Unit 7 Business Law


The aim of this unit is to enhance students’ understanding of how business law is applied to the running of a company. 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 legal solutions available to business owners and assess their suitability. Their experiences in this unit will help them better understand the areas of law in which they will want to specialise. They will be able 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 between employers and employees.

Learning outcomes

LO1 Explain the basic nature of the legal system

The legal system:

  • What constitutes a legal system?
  • The purpose of law, the evolution of law and different sources of law.
  • The differences between statutory law, common law and equity.
  • Company law and contract law.
  • The justice system:
  • The role of government in law-making and the justice system.
  • Organisation of the judiciary.
  • Jurisdictions and the structures of the court.

LO2 Illustrate the potential impact of the law on a business

Legislation and legal responsibilities:

  • The relationship between regulations, legislation and standards.
  • The implications and impacts of various legislation including environmental legislation, health and safety legislation and consumer legislation.
  • Legislation on data protection and confidentiality.
  • Rules and regulations relating to cyberspace security.
  • Employee legislation, equal opportunities and anti-discrimination.
  • Employment law and its impacts on business decisions and contracts:
  • How employment is defined.
  • Application of law in cases of maladministration.
  • The responsibilities of directors and delegation of tasks.
  • How employer and employee relationships interact with employment law.

LO3 Suggest appropriate legal solutions to business problems

Legal solutions for different types of business problems:

  • Consider the application of company law in forming companies, raising capital and correlation of pay and performance.
  • Termination of contracts, including employment.
  • Rescuing and liquidating companies.

LO4 Recommend appropriate legal solutions based upon alternative legal advice provided

Alternative legal advice:

  • Different legal frameworks and laws of different countries
  • The role of unions
  • Citizens advice and the role of Alternative Dispute Resolution (ADR).

Also Check Out: Business Strategy Game Reflection Report


ANDREWS, N. (2011) Contract Law. Cambridge: Cambridge University Press.
DIGNAM, A. and LOWRY, J. (2012) Company Law. Oxford: Oxford University Press.
FRENCH, D., MAYSON, S. and RYAN, C. (2012) Company Law. Oxford: Oxford University Press.
HONEYBALL, S. (2012) Employment Law. Oxford: Oxford University Press.
PARTINGTON, M. (2013) Introduction to the English Legal System. Oxford: Oxford University Press