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Role Of Government In Law Making

University: University of Suffolk London

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 18 / Words 4582
  • Paper Type: Assignment
  • Course Code: LAW3120
  • Downloads: 996
Question :

this assessment will provide further questions mentioned thereunder:

  1. Give an appropriate nature of legal system?
  2. Effectively and produce potential impact of law on the organisation.
  3. What is the impact made through legal system on business organisations?
  4. Recommend appropriate legal solutions which manages resolution of disputes
Answer :
Organization Selected : Champion limited


Business law is governing business through dealing with different laws such as private law and public law (Bian, and Veloutsou, 2017). The report will lay emphasis on the meaning of parliament is sovereign and the various sources of law in UK. Also, the difference between common law and civil law will also be disclosed in this report. This report will also lay cover difference about representative democracy and direct democracy . Report will also highlight about the role of government in law making along with application of statutory law and common law applied in court's justice. The report will also explain about the effectiveness of legal system in the term of reforms and development. The potential impact of contract law, employment law and company law will be discussed in this report along with the difference between legislation , regulations and standards to gain the potential impact on business. The report also discloses about different types of business organization which are formed legally. Also, how this organization are managed and funded will be covered in this report . Some recommendations for legal solutions for resolution of disputes will be discussed in this report.

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A. The meaning of Parliament is sovereign and the various sources of UK laws.

‘Parliament is sovereign' is a concept in constitutional law of some democracies of parliamentary. This holds about a legislative body which has absolute sovereign as well as supreme all institution of government (Frame, and Moss, 2015). It includes judicial or executive bodies. It is a principle which is applied all around the world . It focuses on the parliament is superior among the judicial and executive government branches. The term sovereignty is a full power and right of a body which is governing over itself. Without any other interference from outside body or sources (Akdeniz, Taylor, and Walker, 2018). Therefore, for the UK constitution it is cornerstone and superior authority.

Legal system is an approach which resolves dispute , disagreement, etc. The norms of people under society is also provided under this system (WIllIams, and Walters, 2018) . The legal system safeguards from chaos and conflicts among communities as well as social groups.

The various sources of UK laws are

  • Common law - This law is concerned with decisions executed by appellate court which is a major source of law (Ekara Helfaya, and Moussa, 2017). The legal system is adopted under Wales & England. The law is formed is based on principles that is established under apes and appellate court (Shiwakoti, Iqbal, and Funnell , 2018). Thus, the source of law is provided through highest authority and judicial for the representatives of lower divisional is crucial element in formulation of UK laws.
  • Act of parliament - The parliament act is focusing on making modification or changes in the existing law or making of new law. The bill under act of parliament is approved by house of lords, royal monarch, house of commons, etc . The bill in process of becoming law need to go through all these stages (Conley, and Page, 2017). After approval of all the authorities the bill is converted into law. Thus, it is important for UK laws to proceed this stage for every law.
  • The legislation - This plays a crucial role in formation of law as the law which is formed under legislature is referred to as legislation. The legislative law is followed all over the UK. Although UK didn't have any written constitution but legislation has the power to infringe existing law or new law (Akdeniz, Taylor , and Walker, 2018).
  • European law - The European law is operated in European union state members. The UK law is operated by European members. This law is taken into consideration during formation of UK laws (Ekara Helfaya , and Moussa , 2017). Along with it, European law is a source of law in UK as European union is needed to be implemented in formation of law.

Difference between common law and civil law

The legal system of common law is characterized through case law in which law is developed by judges by executing decisions in courts whereas in civil law's legal system is originated in Europe and the core principle is codified under referable system (Fulton, and Pringle, 2017). The common law is followed in US , England, Canada, Australia and England whereas Civil law is followed in China , Germany, South American and African nation , Spain and Japan.

Difference between representative democracy and direct democracy

A direct democracy is concerned with people are treated as a part of decision making whereas in representative democracy people have right to elect their representatives by different election styles (Corrigan, and Sayer, 2018). Another difference is that direct democracy is suitable for small communities whereas for the large communities the representative democracy is most suitable.

B. The government's role in law making process and common & statutory law which are applied in courts justice.

  • Identification of need – The ministries analyse whole legal system for need identification. They evaluate the country's condition in according to their requirements. These ministries properly analyses all the conditions of country like misconduct, crime rates, that access them to analyse the basis of making of the law.
  • Formation of bill – Then the ministries begin their role which begins from need identification till implementation of law. The steps in need identification is further executed under formation of bill. The government ministries formulate bills in draft and begin the process of enforcement of law.
  • First reading – The bill is a draft that is made according to instruction of government. The bill title and components in which it is comprises is read among house of commons (De Fraja, Facchini, and Gathergood, 2017). Unless nothing is done in this stage except reading.
  • Second reading –This stage consist of bill which is discussed by different members of parliament and an activity of debate is done before preceding of bill to further stage.
  • Committee stage – On this stage, the bill is directly refer to house of commons committee for further and in detail examination (Yu, Cao, and Tan, 2019). The committee suggests about amendments needs they observed in the bill.
  • Report stage – The report stage is concerned with preparation of a debate which is conducted by a committee for the concern face by these committee members.
  • Proceedings in the House of Lords - At this stage, the bill is then sent to house of lords for the further process (Shiwakoti, Iqbal , and Funnell, 2018) . Also, the amendments are made by the house of commons is analysed under house of lords.
  • Royal Assent – This is the final stage in which a bill become law by the approval of royal assent in which the monarch holds the final authority for the approval of act.

The common law is formulated by courts of higher divisional. Therefore, it is only applicable to lower divisional (De Fraja, Facchini, and Gathergood, 2017). While statutory law sets by legislature and is used to define laws which is in writing. The statutory law is applicable on whole UK.

Effectiveness of legal system in terms of reforms and development

Since 1965, the law of England and Wales are reviewed through review commission. This body of commission is independent for examination of fairness and effectiveness of law (Conley, and Page, 2017 ). The law commission act, 2009 aims for the improvement in ratio by implementation of the recommendation (Yekini, Adelopo, and Adegbite, 2017). Since 2016 , a reform programme is launched in 2016. On the other hand, as the legal system is in not in written form therefore it is not that much reliable and this is the biggest disadvantage of this system.

C. Company, employment and contract act has potential impact on business along with difference between legislation, regulations and standards to analyse this potential impact.

Impact of employment law, contract law and company law on business.

Employment law - This law is concerned with employees and the company they are working in it. The employment law provides benefit to employees as well as employer (Bian, and Veloutsou, 2017). The rights of employees are stated in this law which enables them to take stand.

The employment law is consisted of different set of laws under which Employment act, 2002, minimum wages act, 1998, anti discrimination act, 1991, etc . are there (Yekini, Adelopo, and Adegbite, 2017). This law not only regulates law regarding employees but also for the company so that they stay in line with the law (Frame, and Moss, 2015). The employment law impacts directly on businesses to regulate them and business entity which need to follow law under smooth functioning.

Contract law - It is an agreement in which more than two parties binds together to perform a contract. The contract law governs while making contract and also regulate all business transaction within a particular contract. All the business entity enters in contract with other business need to follow this law (WIllIams, and Walters, 2018) . The purchase and sales are done in accordance with this law. The companies to follow this law is to overcome financial uncertainty. It is the obligation of every business to follow this law while executing any business contract. Sue and other lawful action can only be executed when businesses follow this law of contract properly (Fulton, and Pringle, 2017).

Company law – The company law is am essential element governed under Companies act, 2006. The company law enables very lengthy procedure for a company while executing merger and acquisition with any other company. The company need to go through special resolution which foster a lengthy procedure for them. Also, the board of directors of companies who are acquiring go through very lengthy process by signing different documents under company law (De Fraja, Facchini , and Gathergood, 2017). The process of documentation requires time to get approval from legal authorities. Along with it, cost of advertisement also rises while performing merger and acquisition with other company.

The company law lays a time consuming procedure which need to follow by the companies. To perform aligning functions in the company helps business to prevent hinder from all the legal actions.

Difference between legislation, regulation and standards

The legislation is a set of rules which is formulated by government of state, city or country. Rules act as a body of legislature and these are signed by ranked officials like president or governor (Akdeniz, Taylor, and Walker, 2018). Every individual being a citizen of a country need to follow these legislations which are implement by the government in order to be in aligning of the law. The laws which are in relation with business such as company law , contract law, employment law, health and safety law, etc . are followed by all companies to avoid all the legal hazards.

Regulations are far different from legislation because they law enforcement instruction for the laws and the procedure of carrying them . These are also called administrative rules or laws because the law force are carried by regulations and it is mandatory to apply these regulation on laws (Ekara Helfaya, and Moussa, 2017). It is essential for the businesses to follow regulation along with the legislation as these offer proper guidance to an individual for smooth business operations.

The standards are different from legislation and regulations. These lay guidelines and requirement that is provided for system, services and products so that things do work regarding it. The need of standard is consistent as this ensure efficiency, quality as well as safety. Standards formulated in reference documents form provides detailed criteria and also lay guidelines for the involvement of individuals and businesses (Yu, Cao, and Tan, 2019). The business activities are affected a lot by standards like by following these standards and to meet the need of business, they ensure products quality in accordance with stated standards . The company can not go beyond these set limits which is stated in standards.

TASK 2 (LO3)

In case of formation and expansion of the business into different types it includes the following ways in which the three friends can establish their business (Business Law and Regulation, 2019). There are various types of business such as

  • Sole proprietorship: In these types of business, the sole proprietorship is run by the individual person or also known as sole traders which carry business activities by its own terms and condition and also there are less chances of risk arises in that business. But the procedure to establish such business is same as they are bound to follow certain norms regarding the company trade mark (Ahammad and, 2015). In the case of being the owner of the sole trader business, the owner is personally liable for all the profits which they gain in any transaction relating to company and also losses are to be incurred by that person if they not take the accurate decision relating to benefits to the company. Thus, to establish the business as sole proprietorship, person needs to be publish in newspaper regarding their establishment of business as incorporated company and also take permission to carry their activities in larger scale.
  • Partnership: In these types of business it includes two or more person to carry the business activities and termed it as partnership firm. There are certain rules which are to be imposed in the partnership business and every partner if they want to enter into the partnership business had to signed their partnership agreement. Thus, this agreement is valid till there is existence of all the partners (Hedley, 2017). In case of resultant in death of any partner, the partnership deeds are not valid and it is to be dissolved. There are certain terms and condition which every partner are bound to follow and the terms are regarding to sharing the profits and losses in the company. Partner had to equally share the profits and also the losses are to be shared equally so that each partner are liable to enjoy the profits and losses in the company. The major disadvantages while adapting the partnership firm is that the profits earned by single partner dedication towards work enjoys the benefits by all other partner and also the advantages is that it reduces the chances of risk which is overburdened by single person (Jones and Sufrin, 2016). As all the partner are bound to follow their partnership deep and also they are not liable to neglect any of the terms which is mentioned in the partnership deed.
  • Limited Liability company: This company is related to the corporate structure and in such cases the owners are liable to pay the debts or liabilities to the company which is related to personally uses. As the company can be limited by share or limited by guarantee and they are liable to wok under the corporate norms. In this company, the owners are generally the members of the company and in such cases if there is death of any members the company will not be dissolved (Press.Lee, 2017). They continue to carry their activities to bring more profits in their business. By choosing this business, it results in getting the high reputation in the market and also there are more chances of facing risks in the business. In this business article of association and memorandum of association are to be prepared by company and they had to follow the norms while carrying their activities internally and externally.

In case of managing and funding various types of business, it includes the following ways to be varied from this point such as the matters related to

  • Partnership firm: In case of partnership firms they are managed by all the partner in the company and the funding is raised through partner who entered into the partnership agreement and they are bound to share the profits and losses equally. The major advantages of partnership agreement is that the partner can easily borrow loan from any bank or investor only when they are stable in the market and there reputation and goodwill reflect the smooth working if the company (Lowe and, 2016). In case of death of any partner the partnership is to be dissolved and in such cases the profits and losses are to be shared equally mentioned in the partnership deed.
  • Limited liability company: In this case of company, they are to be managed by the members itself and they are not liable to face any errors which arise in resultant of debts and any case of liabilities are to be occurred. Thus, in case of funding they are to be funded by issuing shares to the public and through such share they gain profits by raising money (Bayern and, 2017). They can also take loan from banks and investors to invests money in the company. But to invests money, it is the duty of the company to represent company background strong and reputed in the market and also if they are financially strong can invent money in some project to get more profits by having success in that projects.

The major difference between the partnership firm and limited liability company is related to liability of the debts. In case of partnership firm, the partner are personally liable for such debts and any such losses which they had to face in near future. In case of limited liability company, the owners are not personally liable to pay such debts. In case of registration of partnership firm is not so compulsory, as it can be incorporated by announcing the name of the company. In case of LLC the registration is compulsory as they can issue share in the market to invite public to invest money in the company (Bouch and, 2018). If the 3 friends choose to enter into the partnership firm they are not bound to user such word such as limited or private limited to the company but in case of having the LLC they can put such words after their company name. The major difference which arises in case of partnership firm is that the members are unlimited and it is affected by death of any partner. In case of LLC, the company can be limited or unlimited through its members or creditors and the company is not affected by death if any member. It will continue survive to carry its activities for further use.

Thus, by extending their business into large scale Jane, Penny and Marie choose the Limited liability company to expand their business and earn profits to increase their goodwill and reputation in the market. The major advantages is that the business can easily be managed and funded by public and if they take loan from any bank or investors it can be easily approved by viewing their strong reputation in the market (Westermann-Behaylo, 2018). Thus choosing limited liability company is the best way to enhance their business and start trading their business into large scale. If you are going for Higher National Diploma, then our HND Assignment Help services is the best option for you to opt.

TASK 3 (LO4)


  • Issue:This case is related to London based company champion Ltd and they financed in such business to move their business sites in North London for the development if stadium to organise the premier league club. After moving their business, they face many losses by seeing the least interest of the customer in their expansion. The company has also defaulted numerous of times on paying the payment to banks. After viewing such defaulters, creditor filed petition regarding the company to be wound up by the courts.
  • Rules: In case of winding up of company, there are two types of winding up, winding up by the order of the court it means compulsory winding up and voluntary winding up by the order of member and creditors (Yeoh, 2016). Winding up from is such matter in which the company is not able to pay its money to creditors and debtors and in such case they order court to wound up company in grounds of not carry their business activities and not dispose their money to pay its debts.
  • Application: Thus wound up by the order of the court resultant in case of Champion Ltd is that by shifting the business into new sites they are not getting more profits as resultant of lack of interests of customers in their stadium (Willett and Koutsias, 2016). Thus, they cannot dispose such payment to creditors in such case creditors order court to wound up such business and appoints a liquidator to dispose their assets by paying their amount due in such business.
  • Conclusion: From the above study it is to be concluded that as company is not applied for such failure in context of expanding their business into large scale, and after expanding they face the financial crisis in relation to making payment to creditors. In such case court order company to wound up their business and also from such sale amount they make payment to creditors to secure their interest in that business for longer term.


  • Issue: In this case Mr Anderson was the CFO in the Amber Ltd and carry the confidential detail for the company. Amber company had certain rules and regulation regarding the resignation period CFO that is any person wants to resign from the job they had to serve the 12 months notice period of the company and cannot work with any other company while he serves his duty to the company. Mr Anderson by getting the better opportunity from Beta Ltd. company join the post of CEO and just give the formal resignation in writing regarding not comfortable with the work and also the work is not moving according to their condition. Thus, Amber Ltd. company wants to file a suit against Mr Anderson in context of committing breach to their norms and also not fulfilling their duty which they committed for 12 months to be fulfilled.
  • Rules: Under the companies Act, 2006, contract laws are to be performed which secure the rights of the parties and also employees are bound to follow certain norms. Under contract law various rulers and regulations are imposed regarding employees which they had to follow without any negligence (Ahammad and, 2015). In case of companies Act, rules are implemented so they every parties can easily expand their business into large scale.
  • Application: From the rules made under contract law it is thus related to case study of Amber Ltd. In this case Mr Anderson committed breach in company as it is clearly mentioned in that contract law that they had to fulfil the time period at the time of resigning from the job (Hedley, 2017). Amber Ltd, company can claim for breach to contract against Mr. Anderson as they offering the higher post from Beta Ltd he switched his interests in some other company. Thus, contract law is valid if both the parties agree for certain norms which is made between the parties and in such case Mr. Anderson is agreed with that rules. Thus, he is liable to be punished under breach of contract.
  • Conclusion: From the above study it is to be concluded that to resolve such problem which resultant in breach of contract, Mr Anderson had to fulfil certain norms as he holds the most confidential information of the company and also agree with the terms which is imposed by company regarding the resignation period.

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From the above study it is to be concluded that business law is usually implemented for companies to work according to the norms imposed by the government and are bound to follow the rules and regulation regarding to secure the rights of employees and citizen of country. In case of English legal system it determines the various sources of law which helps parliament to verify the new changes and then amend such existing laws or bring new laws in the country. Under the companies Act, 2006 they implement various laws under the employment law, contract law and bring various changes which results in providing major benefit to the companies. It is also concluded from the above report that there are various types of business which the three friends can choose out of any. Thus, the chosen business such as limited liability company are to be managed and funded by member and public and the various factor regarding to formation and its nature are also to be discussed in this report. Thus, business law bring various challenges and also its method to resolve problems between the parties are also to be initiated in th

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