Business Law Report: Legal Framework for KANGO (K) Company Operations

This report provides a comprehensive overview of business law, examining various sources of law, including European law, UK legislation, and common law. It analyzes the role of government in law-making and the application of statutory and common law in courts. The report delves into the impact of company law, employment law, and contract law on businesses, using the KANGO (K) company as a case study. It explores the formation, management, and funding of different types of business organizations and concludes by recommending legal solutions for resolving disputes. The report also differentiates between regulations, legislation, and standards within a business context. The report also refers to a case study involving Pimlico Plumbers, highlighting employment law issues. It further discusses employment status, benefits, and the importance of contracts within the business framework.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 Different source of Law:.......................................................................................................1
P 2 The role of government In law making and also analyse the statutory law and common
law is applied in the court...........................................................................................................2
TASK 2............................................................................................................................................3
P 3 Illustrate with examples about the impact of company law, employment law and contract
law has a potential impact upon business...................................................................................3
TASK 3 ...........................................................................................................................................5
P 4 Different types of business organisation are legally formed................................................5
P 5 Evaluating the process of managing and funding the business organisation........................5
TASK 4 ...........................................................................................................................................8
P 6 Recommending legal solutions for revolving the range of dispute......................................8
CONCLUSION................................................................................................................................9
REFERENCE ................................................................................................................................10

INTRODUCTION
Laws means the rules which every individual, community and society has to follow to
maintain proper living standards in the country and also there are imposed with penalty is anyone
fails to follow the rules. Business law means that rules which are made to be follow by the
businessman. This includes the day from staring the business, to the day when it ends means
dealing on goods and services, clients, customers and also majorly type of business is specified
in these laws. Present report is based on KANGO (K) company which was founded in 2016 by
Jay and Alex and they engaged their business in home delivery meals and also deliver the food
online.
Report will include the nature of legal system and also comparison of statutory law and
common law applied in the courts. It also includes the impact of law on the business and also
some illustration to link with the K company. Further its includes the formation of different type
of business organisation and their management and funded in the company. Lastly it includes
legal solution to resolve area of dispute.
TASK 1
P 1 Different source of Law:
English law system is the body which is created by state that enforce all authorities to
follow described sanctions in order to make any kind of judgement. English law system has
several rules and regulations that describe acceptable behaviour.
Parliament is considered as responsible body that makes law in UK, content of law are
determined by European union. British legal system ensure that all kind of legal disputes are
resolved in front of court and sanctions are designed that defines penalties or compensations for
particular wrongful activity (Alix Admas, 2010).
One of the major characteristics of English law system is that it has less influence of
Roman law. Judges are given creative powers to make correct decision on any matter. Judges are
act as principal law makers and parliament supersede their power. According to English legal
system judges are bound to follow relevant precedents and accordingly they have to maketheir
judgement. Another important feature of such legal system is that it has adversarial nature.
Laws means the rules which are imposed on human being or on company's to behave
properly within the society and other person whom they are dealing for business purpose. There
are various sources of law such as European law, Uk legislation and common law. K company
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had decided to trained their staff and provide knowledge regrading various legal system. To
establish a company with certain norms is beneficial so that they can run the company smoothly
without any legal issues (Adams, 2015). European law, parliament and the court are three main
sources of law. As European law, it is a law enacted and operated by the members of European
and has political, social and economic policies to represent the decisions against the members of
their trade union. They have the power to make and amend the laws as they are the first
constitution which provides law to the country and also applies throughout the members of the
country. There are various sources of European law such as the treaties, regulations, directives
Common law is source of law which is used by the judicial decision in case of precedent which
means that the action and decision are already judged by the courts. It includes civil cases,
criminal cases(Ungerer and Ziaka, 2017). There is huge difference between criminal law and
civil law system. The main purpose of criminal law is to regular behaviour so that criminal
activities can be minimised, on other hand civil law’s main agenda is to give rights to people that
may help in governing their relationships with others (Alix Admas, 2010).
Parliament has 785members and they are elected by people. It has democratic supervision
over commission. Advocates support the claimant and they pass opinion in court. Furthermore,
court is another essential source, once court pass any decision then it get immediately effective.
UK legislation or Statutory laws are usually regulated by the legislative body and they are
passed by the common law and regulatory acts to enact the statutes in the constitution. They are
written judgement and normally decision are taken on the basis of allotted judgement mentioned
in the legislature(Allen and Kraakman, 2016).
P 2 The role of government In law making and also analyse the statutory law and common law is
applied in the court.
While making law the role of government is to analyse the aspect which is to be changed
while implementing or entering into new aspect in the company structure. The role of
government is to analyse the importance of implementing the law and also find out the need to
change the rules so that it will result in better understanding and more productive use for human
beings and benefits to society(Twomey, Jennings and Greene, 2016).
Parliament is the leading body where all the law is made, judges work as law makers but
their power are being superseded by parliament.
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The cases for statutory law and common law applied in the court as when the case of
common law arise company give judgement on the basis of previous decision as they already
provide decision similar to that case whereas in statutory law, court provides decision on the
basis of rules and regulation and that are written in the legislation of law(Common Law vs
Statutory Law, 2019).
Parliamentary procedure of bill making
First it goes into parliament for first reading, second debate is done on this bill by other
ministers. Then it reaches to committee stage where representatives examine the bill, next stage
is that where findings are presented and amendments are proposed. Now it goes for reading and
short debate is done. Before finalisation of bill, it becomes act of parliament and law gets pass.
After that date of implementation is decided and specified.
M 1 Effectiveness of the legal system in terms of recent reforms and development
Effectiveness of legal system in terms of developments occurs to be on positive note as
citizens are more confident and satisfied with the court decision and also have faith in judgement
of courts. Civil justice protect the rights of the citizen and provide them freedom to take the
decision and mange their life which result in more productivity and positivity in the
environment(Beatty, Samuelson and Abril, 2018).
As the case of Pimlico Plumber v Smith Case, this case states that Mr. Smith was the
plumber in Pimlico Plumber company from August 2005 to April 2011.He suffers from heart
attack which result is that he is incapable to handle the company issues and can't perform the job
efficiently. Mr. Smith asked for time deduction for their working hours which the company
refuse to do that and fire from the job. With this behaviour Mr Smith file a suit against the
company for employee discrimination made on grounds of disablement under the Employment
Rights Act.
The decision of the case was discussed in 2018 over the employment status of an
independent worker Smith, working on contract basis in Pimlico company. The decision is in
favour of smith and company are instructed to follow the condition and had a tight control over
the branded name of the company to overreaching the contract.
D 1 Evaluate the legal system and law with evidence drawn from a range of different
judgement with example.
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Legislations which impact the K company are in terms of not having proper knowledge
of legal rules and regulations made by the government to their staff.
Employment status checklist
Factor Self employed Employee
Obligation Work as per own term and condition. Work under the guidance of employer.
Controlling
right
Control and manage their own work. Employers control all the action of the
employees relating to the work schedule.
Equipment
used
Brings their own tools(Davidson,
Forsythe and Knowles, 2015).
Employer provides all machinery,
material and equipment to further carry
their work.
Employme
nt benefits
Not enjoy many benefits as their
income is the only benefit earned.
Benefits in terms of pension, free meal,
sports club, parking(Allen and
Kraakman, 2016).
TASK 2
P 3 Illustrate with examples about the impact of company law, employment law and contract law
has a potential impact upon business.
Company Law has potential impact upon the working of the K company. As K company
deliver meals through online services to the customers which results in making rules and
implementing laws to the staff of the K company. Many employees work with the K company
which is established in Ealing, a densely populated area of West London. They charge extra
money from customers to deliver their products timely. So company make rules as courier
workers must deliver the notice before 48 hours if they are not available on a particular day. So
that it doest reflect the company delivery services. The impact of law is that company can loss
the delivery services workers but they continue to maintain trust among customers(Types and
Forms of business, 2018).
Contract law describes duties of seller that is essential to be fulfilled by the employer. As
in the case of K, firm fails to provide timely delivery of food to consumers thus it fails to fulfil
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its time of delivery duty. In such condition employer has legal obligation because he has not
delivered hot food to consumers. In such condition company is bound to refund all the amount
which is paid by buyer for the goods and services that affect brand image of the firm to great
extent.
Employment law is implemented by the company on their courier service workers when
they deliver meals to their customers and on their way if they met with an accident which result
to loss of life or any other issue than in that case company is liable to pay the loss suffered by the
worker. But this law applies with condition that if that worker is on duty and carry the bicycle
allotted by the company having their brand colours. Then only that person is eligible for the
employment laws of the company and can grab the recovery money from the company. The
impact which impose on company is that they have to make clear laws regarding the polices and
also have to provide proper safety kit to the workers at the time of duty(Basedow, 2017).
Before appointing the courier service worker K company has to make a contract with the
courier company regarding various norms which they have to follow while working with the
company. The company major rule is to wear K's uniform while delivering the meal and also
have to carry the K's courier code of conduct so that if they met with any injury at the time of
duty they can easily be compensated for the loss they suffer while delivering the product. The
impact is that company has to closely examines the moment of workers so that they can easily
crack the record and terminate him from the services(Twomey, Jennings and Greene, 2016).
M 2 Difference between regulation, legislation and standards.
The regulation, legislation and standard differentiate in K company process as to rules
made by the company has top be strictly followed by the couriers services which result in to
regulate the company to bound the rules to workers to follow them so that they can neglect the
situation which can be happens while delivering the meals. Govt. impose certain rules which
company has to follow regarding the health and safety norms of the workers. As this is the
standard's procedure to maintain a back up plan for the employees if they are taking holidays or
absent at work place so that they can track the proper record of the courier service(Cox, 2015).
If workers are employed the main impact on K company is that they can easily handle the
situation and track their customers which affect the earning procedure of the company as they
mostly earn by delivering their meals to customers. And also the complaints for legal issue are
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less than they carry safety kit with them which help them to avoid natural calamites(Ungerer and
Ziaka, 2017).
TASK 3
P 4 Different types of business organisation are legally formed.
K's company accountant had advised the K company to register in any of three business
organisation that are legally formed whether it can be sole proprietor company or limited
company or in form of partnership firm Sole proprietor and sole trader are that person who
individually carry the business activities and also occur the losses itself without any help from
others. The person liability for carrying out the business activities are unlimited in sole
proprietor(Picciotto and Mayne, 2016).
Limited Liability company is established by the state laws. So the company personal
asset are protected and secured in this structure. In this the owner itself is responsible in case
when they committed fraud in the company or any change in data which arises losses to the
company or any illegal work committed in the company internal matters. The liability of the
directors and the members are limited to the extend(Cameron, 2017).
Partnership consist of two or more individual to establish a company and form a
partnership business. In this each person contribute money and loss occurs in the company
activities. They have an agreement for sharing profit and loss of the company as well. All
partners are bound to follow the agreement of the partnership deed(Davidson, Forsythe and
Knowles, 2015).
P 5 Evaluating the process of managing and funding the business organisation.
The process of managing and funding different business organisation are
 Sole proprietorship is that business which is established for income tax purpose. They are
the individual owner so they itself suffer the profits and loss of the company. They make
the less complicate in the company structure and their working is also easy. They manage
the funds through personal saving and also invest them by their saving only as they are
the single owner of the company(Cameron, 2017).
 Limited liability company provides limited liability to the owners of the company which
are not personally liable for company debts as they managed their business operation by
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raising money or inviting other members in the company to provide funds to the
company. They evaluate their own funds to raise the market share of the company(Forms
of business organisation, 2019)
 In Partnership, funds are managed by the partners itself as it is mentioned in the
partnership agreement that they share the profit and loss of the company and also equal
funds are raised in the partnership firm. They manage their resource in business
organisation as by spending equal funds and loss to the company to gain profit at the end
when company is dissolved(Basedow, 2017).
M 3 Advantage and Disadvantage of formation of different types of business organisation.
Company Advantage Disadvantage
Sole proprietor  The advantages of the
company is that profit
earned from the
transaction activities are
directly credited to owners
personal account.
 They acted within the acts
and rules of law.
 Dissolution of the company
process is easy(Ungerer
and Ziaka, 2017).
 The major aspect is that it
has unlimited liability. So
personal assets of the
company are at huge risk.
 The procedure to convince
a high skilled employees is
tough to motivate them
towards the
company(Miller and Jentz,
2017).
 To raise funds in the
company occurs due to
huge risk saviour in the
market because they have
to raise it from the
personal saving.
Limited Liability  The owners are the
members of the company
 Owners are liable if they
find any fraud and illegal
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and they are help liable to
take decision and
judgement for the benefit
of the company(Beatty,
Samuelson and Abril,
2018).
work in the company done
by any other person which
result to bear loss to the
whole company(Davidson,
Forsythe and Knowles,
2015).
Partnership  Company can raise funds
as two or more parters
working together.
 Risk factor is lesser as they
are on the sharing basis.
 Profits shared with all the
partners working in the
company.
 Partnership has a limited
life and it ends up with the
death of the partner(Cox,
2015).
D 2 Evaluating the use of appropriate legal solutions with alternative advice.
In case of Salomon v A Salomon & Co Ltd, Mr Salomon made and sell the leather boots
or shoes in the market and they establish their business into large scale. Their sons want to be the
partner of their business, so Mr. Salomon turned the business into limited company as Salomon
& co. Ltd. The company purchases the business of the company in £39,000. The purchase
consideration was deal in terms of £10,000 debentures over the charge on company assets
£20,000 in fully paid, £1 per share and the remaining balance in cash(Kubasek and et.al., 2015).
Within one year, company is incapable to handle their business operations and other
management area and hence its liquidation process is started for winding up of company. The
assets of the company are not sufficient to carry of the expenses or to meet the liabilities of the
company. For this liquidator, points Salomon responsible of company debt's. By this process
Salomon is sued(Miller and Jentz, 2017).
The judgement from high court stated that while at the time of incorporation of
company they have to check the procedure to carry out the business and at the end they insult
Mr. Salomon for not carrying the business properly and it is their personal liability to pay the
funds to the creditors of the company(Mann and Roberts, 2015).
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Legal personality: With the case of Salomon V Salomon the house of lords affirmed the
principles of the company being the serrate and diction from the directors of the company. This
concept stated that company is the legal and individual entity in the eyes of law having its own
assets and liabilities and funds to be raised and legal duties and responsibility to perform well in
the company internal matters. The directors of the company can not take into account any
matters till the corporate veil is pierced(Picciotto and Mayne, 2016).
TASK 4
P 6 Recommending legal solutions for revolving the range of dispute.
Legal solutions which can be adopted by the KANGO(K) so that there will be low cost for the
company in the litigation process and also there can be savage of time from the long process of
the court proceedings. The several legal solutions available for KANGO are as follows-
Arbitration-
It is the process in which voluntary submission of dispute by party is done. It is generally
applies in commercial dispute methods. This method empower arbitrator and this helps in
resolving consumer disputes. Arbitration includes the disposal of the disputes between the two
parties under litigation. The court appoints the third party who is an independent person. The
appointed independent person is called arbitrator. Arbitrator after hearing to both the parties
dissolves the dispute. KANGO can approach to the arbitrate tribunal for quick disposal of his
case with the customers(Beatty, Samuelson and Abril, 2018).
Mediators-
Mediation is the person who acts as middle men and helpin making communication
between both involved parties. They both disc uss their issues and find solution that may be win
win situation for both. KANGO with consultation with her customers can appoint mediators on
there mutual understanding. Mediators are the person not appointed by the court but by the
parties in disputes. They appoint the person to give a unbiased decision on the matters of
disputes. The appointed person does not have any powers against the decision to enforce it. when
both the party agrees on the decision of the mediator they consider it. The parties are not bound
to accept the decision by the mediator(Kubasek and et.al., 2015).
Negotiation-
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Negotiation is a type of treaty signed by the parties in disputes. In negotiation both the
parties negotiate on any decisions by themselves and there is no involvement of any such third
party that are arbitrators and mediators. Both the parties after being satisfied and mutual
understanding accept the agreement thereby the dispute settles. Here too no party is bound to
accept the negotiable offer of the other party. So, the company KANGO can offer a negotiation
caution to the customers for the loss happened to the customers for not providing the services on
time.
M 4 Compare and contrast different sources of legal advice and support for dispute
resolution.
Arbitrator and mediator are the independent person and the third party to the disputes
who do not have any underlying interest of their own. But there are difference between the two
that is the arbitrator is appointed by the court and the mediator is the person which is mutually
bought by the parties in disputes to solve their disputes with his expertise skills(Mann and
Roberts, 2015).
D 3 Effectiveness of legal solutions, legal advice and support for dispute resolution.
Arbitrate tribunal are opened by the court so that there is quick and dispersal of the small
court cases. Court appoints a third party who have no relation with the parties in context. So, the
company KANGO can seek help of arbitral tribunal to solve the matters for which the customers
filled the court case against it(Davidson, Forsythe and Knowles, 2015).
CONCLUSION
From the above report it can be concluded that British laws defined the laws as rules
implemented on human begins and business in relation to the society and company ethical
behaviour for the citizens of UK. Present report is based on KANGO (K)company which is
based on west London and deals in food and deliver their meals to their customers. In this study
there are various sources of law such as European law, UK legislations and common law which
includes civil law, criminal law. To determine the working proper checklist is made for analysing
the employment status of the company. Further K company provides various business
organisation to enter into the limited company. Lastly K company adopt arbitration to solve the
dispute with IT department to avoid lengthy and time consuming proceeding.
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