Business Law: Role of Directors, Contracts, and Dispute Resolution

This report analyzes key aspects of business law relevant to business managers. It begins by explaining the roles and legal provisions associated with sole proprietorships, examining the responsibilities of a sole director like Gemma in her company, Clean Machine Limited. The report then delves into employment contracts, specifically addressing the process of dismissal. It advises Gemma on the legal steps required to terminate an employee's contract, considering factors such as the employee's conduct and adherence to the contract. Finally, the report addresses dispute resolution, offering advice on how to handle conflicts that may arise within the business, ensuring compliance with employment law in the UK. The report covers various business structures, employment contract stipulations and various tests.

Law for Business Managers

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
PART 1............................................................................................................................................3
Explain about the role with legal provisions ...........................................................................3
PART 2 ...........................................................................................................................................6
Advise Gemma on the process of dismissal and as to whether she is lawfully able to do this...6
Advise given to solve dispute to Gamma....................................................................................9
CONCLUSION .............................................................................................................................10
REFRENCES ................................................................................................................................12

INTRODUCTION
Business law are the set of rules that is based upon making an organization set up itself
according to the guidelines given within the laws of an country. Such laws makes development
of strong structure by helping an organization achieve growth and success in an organization.
These laws consists of those amendments which leads over making an business organization
achieve both goals and objectives in proper way. They holds responsibility towards making
management of an organization manage its strategies according to law in specified manner.
Scope of business law is wider in a way that it covers all aspects that is related to business and
makes strategies to be developed accordingly. Nature is dynamic as it makes an organization
formation possible according to legal standards of law. This file is divided into three parts
wherein first part explains about sole director and second part explains about employment
contract. Third part dispute resolution is explained. All three parts consists of scenario that has to
be answered as per the identified topics.
MAIN BODY
PART 1
Case scenario: Gemma has made a new company name Machine Limited which makes supply
upon protective equipment to small business in country of Bedfordshire. She is sole director of
the company but does not have enough knowledge about her role. She does not know about
legislative privations regarding it.
Explain about the role with legal provisions
In business law different kinds of business organization exists and plays important role
according to there nature that is been possessed by them. Such organization has different
functions to be performed as per there main characteristics. These organizations is covered under
business law. So the organizations has been explained as follows:
Sole Proprietorship: These are those kind of business organization that is most
commonly used within market (Aquilio, 2017). In this kind of ownership an person is an sole
owner of business meaning that the owner of the business is an individual and holds
responsibility of whole business. Also profit and loss is bear by individual only. In this business
existence is dependent upon single owner and decision taken by him. They have both advantages
and disadvantages they are explained as follows:

Advantages of sole proprietorship are
 Profit earned is been kept by the owner himself.
Complexity is also not there in forming process of business.
Flexibility is there in running the business Documentation is required till the time issuing of license is included within particular business.
Disadvantages Of sole proprietor
All liability is there of debts and other problems in business has to be taken care by owner only.
Shares are limited only to one person that is the owner himself.
Transferring of ownership is not easy in such businesses.
Distinction is not there within personal income and business income which makes lack of funds
to be created at times.
Partnership: These are that kind of business organization which is formed by two or
more then two persons with common motive to earn profit. In these problems in relation to
business is been handled by partners with responsibility over debts and profits generated form
business (Begkos, Llewellyn and Walshe, 2020). There are two types of partnership existing
under this organization that is general and limited partnership. According to general partnership
no formal agreement is required for partnership formed within parties. In limited partnership is
that various partnership is involved within formal agreement formed within partners of an
organization is required to be presented. This makes liability of partners to be limited as per
investment made by partners. In this advantages and disadvantages is been given as follows:
Advantages of partnerships
Resource generated is high as capital required is more.
 Profit is been shared by partners within an organization.
Process of forming the business is very simple.Expense is also less for forming such firm.
Disadvantages of partnership
Each partners hold responsibility upon all debts and loss occurred during business.
 Selling in business is very complex and permissions of partner is required for.
If death of partner happens then whole firm collapse.
Corporation: Such business organization is private and gives direction that is been hired
in order to make organization work in smooth and appropriate manner. All kinds of functions

and problems is required to be handled by directors. Due to the importance of the position that is
hold by them. They responsible for all kinds of problems in relation to organization. There are
various advantages and disadvantages they are as follows:
Advantages of a corporation
Limited liability has been given to owner over debts and losses (Boda and Zsolnai, 2016).
Profit generated is used for the corporation only and not for personal use.
Transfer of organization is easy but only when faire means are used.Personal assets cannot be seized to pay for business debts.
Disadvantages of corporation
Process for formation of organization is very complexed.
Establishment of making corporation is very difficult.
With exceptions, corporate income tax twice.
Limited Liability Company (LLC): As per these kinds of business organization shareholders
and investors are those owners within an organization. In this large amount of investment is been
done and various owners are there within it. Advantages and disadvantages are as follows:
Advantages of LLC are
Organizations owners is required to take care of both profit and loss.The profit of LLC has to be shared by the owners without any double-taxation (Drašček,
Buhovac and Andolšek, 2020).
Disadvantages of LLC are
Various laws are there that limits ownership.
Agreement should be in detail and precise way.
Being an LLC high costs is there for making legal and filing fees.
From the above scenario it can be understood that Gemma is an sole director that makes
it clear that all the responsibility of business is been hold by her. Such kind of directors is
covered within sole proprietors business comes under business law. So, it can be observed that
nature of sole proprietor is that all responsibility of business is been hold by the owner for this
purpose only role of Gemma is that all aspects of business has to be taken care by her only.

PART 2
Case scenario: Gemma has been employed Chatanjit as cleaner for Clean Machine Limited.
Now it has been analysed by her that he is never on time for work and attitude towards job is
negative and also with employees attitude is not good. Work done is regularly checked by
Gemma and remains over cleaning areas that has been allocated to him. Now Gemma wishes tio
terminate Charanjit's employment contract.
Advise Gemma on the process of dismissal and as to whether she is lawfully able to do this
Employment contract: These are those contracts which holds legal binding that is there
within employer and employee. In UK law term employee is been explained within Employment
Right act 1996. According to the act employee are those individual that has entered within a
contract upon services entered within it. Main focus is upon those contracts which makes an
individual applicable for services which has been applied by him or her. Under these contracts
subcontract or freelance work is included within the act. According to act different kinds of
guidance is given for contracts. Further examination is done over things mentioned within
written statement that is related to employment is covered. This provides over advice upon
drafting by amending of contracts by varying contractual terms. Employment contracts can be in
both expressed and implied form which means written and unwritten form (Gruber, Holweg, and
Teller, 2016).
Expressed terms are that kind of contracts which is in written and verbal state. Written form and
are that kind of contract which are not restricted to written form only but may include various
organizations and documents is also important for applying to job until there is existence of
contract that has been brought into affect. For making of draft and expressed terms employers
needed to be familiar with relevant laws like employee status, the rules governing written
particulars, equal pay and the minimum wage, fixed-term and part-time work, flexible working,
parental leave and working hours. The terms mentioned within it should be able to reach over
legal standards or to minimum legal standards like right to get paid holidays and right to get rest
over both weekly or daily which ever is been given under the employment contract or has been
agreed (Lin, Law and Zhou, 2017).
Implied terms has been refereed to as those kinds of implied contract that takes place
within the terms that is Incorporated through collective agreements, workforce agreements,
incorporation of statute, individual contract by custom upon particular time period. They are the

terms which is implied and provided with 'business efficiency' within an contract. In contract of
employment it is very much required over an contract and includes elements that is been govern
within an contract. They are been explained as follows:
 Offer of employment through employer has to be made and condition has to be clear.
 Acceptance by employee is to be done through an offer.
 Consideration is to be made over both employer and employee which is done over wages
which has to be paid by both employer and employee.
 Intention should be there for making contract that legally binds employer and employee
within the legality possessed by law.
Different kinds of working agreements is there and has been evaluated over period of
time which makes development through flexible models by accelerating over technical changes
that has taken place within them. According to these various kinds of status is been given for
employment status that is employee, worker and self-employed. Act is provided by employee's
upon different rights by protecting dignity within employees. Such contracts is based upon
relationship which exists between employer and employee. Different tests are there that is used
to decide weather a person is an employee or not. Such tests has been explained as follows:
 Mutuality of obligation: As per this it has been checked weather employer have to
provide work and makes work to be offered to him.
 Control: This test is been based over employer and make worker perform to be done in
disciplined by the employee or not (Misenti, 2017).
 Integration: How long does employee is to be integrated in an organization.
 Multiple: Looking over different factors by including substitution which makes workers
to send another worker for employer on behalf of them.
Termination of an employment contract
Both employee and employer is to be decided up[on making termination within contract
related to make employment. Employees can only be terminated through resigning over job or
employer willing to terminate through contract by dismissing employees.

Resigning from a role
Employees is required over reasons to be given which makes resignation clear. It is
required for giving in writing for reason to leave job. Employees is required to serve for one
month service that is to be noticed till the time long period is required to be mentioned within
contract in relation to employment. In case of long notice period employee should give
contractual notice or else result is been given into breach of contract. As per the situation an
employee is required to take leave without giving notice over short notice which is there for short
time period. Then required information is to be given to employer and then it can be observed
that weather employer is agreed upon it or not. This is dependent over employer to seek
acceptance that has to be requested or not (Summerton, 2018).
Dismissing an employee
Employer is able to give employee at least notice which is given that is stated in the
contract of employment or legal minimum notice period even for longer time period. Legal
minimum notice required to makes dismissal possible:
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 employer has to be dismissed without any notice only when something unethical has
been done by employee which makes misconduct to be done. This has resulted in making
process of an organization to be interrupted over employee from the job. Such acts include
theft, fraud and violence. Employer should make fair procedure when dismissal is to be done
(Sun and et. al., 2017).
As per the scenario Gemma has employed Charanjit as cleaner for Clean Machine
Limited. Though his work is not proper and is to be guided for work and comes late to work. For
this he can be warned by Gemma and impoverishment is not seen he can be terminated from

job . Terminating him is not the option so he has to be given chance over making improvement.
Cancelling the employment contract is not ethical practice. As his acts does fall in the category
of theft, fraud or violence (Trad and Kalpić, 2019).
PART 3
Case scenario: Gemma has come into contract with Precious Time Limited for supplying of
material. Form quite sometime there has been problems within organizations upon various
reasons. Gemma has been told by friends that she should take Precious Time Limited to court but
not sure the best way forward. Now she seeks for advice over options that is available to her for
solving of dispute with Precious Time Limited. Gemma would like to work with them in future.
Advise given to solve dispute to Gamma
Alternative Dispute Resolution (ADR): This is the process by which disputes is been
solved without going to court. In this various kinds of precess is involved that helps in solving of
dispute when applied in it. Less cost is involved within it and making accurate results to be
marked from this. Also ADR is helpful in developing of framework which provides appropriate
solution over problem existing within two parties. It is mainly focused upon making parties come
to common point through third party that makes them find out solution over a problem. Such
process has developed itself in UK when on 1st October 2015 Alternative Dispute Resolution for
Consumer Dispute that makes set of rules and regulation to be specified over measures to be
widen according to application within ADR. In United Kingdom ADR has made very impressive
encouragement by resolving of dispute possible. It is to be proved that effectiveness has been
making disputes to be solved existing within various sectors like finance, telecoms and energy
to be solved in proper manner possible. Further this has helped in developing of different kinds
of dispute which has to be solved and is not related to various sectors. ADR is proven to be more
impactful within UK as this resolution has changed and another resolution has been launched
that is Alternative Dispute Resolution for Consumer Dispute and European Directive on
alternative dispute resolution (Xin-qiang, 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.

This ha become compulsory in order to develop for making signpost to be approved
through ADR scheme that made various disputes for solving within customers possible.
Aviation sector various kinds of quasi-complsary action is been used in order to solve dispute by
using different elements. Different obligation required to be taken into account upon ADR
scheme through making PACT included within it. Various processes that is been used in this
system has been explained as follows:
Negotiation: This is one of the most important kind of method which is been used
commonly to deal over disputes accrued within parties. In this an negotiator is been asked to
conduct a meeting between parties and makes them sit in front of each other to solve the dispute.
In this an common point of agreement is been made over dispute happened.
Arbitration: This is also one of the most appropriate method which makes dispute to be
eradicated. Both parties hires arbitrator who listen about the facts from both the parties. After it
only judgement is been passed over disputes to be solved. In this arbitrator is responsible for
making appropriate decision to be taken upon dispute that has accrued.
Mediation: This is same process as that of negotiation in this an mediator is hired which
makes dispute to be solved. Its decision may or may not be obeyed by parties (Xueliang, 2017).
From the above scenario it can be observed that in order to solve the dispute between
Gemma and other party arbitration is the best method of ADR to be used. This is going to make
proper decision to be passed by parties.
CONCLUSION
From the above discussion it can be marked out that business laws are those laws that is
been used by making establishment of an business organization possible in legal manner. In this
file three case scenario is been given which deals with various things that is employment of
contract , sole director and Alternate dispute resolution is covered within it. Sole directors are the
persons that holds responsibility of business. Contract of employment is that kind of contract
which exists between employer and employee. In the end Alternate dispute Resolution is been
explained which over various process that has been helping in solving of various kinds of
disputes within two parties with the help of third parties.

REFRENCES
Books and journals
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strategy-as-practice perspective. Public Money & Management. 40(4). pp.265-275.
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Drašček, M., Buhovac, A.R. and Andolšek, D.M., 2020. Moral Pragmatism as a Bridge Between
Duty, Utility, and Virtue in Managers’ Ethical Decision-Making. Journal of Business
Ethics. pp.1-17.
Gruber, V., Holweg, C. and Teller, C., 2016. What a waste! Exploring the human reality of food
waste from the store manager's perspective. Journal of Public Policy &
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A task-crafting explanation of the curvilinear moderated relations. Academy of
Management Journal. 60(1). pp.156-177.
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Liability for LLC Members and Managers. Atl. LJ. 19. p.20.
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hospitality and tourism. International Journal of Contemporary Hospitality
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Architecture Framework for Managers in Business Innovation: The Role of Cyber and
Information Technology Security in Automated Business Environments. In Global
Cyber Security Labor Shortage and International Business Risk (pp. 19-37). IGI Global.
Xin-qiang, J.I.N., 2017. On the Stipulation Perfection about the Competitive Restriction through
the Analysis of Legal Basis about the Restriction Obligation for Senior
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