Business Law Report: Country Pine and Business Law in the UK

This report addresses various aspects of UK business law, focusing on the legal challenges faced by Country Pine, a furniture sole trader looking to expand and incorporate as a limited company. It explores the sources of law in the UK, including European laws, legislation, and court precedents. The report details the role of the government in law-making, outlining the legislative process from bill to Act. It further examines the impact of employment and contract laws on businesses, emphasizing the importance of valid contracts and employee rights. The report provides solutions to the business problems Country Pine encounters, such as expansion, employee appointment, and supplier disputes, while justifying the legal advice offered and recommending solutions based on the legal system. The report highlights the importance of understanding business laws for successful incorporation and operation in the UK market.

Business Laws
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Various sources of law..........................................................................................................1
P2. Role of government in law making.......................................................................................2
M1...............................................................................................................................................3
D1................................................................................................................................................3
TASK 2............................................................................................................................................3
P3. Impact of employment and contract laws on business..........................................................3
M2...............................................................................................................................................4
TASK 3............................................................................................................................................5
P4 Solution to the business problem...........................................................................................5
D2................................................................................................................................................5
P5 Justification of Legal Advice.................................................................................................5
M3...............................................................................................................................................6
TASK 4............................................................................................................................................6
P6 Recommend solutions based on legal system........................................................................6
M4...............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business laws are the significant and obligatory statutes in order to perform a business in
a state. It is basically comprise of Laws of Contract, Sale of Goods, Employment Laws,
Companies Law etc. These laws are mandatory to fictionalize a business. An organisation has to
work in the ambit of these laws. Moreover it provides a guideline to a newly setup organisation
for functioning in the market. In the given scenario Country Pine is an emerging furniture sole
trader. They want to expand their business and convert themselves into a Limited Company but
they lack the knowledge of such incorporation. So they are looking for legal and business advice
from Business Future. Business Future is a consultancy organisation, providing help to start-ups
and organisation who wants to expand their business. There are various problems that Country
Pine is facing such as the expansion, appointment of workers and dispute with the supplier of
timber from Poland. So they are consulting with Business Future about such problems. Moreover
this report deals with the sources of laws in United Kingdom and how laws are made, in order to
provide Country Pine a better view of understanding the laws of incorporation of a company.
TASK 1
P1. Various sources of law
Laws are made to control the society, but the formation of laws are related to the
Customs and Usages that a society is following. It is actually a collected form of duties and
liabilities in the form of statutes. Generally, there are two types of sources, Primary and
Secondary sources. A primary source is comprise of statues, customs and usages, codified laws
etc. Secondary sources are mainly comprise of Courts judgements and precedents. In the United
Kingdom, there are three sources of laws, the European laws, legislature and the Courts. (Pepper
v Hart (1993, HL)
The European laws includes treaties, directives, regulations and decision. Treaties are the
main source of business laws. The main purpose of treaties was to bind two states into an
obligation to perform duties mentioned in it. European Union acts an executive to the
administration. These laws came into force in 1973. EU was formed under the European
Communities Act 1972. The laws are implemented by the European Commission, it acts as an
implementing entity to the administration. (Alix & Adams)
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Similarly, statues that withhold the business laws are controlled by this commission. In
order to start an organisation it is essential; to comply with these laws. But before that it is
evident to have a knowledge on which sector the company is going to perform their business.
There are two types of sector, public and private. Public sectors are controlled by states unlike
private one, these are administered by individual body. Apart from the sectors it is also necessary
to get the organisation incorporated under Companies Act 2006. There are three types of
liabilities in a company, limited, unlimited and limited liability partnerships. In an unlimited
liability, the profits and debts are earned by an individual but in limited the liabilities are limited.
(Fisher v Bell (1961)
Country Pine is going to expand there business for that they have to register their
company under the Companies Act 2006 by the Registrar of the company. According to the
provisions of the Act it is mandatory to form a Memorandum of Association, comprise of a detail
information of how much capital is invested in the company and details about its shareholders.
Also to manage the work in the the organisation an Article of Association should be made, it is
comprise of the appointment of Directors, their liabilities and duties also of their employees.
After all these documentation, it is presented before the registrar for the allocation of a
certificate.(Adler v George (1964)
It is essential for Country Pine to abide by the laws of business in order to perform
marketing with investors and consumers. Moreover, it is an obligation over the organisation to
comply with the statutes that are enforced by the states upon its people.
P2. Role of government in law making
A government is made up of three bodies the legislature, executive and the judiciary. The
purpose of legislature is to form the laws and that are passed through the parliament as an Act.
An Act is formed by passing a bill in the parliament. European Commission is the executive
body in UK, laws that legislature passes are implemented by EC. In United Kingdom there is
hierarchy of Monarch, that is nothing is above the Royal Assent. Laws are formed by the process
of producing a Bill in the legislature.(Smith v Hughes (1960)
Bills are of three kinds, Private, Public and Hybrid Bills, A private bill is such which is
binding on an individual that is it affects the interest of individuals where as in a public bill the
interest of public are influenced. A hybrid bill is an amalgam of both, private and public, it is a
public bill which affects the interest of an individual. A bill is proposed in the legislature in its
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First Reading, where the facts related to the bill is considered by the members then in the Second
Reading a debate or discussion regarding the positive and negative effects of the bill takes place.
After the completion of the latter stage it is scrutinise by a committee in its Report Stage. After
such process it is presented again in House of Commons for any amendment or changes. A Bill
becomes an Act of Parliament after getting the consent of the Queen in Royal Assent stage. This
is how a law is passed by the governing bodies.
M1
English legal system is highly effective in various terms because it helps overall society
in various manner such as; applying necessary acts like equal wage act etc. designing rules and
regulations for reducing business problems and so on. However, legal system of nation support
overall society in acquiring equal development opportunities by introducing suitable acts. Apart
from this, one thing is also determined that number of problems are identified by various sources
of laws such as; changes in consumer demand, denying by few member of parliament and so on.
It means, establishment of legal laws is not an easy task because number of factors get fluctuates
on regular basis.
D1
According to the one of the major article which is “6 key method shows that British legal
system are differing from rest of the world” it has been understood that English legitimate bodies
are coming with numerous of unique and different idea. Their main objective is to focus on each
or every aspect before making final decisions in order to develop the country by uplifting overall
society. For example; one of the most distinguish thing is that Britain have a unwritten
constitution. Hence, it shows the major different example of legal system which may attract
number of members.
TASK 2
P3. Impact of employment and contract laws on business
Contracts are the basic element of performing a business in the market. It is consists of
terms and conditions according to which the parties have to perform their duties. A contract is an
agreement which is enforceable by the law. In order to construct a valid contract certain
principles are needed to be followed. A valid contract has an offer. An offer should be a legal
one to which an acceptance is made by the other party, without any inducement. For a valid
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contract there must be an intention to form it, without such it is null and void (Fisher v Bell). In
United Kingdom, contract laws are regulated by English Laws of Contract. A consideration shall
be provided in order to bind the parties. A consideration is the amount for which the promise4
has been made by the parties. It should not be prohibited by the law. Generally, consideration are
made in the form of money.(Royal College of Nursing v DHSS (1981, HL)
Employment contracts are the means of forming a relationship between the Employer and
his Employee. An Employee enters into a contract of service with the employer for non-
performing the instruction given by him. But employees are no liable for doing such things
which are against the provision of law (Morrish v Henlys Ltd). Apart for these there are certain
rights provided to an employee under Employment Rights Act 1996 such as Right against
discrimination, redundancy and dismal.(Sweet v Parsley (1969, HL)
Since Country Pine is expanding their business so the workforce upon them will also
increase. In order to handle this situation they have to employee more workers. These workers
are an employee to the company under section 230 of the Employment Rights Act 1996. The
appointed employees are entitled to get a minimum wage and sick holidays as per sub-clause 3 of
the section 230. also according to the case of Uber taxi (Aslam v Uber BV) the workers are
employees under an organisation and they have all the rights as mentioned in the Act of 1996.
So, they have comply with these laws.(Sweet v Parsley (1969, HL)
M2
Legislation bodies have a major impact on a company performance as it helps an
enterprise in various complex situations by imposing distinct necessary laws such as; minimum
wages act, corporation act 2001, consumer protect act, health and safety and so on. According to
given case study Country Pine is involving in expanding their business across the international
boundaries for generating maximum revenue by launching creative ideas. Thus, company is
adopting various appropriate acts and policies to reduce possibilities of mistakes and errors.
Beside this, selected firm automatically enhance their performance by controlling possibilities of
frauds as well as prevent innocent consumers from getting misused from any misinterpretation.
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TASK 3
P4 Solution to the business problem
There is a strict competition in the market. New organisation are emerging with great
innovative ideas. In order to make stand in the market tit is essential for existing one to expand
their business. In the expansion they have to face a lot of problems such as, appointing new and
creative employees, technology, uncertainty of future, competition, costumer service etc. The
challenges are the part of business.Bagley, 2010)
Country Pine is a sole trader, all the profits earned by them are vested in the owner of the
company. But the demand of their furniture has grown immensely so they want to expand their
business. In order to do so they have to get incorporated as a Limited Company. For now, they
don't have to share the profits but on going limited they are entitled for such profits what they
have invested in the organisation. Also it will increase the paperwork, especially for the
Director . It is the fiduciary duty of the Directors to file annual tax report. Also they have to
obliged with the statutory duties of the state. The debts that company incurred is payable by the
partnerships for which are liable, also they are only responsible for their act not of others.(Bodie,
Kane and Marcus, 2014)
If Country Pine is going to expand then they have to face these changes. But it is better to
become a limited company than being a sole trader as they can do business all over the world
unlike a sole trader has its reach in their local market.(Crane and Matten, 2016)
D2
According to..........number of legal solutions are identified which plays a very eminent
role in overcoming various issues which might incurred at workplace. Basically, legal solutions
is followed by every individual of an enterprise either small or large in order to maximize their
company profit in a minimum time period. Along with this, get succeeded in maintaining the
image of an enterprise at marketplace by considering necessary facts or figures. For example
company is hiring talented agent for understanding every terms of legitimate bodies to reduce
probabilities of mistakes and errors.
P5 Justification of Legal Advice
Country Pine wants to expand their business so it is conspicuous that they have to
incorporate themselves into a Limited Company. There are many advantages of being limited
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company than being a sole trader, as they can reach to a number of customers all over the world
instead of providing their service in the local market. Also it helps in building a trust between
their consumers and investors.(DiMatteo, 2010)
Being a limited company will attract more and more investors and consumers.
Authenticity of the organisation shall also increase as the company is a registered one under the
Act. They can perform their business evidently in the market and can compete with others as
they have new and great innovative ideas.
M3
Legal solutions of an organization are playing very eminent role in enhancing the
performance of an enterprise by imposing necessary acts for attracting employees towards their
job role. Thus, some of the major positive and negative effects of business solutions are
described as follows:-
Positive Negative
 Control possibilities of losses.
 Prevent rights of employees and
consumers.
 Minimize fraudulent activities at
workplace.
 Difficulty in understanding complex
terms and conditions of various laws
and orders.
 Restriction create problem for
enterprise while involving international
contracts.
TASK 4
P6 Recommend solutions based on legal system
Country Pine is engaging in expanding their business and trying to converting the
enterprise from sole trader into limited company for gaining maximum profit. Basically, finance
of selected firm is very strong due to which selected firm is preferring expansion process in order
to acquire trust or loyalty of domestic as well as foreign clients. Thus, with the presence of large
number of employees there is maximum chance of conflicts which affects the success of an
enterprise in various manner.(Eren and et. al., 2012) Therefore, company is adopting ADR for
reducing various conflicting situations by concerning each or every aspect of an association. In
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fact, three major tools are falls under this method such as; negotiation, mediation and arbitration.
An effective description of ADR tools are discussed as follows:-
 Negotiation:- As per this component both the person whomsoever are involving in a
contract come closer for understanding each or every aspects in order to resolve hidden
issues and barriers. In fact, this method is useful for small business which are not having
maximum amount of funds as it reduce the additional costs.
 Mediation:- Participation of mediator and any middle men for resolving business
conflicts by identifying various hidden elements and so on. However, through this
method company don't need to hire any professional bodies for conflict resolutions but
still hired third party for acting on behalf of contentions members.
 Arbitration:- An organization needs to hire experience or any professional legal member
for resolving issues in official manner with the use of legitimate facts or figures. For
example; number of multinational organizations are adopting this tool by considering
their goodwill at marketplace.
All these techniques are helpful for Country Pine as it aids in every difficult situations like;
 if both the parties are not ready to come closer for clearing doubts then arbitration or
either mediation method is used due to the involvement of third party.
 On the other hand if both are agreeing to solve conflicts between them only then it may
control the additional or hiring cost of an enterprise.
It means all the methods are appropriate for company success and helpful in reducing
possibilities of mistakes. Throughout the study it has been observed that arbitration must be
adopt by Country Pine to run their association in most appropriate manner because with the use
of this method there is involvement of professional bodies. Additionally, everyone knows that
legal members is very much appropriate for limited company because every task is incurred in a
official manner as well as consider each terms and conditions. Apart from this, number of things
get changed as legal agent assist entire association towards right path by throwing lights on
necessary elements.
M4
ADR is very much appropriate for resolving conflicting situations because it aids in
clearing all the hidden doubts or barriers by identifying necessary facts or figures. Thus, three of
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the tools are determined in this method which are distinct from each other. Proper comparison
and contrasting between all the three methods are described as follows:-
Negotiation Arbitration Mediation
 Both the main parties
are coming closer for
clearing hidden doubts.
 No additional charges
due to the absence of
any mediator.
 Consume minimum
time period.
 Hiring of professional
bodies and any legal
members for
understanding
legitimate terms and
conditions.
 Consume maximum
time period due to the
involvement of legal
member.
 Requires hiring
charges.
 Involvement of
mediator but not that
much professional or
legal. It means, third
party is participated in
this method for
clearing various
matters.
 Not that much time will
consume.
 Absence of appointing
cost.
CONCLUSION
From the above report it has been summarized that business laws are playing very crucial
role in corporate world by imposing various legal norms and beliefs at workplace in order to
control possibilities of mistakes. Their main objective is to promote economy of a nation by
encouraging new starts-ups towards expansion process. In fact, company is adopting numerous
of laws and orders to make positive connection with employees and customers for continuing
long term relations with them. In fact, overall report is showing the methods used by Country
Pine which is sole trader while running their organization as well as aiming to generate
maximum return on their investment by satisfying clients needs. Apart from this, ADR was also
covered in this assignment for assisting an enterprise towards corrective path. Moreover, trying
to reduce conflicting situations which might occurred at workplace between various staff
members.
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REFERENCES
Alix Adams Books
Pepper v Hart (1993, HL)
Fisher v Bell (1961)
Adler v George (1964)
Smith v Hughes (1960)
Royal College of Nursing v DHSS (1981, HL)
Sweet v Parsley (1969, HL)
Books and Journals
Bagley, C.E., 2010. What's Law Got to Do With It?: Integrating Law and Strategy. American
Business Law Journal. 47(4). pp.587-639.
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. McGraw-Hill Education.
Crane, A and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive advantage.
American Business Law Journal. 47(4). pp.727-794.
Eren, S.S and et. al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Foss, N.J and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L., 38, p.405.
Kinicki, A and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.Swartz, L.B., Cole, M.T and Shelley, D.J., 2010.
Instructor satisfaction with teaching business law: Online vs. onground. International
Journal of Information and Communication Technology Education (IJICTE). 6(1),
pp.1-16.
Ye, Q and et. al., 2011. The influence of user-generated content on traveler behavior: An
empirical investigation on the effects of e-word-of-mouth to hotel online bookings.
Computers in Human Behavior. 27(2). pp.634-639.
Online
Alternative dispute resolution (ADR). 2017. Available through
<https://www.citizensadvice.org.uk/consumer/alternative-dispute-resolution/settling-
out-of-court/>.
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