BSc Business Management Exam Paper on Introduction to Business Law

This exam paper is for BSc Business Management students studying Introduction to Business Law. It includes multiple-choice, short answer, and longer answer questions on topics such as the English legal system, tort law, sources of law, and judicial precedent.

Page 1 of 14
BSc (HONS) BUSINESS MANAGEMENT WITH
FOUNDATION
SEMESTER TWO EXAMINATION 2021/2022
INTRODUCTION TO BUSINESS LAW
MODULE NO: BAM4011
Exam Paper Release Date & Time: Saturday 23 July 2022 at 10:00am
Submission Cut-off Date & Time: Monday 25 July 2022 at 10:00am
INSTRUCTIONS TO CANDIDATES:There are THREE sections in this paper, answer
ALL THREE sections

Page 2 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
Section A: Multiple-choice questions – There are FIVE questions. Answer all
questions. There is one correct answer per question. Suggested time 10
minutes. (5 x 2 = 10 Marks)
1. The English Legal System refers to the law in which of the following
countries? (2 Marks)
a. England only
b. England and Wales
c. England, Scotland, and Wales
d. England, Scotland, Wales, and Northern Ireland
Ans. England and Wales
2. Which of the following is NOT a source of English law? (2 Marks)
a. Statute
b. Caselaw
c. Orders in Council
d. Orders of the European Commission
Ans. Order in Council
3. Which of the following correctly describes the elements for a legally
enforceable contract: (2 Marks)
a. Offer and acceptance
b. Offer, acceptance, and consideration
c. Offer, acceptance, consideration, and intention to form legal relations
d. Offer, acceptance, and intention to form legal relations
Ans. Offer, acceptance and consideration
4. What is the minimum age permitted for a person to be appointed as a
director? (2 Marks)
a. 16
b. 18
c. 21
d. No minimum age

Page 3 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
Ans. 16
5. How many persons are needed to form a UK company? (2 Marks)
a. Two
b. One
c. Three
d. Four
Ans. One
Section B: Short answer questions - There are FIVE questions. Answer all
questions. Suggested time 50 minutes. (5 x 6 = 30 Marks)
1. Describe the principal characteristics of the legal system of England and Wales,
inclusive of court Structure, the judiciary, lawyers, and lay participation in the
system (magistrates, juries and tribunal members). (6 Marks)
Ans. The criminal device of United Kingdom withholds monarchical law
wherein one individual has the only management government who's enumerated
as Head of the State which prescribes sure role, responsibility, duty, rights,
operation of characteristic that are prescribed with the aid of using treaties set up
through regulation. It is usually identified that individual having such
authorization over people are impartial in nature this means that that their
movement need to non partial and non bias nature executing, making and
adjudicating legal guidelines in law of society. The operation of regulation in
England and Wales territory is ruled via way of means of English criminal device
which collaborates the law enacted and creates as priority shape in tribunals
interpreted in reasserts like case regulation. The Parliament has main and vital
electricity to such legal guidelines that is set up specifically categorizing homes
which might be House of Commons and House of Lords. Where the earlier
accommodates electoral strength through Citizens and Head of State which is
likewise specifically the a part of such institution. On different hand, judicial

Page 4 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
powers are below the jurisdiction of courts and tribunals in which judicial officer
has responsibility to interpret rules and adjudicate the problem regarding all
elements of regulation especially civil and crook regulation. The hierarchy of
courtroom docket shape are prescribed as Supreme Court being at apex role
that's seemed as remaining inn for submitting attraction for his or her grievances
and coping with state of affairs included below jurisdiction of UK case legal
guidelines (Meggitt, 2022). The 2d class is Court of Appeal that is divided into
civil and crook courtroom docket of enchantment which in fist case are dealt via
way of means of High Court and courtroom docket that are much less critical at
the same time as latter include appeals laid in Crown department. Whereas,
thirdly the department is appellate tribunal called High Court which incorporates
own circle of relatives department, queen bench regulating instances of
settlement and business regulation, divisional courtroom docket, administrative
bench, Chancery tribunal advert so on. The essential department of tribunals as
crown courts offers crook instances transferred from Justice of the Peace bench
referring to penalization, Justice of the Peace tribunal attempts precise
courtroom docket consists of intending of crown and own circle of relatives
courts. County tribunal offers with civil instances.
2. What is a Tort? Narrate in detail Tort of negligence and breach of duty of care. (6
Marks)
Ans. The idea of tort is a criminal incorrect wherein one individual is sufferer of the
incorrect dedicated through different character. Where individual acting their
characteristic tortuous legal responsibility inflicting in liquidated damages to
individual aggrieved for such loss and damages. The regulation of torts is
unmodified regulation. It entails diverse factors that can stand up and cause
careless motion on different individual component one such is negligence. Where it
consists of such component evolving from fault of different character careless
attitude. In the case of Donoghue v. Stevenson in which House of Lords laid down
selection of their ruling that an character can not sue or make different man or

Page 5 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
woman chargeable for losses and damages incurred on first birthday celebration in
which there has been no contractual duty on different individual.
After this example House of Lord interpreted relevance of obligation to take care as
substantial needful of negligence. These kinds of regulation are especially visible
among neighbors, employer-customer legal responsibility to take care and son on.
It consists of 3 fundamental requirements for claiming repayment in opposition to
negligence while those crucial are complied that are obligation of care, breach of
duty in which such character has duty and such obligation arises in which individual
brought on loss and damages in affordable occasions in which an man or woman
should keep away from such omission (Moloney, 2021). The majors detail is
obligation of care that is arises from the above case stated which obligates an
person owing duty in which its movements are intently connected with hobby of any
other affecting them. In the case of Anns v. Merton London Borough Council,
confined the idea of this detail introducing phrases like equity and proximity of taking
due care that is consists of in affordable situations in general.
On different hand breach of obligation, instances are offered earlier than tribunal
wherein man or woman violated their duty underlying obligation to care wherein
onus of evidence lies on alleged person for proving their innocence. There are sure
recommendations that are laid to decide affordable man or woman acting its
movements moreover to violation ensuing aggrieved in vulnerable position. These
acts of defendant are one at region of employment, societal responsibility on
alleged, proportionate of peril is involved, affordable steps are taken through
individual in such conditions defendant isn’t always responsible for negligence.
3. ‘What is law?’ and `why does the law exist?’ Discuss and explain some of the
main theories relating to ‘Sources of Law’. (6 Marks)
Ans. Law is series of rules, regulation, ordinance, popular and standards which is
about in society through legislators or regulation makers directing its management in

Page 6 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
society in addition obligating people to observe them. The have an effect on of those
are displayed in administering of social corporations that are said in codified layout
efficaciously inside their jurisdiction. These regulation regulates domination and
authorization over behavior of residents however such government can't deprive
people from their essential rights as installed via way of means of regulation besides
in a few exception (Lemassel, 2020). The not unusual place prison device are in
part in written shape so such rules isn't codified which contains resets of regulation
not unusual place and statutory regulation. Where the earlier has compulsory
requirement on regulation makers wherein judicial priority which appellate and apex
courtroom docket rulings delegates orders to their sub ordinates for complying with
the instructions laid down specially case. Whereas, statutory supply of regulation
determines their electricity from Houses of Parliament which can be House of Lords
and House of Commons which might be in written layout wherein regulation is
enacted following numerous step as issuance of draft, forming into bill, electoral
votes from each homes and crown and majority votes makes a decision enforcement
of law accredited or rejected through legislative assembly.
4. What are the three elements which a Claimant must establish in a negligence
claim? (6 Marks)
Ans. Negligence is a tort which arises whilst someone has obligation of care and
the latter violated its overall performance ensuing in non favored loss and damages
omitting such character hobby in affordable circumstances. There are especially 3
factors to represent such tortious act.
The first situation is obligation of care wherein for making alleged chargeable for
negligent act on their component this crucial need to be complied. This refers that
each man or woman should owe responsibility take right forethought and interest
even as it incorporates their feature wherein such movements lays sure pointers

Page 7 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
which have to be complied warding off in addition non ethical, immoral and illegal
act.
The 2nd circumstance is duty need to be laid underlying claimant hobby
administering relation of each the events and placing standards for correct behavior
of sports wherein owing obligation in the direction of the plaintiff isn't always
sufficient however have to additionally contain willpower for status quo of sports
that's decided through judge.
The 3rd situation is violation of responsibility to take care in which alleged has now
no longer capable of comply the requirement standards in which an character owes
or does now no longer have obligation to take take care of fulfilment in their
behaviour (Nästega, 2022).
The fourth circumstance is real causation of omission in which claimant sues
defendant for negligent moves displaying their liabilities for proving violate moves on
a part of alleged inflicting breach inflicting real harm on a part of aggrieved.
The 5th proximate purpose which entails felony causation which understand top
causation of such damages and accidents which includes movements which can be
foreseen via way of means of such man or woman main to breach incurred on its
component(Burns,2018.).

Page 8 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
The 6th detail defines that affordable care isn't always enough to represent
negligence such breach have to contain non compliance of defendant exercise due
care wherein it has obligation of taking warning and its failure ended in harms
brought about to body, image, belongings or asset, low-budget harm or intellectual
damage and so on.
After proving and complying all of the factors claimant can call for repayment from
the alleged party.
5. Illustrate and explain the rules that apply to judicial precedent and statutory
interpretation; by citing prominent legal principal based on, ‘Ratio Decidendi’
‘Obiter Dicta’. (6 Marks)
Ans. The idea of precedent particularly refers to behave or rulings laid down
through tribunal which adopt previous and former laid judgement heard and
determined as instance having comparable information and problems for referring in
next motion and behaviour of events in general. The judicial priority are classified
into diverse divisions that are first is accepted precedent that is complied with the aid
of using courts route established (Baillie, 2019). The 2d one is persuasive wherein
rulings of tribunal does now no longer comply any accountabilities bit holds ingratiate
measures. Where overseas tribunals choices are retaining persuasive cost in
different tribunals Lastly, precedent which Salmond opined as mere execution of
previous regulation.
The most important rule of Obiter Dicta has been interpreted in diverse decisions
and ruling laid down with the aid of using courtroom docket expressing judicial
government command has no big cost in courtroom docket. It does holds any price
for concluding any challenge however used as factor for handling diverse conditions
in case of confrontation and disputes arisen.

Page 9 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
On different hand ratio decidendi refers to reasoning for choice laid in tribunal in
which such rules aren't utilized in contemporaries case surroundings however used
for concluding selection laid down through courtroom docket in general. These are
phase of priority which holds price in courtroom docket for laying as instance in
upcoming and destiny instances resolving war of words.
Section C: Longer answer questions – There are THREE questions. Answer all
questions. Suggested time 60 minutes. (20 x 3 = 60 Marks)
Question 1 (20 Marks):
‘Bits and Bobs’ is a scrapyard owned by Fred Dust. The scrapyard sits on a sizeable
plot of land, extending to over 5 acres. Some of the scrapyard lands share a
boundary with neighbouring houses. A number of homeowners have complained and
threatened legal action in relation to various aspects of Fred’s business.
Consider the following complaints and advise the property owners whether or
not they will have a claim in nuisance against Fred for the issues complained of.
Complaint 1: Mrs Khan
Mrs Khan’s bungalow lies close to the west boundary fence of the scrapyard.
That edge of the scrapyard is overgrown with trees and weeds. Mrs Khan has
complained that some of the tree roots are affecting her patio and causing the
patio slabs to crack. She has also noticed some cracks appearing on the rear
wall of her property and has been advised by a local builder that the
foundations are being affected by the tree roots.
Complaint 2: Dave and Molly
Dave and Molly rent a house to the south side of the scrapyard. They have
complained about two issues. One is the smell, and the other is the noise.

Page 10 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
Dave works night shifts as a paramedic. He is home by day and often
sleeping. He has complained that the noise from the scrapyard keeps him
awake as the workers play loud music and the machinery which sorts the
scrap makes constant loud noise. No one else has complained about the
noise. Molly has complained about the smells from the scrapyard. There is a
large pile of landfill waste which creates a foul odour and an
incinerator that smells. She cannot enjoy her garden at the weekends and
cannot open the windows, even in summer.
Complaint 3: Novel Orchids Ltd
Jenny owns a plant nursery, ‘Novel Orchids Ltd’. Her nursery shares a
western boundary with ‘Bits and Bobs’. Jenny has complained that her rarest
Peruvian Orchids have died as a result of the smoke and toxic fumes from the
incinerator.
Advise Mrs Khan, Dave and Molly and Novel Orchids Ltd of possible claims in
nuisance against Fred.
Ans. In the first case, Mrs Khan has authority and right to report complaint for
nuisance as one of the essential of this tortious liability is arising as it is causing
annoyance and interference to other person land. The requisite of this type of tort
lays down that where any injury or damage is caused infringing their rights legally
due to wrong committed by their action disturbing and violation their rights. In the
case property owner was closely related with respondent residence at west where
the over growing branches scrapyard was touching their patio and leading to cracks
damaging its property (Allen, And Blackham, 2018). But after many complaints
also they did not paid any heed and due attention, So claimant had right to take
action on nuisance right.

Page 11 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
In the second situation, both essentials are violated where there was complaint for
noise and smells of plant which lays down that any wrong conducted with intent to
cause violation of their legal right or causing annoyance and damages are incurred
on enjoyment over other person property shall not be intervene. If such situation
comes in existence then nuisance can take place. This case includes tenants living
on south side where they were annoyed of continuous noise disturbs the claimant
working in night shift by workers playing loud music and machinery which involved
construction disturbing its right of enjoyment at its residence by Dave and Molly was
annoyed of smell from the plants infringing their legal rights so they can complain for
nuisance conducted.
In the third scenery, the Bits and Bobs owner Fred is liable for nuisance under this
scenery because the property owner Jenny plans were damaged due to the
emission of pollutants which were polluting the environment causing their legal right
of residence.
Question 2 (20 Marks):
Magic Mug Ltd designs and manufacture mugs. They have recently produced 2,000
mugs bearing a slogan saying ‘We support the NHS’ and a rainbow logo. On 15 July
at 2.00 pm, Magic Mug Ltd posted on their social media account that the NHS mugs
are for sale at 75p per mug.
Betty sees the social media post while using her phone, travelling on a train. She e-
mails Magic Mug Ltd at 3.00 pm on 1st July asking if she could buy 500 mugs at 50p
each. Magic Mug Ltd see that e-mail but do not reply.
A national café chain, Tasty Treats, wants to buy all 2,000 mugs to use in their cafes
to show their support for NHS workers. They send one of their drivers that afternoon
as soon as they see the social media post. The van driver arrives at Magic Mug
depot at 4.30 pm and they pay for the 2,000 mugs and the driver takes them away.

Page 12 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
At 5.00 pm Betty visits the Magic Mug Ltd depot and tries to pay £250 for the 500
mugs. Magic Mug’s sales manager explains that they have just been sold and they
have none left. Betty claims she had a contract with them made before they sold
them to Tasty Treats.
Advise Magic Mug on whether an enforceable contract was made with Betty.
Ans. In this situation there has been no contractual duty of Magic Mug to
compensate damages with regards of Betty hobby as there has been invitation to
deal with on Betty element however popularity has now no longer been introduced
from the facet of business enterprise most effective the opposite party has provided
its hobby that is step one of settlement. The Carbolic Smoke ball Co. V. Carlill, which
said that mere provide for inviting to deal with isn’t always agreement. For obligating
individual to carry out motion in agreement arises wherein there’s right provide from
offerer and reputation from the aspect of offeree expressly or(Sivani, 2019). Then
there should be attention retaining sure price in financial phrases. Further it holds
criminal goal for forming criminal settlement having consensus advert idem and
agreeing on all phrases and situation and acting respective feature with the item to
obtain hobby on each events component . Therefore those situation ought to be
complied which changed into visible in case of business enterprise and cafe Tasty
Treats chain complied their overall performance however Betty has simply presented
the fee no movement turned into in addition taken. Therefore no award will be
acquired because of absence of contractual accountability
Question 3 (20 Marks):
Shreena and Gita wish to run a business buying and selling organic vegetables.
They have decided to set up a private company limited by shares and are thinking of
calling their company ‘VegRus’. They will be the subscribers and the first directors of
the company. They have already found premises, but the owner is insisting that a

Page 13 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
contract to lease the premises is signed immediately, despite the fact the company
will not be registered for about four weeks.
Advise Shreena and Gita what documents will have to be delivered to the Registrar
of Companies before a certificate of incorporation of the company is issued, any
restrictions on choice of the name of the company, and any liabilities they may
personally incur if the lease is signed before the company is incorporated.
Ans. In this scenario the owner sign lease before forming of company is completely liable.
Which makes Gita and Shreena liable
for holding damages and loss personally
because they signed lease deed before
becoming director and owner in the
organisation. The company
incorporation have many elements to
form company which includes
registration of company have bona fide
and legal identification, in this scenario
the agreement of partnership is to be
signed for stock and shares to have
obligation and right equivalent to form
for the loss and profit. The company’s
title is represented as nature of firm is
involved. Moreover, this makes
constitution of company in which Article
of Association includes legislative
provisions in it(Hardman, And Rowell,
2021). The memorandum of association
includes incorporation and winding up
details, management and administration
regulations and other facets for
company. When the elements
compromise then only this company is
formed
END OF QUESTIONS

Page 14 of 14
Business School
BSc (Hons) Business Management
Semester 2 Examination 2021/2022
Introduction to Business Law
Module No. BAM4011
REFERENCES
Hardman, J. and Rowell, N., 2021. The UK's director daisy chain: Empirical evidence of the
interconnectivity of directors of UK publicly traded companies. European Business Law
Review.
Sivani, K.M.S., 2019. Critical Analysis of the Effects of Regulations under Competition Law
on Mergers and Acquisitions: A Comparison of the India, EU, US and UK Laws. Journal of
Corporate Governance and International Business Law, 2(2).
Allen, D. And Blackham, A., 2018, June. Confidentiality and Settlement: Uncovering the
Hidden Secrets of the Enforcement of Equality Law in Australia and the UK. In Berkeley
Comparative Equality & Anti-Discrimination Law Study Group 2018 Conference at
Melbourne Law School at the University of Melbourne.
Baillie, K., 2019. Regulation of Crowdfunding in the UK: Past, Present and Future. Bus. L.
Int'l, 20, p.147.
Lemassel, M.M., 2020. Regulations of financial institutions in the US/UK.
Moloney, N., 2021. Financial services under the Trade and Cooperation Agreement:
reflections on unfinished business for the EU and UK.
Meggitt, G., 2022. Business not as Usual—The Financial Conduct Authority v Arch
Insurance (UK) Ltd.
Nästega, E., 2022. Equivalence Decisions in the EU and UK Financial Services Sectors Post-
Brexit. European Business Law Review, 33(3).