Business Law

Introduction
Business law is influential in business operations as it endorses the rules about how a business
organisation should operate. Since the legislative systems of different countries vary from one
another, so does business law. The implementations of business law, therefore, are not the same
in every country or region. The business organisations must abide by the rules and regulations
endorsed by business law to avoid complexities (Abbott, Pendlebury and Wardman, 2013). A
business organisation can only sustain when its business activities cohere with the laws of a
particular legislative system. The legislative system of the UK is very strict, for instance. So, if a
company does not operate its business in the coherence of the business law of the UK, it may
encounter some upsetting consequences as well (Emerson, 2016). In this report, the impacts of
the business law of the UK on the operations and activities of a business organisation will be
discussed. Besides, various aspects of business law will be elucidated as well, as well as
recommendations for the provided disputes.
Task 1
LO1
“Explain different sources of law”
Introduction

The legal system of a country takes the responsibility to devise and endorse the laws. Besides
that, it operates to let the citizens know of the laws and ensure so that they abide by the rules and
regulations (Allison and Prentice, 2009). That is why a legal system must be well-structured. The
legal system of the UK is well-structured. It has devised its laws based on various sources as
well. The sources of the English laws are as follows.

Sources of Law:

As each legal source has its provenances, the English Law has engendered from its distinct
sources as well. There are four major provenances of English Law. These provenances are
elucidated below.

Statutory Law: This is considered as the fundamental sources of English law. The
parliamentarians propose a policy to endorse a law in this case. Following a thorough law-
making process, the policies are later accepted as a law. In that process, the applicability and
viability of the new law are tested. Once the law is made, it reaches the public court and judges
can apply these laws to make decisions about punishing an offender.

Delegated Legislation: When a political party of the country holds the authority to ordain a law,
as the majority supports them in voting and passing the new law, that is considered as the
delegated legislation (Abbott, Pendlebury and Wardman, 2013). This legislation is the aftermath
of various legislative sources. Besides, government provision is necessary for devising these
laws.

Common-Law: The origin of the English Law is centuries old. Throughout the history of
Britain, there had been many legal cases recorded. The origin of Common Laws is the records of
previous pertinent cases (Emerson, 2016). Typically, these laws need standardization since the
nature and maxims of British society have changed much. So, the legislative personnel go
through the records and standardize the common laws to implement those in contemporary
society. This process of standardization is ongoing.

EU Law: On the occasion of joining the EU, the legislative system of the UK had realised the
necessity of devising new laws to adapt to the policies of the EU. That is why they had ordained
some laws which go along with the EU policies. Thus, the EU laws became a significant
provenance of British law. Nevertheless, after Brexit, the legislative system of the UK is revising
the laws which had been originated from the EU laws.

Besides these, there are some other sources such as judicial precedent, equity law, etc. which are
thought to be noteworthy sources of the English Law.

“Explain the role of government in law-making and how statutory and common law
is applied in the justice courts.”
Role of the Government in Law-making

The government of a country takes care of its citizens. That is why the governmental body can be
considered as the guardian of a country. Apropos of that, the government takes part in devising
laws for its citizens. Since the government runs the parliament and the parliament is where new
laws are proposed and passed, the government is thought as a major catalyst in law-making. The
role of the government in the procedures of law-making is elucidated below.

Figure 1: Procedures of law-making (Abbott, Pendlebury and Wardman, 2013)

In the case of law-making, first, the governmental authority takes the initiative to create a law or
amend any previous laws. With this step, the process of law-making begins. At the onset of law-
making, someone proposes to create or amend a law in the House of Commons (GOV.UK,
2020). If the proposal seems sound to them, it moves forward to the House of Lords. Upon the
approval of the House of Lords, the proposal then goes through the next phases of law-making.
In those consecutive phases, the applicability and viability of the law are examined. If the
proposal sustains through the first reading and second reading, it goes through the committee
stage. Following that, a report stage is completed and the proposal proceeds to the third reading
stage. Afterwards, the proposal is once again sent to the House of Lords. If it approves, the new
bill is required to obtain royal assent from the Royalty. Upon receiving it, the proposal now can
be considered as a new law.

This process begins in the House of Commons which can be considered as the government of the
UK as the members of House of Commons are elected through the suffrage of citizens. Based on
that, it can be concluded that the government plays an important role in devising a law.

The application of Common Law: Common Laws are mainly prevalent in the civil sections of
the judicial courts. The characteristics of a society are not absolute. They change with time.
Besides, as it has been moving forward with innovations and discoveries, it has been always
transforming (Abbott, Pendlebury and Wardman, 2013). Common laws are made based on the
previous records of the legal cases. In this case, those records are used as examples for creating a
new law. Once the laws are created, the legal system of the UK implements those in the judicial
courts. However, if any new situation arises, the judges of judicial courts consider the merits and
demerits of applying the existing laws. Later, their decisions may become enclosed in the legal
system.

The application of Statutory Law: Often a handful of legislative personnel take the initiative to
create new laws, as per the demand of a particular situation (Allison and Prentice, 2009). Those
laws are considered as statutory laws. The main characteristics of a statutory law are that it is
created by the legislative personnel and governed by the administration. The statutory laws meet
the necessity of certain situations. “Contract Law”, “Company Law”, etc. are some examples of
statutory laws in the business context (GOV.UK, 2020).

Conclusion
A key characteristic of the English Law is that it is always changing along with the current of the
society, fulfilling the necessities of the time. That is why the English Law is very effective in its
pledge to protect the rights of the citizens in every aspect of life. The tableau is the same in the
business context as well.
Task 2
LO2
“Using specific examples illustrate how a company, employment and contract law
has a potential impact on business”
Introduction

Business law is implemented to curtail the insidious business activities of a business

organisation. These laws are created based on the ethical standards of a country. As these laws
are implemented, business organisations are obliged to follow the rules and regulations of these
established laws (Marshall and Oliver, 2012). Various functions of a company must conform to
these laws. Otherwise, the company might have to encounter legal consequences. The business
law of the UK encompasses various functions of a business organisation.

The impacts of the Company Law in business

The company law differs from one country to another. The legislative system of the UK has a
distinct Company Law which states the rules and regulations about how the business
organisations should operate their business. Typically, the company law is made to curtail the
harmful business activities of the company so that they cannot encroach their limitations and hurt
the interests of common people (Abbott, Pendlebury and Wardman, 2013). The Company Law of
the UK is constituted of many rules and regulations. From the formulation of a business
company to its business operations in the market, the company law is concerned about many
aspects of a business company. On the other hand, it is also concerned with the basic rights of the
citizens of the UK. Besides that, the company law outlines the labour-related policies of a
company, as well as other aspects as of the activities of a business organisation such as prices of
products and services. The company law, otherwise known as the “Company Law of 2006”, have
many other rules to ascertain that no discrimination takes place in a business organisation
regarding the gender, race, etc (GOV.UK, 2020). The law consists of 1300 sections that keep the
business policies of a business organisation in check.
 Figure 2: Key Concerns of Company Law (Emerson, 2016)

The constitution of company law has proved to be beneficial in limiting the harmful business
activities of business organisations. For instance, section 45(1) of the company law indicates that
whether a company will use its seal in business activities or not is utterly its concern (GOV.UK,
2020). On the other hand, section 7(2) of the law suggests the reasons for why the foundation of
a business organisation should not be accepted. So, if some people want to form a company,
having those reasons in mind, the legislative system bans the activities of the company. Besides,
section 58(1) endorse that there are some aspects which must be kept in mind when naming a
business organisation. For example, limited companies must bear ‘plc’ in their names (Allison
and Prentice, 2009). There are many other sections of the law which discusses different aspects
of the business activities of a company. Thus, the company law sets the outline for the operations
and activities of a business organisation. Since the business organisations must go by these rules,
their activities are in control of the administration. This way, the legal system of the UK ensures
that the business organisations are running their business in an orderly fashion and as ordained
by it.

The impacts of Employment Law in business

Most of the citizens of a country are occupied in the service to the business organisations. Most
of them are the employees of these employees. As a result, they have many contributions to the
economy of the UK. For this reason, the lives of these employees are a major concern for the
legal system of the UK. As for its consequence, the legal system of the country has a distinct law
concerning the welfare of the employees which is known as the “Employment Law” (Emerson,
2016). Employment Law of the UK encompasses various aspects which are pertinent for the
safety and security of the employees, working in the services of the business organisations. It
consists of many rules and regulations which creates the outline of the employer-employee
relationships, as well as other relevant aspects of the employees. For instance, this law suggests
that the companies should provide the employees with a minimum favourable condition at work.
Besides, this law also suggests the procedures of recruitment and how the authorities of the
companies should behave with their employees (Abbott, Pendlebury and Wardman, 2013).
Moreover, the law discusses the work hour, wage, termination order, etc. so that the employees
of a business company do not have to suffer for the business activities of a company. Moreover,
the employment law also discusses the agreement between two parties concerned, the employers
and the employees.

General

Safety
Issues Salary

Sick
Reward
Areas of Leave
Employment
Law

Position Holiday
s s

Discipli
nary Notice
Procedu Period
re

Figure 3: Key Concerns of Employment Law (Emerson, 2016)

By ordaining the employment law, the legal system ensures that the employment rights of the
employees are retained. Besides, this law also emphasises on the physical safety and mental
stability of the employees. In other words, the rules and regulations of the employment law
protect the interests of the employees. On the other hand, employment law is supposed to
ascertain that the employees are getting an appropriate living condition and the security measures
from the company if necessary (Emerson, 2016). This law has been established to improve the
quality of lives that the employees live. Also, the law ascertains that the employees work without
the worries about their safety. For example, the law has introduced a minimum remuneration for
the employees. This standard of remuneration often changes as well, as the legal system devise
this remuneration policy according to the economic condition of the country. “The Employment
Rights Act of 1996” acts to confirm the minimum remuneration. Besides, “The Pension Act of
1995” suggests that the business organisations must ascertain a pension policy for their
employees (Marshall and Oliver, 2012). Thus, the law protects employee rights and serves the
interests of the employees.

The impacts of Contract Law in business

When two parties are in a mutual agreement which has verbal or a corporeal existence in the
written form, it is considered as a contract. The relevant aspects of a business contract are
discussed in the Contract Law of the UK. The contract law includes many pertinent aspects such
as trade or retails or services, property, etc. Nevertheless, there must be a few conditions met for
a contract to be valid. These conditions are – ‘offer’, ‘acceptance of offer’, ‘mutuality’,
‘consideration’. ‘competency’ and ‘legal written document’ (GOV.UK, 2020). If the two parties
concerned miss out any of these, the contract will not be considered valid.

Formation Contents End

Figure 4: Making of a Contract (Allison and Prentice, 2009)

The contract law takes care of the disputes concerning business contracts. For example, section
6(1) of the “Unfair Contract Terms Act of 1977” ordain that any term of a business contract must
appear in the final contract as well. This rule is developed to eradicate the deceptions in business
contracts. On the other hand, section 6(2) suggests that the terms must be described with specific
details. Besides, the “Misrepresentation Act of 1967” ordains the difference between malintent
misrepresentation and mistaken misrepresentation (GOV.UK, 2020). Thus, the contract law
serves to resolve disputes between the two parties concerned in a business contract and also limit
the deceptive activities.

Conclusion

Considering the functions of these laws, it can be stated that, the business organisations cannot
do whatever they want. They need to conform to these rules and regulations for avoiding the
consequences (Emerson, 2016). As a result, many of their activities are curtailed; and they must
devise business policies within the space they are allowed.
Task 3
LO3
“Explore how different types of business organisations are legally formed”
Introduction

There are various types of business organisations in the UK. These types are mainly made based
on the formation of a business (Marson, 2020). There are various aspects to consider to get
approval for forming a business organisation. Those aspects include business purpose, funding
sources, management, etc. The types of business organisations are elucidated below.

Types of business organisation

As stated in the scenario, Mr Mc Jones was in a car dealership business previously in Australia.
The following classification will perhaps help him construe the types of business organisations in
the UK.

Sole Proprietorship: When an individual starts a business and he is the sole authority in it, that
is considered as the sole proprietorship business. Since this business takes quite less to form,
there are many sole proprietorship business organisations in the UK (Allison and Prentice, 2009).
The responsibilities of this type of business organisations are the owner’s own. The legal system
does not concern itself in this type of business organisations.

Partnerships: Upon the conjoining of two or more parties, when a business organisation is
formed, that is considered as a partnership business organisation. The formation of these
business organisations occurs based on the mutual agreement of the parties concerned (Abbott,
Pendlebury and Wardman, 2013). The nature of the agreement can be both verbal or written
although the written form of agreement is typically preferred. Each party has some
responsibilities in this type of business. However, the responsibilities are distributed among the
partners as per the agreement. Besides, when an owner has the responsibility of these companies,
the companies are known as limited companies. The legal system governs these companies with
the “Partnership Act of 1890”, “Limited Liability Act of 2000”, “Limited Partnership Act of
1907”, etc (GOV.UK, 2020).
Corporation: Corporation and partnership business organisations are not the same although
there are more than one party involved in the corporations as well. The corporations are typically
much bigger than the partnership business organisations. In this type of business organisations,
there must be a corporation that holds the responsibilities of the company (Marshall and Oliver,
2012). The details of the formation of a corporation are kept written in the ‘articles of
incorporation’. The secretary of the state goes through the details and has the right to approve or
disapprove.

Limited Liability Company: When a corporation and a partnership business organisation merge
to initiate a business venture, that is considered as a limited liability company (Allison and
Prentice, 2009). The partners of this type of company do not share many responsibilities. Its
owner has the most of the responsibilities. The “Companies Act of 2006” supervises the
formation of a limited liability company.

“Explain how business organisations are managed and funded”

The process of managing a business

As there are many types of business organisations, the management of business organisations
differs greatly from one to another. For instance, the management procedures of a corporation
business cannot be applied in the sole proprietorship business organisations. Similarly, the
management of partnership business organisations is different as well. Nevertheless, every
business organisation has similar functions such as finance, sales, marketing, etc. So, each
company needs to execute these functions (Marson, 2020). Typically, these functions are
managed separately. If each of these functions is managed effectively, the executions produce a
uniform organisation in the management. To run these operations precisely, the companies
typically have a distinct manager for each function. Sometimes, the managers have the authority
to make decisions on their own.

The corporations have a board of directors for managing the business organisation. But in the
sole proprietorship companies and partnership businesses, the board of directors is not necessary
(Marson, 2020). Regardless, business organisations mainly profit by utilising effective business
strategies and policies. But funding is necessary for initiating a business in the first place.

The processes of funding a business

Various ways of funding for a business organisation are elucidated below.

Angel investors: When an investor invests money in a company for acquiring partial ownership
of the company, the person is considered to be an angel investor.

Bank loans: Often banks offer loans to an individual or a party for initiating their business
(Marshall and Oliver, 2012). However, the loans include some conditions as well which must be
met.

Crowdfunding: When a company decides to raise fund from the public, that process of funding
is known as crowdfunding (Allison and Prentice, 2009). Typically, companies sell bonds or
shares to raise fund from the public.

Bootstrapping: Bootstrapping occurs when the owners or the shareholders of a company invests
their capital personally.

Family and friends: Sometimes, an individual raises fund from his friends and family to initiate
a business (Marson, 2020). This occurs mostly in the sole proprietorship and partnership
businesses.

The sole proprietorship business companies cannot use other means except raising fund from
family and friends (Marson, 2020). On the other hand, corporations and partnership business
companies can utilise other procedures.

Conclusion

The business organisations of the UK must consider managing their business effectively for
maximum gain. Besides, they need to consider the procedures and decide which seem best for
their business.
Task 4
LO4
“Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support”
Case 4.1

Warning Memo

The behaviour of Sarah does not conform to the company standard. In this case, sending her a
warning memo before making any decisions concerning her termination would be appropriate.
The HR officer of the department can step up to send her the warning memo which includes the
following.

 Decision
Sarah’s current behaviour has triggered unrest in her colleagues and co-workers. That is
why the company is going through certain difficulties. In this case, the HR officer must
address the problem and specify the decisions regarding Sarah’s behaviour.
 Nature of misconduct
The HR officer has to address the misconduct recently done by Sarah. In this case, he
should let Sarah know about her subversion from the standard and mention how long she
has been doing it. The HR officer can consider giving her a written account of her
misconducts and pertinent information.
 Improvement areas
The improvement area must be provided to Sarah to guide her out of the turmoil. In this
case, the HR officer can suggest Sarah get help from a psychiatrist.
 Consequence
In this stage, the HR officer should let her know the consequences of her misconduct if
she decides to carry on with those. He should let her know that if she chooses to continue,
the company may go as far as to terminate her job.
 Time
The HR officer must inform Sarah the date till which this warning memo is valid.
 Appeal rights
 Sarah will get her chance to defend her stance.
 Record
The HR officer must keep a record of this warning for future use.

Dismissal

Once the warning period is over, the HR must take necessary measures. At that point, he might
terminate Sarah’s job. As employment law suggests, if the termination is necessary, Sarah should
get a meeting with the company. The meeting will discuss this further based on Sarah’s appeal
against the memo sent to her. The records of her performance and further misconduct will be
discussed with the authority at the meeting. If the records show that Sarah did not improve, the
company has the right to terminate her designation.

Case 4.2

As per the ordainment of the contract law, a contract is valid when an ‘offer’ and ‘acceptance of
offer’ is made (Marshall and Oliver, 2012). The scenario suggests that the UK firm did not
respond to Peter’s mail. Since the trade was not official for this reason, the importer firm is in a
better position in this case and may get the opportunity to terminate the business contract.

Since Peter informed the UK firm that he would let it know about the price later, there was no
option for the firm but to wait. On the contrary, since the UK firm did not respond to Peter’s
mail, he should not have sent the supplies before confirmation.

At this point, the UK firm can propose an offer an adjustment offer to Peter since he has lost
about 10 per cent, and retain the treaty. So, the company must approach legally to compensate
for Peter’s loss. Otherwise, the local asset of the firm may get sieged by the Russian legal
system.

The contract between two parties is a forward contract type (Emerson, 2016). Which means that
the price of the sales must be made on the day of delivery. In this case, Peter is in an
advantageous position because they should have conformed to the pricing of June rather than
March. Therefore, the importer firm must pay Peter as per the pricings of June and resolve the
dispute.
Conclusion
The legal system of the UK is very influential in curtailing the activities of business companies.
Besides, business law is concerned about the interests of the employees, shareholders and the
customers of the UK. That is why these rules and regulations are implemented to resolve the
disputes, as well as establishing benefits for the citizens of the UK.
Reference