Importance of Law in Business and ADR

This report explores the significance of law in a business context, highlighting the need for compliance with rules and regulations. It also delves into alternative dispute resolution (ADR) as a method for resolving disputes between businesses and consumers. The report emphasizes the importance of understanding legal obligations to ensure the effectiveness and efficiency of a business.

BUSINESS LAW
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Table of Contents
INTRODUCTION...........................................................................................................................1
1) Explain the role of government in law making process .......................................................1
TASK 2............................................................................................................................................2
2. Explain the difference between Employed and Self employed and Discuss about duties that
owed by council to their employees. ...........................................................................................2
TASK 3............................................................................................................................................4
3.Consider the role of an officer in the organisation and methods of raising capital. Suggest
business solutions and Consider its Advantages and Disadvantages...........................................4
TASK 4............................................................................................................................................6
P.6 Legal Solution based on the legal system of the nation........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
This report will explain the roles of legal system and it is also important for the
business. It is also describing the role of government in law making process . Rules and
regulation are formed by government, it is important for followed by organisation for running
their business in smoothly manner. This assignment report is also explaining the distinctions
between self employed and employed. This report is also discuss the role of officer in business
organisation.
TASK 1
1) Explain the role of government in law making process
Government play a very essential role in decision making rules and it is followed by the
companies that are working in this firms . The role of government in law decision making
process it is structured and managed in different ways (Adams, 2012). It all depends on rules and
legislation make by higher authority, it is very essential to be followed for all the businesses
organisations. Government make number of rules and regulation for maintaining sustainability of
the Potato growers in UK. It is also the responsibility of a government accept proposal related
to bill transformation or introducing the bill though parliament session. There are many steps in
law making process. Introducing bill related to the Potato council. Many agricultural fairs is also
visited by the council. Council is also responsible for offering the advices to the government
for offer statistical advices on the potato firm. It also includes separate publications of the
council named as POTATO WEEKLY.
These law are very useful for protecting the health of consumer, if government
parliament house are not approved bill so they also try into next amendments. The first stage is
refer with the reading in parliament house (Adams, 2012). It is completed by the person who is
standing to read. The second stage is related to the proposal of debate, it involves the member of
debates and votes. The next stage is consist with group of people these are the stages it is also
important role for government making process. Delegated legislation is also the process in
making government decision, it is also passed by the parliament and it is used as a tool to the
operation of government within the nations.
Professional lobbyist is refer to the share a information regarding business organisation,
their staff so it is also play a vital role parliament house in passing the bill. Professional
lobbyist is refer rules and regulation in machinery, which is influencing people also responsible
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for the power of law, government decision and legislation. It is very helpful for the protecting
and securing the right of the worker (Adams, 2012). It is very important for welfare of the
people in making these policies and legislation it also beneficial for for protection of the
worker who are working in organisation. Lobbyist is just an activity it help to search persuade
member of the government and its main aim to provide the its benefits for their people.
Argument are also done by the particular legislation in decision making process (Adams, 2012).
It is necessary for the people involve in this process for making law for growth of the nation. It
is also very helpful for the role of government in law making process.
Sources of law:
Act of parliaments: this is major source of UK law this is also termed as legislation. A
prospective law is presented to both houses of parliament and then after that it becomes a bill
and with getting an assent from Monarch it becomes a law.
Doctrine of Judicial precedents: this doctrine provides a legal status to the decision
passed by judges in the case law in a court proceedings. The law is refereed by all other courts
in order of Hierarchy. A decision by lower court is not referred by higher court.
Custom: a law is formulated on the basis of customs, beliefs and behaviours of the local
society or nation. These are general behavioural habits of peopled which are turned into law.
European union: UK is part of EU so law and legislation of EU applied in UK as well.
Sometimes English law and Law of EU clashed with each other and in such a situation EU
always prevails. This does not mean it override the UK law it just get priority over it.
Division of law:
There two parts on law in UK:
1. Civil law: the deals with the offence of less serous nature which are generally related
with tort, negligence etc.
2. Criminal law: this branch deals with crime of serious nature which incudes assault,
battery, rape and murder.
Role of government in making law:
1. an issue is selected by elected parties to present n parliament to make a law on it.
2. Proposal is presented before both the houses of parliament where it is discussed by each
one by one and amendment in by are made. This includes presentation of white pare/
3. When both houses of parliament approves the proposal becomes a bill.
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4. For making it a law royal assent is necessary, when monarch approves it constitutes as a
law.
TASK 2
2. Explain the difference between Employed and Self employed and Discuss about duties that
owed by council to their employees. Employed: The term means any individual who are hired or employed full-time or part-
time during a specified payroll period (Adams, 2012). It refers to hire or engaged the
services of person to perform assigned duties or task.
 Self Employed: It is a situation in which individual work for himself instead of working
for employer that pays salary. A self employed person earns from their incomes by
conducting profitable operations from business that operates directly.
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Gig economy issue: this can be defined as labour market where work is done on
contractual basis or as a freelancing as compared to a permanent job.
Pimlico Plumbers case: in this case the plumber used to work for the company on
contract basis. When a worker fall ill he was not paid he filed case against on company for leave
pay, sick pay and removal on irrelevant basis. The main issue in this case was that whether a
person working on contractual basis is entitled as an employee or not.
HELD
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In the case it was held that there is a difference between self employed and permanent
employee. An employee is entitled for his rights under employment contract but a person wrong
in as contractual basis can not demand the same rights.
There is difference between self employed and employed person. Income: The employee gets regular and steady income. They are on the company payroll
for the assigned period of their jobs. But self employed individual dose not have steady
income (Adams, 2012). They generate revenue through the profitable operations within
their business. Thus, at time of loss the income of self employed person would be limited
or no income. Tax Treatment: Employees are provided with benefit package that includes like sick
leave vacations, health insurance and other retirement plans. The amount of tax paid by
employees depends upon the benefits they get. But for self employment income earned
the tax payment would be 15.3%. It consists of two parts 12.4% for social security and
2.9% for Medicare. Insurance benefits: Employees are insured under both unemployment insurances and
under employees rights in case of bankruptcy or corporate liquidation. Self employed
person dose not hold any such rights or benefits. Payment of Insurance: The rights of employee dose not affects if there is delayed
payment of insurance by his/her employer (Adams, 2012). But self-employed individual
would be affected if he/ she do not register themselves under payment for insurance
contributions.
 Availability of Opportunities: Self-employed individual as ample of opportunities to
explore it business. They have freedom to use their innovative ideas and skills to make
business profitable. Employed person is restricted to its particular job and thus, he/she
has very limited or no chance to showcase their innovative skills (Adams, 2012).
The Potato Council is a trade organisation that aim is to develop and promote potato industry in
Great Britain. Duties of Potato Council towards their employees would be as follows;
 The AHDB is reminding their cooks to used healthier cooking and preparation methods
to be followed while preparing recipes.
 A selection of starter and plenary ideas to introduce students to nutritional value.
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 It is the duty of council to educate or make aware their about the contribution of Potato to
nutrients intake in UK (Adams, 2012). This would guide them to modified their recipes
according to the form in which potato is been taken largely by the population of UK.
 The Council should make their employees aware about the fact of potatoes contribution
to the economy of UK. This would make them aware about the growing industry of
potato within United Kingdom.
 They should guide their employees on average time taken to cook particular product from
potatoes.
 Agriculture and Horticulture Development Board is responsible to make the agriculture
industry more competitive and sustainable (Adams, 2012). Thus, they should guide their
employees to use more eco-friendly production methods to increase the productivity of
potatoes.
 They should provide the proper knowledge regarding the texture and flavours of dishes
cooked from potatoes.
 Duty of AHDB to provide awareness regarding the chemical reactions of various dishes
when cooked using potatoes.
 They must promote the recipes initiated by their different cooks in order to encouraged
and motivate them to bring innovation in their cooking styles.
TASK 3.
3.Consider the role of an officer in the organisation and methods of raising capital. Suggest
business solutions and Consider its Advantages and Disadvantages.
The officer is a person that manges or perform the day to day work within an
organisation. The presidents, vice presidents and secretary and treasures are the officer on the
Boards of Director's managing the business affairs of the organisation. The role of an officer in
accordance to the company is as follows; Chairperson: The basic role of chairperson is to organise meetings within organisation.
But the responsibilities performed by chairperson is wider. They are responsible to
provide leadership and assures effective working of governing body. Chair person
ensures that decision taken in meeting are been implemented within company (Adams,
2012). They act as spokesperson for organisation or governing body. Chairperson should
encouraged each member in the board to participate and share their views and opinions.
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The judgement by chair person should be impartial and he/she must reviewed all the
views heard while taking decision. Secretary: The role and responsibilities of secretary within an organisation is to be in
charged of membership rolls (Adams, 2012). They perform task of planning and
distribution of scheduling information for performing certain activities and meetings.
They are responsible for taking and distributing minutes. To play the role of officer it is
important to have good administrative skills. Treasure: The role of treasure ids to overview all the financial aspects and accepting
money from the members or through secretary. The responsibility of treasure is to
prepare, present and make the budget approved. The main duty of treasure is to ensure
that financial resources of organisation must be able to meet all the needs and
requirements of company.
 Vice Chairperson: The role of vice chairperson is to perform task of chairperson in case
of it absences. The responsibilities is to assist the chairperson between meetings. It is the
duty of vice chairperson to deals with specific issues and task within organisation.
Role of a director: the director of a company is responsible for performance of the
company. They manage the business affairs of the company (Adams, 2012). The director shall
be unbiased an shall not take any personal interest in business affairs.
Duties of a director: the director is responsible to hold the board meeting and makes
decision for company and to reach the objective of company. The directors are knows as owner
of the company and are responsible for all the activities performed in the company.
Different methods of raising capital and their Advantages and Disadvantages are as follows:
 Venture Capital: It refers to finance that provides by investors to small, early-stages or
emerging firms to have high growth potential (Adams, 2012). This form of capital comes
from wealthy investors, investments banks or any of the financial institutions. The merit
of Venture capital would be;
◦ It act as valuable source of guidance and consultation.
◦ They can assist in variety of matters regarding the business decision.
◦ Venture capitalist provides guidance in legal, tax and personnel matters.
The disadvantage are;
◦ The loss of control within organisation.
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◦ Further, the management control is lost due to major share of VC's capitalist
company.
 Bank Loans: The loan refers to debt provided to an organisation or individual. Bank loan
is the most common form of loan (Adams, 2012). It is provided for long and medium
terms with a fixed interest rates. The time for repayments of loan is fixed by the bank.
The advantages of bank loan is as follows;
◦ The bank loan when used for business, the interest paid on them is tax-deductible.
◦ It is a cost effective method in terms of other sources of finance.
◦ Further, banks demands to repay the principle amount and interest. Thus, company
can retained the extra profits earned by them.
Demerit of Bank loans;
◦ The organisation is burdened from the repayment of loans.
◦ Fail in repayment can results in seized of assets owned by company.
 Government grants and subsidies: This refers to aid and grants provided by the
government of the country . To developed the Agriculture Sector UK government has
implemented the Rural Dev (Adams, 2012).elopment Program for England. The benefits
of this plan are;
◦ This will reduce down the imports of food items from outside the nation.
◦ It will help in growth and development of rural economy.
Disadvantages;
◦ The red tape and misuse of powers dose not allow proper and effective utilisation of
subsidies.
◦ They harm environment as subsidies are provided only to specific crops. This forces
farms to grow the same crop and thus fertility of land is lost.
TASK 4.
P.6 Legal Solution based on the legal system of the nation
Alternative Dispute Resolution: It refers to a way to resolve disputes between trades
and consumers without an involvement of court. It can also be stated as out of a court settlement
which is very less time consuming and less expensive than the court proceedings (Adams,
2012).This is an opportunity given to public for fast determination and settlement of a dispute
(Pryor, 2014). There are several schemes of ADR in UK in many sectors, which are- financial
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services, energy and telecom sectors. Many business become a voluntary member of ADR
schemes for fast resolving their disputes. All the ADR schemes are not same they differ
depending upon the consumer problems a business faces. The main benefits of ADR are no
payment of court fees, less complicated procedure the court proceedings and there is a surety of
receiving the compensation.
Types of ADR:
Mediation: This is a type of resolution which is less formal in nature. This mainly keeps
its focus on problem and determining the best way to solve it. In this an impartial person which
is called as mediator tries to resolve the dispute between the parties (Lee, Yiu, and Cheung,
2016.). The mediator resolves the problem by hearing both the parties and considering the facts
given by them. After all this it provides a set solutions to the parties and parties agrees on a
mutual solution (Adams, 2012). The solution achieved and agreed are mutually accepted by the
parties.
Arbitration: This method is less formal than arbitration and is more independent in
nature. This method is generally free to use by parties to disputes (Adams, 2012). The arbitrator,
the person responsible to solve dilute collects and look into the evidences in written from
submitted both the parties to dispute (Gonçalves, 2016). On the basis id written evidences the
arbitrators makes a decision. The arbitrator shall be person approved by Charted Institute of
Arbitrators. He shall be a person of expert knowledge in the field of dispute or complain. The
decision given by an arbitrator is legally binding on both the parties to dispute. Any of parties not
satisfies with the decision given by arbitrator can not go to the court for seeking remedy.
Adjudication: This is a method in which dispute is resolved in a quick and
straightforward manner. In this process a third party makes a decision which is binding on both
the parties to dispute (Alternative dispute resolution, 2018). The decision is taken by considering
all the written facts provided by the parties to the disputes. This method do not completely
eradicates the involvement of the court in dispute resolution (Adams, 2012). A party to the
dispute if not satisfied with the decision given can go to the court with their problem.
Natural evaluation: this is another scheme of Alternative dispute resolution. In this
method a decision can be reached by the parties in respect of the dispute on the basis of a
collective decision made by them. In this method the parties to the dispute mutually reaches a
decision on their own without involvement of any other party (Adams, 2012). This is a mutual
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by bot the parties so no further need to go to the court or any other party arises. This is a very
effective manner to solve a dispute.
CONCLUSION
From the above report it can be concluded that law is a very important and integral part
of a business. Both business and law and regelation go hand in hand, they can bot be separated.
A business entity is bound to comply with all the rules and regulations effectively and efficiently.
Foe the business entity is mandatory to abide with legal obligations so that the legal framework
of the business can be achieved. To achieve the legal framework is important for a business that
all the rules and regulation provided by the legal system of the country can be complied with.
Non compliance with the legal obligation may attract legal issues and that ca hamper the
effectiveness of the business. Moreover, for any disputes between trade and its consumers, they
can go to ADR for fast and effective resolution of the dispute.
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REFERENCES
Books and Journals
Adams, A., 2012. Law for Business Students: UEL. Pearson Education UK.
Gonçalves, M .C., 2016. Alternative Dispute Resolution in Civil and Commercial Matters in the
EU. In Interdisciplinary Perspectives on Contemporary Conflict Resolution .(pp. 111-127).
IGI Global.
Lee, C. ., Yiu, T.W. and Cheung, S. O., 2016. Selection and use of alternative dispute
resolution (ADR) in construction projects—Past and future research. International Journal
of Project Management. 34(3). pp.494-507.
Pryor, W., 2014. Alternative Dispute Resolution. SMU Annual Texas Survey. 1(1). p.1.
Online
Alternative dispute resolution. 2018. [Online]. Available
through:<https://www.gov.uk/government/publications/alternative-dispute-resolution-for-
consumers/alternative-dispute-resolution-for-consumers>.
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