...INTRODUCTION It is essential for every business association to understand and have knowledge of all law and regulation of business before starting new business. If any organization does not meet the requirement or fails to fulfill the essentials of business law than, it becomes difficult for them to proceed in a successful manner (Aurther, 2013). The proper knowledge of business law would help the business to properly operate the business operations without having hindrance of ignorance. In this present report, there is discussion about the importance of business law and focus has been given on branches of businesses (Reed, 2008). Concept of Business Law In broad sense, business law is considered as a law, which regulates all the business activities, or which apply to business entities, for instance, partnership and corporations. It can be also understand as a set of rules for the business organizations whose violation is subject to various penalties or punishments (Lasprogata and Cotton, 2006). Importance of Business Law There is huge importance of business law in establishing business or to run business successfully. There is discussion about some important laws and accordance with its importance in business entity or in business organizations. Some of them are discuss below: Business structure law: It is observed that there are different laws for different businesses. In other words, Information technology based company contains different laws and regulations and banking sector...
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...step：Legal Issue The legal issue is the establishment of a company and its corporate liability in terms of debts. The legal issue seeks to determine if Samantha is entitled to collect the payment of $50,000, which she has loaned to the company. The second step：Principle of Law According to the resource a company is considered as “a separate legal entity,” (Hicks and Goo 2008, 95) and under its own name, the company has the power to own properties and to sue or be sued (Hicks and Goo 2008, 95). Based on s 114 of Corporations Act 2001 (Cth), the company needs a minimum of one director and member in order for it to be constituted; a proprietary company can have the same person as a director and as a shareholder. The single director can exercise all the powers entitled to the company, such as to loan money and issue shares, but there are exceptions, which can be executed by holding a general meeting as cited in the Act or the constitution of the proprietary company (s 198E(1), Corporations Act 2001 (Cth)). The separation of the company as a legal entity is highlighted in Macaura v Northern Assurance Co Ltd [1952] AC 629. Macaura was an owner of a timber plantation and then established a company and sold his business to the company without transferring the insurance policy. The timber was devastated by fire, and Macaura demanded the insurance company to pay the damages. However, the court cited that Macaura and the company are two separate legal entities, and with that, the timber was...
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...Restaurant/Bar Business Opening a sports bar and restaurant will take an extreme amount of work for Lou and Jose. Because they do not have much money, they are bringing in Miriam to help with the finances. All three individuals will be partners in the business and will have a partnership agreement. A Partnership is defined by the Indian Partnership Act, 1932, as ‘the relation between persons who have agreed to share profits of the business carried on by all or any of them acting for all’ (Definition, 2010). Even though all three individuals will be partners in the sports bar, only Lou and Jose will have main control. This is because Miriam is only investing money in return for a profit. All three individuals will have liability issues in the business because all three individuals have something to lose. Lou and Jose will have the most to lose because both of them are the main controllers in the business. In order for the sports bar to open they first need to obtain a liquor license and a license to sell food on the premises. They will have to meet and pass all requirements set forth from their local Health Department. They will need to have both of the licenses in clear view for all patrons to see. They will also have to go to a food handling class as well as an alcohol management class. All employees that they hire will also have to attend and pass these classes before being able to work in the sports bar. Lou and Jose will also have to hire security to protect them from...
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...Business Entities Jessica Perez BUS 311 Business Law Instructor: Janet Fiorentino 12/1/2014 As the manager of Acme Fireworks, I need to gather information to help the owner determine whether or not he should continue to be a sole proprietorship or if he should switch to another business entity. I will help him do so by explaining each entity and how they relate to his business situation. I am the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed me that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he...
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...different forms of business organizations: sole proprietorship, general partnership, limited partnership, C- Corporation, S- Corporation, and Limited Liability Company. Sole Proprietorship A sole proprietorship is a type of business entity which legally has no separate existence from its owner. Hence, the limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. The person who sets up the company has sole responsibility for the company's debts. It is a "sole" proprietorship in the sense that the owner has no partners. A sole proprietorship essentially refers to a natural person (individual) doing business in his or her own name and in which there is only one owner. ( Wikepedia 2008) * Liability- Because there is only one owner all the liability is on the sole owner. * Income Taxes – A sole proprietorship is not a corporation; it does not pay corporate taxes, but rather the person who organized the business pays personal income taxes on the profits made, making accounting much simpler. (Wikipedia 2008) * Longevity or continuity of the organization: The sole proprietorship remains in existence for as long as the owner is willing or able to stay in business. When the owner dies, the sole proprietorship no longer exists. The assets and liabilities of the business become part of the owner's estate. A sole proprietor can freely transfer a business by selling all or a portion of the assets of the business. (US Legal 2008) ...
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... Roreita Walker Law and Ethics in the Business Environment July 23 2011 Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. It does not matter if the parent had nothing to do with the biological child. The employee can still take advantage of the Family and Medical leave Act. The law interpretation of parent is as follows (7) PARENT.--The term "parent" means the biological parent of an employee or an individual who stood in loco parentis to an employee when the employee was a son or daughter. (FMLA) by the interpretation I would say it does not matter how much time the biological parent spent with the child or if he or she was actively involved, the child still has a legitimate claim for leave to take care of that parent. There has to be a clear definition of the word parent, if not it would open the door for Employers to have their own interpretation of the law. If the FMLA act was not specific in its definition of the word “parent “then employers would dismiss your claim if they felt as if that did not meet their definition of...
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...agreement was signed by Janet an employee of the company. Janet did not know she was signing a lease. It was not presented as a lease and Janet assumed it was a delivery slip. Quick Takes Video is arguing the nature of the contract because Janet did not know she was signing the contract, it was verbally expressed as a trial offer, and the product did not perform. This was the legal course for the company until Karen brought up the fact that neither she nor Hal had entered into a lease. Janet did not have the authority. This brings up the legal issue of agency. Did Janet have the authority to act as an agent and sign into a lease for the partners? Was she acting as an agent of Hal’s when she signed the lease agreement? In the text book Business Law: The Ethical, Global, and E-Commerce Environment the authors collaborate and describe the creation of an agency relationship. “An agency is created by the manifested agreement of two parties that one party (the agent) will act for the benefit of the other (the principle) under the principles direction. As the term manifested suggest, the test for an agency’s...
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...Not all corporations started as a corporate entity. Many businesses start out small with one owner. They are known as sole proprietorships, the simplest and most widespread form of business formation in the United States. Certain criteria are used to determine sole proprietorship status. A sole proprietorship: * is owned by a single individual When you are planning to do business with a sole proprietorship, bear in mind that since a single individual owns a sole proprietorship, one person makes all the decisions and does not have to contend with a legal department to approve contracts. The owner can only use personal funds, although he may have separate savings and checking accounts for the business. Also, it may be difficult for a sole proprietor to obtain loans so money may be tight. If a sole proprietor were to die, the business would probably end. * is not legally differentiated from the owner and is not usually required to register as a business A sole proprietor is not legally differentiated from the business, regardless of whether the business bears his name or a fictitious name, and does not have to meet many requirements to start a business. Since the business is not considered a legal entity, it is the owner who is sued rather than the business. * must be registered as a business if it operates under a fictitious name A sole proprietorship operating under a name other than the name of the owner is considered to be operating under a fictitious name. The kinds...
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...Assignment 2, Family Related Issues Instructor Theresa Dike Law, Ethics, and Corporate Governance – LEG500 May 1, 2011 1. Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. The way that the Family and Medical Leave Act (FMLA) is written, it does not specify whether or not a biological parent participated in the upbringing of the child or not. The definition of a parent is broad for the purpose of FMLA use. A parent is defined as a biological parent, adoptive parent, step parent, foster parent or an individual who assumed duties as your parent. An individual that assumes duties as your parent is called “loco parentis”. If an employee is trying to take leave for his or her loco parentis they may be required to provide documentation of the relationship. In this case Tony has asked to take leave to move his father from the nursing home to his apartment. According to FMLA the parent must be qualified as having a “serious illness” In my opinion moving his parent of the nursing home isn’t a qualifying event according to FMLA standards. Regardless, the answer to the question is, no it doesn’t matter if the biological parent had anything to do with the biological child for the child to take advantage of FMLA. 2. Explain whether the size of the business can have any effect on whether Tony is eligible for family leave under the...
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...There are many legal forms of businesses that can be selected when a new business is being established, or a previously established business is considering changing legal form. These legal forms of business each have innate advantages and disadvantages related to legal liability, taxes, continuity, and control. The legal forms of business include: sole proprietorship, general partnership, limited partnership, C-corporation, S-corporation, and Limited Liability Company. Other forms of business include: family limited partnership, professional partnership, professional corporation, and personal services corporation, but for the purposes of this document we will include only the most common and appropriate. We'll discuss the characteristics of each of these legal forms of business below. Sole Proprietorship: Sole Proprietorship is the most common form of business in the United States. This is most likely due to the ease with which this form of business can be established. In the United States more than 17 million companies are operated under the form of sole proprietor, this equates to approximately 73 percent of all businesses in this country. Sole Proprietorship is an unincorporated form of business which can be established simply and with very few legal formalities. Local permits and licensing are all that would be required in order to establish a sole proprietorship, unless the business intended to operate under a name other than that of its owner. A sole proprietorship can...
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...Final Paper – Acme Fireworks As the manager for Acme Fireworks, I have been asked to determine if common law or the Uniform Commercial Code (UCC) will govern the contracts entered into by Acme Fireworks. In addition, I am to analyze whether the five essential elements of a contract have been met. Acme Fireworks is currently licensed as a sole proprietorship. As such, I will examine any potential personal liability they may have if a spectator was to get injured during a firework display. Further, I will compare the different employment types available to Acme Fireworks. Lastly, I will analyze and recommend a new business entity that would fit the needs of Acme Fireworks going into the future. Governed by Common Law or UCC Common law “emphasizes the making of rules through court decisions” (Rogers, 2012). The court will base their decisions on prior cases with similar legal issues. The Uniform Commercial Code (UCC) is “a summary of traditional common law rules governing commercial transactions” (Rogers, 2012). Since the UCC governs contracts between businesses, I believe that the UCC would be the organization that would enforce the contracts between Acme Fireworks and the other large businesses. Five Essential Elements of a Contract A contract is formed when two or more parties come to a mutual agreement regarding the terms of the sale of goods, services rendered or any other legal transaction (Rogers, 2012). The first required element of the contract is that it is...
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...Myers-Nelson Law and Ethics in the Business Environment 1. Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. The type of relationship or lack thereof between a child and their biological parent has no bearing on whether an employee is eligible for FMLA. An employee can ask to use FMLA to care for a family member (whether they had nothing to do with them), for their own physical/mental health care and after the birth or adoption of a child. The Family and Medical Leave Act (FMLA) provides an entitlement of up to 12 weeks of job-protected, unpaid leave during any 12-month period to eligible, covered employees and employers must grant eligible employee this right for one or more of the following reasons, the birth and care of a newborn child, placement with the employee of a son or daughter for adoption or foster care, care for a spouse, son, daughter or parent with a serious health condition, medical leave when an employee is unable to work due to a serious health condition, qualifying exigencies arising out of the fact that the employee’s spouse, son, daughter or parent is on active duty or call to active duty status as a member of the National Guard or Reserves in support of a contingency operation. A spouse means a husband or wife as defined or recognized under the employee’s state law. A parent...
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...Act, the Negotiable Instruments Law, the Uniform Warehouse Receipts Act, the Uniform Bills of Lading Act, the Uniform Stock Transfer Act, the Uniform Trust Receipts Act, and numerous other statutes. Massachusetts thus became the second state to enact the Code, following the lead of Pennsylvania, where the Code, enacted in April 1953, took effect on July 1, 1954. In March 1958 the Code was enacted in Kentucky, effective July 1, 1960. Proposals to enact the Code will undoubtedly come before legislatures in other states in the course of the next few years, and it seems likely that several other states will join the procession at their 1959 sessions (Braucher, 1958). The Uniform Commercial Code (UCC or the Code), first published in 1952, is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America. The Uniform Commercial Code, or UCC, is a very large collection of legal rules regarding many important business, or “commercial,” activities. The UCC originally was created by two national nongovernmental legal organizations: the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI) (Steingold, 2013). As the word “Uniform” in its title suggests, a primary purpose of the UCC is to make business activities more predictable and efficient by making business laws highly consistent across all American...
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...Situation A - Family and Medical Leave Act of 1993 In this situation Employee A has taken 11 of his guaranteed 12 weeks of leave provided by the Family and Medical Leave Act of 1993 (FMLA). This leave is unpaid, however ensures that the employee’s medical coverage is maintained during the entire absence from work. “The FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage” (United States Department of Labor, 2015). To be eligible for family or medical leave, an employee must have worked for the employer for a minimum of 12 months, completed 1,250 hours of work in the last 12 months and work at a location with a minimum of 50 employees in a 75 mile radius (United States Department of Labor, 2015). Employee A has been with the company for the required time and the company has more than the required number of employees, it is never stated if he has achieved the minimum number of work hours requirement. There are a variety of reasons that a person can request leave and they include birth of a child, care for a newly adopted or fostered child, or serious health condition of an employee or immediate family member. Employee A is taking leave in part because his wife is delivering prematurely. This is covered under the FMLA since he is experiencing a family medical situation and caring for his newborn child. Employee A has only used 11 of...
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...Proprietorship A sole proprietorship is a business that is owned by one person. This person may operate the business or he/she may contract the work out to another individual. The owner makes all the decisions concerning the business regardless of who actually performs the work. The limitless and peerless accountability is one of the key characteristics of the sole proprietor. Advantages of a sole proprietorship Some of the advantages of a sole proprietorship are the simplicity and autonomy of starting and maintaining a business. Once all of the proper state and local licenses and permits have been applied for the business is now operational as the sole owner sees fit. This also leads to a flexibility that allows the owner to make decisions as he/she chooses. Another advantage is sole gain. Since there is only one owner, then there is only one person to gain from the profits. Disadvantages of a sole proprietorship Oddly enough, the disadvantages of a sole proprietorship stem from the very reason that makes it so attractive – the complete identity of the business with its owner. If the owner does not already have the personal wealth needed to start up a business, he/she may find they have limited resources. If the sole proprietor seeks funds from outside investors, then the business ceases to be a sole proprietorship. This is the reason sole proprietorships tend to be restricted to small business ventures. Another disadvantage is the business is limited to the knowledge, skills...
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