Law for Business Manager

This document provides insights into the law and regulations that business managers need to consider. It discusses the different types of business organizations and their advantages and disadvantages. It also covers employment status and the criteria for patenting under the Patent Act 1977.

Law for Business
Manager

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Consider the most appropriate business mediums for the following clients:..............................3
A. A group of 20 architects who wish to establish a small business to attract property
developers....................................................................................................................................4
B. Three friends who have just qualified as beauticians............................................................5
C. An up and coming musician...................................................................................................5
PART 2............................................................................................................................................5
Advise Taran of his employment status at law? Consider why this is important in your answer
.....................................................................................................................................................5
PART 3............................................................................................................................................7
What criterion needs to be satisfied in order for a patent to be granted and what are the key
advantages and disadvantages of patenting an invention under the Patent Act 1977?................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Law for business manager can be defined as the law and regulations which is required to be
considered by the manager of a company. It is also necessary that the person who has been
assigned the post of manager must have certain knowledge regarding laws and policies as it will
allow to make fair decision. Any of the decision taken by the manager has a direct impact on the
overall performance of an entity. In context of the report, it has been categorised into three part.
While discussing about first part, major focus will be on several types of business organisation
and what types of organisation can be selected by the client. The part two will contain the detail
information about self-employment and employment law. Question will be based on the given
case scenario which related Taran and Sleek Driving Ltd. In third part, discussion will relate that
how any of the person can be register any of the patent where major consideration will be on
Patent Act 1977.
PART 1
Consider the most appropriate business mediums for the following clients:
In present scenario, there are different types of business organization which can be
practiced by the investor for investing the money so that revenue can be generated. It is essential
in any form of business that proper guidelines must be followed and if in case, it is not being
done then legal actions can be taken upon that particular firm. In recent period of time, different
concept has been introduced which has been helping the small investor to invest their capital
with in the business organization where legal formalities are very rear. Below, several types of
business entity has been discussed in detail.
Sole Trader: It is defined as the form of business where work related to entity is to be
performed by management themselves. Here, involvement from outsiders are not acceptable. The
main concept to introduce the concept of running the business by single person was simple as
just to attract more number of investor where they can perform the business activity by
themselves. This types of business are easy to perform and even chances of accomplishing the
goals in it increases automatically (Rosenbloom, 2018). When it comes to the paper work, very
few criteria which is required to be fulfilled which allows the commencement of work in easiest
manner. There are number of benefits as well which can be obtained such as low amount of
investment, no requirement of conducting meetings and preparing the annual accounts.

Partnership Firm: It is form of organization where group of people are required for
performing the business activity in a systematic manner. At least member should be there to
commence any of the partnership firm. Here, work is required to done as per the guidelines of
Partnership Act. This types of business are also easy to perform with less number of requirement
which simply allows to accomplish the goals within the specific time period. It is also mandatory
that whenever any of the partnership firm is formed, partnership deed should be prepared which
helps to distinguish the work among partners (Agarwal, 2018). There are number of benefits
which can be obtained by the partners after the commencement of firm such as formation fees is
very less. The requirement of paper work is also nil which creates less burden on investor. But,
liability is never limited in it which creates problem for partners in some of the case.
Private Company limited by Shares: These are the form of business where proper team
is required who can handle all of the work in a systematic order. It is essential to understand that
proper guidelines of Company Act 2006 must be considers else there are various penalties can be
imposed. The main purpose of commencement of this form of business is simple as company is
willing to get legal existence and wants to perform business at a greater platform (Hansmann and
Kraakman, 2017). There are certain restrictions in it such as shares cannot be transferred to
outsiders in any of the circumstances, annual accounts must be prepared and many more. Some
of the major benefits which can be obtained by investors is that their liability will be limited and
company will get the rights to sue and be sued on their personal name.
These are some of the form of business organization where roles and responsibilities are
different in each form of business. The main thing which is necessary to be considered in this
types of business is that guidelines should be considered properly for attaining the goals.
A. A group of 20 architects who wish to establish a small business to attract property
developers.
Here, in this respective situation, a group of 20 architects are will to establish small form
of business for attract new property developers so it will be necessary for them to go with the
idea of Private Company limited by share. It is because, property related business are to be
performed at a greater platform where huge amount of fund is required and work is also needed
to be managed systematically Goshen and Squire, 2017). The main thing which they will
consider at the time of formation of private company is its guidelines to commence the business.

Firstly, group will require to identify about the name of a company which should be identical in
itself. There will be the requirement of preparing Memorandum of Association as well as Article
of Association. Final, documents must be submitted to Companies House with registration fees.
B. Three friends who have just qualified as beauticians.
In this respective situation, the investors are new and they had just completed their course
of beautician. It will be important for them to understand that as they have small team with less
found, the appropriate option will be Partnership firm. It will be necessary to understand that
whenever any of the investor are new and have less experience in any of the specific field, then
option of partnership can be helpful for them. In order to start any of the partnership firm, it will
be important for them to obtain HMRC and deed should be prepared. And other basic
requirement of Partnership Act must be followed for attaining the goals.
C. An up and coming musician.
It is that particular situation where investor is along who is willing to perform the
business activity. Here, no profit sharing option is available so it will be better for the investor to
take the help of sole trader to commence the business. The commencement of sole trader will
create less burden for musician because less number of legal activities will be required to be
followed. Secondly, there will not be any of the requirement of paper work (Dodd, 2017). To
commence sole trader, it becomes the responsibility of musician to obtain the National Insurance
number along with HMRC. Completion of this two documents will allow the musician to start
the business activity in a systematic manner through which goals can be accomplished easily
within the specific time period.
PART 2
Advise Taran of his employment status at law? Consider why this is important in your answer
Case Scenario: Here Taran notices the Job adverts where Sleek Driving ltd was willing
for a self-employed for carrying out the goods. For self-employed, clean driving license and
personal vehicle should be there and there will not be any of the pressure regarding the work.
Looking at the scenario, Taran enters into the contract with Sleek Driving Ltd. Here, Taran was
not happy because job advert was misleading the guidelines because there was the rule that 30
hours of work is mandatory, even uniform is compulsory where log of Sleek Driving Ltd should
be there.

Employment law: It is the legal law formed by the legislative body of UK, where it is
necessary to understand about the relation which is required to be maintained by employer and
employee. In any of the circumstances, both of them are not allow to breach the law as legal
actions can be taken. It is among one of those law which simply provides the guidelines that how
any of the employee and how any of the employer should work within the premises of
organization (Peterson, 2018). Here, certain amount of work is given to the employee which they
are needed to perform for which fix amount of wages are to be paid. In any of the circumstances,
employees do not have the right to work for less time period which has been mentioned with the
contract paper. Also, it is essential for employer to guide their employees that what are the work
which they must do and how that is required to be performed.
Self-employed: It is the state where person works for themselves rather working for the
employer. Here, way of working style is generally selected by themselves only and find the best
suitable of performing any of the activity. Self-employed are also known as independent
contractors where they directly contract with the business entity to earn the profit. In this from of
contract, it becomes the liability of contractor themselves to pay the taxes and introduce all of the
essential products or services which are required for performing the work. It is necessary to
understand that this types of people do not fall under the category of employment law, so there is
no requirement for them to follow any of the order related to employment law (Allen, Kraakman
and Subramanian, 2016). Also, different benefits which are being provided to the employees will
not be provided in it. In any of the situation, company or contracted party is not able to force
self-employee to work as per the criteria of employment law.
Contact law: It is the law which plays the essential role at the time of performing any of
the contractual work. It is necessary to understand that whenever any of the party enters into it
they must follow all of the terms and condition and if they fail to do so then legal action can be
taken. In the given case scenario, it was found that Taran was entering into the contract with
Sleek Driving Ltd with the clause of self-employed. Here, self-employed will be able to work as
per their willingness and even there will not be any of the restrictions in it.
Breach of Contract: It is the situation where any one of the party do not perform their part
of work due to which agreed contract cannot be competed on specific time period. Here, legal
actions can be taken upon the defaulter (Gielnik, Zacher and Schmitt, 2017). Here looking at the

scenario, it will be crucial for Taran to understand that Sleek Driving Ltd has breached the terms
and condition of the law.
In short, Taran can easily consider all of this laws and regulations for making clear to Sleek
Driving Ltd that they must not force him to compete specific time period of duty as it was not
written within the contract or job advert. Here, Breach of contract can be easily seen and legal
actions can be taken by Taran against the company. If he does not do that, then h has the right to
claim for the employee benefits as he has been forced to follow some of the essential rules and
regulations which can create issues for them. Also, his employed status as per law is self-
employed where company cannot bind Taran to follow any of the specific law which falls under
the category of employment law.
PART 3
What criterion needs to be satisfied in order for a patent to be granted and what are the key
advantages and disadvantages of patenting an invention under the Patent Act 1977?
Patent Act 1977: It is defined as the law which simply forms an intellectual property which
allows the real owner to get the legal rights to execute other from making, using, selling as well
as importing an invention for the certain time period. It is that particular law which deals with
any sort of new invention which can be beneficial for the public at large. Once patent is
registered, it gives the right to inventor to sell their products or invention for certain time period
i.e., 20 years (Alexander, 2019). It is essential to understand that there are certain criteria which
is required to be fulfilled and then only rights can be provided related to patent. Below, there is
the discussion about the basic criteria which is required to be fulfilled to ensure that invention
can be registered as legal patent.
 The basic criteria are that the invention must be new. In any of the circumstances, the
invention should not have been made publically before the date of registration within the
UK Intellectual Property Office.
 In any of the condition, the similar form of invention must not have been published in an
of the place.
 It is one of the confidential information which means that if any of the patent then they
must be able to ensure that information has been not shared before the date of obtaining
the patent rights.

 There must the involvement of invention step which plays the most crucial role in it. In
simple words, patent should not be of that type where something about the invention is
known by others (UK Patents - The Basics, 2018).
 The inventions which are being made by any of the specific person should be aware that
it must be helpful for public, any of the industry which must include agriculture and
many more.
These are the basic criteria which is required to be meet out within the premises of UK. It is
also necessary to understand that in any of the circumstances, the invention should not be similar
with previous invention as that will not be counted as an invention. This types of invention will
fall under the category of upgradation of technology or invention due to which giving the patent
right is not possible in it. Also, the patent which is registered within UK is applicable for UK
only and if in case, patent is required for worldwide then certain number of additional form must
be filled.
There are certain benefit and detriments which can be seen while patenting the invention as
per the guidelines of Patent Act 1977 which has been categorised below in detail.
Advantages
 The first thing which an patent person can get is that, it will easily give the right to stop
any of the other person or organisation to company, manufacture or even sell the product
without obtaining the legal rights.
 Protection can be provided for certain time period which simply creates problem for the
rivalry firm or the people.
 Once Patent is registered, it grants the power to use the invention for obtaining different
benefits.
 As license can be provided to other people or organisation to use the invention where
certain amount of fee can be charged which can easily allow to generate huge amount of
revenue for the future time period (Get patent protection for your business, 2019).
 Rights are provided to the person to sue the one who is using the similar form of
invention without obtaining the legal rights.
Disadvantages

 Although, rights of patent is provided but still the technologies and other useful
information which has been used for the process of invention is required to be disclosed
which might not allow to keep secrets.
 It is one of the time consuming process where huge amount of capital is required. In
short, time period of three to four year is required to register the patent rights.
 Also, many of the people are capable of inventing something new but due to the lack of
resources and fund, it is not possible for them to register as a patent right (Johnston,
Segrestin and Hatchuel, 2018).
 Annual fee is required to be paid and if fails to do so then patent may lapse.
These are some of the major benefits and drawbacks which can be seen within the Patent Act
1977. It is essential to understand that although invention process is not an easy task but in the
same manner even having the registration under patent act is also not an easy task.

CONCLUSION
After having the detail analysis in the report, it can be easily concluded that law for business
manager is helpful for performing any of the business activity. It is necessary to understand that
there is different form of business entity but it is crucial for investor to invest their capital as per
their own willingness. Small from business requires less amount of capital and on the other side
huge capital is required within Corporation. Employment law and self-employment are two
different terms in which employees are bound to work as per the requirement of employer but on
the other side self-employed types of person cannot be forced to do any of the specific task for
attaining the goals of a company. Both, employee and self-employed has different form of
working style. Patent Act is among the important act which allows to provide rights to the people
who introduced something new for the first time and which can help to earn certain amount of
revenue in future time period.

REFERENCES
Books & Journals
Rosenbloom, D. H., 2018. Administrative law for public managers. Routledge.
Agarwal, A. K., 2018. Business law for managers: Kaleidoscopic tales.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate
governance (pp. 49-78). Gower.
Goshen, Z. and Squire, R., 2017. Principal Costs: A New Theory for Corporate Law and
Governance. Colum. L. Rev., 117, p.767.
Dodd, E. M., 2017. For Whom are Corporate Managers Trustees?. In Corporate Governance
(pp. 29-47). Gower.
Peterson, E., 2018. Empowering Business Policy & Strategy through Improved Collaboration
between Managers and in-House Counsel. Atl. LJ, 20, p.225.
Allen, W. T., Kraakman, R. and Subramanian, G., 2016. Commentaries and Cases on the Law of
Business Organizations: 2016-2017 Statutory Supplement. Wolters Kluwer Law &
Business.
Gielnik, M. M., Zacher, H. and Schmitt, A., 2017. How small business managers’ age and focus
on opportunities affect business growth: a mediated moderation growth model. Journal
of Small Business Management, 55(3), pp.460-483.
Alexander, E. A., 2019. Whither our future global managers? The moderating effect of
organization context on ethical intent in international business.
Johnston, A., Segrestin, B. and Hatchuel, A., 2018, July. The Separation of Directors and
Managers: A Historical Examination of the Legal Status of Managers. In Academy of
Management Proceedings (Vol. 2018, No. 1, p. 12831). Briarcliff Manor, NY 10510:
Academy of Management.
Online
UK Patents - The Basics. 2018. [Online]. Available Through: < https://www.mewburn.com/law-
practice-library/uk-patents-the-basics>
Get patent protection for your business. 2019. [Online]. Available Through:
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-getting-patent