnesses the general debate upon the bill proposed within Parliament
House. Hereby, members are required to participate effectively to gain knowledge about the
requirements of proposed bill with respect to future course of time.
Committee Stage:
This can be referred to as the stage whereby examination process upon the proposed bill
is carried out in a structured manner as the member within community stage has to ascertain the
purpose and actual rationale behind proposing the bill (Vagts, 2015).
Report Stage:
This is the stage whereby amendments are made if deemed necessary. It is executed only
in case where any of the points within the bill is not clear or do not have an intended meaning.
MPs can take time for execution of this procedure.
Third Reading:
This is the stage whereby MPs finally get an opportunity to look upon the bill and cast
vote in favour or against the bill (Kraakman and Hansmann, 2017).
House of Lords:
This stage ascertains if the bill should be converted to a law or not. The Parliament
members have a discussion upon every important point that has previously been discussed by

House of Common. When all of them are in consent with the T&C of bill, it is passed onto the
next process where the bill is ultimately passed.
Royal Ascent:
This is the most crucial stage whereby monarchy finalises the bill as a new Act which
gets enforced with effect from same day.
Application of statutory and common laws within Justice Court
During a hearing of JC, the decisions are given in accordance with the rules and
regulations stipulated by legislation. Hereby, JC do not hold the authority to take and declare
own decisions, thus statutory laws provide guidance while declaration of results. When the rules
regarding a particular situation are not stipulated in the statutory laws must, common law is taken
into use. Judges can declare the decision on their own as common law is prepared by judges only
(Vagts and et. al., 2015). However, it is essential that laws must not be written within statutory
law because it is the only condition in which help of common law can be taken.
Evaluation of effectiveness of legal system of United Kingdom
It is essential that laws which are abided by everyone. The legal system of UK is
effective as can be seen by its outcomes. The biggest reason owes to its reliability. This provides
assistance to personnel while make due planning of their long term strategies. Besides this,
detailed structure is stipulated within the law book that provides aid to everyone to gain an
understanding about the law upon their own by way of which their decision-taking ability gets
improved.
LO 2
Impact of company, employment & contract law on organisations with example
There are a number of laws which influence the business conduct of organisations. To
gain a better understanding of such an influence, the example of British American Tobacco is
taken into account.
Company law: This is the law under which commencement, registration, dissolution &
winding up of an entity takes place. This law should be complied by every entity that is planning
to enter into the market of commerce and trade. With respect to British American Tobacco, the

organisation is not allowed to work beyond the capacity owing to which entity cannot easily
expand its operations (Shackelford, 2014).
Contract law: This can be referred to as the law that is engaged in formation of
agreements. This is regarded as the most important law as it states the manner in which every
activity has to be executed as per the conditions of contract paper. With respect to British
American Tobacco, contract law gives access to the organisation to carry out production of the
limited stock in accordance with customer requirements. This assists them in reduction of overall
cost. The company cannot breach the contract because it has entered into a valid contract with
customers.
Employment law: This provides a detailed knowledge about relationship between
employer and employee. It is crucial for each and every company as this state that how relations
should be between employer and employee. In relation to British American Tobacco, the
organisation must provide healthy and safe working environment for its workforce to facilitate
them in working in an effective and efficient manner (Shackelford, 2014). This guides the
company regarding ways through the relationship between both parties can be improved over the
course of time.
Identification of difference between legislation, regulation and standards.
Legislation: This can be referred to as the format through which laws are established and
formulated. Here, government is required to devise laws in accordance with the demands and
needs of general public.
Regulation: This can be defined as the format which defines the manner in which the
laws that have been formed are to be followed. Also, it states the types of legal remedies
available which must be accomplished as per the guidelines stipulated by law (Vagts, 2015).
Standards: This reflects the special format which is required to be followed by a specific
sector at the time of production. It is essential that standards go below the level which has been
set by the legislation.
LO 3
Careful exploration of how different types of business organisations are legally formed.
Formation of a business organisation is a long process that is required to be followed by
every organisation in efficient manner. As with the help of this they can further conduct their

operation in a smooth and effective manner. It is essential for an organisation to form themselves
with the help of legal processes in order to save self for any kind of future penalties and
punishments that are imposed by government and legal legislations associations (Vagts, 2015).
Mentioned below formation of an organisation in a legal way is described with the help of which
organisation can further able to conduct their incorporation process in effective manner:
Sole Proprietorship:
This is a business organisation form in which a sole individual incorporate their business
operations. Sole proprietorship organisations are owned and managed by a single person thus by
considering legal abiding of government individual can effectively able to gain lots of benefits,
as in a sole proprietorship process of incorporations government allow sole proprietors to not
having any requirement in terms of legal documents.
Partnership:
In this two or more individuals are willingly come together to associate of project or an
organisation with the motive to earn profit (Vagts, 2015). In this form of organisation partners
decide their shares through which they share profits and loss. In this government authority allow
partnership to follow legal abiding just for flexibility thus there is no further requirement to be
engaged in long-term process in the time of Incorporation. In addition with this there are some
legal process which are required to be followed by partnership firm such as, in the initial stage it
is important for partners to draft partnership deed along with this partners are required to register
in Partnership Act as to conduct operations in effective manner.
Joint Venture:
In this form of business organisation two or more than organisations engage in sharing
resources with the purpose to gain extra profit. Joint venture is different from owners and is
mainly formed for a special purpose. In order to incorporate joint ventures it is essential for
partners to prepare Memorandum of article in which detailed analysis of organisation is required
to be given along with any future projects. After the accomplishment of memorandum of article
it is essential for partners to register their joint venture under Companies Act 2006. With the help
of all this legal requirements in partners in joint ventures can effectively able to perform their
business activities.
Corporation:

This is one of the most popular business organisation form within which it is essential to
have investors in maximum number as in this there is a more workload as compared to any other
business organisation that can be only managed by maximum number of investors. Cooperation
is mainly a lengthy process as compared to other form of business organisation. In this process
company name is require to be have address in a proper manner, after that preparation of
memorandum of association along with article of associations are required to be form as to
effectively conduct business activities.
How organisations are managed and funded
Sole Proprietorship:
As sole proprietorship organisations owned and managed by small individual on a small
ground thus, there is a requirement for owner to manage business activities by themselves. In this
form of business organisation there is no requirement of large amount of funds but if there is any
further requirement of capital then owner is require adjusting that for their personal assets
(Vagts, 2015).
Partnership:
As it has been defined that in a partnership there are more number of partners thus
managing of business operations are done by all partners in a responsible manner partners who
are authorised as per according to the share divisions are required to manage workload (Lyons,
2013). When it comes to fund requirement in a partnership firm, additional capital can be
arranged by bank loans and Financial Institutions.
Joint Venture:
This is one of the most suitable business organisation in which there are large numbers of
fun sources such as government Agencies, Financial Institutions etc. In this it is essential to
effectively manage work by mutual consistency. In joint venture organisation authorised person
are require to ensure that daily basis activities are conducted in well effective manner (Vagts,
2015).
Corporation:
It is important for business effectively manage activities in a systematic and cooperative
manner. In a corporation team of managers, company secretary, directors, shareholders etc are
required to ensure that business operations are conducted in well effective way. In this funds can

be arranged from sources like bank loans, issuing of shares, bonds and debentures, peer to peer
lending and more.
Pros and cons of different business organisations ass per their formation
Types of Business
Organisation
Advantage of
Organisation
Disadvantage of
Organisation
Sole Proprietorship In sole proprietorships day-to-
day activities can be managed
in a smooth effective way.
In sole proprietorship there are
no such legal rights to sue and
be sued.
Partnership Firm In this new ideas can be
initiated with the motive to
earn more profit.
In partnership there is also
unavailability of the right to
sue and be sued on partnership
firm name.
Joint Venture As in this resources are
available in a Quantum
manner thus, objectives can be
performed in an easy manner
(Kapottos and Youngner,
2015).
In joint venture there is high
probability of conflict as in
this there is more number of
organisations.
Corporation In corporations there are legal
rights that a related to sue and
be sued.
There is a high risk for
unnecessary cost that can be
incurred in the formation of
business organisation.
LO 4
Legal solution where conflict arises between parties
Case 1:

James is a working on a contract with Banana Technology Ltd. In this company
contracted for paying £12000 annual, because of some circumstances organisation was not able
to pay annual salary to James. Apart for that James did not ask for the salary as he was known
with the fact that company was not able to pay off his salary on that situation. After some time
company found itself to be running successfully and recovered all the losses and even earns
effective amount of profit. So by seeing strong financial position of organisation James is
seeking for unpaid salary that was mainly due because of company weak financial position. Now
Banana Technology Ltd. denied paying the salary of James on the terms that he was required to
ask for that on the same situation. In addition with this, company is saying that there is no legal
abiding of company to now pay James due salary. After that, James is looking forward to file a
case against company for breach of contract.
Contract:
Contract is mainly a piece of paper in which information for a particular work is
mentioned in a detailed manner and are required to be take government approval. The parties
those who are creating contract is required to be known with legal legislation which is relating to
contract and then offer acceptance. As without thus no existence of contract is sustain and may
later create undue influence (Jones and Lainez, 2013). Thus, it is necessary to understand each
and every term that is mentioned in contract as letter contract is not terminated.
Breach of Contract:
It is a conditions in which contract somehow may not get accomplished. In this situation
it is essential for defaulter party to give justify dated justifications for the contract termination
otherwise they may face penalties by different level of court. In addition with this if any involved
party breach the contract then there is a requirement to pay compensation to innocent party. In
the breaching of contract innocent Party have the right to sue defaulter. As per the above
mentioned contract Banana Technology Limited breach the contract with James. Apart from that
James is required to understand each and every related term in contract as it is not easy to operate
case procedure in effective manner as it is already a lengthy process. Thus, in order to overcome
the situation adoption of modern ways can be undertaken that offer legal Advisors in well
effective manner.
Alternative Dispute Resolution (ADR)

This is a technique with the help of which crime in a nature of civil is entertained. This is
one of the most effective methods to solve dispute. Main objective of ADR is to provide well
effective advices by analysing the case situation. In this there are different types of method with
the help of which situation of case can be understand in a well effective manner and sound
results can be sustained (Vagts, 2015). These are described as follows:-
Conciliation: With the help of conciliation method of dispute resolution, final decisions
in this are taking by dispute parties as if they are willing to undertake the advice or not as in this
the main objective is to give advices as per the requirement.
Mediation: In this mediator is required to handle the situation in which they are required
to try to drag parties close to the argument as this is the only method with the help of which
disputes can be solved. Mediator in this are required to have proper understanding of low field
with the help of which many cases can be solved. In this the person who is appointed as
mediation is termed as mediator.
Arbitration: This type of technique to solve case mainly exists in arbitration the
individual who is appointed in this are known as arbitrator. This method is implemented only
when dispute parties are agreed as in this decision that are declared by an arbitrator that cannot
be challenged as they are in nature of legal binding.
As per the case of Banana Technology Limited and James, James are required to adopt
mediation process in order to solve disputes, as in this there is no such requirement to sue as in
this procedure of court can be lead towards a lengthy process and may not be in favour of
Banana Technology Limited and James.
Comparison and evaluation of the different sources of legal advice and support
There are diverse ranges of legal advices that can be undertaken in modern days in order
to solve dispute (Johnson, 2013). In above question, the discussion has been made, about
Alternative Dispute Resolution as to solve dispute and it is one of the suitable way because it
acquire less time period when comparison is done with other form of solving dispute. In ADR,
advices are given as per according to the requirement of particular case. But, sometimes is not
essential that every time it will be supportive. Also, it has the negative aspect that it only deals
with the cases of civil wrong.