Business Law Report

This report examines the English legal system, its sources, divisions, court structure, and law-making process. It then applies this knowledge to the gig economy, analyzing the Pimlico Plumbers case and its implications for the employment status of Kango couriers. The report also examines company formation, legal personality, and director duties, concluding with a discussion on alternative dispute resolution (ADR) methods.

Business law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
English legal system....................................................................................................................1
Division of law............................................................................................................................1
Sources of law..............................................................................................................................2
Modern court structure................................................................................................................2
Passing of bill through parliament...............................................................................................3
TASK 2............................................................................................................................................3
Gig economy................................................................................................................................3
Pimlico plumber case summary...................................................................................................4
Difference between employed and self employed.......................................................................4
Presenting the advice for case of Kango with relevance to Pimlico plumber case.....................5
TASK 3............................................................................................................................................5
Steps to form a company.............................................................................................................5
Role of a company.......................................................................................................................5
Types of organisation..................................................................................................................5
Registers company.......................................................................................................................6
Legal personality.........................................................................................................................6
Duties of directors........................................................................................................................6
TASK 4............................................................................................................................................7
Alternative dispute resolution (ADR)..........................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business law is a branch under the English legal system that defines the legislations and
regulations to regulated the conduct of business organisation in UK. Various law fall under this
ambit such as employment, contract company and others. The English legal system is vast and
this report are presented that sources, division of law and the court structure and how a law is
made in UK. The employment status of employee of Kango is identified with taking reference
from Pimlico case. The formation of company, its role, types of organisations, legal personality
of a business and role of directors are also included in this report. For resaving the dispute
alternative dispute resolution methods are advised to Kango.
TASK 1
English legal system
English legal system of UK is the legal system that is followed by the courts of England
and Wales. This system deals in both laws -civil and criminal law. English legal system is based
upon common law in which when court makes a decision about a particular case, it becomes a
part of the law for the country. English legal system are the rules that aim at regulating the
behaviour which is created by the state and is enforced in the state in order to punish the wrong
doers. English law has evolved slowly without any interruptions. This law is little influenced
Roman law principles which otherwise dominates legal system of European nations. The most
important aspect of English Law is that judges of English court when making decisions are
bound to apply previous precedent that was relevant.
Division of law
The English law system is divided into two parts which are -
Civil law - This law is concerned about giving legal rights to the individuals which will
govern their formal and informal relationship with each other. The proceeding under civil law
are taken against the person who broke the law by the party who claims to be a victim. These
cases are heard in country court as well as high court. It focuses on the need of the victim and
generally the culprit pay damages to the victim which are often covered in insurance. Most of the
civil law cases are settled out of court without any threat of legal action
Criminal law – This law is concerned about regulating behaviour of being dangerous to public.
It provides machinery as a base in which state take action against culprits. It is generally stated
by police but also enforced by local authorities in some cases. The prosecution need to prove that
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the accuses is guilty. The aim of this law is to punish criminal and safeguarding society from anti
social acts.
Sources of law
Custom law – Custom law of English law is originated from Anglo Saxon period when
local customs formed laws that would affect rights of family, ownership, inheritance, violence
as well as personal contracts. After transformation of 13 and 14 centuries, when English law was
given legal authority under the crown, the ''customs of realm'' became England's common law.
Civil law -This law was originated from Europe combined within the Romanian
framework. Civil law is the collusion of group of ideas that system derived from Corpus Juris
Civilis. It is concerned with families, tort, companies to provide compensation to the victim
party.
Act of parliament – Act of parliament are the rules passed by parliament of UK and are
comparable to Act of congress of US. It creates a new law or changes in existing law. Although
it is not responsible to implement legislation, its committed can overlook how other laws are
being implemented by the government.
European law – The European law has been a source of UK since 1973, when UK
became part of European Economic Community. Under EEC Act 1972, EU law is part of UK
law. In case of conflict, EU law takes priority. Disputed points of EU law must be addressed by
domestic courts for providing justice to European communities.
Modern court structure
The modern court structure of UK is supported by majesty courts and tribunal services in
which there are two courts that are civil and criminal courts. The UK does not have only one
legal system but it has e systems which constitutes – England and Wales, Scotland and Northern
Ireland. Under this immigration laws, asylum and immigration tribunal jurisdiction coves the
whole UK, while rules related to employment law are different for England and Wales along
with Scotland but not northern Ireland. In addition, Military court service has jurisdiction over all
armed forces members of UK in relation to any offense against military law.
There are different types of cases which are dealt in specific courts. The court of appeal is
divided into two tow division which are criminal and civil division. The high court takes both the
cases into consideration and is divided into 2 divisions which are : Queen's bench, the Chancery
and family divisions. The division of high court are not separate courts but just have separate
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procedures. The crown court is criminal court that is both original and appellate jurisdiction. It
handles very less amount of civil cases.
Then comes subordinate courts that are divided into 4 parts that is county, family,
magistrates and Youth court in which county court deals with civil jurisdiction sitting in 92
different towns across England and Wales. The family court is a national court deals with all the
family case in England and Wales and at last youth courts deals with criminal cases related to
minor. Youth court are not open for public, only parties involved in case are allowed to sit in the
court.
Passing of bill through parliament
Parliament of UK is divided into two parts – House of lords and House of commons.
Bills are drafted laws that one of the house want top turn in to law. Bills can start in either of the
houses. They need to get approval of both the houses before they get signed by the Queen and
became the Act of parliament (How does a bill become a law, 2018). A bill to became an act
need to go through several steps in both the houses which includes first reading in which the bill
is arrived at both the houses. Then comes second reading which includes main purpose and key
areas of the bill. The third stage include committee stage in which amendments are introduced
line by line and votes take place to decide that the bill need to be passed or not. After that comes
the report stage which further examines the text and amendments are debated and further voting
takes place. At last third reading takes place which is the final chance of voting and to make
changes in amendments. Finally, when both houses agree to the final content bill is approved by
the queen and it becomes Act of parliament .
TASK 2
Gig economy
Gig economy constitutes free lensers and independent contractors that a company hires
temporary instead of full-time workers. Large number of people in UK are willing to work part-
time and the result of gig economy in UK is positive and it provides more efficient services. This
concept is increasing day by day and is leading towards growth and development of individuals
and economy.
Pimlico plumber case summary
This case set a mile stone for determining the employment status of the employees. This
directly affected the way workers are designated. The status of the employments was renewed in
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the so called gig economy. In this case Gary Smith who was worker of the Pimlico plumber. He
was designated self employed in the company. After he fell ill, he claimed that he had been
employed with the organisation. The company denied to the fact. In was held in the court that
Smith was employed in Pimlico. It was stated Smith have limited power to substitute his
services, there was an overarching contract between them defining working times of Smith and
references related with wages and misconducts were made, there was a tight control over Smith
to wear branded uniform of company. Along with this he was required to drive the branded van
with a tracker in it. With all this conditions he was stated to be employee of Pimlico.
Difference between employed and self employed
Particular Employed Self employed
Status An employee of organisation Work with company as an
independent contractor.
Control Employee work under the
supervision and control of
employers.
No Control over the work of
an independent contractors,
work as per own terms.
Provision of equipment All tools and material to
perform the given task under
employments are given by
employer.
All the material and
equipment’s are brought by
contract himself.
Employee benefits Have right to all the benefits
given to a employee includes
holiday and leave pay,
pension, bonus.
No right over the employee
benefits.
Presenting the advice for case of Kango with relevance to Pimlico plumber case
With this it can be stated that the couriers of Kango satisfy the condition of being an
employee. With the decided case of Pimlico the workers of Kango also complete all the terms of
being an employee rather than a self-employed. Hence they are employee of the business. All
this can be stated with taking reference form the case of Pimlico plumbers as well as the
checklist of the employment rights act, 1986. As given in the case of couriers of Kango are
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required to wear the uniform and rise the bicycle of the K brand. They cannot take a leave prior
taking approval of operative officer and informing them 48houes prior to taking a leave. They
are made to sign a contract with K. All the conditions of the employment of couriers are same as
it was in the case of Pimlico for the plumber Smith. With this it can stated that the couriers of K
are employee and not self-employer works.
TASK 3
Steps to form a company
For registering a company first of all a name must be selected which must not be similar to ant
existing name of the company or resample a logo, flag of a nation. After this few documents are
required to be submitted which are:
Memorandum of association (section 8,9): defines the name of the subscriber to
memorandum. This also includes the name of the company and address of its registered office.
Article of association [section(5)]: defines the rules and regulation of the running the
company.
Statement of legal compliance: this states the company’s share
capital and shareholdings
Statement of shareholders equity: this state that all the registration requirements have
been complied with and the registrar can take this statement as evidence of compliance.
With submission of all this documents to the companies houses it gets registered.
Role of a company
A company is the most referred business structure with having a legal formations and
operation for a business (Handbook of Everyday Law, 2018). The role of company is to conduct
the transactions and activities of a business. The company provides a legal name to the business
and operates under the ambit of legal provisions. A company also prevent the business to indulge
in any unlawful matters.
Types of organisation
Sole trader: business is formed and operated by a single person. The individual is
responsible for every act of the business with having an unlimited liability over the financial
dues of the business. There is on legal requirement to form this type of business with having no
legal remedy under the law. The capital is brought in by owners itself and all profits belong to
that person only.
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Partnership: firm is formed and run by two or more person. All the partners shares
business responsibility and profits of the business. The capital in brought in by the partners to
run the business. This is also not a registered business where the liability of at least one partner
is unlimited.
Company: is a registered business as per the provisions of companies act 2006. The
company is a separate legal person distinct from its members. It has its own share and property
as well as rights, responsibilities, obligation and liabilities.
Registers company
A registered company means that one which a business which have taken a registration
under the companies house as per the provision of companies act, 2006. With registration a
company gets a status of legal person.
Legal personality
The company with is incorporation becomes a separate legal person under the eyes of law
where it is considered as a separate person distinct form its members and directors. The company
becomes a separate legal entity where it is formed by the law and can be ended with the legal
procedure only. This principle was established in the case of Solomon v Solomon, 1897 where
the company and its director who was owner of the company was considered as two different
legal persons by courts. Sin the similar case of lee v lee, air farming 1961 the company and its
owners are treat as tow distinct people. Company have its own sets and property, obligations and
rights.
Duties of directors
The directors of a company have certain roles and responsibilities as defined under
section 170 to 178 of the companies act, 2006. This can be outlined as:
As per section 172 the director have duty to act in the best interest of the company and
consistent with long term objective of business. Section 172 defines that director must promote
success of the business with taking care of interest of employee. Section 174 defines that the
director must exercise reasonable skill and judgement with his/her general knowledge, skill and
experience. Section 175 states that the direct must not take benefit from the business transactions
without declaration of persona interest. Section 176 states that every director is required to
declare a interest in the transaction to be entered by the company.
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TASK 4
Alternative dispute resolution (ADR)
The ADR can be defined as a technique to resolve business disputes apart from the legal
court procedure of trial and litigation. Under ADR there are separate methods through which
parties can sought legal remedy for their dispute. ADR is informal in nature and allows parties to
take active participation is solving their issues. The process is fast and consumes less expenses.
Moreover, this method is more approached in present times as this is informal, and save time and
money of the parties to dispute.
Arbitration: this is a method of ADR which is the most popular one. Parties can enter
for ad hoc arbitration where single arbitrators can give an award. But generally three and
arbitration tribunal is sought to give a remedy for a dispute (Adams, 2010). For ad hoc arbitration
a clause under the agreement is required for unicitral arbitration rule. The clauses provide the
rules to arbitration with a ready made code of procedure.
Mediation: This is another method of ADR where a third impartial party is appointed as
mediator. The role of this person is to bring the parties to such a situation where they are ready to
talk and resolve the disputes on amicable terms. The mediators work as an agent between parties
but final decision is taken by the parties themselves. The decision can be made binding through
the court order.
Kango can opt for any of the two methods for resolving its dispute with IT suppliers as
both the methods will give effective solution to their problem with avoiding the litigation process
and saving time and money.
CONCLUSION
From the above report it can be concluded that in the English legal system sources of law
includes the EU, custom, common laws and act of parliament. Its division are civil and criminal
and a bill goes through parliament stage to become a law. The court structure define the court
hierarchy to file law suit and making appeal. Moreover, the employment status of the workers of
Kango is identified as employee with taking reference from Pimlico case. Types of organisation
includes sole trader, partnership and limited company. The directors have fiduciary as well as
statue responsibility towards the organisation. Furthermore, it can be articulated that ADR
methods provide significant resolution to the disputes and is fast track method as compared to
litigation process.
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REFERENCES
Books and Journal
Adams, A., 2010. Law for business students. Pearson Longman.
Online
How does a bill become a law?. 2018. [online]. Available through :<
https://www.parliament.uk/about/how/laws/passage-bill/>.
Handbook of Everyday Law. 2018. [online]. Available through :<
https://www.rossmartin.co.uk/>.
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