Law for Business Managers (LAW011-1) Assignment: Business Law Analysis

This report analyzes key aspects of business law through a case study involving Clean Machine Limited. It begins by examining the role and responsibilities of a sole director, Gemma, within the company, referencing relevant company law provisions. The report then delves into employment law, advising Gemma on the process of dismissing an employee, Charanjit, and whether she can lawfully do so, considering employment contracts and potential legal ramifications. Finally, the report explores alternative dispute resolution (ADR) mechanisms to solve disputes for Gamma, providing a comprehensive overview of business law principles applied to practical scenarios. The report covers sole proprietorships, partnerships, corporations, and LLCs, and various types of employment contracts.

Law for Business Managers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Role of sole director and its functions.........................................................................................3
PART 2............................................................................................................................................6
Advise Gemma on the process of dismissal and as to whether she is lawfully able to do this...6
PART 3 .........................................................................................................................................11
Advise given to solve dispute to Gamma..................................................................................11
CONCLUSION .............................................................................................................................12
REFRENCES ................................................................................................................................13

INTRODUCTION
Business law are those laws that helps in governing of business and commerce activities
that is to be performed by an organization. These laws also known as commercial laws and often
makes establishment of business organization possible within a country. It deals with both
private and public organizations by making them achieve goals with objectives in proper manner.
In such laws regulations regarding corporate contract, hiring practices, selling and buying of
goods is covered within it. Business laws are also known as commercial laws and covered within
civil law. Scope of these laws are vast as they deal with all aspects related to business ans its
management. Nature of business law is dynamic as it focuses upon upliftment of business with
its various processes. This file consists of three parts in which first part is based over sole
director, second part explains about employment contract and third part deal with various
solutions related to problem solving mechanism that is ADR.
MAIN BODY
PART 1
Role of sole director and its functions
Case Scenario: In this scenario Gemma has formed new organization named as Clean
Machine Limited. It deals over supplying of protective equipment to small businesses within
county of Bedfordshire.. Her role is as a sole director of company but not understand her role and
remit. Also no knowledge is posses by her which governs the role (Wang and et. al., 2016).
Role of sole director
Business laws are that kind of laws that has been making an business organization
formation possible over various aspects to be covered in business. There are various
organizations that has different nature as per which there owners acts. Such organizations has
been explained as follows:
Sole proprietorship: This is one of the most commonly formed business organization
within which there is single owner and all responsibility is hold by him only regarding the
business. Such organization there is one owner known as sole proprietor he is the one running
the business. All kinds of things has to be handled by him like funds, debts and profit. Different
advantages and disadvantages is been possessed by them and they are as follows:

Advantages of sole proprietorship are
 All the profit generated is been given only to the owner of business.
 No complex process is involved within the forming of business.
 More flexibility is included under processes of business organization. No documentation is required to make business legally established. This means
documentation does not exists within it.
Disadvantages Of sole proprietor
 All liability is been hold by business owner and problems is business is been handled by
owner that increases his burden.
 Shares is limited to owner that makes funding arrangement to be difficult by owner
himself.
 Also ownership cannot be transferred since business is not registered properly.
 Distinction is not there within personal income and business income which makes lack of
funds to be created at times.
Partnership business: These are that kinds of business in which two or more than two
persons come together to form a business firm with common motive of earning profit. In this
business all the aspects is to be handled by partners only and holds responsibility of business.
There are two types of partnership which exists that is general and limited partnership(Sun and
et. al., 2017). In general partnership the owners are not required to form and agreement while
forming such partnership organization. In limited partnership an formal agreement is to be
formed within parties that provides concreteness to there firm. Such partnership firm makes the
partner limited over liability towards firm as per there investment. Certain advantages and
disadvantage is been hold by them that has been given as follows:
Advantages of partnerships
 Resource generation is faster and better as more then one person is involved in business.
 Profit that has been generated is been shared by the partners equally or as per there
nature.
 Process of business formation is less complexed. This kind of business organizations is
very easily formed. Expense is also less for forming such firm.

Disadvantages of partnership
 Debts and losses accrued has to be paid by the partners that makes circulation of money
rigid in such firms.
 Disputes can arise within partners over various misunderstanding between them. This
makes business get collapsed.
 If death of partners happens then whole partnership is misshaped.
Corporation: These kind of business organizations is of private nature and directors are
elected to take care of an organization by making sure smooth running is done in appropriate
manner of various business processes (Summerton, 2018). All kinds of things has to be covered
and problems is to be handled by directors. Responsibility of all kinds of problems in relation to
organization is been handled by them. Ceratin advantages and disadvantages has been given as
follows:
Advantages of a corporation
 Limited liability is there for the owner and all kinds of process is been handled by them
only.
 Profit generated is been given to an organization upon debts and losses.
 Transfer of an organization is very easy to be formed with fair means to be used. Personal assets cannot be harmed in order to recover the debts of organization.
Disadvantages of corporation
 Process of forming an organization is complexed in nature.
 Forming of organization requires lot of documents to submitted.
 Rigidity in various process makes its running very complexed.
 With exceptions, corporate income tax twice.
Limited Liability Company (LLC): These organizations are of public in nature and has multi
owners that makes an organization cover various aspects related to it. In this large amount of
investment is been done by its investors and owners. Advantages and disadvantages that is been
possessed by organization is as follows:
Advantages of LLC are
 Organization owners has to share profit as per there investment. Profit shared by owners is without any double-taxation.

Disadvantages of LLC are
 Different laws can be used for limiting of ownership.
 Agreement formed should explain about all the things in detail and must explain about
information related to business been done.
 LLC involves high costs and should be legal mode of generating funds which makes legal
issues to be solved in near future possible.
As the above case it has to be explained that Gemma is the owner of business which
makes it clear that she is the sole director of business that makes her perform all activities related
to business. Such kind of directors is covered under sole proprietor business. Role that is played
by Gemma is to make profit generation possible, seeking that growth and success is achieved by
its organization. Also make sure that conflict is solved between employees. This is covered
within company law under section 177 of the act.
PART 2
Advise Gemma on the process of dismissal and as to whether she is lawfully able to do this.
Case scenario: In this scenario Gemma has employed Charanjit as a cleaner within
Clean Machine Limited. She observed that Charanjit is not regularly coming to work and his
attitude is also negative towards employees. Now Gemma regularly observes work to oversee
Charanjit's work. He has to be reminded about his work to be done in proper manner of the areas
that has been given to him. Gemma is now willing to terminate Charanjit's employment of
contract (Misenti, 2017).
Employment contract
An employment contract is that kind of agreement which has been legally enforceable in
both written and oral form. These contracts are generally related to employment a per the laws
defined within it. Such contract includes rights, exceptions and obligation mentioned both
company and individual. This is done on the basis on will of employment and includes
stipulations related to promotion, reward and termination. Terms in employment is been benefit
over responsibilities then an employer should accept while taking job. Two things covered in it
are as follows:

Executives and workers through skills which is demanded generally over bargaining
power related to employment.
These terms has been defined upon terms of employment to be set as per standards of
labour or employment law.
Employment contract is considered to be very effective and makes establishment upon
terms over employment relationship which exists between employer with employee. This has to
be marked out that employee is known for working which includes employees rights, working
hour, remuneration and various things regarding employment contract. It reduces risk in relation
to misunderstanding or confusion. While letter of employment is written this is to make sure that
it is reviewed by an legal expert holding specialization in employment law. As the letter should
include terms and policies of an organization in order to make sure documents is compiled in
appropriate manner(Lin, Law and Zhou, 2017). Though employment contract holds various
kinds of crucial element which has to be included within an agreement as per organizations
terms and conditions. In an employment contract things to be included is been explained as
follows:
 Name and personal details of the employer and employee
 Commencement date of employment
 Job title and description
 Tasks and duties performed by the employee
 Number of hours worked per week
 Kind of employment that is there in an organization.
 Methods through which payment is done.
 Amount to be noticed when required by employer and employee with employment
relationship.
 Confidentiality of the agreement should be maintained.
 Disputes and clause related to it has to be mentioned.
 Provisions upon dealing with various changes in employee's role or scope related to
duties is covered. Also explains about making applicability of employee upon changing
of role with duties.

Types of Employment Contracts
Every contract that has been existing within contract have there own positive and
negative factors. In this specific business needs has been defined within the contract. These
contracts cannot violate any right of employee posses by an employee. There are various kinds of
contract existing within employee and has been explained as follows:
Full-Time Employment Contracts
These contracts of employment includes full-time employees over ongoing employment
with working over an average of 38 hours per week. The number of hours according to week is
dependent upon nature of industry or organization that has been operating.
Part-Time Employment Contracts
Such kind of employment having an ongoing employment with typically working less
then 38 hours a week. They usually work regular hours each week and are entitled to the same
employment entitlements like full-time staff or permanent employment. This part of such
agreement is based on pro rata basis.
Casual Employment Contracts
Casual employees works according to demand that has been raised by the organization. In
an permanent agreement casual employee rights has guaranteed over ongoing employment. They
are not been entitled to get paid, sick or annual leave. Casual employment contract is to be
terminated at any time without any notice (Gruber, Holweg and Teller, 2016).
Fixed-Term Employment Contracts
In these employee has been hired over specific time. Typically an contract ends either
when an project is completed over an event that has been passed. In this fixed-term contracts
clearly made outlining length of employment over period from top to bottom. Such agreement
can be short-term, fixed-term worker that receives entitlements as that of permanent employees.
Independent contractor
Such contracts is been typically related to self-employed worker that makes services to be
contracted over organization. Contractors should negotiate over fees and working arrangements
over freedom to work with various employers. It’s important for an employer to clearly define
whether the person they hire is a permanent employee or independent contractor

As per the Fair Work Act 2009 this is lawful for an employer to make termination of an
employment contract possible. This is genuine redundancy over termination if its is not justified
or unreasonable while termination (Drašček, Buhovac and Andolšek, 2020). This is in relation to
Small Business Fair Dismissal Code.
Dismissing an employee
Employer is not able to make employee notice that is given which has been stated in
contract of employment through making minimum legal notice period to be achieved for long
period of time. Minimum notice is required to given to employee before its dismissal.
One week an employee is to be employed over time period which is to be of one month
and two years.
One week for each year complete employment which makes maximum up to twelve
weeks. It can be understood through an example for two years of continuous employment
through notice period should be of two weeks, for six years continuous employment over
notice will be six weeks.
An employee can be dismissed without any notice that is given till the time something act
has been done by him which does not fits into the parameters of ethics at workplace. Then only
employee can be dismissed without notice when he did act that has caused any kind of
misconduct within an organization. Also when such conduct resulted in making process of an
organization to be interrupted upon employees job. In this theft, fraud and violence is included
and at the time of dismissal fair procedure should be followed (Begkos, Llewellyn and Walshe,
2020).
From the above case scenario it can be concluded that Gemma has hired Charanjit as a
cleaner within Clean Machine Limited. In this Chanrajit's performance is not good and also his
attitude is not positive with other employees also. He is coming late to work and has to be guided
over the work again and again. This cannot be a ground for employment contract cancellation by
Gemma. Gemma can only terminate the contract when an act has been committed by Charanjit
causes misconduct which includes theft, violence and fraud in an organization.

PART 3
Advise given to solve dispute to Gamma
Case scenario: In this case scenario it can be observed that Gemma has made an contract
with Precious Time Limited for supplying of material. After sometime problem has arrived
between the parties over some thing. Gemma has been advice by friends over taking Precious
Limited tio court but is not sure about best way forward. Now she seeks for opinion available
over solving problem with Precious Time Limited. Gemma would like to work with them in
future.
Alternative Dispute Resolution (ADR): Alternate dispute resolution system is also
known as external dispute resolution which makes wide range of problem and disputes to be
solved with the help of various techniques over acting which makes means over disagreeing
parties which come into agreement and is not willing to go for litigation. Collective terms over
ways through which disputes can be solved by helping of third party, ADR has been increasing
over making adoption of tool that makes disputes to be solved outside the court. This is majorly
focused over making parties agree upon common point of view with the help of third parties by
making solutions to be marked out over problem between two parties. Such process has been
developed in UK after there was introduction Alternate dispute Resolution for Customer Dispute
and European Directive on alternative dispute resolution was introduced in the year 2015.
According to this various rules and regulation has been made which specifies measures to be
solved with the help of application in ADR. In United Kingdom ADR has played very important
role in making disputes to be solved with more ease. It is proven to be more effective which
makes disputes to be solved within sectors like finance, telecoms and energy to be solved in
proper manner possible (Arimoro, 2017).
ADR has developed very broader aspects in UK and has become part of its judiciary
system. Mainly various sectors has been using this kind of system and they are
communications, energy, finance and legal sectors. Various kinds of process is involved within
ADR that has been explained as follows:
Negotiation: This is one of the most affective method used within an organization by
dealing upon disputes takes place within an organization or between two individuals. According
to this negotiation means hiring an negotiator which makes both the parties to come an common

point over dispute happened. In this mainly focused upon finding solution for the dispute in
parties.
Arbitration: This is one of the most commonly used method that is used for solving
disputes. In this an arbitrator has been hired by both the parties that makes parties to come to an
conclusion. As per the process of ADR arbitrator hears facts from both parties and then an
judgement is passed. The judgement passed is bound to be followed by parties and there case is
been heard in arbitrary tribunal. In this arbitrator is responsible to make problem solved in better
and more effective way.
Mediation: In this process of ADR an mediator is hired for making parties come to an
common point over dispute to be solved. This makes agree over common point through meeting
with each other that is arranged by mediator (Aquilio, 2017).
The above case scenario has explained about dispute accrued within parties that is
Gemma and Precious Time Limited can be solved with the help of arbitration. In this an
appropriate judgement can be passed which makes parties solve dispute in proper manner.
CONCLUSION
From the above file it can be marked out that business laws are the laws which makes an
organization to conduct its business in more effective manner. This make management to be
improved also. Further in this file various kinds of business organization is discussed that are
related to scenario and then duties of sole director is been explained. Also employment contract
has been discussed which is an agreement formed between employer and employee at the time of
starting the job. It includes all kinds of information with obligation on which employer and
employee has agreed. End of the file covers about Alternate Dispute Resolution which is helpful
in providing solution over a problem outside the court. In this various process are there that is
negotiation, mediation, arbitration and conciliation which are used as per the nature of dispute
within two parties.

REFRENCES
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