Business Law Introduction - Unit 7 Business Law Assignment

This assignment provides a detailed introduction to business law, covering various aspects such as the sources of law, the role of government in law-making, and the applicability of statutory and common law. It explores the impact of company, employment, and contract law on businesses, differentiating between legislation, regulations, and standards. The assignment also examines the legal formation, funding, and management of different business organizations, along with their advantages and disadvantages. Furthermore, it discusses the effectiveness of the legal system in terms of recent reforms and developments and recommends appropriate legal solutions for resolving disputes, with a conclusion summarizing the key points and referencing relevant sources.

BUSINESS LAW
INTRODUCTION 4
TASK 1............................................................................................................................................4
Different sources of law...............................................................................................................4
Role of government in law-making.............................................................................................5
Statutory and Common law applicability in court.......................................................................6
Evaluate effectiveness of legal system in terms of recent reforms and developments................6
TASK 2............................................................................................................................................7
P3. Using specific examples illustrate how company, employment and contract law has a
potential impact upon business....................................................................................................7
M2. Differentiate between legislation, regulations and standards to analyze potential impact
upon business...............................................................................................................................8
D1. Provide a coherent and critical evaluation of the legal system and law...............................8
TASK 3............................................................................................................................................9
P4. Explain how different types of business organizations are legally formed...........................9
P5 Funding, management of various organization with advantages and disadvantages...........10
TASK 4..........................................................................................................................................12
Recommend appropriate legal solutions to resolve areas of dispute.........................................12
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15

INTRODUCTION
Business laws are those types of laws that helps in forming of an organization related to
business. Such laws consist of an legal framework within which all organizations can perform its
activities of achieving goals and objectives. These laws provide all kind of legislation that has to
apply in order to establish an business organization within a country. Scope of these laws is very
wide because they cover those aspects of business that leads towards formation of it. Nature of
laws is dynamic as they deals with important aspect of business. In this file things that are going
to be covered is based upon law and business law. They are sources of law, role of government
in law making and evaluation of laws. Father various business organizations with its formation,
management, funding, advantages and disadvantages is going to be explained. In the end ADR
is going to be discussed with its methods applied under certain situations.
TASK 1
Different sources of law
As per English law there are certain type of elements that leads towards formation of law
as an concrete rule to be applied over the country. Such elements are known as sources these are
very important from point of view of providing knowledge over those parts of law that is
difficult to be understood by an individual. These are also very helpful in providing of
study ,material to those individual studying law as an subject. These sources are divided into two
types and they are as follows:
Primary Sources: These are those type of sources that covers raw information over the
basic structure of law. Such sources are of various types and they are explained as follows:
 Common Law: These are that kind of laws in which judgment given by judges are being
recorded to be kept for its further utilization regarding same case existing in future. These
are stored in the form of report. Also all things related to cases is being written in it like
facts, summary, judgments. Such report is also very help full in solving of typical cases
that are hard to solve (Lee, 2017).
 Legislation: These are one of the most important source because they help in forming of
a bill in to law of permanent nature. Proper procedure is followed regarding formation of

law in which discussion is done over the bill and laws formed through this is only
applicable to UK only after attaining of Royal assent.
Secondary sources: These are those type of sources that consists of interpretation of
various laws which is done for helping out persons to understand concept of present in
law. These sources are explained as follows:
 Legal Encyclopedia: This is an very useful source as it provides information
about certain terms that are being used by judges within there judgments. Also it
specifically defines about laws in short manner (Katsos and AlKafaji, 2019).
 Parliamentary and no –parliamentary: These are that publications that has
been documented by government. Such document are in written form and also
amendment is present in it.
 Law Commission: This is an commission that has been formed to keep a check
over the new laws enacted by government in society. Such commission is also
responsible for marking out loopholes within the existing law of any kind and
suggests ways to improve them.
 Text Books: This play and very important role in helping out those students who
are studying law. In a manner that it creates an core understanding of all basic
concept of different types of laws. This is going to create an awareness about
those laws which can be helpful for them in future.
Role of government in law-making
Parliament in UK plays an very important role in the procedure of forming of law and
policies related to it. These laws are provided to maintaining of law and order within a society.
Such type of procedure has been explained as follows:
First Reading: In this stage the bill is only presented and main aspect is being told by
the drafting committee. Only an overview is given about the law to be presented.
Second reading: At this stage debate is being done over the bill and important points are
discussed. After this voting is done for and against the bill within parliament. Whip
system is being used for this purpose.

Committee Stage: At this stage a bill is presented in front of House of Commons and
then details analysis upon it. Also any amendment can be done at this stage.
Report Stage: In this stage debate is done over the amendment that has been done in the
bill and again voting is done. Also changes required in amendment are done.
Third Reading: Under this stage the bill is presented in front of the house and this time
final discussion is done in the House of Commons. At this stage also rejection and
acceptance can be done based upon amendments.
House of Lords: Bills is sent to the House of Lords after it went through the above
mentioned stages and all amendments are done. Still house can suggest amendments if
required to be done.
Royal Ascent: This is the last stage of the procedure in which only the sign has to be
taken over the document but is not allowed to read it. As per Royal Assent Act this is
done.
Statutory and Common law applicability in court
Common law: Such laws are those types of laws that have been playing an very
important role in amending of laws that are having negative impact over society. In this
judgment has been passed by judges under landmark cases. Also other important parts of a case
have been covered under it. Using these judgments judges can give judgments in order to
maintain dignity of legal system within courts. These are important to create a transparency in
process of justice.
. Statutory laws: These laws are permanent in nature and proper procedure is followed in
order to amend or enact laws. Such laws are formed within the parliament after having proper
and deep discussion over it. Laws are applicable over all the country and every person living in
it. It is concrete in nature and used within proceeding of court to give an appropriate decision in
an case. Fundamental legal structure is based upon these statutory laws only.
Evaluate effectiveness of legal system in terms of recent reforms and developments
Laws in UK has been enhancing from very long time and has resulted into development
of laws with keeping people safer within an society. Due its slow process of evolving it consists

of many loopholes that exist in legal system of UK. All this is because of complex mechanism of
forming laws which keeps on interrupting process of justice. These have made law in UK of very
old nature and are not able to compete with modern laws. There has to be flexibility within the
system of jusitice.
TASK 2
P3. Using specific examples illustrate how company, employment and contract law has a
potential impact upon business
Government of UKL has been able to implement upon various kinds of laws that are
important for regulating of business organization. These legislation has an potential impact upon
effectiveness upon an business organization. such type of laws has been explained as follows:
 Company law: Laws of this type has been enacted for helping in establishment of an
organization by maintaining boundaries of law. These laws provide a concrete
structure of law that is maintained under Companies Act 2006. This act has proven to
be an boon inn the corporate world. It reduced the complex mechanism of forming
business organization. This has to be further understood with the help of this example
ACF ltd is willing to raising its funds in order to expand its business. Company has
failed to use the resources generated for the purpose that has been motioned in the
prospectus. Now case can be filed against it (Hiller and Shackelford, 2018).
 Employment law: Employees are the most part of a business organization because
they help in achieving of success within a given time period. That is why employment
laws are necessary for an organization. Such laws are helpful in dealing with rights
and duties of employees working in an organization. These laws specifically focus
upon safety measures that are required to be taken by an organization detail
explanation have been given under Employees Act 2002. This can be understood
through example that is an employee has been discriminated by his senior at
workplace. Employee can sue him under the provision of the act.
 Contract law: These laws are that has been formed out of the agreements that have
been formed within two business organization. Such laws are there for making
process of payment smooth in the eyes of law. Agreements of these kinds also helped
in smooth running of business. Under contract law rules and elements regarding these

agreements has been mentioned. This law is helpful in building of strong bond
between parties in lawful manner. Such kind of agreement also holds and rules to
accomplish a task in particular manner. The statement that can make it better
understood is “ all agreements are contract but all contracts are not agreement”. For
example, a contract has been entered by ABC Ltd. With its suppliers, in which it
failed to make the payment within the stipulated time, hence, such contract can be
revoked by the suppliers.
M2. Differentiate between legislation, regulations and standards to analyze potential
impact upon business
Legislation: They are those rules that has been formed and made by the government
while forming laws with the help of procedure to be followed for it. These are one of the most
important thing that is required to form for establishing of discipline and order in a country.
Proper procedure is required to be followed in order to make an law that has been done through a
discussion in both the houses (Heminway, 2016).
Regulation: These are that kind of instruction that is being formed within an
organization to keep the work of administration smooth by providing a proper structure to
administer an particular organization. Such regulation is being formed keeping in mind the
legislation. It is mandatory to be followed by an organization of any kind.
Standard: They are those kinds of specified rules that are being set-up in order to
maintain ethical standard within an organization. These are important for helping in smooth
running of process of an organization and is also relating over accomplishing task.
D1. Provide a coherent and critical evaluation of the legal system and law
Legal system within a country has to be strengthening and should be impact full upon a
country and must reduce crime by creating discipline within an organization. It should be able to
provide an appropriate system of justice that should be free from complex proceedings method.
Certain laws are there that is not able to compete with modern laws. That has made them
outdated and rigid in nature. Changes are required to be done in these laws to make them match
modern standards of law. Legal system and law is directly connected to each other that is why

they are required to be enhanced. Loopholes should be covered from the whole system before it
collapse.
TASK 3
P4. Explain how different types of business organizations are legally formed
Business organization are those type of organization that is being formed over in order
achieve goals and objectives that has to be achieved. Such organization can be of incorporated
and unincorporated depending upon its nature or situation. Also these organizations majorly deal
with business related activities. There are certain organizations which come under this category
and have been explained as follows:
Sole proprietorship: These are the organization that has been run by a single persona and
he is considered to be owner of the business. Also business organization is very simple in nature.
Complexity is not there in its running process and category over business organization. The
meaning is that owner of business is responsible for all kinds of things that is being performed by
business. Complex process is not involved within it and no documents is required (Gerard,
2018).
Partnership: Such organizations are being run by agreements between two parties and
have been formed for the purpose of earning profit. All kind of profit and loss has to be shared
by the partners and all they have liability over each other to run a business. Funding is being
done by the partners themselves and bound to come under contract. Registration is only required
if an contract has been formed. In this also registration is done upon contractual basis (Gaitán,
Herrera-Echeverri and Pablo, 2018).
Private Company: These business organizations are those types of organizations that
come within the category of incorporated organization and are being required to perform
activities within the limit of corporate law. It is being owned by the directors or stakeholders and
they only perform decision making or take all decisions regarding benefit of an organization.
Shares of such organization are not sold to public.
.

Public Company: These companies are to be available to public and owner of such
organization are many depending upon the investment done by them. Shares of this organization
is being sold to publi (Lee, 2017).
P5 Funding, management of various organization with advantages and disadvantages
Incorporate Organization: They are the organization that is being formed only when business
has to be operated. These organizations having legal existence only when there is formation of
contract is there between the parties. It is also very easy in forming and no complexity is there.
Raising fund is also very easy (Bodie, 2017).
Private Company: This organization is being funded through loans from bank,
debentures and by rising of fund. An organization of such kind is being managed by the directors
all decisions is being taken by directors only.
Advantages of Private Company are
 It is considered to be an separate legal entity that means owners is an separate person
from it.
 Death of the member is not going to affect working of company and its existence.
Disadvantages of Private Company
 Process to get itself registered is also very long
 Compliance procedure has also become time consuming.
Public Company: This organization is being run by selling of shares to public or taking
loans from government recognized financial institution. Management is being done by persons
owning the business.
Advantages of Public Company
 Capital raised by share issuing.
 Financial sources are easy to arrange.
Disadvantages of Public Company
 Appointment of directors has different aims then that of shareholders.

 Ownership control is lost because of multiple owners.
Unincorporated Organization: Such organization is being formed over operating of business
that is being performed by gaining profit through an organization. Benefit of such organization is
that no legal reorganization is required over paying tax like an private organization. funds are
being arranged over certain point of time (Bird and Park, 2016).
Sole proprietorship: These organizations have to be face restrictions while collecting of equity.
In such of organization investment is done through owner or by his friends. Funds that has been
arranged through taking of debts or loans from trustable sources. Management is done by an
individual and he is responsible for all things happening in business.
Advantages of sole proprietorship:
 Setting up of such kinds of organization is very easy and no submission of document is
required.
 Financial resources is also very less in establishment.
Disadvantages of sole proprietor:
 Owner is fully liable and all debts have to be bear by him only.
 Self-employment tax has to be paid by them.
Partnership: Funds are being arranged in this organization has to be done by the partners
themselves. Also loan from private organizations can be taken. This is also a way of funding.
Management of this organization has to be done by the partners only (Bird and Brown,
2018).
Advantages:
 Forming of such organization is very simple and not complexes
 Generation of huge amount is possible as larger resources can increase due to more than
two partners.
Disadvantages of partnership

 Limited liability is there of partners.
 Harmony is also not there as conflict can arise at any point of time
TASK 4
Recommend appropriate legal solutions to resolve areas of dispute
ADR stands for Alternate Dispute Solving mechanism that helps in solving of dispute
that has arisen between two parties. This mechanism has been catching eyes of law makers as it
is proving to play an important role in reducing stress from the courts and also reducing burden
over them. In this mechanism various methods are being give n which are used as per there
requirement and they are arbitration, negotiation, conciliation and mediation. All these methods
are related to third party involvement within an dispute. Now certain conditions are there under
which these methods are to be applied and it explained as follows:
Case Scenario 1
In this case Sarah has been working in an organization as secretary of the company for
seven years. Her performance has been fair during all this time. During last nine months after she
had divorce and lost the fight. After this only some behavioral changes started taking place in
her personality and made her irritable. Her annual review is also due in 4 months. She earned
good assessments including the last one also. Head secretary of the company is going to retire
and is widely been expected till the time Sarah was the natural successor. Also three months
before she had an disagreement with its trainee manager in front of tow customers. The trainees
did not complain about it. an official warning has been issued to her. Now the head of HR faces
an problem to promote Sarah. In this situation it has been observed that Sarah has been suffering
from a mental tension and she was not able to work properly because of it. ADR ,method that is
going to use in order to solve the problem is negotiation. As per this an meeting is held between
two parties by an negotiator. In this negotiator can a doctor who is going to give explanation
about mental fitness of Sarah. Is also going to convince all head HR that she is going to be
alright and just require some holidays. Instead of taking her out of the company give her
holidays. Doctor is going to convince them over this point to solve the dispute.
Case Scenario 2

In this case it has been observed that a successful business man of Russia Peter Romanov
has been exporting vodka among other Russian spirits to UK and many other European
countries. This business has been going through a decade and enjoys a smooth business
relationship until recently. In past the price for each export order had been agreed between the
parties about 3 months before the delivery and has been confirmed through email. In September
2019 a new order was placed by the UK importer for delivery in December and Romanov agreed
the export date saying he would inform the price later as was the practice. In September and
October pound displayed significant fluctuations in exchange rate markets and generally was
declining in value due to the unpredictability of the result. Due to ongoing Brexit negotiation
between the UK government and the EU. In December 2019 before sending the cargo he sent an
email to the UK buyer that due to the fluctuating and falling exchange rate of pound he has to
quote the price in rubles. The UK firm did not officially respond by email and the supplies were
delivered according to schedule. The UK firm sent the payment on 17th January 2020 but used
the exchange rate at the time of placing the order in September 2019. This was about 10% more
than the exchange rate in December 2019 and placed Romanov financially at a loss of
approximately 10% of the value he was expecting. In this situation it can be observed that
method that has to be applied of ADR is arbitration. In this method an person known as arbitrator
is hired to solve dispute. In this both the parties is going to be heard by the arbitrator and
judgment passed by him is going to be applicable over both the parties. This method is most
common method to solve dispute outside the court (Barrédy, 2016).

CONCLUSION
From the above file it can be marked out those laws of business is one of the most
important elements over law forming that is helpful in business formation. Further in these file
sources of law and role of government has been explained. Also critical evaluation is being done
upon legal system of UK. Various organizations is being explained with management, formation,
disadvantages and advantages. In the end ADR has been explained with the method that is to
applied according to an scenario.

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