Business Law Report: Business Law, Contracts, and Regulations

This business law report comprehensively examines the legal aspects of setting up a business, the legal effects of transactions, and the implications of contracts. The report begins by outlining the requirements for establishing a new business, specifically focusing on the retail sector and the choice of a private limited company in Stratford. It then delves into the impact of company law, including name registration, licenses, permits, and other regulations affecting business operations. The report further analyzes the Sales of Goods Act of 1979, detailing its legal effects on transactions, such as the sale of a defective van, the sale of goods not matching their description, and the implications of purchasing stolen goods. The report also examines the legal implications of a proposed contract, specifically addressing a case involving junior doctors and the government's contract proposal, referencing the case of Hogg v Dover College. Finally, the report provides suggestions regarding claims and defenses in a scenario involving a coach crash and negligence, analyzing the liabilities of the driver, Charles, and Shanice. The report concludes with a summary of the key findings and implications of business law in the context of the presented scenarios.

Business Law

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Setting up of own business..........................................................................................................1
TASK 2............................................................................................................................................3
Legal effects of effects of transactions........................................................................................3
TASK 3............................................................................................................................................5
Legal implications of the proposed contract................................................................................5
TASK 4............................................................................................................................................6
Suggestion in regard to claim or any defence..............................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In this modern times, law is an effective part of the society as well as business
environment, which emphasises on to protection and safeguarding of societal people, against
harm. In this light, law can be defined as a system of law, which renders a framework with a
view to regulate and create relationship and effect business activities as well (Bagley, 2010) .In
this context, Business law can be termed as a significant part of law, as a system as whole. In
addition, top this, requirements of setting a business organization will also be discussed.
Moreover, different cases with legal solutions will also be given effect.
TASK 1
Setting up of own business
In order to set up a new business organization, various provisions and compliances are
required to be fulfilled in perspective to attain business objectives and goals being desirous for.
In this light, I would like to choose a business in Retail sector in Stratford. So, considering this, I
want to commence my business operations as a private limited company. In retail sector. In my
companies work operations will be distributed among various departments such as HR,
marketing, finance etc. Also, there are different channels which will be established with
diversified range of suppliers, to receive quality goods and services (Cavaliere, Mulvaney and
Swerdlow, 2010).
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Figure 1law and legal regulations
(Source: How Does the Law Affect Businesses? 2017)
Although there are various formalities and rules or regulations imposed by government
which are mandatorily followed by business corporations, during or after their commencement.
In addition to this, there are different laws and legislations which affects working of a business
organization (DiMatteo, 2010). It is also considered as an important task to have a look over
those norms and regulations. It is a notable fact that while commencement and starting up of a
business, Company Law has its significant impact. In this light, law affects business through
following aspects:
 Name of Company: This signifies an importance of a catchy and iconic name for
company. Any business man is desirous of having an effective name for its business
institution. It is an obligation of promoters of company to check “availability of name”
for company to be incorporated (Robson, 2010). Also, for commencing as a private
company in Stratford, it is required that name finalised should be registered with
competent authorities. Moreover, prerequisite fees and amount is also required to be paid
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in this regard. In addition to this, all requirements in relation to object, liability and
subscription clause are also required to be followed, before, starting with a company.
 Licenses and Permits: It can also be noted that there are various legislations in relation
to get licences and permits from regulatory authorities. Also, import and export of
different products and services, requires permits (How Does the Law Affect Businesses?
2017). Before commencing with business activities, a promoter should obtain all licenses
and certifications. Also, in context of international line of work and practices, business
laws are implied in terms of tariffs of international trade (Grundfest, 2010). Various
guidelines are also issued by international trade laws and legislations which should be
followed by parties concerned.
 Other regulations: Laws and regulations also affects business organization while its
commencement by applying rules related to create and enhance relationships in between
employer and employee. In this context, taxation policies are one of important aspects
which are required to be complied by companies in order to start up their business
organization. Furthermore, Principles in relation to Health and Safety Act, should also be
complied.
 Ethical norms and systems: Prior to commence its business operations, promoters are
also required to enter into preliminary agreements, also known as pre incorporation
contract, by which company is not bound. Along with this, a business organization should
originate its corporate operations in accordance with compliance by ethical standards and
principles. All business should make sure that they should comply with rules and
regulations in order to sustain protection of consumers, society and sustainability.
Therefore, it can be said that, law has an effective impact on start-up companies and
business organizations, at the time of commencement.
TASK 2
Legal effects of effects of transactions
The Sales of goods act, 1979 is a legislature which is concerned with goods and products
sold and bought (Kinick and Kreitner, 2012). This act is applicable in aspect of those contracts
and agreements in which property entailed in goods were transferred or agreed to be transmitted
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in lieu of a consideration in monitory terms. Legal effects of cited act in following transactions
are:
 (A) With reference to this case in which Mercedes van sold by Rashid to Naseem for
2000 pounds, which is not roadworthy. The engine was of Mitsubishi company which
was obsolete and liable to break down. In this context, provisions of Sales of Goods Act
are applicable in this transaction. According to the said provision of Section 13(1) of
cited act, seller owed a duty to his buyer in respect of providing quality goods and
services. Also, goods sold should be in perspective of description and fitness. So, Naseem
has been entitled with a right to claim against Rashid.
 (B) In case, where, Naseem bought stock of Rasheed, which included a box labelled
Casio Digital watches. Afterwards, when Rashid displayed items for sale, then customers
found these watches are not of digital system. So, in this regard, section 13(1) and 14 of
Sales of Goods act, 1974 is applicable which demonstrates that when goods are sold to
buyer by description, then it must correspond with its description. So, in relation with a
given case, Rashid is under an obligation to sell goods and services in accordance with its
description, to Naseem.
 (C) In this case, Naseem has bought a tarpaulin which has been seized by police as it was
a stolen product. So, in this case, it is legal in nature and buyer can sue seller as he
purchased the said product or services in good faith (Siedel and Haapio, 2010). In other
words, if seller does not have title, still buyer can claim for compensation, as he is a
bonafide consumer and has purchased goods in good faith.
 (D) With reference to given situation in which a contract was framed in which there was
clearly written that all instalments must be paid within a given time period. In addition to
this, Naseem has paid all instalments on time, but failed to pay last instalment. So, Rashid
has terminated contract. In this light, provision of contract act must be applicable.
According to said provision, all terms and conditions written in contract is binding upon
both the parties to an agreement (Law, 2010). In case either of party fails to perform,
then, it will result into termination of contract. So, Rashid is in a situation to rupture the
legal agreement occurred in between them.
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TASK 3
Legal implications of the proposed contract
In this given case scenario, government has a planning to impose a new contract t on
junior doctors. It was about timing s of workings during a week., which includes working till 10
pm except Sunday. This resulted in heavy protest by doctors against government. Afterwards,
Jeremy Hunt, Former heath secretary, offered as hike of 11% in their basic pay and also provides
safeguards to prevent them for working for more than normal hours. But, proposed industrial
action was not successful in respect of breaking the deadlock and it was declared as
Fundamentally unfair by British Medical Association.
In regards to given case of “Hogg v Dover College [1990] ICR 39 EAT”, it was held
that variation in terms of an agreement is not considered as fundamental, which amounts to
rejection of contract. In addition to this, if it has been clarified by an employer of an organization
that he is agreed to accept the repudiation the terms and conditions of original contract.
Furthermore, the fact due to which he is ready to be reemployed in heading of new contract will
not be able to protect by conveying that he had been unfairly dismissed under old contract. In
this light, the court has treated dismissal in a legal manner.
So, with reference to the given case scenario, contract imposed by Jermy’s hunt would be
implied in unilateral nature as some of the doctors were not agreeing to sign it. So, considering
this, British Medical Association has considered this proposal as unfair.
Fundamentally unfair contract is a concept which is consists of any unfair or
unacceptable contract terms inn a legal agreement, due to which parties to the contract refuses to
abide by terms of contract (Mann and Roberts, 2011).
So, with reference to the cited case law, British Medical Association has declared all
proposals as unfair and also said that consideration will be given to all options. Nonetheless, this
contract was imposed by health secretary but, doctors has refused to accept terms and conditions
of said agreement as it would create loss to patients as well as profession too.
In terms of cited case law of Hogg v Dover College [1990] ICR 39 EAT, contract of
Jeremy Hunt was not legal in nature as it emphasised on loss to NHS, patient s as well. Also,
court has termed this contract has illegal.
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TASK 4
Suggestion in regard to claim or any defence
With reference to the given case scenario, East London Tours had a contract for an
educational tour of Oxford University to students of college and teachers. Ade was driving a
coach, who was not driving in an inadequate and rash manner. It resulted into crash due to
reckless driving. In addition to this, due to crash, Charles was severely injured into cash, due to
unfastened of his seat belt. Although Ade had warned each and every body to fastened their seat
belts. On the other hand, Shanice was another teacher who was seated till paramedics came.
Although, she also wanted to get up for some fresh air, but paramedics denied. Still she got up
and injured on her hip due to carelessness. In regard to tis both Charles and Shanice were
desirous of claiming against Ade.
So, in accordance with the provisions of Tort and negligence, liability may be arising due
to negligence by defendant, in meeting up with the standards of care required to be met by him
under law (Nichols, 2012). Also, if it has been proved that, it was defendant who was obligated
with a duty to care and he breached his duty, then plaintiff has a right to sue defendant for
rupture of duty to care. However, there are some cases where defendant is not liable to breach of
duty, it involved those cases in which defendant has explicitly warned plaintiff to take care. So,
in this case Ade has warned all members to fastened their seat belts and Charles had not followed
his warning. So, Charles did not have any right to sue Ade, as there was an evidence that injuries
could be minor if he had worn seat belt. However, Ade was also entitled to take care of is duty
and he should have driven with care.
On the other hand, Shanice did not unfasten her belt as advised by Ade. Although she
attempted to exit from door after entry of paramedics. As door was unusable to open, so she fell
down and hurt her hip.
So, Shanice was also not authorised or liable to sue Ade, as it was her own fault only. She
did not listen to advice of Paramedics. So, she was also not liable to sue Ade.
CONCLUSION
From the above mentioned report, it can be concluded that business law can be
considered as a significant part of English legal system. In this light, it can be said that there are
various forms of organization which can be utilised in aspect of commencing new business.
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Also, various compliances are also laid down under law, which should be adhered by business
institutions. Along with this, application of Sales of Goods Act under various legal transactions
has also been done. In addition to this, concept and terms of law of Tort and negligence has also
been discussed in present report.
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REFERENCES
Books and Journals
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.
Cavaliere, F. J., Mulvaney, T. P. and Swerdlow, M. R., 2010. Teaching business ethics after the
financial meltdown: is it time for ethics with a sermon?. Education. 131(1). pp.3-8.
DiMatteo, L. A., 2010. Strategic contracting: contract law as a source of competitive advantage.
American Business Law Journal. 47(4). pp.727-794.
Grundfest, J. A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
Kinicki, A. and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.
Law, D. W., 2010. A measure of burnout for business students. Journal of education for
business. 85(4). pp.195-202.
Mann, R. A. and Roberts, B. S., 2011. Smith and Roberson’s business law. Cengage Learning.
Nichols, P. M., 2012. The business case for complying with bribery laws. American Business
Law Journal. 49(2). pp.325-368.
Robson, R. A., 2010. Crime and punishment: rehabilitating retribution as a justification for
organizational criminal liability. American Business Law Journal. 47(1). pp.109-144.
Siedel, G. J. and Haapio, H., 2010. Using proactive law for competitive advantage. American
Business Law Journal. 47(4). pp.641-686.
Online
How Does the Law Affect Businesses? 2017. [Online]. Available through: <
https://yourstory.com/read/6d7c3b1641-how-does-the-law-affect-businesses->.
[Accessed on 20th July, 2017].
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