BMP4002 Business Law: Report on Legal Context for UK Business in UK

This report examines the key sources of law that form the legal context for business organizations in the UK. It covers various business structures including sole proprietorships, general partnerships, limited partnerships, and limited liability companies, detailing their advantages, disadvantages, and legal obligations under UK law. The report references the Companies Act 2006, the Partnership Act 1890, and the Limited Partnership Act 1907. It further provides recommendations to a hypothetical business, IOM Solutions, suggesting a transition to a Limited Liability Company to facilitate expansion. The report concludes by emphasizing the importance of effective legal compliance for business operations and profitability, advocating for the Limited Liability Company structure for its blend of personal and professional advantages.

BSc (Hons) Business Management
BMP4002 Business Law
Assessment 2
Report on describing the key sources
of laws as the legal context for
business organisations in the UK
Submitted by:
Name:
ID:
Contents
1

Introduction
Business law find out the formal process for establishment of a business enterprise
and regulations accompanying to selling of corporate entities. This also consider
drafting, rights assignment, work delegations, transactions, breach of contract,
contracts, transactions and penalties for the violation of agreement. The word
business is being understood as a procedure by which the sellers and buyers comes
in a common place to exchange goods and services of an enterprise. Owner of this
concern held enable for transfer of goods and services to their final customers. The
companies are held liable if they do not follow the business law of the
country(Chambers, 2020). The business law consists of Equality Act, 2010,
Employment rights act 1996, and many more. The report details for many kind of
concerns which run actively in the business arrangement. In addition, the report also
explains for the advantages of these firms in UK. Furthermore, this also explain
about tax composition and disadvantages of the concern arrangement in UK. In this
report the advice is given to Sam which converts the IOM Solution to all the kind of
business firm in relation to expand the business all over the globe.
Businesses & Organisations in the UK
Business law outline for various operations which is applicable in concern. The laws
also explains for professed and legal relations within the employee and leader of the
organisation. This also establish a basic model which guide business operations.
This would also assist to protect the individual from dangerous and illegal act which
were done through the leader of business organisation(Begum, 2020). This also
detail the functions of various divisions of the business organisation. Furthermore,
the workers has an essential part in any business enterprise. This is as the
employee provides the support for an to company for accomplishing an alloted task
within prescribed time. The upgradation in any related firm is connected directly with
the running of employees. This is highly important for top level management to
match the need of the considered company. However, in UK various employments
laws are there which makes the right of workers in any enterprise in UK.
The companies act of 2006 is liable for the framework of concern enterprise in
UK. These provides various guidelines which have to be followed through every
business enterprise in United Kingdom(Mogaji, 2020). This provides provisions in
each sector of industry in United Kingdom. Moreover, this is mandatory for each
2

organization to follow these laws of the companies act 2006. It also facilitates easy
reclamation of the worker of the arrangement. There are also various legal duties
and liabilities of business law which have to be used through each firm in the
country.
Behavior of unprofessional employee and lack of responsibility to carry out
operation can give emergence for various liabilities in a business. One of a liability in
this case is vicarious liabilities start when a worker act or behave deceitfully or
commit any unlawful act which becomes part of administration as their worker,
employer get liabilities as this held liable and responsible for action of worker and the
act in time for confronting problem faced by the workers of a company. The business
can suffer many problem because of negligent behavior for any associate or workers
in time of carry out roles and obligation(Baillie, 2019). Here director is individual who
get the placed of company head from which they having many responsibilities and
duties which is providing to post that is needed to performing with honesty and
caution to make sure that this is just a business carry on their parts. Furthermore,
when duty is not operated as according to director then legal possession come into
force for management due to non completion of legal obligation from director of
organization.
Director is there for carrying the task well with the top level management to have
knowledge with effective decisions were taken in parts on side of institution. Here
authority is responsible to ensure that no conflict will rise within employees of an
enterprise, if any kind of conflict arise then the director have responsibilities to
resolve them to promote harmony in the individuals. Moreover, manager's unethical
behavior make this liable for misleading behavior of employee. The director is being
asked to give solution for the company to provide compensatory damages. The
contract needs to be finish if any kind of serious breach of duty happened. The
director have to be change when he is liable for any kind of criminal activity or any
kind of illegal malpractices. Possession for institution property with the director is
also taken for them to accomplishment of contract.
The act of partnership, 1890 govern the statement of partnership from provided
provision which layed down for how a organization is made and in which way this
operate and expires partnership can also occur when any kind of malpractice is done
through directors of a firm(Giliker, 2021). Effective management for business is
occurs with help of AOA and MOA is an legal idea which help to manage the
3

arrangements for company in time of incorporation but this is being enforced when it
got signed by the shareholders. In comparison to this, AOA is one type of written
document which is define as rules and regulations for a institute which is to be
followed by them through working in a company. This need consent of directors and
owners before enforcement of a firm.
The legal business structure of UK companies
Sole Trader
This is self employment kind of business structure which is maintained by individual with its
capability and those individual is called sole person. The business enterprise offer profit in
relation of an enterprise which costs effectively. Moreover, this is easy to operate, run and
function. This is the most popular kind of business for the young entrepreneur who develops
and establish their small scale business. They do this because of less availability of finance
with them. This prefers by individual who acts in the form of owner for starting their new
own business by making a small start up. Moreover, the person is a wage earner for all
income and net profit which is made in business enterprise. The decision is made without any
problem for involvement of an individual. The ownership control provides with type of
attracts in new business individual. This get family and personal time out in concern as very
hard. The corporation income and tax is to be paid by proprietor and they have data for
customized in relation to General information protection rules.
General Partnership
This type of business have two or more than two owner for getting involved as general
partnership agreement. Moreover, partners handling the business form by conducting duties
and roles jointly which included in business enterprise. Partners want to distribute their profit
and losses on regular basis with balanced proportion on time of maintaining business firm.
The partnership contract mentions that a partner sharing price of establishment, debts and
advaantages and fiscal risk which were obtained through activities of organization(Test,
2021). Moreover, due to the agreement this get participating for business operation enterprise
and have joint liability in respect of top level management of ability and risk to answer all
actions taken by an enterprise. They also get concern from a unlimited obligation. This is
reliable then sole trader due to simple investment in business enterprise. Moreover, due to
many business skills and occurrence of a partner they have original decision making which
help for amending productivity in business. But when a partner face trouble when they are
4

punished to a wrongful act for any other partner, all partners have joint obligation. This is
governed by partnership act which define as arrangement and dissolution for business
enterprise in any case of partner endure death or insolvency.
Partnership
Partnership offers less number of liability as compare to general business concern.
This is different in relation to make obligation where there is restriction in amount of
money which have to be spent by the partner in business enterprise. However,
business is made by two or more partner which is personally able for each action
taken in business organization(Sivani, 2019). But this did not have joint or collective
liability. In the registered office is obligatory, which have to be established as
according to government. The Limited Partnership act, 1907 governs as LLP which
save interest of partner. This is made for assist in effective functioning and written
agreement for business.
Limited Liability
This is related to Private Limited Institution where management is governed through
the companies act 2006. Providing detail for the Limited Liability. This mention
provision which were mentioned that how a company will be operated and defined,
which needs to make a private company and how this will be dissolved. This make
legal facultative in relation to the duties and rights for heads and associate for the
company who remain by the establishment of company(Voss, and Bouthinon-Dumas,
2020). Director is a head of company which have to be run management of the
company. The company will be owned by shareholders. A company have separate
corporate identity. The company have right to sue and can be sue. The owners of
company enjoys low personal obligation.
Recommendations for IOM Solutions
When a organization grow there need and timely develops so that it takes benefit to
the growing opportunities in different market place. This also support in business
adaptation which better circumstances. Thus Sam is recommended for choosing
Limited Liability Company to expand his business IOM Solution. Legal structure of
LLC gives a big range of benefits. This help in sharing responsibilities for the
management with many individuals. This also helps to retain high profit margins.
There is better responsibilities to plan taxes. More investors were attracted in this
5

kind of business for reliable nature, this helps in capital formation. It offer less
personal liabilities which is more beneficial for Sam.
Conclusion
In the analysis report this is concluded that the effective social control in business
organization is important so this is efficaciously purposeful. Business law regulates
operation and conduct for a business. Business run to aim for earn profit in longer
run. This vary in kind and size which a business owner choose the kind of reported to
the will. Sam is recommended to opt for Limited Liability Company for the expanding
their business. This helps him to carry out the personal and professional life with
ease at this time they acquire big investment which help him for earning more profit.
6

REFERENCES
Voss, W.G. and Bouthinon-Dumas, H., 2020. GDPR Compliance in Light of Heavier
Sanctions to Come—at Least in Theory (Oxford Business Law Blog, 29 October
2020). https://www. law. ox. ac. uk/business-law-blog/blog/2020/10/gdpr-
compliance-light-heavier-sanctions-come-least-theory. Oxford Business Law Blog.
Sivani, K.M.S., 2019. Critical Analysis of the Effects of Regulations under Competition Law
on Mergers and Acquisitions: A Comparison of the India, EU, US and UK
Laws. Journal of Corporate Governance and International Business Law, 2(2).
Test, R., 2021. An Unwelcome Development in the UK Corporate. BUSINESS LAW
INTERNATIONAL, 22(2).
Giliker, P., 2021. Legislating on Contracts for the Supply of Digital Content and Services: An
EU/UK/Irish Divide?. Journal of Business Law, 2021(2), pp.143-162.
Baillie, K., 2019. Regulation of Crowdfunding in the UK: Past, Present and Future. Bus. L.
Int'l, 20, p.147.
Mogaji, E., 2020. Brand name nomenclature of UK law firms. Available at SSRN 3644042.
Begum, A., 2020. Corruption in business: A critical appraisal of the Australian regulatory
regime in the light of the UK Bribery Act 2010. Journal of Financial Crime, 27(3),
pp.735-754.
Chambers, D. (2020). Tom Baum is Professor of Tourism Employment in the Department of
Work, Employment and Organization, University of Strathclyde, Glasgow. His
research is focused on policy and practice dimensions of frontline service work,
particularly within tourism and hospitality. He completed his PhD under the
supervision of Professor CL Jenkins. Department of Work, Employment and
Organisation, University of Strathclyde Business School. E-mail: tg baum@ strath.
ac. uk. Tourism in Development: Reflective Essays.
7