Business Law Report: Nature of Legal System and Dispute Resolution

This report provides a detailed analysis of business law, focusing on its relevance to the company KANGO. It begins with an introduction to the UK legal system, including the roles of Parliament, common law, and European Union law. The report then examines the impact of business law on organizations, particularly in the context of employment, differentiating between employees and self-employed individuals, and referencing the case of Pimlico Plumbers v Mr. Smith. The report further explains the formation processes of various limited business organizations such as sole proprietorship, partnership, limited liability company, and corporation, offering guidance on the incorporation of a limited liability company. Finally, the report explores alternative dispute resolution (ADR) methods, such as mediation, arbitration, and conciliation, providing suitable ways to resolve disputes within business organizations, using a case scenario between KANGO and its IT supplier. The report concludes by emphasizing the importance of business law for organizational decision-making and achieving positive outcomes.

Business Law

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Detail discussion on the nature of legal system..........................................................................3
TASK 2............................................................................................................................................4
How business law impacts on any of the business organisations...............................................4
TASK 3............................................................................................................................................6
Explain the formation process of different types of limited business organisations...................6
TASK 4............................................................................................................................................7
Deliver the suitable way to resolve the area of dispute within the business organisations.........7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business law is understood as the law which governs the commercial sector of a nation.
This law is important because it helps to take any of the organisational decision which assist to
bring positive outcomes. The cases of business are dealt under the branch of civil law. This
project will have the detail information about business law and how it needed to be governed. All
of the advices in this particular project will be given to KANGO(K). They deals in the sector of
delivering the meal services to home and they are involved in this sector since 2016. Some of the
topic which will be covered in this respective project will be related to nature of legal system and
and how does it impacts on any of the business organisation. There will also be the explanation
on the topic of formation of different types of limited company and it discussion will last till
delivering the appropriate solution to dispute.
TASK 1
Detail discussion on the nature of legal system.
In this respective question, the management system of K have realised that they must
give some basic knowledge about the legal system of UK as that can be very effective for them
to achieve the desire goals. The knowledge of legal system will help KANGO to take most of the
business decision and that can be effective too.
The legal system of UK is very lengthy and every laws and regulation are well framed
due to which it helps to take any of the business decision. The power to pass any of law has been
given to the House of Parliament as they are the Sovereign body and due to no one has the rights
to interrupt their proceeding. The main focus of UK parliament while commencing law is that
every should be benefited from any of the particular law so that any kind of disputes cannot be
raised in future (Cameron, 2017). The session of Parliament always starts by the speech which is
being delivered by authorised member of House of Lords i.e., Queen. There are seven different
steps which need to be considered while commencing law in UK and they are first reading,
second reading, committee stage, report stage, third reading, House of Lords and obtaining
Royal Assent. All of this steps must be considered to commence a better law within the
organisation.
Although, various steps need to be followed while commencing any of the law but still it
is said that government of UK doesn't relay on single method to commence law. There are other

sources too which are being involved for taking any of the business decision so that unnecessary
issues doesn't arise and every sections can be covered easily. Detail information about the other
sources has been mentioned below:
 Act of Parliament: The main source of UK for any of the law is parliament and they do
there working in effective manner and even the result of any of the business organisation
shows that too. For the better outcome and laws, parliament do seeks the advices of
general public (Allen, 2017).
 Common Law: The main motive of this law is to cover all of those law which has been
not covered by any of the other sources of law and that is the reason that chances of
errors in UK law is very low. The body who has been authorised to commence common
law is Judges of different level of courts as per the demand and requirement of law.
 European Union law: This source of UK law has been very effective because most of the
law do come from this source. This law mainly covers the area of criminal sector and
even business organisation too. In UK, it is necessary to comply the laws and regulation
of EU law.
 European Convention on Human Rights: It has been also the key factor for UK in
introducing law. This source has the responsibility to commence the law which are
interrelated to the rights of any of the legal person. There are various law and regulation
which has been commenced by the ECHR for example: Equality Act, Equal distribution
of Wages and many more (Tushnet, 2017).
If KANGO can be capable to give knowledge about all of this sources and ways, then it
will be very beneficial for them because it will make their work easier and faster. The business
like KANGO can be effected from this sources because it will not allow them to take any of the
decision of own and even it tells that how organisation can take best decision for achieving its
targets.
TASK 2
How business law impacts on any of the business organisations.
KANGO have appointed numbers of staffs but they have given the tag of self employed
to them. Although, they have been given the tag of self employed but still they are required to
wear uniform and inform the management if any one of them wants to take leave.

GIG Economy
It is the theory which clearly distinguish that who will be counted as employee and who
will not be included. Here, any of the person who has been hired for short period of time then
they will not be counted as the employee of an organisation. If person is hired for more then the
period of one year then they will be counted as the permanent employee of the organisation and
they must get each and every rights of workers (Bayern, 2016).
Classification between employed and self employed
Self Employed Employee
It is the situation where people is required to
take their decision of own to earn profit
It is defined as the situation where people do
work for other to earn certain amount of
money.
Employment law doesn't apply in this situation. Employment law do apply in it.
There income is shown under the head of B&P. This is shown under the head of salary.
Case: Pimlico Plumber v Mr. Smith
It is one of the famous case where it was decided by the judges that Mr. Smith should be
counted as the employee of Pimlico plumber because he was working since very long period of
time and even rights of employee should also be given to him.
The case started when Mr. Smith filed a case against Pimlico Plumber who is one of the
self employed. But, Mr. Smith was also working for him since very long period of time but he
was unable to get any of the rights of employment law. Even income tax statement also shows
that Pimlico Plumber is one of the self employed and because of that he is not interested to give
any of the rights of employee's to Mr. Smith.
In this case, if KANGO worker will be counted as the employed of K's business then
most of the work could have been managed in a systematic manner and even the output would
have been outstanding (Swanson and Frederick, 2016). There would be compulsory obligation
on the employee's that they must follow the instructions which are given by the head of
department. Even KANGO will also required to give the every single rights which is mentioned
under employment law.

TASK 3
Explain the formation process of different types of limited business organisations.
The accountant of K is advising them to incorporate any of the limited company as there
are various rights and benefits are being provided to them. As company wants to focus more on
limited company, there are several types of organisation which can be included. The detail
method of formation of limited business organisation is explained below:
Sole Proprietorship: Smallest form of organisation is sole proprietorship where there is
no involvement of other person and because of that it becomes easy for organisation to operate
any of the business activity at smaller platform. To form any of the sole proprietorship only
registration should be by the nation of person who will manage day to day activity.
Partnership: This types of organisation can be setup when couple of person comes
together for the common motive. The most important thing under partnership is that daily basic
activities are managed very easily. Whenever any of the business organisation wants to
incorporate partnership firm they are required to form a partnership deed through which working
roles and responsibility can be given to every individual (Hansmann and Kraakman, 2017). Once
partnership deed is prepared it is necessary that partners must register the organisation under
partnership act and in final stage they are required to submit all of the documents in Companies
House.
Limited Liability Company: This types of organisation is are capable of performing
their business activities are greater platform. Number of members are involved in it due to
which it become easy to take any of the business decision. The formalities which are required to
be complied in it are little bit length as compared to other form of business organisation. The best
benefit of this form of organisation is that power of suing has been given to them. The legal
method and process to incorporate limited liability has been explained below:
 Name is needed to be decided with the help of online registration portal of company.
 Address should be decided for operating business activities.
 Member list is needed who will manage all of the activities of a company.
 Once all of this activities are completed, it is necessary that Memorandum of Association
and Article of Association should be drafted (Morley, 2016).
Corporation: this types of organisation are very helpful for operating any of the business
activities on a bigger ground. The process of taking any of the business decision is very crucial in

it because number of people comes together to perform business activities in it. This types of
business has the concept that it will never end once it has been incorporated. The legal way to
incorporate corporation is explained below:
 Name is mandatory and must be different.
 Address is also needed to be decided.
 First director and first shareholder has the huge role to plays.
 MOA and AOA is must (Tepe, 2016).
 SIC code has to be obtained.
After completing all this formalities, it is necessary that all that documents must be
handed over to Companies House.
Among all of this companies, KANGO should try to incorporate Limited Liability
company as it will help them to perform all of the business activities in systematic manner. In
addition they will be capable to sue and be sued. Also, proper team will be there which will help
to take any of the business decision.
TASK 4
Deliver the suitable way to resolve the area of dispute within the business organisations.
Case Scenario: There is the dispute between KANGO and its IT supplier and now they are
willing to solve it through the process except then court proceeding
Alternative Dispute Resolution
Whenever there is a need of settling disputes between 2 or more then two parties
alternative disputes resolution is used. This process does not involve any legal actions or legal
binding all that matter of conflicts are solved in a private forum or are solved out of the portals of
court. It is the process which comes up with a long lasting solutions of the problems, greater
satisfaction, and improved relationship without consuming more money and time. These
involves variety of processes to resolve disputes :
Mediation: In this process of dispute resolution a neutral person is being hired who is not
biased on behalf of both the parties known as mediator (Raz, 2017). Mediator is the person who
communicate with both the parties and ask them to come on mutual agreement to solve the
disputes.

Conciliation: It is also among one of the method through which dispute is solved. The
main motive of conciliator is to find the best possible way to solve it. Conciliator are appointed
in it. It is said that party is required to reach near to the agreement. There is no much and more
difference in both mediation and conciliation (What is conciliation, 2018).
Arbitration: It is one the of the process of which is widely in used to resolve the
dispute. It is said that this process has been very effective in present scenario because legal
binding is there in it. The main thing that is needed to be focused in it is that number of
appointed arbitration should be in odd numbers (Rohlin and Ross, 2016).
Among all this method, it will be beneficial for IT department and KANGO to adopt
arbitration method for solving the range of dispute between them. It will also be beneficial for
them because legal agreements will be prepared in which similar form of dispute doesn't arise
again.

CONCLUSION
It is understandable that business law has its own importance where it teaches that how
any of the decision is required to be taken. The legal system of UK has its own rules and
regulation and it must be followed else legal action can be taken very easily. Number or laws and
act do commence every day and it is said that they all have different nature and way of impacting
on business organisation. The process of formation of company should be followed in a
systematic manner else it is not possible to operate any of the business activities.

REFERENCES
Books & Journals
Allen, W. T., 2017. Our schizophrenic conception of the business corporation. In Corporate
Governance. (pp. 79-99). Gower.
Bayern, S., 2016. The Implications of Modern Business–Entity Law for the Regulation of
Autonomous Systems. European Journal of Risk Regulation. 7(2). pp.297-309.
Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
Hansmann, H. and Kraakman, R., 2017. The end of history for corporate law. In Corporate
Governance (pp. 49-78). Gower.
Morley, J., 2016. The Common Law Corporation: The Power of the Trust in Anglo-American
Business History. Colum. L. Rev. 116. p.2145.
Raz, J., 2017. The rule of law and its virtue. In The Rule of Law and the Separation of Powers.
(pp. 77-94). Routledge.
Rohlin, S. M. and Ross, A., 2016. Does bankruptcy law affect business turnover? Evidence from
new and existing business. Economic Inquiry. 54(1). pp.361-374.
Swanson, D. L. and Frederick, W. C., 2016. Denial and leadership in business ethics education.
Business ethics: New challenges for business schools and corporate leaders. pp.222-
240.
Tepe, M., 2016. In Public Servants We Trust?: A behavioural experiment on public service
motivation and trust among students of public administration, business sciences and
law. Public Management Review. 18(4). pp.508-538.
Tushnet, M., 2017. Comparative constitutional law. In The Oxford handbook of comparative law.
Online
What is conciliation. 2018 [Online] Available Through: <http://www.dispute-resolution-
hamburg.com/conciliation/what-is-conciliation/>