Analysis of KANGO's Legal Framework and Business Structure: A Report

This report provides a comprehensive analysis of the legal framework applicable to KANGO, a UK-based business. It explores the nature of the UK legal system, including legislation, case law, and European Union law, and its impact on business operations. The report examines different forms of business organizations, specifically focusing on sole trader, partnership, and limited liability company (LLC), and recommends the LLC structure for KANGO's expansion. It also addresses employment law, particularly the classification of couriers as employees versus self-employed individuals, and the associated implications for tax and benefits. Finally, the report analyzes a case scenario involving a dispute with IT suppliers and recommends alternative dispute resolution (ADR) methods, such as facilitation, mediation, and arbitration, to resolve the issue efficiently and cost-effectively.

The Legal Framework and
legal solutions

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................2
TASK 3............................................................................................................................................3
TASK 4............................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A legal system is defined as either common law, civil law or a mix of both. Businesses
while operated in UK need to follow all the legal compliances that are applied on businesses.
Business law helps in gaining knowledge regarding laws and impact of these laws on business
operations and decision making. Understanding the concept of business law will help in finding
legal solutions to business issues and their suitability. In this project report nature of legal system
and impact of the law on business of KANGO is reflected. Together with this different forms of
business organisations that can be established is described. Appropriate legal solutions as per
business law will be provided to various disputes.
TASK 1
KANGO is an business organisation that is established in London and laws that are
applied in UK will be applicable on KANGO organisation. The English law refers to the legal
system administered by the courts in England and Wales for criminal and civil matters. Legal
system is the procedure or process for interpreting and enforcing the law. It elaborates the rights
and responsibilities in a variety of ways. The UK has a parliamentary system of governance, with
the Westminster Parliament being the supreme law-making body (Zhang and et. al., 2015)
The English legal system helps in maintaining the basic structure of the society with
some enlisted behaviours. The rules and regulations that are mentioned in the law needs to be
obeyed and violation of these imposes penalty. Violation of the legal rules is measured and
identified by court of law or justice. Formation of the legal system requires information which
will be termed as basis of law making. Their are different sources that will help in formation of
the legal system in UK and these are explained as follows-
Legislations: These are the act of parliament that describes rules and regulations that
needs to be followed by all the citizens in the country. Constitution of UK is mix of written and
uncodified form. Large part is written an these are in the form of act or law passed by the
parliament and this is termed as legislation. This is one of the important source of laws in the
country (Teubner, 2017).
Case law: Decision of the court on an issue for which no specific law can be applied then
it is termed as a new source on the basis of which new laws for the country can be designed. To
develop a reliable law reports that carry facts of the case must be present to make new laws.
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European Union Law: United Kingdom is the member state of the European union and
all the laws that are imposed by the union will be applicable on UK. Laws of European union
will be served as new source that will help in law making for UK.
Legal system in UK is elaborated in two divisions one is civil law and other is criminal
law. Civil law is the body of rules that defines and protects the personal rights of citizens and
help in resolving disputes(Ölçer and BalliniOdum, 2014). Criminal law is the body of law that
deals with crime and the legal punishment of criminal offense. The English legal system is quite
effective because it is one of the oldest and is controlled with the one highest body that is
parliament. Rules and regulations are well defined in the law that provides punishment for every
crime. Laws in the parliament are passed through majority of both the houses. When House of
Commons and House of Lord passes a law in majority and royal consent is received for this then
the proposal becomes an act of parliament. A bill that is proposed by businesses that are
providing services of delivery can be known through online information available on site of
government. Together with this when any new bill is proposed an information is published in
newspaper and other media. Before establishing a business all the laws existing or proposed must
be known by KANGO operator to avoid legal issues(Koops and Leenes, 2014).
TASK 2
In the present case K has employed number of Couriers and designated them as self-
employed. These couriers are provided with a bicycle for delivering the orders which is in K's
brand colour. Uniform that is provided must be wear by them and a contract is signed with them
to follow prescribed code of conduct. When any courier is not any available then information
must be provided to operations office by giving notice of 48 hours. There are three types of
employees working in an organisation such as- worker, employees and self-employed.
Worker: A worker is any individual who works for an employer, whether under a
contract of employment or any other contract where an individual undertakes to so personally
any work or service. Workers are entitled to core employment rights(Kaiser, 2016).
Employees: The majority of people work in an organisation are employees. When
employment is provided under a contract of employment then individuals will be termed as
employees. Sometimes continuous employment needs to be provided to termed as an employee.
All the rights as per employee must be available to them.
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Self-employed: When employment is provided with no contract of employment then
individuals will be termed as self-employed. Self employed persons are their own boss and time
and charges for their work all are decided by them own.
In the current case scenario employees of K will not be considered as self employed
because couriers are totally controlled by operations department of K. As from the dress
uniform , to delivery vehicles is provided by the organisation. Together with this employees
needs to inform for any leave. A contract is also signed among employees and organisation to
follow code of conduct of the organisation. The organisation is lacking in some areas to mark
their employees are self-employed and they will be considered as employee in the business and
qualified to get all the benefits as an employee. The court use the term to define the couriers as
employees is that self employed people find their own work and no work is provided them by an
employer. KANGO organisation lacks in this and provides work to their employees. So, it can be
said that employees in the business are not self-employed(Gostin and Sridhar 2014).
This will impact the business as at least minimum wages must be paid to them and they
will be protected by working time regulations. Employment tax liability will be imposed on the
business based on employees income. Each employee and employer needs to pay 7.65% of the
employees income as employment tax. Federal unemployment tax will be paid by the employer
to provide unemployment benefits to the employees.
TASK 3
Establishment of a business with the correct form is very important for success of
business organisation. Their are various forms available in which a business can be initiated. The
choice for selecting correct form of business depends on the legal status of business and also on
requirement of funds and management system in an organisation. Various forms of business that
are considered for formation available for KANGO is described as follows-
Sole trader: This form of business is one of the most common among all that is used by
most of the individuals to establish a business. In this form of business operations are controlled
by an individual who is owner of the business. Contribution of funds as capital is made by the
individual only and no regal process needs to be followed to establish such business. Liability of
the owner is unlimited and personal assets can be used to settle debts.
Partnership: When two or more individuals come together to carry out an business
operations with a motive to earn profits then it is termed as partnership. It is governed as per
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partnership act and all the rules that will governs terms of the partnership will be mentioned in
the partnership deed. Capital contribution in partnership business is high as more individuals are
involved in this business. Establishing a business as partnership will bring more skills as each
individual is good at something(Fischer-Lescano and Teubner 2019).
Limited liability company: LLC is a relatively new business structure allowed by state
statute. LLC are the legal form of business that are established or incorporated as per law. This
form of business possess quality of a company to enjoy separate legal entity. Together with this
liability of owners will be limited up to capital contributed by them. Formation of LLC is more
complex then a normal partnership. LLC is est6ablished with following features such as limited
liability, continuity of life, centralization of management and free transferability of ownership.
Establishing a business as LLC is highly recommended to KANGO organisation because
business is operated at London and is planning to expand in some more cities. When business
will be started as LLC then it will leads to availability of funds that are required for expanding
business. Together with this business will possess separate legal entity that will make business
legally liable for any issue involved.
TASK 4
Providing legal solution in following case.
Case Scenario: following case of KONGO has a long term dispute with their it suppliers
which is creating several problems for both parties. In this case both sides have provided their
mutual opinion to refer to all options of alternative dispute resolution so that they can solve this
issue and provided should choose best option which will resolve it. This will save time and
money for both sides and one of procedures will be best applicable in given case
scenario(Domurath 2015).
Alternative dispute resolution(ADR): Such methods are created to resolve any dispute
which will just extend the time of court and wastage of money. the following solutions do not
involve court in any procedures and resolve matter within limited time and money. generally
people who do not want to disclose issue in public or their is no time to attend court proceedings
they choose such options. This method is widely used in united kingdom also many other
sections of the country. It has now become mandatory for people to get things resolved fast-track
and easily. This method has gained worldwide acceptance and mostly people now opt for this
only. The court rooms also, judges suggest & recommend using alternative dispute resolution in
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most cases where there is just a need of proper communication plus better negotiations over
terms between both parties.
 Facilitation: This type is very informal compared to other remedies of ADR. A third
party who is non biased neutral individual who will work for both sides, listen to their
point and perspective. This third party pre-assumes that parties seek to resolve issues and
want to negotiate terms for settling dispute. In this mostly solution is done through
telephonic conversation or emails.
 Mediation: Here, conversation is done through a mediator who will render his service to
help both sides reach a middle point of solution. The conversation part is done by parties
and providing their negotiation point as well. This is more like a day to day session
period where ultimately either solution is formed with both sides getting benefited or they
reach an impasse which does not lead to correct solution in case. This method has
different ways in which it can be completed such as:
1. Parties taking directly to each other face to face and mediator seeks common point to
settle(Bhatia, 2014).
2. Proposals are forwarded rather than taking and accepting them will resolve matter.
3. Mediator evaluates both sides and provides a simple solution on which both will settle
down and finish matter.
 Arbitration: this remedy is considered to be best method to resolve dispute without
involving court in procedure. Here, arbitrator is in charge he seeks upon all facts &
figures of case. Later he accompanies both parties either together or separately to discuss
all terms and loopholes to figure out whole dispute. This is less hectic as compared to
going to courts and rules, regulations implied are relaxed while negotiating terms. In the
other two methods one settles for both sides benefit but here the correct side shall win
case. Its a procedure of binding and non binding legal procedures as well. This means
that its sort of trail for parties and final decision taken by arbitrator for settlement shall
not be questioned later in future.
Recommendation: In following case scenario both parties should seek help from an arbitrator.
The best solution to resolve all their disputes plus so that this issues can never arise again in
future.
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CONCLUSION
The final summarisation of whole report concludes that this report consists of an proper
analysis of sources of law in united kingdoms. The government has provided legislative
principles to render help to all citizens. It has brief explanation of acts of parliament and several
other zones of business law has provided perspective. A proper explanation of acts of parliament
several bifurcations of law and several other aspects to understand concepts more clearly.
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REFERENCES
Books and Journals
Bhatia, V. K., 2014. A generic view of academic discourse. In Academic discourse (pp. 31-49).
Routledge.
Domurath, I., 2015. A Map of responsible lending and responsible borrowing in the EU and
suggestions for a stronger legal framework to prevent over-indebtedness of European
consumers. Consumer debt and social exclusion in Europe. p.155.
Fischer-Lescano, A. and Teubner, G., 2019. Regime-collisions: the vain search for legal unity in
the fragmentation of global law. In Critical theory and legal autopoiesis. Manchester University
Press.
Gostin, L. O. and Sridhar, D., 2014. Global health and the law. New England Journal of
Medicine. 370(18). pp.1732-1740.
Kaiser, J., 2016. Making a legal framework for sovereign debt restructuring operational. Too
little, too late: The quest to resolve sovereign debt crises. p.223.
Koops, B. J. and Leenes, R., 2014. Privacy regulation cannot be hardcoded. A critical comment
on the ‘privacy by design’provision in data-protection law. International Review of Law,
Computers & Technology. 28(2). pp.159-171.
Odum, E. P., 2014. The strategy of ecosystem development. In The Ecological Design and
Planning Reader (pp. 203-216). Island Press, Washington, DC.
Ölçer, A. and Ballini, F., 2015. The development of a decision making framework for evaluating
the trade-off solutions of cleaner seaborne transportation. Transportation Research Part D:
Transport and Environment. 37. pp.150-170.
Teubner, G., 2017. How the law thinks: toward a constructivist epistemology of law. In Legal
Theory and the Social Sciences (pp. 205-235). Routledge.
Zhang, C and et. al., 2015, February. Optimizing fpga-based accelerator design for deep
convolutional neural networks. In Proceedings of the 2015 ACM/SIGDA International
Symposium on Field-Programmable Gate Arrays (pp. 161-170). ACM.
Online
Employment Tax. 2019. [Online]. Available through:
<https://www.thebalancesmb.com/self-employment-tax-differences-399036>
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