Aspects of Contract and Negligence for Business
Aspects of Contract and Negligence for Business
Assignment Front Sheet Qualification Pearson BTEC Level 5 HND Diploma in Business Student Name Unit Number and Title Unit 5: Aspects of Contract and Negligence for Business Student No.
Assessor name Date of Issue
Dr Francis Offeh Completion date 11/07/2014 Submitted on
Assignment title
Aspects of Contract and Negligence for Business
Learning Outcome
Learning outcome
Assessment criteria
LO1
Understand the essential elements of a valid contract in a business context
1.1
1.2 1.3
In this assessment you will Task have the opportunity to No. present evidence that shows you are able to Explain the importance of the essential elements required for the formation of a valid contract Discuss the impact of different types of contract Analyse terms in contracts with reference to their meaning and effect Apply the elements of contract in given business scenarios Apply the law on terms in different contracts Evaluate the effect of different terms in given contracts Contrast liability in tort with contractual liability
Evidence (Page no)
LO2
Be able to apply the elements of a contract in business situations
2.1
2.2
2.3
LO3
Understand principles of
3.1
1
liability in negligence in business activities
3.2
Explain the nature of liability in negligence Explain how a business can be vicariously liable Apply the elements of the tort of negligence and defence in different business situations Apply the elements of vicarious liability in given business situation
3.3
LO4
Be able to apply principles of liability in negligence in business situation
4.1
4.2
Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Student Signature:
Date:
2
In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades. Grade Descriptor M1 Indentify and apply strategies to find appropriate solutions Indicative characteristic/s Effective judgements have been made
An effective approach to study and research has been applied
Contextualisation To achieve M1, you will make effective judgments about the essential elements of a valid contract and how they are applied in the context of the business scenario provided. (Task 1 & 2) To achieve M2, you will have applied appropriate techniques and methods to explore the essential aspects of contract and negligence for business with particular reference to the scenario ( Task 1, 2 & 3) To achieve M3, your work will be presented in the appropriate formats and presentation (Task 1, 2, 3 & 4) To achieve D1, you will have drawn conclusions which draw out the links between aspects of contract and negligence and the scenario presented ( Task 2, 3 & 4) To achieve D2, you will have displayed an effective approach to independent research and study will have met the assignment submission deadline and covered the unit assessment criteria. (Task 1, 2, 3, 4 ) To achieve D3, learners are required to demonstrate critical thinking and problem solving skills ( Task 1, 2, 3 & 4) 3
M2 Select/Design and apply appropriate methods/techniques
Appropriate learning methods/techniques have been applied
M3 Present and communicate appropriate findings
Communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used. Conclusions have been arrived at through synthesis of ideas and have been justified
D1 Use critical reflection to evaluate own work and justify valid conclusions
D2 Take responsibility for managing and organising activities
Activities have been managed
D3 Demonstrate convergent/lateral and creative thinking
Critical thinking has taken place in unfamiliar contexts.
Assignment Brief
Unit Number and title Qualification Start Date Deadline Assessor 11/07/2014 Dr Francis Offeh Unit 5: Aspects of Contract and Negligence for Business Pearson BTEC Level 5 HND Diploma in Business
Assignment title
Aspects of Contract and Negligence for Business
Purpose of this assignment
The purpose of this assignment is to provide learners the opportunity to display their understanding of aspects of contract, tort and negligence in business situations. It further seeks to assess the learners on how the law of tort differs from the law of contract and examines issues of liability in negligence in business context and how they can be avoided. Scenario: For a number of years, Linda Green worked in a popular hairdressing salon. She became a senior stylist and held a certain degree of managerial responsibility within the salon. She had been thinking of starting up her own business, and a recent change in salon ownership made her determined to make the break from the salon. She started up as a mobile operator, doing a small amount at home, but the bulk of her work involved travelling to clients’ houses. Her reputation soon grew and she became inundated with offers for work. If she were to make further progress she felt that she would need to set up as a proper salon in proper premises. It seemed likely that, once established, she would need to employ other staff. She found the ideal premises for the new Scissors Salon in the form of a recently closed bookshop in the High Street. The shop needed much refurbishment, but was able to call on tradesmen who were prepared to help her at reasonable cost. Her wholesalers were happy to give her favourable terms for a period of a year, and so obtaining the necessary supplies was not a problem. However, she was asked to agree to pilot new products as and when they were brought out. She was, therefore, able to make the transition from a sole trader to a company owner with relative ease.
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Task 1:
A valid contract in a Business Context (LO1: 1.1,1.2, 1.3)
a) Describe the basic principles of a contract between Linda Green and a potential employee. b) Identify, and explain, any legal terms that should be included in such a contract. c) Under the terms of the initial agreement with the wholesalers, Scissors Salon had to promote certain new products. A new colouring agent had been introduced and the salon was the first in the area to use it. After a number of uses, it was discovered that an allergic reaction seemed to occur with a high proportion of skin types. Needless to say, the staff were not prepared to continue use of such a product. The wholesalers insisted that the use of the product was continued until positive proof is available. Considering the areas of contract law, how would you advise Linda Green to tackle the attitude of the wholesaler?
Task 2: Elements of a contract in Business situations (LO2: 2.1, 2.2, 2.3) a) Linda Green purchased most of her salon equipment from her main wholesaler. Twelve hairdryers were purchased and all found to overheat and burn out after only a few weeks use. The wholesalers were unwilling to exchange the dryers, stating that they were not designed for the heavy-duty salon usage. Linda contested that they had been purchased on the original advice of the assistant manager. This was disputed. With reference to the Sale of Goods Act, outline the key legal points upon which Linda could build a case against the wholesalers. How likely, in your opinion, is she to succeed? b) With reference to the Consumer Credit Act 1974, outline briefly the main issues that Linda must consider before embarking on any future credit agreements with her suppliers.
Task 3: Negligence in Business Activities (LO1: 3.1, 3.2, 3.3) a) Describe the differences between a sole trader, a partnership and a limited company. Identify the main legal requirements for each category of business. b) What considerations should Linda make before selecting the name ‘Scissors Salon’ for her business? c) Summarise the steps necessary for dissolution of the business should the business fail.
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Task 4: Principles of liability in negligence in Business Situations (LO4: 4.1, 4.2) a) Identify the statutory provisions regarding employees of which Linda Green should be aware. State clearly from which legislation sources they have come. b) The successful growth of Scissors Salon was rapid. Linda was determined only to employ reliable and experienced staff, but it was not always easy to find them. Consequently, she was short staffed on occasions. Whilst, in the early stages she could rely on part-time assistants willing to stay on longer during the day, this facility was only short lived. Complaints were made that she was demanding too many hours from some of her staff. Usually, the junior staff objected the most. Matters came to a head when a junior stylist was asked to carry out a perm treatment. She had not been properly trained for this task and was unwilling to follow Linda’s verbal instructions from a neighbouring chair. The customer complained that she had been kept waiting and left the salon complaining vehemently. It was noted that the same assistant made a habit of leaving work as soon as the salon shut, never staying to complete the necessary clearing up. Indeed, on one occasion when Linda was not in the salon, she left more than half an hour before closing, claiming that she had finished her last client. Linda has decided to dismiss the stylist. Discuss what grounds she has for any possible dismissal, and also list the steps she must take if she wishes to carry this out.
Evidence Checklist Task 1, 2,3,4
Summary of evidence
Evidence presented
Learners are required to submit a report
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Achievement Summary
Qualification Unit Number and title Student Name Assessor Pearson BTEC Level 5 HND Name Diploma in Business Dr Francis Offeh Unit 5: Aspects of Contract and Negligence for Business Student No.
Criteria Reference LO1 1.1
To achieve the criteria the evidence must show that the student is able to: Explain the importance of the essential elements required for the formation of a valid contract Discuss the impact of different types of contract Analyse terms in contracts with reference to their meaning and effect Apply the elements of contract in given business scenarios Apply the law on terms in different contracts Evaluate the effect of different terms in given contracts
Achieved? (tick)
1.2 1.3 LO2 2.1 2.2 2.3 LO3 3.1 3.2 3.3 LO4 4.1
Contrast liability in tort with contractual liability Explain the nature of liability in negligence Explain how a business can be vicariously liable Apply the elements of the tort of negligence and defence in different business situations Apply the elements of vicarious liability in given business situation
4.2
7
Grade Descriptor
M1 Indentify and apply strategies to find appropriate solutions
Achieved? Grade descriptor (tick)
D1 Use critical reflection to evaluate own work and justify valid conclusions
Achieved? (tick)
M2 Select/Design and apply appropriate methods/techniques
D2 Take responsibility for managing and organising activities
M3 Present and communicate appropriate findings
D3 Demonstrate convergent/lateral and creative thinking
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Assignment Feedback
Formative Feedback: Assessor to Student
Action Plan
Summative feedback
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