Business Law a Vital Component for the Business

Business law is the vital topic which discusses about the laws and regulations that are implied to business organisation. This law should be followed by each and every person where they are not allowed to breach any of the terms and condition. In addition, whenever people start the business organisation, they must have the knowledge regarding formation of law, importance of law and role of government which will be discussed in detail.

Sources of UK Law

UK is the island nation where different countries are included such England, Wales, Northern Ireland and Scotland. It is one of the bigger island where formation of different laws and regulations are important for maintaining peace and silence within the nation (reenleaf, 2018). There are different sources for UK which has the responsibility to form any of the law within UK and those sources are:

Act of Parliament

This is the important law which discusses about the laws and regulations which are being formed within the Parliament House. Formation of this source of law is quite length as bill is needed to be passed from different stages but once the Act has been passed no one has the right to raise question and breach the law. Ask for assignment help from our experts!

Case Laws

The formation of law which has been done through the process of cases and judgement given within the court is case law (Boldt, Kassis. and Smith, 2017). This are also equally important and must be followed with immediate effect and no one has the right to breach it. If person or organisation fails to do so then penalty can be imposed.

European Union Law

This form of law is formed at a greater platform which imposed upon different nation within Europe. It is mandatory that once they made the recommendation about any of the law, they are to be followed by all of the people or organisation which depends upon the nature and importance of law.

These are some of the most crucial sources in UK which has a great importance as it helps to maintain dignity of the nation.

Role of Government in Law making process

It has been found since couple of decade that standard formate is being followed within UK by their government for passing any of the law for its effective result. The formation of law always starts with the selection of bill which is to be entertained within the Parliament house. The MPs has the responsibility to draft the bill for further process.

First Reading: The stage in which appropriate name of the bill is to be given by the members.

Second Reading: Here, member has the responsibility to check the point and decided that how important the bill can be if it will be passed from every single stage and according to that they has to decided whether bill can be discussed further or not.

Committee Stage: The member of committee stage has the responsibility to evaluate every single points mentioned within the bill for further improvement. Here, member will points out the weak point which will be further discussed in other stage for amendment.

Report Stage: Talking about this respective stage, member will amend all of the points where representative of committee stage feels about the loop holes in the bill.

Third Reading: Here, it is crucial voting is to be done by the members for effective result. It will be necessary that all of the member will have the responsibility to check whether members have agreed or not with the help of voting.

House of Lords: This is the stage where it will be important to understand that each and every work will be review again by the member of house of lords for ensuring that acts has been formed in a systematic manner and that can be helpful too.

Royal Assent: In this respective stage, Queen has to give her final approval on the bill.

How it will be implied in justice court

It is required to understand that how any of the law will be applicable within the justice court because it is one of the court which can allow to attain any of the work in best possible manner (Lasprogata. and Foster, 2016). In case of justice court, whenever any of the case will occur where decision can be declared with the help of legislation then in that respective situation justice court will have to overview the law and according to that they will have to declare their decision. In case of common law/ case law, it is said that judges of justice have commence new law and according to that they will have to declare the remedies of the case. Need Assignment Examples?Talk to our Experts!

Critically evaluate the effectiveness of UK law in context of recent changes and development.

In current situation, there have been number of laws and regulation which are being changed  on daily basis and it is necessary that all of the laws must be followed. There are some of the changes which are effective and even some of then a there which create issues as well (Amariles, Bassilana. and Winkler, 2018). The laws do not changes which allows to take and prepare long term policies. There are negative situation as well as various laws requires amendment but that is not being done due to which people gets the opportunity to take those decision which create unnecessary problem for the nation. In short, UK law has a positive as well as negative outcome where government is required to focus on some of the important changes.

Long term planning: Any of the business requires long term planning for the effective result and that is only possible if amendments do not occur within the law.

Laws are not effective: There are some of the laws and regulations which are not helping UK for effective result. If amendments can be introduced in those laws then positive result can be obtained.

Different types organisation and its way of formation. Also, way of management and funding.

Any of the organisation should be formed according to the law and regulation. It is necessary to understand that if any of the person fails to perform as per the requirement of law then legal charges can be imposed upon the organisation. There are mainly two types of organisation and they are unincorporated organisation and incorporated organisation.

Unincorporated organisation: The business organisation which are do not have any of the legal rights and easy to perform is known as unincorporated organisation. This types of business perform business activity at a smaller level. Some of the types of organisation in it are:

• Sole Proprietorship: This form of business are small and there is no specific standard to perform the business activity in it. It is necessary to understand that whenever any of the sole proprietorship is commenced, all of the activity should be perform accordingly. To commence the business, National Insurance and HMRC should be obtained which will allow to start the business activity (Boldt, Kassis. and Smith, 2017.). Further, it is said that the management of the firm is needed to be done by investor themselves. In order to manage the fund, credit card, personal investment can be the best sources for sole proprietorship.

• Partnership: The association in which more then one people are together with a common objective of accomplishing the goal is known as partnership. It is said that partnership firm requires less capital where limited criteria are to be followed. Whenever any of the partnership firm if formed, firstly it required the deed where rights and responsibilities are being allocated. Then, it is necessary to have registration with HMRC.

Incorporated Organisation: This form of organisation are formed with all of the legal rights and regulation so that activity can be performed at a greater level. It is said that in any of the situation breach of terms and conditions are not allowed in it. Here, chances of errors are very rear and if that happens then legal actions can be taken.

• Private Company limited by share: This are the organisation in which limited number of shareholders joins together to perform the business activity in a systematic manner. It is necessary in it that work should be performed as per the guidelines of Companies Act, 2006. To start this types of organisation, firstly name is required to be decide along with address. Memorandum of Association and Article of Association is needed by fulfilling all of the criteria such as deciding the number of members in the company. The responsibility to manage work is in the hands of manager, shareholders and many more. Finally, it has multiple option for funding such as there is the option to use bank loans. Credit card, peer to peer lending and other options are also available in it.

• Public Limited Company: This is the organisation, which is required to understand that they must be able to work as per the instruction mentioned under Companies Act 2006. The main purpose to start this form of organisation is on the basis of public investment as it is easy to raise fund in it and even number of benefits are being given it. The process of formation of this types of organisation is very lengthy as selection of name is very important in it which takes lots of time. Then, address is also needed in it. Then, selection of first director and first shareholder will be done who will have the responsibility to work as per the requirement to setup the organisation (Norris, 2016). Then, they have the task to submit all of the necessary documents in Companies House through which goals can be accomplished. In order to manage all of the task, it will be Board of Directors, KPI and shareholders who will have the responsibility. Also, for the purpose of fund, Government institution, bank loans, issue of share in market.

Advantages and disadvantages of  various organisation

Sole proprietorship: One of the major advantage of these types of organisations is 'sole authority'. This means that individual doing a business has the full hold over it and also upon profit generated out of organisation. Disadvantage of these type of business is 'difficulty in expansion'. As the resources available are less and management is done by an individual running the business it becomes difficult to expand itself further.

Partnership:  Advantage of partnership is 'cost savings' in these organisations the investment of capital is shared by the partners which increases opportunity of savings. Disadvantages of these organisations is 'lack of stability' this can be understood as any kind of issue can take place within the partners which may result into dissolution of partnership also (Allen, 2017).

Private Limited Company:Advantage of this type of company is 'separate legal entity' which means that the company has separate existence as a person. Disadvantage of it is 'division of ownership' this means there is no sole owner they are divide as directors and shareholders.

Public Limited Company: Advantage of this organisation is 'more capital' which means shares are sold to public that results into huge investment and acts as a valuable source. Disadvantage is that 'more regulation' which means there are more rules and regulation that is needed to be followed that increases rigidity.Get Business Essay Help from our Experts!

Explain legislation,standard and regulation with context of example

Legislation:These are those rules that are formed for the benefit of the smooth running of business by the government. They are mandatory to be followed by the organisations in order to establish themselves in a market of country like UK.

Regulation:They are those set of rules which are mandatory to be followed by an organisation and are formed to make the work performed within the radius of legal framework. T 

Standards: It is that set of steps which are formed by any government or private organisation to enhance there working and see that all the regulation are being followed without  disturbing the legislation. If not so legal action can be taken against them.

It can be understood by an example if an organisation is not maintaining quality of employees and various things are faced by other employee. In this senior legal action can be taken against organisation (Fenwick, 2016).

Define company, employment and contract law and it impact over organisation

Company law:They are law that are formed under the companies act and talks about various aspects to be covered which helps in forming of a company. These laws were introduce to create an ease in the process of formation of company (enwick, 2016.). Law of this kind protects an organisation an gives it an separate identity. Impact of these laws is going to provide smooth functions of a company and also save company from falling into any kind of legal trouble in future. 

Employment Law:These are those set of rules which are related to the employees  and employer of an organisation. This is like contract that is formed between employer and employee. This includes all the things that are required to be kept in mind by the employer  towards employee and employee towards an employer . Impact of this law over organisation is that it helps in taking care of the rights and duties of employee by maintaining safety within the company. It helps in achieving quality of employees as rules and regulation for this is explained under this law. Due to this company is going t produce more standard work. 

Contract Law: It is those laws in which procedure related to formation of contract is given. It also explains about the various elements that are mandatory for the basic structure of an contract to be formed. These laws are very helpful because they help in getting a legal proof of the transaction done for transfer  of any property and also for formation of an organisation. It helps the organisation in keeping a proof of any legal agreement with a company (Gaitán, Herrera-Echeverri. and Pablo, 2018).    

a) In this problem Maxwell is an art dealer and is selling a rare painting by Duvell to Angelica for £500. 10% of the payment has been done by Angelica and the rest is to made after the end of exhibition show in Birmingham. Angelica discovered that Maxwell has negotiated to sell the painting to another client for £900. Process of ADR to be followed in it is arbitration. This process is one of the most commonly used legal alternative. In this process an person known as arbitrator is there to solve a dispute and he has to listen to both the parties in order to pass a judgement. In this problem this process is going to apply as dispute has arisen between the  parties because of the negotiation don by Maxwell with another person. The arbitrator is going to hear both Maxwell and Angelica. After this only he should give a judgement which is going to solve the dispute.

b) In this problem Nicholas Jakob an married electrician is living with two adult children and is working in Newcastle. In Regents Vision he is working for three years because of restructuring and closer of the branch in Newcastle. A job is offered to him in London but he refused to go there and because of this he lost his job (Greenleaf, 2018). In this case the main outcome is that  Nicholas is acting rigid by not moving to London. This can be solved through mediation. So , the process of ADR to be applied is mediation. In the process of mediation a mediator is going to listen to both the parties and make them agree to a point that is in favour of both. In this problem  the mediator is going to talk to both the parties to understand the situation and the is going to arrange a meeting for both the parties to come to a conclusion. The Mediator should try and convince the company to allow Nichol to work from Newcastle and give him the clients  in  Newcastle. Also, some according to the employment law, it can be understood that it will be important for Regent Vision to provide some sort organisation which can be operated even living within the Newcastle. This can be continued till the date Jacob finds the new job for him.

c) In the problem Johnson has been working for a construction company for last 6 months and recently he fell off from stairs which were on 3^rd floor as the railing is not properly fixed. As a result of this his back and knee got injured and has to bee out from job for 4 weeks and is now demanding for compensation. Regarding this the company replied the a notice   is there stating ' Be aware of the railings as they are not permanently fixed. Do not lean on it '.  In return to this Johnson said that he did not saw the sing (Lasprogata. and Foster, 2016). The process of ADR to be applied in this situation is mediation. This includes a mediator who talks to both the parties to make  them  meet with each other in order to discuss about the dispute and come to an appropriate conclusion for it. Mediator is going to play an important role in this dispute as he is going to make Johnson and the owner of company talk with each other and come to an reasonable point over which both of them is going to agree. If through mediation no solution has been found then companies owner can be held liable for not following rules of safety towards employee and for breach duty to take care can also be applied because it is his duty to take care of infrastructure of office and should have got the rallying repaired. So, he can be held liable to give compensation also.

Conclusion

From the above file the concept of laws related to business and its setup has been discussed in which formation, management and the funding of an organisation is explained. Advantages and disadvantages have told also in relation to the different organisations and basics of each organisation has also been explained. Laws which deals with company has been explained with its impact over an company or organisation. Employment laws basic definition and idea has been told. The effect of it over organisation is also described. Contract law has also been described with relation to organisation. The idea of ADR is also explained regarding its applicability in different situations.

Also Read- New business venture a Crucial Aspect of Business

UPTO50%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit