Posted at 10.31.2018
The purpose of this project is to comprehend how legal ideas apply within an actual business environment. We have developed our project using the exemplory case of "Vasicos Centre" in Romania. We've interviewed who owns the business to be able to identify main legal aspects and understand the connection with material we have studied through the class. This survey provides conclusions with a brief review of the job process and justification of the effectiveness of the project.
Vasicos Centre is one of the leading manufacturers of beech timber timber in Romania. The business was established in 1994 and since it's been motivated to broaden the business, offering more quality products, competitive prices and effective sales support.
The company is found in Romania, Craiovei Street No. 40 - 42 Pitesti - 0300, Arges and the Sawmill foresta.
The type of business entity is partnership. Lovers are mutually legitimately responsible for the amounts remarkable and tasks of the partnership and each spouse can be independently responsible for the general bills and liabilities that aren't fulfilled by this content of the collaboration.
Partners contribute into creating partnership's capital. These efforts can be in form of cash, real real estate, equipment, or other property. Contributions are the possessions of the partnership and generate its capital. According to Romanian laws, there are no maximum or lowest restrictions on the amount of capital and its form. These issues must be chosen between the lovers.
Company Legislation No. 31/1990 in Romania defines five types of business entities and collaboration ("societate n nume colectiv" (SNC)) is one of them. Based on regulations No. 26/1990 (improved for legal reasons No. 12/1998) the company was documented with the Country wide Trade Register Office, arranged by the Romanian Chamber of Commerce and Industry. According to this law, business becomes legal from the time frame of registration. The company must also get yourself a fiscal code to be remembered as a taxpayer (Embassy of Romania, n. d. ).
The main clients are the furniture factories, carpentry or joinery workshops. Until recently, the company is principally works with solid wood trading companies within a wide area of circulation worldwide. Because of broadening the business, Vasicos Center includes now many abroad marketplaces such as China, Saudi Arabia, Kuwait, Bahrain, Sultanate of Oman and United Arabian Emirates.
The customers sometimes come to their premises, however, usually the business is performed through the telephone and mail. Whenever a client makes a decision to come and visit the headquarters, all bills are covered by Vasicos Center. Which includes the transport, the hotel where the client is keeping and the food. The client is invited to visit the factory, where a agent shows him the products and the stock facilities. From then on, the client is invited to possess business conversations with the Sales Supervisor and the C. E. O. to be able to start a method of trading. Therefore, in case when clients are invited to the premises, they are believed invitees, being that they are invited by the house owner for the purpose of business dealings (commercial benefit for the business enterprise) (Wikipedia, 2010). The business owner has a responsibility to provide safe atmosphere within the premises, therefore it is important to handle reasonable check up of the house. Gleam duty to inform invitees in case of whatever can cause harm to them while they are really visiting the place. Therefore, the business owner has a high level of responsibility for the invitees. However, if the invitee was harmed in the places where he did not have an access to, it is no more the responsibility to the invitee. The person was not invited to enter into these parts of premises and, therefore, is not considered an invitee.
Sometimes clients issue complaints about the goods or shipment, nevertheless the company always tries to form things up in an amiable way and there never is a tort circumstance against the company. Your client satisfaction is on the first place for Vasicos, even if that means to make discounts for a mistake from business's part.
The company uses the following written contracts:
Sales Contract - for goods
Insurance Deals - for goods
Commission Agreements - for services
Shipping Deals - for services
All the contracts that are agreed upon require certain elements such as:
Full details about the functions (ex. name, address, subscription quantity etc. )
Object of the contract
Responsibilities of the parties
Delivery and quality provisions
Terms, approach to payment and its guarantees
kind of repayment instruments
Signatures of both parties
If the contract is not satisfied by the functions, it becomes a court docket case resolved by Romanian Court.
Vasicos Centre uses only written contracts, which is recommended by Romanian Deal Law, in order to always have a document proof the exchange of goods or work procedures. In addition, because the company has business with international clients it's important to truly have a written deal.
The company works with international agreements and most of the business is performed through Notice of Credit, available with Romanian Commercial Loan company, payable at perception or at 3 months, as seller.
First the beneficiary (Vasicos) issues the Proforma Invoice (details should be the same as on other transport documents) for your client and based on it the deal is signed between your company and your client (fax signatures are not permitted). Next thing is issuing the Commercial Invoice that should be provided in original and four copies. This invoice requires providing full information of the goods. Furthermore, the Qualification of Origin is necessary that should be presented in original and given by five to ten copies. This qualification needs to maintain the same terms as the deal, it requires to be legalized and accredited by official expert. You will find no specific conditions about the Bill of Lading, nevertheless the original copy should be authorized and then copied four times.
Vasicos Center will not lease any premises or equipment. The company is the full owner of all the assets.
Vasicos Middle has licenses for all your software applications. Many businesses have their computer software under a license, it allows those to get the work done in a faster and better way.
Vasicos Middle uses a credit card applicatoin Software being that they are required to do negotiations worldwide which is one of the broadest softwares for businesses. These are a few of the applications that are included in this specific software: commercial automation, databases, decision making software and so many more.
Of course, in cases like this who owns the software is still in charge of the main protection under the law of the permit, this is why it's important to put in place specific using privileges between the person and the dog owner. The business paid a fee to the owner of the software to be able to make use of it to their own edge even though they still have to respect some specific rules and regulations since they are only granted the to use the program and not to possess it.
The business will not engage in any bailment human relationships.
Since December 2008, National Standard bank of Romania forbidden using and issuing such negotiable instruments as checks, expenses of exchange and promissory notes in the old format and ever since advises businesses to work with Documentary Words of Credit, Documentary Incasso and Characters of Bank Promises (ProCredit Loan provider, 2009).
Vasicos Middle uses Notice of Credit at vision or payable at 60 times of 3 months, or documentary incasso with traditional clients.
Documentary Incasso is a "collection order: the exporter orders its bank to send the submitted documents to the importer's bank, for the repayment and/or acceptance of documents" (ProCredit Standard bank, 2009). In this case, Vasicos Center sends trade documents through the bank stations. These documents might or might not be signed up with by financial documents.
As it was mentioned by the business owner, this type of negotiable device is fairly simple in usage and it is cheap.
The company never really had any problems collecting payment.
Company insures the products with the Documentary Incasso. The law will not oblige the insurance, but predicated on the personal passions of the business the products are always insured.
The Romania legislations says that employees, who require hiring, must have the next inscriptions:
- job application
- personal information card
- labor book
- license of work / seniority from earlier employer
- enables, licenses, certificates needed to perform the job / profession
- medical certificate
- legal record
- notice of liquidation
In Romania, the average person labor contract is dependant on the reality of a worker working under full responsibility of the company in exchange of compensation, salary. It really is mainly an open-ended contract and the lowest age to have the ability to sign one of these deals is sixteen yrs. old. Each employee has a trial period however the duration of that period is determined by the level within the business, it may differ from five days up to half a year. The utmost working amount of time in Romania is 40 time a week with 8 time a day, maximum time is 48 hours.
The minimum wage in Romania is roughly 110 Euros but this can vary, for example within the private sector it is 124 Euros and 248 Euros for employees with a university degree (Romania National Agency for Occupation, n. d. ).
No worker action made has adversely affect business and there was no sues against the business.
The company possesses the trade name, building where in fact the headquarters can be found, the wood factory, all the machines and many cars.
In order to proceed with the project, first of all, we've interviewed the business enterprise owner. The interview was on Skype, because the locations are different. Every person in the group was present through the interview also to make it better we've divided the questions between your group customers and each person was responsible in summary the answers of these section. In the end, one person was accountable for formatting the complete project in order to ensure the text float, sentence structure and get conclusions of the ultimate project.
During the process of doing the project, all the group customers agreed that it definitely contributed in better understanding of legal concepts of the business enterprise. Furthermore, it was more interesting to have some practical experience, start to see the legal issues that people covered in course on the true example. For instance, we'd to do an additional research as how the business must be listed in Romania, how does the career process goes and see what law connect with that. Furthermore, we could see the real example of how the letter of credit can be used and how it is different in Romania. Unfortunately, the business will not get into any bailment or lease relationships; therefore, we could not apply discovered material in practice in cases like this. Nevertheless, the information that was received during the interview and additional research was very useful in the learning process.
In conclusion, we think that the project was very helpful and good structured, it covers all the problems we studied in category. We also think that as a way of improvement, this job may need some standard information about country's legal system, its specialties and distinctions from what we have covered in class as an introduction, therefore all other legal concepts that people worked through through the project will become clearer for both, the associates and the audience of the report. For this function, we have blended the information we got from the interview and our own research on certain issues where we though more information was needed.