Legal Framework and Business Solutions

The provided report discusses various aspects of the legal framework and its application to a company named KANGO. It begins by outlining the importance of a legal framework as the foundation on which the legal system operates. The report then delves into the nature of the English legal system and sources from which its knowledge can be gained. Additionally, it explains the role of government in law making and bill passing processes. Furthermore, it clarifies the meaning of employed and self-employed individuals, citing the case of Pimlico Plumbers. The report also examines types of business organizations that can be opted for by considering pros and cons. Lastly, it presents different legal solutions that may be applied to resolve disputes arising in the course of business.

The Legal Framework
and
Legal Solutions

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Nature and main principles of English legal system...................................................................3
Role of government in law making.............................................................................................4
Bill passing process.....................................................................................................................4
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................6
TASK 4............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Legal framework is a set of main laws and rules enacted for governing rights of citizens
living in a country. It protects individuals against wrong conduct of acts which may be
categorised into criminal and civil. There are different jurisdiction for each one of them having
their own courts and procedures (Aggrawal, 2016). On the other hand, legal solutions are the
remedies that are available to all the people equally. The report includes a case study of KANGO
on the basis of which nature of legal system and potential impact of law on a business have been
explained. Furthermore, formation of different types of business organizations and
recommendation of appropriate legal solutions for resolution of disputes are also covered.
TASK 1
Nature and main principles of English legal system
English legal system is categorised into three systems which are England and Wales,
Scotland and Northern Ireland. All of these have their own courts and legal procedures to deal
with variety of matters. UK has a very old legal system which have been used in many countries
as a base for making their own constitution and legal system. The main principle in UK states
that Parliament is called sovereign. It is also know as parliamentary supremacy or legislative
supremacy. According to this doctrine, parliament has the highest authority to enact laws which
will extend to whole UK (Bhatia, 2014). The knowledge of applicable laws can be gathered from
number of sources which are bifurcated into primary and secondary and provided below:
Primary sources: The first hand information kept in original form are provided under
primary sources which comprises the following: Case law: Judges in the courts pass decisions which are complied in a form of a report
including facts, issues, judgement and legal principles. Furthermore, principle of judicial
precedents is followed in which previous cases form base for passing decision in future
cases.
 Legislation: UK constitution has given highest power to Parliament to enact a laws in the
country. The constitution is partly written for which legislations have been passed. Also,
this source cannot be questioned in courts.
Secondary sources: The interpreted form of primary sources which have been used by
authors and researchers are termed as secondary source. These are as follows:

 Legal encyclopaedias: Halsbury's laws of England and Wales is a comprehensive and
authentic source in which number of legal terms have been described which are extracted
from the expert's advice. Parliamentary and non-parliamentary publications: Former contains debates of both the
houses of Parliament and latter has reports and consultation papers from various
government departments and agencies (Combe, 2012). Law commission: An impartial standing body formed to review and recommend
amendments in existing legal provisions. A report is prepared of the findings which is
presented to public and interested parties. Textbooks: These are generally for students studying in schools in which authors have put
their interpretations to make the matter easy and intelligible.
 Law journals: These cover extensive information about legal provisions. These are
provided to practitioners who are practising law. It may include mix articles and
commentary to help in understanding legal issues in a better way.
Role of government in law making
Government is the authority who is responsible to make plans and implement them for
the betterment of UK citizens. It conducts assessment and evaluation of various areas where
improvement is required. Government is empowered to make, amend or repeal a law that is in
existence. There are three roles in law making which are executive, legislative and judicial.
Executive is about enforcement of laws that passed by legislative body. Legislative role is
regarding passing laws with a view to enact across UK. Lastly, under judicial role government
establishes number of courts as per the needs.
Bill passing process
Every act is the outcome of bill that undergo numerous stages. Parliament has the
supreme authority to pass or reject a bill (Bill passing process, 2019). Also, it holds power to
make modifications in a bill to make it suitable and appropriate. Process of converting a bill into
an act is as follows:
1. First reading: It is the beginning of passing a bill wherein a draft bill is presented in
Parliament.
2. Second reading: At this stage, House of Commons and House of Lords discuss on the bill
so presented. Votes are taken by the houses.

3. Committee stage: The committee constituted by Parliament conducts an examination of
bill and discussion and suggests amendments to be made.
4. Report stage: Report prepared by committee is presented to House of lords for further
discussion.
5. Third stage: This provides last chance to make amendments.
6. Royal assent: Once the bill has gone through all the above stages, it receives consent of
queen which makes it an act.
KANGO is engaged in food delivery service on which number of legislations and
standard can be implemented such as Food Safety Act, 1990, standards formulated by Food
Standards agency and many more. It is compulsory for it to abide by applicable laws in order to
carry business lawfully and avoid penalties.
TASK 2
The case scenario states that KANGO's employees are confused about their status
between employed and self-employed. This can be understood from a real case which has
cleared all the doubts.
In the case of Pimlico Plumbers, Gary Smith was a working with Pimlico for six long
years on a self-employed basis. At the time of joining the company self employed workers were
made to sign a contract with Pimlico. Furthermore, they were obliged to wear uniforms and drive
vehicles with the brand name and colour of Pimlico (Lopez-Tarruella, 2012). Also, there was an
administrative control wherein workers were bound to give notice to Pimlico before moving out
of the company. In addition to this, a worker can not work with the other firms operating in the
same industry. This restriction was for certain period. Gary filed a petition with Employment
Tribunal for implementing various rights given in employment and related acts. It was decided in
the favour of Pimlico. Gary was aggrieved thus, approached Supreme Court who held that, Gary
and other worker on whom the above obligations and conditions are implemented must be
treated as employed instead of self employed.
It was a benchmark case in Gig economy which defined the definition of a self-employed
and employed. There is a difference between employed and self-employed which is provided
below:
Basis Employed Self-employed

Meaning A person who is accustomed to act
according to instructions of his
employer.
Individual working on his own and
not bound to act under anyone.
Decisions Only top management has the right to
take decisions.
Self-employed is free to take as many
decisions as needed.
In the case of KANGO, if the number people engaged in the business are to be treated as
employees, then KANGO is legally bound to provide salary and number of facilities which has
been given under Employment Act, 2002, Equality Act, 2010, Employment Rights Act and many
more. The events will be judged through the application of legal provisions in employment law
also, there will a requirement to serve notice to KANGO before moving out of it.
TASK 3
Structure of organization plays an important role in making business successful. Every
form of entities are loaded with pros and cons which are important to evaluate before starting a
business. Various forms of organizations are as follows: Limited company: A company has been considered an artificial person in the eyes of law
which is created by members called shareholders (Maier, Meyer and Steinbereithner,
2016). It is a body corporate having common seal and perpetual succession who can own
properties and open account in its own name. An important point is that there is a
distinction between a company and its members. In limited company, the liability of
members is restricted to unpaid nominal amount on shares held by them. A company in
no case can ask for more contribution. The sources of finance are share capital,
debenture, retained earnings, borrowings, loan from banks, FI, and many more. Sole proprietorship: It is a business entity which is owned and controlled by a single
person called sole proprietor. There is no sharing of risk, profit and loss. Also, no
distinction has been drawn between sole proprietorship and owner. Furthermore, there is
limited sources for raising funds such as personal saving and loan from banks or financial
institutions. In addition to this, the unpaid financial obligations will be fulfilled from
personal assets of sole trader (Maly, 2014).

 Partnership firm: It is an association of two or more partners who have motive to earn
profit and carry business in a lawful manner. Partners execute a deed which contains
terms which will govern affairs of the firm. Also, partners have ratio to share profit and
loss and a decision is treated final on receiving consent from all partners. Personal
properties and assets are used in case firm fails to pay off its obligations. In addition to
this, if it is found that a partner has committed an act which is against the deed, then other
members will be held liable jointly and severally (Reim, Parida and Örtqvist, 2015).
 Limited liability partnership (LLP): It is a mixed form of a partnership firm and
company. There is a balance between liability of partners which is limited and does not
extend to personal assets just like in case of a limited company. In addition to this,
management and structure is not rigid, thus, flexibility is there in a good amount. It is
suitable for lawyers and other professional people.
KANGO ca opt for a registered liability company by completing all the legal
requirements. There is a procedure which goes like, filing form IN01 along with a name,
preparation of MOA and AOA, appointing directors, give shares to shareholder by subscribing
their names in the MOA, and many other formalities. At last, it will have to wait for Certificate
of Incorporation before commencing the business.
A registered company is one whose name has been entered in the register of Companies
House. Investors trust a registered company for the investment. There are enhanced advantages
of this type which helps in conducting the business smoothly. Also, it is easy for such entities to
convert itself into any other type (Schöpfel and Lipinski, 2012).
TASK 4
In the given case, there has been a problem in KANGO which is about legal dispute with
its IT suppliers. It has faced litigation which is a pure time consuming and expensive process.
However, there are other methods which can be used for resolving the conflict without going to
court. The legal solutions are as follows:
Alternative Dispute Resolution: It is a method for resolving disputes without going to
courts. The features of this remedy makes it liked by majority of individuals (Tank, 2012). It
comprises of methods which are negotiation, mediation, conciliation and arbitration which have
been defined below:

Negotiation: It is the first preferred method for resolving legal disputes in which an
effective communication is held between two parties for making things clear. In this, terms and
conditions are negotiated which can be presented in form of an agreement. There could certain
terms which can be negotiated between KANGO and suppliers by making modifications in
existing terms.
Mediation: It is a collaborative process to work the ways for finding solution. Also, both
parties with mutual consent can appoint a mediator who will help with effective communication.
There can be an agreement which can not be enforced legally. There is a goal to find a reachable
solution which can settle the dispute. KANGO and IT suppliers can have an agreement made by
a mediator according to which all the activities will be carried (Alternative Dispute Resolution,
2019).
Conciliation: In this method, a conciliator is hired who is responsible to assess and
evaluate all the areas of dispute with an objective to provide suitable solution for quick
resolution. Here, KANGO can appoint a person who is good with conciliation and settling
disputes immediately.
Arbitration: It is an appropriate method which is out of the court settlement in which an
arbitrator is appointed to consider arguments of both sides. The statements are noted and
examined by arbitrator on the basis of his knowledge. He draw a conclusion which is applied for
resolving the matter. It can be applied by KANGO, whereby an arbitrator can be appointed
mutually who will act in independent basis and give decision which is final and binding. They
can also set their own procedure for legal solution.
CONCLUSION
From the above report, it has been concluded that legal framework is the foundation on
which legal system works. There are legislations which are implemented for governing rights of
every individual living in the country. Along with this, nature of English legal system and
sources from which its knowledge can be gained have been described. In addition to this, role of
government in law making and bill passing process are also covered. Furthermore, meaning of
employed and self employed have been made clear by quoting the case of Pimlico Plumbers.
Along with this, types of business organizations have been explained which can be opt by
considering pros and cons. Lastly, types of legal solutions have been given which may be applied
to resolve variety of disputes arising in the course of business.

REFERENCES
Books & Journals:
Aggrawal, A., 2016. Necrophilia: forensic and medico-legal aspects. CRC Press.
Bhatia, V. K., 2014. A generic view of academic discourse. In Academic discourse. pp. 31-49.
Routledge.
Combe, C., 2012. Introduction to E-business. Routledge.
Lopez-Tarruella, A., 2012. Google and the Law. Empirical Approaches to legal aspects.
Maier, F., Meyer, M. and Steinbereithner, M., 2016. Nonprofit organizations becoming business-
like: A systematic review. Nonprofit and Voluntary Sector Quarterly. 45(1). pp.64-86.
Maly, C., 2014. Legal Aspects of Local Engagement: Land planning and citizens' financial
participation in wind energy projects. Renewable Energy Law in the EU,.pp.210-231.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production. 97. pp.61-75.
Schöpfel, J. and Lipinski, T. A., 2012. Legal aspects of grey literature. The Grey Journal. 8(3).
pp.137-153.
Tank, R. W., 2012. Legal aspects of geology. Springer Science & Business Media.
Online
Alternative Dispute Resolution. 2019. [Online] Available Through:
<https://www.law.cornell.edu/wex/alternative_dispute_resolution>
Bill passing process. 2019. [Online]. Available through:
<https://www.parliament.uk/about/how/laws/passage-bill/>.