Legal Framework and Solutions for K.K (KANGO) Business

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The Legal Framework and Legal
Solutions
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CONTENTS
Introduction................................................................................................................................3
Task 1.........................................................................................................................................4
P1............................................................................................................................................4
Sources of Law...................................................................................................................4
P2............................................................................................................................................4
M1..........................................................................................................................................6
Evaluation of effectiveness of Legal System in terms of recent reforms and development
............................................................................................................................................6
Task 2.........................................................................................................................................7
P3............................................................................................................................................7
Impact of Law on Business................................................................................................7
M2..........................................................................................................................................8
Difference between regulations and legislations and its impact on business.....................8
D1...........................................................................................................................................8
Evaluation of Law..............................................................................................................8
Task 3.......................................................................................................................................10
P4..........................................................................................................................................10
Types of Business Organisation.......................................................................................10
P5..........................................................................................................................................10
Management and funding of Business.............................................................................10
M3........................................................................................................................................12
Advantages and Disadvantages of Business Organisations.............................................12
D2.........................................................................................................................................13
Task 4.......................................................................................................................................14
P6..........................................................................................................................................14
Legal Solutions for resolving dispute..............................................................................14
M4........................................................................................................................................14
Comparison of Legal solitons..........................................................................................14
D3.........................................................................................................................................15
Effectiveness of Legal Solutions......................................................................................15
Conclusion................................................................................................................................16
References................................................................................................................................17
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INTRODUCTION
In every business complying with law is an essential part. It not only defines the rights of the
parties but it also gives legal securities to all the entities connected to business. For
complying with the provisions of one law, one must have the basic knowledge of law related
to the business. The present report describes the regulatory framework of the legal system of
the UK. The assignment consists of several tasks which elaborates different laws and
formation of organisations. The report is made for providing knowledge to the employees of
K. K (KANGO) is a business set up by Jay and Alex which provides online services of meals.
The business deals with both the restaurants and clients. After successfully carrying business
in Ealing London Suburb, they aim to provide services to other Suburbs of London. But the
business is dealing with some issues related to their IT services. The report shall give the K a
basic idea of how law is formed and enforced and shall give legal solutions for dealing with
the issues.
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TASK 1
The first part of the assignment is the report which is made with an objective to give the
knowledge of legal system and how law is formed in the UK. The report is made for the
Operations Staff of K, so that they can understand the legal framework and its effectiveness
and importance in business.
P1
For maintaining the peace in the Country and for creating a conflict free environment, the
government needs a legal system which helps them to enforce law in an effective manner.
The legal system is a comprehensive term and is adopted by the government. The legal
system includes all the applicable laws and Acts and it also regulates the formation and
enactment of law.
Sources of Law
Law has been derived from number of sources, these sources have helped in forming the
structure of law.
 Legislation: The legislation is the primary source of law. Laws framed by the
Parliamentary bodies are known as the legislation. These are the codified statutory
laws which defines different obligations and provide rights to people.
 Common Law: The precedents in courts are applied to the cases of similar
circumstances. These are although uncodified source of law but are majorly applied
in the situations where statutory fail to identify any solution for the same (Stephen,
2018).
 Convention and Treaties: There are several international convents and agreements
which are signed within the countries which aims at addressing some international
issues or may contain some trading law. The laws are made by the country for
applying the provisions of these covenants.
P2
Law Making Process by Government
Before formation of any law, a document is drafted which is called “Bill”. A bill is the
proposed document which by acquiring the consent of Monarch becomes a law. A bill does
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not acquire direct consent from Monarch, it goes through several stages. Once the both the
Houses passes the bill the bill is then sent for obtaining ROYAL ASSENT.
Figure 1: Parliamentary Process
Source: (Darrenumney.com, 2019)
In the First reading, bill is read to the House of Commons which is followed by the second
reading where the members debate on the proposed bill. The next is to vote for the
amendments and suggestions made in the second reading and then bill is passed to committee
for critical scrutinizing of the suggestions at the committee stage and the amendments are
made according to suggestions made by the House of Lords which is called third reading
(Mason and Harrison, 2015). And after gaining full approval from both the houses bill is sent
for obtaining Royal Assent.
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Figure 2: Procedure of passing bill in House of Commons
Source: (Darrenumney.com, 2019)
M1
Evaluation of effectiveness of Legal System in terms of recent reforms and
development
There were major law reforms took place in the last decade. In the first phase there were
establishments of Ministry of Justice in the year 2007 and the functions performed by House
of Lords were replaced by Supreme Court in the year 2009. A National Crime Agency was
formulated in the year of 2013 and in 2014 Family Courts were created. In the phase 2 of the
development, the facility of online filing petition and complaints is made available in the year
of 2018. With the online services, now it is feasible for the citizens to learn about the status of
their case. The innovation and communication technologies has made the access of Justice
easy and quick. Services like video conferencing for recording the witnesses and evidences
has made the legal system more effective.
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TASK 2
Executive Summary
The report has been made with the objective of providing information to K regarding
different laws applicable to business and this part also discusses if the employees who are
designated by K as self-employed are actually employed or self-employed.
Introduction
There are many issues which arise out of day to day business operations and these conflicts
sometimes give rise to some legal action. Therefore, it is important then people dealing with
business have the basic understanding of the laws which has impact on their businesses.
P3
Impact of Law on Business
Company Law: A company has a different identity from its owners and hence is treated as a
legal person. The Company Act 2006 is incorporated with the objective of dealing with
subjects like incorporation of company and classifies the company based on different
categories. The company act also indicates the responsibilities of the company and its
directors towards the shareholders of the company. For instance, if the company fails to pay
its debts then the provision of the company gives the right to creditors to file petition for
compulsory winding up of the company.
Employment Law: Employment connotes the rights of the employees and obligations of the
employer. The law indicates the limit for minimum wages to be paid to the employees based
on the type of work carried on by them (Emir, 2018). The law also gives the right to
employees to seek justice against the unfair dismissal and other unfair employment practices.
As illustrated, Employment Right Act 1996 gives the right to the employees to obtain paid
leaves for discharging their personal duties.
Contract Law: Contract is a covenant between the parties which contains the terms which
are needed to be performed by the signatories of the contract (Pattenden and Sheehan, 2016).
In case where the parties fail to perform their duties contact law give right to the aggrieved
party to file suit for obtaining remedy against the losses borne by him/her.
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M2
Difference between regulations and legislations and its impact on business
Basis Regulations Legislations
Meaning Regulations are the process
or approached adopted to for
effective enforcement and
monitoring of law.
Regulation is a pathway
which is followed to for
forming legislation.
Legislature enacts the
statutory laws which are
termed as legislation. These
law contains the description
of rights and also includes
the description of penalties
and punishments with which
the violator of the rights is
charged with.
Source Regulations made by
Government and Self-
regulations are formed by
the organisations or
individuals.
Laws are made by the
bodies of Parliament.
Impact on Business Regulations can be made by
the business organisation
and in case of breach the
person breaching may be
shown the door.
In case of breaching the
laws the business may be
forced to wind up and the
business may also lose its
goodwill (James and
Hodgkinson, 2015).
D1
Evaluation of Law
Every country has its own legal system, the country where people live in has to follow the
legal system of the country. Though the legal system of the UK is not fully codified but the
process of obtaining justice has been made swift. Specifically, the establishment of facility of
Alternate Dispute Resolution is one of the effective method for resolving conflicts. As
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compared to other countries the law is based on both statutory and common laws whereas
there are countries who completely rely on the common laws for execution of Justice.
Conclusion
The decision of whether the employee is employed or self-employed is typically based on the
tax paid by the employee. But when a self-employed employee does jobs as per the
specifications of the employer then he/she cannot be designated as self-employed. There
employees of K are working as per the working requirements of K and hence are employed.
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TASK 3
P4
Types of Business Organisation
 Sole Proprietor: The business is managed and monitored by a single person and
possess unlimited liabilities. As there is only one person involved hence the decisions
are quick and the setting up of the business is quick.
 Partnership: The partnership business is carried on by two or people with the
objective of earning profits by carrying out a common business. The partners of the
business share sever and joint liabilities. Partners of the company also have unlimited
liabilities and are responsible for acts of each other.
 Company: The process of incorporating the company is lengthy but the owners do
not have unlimited liability. A limited company which is limited by shares imposes
limited liability on its shareholders. K shall be benefited from registering itself as the
registered company as there is a corporate veil between the company and its owners.
P5
Management and funding of Business
Company Management Funding
Sole Trader Managed and controlled by
one person.
The owner has to invest his
own funds or may acquire
loan from friends or from
some financial corporation.
Partnership Managed and controlled by
the Partners.
The funding is done by the
partners in the decided
shares. They may also
acquire loan from bank in
their personal names or in
the name of the business.
Company Managed by the
management authorities and
controlled by the directors of
the Company.
The funds can be raised by
issuing of shares and
debenture. Loan can be
acquired in the name of the
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company but companies
usually raise capital through
public funding.
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M3
Advantages and Disadvantages of Business Organisations
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Advantages Sole Proprietorship Formation is easy and quick
Tax Benifits
Quick making of Decisions
Partnership Shared liabilities
Registration is simple
Company Different Legal Identity
Perpetual Life
Limited Liability
Disadvantages Sole Proprietorship Unlimited Liability
Business ends with death of
owner
Partnership Opinions may differ
Unlimited Liability
Company Large Investments
Delay in operations