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Legal Solutions to Overcome Problems of Business - Country Pine

University: UK College of Business and Computing

  • Unit No: 19
  • Level: Undergraduate/College
  • Pages: 3 / Words 678
  • Paper Type: Assignment
  • Course Code: L/408/0546
  • Downloads: 835
Question :

Present unit scenario states that proper understanding of business expansion and running existing business in smooth manner requires best legal structures and advices. To set up business understanding of English legal system and some certain subject matter is required.

  • Determine legal system basic role.
  • Evaluate influence of law upon operations of business.
  • Analyse effective legal solutions to overcome problems of business.
  • State appropriate legal solutions. 
Answer :
Organization Selected : Country Pine


Business laws are the basic statues for framing of an organisation. It is essential to abide by the rules and regulations for establishing or expanding an organisation. Business laws are consists of various statutes such as Companies law, law of contract, employment rights, etc. In the given scenario Business future is a consulting firm giving advice to start ups and to an existing organisation for their expansion. Country pine is one their client and is a sole trader who wants to expand their business. They are converting themselves into limited company and in the course of that they are bit confuse with their decision. So they have hired BF for advising them.

This report deals with the provisions of various laws and relevant cases, providing advice to their consultant. Certain questions has been answered such as the source of laws in United kingdom, impact of employment and contract laws, etc.


P1 Sources of law

Laws are made to regulate the functioning of society. Generally, laws are generated from the customs and usages of that particular territory. In the United Kingdom, laws are generated from three sources, the European law, the Parliament and the court. European Laws and the parliament are the primary source where as the courts are the secondary one. (Alix and Adams)

European laws originate in late 70s of the 20th century. It is comprise of treaties, regulations, decision and directives. Treaties are a part of international laws, which is binding upon two states regarding performing some activities. It was mainly use for trade and commerce, which helps the then states to commence their business. European Laws are the parent of all statues that has been enforced till now. It is comprise of European Union, which implements the law made by legislature. (Bagley, C.E., 2010)

For setting up a new organisation the members has to comply with the various statutes of the states, which has been implemented by EU. It was established under European Communities Act 1972 and consists of council of ministers. European parliament, commission and court of justice.

It is evident to abide by the provisions of the business laws. For starting a business it is essential to know  the sectors of it and where the members want to enter into. There exists two types of sector public and private. Here we are dealing with private sector.

In order to start a company the member should know what type of partnership they are getting into. There are generally two types of partnership, Unlimited partnership and Limited Liability Partnerships. A sole trader is an unlimited type of partnership, here the liabilities are upon an individual, which means the debt and profits are incurred by only one person. But in Limited Liability, the responsibilities are based according to the capital they have invested.

The client, CP, wants to expand their business, for now they are acting as a sole trader and for the expansion they have to register themselves as limited company. In respect of such conversion they have to abide by the procedure as mentioned in Companies Act. For starting up an organisation it is necessary to form a memorandum of association, in which the details of capitals and shareholders are mentioned and it is a mandatory document. Also for the functioning of the company it is essential to form an article of association, which is comprise of the constitution of the company and appointment of directors, their liabilities and rights etc. (Bodie, Z., Kane, A. and Marcus, A.J., 2014).

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