Report on Karakuri Startup and Analysis of the UK Legal System

This report, prepared by a paralegal at Clifford Chance, provides a comprehensive overview of the UK legal system, focusing on its structure, sources, and impact on businesses, using Karakuri Company as a case study. The report begins with an introduction to Karakuri, a food production startup, an...Read More

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REPORT
Prepared by: Le Thi Anh Tu
London, 2021

1
Introduction
Information of Karakuri company
Name Karakuri Company
Founders Barney Wragg, Simon Watt
Established year April 2018
Address 14 Amherst Avenue, London, England, United Kingdom
Industry Food production by robot
Capital £13.5 miliion
Number of employees 80 employees
Email [e-mail]
Karakuri Company was founded in 2018 by Simon Watt and Barney Wragg, two longtime friends and
colleagues. In April 2018 Founders Factory invested in Karakuri and Brent Hoberman joined the
board as Chairman. The name Karakuri is taken from Japan's autonomous dolls of the 16th century.
Karakuri's manifesto is “We love food. We love robots. And we love everyone.” Karakuri aspires to
build a world where food, robots and people connect to create new and better experiences for
everyone. Karakuri is still operating with 80 employees along with the Sembl food processing robot
system. The food processing capacity of the system is up to 110 meals per hour. As a result, Karakuri
has been listed in the “Top 50 Retail Tech Startups globally” and listed in ITPro's "UK Startups to
Watch in 2021" list. (Karakuri, 2021)
And I'm a paralegal at the leading UK law firm, Clifford Chance, and in this report, I will clarify the
legal system in general and the legal system in the UK. In addition, the report also clearly explains the
sources of law, how the law is created and applied in the courts. It also points out the effects of the law
on the development of businesses in the UK.

2
I- Basic nature of the UK legal system.
1. Overview of the legal systems in the word.
According to Alvendia, Kelly and Demarest (2018), “Legal system is a system for interpreting and
enforcing the laws. It elaborates the rights and responsibilities in a variety of ways. It means
jurisdiction’s basic of applying law consists of a constitution, written or oral; primary legislation,
statutes, and laws; authorized by constitutionally authorized legislative body; subsidiary legislation or
by laws enacted by primary legislation authorized body; traditional practices upheld by the courts.”
Currently, there are four main legal systems in the world as follows: civil law, common law, theocratic
law and customary law.
- Civil law is the most widely used legal system in the planet. The civil law system is distinguished by
the fact that its legal power is organized into written codes. Civil law is based on Roman law and is
used throughout much of continental Europe, Central America, South America, and other parts of
the world. (Cantwell and Goldman PA, 2020)
- Common law: In opposition to the civil law system's codified laws, the common law system's
doctrines and principles formed over time by judges serve as "legal precedent". The common law
system is based on English common law and is used in many English-speaking nations, including
Wales, Australia, England, the US, Canada, and others. (Cantwell and Goldman PA, 2020)
- Theocratic law is a legal system founded on religious beliefs or scriptures is known as a religious
law system. Islamic law is the most widely practiced religious system, governing both public and
private life. Islamic legal systems can be found throughout the Middle East, Africa, South Asia,
Central Asia, with rules that differ greatly between Muslim countries. (Cantwell and Goldman PA,
2020)
- Customary law is based on a community's traditions. Customary legal systems have the following
characteristics: customs may be unwritten, customs influence social connections, and customs are
broadly recognized by residents. Customary law systems have in the Pacific Island, Africa, and
other places. (Cantwell and Goldman PA, 2020)
1.1. The UK legal system.
England and Wales, Scotland, and Northern Ireland make up the United Kingdom, which is divided
into three distinct jurisdictions, each with its own court system and legal profession. (GlobaLex, 2021)
- England and Wales,
- Scotland,
- Northern Ireland.

3
The United Kingdom is a country whose political system is a constitutional monarchy. The monarch
has the following constitutional responsibilities in the United Kingdom: state opening of parliament;
prime ministerial appointment; receiving the credentials of foreign Ambassadors; regular confidential
audiences with the PM (Prime Minister); approval of parliamentary legislation; approval of official
appointments; approval of secondary legislation through the privy council; and representational duties
as head of state, such as paying and receiving state visits from other heads of state. In addition, the
monarch is also the commander-in-chief of the armed forces, the judiciary, the civil service. (UK
Polistic, 2021)
The UK is different from all other countries as a country with an unwritten constitution, without any
single legal document which sets out in one place the fundamental laws outlining how the state works.
The UK Constitution is based on several different sources as follows. Statutes are the highest level of
law, as they are laws passed by Parliament. Conventions are unwritten rules that have evolved over
time to guide the governance process. Common law is the law that courts and judges develop through
cases. (UK Constitution, 2021)
According to Supreme Court in UK (2021), in the UK court system, the Supreme Court was
established to create complete separation between the Senior Justices of the UK and the House of
Lord. The High Court is the court of final appeal for all UK civil cases and criminal cases, and plays
an important role in the development of UK law. The Supreme Court is the highest court in UK and
any judgment it makes is binding on any lower court. The High Court of Appeal hears appeals from
the courts in England and Wales, Scotland, and Northern Ireland as follows:
- England and Wales
+ The Court of Appeal, Civil Division
+ The Court of Appeal, Criminal Division
+ (in some limited cases) the High Court
- Scotland: The Court of Session
- Nothern Ireland
+ The Court of Appeal in Northern Ireland
+ (in some limited cases) the High Court
1.2. The English law.
English law refers to England and Wales' common law legal system, which consists mostly of criminal
and civil law, with each branch having its own set of courts and processes.

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Figure 1: The court system of England and Wales
Source: (Tulipmimi, 2021)
“According to Georgetown Law Library (2021), The County Court hear the majority of civil litigation
in England and Wales (for small claims). Many specialised tribunals have been established to settle
specific sorts of civil disputes, such as taxes and workplace issues, as well as immigration and asylum
matters. The High Court serves as a first-instance judge for high-value civil claims as well as an
appeal court for criminal and civil cases. The Queen's Bench, the Chancery Division, and the Family
Division are the three main branches that make up the High Court. Appeals from the High Court and
the County Court are heard in the Civil Division. The Magistrates' Court is where all criminal trials
begin, but more dangerous offenses are referred to the Crown Court. The Court of Appeal's main
purpose is to hear appeals. Appeals from the Crown Court are heard in the Criminal Division. The
House of Lords is the final court of appeal in English court system. Its judicial activities are distinct
from its legislative duties, and matters are heard by a panel of 13 senior judges known as the Lords of
Appeal in Ordinary.”
Civil and criminal law are two legally distinct entities with separate set of laws and punishments. The
table below compares and contrasts these two legal structures.
Table 1: Compares the criminal law and civil law
Criminal law Civil law
Definition Criminal law is a set of laws
that deals with the punishment
of people who break laws.
Civil law is dealing with problems
between persons, companies, or the two,
in which the sufferer is compensated.
Punishment Penalties include detention in a
prison, fines, and, in certain
The losing party must compensate the
plaintiff for the loss of money established

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cases, the death penalty. by the judge, which is known as punitive
damages.
Example Theft, robbery, murder, assault,
rape, disease transmission,...
Marriage procedures, house rental
procedures, property disputes,...
Burden of evidence Prosecutor Plaintiff
Appeal Only defendant Claimant or Defendant
Jury Decide on the appropriate
sentence
Determine the amount of compensation
Source: (Author’s work)
2. The different sources of UK Law (P1)
2.1. Definition of Law
A rule of conduct established by a government or community in a certain territory is defined is law. In
order to cope with crime, commerce, social relationships, property, finance, and other issues, the law
follows specific norms and customs. The controlling authority is in charge of enforcing and
controlling the law. (Toppr, 2021)
2.2. Sources of Law
English law has two main sources of law: written law and unwritten law. In which, written law
includes Acts of Parliament, Delegated Legislation, Europeon Union Law, EU convention on Human
Rights. And unwritten law includes Common Law, Customs, Convention and Equity Law. And in this
part, I will clarify these 8 sources of law in English law as follows:
a) Common law
Common law is a body of unwritten laws based on legal precedents established by the courts.
Common law influences the decision-making process in unusual cases where the outcome cannot be
determined based on existing statutes or written rules of law. (Mansa, 2021)
The English common law originated in the early Middle Ages in the King’s Court (Curia Regis), a
single royal court set up for most of the country at Westminster, near London. The common law of
England was largely created in the period after the Norman Conquest of 1066. (Kiralfy, 2021)
Common law will be applied in the courts where the defendant's violation of the law is not provided
for in any legal document, the judges will use their knowledge of the facts, the previous case law and
use it flexibly to apply to the current trial. (Elliott and Barrister, 2021)

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Example: The Case of Proclamations (1610)
More than 400 years ago, the chief justice, Sir Edward Coke, ruled that King James I could not ban
new construction in London without parliamentary support. King James I believed that he had the
right to make any law he wanted. But the court challenged his views, and decided that the monarchy
could not use its power in this arbitrary way. In the late 17th century, the Glorious Revolution laid
the foundations for a constitutional monarchy and today, whoever is king or queen respects the
legislative power of the elected parliament.(Clapham, 2018)
b) Equity Law
When existing regulations do not provide for remedying what is believed to be unjust, equity is
meant to fill in the gaps, allowing the court to accomplish justice. In other terms, equity is similar to
natural law, or the rule that is appropriate for justice. (Merwin, 1896)
Equity law is evolved from old English common law, when courts exercised their discretion to
administer natural law justice. When there is a conflict between common law and statute law and
neither can correctly bring the correct verdict, equity law takes precedence. It is developed and
administered in the England by the supreme premier court in the exercise of its extraordinary
jurisdiction. The Judicature Acts of the 1873s enshrined the position of equity in England, as well as
fusing the courts of equity and common law into a single unified court system. (UpCounsel, 2021)
The common law principle of equity is still in effect. It was written in black and white in the
Judiciary Act and is now included in the Supreme Court Act of 1981. It is based on a number of
maxims designed to ensure that the outcome of cases are resolved fairly by gairi. For example, the
maxim “Delay defeats equities” is evident in the following example. Leaf v International Galleries
(1950): in this case the complainant purchased a painting and the seller stated that the painting would
increase in price after 5 years. And after 5 years the complainant discovered that the price of the
painting had not increased as the seller claimed. The complainant claimed the equitable remedy of
rescission. He asked the seller to compensate him for his money. But he waited 5 years before
claiming it was too long so this fair remedy was not committed. (Fiches Cours, 2021)
c) Delegated Legislation
“Delegated legislation is legislation that is passed by a government minister, a delegated person, or an
institution in the United Kingdom rather than through an Act of Parliament. Delegated legislation is
used for a variety of objectives, including determining the effective date of an Act of Parliament,
establishing fees for a public service, and defining the contents of an Act of Parliament. Delegated
legislation is subject to the parameters and procedures set forth in its parent act. Despite the fact that
a considerable amount of delegated legislation is prepared without thorough legislative examination,
there are statutory instruments in place to prevent it from being misapplied.”(Wiley, 1944)

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Delegated legislation can be regulated and challenged in the courts on the grounds that it is ultra
vires. This basically means that it exceeds the authorities granted by parliament in the enabling act.
Any delegated legislation that is declared to be ultra vires is null and void. (Law Teacher, 2021)
Delegated legislation enacted by the administration on the basis of Acts of Parliament stretches back
to the 16th century, but it was not until the 19th century that it became widely used in UK. In the
16th century—a period of social change and rapid economic in England—Parliament gave the
Crown extensive legislative power. And if, by the 18th century, the powers of the delegations had
become less liberal, the judicial power granted to the Commissioners of Customs and Taxation was
enough to provoke Dr. Johnson to vehement opposition. With the great expansion of UK in the 19th
century, Parliament was forced to give far-reaching powers to various administrative bodies. And
this century has seen a great deal of parliamentary legislation and the complexity of delegated
legislation. (de Smith, 1949)
Example: Health and Safety (Consultation with Employees) Regulations (HSCER) 1996
These regulations require employers to consult with their employees on matters which could affect
their health and safety. Such consultation should be undertaken soon enough for the employees to
express their views and for these views to be considered. These regulations apply to all industries,
employees and workplaces except for those workplaces in which safety representatives have been
appointed by a recognised trade union under the Safety Representatives and Safety Committees
Regulations 1977. (BBC News, 2021)
d) Customs
In the UK, custom is an ancient rule of law for a particular locality and it is contrary to the general
law of the country. The custom is born from habit, the natural behavior of people in each locality is
different. Custom is considered a source of law, so it is necessary to study aspects of that custom
such as: nature, origin, importance, and other factors. Customary law has its roots in Anglo-Saxon
times, when local customs were mostly formed laws affecting family rights, inheritance, property
rights, contract rights, etc. Norman conquistadors gave effect to customary law and adapted it to their
feudal system. After the 13th and 14th centuries when English law was granted statutory authority
under the crown, customary laws became valid English common law subject to the following
conditions. First, customary law has been practiced peacefully and continuously since time
immemorial. Second, customary law must be reasonable, certain and binding. Finally, customary law
is limited to a particular locality. Currently, with the unification of customary law with English
common law, custom is a force of law that retains its value. (Britannica, 2021)
Usage, on the other hand, does not arise out of its own force, but rather out of a contractual
agreement between the parties. To put it another way, a legal custom has its own independent

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position and is not a creature of agreement, but a conventional custom or usage does not exist or
arise out of any independent legal authority. (Law edu, 2021)
Example: Richard Parker v Dudley and Stephens, 1884
In details, there was a shipwreck in England, 1884, the survivors were so hungry that they had no
food, so they killed and ate the youngest and weakest crewman. The group was later charged with
murder. The defendants explained that their action was based on "necessity" - that they needed to eat
the boy, because they were unlikely to survive and the boy was probably dead. And a custom of that
fishing village allowed the crew to eat cannibals in such cases, but the defendants were found guilty
on the basis that all people have an equal life. But the public also sympathized with the defendants,
and their sentences were later reduced from death to six months in prison. (Clapham, 2018)
e) Conventions
A convention is an unwritten agreement in Parliament about how something should be done that,
while not legally binding, is virtually routinely followed. To solve a particular procedural problem, a
new convention will be agreed upon. (UK Parliament, 2021)
Conventions are especially important in a country like the United Kingdom, where they provide
assistance in understanding how the state works. Conventions are usually developed over time but
they can sometimes be created at a specific time, for example the Salisbury Convention. Conventions
are not enforceable in court because they are not legal and are enforced only by political pressure.
The conventions are ratified by the monarch using Royal Privilege after being ratified by Parliament.
This is necessary if the treaty requires an amendment to domestic law, affects the rights of private
individuals, requires public spending, grants more powers to the Crown, or cedes territory.
Conventions are essential to the study of the UK constitution as many important parts of the
constitution are regulated not by law but by convention. The most significant advantage of
conventions may be to prevent constitutions from becoming obsolete, evolving to changing
conditions, and adjusting to meet specific needs. For example, the transfer of power from the
monarch to the ministers was the result of conventions. However, the nature of constitutional
conventions is less certain than legal norms because the conventions are not meant to be settlement.
In summary, conventions play an important role by limiting the powers of the legislature to protect
the fundamental rights of individuals and ensure the functioning of a developed democracy.
(Loughlin, 2018)
Example:
In the UK, there is a convention that if a Prime Minister loses a general election, he or she must
resign as soon as Parliament has made a decision to form a new government. In detail, in the 2017
general election, Prime Minister Theresa May's Conservatives Party won 315 seats, while Jeremy

9
Corbyn's Labor Party won 261 seats. Thus, no political party can win 326/650 seats to gain a
majority in parliament. That leaves Britain in a state of "hanging parliament". With a vote like that,
it was a defeat for Mrs May because her party before the general election had 330 seats in
Parliament. In the event of a "hanging parliament", the Conservative Party will remain in power
with Mrs May as Prime Minister until Parliament decides which side will form a new government,
then Mrs May will have to resign. In June 2019, Mrs May was forced to resign as prime minister
because Parliament had made a decision to form a new government. And with 92153 votes in the
final round of voting decided by Conservative Party members, foreign secretary Borish Johnson has
become the new UK Prime Minister. (The Institute for Gorvenment, 2021)
f) Acts of Parliment
An Act of Parliament enacts is new legislation or modifies existing legislation. An Act is a Bill that
has received Royal Assent from the Monarch after being approved by both the House of Commons
and the House of Lords. Acts of Parliament, make up what is known in the United Kingdom as
Statute Law. Since 1952, The Queen has given Royal Assent to 3135 Acts of Parliament. (UK
Parliament, 2021)
Statutory laws were enacted before 1285 by Edward I. His statutes had an important influence on
medieval law. And after the Bill of Rights (1689), it established Parliamentary supremacy over the
Crown after King James II (r.1685–88) was defeated by William III (r.1689–1702) and Mary
(r.1689–94) forced substitution during the Glorious Revolution (1688). From there, the laws will be
passed by the Parliament, the House of Commons and then presented to the Queen for approval.
Since then, the statutory law is the most valuable law in the English legal system. It is first used by
judges to make decisions in each trial. (Britannica, 2021)
Example: Road Traffic Acts 1930
The defendant's car was hit by a curb, but it had no insurance and no battery. After being hit, that car
was unable to drive. According to the Road Traffic Acts of 1930, it is illegal for an owner to drive a
vehicle without vehicle insurance. Although the car was unusable prior to the crash, under the Road
Traffic Act 1930 in the UK, Parliament classed uninsured cars as dangerous for any accident
involving it or anyone involved will be uninsured, the defendant will be unable to seek compensation
from the car. (Law Teacher, 2021)
g) European Union Law
The EU was created by the Maastricht Treaty, which entered into force on November 1, 1993. It is
international organization comprising 27 European countries and governing common economic,
social, and security policies. EU law is a collection of treaties, legislation, and court decisions that
work in conjunction with the legal systems of the European Union's member states. In the event of a

10
conflict between EU and national law, EU legislation takes precedence and is binding on all national
authorities. The European Union member states represent a number of different legal traditions.
However, they are all based on a common foundation of ancient Roman law, Christian theology and
canon law, feudal law, and medieval German law. European law is shaped by these traditions
because it characterizes legal institutions and processes as being relatively autonomous with respect
to the surrounding social, religious and moral rules and procedures. (Britannica, 2021)
The United Kingdom, which had been a founding member of the EU, left the organization in 2020.
But some EU law has been turned into UK law even though the Brexit transition period expired on
31 December 2020. Previously, EU law applied directly to the UK. (Britannica, 2021)
Currently, it is very difficult for the UK government to remove all EU laws from the regulation
books when leaving the EU. In many areas, if the UK does not comply with EU laws, it cannot trade
with the EU. In the legislation that are particularly hard to change include data protection, consumer
protection, financial services, and product liability. (Heywood, 2021)
Currently, a number of rights and principles in EU law still apply and have direct effect in the UK.
Examples are the right not to be discriminated against because of nationality, a right covered by the
EU Activity Treaty, the EU General Data Protection Regulation, Child rights for migrant workers,
working time directive.... (Thorneloe, 2021)
Example: European Union (Withdrawal) Act 2018
The European Union (Withdrawal) Act 2018, chapter 16, part 2, section 6, shows that EU case law
still applies and is binding on UK courts. (Thorneloe, 2021)
h) EU convention on Human Rights (ECHR)
The European Convention on Human Rights (ECHR) is the protection of the human rights of people
in the countries of the Council of Europe. This Convention has been signed by all 47 members of the
EU, including the UK. Originally proposed by Winston Churchill and drafted primarily by UK
lawyers, it is based on the United Nations Universal Declaration of Human Rights. It was signed in
Rome in 1950 and entered into force in 1953. (Equality Human Rights, 2021)
Although the UK has left the European Union, the UK is still a party to the European Convention on
Human Rights (ECHR). The Human Rights Act 1998 is the main Act to uphold human rights in the
UK. This act gives effect to the European Convention on Human Rights in UK law. Because all the
laws in the Human Rights Act 1998 are taken from ECHR. Another point is that Articles 1 and 13 of
the ECHR are not included in the Act. With this act UK people can find morality in UK courts
because it has incorporated the rights enshrined in the European Convention on Human Rights
(ECHR) into UK domestic law. (Equality Human Rights, 2021)

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Example: Freedom of thought, conscience and religion (Article 9, ECHR)
In 2004, Shanibu Begum, 16 years old, complained to a UK court about her school's uniform policy.
Her brother supported her in working with a lawyer to file a lawsuit in her case. Shabina's lawyer
claims that the school has infringed her human rights by refusing to allow her to wear the jilbab,
which she believes to be necessary for her religion. According to the UK Court of Appeal, Shabina's
rights had been breached, but the case was then sent to the House of Commons, which disagreed,
stating that her rights had not been violated. Although Shabina lost the lawsuit, there was still a lot of
discussion about school uniforms in the press and on TV. And the Government has written new
regulations for schools, emphasizing that the uniform regulations are being implemented requiring
input from parents and students. (Equality Human Rights, 2021)
3. The role of government in law making and how statutory and common law is applied in the
justice courts. (P2)
3.1. Role of Government in law making
In the UK, Parliament is the organization that can make new laws or amend existing laws. Therefore
proposals are brought to Parliament by the Government and Members of the House of Commons.
These proposals are called Bills. And the process to introduce a bill in the UK legal system consists of
9 steps as follows: Initial Interest, Draft Bill, First reading, Second reading, Committee stage, Report
stage, Third reading, House of Lords and Royal Ascent. And the following table outlines the aims and
role of government in each step to introduce new legislation in the UK.
Table 2: Stages of law making in English law system
No Stage Aims Role of Government
1
Initial Interest
The government gives initial ideas
on the formation of draft bills.
In the green or white paper, the
government briefly states the aim
and major content of the legislation
it wants to develop and reform.
After that, the government
consulted parties to get more
comments to help clarify ideas to
form a draft bill.
2
The Draft Bill
Create a draft bill after determining
the nature and scope of the law the
government wants to develop and
Government agencies and
congressional attorneys will draft
bills to present to the Parliament.

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amend
3
The First
Reading
Introduce the bill with a brief title
to the Parliament
The Government make the decision
to print the draft bill for all
members of the Parliament to
consider and the people can
comment if they want.
4
The Second
Reading
Members of parliament will debate
and vote on whether to pass the
Bill.
“The government's first opportunity
to raise concerns about areas in
which it believes changes are
needed in the legal system and note
the process of this discuss. And the
government may not need to argue
if the bill is passed on schedule.”
5
Committee
Stage
“The bill was tested in detail by the
Committee. The Public Bills
Committee can obtain evidence
from experts and interest groups
from outside Parliament.
Amendments (proposed changes)
for discussion are selected by the
committee chair and only
committee members can vote on
bill amendments if needed.”
The Government listens, adjusts
and revises according to the
opinions of the Committee, if
needed.
6
The Report
Stage
The bill is returned to the House of
Common after a Committee period.
The institutes consider the revised
form from the committee.
“The Government reviews and
makes decisions on the points that
have been amended during the
committee period, and proposes
further amendments if necessary.”
7
The Third
Reading
This stage is the last chance for
members of House of Common to
debate and vote on whether the bill
should be passed.
The government receives, records
the House of Common vote and
debate whether to pass the bill or
not, presents the changes to the bill

13
that take place at the reporting
stage.
8
The House of
Lords Stages
“The bill is presented to the House
of Lord and has the same testing
and voting process as the House of
Common. But if the bill needs
amendment, it will be sent back to
the House of Common for
amendments and supplements.”
“The Government records the
comments made by the members of
the House of Lord and sends the
Bill back to the House of Common
for consideration. The government
is the intermediary to send the bill
between the two houses for
consideration until the Bill is
agreed.”
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The Royal
Assent
“The bill is presented to the Queen
for signature after it has been
approved by members of the House
of Lord. And the bill will go into
effect when the Queen approves.”
Government presents Bill to the
Queen.
Source: (UK Parliament, 2021)
3.2. How statutory and common law is applied in the justice courts.
Statutory law
Statutory law is a set of rules of conduct recorded or prescribed in a certain written form created by the
Parliament and promulgated in the correct order at a specified time. Therefore, the statutory law is
considered to have the highest legal value and is preferred by the judges in the Court of Justice. All
penalties for any individual or organization violating the law are based on the provisions of the laws
that the Parliament has made.
For example: the Equality Act 2010
Mr. Gehlen (Indian) was employed as a Senior Analyst at Allay (UK) Ltd from 3/10/2016 to
15/9/2017, when his job was terminated due to performance poor performance. After being fired, Mr.
Gehlen filed a complaint against company Allay, saying he had been harassed by one of his
colleagues, Mr. Pearson, because of his race. Allay (UK) Ltd conducted an investigation into the
complaint and found that Mr Pearson had indeed made racist comments on a regular basis about Mr
Gehlen. At Employment Court, Mr. Gehlen said he reported racist remarks to a manager, but the
manager still did not have any response to Mr. Gehlen. The Employment Court ruled that Mr. Gehlen
had been subjected to racial harassment. The Court rejected Allay (UK)'s defense on the grounds that

14
the job training given to Mr Pearson took place more than a year before the harassment occured and
this was clearly forgotten because of Mr. Pearson's racist remarks. The Employment Complaints Court
rejected Allay Ltd's appeal. And the Employment Court ruled that Allay Ltd violated the equality act
2010 against Mr. Gehlen. And this hurt Mr. Gehlen feelings so Allay Ltd has to pay Mr. Gehlen £8600
under the provisions of the Equality Act 2010 when employers discriminated against workers.
(Sheppard, 2021)
Common law
Common law is law developed from judgments made by Judges. It is often used by Judges to make
decisions on cases no statutory law or that are not expressly provided for in statutory law. When using
common law, judges rely on previous decisions made in similar cases to make the most appropriate
decision for the case. The decisions of the Supreme Court are applicable to the Lower Court and
previous cases. Common law also has an influence on the English legal system because UK still has
few written laws, most of which are based on previous case law. Judgments can be passed and become
common law based on the Judge's decision when there are no statutes related to the case (from
statutory law to common law).
Example: WM Morrison Supermarkets plc v Various Claimants (2020)
Mr. Skelton is an employee of Morrisons. He was tasked with providing personal information of
employees in Morrisons to an external auditor. Besides doing the job, he also secretly made a copy of
the data. After that, he posted the data on a website and sent copies of the data to newspapers, posing
as an interested member of the public. Mr. Skelton did this as an act of revenge against his boss after
he was verbally disciplined by his boss. When Morrisons became aware of this, Morrisons took action
to protect the identities and information of employees. Mr. Skelton was later arrested and he received a
prison sentence for his actions. Employees with the leaked data sued Morrisons for damages on the
basis that Morrisons was responsible for Mr. Skelton's actions. The Supreme Court and the Court of
Appeal relied on the case of Mohamud v Wm Morrison Supermarkets plc (2019) arguing that the
employee's action was unrelated and the employer should be held responsible for this action of the
employee. The court later ruled that Morrisons should be held accountable to its staff for the actions
Mr. Skelton did. (Mondaq, 2021)
4. Evaluate the effectiveness of the legal system in terms of recent reforms. (M1)
In 2020, is the year of major reforms to employment law in the UK. And one of the most significant
reforms is the reform in The Parental Bereavement Leave and Pay Act 2018. In detail, this act allows
all employed parents of any business in the UK to have the right to take leave from 2 weeks to 8
weeks of paid leave for £151.20/week or 90% of weekly earnings if their child aged under 18 dies or
they have a stillbirth at 24 weeks or more. (Acas, 2021)

15
The benefit of reforming this act is that employees' parental rights are protected and respected by the
company when they lose a child. Employees do not have to suffer any disadvantage in this case, but on
the contrary, they are also motivated and encouraged by the company to overcome the pain by
employees taking paid leave and the payment method is their choice.
However, with the pay for employees on leave like this, the company needs a lot of money and time to
arrange the work properly. Many employees take advantage of being a foster parent to take paid leave
for a long time, which affects the company's productivity when the company does not have enough
staff to carry out development projects. In addition, some employees, because of grief, do not focus on
work and intend to quit, it also affects the performance and progress of the work.
With the reform of The Parental Bereavement Leave and Pay Act 2018 as above, start-up company
Karakuri should carefully review the employee's identification documents to make the right decision
to take leave to avoid cases where employees take advantage to avoid work and still get paid. Besides,
Karakuri should require employees to notify about time off so that they can arrange a reasonable
amount of work for other employees in the company. If an employee fails to comply with the statutory
notification requirements such as notice of time off and return to work, Karakuri should consider
whether to pay the employee while on leave. And Karakuri should take this reform of act seriously to
ensure that employees' parental rights are protected and avoid violations and damage to the image,
reputation and financials of the company.
II- Potential impact of law on a business
1. Analysis of the potential implications of law on a business. (P3)
1.1. The Company law
The Company Act 2006 is the most important corporate act since 1948. This act consists of 1300
sections, 47 parts, 16 schedules, over 700 pages long. It is the longest legislation in UK Parliament
history. Company Act 2006 aims to simplify corporate governance, improve shareholder rights, update
and simplify corporate law. The areas covered by the Company Act 2006 are incorporation activities,
company constitution, company registrar office, corporate members, re-registration of corporate status,
accounting, auditing, legal claims by business members, share capital, annual confirmation of the
accuracy of information on the company register, and other related areas.(Company Law Club, 2021)
In order to better understand the company's duties to the business registration agency when there is a
change in the board of directors, I have chosen the Company Act 2006, chapter 1, part 10, section 167.
In this section, if the company has any changes in relation to the position of director, the company
must specifically record it in the register of directors or the register of directors' addresses and notify
the registry of change and the date takes place. In addition, if the company announces that a person
becomes a new director, the details information of the new director must be clearly recorded in the

16
register of directors of the company and the register of residence of the director. And this notice must
include a statement from the company that the person has agreed to work in the position. All changes
must be made available to the registry within 14 days of the date of the change. (CA, 2006)
According to section 167D, part 10, chapter 1, Companies Act 2006, the penalty for a company that
violates the provisions of the above section is that company and all its employees are considered for
violating this section. And an offender will be responsible for the summary judgment as follows. In
England and Wales, the fine does not exceed 5 on the standard scale (not to exceed £5000) and if
violations continue, the default daily fine does not exceed £500 and one tenth of the level 4 according
to the standard scale (£250). (CA, 2006)
Example: In 2017, Tapoly insurance company and all its employees were fined £2,500 by the
business registry in London because Tapoly Company violated Company Act 2006 by not providing
information about the change of director into the register of the director's residential address and
provide notice to the registry 18 days from the date of the change. (ACCA, 2021)
From here, Karakuri startups in particular and startups in general, when there is any change in the
company's director, the company need to record the change of director position in the director register
and the register of the residence address of the director clearly detailing the time, place, and content.
At the same time, when providing the change information to the registry, Karakuri needs to fully
prepare the above information and the company's written statement that he/she agrees to work as a
director for the company or not. And Karakuri should report these changes within 14 days of the
change occurring. These help Karakuri and more than 80 employees of the company avoid the
penalties of the business registration authority, affecting the image of the business.
1.2. Contract Law
A contract is a legally binding promise (written or oral) by one party to perform an obligation to
another party to be considered. A basic binding contract must include four main elements: offer,
acceptance, consideration, and the intention to create legal relations. (UK Practical law, 2021)
In this section I will introduce the four contract laws in the UK: The supply of Goods and Services Act
1982, The consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013,
The Unfair Contract Terms Act 1977, The Sale of Goods Act 1979
The supply of Goods and Services Act 1982
The Supply of Goods and Services Act 1982 provides that service providers are required to provide
their goods or services with reasonable care and skill, at a reasonable price, and in a reasonable
timeframe for which a fixed date has not previously been agreed between the parties concerned.
Furthermore, the goods supplied must be of satisfactory quality, as described and fit for purpose. The

17
purpose of the Act is to protect consumers from poor service, defective goods that a supplier may have
provided. The Act applies to all business relationships in which goods or services are provided.
(Lawteacher, 2021)
The consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013
The Consumer Contracts Regulations - apply to contracts performed both inside and outside the
premises, as well as contracts performed 'at a distance'. There are also regulations for businesses that
provide digital content. These Regulations affect most businesses that contract with consumers,
regardless of where or how the contract is entered into. They do not apply to contracts in which
merchants purchase goods or services from consumers, nor to contracts between consumers. (Business
Companion, 2021)
The Unfair Contract Terms Act 1977
The Unfair Contract Terms Act 1977 (UCTA) covers transactions between businesses. In general,
businesses are said to have the freedom to enter into any contract they agree to. UCTA places some
restrictions on the contractual terms businesses can agree to. It sets out rules that limit the extent to
which a party can avoid liability through the use of exclusions such as disclaimers. Businesses selling
goods or services may not exclude liability for death or injury - in any event, loss or damage resulting
from negligence and defective or shoddy goods ( unless it is 'reasonable' to do so). (NiBusiness, 2021)
The Sale of Goods Act 1979
“The Sale of Goos Act 1979 (SOGA) is the English contract law and UK commercial law for goods
sold and purchased. Since 1979, there have been numerous minor statutory amendments and additions
to the SOGA Act 1979. This Act has been superseded for certain aspects of consumer contracts since
October 1, 2015 by the Act. The Consumer Rights Law 2015 is still the basic law that forms the basis
of business-to-business transactions related to the sale or purchase of goods. The Sales of Goods Act
in chapter 59 has 7 parts, 4 schedules, and 56 sections. In this chapter, the Sale of Goods Act provides
that goods delivered or sold must be of satisfactory quality and fit for purpose. Fit for purpose means
that the goods will provide the benefit or fulfill the purpose advertised by the seller. Merchandise sold
must also be as described - that is, they must match the product displayed at the time of sale, or they
must meet the specifications and descriptions provided in any promotional materials. If any of these
criteria is not met, the customer can claim the retailer for a breach of contract.”(Netlaw, 2021)
And to better understand the rules of delivery, I have chosen the SOGA 1979, chapter 59, part 6,
section 29. In this section there are requirements for sellers as follows. First, the contract of sale of
goods will clearly show the agreement between the two parties on whether to let the buyer own the
goods or let the seller ship the goods to the buyer. Second, the place of delivery is the place of
business of the seller, and if not, his place of residence. With a contract for the sale of specific goods

18
that the parties know well when the contract is performed somewhere else, that place is the place of
delivery. Third, the seller is responsible for sending the goods to the buyer, but if the delivery time is
not specified, the seller must send the goods within a reasonable time (not more than 30 days from the
date of signing the contract). Fourth, in the case of a consignee, the seller will not deliver the goods to
the buyer unless the consignee acknowledges to the buyer that they hold the goods on behalf of the
buyer. Finally, the seller must bear the costs and incidental costs of bringing the goods into a state that
can be delivered to the buyer. (SOGA, 1979)
According to the SOGA 1979, chapter 59, part 6, section 51, the penalty for the seller in case of
wrongful neglect or refusal to deliver the goods to the buyer, non-compliance with the contract, the
buyer can use actions against the seller for non-delivery damages as a claim. In addition, the seller
must indemnify the buyer based on the extent to which the damage is an estimated direct and natural
loss to the buyer due to the seller's breach of contract for delivery. In addition, if the same goods as the
seller's goods are available on the market, the remedy is determined by the difference between the
contract price and the current price of the goods available on the market at the point at which they
ought to be and have been delivered or at the time of refusal to deliver (where no specified delivery
time). (SOGA, 1979)
Example: Cohen v Roche [1995]
The claimant owns a furniture store and has entered into an agreement to purchase 200 Hepplewhite
chairs with defendant. But the defendant refused to delivery the seat to the claimant. Claimant sued the
defendant for breach of contract. The Court considered that the claimant would be adequately
compensated by a sum of damages based on the contract agreed upon by the claimant and the
defendant. Because in the process of signing the contract with the defendant, the claimant spent £70 to
rent a warehouse to be able to hold 200 chairs. The court ordered the defendant to pay £70 for the cost
of renting the warehouse to the claimant. In addition, the defendant must compensate the claimant
based on the agreement of the two parties. (E-lawesources, 2021)
With that mentioned above, I would like to give some advice to Karakuri startups. As a supplier of
goods, Karakuri should pay attention to providing and delivering meals of adequate quantity, quality,
and description in the contract to customers. For example, signing a contract with Ocado company,
Karakuri should carefully check before delivery that 4000 meals are full or not, and deliver at 11 am
from Monday to Saturday at Ocado's canteen. If Karakuri fully and accurately implements the rules of
delivery of goods to customers under the SOGA 1979, it will help Karakuri avoid legal penalties for
breach of contract, and it will also help Karakuri becomes a thriving startup company and ensures
credibility with customers from positive customer reviews.
1.3. Employment Law

19
The Employment Law as the governing organization between workers and businesses. When it comes
to compliance with the law, it ensures that employees and their employers are fair in all aspects of
their workplace and any hiring or firing processes. It also addresses discrimination, promoting equality
in the workplace. (Qredible, 2021)
And in this section I will present some elements of employment law, including termination of
employment, wrongful dismissal, redundancy, unfair dismissal, constructive dismissal, equality in
workplace and introduce more detail the Employment Rights Act 1996 (ERA) in the UK as follows.
- Termination of employment refers to the end of an employee’s work with a company. An employee
may be terminated from a job of their own free will or following a decision made by the employer.
Employers who execute a termination of employment may do so for a number of reasons, including
downsizing, poor job performance, or redundancies. (Kagan, 2021)
- 'Wrongful dismissal' is when the employer has breached the employee's contract. The most
common violation is when an employer fires an employee without notice or less than the minimum
notice period required by law or what is stated in the contract. (Acas, 2021)
- Redundancy refers to a process of terminating an employee's work due to various business reasons.
The reasons are often related to poor economic conditions: work portfolio becomes unnecessary or
severely reduced, lack of projects or funds, relocation of business, general cessation of business.
(Lyft, 2021)
- Unfair dismissal is a part of UK employment law that requires employers to give fair and equitable
treatment in situations where a person's work could be terminated. Employees must be made aware
of a valid reason before being fired, based on their ability to do the job, their behavior, whether their
position is economically unnecessary, on the basis of of a statute, or another substantial reason.
(Acas, 2021)
- An employee can make a constructive dismissal claim if they resign because they think their
employer has seriously breached their employment contract. (Acas, 2021)
- Equality in the workplace means equal job opportunities and fairness for employees and job
applicants. (Acas, 2021)
And the Employment Right Act 1996 introduced by the Conservative government to consolidate
previously established employment rules into one main Labor Law and to further extend individual
rights to all workers, through additional protections of the law. The ERA 1996 has 21 chapters, 15
parts, 245 sections and 3 schedules. The areas covered by the ERA 1996 are employment contracts,
the right to rest, regulations on antenatal care, notice of dismissal, unfair dismissal, overpayments,
employers insolvent labor and some other fields. (ERA, 1996)

20
In order to better understand the unfair dismissal due to redundancy in the company, I have selected
the ERA 1996, chapter 1, part 10, section 105. This section requires the employer to make a fair
choice and consult with affected employees when the company has a workforce redundancy. And
employers are required to make statutory payments to employees fired for redundancy. In the event
that the employee has been with the company for more than 2 years, he or she is entitled to a statutory
contingency payment of £16.140. If a company proposes to lay off more than 20 employees across any
UK location within a 90-day period, it is also subject to a collective consultation process (in which
employers, employees working together to figure out how the business can avoid redundancy) with a
minimum consultation period of 30/45 days, depending on the number of redundant employees.
(ERA, 1996)
According to the ERA 1996, chapter 2, part 1, section 127, the punishment for the employer for unfair
dismissal due to redundancy, the employer must compensate the employee at a maximum of £104.659,
including: basic compensation (calculated by employee age, working time and salary) - capped at
£16.140; and compensation (“fair and reasonable” amount) – limited to the lower of the employee’s
gross annual salary (excluding pension contributions and discretionary bonuses) and capped at
£88.519. At the same time, an employer that violates the above obligations may be liable for up to 90
days of wage protection for each employee affected by redundancy. (ERA, 1996)
Example: Mr Vincent Whalley v The Bliss Space (Southport) Limited 2020
There were 23 employees at the Southport Theater Center that were laid off in March 2020 when the
theater closed during the first Covid outbreak. Staff expect this to be temporary and that they will
return to work when the theater reopens. However, in May 2020, the management company Bliss
Space announced on social media that the theater would not reopen and the company was in
liquidation. From the post, it is clear that the company had been in discussions with local authorities
for several months prior to the announcement of the closure, however the employees did not receive
any warning or advice prior to the announcement. And then, The employees were contacted with
liquidators to know details on how to claim excess wages and notice. The former employees then filed
a claim in Employment Tribunal (ET) against Bliss Space for not consulting with them on the
proposed redundancies. ET found the employee's request to be warranted and ruled that Bliss Space
had failed to fulfill its obligation to consult with employees under the ERA 1996. So, Bliss Space was
ordered to pay a protective award of 90 days remuneration to each of the twenty-three employees who
brought the claim. (Employment Team, 2021)
With the information mentioned above, I have some suggestions for startups in general and Karakuri
in particular as follows. If the company has a redundancy situation, the employer should give notice
and consult with the redundant employees to avoid the occurrence of employees feeling unfairly fired.
In addition, the company also needs to participate in the collective consultation process with a

21
minimum time of 30 days and a maximum of 45 days depending on the number of redundant
employees so that employees and employers can provide a solution to the redundancy problem. And
the company should strictly abide by this law to be able to solve the problem of redundancy easily and
avoid financial loss, capital due to penalties and affect the image of the business.
2. Differentiate between legislation, regulations and standards to analyse potential impacts upon
business. (M2)
Table 3: Differentiate between legislation, regulations and standards
Legislation Regulation Standards
Meaning Legislation is another
term meaning
statutory law.
Legislation is both the
description of the
legal requirements,
and of the punishment
for violating the law.
“Regulations are the ongoing
processes of monitoring and
enforcing the law. Regulations
are detailed instructions on
how laws are to be enforced or
carried out and are sometimes
referred to as “rules” or
“administrative laws.”
Regulations have the force of
law - the application of
regulations is mandatory.”
“Standards make things work
by providing specifications
(guidelines or requirements)
for products, services and
systems. If used consistently,
they ensure quality, safety and
efficiency. They may take the
form of a Reference
Document that provides
details on relevant criteria and
is non-binding.”
Aim “Legislation can have
many purposes: to
regulate, to authorize,
to outlaw, to provide
(funds), to sanction, to
grant, to declare, or to
restrict.”
Regulation is basically
ensuring that a law or
legislation is put into effect and
the details of how it is put into
effect.
Standards help to make life
simpler and increase the
reliability and the
effectiveness of many of the
goods and services people use.
Enacted
by
The legislature:
Parliament.
The regulating authority or
Government
The Government or
companies, professional
organizations.
Example The Equality Act
2010
The Equality Act 2010
(Gender Pay Gap
Information) Regulations
ILO standards developed by
the International Labor
Organization, has the

22
2017
The regulations require all
private and voluntary-sector
employers with 250 or more
employees to publish data on
their gender pay gap on both
the employer’s website and on
a designated government
website.
following basic standards for
workers' rights:
• Freedom from forced labour
• Freedom from child labour
• Freedom from
discrimination at work
• Freedom to form and join a
union, and to bargain
collectively.
Source: (Author’s work)
• Analyse potential impacts upon Startup Karakuri.
In general, the founder of Karakuri should learn and understand the laws, regulations and standards in
order for the company to operate and develop in the best way. In particular, Karakuri should comply
with the Equality Act 2010 and the Gender Payment Information Regulation. Karakuri should prepare
gender pay gap reports on time and accurately according to regulations and standards as it helps
Karakuri further analyze gender pay gap. From there, Karakuri can come up with solutions and build a
data-driven plan to bridge those gaps. Besides, Karakuri can refer to and apply ILO standards to
ensure fairness for employees in the workplace. This will help Karakuri solve the challenges of wage
disparity and increase return on investment, market share, retain talented employees, motivate
employees to work more productively and develop a broader corporate image.
D1 Provide a coherent and critical evaluation of the legal system and law, with evidence drawn from a
range of different relevant examples to support judgements.
With analytical information on the basic nature of the United Kingdom legal system, I consider it a
stable, effective and up-to-date legal system. And in this section, I focus on assessing the legislative
process, common law and the English court system as follows.
As for the UK legislative process, I rate it as ineffective. Because in order to introduce a new law or to
reform and develop old laws, the bill must be passed in the same form by both the House of Lords and
the House of Commons. For example, the Covid 19 pandemic has had a huge impact on the
development of businesses and the world economy in mid-2019. And countries around the world have
introduced legislation requires people not to go out of their homes and to wear masks when in contact
with others. However, it was not until March 2020 that the CoronaVirus Act 2020 was enacted in the
UK. This indicates a delay in the introduction of a new law in the UK, makes it difficult for changes to

23
be thoroughly handled. And the most obvious proof is that the number of deaths from Corona virus in
the UK at the end of 2019, the first Corona epidemic was 41000 peoples, and that number is constantly
increasing. (RFI, 2020)
I consider the common law in the UK to be flexible. Because common law is the main source of
English law, it is the decision of the supreme court judge in cases that are not covered by statutory
law. In particular, the process of making common law does not take as long to go through 9 stages as
statutory law because it is the decision of the supreme court judges who have experience and a
thorough understanding of English law. In addition, common law is faster, more responsive than
statutory law. Common law also is an open law system, close to real life, topical, creating initiative in
legal thinking of judges to make accurate decisions, close to the case.
As for the English court system, I consider it well structured. Because English courts have divided
into two main branches, criminal and civil. And different types of cases will be resolved quickly in the
respective courts. In detail, the Civil Courts handle disputes between individuals and businesses,
including family law cases such as divorce or adoption, business and contract disputes, personal injury
cases, etc. and property disputes. And Criminal courts are designed to determine if a person has
broken a criminal law and, if so, the court imposes punishment on the violator. From here on, if there
is a business dispute, Karakuri should file it in civil court and in case of a criminal case, Karakuri
should go to a criminal court to resolve it.
Hereby, UK startups in general and Karakuri startups in particular need to comply with UK laws. In
particular, the company's leaders should set requirements and regulations on operation and production
methods and create a working environment with integrity, ethics, fairness, equality and proper
competition. In the event of a dispute with related parties, startups should hire paralegal to help resolve
disputes more easily. From there, it will help the company comply with the law, avoid violations and
be punished by law. This helps the company to grow stronger, increase revenue, build company
image, attract talent and create prestige and trust for consumers.
With what I have analyzed in this report, I hope startups can understand the UK legal system and laws,
regulations and standards so that they can build their own business. The company does business and
grows stronger in the country and expands to other countries around the globe.

24
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