Business Law Report: CP Company's Legal Framework and Solutions

This report examines the business law compliance of CP (Country Pine), a furniture manufacturer. It explores the sources of law, including statutory, common, and EU law, and the role of the UK government in law-making. The report analyzes the impact of employment and contract law on businesses, suggesting appropriate legal solutions such as company registration and compliance with the Companies Act 2006, including directors' duties and corporate governance. The justification for these solutions is provided, emphasizing the importance of the Companies Act 2006 for maximizing production and sales. The report also recommends the use of Alternative Dispute Resolution (ADR) processes, particularly arbitration, to resolve disputes, such as the conflict between CP and its Polish suppliers, providing a fair and efficient method for resolving conflicts without court intervention. The report concludes by emphasizing the significance of legal obligations for effective business operations.

Unit 7 Business Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Sources of law that organisation needs to comply with....................................................1
P2 Role of government in law making...................................................................................2
P3 Employment and contract law have impact on business...................................................2
P4 Suggest appropriate legal solutions...................................................................................3
P5 Justification for use of appropriate legal solutions............................................................4
P6 Recommend solutions on the country legal structure.......................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Business law is required to be followed effectively by the firm in order to ease off
operations in effectual way. Present report deals with CP (Country Pine) which is engaged in
manufacturing of furnitures and provides in restaurants and pubs. English legal system is
explained and implications of various sources of law is discussed as well. Moreover, duties of
directors are discussed. The Alternative Dispute Resolution focusing on arbitration is explained.
P1 Sources of law that organisation needs to comply with
The law is required to be followed by the organisation so that it may be able to function
as per the legal framework in the best possible manner. UK government implements laws related
to businesses in order to perform in accordance to the standards imparted by the law. English
legal system is well-structured system which consists of civil and criminal laws providing better
and fair treatment to the organisations and citizens with regards to any discrepancies occurred. In
relation to business, statutory and common law is being applied on the operations of
organisation. Statutory law means it is a type of written law that is implemented in UK's
Parliament when approval is obtained in from other courts. This implies that originating decision
is taken from the courts and collective approval is made and law is formed which is legally
binding on the company. It means that legal protection is provided to the customers who
purchases goods from firm. In order to carry on fair business practices, organisation needs to
comply with sources of law (The Legal System of the United Kingdom, 2018).
Moreover, common law means which is applied to organisation or people. CP (Country
Pine) needs to follow such law provided by the government to carry on business operations
smoothly. Senior Appellate courts make decisions and as such, law is formed which is legally
binding on the business. On the other hand, European Union law provides rules and regulations
relating to financial standards in the best possible way. While, Companies Act, 2006 is one of the
important business law regulating businesses in order to have fair business practices in effective
way. It consists of 1300 sections and 16 schedules helping in regulating formal law applying on
the organisation. Moreover, this law lists down directors' duties which is helpful in business as
well. The Act lists down various standards related to valid name of business, matter related to
issuance of shares, liability of auditors for checking accuracy of financial statements in effective
manner. Thus, such sources needs to be complied by organisation.
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P2 Role of government in law making
The government of UK has immense role in making laws. The stages of bills which are
passed from various approvals from courts and as such, law is being enacted. The stages are
discussed below-
Bill- It is first stage when bill is formulated and presented to particular court and as such, various
types such as public, private and private members' bills can be presented.
First Reading- It is initial stage where title of the bill is imparted and main reason behind the
benefits of passing such bill is discussed. This is read by House of Commons and as such, next
reading takes place.
Second Reading- This is the stage where votes are made by the MP which is done for and
against the bill whether it should be passed on to next stages or not. From majority of votes,
decision is taken for further approval to next stage (Listokin and Mun, 2018).
Committee Stage- In respect to this, bill is passed to committee stage. House of Commons go
through the bill and make amendments if any before it is passed onto report stage.
Report stage- At this stage, committee and House of Commons debate is done which is related
to whether bill should be carried forward to third reading or not.
Third Reading- In third reading, committee again approaches to House of Commons. Thus,
decision is made regarding the approval of bill and as such, bill is forwarded to further stage.
House of Lords- It is the stage where approval regarding the bill is jointly made by all the
parties discussed on above stages. House of Lords go through it and make amendments regarding
the bill and after such, modification, bill is forwarded to House of Commons.
Royal Ascent- It is final stage where Monarch makes approval and bill is transformed into law
in Act of Parliament. It then becomes legally binding on people and businesses (Elmagrhi and
et.al, 2018).
P3 Employment and contract law have impact on business
1. Employment Obligation Act 2008-
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This Act provides way to enjoy full rights to the employees. This is required as employer
has an obligation to impart necessary rights in relation to the employment in the best possible
manner. It is useful for employees to give them loyalty towards firm in effective way.
2. Contract Act 1990-
The security and power is provided by the various laws such as Health and Safety Act
1974, Equality Act 2010 and Harassment Act 1997 to name a few. If any incident occurs in the
business by which employee becomes injured, then medical facilities is provided. On the other
hand, Harassment Act also provides protection to the workers at the workplace. Moreover,
Equality Act lists down that all employees should be treated fairly. CP will be able to meet
increasing demand in the restaurant and pubs and as such, it would be possible when workforce
is diversified. Thus, productivity and profitability can be managed effectively. Hence, by abiding
by the laws, CP can attain smooth operations with much ease (Edelman, Jiang and Thomas,
2018).
P4 Suggest appropriate legal solutions
The registered company requires enough formalities to carry on operations in effectual
manner. CP is required to attain company form so that it can easily sales. It will help to increase
profits in the best possible manner. In relation to this, Companies Act 2006 is one of the main
law governing companies in effective way. CP will be benefited and business activities can be
improved up to a high extent. Furthermore, various penal codes are also listed by the Act which
affects business operations if they carry out unfair practices that are against rules and regulations
governed by the Act. In relation to this, equality is provided between stakeholders or external
users and management of the company (Blount and Nunley, 2015).
One of the main objective of organisation is to establish better relations with customers
and shareholders in order to inject sales and eventually earn desired profits because of enhanced
productivity which is imparted by adequate investment. Corporate governance is another
important activity as directors have to make ensure that they fulfil their duties and
responsibilities in that way listed in Companies Act 2006. Moreover, goals of the organisation
will be effectively fulfilled and employees would become loyal towards it.
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P5 Justification for use of appropriate legal solutions
The Companies Act 2006 lays down various roles and responsibilities of directors which
are required to be discharged by them for easing off business operations in effective way. The
Act provide standards, regulations from time to time which are legally binding on the directors
and they are required to follow the same. These roles and responsibilities in CP will help to
effectively maximise production and sales will be injected as well.
Duty of care- It is listed in Section 174 which displays that director shall effectively act with
care, competence and skill that is required for carrying out operational functions in the best
possible manner.
Duty to avoid conflicts- The same is listed in Section 175 which means that no conflicts shall be
made which affects shareholders' interest in the company. Moreover, no breach of duty should
be there.
Duty to promote success of organisation- The Section 172 governs that is the duty of director to
take interest to effectively promote success by taking care of employees, shareholders, suppliers
and as such, they are needed to fairly treat them so that company may be able to attain success
in the best possible manner.
CP is required to avail sources of finance by which it can easily carry out registered
company's operations. CP can raise capital within three months when approval is being
accomplished from Court. Business can take bank loans and as such, directors who are in charge
of operations should analyse CP financial position before availing loan (Allen and Kraakman,
2016).
P6 Recommend solutions on the country legal structure
Alternative Dispute Resolution Process (ADRP)- It is one of the useful way to get fair
judgements when any dispute or issues prevails between two parties. It saves time of the parties
as they need not appeal in the Court for seeking justice. The three methods under ADRP are
described below-
Conciliation and Mediation- The methods are helpful as both the parties are benefited
because issues are resolved which are in favour of both parties and as such, quick judgement can
be made which saves time of them. Moreover, this method is way less complex than arbitration.
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Adjudication- In relation to this, written documents are prepared by the parties like
agreement and as such, issues can be resolved in the best possible manner. Thus, the method
focuses on areas to resolve problems in economical way which saves money and time of parties
in conflict.
Arbitration- This is another useful alternative way of resolving issues in effectual
manner. In this method, arbitrator is appointed by the organisations who scrutinises the case with
regard to written evidences. Arbitrator imparts solution to the parties and as such, they are
legally binded to follow judgement provided by him. Thus, intervention of Court is not required
in this case (Berg, 2017).
In accordance to the case study, conflict is arrived between CP and polish suppliers. CP
imports timber from Poland and it arrives in the form of flat backs. Due to this form, defects are
found in flat backs when it reaches to the party. Thus, supplier refunds back the money but it is
not found in this case. Hence, arbitration will be useful way to resolve the problems and as such,
fair judgement can be provided with the help of evidences. Thus, dispute can be resolved without
intervention of Court.
CONCLUSION
Hereby it can be concluded that laws and regulations are crucial for organisation to
effectively meet legal obligations and carry on business operations quite effectually. Moreover, it
is required that various regulations should be followed by CP in order to transform business into
registered company and increase profitability with much ease.
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REFERENCES
Books and Journals
Allen, W. T. and Kraakman, R., 2016. Commentaries and cases on the law of business
organization. Wolters Kluwer law & business.
Berg, C., 2017. Enhancing the assignment: Using the Framework for student learning and
assessment in a Business Law class. College & Research Libraries News.78(9). p.502.
Blount, J. and Nunley, P., 2015. Social Enterprise, Corporate Objectives, and the Corporate
Governance Narrative.American Business Law Journal. 52(2). pp.201-254.
Edelman, P. H., Jiang, W. and Thomas, R. S., 2018. Will Tenure Voting Give Corporate
Managers Lifetime Tenure?
Elmagrhi, M. and et.al, 2018. Trustee Board Diversity, Governance Mechanisms, Capital
Structure and Performance in UK Charities.
Listokin, Y. and Mun, I.A., 2018. Rethinking Corporate Law During a Financial Crisis. Yale
Law School.
Online
The Legal System of the United Kingdom, 2018 [Online] Available Through:
<https://www.cilex.org.uk/about_cilex/about-cilex-lawyers/what-cilex-lawyers-do/the-uk-legal-
system>
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