Understanding different types functions and structures of organisations

Report
1

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Explain different sources of law............................................................................................4
P2. Explain the role of government in law-making and how statutory and common law is
applied in the justice courts.........................................................................................................5
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and
developments...............................................................................................................................6
TASK 2............................................................................................................................................7
P3. Examples to illustrate how company, employment and contract law has a potential impact
on business...................................................................................................................................7
M2. Differentiate between legislation, regulations and standards to analyse potential impact
upon business...............................................................................................................................8
TASK 3............................................................................................................................................8
P4. Explain how different types of business organizations are legally formed...........................8
P5 Advantages and disadvantages of unincorporated and incorporated business with its
difference between in terms of starting process..........................................................................9
TASK 4..........................................................................................................................................11
P6. Recommend legal solutions for resolving a range of disputes using examples to
demonstrate how a party might obtain legal advice and support...............................................11
M4. Compare and contrast different sources for legal advice and support for dispute resolution
...................................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
Business law is define as a set of legal provision that are mainly applied on business as to
govern its transactions and business dealings. It is a term that mainly includes different standards
and rules with the help of which business run it’s functioning in a legal manner. In simple terms
business law is mainly termed as a legal system which is applied on overall transactions of an
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entity in order to make it work within legal boundaries (Clarkson, Miller and Cross, 2014). In
this report formative discussions has been made own types of sources of law. Government play
essential role in law making and it impact on different laws on business functioning. In addition
to this report include formation of different types of business organisation along with the manner
in which they are funded and managed. Lastly report includes explanation to legal solutions
accompanied by suitable recommendation.
TASK 1
P1. Explain different sources of law
English legal system has gone with number of evolution it is in wide in nature and includes
different types of rules and laws that mainly govern organisations and individual operating their
functions in UK. Laws are mainly made by parliament main principle of UK is “parliament is
sovereign”. All the laws within United Kingdom legal system are made by parliament as they
hold the Supremacy to formulate or reject any law. In addition to this some amendments are also
been undertaken by parliament (Sale and Supply of Goods Act, 1994). It is essential for an
organisation or individual to gain formative knowledge in order to apply the laws in a well define
manner. Mentioned below available sources knowledge about legal provisions are being define
below:
Primary sources: This source mainly includes original contents that are yet to be used and fresh.
Mentioned below primary source are:
 Case law: In this judgement that has been passed by courts contain decision, principles
and issues passed by the courts in past on which future cases are decided. It is known as
doctrine of judicial precedent that provide that future cases are decided with the previous
decision if it include issues and facts exactly same.
Legislation: House of Commons and House of Lords present bill(s) n Parliament to be
elected as an act for the sole purpose to govern rights as well as individuals residing in society.
Secondary sources: Secondary sources are defined as second hand information they are other
than primary sources.
Legal encyclopaedias:
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Halsbury's legal book is identified as a most authenticate source to understand the
meaning of legal terms. In addition to this laws of England and Wales is widely trusted
Encyclopaedia in all around the world. It mainly states every legal terms in an effective manner.
Parliamentary and non-parliamentary publications:
Parliamentary and non parliamentary publications are the debates and speeches mainly in
the command paper form. This is provided by House of Parliament. While no parliamentary
publications involves reports that actually provided by the government agency or department on
their official website.
Law commission:
UK Government has formed a commission in 1965 in order to conduct review as to
further offer recommendation to make amendments. In this judgement that made by them is in a
unbiased nature.
Textbooks:
This is one of the easiest ways to undertake knowledge about different types of legal
provisions. As in textbook, language that is used is in an understandable nature.
P2. Explain the role of government in law-making and how statutory and common law is applied
in the justice courts
Government play essential role to formulate plans and policies that mainly aim towards
providing better living to society. In addition to this it is essential to implement laws in order to
govern individuals living in a country in a well defined manner. Role of government is further
segregated into three parts:
Executive role:
Queen, Prime Minister and other government executive role is mainly related to
formulate policy that will be applied throughout United Kingdom. The laws and policies within
this legal provision are required to be effectively enforced and execute as it benefits general
public. In this law is very important to execute and enforce as negligence of this may hamper
ineffective activities.
Legislative role:
Legislative role mainly include different laws that are enacted presented in the form of a
bill in Parliament. In this House of Lords and House of Commons hold the responsibility to
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present a bill which is further gets important to be passed. Laws within this mainly covered right
of individuals in United Kingdom.
Judiciary role:
Judiciary role mainly emphasize upon establishment of tribunals and courts in accordance
with United Kingdom requirement. In addition to this government frequently access judicial
system as to have a proper check up on effectiveness of judicial systems. For this construction of
courts has been done in order to make sure that all the cases get resolved in proper time frame
and no case lie pending. In this it is essential to have appropriate charge as to give right
judgement.
All the laws have their own importance and are required to be effectively execute and
enforced as these govern right of individual. It has been identified that there are different type of
law in legal system of UK. In this statutory law and common law is defined below with a
detailed explanation:
Common law:
Common law is an essential part of legal system in United Kingdom. It is the outcome of
new decisions that has been duly made by Court Judges. Further common law is also known as
case law. This is instructive in nature and can further amend via statutory law. This law states
that no new law are required to be made if the situation, facts and issues are same of any
previous case. However if judgement that has been made by court is new then it usually get
measured in following court decisions.
Statutory law:
Laws within this is defined as rules and principles that are mainly made with a view to
govern right of individuals in country. It is mainly in written form and follows fixed process of
passing bill in parliament. Statutory law is defined as a fundamental structure of legal system and
it is essential for each in every person to comply.
M1. Evaluate the effectiveness of the legal system in terms of recent reforms and developments
UK legal system has gone different type of modifications and amendments however there
are some unnoticed loopholes that are required to be evaluate as the development for individual
rights are not up to the mark comparatively to other countries. It has been identified that present
legal system is somehow hard to effectively understand as it involve number of complexities.
There are three different types of legal system in United Kingdom thus; it becomes hard to form
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of formative coordination. Thus, it is essential to modernize this and remove deficiency in
implementation of rules and laws in a well define manner. It significantly indicates that it is
essential need to make significant amendments in legal system as to enhance its effectiveness.
TASK 2
P3. Examples to illustrate how company, employment and contract law has a potential impact on
business
There are different types of regulations and laws that are being implemented by
government of United Kingdom in order to regulate business organisation. All the legislations
and laws have impact upon functioning of business. Mentioned below there are some company
contract and employment law being define:
Company law:
It is essential for business organisation to comply with Company Act 2006 in order to
perform their business operations in a lawful manner. The law benefit in number of terms,
company with the help of which an entity can effectively avail all the privileges. Negligence of
this law may lead company to fall into different type of legal obligations and penalties. For
instance, XYZ Pvt. Limited raised funds in order to utilise the same for the business organisation
expansion. In this entity fails to utilise the financial resources for the purpose, so according to the
this company law have right to file case against entity.
Employment law:
Human labour resources are termed as most essential resource for an organisation which
is required to be properly protected by an entity. It is essential for an organisation to comply with
different types of laws enacted under employment law as to give proper protection to employee’s
right. With the help of this employee feel secured and safe and can further perform their
operation in corporate entity with true spirit. Laws that are involved in employment law are
applicable on business entity range from employment Act 2002, rules and laws that are related to
safety and health of employees and equality act 2010. Non compliance of any laws affect
employee turnover. For instance if an employee get hit by the manager out of range, then in this
employee have right under employment law to file a case against manager along with entity.
Contract law:
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It is essential for an organisation to implement all the obligations mentioned in a contract
law before entering into any contract as to conduct business operations and transaction in a legal
manner. This will help them to deal in a lawful way and avoid any legal obligation. Contract law
is a most important aspect for an organisation as each and every transaction is regulated terms
and conditions that are given in contract (Act and House, 2014). It has been analysed that
government of UK does not enact any kind of separate legislation for the purpose instead these
are to be kept covered by Sales and Supply of goods Act. According to this, organisations have
right to cancel or revoke the contract. For instance ABC Limited entered into a contract with
their suppliers in which company fail to provide payment in pre define time, in this supplier's can
revoke the contract.
M2. Differentiate between legislation, regulations and standards to analyse potential impact upon
business
Legislation:
Legislation is mainly formed by government through passing a bill in parliament. It
becomes an act after receiving assistant of Queen. Legislations also involved amendments and
are mainly applicable to individual for providing them benefit. House of Commons and House
of Lords play key essential role to present bill in parliament and are essential for federal or state
government to follow.
Regulations:
Regulation are termed as an as instruction in a detailed manner that effectively ensure
implementation of rules and administrative laws. These are mainly generated from laws only
which are made applicable along with to existing legal provisions. It is mandatory to apply
regulations.
Standard:
Standards are fixed requirements and guidelines that are required to be organisation to
fulfil in relation to their products and services. Standards are implemented by government as to
ensure that organisation maintain standardized criteria in order to provide quality services and
products to individuals.
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TASK 3
P4. Explain how different types of business organizations are legally formed
There are different types of business organisation who perform their operations in
multiples ways that are mainly depend on different aspects. Entities operate their functioning in
small, large and medium scale (Segal and Choi, 2016). Mentioned below different types of
organisations are being defined below:
Sole proprietorship:
It is a form of business organisation in which a single individual hold responsibilities to
face profitability and loss by him/her. They are known as sole owner or proprietor. Organisations
fall under sole proprietorship have no liability.
Partnership:
This type of business organisation is mainly formed by the consent of two or more parties
those who come together with a motive earn profitability (Meaning of partnership firm. 2019).
Partnership is mainly formed by partnership deed in which shareholding, profitability have been
get define to every partner. As to initiate any company under partnership it is essential to have
proper legal documentation.
Joint Venture:
This is a type of Organisation in which two entities duly come together as to fulfil
requirement of a specific project making proper agreements so that liability can be distributed
accordingly.
Limited liability Company:
Organisation those who perform their functioning as a limited liability company enjoy
maximum benefits like tax payments, limited liability of partners and owners etc. In this
organisation have hybrid working environment within which both partnership and Corporation
can be duly made.
Corporation:
In this entities involved mainly aim towards offering best benefit and suitable products
and services to consumers as to conduct operation. There is a need of high capital along with this
it requires more amount of time to set up. In this there are different types of ways to raise funds
that are:
 Loans from different government and private financial institutions.
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 Provision of Debenture and Bond can be made.
 Issue of new share.
 Raising monetary fund’s via methods of death
P5 Advantages and disadvantages of unincorporated and incorporated business with its
difference between in terms of starting process.
Incorporate Organisation:
In this there is a form of business there is an instance of personal legal due to which it
becomes easier to be a part of any contract (De Massis, Kotlar and Frattini, 2013). In corporate
organisation it is secured and safest business in order to raise funds
Advantages:
 Organisation face right of perpetual progression.
 Most important advantage within incorporate organisation is that it is easier to get sue
and get sued.
Disadvantage:
 In order to set business it is essential to have adequate money as well as time.
 It becomes hard to disciple any business once it get incorporated.
Unincorporated Organisation:
Advantages:
 Organisations within unincorporated are not forced to fill annual accounts.
 In this entities have low cost of compliance.
Disadvantage:
 There is no legal and authentic contract as company do not have any time
(Unincorporated businesses. 2019).
There are wide differences exists among unincorporated and incorporate organisations that are
being further defined:
Incorporated Association:
 In this it is essential to decide and attest address and names in a proper manner.
 Particular manager and shareholder are required to nominate for this form of business.
 Entities within this are essential to issue “Memorandum of Association”.
 Main sources as to raise funds in from issue of bonds, bank loan etc.
Unincorporated Association:
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 In this business organisations are required to set actual objectives
 Proper and valid contract are require to formulate when there are more than two partner
involved.
 In this it is important to duly consider ratio of share as in this liabilities are not limited.
 Within this form of association there are different sources to raise funds that are, private
money lender.
Mentioned below there are some certain set of advantages as well as disadvantages of
organisations involved in partnership which is further define:
Advantages:
 This has been evaluated that it is not easy to raise funds in partnership as compared to
entity.
 Company have benefit to enjoy right of perpetual succession while on the other
partnership entities have issues that are mainly related to changes.
Disadvantage:
 In relation with decision making process in company there is a need of huge funds
 In order to form company there are number of difficulties while in context with
partnership they are easy to form.
TASK 4
P6. Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support
Legal solution is defined as remedies that are duly provided by laws. These remedies are
mainly used when there is a conflict or disputes raised among two parties who aim towards
having an appropriate solution in order to settle down matter in a legal manager. Legal solution
benefit individual to settle down the matter and get an appropriate conclusion. Mentioned below
that different types of legal solution define:
Negotiation:
Negotiation provides a way within which involved parties can have direct contact with
each other in order to reach towards a conclusion. In this by mutual consent of aggrieved parties
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decisions are made in order to sustain future relationship among both involved parties. This is
one of the easy and unique methods which are being mainly preferred by all. It involves different
type of features like confidential, voluntary, flexible and informal. For instance two companies
XYZ Private Limited and ABC Private Limited have conflict related to copyright that may
further affect their business functioning. Thus, this can be settled down with the use of
negotiation method. This legal solution aid entities to conduct a meeting between shareholders of
both entities.
Mediation:
In this form of legal solution third party is being hired by both the aggrieved parties in
order to settle down the dispute (Craig, 2018). This method is being used when negotiation get
failed. In this, mediator tries to help out the aggrieved party, by providing solution. In this
mediator duly states right and wrong that further enhance coordination among both the parties.
Mediation is easy to use and sometime it requires lawyer presence. For instance, an employee get
sexually harassed within workplace structure of an organisation which is against the company
law and code of conduct in this satisfactory result can be obtained.
Conciliation:
This method is mainly undertaken as to settle out the differences without indulging
courts. This method is flexible and voluntary in nature. In this method conciliator is being
appointed which is also known as third party. Conciliation and mediation is a different aspect as
in this a consolation have the right to ask parties to provide him a non binding settlement
proposal. Further it has been analysed that public proceedings can be dealt with the help of this
method.
Arbitration:
Activation is a last legal solution to resolve any issue or dispute. In this an individual can
get appointed with the mutual consent of aggrieved parties in order to find suitable solution
which can be applied to settle out the dispute. In this there is no formal requirement. Further it
has been identified that in arbitration panel there may be more than one person. In this parties are
required to submit testimonies and evidence as a form of witnesses. This is essential for both the
parties to comply with the award made by activation which is in a written form. Furthermore,
judgement that has made by arbitration cannot be challenged in court. For instance a dispute
related to patent infringement among parties can be solved with the legal solution of activation.
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Recommendation:
According to the above mentioned discussion this has been analysed that attribution is one
of the most effective and suitable measure to find solution of a conflict and dispute. As it is a
cost effective way to get satisfactory results. Along with this it includes a third independent
person who provides unbiased decision which is essential for the aggrieved party to comply.
M4. Compare and contrast different sources for legal advice and support for dispute resolution
Legal Advisors is termed as an opinion which is mainly presented by lawyer in a formal
manner. Mentioned below there are some certain sources to get legal advices that are mentioned
below:
Free legal consultation:
This is a way in which a lawyer has direct conversation with aggrieved party. In this all
the issues and facts that get duly heard (Baker, 2019). In this lawyer provide some time to client
in order to make them decide to proceed with lawyer or not. It is a free legal consultation method
in which there is no charge involved and has many questions can be asked by lawyer and party.
Legal aid programs:
These are services in which individuals are being provided with the legal assistance who are
not willing to pay in legal consulting fees. In this legal solutions are being provided to
individuals with fair trial.
CONCLUSION
As per the above mentioned report it has been concluded that laws and regulations are one
of the most important aspect that aid an organisations to perform their functions and activities in
a smooth and lawful manner. There are different type of sources through which entity can gain
information related to the laws and necessary amendments that have been made by government.
Along with this there are different types of law that are applicable in an organisation and have
impact upon functioning of entities. In addition to this there are different form of business
organisation that performs their operations with certain advantages and disadvantages. Lastly,
legal solutions contribute in an effective way to resolve disputes in a best effective manner.
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REFERENCES
Books & Journals:
Clarkson, K.W., Miller, R.L. and Cross, F.B., 2014. Business Law: Texts and Cases. Nelson
Education.
Baker, J., 2019. Introduction to English Legal History. Oxford University Press.
Craig, P.P., 2018. Sovereignty of the United Kingdom parliament after Factortame.
In Constitutional Law (pp. 359-394). Routledge.
Horspool, M. and Humphreys, M., 2012. European Union Law. Oxford University Press.
Miller, R.L., 2015. Business Law Today, Standard: Text & Summarized Cases. Nelson
Education.
Act, C. and House, C., 2014. Companies Act 2006.
Emir, A., 2014. Selwyn's law of employment. Oxford University Press, USA.
De Massis, A., Kotlar, J. and Frattini, F., 2013. Is social capital perceived as a source of
competitive advantage or disadvantage for family firms? An exploratory analysis of
CEO perceptions. The Journal of Entrepreneurship, 22(1), pp.15-41.
Segal, S.P. and Choi, J.S., 2016. Ownership form and quality of care in sheltered care facilities:
Chain-affiliated business vs. sole proprietorship.
Online:
Roles of government. 2019. [Online]. Available through: <https://www.gov.uk/government/how-
government-works>.
Common law in UK. 2019. [Online]. Available through:
<http://www.courtroomadvice.co.uk/common-law-england.html>.
Sale and Supply of Goods Act, 1994. [Online]. Available through:
<https://www.legislation.gov.uk/ukpga/1994/35/contents>.
Limited company. 2019. [Online]. Available
through:<https://companieshouse.blog.gov.uk/2018/05/15/what-does-it-mean-to-be-a-
limited-company/>.
Meaning of partnership firm. 2019. [Online]. Available through:
<https://www.rossmartin.co.uk/partnerships/121-limited-or-unlimited-partnership>.
Unincorporated businesses. 2019. [Online]. Available through:
<https://www.gov.uk/unincorporated-associations>.
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