LAW011-1: Business Law - Organizations, Offers, and Remedies

This report provides a comprehensive analysis of key aspects of business law relevant to business managers. It begins by examining various types of business organizations, including sole proprietorships, partnership firms, private organizations, and public organizations, outlining their respective advantages and disadvantages to advise Abdul and Anna-Maria on the most suitable structure for their concert promotion business. The report then delves into the concept of 'invitation to treat' in contract law, differentiating it from an offer to sell, supported by case law examples such as Pharmaceutical Society of Great Britain v Boots and Fisher v Bell. Finally, it explores the remedies available to shareholders against company directors, providing a thorough overview of legal considerations for business managers. Access this and more solved assignments on Desklib.

Law For Business
Manager

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Explain about various kinds of business organizations with there advantages and
disadvantages..............................................................................................................................3
PART 2............................................................................................................................................6
At what point does a display in a shop window become an offer to sell rather than an
invitation to treat?.......................................................................................................................6
PART 3............................................................................................................................................8
Explain what remedies are available to shareholders against the directors of a company
.....................................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Law for business manager are those laws which is been used in order to help in making
an organization attain more sustainability related to management of business organization. Such
laws helps in developing framework necessary over making organization work in more
organized manner. These laws makes various process managed in more effective way and it
leads over making objective and goals achieved related to management. Also these laws deals
with different aspects based over management which makes organizations grow with full
efficiency. These laws are part of business law that provides guidance related to working and
establishment of business organization. Scope of these laws are wider as they cover about
various aspects related to management of an organization. Nature is dynamic since these laws
have tendency over impacting business management directly. In this file three parts is been
covered which explains about various kinds of business organizations, invitation to treat and
remedies mentioned under contract law.
MAIN BODY
PART 1
Case scenario: Abdul and his friends Anna-Maria decides over setting business of
promoting concerts and events. Now they are willing to seek advice regarding best suitable
business organization for them. Also there advantages and disadvantages is required to be
explained.
Explain about various kinds of business organizations with there advantages and disadvantages
There are various kinds of business organizations which is been used for performing business
activities which has been discussed below:
Sole proprietorship: These are considered as those business organizations which are
most commonly formed or used in order to set up business organizations. In this single owner
exists which handles all aspect related over business. The owner of business is termed as sole
proprietor. Such business entities are very easy to be formed and makes business set up done
easily(Shanahan and Hopkins, 2019). The process of registration only requires INHRC number
which is to be generated and name of such organizations is not compulsion only required for
initiating business. Managements of these organizations is been handled by by the owner only in
this profit and loss is been included. Funding of these organization is been done through family

members, friends and relatives. These organization has certain advantages and disadvantages
which has been explained as follows:
Advantages
 Profit earned by these organization is been kept by the owner himself that make profit
earned more strong (Schwepker, 2019).
 In this formation process is very easy and takes less time within its formation.
Disadvantage
 Biggest disadvantage is that there is difficulty in arranging funds which makes business
struggle over its existence.
 Such organizations faces heavy loss that makes business to be collapse at times.
Partnership firm: In an partnership firm there are two individuals that comes together
over making common motive to earn profit and generate revenue form it. These organizations
makes risks, costs, benefits and responsibility over running organization to be identified while
forming such organizations. In general partnership liability is unlimited whereas in limited
liability partners as per there investment holds responsibility of business. The registration
process of partnership is based upon generating INHRC number and partnership agreement is
required only for license purpose. Management and all responsibility of such organizations is
been hold by the partners themselves. Funding is been done within the helps of partners involved
within such businesses. Certain advantages and disadvantages has been explained as follows:
Advantages
 In this firm there is less legal obligations created.
 Burden is very less since partners share it with each other.
Disadvantage
 These organization does not have any legal status which may result in to dissolution of
partnership(Plump and LaRosa, 2017).
 Conflict of interests in this partners may be involved into an fight that makes partnership
come to an end immediately.
Private organization: These organizations have Private limited in the end of its name.
Also shares of these organizations is not been sold within public. The registration process of such

organizations is been collected with memorandum and article of association then its is been
submitted to Companies House. All kind of management activities is handled by directors and
management department of an organization. Funding is been arranged through loan from bank
with debentures. Advantages and disadvantages of these organization is given as follows:
Advantages
 In this organization enjoys right of succession which makes it seprate entity from its
owners.
 Business privacy is one of the advantages of private limited company
Disadvantage
 Formation process is time consuming and money involve is huge which makes it very
complexed in nature.
 Divided ownership- one of the common disadvantages of private limited company
Public organization: These are those organization which uses Public Ltd at the end of its
name and in this shares is been sold to public. Its registration process is very complex and
includes signature and digital signature of its owners. Management is done by shareholders and
owners of the organization(Lyu, Li and Law, 2019). Funding is been done with the help of
government finance institution. Its advantages ans disadvantages explained as follows:
Advantages
 Public corporations can formulate and implement policies which promote public welfare.
 In a public corporation red-tapism and bureaucratic delays are minimized to a great
extent.
Disadvantage
 It enjoys immunity from parliamentary inquiry into its day-to-day functioning.
 Public corporation incurs losses, the government provides subsidies to make good the
loss.
After discussing the facts of the case scenario with different organizations it can be
marked that partnership is the best form of business which is to be formed by Abdul and his
friends Anna-Maria as it does not involve any complexed process and high capital. Since these
organizations is very easy to form and does not include any complex process within it. Such
organizations allows establishment of new business with its expansion in more effective way. In

these organizations more than three persons are involved and also there is lack of government
interference which leads over making such organizations operate in appropriate manner. Further
these organizations has stability in relation to arrangement of funds which makes growth
possible with effectiveness.
PART 2
At what point does a display in a shop window become an offer to sell rather than an invitation
to treat?
In this question the main point of discussion is based over Invitation to treat which is
based over presenting an offer through advertisement. Under it only offer is been presented but
no acceptance is shown upon it. This is not an legal condition for contract to be formed since in
this only offer is been presented but no acceptance is shown. Invitation to treat is been covered
within offer and acceptance that makes all an contract to attain validity over it. Further Invitation
to treat is been made over offer created. Further an contract can be legally binding over voluntary
agreement when one person makes an offer and it is been accepted. In order to justify the
concept various case laws is been explained as follows:
Pharmaceutical Society of Great Britain v Boots
In this case boots has introduced new self service system within there shops within which
customer is required to pick up goods from shelf and keep the within basket. This is to be done
till the time cash is been paid. The Pharmaceutical Society of Great Britain brought an action to
determine the legality of the system with regard to the sale of pharmaceutical products which
were required by law to be sold in the presence of a pharmacist. The court thus needed to
determine where the contract came into existence(Ibrahim, Handayani and Dzulfikar, 2020).
Further in this case court held that invitation to treat exists within the case and offer is only been
presented but not made. As per this customer is required over taking goods till the time payment
is done over the purchase made. In this shop assistant chooses weather to accept the offer or not.
The contract is therefore concluded at the till in the presence of a pharmacist. This shows that an
offer is been presented through advertisement but no acceptance is shown within it which makes
Invitation to treat occur within the case. Another case law is Fisher v Bell in this case the
requirements of offer and acceptance is been marked out within the formation of contract. Also
the case establishes that goods to be displayed in a shop together with price display is been

considered as invitation to treat by the seller and not offer. Further offer is instead made when
customer presents the item over cashier together with payment. In this case it has been marked
out the acceptance occurs at the point the cashier takes payment. Facts of the case are that a flick
knife is been displayed over the window and ticket bearing. Also in this case section 1 of the
Restriction of Offensive Weapons Act 1959 is been applied which says that an person
manufacturing, sells or hires or offers for sale or hire, or lends over giving it to any other person.
Further the section says that any knife that have blade which is opening automatically through
applying of hand pressure over button, spring or knife is been attached to handle of knife
sometimes known as flick. In this any knife that is having blade that is released from handle or
sheath there of through force of gravity upon application over centrifugal force and is been
released within locked place over means of button, spring, lever and other knife is called
“gravity knife”.
The person should be guilty of an offence and in second case subsequent offence to
imprisonment should not exceed period of six months and fine should be applied. It is important
that any such knife is been described as foregoing subsection which is prohibited. Court held in
this case that defendant ha kept flick knife displayed in his shop window with a price tag on it.
The statute makes it an criminal offence over offering such knife for sale. So the conviction was
quashed as goods on display in the shop is not an offer in technical manner. Further literal rule
was applied to prove existence of invitation to treat(Ducas and Wilner, 2017).
Lefkowitz v. Great Minneapolis Surplus Store
In this case concern is been made over distinction between offer and invitation to offer
and invitation to offer. Further the case held that a clear, definite, explicit and non – negotiable
advertisement constitutes an offer within which acceptance is made over binding contract. It is
been held that an advertisement does not clarify over terms of bargains and with fine print which
been modified as per house rules. Facts of the case says that Great Minneapolis Surplus Store
published an advertisement which says that “Saturday 9 A.M. Sharp 3 Brand New Fur Coats
Worth to $100.00. First Come First Served $1 Each”. Then on 13th April another advertisement is
been published within the newspaper which says that'' on Saturday 9 A.M 2 over Brand New
Pastel and is required over Scarfs selling for $89.50. They go out on Saturday and each cost
is$1.00 1 Black Lapin Stole Beautiful, worth $139.50 ... $1.00''. Also facts is been said that First
Come First Served. So, Mr. Lefkowitz was the first person to come on Saturday after

advertisement is been seen and said that he is ready to pay $1. The offer was refused by the store
owner and reason given was of "house rule" which was applied for women only. In this same
advertisement was published by next week and then he tried again over house rules and he would
get the coat. Court held in this case that invitation to treat exists which does done amounts to be
valid contract.
The cases above explains explains about various situations which has been dealing over
various situation which is used within invitation to treat. These case laws are landmark cases
which has helps in providing justification over various kinds of facts which leads over invitation
to treat. The conditions is based over sales of goods and sales of authentic goods which is been
barred by government. Thus the cases justifies invitation to treat.
PART 3
Explain what remedies are available to shareholders against the directors of a company
Company law are those laws which has been formed in order to make an business
organization work with more efficiency which makes justification created over making business
organization achieve proper framework regarding its work(Drucker, 2020). These laws is been
covered within Companies Act 2006 and various remedies is been provided in relation to
shareholders against directors which has been given as follows:
 Dissolution or liquidation of the entity
 If shareholders finds that grounds over claim made by members is not valid by the
directors then in this case time period can be provided for proving the claim.
 Shareholder can variance over making transaction aside upon any transaction through
entity and members or directors.
 The cancellation or amendment of a provision of the company’s constitutive documents
can be done by shareholders if found tat directors power is been misused by them.
 In this removal of director can be done by shareholders if found that any personal interest
is been fulfilled through organization.
 Shareholders can investigate over financial effects upon any matter of dispute that
impacts directors working.

 The appointment of one or more inspectors to investigate the acts complained of or of a
custodian to manage the business of the company or corporation for a term and under
conditions determined by the court. This means shareholders at times makes inspectors to
investigate over getting order form the court.
 Shareholders can used dispute resolution upon solving dispute between directors and
managers.
 Shareholder is required to make sure dividends is distributed in proper manner.
 The purchase by the company or corporation or another member or shareholder of all of
the interests or shares of the petitioning member or shareholder for their fair value as
determined by the court.
An shareholders may bring claim over personal damages over directors or manager that
has failed to exercise Duty of care and Duty of Loyalty to enshrine Companies Act 2006. The
claim of damages is made over harm that is been caused over members by mangers or directors.
Relevant case law is Foss V Harbottle this is an leading case of English precedent within
corporate law. In this any action that is been taken over wrong is been alleged to have been done
to an organization over company itself. It is known as "the proper plaintiff rule", and the several
important exceptions that have been developed are often described as "exceptions to the rule.
Amongst these is the "derivative action", which allows a minority shareholder to bring a claim
on behalf of the company. This applies in situations of "wrongdoer control" and is, in reality, the
only true exception to the rule(Ariza-Montes and et. al., 2017). The rule in Foss v Harbottle is
best seen as the starting point for minority shareholder remedies. The rule is been amended
within sections 260–263 as statutory derivative over claim. In this case court held that claim is
been dismissed when a company is wronged by directors it is only the company and two rules
were established that is "proper plaintiff rule" within which wrong done to company is been
confirmed over ratified through simple majority of members and general meeting then only court
interfere.
Ebrahimi v Westbourne Galleries Ltd
In this case House of Lords held that an company considered as septate legal entity and
the court would entertain over these applications. It is believed that an organization is similar
through an operations over making partnership within the organization known as quasi-
partnership. Under the case legitimate exception over management functions would continue

over articles which is been utilized against him in certain manner. This is based upon personal
relationship within parties as it can be inequitable to allow Mr Nazar and his son to use their
rights against Mr Ebrahimi. So, the act is been forced over him out of organization and it is just
equitable for winding it up. The organization is been wound up and Mr Ebrahimi that has been
receiving capital interests.(Abeyratne, 2020).
The discussion has provided justification upon remedies available to shareholders against
directors and managers. Further the case law explained over making justification over the
concept in more effective way.
CONCLUSION
From the above discussion it can be concluded that law for business manager is the
process by which an organization is been formed over making various process of business
organizations with there management constructed in effective manner. The file is divided into
three parts the first part deals over various kinds of business organization with its advantages and
disadvantages. In this appropriate business organization is been explained regarding Abdul and
his friends Anna-Maria. Then in second part invitation to treat covered with relevant cases
regarding it. Thirds parts covers about remedies shareholders have in relation to shareholder and
directors.

REFERENCES
Books and Journals
Abeyratne, R., 2020. Training the airport manager in a post-COVID-19 world. Journal of Airport
Management, 14(4), pp.330-338.
Ariza-Montes, A and et. al., 2017. Employee responsibility and basic human values in the
hospitality sector. International Journal of Hospitality Management, 62, pp.78-87.
Drucker, P.F., 2020. Economic realities and enterprise strategy. In Modern Japanese
organization and decision-making (pp. 228-248). University of California Press.
Ducas, E. and Wilner, A., 2017. The security and financial implications of blockchain
technologies: Regulating emerging technologies in Canada. International Journal,
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Ibrahim, N., Handayani, P.W. and Dzulfikar, M.F., 2020, October. Hotel Revenue Manager
Segmentation Based on Their Behavior and Motivation While Using Online Travel
Agent Supplier System. In 2020 International Conference on Advanced Computer
Science and Information Systems (ICACSIS) (pp. 205-210). IEEE.
Lyu, J., Li, M. and Law, R., 2019. Experiencing P2P accommodations: Anecdotes from Chinese
customers. International Journal of Hospitality Management, 77, pp.323-332.
Mabotja, L.L. and Maloka, C.M., Analysis of Owner-Manager Perception of the Challenges of
SMMEs in The Manufacturing Sector in South Africa. and Management Dynamics,
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Plump, C.M. and LaRosa, J., 2017. Using Kahoot! in the classroom to create engagement and
active learning: A game-based technology solution for eLearning novices. Management
Teaching Review, 2(2), pp.151-158.
Schwepker, C.H., 2019. Strengthening customer value development and ethical intent in the
salesforce: The influence of ethical values person–organization fit and trust in manager.
Journal of Business Ethics, 159(3), pp.913-925.
Shanahan, K.J. and Hopkins, C.D., 2019. Level of agreement between sales managers and
salespeople on the need for internal virtue ethics and a direct path from satisfaction with
manager to turnover intent. Journal of Business Ethics, 159(3), pp.837-848.
Starr, S.J., 2021. Identify and Assess Project Manager Skill Gaps to Develop and Retain Talent
on Health Care Projects (Doctoral dissertation, The College of St. Scholastica).