Legal Framework in Small Business Organizations -

Legal Framework in Small Business Organizations

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Law Assignment Question

Select ONE of the following Legal Issues: 

  1. Small Business and working with the Australian Consumer Law; OR
  2. Not for Profits and integration of Employment Law Policies and Practices,

and then critically evaluate the issue/s within a legal framework.

Law Assignment Solution


The small- scale businesses are the oldest of trade and significant pillar of a national economy through relentless support. The legal frameworks of the small business sector have incurred sheer differentiation base on the management process, business orientation and decision-making process of the organizations. The Australian Consumer Law is evident in the Business of small-scale organizations in Australia that enables the organization to act in adherence to the legal framework of the constitution. The Competition and Consumer Act 2010 of Australia is another context of the legal framework for the small scale organizations through procuring guidelines to lead the Business in a legitimate way. On the other hand, the legal frameworks append issues for the small scale business organizations in the process of Business. This assignment will deal with the issues in the legal framework of the businesses of the small-scale organizations along with solemn processes to counter the legal issues to procure possibility of the smooth progress of Business in a legal way. The small businesses in Australia are Xero, and Hunter Mason and these two businesses are following the legal frameworks, proceed in the Business for future development. 

Literature Review

The legal frameworks like the Australian Competition and Consumer Act 2010 (ACCC) incur rights and obligations for the small business organizations. It provides authority to the companies to make a collective bargain, and it also helps the companies to restrain themselves from deceptive or misleading activities to be legal in Business. On the other hand, this act can make a small business illegal for anti-competitive behaviours like fixing the market price and vague market sharing agreements. The ACCA can even provide safeguard to small business organizations from legal penalties. There are both advantages and disadvantages for small businesses like Xero and Hunter Mason to work in a legal framework of the Australian Consumer Law (, 2017).

The issue of consumer protection in the legal framework often causes problems for small business organizations. Section 4(a) of the ACCA reveals that any company intentionally deals in misleading perceptions to enhance Business needs to be punished under the ACL. The subsection 2 (b) of the Fair Trade Act 1974 ventilates the obligations for the small business sector to maintain transparency and honesty in the Business to avoid legal issues that even contains the provision of termination of trade license under the jurisdiction of Australian Consumer Law (Corones, 2013).  The small business companies of Australia works in compliance with the ACCC and ACL in order to lead the Business in a legal process through evading the legal issues imbued with the mismanagement of legal framework for Business. In the case between ACCC vs Australian Safeway Stores Private Limited (2003), the honourable court has preceded a justice about the misuse of market power to break the rule of fair competition in the market that is a subject of legal penalties (Nottage, 2009). The small business organizations need to adhere to the norms of Australian Corporate and Consumer Law as the level of adherence can determine the legitimacy of the Business of the Xero and Hunter Mason organizations.

On the other hand, the issue of unconscionable conduct is evident in the legal framework of the small business companies as the business organizations need to restrain from appending into a mean business policy (Richards et al. 2012). In the case between Kakavas vs Crown Melbourne Limited (2013), the supreme court of Australia stated strict verdict against the anti-competitive activities of the business organizations that can cause erosion of values in business perspectives (Corones, 2014). The legal framework also includes issues that arise hindrances for the Xero business organizations through making the business activities more strict and confined to be in coherence with the norms of ACCA. On the contrary, the legal guidelines of the Australian Competition and Consumer Act 2010 generate solemn benefits for the small scale business organizations to run Business smoothly with different relaxation in business practices to enable the organizations to enhance the financial scale of Business for enhancing competition in the market (Ramsay, 2006). The ACCA also prohibits the unfair means of Business like ventilation of fake characteristics of company ort a product that procures sheer stances for the business organization to act fairly and legally.

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