This unit states that Business Futures Ltd is operating as a consultancy firm and they are funded by the government body with main objective to give advice new start-up business or those firm who want to expand their business operations.
- Explain the nature of legal system used by Country Pine
- Determine the impact of the law on business activities of Country Pine
- Provide legal solutions to the problem faced by business
- Provide recommendation of effective legal solutions based on alternative advice.
Business laws are the main pillars of global marketing and trading. Every organisation perform their function under these laws. Also it is mandatory to abide by the rules and regulations made by the states. In United Kingdom it is associated with company laws and in addition to that there are certain statutes that regulates the working procedure of companies that falls under the constituency of European Commission. According to the given Scenario Business Future is an organisation which provides legal and business advice to their clients and Country Pine is one its beneficiary to the service they provide. Country Pine is an up growing furniture sole trader who is expanding their business and are need of legal and business advice. The main aim of this report is to provide them with suitable consultation regarding their problems by explaining the legal formalities they are going to face through the process of expansion. Also this repot deals with the extensive study of sources of laws and various statutes that regulates the business lobby in United Kingdom.
P1. Various sources of laws
Generally there are two sources of laws Primary and Secondary sources. Primary sources are such which includes the codified laws such as constitution and statues, moreover it is consists of Custom and Usage of that particular area for which laws are being created. Constitution is in itself a law. In United Kingdom, the European Laws and legislature are the primary source for the construction of laws. Secondary sources are generally comprise of the Courts, there precedents and decided cases.
European laws are the parent of all statutes that has been formed till now. It includes treaties, directives and regulations. Treaties are the most important factor that involves in the formation of law. They are in practice since the Roman Empire has been established. The main purpose of treaties are to regulate trade between the states and also various legal matters. European Union is the most significant part of the European laws. It is comprise of council of ministers, House of Lords, cabinet ministers etc. And the laws that are being created by the Union are implemented by the European Commission. ( R.A.Roberts, B.S., 2011)
Similarly, the laws related to companies and business are implemented by the Commission. And according to the Companies Act 2008 there are certain rules and regulations that needed to be followed for the incorporation of company. But before that it is necessary to know in which sector the company is going to operate. There are two sector, Public and Private. Public sectors are those which is administer by the State whereas in Private sector individual entity are administering the companies. Also a company can form by the process of partnerships. There are three types of partnerships, Limited, Unlimited and Limited Liability Partnerships. The liability in unlimited partnerships are over an individual in an unlimited unlike a limited or limited liability partnerships.
In order to form an organisation it is also necessary to get the company register by the Registrar of the company. Before that it is mandatory to from a Memorandum of Association, which provides an information about the capital and shareholders of the company. To regulate the functioning of the organisation it is mandatory to form an Article of Association. It includes the appointment of the Directors their liabilities also the duties of its employees.
In order to expand their business Country Pine has to abide by the rules and procedure for the incorporation of the company.
P2. Role of Government in the formation of laws
Government is a body of three entities, the legislature, executive and the Courts. The Legislature is where the process of making of laws are initiated. A bill is proposed in the House of Commons and then it is executed by the European Commission which acts as an Executive. The job of Courts are entirely separate and different. The Courts are the guardian of the enacted laws and also they safeguard the constitution and the citizens of the state. The enacted laws are reviews if there is any violation of rights, by the Courts. This is how a government works, but the most important thing is how laws are generated.
Legislatures are the primary source of law making. In UK a law is formed by the process of passing bill in the parliament. There are three kinds of bill, Private, Public and Hybrid. A private bill is such which influences the interest of public where as private bill is just opposite to it, it affects the interest of an individual. A hybrid bill is a mixture of both that is it is a public bill but affects the interest of an individual. (Kroes, Q.R. ed., 2010)
A bill becomes an Act by certain process. It is proposed in the parliament in its First Reading then a debate or discussion over the pros and cons of such bill takes place in its Second Reading. After passing from these stage it is presented before a committee which thinks over it existence, in the report stage. It is then transferred for the further discussion and amendment in the parliament in its Third Reading. After passing from all these stages it is then produced before the Queen for the royal Assent. A Bill becomes an ‘Act of Parliament’ after getting the consent of the Queen. This is how the laws related to business are being enforced.
P3. Impact of employment and contact laws
Contracts are the basic element of performing a business. A contract is an agreement which is enforceable by the law. It is actually the terms and conditions on which a party is going to perform their duties. In order to form a contract it is essential that it should be a valid one. There certain elements for valid contract. There must exist an offer to which acceptance is made by the other party. It necessary that acceptance is made without any inducement. There must exist an intention of forming a contract without such a contact is null and void. For every contract there must exist a consideration. A consideration is the amount for which a promise is brought. Apart from that objective of a contract must not be prohibited by the law.
Employment laws are made to void the unnecessary harassment of an employee. An employee enters into a contract of employment with the employer for the performance of the said job. It is his duty to follow the instruction given by his employer but not those which are against the provision of law. Employees are provided with certain rights such as right against discrimination, redundancy etc. under the Employment Rights Act 1996. (Macaulay, S., 2018)
Country Pine is expanding their business so they have to comply with the employment laws. Also the new appointed workers are entitles for minimum wages and sick leave under section 230 of the Employment Rights Act1996 and the judgment that came out from the case of Uber taxi (Aslam v Uber BV).
P4 Legal solutions to business problems
Country Pine is a small business entity whose main objective is to acquire maximum return on their investment by satisfying the needs of clients with their qualitative products. According to given case study company is involving in designing impressive furniture for attracting clients in a defined time frame. Along with this, Business Future Ltd. Is a consultant firm whose main objective is to promote various organization or new start-ups towards expansion process for developing economy of a nation? Therefore, by analysing the accounting facts of an enterprise consultancy firm is suggesting Country Pine is to extend their business by launching creative ideas in order to maximize their profit in a minimum duration. Moreover, they are also enforcing to convert their enterprise from sole trader to limited company by following necessary facts or figures. ( Eren and et. al., 2012) Basically, it is not easy to manage all the activities and task while conversion process because both the types of enterprises are totally distinctive from each other. Some of the major differences between sole trader and limited company are described as follows:-
Throughout the analysis it has been understood that number of problems might arises while converting sole trade organization to limited company because of number of differences such as; employees, vision, legal formalities henceforth. Thus, company needs to consider some of the necessary tools for overcoming various business issues which is discussed as underneath:-
Design employment laws and acts for creating positive relations with staff members in order to accomplish business activities in more appropriate manner.
Follow all the major rules and regulations for controlling chances of fraudulent activities.
Hire legal agents for managing business activities in correct manner as well as understand each or every legal terms and conditions.
Consult expertise and talented person for overcoming business issues by resolving conflicting situations.
Hence, company have number of corrective or legal path for resolving their various business issues in order to control maximum possibilities of mistakes. Furthermore, get succeeded in enhancing their organizational performance by satisfying clients need or requirements.
Throughput the assessment it has been understood that legal solutions are highly beneficial for company success because it deals in correct manner without doing any discrimination amongst employees. However, various useful acts and rules for protecting employees are playing crucial role in minimizing organizational issues in a given time frame. It is not easy to convert sole trader into limited because all the things get changed such as; number of employees, involvement of shareholders, sharing between profits as well as losses and so on. Therefore, company is adopting appropriate method for reducing their organizational issues by considering necessary facts or figures. Hence, major solution which is followed by Country Pine is to focus on employment and consumer’s protection acts because both of them are seen as most indispensable element for company success. For example; staff members are liable for accomplishing or handling various business activities whereas products are finally consumed by customers. It means, usage of acts related with these two members are beneficial for company success. Therefore, usage of legal solutions are very much appropriate for converting sole trader into limited organization.
P6 Recommend solutions
Alternative dispute resolution is one of the most prominent tool which is used by company for resolving their organizational contentions in order to reduce hidden issues. Basically, it helps an enterprise in overcoming various success problems in a minimum time period for maximizing the company productivity. ADR is very much beneficial or appropriate for corporate world because three of effective factors or tools are falls under this category such as; mediation, negotiation and arbitration. Thus, proper description of these tools are described as follows:-
Mediation:- As per this element one mediator is involved in this method for clearing all the hidden doubts and issues which is emerging at workplace. However, in this process company is hiring a person to act as representative on the behalf of principal for reducing contentions. In fact, both the parties are passing their messages through middle men.
Negotiation:- In this tool both the parties whomsoever are involved in a contentions are coming closer to clear their doubts and trying to involved in a healthy conversation for overcoming various business issues. Along with this, both of them are interested in resolving conflicts with their consent for further move on. In fact, this process is highly beneficial for company because safeguard the cost of hiring professional bodies or any mediator person.
Arbitration:- Professional bodies are playing very crucial in overcoming distinct issues in appropriate manner by clearing all the hidden doubts. In fact, company is using this technology by hiring the professional bodies to reduce the issues in minimum durations. Along with this, this technique is useful in multinational company because involvement of legal agents are useful because they are fully update about the necessary terms and conditions. Hence, it has been understood that arbitration is beneficial for Country Pine while involving in several large contracts in order to attain their initial set objectives and goals.
At last, ADR is seen as most appropriate tool that is used by various companies to resolve their business issues in a minimum time period because in this tool three types of methods are given. As a result company can use any of them as per situation demand or need. It means, Country Pine must use ADR for resolving their various conflicting issues which is incurred at workplace. But from all the three arbitration is much appropriate for overcoming distinct issues which might incurred at workplace.
From the above report it has been summarized that legal laws are playing very crucial role in overcoming various business problems by applying various useful norms. Their main objective is to overcome distinct organizational issues in a minimum time frame. Along with this prevent innocent people from getting misused and fraudulent activities. Therefore, above assignment is showing the relevant acts which is followed by new start-ups or Country Pine to while expanding their business across various international regions. For example; employment acts, minimum wage acts, equal remuneration for staff members and consumer protection act for clients. Along with this, role of governing bodies in designing law are also expressed in this project. Hence, it has been understood that business laws are beneficial for organizational development.