Business Law: Legal System, Regulations, and Business Operations

This report provides a detailed analysis of business law, starting with an introduction to the legal system, its strengths, and weaknesses. It explores different sources of law, the role of government in law-making, and the application of statutory and common law in business contexts. The report delves into key legislations, regulations, and standards relevant to new businesses, along with the implications of various laws on business operations. It also examines the different types and classifications of business organizations, their legal structures, advantages, and disadvantages, as well as how these organizations are managed and funded in both public and private sectors. Furthermore, the report addresses solutions to various legal problems faced by local businesses, including a brief overview of contract, employment, and company law. The report concludes with a comprehensive overview of the key legal aspects impacting businesses.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Explanation of legal system along with strengths and weaknesses............................................1
Different sources of law..............................................................................................................3
Role of government in law making.............................................................................................4
Application of statutory and common law in business ..............................................................6
Key legislations, regulations and standards the needed to be aware of by new businesses........6
Different laws that needed to be followed by businesses and their potential implications on
businesses....................................................................................................................................7
Explanation of the different types and classification of business organisations in public and
private sector and their legal structure along with advantages and disadvantages.....................7
Evaluating that how different organisations are managed and funded in both public and
private sector...............................................................................................................................8
PART 2............................................................................................................................................9
Solutions in respect to various legal problems facing by local businesses.................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................10

INTRODUCTION
Law is having the main purpose related to regulation of individuals and institutions
actions within a nation. It is the system formulated by government to protect the interest of
individuals and institutions. All the different laws prepared by government contains the
regulations that further govern the activities. These are must to adhere in performance of the
actions and functions otherwise, have to face the legal consequences. There are different kind of
laws that exists in nation and cover the functionalities of diversified parties along with
organisations. These includes company law, contract law, civil law, criminal law and
employment law. All these are having their own different contribution and attached benefits. In
overall manner, the integrated effect of all help in development of legal culture within a nation
that must needed to adhere by all who not aware of same or not resident of the nation (Allen,
Kraakman and Subramanian, 2016). The main aim of this report is also to understand about the
different legislations and regulations related to business law.
This report has two parts. The aspects covering in part one includes explanation of legal
system along with strengths and weaknesses, different sources of law, role of government in law
making, application of statutory and common law in business, key legislations, regulations and
standards the needed to be aware of by new businesses, different laws that needed to be followed
by businesses and their potential implications on businesses, explanation of the different types
and classification of business organisations in public and private sector and their legal structure
along with advantages and disadvantages and evaluating that how different organisations are
managed and funded in both public and private sector. The aspects covering in second part
includes brief overview about the contract, employment and company law and solutions in
respect to various legal problems facing by local businesses.
PART 1
Explanation of legal system along with strengths and weaknesses
Legal system contains the legislations, regulations and rules that govern the activities of
individuals and institutions. The native of this system is wide in scope where it includes all
different types of laws that applied over different parties, institutions and actions such as civil
law, criminal law, company law, employment law and contract law. The main purpose of the all
legal system is to safeguard the interest of vulnerable and bring legal consistency in society.
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Here, English legal system is applied over both England and Wales and simultaneously
contains the all laws and rules which are needed to maintain effective level of legal culture in
society. This legal system of England and Wales majorly covers the civil and criminal law for
governing the actions of individuals in society. It brings an obligation over them that they have
to adhere all otherwise facing the negative consequences in accordance to the actions nature.
This legal system was developed in 18th century. The one of the most authoritative law that exists
in England is Statutory law. The aspects included under this are parliamentary acts, bye laws and
regulations. These statutory laws are also called as main laws which are further approved by hour
of lord and house of parliament for its legal existence in country. In case, when statutory laws are
not present then common laws are prepared by the sitting judges of a nation on the basis of
considering different determinants such as judicial decisions, residual sources of law and custom
law (Besley, 2015). Here, parliament has the authority to change, amend and repealed such
common laws. The description about the laws which are covering under the English legal system
are defined below;
Criminal Law: This is the law prepared by government for governing serious nature of
offences that attracts the life imprisonment and death as penalty. This is applicable on all
individuals of society along with those that comes from outside and reside in particular nation.
This will be used to punish the illegal actions of individual that falls under the category of
criminal law.
Civil Law: This is also important law that governs the normal actions of individuals
along with rules and regulations in relation to aspects like tort, families, companies etc.
Commercial law is also covered under civil legislation. Here, main purpose of sitting judges is to
provide justice to a person who got affected from the unwanted actions of another.
Business law: This covers the all legislations, regulations and rules that govern the
activities of businesses along with their establishment within a nation. The different type of
businesses which are established with the aid of such laws along with needed to operate
functions include partnership, sole proprietorship and registered companies (Chow and
Schoenbaum, 2017).
Structure of English legal system
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It is ascertained from the above graph that both criminal and civil law have their own
different courts and judiciary systems. This means that the procedure following by the both
courts is distinct from each other on the basis of legislation. The judiciary system followed in
UK for providence of justice to parties is presented below;
 At first point, supreme court comes which is further known as the highest court of nation.
All the decisions provided by this are final and bind over all the parties along with other
below authority courts.
 On the second position, Court of appeal comes in the judiciary system of civil legislation.
 In last, high courts and country courts are those where all the different issues are
presenting by the parties for the purpose of ascertaining appropriate judgement (Clarkson
and Miller, 2020).
Different sources of law
There are many sources on the basis of which laws are framing by government. There are
different features associated with same and using accordingly in process of developing laws.
Here, government is the main authority regarding development of laws that further govern the
activities of individuals and institutions in nation. The main purpose behind the presence of
different sources of law making is improved ability of law formulation in any kind of
circumstances. The different sources that exists in UK and further used in building of laws are
presented below;
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Constitution: This is one of the importance source that having the main aim related to
dissemination of power to authorities. The consideration of this is important because nothing can
be done beyond to the aspects that were written in constitution. This means the one who have
power according to constitution is only able to formulate the laws and also within the limits
specified by constitution otherwise, it is void in nature. This was the reason that constitution
provides the authorities and duties to different parties in accordance to which they have to
perform their future functions. The main principle aim of constitution is to bring legal structure
in nation that needed to adhere by all for living normal life along with performance of functions
which were not having any kind of negative influence over other party (Crane and et al., 2019).
Legislatures: This source of law is provided by parliament and considered as primary
source for law making. Here, parliament is having the main aim regarding development of
statutory laws that will be applicable to whole nation. This has further benefit regarding
ascertainment of limitation of powers have by authorities so they will never make any kind of
decision which is beyond to their legislative power. In this case, these are considered as void.
Administrative law: Under this, law is preparing by administrative agencies. Here, they
have the main objective related to reviewing the laws and rules formulated and provided by
government. The numerous number of main agencies exist under same and perform working
includes boards and commission (Deva and Bilchitz, 2013).
Executives: Here, president is the highest authority who has the power to pass the bills
which are presenting by the parliamentary authorities. President is also having the authority
regarding passing of orders which will be further applicable to all.
Role of government in law making
Government has the prime role regarding development of laws in nation. This will be
understood from the below provided description;
Firstly, statutory laws are formulated by government as draft. Afterwards, these will be
provided to parliamentary authorities for approval. This clearly depicts that prime duty of
government is to frame the drafts of law and provide in front of parliamentary authorities for the
approval on same. Here, government has duties related to building changes in law as per the
requirement and adhere the same too in equal manner. There is specific procedure which needed
to follow by the governmental authorities in formulation of laws and making any decisions over
them. There are two different houses that exist and provide functioning in the process of law
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formulation i.e. house of parliament and house of lord. There are numerous number of steps
which needed to adhere for building appropriate laws within country. All these are defined
below;
Issues arouse during the working of government: Government is build with the aid of
elective parties. They elected by general pubic for the performance of development functions
within a nation. After elected as government, party has to perform functions for specified period
of tenure. So, in between that period the issues arouse are considerable as option on which
needed to frame laws for further effective regulation in future period of time. Such operations are
in the power of MP's and house of lords (Johnson, 2012).
Solutions in relation to identified issues: This is the second step that includes
identification of solutions in respect to identified issues by experts. Here, main aim is their
presence at bill for further permission by governmental authorities.
Discussion of solutions with appropriate authorities: This is the process about
discussion of draft law provisions with appropriate authorities to ascertain their views and
feedbacks. Here, main aim is related to made changes in draft provisions according to their
suggestions to made it better and presentable in front of parliamentary authorities (Kelly and et
al., 2020).
 Green paper: This presents the structure of bill. The main aim with its development is to
gain the support of MP's. This further aid these to provide their views.
 White paper: This provides the law provisions which were prepared by government.
This has the aim to disseminate solution of issues.
Approval from cabinet ministers: This is the process of laws approval through
presentation of the proposed one's in front of minister. Here, MP's have duty related to scrutiny
and select of best ones. After to their approval and selection, same is transferring to committee to
made draft of rules and regulations on the basis of such proposal.
Presentation of contents on bill: Here, guidelines are considered that present in bill with
the aid of experts.
Scrutiny and consideration of bill: This is about scrutiny and further bill's consideration
by both MP's and house of lords. This aid to build regulations according to behaviour of
individuals.
Parliamentary stages: It is the process followed by MP's for approval of bill;
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 First reading: Reading of proposed bill in front of MP's and providence of copy to each.
 Second reading: This includes debate and voting in favour and against by MP's.
 Committee stage: If bill approved, provided to committee house for scrutiny and suggest
changes if needed.
 Report stage: Here, changes communicated to MP's for ascertaining their feedbacks.
 Third reading: This include final debate and voting after changes.
 Transferred to house of lords: After ascertaining approval from house of commons,
transferred to house of lords. If they made any change then presented gain in front of MP'
because approval of both is must (Murray, 2015).
 Monarchs Assent: It is about taking assent of queen on bill in consultation with MP's.
Application of statutory and common law in business
Statutory laws: These are proposed by government and approved by MP's. These are
main laws. These present in written form and that's the reason called as written laws. These are
normative in nature. For ex. establishment of company by adherence of statutory laws like
company law.
Common Laws: These provided by sitting judges in the absence of statutory laws. These
will be accepted or rejected in parliament. These known as case in point and informative in
nature. For ex., decision on dispute with business party on consideration of the previous similar
decision.
Key legislations, regulations and standards the needed to be aware of by new businesses
Legislations, regulations and standards needed to adhere by new businesses are presented
below;
Health and safety work Act. 1974: This legislation has the main aim related to
providence of safety aspects to employees and all the parties present within an organisation or at
workplace. This brings an obligation over the employer's of UK that they must implement all the
safety equipments within an organisation and provide the same to employees who require for
performance of work (Polinsky, 2018).
Ethical standards: It is an obligation over employer that must implement all the ethical
standards within an organisation so effective direction will be provided regarding performance of
work with high level of morale or the activities which are morally correct in nature. The main
aim is that nobody get benefited or harmed due to the actions of some another person.
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There are many in respect to which they have to be aware like employment rights act
1996, equality act 2010, occupational safety and health act 1974, NMW act 1998, industry
standards and guidelines, local and multiplicative orders etc.
Different laws that needed to be followed by businesses and their potential implications on
businesses
The different laws which are needed to adhere by businesses are defined below along
with their possible implication on businesses;
Employment rights act 1996: The main aim of this is to provide equal employment
opportunities to all along with rights. This means there is no difference in rights on the basis of
their position in organisation. This also brings an obligation over management that never adopt
the measure that will create difference in employment conditions among employees on the basis
of any factor. This has both positive and negative impact over operations of an organisation.
Positive will be ascertained if followed properly in form of high level support. Otherwise, have
to face the negative consequences in form of low level engagement (Posner, 2014).
Health and safety at work act 1974: This has the main aim related to providing safety
to employees at workplace through bringing obligation over employer. Here, employer has the
duty to implement all safety equipments and adopt safety measures that will effective in nature to
safeguard the health of employees at optimum level. This has positive impact in form of
ascertaining high level employee engagement. In case of non adherence, impact will be negative
on the way of government penalties and employee’s resistance towards work.
Explanation of the different types and classification of business organisations in public and
private sector and their legal structure along with advantages and disadvantages
There are two types of business sectors under which different nature of organisations
perform work such as public and private. The detailed description in respect to these along with
diversified nature of organisations is presented below;
Public sector
This is the sector in which public organisations are working. These organisations are
those in which government held more than 50% of stake. The main purpose of such
organisations under this sector is to provide quality products along with services at charge of
reasonable cost (Prenkert and Shackelford, 2014).
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Pubic organisations: These organisations having the main aim of society welfare instead
of earning profit. The one example of public organisation in UK is NHS. They have the main
aim related to providing free care to needy person so no will deprive of essential medical
services.
Private sector
This is the sector which includes the numerous nature of private organisations that having
the main aim related to earning profits by delivering their products and services to consumers.
Private organisations: These are of two types limited by shares and guarantee. The main
aim of both is to earn profits through fulfilment of consumers demand. The example of this
organisation is TESCO and M&S. Both are private organisation having the main aim of earning
profit through fulfilling consumer needs.
Partnership: These are the firms that build with the aid of combination of two or more
partners. They adjoin their hands for the purpose of attaining some common objectives. These
form as per the partnership act that exists in UK. The partners have equal responsibility in
partnership firm along with sharing ratio in respect to profit and loss (Rosenn, 2015).
Sole proprietorship: This is the form of business that stated by single person. Behind the
formulation of this is to earn livelihood. The person who starts the business has sole
responsibility of loss and profits.
Evaluating that how different organisations are managed and funded in both public and private
sector
Particulars Limited
companies
Social
enterprises
Corporations Co-operatives
Managed Managed by BOD Managed by
trustees
Managed by top
authorities
Managed by
partners
Funded Funded by public
and loan from
banks
Funded by
venture capitalists
Private and public
both
Personal
investment
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PART 2
Solutions in respect to various legal problems facing by local businesses
Case 1
Contract law: This is the law that binds the two parties that when they made contract
have to fulfil otherwise another party ask for compensation.
Employment law: This is the law framed by government to safeguard the interest of
employees and candidates who want to hired within an organisation.
If, Gordon signed the employment contract than ask for the salary of year 2016 and 2017.
Case 2
Contract law: As per the contract law, four conditions are must to constitute a contract
such as offer, intent, acceptance and consideration. As per this, contract made on the day when
line actually get installed as this was the date when it accepted. So, organisation is needed to
amended their bill (Yosifon, 2013).
Case 3
The options have by an organisation includes;
 Payment to creditors
 Striking off the name
 Voluntary winding up
CONCLUSION
It has been concluded from the above report that there is huge need of business law for
regulation of organisational activities. This will provide an opportunity to direct the
organisational functions in the direction of obtaining optimum level of competence in market.
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