P4 Explore how different types of business organisations are legally formed

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of law and laws.....................................................................................1
P2 Role of government in law-making and how statutory and common law is applied in the
justice courts...........................................................................................................................3
P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business...............................................................................................4
P4 Explore how different types of business organisations are legally formed.......................4
P5 Covered in PPT.................................................................................................................5
P6 Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support...........................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Laws acts as an most essential element for an organisation as it effectively help entities to
perform their work within governmental limits along with safeguarding company from any
fraudulent indulgence. Major advantage that can be gained by business organisations to abide
legal laws is to offer satisfaction to customers while gaining profitability without any fear to be
penalised. It further aid them to operate business operations in smooth, effective and continuous
manner (Bagley, 2010). Thus, it becomes essential for business organisations to follow rules and
regulations in well-defined manner as to initiate, manage and operate business in best effective
manner. In this present report, formative discussions has been made on, concept of legal system
and its impact on business. Along with this, creation of different form of organisations along
with most suitable legal solutions in order to resolve disputes are also discussed in this report.
TASK 1
P1 Different sources of law and laws
There are numerous form of laws within English Law that are framed by European
Government and are mandatory to abide by all those organisations who come under required
category. Thus,n it is essential for all organisations to follow and implement laws in well defined
manner as to minimise risk related to fraudulent activities within a market place. In addition with
this, it has been evaluated that major reason behind these laws is to protect the right of
individuals from being get exploit. Furthermore, negligence of these laws may lead towards
situation of many wrong practices that further impact upon business organisations, sellers and
buyers. There are two distinguished segment within which English legal system are defined that
are, Criminal and Civil laws. Mentioned below there are defined discussion made from many
aspects:
Criminal Law: It is mainly a legislative body within which there are many implications
of criminal acts. Criminal law is far distinguished from civil law as in this there are penalties in
context with forfeit of person rights along with imprisonment. In addition with this, one more
reason that differentiate criminal law from civil law is that in civil law, solutions of issues are
there and loss occur in terms of money. In addition with this, there are numerous set of theories
that effectively reflects reason behind implications of criminal law system. Some of that theories
include, provide retribution for act, reform the perpetrators, prevent further crime and dissuade
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crime. Along with this, there are mainly two form of criminal laws that include, felonies and
Misdemeanors. In this, Misdemeanors are termed as those offense that are mainly consider in
within criminal offence of lower level such as, minor assaults, traffic rule breaks petty thefts.
These crimes have punishment for penalty for one or less than year. In addition with this, felony
include, criminal offense in terms of, robbery, arson, dealing drugs, murder and rape.
Civil Law: Civil law s mainly a body of rules that include those provisions which is
related to safeguard rights of citizens along with providing legal correction that are required in
dispute in addition with this it covers area of laws that are, family and property law, torts and
contracts. Major reason for implementing criminal law is to effectively resolve disputes and offer
accurate and required compensation to injured individuals those who get affected via some acts
or behaviours (Kinicki and Kreitner, 2012). In addition with this, major purpose of this law is to
disallow unwanted behaviour and impose punishment to those individual who get convicted in
an act that are undesirable in society.
As per the above discussion it has been evaluated that both criminal and civil laws are
different from each other in many terms but have same motive which is to decrease the level of
fraudulent practices in market-area with the help of numerous laws. In addition with this, some
major origin of laws that perform important role in a international market place are described
below:
Case Law:
There are different types of misinterpretations and activities that occur within community which
can further acts as a major reason for
Custom:
This is an oldest law source of law as in ancient time period, as in that period of time
there were various form of social relations that lead towards raise in utilization of traditions and
customs. For this, laws within this are undertaken in order to settle issues.
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P2 Role of government in law-making and how statutory and common law is applied in the
justice courts
In every country government plays very major and important role as they formulate
various rules and laws for managing different things in an effective manner. In addition to this,
for making any law or passing any act, members of general assembly get involved in this. In the
whole session of a parliament, a single agenda is taken which later on become a bill and then the
speaker read it in the front of all the members. There is a six stage process where an act is
successfully framed as well as enacted. All these stages are explained below in detail:
 First Reading – In the first stage, any kind of idea for modifying current act is written
down, which is known as a bill now. Then this, bill will get printed and then read in front
of every member in the Chamber where it is introduce for the first time.
 Second Reading – Under this stage, members of parliament debate on the idea of
generating or modifying the current act. After all the discussion a result is announced
whether the bill is going to progress or not.
 Committee Stage – In the committee stage, bill is studies in detail and carefully analysed
by every member. Along with this, committee members decides to hold a hearing session
where various peoples come and comment about the bill. People who gets involved in
this stage plays very essential role (Grundfest, 2010). Along with this, group of different
people consist of members from police department and solicitors.
 Report Stage – Under this stage, the committee members report the bill to the chamber
and then members of parliament debate on it. This time, effective and proper
amendments take place with the help of proper debating procedure.
 Third Reading – It is now the stage where bill is called for third reading. In this stage,
bill is re-proposed for further discussion. Sometimes, members change their mind about
the bill. If the bill passes in third reading, the bill to other Chamber and follow the same
procedure.
 Last Stage – It is the stage which is popularly known as Royal assent and is required in
order to make a bill into an act. Also, it is the last stage, where queen has the power to
accept as well as reject the bill before implementing it and make it a compulsory law.
give her consent related to the bill before it become an law.
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P3 Using specific examples illustrate how company, employment and contract law has a
potential impact upon business
There are different types of laws that are laid down by governing bodies and are required
to be abide by each and every organisation. Mentioned below law in relation to employment,
company and contract are defined below along with its impact on business:
Health and Safety law: In this employment law it is important for organisations to
implement proper health and safety measures in well-defined manner in order to ensure
employees safety. In addition with this measures related to, medical facilities equipments and
first aid kid are essential to be in workplace.
Equal Remuneration Act: It is basically a encouragement and motivational tool with the
help of which employees can be easily motivated. Thus, organisations are require to consider
equal remuneration within their work structure as to facilitate equal and fair treatment for all and
provide peaceful work environment.
Offer and Acceptance: In order to facilitate, contract agreement in best effective manner
two or more than individuals are require, in this one is responsible to offer and other is to accept
that offer. In simple terms it is contexted with exchange of commodity for some value.
P4 Explore how different types of business organisations are legally formed
There are different types of business organisations those who perform their operations in
well effective manner towards a common purpose with a motive to gain high profitability.
Mentioned below there are different type of business organisations that are defined below in
brief:
Sole Proprietorship: Organisations those who perform their business functions in a
individual manner. In this owner is termed as an sole proprietor and they are sole responsible for
expenses, debts and profit. In order to initiate a business start-up in sole proprietorship cost
incurred is mainly low. Apart, from this within this form of organisation there are less legal
liabilities and hold drawbacks within which debts and complication to raise funds are covered.
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Partnership: In this form of business organisation there is an partnership agreement
within two individual those who agreed to conduct business in a combined manner while having
sharing responsibility towards profit and loss. In this business organisation profit and loss are
shared as per according to ratio that are predetermine in partnership agreement. Along with this,
there are numerous set of drawbacks within this form of business organisation that include,
liabilities related to assets and find best possible partner.
Corporation: It is a form of business organisation in which there is a existence of
separate legal personality from owner. In this owners( stockholders) have limited involvement
within organisation operations with having right to enjoy limited liability. In addition with this,
board of directors who are elected by stockholders are responsible and authorized to control
corporation activities.
P5 Covered in PPT
P6 Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support
There are legal solutions with the help of which Alex can effectively deal with Mr. Ali
new owner of butcher shop. As per according to current case scenario, Alex run Dormitory
Hostel which get disrupted by Mr. Ali new owner of butcher shop. Thus, with the help of some
certain legal norms further advantages can be effectively undertaken. Mention below there are
some formative business solutions with the help of which numerous form of disputes can be
effectively resolved:
Negotiation: In this, individuals who are engaged in conflict are made to interact with
each other in order to clear any doubt and issue this further lead towards resolvent of issue and
conflict situation in smooth and effective way. Negotiation proves to be effective for small scale
organisations as in this there is a requirement for less fund to hire legal member. Thus, this
method will prove very beneficial for Alex as he is sacred for complications related to time and
fees. As in this Alex can also save time because in this time can be effectively save due to
absence of third party.
Mediation: In this method, association transfer needs that are related to resolving issues
to a experienced parties. In mediation, third party involvement is there who holds efficiency and
skill to solve issues and conflicts that are faced by organisation.
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Arbitration: In this method, organisation hire professional and legal member to clear
issues in an effective way. As in this, professionals effectively understand every aspect in well-
defined manner. Thus, as per Kinicki, A and Kreitner, R., 2012according to this, organisation
hire skilled and professional individual who hold formative experience as to resolve conflicts in
best effective and in timely manner. Mentioned below there are two type of arbitration ad hoc
and institutional:
Ad hoc arbitration Institutional
In this, designing of administration, procedure,
regulations are done by authorities namely,
DIAC, ICC, DIFC and LCIA.
In this, each and every association hold
formative authority in which they are
authorised to provide framework in order to
administer entire procedure in their own way.
Ad hoc arbitration is competitively cheap and
fast.
Due to numerous form of rules and regulations
institutional method is more expensive and
slow.
As per the above mentioned evaluation it has been said that, Alex are required to take
advantage of ad hoc arbitration in order to resolve conflict (Foss and Knudsen, 2013). This
method will effectively prove effective as in this there is a requirement of less fees and time.
Thus, with the help of this method Alex can overcome situation of conflict with Mr. Ali in
effective manner.
CONCLUSION
As per the above mentioned report it has been concluded that, law acts as an significant
factor that facilitate functioning of business organisations in well-defined manner. UK
government imposed different types of English laws which are required to be abide by each and
every organisation who falls under that category. Thus, with the help of business laws resolution
of conflicts and reduction in fraudulent activity can be easily undertaken.
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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.
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., Kinicki, A and Kreitner, R., 20122013Foss, 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/>.
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)
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