Business Law Report: Business Advice for Country Pine's Growth

This report examines business law principles relevant to the expansion of a sole trader furniture business, Country Pine. It explores the sources of law in the UK, including primary and secondary sources such as legislation, case law, and EU directives, and the role of government in law-making. The report analyzes the impact of employment and contract law on business operations, emphasizing the importance of valid contracts and employee rights under the Employment Rights Act 1996. It provides legal solutions to potential business problems associated with converting from a sole trader to a limited company, including employment law and consumer protection. The report recommends solutions, such as alternative dispute resolution (ADR), to address organizational contentions and maximize productivity. The report emphasizes the significance of legal solutions for business success, focusing on employment and consumer protection acts to ensure smooth business operations and client satisfaction.

Business Law
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INTRODUCTION
TASK 1
P1 Sources of laws
P2 Role of government while designing law
TASK 2
P3 Influence of employment and contract law on business
TASK 3
P4 Legal solutions for business problems
P5 Justification if legal solutions7
TASK 4
P6 Recommend solutions on the basis of country8
CONCLUSION0
REFERENCES
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INTRODUCTION
Business laws are the main pillars of global marketing and trading. Every organisation
perform their function under these laws. Also it is mandatory to abide by the rules and
regulations made by the states. In United Kingdom it is associated with company laws and in
addition to that there are certain statutes that regulates the working procedure of companies
that falls under the constituency of European Commission. According to the given Scenario
Business Future is an organisation which provides legal and business advice to their clients
and Country Pine is one its beneficiary to the service they provide. Country Pine is an up
growing furniture sole trader who is expanding their business and are need of legal and
business advice. The main aim of this report is to provide them with suitable consultation
regarding their problems by explaining the legal formalities they are going to face through the
process of expansion. Also this repot deals with the extensive study of sources of laws and
various statutes that regulates the business lobby in United Kingdom.
TASK 1
P1. Various sources of laws
Generally there are two sources of laws Primary and Secondary sources. Primary
sources are such which includes the codified laws such as constitution and statues, moreover
it is consists of Custom and Usage of that particular area for which laws are being created.
Constitution is in itself a law. In United Kingdom, the European Laws and legislature are the
primary source for the construction of laws. Secondary sources are generally comprise of the
Courts, there precedents and decided cases.
European laws are the parent of all statutes that has been formed till now. It includes
treaties, directives and regulations. Treaties are the most important factor that involves in the
formation of law. They are in practice since the Roman Empire has been established. The
main purpose of treaties are to regulate trade between the states and also various legal
matters. European Union is the most significant part of the European laws. It is comprise of
council of ministers, House of Lords, cabinet ministers etc. And the laws that are being
created by the Union are implemented by the European Commission. ( R.A.Roberts, B.S.,
2011)
Similarly, the laws related to companies and business are implemented by the
Commission. And according to the Companies Act 2008 there are certain rules and
regulations that needed to be followed for the incorporation of company. But before that it is
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necessary to know in which sector the company is going to operate. There are two sector,
Public and Private. Public sectors are those which is administer by the State whereas in
Private sector individual entity are administering the companies. Also a company can form by
the process of partnerships. There are three types of partnerships, Limited, Unlimited and
Limited Liability Partnerships. The liability in unlimited partnerships are over an individual
in an unlimited unlike a limited or limited liability partnerships.
In order to form an organisation it is also necessary to get the company register by the
Registrar of the company. Before that it is mandatory to from a Memorandum of Association,
which provides an information about the capital and shareholders of the company. To
regulate the functioning of the organisation it is mandatory to form an Article of Association.
It includes the appointment of the Directors their liabilities also the duties of its employees.
In order to expand their business Country Pine has to abide by the rules and procedure
for the incorporation of the company.
P2. Role of Government in the formation of laws
Government is a body of three entities, the legislature, executive and the Courts. The
Legislature is where the process of making of laws are initiated. A bill is proposed in the
House of Commons and then it is executed by the European Commission which acts as an
Executive. The job of Courts are entirely separate and different. The Courts are the guardian
of the enacted laws and also they safeguard the constitution and the citizens of the state. The
enacted laws are reviews if there is any violation of rights, by the Courts. This is how a
government works, but the most important thing is how laws are generated.
Legislatures are the primary source of law making. In UK a law is formed by the
process of passing bill in the parliament. There are three kinds of bill, Private, Public and
Hybrid. A private bill is such which influences the interest of public where as private bill is
just opposite to it, it affects the interest of an individual. A hybrid bill is a mixture of both
that is it is a public bill but affects the interest of an individual. (Kroes, Q.R. ed., 2010)
A bill becomes an Act by certain process. It is proposed in the parliament in its First
Reading then a debate or discussion over the pros and cons of such bill takes place in its
Second Reading. After passing from these stage it is presented before a committee which
thinks over it existence, in the report stage. It is then transferred for the further discussion and
amendment in the parliament in its Third Reading. After passing from all these stages it is
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then produced before the Queen for the royal Assent. A Bill becomes an ‘Act of Parliament’
after getting the consent of the Queen. This is how the laws related to business are being
enforced.
TASK 2
P3. Impact of employment and contact laws
Contracts are the basic element of performing a business. A contract is an agreement
which is enforceable by the law. It is actually the terms and conditions on which a party is
going to perform their duties. In order to form a contract it is essential that it should be a valid
one. There certain elements for valid contract. There must exist an offer to which acceptance
is made by the other party. It necessary that acceptance is made without any inducement.
There must exist an intention of forming a contract without such a contact is null and void.
For every contract there must exist a consideration. A consideration is the amount for which a
promise is brought. Apart from that objective of a contract must not be prohibited by the law.
Employment laws are made to void the unnecessary harassment of an employee. An
employee enters into a contract of employment with the employer for the performance of the
said job. It is his duty to follow the instruction given by his employer but not those which are
against the provision of law. Employees are provided with certain rights such as right against
discrimination, redundancy etc. under the Employment Rights Act 1996. (Macaulay, S.,
2018)
Country Pine is expanding their business so they have to comply with the
employment laws. Also the new appointed workers are entitles for minimum wages and sick
leave under section 230 of the Employment Rights Act1996 and the judgment that came out
from the case of Uber taxi (Aslam v Uber BV).
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TASK 3
P4 Legal solutions to business problems
Country Pine is a small business entity whose main objective is to acquire maximum
return on their investment by satisfying the needs of clients with their qualitative products.
According to given case study company is involving in designing impressive furniture for
attracting clients in a defined time frame. Along with this, Business Future Ltd. Is a
consultant firm whose main objective is to promote various organization or new start-ups
towards expansion process for developing economy of a nation? Therefore, by analysing the
accounting facts of an enterprise consultancy firm is suggesting Country Pine is to extend
their business by launching creative ideas in order to maximize their profit in a minimum
duration. Moreover, they are also enforcing to convert their enterprise from sole trader to
limited company by following necessary facts or figures. ( Eren and et. al., 2012) Basically,
it is not easy to manage all the activities and task while conversion process because both the
types of enterprises are totally distinctive from each other. Some of the major differences
between sole trader and limited company are described as follows:-
Sole trader Limited company
 Run or controlled by single person
instead of any other member.
 Shares, profits and liabilities are not
shared with any other member.
 Profit is limited.
 Short term vision and mission.
 Less involvement of governing and
legal bodies.
 Method of registering is distinct
from other.
 Not more than 3-5 employees are
present in sole trader because of
minimum amount of funds.
 Entrepreneur and shareholders as
well as various investors are liable
for running or controlling an
organization.
 Profits and all the losses are shared
between necessary members
whosoever are money or shares are
invested in an enterprise.
 Maximum amount of profit.
 Long term vision and mission for
continuing their business for longer
period of time.
 An appropriate process of registering
is followed in this company.
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 There is absence of any legal agents
due to short term goals.
 Maximum number of employees
which is approximately more than
250 employees are connected with
this association due to high range of
funds.
 Agents are hired for completing
various business activities.
Throughout the analysis it has been understood that number of problems might arises
while converting sole trade organization to limited company because of number of
differences such as; employees, vision, legal formalities henceforth. Thus, company needs to
consider some of the necessary tools for overcoming various business issues which is
discussed as underneath:-
 Design employment laws and acts for creating positive relations with staff members
in order to accomplish business activities in more appropriate manner.
 Follow all the major rules and regulations for controlling chances of fraudulent
activities.
 Hire legal agents for managing business activities in correct manner as well as
understand each or every legal terms and conditions.
 Consult expertise and talented person for overcoming business issues by resolving
conflicting situations.
Hence, company have number of corrective or legal path for resolving their various
business issues in order to control maximum possibilities of mistakes. Furthermore, get
succeeded in enhancing their organizational performance by satisfying clients need or
requirements.
P5 Justifications
Throughput the assessment it has been understood that legal solutions are highly
beneficial for company success because it deals in correct manner without doing any
discrimination amongst employees. However, various useful acts and rules for protecting
employees are playing crucial role in minimizing organizational issues in a given time frame.
It is not easy to convert sole trader into limited because all the things get changed such as;
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number of employees, involvement of shareholders, sharing between profits as well as losses
and so on. Therefore, company is adopting appropriate method for reducing their
organizational issues by considering necessary facts or figures. Hence, major solution which
is followed by Country Pine is to focus on employment and consumer’s protection acts
because both of them are seen as most indispensable element for company success. For
example; staff members are liable for accomplishing or handling various business activities
whereas products are finally consumed by customers. It means, usage of acts related with
these two members are beneficial for company success. Therefore, usage of legal solutions
are very much appropriate for converting sole trader into limited organization.
TASK 4
P6 Recommend solutions
Alternative dispute resolution is one of the most prominent tool which is used by
company for resolving their organizational contentions in order to reduce hidden issues.
Basically, it helps an enterprise in overcoming various success problems in a minimum time
period for maximizing the company productivity. ADR is very much beneficial or
appropriate for corporate world because three of effective factors or tools are falls under this
category such as; mediation, negotiation and arbitration. Thus, proper description of these
tools are described as follows:-
 Mediation: - As per this element one mediator is involved in this method for clearing
all the hidden doubts and issues which is emerging at workplace. However, in this
process company is hiring a person to act as representative on the behalf of principal
for reducing contentions. In fact, both the parties are passing their messages through
middle men.
 Negotiation :- In this tool both the parties whomsoever are involved in a contentions
are coming closer to clear their doubts and trying to involved in a healthy
conversation for overcoming various business issues. Along with this, both of them
are interested in resolving conflicts with their consent for further move on. In fact, this
process is highly beneficial for company because safeguard the cost of hiring
professional bodies or any mediator person.
 Arbitration: - Professional bodies are playing very crucial in overcoming distinct
issues in appropriate manner by clearing all the hidden doubts. In fact, company is
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using this technology by hiring the professional bodies to reduce the issues in
minimum durations. Along with this, this technique is useful in multinational
company because involvement of legal agents are useful because they are fully update
about the necessary terms and conditions. Hence, it has been understood that
arbitration is beneficial for Country Pine while involving in several large contracts in
order to attain their initial set objectives and goals.
At last, ADR is seen as most appropriate tool that is used by various companies to
resolve their business issues in a minimum time period because in this tool three types of
methods are given. As a result company can use any of them as per situation demand or need.
It means, Country Pine must use ADR for resolving their various conflicting issues which is
incurred at workplace. But from all the three arbitration is much appropriate for overcoming
distinct issues which might incurred at workplace.
CONCLUSION
From the above report it has been summarized that legal laws are playing very crucial
role in overcoming various business problems by applying various useful norms. Their main
objective is to overcome distinct organizational issues in a minimum time frame. Along with
this prevent innocent people from getting misused and fraudulent activities. Therefore, above
assignment is showing the relevant acts which is followed by new start-ups or Country Pine
to while expanding their business across various international regions. For example;
employment acts, minimum wage acts, equal remuneration for staff members and consumer
protection act for clients. Along with this, role of governing bodies in designing law are also
expressed in this project. Hence, it has been understood that business laws are beneficial for
organizational development.
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REFERENCES
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