UNIT 7 Business Law, Undergraduate assignment, University level assignment , Assignment solution, Plagiarism free, Cheap rate, BTEC-HND, UK
Introduction:
Law is an important issue for controlling the activity of an individual or organizations. It maintains the activity of the business organization too. Otherwise, there will be indiscipline in the world. But every business organization needs help from a law firm. As a result, Carters, LLP is providing legal service to the different parts of the UK, but now they want to expand their business at Aldgate east area (Bubb, 2014). The author has responded to the advertisement for them. But the author needs to prepare a report that includes the source of law, the role of government in making law, evaluation of the recent legal system, types of business, and advantages of them, and so on.
Activity 1
Law could be defined as some rules and regulations for the society that maintain and control the activity of social elements. Law enlist the most acceptable behavior of social beings. But the law also provides punishment or penalty to violate rules (Furmston, et., al., 2012). The violation of rules and regulation are being measured by the court of a nation. Although English law system follows three important types of law and these are:
Figure 1: Source of law
Source: (Bubb, 2014)
Legislation: It is being created by a legislature of government or responsible governmental bodies or parliament. But the legislation structure of England and wales are being divided into two structures, such as primary and secondary.
Primary legislation: Basically, primary legislation is being made at the parliament of England. It is a similar type of Scotland’s parliament and Ireland’s assembly. Some common legislation of England and other commonwealths are given below:
Public act: Public acts of the UK are being classified into two categories, such as the modern act and the old act. It is being passed by the royal confirmation of the UK. Examples of the public acts are the transport act (2000), the housing act (1963), and general act (1988).
Local and personal act: Basically, local act is being considered as a private act. It includes organizational act with a personal activities such as citizenship act, divorce act and marriage act, and so on (Bubb, 2014).
Privy Council: The word privy means private or secret. They are a very close committee of the monarch’s advisory body. It was founded on May1 1708. It includes the civil service act, the prime minister Selection act, and so on.
Secondary legislation: It is also known as delegated or subordinate legislation because this type of law is being created by the minister. Parliament (Primary legislation) has given this power to them (Furmston, et., al., 2012).
Common law: It is a very much an important source of law that has been derived from the judicial court and similar tribunals. It is being considered as case law. It is unwritten, but it helps to make decision in other cases (Bubb, 2014).
European law: The European Union is based on the rule. All the member countries of the European Union are bound to follow this law. It includes immigrants act, trade acts between member countries, and so on (Bubb, 2014).
Judicial precedent: It is a source of law where past decision helps to judge future cases. It saves the time of judges. The example of this law is Brown vs. board of education, Marbury vs. Madison, and so on.
These are the main source of law. It has been discussed above that some laws are being made by the government, some law is being made by parliament, and some laws are being delegated by the minister.
But law has passed after complete ting several stages. A bill would be passed by both House of Commons and House of Lords. A bill either passed at the House of common or House of lords without a finance bill. A finance bill was introduced by the government after passing the budget. It needs to follow six major stages to become a bill into an act. These are:
Stage 1: The first reading: At first, the title of the bill is being read, and there was no debate. They voted that it will go further or not.
Stage 2: The second reading: The basic principle of the bill is being discussed by the MPs. They also collect public attention regarding the bill by publishing news at several media.
Stage 3: Committee stage: The committee which carries member of house proportionally but maximum member comes from the government body. It helps to seek the view of the opposition party. But in the finance bill, all the member of the house is a member of the committee because of finance bill are complex.
Stage 4: Report stage: Normally, a bill that has been reviewed in the committee and added amended in the committee, then they consider it will be accepted or rejected.
Stage 5: The third reading: It is the final stage of the bill. Because it is the bill that has been passed all the stage, unlike the last stages. But at least six members of the house of commons asks to review the bill then it will be started again (Bubb, 2014).
Stage 6: Royal assent: A bill must be shown to the royal family, and they finally sign on the bill to make it as a law.
The above stage is very crucial for making law in the UK. Both House of Commons and the House of Lords are playing a vital role.
Common laws application in court: Common laws are naturally common in England. The judgment is done as per the case in this case. The house of lords of the UK and the criminal division make decision for criminal cases based on their strengths.
Statutory laws application in court: These laws are written format, and these laws are being varied from common law. Statutory laws are being passed at the house of parliament. The parliament passes a law and sends it to the local authorities to implement. The actually written structure is crucially important for statutory law.
There have been huge changes at the last fifteen years of UK law. Basically, this time has been divided into two categories,: the administration of Tony Blair and Gordon grown (2000-2010) and the administration of David Cameron (2010-2015). There were huge developments in laws:
· In 2009, they generate the Supreme Court and replace the function of the House of Lords.
· They have been created a legal appointments commission.
· They have been created ministry of justices (2007) to replace the constitutional affairs from Lord’s chancellor department.
· In 2012, they have created a colleague of policing.
· Creating the family court in 2014.
· Creating national crime agencies in 2015 and replace so many agencies.
The above changes have effectiveness on the legal system. But the evaluation of changes is given below:
Entitlement to a fair and unbiased hearing: All persons should be equal to the court. So it is the court’s responsibility to give an equal chance to give a chance before determining a person is a criminal or not. Everyone shall be entitled to be a fair and unbiased hearing.
Effective access to the legal system: The above changes have created a chance for the general people to effectively access the legal system.
The recognition of prevailing values and human basic rights: Some changes of the last 15 years in the UK law system have made prevailing values and human basic rights. It makes an individual aware of their rights.
Apart from above scenario, common law is much more important for the general people and organization. Because of it has some advantages and disadvantages that are given below:
Advantages:
Specificity: Common law is very much specific. It could be enlarged and extended. It is also clarified and useful. Sometimes the government was too broad for law. During that time, common law is very much specific. For example, murder and attempt to murder are not the same, so punishment is also differenced here.
Speed and effectiveness: Common law is faster and effective. It is also flexible than parliamentary law in anyway.
Disadvantages:
Undemocratic law: It is very much undemocratic because there are no rights to say anything against this law of citizen of the UK.
A secondary function: Basically, creating a law is the main aim of parliament. It is not the aim of a court.
It is also important for learners to know about company law, employment law, and contract law.
Company law: Organization of the UK follows the company act 2006, and they also follow the insolvency act 1986. But under the company act, an organization needs to get permission from different authorities.
1. The company needs to get registration under private and public acts.
2. The company should prepare an article of association and article of memorandum according to company act.
3. The company also needs to follow the brand registration act so that they couldn’t make any copy of other company names.
Employment act: The manager of the organization needs to follow several employment acts. These are:
1. The organization should provide a minimum £ 7.83 per hour.
2. Maximum working hours is 48.
3. The employer should equal with all employee according to equality act 2010. They can’t differentiate employee based on colour, race, and gender and so on.
4. The organization should provide 5.6 weeks per year as employee rest weeks.
5. Work council don’t need any co-determination rights.
Contract act: It is also vital for the organization and individual also. Because of it plays a vital role for the law purposes (Furmston, et., al., 2012). The organization need to follow offer and acceptance, consideration, intention of agreement and so on. Basic elements of contract are given below:
1. Offer: It means proposal. Every contract begins from offer.
2. Acceptances: Offer should be accepted by the other party but they has chance to create counter offer also.
3. Consideration: it means sacrifice or value of object. When a purchase has been occurred then buyer needs to pay to the seller a price of that product. This price is known as consideration
4. Mutual obligation: It means consent. Both the parties should have interest on contract. A party couldn’t pressure to the other party to make agreement. If one party do this then it will be considered as voidable contract (Kristy et al., 2009).
5. Capacity: Both the parties should have capacity to deal the contract. It means the party should be having need and want but also they have to demand also. It means the party should have enough consideration to deal the contract (Kristy et al., 2009).
6. Writing requirement: It is not mandatory to write the contract. Contract may be oral also.
Above analysis is very much crucial for a student or a leaner but also they need to learn more about difference between legislation, regulation and statutory.
Legislation: It is a process of making laws and government of nation debates on timely.
Regulation: It is basically a rule where the organization should be followed such as company act. Basically government and other authorities implement this regulation.
Statutory: Basically it is a concept, norm or principles that is being established by the government and used generally as an example to measure the quality of the performance.
Activity 2
Revenue earning is the main motive for organizing business activities. There are many types of business organizations which are mainly differentiated by scope, capital, size, legal procedures, and number of employees and so on. Basically there are some specific types business organizations in the business industry. Such types of business organizations are here:
Sole proprietorship: Sole proprietorship is recognized as the most popular business organization for its easy set up and maintenance. Usually there is only a single owner who is the prior person to control all the management of the business. In order to set up sole proprietorship organization, there does not need to follow so many obligations for legal process (Hayek, 2012).
Partnership: Partnership business is also widely recognized business type that is formed by some people who agree to start a business and such business needs to follow partnership act of 1932. Contractual obligation is a must to manage this type of business organization. However, this business is also free from having legal constraints like sole proprietorship business (Furmston, et., al., 2012).
Limited business: Limited business is mainly company organization that is formed and registered under the company act. This type of business organization has large capital for which large scale of production is possible. The owners are regarded as the shareholders whose liabilities are limited according to the number of shares. There are two types of limited business- private limited company and public limited company (Furmston, et., al., 2012).
Government organization: Government organization is managed and financed by the government of the country. To sever the nation and the citizens of the country, government organizations are set up according to the purpose of the government. So, there is no motive to earn revenue by any government organization. Rather, in order to control the business market properly and offer values to the consumers, government organization is set up and operated.
The formation of each business organization differs from another. To form sole proprietorship and partnership, there is less legal obligations. However, to form limited business and government organization, there are strict legal obligations to be maintained.
Business organizations are established to earn profit. However, it has to be acknowledged that no organization can be operated if the organization fails to derive required funds. The required capital is used for specific time period. The cost of collecting funds is also influential for managing funds. Here the sources of funds according to the time period are:
Short term: Short term loan is termed for less than one year. Such type of capital is taken for starting the business and the fund can be collected from friends, family members, short term financing and so on.
Mid-term: Mid-term funding spans from 1-5 years. There are several banks and financial organizations that lend mind term fund to the organizations. Such type of fund is used to operate daily functions of the organization (Furmston, et., al., 2012).
Long term: Long term fund is gathered due to operate long term facilities. Banks offer long term funds. Again, the organizations can gather long term capital by the issuance of shares and sale of bonds to the creditors (Furmston, et., al., 2012).
Issuing share: An organization can gather capital by issuing shares to the shareholders. Organizations can gather long term fund by issuing shares. To issue shares, there are some specific processes that are needed to be maintained (Hayek, 2012).
Issuing bond: In some cases, the organization does not want to lose ownership to gather capital. In such cases, organizations are seen to issue bond so that the needed capital can be obtained from the creditors. The organization has to pay interest in this case to the creditors.
To get success from the business, an organization has several things to do after raising the required capital. The fund has to be invested to the profitable sources and the manager should make right decisions for the purpose. The important thing here is to improve the management process of the organization.
Management is the entire activities to manage and control the organization by making proper plans, organizing all the elements, gathering staffs, controlling and so on.
Planning: It is the first process of management which is related to set goals that have to be acquired as per the expectation of the top authority.
Organizing: It refers to the combination of all the elements of the business so that the functions can be done according to the plans.
Staffing: It refers to the process of recruiting the right number of employees to the various departments of the organization.
Motivating: Staffs need motivating to take part in the operating of the business properly. The manager has to provide some facilities which can motivate the staffs a lot.
Leading and directing: The employees need proper leadership and direction from the manager so that the functions can be done without having any error (Furmston, et., al., 2012).
Controlling: The last process of management is controlling. It is the acknowledgement of the performance of the employees (Hayek, 2012).
The management process must be effective to get success from the business.
Each type of business organization has own characteristics which derive both advantages and disadvantages. The advantages and disadvantages of each type of business are here:
Advantages of sole proprietorship:
Ø Easy process to set up.
Ø Having scope for independency.
Disadvantages:
Ø Unlimited liability.
Ø Less scope of flexibility.
Ø Scope for easy termination.
Advantages of partnership:
Ø Easy set up process.
Ø Sharing of risks.
Disadvantages:
Ø Unlimited liabilities.
Ø Having no artificial entity.
Advantages of limited business:
Ø Limited liability.
Ø Scope for mass production.
Disadvantages:
Ø Huge capital is needed.
Ø Legal obligations.
The formation of business organizations is different for unique natures. It is easy to form a sole proprietorship business as anybody can start it by having little amount of capital. The only legal aspect is to collect the trade license. To staff partnership business, the patterns must maintain the company act and have contractual relationship. Thus it doesn’t have so much legal obligations (Hayek, 2012). To form limited business, the company act of UK must be followed and required capital has to be collected. The formation of government organization needs government permission and authorization. The purpose of government organization must be obliged with the constitution of the government.
There are several issues followed by the organizations in respect of operating activities. To solve the issues, the organizations must derive legal advice. Legal advice can be derived form the following sources:
Legal firm: There are several legal firms available from where any organization can derive legal advice. Legal firms assist in solving issues by providing legal advice against specific fees.
Legal aid commission: Legal aid commission is run by the government from where the disputed organization can gather legal advice. Such institution offers free legal advice.
Website: There are several websites that offer legal advices also. The disputed organizations have to search and find proper websites to gather effective legal advice.
Legal solution is requiring when any issue is derived between the parties. Issues can be raised among the organizations, third parties, legal authority, and customer and so on. Legal solution has to be brought in order to improve the quality of the service and to carry the fame of the organization. Customers want to be valued if any issue is derived. In that case, legal solution can meet the expectation and satisfy both the parties. Legal solution is very helpful to get success and contain effectiveness of the plans of the organization (Bubb, 2014).
Conclusion:
Law is very much important for any organization and individual to control their activity. There are several sources of laws. But all the sources are very much effective. But process of law making is different (Furmston, et., al., 2012). Government has direct influence on making law at parliament. On the other hand there are four types of business based ownership. They collect money from different sources such as short term long term and mid-term. Finally this report is very much crucial and significantly important for learners.
References:
Amato, P.A., 2015. The Affordable Care Act: Impact on business. NORTHEASTERN UNIVERSITY.
Bubb, R., 2014. Choosing the Partnership: English Business Organization Law During the Industrial Revolution. Seattle UL Rev., 38, p.337.
Bubb, R., 2014. Choosing the Partnership: English Business Organization Law During the Industrial Revolution. Seattle UL Rev., 38, p.337.
Callison, J.W., 2015. Seeking an Angle of Repose in US Business Organization Law: Fiduciary Duty Themes and Observations. U. Pitt. L. Rev., 77, p.441.
Cuniberti, G., 2013. International Market for Contracts: The Most Attractive Contract Laws, The. Nw. J. Int'l L. & Bus., 34, p.455.
Fraser, V. and Roberge, J.F., 2016. Legal Design Lawyering: Rebooting Legal Business Model with Design Thinking. Pepperdine Dispute Resolution Law Journal, 16.
Furmston, M.P., Cheshire, G.C. and Fifoot, C.H.S., 2012. Cheshire, Fifoot and Furmston's law of contract. Oxford University Press.
Habermas, J., 2015. Between facts and norms: Contributions to a discourse theory of law and democracy. John Wiley & Sons.
Hayek, F.A., 2012. Law, legislation and liberty: a new statement of the liberal principles of justice and political economy. Routledge.
No comments