Business Law Report: Analysis of Legal Systems and Business Impact

This business law report provides a comprehensive overview of the UK legal system, exploring its sources, including legislation, directives, case laws, and treaties. It analyzes the roles of the government in lawmaking and the application of statutory and common law to businesses. The report critically reflects on the strengths and weaknesses of the legal system, discusses key legislation, regulations, and standards for new businesses, and examines the impact of various laws such as contract, tort, copyright, and employment law. It further explains different legal structures in both public and private sectors, detailing their advantages and disadvantages. Finally, the report addresses specific legal cases, offering solutions and comparing the effectiveness of different legal recommendations. The report concludes with a critical evaluation of the appropriate legal solutions suggested in comparison with alternative legal advice.

Business Law

Table of Contents
INTRODUUCTION........................................................................................................................3
TASK 1............................................................................................................................................3
1. Explanation of the legal system, different sources of law, the role of government in law-
making and how statutory and common law is applied to businesses...................................3
2. Critical reflection of the legal system using examples to demonstrate strengths and
weaknesses.............................................................................................................................5
3. Explanation of the key legislation, regulations and standards that a new business needs to
be aware..................................................................................................................................5
4. Impact of different law upon business organisation...........................................................5
5. Explanation about different legal structure in public and private sector with their advantage
and disadvantages...................................................................................................................6
6. How different organisations are managed and funded in both public and private sectors.7
TASK 2............................................................................................................................................8
1. Brief overview of Contract law, employment law, Company law, etc..............................8
2. Salient legal points of each case.........................................................................................8
3. Suggest an appropriate legal solution to each of the problems..........................................9
4. Provide justification for the advice and solution given......................................................9
5. Compare & contrast the effectiveness of the given recommendations..............................9
6. Critically and evaluate the use of the appropriate legal solutions suggested in comparison
with alternative legal advice.................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUUCTION
Business law means the area of law which governs the commercial transactions in a
systematic manner. It is necessary to understand that guidelines is to be followed in each and
every situation for accomplishing the goals. In terms of discussion towards this report, number of
topics are to be discussed which will help to focus that how laws are needed to be commenced
and what the legal representative within the parliament house. Also, How any of the business is
needed to be set up and for that what are the criteria which is needed to be fulfilled. Whereas
case studies are to be solved in this which will help to understand that how any of the civil form
of cases can be dealt.
TASK 1
1. Explanation of the legal system, different sources of law, the role of government in law-
making and how statutory and common law is applied to businesses.
The legal system of UK is very well planned where roles and responsibilities are
distributed in number of bodies. It is one of the reason that every sector gets opportunity to take
their decision in a systematic manner. The legal system has given the power to Parliament for
forming any of the new law whereas final approval is needed to be given by Queen who has the
supreme level of power with UK. Also, legal system has given power of commencing law to
external bodies due to which they take activity participation at the time of commencing law and
allows other bodies to perform their task systematically (Harner and Rhee, 2014).
There are several sources in UK which commences law and all of those source work as
per the orders given by the central body of UK i.e., Parliament House. The brief discussion about
this sources are explained below:
 Legislation: The fundamental source for forming the law is legalisation where proper
team has been formed into two parts i.e., House of Lords and House of Common.
Whenever any of the law is commenced through the process of legislation procedure then
final approval is to be taken by Queen (Wachter and Mittelstadt, 2019).
 Directives: It has a direct link with European Union where union body commences the
law in UK without obtaining the permission. The power to commence any of the law with
the help of directives has been allowed just after the end of world war.

 Case laws: There are number of occasion where law decisions are needed to be declared
but due lack of available number of laws it is not possible to declare the decision. By
looking at the situation of cases, government has authorised the court to declare the
decision of own by commencing new laws and regulations (Murray, 2014).
 Treaties: Several number of laws has been formed by the international government
where UK government have agreed to follow them. It means that those treaties are also
needed to be followed in a systematic manner and it is necessary that any of the new law
which has been commenced by government should not contravene the treaties formed
under international laws.
In every nation, the ruling government plays the crucial role for the process of
development or even in the formation of laws and policies. In context of UK government, they
have huge role to play at the time of formation of law. They always start with the primary work
which is drafting the bill. Drafted bill is to be presented in front of first reading. In first reading,
member have to give title and in second reading formal discussion is necessary. When it comes
to committee stage, there is necessary to understand that they have to check those points which
can create problem at the time of commencing law. The points which are needed to be amended
as per the guidelines of committee stage is to be done by report stage. In third reading, member
are required to pass the bill if majority number of members agree upon it. Then bill is to be given
to House of Lords where all of the steps are to be cross verified by peer members. If peer
member agrees upon it, they forward the bill to Queen, where she has to given final approval
under Royal Assent Act, 1961.
Statutory law and common law the two most important law within the premises of UK
where it is compulsory that it must be followed by every business organisation. In case of
statutory law, the laws are already formed by the government which means those law are simply
needed to be applied by business organisation at the time of taking decision (Rutledge, 2014).
Secondly, common law are those laws which are commenced by looking at the situation which
are available in front of the company. This decision are taken by the judges of different level of
court and it is necessary that those decisions must be applied by the business organisation.

2. Critical reflection of the legal system using examples to demonstrate strengths and
weaknesses.
It is necessary for any of country that their legal system should be formed systematically due to
which it becomes easier task to conduct any of the activities. But, in number of cases it has been
found that it is not possible to cover each and every area which are determined under the
weaknesses. The main strength of English Legal system is that power to commence any of the
law has been given to multiple bodies due to which it becomes very tough to conduct any of the
unethical activities. But looking at the weaknesses of the law, it can be easily seen that the law
which they had formed needed to be formed but they never think about doing any of the
amendment in number of law.
3. Explanation of the key legislation, regulations and standards that a new business needs to be
aware.
Legislation, regulation and standards are interrelated but they all have different values for
any of the business organisation and it is mandatory to follow it. Discussing about legislation,
they have they responsibility to commence the law for any of the business organisation which is
needed to be followed. Regulation are the one who which explains in detail that how laws are to
be enforced on any of the business organisation or how it is needed to be followed. In the end
standards, it applies on business organisation which clearly identifies by providing specification
for any of the product, services and system (Besley, 2015). It doesn’t allow to reduce the
standard of the services as it imposes the penalty upon the business organisation.
4. Impact of different law upon business organisation.
Contract Law: Law which has the potential to make certain limitation to do any of the
work in a systematic manner is known as contract law. It mainly applies upon at the time where
people perform any of the specific task within the given time period in return of any
consideration. The impact of contract law upon business entity is that it doesn’t give the
opportunity to make any of the decision of own, once the agreement has been formed.
Law of Tort: It is the situation in which one party has to suffer just because of the fault
done by another part. As per the law of tort, it doesn’t allow the person to do any of sort of those
work which can create problem for other and if they do, then legal action is taken. In impact of
law of tort on business organisation is that it doesn’t give permission to any of the company to
earn profit by creating problem for other (Forrer and Katsos, 2015).

Copyright Law: This law refers to the legal right of the owner of intellectual property.
This law simply gives the power to copy the product of other by obtaining legal permission. The
main impact of copyright law is that it won’t allow any of the company to copy the product of
any other organisation till the date of taking approval.
Employment Law: The most important law is employment law which tells that company
must follow the employment law. It makes compulsory for any of the organisation that
employment law must be followed for accomplishing the target. The main impact of employment
law is that it confirms that company will not discriminate any of the employees in any of the
situation.
5. Explanation about different legal structure in public and private sector with their advantage
and disadvantages
In context of present scenario, they are number of types according to which business
organisation can be formed and out of them some of them are discussed below:
Sole Proprietorship: It is the small form of business whose duty is to perform business
at smaller ground where government doesn’t interfere much and more. It is needed to be run by
owner themselves (Scheuer, 2015). To start any of the sole trader, it is necessary to have
National insurance number and must be registered for self-assessment with HMRC. The
advantage in this types of business is that owner can enjoy the profit without paying any of the
tax. On the other hand, disadvantage is the power to sue and being sued is not available.
Partnership Firm: This types of firm are more required to have at least two person and
maximum up to 20 persons for conducting business activity. They perform business at smaller
level where different ideas can be used to earn the profit. The procedure to start partnership firm
is that there is the requirement to prepare the partnership deed and after that registration with
HMRC is also required in it. The advantage of this types of business is that chances of taking
appropriate decision will be high if there is a proper communication system being used. The
disadvantage is that liability is not limited.
Private Company Limited by Share: This are the company where limited number of
member are only allowed to take the part in business activity. The role of member plays the
crucial role at the time of taking any of the decision (Bayern, 2016). The legal procedure to set
up private company limited by share, it is necessary to have a deed prepared where list of all the
members should be there and secondly it becomes important that director of company should be

nominated. Once this task is completed, it is important that MOA and AOA should be prepared
and all of the documents are needed to be deposited within the Companies House to start the
business transactions. The advantage is that liability will be secured in it whereas negative
impact is that it won’t allow to transfer the share to outsiders.
Public Company Limited by Share: The form of business where involvement of public
can be seen easily is known as public company limited by share. This types of company can be
commenced by following this respective procedure.
 Name of the company is required with mentioning the address.
 It is necessary to have first director and shareholder.
 Then SIN number is required to be obtained (Allen, 2017).
 It is mandatory for first director and shareholder to prepare Memorandum of Association
and Article of Association.
 Now, all of the documents are needed to be submitted within the Companies House.
The main advantage of this form of business is that it doesn’t get affected from entrance and exit
of any member. Whereas number of formalities are needed to be done in it due to which
unnecessary expenses occurs in this types of business.
6. How different organisations are managed and funded in both public and private sectors.
Types of Organisation How it is managed How it is funded
Limited Company The one who invest capital in
it has the responsibility to
manage every single work.
Bank loan and personal capital
is the main source of raising
fund.
Social Enterprises Manager and director are the
one who manages every single
business activity (Hansman
and Kraakman, 2017).
Government funding and
public donation is the main
way through which it is
managed.
Corporation Board of Directors, Managers,
Share Holders and Company
Secretary are the one who
manages the company.
Bank Loan, Shares, debenture
are the main source of raising
fund.
Co-operatives Manager have the
responsibility to manage every
Membership fees, common or
preferred stocks, bonds, by

single work. borrowing from banks are the
main source of raising fund.
TASK 2
1. Brief overview of Contract law, employment law, Company law, etc.
Contract Law: The law which deal about the relation of involved party for conducting any
of the specific activity is known as contract law. It does not give the permission to any party to
breach the terms and condition of agreement.
Employment Law: The law where relation of employer and employee is known as
employment law. It confirms that owner of the company doesn’t discriminates any of the
employees within the premises of a company (Picciotto, 2017).
Company Law: The law which explains about the roles and responsibility which is
needed to be followed by any of the business organisation is known as company law. If in any of
the situation organisation fails to perform their task, then heavy penalty can be imposed.
2. Salient legal points of each case
Case 1: Case is connected with Orange Ltd and Gordon. There was the contract between
both of them in which it was decided that company will pay 10000-pound p.a. including other
commission. As company was suffering from losses, they signed new contract in which it was
decided Gordon will be paid off. Again, company starts to earn the profit due to which company
Gordon demanded for previous salary slab which was rejected by company.
Case 2: The case has a connection with Janet and Virgin Media. It was found that
company was giving the combo offer of internet and telephone service but due to technical errors
their engineer was unable to do that. But, company had send the bill of including all the services.
Now, Janet want that company should not charge any of the additional amount of money (Raz,
2017).
Case 3: Blackhorse Limited is one of the security guard providing company. It was found
that company’s debt was increasing day by day. By looking at the situation, one of the its
creditors had filed the case for its winding up.

3. Suggest an appropriate legal solution to each of the problems
Case 1: By looking at the complete situation of the case, it can be easily said that both the
party should go for conciliation method for resolving their problem related to the case.
Case 2: In this case, the better option which is available in front of the disputed party to
solve the problem is mediation process (Scheuerman, 2017).
Case 3: For the purpose of resolving the serious nature of problem, it will be important for
disputed party to select arbitration process for resolving the issue.
4. Provide justification for the advice and solution given
Case 1: This case was required to be solved by conciliation process because main focus
will be that how both of the disputed party can come closer to the formed contract.
Case 2: The main reason to solve this case with the help of mediation process because it
has been found that there is just a communication gap between both disputed party. Mediator can
easily guide that what are the changes which can help to resolve the problem.
Case 3: Arbitration is suitable in this respective case because company is unable to
decided that how long time they require to do repayment of the party. The panel can easily come
to one of the particular decision to declare how and when payment is to be done.
5. Compare & contrast the effectiveness of the given recommendations
Conciliation: By looking at the situation of the case, it can be easily said that it is one of
the effective recommendation because the main problem which has been found between
company employee is that they are unable to reach up to the solution. Although, there will not be
any necessity that it must be followed.
Mediation: This method was used in second case where it can be seen that changes are
necessary but it is also necessary to understand that this method doesn’t make sure that solution
will be taken out or not (Tushnet, 2017).
Arbitration: It is the most significant recommendation which can be given within any of
the case because it helps to find out the solution which a disputed party wants. Also, it is one of
the time saving method for sorting out the dispute.

6. Critically and evaluate the use of the appropriate legal solutions suggested in comparison with
alternative legal advice
The use of appropriate legal solution suggestion in the above cases was effective because it
is one of the time saving process where disputed party have to not take lots of tension to sort out
the problem. It is also important for because decision can be taken out in short period of time
(Epstein, 2018). But, it is necessary to understand stand that every time this solution will not
work because it is the choice of disputed party that they adopt this process of or not.
CONCLUSION
From the above file, it can be noted that business law plays the supportive role in number of
situation. Any of the commercial transactions can be completed only if company takes the help
of business law. None of the business can be setup if company doesn’t follow the procedure of
legal structure. Disputes can be of different types but it is necessary to understand that it can be
easily sorted out if they take the help of alternative dispute resolution method.

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