BL Final
BL Final
BL Final
I. Intro.....................................................................................................................................................3
II. Body....................................................................................................................................................3
1. The impact of Brexit........................................................................................................................3
2. Law making process and the role of three Government Departments..............................................3
2.1. Law making process................................................................................................................3
2.2. The role....................................................................................................................................4
3. Selena Case......................................................................................................................................7
a. Allow the repeat performance?....................................................................................................7
b. Repudiate contract and claim damages?......................................................................................7
4. Transtars v Grand Cars....................................................................................................................8
a. Grand cars statement:..................................................................................................................8
b. Consequences..............................................................................................................................9
5. Tort of negligence and nervous shock.............................................................................................9
6. Business organization....................................................................................................................11
a. Sole Trader................................................................................................................................11
b. Partnership.................................................................................................................................12
c. Company...................................................................................................................................16
d. MOA..........................................................................................................................................16
7. Bill, Donald and George................................................................................................................17
a. The firm is an unlimited partnership..........................................................................................17
b. The firm is an LLP.....................................................................................................................17
8. Shareholders power.......................................................................................................................18
9. For £28,000, Company A sold 5 tons of tea to Company B. When a contract issue arose, Company
A decided to take Company B to court in the United Kingdom.............................................................19
a. Type of court Company A should bring its case to....................................................................19
b. Steps of procedure.....................................................................................................................20
10. Online dispute resolution...........................................................................................................21
a. Definition...................................................................................................................................21
b. Strengths and Weakness............................................................................................................22
III. Conclusion.....................................................................................................................................22
Reference list.............................................................................................................................................23
I. Intro
The following exam belongs to Business Law course. In this assignment, many theories
of law as well as diverse case law will be applied to consolidate knowledge and give the
best test results.
II. Body
1. The impact of Brexit
According to Adams, Caplan and Lockwood (2020), English law: “may be defined as a
body of rules, created by the state, binding within its jurisdiction and enforced with the
authority of the state through the use of sanctions.” Another definition by Riches and
Allen in Keenan and Riches’ BUSINESS LAW (2009), “The law is a set of rules,
enforceable by the courts, which regulate the government of the state and governs the
relationship between the state and its citizens and between one citizen and another.” In
brief, the law can be defined as a system of general mandatory code of conduct
promulgated or recognized by the State, ensuring the implementation and adjustment of
social relations, applicable nationwide to all subjects. The law includes legal and moral
norms that are of general compulsion. In the past, there were three sources of Law,
contain Legislation Statues, which made by Parliament; Case Law (also called
Precedents) made by courts; and European Law, which is a set of rules operating the EU
Union (This Law is overrule the national law in case if there is any conflict between
European Law and national Law). But since Brexit, England is no longer in EU Union
and European law has validity with England. However, some laws such as human
rights can be considered due to their rationality.
As it was mentioned in question 1, there are two sources of Law which are Parliament
and The Court. To be more specific, “most English law is currently made by, or with the
authority of, Parliament. Direct (parliamentary/primary) legislation comprises Acts of
Parliament, created by the passage of a Bill through certain prescribed processes in the
House of Commons and the House of Lords. Indirect (delegated) legislation is created by
a body (usually a government department or local authority) which has been given the
power to legislate by Parliament under an enabling Act.” (Adams, Caplan and Lockwood,
2020). The Parliament acts like a laboratory that makes law. The Parliament split into
three departments which can be named as The House of Commons, The House of Lords,
and The Queen (Royal Assent). For a law to be made; firstly, law making process started
when someone come up with an idea of good law which can be referred as a Bill, this
someone could be the Government or member of the Parliament. This was then
considered by both The House of Commons and The House of Lords until they both
agree with the bill. Followed by that, the new law is sent to The Queen for her agreement
to happens, this is stage is called The Royal Assent. After the final stage of approval by
the Queen, the bill will then become an Act of Parliament.
The second source of Law which made by The Court is Case Law, also can be called as
common law, according to Adams, Caplan and Lockwood (2020), “Case law evolves
slowly and haphazardly, when relevant cases come before the courts with facts which
justify further legal development”. In other words, case law made by courts in the
process of solving cases, in each case there are also legal rules, coming from the court
body (judicial body) not the legislature, this is an additional. According to common law
tradition, they can use more case law, while civil law tradition does not apply case law,
but only the main source of legislation.
The parliament plays a major role in promulgating legal documents. In term of the
structure of the Parliament, the Parliament contains two House. The first one is the House
of Lords. There are 26 Lords Spiritual (archbishops and bishops); and 765 Lords
Temporal, selected by PM and appointed by Country Head. The second one is the House
of Commons, which has 650 representatives elected by the people on 5 years term. The
English Parliament has all the power to make law. About the authority to make laws
of parliament, there are two types which is direct legislation and indirect/delegated
legislation, one is the authority that directly allows him to enact laws but on the other
hand has the other power to delegate authority to other agencies, to the government, or to
local authorities (local authority) to issue a document guiding its statutes. In law making
process, Parliament participates by amending draft laws. All statues started as a Bill,
when a Bill, which can be Public Bills, Private Bills and Private Members Bill, is
proposed, the parliament will review, edit and consider these draft laws. This process
contains:
- First Reading: In this reading, only the publication of the title and what the bill
includes to the House of Commons, no debate or else.
- Second Reading: In this stage, the detailed in the Bill is debated on general merit
but no amendment to the bill.
- Committee stage: Bill is examined by standing committee section by section and
could be amended. House may act as committee.
- Report Stage: The committee reports the debates and amendments made back to
the House for further discussion, amendments and approval.
- Third Reading: Final approval at the House of Commons is in this step, only
superficial changes may be made.
- Consideration stage: Each house considers and agrees amendments of other House
- Royal Assent: A formal step which is approval of the Queen for the bill to become
an Act of Parliament.
In brief, the main functions of the Parliament are: make and change laws, which is called
legislation; and delegate power, which is called delegated legislation.
b. Cabinet
The government is not an agency with legislative responsibility like the parliament, the
government is at the head of the executive branch - law enforcement, but has significant
contributions in different aspects. There are three roles of the Cabinet. The first one is
the propose the bill. The bill can be made by the, in addition to the government, draft
legislation that may come from other agencies. To bring a Bill to Parliament, the
Government issues Green Paper which sets out legislative discussion withal for
discussion. After consultation with interest groups, White Paper issued, adding the
intention to the Bill. Then Government minister or private Parliament member propose
the Bill to Parliament. The second role is implementation legislation, since this is the
executive body, the Government has executive power i.e. to enforce the rules of the law.
In the process of implementing these legal rules, Government may realize some
unreasonable points, the law, when put into practice, has a number of inadequacies that
cannot be implemented. The Government then proposes change the rule. The third role is:
make statutory instruments or by-laws as delegated. As one of the bodies authorized
by the Parliament to issue documents (delegated legislation) with instructions for the laws
of the parliament, the Government has the power to make some legal documents.
However, the value is lower than that of parliament. Therefore, the Government has
authorized authority. Government documents are statutory instruments as delegated.
c. Case law/Precedent
The principle of Binding precedents is that decisions of higher courts bind should be
followed by the lower courts within the same system in of civil law or criminal law. In
the key parts of a Court Decision has a part called Ratio Decidendi, which is the
argument of the court in settling the case, it is the part that the court sets out the rule of
law. This rule itself is law and has binding on all lower courts. In the process of resolving
the case, when the court makes a decision, the court also creates the law and sets new
rules for it. Not all court judgments are considered case law. In a case where the court
sets new rules, then it is called case law. Lower courts cannot create binding precedents,
only binding precedents by higher court decisions are law and are called case law. In
persuasive decisions, the decisions of courts do not bind but can be followed by the
courts of other system. So when it comes to the role of the court in legislation, it must
refer to the binding precedent principle, the second must be mentioned is that the
authority to create the BP. The trial court does not have the authority to create laws, the
higher courts create through decisions and case law.
3. Selena Case
a. Allow the repeat performance?
In Selena's case, repeating the performance is not possible because according to article
55, “The consumer cannot require repeat performance if completing performance of the
service in conformity with the contract is impossible”. Applied to the situation, the time
the buffet arrives is 10 pm, so the party cannot be held anymore. Moreover, Selena has to
move to another city after the party is over. So to answer the question reorganizing the
party is impossible.
Selena hired a catering firm to prepare a buffet for her birthday celebration, which was
scheduled for 6 p.m. on a specific Saturday. The morning following the party, she
planned to relocate to another city for a new job. The buffet, on the other hand, arrived
late, at 10 p.m., after the party had already ended.
The two parties have a contract that mentions the time of 6pm. In fact, the buffet arrived
at 10pm. This can be referred as a breach of contract. To be more specific, it is a breach
of service time, instead of 6, it was done at 10pm. So, the catering service has to face
legal consequences of a breach of contract. In the express terms of contract, there are two
types which are conditions and warranties. The Conditions are terms that are crucial to
the contract. Breach of conditions cause the injured party not reach objective of the
contract. Injured party has two choices: to repudiate contract and claim damage; or to go
on with contract and have damage recovered. Meanwhile, warranties are term that are not
at the root of contract. Therefore, it does not cause so much harm and the injured party
could go on with the contract but may claim damages.
In the case law of Poussard v Spiers, Poussard, the Claimant, was an opera singer. The
defendant hired her for three months to perform in that capacity. She became unwell right
before the opera began and was unable to sing for the first three days. When the claimant
was unable to sing for the first three days of performances, the defendant recruited a
backup vocalist. The Claimant wished to resume her role in the show once she was well
again, but the Defendant refused. Following that, a case for wrongful dismissal was filed
against the defendant. The jury concluded in favor of the defendant and granted them the
right to claim £83 from the Claimant since hiring her substitute was fair. Failure to show
up amounted to a breach of a contract term because it went to the heart of the matter, and
Spiers were thus free to withdraw the contract.
Applying in the case of Selena, it was obvious that the time set in the contract (which is
6p.m) is the conditions, which is the root of the contract. As it also a breach of condition
like the case law of Poussard v Spiers, Selena is free to withdraw the contract and claim
damages. In conclude, the catering agency breach the conditions of the contract,
therefore, Selena has the right to repudiate contract and claim damages.
b. Consequences
Base on the Misrepresentation Act 1967, section 2 and the case law of Howard v
Ogden, Grand Cas is liable for breach of duty. Therefore, the contract is voidable and the
claimant coulf claim damages or rescission as a remedy
Belinda: Belinda chose to ride the big wheel and her cabin was disconnected and
felt on the ground which caused her serious physical injured. In case law of Page v
Smith [1996] AC 155 (Lawteacher, 2013), while both parties were driving, the
claimant (C) collided with the defendant (D). C had no physical injuries as a result
of the accident, but he was fatigued for some hours afterward, and the exhaustion
had not subsided. Cc had been suffering from chronic fatigue syndrome for a
number of years before to the accident, with sporadic symptoms. The House of
Lords found in favor of C as the accident caused by Ds’ negligence has a
foreseeable harm. Applying in Belinda’s case, she is the primary victim of High
Heaven negligence. She actually got physical injured and it is foreseeable that she
may have psychological injuries as well. Therefore, she will be compensated for
the damages.
Matthew: Matthew was the one who operated the big wheel, he was not the
primary victim of the accident. However, he witnessed it and claim to have
nervous shock. Cite to the case law of Dooley v Cammell Laird – 1971
(Lawteacher, 2013), The claimant (C) worked for the defendant as a crane
operator (D). C was loading cargo aboard a ship from a pier when the rope holding
the cargo snapped. The cargo landed in the ship's hold, where C knew additional
workers were waiting. Nobody was hurt, but C suffered from nervous shock after
witnessing what he thought was the death or major injury of some of his
coworkers. The court emphasized that the defendant had provided too weak a
rope for the task and the claimant’s psychiatric injury was a foreseeable
consequence of their failure. In the case of Matthew, his psychiatric injury was
also reasonably possible and he suffered from nervous shock. Therefore, he also
will be compensated for the damage.
Tom: Tom was sitting in one of the cabins but did not injured. He helped the
victims. After that he also sued High Heaven for tort of negligence. Cite to the
case of Chadwick v British Railways Board – 1967 (Lawteacher, 2013), the
claimant, Henry Chadwick (C) lived 200 yards from the scene of the Lewisham
rail crash, a serious train collision that left 90 people dead and others with severe
injuries. Having been informed of the crash C immediately made his way to the
scene to provide assistance. C remained at the scene throughout the night. C
suffered serious psychiatric damage as a result of his experiences and was no
longer able to work. C later died of an unrelated condition and his personal
representatives brought an action against British Railways Board (D), whose
negligence in relation to the crash was not in dispute. Finding for C, the Court held
that it was reasonably foreseeable that people, other than D’s employees, might try
to render assistance and might suffer personal injury, physical or psychiatric, as a
result. A duty of care was therefore owed to D. Applying in the case of Tom, Tom
is not the primary victim, but just the person who runs to help the victim when the
accident happens. But his injuries were visible so he was compensated for the
damage. Moreover, this compensation also sets the common spirit for rescuers, so
that when put in a similar situation, someone runs to support the accident.
Jessica: Belinda is Jessica’s daughter, although Jessica was away from the site
when the accident happened, she suffered nervous shock when she witnessed her
daughter serious injuries. In the case law of McLoughlin v O’Brian [1983] 1 AC
410 (Lawteacher, 2013), the claimant was also suffered from nervous shock
resulting in psychiatric illness. Even though she was not the primary victim and
she was at home when the accident happened, the House of Lords emphasised that
recovery in such cases was not limited to those who were participants in the event,
and who feared that they or a close relative would suffer some sort of personal
injuries. Citing Chadwick v British Railways Board ([1967] 1 WLR 912) the duty
of D was confirmed to extend to those who came upon the ‘immediate aftermath’
of an incident, even if they do not see or hear the incident with their unaided
senses. Applying in the case of Jessica, although she was not the primary victim
and she did not directly witness the accident but witnessed the serious injuries of
her loved ones after the accident. Therefore, her mental trauma is foreseeable and
she will be compensated as High Heaven committed the tort of negligence.
6. Business organization
a. Sole Trader
Sole trader is a self-employed individual who owns and operates their own firm. Any one
may form their own business under his or her name. They must mention their name
and business name (in case they have one) on official papers, such as invoices and letters,
as sole trader. In term of management, a sole trader has complete control over the
business and owns all of the earnings. He or she is also solely responsible for the
company's legal duties and financial hazards. Regarding to funding, the solo trader
supplies all of the startup cash, which is frequently secured by a bank loan secured by
the sole trader's home mortgage. The solo trader may be declared bankrupt by the
business's creditors because he or she is individually liable for all business debts. Due to
its nature, sole trader has complete control over their business, its assets, and income after
taxes. This business model also offers simplicity and versatility in addition to control.
A sole trader, unlike the owners of a limited company, is personally accountable for the
debts of their firm, and their personal assets may be at risk if creditors are not paid.
The burden of having to shoulder all of the responsibility, as well as the unlimited
liability, can be substantial obstacles.
b. Partnership
Management Partners have the same A limited partnership, in An LLP does not need
rights and addition to having a articles of association,
responsibilities. limited partner, must also board meetings, general
Regardless of the have a general partner. meetings, or resolutions
amount of capital They are, however, to make decisions. A
invested, each partner is entirely liable to creditors, member of limited
entitled to an equal which means they are liability partnership can
share of the responsible for the entire decide on their own
partnership's earnings company's assets as well preferred decision-
(and losses). The as, in an emergency, their making procedures and
majority of decisions personal assets. A limited other internal rules,
will be taken by a partnership can have both which can also be kept
simple majority of the a natural person and a private. These
partners; however, legal entity as a general arrangements are
choices that impact the partner – for example, a frequently enshrined in
nature of the firm, such limited liability a limited liability
as agreeing on the corporation (LLC) to partnership agreement,
introduction of a new transform the original though the members
partner or other limited partnership into an will almost always
essential topics, will LLC & Co. include a clause that
require unanimous allows them to amend
assent among the the terms if they so
partners. desire.
Funding In forms where many
people join to operate
the business together, it
will be easier to raise
capital.
Strengths - Does not have an - Limited partners - Limited liability:
independent only accountable to personal wealth
legal existence the extent of their is less at risk
from the partners contribution as a from creditors'
- Does not need limited partner. claims.
Company House - There are no legal - Internal
register requirements for flexibility:
minimum capital allows for more
contributions or engagement in
fixed capital. management and
the upkeep of the
partnership's
culture.
Weakness - Has limited asset - General partners - Financial
way of funding. are likewise liable information is
for their personal typically
assets. required to be
- Limited partners revealed, hence
do not have the there is a lack of
ability to make privacy.
decisions. - An LLP
- Limited partners agreement is
are unable to make required to avoid
decisions on their default
own. provisions from
applying and to
handle scenarios
that are not
covered by
default
provisions.
c. Company
A company is the most popular form of business association and it is more formal than a
sole trader or a partnership base on its nature. There is often substantially more
legislation on the formation and procedures of a companies than the other types of
business. The key feature of a company is that it has a separate legal entity that distinct
from its members and directors. In term of naming, the word ‘limited’ or ‘Ltd’ in the
name donates a private company, ‘public limited company’ or ‘plc’ must be written
at the end of name of a public company. Regarding to formation, A company is
founded under the Company Act of 2006 when one or more people sign a
memorandum of association and meet the registration requirements. A company cannot
be founded for the purpose of illegal action. An application for registration, along with
other documents and a fee, must be delivered to the Registrar in order to register a
company limited by shares. (further details would be given in part d). The company has
an ownership of the Shareholders, who have the highest power. And it is managed by
a Board of Directors and officers. In private company, the
shareholders/Directors/Officers may be the same person. In contract, they are usually
different in a public company. As regard of funding, it could be assets by the owner, or in
the case of public company, it could raise capital by issue shares.
d. MOA
Bill, Donald, and George are partners in the KwicPic unlimited partnership. George
agreed to restore a priceless painting for a customer as part of the partnership's business.
The picture is severely destroyed as a result of George's carelessness. The consumer
suggested to sue for both tort of negligence and breach of contract.
An LLP, like a corporation, is a separate legal entity with a body operates, and its
members' liability is limited. LLP has the nature of legal person, which is to have their
own assets. Partners transfer their assets to contribute capital in the company, the
remaining assets if they have to be contributed, will be personal liability. The LLP itself
will be responsible if there is any failure event. However, in Article 64, those who
perform careless acts will have to bear certain responsibilities. Therefore, George’s
personal property may be at risk if the company’s capital is not enough to bear the
damage.
8. Shareholders power
Shareholders can appoint directors to the board by way of an ordinary resolution (that is,
a resolution that requires a simple majority of shareholders to vote in favour of it) passed
at a general meeting (the Companies Act 2006 (CA 2006), section 160(1)). All directors
are expected to be put up for annual re-election by shareholders (the UK Corporate
Governance Code (the Code), provision 18). Regardless of any stipulation to the contrary
in any agreement between the company and the director, shareholders can remove
directors through an ordinary resolution under CA 2006, section 168(1). Shareholders
have the right to convene company meetings to discuss issues they want addressed, and
they have traditionally used this power to force resolutions to be passed for the purpose
of dismissing or appointing directors. Shareholders can also compel the board to take a
specific course of action by enacting a special resolution (a resolution that requires at
least three-quarters of shareholders to vote in favor of it) that modifies or overrides the
company's articles of organization (CA 2006, section 21(1)) (Slaughter and May -
Victoria MacDuff, 2020). In conclude, the people who has the highest power and make
the important decisions of the company are the shareholders, as they are the people who
contribute capital to the company, which. During the annual meetings, shareholders set
the resolution. They even elect or fire them directors.
9. For £28,000, Company A sold 5 tons of tea to Company B. When a contract issue
arose, Company A decided to take Company B to court in the United Kingdom.
a. Type of court Company A should bring its case to
The diagram below describes the structure of courts in England and Wales
As it can be seen, there are two divisions which are civil and criminal, company A will
sue in civil division. When disputing settlement in court, company A will bring to the
Court of First Instance, which is the County Court. Civil (non-criminal) cases are heard in
the County Court. Contract and tort (civil wrong) lawsuits, as well as land recovery
actions, are handled by all County Court centers. Some hearing centers can also handle
bankruptcy and insolvency cases, as well as cases involving wills and trusts (equity and
contested probate actions) where the trust, fund, or estate's value does not exceed
£30,000, Equality Act 2010 cases, and actions that all parties agree to have heard in a
county court (Courts and Tribunals Judiciary, 2010). In conclusion, company A could sue
Company B in the County Court in term of contract problems and the value of estate is
£28,000 (does not exceed £30,000).
b. Steps of procedure
First of all, the one who bring the case to the court is Claimant, while Defendant is
referred to the one that receives the claim. Basically, the litigation process takes place in
the following 6 steps:
Online Dispute Resolution (ODR) can be defined as a type of ADR (alternative dispute
resolution) that takes advantage of the Internet and ICT's speed and convenience.
Strengths Weakness
- Cost saving - Requires technological literacy
- Time saving and convenience - Privacy and confidentiality
- Increased access to justice concerns
- Environmentally friendly - The inconvenience of cyber space
- Knowledge development and - Lack of governance
mediator training - Lack of quality data
- Reduces the influence of - Ethical concerns
unconscious bias
III. Conclusion
The assignment above uses online resources and through the information which was
transferred by lecturer and tutor.
Reference list
Adams, A., Caplan, S. and Lockwood, G. (2020). Law For Business Students. 11th ed.
S.L.: Pearson Education Limited.
Courts and Tribunals Judiciary (2010). County Court. [online] Judiciary.uk. Available at:
https://www.judiciary.uk/you-and-the-judiciary/going-to-court/county-court/.
Kerseys Solicitors. (2019). Seven Stages of the Civil Court Process. [online] Available at:
https://www.kerseys.co.uk/seven-stages-civil-court-process/.
Riches, S. and Allen, V. (2009). Keenan and Riches’ BUSINESS LAW. 9th ed. Pearson
Education Limited.
Slaughter and May - Victoria MacDuff (2020). In brief: shareholder rights and powers
in United Kingdom | Lexology. [online] www.lexology.com. Available at:
https://www.lexology.com/library/detail.aspx?g=999e7732-e1b2-454e-a287-
3f0b3974e4b2.
LawTeacher. November 2013. Stages of Law Making in the UK. [online]. Available
from: https://www.lawteacher.net/free-law-essays/constitutional-law/stages-of-law-
making-in-the-uk-constitutional-law-essay.php?vref=1 [Accessed 10 December 2021].
S. 55 in force at 1.10.2016 in so far as not already in force by S.I. 2015/1630, art.
4(b) (with art. 6(2)) (as amended by S.I. 2016/484, art. 2)
LawTeacher. November 2013. Dooley v Cammell Laird - 1971. [online]. Available from:
https://www.lawteacher.net/cases/dooley-v-cammell-laird.php?vref=1 [Accessed 11
December 2021].
Article 55 of Consumer Rights Act 2015, Right to repeat performance stated that the
right to require repeat performance is a right to require the trader to perform the service
again, to the extent necessary to complete its performance in conformity with the
contract. If the consumer requires such repeat performance, the trader must provide it
within a reasonable time and without significant inconvenience to the consumer; and
must bear any necessary costs incurred in doing so (including in particular the cost of any
labour or materials).