NM11-Business Law answers to homework questions


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Brief :


LO1. Identify the nature of UK legal system

The legal system:

What contributes in a legal system?

The objective of law, emergence of law and different sources of law such as legislation, directives, case law reports and Convention of relevant country.

Distinction between civil and criminal law.


The Justice system

The role of law making body in legal justice system.

Institution of the Judiciary.


LO2. Example the potential impact of the law on organisation.

The impact of law:

Contract law- its formation. Essential element and terms of contrcar

Competition law, Data protection, Law of negligence in tort, consumer protection and health and safety and product liability.

Duties of the employer and employee like employment contract, employer obligation and employee rights and responsibilities at workplace.

Management of cases , its dismissal, discrimination, health ans safety measures.


LO3.  Explain the formation of different kinds of business organisations.

Nature and formation of Company:

  • Incorporated vs. Unincorporated legal structure
  • Different forms of business organisation
  • Categories of companies e.g. Public and Private companies, limited and unlimited.
  • Registration requirement of business organisation.
  • The management of company, its directors, secretary, auditor and shareholder.

LO4.  Suggest appropriate legal solutions to resolve areas of dispute

Legal solutions for various kinds of dispute resolution:

Different areas of employment

settlement of commercial disputes for instance: Breach of contract, dispute between the directors.

Commercial property e.g., lease transactions, real estate and investment properties.


Alternate Dispute Resolution :

The responsibilities and power of alternate dispute resolution and civil litigation procedures  and funding , tribunals, role of unions and citizens advice.


Learning Outcome 4 Covers:


Gordon was a salesman in the Orange Computers Ltd. Store and in accordance with the contract of employment, he has given for an annual salary of £10,000 along with commission at 9%. From last three years, his commission payments have amounted to average of £11,000 per annum.

Due to excessive downfall in the local market, the business is drastically affected and leads to severe financial loss. Fred, the manager informs Gordon that if he will forgo his salary for 2015, 2016 and 2017 and simply accept payments of commission. Again in 2016, the economy starts to grow and business again growing well. Gordon assumes that he should be able to receive his wages for 2017 and not simply have to rely on commission as agreed in 2015. He also wished to know if he is entitle to claim his wages from 2015 and 2016 as Orange Computer Ltd. has sufficient funds to repay this money.

Advise Gordon whether he is entitled for wages for the year 2017 and also whether he would have any claim for the wages he agreed not to accept in the 2015 and 2016. Discuss in relation to contract law & Employment law. 


Case2 :

Janet decided to call Virgin Media to purchase and install internet package costing £35.00 per month including phone lines. The engineer came at 9 am and installed the internet. He was waited till 5 pm on same day, but engineer never returned back to complete the installation. Again, he called the Virgin Media and complained about the engineer and , after several calls and e-mails they sent another engineer to fix the phone line after 3 weeks.

When the invoice arrived from Virgin Media , they were charged for the whole day  including monthly phone line rental. He was extremely upset with the service they were provided and he believed that his phone line should be charged after 3 weeks only.

Identify the legal position of the service provide by the Virgin Media and the consumer (Janet) on the basis of understanding of contract law and its essential elements.


Case 3:

BlackHorse Limited is a security company that provide security guards to other organisation. The agency have 50 members and have minimal overheads. The company had four main customers and out of them , one of which leave Black Horse Limited into bad debt of £100,000. The bad debt incurred three months ago which has been  recovered through  previous level of turnover, and the customer is extends to 10.

The case flow reductions of £100,000 suffered due to bad debt leads to Blackhorse limited “ stretching the due dates”  of the payments needed to be made to the company’s creditors. On of the creditors file a Petition for winding up tow weeks ago and now it’s court discretion to whether or not to make a winding up order at a hearing set to take place in three weeks time. Identify the different options provided to the client to prevent compulsory winding up.


Pass Merit Distinction
LO1: Identify the nature of UK legal system LO1 and LO2

D1: Provide a coherent and critical evaluation of the legal system and law, with evidence drawn from a range of different relevant examples to support judgements.

P1: Describe different sources of law. M1: Analyse the effectiveness of the legal system in terms of recent reforms and developments.
P2: Evaluate the role of government in lawmaking and how statutory and common law is applied in the justice courts.


LO2:Example the potential impact of the law on organisation.
P3: Apply relevant  examples illustrate how company, employment and contract law has a potential impact upon business. M2: Distinct  between legislation, regulations and standards to analyse potential impacts upon business.
LO3:  Explain the formation of different kinds of business organisations.


D2: Critically review and evaluate types of business organisations.
P4: Identify how different types of business organisations are legally formed.


M3: Develop the advantages and disadvantages of the formation of different types of business organisations.

Describe  how business organisations are managed and funded.


LO4:  Suggest appropriate legal solutions to resolve areas of dispute
P6:  Suggest legal solutions for resolving a range of disputes using examples.


M4: Compare and analyse different sources of legal advice and support for dispute resolution. D3: Critically evaluate the effectiveness of legal solutions, legal advice and support for dispute resolution.