Business Law Report

This report analyzes the legal issues faced by Country Pine as they expand their business, focusing on UK law. It covers sources of law, government's role in lawmaking, and the impact of employment and contract law. The report also provides legal solutions, including ADR methods, to help Country Pine navigate their expansion successfully.

Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1 Different sources of law.........................................................................................................3
P2 Role of government in law making........................................................................................4
TASK 2............................................................................................................................................5
P3 Effect of employment and contract law on business.............................................................5
Task 3...............................................................................................................................................6
P4 Solutions for the business Problem........................................................................................6
P5 Justification for legal solutions..............................................................................................6
P6 Recommend legal solutions based on country.......................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
REFERENCES .............................................................................................................................10
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INTRODUCTION
It is essential to keep in check of the business laws in order to start a new organisation or
expanding the one which is already existing. Also it is necessary to follow the statute and
regulations made by states, so that a business is not threatened by the incompetency in the sector
of its incorporation (Bagley, 2010) . The analysis is about the problems and legal liabilities that
Country Pine is facing in the expansion of their business. Country Pine needs advice from the
Business future, who is a leading firm for the consultancy. The report covers sources of law that
is to be needed in starting up an organisation, also it deals with the statues such as Employment
related and Contract Laws. The brief is about providing legal solutions to the client and various
methods of Alternative Dispute Resolutions.
Task 1
P1 Different sources of law
Laws are essential for regulating a proper function of the society. IN United Kingdom
there is hierarchy of Monarch, nothing is above the Queen. But if we consider the sources of law,
there exists there different ways from which a law is formed, European Law, Parliamentary Laws
and the Courts. Courts are certainly a secondary source of law, the precedents and judgements
are used to to construct a law. European laws are in existence since 1973, which was originated
by some elements, includes, treaties, directives and decisions. The parliament and the European
Union are the primary source of law (Bodie, Kane and Marcus, 2014) . EU laws are an essential
part of UK under the European Communities Act1972, it is comprise of Council of Ministers,
European Commission, European Parliament and Court of Justice.
In order to start an organisation it is necessary to comply with the sources of laws related
business. In UK most of the business laws are regulated by Companies Act and Common Law.
According to the general provisions of any business law there exists two types of areas where a
business can be established, these are, private and public sector. Apart from the sectors of
business, in order to establish an organisation, it is essential to consider in which type of
partnership the members wants indulge. In the respect of partnership there are three types in
which a company can be formed. Limited, limited liability and unlimited liability partnerships
(Crane and Matten, 2016) .
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Limited liability and limited liability partnerships are such in which the responsibility of
the partners are limited, which means the losses and profits are equally divided between them,
unlike an unlimited partnership, sole trader is one of its kind, the liability lies within an
individual.
Moreover, on establishing an organisation the members has to incorporate the company
under Companies Act 2001. for starting a new organisation or limited company, there are certain
rules that needs to be followed by the company. As per the act it is necessary to form a
memorandum of association which includes the information about capital and shareholders of the
company. For the better functioning of an organisation it is essential to form an Article of
Association, it is basically comprise of the constitution of the company, legal liabilities of its
members, appointment of its directors. Apart from the documentation a company has to be
register under Companies Act by the Registrar of the company (Di Matteo, 2010) .
Country Pine wants to expand there business so they have to comply with the rules and
regulations that are mentioned in the statute without competing the legal formalities a company
would not become competent to do business.
P2 Role of government in law making
In order to formulate the law role of government is important. Once a proposed document is
prepared it has to go through different stages in order to be considered as law. Both house of
commons and house of lords both has their own significance and has separate role in converting
bill to a law. Parliament holds maximum power in the law and ensures that government is
performing well in its field so that maximum returns are received. Approval of any law is
received from the parliament where debate on every proposed option takes place and hence
results are received. A bill to become a law is important that consent of both MPs and House of
lords is received (Eren and et. al., 2012) . During the time period of 1911 and 1949 limitation
was made on the extent to which house of Lord holds power to cancel a proposed bill. The
members of House of commons are selected with the choice of common people and hence their
decision is acceptable by all. Process of election take place in every 5 years in which the public
has right to change the ruling party. Stages in law making are discussed below:
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 Bill – it is a document that has details of the proposed law. By having a glance of same
parliament members can identify that what is require out of same. It is divided into three
parts public, private and private members bill.
 First reading – this is the first time when the proposed document is read in the hall in
front of every member. No other action is taken at this step and only the members are
made familiar with the proposed document (Foss and Knudsen, 2013).
 Second Reading – this is the stage where debate among the members take place over the
proposed bill. After going through the discussion voting is done that weather the
proposed bill should be passed or has to be canceled. In order to make it more acceptable
system of whip is used in which final judgment is taken according to the majority favor.
 Committee stage – at this stage the bill is further transferred to house of Commons
committee so that in depth analysis of same can be made. If the officials believes that
changes are needed in them than same are made (Sweet v Parsley (1969, HL).
 Report stage – At house if changes are made they are reported back to members after
which again voting of same is done.
 Third reading – Decision of accepting or ignoring the bill take place at this stage.
 Royal Ascent – It is the last step in law formation. In 1707, the monarch (Queen Anne)
refused to ascent to the Scottish Militia Bill.
TASK 2
P3 Effect of employment and contract law on business
The employment law are a result of slave practices which are carried out in the country.
They are formulated to make sure that there is preservation of interest and providing them with
the right which they can exercise while working with an organisation. The law which has been
designed specifically for the employment contracts covers and influences relationship which has
been shared between employer and employee (Grundfest, 2010) . The broad categories which
are covered under employee law are contractions and condition relating to working and
specifications of working hours per week along with sickness and absence leaves. An employer
is enforced to undertake all these areas so that there are minimum chances of legal trouble.
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Whereas contract is referred to a promise which has been made by one party to another.
The agreement which has been formed between two parties relating to provision of performance
and fulfilment of a duty is being enforceable by the law. Both the parties are obligated to perform
their share of duties and tasks so that contract is fulfilled but it is equally important to comply
with the elements stated in the contract to avoid its breach. It is important to consider ethical
objective for the agreement so that it is considered to valid in front of the law (Johnson, 2013) .
In the undertaken case study of Country Pine, the organisation is looking to expand their
products and services to a newer market which will arise need to employ additional workforce
for the company. This situation highlights the confusion in the minds of workers relating to their
designation. Similar case happened in Uber Taxi, where it was finalised that workers are
employee for the organisation which makes them eligible for the benefits and grievances to
which they are entitled. The definition of employee in consideration to Employment right Act,
1996 states that any person who have engaged in the contract of employment with an
organisation is to be considered as employee which later persuades a business management to
conform with rules and regulation formed by the government (Kinicki and Kreitner, 2012) .
Task 3
P4 Solutions for the business Problem
There are many problems that an organisation will face on the expansion of their
business, such as appointing the right person for the job, proper strategy, technology, creative
people, etc. Country Pine is going through major problems while converting their organization
from sole trader to limited company because their main objective is to gain maximum benefits by
satisfying the needs or distinct clients. Thus legal bodies are giving best solutions to overcome
various problems are ;
 Implement acts to control losses.
 Use employment law for making positive relations with employees.
 Hire legal member or any agent to reduce conflict positions (Ye and et. al., 2011) .
P5 Justification for legal solutions
The above analysis gives an idea of positive and negative impacts of becoming a limited
company. If the clients wants to shift from sole trader, they have to bear the burden of the
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process, but it will provide them an asset of to expand their business effectively. On becoming a
limited on it will give them an opportunity to get more investors to invest their business also they
will be able to reach more consumer.
It is better to shift from sole trader to a limited company the client will meet up to their
expectations (Alternative dispute resolution (ADR). 2017) .
P6 Recommend legal solutions based on country
Business laws are playing very eminent role in overcoming business problems by taking
corrective measures such as; enacting necessary norms, policies, rules and regulations. Their
main objective is to create a nation free from exploitative activities by satisfying the needs of
entire society. Country Pine is sole trader organization whose main objective is to design
qualitative furniture for gaining maximum benefits. Thus, company is going to expand their
business across international boundaries in order to generate more or more profits by running
their association in much appropriate manner (Pepper v Hart (1993, HL). At the same time,
number of employees are getting hired for handling distinct outlets which was from various
backgrounds due to which maximum chance of conflicting situations get emerges. It means,
disputes are arising at workplace while accomplishing business activities. Therefore, an
organization needs to adopt suitable method for resolving various conflicting situations. ADR is
one of the most appropriate tool that is used by company for improving the company
performance by minimizing the various conflicting situations (Fisher v Bell (1961) . Beside this,
some of the major element of this tool are ; negotiation, mediation and arbitration. An
appropriate discussion of these methods are discussed as follows:-
 Arbitration:- Professional member is going to hire while using this method in order to
get aware about the necessary terms and conditions of legitimate bodies. Their main
objective is to resolve the problem in most suitable manner by considering necessary
facts or figures. Their main objective is to build the image of an enterprise at marketplace
by hiring specialist person for eradicating various business issues and problems. Along
with this, an individual needs to take care of all the steps and procedures while using this
technology at workplace in order to reduce the possibilities of mistakes (Adler v George
(1964) .
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 Negotiation:- As per this component two members are coming closer with each other
fior getting involved in a healthy conversation with other individual for clearing all the
hidden facts or figures. In this method there is absence of any third party and parties can
resolve the problem by themselves in an appropriate manner (Royal College of Nursing v
DHSS (1981, HL) ,
 Mediation:- Mediator is involving in this technique for passing the information from one
member to another for clearing the doubts. Basically, in this tool single person is hired
for acting on the behalf of both the person and expressed the terms and conditions in front
of the parties. Hence, a single member or any agent might get involved in this for
resolving the conflicting situations which is taking place at workplace.
Hence, it has been understood that all the above factors must considered while resolving
conflicting situations in a defined time period. Thus, arbitration is most prominent technique for
resolving the conflicting situations (Smith v Hughes (1960) .
CONCLUSION
From the above report it has been summarized business laws are playing very eminent
role in protecting innocent people from getting exploited and missed. Along with this, legitimate
bodies are designing numerous of relevant laws and orders which is applied at workplace for
resolving distinctive conflicting situations. Hence, it has been understood that company needs to
adopt various policies, laws and orders to accomplishing distinct business activities in effective
manner. Thus, some of the major acts which was covered in this reports are ; employment law,
consumer protection act and so on. Apart from this ADR is also used in this project for resolving
major contentions which might occurred while working in a team.
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REFERENCES
Alix Adams Books
Pepper v Hart (1993, HL)
Fisher v Bell (1961)
Adler v George (1964)
Smith v Hughes (1960)
Royal College of Nursing v DHSS (1981, HL)
Sweet v Parsley (1969, HL)
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.
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. McGraw-Hill Education.
Crane, A and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive advantage.
American Business Law Journal. 47(4). pp.727-794.
Eren, S.S and et. al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Foss, N.J and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L., 38, p.405.
Kinicki, A and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.Swartz, L.B., Cole, M.T and Shelley, D.J., 2010.
Instructor satisfaction with teaching business law: Online vs. onground. International
Journal of Information and Communication Technology Education (IJICTE). 6(1),
pp.1-16.
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.
Online
Alternative dispute resolution (ADR). 2017. Available through
<https://www.citizensadvice.org.uk/consumer/alternative-dispute-resolution/settling-
out-of-court/>.
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