GRAFTON COLLEGE

ASSIGNMENT BRIEF
UNIT NO 7

PEARSON BTEC LEVEL 5

HND IN BUSINESS
Unit 7| Business Law

QUALIFICATION: PEARSON BTEC LEVEL5 HND IN BUSINESS

Unit 7: Business Law
Unit code: H/508/0492 Unit type: Optional
Unit level: 4 Credit value: 15
TQT: 150
Assignment Title: Business Law and its Application
Author: Muhammad Touseef Internal Verifier: Muhammad Ismail
nd
Assignment Approval Date: 2 May 2017 Date Issued to Learners: 15th May 2017
Draft Submission Date: 30th June 2017
Final Submission Date: 17th July 2017

Aims & Objectives of the Assignment

The aim of this unit is to enhance students understanding of how business law is applied to the running of
a company. Students will gain knowledge of business law and examine the impact of the law on business
operations and decision-making. Throughout the unit students will identify legal solutions available to
business owners and assess their suitability. Their experiences in this unit will help them better understand
the areas of law in which they will want to specialise. They will be able to illustrate the impact of the law on
normal business operations and when registering a company and inviting shareholders to invest in it. They
will gain an understanding of the law in relation to market abuse and director responsibilities. Students will
be able to recognise the application of employment law between employers and employees.

Learning Outcomes
By the end of this unit a student will be able to:

1. Explain the basic nature of the legal system.

2. Illustrate the potential impact of the law on a business.
3. Suggest appropriate legal solutions to business problems.
4. Recommend appropriate legal solutions based upon alternative legal advice provided.

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Essential Unit Contents

LO1 Explain the basic nature of the legal system

The legal system:
What constitutes a legal system?
The purpose of law, the evolution of law and different sources of law.
The differences between statutory law, common law and equity.
Company law and contract law.

The justice system:

The role of government in law-making and the justice system.
Organisation of the judiciary.
Jurisdictions and the structures of the court.

LO2 Illustrate the potential impact of the law on a business

Legislation and legal responsibilities:

The relationship between regulations, legislation and standards.
The implications and impacts of various legislation including environmental legislation, health and
safety legislation and consumer legislation.
Legislation on data protection and confidentiality.
Rules and regulations relating to cyberspace security.
Employee legislation, equal opportunities and anti-discrimination.

Employment law and its impacts on business decisions and contracts:

How employment is defined.
Application of law in cases of maladministration.
The responsibilities of directors and delegation of tasks.
How employer and employee relationships interact with employment law.

LO3 Suggest appropriate legal solutions to business problems

Legal solutions for different types of business problems:

Consider the application of company law in forming companies, raising capital and correlation of
pay and performance.
Termination of contracts, including employment.
Rescuing and liquidating companies.

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Essential Unit Contents

LO4 Recommend appropriate legal solutions based upon alternative legal advice provided

Alternative legal advice:

Different legal frameworks and laws of different countries
The role of unions
Citizens advice and the role of Alternative Dispute Resolution (ADR).

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Vocational Scenario-

TASK
1 Task 1 covers Learning Outcome 1 & 2.

You have recently joined a law firm as trainee consultant and you manager asked you to prepare a Law
Handbook which will help the new start-up companies to help on the legal system and about the key
legislations that they are required to know for effectively running their business. This handbook must
contain all salient legislation which a businessman must know and their impact due to non-fulfilment.

Your handbook should have the followings:

A. Starting with an explanation of legal system of UK, include different sources of laws that
organisations specially the start-up organisations must comply with. You also need to discuss each
of them with its scope and impact on the businesses. (P1)
B. Government has a vital role in the legal system of any country, you need to highlight the role of UK
Government in law making and explain in detail with its salient points. Further, elaborate how
statutory and common law is applied in the justice courts. (P2)

(For Merit)
You need to evaluate the effectiveness of the legal system in terms of recent reforms and
developments. Give specific examples. (M1)

C. You need to explain key legislation on employment and contract law with some specific examples
and illustrate how these laws have potential impact upon businesses. Further, discuss their impact
on the businesses with some relevant examples. (P3)

(For Merit)
You need to differentiate and analyse the potential impacts of regulations, legislation and standards.
(M2)

(For Distinction)
You need to 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. (D1)

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Grading Criteria
Pass Merit Distinction
LO 1: Explain the basic nature of the legal system

P1: Explain different sources of law M1: Evaluate the effectiveness of LO1 & 2:
and laws that organisations must the legal system in terms of
comply with. recent reforms and D1: Provide a coherent and
developments. critical evaluation of the legal
P2: Explain the role of government in system and law, with
law making and how statutory and evidence drawn from a range
common law is applied in the justice of different relevant examples
courts. to support judgements.
LO 2: Illustrate the potential impact of the law on a business

P3: Using specific examples illustrate M2: Differentiate and analyse the
how company, employment and potential impacts of regulations,
contract law has a potential impact legislation and standards.
upon business.

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TASK Task 2 covers Learning Outcome 3 & 4

2

You have submitted your task 1 and you manager is very happy with your effort. Now, he assigned you
to advise to your clients who are local running businesses in your area. You have been given three case
studies to review which represent various legal problems affecting local businesses. The areas of law to
be considered contain company Law (including insolvency and liquidation); contract Law (including
termination of contract) and employment Law (including Alternative Dispute Resolution). For each case
presented you need to apply and justify a legal solution to the problem.

Case 1:

Gordon works as a salesman in the Orange Computers Ltd store. His contract of employment provides
for an annual salary of 10,000 and commission payments (at 9%) on any computers and peripherals
he sells. In the last three years the commission payments have amounted to an average of 11,000
per annum.
In 2015, due to cut throat competition in the local market, the business is adversely affected. The
manager, Fred, informs Gordon that the business is in severe financial trouble and that he must
reduce the firms outgoings. In response, Fred asks Gordon if he will forgo his salary for 2015, 2016
and 2017, and simply accept payments of commission. Fred explained to Gordon that this was
required of him (and all other staff) or the business would probably not survive and it would have to
be wound up owing substantial debts to creditors. As such, Gordon accepted the variation of the
contract.
In 2016, the economy began to grow, and in small part due to governmental incentives for investment
in information technology, the store has managed to trade its way through the difficult times and is
making a healthy profit. As such, Gordon feels that he should be able to receive his wages for 2017
and not simply have to rely on his commission as agreed in 2015. He also wishes to know if he can
claim for his wages from 2015 and 2016 as Orange Computers Ltd has sufficient profits to repay this
money.
Advise Gordon whether he can obtain his wages for 2017, and also whether he would have any claim
for the wages he agreed not to accept in the year 2015 and 2016. Discuss in context of employment
Law (including Alternative Dispute Resolution

Case 2:

After doing some research on the internet, Janet decided to call Virgin Media to arrange the purchase
and installation of the internet package costing 35.00 per month, including the phone lines (monthly
line rental of 11.00). The engineer came on the arranged date at 9am and installed the internet.
However, he could not find the telephone point on the switchboard and suggested that he will call his
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supervisor and come back. Janet waited until 5pm that day for the engineer but he never returned
back to complete the task. She called the Virgin Media and complained about the engineer and that
she still hasnt got the phone line yet. Finally, after several calls and e-mails they sent another engineer
to fix the phone line after 3 weeks.
When the invoice from the Virgin Media arrived Janet was charged for the whole package from the
day the internet was installed including the monthly phone line rental. Janet is extremely upset since
she believed that her phone line should be charged after 3 weeks only.
Analyse the legal position of the service provider (Virgin Media) and the consumer (Janet) on the basis
of your understanding on the various elements of contract law.

Case 3:

Blackhorse Limited is a security company providing security guards to other businesses, which is one of
your client. The company has 50 employees. The company has minimal overheads, apart from the
"wage cost" of the employees.

The company had four main customers, the largest of which failed leaving Blackhorse limited with a
bad debt of 100,000. Since that bad debt was incurred three months ago the company has recovered
its previous level of turnover, but that turnover is now spread over ten customers.

The cash flow reduction of 100,000 caused by the bad debt resulted in Blackhorse limited "stretching
the due dates" of the payments needed to be made to the company's creditors. One of those creditors
issued a winding up petition two weeks ago and the court is to consider whether or not to make a
winding up order at a hearing set to take place in three weeks time. Discuss the different options
available to your client to avoid compulsory winding up.

You now need to file a report to your manager outlining the advice and assistance given in relation to
these legal problems. Your report should contain the following:

A. Suggest an appropriate legal solution to each of the problems. (P4)

B. Provide justification for the advice and solution given. (P5)

(For Merit)
Give an assessment of the positive and negative impact of the solution, you are suggesting to the
business. (M3)

C. Recommend legal solutions based on a different countrys legal system and/or an alternative
legal framework. (P6)
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(For Merit)
You then need to compare and contrast the effectiveness of these recommendations. (M4)

(For Distinction)
Finally, you need to critically review and evaluate the use of the appropriate legal solutions
suggested in comparison with alternative legal advice. (D2)

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Grading Criteria
Pass Merit Distinction
LO 3: Suggest appropriate legal solutions to business problems LO3 & 4
D2: Critically review and
P4: Suggest appropriate legal solutions M3: Assess the positive and evaluate the use of
for a range of business problems e.g. negative impacts of legal appropriate legal solutions in
termination of contract, rescue from solutions to business problems. comparison with alternative
insolvency and liquidation. legal advice.
P5: Provide justifications for the use of
appropriate legal solutions.

LO 4: Recommend appropriate legal solutions based upon

alternative legal advice provided

P6: Recommend legal solutions based M4: Compare and contrast the
upon a different countrys legal system effectiveness of these
and/or a different legal framework. recommendations.

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Submission Guideline
Students must observe the following submission guideline:

Hardcopy of the assignment should be submitted at the college reception on or before at 5.00 pm
on the date specified.
There is stipulated length for the work is given in each task. However, there is no penalty for increase
in word limit.
All work must be delivered in both hardcopy and softcopy versions. The softcopy should be uploaded
on to the MOODLE.
For security purposes, learners should keep both copies with them.
Sources should be acknowledged fully by referenced books, journals used and URL visited using
Harvard reference style. A good guidance is available on college MOODLE. You can also learn it in
your study skill sessions.

Assignment Notes

Learners are requested to comply with the following instructions on handing in their assignment work:
Work should be comprehensively referenced using Harvard style.
Sources must be acknowledged fully by reference books, journals used and URL visited along with
dates of visitation.
Use the Harvard Referencing System (see attached details).
All work should be word processed, font size of 12 and font style of Times New Roman/Arial. Subtitles
of the assignment should be in the font size of 14 and main title in font size 16.
Pages should be numbered in footer.
Spell check the document and read thoroughly for grammatical errors.
1.5-line spacing is preferable.
Reference at the end of the assignment.
All paragraphs containing text should be aligned in justified mode.

Plagiarism and collusion

Any act of plagiarism and collusion will be seriously dealt with according to the GCMS regulations.

In this context the definition and scope of plagiarism are presented below:

Using the work of others without acknowledging the source of information or inspiration. Even if
the words are changed or sentences are put in a different order, the result is still plagiarism (Cortell
2003).

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Collusion is described as the submission of work produced as a result of the collaboration between
two or more parties. Additionally, collaboration entails the sharing of one persons work with others
who submit either all or part of their coursework as their own.

Recommended Resources

Adams, A. (2016) Business Law for Students. 9th ed. London: Pearson
Andrews, N. (2011) Contract Law. Cambridge: Cambridge University Press.
Elliott, C and Quinn, F. (2015). The English Legal System. 16th Ed. London: Pearson
Honeyball, S. (2016) Honeyball and Bowers Text to Employment Law. 14th ed Oxford: Oxford
University Press.
Marson, J and Ferris, M. (2015) Business Law. 4th Ed. Oxford. Oxford University Press.
Slapper, G. and Kelly, D., The English Legal System (London: Cavendish Press, 2004, 7th edition)
Smith, A.T.H, Glanville Williams Learning the Law (London: Sweet and Maxwell, 2002), pp.4-18
Partington, M., Introduction to the English Legal System (Oxford: Oxford University Press, 2003, 2nd
edition), read in particular chapters 6 and 7 for an overview of the role played by tribunals and courts
in providing administrative and family justice

Journals
New Law Journal
International Journal of Law in Context

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Harvard Referencing System

We expect students to use the alphabetical or name-date method known as the HARVARD system. There
are two parts in this system:

Citation within text or body of the report:

In this the author's surname and year of publication are cited in the text, e.g. (Bond, 2004).

Reference List:

A reference list (of these citations) is included at the end of the assignment, in alphabetical order by author.
The reference list also includes additional details such as the title and publisher. A bibliography lists relevant
items that you have used in the preparation of the assignment but not cited in your text. A bibliography
should also be in the Harvard style and the inclusion of such a list shows that you have read widely beyond
the items you have cited.

Examples of citation within text or body of the report:

Cormack (1994, p.32-33) states that................

............ This view has been supported in the work of Cormack (1994, p.32-33).
Jones (1946) and Smith (1948) have both shown
Corporate Author: 1st citation: Royal College of Nursing (RCN), 2007
2nd citation: RCN, 2007

Examples of listings in reference list:

1. Books with one author: Redman, P., 2006. Good essay writing: a social sciences guide. 3rd ed.
London: Open University in assoc. with Sage.

2. Books with two, three or four authors

The required elements for a reference are: Authors, Initials., Year. Title of book. Edition. Place: Publisher

Kirk, J. & Munday, R.J., 1988. Narrative analysis. 3rd ed. Bloomington: Indiana University Press.

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3. Books with more than four authors

For books where there are more than four authors, use the first author only with surname and initials
followed by et al.

The required elements for a reference are: Author, Initials., Year. Title of book. Edition. (only include this if
not the first edition) Place: Publisher
Grace, B. et al., 1988. A history of the world. Princeton, NJ: Princeton University Press.
4. E-books

For e-books the required elements for a reference are: Author, Year, title of book. [type of medium] Place of
publication: Publisher

Fishman, R., 2005. The rise and fall of suburbia. [e-book]. Chester: Castle Press.

If available at website:

Fishman, R., 2005. The rise and fall of suburbia. [e-book]. Chester: Castle Press.

Available at: libweb.anglia.ac.uk / E-books [accessed 5 June 2016].

5. Journal articles

Author, Initials., Year. Title of article. Full Title of Journal, Volume number (Issue/Part number), Page
numbers.

Perry, C., 2001. What health care assistants know about clean hands. Nursing Times, 97(22), p.63-64.

6. Newspaper articles

Author, Initials., Year. Title of article. Full Title of Newspaper Day and month before page numbers of article.

Slapper, G., 2005. Corporate manslaughter: new issues for lawyers. The Times, 3 Sep. p.4-5.

7. Journal articles from an electronic source

Boughton, J.M., 2002. The Bretton Woods proposal: an in depth look. Political Science Quarterly,
[online]. 42 (6), Available at: http://www.pol.upenn/articles (Blackwell Science Synergy) [accessed 12
June 2016].

8. Internet

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National electronic Library for Health. 2003. Can walking make you slimmer and healthier? (Hitting
the headlines article) [Online]. (Updated 16 Jan 2016) Available at: http://www.nhs.uk.hth.walking
[accessed 10 April 2016]. The title of a web page is normally the main heading on the page.

9. E-version of annual reports

Marks & Spencer, 2014. Annual report 2013-2014. [Online]. Available at: http://www-marks-and-
spencer.co.uk/corporate/annual2013/ [accessed 4 June 2016].

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