Ilm Legal Aspects
Legal Section
The business will operate as a partnership because the number of people setting up the business will not exceed the permitted twenty. When operating as a partnership it is the partners' responsibility to inform the general public as to who the partners (joint proprietors) are within the business unit. The main advantage that applies to ILM Trading is that a partnership ensures that there is greater scope for raising finance. Another advantage that arises out of a partnership as regards finance is that if the business was to become insolvent then the partners would become jointly liable for any debts incurred. Debts would not fall on just one individual, as they would in the case of a sole trader. When setting up a partnership …show more content…
This includes such information as the address of the organisation, the division of profits between the respective partners, the identity of the individual partners, the minimum hours per week that each partner is expected to work and the division of debts between the partners. There are many other legal aspects that must be taken into account in the setting up of ILM Trading. These include such legislation as the Sales of Goods Act 1979, the Supply of Goods and Services Act 1982, the Data Protection Act and different types of legislation dealing with advertising and copyright.
Sales of Goods Act 1979
This legislation would apply to ILM Trading because as the name suggests this operation deals with the purchasing and selling of goods. The Sales of Goods Act 1979 stipulates that the goods in question must belong to the seller, correspond with the description given, be of satisfactory quality and be fit for their purpose. Also the customer is given a number of rights within this legal framework. For example, if the product is not of a satisfactory quality or the goods have been misrepresented then the customer is entitled to a full refund or may be able to ask for the product to be repaired or replaced.
Supply of Goods and Services Act …show more content…
Also the partners must complete a tax self- assessment form for the Inland Revenue. Each partner is also obliged to pay Class 2 and Class 4 National Insurance Contributions (NICs). As regards Pay as You Earn (PAYE) and National Insurance deductions, if the company pays over £1500 to the Inland Revenue then the partnership must make monthly contributions, if the partnership does not pay over £1500 then quarterly payments are
The business will operate as a partnership because the number of people setting up the business will not exceed the permitted twenty. When operating as a partnership it is the partners' responsibility to inform the general public as to who the partners (joint proprietors) are within the business unit. The main advantage that applies to ILM Trading is that a partnership ensures that there is greater scope for raising finance. Another advantage that arises out of a partnership as regards finance is that if the business was to become insolvent then the partners would become jointly liable for any debts incurred. Debts would not fall on just one individual, as they would in the case of a sole trader. When setting up a partnership …show more content…
This includes such information as the address of the organisation, the division of profits between the respective partners, the identity of the individual partners, the minimum hours per week that each partner is expected to work and the division of debts between the partners. There are many other legal aspects that must be taken into account in the setting up of ILM Trading. These include such legislation as the Sales of Goods Act 1979, the Supply of Goods and Services Act 1982, the Data Protection Act and different types of legislation dealing with advertising and copyright.
Sales of Goods Act 1979
This legislation would apply to ILM Trading because as the name suggests this operation deals with the purchasing and selling of goods. The Sales of Goods Act 1979 stipulates that the goods in question must belong to the seller, correspond with the description given, be of satisfactory quality and be fit for their purpose. Also the customer is given a number of rights within this legal framework. For example, if the product is not of a satisfactory quality or the goods have been misrepresented then the customer is entitled to a full refund or may be able to ask for the product to be repaired or replaced.
Supply of Goods and Services Act …show more content…
Also the partners must complete a tax self- assessment form for the Inland Revenue. Each partner is also obliged to pay Class 2 and Class 4 National Insurance Contributions (NICs). As regards Pay as You Earn (PAYE) and National Insurance deductions, if the company pays over £1500 to the Inland Revenue then the partnership must make monthly contributions, if the partnership does not pay over £1500 then quarterly payments are