Introduction to Business Law - Desklib

Access exam answers and study material for Introduction to Business Law on Desklib. Learn about common law inheritance, tort of negligence, laws, judicial precedent, and more. Get insights into the three important elements of a negligence claim and the rules of judicial precedent and statutory interpretation. Also, understand the concept of nuisance and enforceable contracts. Additionally, get information on starting a private limited company and the documents required for registration.

BUSINESS SCHOOL
BSc (HONS) BUSINESS MANAGEMENT WITH
FOUNDATION
SEMESTER TWO EXAMINATION 2021/2022
INTRODUCTION TO BUSINESS LAW
MODULE NO: BAM4011

CONTENTS
SECTION – 1.............................................................................................................................1
Answer – 1..............................................................................................................................1
Answer – 2..............................................................................................................................1
Answer – 3..............................................................................................................................1
Answer – 4..............................................................................................................................1
Answer – 5..............................................................................................................................1
SECTION – 2.............................................................................................................................1
Answer – 1..............................................................................................................................1
Answer – 2..............................................................................................................................1
Answer – 3..............................................................................................................................2
Answer – 4..............................................................................................................................2
Answer – 5..............................................................................................................................2
SECTION – 3.............................................................................................................................3
Answer – 1..............................................................................................................................3
Answer – 2..............................................................................................................................4
Answer – 3..............................................................................................................................4
REFERENCES...........................................................................................................................7

SECTION – 1
Answer – 1
b. England and Wales
Answer – 2
d. Orders of the European Commission
Answer – 3
b. Offer, acceptance, and consideration
Answer – 4
b. 18
Answer – 5
a. Two
SECTION – 2
Answer – 1
England and whales operate a common legal system which are being combined by
passing of legislation however also the creation of precedents by the case law. The laws are
being set-up through passing of legislation by parliament. The three most important features
of the legal system of England and Whales are as follows:
 Common law inheritance – One of the most different features of the legal system of
England and Whales is that it has a common law heritage. Most of the characteristics
of this system is being related with the English law and the management of this
system are attributable to the early evolution within the western Europe of the civil as
well as common law traditions (Stewart, 2021).
 European partnership – The sharing of the UK in the EU is the second feature. The
influence of membership has redeployed the legal system, fresh laws, new strategies
to regulation as well as added court system. The consequences of this are very
widespread as well as thoughtful.
 International dependency – Another feature of this legal system is that it has a
particular global resonance.
Answer – 2
Talking in relation with Tort, it is being referred as an act or omission that offers
augmentation to injury or harm to another and amounts to a civil wrong for which the court
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levy obligation. Speaking about Tort of negligence, it is a civial tort that takes place when
there is a breach of duty of care by an individual being owned by him or her and because of
which that individual suffers some hard or legal injury. In simple words, it is being referred
as the failure of discharge of something because of the uncaring conduct. On the other hand,
breach of duty of care takes place when the behaviour of the individual does not pass an
applicable standard of care. Breach of duty of care is one of the most significant components
of negligence (Keers and Van Fenema, 2018).
Answer – 3
Laws are being referred as the set of rules which are being developed and enforceable
by the government or the social institutions for regulating the behaviour of people. laws are
being regarded as an essential element for protecting the general safety and making sure the
right as citizens in contradiction to the abuses through other people, companies and
government itself. Additionally, laws are very much essential so that people understand their
boundaries and must act accordingly. The important theory related to the sources of law is
Jurisprudence, which is the theory as well as philosophy of law. It has focused on the
principles of law of nature, civil law as well the law of nations. It emphasizes on two
important problems that is issues internal to law and legal system and the issues of law as a
specific social institution since it is linked with the greater political along with social situation
wherein, they take place.
Answer – 4
The three important elements that the Claimant must establish in a negligence claim are as
follows:
 Duty – The suspect has a legal duty to the plaintiff under the situation or not
 Breach – The next thing that the court look to see that whether the defendant has
breached the duty through acting or failing to act in a specific manner or not.
 Causation – The other important elements that that the Claimant must establish in a
negligence claim is the actions of the defendant that in reality caused the injury to
plaintiff ().
Answer – 5
Speaking volume in relation with the Judicial precedent, it has a main purpose of
serving the interest of the lawful inevitability for evading uneven as well as contrasting
decisions within the law. On the other hand, statutory interpretation is the procedure through
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which the courts interpret as well as apply legislation. There are different rules which are
being applied to judicial precedent as well as statutory interpretation on the basis of Ratio
Decidendi’ ‘Obiter Dicta’ and these are:
 The court which is lower in hierarchy is total bound by the decisions of courts which
are higher in hierarchy.
 The courts which are higher are bound by their own decision in the aspects of linked
precedence (Doherty, 2016).
 The key purpose of the mischief rule is to solve the issues that the parliament are
making an effort to rectify.
 The purposive or the golden rule states the adaption of the literal rule where an
individual must read the words and apply the same in the given background
 The literal rule states that if the words in the act are clear and correct then it is crucial
to follow the same although they can evident illogicality
SECTION – 3
Answer – 1
Nuisance is being defined as an activity or the physical sututaion that is rude and not
decent to the sanities or interferes with the sensible utilization of another individual as well as
enjoyment of life or property. The nuisance being created by the property owner is very much
relied on the exclusive evidences along with conditions of the situation. In relation with the
current case, the number of homeowners living near the “Bits and Bobs” scrapyard have
complained as well as threatened legal action in regards with different facets of business of
Fred. The three owners of the home that is Mrs. Khan, Dave and Molly and Novel Orchids
Ltd might have possible claims in nuisance against Fred and explanation of these are as
follows:
Complaint – 1
Mrs. Khan has complained that the roots of the tree of scrapyard is affecting her patio
and resulting in the crack of slabs and even the foundation of her house. Since, the bungalow
lies close to the west boundary fence of the scrapyard, the tree roots have damaged the
property of the landowner and thus, she can claim against nuisance as it has been proven that
the damage is being caused by tree and the owner of the tree has breached the duty of care
owned to the neighbouring land owner (Lumona, 2017).
Complaint – 2
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In the second case, Dave and Molly rent a house to the south side of the scrapyard and
they have filled the compelled in regards with the smell and noise of loud music coming out
from the machines. However, no other neighbours have complained about the same. This
case falls against private nuisances and it states that if no other people have compelled for the
smell and then the neighbour cannot the claim against nuisance. Based on that, it can be said
that Dave and Molly can claim in nuisance against Fred for the loud music, however they
cannot be claim in nuisance against Fred for smell.
Complaint – 3
Jenny is having a nursey and the smoke coming from the scrapyard of Fred is
damaging the rarest Peruvian Orchids. Due to toxic fumes from the incinerator, these flowers
have died. Thus, it can be said that on the basis of the private nuisance, Jenny can claim in
nuisance against Fred for this damage as it protects the residential rights and the uses of land.
Answer – 2
As discussed in the case, Magic Mug Ltd designs and manufacture mugs and they
have produced 2000 mugs for 75p each and posted on social media for sale. One of the social
media users, Betty has looked this post on social media and have sent an email requesting to
have 500 mugs at 50 p each. However, no reply to the email was being given from the side of
Magic Mug Ltd. Enforceable contract is being referred as the written or oral agreement that
can be imposed in the court of law. A valid and enforceable contract is required to have
contractual consideration. In addition to this, there are six important elements that needs to be
considered or present for a contract to be enforceable that is offer, acceptance, capacity,
legality, consideration and awareness. Other than this, a contract can be enforceable in the
situation when both the parties have to an agreement are aware that the contract exist and
they are agreeing to be bound by the contract. In the current case, Betty has sent an email to
the company however no written email has been sent to her as a reply of agreements to her
terms of selling 500 mugs at 50 p each (Askey and McLeod, 2018). Thus, based on that it can
be said that no enforceable contract has been made by Magic Mug Ltd. Even though email is
being regarded as an enforceable contract and it is legally binding but only in case when both
the parties have communicated and mutually agreed to enter into an agreement. Since, no
reply was sent by the Magic Mug Limited and thus, no enforceable contract has been made
by Magic Mug Ltd
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Answer – 3
In the current case, Shreena and Gita are making plans to start a new business of
buying and selling of organic vegetables. Both have made a decision to establish a private
limited company by shared and are also planning of calling their firm VegRus’. They are the
promoters, subscribers and the first directors of the firm and thus, they have the general duty
of exercising reasonable amount of care as well as skills and a fiduciary duty in regards with
the firm. Both the partners have already found the area at which the company needs to be set-
up, however the owner is claiming that a contract to lease the premises is to be signed
immediately irrespective of the fact that the firm will not be registered for about coming four
weeks. There are different documents that needs to be given by them with the registrar of
companies and both are also accountable for registering these essential documents. Some of
the important documents to be delivered to the Registrar of Companies before a certificate of
incorporation of the company is issued are as follows:
 Memorandum of association
 An application for registration
 A copy of documents needed in the application
 Suitable fee as per the Companies Act 2006
In addition to this, both shreena and Gita can also do registration of their companies
and file the documents of the firm through the electronic means or via electronically. Talking
in relation with the restrictions on the choice of the name of the company, it can be said that
the firm must have similar name which is already on the register and the name must also end
with limited or Ltd (Askey and McLeod, 2018). As given in the case study, both shreena and
Gita are planning of calling their firm VegRus’ than they have to make use of the work
limited or Ltd. at the end of the name that is VegRus limited or VegRus Ltd. in addition to
this, even there are certain restrictions in relation with some names, for example names which
are offensive, sensitive as well as make a suggested connection or link with the central, local
government or any other bodies.
Moving further, if both the partners of the firms are selected a name which is quite
same to the name of any other established business than in a such a situation, the established
business can file an application to the court for an order preventing the new firm to trade their
registered name on the register. Other than this, the action is being known as the tort of
passing off. Furthermore, in the context of liabilities they may personally incur if the lease is
signed before the company is incorporated, it can be said that in case the contract is being
made by the person claiming to act on behalf of or as agents of a firm not yet established than
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it is not being regarded as a binding on the firm, however those individuals are personally
responsible for the contract (Stone and Richard, 2019). Thus, from the above evaluation, it
can be said that the lease being entered by Shreena and Gita prior the firm is being
established or formed even if allegedly made on behalf of company is not binding on the
firm. Nevertheless, Shreena and Gita who are the promoters of the business are personally
liable.
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REFERENCES
Books and journals
Askey, S. and McLeod, I., 2018. Studying law. 3rded. Basingstoke, Hampshire: Palgrave
Macmillan.
Doherty, M., 2016. Jurisprudence: The Philosophy of the Law. 3rd ed. London: Old Bailey
Press.
Keers, B.B. and Van Fenema, P.C., 2018. Managing risks in public-private partnership
formation projects. International journal of project management. 36(6). pp.861-875.
Lumona, S.C., 2017. Government partnership with traditional agencies in community
development: advantages and disadvantages. A international journal of social &
management sciences, madonna university. 1(1).
Stewart, W., 2021. Collins dictionary, law. 1sted. Glasglow, Great Britain: HarperCollins.
Stone, R. and Richard, S., 2019. The modern law of contract. 7thed. New York, NY:
Routledge-Cavendish.
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