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Unit5 Aspects Of Contract And Negligence For Business

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Unit5 Aspects Of Contract And Negligence For BusinessFiona is keen to take advantage of her uncle’s offer but is unsure whether she can raise such a large amount of money by the end of September. She phones her uncle to find out whether she can have until after Christmas to pay. Her uncle is away at a conference and so Fiona leaves a message with his secretary. Two weeks pass by and, as Fiona has not heard from her uncle, she arranges a loan with her bank. On 28 September she writes to her uncle accepting his offer and enclosing a cheque for £15,000. On 30 September, her uncle phones to say that he has already sold the equipment to someone else.

Mini-case B

Mrs Smith promises to give a £10 reward for the return of ‘Lucky’ – black and white cat. David sees the advert in the local paper finds the cat and spends £15 for a taxi to return the cat to Mrs Smith. David explain this to Mrs Smith and claims £25. Mrs refuses to pay David. Click Here

Mini-case C

Mrs Harris, the owner of three rented houses in Extown, asks her next-door neighbour, Ted, to collect rent from the tenants for her while she is abroad on business. Ted collects the rents and when Mrs Harris returns, she says to him, “I’ll give you £50 for your work”. Later Mrs Harris refuses to pay Ted.

Mini-case D

Lynx Cars Ltd, the manufacturer of a revolutionary fuel-efficient small car, enters into a five-year dealership agreement with Roadstar Ltd, a northern-based company of car dealers, in November 2003. A clause in the agreement states: ‘This agreement is not intended to be legally binding but the parties honourably pledge that they will carry out its terms’.

Roadstar places an initial order for 2,000 cars to be delivered by the end of 2007, which is accepted by the manufacturer. One month after the successful launch of the car, Lynx Cars Ltd writes to Roadstar Ltd informing that, owing to production difficulties, the company estimates that it will be able to deliver only 200 cars by the end of 2007. It further states that it will be withdrawing from the dealership agreement from the end of 2007 to be able to concentrate its resources on its south of England car dealers. Roadstar Ltd is seeking some advice.

Mini-case E

Paul is looking for a second-hand car when he sees an advertisement in is local evening paper which reads:

SLICK CAR SALES LTD

Hundreds of used car bargains. Lowest prices you’ve ever seen. Definitely the lowest prices in Britain; All cars purchased this month will include Road Fund Tax, Radio, Stereo and a full tank of petrol. Paul visits the showrooms of Slick Cars and selects a car priced at £3,995 which the salesman tells him is a 1994 Mondeo which has done 30,000 miles and has had only one owner. Paul signs a sales agreement which describes the car as ‘1994 Ford Mondeo. Cayman Blue; Registration Number L931 AJU.’

Paul is unsure of which of these statements represent trader’s puff, representation, conditions or warranty. He also wants to know the implied terms in this agreement and the remedies available to him if any of these statements turns out to be false.

Mini-case F

While on holiday at the seaside, Jim agrees to take his family to ‘Fun Park’. He pays £1 to park his car on a car park run by the Stand Council. A notice at the entrance of the car park, which has been partly obscured by overgrown shrubs, states: ‘Cars parked entirely at owner’s risk’. Jim pays £7 for a family admission ticket to ‘Fun Park’, which is managed by Leisure Ltd. The back of the ticket contains the following clause: ‘The Company does not accept liability for death or personal injury to visitors, howsoever caused.’ Jim and his wife are watching their children on the ‘waltzer’ when a metal bar flies off, injuring Jim and his wife. After receiving hospital treatment, Jim returns to his car to discover that it has been damaged by a Strand Council refuse van.

Jim and his wife are seeking advice.

Required:

  1. Discuss the impact of different types of contracts (e.g. face to face, written, distance selling)(AC1.2). Provide examples to illustrate your answer.
  2. Using the Mini-cases A, B, C and D, relevant principles and case law, explain the importance of the essential elements required for the formation of a valid contract (AC1.1). Reinforce your discussion by using relevant principles and case law. (AC2.1; AC2.2)
  3. Using the Mini-cases E and F, relevant principles and case law, analyse terms in contracts with reference to their meaning and effect in the mini-cases above (AC1.3). Your analysis should specifically address the legality of exemption clauses and outline the remedies and damages available for breach of condition, warranty and innominate terms (AC2.3).

Read the following cases and answer the questions below

Case 1:

Donoghue v Stevenson [1932] AC 562 House of Lords

Mrs Donoghue went to a cafe with a friend. The friend brought her a bottle of ginger beer and an ice cream. The ginger beer came in an opaque bottle so that the contents could not be seen. Mrs Donoghue poured half the contents of the bottle over her ice cream and also drank some from the bottle. After eating part of the ice cream, she then poured the remaining contents of the bottle over the ice cream and a decomposed snail emerged from the bottle. Mrs Donoghue suffered personal injury as a result. She commenced a claim against the manufacturer of the ginger beer.

Held:

Her claim was successful. This case established the modern law of negligence and established the neighbour test.

Lord Aitken:

“The rule that you are to love your neighbour becomes in law you must not injure your neighbour; and the lawyer’s question “Who is my neighbour?” receives a restricted reply. You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbour. Who then in law is my neighbour? The answer seems to be persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question.”

Case 2:

The control test: Who has control over the activity being performed?

Can Employer A be held vicariously liable for the injury cause to a person by its employees while these employees were performing a task on behalf of employer B?

The answer is that it is sometimes necessary to decide whether the employees, who are truly employed by Employer A have been temporarily transferred to another Employer B so that B (the temporary employer) and not A (the general employer) is vicariously liable for the injuries caused to a person by these employees.

Mersey Docks and Harbour Board v Coggins & Griffiths (Liverpool) Ltd (1946)

The board owned and hired out mobile cranes driven by skilled operators who were employees of the Board. Coggins & Griffiths, who were stevedores, hired one of the Board’s cranes and an operator, Mr Newell, to unload a ship.

In the course of unloading the ship, a person was injured because of Mr Newell’ negligence and the court had to decide whether the Board of Coggins & Griffiths were vicariously liable along with Mr Newell for the latter negligence. The matter was one of control because the Board was quite clearly the general employer. Actually, the answers given by Mr Newell to questions put before him by the counsel in court were highly important. At one point he said: ‘I take no orders from anybody’. Since he was not truly employed by Coggins & Griffiths and since he did not, so he said, take order from them, there was no way in which he could be regarded as under their control.  Therefore his true employer, the Board, was vicariously liable for Mr Newell’s negligence.

Comment: It is presumed in these cases that the general employer continues to be liable and it is up to him to satisfy the court that control has passed to a temporary employer.

Required:

An individual PowerPoint Presentation on 27th November 2014 to cover the following:

  1. Contrast liability in tort with contractual liability (AC3.1)
  2. Explain the nature of liability in negligence and apply the elements of the tort of negligence and defences available.  Use relevant principles, case law and cases 1 and 2 above to reinforce your arguments. (AC3.2, AC4.1)
  3. Explain how a business can be vicariously liable and apply the elements of vicarious liability using relevant principles and case 2 above (AC3.3, AC4.2)

You will need to submit your PowerPoint slides and notes for assessment 

GRADING DETAILS

Students need to achieve all the assessment criteria for a ‘Pass’

All Assessment Criteria = Pass

All Assessment Criteria + All Merit descriptors = Merit

All Assessment Criteria + All Merit descriptors + All Distinction descriptors = Distinction

Any assessment criteria that do not meet the minimum requirement for pass will be re-submitted

Grade DescriptorsIndicative CharacteristicsContextualised Grade Guidance
MERIT
M1

Identify and

apply strategies

to find appropriate

solutions.

  • effective judgements have been  made
  • complex problems with more than one variable have been explored
  • an effective approach to study and research has been applied
AC3.1;
M2

Select / design and

apply appropriate

methods/techniques

 

  • relevant theories and techniques have been applied
  • a range of methods and techniques have been applied
  • a range of sources of information has been used
  • the selection of methods and techniques/sources has been justified
  • the design of methods/ techniques has been justified
  • complex information/data has been synthesised and processed
  • appropriate learning methods/techniques have been applied
AC2.1; AC2.2; AC2.3
M3

Present and

communicate

appropriate findings.

 

  • the appropriate structure and approach has been used
  • coherent, logical development of principles/concepts for the intended audience
  • a range of methods of presentation have been used and technical language has been accurately used
  • communication has taken place in familiar and unfamiliar contexts

 

  • The communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used.
Task 2

 

 

 

 

 

 

 

 

DISTINCTION
D1

Use critical

reflection to

evaluate own

work and justify

valid

conclusions

  • conclusions have been arrived at through synthesis of ideas and have been justified
  • the validity of results has been evaluated using defined criteria
  • self-criticism of approach has taken place
  • realistic improvements have been proposed against defined characteristics for success
AC1.3; AC2.3

 

 

 

 

D2

Take

Responsibility

for managing

and organising

activities

  • autonomy/independence has been demonstrated
  • substantial activities, projects or investigations have been planned, managed and organised
  • activities have been managed
  • the unforeseen has been accommodated
  • the importance of interdependence has been recognised and achieved
Task 2
D3

Demonstrate

convergent /

lateral / creative

thinking

  • ideas have been generated and decisions taken
  • self-evaluation has taken place
  • convergent and lateral thinking have been applied
  • problems have been solved
  • innovation and creative thought have been applied
  • receptiveness to new ideas is evident
  • effective thinking has taken place in unfamiliar contexts
AC 4.1; AC4.2

AC3.3

Extension and Late Submission

If an extension is necessary for a valid reason, requests can me made using a course work extension request form available from the college. Please note that the lecturers do not have the authority to extend the coursework deadlines and therefore do not ask them to award a coursework extension.

The completed form must be accompanied by evidence such as a medical certificate in the event of you being sick.

Plagiarism and Collusion

Any act of plagiarism and collusion will be seriously dealt with according to the regulations. In this context the definition and scope of plagiarism are presented below:

‘Plagiarism occurs when a student misrepresents, as his/her own work, the work, written or otherwise, of any other person (including another student) or of any institution. Examples of forms of plagiarism include[1]:

  • the verbatim (word for word) copying of another’s work without appropriate and correctly presented acknowledgement;
  • the close paraphrasing of another’s work by simply changing a few words or altering the order of presentation, without appropriate and correctly presented acknowledgement;
  • unacknowledged quotation of phrases from another’s work;
  • The deliberate and detailed presentation of another’s concept as one’s own.’

All types of work submitted by students are covered by this definition, including, written work, diagrams, designs, engineering drawings and pictures.

‘Collusion occurs when, unless with official approval (e.g. in the case of group projects), two or more students consciously collaborate in the preparation and production of work which is ultimately submitted by each in an identical, or substantially similar, form and/or is represented by each to be the product of his or her individual efforts. Collusion also occurs where there is unauthorised co-operation between a student and another person in the preparation and production of work which is presented as the student’s own. (ibid)’

All work for assessment must be submitted with a Turnitin Report on plagiarism.  The Maximum Turnitin score admissible is 15% (after deduction of 1% & 2% records). As-signments with more that this adjusted 15% score will be automatically referred for re-working and resubmission. Read more about : International Environment Assignment

Support Material

Unit 5: Aspects of Contract and Negligence for Business

(Y/601/0563)

Textbooks

  • Elliot C and Quinn F – Tort Law (Longman, 2009) ISBN: 9781405899338
  • Horsey K and Rackley E – Tort Law (OUP Oxford, 2009) ISBN: 9780199216376
  • McKendrick, E – Contract Law: Text, Cases, & Materials: Text, Cases, and
  • Materials (OUP Oxford, July 2008) ISBN: 9780199208012
  • Peel E and Treitel G H – Treitel on the Law of Contract (Sweet and Maxwell
  • 2007) ISBN: 9780421948402

Journals

  • Law Society Gazette (The Law Society)
  • New Law Journal (LexisNexis Butterworths)

Websites

  • www.bailii.org/ British and Irish Legal Information
  • Institute – access to freely available
  • British and Irish public legal
  • Information
  • http://www.oft.gov.uk/ The Office of Fair Trading
  • http://iclr.co.uk/ The Incorporated Council of Law
  • Reporting for England and Wales
  • http://www.tradingstandards.gov.uk/ Main site for trading standards and
  • its business advice
  • http://www.berr.gov.uk/whatwedo/consumers/
  • buying‐selling/ucp/
  • Department for Business Innovation
  • and Skills – Links and data on
  • consumer protection
  • www.hmso.gov.uk/acts/acts2001.htm Public Acts of the UK Parliament
  • Summative Feedback on this coursework will be given on
  • 19th December 2014.
  • Referral dropbox will open from – 22nd December, 2014
  • Referral submission deadline – 3rd January, 2015
  • Referral result declared – 9th January, 2015

Assignment Resubmission Policy

A Resubmission is any work handed in for final assessment a second time.

The Final Deadline is the date on which the whole assignment must be completed and submitted (usually in week 12 at the end of the semester).

Work submitted                                           To be Resubmitted 

  • Referred after Final Deadline Four weeks after the final deadline
  • Missed Final Deadline End of next semester
  • Missed formative assessment(s) and

Referred after Final Deadline                End of next semester

  • Referred SMALL after resubmission £25 reassessment fee
  • Referred LARGE after resubmission Repeat semester and attend classes

Completed, assessed units (Pass, Merit) from your first Semester may be reworked and submitted  for a higher grade once only  on payment of a reassessment fee of £25.

ASSESSMENT DECISION

Programme:                        BTEC Higher National Diploma (HND) in Business

Unit Title and Number:          Aspects of Contract and Negligence for Business (Unit 5)

Module Tutor:                      Tabassum Ferdous; Yannick Fansi

Learner’s Name :__________________________________Learner ID:___________________

Assessment CriteriaMetEvidence Feedback
1.1explain the importance of the essential elements required for the formation of a valid contract
1.2discuss the impact of different types of contract
1.3analyse terms in contracts with reference to their

meaning and effect

2.1apply the elements of contract in given business

scenarios

2.2apply the law on terms in different contracts
2.3evaluate the effect of different terms in given contracts
3.1contrast liability in tort with contractual liability
3.2explain the nature of liability in negligence
3.3explain how a business can be vicariously liable
4.1apply the elements of the tort of negligence and defences in different business situations
4.2apply the elements of vicarious liability in given business situations.
Grade DescriptorsIndicative CharacteristicsEvidenceAssessor feedback
MERIT
M1

Identify and

apply strategies

to find appropriate

solutions.

·         effective judgements have been  made

·         complex problems with more than one variable have been explored

·           research has been applied

 

 

M2

Select / design and

apply appropriate

methods/techniques

·         relevant theories and techniques have been applied

·         a range of methods and techniques have been applied

·         a range of sources of information has been usedthe selection of methods and techniques/sources has been justified

·         the design of methods/techniques has been justified complex information /data has been synthesised and processed

·         appropriate learning methods/techniques have been applied

 

 

M3

Present and

communicate

appropriate findings.

 

·         the appropriate structure and approach has been used

·         coherent, logical development of principles/concepts for the intended audience

·         a range of methods of presentation have been used and technical language has been accurately used

·         communication has taken place in familiar and unfamiliar contexts

·         The communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used.

DISTINCTION
D1

Use critical reflection to evaluate own work and justify conclusions

·         conclusions have been arrived at through synthesis of ideas and have been justified

·         the validity of results has been evaluated using defined criteria

·         self-criticism of approach has taken place

·         realistic improvements have been proposed against defined characteristics for success

 

 

D2

Take

Responsibility

for managing

and organising

activities

·         autonomy/independence has been demonstrated

·         substantial activities, projects or investigations have been planned, managed and organised

·         activities have been managed

·         the unforeseen has been accommodated

·         the importance of interdependence has been recognised and achieve

D3

Demonstrate

convergent /

lateral/creative

thinking

·         ideas have been generated and decisions taken

·         self-evaluation has taken place

·         convergent and lateral thinking have been applied

·         problems have been solve

·         innovation and creative thought have been applied

·         receptiveness to new ideas is evident

·         effective thinking has taken place in unfamiliar contexts

 

 

Assessor’s General Comments:

Resubmission Status:     unnecessary      SMALL                 LARGE

Please resubmit Sections indicated above to meet Assessment Criteria:

Resubmission Date  3rd January 2015

Assessor’s Signature:……………………………………………………  Date: ……………………………………

Print Name:

Learner’s Comments:

Signature:                                                                                                                           Date:

Print Name:

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