Business Laws and ADR Methods for Conflict Resolution

This report analyzes the use of business laws and Alternative Dispute Resolution (ADR) methods to resolve conflicts within a workplace. The study focuses on Pegasus, examining the legal frameworks that govern businesses and the ADR methods available for conflict resolution. The analysis highlights arbitration as the most suitable method for resolving conflicting situations at Pegasus, enabling the company to maintain its goodwill in the marketplace while adhering to organizational rules and regulations.

BUSINESS LAW

INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Sources of law........................................................................................................................4
P2 Role of government in making law........................................................................................5
TASK 2............................................................................................................................................6
P3 Impact of employment and contract law on business............................................................6
TASK 3............................................................................................................................................7
P4 Formation of various types of an organizations.....................................................................7
P5 How business organization are managed and funded............................................................8
TASK 4............................................................................................................................................9
P6 Legal solutions for resolving disputes...................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business law is a cluster of norms, beliefs, rules and regulations which is enacted by legal
bodies of a nation for smooth functioning of entire corporate world. Main objective of legislation
is to minimize the possibilities of fraudulent activities that might incur while running a business
(Mann and Roberts, 2011). Therefore, whole project is going to circulate around the need and
significance of legal policies at workplace with the help of specific example. For instance;
Pegasus is an organization which was established by Jay and Alex for providing delivery
services to the desired customers will considered in this project. Initially, company wanted to
know the legal system of a nation for expanding their business as well as government role in
amending laws. Furthermore, legal rules of managing and handling business are also outlined in
the assignment for smooth functioning of an organization.
TASK 1
Sources of law
According to the given case study, Pegasus is an organization which was set up Jay and
Alex in a partnership for delivering goods that were ordered online. The business has expanded
in a very fastest way by providing on time services to their desired clients. Thus, in order to run
their business in legal way and for expanding it as more as possible, company wanted to know
about the legal system of nation. As it helps them in performing each or every aspect in better
manner as well as assist in a complex situations. Basically, legal system of UK consist of various
rules and regulations by showing the rights or obligations of several members which were
working in a business. In fact, number of acts and amendments are done by legitimate bodies
with distinctive purpose (Kroes, 2010). However, there are two types of sources are identified
which shows the reason behind amendment of particular laws such as primary and secondary.
Some of them are discussed as follows-
Primary sources are considered as statements of the law itself which is divided into two
categories such as;
Legislation- Statutes and regulations which were set by legal bodies are known as
primary source of law because these are first hand and used by judiciary court only. For
example; Act of parliaments, orders sanctioned by government, constitutional rights set by
governing bodies and various other laws which was amended by legal institutions.
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Case law- Petition of various cases is filed in the court on regular basis and all of them
are distinct from each other. For example; disputes between partners, customers, suppliers,
shareholders and so on. Therefore, all these cases enforce judiciary members to enforce some
legal norms by considering necessary situations. Furthermore, that statements and rule will help
tribunal in future judgement as well as direct if there is occurrence of dilemma (Macaulay,
2018).
Secondary source- On contrary to the primary legislation, this source is considered as a
subordinate law which is designed by executive branch within the boundaries laid down by
legislature but not in a similar legal force. Secondary laws are made in the form of statutory
instruments and regulation. Basically, its main purpose is to supplement, administer, support and
enforce primary sources. These may include the following which are as follows:
Legal encyclopaedia: Halsbury's legal dictionary is used as a secondary source for
understanding about legal terms and provisions. It is written in conjunction with expert opinions
provided by lawyers.
Law commission: It is a body formed by UK government for overseeing effectiveness of
legal provisions and various laws. They provide their suggestions and recommendations which is
then provided to wider public for their opinions.
After knowing these laws and various sources of legal system, Pegasus can easily expand
their business as these sources will guide the Alex and Jay during expansion process. Along with
this, make all the things legal which will not exploit by any competitors.
Role of government in making law
Governing bodies of UK are playing foremost role in the law making process because an
appropriate procedure is followed by advisory body before amending a law at public place.
Basically, emergence of a sparking agenda is a beginning step because single purpose will
enforce the members of parliament to think about it. Then, the raised agenda is going to
discussed in between ministers and then all of them will mention their intentions on either
“Green and White paper” for converting it into bill. After that, bill will go through various stages
before making it as an act (Folsom and et. al., 2013). Therefore, some of the major stages which
shows the role of government in law designing are detailed below-
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 First reading- Initially, bill which covers the entire agenda and issue which was raised
is going to read in front of Commons House where all the significant members of general
assembly is present.
 Second reading- Healthy and official debate is going on for understanding the opinions
of each member towards specific bill. Basically, in this stage consent of ministers will
acquire for further process on the basis of majority. However, whip system is also used
for convincing members.
 Committee stage- Now Bill referred by House of Commons for depth examination in
order to identify the need of any additional amendments.
 Report stage- Report which was formed by committee is going back to the house for
second time voting and debate process in front of the ministers.
 Third reading- Bill is going to represent to the house for short and concise discussion as
well as for final vote whether the bill is accepted or rejected.
 House of lords- After that, Bill is sent to the House of Lords for analysing the all the
above five stages as well as to do amendment and then sent back to the House of
Commons for considering the amendment.
 Royal assent- Last but not the least, final consent is going to acquire from Monarch for
formal approval in order to make the “Bill” as an “Act”. Basically, it is a formality
under Royal Assent Act, 1961.
Hence, it become as an “Act of Parliament” which will enforced at public place for their
betterment and follows by whole society as a rule.
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TASK 2
Impact of employment and contract law on business
In the given case, Pegasus is expanding its business due to which they have to hire
employees and setting a some standard for them such as; similar uniform for all the drivers of
vans, same gross and so on. In fact, Alex and Jay need to design norms for employees by
considering necessary acts which was implemented for employees’ betterment. For example;
minimum wage act is one of the most necessary law which must considered by Pegasus while
hiring new staff. Under the act, employees have the authority to demand for their minimum wage
which is set by legal bodies of UK. According to given case study, Alex and Jay needs to make
their decision on the basis of specific terms and conditions which is set in employment act.
Along with this, before entering into a contract with staff members they need to fulfil some
certain formalities that is requisite during hiring process (Nichols, 2012). Some of the major
rules and regulations of employment and contract law is discussed further-
UK court passed a decision in the case of Piumlico Plumbers. Gary Smith was a plumber
in Pimlico who worked on self employed basis with the company for 6 years. He filed a case
against the company about not treating him a worker. This case was taken to supreme court,
which given judgement that if an entity has hired on self-employed basis then such a personnel
will considered as worker if certain conditions are fulfilled. Company providing employment
rights such as holiday pay etc., imposition restrictions on the work, uniform for workers, code of
conduct of the company etc. will be conditions of employees. Further, administrative control
together with a contract will also add in this (Bhatia, 2014).
This case can be referred for determining the position whether the drivers are appointed
on self-employed basis or they should be treated as employee. All the things given in Pegasus'
case signifies that, its drivers are its worker and have rights of an employee. They should be
treated according to provisions given in Employment Act, 2002. This act will provide huge
impact on business and in worse situation, it can face legal consequences which can take it to
distressing situations.
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TASK 3
Formation of various types of an organizations
Corporate world is classified into various types of association such as; public, private and
voluntary. Moreover, these types are also having several parts like; private firms are classified
into; partnership, sole proprietorship, limited company, private limited henceforth (Law, 2010).
However, legal bodies have designed distinct procedure for various types of associations from
which public formation is explained further-
Public corporation- First procedure before forming a Plc.
1. Selection of suitable name for an organization by searching it through UK’s WebCHeck
service in order to ensuring that name you have selected is unique. Along with this, check
registered trade marks also.
2. Fill the application for registering the company in order to provide basic information
about association.
3. Draft the memorandum of an association and articles of association by using standard
models articles which is provided in Companies House regulations.
4. It’s time for filling the incorporation documents with Companies House.
5. Apply for gaining trading certificate which must be issued by Companies House.
Second procedure-
1. Utilized approved software for managing accounts and records of an organization.
2. Auditing of accounts is indispensable at least once a year.
3. Need to deposit your accounts as well as tax returns to the Companies House in every
year.
4. Requisite to file confirmation statement annually.
5. Notifying process of Companies House of structural as well as managerial modifications.
Third procedure-
1. Kindly receive organizational unique Taxpayer reference (UTR).
2. Register for corporation tax.
3. Register for PAYE.
4. Need to report and pay payroll taxes of employees in every month.
5. Filing of tax returns of an organization.
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It shows that all the companies in corporate world need to follow an appropriate
procedure to form their business in order to follow each and every provision of legal bodies.
Thus, Pegasus also requisite to consider necessary steps before expanding its business for
minimizing the probabilities of mistakes.
How business organization are managed and funded
According to legal bodies, an association needs to follow every steps and legitimate
procedure before incorporation. As it helps in minimizing the possibilities of fraudulent activity
which might affect the success of business. In fact, somehow violation of legal procedure acts as
a major obstacle in between success path of a company (Eren and et. al., 2012). A company is
different from its members and there exist a separate legal identity between them. It has
perpetual succession which means that company can not be dissolved even if all its employees
are dead. It is an artificial person and can not act by itself, hence, directors are appointed who
manages the affairs. They make decisions, formulate policies, execute contracts etc. Companies
Act, 2006 provides for roles of a director which is as follows:
 To make policies and strategies that will be implemented.
 Filing of statutory documents with Companies House.
 Holding and arranging meetings of shareholders and members.
 Maintaining records etc.
 Executing contracts
A company can raise capital by issuing shares and debentures. These two are the best
ways to gather funds. Also, there are many options available such as retained earnings, bank
loan, loan from creditors, borrowings, etc. Since, it a registered entity, investors trust them to
provide their money.
TASK 4
Legal solutions for resolving disputes
Pegasus is expanded in various areas due to which number of employees is getting hired
at workplace for managing business operations. Each and every staff members are distinct in
various terms such as; nature, background, experience, education and so on. Therefore,
differences in several factors create problem for Jay and Alex to handle them because distinctive
creates a possibility of conflicts. In fact, several issues are arises in between management and
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staff members or various other people whomsoever are performing at workplace. Thus, legal
bodies have implemented an impressive law such as; ADR for controlling or resolving
conflicting situations (Grundfest, 2010).
ADR is a most suitable term which is enacted by governing bodies for corporate world
because by the use of this company can easily resolve the issues between two parties. However,
three types of methods are falls under ADR which are different from each other in various terms.
All these tools are discussed as follows-
Negotiation- According to this element, legal bodies’ states that parties which were
involved in conflicting situations can come closer to each other for clearing all the doubts.
Basically, this process is suitable for small organizations or in minor conditions where both
parties are related with each other like; might be family member, relative, friends, close
connection and so on. Most advantageous factor of this policy is that; it will safeguard the time
and consume almost zero cost. It is an useful method in negotiating with creditors. It is effective.
Mediation- In this method, third party is going too needed for clearing the issues
between two members which may be either any friend, manager, member of management,
professional colleagues henceforth. However, mediator is involved in this condition due to which
this procedure extended the time period. In fact, somehow mediator always tries to control the
situation by playing from both the side and convince them for adjustment. It is used when no
solution is obtained through negotiation. It is voluntary in nature and inexpensive. Also, the
decision provided by mediator can not be enforced in courts.
Arbitration- As per this tool, legal person will involved in the situation for processing
things in professional manner as well as follows the rules set by legitimate bodies. In fact,
company needs to involve a lawyer or any other legal member whosoever is having knowledge
about legislation. As a result, it will consume heavy cost due to the involvement of third party
who is a legal person. But at the same time, entire situation will control in a peaceful manner by
clearing all the necessary facts or figures. Instead of this, procedure of arbitration maintain the
decorum of the workplace as whole process will conducted by following organizational as well
as legal policies.
Hence, by considering all the tools of ADR it has been analysed that Arbitration is most
suitable method for resolving conflicting situations of Pegasus employees. This method will help
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association in maintaining their goodwill at marketplace by following company rules and
regulations.
CONCLUSION
From the above report, it has been summarized that legal laws are playing major role in
the development of an organization by directing towards corrective path. Basically, main
objective of an enterprise is to control the probabilities of wrongful conducts and managed all the
business activities in much better manner. By analysing the various laws of legal bodies, selected
get succeeded in expanding their business in legal manner. Moreover, assist the ways by which
company can minimize the disputes and source through which company can acquire fund for
business operations. For example; ADR is established by legal bodies for resolving the conflicts
which incurred at workplace with the help of various methods. Hence, it has been understood
that business laws are supporting an association from distinct manner.
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REFERENCES
Books and Journals
Mann, R.A. and Roberts, B.S., 2011. Smith and Roberson’s business law. Cengage Learning.
Kroes, Q.R. ed., 2010. E-business Law of the European Union. Kluwer law international.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Folsom, R.H and et. al., 2013. Principles of international business transactions. West Academic.
Nichols, P.M., 2012. The business case for complying with bribery laws. American Business
Law Journal, 49(2), pp.325-368.
Bhatia, V.K., 2014. Analysing genre: Language use in professional settings. Routledge.
Law, D.W., 2010. A measure of burnout for business students. Journal of education for
business, 85(4), pp.195-202.
Eren, S.S and et. al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
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