Business Law Report: Business Organisation, ADR, and Legislation

This business law report covers key aspects of business law, including the formation, management, and funding of various business organizations such as sole proprietorships, partnerships, private limited companies, and public limited companies. It explores the advantages and disadvantages of each organizational structure. The report also explains the differences between standards, legislation, and regulation and their impact on businesses. Furthermore, it delves into company, contract, and employment law, outlining their significance and effects on organizations. The report includes case studies illustrating the application of Alternative Dispute Resolution (ADR) in resolving business disputes, specifically focusing on breach of contract and employment law scenarios. The report provides a comprehensive analysis of the legal framework governing business operations and dispute resolution.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Covered in Booklet.....................................................................................................................4
TASK 2............................................................................................................................................4
Business organisation formation, management and funding......................................................4
Advantages and Disadvantages of various organisations...........................................................5
Difference among Standards, legislation and regulation and its impact over business..............6
Explanation of company, contract and employment law with its impact over the organisation.6
TASK 3............................................................................................................................................7
CONCLUSION................................................................................................................................9
REFRENCES..................................................................................................................................9

INTRODUCTION
Business laws are those legal aspects which deals with the formalities that is required to
be followed by all organisation in order to establish themselves legally within the boundaries of
rules prescribed under business law. The law is also named as commercial laws and covers
various other particular regulation like company, contract and anti trust laws. Scope to be
covered is basics of law, lawmaking by legislatives, law applied in various courts and evaluation
of law in relations to current scenario. Types of organisations, ways of funding and there
management, with advantages and disadvantages. After this company, employment and contract
law are explained as per there effect upon an organisation. Further ADR system in context to
different aspects is going to be covered.
TASK 1
Covered in Booklet
TASK 2
Business organisation formation, management and funding
There are various types of organisation which are to be covered under this heading. These
organisations comes under two heading incorporated and unincorporated. There are certain steps
which are required to be followed for the formation of an organisation (Peterson. and et. al.,
2016). All of the above are explained below.
Unincorporated Organisations: These are those types of organisations in which the legal
formalities are less rigid to be followed. Business which falls under this category does not have
to follow lengthy procedure for its establishment or registration. Some of these are explained
below and they are:
Sole Proprietorship: They are that type of business which is run by a single person or an
individual. This does not mean that he cannot higher another person to work with him. The
process of registration requires the name of the person doing the business and HMRC number is
also required by it (Boldt, Kassis. and Smith, 2017). The management of this organisation is
done through managing the persons working for the individual. Funding of these organisation is
done through the resources available to an individual like investment done by family member
and money borrowed from friend.

Partnership: In these organisation there are two or more than two persons which come
together to form an business. The organisation has to get itself registered under the HMRC.
Management of these organisation are done by the person who has been given the opportunity to
do it by the other partners. Funding of these organisations are done through Loan from banks,
personal investment by any partner and credit are few ways of investments.
Incorporated organisations: They are those forms of business and companies that are
required to follow legal process in depth. Companies registered under this have to go through
rigid and lengthy process that is more complexed in nature. These organisations are explained
below:
Private Limited Company: These are those types of organisation that has to follow the
rules prescribed under the Companies act of UK. The company is managed by the manger who is
responsible for management of employees and other managing activities. These organisation are
required to be form Memorandum of Association and Article of association and also includes the
amount of person going to be part of it and has to registered in the companies house. Funding of
the organisation is done by taking loan from banks and inviting investors to invest in there
company.
Public Limited Company: These are the organisations which are required to be follow
the proper process prescribed under the law. In these types of organisations Article of
Association and Memorandum of Association is to be formed and name of the company is also
included with it. After this the company has to give all the important documents to the
Companies house for final registration which has to be given by it (Amariles, Bassilana. and
Winkler, 2018) . Funding is done through stakeholders of the company, taking loan from bank
and companies of government that provides loans like LIC etc.
Advantages and Disadvantages of various organisations
Sole Proprietorship: It does not involve complex process of formation like the limited
company which makes it more flexible in nature and profit are also enjoyed by individual
running the business which makes high profit gains. It can have shortage of resources at anytime
due to lack of investors this can lead to huge amount of loss and also dissolution of business
(Allen, 2017) .
Partnership: The advantages of this organisation is that it is easy to formed as only two
persons are needed to start it and does not require much complexity this makes decision as they

are made by the partners or the person authorized for it only input has to be given by partners .
Disadvantage of it is that it is not stable in nature means any partner leaving due to any reason
results in ending of the partnership.
Private Limited Company: Advantage of this is that the control of organisation relies in
the hand of the owner due to which no effect is going to take place if any person leaves the
organisation and all decision are taken by directors . Disadvantage is that it has restriction in
transferring of shares. As it can be transferred only by permission of all the members of board of
directors after having board meeting in which proper agreement is prepared for it.
Public Limited Company: Advantage is that flexibility in investment is there as everyone
can invest in a company which eventually leads to increase in investment and loss chances is
going to reduce. Disadvantage is risk of losing ownership which means multi pal person
investing may claim for owner at anytime as it is open for investment (Barrédy, 2016).
Difference among Standards, legislation and regulation and its impact over business
Legislation:It involves the formation of regulation by parliament. This can also be
understood through the acts passed by the government (lump. and LaRosa, 2017). They impact
an organisation in a way that at the time of formation of rules these organisations has to form
basic framework within the boundaries of it.
Regulation: It means those rules which are required to be followed by the organisation in
order to avoid any kind of legal issues. These are important to be followed in a sense that if not
followed properly then company can fall into legal problems.
Standards: They are those set of rule required to check that everything is done keeping in
mind all the legal aspects within an organisation (PLee, 2017)).
This can be explained through an example suppose a company knows that particular rule
is impacting the salary of employees and still continues with it. Issues cab be faced by the as case
can be filed towards the injustice done by them.
Explanation of company, contract and employment law with its impact over the organisation
Every sort of business are required to understand that they must be able to follow the
terms and condition of law. While following the law, organisation can see that different
legislation will have different impact which will change the overall scenario of the organisation.
Below, there is the discussion about some of the law and its impact upon business organisation.

Company law: This is the law which governs the business organisation as every every
guidelines are mentioned under Companies Act, 2006 (Samuels, 2017). It has a great important
for any of the business organisation as it simply allows to understand and tackle all of the
situation that how any of the work is needed to be conducted which simply reduces the errors
within the organisation. This law is applicable on all of the organisation which are commenced
under incorporated organisation. There are favourable as well as unfavourable impact of
company law upon the organisation. The main impact of company law is that, it gives the burden
to follow lots of criteria which incur unnecessary expenses and reduces the overall profit of the
company.
Employment law: The law and regulations which explains about the relation of
employer and employee is known as employment law. This law simply explains that how
relation should be maintained and how they are required to treat each other in any of
circumstances. This law has a moderate impact on organisation where it doesn't give right to
discriminate any of the employees (Wen, 2016). Also, this laws says about the wages rate which
sometimes increases the overall expenses of the organisation.
Contract law: This is law which discusses about the relation between two parties while
performing any of the task. This law says that whenever any of the party enters into the contract
they are not allow to terminate it in between as it will be counted in breach of contract. Also,
whenever contract is signed the chances of accomplishing the target increases automatically
which is one of the positive impact upon the business organisation.
TASK 3
a)Case
In this problem the facts given are Maxwell is a dealer of art and has agreed to Angelica to
sell a painting by Duvell for £500. Angelica has deposited 10% of cash in advance and the rest of
the payment is to be done after the close of exhibition show in Birmingham. Before the closing
of exhibition, it is discovered by Angelica that Maxwell has negotiated with other person and is
going to sell the painting to him for £900. There is applicability of ADR as dispute has arisen
between the parties, due to the negotiation done by Maxwell to another client.

This can be solved through arbitration that is a process of ADR. It means an arbitrator is
there who listen to both the parties and the case coming under such dispute is deal in arbitrary
tribunal court and then gives a judgement regarding the dispute. Also, there are other alternate
through which this particular case can be resolved. Both Maxwell and Angelica had a contract
where consideration was also there. It means that both of them have agreed upon the contract.
After this, painting was sold to another person which means there was a breach of contract. Here,
Angelica has the right to sue Maxwell and recover all of the damages and as both of them had
already entered into the contract which means that the contract which has been formed between
Maxwell and another client was void. Through this particular process damages can be recovered
easily.
b) Case
In this problem Nicholas Jakob is an electrician who is married and is living with two adult
children. He has worked for his entire life in Newcastle. Last three years he is working for
Regents Vision and due to its closure, he got an offer of job in London and refused to move there
because of this he lost his job. In this case the element of fact is Nichol Jakob does not want to
leave Newcastle (Gaitán, Herrera-Echeverri. and Pablo, 2018).
This case can be solved through negotiation process of ADR in which there is going to be a
negotiator who acts as a communicator between the parties and has to speak to the two parties
individually and then has to make them sit together to come to a conclusion. He does not give
precise judgement only but gives a solution to the problem. A negotiator can help in this
situation by fixing a meeting and making company agree to a point to provide Nichol with the
clients in Newcastle and make him operate from there only. But if this process will not be helpful
for resolving the problem then in that respective situation employment law can be applicable
easily. According to employment law, it is necessary for any of the employer to give prior notice
to the employee regarding the shifting of office. As Jakob is not willing to change which means
that wages should be given by the company and proper time should be provided. This will
certainly allow Jakob to find another job within specific time period. In short, company had not
provided any of the notice to Jakob where breach of employment law can be seen002E
c)Case
Facts of the problem is as follows Johnson has been working for a construction company
for last six months and fell from stairs that were there on the third floor because it was not

properly fixed. Due to this his back and knee both got injured. As a result of this he was not able
to come for job for 4 weeks and is now demanding for compensation. Company told that there is
a notice board stating 'Be aware the railings are not permanently fixed. Do not lean on it'. In
return to which Johnson said that he did not notice the sing.
In this ADR process to be applied is mediation in which a mediator is there who solves the
dispute accrued. It has to be applied in a manner that both parties are going to talk with each
other through mediator who is going to make them come to a conclusion. But if this problem
cannot be resolved through any of the mediator then law of tort will be applicable. It is because
company had a knowledge that railing is not properly fix which can create issue for the workers.
Still, they didn’t focus towards it which shows the carelessness of the company. Here, company
is required to compensate Johnson for the damages because there was a duty of a company to
work according to the requirement where they were unable to meet out the specific requirement.
It means that company will be liable to pay of the damages to Johnson in this respective case.

CONCLUSION
Above file has covered the wide topic of business law. These laws are very important in
terms of the development of corporate sector as rules are prescribed in it. Various organisation
and structure has been covered with advantages and disadvantages. Other laws such as company,
employment and contract law are also covered in relation to its impact over the company. The
last part explains about ADR and how it can be used as an effective method for solving the
dispute.
REFRENCES
Books and journals
Allen, W. T., 2017. Our schizophrenic conception of the business corporation. InCorporate
Governance (pp. 79-99). Gower.
Amariles, D. R., Bassilana, E. M. and Winkler, M., 2018. The Impact of the French Doctrine of
Significant Imbalance on International Business Transactions. J. BUS. L..2. p.149.
Barrédy, C., 2016. In search of future alternatives for family business: Family law contributions
through Civil and Common Law comparison.Futures.75. pp.44-53.
Boldt, D. J., Kassis, M. M. and Smith, W. J., 2017. Factors impacting the likelihood of student
withdrawals in core business classes. Journal of College Student Retention: Research,
Theory & Practice.18(4). pp.415-430.
Gaitán, S., Herrera-Echeverri, H. and Pablo, E., 2018. How corporate governance affects
productivity in civil-law business environments: Evidence from Latin America.Global
Finance Journal.37. pp.173-185.
Lee, E., 2017. Financial inclusion: A challenge to the new paradigm of financial technology,
regulatory technology and anti-money laundering law.Journal of business law. (6).
pp.473-498.
Peterson, E. A. and et. al., 2016. Law School-Business School Collaboration: An Examination of
Interdisciplinary Course in JD/MBA Programs.Atl. LJ.18. p.21.
Plump, C. M. and LaRosa, J., 2017. Using Kahoot! in the classroom to create engagement and
active learning: A game-based technology solution for eLearning novices.Management
Teaching Review.2(2). pp.151-158.
Samuels, P., 2017. Advice on exploratory factor analysis.
Wen, S., 2016. The Cogs and Wheels of Reflexive Law–Business Disclosure under the Modern
Slavery Act.Journal of Law and Society.43(3). pp.327-359.