The objective of this report is to develop understanding of individuals in the context of legislations and regulation that can assist in managing business activities appropriately. In this regard, it is required to analyse the role and contribution of government in law making practices.
- Evaluate the basic nature of legal system within Country Pine.
- Identify the potential impact of law over the business practices of Country Pine.
- Provide an appropriate suggestion over legal solutions to business problems of Country Pine.
- Discuss recommendation based on adequate legal solutions for alternative business problems of Country Pine.
Business laws or corporation laws is an entity of laws which deals with the regulations of business, trade and commerce. It is a part of civil laws, covering the matters of private and public law. These laws regulates the formation of contract, appointment procedure, rights of employees, service and sale of goods (Pepper v Hart (1993, HL) . The origin of business laws are the result of trade practices done in historical period. Every country has their own statutes according to which they have to regulate business. In United Kingdom the business laws are implemented by the European Commission. There are certain statues which needed to be followed in the course of business such as Law of Contract, Employment Rights Act 1996, Companies Act 2006, Sale of Goods Act etc. In the given case study Business Future is an organisation which deals with the problems that are faced by start-ups in settling their business and also those who wants to expand their business. Country Pine is one of their clients, who is an emerging furniture selling organisation. They are working as a sole trader and wants to expand their business. In order to do so they have to incorporate their organisation as a limited company. They have asked the help of Business Future for solving such mater and guide them to perform their business. This report is consist of all the statutory provisions and solution to the problems of Country Pine.
P1 Sources of laws
Laws are carried out in two ways, Civil and Criminal laws. Laws which deals with business matters comes under the civil laws. Generally, there are two types of sources, Primary and Secondary source of law (Fisher v Bell (1961) . Primary source is mainly responsible for making the laws. It is comprise of constitution, treaties, already created statutes, customs and usages. Secondary laws are comprise of judicial proceedings and decision made by the courts. Also the precedents given by the judges are sometimes responsible for the creation of any legal provision.(Alix AdamsBooks)
In the United Kingdom, the European laws and the Parliament are primary sources of law. European laws are mainly responsible for all the possible creation of statutes in UK. Treaties, Directives, Regulations and decisions are included in it. As said above treaties plays an important role in forming the laws (Adler v George (1964) . These are responsible for the binding of duties between the two states. If two separate organisation from distinct state wants to do business then they are only capable for it as per the conditions mentioned in the treaties. European Union is the legal entity which acts as an executive in the government. They are responsible for the implementation of laws in the state. It was established in 1972 under the Communities Act.
Laws related to business and commerce are created by these legal bodies. For starting and expanding an organisation it is very essential to comply with the laws of business. Before that it is necessary to understand in which sector an organisation is going to operate their business. Generally, there exists two types of sector Public and Private. Public sectors is controlled by the state. The organisation incorporated in the public sectors are controlled by the state bodies. But in the Private sector it is uphold by the individuals (Smith v Hughes (1960) .
Apart from the sectors it is also to be known by the members of an organisation, what type of liability they are entering into with their partners. There are three types of partnerships, Limited, Unlimited Liability and Limited Liability Partnerships. Unlimited liability partnerships are such in which the responsibilities of paying debts are upon an individual unlike in limited and limited liability partnership. In such type of partnership the responsibilities of paying the outstanding amount are upon the partners of the organisation. (Bently, L. and Sherman, B., 2014)
If Country Pine wants to expand their business then they have to obey the principles off incorporation of a company. There are certain principles for the incorporation such as, Memorandum of Association, which provides the information about the capital and shareholders of the company. Moreover, to regulate the function of interim matters of the organisation it is essential to form an Article of Association. It is mainly comprise of the appointment of Directors, their liabilities and duties. Moreover, it also deals with the internal functioning of an organisation.
For starting a limited company it is necessary for the members of Country Pine to get it register by the Registrar of the Company under Companies Act 2006. also it is mandatory to follow the rules and regulations provided by the state in their business statutes. A limited company is a best option to expand the business, it also provide better market value of the products(Royal College of Nursing v DHSS (1981, HL) .
P2 Role of government in the law-making
Laws are made by the governing body of the state. A government is a legal body which is comprise of the legislature or parliament, the executive and the courts. Legislature are the primary stage from where the laws are generated, it is implemented by the executive. The courts act as a guardian to the constitution and rights of the citizens. In United Kingdom, House of Lords and House of Commons are the entities of a parliament. Where as the European Commission acts as an executive. (Perry, J.E., 2012)
The laws are formed by passing a bill in the parliament. There are three kinds of bill, Private, Public and Hybrid Bill. All these bills have their own characteristics. A Private bill is made to influence the interest of individuals where as a Public bill is constructed to affect the interest of the public as whole. A Hybrid bill is a mixture of Public and Private bill, according to it a public bill is made to influence the interest of individuals. A bill is a model draft of the laws which the government is going to enforce upon it people. These are the types of bill and are executed by a process which shall be followed by the executing body (Sweet v Parsley (1969, HL).
In order to make a Bill an 'Act of Parliament' it has to went through a procedure and several stages. A bill is proposed in the legislature in it First Reading, so to understand the matter on which laws are going to be initiated. In the Secondary Reading, a debate over the facts of the bill is performed to discuss it positive and negative impacts. After such debate it is then transfer to the Report committee to form a report. It is then transfer to the House of Lords again for any changes or amendments. A bill becomes an Act of Parliament after getting the consent of the Queen at the stage of Royal Assent. In this way laws are made by the governing bodies in UK.
English legal system is a important concept as it allow the society to run all their operations, transactions in legal manner. There are number of acts that are equal payment act, norms and policies in relation to minimize the illegal activities so that final outcomes can be attained in effective manner. Legal procedure must be formulated in such a way so that it inly focuses on increasing the level of society efficiently. It is very much necessary to identify the issues, problem that is prevailing the current market so that proper steps must be taken to solve it in correct way. Law have frame several sources that help in finding out all obstacles that hinders the growth and productiveness so that issues are noted down properly and than step are taken into proper manner. Hence, it has been observed that legal laws is not easy step that have to be correctly formulated and also involve analysing various element that is present and than take decisions accordingly. There are elements that include continuous changes that happens in customer's demands, denial of any task from parliament members as it keeps on fluctuating with time. The legal acts are drawn so that various issues, problems get solved and there final outcomes could achieved in proper time period. These factors are of different nature and types that have to be consider while forming many particular acts in effective and efficient manner. Therefore, it is necessary that laws must be clear and transparent in nature.
The main focus must be on developing the society so that upliftment in proper way could be done. It is very much necessary to improve the overall conditions and aspects so that their living status could increase at sustainable level . In accordance to ons of the article that is “6 key method shows that British legal system are differing from rest of the world” it has been concluded that English legitimate bodies formulate several thoughts, ideas, actions so that it concentrates on overall development of society. The major purpose is to consider all concepts, aspects that is present in the society and than take decision accordingly. The focus should be done on increasing the status and characteristic of individual entity so that ultimate aim can be accomplished for which it has been formed. For instance, Britain have built a constitution that is unwritten which is a unique thing that attracts the interest of many people towards it and leads to fulfilment of work process in prospective manner.