Introduction - Legal Frameworks Impact on Business Operations
Business laws include the body of legislation that governs the relationship, rights, the behaviour of individuals engaged with the business, and sales. Business laws give peace; legitimacy and security to businesses and help companies properly manage their business operations. The report gives an overview of the sources of law, UK's legal system and the way the UK government make the law and develops a strong legal system. In this context, the application of common law and statutory and the importance of an effective legal system for business purposes have been included. Furthermore, the importance of Company law, Employment law and Contract law in the business management procedure has also been addressed.
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Sources of law that help to develop the UK’s legal system
Effective laws are very beneficial to develop the legal system in the UK. The main legal sources can be divided into two parts that include case law and legislation. In this context, the legislation includes regulations, SIs and Statutes and the case laws involve decision makes by the court (York.ac.uk, 2023). Furthermore, the statute law is procured by the Parliament and Parliament with the help of legislation power delegates the power of making a law to government and local councils through the secondary legislation. In this regard, most of the new laws has made by making a few changes to the existing laws that the government has proposed. Furthermore, the development of effective laws helps to develop the legal system in the UK.
The UK government plays a significant role to make the lawss
The government of the UK plays a significant role to make the law and develop the UK’s legal system. In this context, the main role of the Parliament is to examine the governmental work through debating, questioning ministers, and committee work (Parliament.uk, 2023). Furthermore, the Parliament debate essential issues and makes changes to the laws to develop the UK’s legal system. The government of the UK has focused on making changes in the rules, regulations and legal system to improve the security structure in the country.
Application of common law and statutory in the justice courts and effectiveness of the legal system
The common law is declared by the judges and it is derived from precedent and custom (Iclr.co.uk, 2023). Equitable concepts including trusts normally deal with the business. The primary sources of the laws are Legislation that includes the act of statutory instruments, statutes, orders in council and so on. Statutory law includes the written body of rules that is mainly creates to address particular problems and issues. In this context, common laws are very helpful for conducting better business and it supports business innovations. The effectiveness of the legal system is one of the essential things that help the business to properly manage business operations and provide security to the business.
The impact of Company law, Employment law and Contract law upon businesses in the UK
The Company laws are very effective as they help the company to properly manages its business operations and overcome business-related issues. The “Companies Act 2006” mainly reformed company law and help the company to properly make the business (Legislation.gov.uk, 2023a). “Employment Rights Act 1996” includes the rights of the employee in different situations including unfair, dismissal, maternity leave, paternity leave, and redundancy (Legislation.gov.uk, 2023b). This act is very beneficial for the employee as it helps the employee properly work in the company. The “Contracts (Applicable Law) Act 1990” refers to the laws that are applicable to the contractual obligations for the conflict of laws purpose (Legislation.gov.uk, 2023c). All the above-discussed laws help companies in the UK to properly manage their business and provide security to overcome business-related issues and make the business sustainable. In the country, the low crime rate helps the company to overcome crime-related issues and properly manage the business. The employment-related laws help the employee to work in the organisation properly and get fair treatment. For example, Tesco the retail company follows the “Employment Rights Act 1996” and maintains equality among the employees that help the organisation to enhance its customer base and properly manage the business operations globally.
Difference between regulations, legislation, standards, and its impact on UK business
The legislation includes the sets of laws that the Parliament has passed and it is also used for the purpose of describing the act for the newly developed law. The regulations refer to the order or rules that are issued by the Government agency. Standards are used to allow the legislation to focus on the objectives of long-term policy and are used for establishing technical details. As per the opinion of Dine and Koutsias (2020), in the UK, company laws are very effective as they help companies to effectively manage business operations and achieve business purposes. In this context, the country's strong legal system helps companies properly manage their business and achieve their business objectives.
Critical evaluation of the legal system and law
The legal system includes the system of governance, constitution, and normal legislative process. As per the opinion of Goulding (2020), the UK provides an advanced, forward-looking legal framework that is accessible and clear and promotes business competitiveness. Business laws include the body of rules, agreements, national or international legislation, convention and governing that deal between the people related to commercial matters. In this context, international business laws are very effective to conduct and manage a business in the international market. The main business laws including the “Sale Of Goods Act”, “Contract Act”, and “Partnership Act” are very effective for the overall management of the business.
Conclusion
Business laws are very effective for companies to properly manage their business and achieve their business objectives. In this context, business laws, employment laws, and a strong legal system help the company to overcome any issues related to the business and properly manage the business operations. In this report, the application of common law and statutory and the importance of an effective legal system have been discussed. However, it can be concluded that an effective legal system, regulations, legislation, and laws help the company to properly conduct and manages the business.
Exploring business organization from legal perspectives
There are 4 different types of business organizations that are present in the UK and are also formed with a legal perspective. Sole trader, limited liability partnership, limited company, and partnerships are the 4 different types of business organizations present in the UK (Wellersaccountants.co.uk, 2022).
Sole trader: This is considered the easiest and simple way of carrying out a business. As mentioned by Scott and O’shea (2021), a sole trader business organization registered their business with "Her Majesty's Revenue and Customs", which is also known as HMRC and then runs the business by itself. This keeps the business entitled and keeps the income as profit as a "liable tax to pay".
Limited liability partnership: A limited liability partnership organization is the same as that one of a partner organization. However, an LLP's liability is not limited to the overall investment amount made at the beginning of the business. As mentioned by Schneiders and Shipworth (2021), an LLP is incorporated by more than 2-3 members and each member can define itself as an "individual or the company" itself.
Partnership: These business organizations involve 2 or more additional members, agreeing to the share that will be made on the loss and profits in the business. According to Garuba and Eichie (2022), partnerships are referred to as "unincorporated entities", which means the partners are self-employed.
Limited organization: Business is managed privately by a limited organization and is owned by the stakeholders but run by the directors. However, the organization has a separate legal entity that allows it to have its legal obligations and rights (Wellersaccountants.co.uk, 2022).
Management and raising funds for operations
A Sole trader runs the business by himself and carries out the business income as profit but also considered it as a "liable tax to pay". As mentioned by Mitrina (2021), a sole trader business organization has a much higher range for making profits by nonobjective savings, working assets, "retained profits", and sometimes loans from banks.
A Limited liability partnership raises the needed funds for business operations by asking out for loans from a partner organization. As mentioned by Song et al. (2020), this investment contributes totally to the advancement of the company and invests capital within the arrangement of the needed loans.
A partnership firm brings its funds by bringing much more capital afterwards and by also counting on new members.
A limited organization borrows funds from a bank from a lender that issues different kinds of legal corporate bonds. Limited organizations then need to pay the full amount back to the lender or the bank with a return of interest that is charged upon the "cost of borrowing".
Report
Introduction
The report gives an overview of the different types of business organisations and their advantages and disadvantages. The different organisations such as “sole traders”, “limited liability partnerships”, “partnership” and “Limited organization” has been discussed. Furthermore, a set of suitable recommendations has been included to overcome the legal issues.
Advantages and disadvantages of different business organizations
The “sole trader” is the easiest and simplest form of business to register. The main advantages of a "sole trader" refer to it include fewer tax responsibilities, financially rewarding, fewer fixed overheads and getting started immediately. Along with this, a sole trader's financial-related data and information is kept private therefore it shows that financial information does not be leaked publicly. However, in this case, the sales limitation issue is one of the major issues that hamper the overall performance of the business. A “limited liability partnership” mainly protects the partner's assets individually. In this context, each people are only liable for taking suitable action and the other partners do not have the right to take action. On the other hand, public disclosure is the main drawback of LLP (Varshney, 2021). A “partnership” includes two or more people agreeing to share the profit or loss of the business. In this case, the people share costs, benefits, risks, and responsibilities to properly manage and run the business. The benefits included in the partnership are easy to start the business, and access to skills, knowledge and experience related to the business. On the other hand, emotional conflicts, lack of stability and liability issues hamper the overall business. “Limited organization” refers to privately managing the business and is run by its directors and owned by its shareholders. One of the benefits included in a “Limited organization” is it gives complete control over the business and provides huge opportunities for tax planning. On the other hand, it is more expensive to set up and difficult to bring changes in the organisational structure.
Critical review on adding different business organizations
A “public limited company (PLC)” is a public company that its shareholder is responsible for the financial liabilities of the company and extends its investment. In this context, this type of business has the ability to increase the additional finance with the help of sharing capital. Along with this, PLC helps to enhance negotiation opportunities with the suppliers that help the company to improve its financial growth. For example, EDF Energy PLC supplies electricity and gas to businesses and homes in the UK (Edfenergy.com, 2023). A “private company limited by shares (LTD)” is a legal entity that is distinct and separate from its members. In this context, LTD decreases personal liability risk, lower taxation and improves personal income flexibility.
Identifying legal issues and recommendation
Employment issues and recommendation: The legal issues related to employment are discrimination issues that are faced by many employees in the organisation. The “Equality Act 2010” mainly legally protects the employee from any type of discrimination in the workplace (Gov.uk, 2023). In this case, every company is required to follow the act and maintain equality among the employee that helps to overcome discrimination issues
Legal commercial issues: The most significant legal issue that comes under commercial perspectives or aspects is the "copyright law" issue.
Recommendation: In order to protect and mitigate the issues with regard to a legal solution is that access to any prior design can be avoided. This will help in negotiating with an enhanced warrant and allow for documenting own work (Aia.org, 2023).
Legal contractual issues: "Anticipatory breach" can be the most treacherous issue while having a contract legally. This might not allow organizations in delivering services according to the agreements made.
Recommendation: This can be restricted legally by retracting the repudiating party until the "aggrieved" party has agreed to cancel it (Code.dccouncil.gov, 2023). This will help change the position and also indicate the overall repudiation to be final.
Recommendation on “alternative dispute resolution centre”
Settlement Conferences: This can become mandatory for each of the parties like sole traders and LLPs and be very beneficial in terms of financial settlements. According to the study by Kisi et al. (2020) suggests that the different parties and each of their attorneys meet the judge and a discussion takes place about their disputes. However, settlement conferences are too appropriate as they consider any type of settlement as an option. This allows the evaluator to become an expert on the subject matter and provide a non-binding negotiation as a solution to the dispute.
Neutral Evaluation: In this aspect, each of the governing parties gets a separate chance that allows them to present their case to an evaluator or a neutral person. As per the view of El-Sayegh et al. (2020), the evaluator then helps in providing different opinions about the strengths and weaknesses of both of the governing party's shreds of evidence. However, the opinion of the evaluator is "not binding" and the governing parties use that opinion as a base for negotiation on having a certain solution to the proposed case.
Evaluation of the effectiveness of legal advice, solutions, and support for dispute
Though neutral evaluation can be helpful effectiveness of those aspects are also very much important in any case. As mentioned by Illankoon et al. (2022), cases for which the implementation of neutral evaluation is implemented may become appropriate in governing solutions to the issue. Thus, neutral evaluation has much higher effectiveness as each of the cases requires special expertise and does not deal much damage to the significant issue. The usage of neutral evaluation helps in providing an opinion on both the possible strengths and different sorts of weaknesses. As the matter of fact, an unprejudiced resolution is then made for both of the governing bodies and the dispute can be solved easily.
Subsequently, settlement conferences allow for judging the decision made by the parties but also assist them with an overall evaluation. Thus, having a mandatory and needed settlement conference can be often held close to a date and bring advantage to the date the case is being set for trial. Thus settlement conferences are very much effective when there is an option and do not make self-decisions without assisting the governing parties.
Conclusion
The report concludes the discussion by assessing the advantages and disadvantages of Sole trading, Limited liability partnerships, Partnerships, and Limited organizations. However, a critical discussion has also been provided and 2 different types of business organizations are included in the study. This will then allow for determining the legal issues and recommending some legal situations. Settlement Conferences and Neutral Evaluations are the different types of solutions that can be implemented. These will allow for idealizing the various alternative dispute resolution centres that are discussed by the different governing parties.
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