BMP4002 Business Law: Analyzing the Legal Context for UK Organizations

This report provides an overview of the legal context for business organizations in the UK, focusing on key sources of law and their implications. It covers various types of laws, including contract law, company law, and employment law, and discusses business transaction management, vicarious liability, and business liability in negligence. The report also examines different legal business structures in the UK, such as sole proprietorships, general partnerships, and limited liability companies, highlighting their advantages and disadvantages. Furthermore, it offers recommendations for IOM Solutions, suggesting a partnership business organization as the most suitable structure. The report concludes that business law is crucial for establishing rules and regulations for the day-to-day operations of UK enterprises.

Business Management
BMP4002Business Law
Assessment 2
Report describing the key sources of laws
as the legal context for business
organisations in the UK
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Contents
Introduction................................................................................................................................2
Businesses & Organisations in the UK...............................................................................2
The legal business structure of UK companies..................................................................4
Recommendations for IOM Solutions................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................7
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Introduction
Law is a term which provide specific rules and regulations which are used by the
people and companies for the purpose of regulating the functions. Laws are related to the
existence of people and companies in the society. It has been found as necessary for the
business organisation to perform the business operations in a proper and transparent manner.
Business law involve all the legislations and Standards which provide the complete
guidelines to the business organisation. Basically these rules and regulations set by the
government related to the incorporation running dissolving or selling the business. Business
law is considered as the body of law which perform the function of Business and Commerce.
Typically it can be said as the branch of civil law because it is related to both private and
public law issues. Commercial law involve the corporate contracts, manufacture and sale of
consumer goods along with the hiring process. Several countries have created civil codes
involving the complete description of their commercial laws. IOM solutions is the selected
organisation for this report which is performing the function of selling electrical parts to local
garages. This report covers the description of Business and Organisation in UK, legal
business structures of UK companies. Along with this the recommendations are also provided
to IOM solutions for best legal business structure.
Businesses & Organisations in the UK
All the aforementioned laws are totally different from one another but they also have
an interrelationship in the terms of how they operate. Each and every law has its own
significance and nature who fulfill the specific necessity is of a business organisation or
people. Along with this it also have some negative consequences. Business organisation have
been governed by the number of legislation which are given below
Different Types of Law:
 Contract law: It is defined as a written or verbal agreement among the two parties
that defines and governs their respective responsibilities and rights. It is a legal
agreement which involve the procedure of exchanging products and services, property
or money among the parties.
 Company Law: Corporate law is the another name of company law. It is related to the
business firms, people, relationship, behavior. It is considered as the legal profession
related to the business. It involve the development, governance, funding and eventual
demise of a business.
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 Employment law: It is considered as a labour legislation because of it build the
working relationship among the employees, labour Union, Government and employee
entities. Employer and contractor are permitted to do work by involving the specified
employment standard so that they can also fulfill the social norms of society.
Employment legislation involve the minimum salary, working conditions, health and
safety aspects.
Business transaction management of company: It refers to the business transaction
which monitor all the practices of a managing information technology from the perspective of
the company. It provides several tools to the organisation for the purpose of tracking the
move of transactions.
Vicarious liability: It is defined as a situation under a party partially check the account
so4 finding any unlawful activity of a third party is known as vicarious liability. This party
have the responsibility of a single portion of liability. Such activity is it takes place in a
situation where one party is meant to be accountable for a third party but not able to do so. It
also stated that a if an employee get injured on the job, the company may be liable for the
same. It provide the right to the injured person to get the compensation from the side of
business organisation.
Business liability in negligence: When a professional person is not able to complete their
task as per the required standard or breach the duty of care, it is defined as negligence. Due to
the bad behaviour of a professional people, organisation may faces several financial losses
along with the bodily damage and injury to their clients or customers. A tort is a civil law that
caused through the unlawful activity done by someone else and as a result it harms your
cause loss to the individual who performs the conduct in common law state. Crimes can also
be torts, sometimes the reason over legal action is not to have a crime but the harm can be
caused by the negligence that is not comes under the crime.
Termination of partnership: No any specific formalities are required to fulfill while
starting any general partnership. The partnership can be terminated by completing or winding
up which insurance is better no one partner will be responsible for the debts of other partner.
It includes distribution of money or property, paying debts and sale of a partnership assets.
The law of state in which the partnership is operating will be responsible for regulating the
termination of partnership by default in the case when the partnership was formed without
completing the formalities or a written agreement. Samuh for the reasons of termination of
partnership include death or resign of a partner, bankruptcy and many more.
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Memorandum of association (MOA): It is considered as the legal document which
lies for the foundation of a company. It ensure the existence of the organisation. It is
responsible for defining and regulating the rights of company for the benefit of general
public. Major purpose of memorandum of association is to show the scope of company e
permitted activities for the benefit of creditors, shareholders and many others.
Article of association (AOA): It is defined as the the legal document which defines
the rules of activities of a company along with its mission. This document provides the
structure of how the activities will be completed within the business organisation along with
how the directors will be appointed. It also define the procedure of handling the financial
records. In simple words it can be considered as the certificate of incorporation which
explains the purpose of company and some specific regulations for operations. It also include
the rules and regulations for the internal management of company.
The legal business structure of UK companies
Sole Trader
It refers to the modest business in which all the business operations have been
managed and conducted by the sole owner of the company. Small amount of capital is
required to get started this business as it perform the business operation to a limited or
specific location. While incorporation of a sole proprietorship, the organisation do not require
any complicated legal formalities. It is necessary for starting this type of business that it
should be registered with the companies house. The business and the business owner have a
single identity. The owner of business organisation is liable to perform all the roles and
responsibilities of business. The owner is also personally liable for all the business debts
because of unlimited liability. The dissolution of sole proprietorship cause in the case of
death or bankruptcy of the business owner. It is easy to establish and operate. It is considered
as the advantage of sole proprietorship. The unlimited liability of owner and major issues in
arranging the funds are considered as the disadvantages of sole proprietorship.
General Partnership
It refers to the form of partnership under which partners are liable for the activities of
partnership. General partners are considered as the active owner of partnership which have
the unlimited liability for the business debts. It is considered as the incorporated business
having two or more than two owners who also shares the responsibilities of performing
business operations. It is necessary for all the business partner to contribute in the day-to-day
business management. For the purpose of forming a partnership business, it is not necessary
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to complete the file of any documents, register any information or any other formalities. The
partners of this partnership business do not have to pay the income tax. Each and every
partner of a business organisation have some share in the profit and losses of partnership. The
responsibility of all the debts and lawsuits lies on the general partners. The advantage of this
business is that it is easy to form and equal rights are distributed. It also pass through
taxation. This partnership do not involve any transformation of interest, it means that it is an
easy task to dissolve the partnerships when the partners decide to leave. It is considered as the
disadvantage of general partnership.
Partnership
It refers to the type of business organisation under which the people having the same
goals join together for the purpose of generating maximum income by performing business
operations. Majorly entrepreneur preferred to perform the business in partnership. It is
necessary to establish the partnership deed before starting the partnership business. It is also
required to register the same under the partnership law. All the profits and losses are divided
among the partners in the decided share or ratio. All the partners jointly and severally liable
for the debts of business organisation. In the case of dissolution of any partner for happening
of any certain event implies the formation of new partnership agreement. The advantage of
partnership is that it has several sources of capital and there is no double taxation. The
unlimited personal liability of partners is considered as the disadvantage of partnership.
Limited Liability
It is found as the latest status under which the financial liability of a person is limited
to a specific amount. The liability amount is equal to the value of investment in the
corporation or partnership. Limited liability can be defined as a situation under which the
owner or partner of a business organisation liable to pay the losses and debts aap to a limit to
the amount of capital invested in the business. The members of limited liability companies
are liable for paying the income tax and self employment tax on the income which they are
earning from LLC. It is an essential to to feel an appropriate form for the purpose of
dissolving Mein limited liability company. It also provide the flexibility in the distribution of
income as it provide the advantage of tax which helps the members in avoiding the double
taxation on business income. Hence it is the advantage of limited liability. The disadvantage
of limited liability is that it is difficult to rise the capital because of absence of perpetual
existence.
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Recommendations for IOM Solutions
It has been found that the most appropriate and suitable organisation is a partnership
business organisation which is managed by all the partners. Each and every business have the
equal rights the in the management of a business. Roles and responsibility of business
organisation are also divided among the partners which bring the effectiveness in the business
operations. In the general partnership, the active partners manage the business while in the
other partnership organisation can be managed by appointing the committee or managing
partner. In all cases the decisions are taken on the basis of voting of partner. The partners
provide funds to the business organisation. They can also take the loan from bank or any
other Financial Institutions for the purpose of bringing more capital. The entry of new partner
in the existing business organisation also bring capital.
Conclusion
From the above report it has been concluded that the business law is the combination
of several laws which are considered as the primary source of rules and regulations of UK
Enterprises. They are responsible for establishing the set of rules and regulations which are
responsible for performing the day-to-day operations of the business organisation. It is
necessary for the partners in the business organisation to form a mutual agreement while
considering the consent of each other.
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References
Books and Journals
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ways for legal reform of china rural collective construction land circulation. Habitat
International, 74, pp.36-47.
Merryman and et. al., 2020. The civil law tradition. Stanford University Press.
Mohammed and et. al., 2017. Financial crisis, legal origin, economic status and multi-bank
performance indicators. Journal of Applied Accounting Research.
Moroni and et. al., 2020. Simple planning rules for complex urban problems: Toward legal
certainty for spatial flexibility. Journal of Planning Education and Research, 40(3),
pp.320-331.
Parker Jr, L.V., 2019. Corporate and Business Law. U. Rich. L. Rev., 54, p.73.
Sarah, R. and Vida, A., 2020. Business law. Pearson.
Singh, S.K., 2020. Alternative Dispute Resolution: Concept and Prospect. Nature. 9(2).
Waters, B., 2018. Brown & Marriott's ADR: principles & practice. Sweet & Maxwell.
Lee and et. al., 2017, August. Legal consideration on the use of artificial intelligence
technology and self-regulation in financial sector: focused on robo-advisors.
In International Workshop on Information Security Applications (pp. 323-335).
Springer, Cham.
Chang, W., 2020. 9. Legal Education in Ch'ing China. In Education and Society in Late
Imperial China, 1600–1900 (pp. 292-339). University of California Press.
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