Legal Rules and Solutions for Business

The assignment discusses how small companies can overcome business obstacles by following legal beliefs and using Alternative Dispute Resolution (ADR) methods. It also emphasizes the role of legitimate bodies in preventing misuses by large companies and creating a favorable environment for businesses to thrive.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Sources of law........................................................................................................................1
P2 Role of governing bodies in law making...............................................................................2
TASK 2............................................................................................................................................3
P3 Influence of employment and contract law on Sunrise Retail...............................................3
TASK 3............................................................................................................................................6
P4 Appropriate legal solutions to sunset Ltd. Regarding termination of contract of employees6
P5 Justification for the use of appropriate legal solutions..........................................................7
TASK 4............................................................................................................................................7
P6 Key challenges and legal solutions for expansion process based on country legal system...7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Legitimate bodies are engaging in framing number of laws, norms , beliefs, rules and
regulations which is related with corporate world in order to protect buyer and seller from getting
exploited. Sunrise is a sole trader organization who is trying to expanding their business by
transferring sole proprietorship to limited company (Mann and Roberts, 2011). Therefore,
assignment is highlighting the major norms and rules which is followed by organization while
converting their business entity in perfect manner. Although, there are major difference between
norms of single entrepreneurship and limited due to the involvement of various elements such as;
investors, sharing of profits, extra funds and so on. Apart from this, distinct sources of laws are
determined due to the occurrence of several incidents and prominent role of governing bodies are
going to discussed in the report. Some of the legitimate solutions which is designed by legal
bodies for resolving organizational issues are also outlined in this project.
TASK 1
P1 Sources of law
The basic nature of the legal system is to provide a systematic, orderly and predictable
mechanisms that can helpful in the resolving the disagreement.
Implementation of necessary laws are mandatory for overall development of nation as
well as economy because it aids in minimizing the fraudulent acts which are affecting growth of
country in various ways. However, number of incidents are occurring at regular basis such as;
women's harassment, rape, wrongful conducts, misinterpretation, discrimination henceforth. It
means, responsibility of legal bodies are expanding and enforced to come up with various
appropriate norms in order to control sparking issues. English legal system are focussing on
every incidents and taking initiatives as per situational demand for maintaining the peaceful
environment at societal place (Harner and Rhee, 2014) . In fact, European laws are classified into
two different form such as; civil law and criminal law. Both the terms are distinct from each
other in various manner but motive is somehow same that is; to control wrongful activities by
taking necessary initiatives. Hence, some of the major sources of laws are discussed as follows:-
 Case law:- In some cases situations are become more worsen and lawyers are facing
major difficulty in making final decision due to the complicated situations. Therefore,
government are getting enforced to amend some emergency acts in order to control the
1

difficult circumstances. In fact, number of incidents was incurred at marketplace due to
which they need to make changes as per situational requirements.
 Judges:- Some of the major acts are enforced by judges of tribunal in order to take
correct initiatives for resolving certain cases. Sometime they get involved in few complex
decision in which single judgement can affect the several other members. For controlling
specific problem head of court is making urgent or instant decision and change the acts
little bit.
 Articles of association:- In this element all the necessary rights and authorities are
mentioning by government bodies for imposing it on overall society for developing the
nation. Their main motive is to create a nation free from discriminatory activities by
offering equal development opportunities to entire society. Apart from this, major norms
are mentioned in this articles for assisting other members to consider these elements
while making decision (Bagley, 2010).
 Treaty:- If there is occurrence of any more serious conditions due to which legal bodies
get enforced to set certain terms and conditions in order to control particular
circumstances. For example; when there was emergence of Hiroshima and Nagasaki case
some of the major legal norms was established by government bodies that was applicable
on nations involving in conflicts. Thus, these types of rules and regulations are knows as
treaty which furthermore consider as sources of laws for entire society.
There are some laws which are followed by every organisation such as the Equality Law that
states that an organization should not discriminate the employees as they belongs to diverse
background. The health and safety act is also needed to be followed by the organization for the
health and safety of employees.
P2 Role of governing bodies in law making
Governing bodies are seen as most indispensable aspect for overall corporate world
because they are involved in designing number of laws and acts which is beneficial for innocent
people. Their main objective is to promote economy by encouraging small and medium size
business towards establishment of new business. This is only possible if new entrepreneur feel
safe and easily run their entity by operating across distinct marketplace. Therefore, government
is playing crucial role in framing best legal norms and beliefs for assisting business world
towards ethical path (Manafy and Gautschi, 2011). Amendment of specific act is not an easy
2

task because it will influence the overall nation in various manner such as; control fraudulent
activities by imposing distinct norms and so on. Initially, particular agenda is coming out which
become proposal in order to pass it across the general assembly for converting it into bills. Three
types of bills are identified in which purposes are written is totally distinguish from each other
such as; private member, public and private. After that selected bill is going through several
readings for acquiring consent from several other significant members. Major readings which is
conducted by governing bodies for thoroughgoing the bill is discussed as follows:-
 First reading:- First or foremost task of this entire process is to read the whole bill for
initial time in front of house of commons. It is knowns as initiation and notification phase
where entire matter is presented for the first time.
 Second reading:- Furthermore, an effective debate process is going in between various
members of parliament for understanding each or every aspects in better manner. It
means, debate process is going on in order to acquire consent of parliamentary members
on particular bill.
 Committee stage:- Entire agenda and phases are going to scrutinize and assess by
specialist person for identifying any mistakes so that they can take further initiatives.
Basically, it helps in controlling losses (Nichols, 2012) .
 Report stage:- In this phase reports are designed as per the viewpoints of parliamentary
members for collecting all the information in single document.
 Third readings:- In this stage bill is going to represent in house of commons for
analysing entire data and information for the second time in order to analyse each or
every aspect in more detail way.
 Last stage:- At the end of this process members are transferring the entire report to the
royal assent for acquiring consent of monarch for accomplishing enactment process.
After the approval of house of lords bill is amend into act at societal place for fulfilling
the agenda by considering necessary terms and conditions.
Throughout the readings it is assessed that government is playing crucial role in enacting
specific act at market by considering relevant facts or figures. Their main motive is to control
possibilities of any mistake.
As stated above both the common and statutory law is the path in which the laws are
established. But the common laws are generated by the precedent whereas the statutory law is
3

created by the government. This is designed for the citizens of the country so that they can be
safe and it also ensures the routine functions of their life. If in case there was a case in the court
in which the court and the judges cannot decide then the statutory law will be decided the
punishment for the criminal activities.
TASK 2
P3 Influence of employment and contract law on Sunrise Retail
Laws are applicable on every company either small or large but distinguish in few terms
and conditions because of changes in numerous elements (DiMatteo, 2010) . According to given
case study, Sunrise Ltd. Is sole trader and its managing director is wanted to convert their
business from single business to private limited company. As a result, number of things get
changed due to fluctuation in several other elements such as; methods of running corporation,
incorporation process, acts, legal norms, rules and regulations. Thus, major difference is
identified between sole trader and private limited company that is discussed as follows:-
Sole proprietorships Private limited company
 Shares and liabilities are not shared
with any other member of an
organization.
 Entrepreneur is liable for all the losses,
business activities and profits.
 Having a short term vision.
 Trying to gain maximum profits by
satisfying customers needs or
requirements in given time frame.
 Minimum involvement of legal bodies
and short process of registering
company (Frank and Bix, 2017) .
 Staff members, investors, owner and all
the other individuals are equally liable
for losses and liabilities.
 They are having very long term vision
and mission.
 Motive is to establish their positive
image at marketplace by gaining
consumer trust or loyalty.
 Proper engagement of legal norms,
proper procedure of establishing private
limited organization.
Throughout the study it has been assessed that two of the business are distinguish from
each other in various aspects as well as incorporation method is also designed by legitimate
bodies in some other ways. For example; incorporation fees and amount is higher than other type
4

of business. Some of the necessary elements which must required while establishing private
company such as;
 an effective name of an organization.
 Proper address of an enterprise.
 At least one director needs to present.
 Proper description of organizational shares is also indispensable; it means at least one
shareholder is necessary.
 Need to identify secret code for understanding the working motive of an organization.
 Proper detail of specific person whomsoever is engaged with organization such as; detail
of that person who is having around 25% shares or more than that as well as authority of
voting.
 Written agreement of shareholders in which it is professionally mentioned that company
must create. Therefore, that agreement is knows as “memorandum and articles of
association. ”
Thus, Sunrise Ltd. Needs to collect all the above mentioned data or information for
establishing their business as private limited company in order to minimize the possibilities of
mistakes (Foss and Knudsen, 2013). On the other hand, it has been assessed that company needs
to hire around 30 employees for their new business so that they accomplish their business
activities in much appropriate manner. Beside this, company requires to consider necessary laws
of employment acts while recruiting eligible candidate for their selected firm so that they can
promote employee retention at workplace. Some of the major laws which is indispensable for
considering while appointing suitable person for newly established business is discussed as
follows:-
 Health and safety acts:- According to this act company needs to offer secure and safe
environment to their staff members while hiring them which must be written in
document. Every member wanted to work in a secure surrounding in order to get free
from accidental situations.
 Equal remuneration acts:- As per this component company needs to provide equal
opportunity to get succeeded by performing their best. In fact, employees dream to gain
maximum benefits by accomplishing their assigned job in best manner. That is only
possible if they get opportunity to enhance themselves.
5

 Minimum wages act:- Sunrise Ltd. Needs to offer minimum wages to their employees
while recruiting them so that they can fulfils their basic needs or demands (Guinnane and
Martínez-Rodríguez, 2010) .
Hence, it has assessed that all the above acts needs to be considered by company while
recruiting them employees as well as trying to offer best possible opportunities to their staff
members. It means, an association requires to focus on certain things while doing selecting
process at workplace. Instead of this necessary terms and conditions requisite to consider while
involving in contract with employees for reducing possibilities of any confusions and conflicts.
Along with this trying to convince the new candidates with their specific terms while hiring them
in order to make positive tuning.
TASK 3
P4 Appropriate legal solutions to sunset Ltd. Regarding termination of contract of employees
According to given case study Sunset Ltd. Is encountering a financial lose in their
business which is situated in Whitechapel due to that managing director of an organization is
trying to wind up the business for controlling their loss. In fact, wanted to completely dissolve
the company branch of whitechapel so that they can safeguard their money. Hence, this, process
is started by terminating contracts with various shareholders such as; employees, other
shareholders like investors and so on. It means, company needs to follow some specific laws of
legal bodies to resolve their problem faced by them while winding the specific branch. However,
there are number of ways through which a person get dismiss due and terminate such as; because
of theft, expiry of any agreements and so on. Basically, selected firm needs to dissolve their
company because they are facing a major loss because company get failed in accomplishing each
or every activities. Thus, an appropriate process of redundancy is followed by company as per
legal terms and conditions (Johnson, 2013) . An effective steps and procedure is followed by an
association for accomplishing the winding process is suitable manner. Process of redundancy is
discussed as follows:-
Employer and supervisor of an association requires to follow fair procedure of they are
working from at least 2 years till the end. Initially, an official meeting is going to held for
discussing with head about this process in order to understand each or every aspects in better
manner. After that suitable initiatives are taking place-
6

 Need to analyse the process of employer:- In this phase an individuals needs to identify
the entire contract and handbooks of staff in order to regulate nay type of confusion
which might create problem for them while following this process. Basically, procedure
requires to consist of few major terms and conditions such as; methods of selecting
member for redundancy, how long judgement will going on, type of meetings and its
timing henceforth. Generally, employer of Sunrise Ltd. Needs to acquire this kind of
procedure but they are free to follow any of the steps as per their choice or preferences.
 If not following the process:- Employer have to follow appropriate procedure in order to
control any discriminatory activities that may affect the success. It is also said to unfair
procedure due to which company might face problem while closing their branch of
Whitechapel.
At last it has been understood that legal bodies was established suitable method or
process of handling business activities as well as process of winding the business in order to
regulate possibilities of mistakes. Along with this, might create problem while managing overall
business activities.
The Sunset Ltd., initial terminate the employees informing them about the firm's
condition and then it proceed to the liquidation process of the company. Its liquidation will
provide the funds that can resolve the bank and legal liabilities for clearing the debts. As it
insolvency will reduce the burden of debts and legal liabilities because the liquidity will be used
to pay off financial institutions.
P5 Justification for the use of appropriate legal solutions
As per given solutions selected firm can easily manage each or every activity in proper
manner by understanding the elements. Along with this, supports in controlling possibilities of
any mistakes and errors. Their main objective is to facilitate consumers with best services for
attaining set objectives or goals in a defined time frame. Mainly, employers can easily
accomplish the entire process by considering legal norms and bodies for satisfying the clients
needs or requirements in a given time frame. Additionally, legislation is trying to establishing the
equal environment for managing the business activities and aiming to complete the entire process
in perfect ways. (Ye and et. al., 2011).
In the previous answer rescue from insolvency and liquidation is preferred because while
being in a business there is time when an entrepreneur was not in state to pay back the money
7

that was borrowed. At that time, the assets of the company needs to be insolvent that is the
resources will be used to clear the debts.
TASK 4
P6 Key challenges and legal solutions for expansion process based on country legal system
Sunrise is focusing in earning high outcomes and profits by carrying out all work process
in conducive and effective manner. There are number of adverse conditions and situations hence
company have to opt for ADR in which key areas are focused efficiently so that particular aims
and objectives could be accomplished in set tie period. There are three concepts that are taken
into consideration under ADR that are arbitration, negotiation, mediation. The brief description
about these elements are focused below:
 Arbitration: Under this company have to include number of professionals into their
system in order to look after legal problem that arises in several situations. Therefore
proper rules and regulations have to be followed to solve these legal issues and
challenges.
 Negotiation: In this two parties of the contract come in contact with each other on
certain basis under mutual understanding. They resolve number of problems and
obstacles that arises between them. This tool is majorly adopted by various small scale
organisation as it do not involve huge expenditure that is made in negotiation process.
 Mediation: Mediator play a major role under this method as they take responsibility to
solve several issues that arises on number of aspects. Hence, organisation do not have to
appoint any professional to minimize the risk of conflicts.
Above discussed tools assist the company to solve number of issues that get arise in happening
of number of events and situations that are difficult some are described below:
 There can be situation in which both the parties do not contact to each other to resolve
number of issues and doubts hence, mediation and arbitration method can be utilised to
solve this issue and problem (King and Raja, 2013).
 Apart from it, if both the parties become ready to remove their issues or any challenge
this will result into minimizing the additional cost of business organisation.
Hence, it can be concluded that all tools or techniques that are adopted results in reducing
the overall problems and issues. From so far, it has been observed that Sunrise must opt for
8

arbitration process as it involve hiring of professional personalities in to the company who will
take care of all illegal actions that take place in day to day life of business. They always focuses
on carrying the entire work process towards right and correct path so that final aim could be
achieved in proper manner.
As a company decides to operate its business in the United Kingdom then they needs to
analyse the various legal factors that are mentioned below -
Trade Unions – The Trade Unions consists of exporting and importing that business
can be use to expand the opportunities with a straightforward process to establish a contract and
avoid the complex tariff rules. In the UK there is a possibility to explore because it supports to
the international trade agreements that raise the firm's profit.
International Trade contract – As soon as the company complete the research then it
needs to identify the potential international trading partners and setting up a contract with mutual
understanding that will protect to business. It used to over cone the barriers such as language and
culture of diverse countries. In order to avoid the conflicts and run the business overseas a
written contract is beneficial for them to run a business successfully.
CONCLUSION
From the above report it has been concluded that sole companies are trying to expand
their business but they are little bit scaring due to strict rules and regulations of legitimate bodies.
At the same time, one thing is determined that legal norms are playing crucial role in preventing
small companies from getting misused by large companies. In order to overcome various
business issues legitimate bodies are involving in framing necessary acts and policies to improve
the environment. However, main motive of this assignment is to highlight various legal rules and
solutions that was designed by legislations for resolving problems faced by corporate world
while running their business entity. For example; ADR is best method to overcome companies
problems that act as major success obstacle for each or every organizations. Therefore , sunrise
Ltd. Is following legal beliefs while running their firm so that they can attain their set objectives
or goals in a desired time period.
9

REFERENCES
Books and Journals
Mann, R.A. and Roberts, B.S., 2011. Smith and Roberson’s business law. Cengage Learning.
Harner, M.M. and Rhee, R.J., 2014. Deal Deconstructions, Case Studies, and Case Simulations:
Toward Practice Readiness with New Padagogies in Teaching Business and
Transactional Law. Am. U. Bus. L. Rev., 3, p.81.
Bagley, C.E., 2010. What's Law Got to Do With It?: Integrating Law and Strategy. American
Business Law Journal, 47(4), pp.587-639.
Manafy, M. and Gautschi, H., 2011. Dancing with digital natives: Staying in step with the
generation that's transforming the way business is done. Information Today, Inc..
Nichols, P.M., 2012. The business case for complying with bribery laws. American Business Law
Journal, 49(2), pp.325-368.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive
advantage. American Business Law Journal, 47(4), pp.727-794.
Frank, J. and Bix, B.H., 2017. Law and the modern mind. Routledge.
Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Guinnane, T.W. and Martínez-Rodríguez, S., 2010. Did the Cooperative Start Life as Joint-Stock
Company? Business Law and Cooperatives in Spain, 1869-1931.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L., 38, p.405.
Ye, Q and et. al., 2011. The influence of user-generated content on traveler behavior: An
empirical investigation on the effects of e-word-of-mouth to hotel online
bookings. Computers in Human behavior, 27(2), pp.634-639.
King, N.J. and Raja, V.T., 2013. What do they really know about me in the cloud? A
comparative law perspective on protecting privacy and security of sensitive consumer
data. American Business Law Journal, 50(2), pp.413-482.
10

11

12