The objective of this report is to evaluate the requirement of legislations and regulations in a business context. These are required things which requires to take in consideration in order to run a business smoothly.
- Explain the basic role of legal system in a business.
- Identify the potential impact of law over business activities.
- Determines effective legal solutions of different business problems.
- Determine effective legal solutions which are based on alternative legal advice.
Laws dispenses a persistent way to perform business. Every region has there regulations of business. In United Kingdom English law of business is nebula of all business statutes. Trade and business are generally executed by various laws such as companies laws, corporation laws, consumer and sales statutes and many more commercial laws. In UK European union is the body in which organisation performs their business. It is very tough but mandatory to abide by these laws. Moreover, it is compulsive for organisation which is getting incorporated under Companies Act. In this report according to a given case study Business Future provides advice to such organisations who are new in the sector of trade and commerce, also who wants to inflate their business in the market. Country Pine is on their client and is planning to expand their business. This report is an overview of how laws are formed and implemented in the state. Also it deals with the suggestion provided to Country Pine regarding the expansion, what legalities they have to face and what are its best solution to overcome such problems. Moreover, it is comprise of various methods used to resolve a dispute in the course of business.
P1 Sources of Laws
Laws are constructed to make society better so it should be according to customs and practices of such region. These customs are generally treated as primary source of law. There are two types of sources one of them is primary and another one is secondary. A primary source includes customs, constitution, international conventions and treaties. The cluster of all these are mainly responsible for the construction of laws. Secondary sources includes the judgements and precedents by the courts. These courts were part of presidencies and King's Court. (Pepper v Hart (1993, HL)
In United Kingdom, the primary source of laws are the European laws and it is administered by the parliament or legislature. The European Laws are applicable in European Union which is a group of 28 states. Laws related to business are enacted and implemented by European Commission. It was formed under Communities Act 1972. EC is accountable for conducting business in these 28 states. Secondary sources are consist of courts decision and judge's precedents.
Business in EU is regulated by EC. It is an economic and policy making body of EU. The European Union is comprise of treaties directives and regulations. Treaties are the main source of building laws related to business.(Fisher v Bell (1961) It is a historical practice done by various empire to encourage trade. Regulations and directives are such statutes which has been recognised by the law making body. For starting an organisation and expanding an already existing one it is essential to abide by such laws. Moreover one should know in which sector they are going to perform their business. There are two sectors, private and public. In private sector business is conducted by individuals and they have their control over the corporation. In a public sector, ventures are hold by the state's governing body.(Kinicki and Kreitner, 2012)
Apart from various sectors it also accountable to have an idea of what type of liability shall have upon the members of the organisation. Eventually, there are two types of liability unlimited and limited liability. Unlimited liability is such in which the responsibility of paying debts are upon a single person, also profits are vested in that person only. But in limited liability all these responsibilities and profit are divided into the members of firm according to the capital they have invested or the type of share they posses.
In the give case study, Country Pine is experiencing increased work force and demand of their furniture. To mange such situation they are expanding their venture. For that they have to register themselves by the Registrar of the Companies under Companies Act 2006. Before registration it is essential to comply with the procedures as per company law. A memorandum of association should be made which is comprise of information regarding capital and shareholders of the company. Also, in order to mange the functioning of organisation an article of association comprising the manner in which directors are being appointed and also it constitute liabilities of employees and members.(Foss and Knudsen, 2013)
So Country Pine has to follow all these legal formalities in order to expand their business. If they fail to perform such legal obligations then they are not entitled for doing business in EU.
P2 Government Role in law-making
Laws are created by a process of enactment which includes all governing bodies, the legislature, executive and the judiciary. In United Kingdom, laws are created by the parliament and executed European Commission. Judiciary plays an important role to apply such laws in the state. Laws are formed by a method in which a Bill is made. (Adler v George (1964) A Model Draft Bill is introduced which inscribe the annexes , schedule and proviso of any change.
A Bill is of three types, private, public and hybrid. A private bill is formed to change or introduce new laws which can influence the interest or rights of an individual where as in a public bill provisions affects the interest of all. Hybrid bill is an amalgam of private and public . It is a public bill which influences the rights and interest of individuals. For the formation of law it is mandatory to pass this bill from various stages in the parliament. (Grundfest, 2010) (Johnson, 2013)
A bill is proposed in its First Reading, at this stage the bill is read and tried to be understand by the members of houses. In its Second Reading a debate or discussion over the positive and negative impacts of the merits is conducted. After such readings a report has been made in its Report stage. It is then again transfer in the legislation to make any changes or amendment. The bill is then presented before the Queen for Royal Assent. A bill becomes an 'Act of Parliament' after getting consent of the Queen. This is how laws are created by the governing bodies of UK. (Eren and et. al., 2012)
P3 Impact of employment laws and contract laws
Contracts are legal documents and is also known as registered promise to perform an act. It is very much used in the business for getting into market and trade. A contract is that agreement that can be enforced by the courts. In United Kingdom, it is controlled by the English Law of Contracts. According to it there are certain principle which makes a contract valid. A contract is valid in which an offer is made by a party. Such offer can be made publicly or to a specific person.