Business Law Report: K's Legal Compliance and Dispute Resolution

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Business Law
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Table of Contents
Introduction....................................................................................................................................................3
Task 1.............................................................................................................................................................3
Task 2.............................................................................................................................................................5
Task 3.............................................................................................................................................................6
Task 4.............................................................................................................................................................8
Conclusion.....................................................................................................................................................9
References....................................................................................................................................................10
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Introduction
For any business enterprise, the laws of the businesses supports in providing direction to the
business to run its practices in ethical and fair manner. Business law not only helps the
businesses to achieve their goals but also assist the businesses to establish its identity in long run.
This assignment main motive is to explore the areas of the English lawful structure. Further, it
discusses about the laws which are applicable on the business and its impact over the business
task by examining the configuration of the business. It highlights and discusses about the
methods for settle on the disputes and related solutions. In the end, most appropriate legal
solution is advice which assists in resolving the disputes of the business.
Task 1
For providing knowledge to the staff in relation to the legal system of England by introducing the
several lawful sources that assist the Parliament of the United Kingdom in enacting the laws and
regulations. These sources include European law where it states that the law passed by the EU is
applicable on its members. Next is the Legislation, which is the imperative source which is
pronounced by the Parliament with the assistance of both houses. Next is the Case Law, which
plays vital role for the creation of laws as well as statutes. Next are the treaties, where two or
more countries signed on an agreement to enhance the practices of trade and commerce for
example, the Treaty on the European Union Functioning (TFEU) (Huxley-Binns, et. al., 2017).
Further, the next significant source is the courts, which assist in pronouncing decisions and
provide guidance to the lower courts to work within their jurisdiction.
Further, as per the procedure for passing the bill as per the need and requirement in the country.
The initial stage of for passing the bill is the First Reading, where the bill along with heading and
its content is read out in the Houses named Lords and Commons (Zander, 2015). Second
Reading consist the discussion on the bill by the members of the Parliament of two of the Houses
that is Commons House and Lords House (Rogers and Walters, 2015). Committee Stage,
evaluation of bill is done thoroughly and Report stage, where the suggestions given by the
members for further improvement in the bill. Third reading where the approval on final
amendment is given and bill becomes law with the permission of the Queen.
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Figure- Bill making method
Source-By Author, 2019
To run the business in successful manner, it is significant that K abide with the legislation and
provisions mentioned and applicable over the business. In this context, the Companies Act 2006
provides guidance to the K to run and comply with the rule and regulations mentioned under the
Companies Act, for determining the duties and obligations of the company directors and senior
authorities in both the running and formation process. Further, it is crucial that K must fulfill the
provisions of the Road Traffic Act 1968 while delivering the food to their client and customers
so as to maintain safety of themselves and other during this process. Employment law guides
employees of the company to fulfill and must follow the rules and regulations mentioned under
the Act while working at the workplace for conducting the operations in reasonable way with
due diligence and follow the company code of conduct (Hedley, 2016). Further, it is significant
that the K must obey with Food Safety Act 1990 so as to protect its customer from unfair
activities and provide protection to the customers by serving good quality of food by tying up
with fair businesses. Moreover, it is important that K must fulfill with the provisions of the
Contract law so as to indulge in the contractual obligation by maintaining fair practices. As per
the English Contract law, it abides K to engage in good practices while dealing with customers
and restaurants.
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Task 2
In this task, K involves in the number of deals for delivering its services to their customer by
providing them food at home. In this situation there are several factors are evaluated to consider
both employed and self employed person to understand the concept and assist the K to employ
the worker in the business as self employed or employed. In the businesses, there are both types
of employees who work in the industry and both of them face possess both merit and demerits.
As per the law of the employment, it consist the rights that assist in provide protection to the
employees against the malpractices of the employers at the occupational place. In this context,
contract law also assists the K to involve in fair dealings with other parties so as to protect them
against unfair dealings.
In the case of Pimlico Plumbers, the court decided that Plumbers control over the Smith as an
employee and court declared that smith work as an employee under the Pimlico Plumbers. In
relation to this, employees of the company or any business organization involves into the fair
dealings (Prassl, 2017). In case of Short v J W Henderson Ltd [1946], the difference between the
two is that employer has the authority to determine the hours of working, wages and dismissal
terms and conditions. Further, employees are very much involved in the business as per the
guidance and direction provided by the employer. Employees needs to pay income tax on their
income but in case of self employed there is no requirement to pay taxes in their income. In case
of employees, they receive wages but in case of self employed, they received payment as per the
profitability of the business. In case of employees, he is completely under the direction and
control of the employer but in case of self employed; there is no control of other person
(Kraakman and Armour, 2017). The working hours and duration is upon the wish of the self
employed person but in case of employee the working hours is set by the employer. In case of
employed person, it is require implementing employment contract but there is no such
requirement in case of self employed.
As per the given scenario, the business and the vehicle used for the purpose of delivering the
meals is under the K control and it is vital that the couriers are abide with the direction of K and
work according the provided instructions of directions. Working hours and work throughout the
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day is also determined by the K. Hence, it concludes that the K’s couriers are treated as
employed person not the self employed person.
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Task 3
According to the scenario given in the question, it is advice by the accountant of K to set up the
limited company. There are several other options that are available with the K and can opt any of
the option as per the nature and business scope. The options that are available to the K and can
be considering it for set up as a business type on the basis of its merits and demerits. In relation
to this, there are several option are evaluated on the basis of which K can decide to set the
limited company or can opt any other option.
In this context, the very first option is the sole proprietorship, where there is single and
independent possessor. The process to form this business is easy and not very complex among all
the categories of the ownership business (Dams, 2016). In this, the risk related exposure is small
comparatively from other businesses but single owner can loss all his or her business assets, in
case of insolvency and winding up situation. There is no requirement to share or distribute the
profits of the business to other and liable to take the decision in relation to the business
independently. The main merits of this business are that this business is easy to dissolve and set
up and no additional expense is records to be incurred as in case of partnership or company. On
the other, cons of this business are that the options for raising finance are limited and in case of
the death of the owner, the business is also come to an end.
Second option with K, is the partnership business where parties with the combination of two or
more partners contribute in business resource as per the value and ratio determined in advance.
The main pros of this business is that this business is also easy to form where their no restriction
in admission of new partners for sharing in the business profits and losses. Partners possess
responsibilities of the ownership and liable for taking decision of the business (Taylor and Emir,
2015). But the main cons of this business is that this business is exist for the limited time period
and depend upon the wish of the partner because if any partner wants to dissolve the partnership,
then the whole partnership need to be dissolve. The profits being share among the partners and
the partners are answerable for liabilities and debts of the business and imbursement with the
personal assets.
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The next option is the Company, which is formed and regulated as per the Companies Act, 2006.
This business provides protection to the business owners for contribution up to the limited
amount that is invested amount. Due to separate entity which is formed legally have the power to
enter into the separate agreements (Corwin and Ciampi, 2018). The process of formation of the
company is complex and complicated which require several legal requirements that need to be
follow with the preparation of various documents. Behind the company, its Board of Directors
are accountable for managing its function and responsible for taking all the decision on company
behalf.
If the company has limited liability, then its members are completely protected and no require
contributing from their personal assets. There is flexibility in distributing the income and
dividends to its shareholders and there are numerous options are available for raising the funds
for the company.
For the management of the above businesses, director and senior level authorities play crucial
role to manage the business in accordance to their duties and responsibilities stated. For funding
the above businesses, there are several options are available in this context includes debt, equity,
funds from banks, loans and with the assistance of relatives.
Among all the above option, it is recommended to K to opt for the Limited Liability Company as
it is the best option by seeing its pros and cons, comparatively to other businesses.
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Task 4
Due to involvement in the several legal disputes in which K is indulge with the suppliers of IT
which finally leads towards the expensive and time consuming process. It is imperative to choose
other available option which is recognized by the courts to get their dispute resolved instead of
going to the courts. In this context, the ADR methods can be opted by K to get their difference
resolved with the IT suppliers (Borisov, 2015). In relation to this, Alternate dispute methods
include arbitration, conciliation and mediation. This method help out the parties to get their
problem determined as an alternative available other than courts. This method saves the
unnecessary cost and time sent for waiting to the justice of courts. It is an optional method and
with the available alternative, parties can choose the best one.
Arbitration is the method where the clashes and dispute is submitted with the parties to resolve
the dispute as agreed by the parties for the appointment of third person. This is the method of
disagreement promise and is promised to the parties to get their differences resolved with the
engagement of arbitrator for resolving the disputes of future (Reyes and Gu, 2018). This
procedure is completely confidential and assists the parties to restrict the access of the
confidential information published to the third parties.
Mediation is the procedure of wide applicability of the method of ADR where the mediator is
the one who provide goods communication between the disputed parties and arbitrator. The
mediator is the one who provide guidance in the settlement of differences for dispute resolution
decisions. Mediator enhances the communication and decision between the parties so as to know
about the reason behind the disputes and clearly resolve the matter with appropriate advices.
Conciliation is also the process which provides advice that helps in determine the matter of
dispute in accordance to the circumstance of the parties and provide guidance in such a way so
that the parties reach an agreement through discussion and negotiations
(McGregor, 2015). Conciliator decision is based upon the flexibility and rightfulness of decision
which is in the best interest for both the parties.
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Among all the above discussed method, the best ADR method that needs to be opted by the K for
resolving his clashes with the suppliers of IT is the Arbitration method. With the above merits
and demerits of this method, this is the best from the various available alternatives. In this both
the parties can choose the Arbitrator with mutual consent to get suitable resolution.
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Conclusion
In the ending of this report, it wraps up that the laws of the business plays effectual and
proficient role in maintaining the company functions. It is imperative for the businesses to fulfill
the obligations of the business by following all the business rules and regulations. Further, for
long sustainability and credibility of the business, it is decisive that the business must abide with
the laws. As per the above discussed legislations, it is significant that the K and its business must
act accordingly and direct the other, as per the condition state under the laws. With this
assignment, learners get prospect to enhance its learning in the field of company laws and it also
assist K to decide its dispute with the ADR technique.
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References
 Borisov, V., 2015. Online Dispute Resolution under UK Legislation. Russian Journal of
Comparative Law, (2), pp.54-60.
 Corwin, L.D. and Ciampi, A.J., 2018. Law Firm Partnership Agreements.Law Journal
Press.
 Dams, A., 2016. Business Law for Students. 9th ed. London: Pearson
 Hedley, S., 2016. Making sense of negligence. Legal Studies, 36(3), pp.491-512.
 Huxley-Binns, R, Martin, J and Frost, T. (2017). Unlocking the English Legal System.
Taylor & Francis.
 Kraakman, R. and Armour, J., 2017. The anatomy of corporate law: A comparative and
functional approach. Oxford University Press.
 McGregor, L., 2015. Alternative dispute resolution and human rights: Developing a
rights-based approach through the ECHR. European Journal of International Law, 26(3),
pp.607-634.
 Prassl, J., 2017. Pimlico Plumbers, Uber Drivers, Cycle Couriers, and Court Translators:
Who is a Worker?.
 Reyes, A. and Gu, W. eds., 2018. The Developing World of Arbitration: A Comparative
Study of Arbitration Reform in the Asia Pacific. Bloomsbury Publishing.
 Rogers, R and Walters, R. (2015). How Parliament Works. Routledge. 7th Edition.
 Taylor, S. and Emir, A., 2015. Employment law: an introduction. Oxford University
Press, USA.
 Zander, M., 2015. The law-making process. Bloomsbury Publishing.
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