Business Law Report: Analysis of KANGO Company's Legal Framework

This report provides a detailed analysis of business law, focusing on the fictional company KANGO, a home delivery meal service. It begins by exploring the sources of law in the UK, including European law, common law, statutory law, civil law, and criminal law, and discusses the role of the government in law-making. The report then examines the impact of company law, employment law, and contract law on businesses, differentiating between employed and self-employed perspectives using the case of Pimlico Plumbers v. Mr. Smith to illustrate the distinction. Furthermore, it explores different forms of business organizations, such as sole proprietorships, partnerships, and limited companies, evaluating their advantages and disadvantages for KANGO. Finally, the report addresses alternative dispute resolution (ADR) methods, concluding with a summary of the key findings and recommendations for KANGO to navigate the legal landscape effectively.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Sources of law.............................................................................................................................3
Role of government in respective of law making.......................................................................4
TASK 2............................................................................................................................................5
Impact on business in respective of company, employment and contract law ..........................5
TASK 3............................................................................................................................................7
Determining Different forms of business organisation...............................................................7
TASK 4............................................................................................................................................8
Alternative Dispute Resolution (ADR).......................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law refers to such laws which is designed for the companies in respective of
smooth working of business. As it carries various rules and regulation which is adapted in
respect of dealing in different companies or law is required at the time of entering into new
contract (Business Law and Regulation, 2019). If company is planning to expand the business
activities or dealing in any transaction related to sale of goods and services, business law is
implemented to provoke ethics in country. It mainly covers under two aspects civil law and
criminal law. Thus, to engages in business activities and also work smoothly, in such cases
business law is implemented to bring changes in company working and securing interest of
employees and public.
Present study is based upon KANGO (K) company which is run by Alex and jay in 2016.
They deal in hone delivery meal and also located at densely populated area of west London. In
this report, the discussion is related to various sources of law which is guided by K company to
their operational staff. It also includes the potential impact of law in respective of K company.
Further the report is covered with different type of business organisation which the K can
engaged into. Lastly to resolve the dispute with IT department, K uses the alternative dispute
resolution method to solve the matters.
TASK 1
Sources of law
In UK, English law are to be implemented in which sources of law are used as the origin
of law. There are various sources such as :
 European law: It refer to such laws which is based in the territory of the UK. In this the
matter related to providing safety to society, securing the right of the people ,protecting
the employees interests in company and also managing the company reputation in
country (Walsh, 2018). Thus all factors which is relating to social, economic and
political factors which affecting the right of the country are to be protected under the
European law. The judgement is to be given in respective of law written and also
changes can be dine if there is need in respect of bringing amendment in existing laws.
 Common Law: It is also known as case law in which the judges can refer to the
judgement and decision based on the previous cases. The decision is also given in
respective of any suit filled in the court which is relevant to the previous case study.

Through this procedure they can take help regarding previous judgement and decision
from the previous case study.
 Statutory law: It is also known as parliamentary law in which parliament has right to
implement such laws. Parliament carries power to bring new laws in country or to amend
the existing law in respect of binging changes (Mayss and Reed, 2018). As parliament
carries two different houses such as houses of lords and houses of common. To bring
new law in country, the approval is needed from both the house. These laws are enacted
within the state and also judges make decision according to the rules and regulation
written in the constitution.
 Civil law: In this the matter related to the civil cases such as fraud, theft or infringement
of right of any property. The punishment is given on the bases of crime but it is not
exceed for more then 3 years or any life time imprisonment.
 Criminal law: This law is imposed in respect of any criminal activity such as murders,
rape or any other crime which affects the right of the people in wider way (Kochupillai
and Brinkmann, 2019). In such case they are considered to be criminal and the
punishment may be imposed for more then 3 years or life time imprisonment.
Role of government in respective of law making
To bring new laws, firstly the issue is to be determined in that case public authorities
identify the need of the law and than accordingly they make application regarding bringing new
laws. The authorities further send the draft to cabinet minister. Through their permission
regarding the selected topic through which law is to be initiated, the application is further
transferred to the both the houses (Beatty,Samuelson and Abril, 2018). In second reading the bill
is further reviewed and then judgement is given accordingly. In first reading the title of the bill is
decided and than through voting the decision is to be undertaken. After having consent from both
the houses the bill is presented before the queen. Through their consent and approval the bill is
enacted (How does a bill became a law?, 2019).

Illustration 1: How does a bill became a law?
Source: How does a bill became a law?, 2019
Application of statutory and common law in respect of justice :
Statutory law: In this, laws are to be enacted through the rules written in the
constitution and judges give decision on the bases of referring such laws (Steingold and
Steingold, 2019). In the case of Lee v Lee air farming 1960, the rules of the companies act, 1862
the matters is related to separate legal entity.
Common law: In this judgement is given by referring the previous case. It helps judges
to present the fair decision to both the parties. In the case of Indusstry v Bottrill 1999, the case
mainly related to lifting of corporate veil.
TASK 2
Impact on business in respective of company, employment and contract law
 Company law: It refer to such law which is mainly imposed on company activities and
also guides company to work under the rules and regulation imposed under the
companies Act, 2006 (Channon, McCormick and Noussia, 2019). The impact on business
through company law arises in respect of imposing different taxes. As due to changes in
taxes which is done by government regarding importing and exporting goods and services
resulting in affecting the company integrity.
 Employment law: This law is mainly imposed to maintain the close relationship between
the employer and employee. They both had to work under the legal terms and condition
which is designed under the Employment and Labour Law, 2016. The employer carry

certain rights and obligation in respect of employee in the situation of Working in
hazardous places (Cornish, Mitchell and Probert, 2019). It is the duty of the employer to
protect the rights of employees and also employees in return behave ethically in engaging
any business activity.
 Contract law: In this law, agreement is made between two or more partiers regarding
agreeing with all the terms and condition to fulfil common objective. The contract is
legally bound by law and also if there is breach in any of the condition it results in
violation of contract law (Falk, 2019). The person is liable to follow the term mentioned
under the contract act, 1919. The impact of contract law arises in respective of fraud in
any of the terms and the person is liable to be punishable under the UK contract Act.
In case of matter related to employed and self employed perspective, there are various
situation through which it can easily identified and also examines the differences.
Employment check list:
Points Employed Self Employed
Definition These are such employees
which are engaged with the
organisation.
They work on the bases of part
time contract or not the
employee of company.
Benefits They enjoy benefits in respect
of free meal, free
transportation, free education
facility and also various
insurance benefits.
They are not liable for such
benefits as they had to mange
each activity with themselves
(Berry, Homewood and
Bogusz, 2019).
Risk There are more chances of risk
in jobs and it result in bringing
insecurity at the time of
working (Van Dyke, 2019).
No such risk arises during
committing task.
Dependant Employee are depends on the
decision given by employer.
They work free as they are not
bound by any senior person.

In the case study of the Pimlico Plumber V Mr. Smith. In this case Mr. smith is Working
with Pimlico company as the post of plumber and assign the duty as self employed. Due to
suffering from severer heart attack, Mr smith half body is paralysed and also cannot commit
work for 3 months. In such perspective Mr smith demand Pimlico company regarding
compensating the working hours. But due to not considering their point, company terminate
smith for not capable of committing the task in proper way. As pimlico company impose various
terms and condition regarding Mr smith working such as Mr smith had to attain the work with
wearing the proper uniform or had to carry the van in context of committing work. The major
substitution is resulting to not doing services at the same time. Thus, through this factors Mr,
smith commit in court that he is the employee of the pimlico company and following their norms
and duties in authentic way.
In the case of Kango company, The guidelines are given to the delivery boys regarding
delivering the meals by wearing uniform. They had to apply for leaves with prior information
thus it not resulting in condition to be satisfied as self-employed as they fulfil the condition of
employed as they work under supervision of K.
TASK 3
Determining Different forms of business organisation
There are different Forms of business organisation and also it helps K company to prefer
the right type which helps them in engaging their business for longer time period. It includes the
following types such as:
1. Sole proprietorship: In this type of business, the activities are to be carried by the single
person or married couple and they individually responsible for all the transaction which is
incurred. The transaction may be related to profits and losses in company and also is any
risk arises, he had to individually faces such risk (Act, 2019). The main advantages of
choosing this types of business is that this business is easy to start and also it is less costly
to manage its overall activity. The disadvantages of preferring this business is that owner
of the company had to personally invest funds in the company and also there is less
chances of getting loan from banks.
2. Partnership: This business is to be carried by two or more person and before dealing in
any business activity, they enter into the agreement which is relating to partnership deed.
In this deed various terms and condition are to be entered regarding profits and losses

which is to be distributed equally between all the partners. The advantages of preferring
the partnership business is that the profits to be distributed equally and also the losses is
to be incurred equally as decide in partnership business (Epstein, 2018). The banks can
easily avail loan to partnership business and also the investors can invest the money in
the partnership business, if they carry the renowned business. The disadvantage is that in
case if death of any partner it results in termination of partnership business. The hard
work of one partner result in providing benefits to the remaining partner. This is the
major disadvantages of the partnership business.
3. Limited company: In this type of company, the liability of the members can be limited
and unlimited either by share or by guarantee. The main advantages of having the limited
company is that company can get the investors very easily and also they can borrow loan
from banks in respect of providing the security (Kochupillai and Brinkmann, 2019). As
banks can easily provide loan to such companies if they carry the strong goodwill and
reputation in market. The another advantages is resulting to having the continuous
working of company in case of death of any partners. The disadvantages is relating to
formation of limited company and also had to pay proper fees to the companies House to
incorporate the companies. Thus this process is considered to be more time consuming
concept and also it compels regarding establishing such business in form of limited
company.
In case of Salomon Vs Solomon & Co., Salomon is carrying the business of leader shoes
and due to the force of 5 children he tuned the company into the limited company and includes
all 5 person as partners. They purchase business by paying £39,000 and their deal was
accomplished in terms of £10,000 debentures and £20,000 in fully paid up share with £1 share
each and remaining balance in cash. Within a year the company become insolvent and the
liquidation process is started. The assets of the company are not sufficient to pay the debts. Mr.
Salomon is liable to clear all the debts. As the decision which is disclosed by common of lords as
it is the company duty to disposes all the debts. Directors is not liable to pay any debts as they
are covered under the corporate veil.
Thus, in respective of K accountant they advices the K company to set their business into
limited liability company. As by choosing the business they can survive their business for longer
time period. If K company chooses the business as limited company they had to pay the

registration fees to companies houses for incorporating. In case of death of any partner resulting
in continuation of the company working and also their liability is not affected by death of any of
the person in company. To establish the business for longer time period, limited company is the
best methods in which K can formed their business.
TASK 4
Alternative Dispute Resolution (ADR)
It is the method which is used by companies in respect of resolving the disputes between
the parties. It is also termed to be alternative to the rules and regulation. In the case of KANGO,
they faces disputes with the IT department regarding not providing accurate services to their
customers. In this case various methods are to be adapted under the Alternative Dispute
resolution as:
 Negotiation: In this methods, there is no participation of the third party and both the
party had to settle the disputes by resolving their own issue. The advantages of preferring
the negotiation is that control varies between both the parties and they had power to take
their own decision. As this is the first method which is mainly used by both the parties
regarding settling their disputes (Mayss and Reed, 2018). This method is considered to be
the cost saving procedure and also get judgement on speedy bases. There is no
involvement of third party and this indicates that they didn't have to share their issue and
problems with other person. If both the parties cannot take the effective decision, they
can approach to court for further judgement and decision.
 Mediator: Mediator is such a person which bring both the parties on common platform
to resolve the disputes. It is also examined that the decision given by mediator is not
bound on parties and if they are disagree with that decision, they can reach to court for
fair decision (Walsh, 2018). The main purpose of appointing the mediators is that they
helps parties to focus on their issue which they can be resolved by communicating with
each other. They present both the parties outputs and than guides them, to choose the
right opinion. The decision given by mediators is not binding on parties to follow the
decisions.
 Arbitration: It is the another level of solving the disputes between the parties. If parties
demand from the courts regarding appointing the arbitrator when they not finalised any
person on their behalf. In such cases court appoint arbitrators to settle the disputes out

from court. This process is time saving concept and also the decision is to be given on
fair bases (Beatty,Samuelson and Abril, 2018). Both the parties present their reviews and
judgement regarding the issue which they are facing and expecting from arbitrators is to
provide the appropriate judgement. The decision given by arbitrator is bound on both the
parties and once the decision is given, both the parties are bound to follow. The decision
of arbitrators is given in the form of rewards.
In respect of matter related to arbitration this is such an agreement in which the parties
either mutually appoint the arbitrator or request court to appoint on their behalf. The decision of
appointing the arbitrators is resulting in getting fair decision and also the case is to resolved on
speedy bases. One of the negative point of preferring the procedure through arbitration is that
both the parties are bound to follow the decision and they cannot oppose to any of the judgement.
If arbitrator commit any breach in giving any decision, parties are free to reach to court and also
file suit against arbitrator for not performing his legal duty.
Thus, KANGO choose the arbitrator to settle the disputes with the IT company. As this
reflecting the working of the company and they are demanding to settle the disputes on speedy
bases. The decision given by arbitrators is bound on both the parties and also they had to follow
the norms and condition accordingly. The reason behind choosing the arbitrators is that they
provides chances to both the parties to present their judgement and also discuss issue which they
are facing. Than accordingly the decision is presented by the arbitrator. Through this procedure it
save time and also cost and the judgement is given on speedy bases.
CONCLUSION
From the above study it is concluded that business law is mainly imposed on examining
the activities of the company and includes various sources of law which helps in determining the
civil and criminal activity. It is identifies that parliament had power to bring new laws or amend
the existing laws to impose changes in country. There are various act in respective of
employment, contract and company having different polices to mange the overall business
activity. As K company had various option to from the business entities in UK as sole trader,
partnership firm and company. Burt they prefer to choose the limited company to enjoy various
benefits and also manage funding easily. At last the report is concluded that various solution is to
be resolve their issue in respect of appointing the arbitrator.

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