Legal Obligations for Business Organizations

This assignment analyzes the crucial role of legal compliance for organizations. It delves into the English legal system, highlighting its sources and the influence of government. The importance of adhering to employment laws, registering a business, and utilizing alternative dispute resolution methods is emphasized. The analysis underscores how fulfilling legal obligations enhances operational quality and contributes significantly to an organization's success.

The legal framework and
Legal solutions

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................3
P3 Impact of company, Employment and contract law on potential business enterprise...........3
TASK 3 ...........................................................................................................................................4
Steps of registering a company with its nature...........................................................................4
TASK 4............................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The legal framework and operations is been followed by an individual or an organisation
that will help the organization to enhance the quality of operations. The legal obligations will
help in maintaining the ethics related to the operations within an organization. For the report,
Pegasus Ltd and various cases are been taken in context to make the answer more elaborate. This
report will focus upon the different sources of law with role of government in the organization.
Various employment laws, the legal formation of the business firm and management of the funds
is been carried out with proper recommendation related to alternative dispute resolution
measures.
MAIN BODY
TASK 1
Introduction to English legal system: the English system is one of the important legal
system of the European union. This system spread to many countries including former English
colonies, Canada, Australia and New Zealand. The system has a history of developments from
formation of common law on basis of local customs to equity developed in court of the
Chancery. In the 19th Century the virtually legal system was reformed to legislation.
Division of Law: The division of the law means to the branches of law that deals with different
types of offenses and crime. Under UK legal system the law has been divided into two branches:
Civil law: this is the law which deals with the civil wrong done to person or organization by
other firm or individual. Under civil laws cases are related with family disputes such as divorce,
adoption, tort, damages for personal injury etc (Adams, 2016). In this, cases remedies are availed
in from of claim for damages. The person who files a case is called as claimant and against
whom it is filed is referred as respondent. The burden of proving commitment of civil wrong is
on the person who starts the civil case.
Criminal law: this branch deals with crimes of more serious nature. A person who feels that
crime has been committed, reach to police and then investigation conducted. For minor offenses
such as over speeding, cases are head by magistrate court. For vary serous offense such as
murder, rape are hard in Crown court. The sentences this types of cases includes fine, penalties,
imprisonment and community punishments.
Sources of law: this can be defined as the ways and roots form s where the laws are being
formed and originated in the legal system of UK.
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Act or parliament: this is one of the major and most important source from which laws
are being established (Act of parliament, 2018). The statutes are formed by the parliament with
following a legal procedure of approving a draft legislation in form of bill by both the houses of
parliament and getting assent from monarch. This laws are mandatory to be followed and must
be interpreted in same manner by all.
European union: UK is a member nation of EU, so laws made for all members are
applicable to UK as well. Sometime a situation of contradiction in provision of both laws arises,
in such a case the EU laws is given preference. This does not mean the UK is eradicated, this
simply means EU laws overpower the UK laws.
Customs and common laws: this is the oldest and the starting pint of getting the laws for
this legal system. The customs can be defined as the values, believes, behavioral, general
practices which are being used as they are law and every body follow them in same manner.
With getting a universal consent for these types of customs common laws are made. The civil
laws such tort of negligence are result of costumes only.
Doctrine of judicial precedents: this is another major sources from where UK legal
system gets its laws. In this the judgments given by the judges in different court are given
binding effect. This validity to the decision are given through doctrine of judicial precedents the
applicability of theses laws in hierarchical order. The decision of higher courts are applicable to
lower court to refer them for cases related with similar matter but decision of lower court do not
bind higher courts.
Act of parliament: this is also refereed as primary legitimization and status are formed by the
parliament. The laws so established create binding effect for all and no one can deny abiding by
them. The procedure of forming a law is not easy before presenting a proposal of making a law
it must be approved by the cabinet ministers a draft legislation is present to the misters of cabinet
by the electing party of a recognized association or group. One it is approved by ministers it is
presented as bill in parliament.
Parliamentary stages:
First reading: at first the bill is presented to Peers of house of commons and title of ill is read
out with giving each member a copy of the bill.
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Second reading: here, the bill is scrutinized in detail and debate is generate amount all members
of house of common on the subject matters and principles of the bill. At last of this stage, voting
is done on approval of the bill.
Committee stage: ones bill is approved by majority of the voting, amendments are suggested
and made in the bill by all the members.
Report stage: in case, changes are suggested, this stage is carried ed out to vote on the such
proposed amendments and those which gets majority of consent, are added or removed from the
bill accordingly.
Third reading: here, the amended bill is finally considered and vote up on for further
proceedings.
Approvals from House of Lords: with getting approval from house of common, the bill is
presented to house of lords for their consent. The bill goes through same process at this stage as
well.
Approval from Monarch: after betting approval from both the houses of parliament, bill is
approved by the Queen. This is just a formal stage as queen already knows about all the matter.
With getting a sign and stamp from the Crown, the bill gets a status of law and statue.
Tracking: this can defined as keeping a close eyes and vigilant watch on changes and
amendments made in any law which is relevant with the business or operations. The laws related
eith a business are employment, company, contract health and safety, fire safety etc.
TASK 2
P3 Impact of company, Employment and contract law on potential business enterprise
The company's and employment laws with the proper contract laws plays a very deep and
effective role on the overall operations and activities of the selected organisation. This will
improve the quality of operations to a greater extent (Cortés, 2018). At the Pegasus (P) Ltd, the
work force will look after load the proper management of their business activities which will
improve the overall performance of the organization. As per the provided case, the employment
status of work force or staff within the enterprise is employed by the firm as they are provided
with the proper and effective way. The Employment Act that is been taken within the
consideration by the firm will help in the proper management of the business activities in much
suitable way (Sannier and et.al., 2017).
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The Company Employment law indicate that an individual hired by an enterprise under a
contract and provided with proper and will provide the wages on regular basis is been classified
under the category of employed work force. It will guide Pegasus (P) Ltd to develop a proper and
effective strategies related to job and placement of their staff (Wilding 2017.). Under the
company law, the selected enterprise is providing the services like uniform, vehicles and identity
cards that helps the organisation to maintain a good relation with their staff. Besides this, the
firm also monitors their location or position by evaluating the trackers installed within the
vehicles. This indicates that the work force operating at Pegasus (P) Ltd is been employed by the
firm and is not self employed.
As per the contract law, the contract between Pegasus (P) Ltd and its employees consists
of a contract that provides them a right to substitute the employee in case of their absence,
permitted by the management (Schoenmaker, 2017). Also, the employees are allowed to decide
their schedule and deliveries. Unlike in the case of Pimlico plumbers, where the employees were
not given much leverage. On the other hand, at Pegasus (P) Ltd the organisation will look after
the proper management of their employees and their related operations.
All these legal obligations and operations will help the selected enterprise to carry out
their operations and thus will improve the quality of operations and action plans in much suitable
way. This will help in the effective planning of the business operations and thus will improve the
quality of operations in much effective way. This will help the firm to improve the overall
functionality and meeting of the business operations and activities that will help the firm to
improve the quality of operations and thus will lead the fir to maintain the overall operational
ability of the organisation in much effective way. This will contribute in improving the sales of
the organisation to a greater extent.
On the other hand, the self-employed employees are the one which have their own
strategies and scheduling policies. They provide the services when asked in return of earnings
and revenue gained. They will provide the proper and most effective services to the Pegasus (P)
Ltd in return of proper revenue and return of services.
TASK 3
Steps of registering a company with its nature
Types of businesses:
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Sole proprietorship: it is the type of firm that is been taken in consideration by a single
individual i.e. it has only one individual as a owner of the enterprise.
Corporation: this are the firms operated by multiple service provider that will improve the
quality of business operations and activities in much suitable way. The profit of the corporation
firms is distributed among its stakeholders.
Partnership: such businesses are run on the basis of the principle that two or more partners will
come together to work upon a common venture and thus will improve the quality of actions and
operations in much suitable way with equal responsibility. Te revenue gained within the firm is
shared among the partners on the basis of their share in firm.
Limited liability company: this are the firms that are monitored by the government to improve
the accessibility and control their expansion. They mainly falls under the public sector
enterprises.
In order to improve the overall performance of the organization. The registration process
is followed by a firm in order to gain the legal license within an organization to continue
executing their operations in much suitable manner (Guild, 2017). Various steps are been taken
in consideration by the organization that will help in improving the quality of services that are
been taken in consideration by the firm. Some of major stages that are been followed for this
purpose are as follows:
Step 1: Set the name of the firm: The owner of the organization is required to look after the
proper management of name by which the firm will be registered. The company names should
not be already taken. This will help the organization to maintain the quality of operations and
activities that are been followed by the firm.
Step 2: Setting official address: this is required for the proper positioning of the business
activities to a greater extent. As the proper geographical location is been provided fir the firm, it
will be easy of the organisation to operate.
Step 3: Get the SIC code: The firm has to also apply for getting a proper standard industrial
classification (SIC) code that will help the organisation to get a unique identity within the
industrial sector and market.
Step 4: Appointing Directors: the placing of the appropriate directors will impact the overall
operations and thus will improve the quality of activities that will improve the quality of
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operations in much suitable way (Fahy and et.al., 2017). The directors will look after the proper
management of the business operations and activities in much effective manner.
Step 5: Set the share structure and shareholders: this will improve the proper management of
the business actions and operations in much suitable way. Besides this, it will support a proper
management of economic requirements of the enterprise to carry out their operations.
Step 6: Sign a statement of compliance: It will help in placing the firm under the company act
and thus regulate its operations in much effective manner.
Step 7: Paying out the formation fee: this is the nominal charge that is been placed by an
organization in order to carry out the business operations and activities in much effective
manner. Once the fee is been deposited, the firm gets registered.
Legal personality
On the basis of the Solomon V/s Solomon in which Doctrine of corporate personality was
set and Lee v/s Lee foreman case in which principle of separate legal entity was upheld. With
these, the nature of the registered firm gets a status of separate legal entity that leads to follow all
the legislation and legal obligation of the firm in much ethical way. These means that the
company’s have their own assets, liabilities, profits and legal obligations, separate from their
stake holders and owners.
Role of Directors:
The directors role is to look after all the financial and operational actions that are been
followed within the firm. Some major roles are:
 To avoid conflict of interest: they will look after that the interest of various stakeholders
doesn’t coincide with each other to hamper firm’s performance.
 To act within power: they will be given certain powers and they are required to act
within it in order to improve the quality of operations to a greater extent.
 To promote success of business: they will look after the proper management of the
business operations which will improve the quality of activities and operations
undertaken within the firm.
 To Accept benefits of third parties: they will look after the proper management of a
wide range of operations to their stakeholders and share the profit or provide a proper
return of investment from the firm.
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 Declare interest in proposed transaction: they will look after the proper management
of all the transactions that are taken within the organization.
Capital issuing: it involves the following factors:
 Government: this can be applied and placed within the organization that will help in
proper management of business activities. This is mainly carried out at public sector
organizations.
 Stakeholders: the stakeholders participating within the organization will look after the
investments that is been made by stakeholders of the firm. This will improve the quality
of operations and activities that are been followed legally within the enterprise.
TASK 4
Alternative dispute resolution (ADR):
ADR can be defined as an alternative solution to solve the commercial disputes without
going to court (Adams, 2016). This is more preferred in present time as it consumer led time and
money of them parties and provide a decision with involvement of the disputed parties in
decision making process. Various types of ADR are: Mediation, arbitration and negotiation.
The Arbitration process that is been carried out within the organization that will help in
proper resolution's of any sort of disputes in much effective and significant manner. This
involves a third party person known as “arbitrator” that will help the organization to carry out the
proper and effective placement of the organization in much suitable way. The arbitrator will look
after the plea from both the concerning parties and will suggest the most suitable, feasible and
appropriate solution for the issue.
CONCLUSION
On the basis of the effective assessment this can be said that the following of legal
obligations is very important for an organization. This will improve the quality of operations and
thus will help the fir to enhance the organizations operations in much effective and significant
way. The English legal system is been discussed with the sources of law. The involvement of
government is been taken in consideration and proper assessment of the employment law is been
selected. The legal registering of a firm and proper assessment of the alternative dispute
resolution measure is been carried out.
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REFERENCES
Books and Journals
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 72.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 78.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 108.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 420.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 508.
Adams. A, 2016. Law for Business students. 9th Edition. Pearson; pp. 533.
Cortés, C. J., 2018. GATT, WTO and the regulation of international trade in textiles. Routledge.
Fahy, N and et.al., 2017. How will Brexit affect health and health services in the UK? Evaluating
three possible scenarios. The Lancet, 390(10107). pp.2110-2118.
Guild, E., 2017. Controlling frontiers: free movement into and within Europe. Routledge.
Sannier, N. and et.al., 2017. An automated framework for detection and resolution of cross
references in legal texts. Requirements Engineering.22(2). pp.215-237.
Schoenmaker, D., 2017. The UK financial sector and EU Integration after Brexit: The issue of
passporting. In The Economics of UK-EU Relations (pp. 119-138). Palgrave Macmillan,
Cham.
Wilding, J., 2017. Unaccompanied children seeking asylum in the UK: From centres of
concentration to a better holding environment. International Journal of Refugee
Law. 29(2). pp.270-291.
Online
Wild, C. and Weinstein, S., 2016. Smith and Keenan's Company Law, 17th Edition. [Online].
Available through: <https://www.pbookshop.com/smith-and-keenan-s-company-
law-16th-edition-9781447923107.html>
Act of parliament, 2018. [Online]. Available through:
<www.parliament.uk/about/how/laws/acts/>
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