Business Law

by Rush, John

• ISBN13: 9781844801732
• ISBN10: 184480173X
• Edition: 1st
• Format: Paperback
• Copyright: 2006-05-13
• Publisher: CENGAGE Lrng Business Press

Summary

This new textbook on business law is aimed primarily at non-law students doing the law element of a business studies course. It is written in everyday language that minimizes legal jargon, and links in to contemporary issues in business and the law using modern cases as well as time-honoured precedent. The book focuses on a core range of key topics, the depth of coverage of which has been determined by extensive research. In this way the book is of a manageable length and devotes more than usual space to examples and clear explanations of the law. Business Law is divided into seven main sections covering: the English legal system; contract law; tort; company law; consumer, employment and agency law; and a final revision section. There is a linking website which provides additional learning support for students and lecturers.

Table of Contents

How to use the tables of cases and legislation	xxi
Table of cases	xxii
Table of legislation	xxviii
Preface	xxix
Acknowledgements	xxx
Walk-through tour	xxxi
Part 1 English legal system
What is law?
Learning objectives	2	(1)
Introduction	3	(1)
What is law?	3	(1)
Where does English law come from?	3	(1)
Legislation	3	(1)
Judge-made rules or case law	4	(1)
Key concepts of English law	4	(4)
Natural and legal persons	4	(1)
Jurisdiction	4	(1)
Common law and civil law jurisdictions	5	(1)
Civil and criminal law	5	(1)
Standard of proof in civil and criminal cases	6	(1)
Common law and equity	7	(1)
A brief history of equitable rules	7	(1)
Equity: the current position	7	(1)
Case law	8	(3)
The doctrine of binding precedents	8	(1)
The House of Lords	9	(1)
The proposed Supreme Court	9	(1)
The Court of Appeal	9	(1)
The lower courts	9	(1)
Precedents and judicial creativity	10	(1)
UK legislation	11	(1)
Types of UK legislation	11	(1)
EU legislation	12	(3)
What is the EU?	12	(1)
Treaty provisions	12	(2)
EU legislation	14	(1)
International treaties	15	(1)
The European Convention on Human Rights	15	(1)
Human rights and businesses	15	(1)
Other international treaties	16	(1)
Answers to in-text questions	16	(2)
How the law is enforced
Learning objectives	18	(1)
Introduction	18	(1)
Types of court	19	(4)
Civil law cases: the County Court and the High Court	19	(1)
Tribunals	20	(1)
The criminal court system	20	(1)
European courts: the ECJ and the ECtHR	21	(1)
Referrals to the ECJ and ECtHR	21	(1)
The dual role of the ECJ	22	(1)
Bringing a claim in the civil courts	23	(4)
Claimants and defendants	23	(1)
Getting legal assistance	23	(1)
Solicitors	23	(1)
Barristers	24	(1)
Starting the claim	24	(1)
Case allocation	25	(1)
Case management and disclosure	25	(1)
Settlement	26	(1)
The trial	26	(1)
The judgment	26	(1)
Executing judgment	26	(1)
Resolving disputes outside court	27
Arbitration	27	(1)
Alternative dispute resolution	28
The role of regulators	000	(29)
Enforcing the law against the state	29	(1)
Judicial review	29	(1)
Breaches of EU law	29	(1)
Breaches of human rights	30	(1)
Answers to in-text questions	30	(1)
Website summary	31	(3)
Part 2 Contract
Contract law: an introduction
Learning objectives	34	(1)
Introduction	34	(1)
What is a contract?	34	(1)
Why are contracts important?	35	(2)
Trust is not enough	35	(1)
The dangers of promising too much	36	(1)
Common misconceptions about contract law	37	(1)
Not about fairness	37	(1)
Not entirely logical	37	(1)
Key ingredients of a contract	37	(3)
Intention	37	(1)
Agreement (offer and acceptance)	38	(1)
Certainty of terms	38	(1)
Consideration	38	(1)
Formalities	38	(2)
Making contracts by electronic means	40	(1)
Capacity	40	(1)
The contents of the contract	40	(1)
Terms	40	(1)
Freedom of contract -- and its limits	41	(1)
How contracts are enforced	41	(1)
Answers to in-text questions	42	(2)
Contract formation: getting agreement
Learning objectives	44	(1)
Introduction	44	(1)
Intention to create legal relations	44	(3)
How the courts approach intention	45	(1)
The importance of context	45	(1)
Business agreements	46	(1)
Social and domestic agreements	46	(1)
Offer and acceptance	47	(8)
Offers and invitations to treat	47	(1)
When an advertisement may be an offer	48	(1)
Communication of offers	49	(1)
Withdrawal of offers	49	(1)
Expiry of offers	50	(1)
Acceptance and counteroffers	51	(1)
The battle of the forms	51	(1)
Communication of acceptance	52	(1)
Acceptance by conduct	53	(1)
Offeror may dispense with communication	53	(1)
The postal rule	54	(1)
Answers to in-text questions	55	(3)
Contract formation: certainty of terms and consideration
Learning objectives	58	(1)
Introduction	58	(1)
Certainty of terms	58	(3)
Terms implied by performance	59	(1)
Previous courses of dealing and custom and practice	60	(1)
Agreements to agree and dispute resolution clauses	60	(1)
Consideration	61	(7)
Basic principles governing consideration	61	(1)
Consideration must move from the promisee	62	(1)
Consideration must not be in the past	63	(1)
Consideration must be sufficient	64	(1)
Performance of an existing obligation	65	(1)
Part-payment of debts	66	(1)
Promissory estoppel	66	(2)
Answers to in-text questions	68	(2)
Terms of the contract
Learning objectives	70	(1)
Introduction	70	(1)
Conditions and warranties	71	(1)
Innominate terms	71	(1)
Implied terms	72	(6)
Terms implied for business efficacy	72	(1)
Terms implied by legislation	73	(1)
Sale of Goods Act 1979	73	(1)
Dealing as a business	74	(1)
Satisfactory quality	74	(1)
Fitness for purpose	75	(1)
Supply of Goods and Services Act 1982	75	(2)
Effect of breaching SGA and SOGASA implied terms	77	(1)
Additional rights for consumers	78	(1)
Incorporation of terms	78	(4)
The general rule	79	(1)
Signed documents	79	(1)
Unsigned documents or notices	80	(1)
Terms and pre-contractual representations	81	(1)
Answers to in-text questions	82	(2)
Exemption clauses
Learning objectives	84	(1)
Introduction	84	(1)
Incorporation	85	(1)
Construction	85	(1)
Legislation	86	(8)
Unfair Terms in Consumer Contracts Regulations 1999	86	(1)
Business liability	87	(1)
Negligence: section 2 UCTA	87	(1)
Breach of contract: section 3 UCTA	87	(1)
SGA and SOGASA implied terms: sections 6 and 7	88	(1)
The reasonableness test	89	(2)
The importance of bargaining power	91	(1)
Other reasonableness test factors	92	(1)
UCTA and contracts with consumers: a summary	93	(1)
UCTA and contracts between businesses: a summary	94	(1)
Answers to in-text questions	94	(2)
Discharge of contracts, performance and remedies for breach
Learning objectives	96	(1)
Introduction	96	(1)
Discharge of contracts	96	(4)
Discharge by performance	97	(1)
Discharge by agreement	97	(1)
Discharge by breach	98	(1)
Discharge by frustration	98	(1)
Frustration: the 'radical change' test	99	(1)
Effects of frustration	99	(1)
Performance	100	(3)
Performance: the general rule	101	(1)
Divisible contracts	101	(1)
Substantial performance	102	(1)
Acceptance of part-performance	102	(1)
Remedies for breach of contract	103	(1)
Time limits for legal action	103	(1)
Repudiation	103	(2)
Breach of condition	103	(1)
Problems with repudiation	104	(1)
Affirmation	104	(1)
Damages	105	(4)
Remoteness of damage	106	(1)
Mitigation	106	(1)
Causation	107	(1)
Loss must be quantifiable	107	(1)
Loss of amenity	108	(1)
Dealing with damages in the contract	108	(1)
Equitable remedies	109	(2)
Damages not an adequate remedy	110	(1)
Delay and clean hands	110	(1)
Supervision and enforcement	111	(1)
Answers to in-text questions	111	(2)
Validity of contracts (1)
Learning objectives	113	(1)
Introduction	113	(1)
Misrepresentation	113	(5)
What is a representation?	114	(1)
Representation of fact, not opinion	115	(1)
Representation was false	116	(1)
Injured party believed representation was true	116	(1)
Representation induced a contract	116	(1)
Remedies	117	(1)
Mistake	118	(5)
Mistake of fact	118	(1)
Mistake and frustration	119	(1)
Mistake of fact: subject matter	120	(1)
Mistake of fact: identity	121	(1)
Mistake of fact: terms	121	(1)
Mistake of fact: non est factum	122	(1)
Other types of mistake	122	(1)
Answers to in-text questions	123	(2)
Validity of contracts (2)
Learning objectives	125	(1)
Introduction	125	(1)
Duress and undue influence	125	(4)
Effect of duress and undue influence	125	(1)
Physical duress	126	(1)
Economic duress	126	(1)
The test for economic duress	127	(1)
Undue influence	127	(2)
Illegality	129	(4)
Contracts for an illegal purpose	129	(1)
Restraint of trade	129	(1)
Legitimate interests and reasonableness	130	(1)
Public policy considerations	131	(1)
Severance	131	(1)
Lawful contracts that are illegally performed	132	(1)
Reform	132	(1)
Capacity	133	(2)
Mentally ill or mentally handicapped people	133	(1)
Minors	133	(2)
Answers to in-text questions	135	(1)
Website summary	136	(3)
Part 3 Tort
General principles of liability in tort and the tort of negligence
Learning objectives	139	(1)
Introduction	139	(1)
General principles of liability in tort	139	(3)
Duty of care	140	(1)
Defences to an action	140	(1)
Time limits?	140	(1)
Tort and other forms of liability	141	(1)
The tort of negligence	142	(15)
Duty of care	143	(7)
Breach of duty	150	(2)
Causation and remoteness of damage	152	(3)
Defences	155	(2)
Answers to in-text questions	157	(2)
Other business-related torts and vicarious liability
Learning objectives	159	(1)
Introduction	159	(1)
Other business-related torts	159	(10)
Nuisance	159	(3)
The rule in Rylands v Fletcher (1868)	162	(2)
Occupiers' liability	164	(1)
Are trespassers owed a duty of care?	164	(1)
Breach of statutory duty	165	(1)
Economic torts	166	(3)
Vicarious liability	169	(6)
Introduction	169	(1)
What is needed to establish vicarious liability?	170	(5)
Primary liability of an employer	175	(1)
Answer to in-text question	175	(1)
Website summary	175	(4)
Part 4 Company law
Business associations
Learning objectives	179	(1)
Introduction	179	(1)
Sole traders	179	(1)
Partnerships	180	(10)
Ordinary partnerships	180	(2)
Relationship between the partners	182	(1)
Relationship between partners and third parties	183	(2)
Dissolution of a partnership	185	(1)
Limited liability partnerships	186	(4)
Incorporated companies	190	(5)
Types of company	191	(1)
Public companies	191	(1)
Private companies	192	(1)
Small and medium-sized companies	193	(1)
Community interest companies	194	(1)
Registration of companies	194	(1)
Business names	195	(2)
Answer to in-text question	197	(1)
Incorporation
Learning objectives	198	(1)
Introduction	198	(1)
Corporate personality	199	(4)
Lifting the veil of incorporation	200	(2)
Limited liability of members	202	(1)
Promotion of a company	203	(2)
Legal position of promoters	203	(1)
Disqualification of promoters	203	(1)
Pre-incorporation contracts	203	(2)
Constitution of a company	205	(8)
Memorandum of association	205	(4)
Articles of association	209	(1)
Legal effect of the memorandum and the articles	209	(2)
Alteration of articles of association	211	(2)
Answers to in-text questions	213	(1)
Capital
Learning objectives	214	(1)
Introduction	214	(1)
Share capital	214	(6)
Shares	215	(3)
Maintenance of capital	218	(2)
Loan capital	220	(8)
Debentures and charges	221	(2)
Reservation of title clauses	223	(1)
Registration of charges	224	(1)
Priority of creditors	225	(3)
Answer to in-text question	228	(1)
Company management
Learning objectives	229	(1)
Introduction	229	(1)
Division of powers	230	(3)
Default powers	231	(1)
Removal of directors	231	(1)
The power to sue	232	(1)
Directors: nature and scope of office	233	(4)
Appointment of directors	233	(1)
Vacation of office	234	(3)
Directors' remuneration	237	(1)
Directors' service contracts	237	(1)
Company secretary	237	(1)
Qualifications of a company secretary	238	(1)
Auditors	238	(2)
Appointment	239	(1)
Remuneration	239	(1)
Removal	239	(1)
Resignation	239	(1)
Company meetings	240	(4)
Types of meeting	240	(1)
Calling of meetings	241	(1)
Notice of meetings	241	(1)
Types of resolution	242	(1)
Proceedings of meetings	243	(1)
Reform	244	(1)
Answers to in-text questions	245	(1)
Directors' duties
Learning objectives	246	(1)
Introduction	246	(1)
To whom duties are owed	247	(2)
Fiduciary duties of directors	249	(6)
The no-conflict rule	249	(2)
Misuse of corporate property	251	(2)
To act bona fide in the interests of the company	253	(1)
The proper purpose rule	253	(2)
Duties of care and skill	255	(1)
Liability of third parties	256	(1)
Statutory provisions	256	(1)
Section 310 CA 1985	256	(1)
Section 727 CA 1985	257	(1)
Reform	257	(1)
Answers to in-text questions	258	(1)
Shareholder protection
Learning objectives	259	(1)
Introduction	259	(1)
Majority rule	260	(5)
The rule in Foss v Harbottle (1843)	260	(1)
Exceptions to the rule in Foss v Harbottle (1843)	261	(4)
Statutory protection	265	(6)
Winding up on the just and equitable ground	266	(2)
Unfairly prejudicial conduct	268	(3)
Company investigations	271	(1)
Reform	272	(1)
Answers to in-text questions	273	(1)
Corporate insolvency
Learning objectives	274	(1)
Introduction	274	(1)
Methods of dissolution	275	(1)
Proceedings by the Attorney-General	275	(1)
Dissolution under a scheme of reconstruction or amalgamation	275	(1)
Defunct company may be struck off	275	(1)
Compulsory and voluntary winding up	275	(1)
Alternatives to winding up	276	(3)
Reconstructions	279	(2)
Fair dealing provisions	281	(1)
Website summary	281	(3)
Part 5 Consumer, employment and agency law
Consumer protection
Learning objectives	284	(1)
Introduction	284	(1)
Consumer protection: an overview	285	(1)
Criminal conduct	285	(2)
Examples of criminal offences	286	(1)
What the prosecution must prove	286	(1)
Licensing	287	(3)
Scope of the CCA	287	(1)
How the CCA protects consumers	288	(1)
Reform	289	(1)
Imposing additional liability	290	(2)
How the CPA makes it easier to claim	290	(1)
Defences under the CPA	290	(1)
Sale of goods legislation	291	(1)
Contract terms	292	(4)
Unfair Terms in Consumer Contracts Regulations	293	(1)
Core terms and individually negotiated terms	293	(1)
The UTCCR and UCTA: different definitions of consumer	293	(1)
The UTCCR and fairness	294	(2)
Plain intelligible language	296	(1)
Regulators and consumer bodies	296	(2)
Stop Now Orders	297	(1)
Consumer representative bodies	297	(1)
Voluntary schemes	298	(1)
Answers to in-text questions	298	(4)
Aspects of employment law
Learning objectives	302	(1)
Introduction	302	(1)
Contract of employment	303	(1)
Pay	304	(2)
Employer's duty to pay the employee	304	(1)
Equal pay	304	(2)
Acting faithfully	306	(1)
Health and safety	306	(4)
Health and safety at common law	307	(1)
Health and Safety at Work Act 1974	307	(3)
Dismissal	310	(4)
Unfair dismissal	311	(3)
Redundancy	314	(1)
Eligibility	314	(1)
Offer of suitable alternative employment	314	(1)
Nature of claim	314	(1)
Discrimination	315	(6)
Sex Discrimination Act 1975	316	(2)
Race Relations Act 1976	318	(2)
Other discrimination	320	(1)
Answer to in-text question	321	(1)
Agency
Learning objectives	322	(1)
Introduction	322	(1)
Types of agent	323	(1)
Commercial agent	323	(1)
Factor or mercantile agent	323	(1)
General agent	324	(1)
Special agent	324	(1)
Creation of agency	324	(2)
Express appointment	324	(1)
Implied appointment	324	(1)
Agency by estoppel	324	(1)
Agency of necessity	325	(1)
Ratification	325	(1)
Rights of an agent	326	(1)
Right to receive remuneration	326	(1)
Right of indemnification	326	(1)
Duties of an agent	327	(1)
Reasonable skill and care	327	(1)
Fiduciary duties	327	(1)
To perform duties personally	328	(1)
Duty of obedience	328	(1)
Authority of an agent	328	(4)
Actual express authority	329	(1)
Actual implied authority	329	(1)
Apparent or ostensible authority	330	(1)
Usual authority	331	(1)
Effect of agency on contractual relations	332	(1)
Relationship between agent and third party	332	(1)
Relationship between principal and third party	333	(1)
Termination of agency	333	(1)
By express revocation	334	(1)
By death or bankruptcy	334	(1)
By execution of the contract	334	(1)
By other events	334	(1)
Irrevocable agencies	334	(1)
Answer to in-text question	334	(1)
Website summary	335	(3)
Part 6 Test your knowledge
English legal system
What is law?	338	(4)
Summary	338	(1)
Key terms	339	(2)
Quick quiz	341	(1)
Quick quiz answers	341	(1)
How the law is enforced	342	(5)
Summary	342	(2)
Key terms	344	(1)
Quick quiz	345	(1)
Quick quiz answers	346	(1)
Contract
Contract law: an introduction	347	(3)
Summary	347	(1)
Key terms	348	(1)
Quick quiz	349	(1)
Quick quiz answers	349	(1)
Contract formation: getting agreement	350	(4)
Summary	350	(1)
Key terms	351	(1)
Quick quiz	352	(1)
Quick quiz answers	353	(1)
Contract formation: certainty of terms and consideration	354	(3)
Summary	354	(1)
Key terms	355	(1)
Quick quiz	356	(1)
Quick quiz answers	356	(1)
Terms of the contract	357	(5)
Summary	357	(3)
Key terms	360	(1)
Quick quiz	360	(1)
Quick quiz answers	361	(1)
Exemption clauses	362	(3)
Summary	362	(2)
Key terms	364	(1)
Quick quiz	364	(1)
Quick quiz answers	364	(1)
Discharge of contracts, performance and remedies for breach	365	(6)
Summary	365	(3)
Key terms	368	(1)
Quick quiz	369	(1)
Quick quiz answers	370	(1)
Validity of contracts (1)	371	(4)
Summary	371	(1)
Key terms	372	(1)
Quick quiz	373	(1)
Quick quiz answers	374	(1)
Validity of contracts (2)	375	(5)
Summary	375	(2)
Key terms	377	(1)
Quick quiz	378	(1)
Quick quiz answers	378	(2)
Tort
General principles of liability in tort and the tort of negligence	380	(4)
Summary	380	(2)
Key terms	382	(1)
Quick quiz	382	(1)
Quick quiz answers	383	(1)
Other business-related torts and vicarious liability	384	(3)
Summary	384	(1)
Key terms	385	(1)
Quick quiz	386	(1)
Quick quiz answers	386	(1)
Company law
Business associations	387	(4)
Summary	387	(1)
Key terms	388	(1)
Quick quiz	389	(1)
Quick quiz answers	390	(1)
Incorporation	391	(4)
Summary	391	(1)
Key terms	392	(2)
Quick quiz	394	(1)
Quick quiz answers	394	(1)
Capital	395	(3)
Summary	395	(1)
Key terms	396	(1)
Quick quiz	397	(1)
Quick quiz answers	398	(1)
Company management	398	(5)
Summary	398	(2)
Key terms	400	(2)
Quick quiz answers	402	(1)
Quick quiz answers	402	(1)
Directors' duties	403	(3)
Summary	403	(1)
Key terms	404	(1)
Quick quiz	405	(1)
Quick quiz answers	405	(1)
Shareholder protection	406	(3)
Summary	406	(1)
Key terms	407	(1)
Quick quiz	408	(1)
Quick quiz answers	408	(1)
Corporate insolvency	409	(3)
Summary	409	(1)
Key terms	410	(1)
Quick quiz	411	(1)
Quick quiz answers	411	(1)
Consumer, employment and agency law
Consumer protection	412	(7)
Summary	412	(4)
Key terms	416	(1)
Quick quiz	417	(1)
Quick quiz answers	417	(2)
Aspects of employment law	419	(5)
Summary	419	(3)
Key terms	422	(1)
Quick quiz	423	(1)
Quick quiz answers	423	(1)
Agency	424	(3)
Summary	424	(1)
Key terms	425	(1)
Quick quiz	425	(1)
Quick quiz answers	426	(1)
Index	427