Impact of Business Law on Organizations

This assignment explores the impact of business law on organizations, highlighting the importance of complying with regulations and laws in the UK. It covers employment legislation, distinguishing between employed and self-employed individuals. The document also discusses raising capital for start-up ventures, providing sources and methods for business owners. Additionally, it touches on establishing agriculture experimental centers in the UK, emphasizing compliance with norms to avoid legal obligations.

The Legal Framework
and Legal Solutions

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Lo1 ..................................................................................................................................................4
1. Different sources of law .......................................................................................................4
Role of legal authority in law making ........................................................................................5
Lo 2.................................................................................................................................................5
2. Difference between self- employed and employed.................................................................5
Duties of employer towards employee........................................................................................5
Impact of employment law on business......................................................................................6
Lo 3 .................................................................................................................................................6
3. Recommending business solution...........................................................................................6
Role of officer in an organisation and methods of raising capital..............................................7
Lo 4..................................................................................................................................................8
4. Drafting the arbitration clause ................................................................................................8
Sources of obtaining legal advice..............................................................................................9
Principle problems with the sources of legal advice ..................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Legal framework consists of various laws as well as regulation which are required by
companies to follow. It is very much important for a business owner to establish or run business
as per the norms. As executing the business in ethical manner will help an enterprise in creasing
the sustainability as well as eliminating the chances of legal obligation. Legal framework in the
nation consists of set of documents which includes the constitution, legislation, regulations, and
contracts. The purpose of legislative system is to provide an organisation with effective legal
solutions to the various business problems. In addition to this formulation of law is important in
order to ensure that business needs of several industries are met.
The objective of present report is to develop the understanding about legal framework. It
also has emphasis on identifying the norms which are required to be followed by an enterprise in
context of potato council.
Lo1
1. Different sources of law
There are some legislation which are required to be followed by an organisation. Each
and every laws in English legal system has been originated from different sources. The UK
constitution comprises a variety of sources, some of which are written Like statutes and others
as constitutional conventions, which are unwritten .Such as
The primary source of employment legislation is Statues which has been originated from
act of parliament and set of regulation which are issued by ministries under the Act legislation .
Some norms incidental to termination of contract, trust and tort are the crucial element of
employment Law (Bowie, 2017). The important employment legislation statues are Equal pay
act, Employment relation Act, disability discrimination, Human right Act etc.
The root or origin of company law are Statues and case law. These are the norms
affiliated to company operating business in England and Wales. The various act that comes
under the company law are Insolvency as well as financial services act. Few laws related to
employment governed by common norms in which the decisions which are made on the basis of
judgement passed in other similar law suits by magistrate
In addition to the above laws Convention of human right which has been resulted from
the influence of several norms in European legislative system.

Role of legal authority in law making .
Proposal in order to transform into bill has to pass through lengthy procedures which
consists of different phase. At each and every stage of process , legal authority in the nation has
to play important role. At initial stage of the procedure, function of the government is to present
the list of problems as well as solution in form of proposal to Local legal bodies, those who are
working at lower level in hierarchical legislative system is very important for government
bodies to ensure that proposal which are prepared by them represents the interest of wide
population.
After the approval by the National legal bodies, Function of government is to present
the proposal in front of members in parliaments for first reading. After the successful function of
first reading, role of government is to make changes as per suggestion and present bill for second
reading. After the second reading the proposal is forwarded to the special committee for
investigation (Gray, 2018). After the successful evaluation has been done, proposal has to been
presented for the third reading where the short discussion or debate take place related to the
implementation of bill as a law. Then after at next stage, bill much be presented by the
government for further reading until and unless some decision is not been made .One the bill get
approved by members in parliament, it is required to be implement. In other case if bill get
rejected then in such situation legal authority has to find the other techniques for implementing
solution .
Lo 2
2. Difference between self- employed and employed
According to the employment legislation, a employee is a person who works in an
organisation according to the terms as well as condition in employment contract. Self employed
are those individual who establish as well as run their own company.
The another major difference between two is that Employees work under a contract of
service whereas the self-employed work under a contract for services (Guild, 2017). In context of
the given case scenario of potato council.
Duties of employer towards employee
As per the employment act, it is important for employer to fulfil their roles as well as
responsibility towards employees. Role of the council is to enter into a valid contract. It is very
important for the council to provides the wages or salaries to cooks as per the terms and

conditions in the contract. Function of council is to provide healthy and safe working
environment to cooks (Jones and Sufrin, 2016). As per the employment law, it is duty of
employer to provide equal as well as fair treatment and working opportunity to all the
employees working in an organisation. As per the employment law, it is the duty of employer to
ensure that none of the employees is being discriminated at workplace. Role of employer is to
protect the rights of employees and to provide them with flexible working hours.
Impact of employment law on business
Employment law covers the several aspects of employment such as treatment of
employee, contract, working hours, recruitment procedure, termination etc. The employment
law has direct as well as significant impact on the relationship between employer and employee.
It also has major influence on the policies , system and procedure followed by human resource
manager (Sandomierski, 2017 ) . Employment law also have major as well as significant effect
on the behaviour as well as performance of employees within an enterprise.
Lo 3
3. Recommending business solution
It is required by potato council is followed the agriculture law. This legislation governs
the acquiring agricultural companies and co-operatives, competition law, land ownership and
usage rights, pricing and tender procedures etc. Agriculture legislation is also applicable for
establishing agriculture experimental centre in United kingdom. AS per the companies act ,
director is considered to be the head of an enterprise either appointed by other people in an
organisation (Appelbaum and et.al., 2016). Director in a firm has certain powers and duties
relating to management. It is required by business owner to complete the following procedure
in order to establish Agricultural experimental centre :
At the initial stage of the procedure , it is required by an entrepreneur to register business
with Companies House. This phase includes determining the name of an organisation , location ,
appointment of director (Jones, 2017). According to the company law , it is important for an
entrepreneur to prepare the memorandum as well as articles of association which is then
presented to the companies' house or registrar along with other important documents. Then
business owner has to wait for approach (Slutsky and Sardegna, 2018). One the approval has
been received , role of an entrepreneur to call for first board meeting in order to fulfil legal
requirement.

Role of officer in an organisation and methods of raising capital
As per the company Law , an officer is a person working at top level of management in
an organisation. Officers are appointed by the board of directors or by an entrepreneur of
company. corporate officers are generally not personally liable for lawful acts taken on behalf of
the company. Corporate officers perform a service for an enterprise and receive or are entitled to
payments. As per corporate as well as company law , it is very much important for every
enterprise to specify the officer positions and appoint officer. The required officer positions
usually include:
CEO or president : Role of officers in an organisation s is to manage the routine activities or
operations. It is the duty of president top form valid contract , issue stick certificates , and fulfil
the requirement of other legal documents during the time of establishment of corporation.
Chief financial officer : These officer are accountable for handling the financial matters of the
company (Kraakman and Hansmann, 2017). They are accountable for maintaining the financial
corporate records and for preparing as well as presenting financial reports to the board.
Methods of raising capital
There are several methods which can be utilised by newly start up business corporation
these are :
Issues of shares: It is considered to be as an effective method for raising capital as e
liability of shareholders is limited to the face value of shares. The another advantage is that
shares are easily transferable.
The major disadvantage of this method is that private organisation cannot invite the
public to subscribe for its share capital.
Loans from financial institution : Business entity can seek financial assistance from
financial institutions such as Industrial Finance Corporation.
The major advantage of raising capital from this method is that financing does not require
any legal formality.

The major disadvantages of this method is that an organisation have to pay additional
charges which is taken in firm of interest.
Public deposits :Companies often raise funds by inviting their stockholder, employees
and the public to deposit their savings with the firm. The Companies Act license such deposits to
be received for a period up to 3 years at a time.
The major advantage of utilising the public deposit for raising capital is that rate of
interest which an enterprise has to pay is lower as compared to other methods (MacIntyre,
2018).
The major drawback of raising fund from the Public deposits is that it is completely
unsecured.
The newly established business venture in order to raise short term capital can utilise
different methods such as :
Trade credit : The major advantage of this method is that an enterprise can purchase raw
material on credit from suppliers. Drawback of this Method is that due to such types of acts the
firm can enter into liquidity trap.
Duties of Directors
 It is the duty of director to perform varipous actions for the benefit of an
organisation.Role of director is to make the important business decisions considering the
interest of other people within an enterprise.
 Function of director is to promote the siucess of firm.
 Role of director is to perform or execute reasonable skills and judgement.
 It is the duty of director to control the business transactions.
Lo 4
4. Drafting the arbitration clause
Alternative dispute resolution is defined as the utilization of methods such as mediation ,
negotiation or arbitration for resolving the commercial or other types of disputes. It is also
considered to be as mechanism for resolving various business issues without going to the court.
Arbitration dispute resolution mechanism is generally adopted by trade assoiciations for
resolving disputes.In this methods the parties have right to select tribunal of their choice.Major
international supply end contruction contracts are usually contained in arbitration clause.This

clause is applicable to the arbitration procedure either by eastablished arbitral institutions such as
international chamber of commerce, natiuonal arbitration center etc.
Alternative dispute resolution acts as dispute resolution procedures as well as techniques
that act as a means for disagreeing parties to come to an agreement. It is considered to be as an
effective mechanism for resolving conflicts as ADR provides parties an opportunity to solve
their problems without taking support from litigation. Alternative dispute resolution mechanism
also less cost as well as time as compared to other dispute resolution procedure. It also provides
the several methods or techniques through which conflicts or problems can be solved quickly as
well as systematically . In alternative dispute resolution mechanism, each party gets equal
chance to share their views, problem, interest with the arbitrator (Martin, 2015). By using the
alternative dispute resolution mechanism, parties facing problems can ensure fair decision.
Parties also have right to to choose third person who will be assisting them in reaching to
appropriate solution to problem. In addition to above advantages the parties' involvement in the
procedure creates greater commitment to the result.
Sources of obtaining legal advice
There are various sources In united Kingdom from where the people or business owner of
potato council can seek legal advice. These are :
SOLICITOR – solicitior have insstitutions in many cities nad Towns. These people provides
legal advice related to the housing , finance, insurance , consumer isues etc.
Citizen advice bureau – It is basically a charitable institution which provides free advice or
legal solutions. Such type of non – profit organisation provides suggestion related to the debt,
benefits, housing, employment and consumer problems (Mills, 2018). The member of potato
council can take online advice from Citizen advice bureau.
Law centres- These institutions are recognised as locally based charities providing free legal
advice related to specific field.
Local authority advice services- These institutions consist of several unit such as money unit
department which provide legal solution related to debt and consumers matter.
Pro bono advice service- In such types of legal organisation , solicitor assist parties in finding
the appropriate solution to their problem (Posner, 2014). Solicitor or barrister also provides legal
advice on employment law, housing matters, consumer disputes, debt etc.
Trade unions- Such type of unions provides suggestion or legal advice to their members only.

In addition to the above institution the legal suggestion or advice can be taken from
internet sites.
Principle problems with the sources of legal advice .
The crisis in Justice system in England. is the main problem which has created major
problem for people to seek advice from the various sources (Mayer, 2018). The difference is the
lea gal system of the country build major barriers for organisation to seek legal advice for
resolving the commercial disputes without going to the court.
CONCLUSION
It has been concluded from the report that company as well as business law has direct as
well as significant impact on organisation.. Study has also concluded that employment legislation
has major impact on the relationship between employer and employed. It has successful
explained the difference between employed and self employed. Report has also provided the
detail about the laws which are required to be followed when establishing agriculture
experimental centre in United kingdom. It has highlighted the different sources as well as
methods which can be used by business owner of newly start up venture for raising capital.
It has been recommended that , members of potato council should comply with will all
the norms. As this activity will assist potato council in eliminating the chances of legal
obligation. The other suggestion has been provided to both employer and employees to fulfil
their duties as well as responsibility according to the employment contract.

REFERENCES
Books and Journal:
Appelbaum, E and et.al.,2016.Good for business? Connecticut’s paid sick leave law. Center
for Economic and Policy Research.
Bowie, N.E., 2017. Business ethics: A Kantian perspective. Cambridge University Press.
Gray, C., 2018. International law and the use of force. Oxford University Press.
Guild, E., 2017. Who is entitled to work and who is in charge? Understanding the Legal
Framework of European Labour Migration. In Controlling Frontiers (pp. 100-139).
Routledge.
Jones, A. and Sufrin, B., 2016. EU competition law: text, cases, and materials. oxford university
Press.
Jones, L., 2017. Introduction to business law. Oxford University Press.
Kraakman, R. and Hansmann, H., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
MacIntyre, E., 2018. Business law. Pearson UK.
Martin, P.W., 2015. Survey for LAZ/SAIPAR Business Law Workshop, 9th January
2013. Received from Author. E-mail. 17.
Posner, R.A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Sandomierski, D., 2017. Canadian Contract Law Teaching and the Failure to Operationalize:
Theory Practice, Realism Formalism, and Aspiration Reality in Contemporary Legal
Education (Doctoral dissertation).
Slutsky, J.M. and Sardegna, V.G., 2018. Business Writing Strategies and Guidelines for
Preparing Effective Memorandums. Journal for Excellence in Business Education, 5(1).
Mills, A., 2018. Private Interests and Private Law Regulation in Public International Law
Jurisdiction.
Mayer, J., 2018. Government Hacking. Yale Law Journal. 127(3). pp.570-662.