HNC Business Law: Analyzing UK Sources, Impact & Legal Solutions

This report provides a comprehensive overview of business law in the UK. It begins by identifying essential sources of law, including legislation, case law, European Union law, and the Law Commission. The role of the government in law-making is discussed, emphasizing its responsibility for drafting bills and presenting them to Parliament. The report then analyzes the impact of contract, company, and employment law on business operations, highlighting the importance of legal compliance. Different types of business organizations are explained, along with their management and funding aspects. Finally, the report recommends legal solutions for a range of potential business disputes. This document is available on Desklib, where students can find a variety of study resources.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Essential Sources of law applied in UK.................................................................................1
P2 Role of government in law making........................................................................................3
TASK 2............................................................................................................................................4
P3 Analysing some of impact associated to contract, company along with employment law
that are significant for business...................................................................................................4
TASK 3............................................................................................................................................5
P4 Explaining major types of business organisations that are formed legally............................5
P5 & M3 Management and funding of business organisations...................................................6
TASK 4............................................................................................................................................8
P6 recommend legal solutions for range of dispute.....................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Law is a word that possess different meanings when used at different times. Law is
defined as a body of rules of action or conduct by controlling authority that have some binding
force on them. Law must be obeyed and followed by citizens subject to sanctions or legal
consequence is a law. Legal system of UK consist various laws that governs different issues
arises in the country (De Luca, 2021). These laws helps in bringing peace, preserve individual
rights and promotes justice to every person. Business law is a small part of the large legal system
in UK that helps in governing all the business activities taken place in the country. Business
environment has changed over the past years and this change highly demand rules, policies and
regulations to conduct business in legal manner. Formation of law is quite a long process that
needs quality information and precise decision as these laws are going to affect public at large.
Having a legal system in the country is important as it helps to provide guidelines as to what is
accepted in the society. Business environment is changing day-by-day and to cope with these
changes it is important to understand business law to avoid legal hurdles.
This project report consist information regarding various sources of law through which it
is formed. Role of government in law formation and types of business organisation that can be
formed to conduct business operations. Management and funding of business formation with
legal solutions available to disputes arises in business.
TASK 1
P1 Essential Sources of law applied in UK
United Kingdom of Great Britain consist of four countries England, Scotland, Northern
Ireland and Wales. Laws that are formed in UK are not mandatory to apply over all the four
countries, some applies to one or some applies to two or three. It is seen that the law either
applied to whole of the UK or to England and Wales (Lynch, Cygan and Whitaker, 2020).
Application of law is secondary but formation of law is the first priority. Sources of law act as
information that helps in designing a law and then representing this as a bill to the parliament.
This bill to become a law is required to pass in both the houses of parliament with royal consent.
Laws is formed through various information and this information is collected through different
sources which are as follows-
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Illustration 1: Sources of law, 2015
Source: Sources of law, 2015
Legislation: The UK does not have a single written constitution, it is described as partly
written and wholly unconfined. Laws that are passed in the parliament are the large part of
written legislation in the country. Laws are defined in the form of legislation which is applied to
whole UK. It is commonly said that “Parliament is Sovereign”. This means that parliament is the
highest authority to pass any law in the country (Schwemer, 2019). Most important piece of
legislation are Acts of parliament. These are considered as important source as any change is
quickly reflected through this source of law formation. When information is provided and bill is
passed the UK parliament which is the principal legislation of the nation passes law for the
country.
Case law: Decisions of the court that are reported in the publications are known as “Law
Reports”. These decisions of the court are considered as fundamental, primary source of law
formation. A law will be considered as successfully developed when the information in the
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report is reliable. This has evolved as a unique feature in English law, where the reported
decisions of the court forms a binding source for future cases. Judgement that is passed in the
case which is different and may arise in future is considered before taking decision regarding
similar matters all over the UK (Fisch and Solomon, 2019).
European Union Law: UK is the member state of European union which means that
laws that are formed under European union needs to be followed by UK. This becomes another
important source of law formation. Laws that are defined by European union are international
laws which are incorporated into domestic legislation by Human Rights Act, 1998. Courts must
apply these laws according with the convention where possible. When it is not possible to apply
such laws then it can be changed through parliament only.
Law Commission: The law commission is an independent body that was set up in the
year 1965. this commission helps to keep law of England and Wales under review and
recommand reforms when needed. Commission performs its work to carry out consultations with
the wider public and interested parties and experts depending on the area of law. Findings for the
requirements of reforms are submitted to the Lord Chancellor. These reports are considered and
reviewed to bring changes in the legal system of UK.
In R v S of S Health ex parte Quintavalle [2003], case the Pro Life Alliance argued that
Human Fertilisation and Embryology Authority did not have authority to licence research with
regards to cloning. The Human Fertilisation and Embryology Act, 1990 granted the Authority
the right to licence research with regards to embryos. An embryo was defined in the act as “a live
human embryo where fertilisation is complete”. Embryos using cloning are not fertilised. In this
case it was held by House of Lords that the cloned embryos were covered by the statute taking a
purposive approach to statutory interpretation. This case law is served as source of law in the UK
legal system (R v S of S Health ex parte Quintavalle, 2003).
P2 Role of government in law making
Formation of laws required information that is collected through various alternative
sources available through legal system. Parliament perform three core functions one is to
represent citizens interests, another is to pass laws and last is to monitor the actions of the
government. Parliament performance a legislative function because in addition of introducing
new laws and legislation in the country they have power to amend, approve and reject
government draft laws (Kokkinis, 2017). Role of government in law formation is to designing
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draft as bill for the required law and presenting this to the parliament. For preparation of draft for
new law or altering law various information which is reliable is considered to take decision.
Government in the country deals with general public through various departments and this givers
them privilege to grab information which is required in decision making for new laws. When any
requirement for law formation is noticed then proper research is done in the concerned matter to
check its reliability. All permutations and combinations are applied to make a secure decision.
When the requirement for the law is found then a bill is prepared by government which is draft
for new law. This draft will be submitted in the parliament and now all the decisions will lie in
the hands of the parliament to pass the bill and make it a law that will be applicable to UK. After
checking viability of the project House of Lords and House of common will show their concern
in favour of the bill if they find new law in the favour of public at large. With the approval of
houses royal consent to the bill is also necessary to make it a law.
In the recent reforms after BREXIT it is seen that government intervention is quite
commendable to restore economy of UK. When Britain announce its separation from European
nation this news brings a massive degradation in business sector. To reduce the impact of
BREXIT from the business sector new policies are introduced by government. These policies
helps in smoothing business operations and decreases legal requirement in business (Epeoglou,
2017).
TASK 2
P3 Analysing some of impact associated to contract, company along with employment law that
are significant for business
Operations in business are not conducted in isolation and while conducting business
activities all the other laws that directly or indirectly affects business needs to be followed.
Due to availability of high amount of competition in the market no business organisation
wants to be in any legal issues. Businesses that follows all the laws enjoys goodwill in the
eyes of general public which helps in surviving for long run (Smith, 2020). Their are
various other laws that business organisations needs to follow are as follows-
Contract Law: A contract is a voluntary, deliberately and legally binding agreement
between two parties to complete an important activity. Organisation while performing business
activities enters into various contracts that brings certain level of certainty for future. As contract
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entered by business organisations helps them in performing certain transactions at pre
determined conditions. This helps in securing uncertain future. To enter into a contract which is
legal and how it can be cancelled or brought to an end all this information can be garbed through
contract law. While entering into a contract business organisations needs to know about all the
legal factors that needs to be considered to decision making. To conduct business in more
effective manner knowledge of contract law must be present with business law. For example- a
contract to sell good at a price on which agreed on is done. Then selling price will not be affected
with price fluctuation in the real market.
Company Law: Company is one of the form in which business can be established
legally. Company law guides business organisation from the incorporation till dissolution in
relation to legal requirements. Businesses that are registered as company needs to follow all the
regulations as per company to establishing business legally (De Lucia, 2019). When business is
registered as company each decision much comply company law with business law. Company
laws grants a separate legal entity to business distinct from its owners. Management, funding,
auditing and preparation of final accounts of business will be done as per company law. Any
breach of company law will create legal offence. For example- Appointment of number of
directors in the company must be as per companies act to complete the process of incorporation.
Employment Law: Rules and regulations to manage humane resource working in the
business is prescribed in employment law. Employees are considered important for success of
business as efficient and skilled employees brings success to the business. Employees wages,
maximum working hours, resignation rules are specified in the law. Any dispute arises among
business and employees will be resolved by following employees law to take legal decision
(Kopnina and Blewitt, 2018). For example- When employees are asked to double their shift for
working by managers then they will not be legally bound to perform what is asked for as per
employment law.
TASK 3
P4 Explaining major types of business organisations that are formed legally
Business law defines number of forms in which business can be established. Selection of
one form under which business can be established depends on management, requirement of
funds and business objective. Jane, Penny and Marie has established a partnership business after
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graduation (Lawrence and Weber, 2014). They wants to expand their business and for this funds
are required. Their are various alternatives available to them to alter their business formation
which are as follows-
Limited Companies: In limited companies liability of members or subscribers of the
company is limited up to the amount invested by them in share capital. Establishing a business as
company will give special status of enjoying separate legal entity in the eyes of law distinct from
its owners. Businesses established as company is managed through professional managers who
are appointed by owners of business with their mutual consent. Ownership is divided into small
unit named as share in which companies total capital is divided into small units and sold in the
market. Person having shares in the company will become shareholder. Limited companies
requires various legal compliances to be followed to bring into existence (Munkholm and
Schjoler, 2018). A huge amount of capital can be generated by selling shares to invest in
business. As funds required by Jane, Penny and Marie is for expansion of business the this form
of business is suggested to them.
Limited Liability Company: Business that possess quality of a company an da
partnership is LLC. These types of establishments are not permissible to establish in each state.
Business enjoys limited liability as company and management of operations are as flexible as
partnership business. Availability of funds to LLC is not as easy assessable as to limited
company and Jane, Penny and Marie want more funds to expand. So, this is not a competent
choice to convert partnership in LLC.
Jane, Penny and Marie are not suggested to form sole proprietorship as they are more
than one person involved in business activities (Di Torella and Masselot, 2020).
P5 & M3 Management and funding of business organisations
Unincorporated business: Business organisations exists because of the existence of their
owners and losses it with the owners existence. This form of businesses are termed as
unincorporated businesses. Their is no separation in the liability of business or owner and
personal assets of the owners are used to meet the liability of business. Unincorporated
businesses are sole proprietorship, partnership and family trust.
 Sole proprietorship- Business with single person acting as owner and manager with no
registration requirement is sole proprietorship. This is one of the simplest form of
establishing business with no legal compliances, no legal requirement of investment. All
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the operations are managed by owner only and investment in business is limited as all
investment belongs to owner. All the risk and rewards in the business totally that of the
owner.
 Partnership: When two or more individuals operates business activities with the motive to
earn profits then it is termed as partnership. Partnership business is governed by a deed
that specifies all the details regarding capital investment and profit distribution, rate of
interest charged or paid to partners. Management of partnership is done by all the
partners and investment in capital is made in certain ratio as decided by them.
Availability of funds to partnership is more then sole trader business but not much as
resources to individuals are limited to certain extant (Waltman, 2017).
Incorporated Business: Business that are formed with complying all the legal
requirements and possess separate legal entity distinct from its owners are termed as
incorporated businesses. These businesses enjoys benefits of availability of funds and effective
management of operations to earn more profits and attain business objects. Limited companies
and LLC is form of incorporated business.
 Limited companies- Companies limited with shares possess large number of shareholders
so management of business operations in company is done by directors and managers.
Directors in the business is appointed by shareholders with majority. When management
is different from ownership chances of manipulation in financial records gets minimised.
Experienced managers leads to achieve business objectives as planned. Funding of
limited companies is done through issue of shares and loans can be taken from
unregistered financial institutions (Gammeltoft-Hansen and Aalberts, 2019). Jane, Penny
and Marie are advised to transfer partnership business as limited company to get funds
required for business expansion.
 Limited Liability Companies- Business registered as LLC is managed through persons
who are authorised for management. Feature of company to manage operations is
available but availability of funds as limited company is not available to LLC as issue of
share capital to public at large is not available (Theodosiou and Katsikea, 2012). Liability
of the owners is limited as company and flexibility is their in managing business
operations. Jane, Penny and Marie is in the requirement of huge fund investment to
expand their business so LLC form of business will be unsuitable for them.
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TASK 4
P6 recommend legal solutions for range of dispute.
Arbitration: In this method one gets confidentiality in method, and provides distinctive reasons to
provide several solutions and method to create and justify this method. Its the best method in
setting up a big dispute without need of interference from court. This solution is
recommended to the case of Blackhorse company and creditors as their case is related to the
winding up of the company and the arbitration can be the best suited method to resolve this
dispute in an effective manner due to its formal hearing and speedy disposal.
Conciliation: Its not that effective in nature since it only conveys information to both sides but
does not give advice to resolve dispute. It involves appointing the conciliator who hears
party and advise them but it is up to parties to go ahead with the suggestion or not. This is
suitable for Gordon case as the parties can conciliate on the terms of the contract so that
there is harmony maintained between them.
Mediation: here its just provides the information of dispute and issues in the organisation, but it
does not provide any setup for any distinction of setup. Its not that effective in nature but
can help in small disputes. This is suitable for the case of Virgin media and Janet as the
matter will be solved internally by the company and its goodwill will also be protected.
CONCLUSION
From the above project report, it has been concluded that presence of legal system in an
economy is very important to operate effectively. Legal system is designed with various sources
and comprising of different laws. Business law defines various forms in which business can be
established by considering funds and management requirement. Government of the country plays
import role in law formation form its initial to final stage. Together with business law various
other laws needs to be followed by businesses to avoid any dispute. Disputes when arisis are
resolved with best legal advise.
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REFERENCES
Books and Journals
De Luca, N., 2021. European company law. Cambridge University Press.
Lynch, P., Cygan, A. and Whitaker, R., 2020. UK Parliamentary Scrutiny of the EU Political and
Legal Space after Brexit.
Schwemer, S. F., 2019. Licensing and access to content in the European Union: regulation
between copyright and competition law (Vol. 49). Cambridge University Press.
Fisch, J. and Solomon, S. D., 2019. Centros, California’s ‘Women on Boards’ Statute and the
scope of regulatory competition. European Business Organization Law Review. 20(3).
pp.493-520.
Kokkinis, A., 2017. Corporate Law and Financial Instability. Routledge.
Epeoglou, M. T., 2017. The Recast European Insolvency Regulation: A Missed Opportunity for
Restructuring Business in Europe. UCLJLJ. 6. p.31.
Broccardo, L., Culasso, F. and Truant, E., 2017. Unlocking value creation using an agritourism
business model. Sustainability. 9(9). p.1618.
Smith, R., 2020. International Human Rights Law. Oxford University Press, USA.
De Lucia, V., 2019. The'ecosystem Approach'in International Environmental Law: Genealogy
and Biopolitics. Routledge.
Baudenbacher, C., 2017. Fundamental Principles of EEA Law. Springer.
Munkholm, N. V. and Schjoler, C. H., 2018. Platform work and the Danish model-legal
perspectives. NJCL, p.116.
Di Torella, E. C. and Masselot, A., 2020. Caring Responsibilities in European Law and Policy:
Who Cares?. Routledge.
Waltman, M., 2017. Appraising the impact of toward a feminist theory of the state:
Consciousness-raising, hierarchy theory, and substantive equality laws. Law &
Ineq.. 35. p.353.
Gammeltoft-Hansen, T. and Aalberts, T., 2019. The Politics of Transnational Law.
Hadjiarapis, C., 2019. Tobacco plain packaging legislation in the context of the rationale of
European trade mark law: public policy, justification, compatibility. The University of
Manchester (United Kingdom).
Fellman, S. and Shanahan, M., 2018. Sectoral influence on competition legislation: evidence
from the cartel registers, 1920–2000. Business History Review. 92(4). pp.633-660.
Malyuga, E. N. and Orlova, S. N., 2017. Linguistic pragmatics of intercultural professional and
business communication. Springer.
Lauri, M., 2019. Mind your own business: Technologies for governing social worker
subjects. European Journal of Social Work. 22(2). pp.338-349.
Mjaaland, M. T. ed., 2019. Formatting Religion: Across Politics, Education, Media, and Law.
Taylor & Francis.
Online
R v S of S Health ex parte Quintavalle. 2003. [Online]. Available through:
<http://www.e-lawresources.co.uk/cases/R-v-S-of-S-for-Health-ex-parte-
Quintavalle.php>
Mann v Goldstein. 1968. [Online]. Available through:
https://swarb.co.uk/mann-v-goldstein-chd-1968/
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Sources of law. 2015. [Online]. Available through:
<http://consumer.newbeginningsresources.co.uk/legal/the-english-legal-system/sources-
of-english-law/>
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