Law for Business Managers

This report covers the identification of the most appropriate business medium for clients, employment status of Taran and its importance in the current scenario, and a description of the Patent Act 1977 along with its advantages, disadvantages, and satisfaction criteria to attain a patent.

Law for Business Managers

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Consideration of the most appropriate business medium for client............................................1
(a) Group of 20 architects who wish to establish small business................................................1
(b) Three qualified beautician friends..........................................................................................3
(c) An upcoming musician...........................................................................................................4
PART 2............................................................................................................................................4
Employment status of Taran and its importance in current scenario...........................................4
PART 3............................................................................................................................................5
Description of Patent Act 1977 along with advantages & disadvantages and satisfaction
criterion to attain patent...............................................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Laws are referring as standards for governing the activities or actions of individuals and
institutions within a nation or society. There are different types of law for effective regulation of
the various associated aspects with nation. These are known as criminal, civil, company and
contract law. The law that governs the actions of organisations is further known as business or
company law. This brings an obligation over the employer and manager that must adhere all
legal rules otherwise have to face legal consequences (Abo_Dalbouh, 2017). The main purpose
of business law is to safeguard the interest of other individuals and stakeholders who have any
kind of interest within an organisational activity. The main of this report is to study about the
different business laws that governs the action of organisations along with activities of employer
and manager.
This report has three different parts. Part 1 covers about the identification of best business
medium for clients. Part 2 includes the description over employment laws. In last, part 3 covers
about description of Patent Act 1977 along with advantages & disadvantages and satisfaction
criterion to attain patent.
PART 1
Consideration of the most appropriate business medium for client
Selection of right business medium is always important in accordance to the nature of
operations. This will provide the opportunity to work effectively in market along with sharing of
profits and risks. This also has effective contribution in attainment of business opportunities
present in market along with ascertaining the nature of liability. It further aid in building policies,
effective decision making and hiring personnel’s for performing work. Here, information is
provided regarding three different where recommendation is needed to provide regarding
appropriate business medium for them (Al Ali, Nasir and Dweiri, 2019).
(a) Group of 20 architects who wish to establish small business
A group of 20 architects wants to start their own business for the attraction of property
developers. In this regard, initially they think about the formulation of small company. In
accordance to the nature of operations, the option of small company formulation will be best for
the 20 group of architects. The detailed description regarding development and associated
benefits with small company is provided below:
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Small company: This is the type of organisation whose business operations are very less
and limited in nature or a new start up. The number of employees and annual turnover will be
less than 50 and 10.2 million pound. This can be of two types limited by shares and guarantee.
The organisation builds with the status of limited by shares has main business operations for
earning profit. On the other hand, the organisation with limited by guarantee has business
purpose of not earning profits (Bird, 2016). In the current case, the group of 20 architects needed
to start the small organisation with status of limited by shares. The features that they get from the
formulation of this nature organisation includes;
 Separate legal entity from the people who run it
 Separate finances of an organisation from the personal one of promoter
 Company has shares and shareholders
 Organisation will keep profits after paying tax
To formulate the legally binding organisation, the group has to follow the procedure or steps
mentioned below:
 Checking that setting up a limited organisation is viable or not
 Choose a name
 Selection of directors and company secretary
 Decide who will be going to shareholder
 Identification of the person who has significant control over organisational operation
 Preparation of documents as standard for running of an organisation
 Checking of the records need to keep
 Registration of company
The different benefits get by the group including legal from the formulation of small
company is provided below:
Separate legal entity: The company they formulate has separate identity. This will exist
as natural person where everything done on the name of organisation. This benefits in for
creating unique identity in market.
Limited liability: The group members have the limited liability to the extent they hold
amount of shares. This provision work as safeguard against market risks where they not
personally liable to pay organisational debts (Casey and et. al., 2017).
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Can sue or be sued on the name of organisation: In the any legal case, the name of
group members will not be used. The case will be registered on the organisational name.
Simultaneously, company has right to sue on own name to other without involving the name of
group members. The help to safeguard the personal image and standout as one unit within the
market.
Company source funds on its own name: Company exist as artificial natural person so
able to acquire funds on own name from the different sources. This will provide the opportunity
to hold large amount on the name brand equity.
Organisation own assets on self-name: The company can hold the assets on own
irrespective to any interference of members. This help to safeguard the interest of all
stakeholders and group members (Fallah, 2016).
(b) Three qualified beautician friends
Three friends qualified as beautician and wants to start their own business in market. They
are facing the difficulty regarding the selection of business medium on the basis operations
nature and market opportunities. It is true that before selection of the business medium,
necessary to research about operations nature, market in which they prevail, market opportunities
and risks, number of persons who want to start the business etc. In consideration to all the points
mentioned above, better for these three friends to start business by owing partnership
organisation within the market. This is so because initially limited market opportunities are
present against large number of competitors and many big names. Also, the team strength is low
where not able to invest high amount. There are number of benefits will be attained while
choosing the option of partnership to start business. All these are defined below along with
features of business medium:
Partnership: This is the simple way to start the business by two or more persons for the
purpose of accomplishing common objectives. This includes the agreement between the parties
to start business by agreeing over common objectives. They generally share the profit and loss
equally or in the ratio they decided within an agreement. There are four type of partnerships such
as general, limited, limited liability and public private partnership. UK partnership law is liable
for governing formation process of partnerships (Gladden, 2016). In respect to the current case,
general partnership is better to formulate by adhering the provisions of English law. The features
associated with this kind of partnership are presented below:
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 Agreement between the partners over common objectives
 No separate legal entity, knowing from the name of partners
 Allowing borrow funds from bank but on the name of individual partners
 Carrying business to generate profit
 Partners are jointly liable just as they own property in common
The steps which are must to adhere for the purpose of legal binding of partnership business
functions includes;
 Choose a name
 Selection of the nominated partner
 Registration with HMRC
(c) An upcoming musician
As upcoming musician want to start the business then better to formulate sole
proprietorship. On initial level, this requires low cost of investment and full return to owner. This
will also provide the opportunity to person in effective showcasing of their talent. It is best form
to adopt by single person to start business. The other related information to business medium is
provided below:
Sole proprietorship: This is the form of business that requires only single person to
carrying operations. This person is called as owner and have all powers for decision making
(Hazzan and Lis-Hacohen, 2016). The different features associated with partnership are defined
below:
 Single person as owner
 Whole liability is over single person against risks or debts
 Whole returns belong to single person
 Whole power to make own decisions
PART 2
Employment status of Taran and its importance in current scenario
Taran is self-employed and attracted towards Sleek Driving Ltd. against their job role offer.
After joining, many situations are start arising like work for minimum of 30 hours a week – if he
does not perform then not able to get work in the following week, not allowed to take time off
without checking with Sleek Driving Ltd, also has to wear a uniform with the Sleek Driving Ltd
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logo on it and regularly asked to come in for staff meetings to review his performance. In
accordance to the situations, it is clear that Taran is working for organisation and did not possess
the status of self-employed (Lu and Faure, 2016). The conditions which are needed to be fulfilled
for self-employment are provided below:
 They are allowed to put binds or provide quotes to get work on the basis of own needs
and requirement
 They not working under the direct supervision of any person
 They allowed to submit the invoices for the work they done for an organisation to get
payment
 They are responsible for paying their on national insurance and tax. This means the
organisation has not liability in this regard for any kind of breach.
 They work under the contract that known as self-employed, consultant or independent
contractor
It is clear from the comparison of above defined conditions and the instructions received by
Taran that did not possess the status of self-employed. Here, Taran is considered as part time
employee of an organisation (Knežević, Kurnoga and Šimurina, 2017). It is totally not fair with
Taran because he joined the organisation on the terms of advertisement which includes able to
work hours of your choosing and be responsible for your own NI and Tax payment. Now, he has
to work minimum 30 hours in a week otherwise not able to get the work on following. This
totally breached the condition mentioned in advertisement and clears that organisation misleads
the candidates for their joining within an organisation where Taran got trapped. In this case,
Taran have the legal right to sue against an organisation on the basis of misleading advertisement
about job roles and violating the conditions of self-employment.
PART 3
Description of Patent Act 1977 along with advantages & disadvantages and satisfaction criterion
to attain patent
Patent Act 1977
Patents are conceded to designers to give them elite rights to create and sell their thoughts
for a specific term of time. During this time span, the creator will be shielded from different
people or organizations selling or delivering their item. The designer won't just have selective
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rights to deliver it, yet they will likewise reserve the option to permit the plan to different
organizations to permit them to create the item under a permitting understanding. The patent
holder is given the option to control how their creation should be made, utilized, or sold in return
for revealing the subtleties of their item to people in general (Patent Act 1977, 2020).
The requirements covered under this Act includes for patent applications, process of
patent granting and the law relating to disputes relating to patents. This also provides the
information that how the UK law has relation with European Patent Convention and Patent Co-
operation treaty. The latest amendment in this Act was took place in year 2017 on October 1.
This was performed by Intellectual property (Unjustified Threats) Act 2017 (Mayer, 2017).
The main purpose of Act is to provide protection to inventor for his/her new invention.
This restricts other in market to use same for accomplishing their work without the permission of
actual inventor. Also, the restriction is made upon the copying of same invention. This Act
simultaneously provides the exclusive right to patent holder for selling of their invention up to 20
years. The main aim behind application of the provisions of this act is to provide safeguard to
inventor against to their new invention. This can be taken over on any kind of invention either
design, technology, service etc.
This Act also establishes a new law of licenses appropriate to future licenses and
applications for licenses; to revise the law of licenses material to existing licenses and
applications for licenses; to give impact to certain universal shows on licenses; and for associated
purposes. This is enacted by the Queen's most Excellent Majesty, by and with the counsel and
assent of the Rulers Spiritual and Temporal, and Commons, in this current Parliament collected,
and by power of the equivalent (Mishra, 2017).
Satisfaction criterion to attain patent
The patent is not ascertained by one. There are few conditions which are needed to justify
for qualifying to be patentable in nature. All these different requirements and conditions are
defined below:
Patentable Inventions
1 (1). For ascertaining a patent following conditions defined below are needed to justify;
 The invention must be a new one
 This must involve innovative step
 This is must needed to be capable for industrial application
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 The grant of patent will be done only if they are not excluded under the subsections (2)
and (3) or section 4A below
In relation to the references under this act for a patentable invention shall be further
constructed accordingly (Nedeljković, 2017).
(2). It is specifically declared in the act that following are not considered as inventions which
are defined below:
 A discovery, any scientific theory or a mathematical method
 Any literary, dramatic, musical, artistic work or any other aesthetic creation
 Any scheme, rule or method for the purpose of performing mental act, playing any game
or doing business, or a program for a computer
 The presentation of any kind of information
In any case, the previous arrangement will forestall anything from being treated as a creation
for the reasons of this Act just to the degree that a patent or application for a patent identifies
with that thing all things considered (OHAKA, 2018).
(3). A patent is never granted to the invention that whose commercial exploitation will be
contrary to public policy or against to the concept of morality.
(4). In relation to the purposes of subsection (3) mentioned above is not considered as
contrary to the public policy or concept of morality if prohibition is provided by any law in force
of UK or any part of it.
(5). The secretary of state has the power to vary the provisions of subsection (2) defined
above for the purpose of maintaining them in conformity with the developments in aspects like
science and technology. But, no such order shall be passed unless the draft of order is presented
before, and approved by resolution of, each House of Parliament.
Key advantages and disadvantages of patenting an invention along with the concept of
patent
There are many advantages and disadvantages are associated with the concept of patent
along with patenting of an invention. All the defined below in elaborated form;
Advantages
Exclusive Rights: Patent provides the exclusive right over new invention and excludes
the other from making, using, selling and importing. This does not allow anyone to create or
bringing out physical materials for further creation of the claimed invention. In relation to the
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process type invention, no one is allowed to perform the steps in same manner as patented by
claimant.
Sparks innovation: There is huge contribution of patenting an invention towards creating
the spark of innovation amongst other individuals of society. This motivates other to work in
direction of using innovative thoughts and ideas for creating a new invention that will be helpful
for a nation all over the world in performance of particular activity which is tough to do in
current time. This will be good for the business sector where help in strengthening their own
portfolios through creation of new inventions and attaining competitive edge distinct from other
competitors present in market (Rolleri, Nadim and Lussier, 2016).
Easily Commercialised: Patents are easy to be commercialise either by selling or
granting right to other party of its use. This is the effective feature where security not loses with
the attached patent can also be beneficial to others for completing assigned works in qualitative
manner. This has positive contribution in the development of society and nation through
improving the way of performing.
Disadvantages
Difficult to Acquire: The attainment of patent is not simple work. This requires the large
number of paper work along with justification as new and patentable invention. Investors must
have needed to provide the details of their invention to government and general public for
attaining patent. There are also restrictions are present in form of regional and cost. All these
aspects make the process of patent difficult which is time consuming along with costly in nature.
Dealing with Infringers: The patent provides the security but increases the chance of
infringement due to having in knowledge among all in world. Infringers are those who does not
care about the legal consequences and steal the process and technology through which they build
duplicate of same. The identification of these also difficult because not possible to find in such
diverse world. This ruin the whole hard work behind the invention and demotivates the others
too.
Limited time: Patent is the effective tool for the security of a new invention. The
limitation attached with this tool that this provides the security for only limited period of time.
Afterwards, the all rights of a person will be eliminated where everyone can use the same
invention or copying for their own benefit. The provision of extension exists but only for limited
period of time. There is no permanent solution (Schweigert, 2016).
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CONCLUSION
It has been concluded from the above report that law is must to have within a nation for
regulating the actions of individual and institutions. These will help to protect the normal people
and other stakeholders who have interest in any type of action. The role of these in effective
regulation of businesses activities is high. These will provide the opportunity work in benefit of
society along with nation. Patent Act 1977 is effective towards the protection of new inventions.
This provide protection against copying and infringements.
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REFERENCES
Books and Journals
Abo_Dalbouh, M. A., 2017. Applicated pricing strategies in Jordanian medicine scoter and there
effects on customer satisfaction (view point of mangers). Archives of Business
Research. 5(2).
Al Ali, J., Nasir, Q. and Dweiri, F. T., 2019, March. Business Continuity Management
Framework of Internet of Things (IoT). In 2019 Advances in Science and Engineering
Technology International Conferences (ASET) (pp. 1-7). IEEE.
Bird, F., 2016. Learning from History–The Relevance of the History of Business Ethics for the
Practice of Business Ethics. zfwu Zeitschrift für Wirtschafts-und
Unternehmensethik. 17(1). pp.8-36.
Casey, L. and et. al., 2017. Managing Conflict: An Examination of Three-Way Alliances in
Canadian Escort and Massage Businesses. In Third Party Sex Work and Pimps in the
Age of Anti-trafficking (pp. 131-149). Springer, Cham.
Fallah, M. R., 2016. Manger Performance Control by Derivative Claim. International Journal of
Humanities and Cultural Studies (IJHCS) ISSN 2356-5926, pp.2038-2050.
Gladden, B. K., 2016. Regulatory affect on business model success: The California smog check
program (Doctoral dissertation, Capella University).
Hazzan, O. and Lis-Hacohen, R., 2016. The MERge model for business development: The
amalgamation of management, education and research. Springer.
Knežević, B., Kurnoga, N. and Šimurina, N., 2017. Multivariate analysis of attitudes on financial
and other aspects of business ethics of future managers. Croatian Operational
Research Review. 8(1). pp.93-105.
Lu, M. and Faure, M., 2016. The regulation of corporate environmental responsibility. In Market
Integration: The EU Experience and Implications for Regulatory Reform in
China (pp. 239-265). Springer, Berlin, Heidelberg.
Mayer, D., 2017. The law and ethics of CEO social activism. JL Bus. & Ethics. 23. p.21.
Mishra, C. S., 2017. Creating and sustaining competitive advantage: management logics,
Business models, and entrepreneurial rent. Springer.
Nedeljković, D., 2017. Managerial decisions and social responsibility of companies in
international business. Serbian Journal of Engineering Management. 2(2). pp.20-26.
OHAKA, N. C. M., 2018. Corporate Planning and Crisis Containment Strategies: Insights for 21
st Century Business Educators.
Rolleri, M., Nadim, A. and Lussier, R., 2016. Improving small business viability through the
strategic longevity and health maintenance evaluation. Small Business Institute
Journal. 12(1). pp.10-20.
Schweigert, F. J., 2016. Business ethics education and the pragmatic pursuit of the good (Vol.
6). Springer.
Online
Patent Act 1977. 2020. [Online]. Available Through: <
https://www.gov.uk/government/publications/the-patents-act-1977>
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