Commercial and Corporation Law Trading Parties

Question: Discuss about theCommercial and Corporation Lawfor Trading Parties. Answer: Introduction Commercial law refers to set of laws which stipulate the rights and guide relations and conduct of people and businesses engaged in trade and other business operations that are engaged in profit generating activities. Commercial law determines the rights and responsibilities of the trading parties, governs resolution of disputes arising from trade among other factors arising from business operations (Fu, 2007). On the other hand corporate law is the study of the relationship and interaction of various parties involved in business including customers, stakeholders, shareholders, the environment, company directors, and creditors among others ( Keay, 2011). It is basically the law that governs operations. PART A An entrenchment provision is a clause that allows or prohibits certain amendments of basic laws or the constitution for the purposes of protecting the rights of parties especially the minority. In business this is particularly important to maintain good relationship between the trading parties. David may want to have such provisions included in the companys constitution for a number of reasons. Any company operating in an area must be socially responsible to both its internal and external environments. This means that its operations must be in line with the expectations of both the external and internal environments as stipulated in the companys constitution or other laws guiding business operations. David could therefore be aiming at ensuring that business operations are mindful of both their internal and external environments. In business there are always the majority and minority groups. Whenever there are such associations there is always the tendency of the majority group to dominate over the minority of group hence infringing on their rights. In Organizations, the minority might be either employees or the public because in most cases they have to live by the decisions that are made by the management. Entrenchment provisions are therefore important to prevent the management from making dictatorial decisions that can negatively affect the minority groups. David could have therefore wanted the provisions to be put in place to ensure that these groups enjoyed their full rights. The provision also promotes stability. Whenever there are unregulated business operations disputes are likely to occur. In situation where the minority groups feel oppressed through unethical business operations such as unfair wages, unfair prices for goods and services among others they are likely to result into protests and pickets which hinders normal business operations. Such protests are likely to cause instability. David could have been aiming reducing such protest which in effect would lead to stability in business operations. PART B In any business operations each person has their duties and responsibilities clearly stipulated in their job description. Basically the job description is what guides the operations of each employee (Fazio, 2007). Basically a receptionist is mostly authorized to welcome visitors, answering phone calls, appointment calendars, receiving and sorting deliveries and performing of clerical duties among others. For any purchase to be termed as legal it must be budgeted for and approved by the financial officer. Any other route followed in making orders for purchases is not allowed. The receptionist has no authority for making any orders for goods and services on behalf of the company. This is basically the role of the purchase management department. By ordering for such goods the receptionist will be indulging in responsibilities that are not within his or mandate. In my opinion I think that the company is not legally bound to pay for the goods. This opinion is based on a number of factors .First of all, all purchase orders within an organization must meet the stipulated criteria for requesting for goods and services. Basically all purchases within an organization are made by the purchases department or in other departments the role is given to the procurement department .This means that all purchase requests must be forwarded to these departments for approval and implementation. All departments are required to establish all goods and services that are needed within department and prepare a budget for the goods then fill a purchase request form which is then forwarded to the procurement and finance departments for approval. The purchases department establishes the necessity of the goods or a service requested and later approves or rejects the request based on the necessity. If the request is approved, it is then forwarded to the finance department so that the budget can be approved and for payment to be authorized. The finance department can decline or accept the request depending on their ability to pay for the goods and services. This is the approved procedure for requesting for goods and services In Michelles case however, this procedure was not followed, so the company was not bound to pay office works. References: Keay, a. (2011). The corporate objective. Cheltenham, edward elgar pub. Http://public.eblib.com/choice/publicfullrecord.aspx?p=714169. Hanrahan, p. F., ramsay, i. M., stapledon, g. P. (2016). Commercial applications of company law. Fu, j. (2007). Commercial and corporations law. Geelong, vic, deakin university. Fazio, s. (2007). The harmonization of international commercial law. Alphen aan den rijn, the netherlands, kluwer law international. Tomasic, r., bottomley, s., mcqueen, r. (2002). Corporations law in australia. Sydney, federation press. Ma?ntysaari, p. (2012). Organising the firm: theories of commercial law, corporate governance and corporate law. Dordrecht, springer. Http://public.eblib.com/choice/publicfullrecord.aspx?p=885119.