Following are the assessment questions:
- Elaborate nature of legal system.
- Give impact of law on all the business on different organisations.
- Provide appropriate formation of different business organisations.
- Recommend legal solutions used in resolving disputes for KANZO.
Business law is the field of law which covers wider range of area and tells that how organisation need to be operated. This is one of the law which is compulsory to be followed because it provides the complete guidelines through which targets are easily accomplished. The advices in this respective file will be based on the intern of KANGO(K) who will tell what business organisation can do in any of the particular situation. This file will be based on four different parts what topic that are to be covered is related with English Legal System. Various case laws will be explained that will be helpful in understanding the situation and matter in detail (Cameron, 2017).
Knowledge of the English Legal System
The legal system of UK has big role to play and it is has been playing crucial for any of the business organisation because decisions are required to be taken by considering all of the terms and condition of law. The English legal system is applicable to England, Wales, Northern Ireland and Scotland. The main concept of forming law is related with the requirement law. The Parliament House is the sovereign body which do commences law and regulation in UK and nobody has the right to ask any sort of question. It is divided further in two part i.e., criminal and civil. Criminal offence are said as non bailable where civil wrong are bailable offence. In UK, even different level of courts have the power to commence those law in which statutory department is completely is silent. While commencing any of the law in Great Britain, lengthy steps are required to be followed so that better outcomes can be achieved. It is said that legal system has been capable of handling all of the matter easily due to which negative results are found rarely in UK.
Sources of UK Law
The legal system of UK is based on four different sources whose main work is form new laws and regulation which can help to maintain peace and silence within the boundary of all four nation.
- Act of Parliament: Huge responsibility is given to the parliament and even they are doing really great job because any of the laws which they commences are effective and even helpful for taking any of the business decisions. Here, roles and responsibilities to commence law is given to the member of parliament who see the situation and commences the law (Miller and Jentz, 2017).
- Common law: It is also very effective source of commencing law because here laws are commenced and based on cases which are judged in court room. Here, judges have the power to observe the situation and introduce best effective law in the premisses of UK.
- European Union Law: This law has been commencing law within European countries since the end of World war first. This source has been very effective source for UK because laws which are being commenced here are effective and even helpful to maintain healthy environment in UK premisses.
- European Convention of Human Rights: This source has the duty to commence those law which creates positive mindset for local people by commencing those law which is related to human rights.
This are some of the sources through which law of UK is commenced and it is important for KANGO to check and each and every situation. If this sources are not considered while taking any of the business decision then there is huge chances that they might suffer from losses.
Illustrate the potential impact of the law on a business.
Law has always huge impact on business organisation as it doesn't allow to any of the decision of own and if this are taken the chances of being penalised is high. Whenever any of the business organisation is being commenced they need to know that what are those law which need to be considered so that chances of earning profit can be increased.
This is one of the theory which tells about the requirement of employee's within the premisses of organisation (Orlov, 2016). It is one of the most task to decide whether person is employee or not of any of the organisation. GIG economy clearly says that person is hired by the organisation for the short period of time and in this condition he or she will not be counted as a employee of a company.
Distinguish between Employed and Self- Employed
Employed is defined as the situation where person need to be paid wages on hourly or monthly system.
Self employed are the person who takes their decision of own.
Work is required to be done as per the orders given by the management department.
Here, person is required to take wok as per the situation as on one has the power to give them order.
Employment Law: This law is very helpful because it is related with the relation of employer and employee. In this, employer are the one who need to understand that any of the employee should not be discriminated on the basis of wages. This law is very effective because it every details are mentioned due to which any of the unethical work are not being found and helps to being positive results for organisation (Picciotto and Mayne, 2016).
Pimlico Plumbers v Smith
Issue: It was the case which is related with Mr. Smith and Pimlico Plumbers. The main problem which has found the case the Mr. Smith wants the tag of employee in Pimlico Plumber as he was working for him since longer period of time. Even Mr. Smith want all the rights which an empoloyee should get. This is the reason that Mr. Smith had filed the case against Pimlico Plumber. Here, Pimlico plumber. wants to say that he is one of the self employed and even he have all those evidences which can prove this very easily.
Judgement:After understanding the situation the judges of supreme court decided that Mr. Smith should be declared as the employee of Pimlico plumber because he was working since very long period time for him. Even GIC economy says that if Mr. Smith would not be his employee that why is working since very long period of time. In short, Mr. Smith should gets all the rights which and employee should get even benefits should also be provided to him.
Conclusion for given scenario
If worker of K's were held as the employee of the company then it would have shown different impact on organisation such as:
- Worker will not be allowed to take their decision of own.
- There delivery system will not be affected due to which faith among customer can be maintained easily.
- Salary would be required to paid to every employee's as per there working capabilities.
Examine the formation of different types of business organisations
As the name suggest that it has some limitation on the ground of what they have invested or guaranteed to the company. Limited companies are those which are legally distinct in nature or have their own entity (Schulman and Lesser, 2017). In this the firm's finance is separate from the personal finances of the owner. In the case of limited company the company is taxed separately, if the company become insolvent,the shareholder's personal assets remains protected. The company owns all profits and pays taxes on them ,distributes a portion to shareholders as dividend and keep rest as working capital. Major type of limited business organisation are explained below:
Limited Liabilities Company(LLCs): This types of company is beneficial for investor because they are liable only for the amount of investment within the company. It is also the mixture of Partnership and small business organisation. There are number of rules and regulations which are applied on LLCs. The legal way to commence limited liabilities company is explained below:
- Name and address is required to be selected.
- List of total number of members are also required to be mentioned.
- Memorandum of Association is must.
- Article of Association is important part.
All this documents are needed to be submit in Companies House so that further process can be done.
Corporation: This types of business organisation are very large in terms of investment and even proper team is required so that business activities can be conducted smoothly. This types of organisation do get hundred of opportunity to earn profit because business do covers large area (Tushnet, 2017). Capacity to sue and be sued has been given to this types of organisation. The actual method to commencing corporation is explained below:
- Name of a company should be decided.
- Address is also required to be selected for conducting business activities.
- Name of Shareholder's and Director's should be decided for taking business decision.
- Memorandum and Article of Association is must.
- SIC number should be obtained
As there are various types of limited company it is important for any of the organisation to understand for them to select that which one will be helpful to earn profit. In context of K's they should setup Limited Liability company as they are going to perform business activity as smaller platform. Even there liabilities will also be protected in it and they will get number of ways to raise additional amount of money
Recommend appropriate legal solutions to resolve areas of dispute
- Case Scenario: Dispute has taken place between KANGO and their IT supplier. Here both of them wants to take the help of alternate ways to resolve it because litigation process consumes longer period of time .
- Alternative disputes resolution : In this all the conflicts or disputes of both the parties are solved without involving any legal action. This mainly focuses on giving long lasting outcomes of the disputes, are less formal in nature and gives results with less time and cost consuming method. ADR provides opportunities to resolve the disputes in a private forum. Various ways to solve disputes in alternative disputes resolutions are Conciliations, Mediation and Arbitration.
- Conciliation: In this method of alternative disputes resolution, a person is hired named conciliator who meets personally with both the parties to solve the disputes between them and in this they are free to agree or disagree on the decisions of conciliator as does not involve any legal binding. A conciliator is a person who always try his best to find out the common ground to solve the disputes without being biased.
- Mediation: It is the process on reaching a mutual decision with the help of mediator. This helps in resolving the disputes between parties on a mutual understanding of them without any litigation. Mediator is the person who does not solve the case but helps the parties to communicate and settle disputes by themselves (Twomey and Greene, 2016). this method of solving disputes is more significant when it comes on the part of family issues, neighbour or partners.
- Arbitration: It is the method of involving third party named as Arbitrator. Arbitrator is an impartial person who has the power to resolve the disputes by hearing the issues of both the parties. Here the final decision is imposed by the arbitrator on which the parties are supposed to agree in case of binding and if it is non binding than the decisions are final only if both the parties agree to it. Arbitrator is always neutral to the decisions given.
From the above alternative dispute resolution process, it can be understood that dispute which has taken place between KANGO and its IT supplier can be solved by the method of Conciliation because both party is interest to solve there dispute without court proceedings. It will be helpful as well for them because cost and time, both will be saved. In addition, it can be said profitability of company will not be effected if case can be solved by this process. Even there will not be requirement to hire new IT suppliers who can solve there issues related to software which they uses for delivery.
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It is concluded from the file that legal system of UK is very effective and they makes all those law through which their organisation goals can be accomplished. Parliament of UK is sovereign body. There are four sources of law in UK which is helpful in producing effective result for any of the business organisation. There are several types of limited company and it is the choice of member that how much they can invest and which type of organisation they want to form. Alternative Dispute Resolution is the suitable way to resolve the dispute were government have also given legal permission to it. It is helpful because it reduces the burden of court.
- Cameron, P., 2017. International energy investment law: the pursuit of stability. OUP Catalogue.
- Miller, R. L. and Jentz, G. A., 2017. Business law today: The essentials. Cengage learning.
- Orlov, V., 2016. Introduction to business law in Russia. Routledge.
- Picciotto, S. and Mayne, R. eds., 2016. Regulating international business: beyond liberalization. Springer.
- Schulman, S. H., Moscow, C. and Lesser, M. R., 2017. Michigan Corporation Law & Practice. Wolters Kluwer.
- Tushnet, M., 2017. Comparative constitutional law. In The Oxford handbook of comparative law.
- Twomey, D. P., Jennings, M. M. and Greene, S. M., 2016. Anderson's Business Law and the Legal Environment, Comprehensive Volume. Nelson Education.