The Legal Framework of Business Operations in the UK: Kango Case Study

Desklib provides past papers and solved assignments for students. This report analyzes UK law and offers solutions for business disputes.

The Legal Framework and Legal Solutions
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Table of Contents
Introduction......................................................................................................................................3
Task 1 (LO1)....................................................................................................................................4
Task 2 (LO2)....................................................................................................................................6
Task 3 (LO3)....................................................................................................................................9
Task 4 (LO4)..................................................................................................................................11
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................12
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Introduction
Legal system of a geographical location helps to maintain the law and order of the country so
that strict discipline can be maintained. In addition to that, in UK, there are three legal systems
for various regions such as England and Wales. Further, the legal system of Scotland and Ireland
are also different. Further, it has been noted that legal system of UK is not a written document.
Therefore, the government faces difficulties at the time of framing laws and orders. On the
contrary, the sources of the laws are written one so that the apex court can refer to them at the
time of providing judgement. In the present study, the sources of English law will be discussed
so that the individual can gain deeper insights about UK legislation. In addition to that, various
types of organisations will also be discussed in this study so that the legal structure of Kango can
be improved. Further, the provisions of contract law and employment law will also be discussed.
In this study, the case of Kango will be discussed.
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Task 1 (LO1)
Introduction
It is essential for business organisations to develop a keen understanding of the legal system that
is implemented in the market economy. In order to perform their business in the UK market
economy, it will be beneficial for KANGO (K) to understand the various sources of UK law. The
following study will provide a brief understanding of the legal structure of the UK; the ways
English laws are developed and implemented in society.
Different sources of Law
Laws are necessary for the functioning of a society in a civilised form as it enables the members
to understand the benefit of being ‘in order’ and ‘in compliance’ to various norms that provide
the society with form and structure. The English legal structure is based on laws that are created
with the intention of providing English society with a civilised form (ICLR, 2019). The UK laws
are developed from two major sources. These sources can be determined as primary and
secondary sources of the English legal system.
Primary sources:
 Legislations- These laws are created due to the modifications in the different
Parliamentary Acts that the country experiences. Statutory instruments and Council
Orders are some of the primary sources of law developed in UK society (Partington,
2016).
 Case Laws- These laws have been devised by the higher courts in the UK. Several cases
that were adjourned to court led the courts of England and Wales to develop these laws
and every court operating in the jurisdiction has to follow these laws (Capra and Mattei,
2015).
Secondary sources:
 Apart from the primary sources of law that the UK courts follow, there are several other
sources that the courts consider while providing a statement regarding a certain case
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scenario. Texts, commentaries and opinions developed by legal authors are considered as
sources of law for the UK courts.
 The varied opinions of legislative experts, foreign courts’ decision have been a prevalent
source for the UK legal system to develop its own laws that seem relevant to the scenario.
Role of government in law making
The UK parliament develops laws following several stages. Laws are initially presented as Draft
Bills in either the House of Commons or the House of Lords. The bills pass through First and
Second Readings in both Houses in order to develop a clear understanding of the benefits and
drawbacks the law could present in the society. The Committee and Report Stage provide a
detailed analysis of the law and any possible amendments that would enhance the veracity of the
law in UK society. The Third Reading provides the parliament with the ability to perform a final
brushing of amendments on the draft bill. The Royal Assent is required for every Bill to be
implemented as a law in the UK society and introduced in the constitution as ‘Act of Parliament’
(UK Parliament, 2019).
Application of statutory and common law in courts
The Common Law or Civil Law is applied in UK courts through the judgements passed by the
court in certain cases. Court rulings enhance the ability of UK parliaments and courts to develop
the legislative structure of the country (Bjorge, 2015). Civil Laws are implemented in UK courts
through tribunals, hearings and appeals. Statutes or the statutory laws are implemented in the UK
courts by the parliament from the day of commencement of the Acts.
Conclusion
It is observed that the government through strict procedures develop the legal structure of UK
society. Businesses and individuals operating in the UK have to follow these regulations
efficiently and adhere to any reformations the judiciary may incorporate in the Acts.
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Task 2 (LO2)
Illustrate the potential impact of law on a business
In the present case study, it has been mentioned that Kango provides food item to their clients. In
addition to that, the primary motive of the organisation is to provide quality food to their clients
so that their competitive position of the organisation can be improved in the market. On the
contrary, the clients of the organisation have recently complaint that the quality of food is
deteriorating day by day. Thus, they are getting agitated. Moreover, due to technological
glitches, the customers have failed to receive their orders despite, making full payments. Thus, it
can be mentioned that the organisation has breached the contract that has been framed between
the management and the clients.
P3
As per the comment of Na (2016), contract law is an agreement that is being framed among the
individual and the organisation so that their interest level can remain protected. A contract can
last only for a time period. Moreover, a contract can be breached if it fails to protect the interest
level of both the parties. The individual who proposed the agreement is known as offerer and the
individual who accepts the agreement is known as an offeree. A contract can be terminated if
the offeror or the offeree dies and does not want to continue the agreement (Na, 2016).
In the given case study, it has been mentioned that Kango provides food service to their clients
through online medium. Thus, in this study, the provisions of Sale of Goods Act, 1797 will be
incorporated. Part 2 of Sale of Good Act, 1797, has mentioned that at the time of selling a good
to the customer an agreement need to be made between both the parties (legislation.gov.uk,
2019). However, in the present case, the management of Kango have not framed an agreement
with the customers. Thus, provision of sale of Goods Act, 1797 has been breached
(legislation.gov.uk, 2019).
Section 30 of the concerned law has mentioned that, the customers have the right to reject the
product if their quality differs from the one mentioned in the agreement. Thus, in the present
case, the clients have the right to return the food items delivered to them by the organisation
because they were cold and was not timely delivered to the clients due to technological glitches.
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Lastly, section 24 of the concerned act has mentioned that if organisations fail to maintain the
quality of the product them they can be penalised. Therefore, in this case, the management of
Kango has failed to maintain the quality of food thus; they can be penalised
(legislation.gov.uk, 2019).
Case Example
In a similar case between Adams v Lindsell (1818) 106 ER 250 the defendant had wrote to the
claimant that the individual is interested for selling the wool to the claimant. However, due to
miscommunication, the letter has fails to reach on time. Moreover, the reply of the claimant has
also not reached to the defendant. Thus, the defendant has assumed that the claimant is not
interested on the offer and has breached the contract. Moreover, both the party has appeared to
the apex court for the final judgement. After paying attention to both the parties, the apex court
has charged fine from both the parties.
Employment Law
As per employment law, the organisations need to take care of the employees so that they can
their motivation level can be improved. In the present case study, the employees of K are
instructed to wear their uniform, so that they are identifiable. In addition to that, partners of K’s
courier are also asked to sign a contract regarding their availability. For instance, they need to
inform the parent company 48 hours before if they are unable to provide their services to the
customers (gov.uk, 2019).
Moreover, the employment law of UK has mentioned that the management need to treat all the
employees equally so that organisational atmosphere can be improved. As per National
Minimum Wage Act, 1998, the employees of organisations need to be paid a minimum salary
of 7.83 pounds. In addition to that, working regulation Act, 1998, has mentioned that the
employee is free to receive the payment for 28 working days in the month despite of taking
leaves (legislation.gov.uk, 2019). Moreover, in the present case study, the employees of K are
instructed to inform the organisation prior to 48 hours of taking a leave. Thus, in this case
provisions of working regulation Act, 1998 has been breached (legislation.gov.uk, 2019). The
Employment Rights Act, 1996 has mentioned that, the working atmosphere needs to be flexible
so that employees can be motivated. In addition to that, employees need to receive holidays like
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childcare leave so that they can maintain a balance between their professional and personal
life (legislation.gov.uk 2019). On the contrary, the concerned organisation has failed to provide
leaves to the employees. Thus, the provisions of The Employment Rights Act, 1996 have been
breached.
Case example
In a similar case between Capita Customer Management ltd VS Ali, the management of capital
has not paid paternity leaves to the male employees. However, the management has paid the
maternity leave to the female employees. Thus, in this case provision of Employment Right Act,
1996 has been violated.
Conclusion
Thus, in the present section of the study, the importance of employment law has been discussed
so that productivity of the organisations can be discussed in an effective manner. In addition to
that the issues of the concerned organisation have also been discussed in the concerned study.
Moreover, employment right Act has also been mentioned in this study. Lastly, working
regulations Act, 1998 has also been focused here.
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Task 3 (LO3)
Examine the formation of different types of business organisations
The various types of business organisations as per their legal structure have been discussed
below:
Partnership organisations
In partnership, business organisations both the parties have equal responsibilities so that business
expansion can take place in an effective manner. In addition to that, in partnership business, the
organisational decisions are to be taken by both the parties so that sustainable development can
be measured. Moreover, in partnership business, the earned profit is being equally divided
among the members so that future conflicts can be minimized. On the contrary, in partnership
business, conflicts occur because of difference in the viewpoint (Na, 2019). The advantages and
disadvantages partnership business has been discussed below:
● In Partnership business, the work pressure is divided equally among the partners so that
competitive advantages of the organisations can be boosted.
● In partnership business, the decision-making process is done collaboratively so that the
issues can be catered in an effective manner (Na, 2019).
● On the other hand, competitive position of the organisation may get affected due to
conflict among the managers of organisations.
In order to fund the organisation both partners need to invest on organisations.
Sole-tradership
In sole-tradership all one particular individual handles the responsibilities so that the objectives
of the organisation can be fulfilled in an effective manner. In addition to that, in sole tradership
business, the entrepreneur is responsible for taking all the organisational decisions so that
competitive position of the organisations can be boosted. The advantages and disadvantages of
sole tradership have been discussed below:
Advantages
● In sole tradership, the entrepreneurs take the decisions so that objectives can be fulfilled
effectively (Na, 2019).
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● In sole tradership the profit of the organisations is being enjoyed by the entrepreneur
On the contrary, the disadvantages of sole tradership have been discussed below:
● The entrepreneur is undertaking the risk of the business organisation. Thus, the rate of
risk is more as compared to other organisations.
In order to fund sole tradership business organisation, the entrepreneur need to invest capital.
Moreover, the individual may seek financial help from the government so that business activities
can be completed in an effective manner (Na, 2019).
Public limited organisation
The funding process of the limited organisations is not only limited to the members of the
organisations but the employees are also responsible for the payment. In addition to that,
stakeholders are also responsible for paying the funds of the organisation. Therefore, the
management need to maintain an effective relation with them. Thus, it can be mentioned that in
limited organisations the funding process is divided among the directors and the stakeholders so
that market position of the organisation can be improved (Miller and Jentz, 2017). In private
limited business, the board members take the decisions so that cooperation can be maintained.
The advantages and disadvantages of limited organisations have been discussed below:
● The board members of the organisations are taking the decisions so that their importance
can be improved.
● On the other hand, due to team conflict the profitability of the organisation may get
affected.
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Task 4 (LO4)
Recommend appropriate legal solutions to resolve areas of dispute
In order to resolve the issues between the management and the IT suppliers’ effective
communication need to be conducted between both the parties so that future relation can be
maintained. In addition to that, the IT suppliers need to present their issues to the management so
that they can look into the matter. Further, the suppliers need to reduce the price of the products
so that the organisations can easily afford them at the time of need. The management of the
organisation need to plan the budget before hand does that financial crisis can be mitigated in an
effective manner.
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Conclusion
Thus, in the present study, the legislation of UK has been discussed. In addition to that, features
of the legislation has also been critically analysed here. In addition to that difference between
various laws have also been critically analysed so that deeper insights can be gained about the
topic. Initially, in the study, contract law and employment law has been discussed. Further, case
examples have also been discussed so that the laws can be critically analysed. In addition to that,
legal structure of the organisations has also been discussed along with its advantages,
disadvantages and funding. Lastly, the steps of improving UK laws have also been discussed
here, so that the individuals conducting research based on the same topic can use the study in
future.
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