Business Law and Regulation

This assignment delves into the world of business law and regulations, covering essential topics such as company law, consumer rights, and international law. It includes a comprehensive review of relevant sources, including academic articles, books, and online resources. The study aims to understand how laws affect businesses and provides insights into dispute resolution mechanisms, including arbitration and alternative dispute resolution (ADR).

Business Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO 1 Nature and source of legal system.....................................................................................1
TASK 2............................................................................................................................................3
LO2 Potential impact of law on business....................................................................................3
TASK 3............................................................................................................................................5
LO 3 Formation of different types of business organisation.......................................................5
TASK 4............................................................................................................................................6
LO4 Recommending appropriate legal solutions to resolve areas of dispute.............................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business law implies for thee legal framework which assists in dealing aspects related to
company formation and other commercial aspects. When company comes into existence and
starting its working procedure then such law is applied. There are several laws pertaining to
business which they have to follow for maintaining the government norms. Business law are
implemented to manage the rights and duties of shareholders, creditors and employees of the
company. Present report is based on KANGO (K) which was established in 2016 by Alex and
jay. It is located in London near suburb of Ealing which is a highly populated area and also the
demand for delivering food services is also high.
Report will include the nature and scope of legal systems which the K has to teach their
operational staff. It also includes the potential impact of law on business activities and also
discuss the reviews regarding employed and self-employed staff. Further it includes the
formation of different types of company and which K choose to convert their firm into. Lastly it
includes different appropriate approaches to resolve legal areas of dispute.
TASK 1
LO 1 Nature and source of legal system
English Legal System:
English Law is different from the other law as they follow the European law and constitution.
It mainly includes the civil law and criminal law. UK established European legislation and
incorporated the European courts for justice and legality. Mostly acts are passed by the
parliament and in the statue and Queen is the head of the state and each bill is signed by the
queen and that appear to be the final law decision (Gelter, 2016). The legal system mainly
includes the ~ Civil Law: This law relates to fraud, thefts and misconduct committed in the society
which results to fine or imprisonment for 6-12 months. This is the normal crime
committed by the accused and which didn't harm the society more. In case of matters
related to company it results to breach in contract or made fraud cash transaction, or
negligence or matters related to domestic violence cases.
 Criminal law: This related to violence committed in society in terms of murder or
sexually abuse or any such harm which directly hurt the people (Olsen, 2015). This result
to imprisonment for a term exceeding 2 years or lifetime death imprisonment. Criminal
1

law is usually strict as no bail facility is easily granted to the accused without having
strong judgement for their bail decision.
Sources Of Law - K teaches various laws to their staff to behave ethically in the work
premises. It includes ~ Custom: From the ancient times this is the major source of law. It depends upon the
rights of people, their behaviour and habits which engaged in customs (Bayern and et.al.,
2017). As principles of laws are derived from the valid customs and that's the reason,
rights of kings and implementation of rules for valid changes are effective in the role of
customs. Common Law: The judgement in common law is made by the judges sitting in the court
having the bench set by the Queens decision and they have to follow the judgement
(Green, 2018). The procedure of these laws is that decision made by the superior court is
bound on the subordinate court and they have to follow the rules and orders written in the
court decision. European Law: It is the source of UK law in 1973 as a European community. This law
operated within the member of the European union and European committee. It considers
all types of matters relating to social, economic and political factors (Kraakman, 2017).
Under this law if any conflict arises in dispute case, the cases are refereed to the court of
European law for judgement made by lawyers considering the European Court. Act of parliament: They have the rights to create new law or amend the old laws to
improve their decision making authority. This changes help the people to adopts the
changes and take the laws seriously. Act of parliament are also known as statue law also
mentioned in the legislation.
Stages for bill information in Parliament:
To propose a new law various formalities are required firstly to prepare a valid law, bill is
passed in both the houses of parliament (Connor and et.al., 2018). To receive royal consent from
the queen regarding the bill approval before it enacted to the act of parliament. After the consent
from both the houses either the house of lord or house of common law it introduced in the
parliament as the First reading. In that bill it is specifically mentioned about which bill is to
proposed and which bill need to amended more. After the bill is finalised in first reading, it
passed on to the second reading. In this it is considered to be the principles of the bills and it is
2

selected by electing through voting in the houses of members. They decide whether this bill
bring changes in the society or not (Riefa and Willett, 2018). After finalising the second Reading
this bill is passed on to the house committee for deeply examined the bill and verify its effects.
At this stage amendments are made in the bill after verifying the effects. After amendment, this
bill is referred to the report and debate stage when debate is committed regarding the bill passed
and various output arise from that debate. At last after all the approvals are done at every stage,
bill is proceeded to Monarch, where the Queen formally approves the bill and this law becomes
existence in the law of parliament.
TASK 2
LO2 Potential impact of law on business
The potential impact that the employees and K company suffers due to violation of law is
that to establish a business various norms and polices are designed and each employees who are
engaged with that business have to follow the rules which K impose while working during
business hours (Riefa and Willett, 2018). They are bound to follow the employment law and
Contract law (How Does the law affect the business, 2019) K imposes certain rules on their
couriers services which they are bound to agree it. While delivering the meal to their customers
they have to wear the uniform while is designed by K company and also the contract stays that
they have to carry the code of practice with them while delivering the meal. This is the contract
Law as company makes contract to their employees whether they are self-employed or employer
of the company. They all are under the terms and condition of Law of contract. As it helps them
to identify if an employee get harmed during the working hours, K is liable to pay the
compensation for the loss incurred and this will only be liable if they follow the company norms.
Under employment contract Act, they have to notify before 48 hours for taking a leave
and not available at the working (Hodges and et.al., 2016). This will not reflect the company
delivery service, they can appoint new person to hold that post for certain day. This help both to
continue their services smoothly and no loss incurred.
According to Pimlico Plumber V Smith Case: In this case Mr. Smith is working as post
of plumber in Pimlico Plumber from August 2005. In January 2011, Mr. Smith suffer from
serious heart attach which affects his life and he became incapable to perform his duty
(Creutzfeldt, 2016). Mr. Smith request the owner of the company to reduce the work timing so
3

that he can continue his job and also take some rest to overcome from the issue. Pimlico
Company fired Mr. Smith on grounds of not performing the duty. After such dismissal Mr. Smith
file complain on grounds of unfair treatment committed by the company under the Employment
Right and Equality Act. The court gives the decision on the bases of employment Act and also
verify all the facts which are presented before the court on ground of rules of Lord and this also
verifies that he carries an identity card of the company and also work according to the company
norms, but company has some polices towards their employee and they are bound to follow it.
Employment status checklist
Factors Self Employed Employee
Services Owner of their own services. Can work
under some person or even can hire some
person for the work committed
(Bainbridge, 2017).
Is bound by the company and are
restricted to work with other if the
employment contract exit.
Equipment’s They are liable to bring their own
equipment’s, machinery and tools.
It's the duty of the company to
provide machinery and equipment to
employee.
Employments
benefits and
scheme
They are not liable for any benefits under
the Employment benefits Act.
Eligible to get all the benefits and
rights to enjoy the benefit provided
in the company such as sports club,
free meal, parking (Nazmetdinov,
2017).
Holiday
benefits
They have no holiday benefits, as their
earning is based on job to job dealing.
Eligible for all the leaves such as
casual leave, paid leave and sick
leave.
Liability They are not liable to anyone as they
follow their own terms and conditions.
They work according to the
company norms and also fraud
committed in company internal
matters result to breach in their
work.
4

TASK 3
LO 3 Formation of different types of business organisation
There are various types of organisation which K company can engaged into: Sole Proprietorship: This type of organisation is easy to formulate as it has single owner.
It is the cost effective method and saves huge time and interest. To formulate the sole
proprietor, person didn't have to display the name in the newspaper they can easily
incorporate the business by taking permission (Types of Business organisation, 2018).
There is no security for the creditors and laws are also not imposed to anyone without any
consent. The profits of the company are single handed and no one is liable to claim the
share in profit. Partnership: It consists of two or more person to form a common company in the form of
partnership and they are bound to follow the rules made in the partnership deed. The
profits and losses are equally divided in the partnership and also the partnership ends with
the death of one partner (Bocken and et.al., 2016). The chances of risk factor is reduced
in the partnership firms as all members have to bear the equal losses incurred in the
partnership company.
 Limited Liability Company: A company limited under the companies Act, 2006 are
limited to its members. There profits and losses sharing ratio flows from company to
members. They may be elected to be as part of sole proprietorship, partnership and
incorporation of the company (Engelken and et.al., 2016). They are limited to the extent
either by share or by guarantee. They can issue their own memorandum and article of
association after the incorporation stage.
K company prefer to register their business into the limited Liability company and enjoy the
various rights by adopting this organisation.
 Its liability to the members are limited to the amount of shares held by them.
 It has perpetual succession
 It can also issue share to the members and creditors of the company.
 In case the company has not sufficient funds to remove the debts they can declare to be
insolvent or voluntary winding up.
5

 Lastly to engage in Limited Liability Company, it develops a new image in the market
which increase their reputation and goodwill.
According to Salomon V a Salomon & Co Ltd., This case states that Salomon is a shoe
makers who engage their business in leather shoes after the force of their 5 children to be part of
their business Mr. Salomon convert the business into Salomon V A Solomon & co Ltd. The
company purchase their business by paying of £39,000 and their deal was done in terms of
£10,000 debentures and £20,000 in fully paid up share with £1 share each and remaining balance
in cash (Gelter, 2016). Within a year company is incapable to handle the debts and the
liquidation procedure was started. The assets of the company are not sufficient to disclose the
losses liable in that case Mr. Salomon is liable to pay all the debts.
The decision of High court states that the company is the new legal entity separated from
its members and shareholder but they are responsible to pay recovering amount to the creditors
of the company from their personal expenses.
Legal Personality: In the case of Salomon V Solomon, in the eyes of lord they consider that
company is the separate legal entity and they have to follow the duties, rights and obligation
which they carry in respect of member and shareholders of the company (Olsen, 2015). Directors
of the company are not liable to take any action until the corporate veil is enacted.
TASK 4
LO4 Recommending appropriate legal solutions to resolve areas of dispute
Alternative Dispute Resolution (ADR): To solve the disputes between the parties ADR is
the best way to implement and resolve the disputes. As there are 4 ways under ADR ~
Arbitration, Mediation and negotiation. This involves the concept of out of court settlement as if
any party not spent lot of saving in the court they decide to solve the matters outside the court
and this way they save time and money and also the main part is mutual agreement decision exit
in this concept (Alternative Dispute resolution, 2018). If they prefer to take the matters to the
court they are bound to follow the court decision which can be against or in favour of that
person.
Arbitration: It depends upon the parties to choose the arbitrator of their own choice. The
arbitrator is appointed when the parties didn't come on the single point in that case arbitrator
follow their own terms which the parties are bound to follow their decision. This is the speciality
6

of the arbitrator that the decision is the final decision on both the sides and every party is bound
to follow it. It is the most important method to settle the commercial dispute.
The decision of arbitrators is not affected by the court decision as once the arbitrator
takes the decision, both the parties have to follow it without any failure (Bayern and et.al., 2017).
The main advantages is that parties can trust the arbitrator as arbitrator are not the fixed person
who are appointed by the parties they can mutually appoint the arbitrator to discuss their matters
and discusses regarding the dispute.
Mediation: Mediator are the persons who are appointed by the parties to have a normal
communication between the parties (Green, 2018). As mediator are not allowed to pass the
decision or judgement in any case they only guide the parties to take the correct decision and
prefer to settle the dispute mutually. If the decision of the mediator are not appropriate for both
the parties they are free to reach the court to settle their disputes.
Negotiation: In this method no person is appointed to settle their disputes. Both the
parties have to mutually agree with their settlement and they have to alone settle their disputes.
After settling their matters they are bound to follow the decision and cannot reach to court for
more settling matters.
K company can choose any matter to settle their disputes with IT department so that they
can internally solve the matters and continue their working smoothly (Kraakman, 2017). As due
to ceased of system most of the customers suffers due to delay in delivering meal or late delivery
of food which to cold meal. This reflects bad impact on the company and chances to lose the
fixed customers.
CONCLUSION
From the above study it can be concluded that business law is important to manage the
business affairs and internal matters of the company. It helps the company from the formation
stage to the dissolution ends. Further, it has been articulated that to pass a law various formulates
are required and to formulate it, is also essential for better development. The report includes the
matter of KANGO and their employees working in the organisation. It can be summarized from
the evaluation that business unit (K) implements various norms for their courier services which
are bound under the employment law and contract law. It includes the various sources of law
which the company used to establish their business and polices to teach their employees. It
7

describes the out of settlement procedure to resolve disputes between the K company and their
IT department.
8

REFERENCES
Books and Journals
Bainbridge, S. M., 2017. Corporate Directors in the United Kingdom. Wm. & Mary L. Rev.
Online. 59. p.65.
Bayern, S. and et.al., 2017. Company law and autonomous systems: a blueprint for lawyers,
entrepreneurs, and regulators. Hastings Sci. & Tech. LJ. 9. p.135.
Bocken, N. M. and et.al., 2016. Product design and business model strategies for a circular
economy. Journal of Industrial and Production Engineering. 33(5). pp.308-320.
Connor, P. M. and et.al., 2018. Sources of risk and uncertainty in UK smart grid deployment: An
expert stakeholder analysis. Energy. 161. pp.1-9.
Creutzfeldt, N., 2016. Implementation of the consumer ADR directive. Journal of European
Consumer and Market Law. 5(4). pp.169-175.
Engelken, M. and et.al., 2016. Comparing drivers, barriers, and opportunities of business models
for renewable energies: A review. Renewable and Sustainable Energy Reviews. 60.
pp.795-809.
Gelter, M., 2016. EU Law with the UK-EU Law without the UK. Fordham Int'l LJ. 40. p.1327.
Green, L. C., 2018. The contemporary law of armed conflict.
Hodges, C. and et.al., 2016. ADR and Justice in Consumer Disputes in the EU.
Kraakman, R., 2017. The anatomy of corporate law: A comparative and functional approach.
Oxford University Press.
Nazmetdinov, R., 2017. The Role of International and States Employment’s Laws in
Maintaining of Society Welfare. The European Proceedings of Social & Behavioural
Sciences (EpSBS). Vol. 19: Lifelong Wellbeing in the World (WELLSO 2016).—Nicosia,
2017. 192016. pp.485-490.
Olsen, T. D., 2015. Law, Business and Human Rights: Bridging the Gap, edited by Robert C.
Bird, Daniel R. Cahoy and Jamie Darin Prenkert. Cheltenham, UK: Edward Elgar Press,
2014. 269 pp. ISBN: 978-1782546610. Business Ethics Quarterly. 25(4). pp.590-593.
9

Riefa, C. and Willett, C., 2018. Enforcement and Effectiveness of Consumer Law in the UK.
In Enforcement and Effectiveness of Consumer Law. (pp. 673-695). Springer, Cham.
Thirlway, H., 2019. The sources of international law. Oxford University Press.
Online
Alternative Dispute resolution. 2018. [Online]. Available through:
<https://www.rocketlawyer.co.uk/article/arbitration.rl>.
How does the law affect the business? 2019. [Online]. Available through:
<https://yourstory.com/mystory/6d7c3b1641-how-does-the-law-affect-businesses->.
Types of Business organisation. 2018. [Online]. Available through:
<http://www.studyfinance.com/lessons/busorg/>.
10