Report on KANGO: Legal Framework and Business Solutions Analysis

This report provides a comprehensive analysis of the legal framework relevant to KANGO, a meal delivery service established in the UK. It begins by examining the UK legal system, its sources, and its implications for business operations. The report then delves into the impact of employment law, particularly the distinction between employees and self-employed individuals, using the 'GIG economy' concept and the Pimlico Plumbers v Mr. Smith case as examples. It explores the legal requirements for company formation, focusing on limited liability companies (LLCs) and comparing them to sole proprietorships and partnerships. Finally, the report addresses dispute resolution, specifically alternative dispute resolution (ADR) methods like conciliation and mediation, and recommends the best legal solutions for KANGO. The report provides a detailed overview of the relevant legal principles and their practical implications for KANGO's business practices, offering valuable insights for legal compliance and strategic decision-making.

The Legal Framework
And Legal Solutions

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Legal system of UK and its nature.........................................................................................3
TASK 2............................................................................................................................................4
Elaborate the possible impact of the law on a business concern............................................4
TASK 3............................................................................................................................................6
Discussion on limited company and how they are legally commenced.................................6
TASK 4 ...........................................................................................................................................7
Deliver the best form of legal solution to resolve the dispute................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The Legal Framework and Legal Solutions is defined as the law which tells about the
regulation that need to be considered during the course of business. It has its own importance
because all of the business are operated just because of this law. The file is based on KANGO
where appropriate advices will given by their appointed legal advisor. File will be explained in
four different tasks where first one will be related to legal system, second will connect to the
impact of law on business and when it comes to third task it will related to different types of
formation of company. Fourth one will talking about recommendation on legal solutions.
TASK 1
Legal system of UK and its nature.
As per the given scenario, KANGO has been estyablished in the year 2016, where they
delivers the meal services to its customers. The main source of income is just the commission
which they get from restaurant while delivering the meal. Here, they are required to understand
the importance of legal system of UK because that will help them to take better business
decisions. Even they are required to know the main sources of UK so that they can consider them
too.
Legal system of UK is so wide and lengthy as various process are required to be
followed. The legal system says that any of the of the laws and regulation which are commenced
within the country should be followed by everyone as legal system is equal for everyone.
Parliament is the sovereign body and because of the every single power in UK is with
government (Cox, 2015). It is very old legal system which follows the standard formate and
there are number of different regulation which has been commenced for business organisation.
Whenever law is required to be passed, it is compulsory that final approval must be obtained by
the monarch. The first session of Parliament always starts in the month of November or
December every year by the speech of Queen. In every five year, election process is conducted in
which general public select the member who are required to represent the local public as MPs in
House of Commons. There are 800 peer members in House of Lords who has final authority to
take any of the legal system. Whenever they commence any kind of law they are not allowed to
raise any sort of objections. It has been very effective legal system because the rate of crime is
always limited within the boundary of Great Britain. Although, it has been found that Parliament

is the main body but still there are other sources too which helps to form new laws and regulation
within the country.
Act of Parliament: They have the major responsibilities because member elected by
general public represent it and because of that they are required to commence those laws which
help the local public and helps to prevent any kind of violation within the country.
European Union Law: Most of the laws in UK are being commenced b European Union
law because there major concept of forming law is simple in which they focus that which kind of
law is required to be commenced (Means, 2014). This is one of the crucial source for KANGO
because most of the business law are being commenced by them.
Common law: It is among those source which tells that statutory law and other sources
have not described any of the particular section due to which they have been court have been
given power to commence in law in any of emergency situation.
This are some of the laws and regulation that need to be considered by KANGO while
taking any of the business decision so that better outcomes can be achieved.
TASK 2
Elaborate the possible impact of the law on a business concern.
KANGO(K) have assigned their courier as self-employed but still they are required to
were the uniform of organisation, if any of the person is going to deliver the courier then they
must give notice before 48 hours. Some of the factors which are considered by the court of UK
to find whether person is employee or self employed is explained below:
GIG Economy
This is the theory which describes about the employee's and self employed. It has been clearly
mentioned that any of the person who works for short period of time then he or she will not be
counted as employee's of an organisation (Tushnet, 2017). The category of jobs which are
included in it are related to flexibility, temporary basis or even freelancing job too. The person
who doesn't think about life time career can easily fit into the category of gig economy.
Major differences between employed and self employed.
Employed Self-employed
They are the person who work for other
person.
They are the one who works for themselves.

They do not have any kind of freedom and
even they do not have sort of risk.
Risk is high but they get freedom too.
They can enjoy unemployment benefits and
even they gets paid leave.
They do not get paid leaves.
They are not the in-charge of a company. They are the in-charge of a business
organisation.
Pimlico Plumber v Mr. Smith
This was the case were Mr. Smith told that he is a employee of Pimlico plumber as he is
working since last five years for him but owner of Pimlico Plumber is clearing out the point that
he is one of the self-employed and because of that Mr. Smith will not be counted as self-
employed. Here, Pimlico is saying that the income tax report can easily prove that he is self
employed and Mr. Smith was working for him on temporary basis. So, by looking at this Mr.
Smith sued Pimlico plumber in the court.
Judgement: The judges of this particular case decided that as per GIG theory person who
work for shorter period of is not counted as employee but in the case of Mr. Smith, he was
working since last five so he must be counted as employees of the company and must be given
all the rights which an employee gets on daily basis (Allen, 2017). In addition, it can be said that
income tax statement and other relevant documents shows that Pimlico is self employed but still
it will not be considered.
As per this above statement, it can be said that self-employed who are working for
KANGO should be counted as employee of company because they are bound to follow must of
the rules and regulation of the employment law. Some of the impact that might be seen on
KANGO after all the of workers were held as employed are listed below:
 there employee's will be have to work as per the guidelines which are provided to them.
 They will not be allowed to take any of the decisions of own.
 Satisfaction among the customers might increase towards company because delivery
process will be improved.

 Each and every work will be managed in a systematic manner due to which working
efficiency will increase.
TASK 3
Discussion on limited company and how they are legally commenced
Limited company a form of business in which a limited company enter into contract of
its own. Limited company are those with the limited amount of liability that has been undertaken
by the shareholders of the company . In this the finance of the company are separates from the
personal finance of the owner. Here, the company is taxed separately. It can be said that in legal
sense limited company is a person (Bently and Sherman, 2014).
Sole Proprietorship: Forming this types of company is very easy because it is easy to
run and operate and even the investment which is required is very less. There is no involvement
other person in this types of business because it is needed to be operated b single member only.
There is no legal formalities in this types of business due to which it always give additional
comfort to investor. The main benefit of starting sole proprietorship is that there is no legal
requirement of registration.
Partnership firm: Number of individual person are required to operate this types of
organisation where any one of the member is authorised to take most of the important decision
for firm. It is said that partnership are mainly prescribed by the professional bodies when they all
come together with a common objective. To start any of the partnership firm it is necessary that
partnership must be prepared and after that it is important that roles and responsibilities should
be decided in written agreement. All of this documents are needed to be deposit in companies
House.
Limited liability company : Limited liability company is a private company in which
the owner are responsible for its debts only to the amount which they have invested as capital. It
is more formal partnership arrangement .It involve more protection and flexibility in comparison
to the corporation . LLC does not involve paying taxes. The legal way to incorporate LLCs is
mentioned below:
 List of all member is needed to be selected.
 MOA & AOA has a main part to be played.
 Name and area where business is required to be conducted.

As KANGO is willing to incorporate limited organisation, it is necessary for them to
consider that which form of business organisation is required to be incorporate so that business
activities can be performed at bigger platform. So, by looking at the services which they provide
to the customer they must think to incorporate LLCs because it will be helpful for them and even
work will be managed in a systematic manner in future.
TASK 4
Deliver the best form of legal solution to resolve the dispute
Case Scenario: This case was rear in which it has been found that KANGO and there IT
Supplier engaged in a dispute which was not that easy to solve. Both, KANGO and IT supplier
want to resolve it but not by the process of legal proceeding of court.
Alternative Dispute Resolution
Alternative Dispute Resolution is that process which helps to resolve a dispute between
parties. There are various processes and techniques for settling disputes like arbitration,
meditation and conciliation. One of the essential reasons parties may lean toward ADR
procedures is that, dissimilar to antagonistic case. ADR methodology are frequently synergistic
and enable the parties to see each other's positions (Kapottos and Youngner, 2015). ADR
additionally enables the gatherings to concoct increasingly inventive arrangements that a court
may not be legitimately permitted to force. These above process can be used to solves any type
of disputes and conflicts which detailed given below-
 Conciliation: It is the process where disputes need to be solved by reaching near to the
terms and condition of contract which has been done between the parties. The main
motive of conciliator is to check the agreement and try to agree the involved party to
resolve the issues (What is conciliation, 2018). The concept of conciliation is followed in
most of the cases but it is not necessary for to adopt of follow the instructions and
guidelines which has been suggested by conciliator.
 Meditation: This method of solving dispute is conducted by mediator, who talks with
disputed parties so that disputes can be resolved. Suggestions are mainly given in it and
its the call of party to decided whether they are adopting this way of ADR or not. It has
been one of the effective way to resolve dispute but the choice is always of disputed party

that what does they think about the case that whether it can be solved through suggestions
or not and if yes they can choose meditation method too.
 Arbitration: It is very crucial method of ADR process because all of the decisions in it
are taken in legal manner so that from next time same type of case cannot take place. The
required panel for judgement must be in odd number in this process so that their will not
be any kind of discrimination. The decision should not be biased whenever it is being
taken by the panel. It is one of the safe and secure method under ADR process because it
helps to resolve the issue in appropriate manner where orders are being given to the
client.
In this respective case, both IT supplier and KANGO should go for arbitration because it
will help them to solve the matter of dispute and even legal documents will also be signed related
to the issue that same types of issue will not raise again. If this sort of activities takes place again
then legal action can be taken at any period of time.

CONCLUSION
It is understandable from the above file that legal framework of business law are required
to be considered. The legal system has its own style which they need to follow while
commencing law. Organisations need to follow various other law as it helps to take most of the
business decision. The purpose of forming limited company is just to provide additional benefits
to investors. Alternative Dispute Resolution is better way to resolve the dispute compared to
court proceeding as it takes less period of time.

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.
Bently, L. and Sherman, B., 2014. Intellectual property law. Oxford University Press, USA.
Cox, J. ed., 2015. Business Law. Oxford University Press, USA.
Kapottos, M. and Youngner, S., 2015. The Texas advanced directive law: Unfinished business.
The American Journal of Bioethics. 15(8). pp.34-38.
Means, B., 2014. The Contractual Foundation of Family-Business Law. Ohio St. LJ. 75. p.675.
Tushnet, M., 2017. Comparative constitutional law. In The Oxford handbook of comparative law.
Wilson, L. E. and Sipe, S. R., 2014. A comparison of active learning and traditional pedagogical
styles in a business law classroom. Journal of Legal Studies Education. 31(1). pp.89-
105.
Online
What is conciliation. 2018 [Online] Available Through: <http://www.dispute-resolution-
hamburg.com/conciliation/what-is-conciliation/>