HNC Business Law: Sources, Impact, Business Forms & Solutions

This report delves into various aspects of business law, beginning with an exploration of the sources of law in the United Kingdom, including primary sources like legislations and judicial precedents, and secondary sources such as parliamentary debates and law journals. It explains the government's role in lawmaking, detailing the stages a bill goes through to become law, and differentiates the application of statutory and common law in justice courts. The report further illustrates the potential impact of company, employment, and contract law on businesses, providing examples of both the benefits and burdens of compliance. It also discusses the formation, management, and funding of various business forms. Finally, the report offers recommendations for legal solutions applicable to a range of disputes, providing practical guidance for businesses facing legal challenges. Desklib provides similar solved assignments and past papers for students.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................2
P1. Explain various sources of law ............................................................................................3
P2. Explain the role of government in lawmaking and how statutory and common law is
applied in the justice courts.........................................................................................................4
P3. Using specific examples illustrate how company, employment and contract law has a
potential impact upon business...................................................................................................5
P4. Explain the formation of various types of business forms. ..................................................7
P5. Discuss the management and funding of the various form of business ...............................8
P6. Make recommendations of legal solutions that can be applied to solve a range of disputes.
.....................................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
INTRODUCTION

Business laws of the country which mainly are the Companies Act, Employment Act,
Contracts Act plays a very crucial role with respect to the affairs of every business. Also the laws
states the measures in which the conduct of the bushinesses are need to be carried out for
ensuring their smooth functioning. The said legislation specifies number of duties and obligation
which every individual stands bound to follow in order to escape from any further legal actions.
Also the process of incorporation as well as of its dissolution needs to be carried out in the stated
manner. The said report is going to discuss the different sources of law along with the functions
of government of the country for the purpose of outlining of such laws. The report also covers
the different aspects in which both the common as well as civil laws are applied in the court of
justice. Its also elaborates the several different form of business forms of business which mostly
prevails along with their ways in which they are managed and funded. In last for the given case
studies the report recommends the legal solutions out of the best options(Bassel, Monforte and
Khan, 2018) .
MAIN BODY
P1. Explain various sources of law
The legal system of the United Kingdom comprises of both the aspects of civil as well as
common laws. For the effective deliverance of the justice in the society the respective courts
works in accordance of the system which results from both the legislations as well as from the
landmark case laws which are the judicial precedents of the state. Furthermore, the supreme
court is said to be apex court of the country which entertains all sort of appeals from the
subordinate courts which are the high court and divisional courts. There lies the two major
categories in which the sources of laws are bifurcated which are as follows-
Firstly, the Primary resources are reasoned as the original and authoritative piece of
laws of the country which generally lies in the form of legislations or drafts. The primary
resources are constituted by the bodies of the government who are legally authorised to make
such laws. Further the two major forms of this type of sources are the legislations and the judicial
precedents which are explained as follows-

The very first being the Judicial precedents which are also addressed as the landmark
case laws are the decisions of the courts which has been delivered by the judges with respect to
the lying facts of the case. The judgements of the superior court stands binding on all the inferior
courts of the country each dealing with similar facts of the case(Bini, Bellucci and Giunta, 2018).
Other being the Legislations, are outlined by the parliament in the form of drafts which
comprises of the certain rules, regulations as well as obligations which bound the individuals.
The said drafts after being gone through all the stage of law making and attainment of royal
assent are addressed as the legislation. Moreover, parliament is said to be the only authorised
authority for the purpose of constitution of the legislations.
Other than this with respect to the Secondary sources, are the documents or drafts which
results from the dialogues of the original one. This type of sources are not considered as the
original roots of law. The debates of parliament, textbooks, law journals, legal encyclopedia,
dictionaries are some of the major secondary sources which are in detailed has been discussed as
follows-
First being the Parliamentary debates, are considered as one of the starring source as it
assists in knowing the actual objective or aim of the makers behind the constitution of such
law(Chacon, 2022). Mainly these are in the forms of command papers which generally are in
green and white colour, debates of the parliament and their said publications. Second,being the
law journals, are the wide range of data and informations with respect to every possible areas of
law. Hein online is one such example of law journals. Third being the legal encyclopedias, acts
in the capacity of tools majorly with respect to the research purposes for the areas of laws. The
information acquire from this lies in the form of summaries and short briefs of the legislations
and judicial precedents. Example of this can be the Halsbury Laws of England. Fourth being the
Textbooks, are the creations or the wok of certain academic writers. These are considered as one
of the primary way for an individual in order to start the research. The examples of this can be
the Criminal Law Book of Smith and Hogans .
P2. Explain the role of government in lawmaking and how statutory and common law is
applied in the justice courts.
For the making of any law in the country there lies a specific process which comprises of
various stages. As the whole process of making laws is a crucial task therefore it requires the
involvement of person having the said knowledge and experience. For the drafting of legislation

for the country, parliament is said to be the only body who enjoys such authority. The
parliament of the United Kingdom consists of two different houses named house of people and
house of lords where house of lords is considered as the upper house and the other as the lower
house of the parliament. Any legislation starts its initiation with the formation of a draft which
needs to be proposed to the parliament in order to go through the various stages. The said stages
of the process are as follows-
First reading, which is considered as the primary stage of the process. In the a suitable
title is assigned the said draft in accordance of its subject matter after which the same is
forwarded to the next stage which is of the second reading.
Second reading, at this particular level there occurs the detailed discussion on all the
aspects of the draft, assessing all the possible and negative effects which the daft is going to
make in future on both the country as well as on society(Cribb, Miller and Pope, 2019).
Committee stage, in this the members of the parliament takes part in the discussion
mainly with respect to its title, subject matter and the concerns of the draft.
Report stage, in this stage all the modifications and changes which has been been
discovered at the earlier stages are made to the draft.
Third reading, at this stage the majority is ascertained in favour of the proposed draft by
the members of the parliament to know whether the draft can be passed or not(Tingey and Webb,
2020).
House of Lords, after the attaining of majority to the draft, certain measures are taken by
the members of the parliament to acknowledge the fact that what impact the said law will make
on the society.
Royal assent, this stage even though it is just of an formality is considered as one of the
most important stage of the whole process. No legislation is said to be completed and get its legal
existence without attaining the royal assent to it from the queen of the United
Kingdom(Giacalone, 2018).
Furthermore there lies the difference between the process of application of both statutory
as well as common law in the courts of justice. With respect to the court of the country mainly
they are bifurcated into two broad categories which are the higher and lower courts. The
Supreme court, high court and the appellate courts comes under the head of higher category
whereas the country courts, divisional and magistrate courts falls under the head of lower

category. Further, the common laws are the one which are derived as the result of the decisions
of the courts in the form of judicial precedents whereas the legislations are the one which in the
codified form and are acquired through the process of making laws. With respect to the
applicability of the said laws, the statutory laws are applicable on on levels of courts in the
similar manner and the courts are also bound to adhere them. Whereas in case of common laws
the inferior courts are the one which stands binding against the decisions of the superior courts.
P3. Using specific examples illustrate how company, employment and contract law has a
potential impact upon business.
Every business or individual in order to carry out the affairs of the business in an
effective manner is required to comply with the number of legislations which mainly are the
companies, employment and contract law. The non compliance of each legislation plays
different impact as each govern the different aspects of the business. All the mentioned
legislations specifies their own duties, responsibilities and obligations which both the individual
as well as business is need to comply with(Hanretty, 2020). The impacts of mentioned Acts
along with their positive and negative impacts are as follows-
 Company law: For the purpose of the regulation of the companies in the states
the Companies Act of 2006 is considered as on of the major legislation which
specifies the manner in which the affairs of the business needs to be carried out.
The said laws governs all the minute aspects of the business including from its
birth to its state of insolvent. The application of the act bound both the company
as well as its concerned workers to abide by certain duties and obligation as
specified in the act. But if it is viewed from the other side then in such cases the
strict compliance of the laws and regulation can become a tedious and
burdensome task on the part of the company. As the said task can consume a lot
of time as well as money on the part of the part of the company. Also the non
compliance of the said regulations can impose the number of penalties and legal
implications on the owners and management of the business (Hessick, 2019).
 Contract law: This area of law take care of several agreements and contracts
which takes place between the companies and individual or with any other
corporate bodies. With the practical application of the contract acts, the members

which are parties to the contract becomes legally bound to fulfil their part of
obligations in accordance to the one which are stated in the agreement. Further if
there stand a case where the one of the party to the contract breaches or fails to
fulfil their part of contract then in such case one is liable to pay the damages or
compensation to the other party against whom the breach has been done. The
primary aim of this act is to ensure that the party against whom the breach has
been committed, by the way of damages can be restored in the actual position as
one was in before. Further, mainly with respect to the contract of the companies,
there can originate certain complex situations on the part of business as the
adherence of all the rules and procedures can be a lengthy and time consuming
task. Thus the same measures can be considered as one of the major impact which
the company can have as a result of strict compliance of the lying laws.
 Employment law: The primary aim of the employment laws is to ensure that the
affairs of the business mainly with respect to the conduct of the employer as well
as employees are taken care of. It also ensures that there lies no exploitation and
discrimination of the employees in the workplace(Keers and van Fenema, 2018) .
Mainly this law has been defined as the relationship of employer and employees,
where certain duties and obligation has been specified for their part to fulfil. Other
than this the various aspects such as the measures regarding health and safety in
the workplace, maximum working hours, minimum wages, adequate leaves, etc.
are also ascertained in accordance with the employment laws. For the effective
and continuous growth and success of the business every organisation must
adhere to the regulation as stated by the employment laws. Also the organisations
in order to avoid the conflicts among the employees as this can also lead to
shackle the brand image as well as profitability of the company(Pfander, 2019).
P4. Explain the formation of various types of business forms.
For the initiation of any sort of business irrespective of its type the owner beforehand
must be aware of all the other forms of business which are prevailing in the market. The
determination of correct from of business is one of the major aspect which play a crucial role in
the success of the business as each form comprises of different aspects which can be both

positive as well as negative. Further some of the vary important forms of business which an
individual can opt for are as follows-
Sole Trader, which is also called as the single owner business or the sole proprietorship.
In this the owner of the said business are called by the name of proprietor and trader. Further
with respect to the management and control of the affairs of the business, they are solely taken
care of the by the owner themselves. Also, being the sole trader is considered as one of the most
simplest form of business at the option of the owners of the new emerging businesses in the
country. Moreover, for the incorporation of the said from there lies no such complex
requirements and by mere registration of the business in the house of companies the company is
said to be legally registered. Also as the said form of business at very initial stage is carried on a
very small level hence the capital for the same can be easily acquired in the simple means by the
owners themselves. The measure by which the trader can get the money are of the personal
savings of the trader, retirement funds, small bank loans, no interest borrowings from the
relatives, etc. Even though there stands no such compulsion for the registration of the form of
sole proprietorship but generally it is always advised to get it done for the safer side. Moreover,
as similar to that of the profits of the business, the owner alone is entitled to bear the liabilities
of the business on their own. Also in the form of sole trader there stands no such concept of
separate legal entity and hence trader is bound for the liabilities of the business also.
Partnership, it is a form where all the affairs of the partnership firm are governed in
accordance with the partnership deed which has to be registered. The firm is said to be
constituted when two or more individual joins together with an aim of earning profits out of the
desired business. In this all the partners of the firm are entitled to have the equal share of profits
as well as losses and similarly are also required to get involved in the affairs of the business.
Also the activities of the firm can be carried on by all the members on their own or any one of
them acting for all. Other than this the legal existence of the firm is said to be come into
existence with the measure of formation of partnership deed along with its registration.
Private limited company, this form of business enjoys the title of separate legal entity
which means that the both the company and its members with respect to any legal implication or
liabilities or any other actions, will be treated in the individual capacity. Therefore because of
this reason the liabilities which arise on the part of the company has to be settled by the accounts
of the company rather than by its members personal assets and belongings. Moreover, in this

form there lies a specific process which one need to abode by in order to get its company
registered. Some of the major stages of the process are the determination of an suitable title for
the company, outlining of memorandum of association and article of association, etc. which
further has to be put forward to the companies house in order to acquire the certificate of
incorporation(Künnecke, 2019).
P5. Discuss the management and funding of the various form of business
The way in which the tasks of the business are managed and funded varies with the
change of its form as each form comprises of certain different aspects attached to it. In this type
of single ownership business, one can acquire the capital by some simple means on their own
such as the no interest borrowings from the friends and relatives, their personal savings, retained
profits, etc. other than this the option of small bank loans and bond are also the way in which the
capital can be acquired. Whereas with respect to the management of the business the proprietor
alone is the one who carries all the activities of the of the business. The other being the
partnership business, mainly acquires their capital by the way of shares of each partners which
they contribute as a part of their share capital. Some of the ways in which the capital can be
generated are of the loans from the bank, retirement funds of the partners, personal savi9ngs of
each partner, bonds, etc. other than theses the option of crowdfunding is also an way in which the
partnership businesses can acquire the money. Moreover, the firm is equally managed by all the
partners in same manner and are also entitled to take part in the decisions of the company. The
other being the private limited company, the company is managed by its directors and
shareholders are said to be the owners of the company. Moreover the ways in which the capital
can be acquired in this form are by the issuance of shares to the shareholders and also by the
trading of goods and services in the market which results in the acquisition of the profits(Lui,
2020).
P6. Make recommendations of legal solutions that can be applied to solve a range of
disputes.
There lies various process by which the disputes can be resolved among the parties out of
which one is the process of Alternative Dispute Resolution. It is the process where the conflicts
are resolved in the way of outside court settlements and are carried out in the presence of third
party who acts in an impartial way towards both the parties of the dispute.
For the case 1-

Legal issue- whether the claim with respect to the wages among the employer and its workers is
justifiable?
Legal solution- the process of negotiation stands the suitable choice in accordance with the
given facts of the case.
Justification- the process where an informal discussion takes place between the concerned
parties related to the dispute in presence of an impartial third party who is addressed as the
negotiator is called negotiation. Here the negotiator aids the parties by knowing their part of
concerns and tries to find a mid way in order to come to an conclusion. For this the said process
stands suitable reason being the dispute of wages among the employer and employees can be
resolved well with the help of an informal discussion and can come to certain conclusions which
will be regarded as the final decision(Marx, Forin and Finkbeiner, 2020).
For Case 2-
Legal issue- are the charges asked by the Janet for the services along with the charges of phone
line are justifiable?
Legal solution- the process of mediation is the one which stands appropriate for the given facts.
Justification- by the process of mediation the concerned parties of the dispute gets involved in
the discussion in presence of the third party who is the mediator in order to resolve the prevailing
conflicts. For this case mediation is best option reason being the concern of extra charges is one
which requires the assistance of the mediator for the purpose of reaching to any solution(Ng,
2020).
For Case 3-
Legal issue- whether the application made by one of its creditors for the purpose of winding up
is maintainable or not?
Legal solution- for the given case study of balckhorse company the process of arbitration is the
one which stands most appropriate.
Justification- in the process of arbitration the conflicts of the parties are resolved under the
guidance of the arbitrator. As compared to other one, this process is more formal in nature and
because of this very reason for the application of wining up of the whole company it stands more
appropriate (O’Leary, 2021) .
There lies the difference in each form of dispute resolution with respect to their legality.
As decision of the arbitrator is of binding nature whereas in the case of negotiation and

mediation the decision does not stands binding on the parties. But in the other two cases the
discretion with respect to the imposition of its legality the discretion lies on the parties.
CONCLUSION
From the above report it can be concluded that mainly with respect to the activities of the
business the prevailing laws of the country plays very important role. Each laws in accordance to
their subject matter specifies certain duties and responsibilities which both the individual as well
as the company are required to abide by. Further with the change in the form of business their
way of management and funding also gets changed. The said report also suggests the appropriate
legal solutions depending on the scenarios of the case studies. It also draws a comparison among
the different form of dispute resolutions.

REFERENCES
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