Law for Business Managers: Business Structures, Employment & Patents

This report delves into key aspects of business law relevant for managers, covering business structures, employment status, and patent law. It begins by analyzing the most appropriate business mediums for different clients, including architects, beauticians, and musicians, considering the advantages and disadvantages of each. The report then examines an employment case study, advising on employment status at law and its importance, specifically focusing on the distinction between employees and the self-employed. Lastly, the report explores the requirements for patent grants under the Patent Act 1977, outlining the criteria that must be met and the benefits and drawbacks of patenting an invention. The report offers practical insights into legal considerations essential for effective business management and decision-making, providing a comprehensive understanding of various legal frameworks and their implications.

Law for Business Manager

INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Most appropriate business medium for the following clients:.....................................................3
A. A group of 20 architects who wish to establish a small business to attract property
developers....................................................................................................................................3
B. Three friends who have just qualified as beauticians............................................................4
C. An up and coming musician...................................................................................................5
PART 2............................................................................................................................................5
Advise Taran of his employment status at law? Consider why this is important in your answer
.....................................................................................................................................................5
PART 3............................................................................................................................................7
What criterion needs to be satisfied in order for a patent to be granted and what are the key
advantages and disadvantages of patenting an invention under the Patent Act 1977?................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In present scenario, any of the business entity requires the manager who handle day to day
affairs. Equally, manager must have certain knowledge regarding law as well which will make
working condition easier and faster as well.In simple words, law for business manager can be
defined as the set of rules which a manager applies for the purpose of performing any of the task
in lawful manner. This are those set of rules must be followed by an entity for sorting out any of
the matter(Agarwal, 2018). In addition, it is necessary to understand that manager has the key
role within the entity and they must be able to perform their task wisely, but if in case manager
have unqualified knowledge regarding law then it will not be an easy task to manage daily basis
affairs.
In terms of the report, it is necessary to understand that it is completely based upon
knowledge of different field. For better understand regarding the knowledge of manager file has
been categorised in three parts where first section will tell how any of the entity is required to
setup and in which form of business they should invest their capital. But, in second section, one
of the case study will be solved which will explain the difference between employee and self-
employed. At the end, third part will discuss that an inventor has to follow the law of Patent Act
1977for having registration with its major benefits and drawbacks.
PART 1
Most appropriate business medium for the following clients:
In this scenario various types of business organization that are to be practiced through
investor in order to invest money for generation of revenue in appropriate manner. It is very
important to follow proper guidelines in any type of business which has been running. In case if
such aspect is not covered then legal action can be taken upon a firm. As per recent time various
concept has been introduced that is helping all small investors for investing of capital in an
business organization in which legal formalities is not that much.
A. A group of 20 architects who wish to establish a small business to attract property
developers.
As per the requirement of 20 architectures who wants to setup and establish small
business in order to attract new developers of property. It will be important for them to look

forward to the Private Company Limited. This is because all property related business has the
requirement of better platform in which huge amount of investment is required and also
management is required to be done in systematic manner. Main thing that is to be considered
while forming a private company is that guidelines must be read. Group is going to require name
of the company that is to be identical within itself. It is also required to prepare a memorandum
of association and also article of association. Document is required to be submitted in the
Companies House with registration fees. As architecture must go for the option of private
limited company they must have the detail knowledge regarding the business. These are the
business in which proper team is required to handle all the work in systematic manner. This is
very essential to understand all important guidelines are mentioned under Companies Act 2006
and as per this various penalty is imposed (Hansmann and Kraakman, 2017). This types of
business have different business opportunity and even investors gets benefits as well as law
provides legal existence to a company. Performing of business is at larger platform. Certain kind
of restriction is there like shares cannot be transferred to public under any kind of circumstances,
annual account is required to be maintained. Major benefits that can be gained is that investors
are having limited liability and company can sue or can be sue under its name.
B. Three friends who have just qualified as beauticians.
Whenever any of the group of 2 or more than two people but up to 20 members with less
investment, they must look for those business which can be performed easily. As per given
condition of the question investors are new and they have just completed their degree and course
of beautician. Thus, it is important for them to understand that they have to start with a small
team and less foundation for them opening of partnership is an better option. It is required to
understand that being a new investor and lack of experience about a specific field. Under this
situation, partnership is going to be helpful for them as will allow them to take several benefits.
It is also important for group to obtain an HMRC and must be able to prepare partnership deed.
Other thing to be kept in mind is that all requirements should be full filled as per Partnership Act
to that any of the problem will not be faced by the small investors. (Allen, Kraakman. and
Subramanian 2016). But, it is crucial to understand for the organization that they must have the
detail knowledge about the Partnership so that in future they will not have to face any of the
problem. The main agenda of establishing the partnership firm is to generate profit All the
activities required to be performed according to guidelines given under act related to it. This type

of business is very easy to perform and no complex mechanism is there for it. These are formed
to accomplish goals for a specific time period. A partnership deed is required to be formed
whenever an organization of such nature is established. Also, it leads to distinguish of work
among partners. Some of the benefits which are available in this form of business is that
company can easily complete their work because there is no requirement of paper work in it. In
addition, partners have to major the effect of any decision because liability is never limited in
this types of business.
C. An up and coming musician.
In any of the circumstances, when investor is along and doesn’t want to include a team with
him or her, then Sole trader is the most appropriate step which can be taken by the investor. For
establishing sole trader, complexity process is rear and even business can be tackled easily so as
per this situation, it will be important for the musician to go for this particular option. It is
because investor will not have to involve himself for a paperwork which is one of the most
important point in it. But, it becomes responsibility of Musician to get a National insurance
number along with HMRC. Completion of these two documents will allow the musician to start
the business activity in an appropriate manner through which goals can be accomplished easily
within the specific time period. There are number of other information which is relate with sole
trader which musician must know setting up the business. Staring from the definition, these are
that form of business where single invest his or her capital to start the business in order to attain
the goals. In any of the condition, concept of additional investor is not possible it. In this types of
business organization, as there is no requirement of paper work which means there will not be
any of the requirement of conducting the meeting (Alexander, 2019).
PART 2
Advise Taran of his employment status at law? Consider why this is important in your answer
The given case scenario says about the Sleek Driving Ltd which is willing to hire an self-
employed for the company in the field of delivering good and services from one place to another.
Company will not create any sort of pressure upon self-employed to work. Looking as per the
requirement Taran applies for it and becomes one of the self-employed. After entering into the
contract there were certain problem which were faced by Taran and he was explaining that he is
not happy with the working style of a company and notice was completely misleading to them

(Johnston, Segrestin and Hatchuel, 2018). Looking at the scenario, there are some of the law
which is applicable in this particular condition such as Employment law, Contract law, Self-
employed and breach of contract.
Employment law is one of the law that has been formed through legislative body of UK.
As per this, it is necessary in order to understand the relationship that is required for maintaining
between employer and employee. It is one of the law which plays the crucial role in performing
any of the business activity and do not allow the employer and employee to breach any of terms
and condition because penalties can be imposed. As per the working capabilities of employees
they are being given the wages (Dodd, 2017). But the point which is necessary to be understood
is that in any of the circumstances employee will have to follow the orders which has been given
by employer. But as the given case scenario, it was found that Taran is not working as per the
employment law, which mean he is not bound to wear any uniform, neither it is important for
him to work for at least 30 hours and many more.
Self-employed is defined as the position, where person works as per their own interest
but still they are needed to complete the given work in specific time period. They themselves
decide that how they are needed to perform any of the work but still there are certain limitation
which is decided as per the guidelines of agreement which is signed by the parties. Self-
employment is known as an independent contractor that has been directly in contract with
business entity in order to earn profit. Under this contract, it becomes liability of contractor to
pay taxes and also introduce all kinds of essentials product and services required to perform a
work. Looking at the case scenario, it was pretty clear that Taran was one of the self-employed
who has entered into the contract with the organization named Sleek Driving Ltd. During the
time of entering into the contract there were no specific requirement but driving license was
necessary. It simply indicates that there is no requirement for Taran to work as per the guidelines
of employment because he doesn’t fall in that as per the agreement which has been prepared by
the agreed party. Justice v Windle and Arada [2016] EWCA Civ 459 in May 2016, is one of
the landmark which states about the person that when they will be called as self-employed and
what are those condition where they will be employee of the organization (Peterson, 2018).
Both of the parties had an agreement as per the guidelines of contract law which simply
states that there was the consideration between the parties. The relation which was created

between them was related with self-employed who gives his or her services to the Sleek Driving
Ltd. Here, contract simply states that Taran is not bound to work as per the guidance of company
in any of the situation but after entering into contract they forced Taran to work as per their
willingness. It simply means that contract has been breached. As contract has been breached the
person who has to suffer the most in this particular situation is Taran. Condition of Breach of
contract occurs in that respective condition, where any one of the side fails to perform the given
work as per the guidelines of agreement. raise. If it occurs, then legal action can be taken upon
the company. This types of action can create further issues for defaulter where innocent party
gets certain benefits related to remedies or loss of damages (Rosenbloom, 2018). Here, in the
case the case breach of contract was done by the side of Sleek Driving Ltd who didn’t perform
their duty within the contract. In short, the guidelines were not mentioned regarding the work
which was forced to be done by Taran.
As per the above mentioned laws and policies, it is very easy to determine about the statues
of Taran which is Self-employed. As he is one of the self-employed which simply means that in
any of the condition he is not bound to work as per the requirement of company. If company still
forces to do so then he has the option to sue the company for the breach of contract.
PART 3
What criterion needs to be satisfied in order for a patent to be granted and what are the key
advantages and disadvantages of patenting an invention under the Patent Act 1977?
Patent Act 1977:The law and regulations which has the concern with providing g providing
rights to the people or institute who invent something new within the market for attaining the
goals. The main benefits of Patent Act 1977 are that it provides the right to people for at least 20
years where yearly fee is required to be deposited(Dodd, 2017). If any of the other institute wants
to use same invention for personal benefits, then it is essential to obtain the premises from the
inventor himself. While having the registration, it is necessary to follow the guidelines and
meeting out the guidelines can only allow to have registration as per the Act.
 It is crucial to understand that invention must be new and unique where similar form of
invention should not have been found before.
 Registration should be done with in the office of Intellectual Property UK.

 As it is one of the lengthy process, it is essential to understand that between or before the
data of obtaining the registration, information must not be shared within any of the
person in any of the condition.
 The invention which has been made must be helpful for the community or the nation to
improve the economy condition.
It is necessary to understand that if rights are required to be obtained then in that
respective condition all of the above mentioned guidelines must be followed. If inventor fails
to do so then it will not be possible for them to obtain the rights as per the Patent Act
1977(Get patent protection for your business, 2019). Whenever any of the person does the
invention, then in that respective condition, it will be important for them to understand that
there are benefits as well as well drawbacks which can create issues too. Those are discussed
below:
Advantages
 Whenever any of the person gets the rights of under Patent Act 1977, he or she can easily
restrict other people to use it till the date of obtaining the legal rights from inventor.
 As other people will not be able to use the invention which means there will be additional
benefit for taking competitive advantage from the market(Gielnik, Zacher and Schmitt,
2017).
 Different price can be charged for providing the rights to other, which means Patent will
give the opportunity to raise capital at a health rate.
 If in any of the condition, people copies the rights then legal action can be taken upon the
defaulter.
Disadvantages
 It is necessary to understand that information must be kept secretly, but it is one of the
lengthy process which is required to be followed in which data might get leaked.
 The amount which is required for having the patent is high which sometime doesn’t allow
the small investor to be register as a patent act.
 The time period which is required to have registration is 3 to 4 years which is a long time
period.

 In any of the circumstances, people should not forget to pay the annual fee because patent
can be lapse(Goshen and Squire, 2017).
Above mentioned points are some of the most important points under Patent Act must be
considered by the inventors. It will be necessary for the inventor have knowledge about the
Patent Act and its advantages and disadvantages (Agarwal, 2018).

CONCLUSION
Looking at the file, it can be easily identified that law for business manager is essential
because it can give them the idea that how they are needed to make correct decision. Their
decision ability will give an option to organisation that whether goals will be accomplished or
not and if not what were the wrong decision which were taken by them. There are different types
of business entity but way of incorporating them is different with their registration fees. But,
different types of business activity allow the small investor to invest their capital in it for
attaining the goals. Also, any of the entity doesn’t have the right to treat any of the self-employed
as an employee because it there are certain restriction which can be imposed upon employee but
not upon self-employed. Finally, having a patent right allow the investor to take benefits for
longer time period through which their targets can be accomplished easily.

REFERENCES
Agarwal, A. K., 2018. Business law for managers: Kaleidoscopic tales.
Alexander, E.A., 2019. Whither our future global managers? The moderating effect of
organization context on ethical intent in international business.
Allen, W. T., Kraakman, R. and Subramanian, G., 2016. Commentaries and Cases on the Law of
Business Organizations: 2016-2017 Statutory Supplement. Wolters Kluwer Law &
Business.
Dodd, E. M., 2017. For Whom are Corporate Managers Trustees?. In Corporate Governance
(pp. 29-47). Gower.
Gielnik, M. M., Zacher, H. and Schmitt, A., 2017. How small business managers’ age and focus
on opportunities affect business growth: a mediated moderation growth model. Journal
of Small Business Management. 55(3). pp.460-483.
Goshen, Z. and Squire, R., 2017. Principal Costs: A New Theory for Corporate Law and
Governance. Colum. L. Rev. 117. p.767.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate
governance (pp. 49-78). Gower.
Johnston, A., Segrestin, B. and Hatchuel, A., 2018, July. The Separation of Directors and
Managers: A Historical Examination of the Legal Status of Managers. In Academy of
Management Proceedings (Vol. 2018, No. 1, p. 12831). Briarcliff Manor, NY 10510:
Academy of Management.
Peterson, E., 2018. Empowering Business Policy & Strategy through Improved Collaboration
between Managers and in-House Counsel. Atl. LJ, 20, p.225.
Rosenbloom, D.H., 2018. Administrative law for public managers. Routledge.
Online
Get patent protection for your business. 2019. [Online]. Available Through:
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-getting-patent