Legal Solutions Handbook: Business Law - HNC/HND Assignment

This Legal Solutions Handbook provides a detailed overview of business law, covering the legal formation of different types of business organizations, including unincorporated (sole proprietorship, partnership) and incorporated (private and public limited companies) structures. The report expl...Read More

Legal Solutions Handbook

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Explore how different types of business organisations are legally formed.................................3
Explain how the three types of business organisations you have already discussed are legally
managed and funded....................................................................................................................5
Assess the legal advantages and disadvantages of the formation of different types of business 6
Explain possible disputes in two of the following areas.............................................................6
Evaluate the effectiveness of the following. Are they useful/effective? Why?...........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Legal System is explained as legislative language which explains about the laws and policies
is applicable on any of the specific sector. It has a vital role on decision evaluating process and
even attain the goals becomes an easy task for any of the entity. It is a wider concept so which
performing any of the business activity, it is essential that some sort of knowledge must be
available to tackle the situation. There is different requirement within the assignment which is
related with different types of entity and how they are formed. There advantages and
disadvantages will also play the crucial role as detail information can be collected through this
process. Then, there will be discussion about two different cases where dispute has occurred.
Finally, evaluation will be done on the basis of information collected while solving various
dispute.
MAIN BODY
Explore how different types of business organisations are legally formed.
The form of business is always different where it depends that how much investor wants
to invest in it so that goals can be accomplished. It is essential to understand that all of the
necessary requirement must be completed for so that legal penalty will not be imposed. There are
mainly two types of business and they are Unincorporated and Incorporated Business
Organisation.
Unincorporated Business Organisation: It is explained as the process which simply
explains about the importance of small investor within the business world (Yao and Hu, 2017).
This types of business entity allows the small investor to explore themselves through which
economy level of a nation can be improved. The legal formalities within unincorporated business
organisation are almost zero which do not create issue for the entity. Some of the form of
unincorporated business are:
 Sole proprietorship: It is that form of business where investor has to not suffer as
number of benefits are available. Even in this types business it is essential to understand
that sole proprietor should be able to operate the business themselves. Here, small
amount of fund is required to operate day to day activity due to which it can be said that
percentage of burden is always less in it. Whenever any of the investor plan to start the

sole proprietorship, it is essential that they must follow some of the guidelines such as
obtaining the National Insurance number. The requirement is not limited up to here as
there is the requirement of HM Revenue and Customs (HMRC).
 Partnership: The another unincorporated business entity is partnership where
performing the business activity plays the crucial role. It is necessary to identify that
certain guidelines are there which is to be followed (Singhal, 2017). The distribution of
work is very important in this form of business because partners will be able to perform
the work as per the requirement. In order to distinguish the work among members, it is
necessary that deed should be prepared. For the purpose formation, there is the
requirement of HM Revenue and Customs (HMRC) and even registration must be done
as per the guidelines of Partnership Act.
Incorporated business Organisation: This is the types of business organisation where
services are required to be provided at a greater platform to maximum number of people
possible. This form of business requires a massive team who is able to handle the pressure and
tackle the situation. The law which is must crucial in it is Companies Act 2006.
 Private Limited Company by Share: The form of business where number of
shareholder are restricted but still gets the rights to perform business activity at a greater
platform is known as private limited company by share. Here, shareholder cannot be
included form outside of the company. If any of the member wants to transfer his or her
share, then they must be given to the existing shareholder or the family members. There
is the lengthy process which is to be followed by director and shareholder of the company
to incorporate the company (Imrey and House III, Apollo Enterprise Solutions Ltd,
2016). The first thing which is essential in it is regarding addressing the name and
address of the company. Then, preparation of article of association and memorandum of
association will be important. After completing all of this documents, it is important that
documents must be submitted Companies House.
 Public Limited Company by Shares: This is totally different from private limited
Company by share. Here, public can also take the part in business activity by purchasing
the shares of specific organisation. Here, certain restrictions are there which is to be
followed. In this from of business, shareholder can easily take entry as well as exit from

the entity. The process of formation of public limited company is addressed from the
identifying the name at initial stage with proper address of Headquarter. The other work
is also required in it such as selection of first director and shareholders. Then, it will be
necessary for Director to prepare AOA and MOA. Even there will be also additional
requirement of obtain identification number. Finally, all of the documents to be submitted
within Companies House.
Explain how the three types of business organisations you have already discussed are legally
managed and funded.
It is necessary for any of the business venture to understand that only incorporating
business is not sufficient because it is said that there is also the requirement to manage them all
in a required manner. Company can only obtain the output if they are successful able to manage
fund and perform the necessary task. Below, complete procedure is mentioned that how any of
the organisation is required to be managed and funded.
Sole Proprietorship: To perform the business activity is essential for small investor but
there are limited area of scope for them to accomplish the goals. Firstly, it will be essential to
understand the investor himself have to manage all of the activities of a business (Bird, 2016).
Then, to manages the fund, it is essential to understand that investor must introduce capital by
him or herself to perform business activity smoothly. Even they will get the option to take the
help of credit card to raise fund.
Partnership: This types of business are essential in current situation because business
activity is performed smoothly in it. For the purpose of managing the activity, company has the
option to take the help of partners by making the reference to partnership deed. In order to
manage all of the activity related to fund, they investment from the partners plays the most
significant role. Then, alternate options are related with loan from Financial institution and credit
card.
Private Company limited by Share: This form of business is also essential to
understand because business is required to be managed systematically for attaining the goals.
The responsibility is given to manager, internal shareholders and many more. In order to manage
fund, there are better option as compared to other organisation (O'Brien, Powers and Wesner,

2018). Firstly, they can take the help of bank loan, capital introduced by each shareholders,
Credit Card and many more.
Public Company limited by Share: There are number of activities which is to be
performed by this from of business. Whenever number of responsibility are higher in number
then team is required in major number. For the purpose of managing the work, team of directors
will play the most significant role. Even there is essential support from KPI, Company Secretary,
Members of a company and many more. On the other side, to manage fund, it will be important
to take the help of shareholders, by issuing shares to them. Debenture is also one of the popular
way including peer to peer lending. These are some of the way through which every single
activity can be managed easily in it.
Assess the legal advantages and disadvantages of the formation of different types of business
Unincorporated Business Organisation: While forming the company there are number
of requirement which is to be completed. In order to attain the target, it will be essential for the
company to understand about its pros and cons at the time of formation (Wagner, 2017). The
main advantage in it is that people will not have to suffer for following the legal requirement as
they are very less in number. The negative side of this particular organisation is that legal
existence is not given which can be problematic in some of the situation.
Incorporated Business Organisation: This form of business is also essential because
there are number of work which is to be done. the advantage in this types of business is that
company gets the legal existence. On the other side, disadvantage is all about length procedure
where chances of mistake seem to be very high.
Explain possible disputes in two of the following areas
b) Contractual
Case Scenario: There was the contract between Jack and Jonny that Jack will sell his
phone to Jonny at the amount of $120 where advance money was already deposited by the Jonny
to Jack. It was found that Jack had already sold his phone to Anderson at the amount of $ 150.
Here, Jonny is not satisfied with the decision taken by Jack.
Contract Law: The law which simply explains about relation between two party created
at the time of entering into the contact. It is essential to understand that guidelines are to be

followed in this particular law (Armour and Sako, 2019). If any of the party fails to perform their
part of work, then legal action can be taken easily in it.
Breach of Contract: This is the situation which is applicable in those situation where
party is unable to perform their part of work. Here, innocent party gets the right to take legal
action against defaulter party. The one who files the petition has to proof that how defaulter party
has created problem for them.
In order to resolve the case, it is not necessary that every disputed parties must go to court for
resolving the problem. Here, they have the option to take the help of Alternative Dispute
Resolution process. It is among those process where parties get the option clear out the matter
without involving court proceeding.
 Mediation: It is among simple process where only advises are to provided. It is easy and
simple as well because just suggestion is to be given in it. It will be important to
understand that there is no mandatory to follow the suggestion.
 Conciliation: It will be important process where it is necessary for conciliator to find out
the way that how they can meet out the term and condition of the contract. It is necessary
because it can sort out the problem in easiest way (Roper, Campbell, Ben-David,
Greenbaum and Askin, 2018).
 Arbitration: It is also one of the way to resolve the problem. Here, party will require to
take the help of arbitration panel who can declare its decision.
Recommendation: It is necessary to understand for both the disputed party to take the help
of Arbitration process which can allow them to obtain the solution of this respective problem.
Here, arbitration process will give them the judgement that how this problem can be sorted out.
But if in case, the matter is not possible to be resolved with the help of ADR process then in that
respective situation, Jonny must file the case against Jack under law of breach of contract. If he
will be able to prove the points against Jack, then damages can be recovered with compensate of
other charges.
c) Employment:
Case Scenario: This was the case scenario where ABC ltd removed Jacob with immediate
effect (Peterson, 2019). Here, company and Jacob has entered into the contract that prior notice

must be provided. But, in this respective case, it was found that no notice was provided in this
respective situation. Now, both are having the argument where Jacob has decided to file the case.
In order to resolve this respective case, it will be important for Jacob to take the help of
ACAS (Advisory, Conciliation and Arbitration Service). It is among one of those services which
has been established within the premises of UK for the purpose of resolving the issue related to
employer and employee without involving the process of court or litigations. The main aim in it
is to resolve any of the problem which is being faced or even trying to improve the companies
and working life with the help of suitable employment relations. Here, major focus is that how
employer and employee can work together for longer time period.
Employment Tribunal: It is the alternate option which can be applied in that respective
situation where case cannot be solved with the help of ACAS process. Here, statutory
jurisdictions are also allowed which can easily allow to resolve the problem which are being
faced by employer and employees. Some of the major problem which are being solved in it are
related with dismissal, redundancy payment and many more.
Solicitor: It is said that whenever any of the business organisation faces the problem
within their organisation they have the option to take the of solicitor which can allow them to
resolve the problem which is being faced between employer and employee.
Recommendation: After having the analysis on this respective field, it can be easily said
that if in any of the situation problem is required to be solved between ABC Ltd and Jacob then
they must take the help of ACAS. If in case problem will not be solved through that respective
process, then only it is possible to take the help of other process.
Evaluate the effectiveness of the following. Are they useful/effective? Why?
Legal Solution: This are the most effective procedure to solve any of the problem. It is
essential to understand that the decision which are declared in it are to be followed in any of the
circumstances. But, it is one of the lengthy procedure where other work can be easily affected.
Also, huge amount of capital is required in it.
Legal Advice: This are advices which plays the essential role to overcome the problem.
It is necessary to understand that legal advices which are being provided can be only obtained in
that respective situation where both of the parties agree upon it. Although, certain guidelines are

to be followed in it but still advices can be given short during through which matter can be
solved.
Support for dispute resolution: This is among the widely used process in current scenario
for resolving the problem because there are number of situation where adopting the process of
court can be lengthy. But, on the other side it can easily resolve the problem in short period of
time. The major drawback off this particular process is that only suggestion can be given in it.
CONCLUSION
From the above discussion, it can be justified that legal system has its own importance for
the business. It is vital to understand that all of the work must be performed as per the
requirement of a law. Business activity can be only performed in that respective situation where
it has been commenced as per the requirement of a law. There is certain situation where entity
has to face the problem and in that respective situation help can be taken from alternative sources
which are effective is solving the issues.

REFERENCES
Books & Journals
Yao, G. and Hu, Q., 2017. Breaking the Damages Dilemma. Managing Intell. Prop., 271, p.34.
Singhal, T.C., 2017. Apparatus and method for communication security in a nationwide wireless
network. U.S. Patent 9,686,684.
Imrey, G.C. and House III, W.J., Apollo Enterprise Solutions Ltd, 2016. System and method for
resolving transactions employing goal seeking attributes. U.S. Patent 9,251,539.
Bird, R.C., 2016. Special Report: Legal Scholarship in Business Schools. Am. Bus. LJ, 53, p.9.
O'Brien, C.N., Powers, R.E. and Wesner, T., 2018. Benchmarking and Accreditation Goals
Support the Value of an Undergraduate Business Law Core Course.
Wagner, B., 2017. Defining Key Competencies for Business Lawyers.
Armour, J. and Sako, M., 2019. AI-Enabled Business Models in Legal Services: From
Traditional Law Firms to Next-Generation Law Companies?. Available at SSRN
3418810.
Peterson, E.A., 2019. Promoting Future-Oriented Legal Thinking in Long-Term Strategic
Planning. Southern Law Journal, 29(1), pp.69-101.
Roper, V., Campbell, E., Ben-David, A., Greenbaum, D. and Askin, J., 2018. Understanding the
Scope of Business Law Clinics: Perspectives from the United Kingdom, Israel and the
United States. J. Int'l & Comp. L., 5, p.217.