Business Law: A Report on Business Liabilities and Partnership Types

This report discusses key concepts of business law, including sources of law, the nature and management of businesses, and business liability in negligence, with a focus on vicarious liability. It examines individual employment rights and explores various partnership options for Sam's IOM Solutions, a sole proprietorship looking to expand. The report recommends a general partnership for Sam, highlighting its benefits in terms of shared responsibilities, increased capital, and improved time management. It concludes that understanding these legal aspects is crucial for businesses and that a general partnership is the most suitable option for IOM Solutions' current situation. Desklib offers similar solved assignments and resources for students.

Business law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
NATURE AND MANAGEMENT OF THE BUSINESS :.............................................................4
CONCEPTS OF BUSINESS LIABILITY IN NEGLIGENCE :.....................................................4
VICARIOUS LIABILITY OF THE EMPLOYER :.......................................................................5
INDIVIDUAL EMPLOYEMENT RIGHTS :.................................................................................5
IOM SOLUTIONS :........................................................................................................................5
RECOMMENDATION FOR IOM SOLUTION : .........................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The concept of business law is discussed in this report. There is an information for the
nature and management of company and sources of law along with vicarious liability for an
individual and employer as their rights(Mogaji, 2020). All of the factor are essential for a kind
of business and importance of this have been there in an organisation and there is confusion and
problem in which Sam get stuck for his business IOM Solution and there is a discussion for
various options available for Sam to switch and choose form sole trader as any other business
and this is recommended to him that which is going to be best partnership for him in accordance
to expand his business as he has been owner of sole trader for past eight years and his business is
expanding in past two years, every partnership will be mentioned in this report among with the
best solution for Sam and his IOM Solution.
TASK
There is various sources of law which mentions and play an helping hand to interpret the
law in some cases and this is been divided in five categories which are:
1. COMMON LAW : The principles are given through lawmakers with shared rule in all
over the country which have same tradition and customs develops by courts. This is to be
amended from the government in the parliament as there is no written act for the
parliament(Nemeczek, and Pitz, 2018).
2. EQUITY : The concepts of remedies and principles is based on natural justice which is
to be recognised through the Lord chancellor. Equity of precedent is being consider with
reasonable fact in past with similar case.
3. STATUTE LAW : The laws passed by legislation in which the bill is being drafted and
passed through ministers of parliament while on the other hand delegated legislation is
being passed with advice of Majesty of privy council(Lemassel, 2020).
4. CASE LAWS : The decision is being made form the court, matters which assist court for
implementation of decision in similar cases for the one which is already decided in courts

and these are primary and fundamental source of law in UK. There are various features of
law in UK, which is doctrine for judicial precedents in which they report decision for
court from formal decision which is binding on all of the court subordinate to them for a
decision in future.
5. LEGISLATION : There is no written constitution in UK as this describes as whole and
partly written uncodified which is important and large part were being written down and
most of this is passed through the parliament which comes through procedure of
legislation and now which is being applicable in whole of UK. To make new law for
doing change in existing law this comes in form of bill and from getting through both the
houses of parliament his become a law(Giliker, 2021).
NATURE AND MANAGEMENT OF THE BUSINESS :
Business is the primary source which make economic and social value for everything as
this never been neutral and disinterested, this is also carried through the parties with forced and
distinct aim. Business is being embedded to everything from legal framework in cultural norm in
the way of practical and ethical implications. There are many kind of business which is corporate
or either non-corporate(Silverman, 2021). Corporate is sole business entity which forms a
contract and owner of business were not liable for any type of costs which occurs in business
transaction. In other way, the non corporate business is person in which owner is personally
liable for any cost and this can be sued personally as well. There is four type of factors in the
management of any business which are leading, organising, planning and controlling, these are
the factors which have a lot of enhancement to grow in the business with profits.
CONCEPTS OF BUSINESS LIABILITY IN NEGLIGENCE :
There is different liabilities in a business and the business relationship have mass
contracts which includes buying, lease or have contract for professional services and many
more(Corbello, 2021). The failure in performing a contract will be a result for having breach
of contract and outcome for the negligence in business could be damage and award which cost
business form failure of contract is only factor which has to be failure through negligence.

VICARIOUS LIABILITY OF THE EMPLOYER :
The liability most rapidly happen within the employee and employer and the liability
of defendant due to action of other person and relation within these two people in dispute of
employment, this is to be refer as strict liability as defendant do not need to being as
wrongdoer as this imposes strict liability on employer and they were held liable for a act
which is committed wrongfully when an worker is performing his duty(Taylor, 2021). This is
based on doctrine of common law objective and this explain legal responsibilities of a party
for doing any wrongful act of others. Vicarious liability on part of employer takes place when
he is held liable for wrongdoing of worker and action done from the worker were treated, this
is been done from the employer and he is held liable for the action.
There are mainly two factors which is elaborated to close connection test:
NATURE : Nature of an worker and their role which he have for employer disclose relation
between employee and employer and includes the activities which an employer gives through
the employer defines responsibilities and close relationship of employee and
employer(Biermeyer, and Meyer, 2019).
SUFFICIENT CONNECTION : This mentions the connection within position of wrongdoer
and where a connection looks to be sufficient for employer for making liable in vicarious
liability and there is no doubt in connection within employee and employer.
INDIVIDUAL EMPLOYEMENT RIGHTS :
The workers have the right for having National Minimum wage as according the rule
of government and protection against unlawful deduction for wages along with minimum paid
holidays with a limitation of working not more than 48 hours in a week and in last they have
right for getting protection against unlawful discrimination in place of work and not getting
treated less favourable for part time worker.
IOM SOLUTIONS :
Sam own a business for selling electric parts to the garage, from past eight years he has
been working as sole trader in last two years his business grow in term of employee and
demand. In the year 2020, Sam decides to expand his business but he is not sure for most
appropriate form of business to switch into. There is many options available to Sam for

expanding business and every option is to be discussed and same will get provided as
appropriate form of business.
1) GENERAL PARTNERSHIP :
This includes two or more individual for making a general partnership with an
agreement of partnership. The individual share responsibility and roles for business together
which is included in the business and they share profit and losses in same time during
management of business on equal amount. In this the partner share financial risks, benefits and
debts of the business and the requirement for maintaining joint liability as according to
agreement they have been into legally and get unlimited personal liability. Also they get
various ideas which grow and enhance the business as according to involvement of various
people in business which assist to improve the productivity in the business.
2) LLP ( LIMITED LIABILITY PARTNERSHIP ) :
This is clear through name which has limited liability in comparison of general
partnership as a limitation on amount of money which is spent from partners of business, they
have joint and collective liability(Begum, 2020). The partnership have to get registers office
and have to be in corporation with rules and regulation of government to make up limited
liability partnership which have to get register in companies house.
3) PLC ( PRIVATE LIMITED COMPANY ) :
This is known as a limited liability company and management for partnership have to
be governed from companies act which give rules, regulations and rights to form a private
limited company from which this is easy for understand formation of a company as according
government regulations and their dissolution. This also includes duties and rights for
companies and the company owned form shareholders and this have distinct corporate
identity.
RECOMMENDATION FOR IOM SOLUTION :
The recommendation to Sam for his IOM Solution is for switching from sole trader to
general partnership as Sam was a sole trader for past eight years and his business is expanding

in last two years. To have appropriate balance for business Sam have to choose the general
partnership as this brings another member in the business and this is to be effective to enhance
his business on a bigger level. Sam is thinking for expanding his business and this kind of
partnership is best for his business as there is an extra person to whom he will share his role
and responsibilities in business which helps in expanding profit for business and increase the
productivity also(Baillie, 2019). The time management is main responsibility in a business to
expand and having a sole responsibility for business might get hectic for Sam. He have two
options, rather he have to go for general partnership which is also known as Limited Liability
Partnership and the other option is for Private limited company which might get costlier for
expanding the initial business. The general partnership is best option for Sam to expand his
business and he can manage his time to expand his business, from introducing another
member more capital for business also generate and they can easily increase their business in
the market. Therefore the best option for Sam is for having general partnership for the
business is one of the best option.
CONCLUSION
As according to the above report this is to be concluded that the source of law, nature
and management for business is the most important thing for business and there is vicarious
liabilities for the employer in which he have to be aware as according to the employment
rights. On other part, Sam have a good business as sole trader through the name of IOM
Solution and there is many options available for him as to expand his business and makes
profit on the report he have very wide information for each partnership which he can go for
but as suggested the only partnership which is suitable for him and the business in general
partnership and later on he can switch on other partnership options as well but for current
situation Limited Liability Partnership is the best option for Sam and his business IOM
Solution.

REFERENCES
Books and Journals
Baillie, K., 2019. Regulation of Crowdfunding in the UK: Past, Present and Future. Bus. L.
Int'l, 20, p.147.
Begum, A., 2020. Corruption in business: A critical appraisal of the Australian regulatory regime
in the light of the UK Bribery Act 2010. Journal of Financial Crime, 27(3), pp.735-754.
Biermeyer, T. and Meyer, M., 2019. Do UK companies make use of corporate mobility
instruments to ‘escape’Brexit?.
Corbello, F., 2021. Directors’ duties and liabilities across Italy, UK and USA.
Giliker, P., 2021. Legislating on Contracts for the Supply of Digital Content and Services: An
EU/UK/Irish Divide?. Journal of Business Law, 2021(2), pp.143-162.
Lemassel, M.M., 2020. Regulations of financial institutions in the US/UK.
Mogaji, E., 2020. Brand name nomenclature of UK law firms. Available at SSRN 3644042.
Nemeczek, H. and Pitz, S., 2018. Cross-Border Business of UK Credit Institutions and
Investment Firms with German Clients in light of Brexit, MiFIR and MiFID
II. European Business Law Review, 29(3).
Silverman, S., 2021. Research Handbook on Human Rights and Business. Edited by Surya Deva
& David Birchall. Cheltenham, UK; Northampton, MA; Edward Elgar Publishing,
2020. Pp. v, 576. ISBN: 978-1-78643-639-9. US $310.00. International Journal of
Legal Information, 49(1), pp.54-56.
Taylor, A., 2021. Art Law and the Business of Art. By Martin Wilson.[Cheltenham, UK: Edward
Elgar Publishing, 2019. xxxvi+ 456 pp. Hardback£ 115.00. ISBN 978-1-78897-987-
0.]. The Cambridge Law Journal, 80(2), pp.420-423.