Promoting Corporate Expansion through Legal Compliance

The provided assignment focuses on promoting corporate expansion by considering necessary facts or figures. It emphasizes the significance of applying various norms, rules, and regulations while running a business. The report aims to support organizations in expanding their operations while adhering to legal requirements. Key employment acts such as equal remuneration and minimum wage act are mentioned for employees' protection, along with consumer protection act for clients.

Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1 Various sources of law...........................................................................................................3
P2 Role of Government in Law Making.....................................................................................4
Task 2...............................................................................................................................................5
P3 Effect of employment and contract laws on business............................................................5
Task 3...............................................................................................................................................6
P4 Solutions regarding business problems..................................................................................6
P5 Justification of legal advice...................................................................................................6
P6 Solu8tions for dispute...........................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9
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INTRODUCTION
Business laws are the spine of generating a new business. If someone wants to initiate a
business then he has to comply with the laws related to it. These laws includes Contract laws,
Employees Laws, Consumer Laws, etc. Business Future is an organisation which helps in setting
up of start-ups and the expansion of business of already settled one. Country Pine is one of its
client, who wants to expand their business and are in need of consultancy. For now they are
working as sole trader and they want to become a limited company in order to earn more profits.
The report includes various business laws and the suggestion to Country Pine, for the expansion
of business, it deals with certain disputed matter and its solution (Kinicki and Kreitner, 2012).
Also it provides solution for the conversion they are going through of becoming a limited
company from a sole trader.
Task 1
P1 Various sources of law
Laws are made form various sources. Generally it originates from the needs of the citizen
of a country (Bagley, 2010). In United Kingdom there are basically three significant sources of
Laws, European Law, Parliamentary Laws and the Courts. The legislature and EU are the
primary sources and the courts are the secondary source of law.
European Law came into existence from 1973, it is originated from treaties, regulations,
directives and decisions. There are certain treaties that provides the sources of making European
Union. In order to regulate the uniformity of law certain regulations are to be followed. As
discussed above, EU are the primary source of law making, it is necessary to know certain facts
about it. EU laws are the part of UK under European Communities Act 1972, it is consist of the
Council of Ministers, European Commission, European parliament and European Court of
Justice (Royal College of Nursing v DHSS (1981, HL).
In order to start an organisation, the members have to follow the process of constructing a
company. There exists two sectors in which an organisation can be established, private and
public. Here Country Pine's motive is to become a Limited company, so they are dealing with the
private sector.
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Also there are certain types of partnerships in an organisation, limited , unlimited and
limited liability partnerships. Each has their own classification. As per the given case the client
wants to expand there business, for that they have to get incorporated under Companies Act.
According to it, for incorporation the members have to follow some procedure such as there must
be a Memorandum of Association, which brings out the information of the capital and
shareholders of the company. Then comes Article of Association, which is necessary for
regulating the function of an organisation, t is comprise of the rules and regulations, rights and
liabilities of its members (Pepper v Hart (1993, HL).
In the given case Country Pine wants to expand their business so they have to follow the
procedure of incorporation. Also they need to get the company register by he Registrar of the
Companies, without his certificate the expansion is not a legal one, and the organisation will not
be able to do authentic business.
P2 Role of Government in Law Making
A government not only includes a legislature it is also consist of Executives and
Judiciary, they all work as whole for the governance of a state. Laws are the back bone of a
civilised society it also gives meaning for whatever a man is performing. There is process of
initiating a law, which includes all the bodies of government. The legislature is important for
initiating a bill. A bill is of three type, Public, Private and Hybrid Bill. A public bill is such
which directly affects the interest of public. Private Bill is mostly affecting the interest that are
vested in an individual. The last one which is Hybrid, is a public bill which influence the interest
of an individual or group of individuals (Fisher v Bell (1961).
A bill is presented in the house of commons in its first reading also considered as
initiation process of introduced bill. In the second reading discussion or debate related to the
facts of bills are conducting which brings out its defects, also on deciding upon passing of such
bill. After the bill is passed it is studied well in order to remove any defects that has been left, in
its reporting stage. In the third reading process, it is decided b the members of house of commons
to amend such bill or to continue as it is. After passing from the house of commons it is then
presented for the Royal Assent, it is all depend upon the Queen to pass the bill or reject it. After
her consent the Bill becomes an 'Act of Parliament'.
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Task 2
P3 Effect of employment and contract laws on business
Employment laws are the result of historical events that was directly related to slavery, in
order to abolish bonded labour and slavery it was necessary to provide an employee his rights
when they are working under an organisation (Bodie, Kane and Marcus, 2014). Employment
Laws are related to the rights provided to an employee, in the course of his employment. There
are certain elements of emp0loymennt laws, such as, there exists a contract of employment, an
employee's rights at work, i.e. protection against discrimination, dismal and redundancy. An
employee has to work according to the instruction of his employer, but he cannot be ordered to
work against the laws (Crane and Matten, 2016).
A contract is the basic element of performing a business obligation. It is binding upon a
party to exercise e their duties according to the agreement. A contract is an agreement which is
enforceable by law. But it is essential to comply with the elements of a valid contract. A contract
is form by an offer to which an acceptance is made with a consideration. It is necessary that there
must exist an intention to the contract, also the acceptance should be without any inducement.
For a valid contract a consideration must not prohibit the provision of laws. Also, the objective
of a contract should not be unethical.
In the given case Country Pine, is in process of expansion, so it will increase their
workforce and to face such situation it is evident that the organisation is going to appoint
workers. But they are confuse regarding their designation. The question is regarding whether the
workers appointed are self-employed or an employee to the company. According to the recent
case of Uber taxi, Aslam v Uber BV, it was decided that a worker is an employee so, they are
entitled for minimum wages and sick leaves, also as per section 230, sub-clause 3 of
Employment Rights Act, 1996 a worker is such person who has made contract of employment
with an organisation (Smith v Hughes (1960).
So on the appointment of new workers Country Pine is obliged to follow the rules and
regulations as decided by the law making bodies.
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Task 3
P4 Solutions regarding business problems
It is a futile process to start or expand a business. It is essential to know the problems,
which is faced during the functioning of any business (Grundfest, 2010). There are certain
elements which renders the smooth functioning of an organisation, such as, technology,
performance, financial management, reputation, appointing right people for the job, etc.
Being a sole trader exercising the function of an organisation is lot more easier than
becoming a limited company. But there are certain perks of converting into a limited one, such as
responsibility of paying out sanding amount or debts are not only over an individual and loss
incurred is fulfilled by the partners of the company, unlike of an unlimited partnerships. But, the
limited partnerships are trailed by some liabilities such as fiduciary duties of a Director, to file
annual returns (Adler v George (1964).
If the client wants to expand his business they have to go under the process of
conversion, which is a bit futile, but it also provides some advantages. A limited liable company
has an advantage of paying taxes, which is of very low cost unlike sole trader, the burden is upon
an individual.
P5 Justification of legal advice
From the above discussion the client wants to shift themselves from sole trader to a
limited one. It is better to do such change as it will provide them a great opportunity to explore
the competition in market also it will increase their profits. If the members made up their mind
and are ready to face the futile process of such change then this decision is evident.
It will give an asset to the business for becoming a professional one, which would help
them in attracting investors and customers (DiMatteo, 2010).
P6 Solu8tions for dispute
As per the given scenario Country Pine, a sole trader, wants to covert themselves into a
Limited Company. There are certain positive and negative effects of being either of these two.
Alternative dispute resolutions is all about resolving conflicts of two parties which are involving
in a conflicting situations with the help of third party (Sweet v Parsley (1969, HL). Their main
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objective is to clear all the misunderstanding of various members of an organization. This tool is
highly beneficial for corporate world while running a business entity because it aids in
controlling maximum possibilities of disputes (Alternative dispute resolution (ADR), 2017). In
fact ADR get succeeded in acquiring widespread acceptance in general public as well as legal
profession by taking support from third or professional party. Basically, usage of this approach
get increased day by day due to the emergence of high range of complex cases in traditional
courts. Beside this, number of other elements are also identified in this strategy which is used by
various members as per their need or requirement. Mediation, negotiation and arbitration are
falls under ADR methods to resolve the various doubts and issues which might occurred at
workplace. Thus, essential features of several tools are discussed as follows:-
 Negotiation:- According to this element both the parties are coming closer to each other
for involving in a healthy discussion in order to clear all the doubts and issues in a
peaceful manner. Their main aim is to help themselves without acquiring help from
others in a minimum time period. Most easiest method of removing conflicting
situations from societal place and consume minimum cost (Eren and et. al., 2012).
 Mediation:- In this tool third party is getting involved for clearing all the doubts and
issues which might occurred between two distinct members whomsoever are having
misunderstanding between them while working in a team. Basically, most of the small
companies are adopting this method for resolving their organizational issues in official
manner (Ye and et. al., 2011).
 Arbitration:- As per this method an organization is going to hire professional or legal
member to resolve the official conflicts in most suitable manner because specialist
member is having accurate information about the necessary terms and conditions.
However, professional supports an organization in various ways such as; clear doubts in a
defined time period, understand each or every aspects, create a healthy connection with
employees and so on (Foss and Knudsen, 2013).
At last while analysing the ADR it has been understood that Arbitration is a most suitable
method which is must used by an organization while involving in a various conflicts because it
helps in controlling maximum chances of mistakes due to the involvement of professional
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bodies. Along with this, aids in clearing all the terms and conditions of legitimate bodies which
automatically enforced them to resolve unusual conflicts (Aslam v Uber BV, 2016 ).
CONCLUSION
From the above report it has been summarized that number of legal laws and norms are
designed by legitimate bodies in order to run an organization in much appropriate manner.
However, main objective of this report is to promote the corporations towards expansion process
by considering necessary facts or figures. Additionally, entire assignment consist of several acts
which is amended by governing bodies for employees as well as consumers are; employment act
like; equal remuneration, minimum wage act and consumer protection act for clients. Hence, it
has been understood that number of companies are coming at marketplace with distinct motives
which automatically promote the economy of a nation. Thus, entire project is supporting an
organization while running their business in correct manner by applying various norms, rules and
regulations.
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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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