Business Law Report: Legal and Business Advice for Expansion

This report provides a comprehensive analysis of business law principles relevant to business expansion in the UK, focusing on the case of Country Pine, a furniture business seeking to expand. It begins with an overview of the sources of law, including primary and secondary sources, with a specific focus on UK and European Union laws. The report then examines the role of government in making laws, outlining the legislative process in the UK Parliament. Key areas of business law, such as contract and employment law, are explored, including the essential elements of a valid contract and the rights and obligations of employees and employers under the Employment Rights Act 1996. The report proposes solutions to the challenges faced by Country Pine, such as incorporation and strategic planning, and justifies these recommendations by highlighting the benefits of limited liability and attracting investors. Finally, the report discusses alternative dispute resolution (ADR) methods, including arbitration, mediation, and negotiation, and advises Country Pine on the most appropriate approach to resolving disputes. This report is a valuable resource for students and professionals seeking to understand business law and its practical applications.

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Sources of laws......................................................................................................................1
P2 Role of Government in making laws.....................................................................................2
TASK 2............................................................................................................................................3
P3 Effect of employment and contract laws...............................................................................3
TASK 3............................................................................................................................................4
P4 Solution to the Problem.........................................................................................................4
P5 Justification of Solution.........................................................................................................4
TASK 4............................................................................................................................................5
P6 Alternative Dispute Resolution..............................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Trade and Commerce has been exercised from historical time. Every state has their own
policies of business. Bunch of these policies are known as Business Laws. It is mandatory for
every business organisation to obey such laws enacted by the regional government. These legal
obligations are enforced upon trading entities to avoid any contingency with respect to business.
It is usually comprise of sales of goods, employment laws, contract laws, consumer protection
and their rights etc. For executing a business it is also necessary for an organisation to get
register or incorporated. Business Future is a consultancy which provides advice to various start
ups and already existing organisations to expand their business. Country Pine is seeking legal
and business advice for the expansion their business. This report includes a brief explanation of
various sources of laws in UK and other statutory provisions which deals with expansion or
stating up an organisation.
TASK 1
P1 Sources of laws
Laws are considered as significant pillar of a civilised society. These are the terms and
conditions made by governing entities, binding upon its citizen. So to avoid any revolt against
these policies law are constructed according to the needs of society. Generally Customs are used
as primary source of laws with constitution, international conventions and treaties. Customs are
those practices which is performed by society for a long time and it has been a part of their
culture. Constitution is defined as supreme law under which other statutory obligations are
constructed, it usually deals with fundamental rights and directive principles with other legal
obligations. Treaties are taken as essential source for building trade and business laws because
treaties are one of the medieval sources, when trade and commerce was conducted globally.
(Bagley, 2010)
There are generally two types of sources Primary and Secondary. Sources that are
discussed above, comes under Primary one. Secondary Sources includes, the courts judgements
and precedents. Sometimes issues are new and laws related to it are not being able to find in
existing acts, so these cases acts as guidelines for the construction of new laws. In United
Kingdom, European Laws are the primary source and it is formed by legislation or parliament.
European Laws are applicable in European Union. EU is a group 28 states where business is
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executed under the terms of European Commission which was established under Communities
Act 1976. EC acts executive and is responsible for implementing laws in EU.
In order to start a business it is essential to have an idea of which sector the members are
going to start their business. Public and Private, these are two types of sector in which a person
can perform trade and business. Public sector is regulated by the State Government where as
Private sector involves individual control. Apart from sectors it is also necessary to know about
various liabilities a company can work as. There are two types of liabilities Limited and
Unlimited. A limited one is such in which partners are liable for their act only not of other unlike
a unlimited one, in which owner is liable for paying out standing amounts and profits.
Country Pine wants to expand their furniture venture so to upgrade their business they
have to incorporate their organisation. Incorporation includes certain documentary provisions
such as Memorandum of Association and Article of Association are essential to be formed by the
members. MoA includes details about investors, capital and shareholders where as AoA is
consists of constitution of company and certain other regulations such as, appointment of
directors their duties and responsibilities. So to scale up their business Country Pine need to
register by the Registrar under Companies Act 2006.(Bodie, Kane and Marcus, 2014)
P2 Role of Government in making laws
Laws are created by governing bodies of the state. It is a working group of legislature,
Executive and the Courts. In the United kingdom, parliament is comprise of House of Lords and
House of Commons. There is Supremacy of Monarch that is nothing is above the Queen. The
laws are framed by members of parliament. Laws are passed through a process which involves
formation of Bills. There are there types of Bills, a private, public and hybrid. A private bill
reflects the interest of an individual where as a public one affects all. Hybrid Bills are formed to
influence the interest of an individual through a public bill. Bills are usually made as Model
Draft of any law which the Government will enforce after getting consent of members of
governing bodies. (Crane and Matten, 2016)
A bill is presented in the parliament before House of Commons and then House of Lords.
All these house works according to a decided reading process, First and Second Reading, where
bill is proposed and discussed or debated over its facts, then a committee made a report of such
readings and produce it again before the Houses in it s Third Reading. After discussion in both
the House a bill is amended, if there is any and presented before the Queen for Royal Assent.
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After getting Royal Assent a bill become an Act of Parliament. In this way laws are made by the
governing bodies in UK.
TASK 2
P3 Effect of employment and contract laws
Contracts are the most significant part of conducting trade and business in the market.
These are such conditions on which parties has agreed to get into business with each other. In
UK it is complied by English law of contract. A contract is an agreement which can be enforced
by law. A person is liable for breach of contract on failing to execute such conditions. A valid
contract has certain elements such as offer, acceptance, intention and consideration.(Eren and et.
al., 2012)
To frame a valid contract there must be an offer which can be made to a specific person
or to public (Carlil vs Coke Co.). For every offer it is obligatory to provide an acceptance on the
terms on which offer has been made by a party. Also there must exist intention to form a
contract. Objective of a contract should not be prohibited by law. Consideration is given for
performing promise made under contract. It is also essential that acceptance should be without
any threat or inducement. (DiMatteo, 2010)
Employees enter into employment with employee through contract of service. According
to is an employee is bound to follow the instruction of employer but no those which is against
provisions of law (Morrish v Hensly). Also it is his duty to fulfil the requirements made by its
employer in the course of his employment. An employee is also vested with some rights under
Employment Rights Act 1996. Theses rights are immunity against discrimination, redundancy
and dismal.
According to section 230 sub-clause 3 of this Act, a worker is such person who enters
into contract of service with employer so he shall be liable for minimum wage and leaves.
Moreover according to the ruling of Uber Taxi case (Aslam v Uber BV) judges decided that a
worker shall have all those rights as mentioned under ERA 1996.
In order to lower down the workforce Country Pine has to appoint new employees. It is
must for the managing department to keep intact with these rights of employees and also they
have to follow the judgements made by courts.(Foss and Knudsen, 2013)
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TASK 3
P4 Solution to the Problem
Starting or expanding a business is not an easy process. There are lots of challenges faced
by beginners. Also, existing organisation finds it difficult to inflate their venture because
expansion needs more investment and there is uncertainty of future expansion. Apart from this
there are certain other problems like appointing the right person for job, advancing technology,
new machineries, creative team, etc. needs to be solved by emerging ventures. (Grundfest, 2010)
(Johnson, 2013)
In the given case study Country Pine is a Sole Trader and they are growing up their
business, so they have to incorporate themselves under Companies Act which would be a lengthy
process. What the can do is appoint a legal expert for performing all such obligations. And a
managing director can be recruited to perform managing functions of the company.(Kinicki and
Kreitner, 2012)
It is advised to the client to expand their business by registering their company as a
limited partnerships because it would help them in maintaining liabilities of its partners. To solve
the issues of expansion they must form an effective strategy by consulting business experts.
P5 Justification of Solution
A limited company is that organisation in which liabilities of partners are limited. They
are only responsible for the acts done by them not of the other partners. Sole trader is a type of
unlimited partnership where debts and profits are incurred by its owner. In a limited liability if a
partner or member does a fraud then he will be responsible for it and losses are covered form his
part of investment. It would be the best option for Country Pine to incorporate as a limited
company, so to expand their range of trade and marketing.
Unlike a sole trader a limited company has to follow a lots of paper work especially it
would be a fiduciary duty to file annual tax report by directors of limited company. There is only
one disadvantage that is privacy of company will be not possible unlike that of unlimited
company. Moreover, Country Pine can enter into global market by supplying their goods in other
countries. Also investors would be interested to invest more and will attract more customer
because of being a registered company.
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TASK 4
P6 Alternative Dispute Resolution
Dispute arises due to breach of duties which is contained in a contract. If a party fails to
execute their part of responsibilities then it would result in conflict between the parties. A dispute
can be sort out in two ways either by instituting a suit or by the methods of Alternative Dispute
Resolution. (Ye and et. al., 2011)
An ADR is consist of Arbitration, Mediation and Negotiation. These methods are less
expensive and time consuming. Moreover, a dispute can be solve through this in a simplest
manner as it does not involve court proceedings. Through these measures parties can maintain
privacy of issue. (Alternative dispute resolution (ADR), 2017)
An Arbitration is such process by which parties appoints an arbitrator who acts
independently. These arbitrators further appoints an Umpire whose job is to issue an award t the
party, it is more like an agreement of settlement between them and they are bound to follow such
decree. Also parties cannot appeal against it until the decision was given without equity and
natural justice.
In Mediation parties choose a mediator who can be an expert in his field to provide
solution to the parties in dispute. Similarly, Conciliation is also performed in an ADR where it is
a duty of conciliator to provide solutions to the dispute.
Negotiation is an easiest way in which two parties can resolve their dispute because it
does not involve a third person which ensures the privacy of that issue.
I has been advised to Country Pine that they can resolve dispute first by negotiation with
Poland Supplier because their relations are peaceful also it would provide them secrecy of such
dispute. If this doesn't help them then they can go for other ADR methods.
CONCLUSION
It can be concluded from above analysis that to start or expand a business it is
conspicuous to abide by the laws of business. Moreover, this report deals with various sources of
laws and how government is involved on creating, in the context of UK. Also, it has been
discussed in this assessment about certain employment laws and in detail, contract laws, how
they are important to perform business by an organisation. It is also dealing with solution to the
problem given in the brief with relevant case studies. The end part of this analysis contains the
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solution for resolving a dispute through ADR and what will be suitable method according to the
given case study. This is a complete report about business law and its sources with perfect
references and case studies.
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REFERENCES
Books and Journals
Alix Adams Books
Bagley, C.E., 2010. What's Law Got to Do With It?: Integrating Law and Strategy. American
Business Law Journal. 47(4). pp.587-639.
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. McGraw-Hill Education.
Crane, A and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive advantage.
American Business Law Journal. 47(4). pp.727-794.
Eren, S.S and et. al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Foss, N.J and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L., 38, p.405.
Kinicki, A and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.Swartz, L.B., Cole, M.T and Shelley, D.J., 2010.
Instructor satisfaction with teaching business law: Online vs. onground. International
Journal of Information and Communication Technology Education (IJICTE). 6(1),
pp.1-16.
Ye, Q and et. al., 2011. The influence of user-generated content on traveler behavior: An
empirical investigation on the effects of e-word-of-mouth to hotel online bookings.
Computers in Human Behavior. 27(2). pp.634-639.
Online
Alternative dispute resolution (ADR). 2017. Available through
<https://www.citizensadvice.org.uk/consumer/alternative-dispute-resolution/settling-
out-of-court/>.
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