Business Law: Impact of Legal System on Business & Legal Solutions

This report provides an overview of the legal system and its potential impact on businesses, focusing on the UK Potato Council as a case study. It discusses the legislative process, including the roles of bills, acts, and lobbyists. The report also examines the distinction between employed and self-employed individuals, highlighting the liabilities and responsibilities of each. Furthermore, it outlines the procedures for company registration, emphasizing the importance of selecting a business structure and complying with legal requirements. This document is available on Desklib, a platform offering a wide range of study resources, including past papers and solved assignments for students.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
1....................................................................................................................................................3
2....................................................................................................................................................5
3....................................................................................................................................................6
4....................................................................................................................................................6
CONCLUSION ...............................................................................................................................6
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INTRODUCTION
Legislations and rules that have been formed by the government are essential to be
followed for organizations and people that are working in the nation. Present report describes
about basic role of legal system and its potential impact of the law on a business. In addition to
that potential impact of law on a business and legal solutions to business problems have also
been mentioned. Moreover, appropriate legal solutions based upon alternative legal advice has
also been described in the present report.
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Potato council is responsible for the sustainability and competitiveness of the potato
growers in the UK. The council is responsible for some major functions and it includes
promoting potatoes to the consumers at home and abroad. The council also offers advice to the
government and other parts of the organizations and it also offer statistical advice on the potato
industry. In addition to that there are separate publications of the council titled as POTATO
WEEKLY. Various agriculture fairs are also visited by the council. Major work that is being
done by the council at the fairs is to extol the virtue and health benefits of potatoes. Council also
have a team of residents cook that demonstrates recipes. Agriculture centres of the council has
been located in the Kent.
Government plays a vital role in making rules and legislations that are essential to be
followed for all the organizations that are working in this industry (Campbell and Boothby,
2016). Number of laws have been scattered over a range of legal sources and due to that it
becomes vital that appropriate sources should be identified so that all the functional activities of
the council should be carried out in legal and lawful manner. A will is passed in the legislative
assembly by following a systematic approach. All the members of the council needs to follow the
instructions and guidelines that are given by state (Lieberman and et. al., 2016). A step by step
procedure is followed and it is vital that all the stages should be completed so that a bill should
successfully passed in the parliament. A bill is been defined as proposed law that is being passed
in the parliament. A debate is made by all the members that are sitting in the parliament on the
bill that is being passed in the legislative assembly. When the bill gets approval from each house
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of parliament than royal Assent is being received by the parliament. After passing through all
those stages a bill becomes law and it is considered as an act.
There is standard procedure for introducing a bill in the parliament and it is assertive that
this procedure should be followed while introducing the bill in the assembly. There are different
types of bills that are introduced in the parliament and it is required that they should represent
agreed government policy (Kitagawa, 2016). These bills are passes in the parliament and it is
essential that consent of members should be taken for introducing a bill and amending the act. If
a bill is going to impact specific place and specific places than special parliamentary procedure
are used for the bill. Bills and acts becomes standard parliamentary procedure and they becomes
primary legislations. A bill that has passed in the parliament becomes an act and it delegates
power to the government ministers. It is defined as standard procedure that is being used for
developing legislation in the assembly.
It is required that bill should be considered in the parliament sessions. There are three
stages in which a bill is introduced in the parliament and First reading is a formal stage in which
no debate is made on the bill (Gomtsian, 2016). The next stage is second reading in which debate
is held on the main principles of the bill that is held in chamber. Members discuss about the bill
and debate is held for explaining the provision of the bill. There is strict rules that no
modifications can be made in the bill at this stage and voting is done on the bill that is being
passed in the parliament. Next stage is committee stage and line by line consideration is done on
the details on the bill. Moving to the next procedure coming stage is known as Report stage and
in this amendments in the bill are discussed. This stage is referred to as a consideration in
common. Professional lobbyist also play a significant role in the passing of the bill in the
parliament (Taylor, Tarr and Asher, 2016). Professional lobbyist are included in the list of people
that work for influencing the regulation and legislation machinery and they are also accountable
for the influencing the regulations, legislations and government decisions. Many important bills
have been passed in the parliament with the active involvement of lobbyist and it has supported
for making legislations for protecting and securing the rights of the workers. Professional
lobbyist play an important in making legislations and policies for the welfare of other people and
it also helps for ensuring protection of people that are working in diverse number of organization
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across the nation. Arguments are done for the specific legislation in decision making bodies. It is
required that people should involve in the process for making legislations so that growth of the
nation can be ensured.
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The council has provided work to the cooks to provide cooking display at fairs
throughout the UK. A specific conditions has been given by the council that workers should be
self employed. Many workers have threatened to take the council to the tribunal for arguing that
they are employed in terms of law (Mentzelopoulos, Mantzanas and Nichol, 2015). There is
distinction between employed and self-employed and it is assertive that this difference should be
considered while taking legal action against each other. People who work as a self employed are
not provided any insurance or under insurance in the cases of corporate liquidations and
Bankruptcy.
A self employed person is engaged in trade and business as a sole proprietor, self
employed people also works as an independent contractor. If a person is member or partner in
any business firm than also he is defined as self employed. If a self business is operated by a
person than also he is considered as self employed (Townshend and et.al., 2013). Part time
business done by a person also comes in the category of self employed business. People who are
working under any employer are not included in category of self employed and they are covered
under the unemployment insurance if any bankruptcy occurs and corporate liquidation occurs.
On the other hand self employed people are not covered under the unemployment
insurance schemes. Rights of employees gets affected by delayed payment of insurance and
contribution paid by him to the employer. However rights of self employed person does not get
affected as no contribution is paid by them to the employer of the organization. Employees are
accountable for reporting to the management of the company and employer (Campbell and
Boothby, 2016). Self employed persons are not accountable for reporting to any specific
employer or organization.
Moreover, it is vital that self employed people should register themselves at National
insurance institute and they pay insurance contribution by himself without any assistance from
the employer. If the tribunal gives the decision that the employees are employed than the council
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owe some liability towards the tribunal. In addition to that there are some specific liabilities and
responsibilities that are hold by the cooks when they become self employed. As per the vicarious
liability employer is accountable for the wrong doings and mistakes committed by the
employees. If and damages and losses are sustained by the firm than due to that employers
becomes liable to pay for the damages that have been occurred due to the mistakes done by the
staff members (Crane and Matten, 2016). If in the present case employees are made liable for the
mistakes that are committed by the employees.
It is critical that employees should register themselves at the National insurance institute
and contribution for the insurance premium. If cooks are Employed than Council will work as an
employer for them and it becomes essential for them to pay insurance for the cook that have been
deployed by them on various services (law uk, 2016 ). It is vital that employers should pay their
PAYE bill to HM Revenue and Custom by 22 nd of the next pay month. The PAYE bill includes
some specific elements and it consist of Employee income tax deduction, Class 1 and 1 B
national insurance. Student loan repayments, construction industry schemes deductions,
Apprenticeship Levy payments. In addition to that as an employer council needs to pay HM
revenue and custom Class 1 A national insurance on work benefits that is given to the
employees.
Furthermore, PAYE settlement agreement and national insurance is paid by the
employer. It is assertive that employer should register with the HM revenue and custom
department. The impact of the decisions about whether the cooks and employed or self employed
will be addressed in the terms of PAYE, NI, Benefits and vicarious liability (Crichlow and
McGarrell, 2016). If the cooks are considered as self employed than they themselves are
accountable for the damages and losses that are sustained by them during the fair and council
will not be responsible for any kind of damages and injuries that are sustained by them. On the
other hand if the cooks are included in the category of employed than council will be held
accountable for the losses sustained by the employees and for paying for the insurance of the
staff member.
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3. Report explaining the procedures needed to be followed to register a company
Registration of business is referred to be one of the fundamental requisition for initiating
with a new business start up. It is with some principal requirements that are required to be
followed by the main organisational bodies such as the directors, etc. It is with yet another
primary consideration of registering the business in the state where it will be operating at an
initial level (Campbell and Boothby, 2016). It is where such primary enrolment of an
establishment with the state entities duly assists the directors to operate a legal business where
there together exists certain businesses that are needed to be registered with federal government.
It is however with some special requirements like if their proposed products and services are
referring to firearms, alcoholic and tobacco, etc. It is therefore referred to be a five step
procedure that is needed to be pursued by the concerned individuals of Agricultural
Experimental Centre referring to register themselves as a free standing business. These are as
stated below-
Selecting a business structure- There exists various business structures such as sole
proprietorship, partnership, corporation and limited liability company that is also
termed as LLC (Mason, 2016). It is thereby important for the directors of the
organisation to determine a suitable structure of their business to further incorporate
with the process of registration whether it is required to be done at state, country or
federal level. It is also due to yet another fundamental consideration in whose
accordance, the requisite documentations will be required to be submitted for the
further proceedings of registration.
Choosing specific name for the business establishment- It is yet another requisite
proceeding towards registering a business of any type that needs a particular name
for enrolment (Sprague, 2016). This is for instance where a majority of nations like
Texas do not allow similar names for two or more businesses and thus it is necessary
for their directors to keep a couple of names for backup. However, in case one is
opting to set up a business corporation, then they are mandate to carry certain
designations like Incorporated, Company, Corporation, Inc., Co., or Corp., etc.
Registering with the state- It is yet another specific requirement for registering a firm
where the directors are hereby required to obtain application that refers to an opted
business structure (Kitagawa, 2016). It can however be collected from Secretary’s
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office of the State in the nation where the business is getting registered. After which,
depending upon the chosen structure of the business, supplementary documents
along with the application is required to be submitted. This is for instance to specify
about a business firm in demand of partnership and Articles of Incorporation needs a
Partnership Agreement.
Registering with Internal Revenue Service (IRS)- IRS specifies yet another prime
requisition of employer identification number or EIN which is equivalent to a Social
Security number for a business (Taylor, Tarr and Asher, 2016). This registered
number is further used to fill all sort of tax return forms for the business that can be
acquired after the completion of IRS Form SS-4.
Obtaining license for business- It is the last step that involves getting a legal license to
further operate the business in a lawful manner (Crichlow and McGarrell, 2016).
However, the type of these licenses depends upon the nature of business getting
registered.
This is on discoursing upon the role of the company directors over here after going
through the process of registration, they are then required to raise capital funds for the
development of their business. For this, they might consider allocating shares by together
securing loans as a way of generating finances to further develop their business. Directors are
together considered as effective agents of an organisation and are usually being appointed by the
investors to handle their day-to-day operations (Ward, 2016). It is however on referring to an
elementary regulation of an organisation where the directors must together act as a active
committee member with some exemplary powers delegated by the board on individual level.
Furthermore, the role of an individual director is together allied with their participation in the
board meetings. This is however to enable the board members to take some efficient business
related decisions by which the stipulated obligations of the company can be completed on time.
Beside this, generating likely funds as a way of raising the business capital for its future
growth and development is also referred to be yet another prime consideration of a director. It is
where they are hereby required to possess a realistic sense to have sufficient monetary funds to
run an operative business by together planning to raise fresh capital (Light, 2016). Whereas,
there exists certain ways to do so where in the present context, the director may refer to apply for
secured loans with a prime support of collaterals to raise likely capital for the business. For this,
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they may together require to make some considerable deposits of their personal, residential or
commercial properties along with any relational invoices and recreational equipments as a way
of securing the loan. It is where such type of debts called secured loans is a popular alternative
for the entrepreneurs to rise abundant capital for their businesses.
4. Drafting an arbitration clause
It is basically in context to an undertaken decision of The Agricultural Experimental
Centre where they have referred to get into several commercial transactions. For which, they are
seeking to resolve any sort of conflicted situation among them outside the court premises
(Gomtsian, 2016). It is hereby termed to be a process of arbitration and for which, the concerned
organisational bodies are required to draft an arbitration clause. This can be done by following
14 conceptual steps as referred below-
 Seat of arbitration is the first step to draft a clause for it in which, here the
procedural rules will be ascertained to further govern the tact of arbitration.
 Number of arbitrators is the next step to decide the total number of arbitrators to
form an arbitral assembly (Labatt and Forrest, 2016).
 Language of arbitration is basically to specify a particular language to help everyone
understand the ultimate decision taken up by the members where they may also refer
to appoint a translator for the same.
 Institutional or ad hoc is yet another requite agenda so as to decide whether their
arbitration will be supervised by any third party consultant such as an arbitral
institute or not (Crane and Matten, 2016).
 Governing law is yet another consideration while drafting an arbitration where this
will govern the arbitration clause at the time of any dispute.
However, there together exists certain other options of settlement by opting for the
process of ADR that is basically termed as an Alternative Dispute Resolution where it involves
certain other ways of resolving any such disputed concern (Ware, 2016). These tactics involves
the process of negotiation, collaborative law and mediation, etc., with some vital benefits of them
all, which are as stated below-
 It is generally less expensive and quicker in nature where all involved parties gets a prior
chance of presenting their own outlook.
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 It is also referred to possess a more flexible nature as it tends to respond towards the
individualistic needs of the involved bodies (Pryor, 2016).
 It is however informal in nature that shows a greater sense of commitment in the
individuals where they could freely discuss it with one other.
 Also, it is confidential in nature and is more likely to decelerate any such conflicted
situation with a future consideration of maintaining a long term relationship (Lieberman
and et. al., 2016).
CONCLUSION
Summing up the present report it can be concluded that it is vital for all the individuals
and organizations to comply with the rules and regulations that have been formed by the
government. Legislations helps in regulating the working of different organizations that are
working in the country. Bills in the parliament passes through a standard procedure and all the
members in the parliament make debate over passing the bill in the legislative session. In
addition to that there is difference between employed and self employed. If an individual is
working as an employed than insurance is paid by the employer whereas if a person is not
working as an employed or engaged in the business of other business and doing partnership in a
firm than the person is called self employed. Moreover as per the vicarious liability employer of
the firm is accountable for the mistakes and wrongdoing made by the employees.
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