Business Law: Understanding the Legal System and its Impact on Business Operations

Explain main sources of law used in the UK legal system.

The aim of this unit is to enhance students’ understanding of how business law is applied to the running of a business organisation. Students will gain knowledge of business law and examine the impact of the law on business operations and decision making.

Throughout the unit, students will identify the legal solutions available to business owners and assess their suitability. The experience that students gain in this unit will help them to better understand the different areas of law that apply.

The unit will enable students to illustrate the impact of the law on normal business operations and when registering a company and inviting shareholders to invest in it. They will gain an understanding of the law in relation to market abuse and director responsibilities. Students will be able to recognise the application of employment law while gaining a practical understanding of the skills and experiences undertaken by those practising in a business law context.

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The law affects every aspect of our lives; it governs our conduct from the cradle to the grave and its in?uence even extends from before our birth to after our death. We live in a society which has developed a complex body of rules to control the activities of its members.

There are laws which govern working conditions (e.g. by laying down minimum standards of health and safety), laws which regulate leisure pursuits (e.g. by banning alcohol on coaches and trains travelling to football matches), and laws which control personal relationships (e.g. by prohibiting marriage between close relatives).

So, what is ‘law’ and how is it different from other kinds of rules? The law is a set of rules, enforceable by the courts, which regulate the government of the state and govern the relationship between the state and its citizens and between one citizen and another. As individuals we encounter many ‘rules’.

The rules of a particular sport, such as the off-side rule in football, or the rules of a club, are designed to bring order to a particular activity. Other kinds of rule may really be social conventions, such as not speaking ill of the dead. In this case, the ‘rule’ is merely a re?ection of what a community regards to be appropriate behaviour. In neither situation would we expect the rule to have the force of law and to be enforced by the courts.

Explain the role of government in law making and how statutory and common laws are applied in the justice courts. Furthermore, you should evaluate the effectiveness of the legal system in terms of recent reforms and developments.

 It is important to remember that English law refers to the law as it applies to England and Wales. Scotland and Northern Ireland have their own distinct legal systems.

LO1 Explain the nature of the legal system

LO2 Illustrate the potential impact of the law on a business

You are working as a paralegal in a law firm, Morgan Solicitors, which advises new start- up companies on the legal systems and key legislation that they are required to know and apply. You have been asked to write a report on the nature of law for new companies to support the business advice and guidance provided.

(1)Explain main sources of law used in the UK legal system.

(2)Explain the role of government in law making and how statutory and common laws are applied in the justice courts. Furthermore, you should evaluate the effectiveness of the legal system in terms of recent reforms and developments.

(3) Using specific examples, illustrate how company, employment and contract law has a potential impact upon business. In additional, you may differentiate between

legislation, regulations and standards to analyse potential impacts upon business. You are required to provide a coherent and critical evaluation of the legal system and law, with evidence drawn from a range of different relevant examples to support judgements.

LO3 Examine the formation of different types of business organisations

Henry is an aspiring entrepreneur and would like your advice on how different types of organisations are legally formed, managed and funded. He is attending the Small Business Expo 2021 conference being held in London in which you as a Legal Assistant, have been invited to attend as a guest speaker making a presentation on how different types of organisations are legally formed, providing local advice and guidance to businesses.

(4)Explore how different types of business organisations are legally formed. Furthermore, you are required to assess the advantages and disadvantages of the formation of different types of business organisations.

(5)Explain how business organisations are managed and funded. In addition, analyse the advantages and disadvantages of the formation of different types of business organisations. In addition, critically review and evaluate types of business organisations.

LO4 Recommend appropriate legal solutions to resolve areas of dispute

Scenario - Commercial Disputes Solicitors Invoice

The Problem – Commercial disputes need to be resolved as quickly as possible, the claimant (firm of Solicitors) claimed for £19,694.96 owed by the defendant for failure to pay an outstanding invoice with respect to legal services provided.

The defendant contended that the bill was incorrect and that he was willing to pay a percentage of the bill which he felt was valid and that the remainder should be waived as he was given a verbal assurance by the fee earner that costs would be kept to a minimum, equally what he was being billed for, a large amount he felt he could have got done for free through his own office.

As a newly appointed Legal Assistant in J&J solicitors.  In a form of an essay, you are required to (6) Recommend legal solutions for resolving a range of disputes using examples to demonstrate how a party might obtain legal advice and support.

Additionally, you are required to compare and contrast different sources of legal advice and support for dispute resolution. Evaluate the effectiveness of legal solutions, legal advice and support for dispute resolution.