LAW011-1: Business Law Assignment - Clean Machine Limited Case Study

This document presents a detailed solution to a Law for Business Managers assignment. It begins with an introduction to business law and its impact on management, then proceeds to analyze a case study involving Clean Machine Limited. Part 1 explains the roles and responsibilities of a sole director, providing insights into company law and the duties of directors. Part 2 addresses an employment contract scenario, advising on the process of dismissal and the legal aspects involved. Finally, Part 3 offers guidance on resolving a dispute, and also seeks to advise on working with Precious Time Limited. The document concludes with a reference section.

Law for Business Managers

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Explain the role of sole director to Gemma................................................................................3
PART 2............................................................................................................................................6
Advise Gemma on the process of dismissal and as to whether she is lawfully able to do this...6
PART 3 .........................................................................................................................................10
Advise given to solve dispute to Gamma..................................................................................10
Now she seeks for opinion available over solving problem with Precious Time Limited.
Gemma would like to work with them in future. .....................................................................10
CONCLUSION .............................................................................................................................11
REFRENCE...................................................................................................................................12

INTRODUCTION
Laws for business managers consists of those laws which helps in making management
work according to the laws that has been prescribed for them. Such laws are mainly covered
within business laws which are also known as corporate laws. These laws are helpful in
preparation of proper structure which acts as framework for organization to make its process run
in smooth and appropriate way. Business law impacts management of an organization by making
them enhance there strategies as per the law prescribed for them. Law of this kind make effective
improvement within both public and private organizations. Scope of these laws is wider in a way
that it covers all the aspects existing in an business organization leading over developing of
impactful practices that directly impacts process in an organization. This file consists of three
parts in which sole director, employment contract and dispute solving mechanism is covered.
MAIN BODY
PART 1
Case scenario: In this Gemma formed a new company called Clean Machine Limited that
supplies protective equipment for small businesses within country of Bedfordshire. Further she is
sole director of an company but is not aware about the roles and responsibilities. She is not aware
about legislative provisions in order to govern role.
Explain the role of sole director to Gemma
Company is considered as separate legal entity which is separate from legal entity this
makes an organization to attain perpetual succession that makes personal dealing to be done. In it
major element means that people may come and go but it would not impact an organization's
existence. Legislation regarding this is been covered under company law. Under company law
concept of limited liability is been covered which makes director have various rights and duties
which has been assigned to them. Unlimited liability implies all the rights which has no
obligations and the director can make it share with the basic record and area.
Under company law 2006 various kinds of rules and culture are covered that makes
corporation perform its functions in more effective manner. The act is applicable to various areas
which are related to debts, equity, management and shareholders. In this corporate governance is
been covered which make certain rules applied in relation to employer and directors.

Area within which an organization is been working and is related to sole directors certain
rules and responsibilities has been covered by same person. Further sole director is able to take
decision on there own and business run by them at there won risk. Thus makes changes possible
within the duties of directors. As the sole director will have to take all the decisions by their own
and has to run the business in a proper way with the increasing changed with the new
dimensions. But with that all the debts and the liabilities will arise with the sole director for
working in all means (Hayes, 2018). Thus this company law 2006 provides all the duties and
rights which are owned by a sole director which will help Gemme to understand that better they
are as follows:
Sole directors are required to follow certain duties which has to be followed by them and
these duties are explained as follows:
Act within powers
This is one of the most important duty that an sole director is required to follow. Under
this duty an director is required to use powers in relation to task which an organization is
required to complete. These powers should be used as per organization 's rules and regulations.
Power cannot violated such rules under any circumstances.
Promote the success of the company
It is the duty of sole directors to act towards making promotion of an organization this
helps in attaining success and growth within an organization. The organization is been benefited
from promotion in a way that value of organization increased within market by making its
expansion possible.
Exercise independent judgement
In this duty an directors is require to taken decision in relation to organization's benefit by
themselves. Such decision making power helps in improving various process of organization
through keeping legality maintained. Further this makes objectives and goals achieved in more
appropriate way.
Exercise reasonable care, skill and diligence
Sole directors are require to perform this duty of reasonable care, skill and diligence in
order to make sure that safety and health of employee's are maintained. Also it make positivity
within business environment maintained.
Avoid conflicts of interest

This is one of the most important duty which is required by an director to be followed. As
it makes conflicts to be solved. Directors are require to find out main problem and then provide
appropriate solution over it.
From the above case it can be concluded that Gemma is an owner of business and is also
the sole director of business which makes performance in relation to activities of an business to
be handled by her.
These are been covered under sole proprietor businesses in which owner is responsible for
activities related to business run by him. In this all activities is to be handled by Gemma. She
holds responsibilities like arranging funds or bringing in investment and seeking that loss with
debts is covered within time. She has to make sure that positivity is maintained in environment
of organization run by her. Further it has been covered within companies act 2006 under section
177. As it covers duties of directors in an organization (Drašček, Buhovac and Andolšek, 2020).
PART 2
Case scenario: Gemma has made employed Charanhit as as Cleaner Machine Limited. Gemma
made observation that she comes late for work and also has very poor attitude towards job
regarding her and other employees also. Also Gemma has to regularly make check upon
Charanjit's work and remind him to properly clean areas that has been given to her. Gemma
would like to terminate Charanjit’s employment contract.
Advise Gemma on the process of dismissal and as to whether she is lawfully able to do this.
Employment contract
These are those contracts within which an agreement has been formed or enforced within
employer and employee. It can be in both written and oral form, they are mainly related over
making employment possible according to laws prescribed for it. In these kind of contracts
rights, exception and obligation has been mentioned by both organization and individual also. As
per these contracts various kinds of rights, exceptions and obligation is mentioned within over
company and individual. Such contract is based over employment which includes various kinds
of information that is in relation to employment like promotion, reward and termination is been
discussed. There are two things that has to be covered within it and has been explained as
follows:

 Executive and workers over skills that is to bee included upon demand to be
made in relation to employment.
 Such terms is been defined over various employment set as per rules and
standards given under labour and employment law.
Employment contract are those contracts that has been used for making effectiveness
over establishing of employment relationship within employer and employee. Such contract is
known for working upon various rights and duties to be possessed by employer and employee. In
this remuneration and different aspects related to job is covered. Also employment contract has
been helping in making various things clear and confusion removed in relation to employment as
per contract. In this letter of employment is written and has to be reviewed by an legal expert
who has specialized in employment law. As per letter of employment all terms and policies of
organization in relation to employment is given in precise manner. Under employment contract
various elements is included in an agreement according to organization over lot of terms and
condition that is applied (Gruber, Holweg and Teller, 2016). There are certain things to be
included within employment contract that has been given as follows:
 Name with personal details of both employer and employee.
 Date when employment has been started by employee.
 Job title with description.
 Task and work to be done by employees during the course of employment.
 Time of work according to hours or week.
 Kind of employment within organization.
 Methods of doing payment and job.
 Amount that has to be noticed in relation to employer and employee through out the
employment.
 Confidentiality should be maintained with transparency to work.
 Dispute related clause has to be mentioned within the letter.
 Provisions over making dealing through changes within employee's role or scope related
to duties that is been covered. Explaining over changes that can be made during the
employment upon role and duties.
Types of Employment Contracts

There are various contract that has been existing in an contract has both positive and
negative factors. In this specific business is required to be defined as per its nature only contract
of employment is to be formed. These are the contracts which is to be violated through rights of
employees to be possessed. Various employment contract for employment has been explained as
follows:
Full-Time Employment Contracts
Such contracts of employment makes involvement of full-time employees upon an
employment which makes working average to be not more than 38 hours per week. In this main
focus is upon hours that is dependent over nature of work within industry or organization. Also
over work that has to be done by employee within it.
Part-Time Employment Contracts
Various kind of employment that makes ongoing employment or working less then 38
hours a week. In this regular working hours in each week is been entitled over employment that
can be full-time staff or permanent employee. In these kinds of agreement is only pro rata basis
is been used to make employment strong.
Casual Employment Contracts
Casual employees which has been working upon demand that has been raised within an
organization. Within permanent agreement causal employee rights is been guaranteed through
employment. In casual employment contract has to be terminated without giving any notice to
employee (Lin, Law and Zhou, 2017).
Fixed-Term Employment Contracts
Under such employment contract employee has been hiring upon specific time. Typically
an contract if such kind makes project to be completed upon an event that has been taking place.
In this fixed-terms contracts it has been clearly mentioned that contracts has been clearly making
length of employment upon a particular period of time which includes from top to bottom. Such
agreement has both short-term and fixed-term workers. In this various entitlements is included
which is permanent employment.
Independent contractor
These contracts deals over those kinds of contract that makes self-employed workers to
be contracted over an organization. Contractor should negotiate upon fees and agreements made

upon freedom to work with employers. This is important for an employer to make clarity attained
over permanent employee and independent contract .
According to various acts and rules mentioned within them which makes an employer to
be terminated within an employment contract possible. It has to be done only through making
representation and termination to be justified in proper manner with valid reason. All this is
covered under Small Business Fair Dismissal Code.
Dismissing an employee
Employer is not able to make employee notice which has to be given as per the contract
that has been stated through employment contract. In this making minimum legal notice upon
period that has to be applied over long time period of time. The notice can be issued only when
these two condition is been justified and they are.
One week an employee is to be employed over time period which is to be of one month
and two years.
One week for each year complete employment which makes maximum up to twelve
weeks. It can be understood through an example for two years of continuous employment
through notice period should be of two weeks, for six years continuous employment over
notice will be six weeks.
Employee can be dismissed without giving an notice only when the act that has been
committed by them has been making parameters of ethics at workplace to be violated. Then in
such situation employment is caused over misconduct in an organization. Also when such
conduct has made resulting over impacting various elements of job in inappropriate manner.
These kinds of misconduct should be theft, fraud and violence by making fair time of dismissal
to be conducted for throwing an employee out of organization( Misenti, 2017).
From the above mentioned scenario it can be marked out that Gemma has employed
Charanjit for the post of cleaner in Clean Machine Limited. It has been observed from the facts
that performance is not good of Charanjit with this attitude over employees is very negative.
Further it can be observed that punctuality is also not there within him. This made Gamma took a
decision to terminate him. This cannot be done as Charanjit has not caused theft, violence or any

fraud. So, he cannot be terminated on this basis. Thus Gamma can terminate him only when any
such misconduct has been made by him that makes ethics to be violated.
PART 3
Advise given to solve dispute to Gamma
Case scenario: In this case scenario it can be observed that Gemma formed a contract
with Precious Time Limited over supplying materials. As the contract was going smooth but due
to some reason issue arose within parties upon making things to be clear. Gemma has been told
by friends upon making Precious Limited taken to court but is not aware about method to be
used. Gemma has been making advice by friends upon taking Precious Limited of court that has
been making court to attain best way forward.
Now she seeks for opinion available over solving problem with Precious Time Limited. Gemma
would like to work with them in future.
Alternative Dispute Resolution (ADR): Alternate dispute resolution system is that kind
of system that has been formed in-order to make wide range of problems and disputed to be
solved through various processes mentioned within the process. In this problems are being
solved outside the court by making parties agreed upon making disputes to be solved by making
parties come to common point of agreement. There are various kinds of process that is involve
within it that has been explained as follows:
Negotiation: Such kind of process is been used most commonly upon various
organization which makes problems to be solved with the help of an negotiator. As per the
process an negotiator is been hired that makes both the parties to come over a point in which an
individuals can be agreed upon. This makes dispute to be solved without going to court
(Summerton, 2018).
Arbitration: This is one of the most common form of method that is been used for
solving dispute in faster and better manner. As per this an arbitrator is hired by both parties
which makes parties to come to appropriate solution through judgement passed by judge of
arbitration tribunal. In it an arbitrator is been hired that reads facts presented by parties before
judgement is passed. These matter are hard by arbitrary tribunal and has made various cases to
be solved outside the court.

Mediation: In this process of ADR an mediator is been hired which makes parties agree
over solution but it is not bound by parties to follow it. In this an mediator acts like negotiator
which makes issue to be addressed and solved.
From the above scenario it can be concluded that problem that has taken place between
Gemma and Precious Time Limited has to be solved using ADR. Process of ADR to be used
within it is arbitration that makes judgement to be passed which makes judgement to be passed
over issue. This is one of the most fair process in ADR to end an dispute in fast and appropriate
manner possible (Sun and et. al., 2017).
CONCLUSION
From the above discussion it can be concluded that business laws are the laws that is used
by an organization in making its establishment possible in more effective way. Further in this file
different kinds of business organization has been discussed and sole directors has been
explained. Employment contract are those agreement formed in order to make employee and
employer relation to be enhanced. In the end ADR system is told which helps in solving dispute
without going to court.

REFRENCE
Books and journals
Aquilio, M., 2017. Attorneys Are Not Limited Partners: PLLC Member-Managers Are Held to
Not Be Entitled to a Self-Employment Income Exclusion of Distributive Shares. Journal
of Accountancy. 224(1). p.66.
Arimoro, A., 2017. Legal Reflections for Wealth Managers in Nigeria. Legal Reflections for
Wealth Managers in Nigeria" Ebonyi State University Law Journal. 8(2). pp.161-173.
Begkos, C., Llewellyn, S. and Walshe, K., 2020. How do medical managers strategize? A
strategy-as-practice perspective. Public Money & Management. 40(4). pp.265-275.
Drašček, M., Buhovac, A.R. and Andolšek, D.M., 2020. Moral Pragmatism as a Bridge Between
Duty, Utility, and Virtue in Managers’ Ethical Decision-Making. Journal of Business
Ethics. pp.1-17.
Gruber, V., Holweg, C. and Teller, C., 2016. What a waste! Exploring the human reality of food
waste from the store manager's perspective. Journal of Public Policy &
Marketing. 35(1). pp.3-25.
Lin, B., Law, K.S. and Zhou, J., 2017. Why is underemployment related to creativity and OCB?
A task-crafting explanation of the curvilinear moderated relations. Academy of
Management Journal. 60(1). pp.156-177.
Misenti, N.C., 2017. The Evolution of the Illinois Super Business Entity and Absolute Limited
Liability for LLC Members and Managers. Atl. LJ. 19. p.20.
Summerton, M., 2018. Investment platforms are changing the way wealth managers do
business. MoneyMarketing, 2018(Nov 2018). pp.22-22.
Sun, S and et. al., 2017. An updated comprehensive review of website evaluation studies in
hospitality and tourism. International Journal of Contemporary Hospitality
Management.