(pdf) Sample Assignment on Business Law

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
English legal system...............................................................................................................3
Role of government in law making........................................................................................4
Effectiveness of system..........................................................................................................5
Proposed legislations..............................................................................................................5
TASK 2............................................................................................................................................6
Determination of employment status of couriers of Kango...................................................6
TASK 3............................................................................................................................................9
Different types of business organisation................................................................................9
TASK 4..........................................................................................................................................10
Alternative dispute resolution...............................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business law refers to as a body of law including the rules and regulations and the law
which governs all the working and dealing of the business. These law regulates all the corporate
contracts, sale of consumer goods, manufacturing of products and services and all other related
activities by the business. For a business to run successfully it is very necessary for the
companies to follow all the rules and regulations in proper way. The present study is based on
KANGO company which was set up in the year 2016 by Alex and Jay. It is a company started in
London suburb which deliver meals at the resident of the customers.
The assignment will start by an explanation of different sources of law. Further it will
discuss the role of government in formulating the law and way in which statutory and common
law is applied in courts. Further the report will outline how different types of law impacts the
business. In the next the report will demonstrate the fact that how various kinds of business are
legally formed along with different ways in which these business are managed and funded. In the
end the report will highlight some different legal solution for resolving disputes and how the
company can obtain legal advice and support.
TASK 1
English legal system
Law is very necessary for the successful running of the business. Therefore, for this UK
has made an English legal system which includes different sources of laws. The different types
of sources of laws are as follows-
Common law- it is defined as the law which is based on some other similar case. These
are some unwritten laws which are based on some legal precedents which means that if any case
similar is solved earlier to the present case, then the judge can use the same decision by referring
to the previous case. These common law influences the decision making because the judge can
use this case as a base for taking the decision for the present case. Many a time there are
situations that similar cases come to the court which have already being solved then by referring
to the same case the judgement is passed (Ball, 2015).
Act of Parliament- under this the UK parliament is a body which has the power of
making and passing the different laws applicable to all parts of UK. These parliaments have two
different houses that is House of Lords and House of Common. These are also known as
statutory laws because they are made by government. Under this the laws are time- to- time

updated in accordance with the changes taking place within the environment and to implement
these changes within the legal system as well.
European Union law- the legal order of European Union is based on basically the
European treaties (Sadgrove, 2016). This law operates in the member state of the European
Union. The reason behind the implementation of the law is to create and harmonise all the laws
across the whole Union in relation with certain matters mainly relating with trade.
Role of government in law making
Majorly the laws are formulated by the government or by the parliament. Everyone
residing in the country has to follow the laws and no person is above the law. The making of law
is initiated by forming a draft legislation which is prepared by public authorities in order to solve
some public issues or problems faced by general public as a whole. A draft of the law is prepared
by taking help of government authorities and is presented in from of the cabinet ministers. This
is presented in front of cabinet ministers because the draft cannot be passed further if it is not
approved by the cabinet ministers. If the cabinet ministers approves the drat then it becomes a
bill.
After the acceptance of the bill by cabinet ministers it is presented in front of the
parliament. Here the bill is presented in both the houses that is House of Lords and House of
Common. Here the bill is present through the first reading which is an official notice that what
the bill is going to propose and for what reason it has been initiated. Now from here the bill is
passed on to second reading wherein all the major reasons and principle for the inception of the
law are debated that is all the positive and the negative sides of treating this bill as law is
discussed in detail. At last if after the debate the bill is agreed upon by both the houses then this
bill is passed on to the Queen in order to get the Royal Assent (How are laws made in UK?
2013). As and when the royal assent is provided the bill becomes the law.
Application
Statutory law- this law is made for the whole,UK with the help of parliamentary process
and are applicable for the whole nation. These laws are applied by interpreting the laws by taking
help of different aids like dictionaries, long titles, Hansard and many other different internal and
external aids.
Common law- the application of this law is in the court of justice where the cases are
being solved by the judge through doctrine of judicial precedent. Under this doctrine the judge

applies the judgement of the similar case which earlier been solved by other judge (Ambler,
Witzel and Xi, 2016).
Effectiveness of system
In this dynamic and modernized world many changes take place in every field whether be
it business, service, law or any other field. There are also many changes taking place within the
law section as well. Here it involves transforming the law in accordance with the changes taking
place within the market and related conditions. In the recent times there have been many reforms
which were made in the field of law. In the earlier times all the cases were held with in the same
court but now- a- days the courts are being differentiated on the basis of different case. All the
similar cases are solved in one court and all other different cases are solved in another court. For
instance like family court is separate where all the family cases are solved and the judgements
are provided with speed as it deals with only family cases and not any other case.
Another reform is starting of Alternative Dispute Resolution (ADR). As it takes a lot of
time in getting judgement from the court as many future dates are given for the settlement of the
case. Therefore, the people started doing out of court settlement. For reducing this the legal
bodies have started promoting ADR that is alternative methods of solving disputes. Under this
comes three methods which are arbitration, mediation and negotiation.
Proposed legislations
Company law- the company law refers to as a law body which governs the working of
the companies, their way of doing business, how the employees have to conduct behaviour in
accordance with the laws made for the companies to be followed. The corporations within UK is
governed by Companies act 2006. the act provides for certain specific code of conduct which are
to be followed by all the companies of UK.
Employment law- these are laws specially designed in order to regulate the relationship
among the employees and the business. There are certain rules and regulations which have been
made in the Employment act 2002. This act makes sure that every work done within the
company is done fairly and the employees are not treated indifferent as compared to one another.
This law works for solving the problem of discrimination, wages and salaries, overtime,
workplace safety and many other related things (Beatty, Samuelson and Abril, 2018).
Contract law- contract refers to as an agreement between two or more parties where one
party offers to another and the other party accepts the offer and binds themselves into a legal

obligation that is contract. The contract law outlines the guide which all the parties within the
contract needs to follow and there are also guidelines mentioned if there is breach of contract.
The law applicable for managing contract in UK is Contracts (Applicable law) Act, 1990. It is a
contract wherein one party makes and offer to another party and the other party accepts the offer.
It needs to be in proper terms and conditions. For a contract there are three essential condition
that is there need to be an agreement with a contractual intention and having either some
monetary or non- monetary consideration needs to be attached with the contract.
Difference
Regulations Legislations Standards
Regulations are specific
requirements which are present
within the legislations.
These are different directives
which are proposed by a
legislative body.
These are some set target
which the companies have
to follow.
Regulation is made for some
specific work and details out
the way how legislation is
enforced.
Legislation is more more general
and broader.
The standards are based on
regulations and legislations.
The regulations are either
internally or externally
generated relating to a certain
industry.
Legislations are always internally
generated by the country's
government.
Standards are derived on the
basis of legislations and the
regulations set by a
company on individual
basis.
TASK 2
Determination of employment status of couriers of Kango
Employed:
As per the Employment rights act an employed person is that who is under full time
employment within an organisation under a single employer and works under the guidance and
supervision of the his/her seniors. An employee is eligible to all the bonus and benefits paternity,
maternity leaves and other benefits including holiday, sick leaves and pay, pension, worker
compensation and others. They get a regular basis pay, provided with professional development

opportunities. An employee is required to work as per the term and condition of the employer for
fixed working hours in a week, they do not have a right to substitute someone other in lieu of
their work and employer have a right over employee for making them work.
Self-employed:
Self-employed or independent contractor are those who are not under fixed employment
of a single employer rather they work for multiple employers on contract basis and as per their
personal feasibility. This type of workers take work on contractual basis from different
employers and they are no supervised by employer they work on their own terms and conditions.
They are not allowed any of the employee benefits of the organisation and the employer is under
no obligation to provide work to an independent contractor on regular basis. A self-employed
person do not get paid on regular intervals rather they are paid for the work done by them.
Employment check list:
Features to check
employment status
Self- employment Employment
Control over worker Limited control over the
independent contractors,
works are per the requirement
and specification
Employer exercise full control
and supervision over the work
of his/her employees,
employees are required to
carry out the job or task as per
instruction and guidance of
employer.
Right of substitution Absolute right of substitution
as they can hire someone else
to perform task assigned to
them.
An employee does not have a
right to substitute any other
person to carry out a task
assigned to them by employer.
Obligation to provide work Employer do not have an
obligation to provide work on
regular basis to the contractor
working on independent basis.
The employer has a sole
responsibility to provide work
to employee on regular basis
in the working hours
(Employment Rights Act 1996,
2019).

Dependability There is no dependability of
contractor on employer related
to work.
The employee is completely
dependent for getting work on
employer.
Right to turn down job/task Self-employed worker can
turn down a job or task offered
to them.
An employee does not have a
right to reject or turn down a
task or job assigned to them.
Employment benefits A self-independent contract
does not have a right over any
of the employment benefits.
An employee is eligible to get
employment benefits such as
sick and holiday, maternity,
paternity leaves and pay,
pension schemes, bonus,
workmen compensation and
others.
Number of employers under
which employment can be
taken.
Can take work from more than
one employer.
Can work for only one
employer at one time.
PIMLICO PLUMBER CASE:
The case of Pimlico plumber has emphasized on the recent development in the gig economy
where worker can travel from job to job and enjoys the work flexibility. Gary Smith was
working with Pimlico as self employed but he claimed sick leave benefits when he fell ill. The
tribunal decided the case in the light of following factors that Pimlico exercised an extensive
control over its operative, Smith did not have a right to substitute his services, he had an
overreaching contract with Pimlico where Smith was not allowed to work any other place in
between the jobs with company (Pimlico Plumbers Ltd and another, 2019). He was required to
wear branded uniform, drive branded van with attached tracker and Smith carried identity card
and he followed the instruction from the Pimlico’s control room. There was mention of wages
and gross misconduct in the contract as well. With all these conditions stratifying to be of being
employed Smith was declared to be employee of Pimlico.
In the given case of Kango, The couriers were instructed to ride branded bicycles with
wearing uniform of K. there were issues with delivers rota every week, they cannot take leaves

with prior information, and they have signed a contract with the K as well. The given condition
do not satisfied to be self-employed rather they full fill most of the condition of being employed
as they work under supervision of K and have an employment contract. Moreover, with
application of ruling of Pimlico case here it can be stated that couriers are employee of Kango
and are not self employed.
TASK 3
Different types of business organisation
K accountant had advice to K company regarding setting the business into limited
company as there are various types of business organisation which is available to K such as:
1. Sole proprietorship: It is also known as sole trader company which is owned by
individual or married person to handle the business activities for longer term growth. The
main advantages of choosing the sole trader business is the person individually have right
to follow the terms and condition and also enjoy the profits of the company. The
disadvantage of choosing this business is that the loss had to incurred by the sole trader
only (Mason and Harrison, 2015). The person had to manage the funds of the company
by themselves only or can take help from family and friends but cannot take loan from
banks. It is also determined that the registration of sole proprietorship business is not
complicated as they had to register the business name with the appropriate authorities so
that there is no chance of duplicate in business.
2. Partnership:It is that type of business which is formed by combination of two or more
person to form a common business in terms of agreeing the partnership deed. The main
advantages of preferring the partnership business is that all the partner are bound to
follow the partnership deed. In this partnership agreement it is mentioned that the profits
are to be shared on equal bases and also the losses is to be incurred equally. Thus, there is
no obligation on any partner to suffer loss individually (Sadgrove, 2016). The
disadvantage of choosing the partnership business is that in case of death of any partner
results in closure of partnership business. It is also examined that if one of the partner is
active in business and the success is achieved by his hard work,than also as per the
partnership agreement the profits is to be distributed equally (Rosa-Rizzotto and et.al.,
2019). The prospectus related to funding in partnership business is committed by all the
partner and they are liable to bring some amount of share to formed the business.

3. Limited liability company: To form the limited company, the owner are responsible to
manage the risk of the company and also had to undertake various activity which is
mention under the companies Act, 2006. The company can be limited by shares or
limited by guarantee. The advantages of preferring the limited liability company is that in
case of death of any partner, the company continues to carry the business for longer term
growth. They can easily take loan from banks as they carry the strong reputation in
market and can also raise funds by issuing share in Market and invite public to invest in
company (Roberts, 2018). In return of such investment they provides security to the
investors to protect their rights and interest in company. The disadvantages of choosing
the limited company is that to form the limited company is very complex and also it
includes various formalities which is to be accomplished in respect of paying taxes.
The main focus for K company is to gain profits and thus it can be incurred by choosing
the limited company as they can enhance their stability by raising funds from the market. To
register the company as limited liability firstly the name is to be identifies which is unique from
others and also not contain any government name (Storey, 2016). After verifying the name of the
company , the companies house issue the certificate of incorporation which is intended when the
company is registered and carrying its activities. They prepare their own memorandum and
article of association. Company can also take loan from bank if they are facing any issue in
maintain their stability.
By establishing the business through limited company they can also issue their shares to
the public. This helps them to manage the continuous flow of funds in the company and also in
return provides security to the investors regarding investing their money in company (Burns and
Dewhurst, 2016). The another main reason of choosing this type of business is that K company is
run by two partners Jay and Alex and also they deal in business related to home delivery of
meals. In such perspective if any of the partner dies than also company will continue and one of
the partner is liable to carry the business. The major risk arise in case of losses which is to be
incurred by the single partner if company suffer losses through attempting any of the activity.
TASK 4
Alternative dispute resolution
K companies recently engages in disputes with the IT companies in respect of not
recording the clients necessaries and also delay in delivering the food. In respective to resolve

the disputes, Alternative Dispute resolution is to be adapted so that fair decision is to be taken
which protect the interest of both the parties (What is Alternative Dispute Resolution, 2019).
There are three methods through which the disputes can be resolved such as:
 Negotiation: By preferring the negotiation procedure, there is no involvement of third
party as both the parties settle the disputes with each other (Cortes, 2015). In this, they
negotiate the matter and also determines the common objective through which they both
agree at some common perspective. This method is beneficial if the parties not want to
involved any third party to settle their matters.
 Arbitration: In the process of arbitration, arbitrator is such as person which is appointed
to resolve disputes between the parties. As parties demand court to appoint the arbitrator
to resolve their disputes (Rees and et.al., 2016). This process is the time saving and also
cost effective. The decision given by arbitrators is bound on both the parties and they had
to follow the decision without any negligences. Once the decision given by arbitrator
cannot be further challenges in court As the decision is to be undertaken in form of
rewards.
 Mediation: In this the third party is to be involved which can be finalised by both the
parties (Schaub, 2019). As the decision given by third party is not bound on both the
parties. They can also reach to court if they are not satisfied with the decision given by
mediators. It can also be defined as the a collaborative process wherein a mediator is
appointed by either of the party having the dispute and the mediator by analysing the
situation and by hearing both the parties and then finding best solution to solve the
problem or dispute.
For the purpose of solving the dispute with the IT suppliers company K will use the method of
arbitration. This is majorly because of the reason that it is the most favoured method of solving
the dispute within the business (Allen and Kraakman, 2016). It is because of the reason that
arbitration refers to as a process wherein an arbitrator which is not known to both the parties is
hired and he listens to both the parties side and and then after analysing the situation decision is
taken by arbitrator.
This method is most preferred because of the reason that firstly the arbitrator is the
person who is not known to the parties having dispute. Therefore, the arbitrator will not be
biased to any of the one party. Another reason underlying the selection of arbitration as mode of

dispute settlement is that the decision of arbitrator is binding on both the parties. This means that
what ever the decision is given by the arbitrator needs to be followed by all the parties and they
cannot go to court after the judgement given by the arbitrator.
Also another reason for the selection of the arbitration method is that this method is less
time consuming and is cheaper then the other method of dispute settlement. On the other hand if
the problem relates to more complication or technical issues then it will take more time. Another
reason is that all the procedures used in solving the dispute under arbitration is very confidential.
It is because of the reason that the proceedings takes place in private and the arbitrator does not
reveal any information out of the proceedings due to binding contract on him.
Another reason is that if the company operates other option that is mediation then there
are chances of biasses and discrimination with either party and also they can appeal to supreme
court and challenge the decision made by the mediator. On the other hand this is not the case in
arbitration (Miller, 2015). The underlying reason behind this is that the arbitrator's decision
cannot be challenged in the supreme court and both of the parties have to abide by the decision
made by the arbitrator.
CONCLUSION
The above report can be concluded by stating that the sources of laws for United Kingdom
includes act of parliament, delegated legislation EU laws and case laws. The role of government
in making of laws have been depicted as laws are made through parliamentary procedure through
abidence with various stages in both house of commons and house of lords and getting an accent
from Monarch. Moreover, the effects of employment, company and contract laws has been
identified on Kango and its impacts are listed as imposition of penalties and fines, striking out of
the name of the company. The employment status of couriers has been determined as employees
of Kango as they fulfil all the requirement of being employed in the organisation and the
decision have been reached with considering the employment checklist and ruling of Pimlico
plumber case. Moreover, different types of business organisation to start a business includes sole
trader, limited company and partnership. The benefits and drawbacks of registering a limited
company have been outlined to critically review the decision to register Kango as a limited
company. This have been advised to Kango to register its business as limited company as it gets
a status of separate legal entity and business becomes a legal person in law. For resolving the
issues with the IT suppliers, the alternative dispute dissolution techniques have been suggested to

resolve the disputes through arbitration, mediation, negotiation. Kango have been suggested to
resolve the dispute with IT supplier by arbitration as this is most effective and authentic source
of solving a commercial argument.