lOMoARcPSD|60563816

Business-law-exercises

Luật kinh tế (Đại học Kinh tế Quốc dân)

Scan to open on Studeersnel

Studocu is not sponsored or endorsed by any college or university

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])
 lOMoARcPSD|60563816

NATURE OF LAW

1 What is law and why is it necessary?

2 Explain the difference between the following pairs:

(a) public law and private law;

(b) civil law and criminal law;
(c) contract and tort;

(d) common law and equity;

(e) ownership and possession.

3 Consider the following legal actions and indicate whether civil or criminal proceedings would
result:

(a) Ann decides to divorce her husband, Barry, after 10 years of marriage;

(b) Colin is given a parking ticket by a traffic warden for parking on double yellow lines;

(c) Diane returns a faulty steam iron to the shop where she bought it, but the shop manager
refuses to give her a refund;

(d) Eamonn drives at 50 mph on a stretch of road where there is a 30-mph limit. He fails to see
Fiona, who is crossing the road. She is knocked down and sustains severe injuries;

(e) Graham takes a copy of Business Law from the reference section of the library, with the
intention of returning it when he has finished his first assignment. He finds the book so valuable
that he decides to keep it;

(f) Hazel returns to England after working abroad for three years. While abroad, she rented her
flat to Ian. She now gives him notice to quit, but he refuses to move out.

3 Explain why equity developed and how it differs from the common law. What is the present
relationship between the two systems?

4 David, a farmer, supplies organic free range eggs on a regular basis to the Peak Park Hotel and
Country Club. David’s hens, and the eggs they produce, have become infected with salmonella.
The Hotel uses the infected raw eggs to prepare a mayonnaise for Ian and Janet’s wedding

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

reception. Many of the guests are taken ill after the reception and Sybil, Janet’s 90-year-old
grandmother, dies.

(a) Identify the different types of legal proceedings which might arise from these facts.

(b) For each type of legal action you have identified in (a), discuss the nature of the legal liability
and the purpose or objective of taking legal action.

5 ‘The prosecution in a criminal case must prove both mens rea and actus reus to establish the
defendant’s guilt, unless it is a crime of strict liability’.

Explain and discuss.

6 What are the three main rules of statutory interpretation? What is the effect of these rules?

7 What are the five main levels of the courts, for the purposes of precedent?

8 What is meant by ratio decidendi and obiter dicta? What is the significance of the dis- tinction?
What is meant by overruling, reversing and distinguishing?

9 Find a case concerning the Human Rights Act 1998 either in a newspaper or on the Internet.
Which articles of the Convention did the case concern? Describe the outcome of the case or, if it
has not yet been decided, state what you think the outcome of the case might be.

LAW MAKING

1 For each of the actions listed below state:

(a) Which court or tribunal would hear the case?

(b) What type of lawyer could represent the parties?

(c) Who would try the action?

(d) To which court or tribunal would an appeal lie:

(i) in a prosecution for murder;

(ii) in an undefended divorce;

(iii) in a claim for damages of £75,000 for negligence causing personal injury;

(iv) in an application for a late extension by the licensee of a public house;

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

(v) in a claim by an employee that he has been unfairly dismissed;

(vi) in a bankruptcy petition where the debts are £20,000;

(vii) in a claim by a resident that his local authority has failed to produce accounts for
public inspection as required by law;

(viii) in a claim for damages of £200 for breach of contract;

(ix) in an application by a social services department to take a child into care?

CONTRACT LAW

1 Are these statements true or false?

(a) Most of the law of contract can be found in Acts of Parliament.

(b) All contracts must be in writing.

(c) Conveyances of land must be in the form of a speciality contract.

(d) The absence of an essential element will always render a contract void.

2 Analyse the following transactions in terms of offer and acceptance:

(a) filling a job vacancy;

(b) parking a car in a multi-storey car park;

(c) taking a bus ride;

(d) buying a cup of coffee from an automatic vending machine;

(e) buying a packet of soap powder from a supermarket;

(f) buying an antique dresser at an auction;

(g) acquiring shares in a privatisation issue;

(h) buying a book via the Internet.

3 On 13 September, Fiona, a newly qualified dentist, receives the following note from her uncle:

10 Park Street LONDON

Wl A54

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

Dear Fiona,
We talked some time ago about your buying some of my dental equipment when I retire from my
London practice at the end of this month. I am prepared to let you have everything for £15,000.
Let me know fairly quickly if you’re interested because I’ve already had a very good offer from
one of my colleagues.

Your affectionate uncle

Arnold

Fiona 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.

Advise Fiona.

5 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 2008. 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 Ltd places
an initial order for 2,000 cars to be delivered by the end of 2009, which is accepted by the
manufacturer. One month after the successful launch of the car at the Motor Show, Lynx Cars
Ltd writes to Roadstar Ltd informing it that, owing to production difficulties, the company
estimates that it will be able to deliver only 200 cars by the end of 2009. It further states that it
will be withdrawing from the dealership agreement from the end of 2009 to be able to
concentrate its resources on its south of England car dealers.

Advise Roadstar Ltd.

6 Kathy, aged 17, decides to leave home because she does not get on with her parents. Over the
next three weeks she enters into the following agreements:

(a) She borrows £500 from her older brother to tide her over until she can find a job.

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

(b) She takes a two-year lease on a bed-sit, paying three months’ rent in advance.

(c) By pretending to be 21, she orders a £700 suite of furniture from Palatial Pads Ltd on 12
months’ interest-free credit.

7 On 11 April, Nobita wrote to Doraemon offering to sell him 200 bags of potatoes at £10 per
bag. On 13 April, Doraemon posted a reply accepting Nobita’s offer but adding that if he did not
hear from Nobita, he would assume that the price included delivery to his (Doraemon’s)
warehouse. The following morning, before Doraemon’s letter arrived, Nobita heard a rumour
that the price of potatoes was about to slump dramatically. Nobita immediately sent a fax to
Doraemon, stating that ‘the price includes delivery’. Doraemon received Nobita’s fax at 10 am
on 14 April, whereupon he immediately posted a letter confirming his acceptance of Nobita’s
terms.

Over lunch, however, Doraemon also heard the news about a slump in the price of potatoes,
whereupon he sent Nobita a text message stating: ‘decline yr offr of pots’. The price of potatoes
has now fallen to £7 per bag and Doraemon refuses to accept delivery of Nobita’s pricey
potatoes.

Based on the theory and case law on Contract, please advise Nobita about the possible solution
to the situation.

8 Aladin, the owner of a London-based manufacturing company, has to attend an important

business meeting in Edinburgh on Monday. He is virtually certain to be awarded a lucrative
contract for his company if he keeps the appointment.

He books a flight on-line with FlyingCarpet. The booking conditions include the following
statement: ‘the company gives no guarantee that a seat will be available on a particular flight and
reserves the right to transfer customers to later or earlier flights and will not in such
circumstances be liable to pay compensation.’ Aladin books a taxi to take him to the airport in
London and overnight accommodation in Edinburgh for the Monday night. On arrival at the
airport for his flight, he is informed that the morning flight to Edinburgh is full but he is
allocated a seat on the Tuesday morning flight. He fails to keep his appointment and as a result
loses the contract for his company.

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

Based on theory and case law on Contract, please advise Aladin who wishes to claim damages
for the lost business deal, the cost of his taxi fare and the hotel booking.

9 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.’

Can Ted enforce the promise?

10 John, a plumber, installs a new bathroom for Mr and Mrs Bolton for an agreed price of £500.
Five weeks after sending the bill John still has not received payment. He rings the Boltons and
speaks to Mrs Bolton. She says that she is unhappy about the quality of John’s work, which she
claims is only worth £350 at most. She also tells John that her husband has just lost his job and
they can only afford to pay £100. John reluctantly agrees to accept a cheque for this amount ‘in
full settlement’.

Three months later John hears that Mr Bolton is back in employment and he wonders whether he
can recover the outstanding money.

11 Kathy, aged 17, decides to leave home because she does not get on with her parents. Over the
next three weeks she enters into the following agreements:

(a) She borrows £500 from her older brother to tide her over until she can find a job.

(b) She takes a two-year lease on a bed-sit, paying three months’ rent in advance.

(c) By pretending to be 21, she orders a £700 suite of furniture from Palatial Pads Ltd on 12
months’ interest-free credit.

(d) She sets up a home catering business and immediately agrees to cater for 100 people
attending a 21st birthday party for a price of £500. She insists on £100 deposit. As the day for the
party approaches, she finds that she has taken on too much work for one person, so she rings her
customers on the afternoon of the party to say that she will not be able to do the catering after all.

Discuss the legal effects of these transactions.

12

Martin owns four talented grey mice that he trained to perform synchronized tricks. One day,
they escape from their enclosure. Martin posts a notice in the local newspaper describing the

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

mice and offering £500 for each mouse returned to him. Emma, Martin's neighbor, discovers one
of the mice. She keeps it safe and fed in a small container overnight before attempting to return it
to Martin. However, before she can hand it over, the mouse slips out of the container, runs away,
and finds its way back into Martin’s home through a small crack.

James, another local, spends two days looking for the mice, incurring £15 in travel expenses
around the city. He captures one of the mice but doesn’t return it right away. Meanwhile, George
finds another mouse, but unfortunately, it has been killed by a stray cat. He brings the deceased
mouse to Martin, who declines to give him any reward. Lydia, Martin’s cousin, finds the last
mouse in her garage. She returns it to Martin, but he refuses to pay her as well.

After realizing one of the mice is deceased, Martin concludes that he can no longer have them
perform as a group. He distributes flyers around the city to retract his reward offer. James, who
hasn’t seen the flyers, brings the mouse he found to Martin later that day. Martin, sticking to his
decision, refuses to pay James for the return.

13 On 15 July, Apex Ltd sent a written offer to sell a shipment of 1,000 electronic tablets to
David, a retailer. The offer specified a price of £10,000 and stated that it would remain open until
5 August. On 17 July, David called Apex Ltd to ask if he could have three months' credit for the
purchase. Apex Ltd's manager responded that payment would need to be made in cash at the time
of delivery. On 3 August, Apex Ltd sold the tablets to a third party, Charles. On 4 August, David
sent a letter accepting Apex Ltd's offer. The letter arrived on 6 August. Upon receiving the letter,
Apex Ltd's manager phoned David, informing him that the tablets had already been sold and that
no similar stock was currently available. Advise the parties on whether or not a contract was
formed.

14

Apex Megastore advertised its ‘price guarantee’ widely in the Nottown Daily. This guarantee
stated that Apex was the lowest-priced retailer in the city of Nottown and that it would ensure
this was accurate. The advertisement read: ‘We are so certain that we have the lowest prices in
the area that we guarantee you cannot buy a television anywhere in Nottown cheaper than from
us. We also promise that if you purchase any television from us and notify us in writing that you
could have bought it for less at any other retailer within five miles of our Megastore on the same

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

day, we will refund twice the price difference. Offer valid through the month of December. Any
claim must be submitted in writing within five days of purchase.’

Sandra saw the advertisement and was influenced by it to buy a television from Apex Megastore
for £299. The transaction was completed on Monday, 3 December. On Friday, 7 December,
Sandra discovered that a nearby store was selling the same model of television for £289 and had
been selling it at this price for the past six months. Sandra immediately called Apex Megastore to
state her claim for a refund. She also sent a letter to formally claim her refund. The letter reached
Apex Megastore on Monday, 10 December. Apex Megastore is refusing to refund any part of the
purchase price. Advise Sandra as to whether or not a contract was made.

15

A large electronics retailer advertised its January sale on a local radio station and in a local
newspaper. The advertisement stated that the first customer to enter the store when it opened on
2 January would be able to purchase a new gaming console for just £1. The advertisement
included the specific model of the console that could be bought at this price. Emma decides to try
to be the first in line at the store so she can purchase the console. She arrives at midday on 1
January and camps outside, relieved to find no one else in line. At 7 a.m. on 2 January, the store
manager informs Emma that the offer has been withdrawn. Emma insists on staying. At 8 a.m.,
the manager shows Emma an advertisement in the morning edition of the local newspaper, which
states that the offer has been cancelled. Emma still refuses to leave. When the store opens at 9
a.m., Emma enters and tells the manager she is the first customer and that she will be purchasing
the console for £1. The manager declines, saying the console is only available at its regular price
of £299.99. Advise Emma as to whether or not a contract has been formed.
16
A company that specializes in luxury watches and jewelry hires two independent security guards
to secure the premises each night. Both security guards are self-employed, working under
separate contracts. One evening, one of the guards calls in to inform the company that he will be
unavailable for the remainder of the week due to illness. The company instructs the remaining
guard to work alone for the rest of the week. The guard manages to cover the shifts solo, though
it requires extra effort. At the end of the week, the company informs the guard who worked alone
that he will be compensated with double wages for the additional work. However, the company

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

later reverses its decision and pays him only his usual rate. Advise the security guard on whether
or not he is entitled to the extra payment that was promised.

TORT LAW

1 Ian and John, employees of Oldtown Council, carelessly erect a temporary grandstand
overlooking the finishing line at the council-owned sports arena. The grandstand collapses
during an athletics event, fatally injuring several spectators.

Discuss the civil liability of Ian and John and their employer for the accident.

2 While taking his daughter, Annabelle, to her soccer session, Michael encounters a dangerous
situation. A red Mustang speeds around a curve, driven by Zoe, who is distracted by a
conversation on her phone with her partner. Zoe's car spirals out of control and collides head-on
with Michael's vehicle. In the accident, Michael sustains a severe back injury, and Annabelle
suffers a blow to the head against the windshield. They are both rushed to the emergency room.
Meanwhile, after receiving a distressing call from the police, Michael's spouse, Sarah, hurries to
the hospital. Overwhelmed with anxiety, Sarah becomes distracted while driving and has a
collision, resulting in a broken wrist.

At the hospital, Michael endures a lengthy wait of several hours in the emergency department
before finally being examined by a physician. He is then informed that he will suffer from
permanent paralysis below the waist due to his injuries, which, according to medical data, always
leads to paralysis in such cases.

Annabelle receives prompt treatment for her head wound. However, she complains of leg pain,
which the attending doctor dismisses as a mere bruise. Persisting discomfort leads her to revisit
the hospital days later, where an X-ray reveals a fracture in her knee. Six months after the
incident, her knee remains frail, impairing her ability to walk normally. Doctors tell her that
recovery is improbable. Statistical data indicates that patients with Annabelle’s initial injury have
a 35% likelihood of developing such weakness if not treated immediately, a 25% chance even
with swift treatment, and a 40% probability of full recovery without any residual weakness.

Advise Micheal, Sarah and Annabelle as to any potential claims they may have. You can assume
that Zoe was driving negligently.

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

3 WoodWorks Inc. is a business specializing in wooden fence production. In one of their

facilities, Laura operates a forklift. Due to careless management at WoodWorks, a stack of heavy
wooden panels is left unstable in the storage area. These panels topple over, striking Laura and
her coworker, Marco. Laura escapes physical injury, but Marco is fatally wounded. After the
incident, Laura is diagnosed with post-traumatic stress disorder (PTSD).

Tom, who is just passing by the factory when the accident occurs, witnesses the entire event. He
doesn't know any of the employees, but the sight of the accident deeply affects him, leading to
the development of an anxiety disorder.

Across the street, Marco’s brother, Carlos, works in another company's office. They had a severe
argument a year ago and haven't spoken since. Carlos hears the noise of the collapsing wood and
rushes out, only to find Marco’s body being recovered half an hour later. Subsequently, Carlos is
diagnosed with depression.

Advise Laura, Tom, and Carlos on whether they have grounds to sue WoodWorks Inc. for
negligence.

4 In a recent turn of events, a young man named Jack acquired a brand-new sports vehicle and,
brimming with excitement, decided to test its speed capabilities. While driving at a considerable
90 mph, he suddenly spotted an obstacle on the road and urgently applied the brakes.
Unfortunately, this action led to a loss of control, causing him to collide with the central divider.

An ambulance rushed to the scene and transported Jack to a nearby medical facility called
Hexington Hospital for immediate treatment. Following a critical operation, a healthcare
professional from the hospital failed to provide Jack with adequate rehydration, which further
weakened his condition.

As Jack had an underlying medical condition, a complication arose that required another
significant surgical procedure. Due to his already compromised state, Jack experienced a heart
attack during the recovery process. Although it is uncertain whether the heart attack was directly
caused by the second surgery, it is evident that his weakened state increased the risk of such an
incident.

Advise Jack in determining whether he has grounds for a negligence claim concerning his
injuries.

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

5 One busy afternoon, Paul, a truck driver for Orion Energy Ltd., was navigating his fuel tanker
through heavy traffic. Eager to finish his final delivery and head home, Paul disregarded the
severe weather warnings and the advice against high-sided vehicles using the highway during
such conditions. Despite it being just one exit away, he sped to exit the highway sooner. A strong
wind gust toppled the tanker, leading to a large-scale collision and a devastating fire.

Alan was at home watching the news when the accident was reported. He recognized a car
similar to the one driven by his nephew, Eddie, whom Alan has cared for since childhood.
Panicking after failing to contact Eddie, Alan hurried to the hospital to find him. Two hours after
the accident was broadcast, hospital staff informed Alan that Eddie was among the deceased,
asking him to identify the body. Due to the chaos, Eddie’s body was still in a dire state, which
caused Alan to have a nervous breakdown. Orion Energy Ltd. has accepted responsibility for the
accident towards those it had a duty of care.

Nina, a nurse at the hospital receiving the crash victims, has struggled with work-related stress
previously but was never provided with counseling. On the day of the crash, after working 20
hours due to an earlier emergency, Nina was instructed to continue her shift to assist with the
new influx of patients. Overwhelmed by the grueling hours under such stressful conditions, Nina
eventually collapsed and has since been diagnosed with a stress-induced mental health condition.

Advise both Alan and Nina on the potential for making a claim under these circumstances.

6 In July last year, Alex was driving on the highway, adhering to the speed limit of 70mph. His
partner, Clara, was also in the car, seated in the front passenger seat. Ahead of Alex’s car, Samir
was driving a large truck. Samir became distracted while using his mobile phone and collided
with the central barrier of the highway. His truck spun around, blocking the path of Alex’s car.
Despite braking immediately, Alex crashed into Samir’s truck.

Emma was driving on the same stretch of highway, just behind Alex’s car. She witnessed the
crash and managed to swerve in time to narrowly avoid the other vehicles. Emma was physically
unharmed by the incident.

Ten minutes later, David, Alex’s cousin, drove past the accident scene at a slow speed. David
recognized Alex's distinctive yellow car and saw Alex being treated by paramedics. David was
shocked and distressed, and he has suffered from depression since the incident.

Alex and Clara were taken to the hospital, where it was discovered that Alex had a fractured
skull and Clara had fractured her left ankle. Clara’s leg was placed in a cast, and she was advised
to use a crutch whenever walking. Two weeks later, Clara tried to walk her dog without her

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])

 lOMoARcPSD|60563816

crutch. She stumbled and fell, causing further injury to her ankle, which has worsened her
recovery outlook.

Although Emma was physically unharmed by the incident, she began to suffer from nightmares
and panic attacks soon afterwards. She has been diagnosed with post-traumatic stress disorder
(PTSD).

When clearing the scene, the police found illegal drugs hidden in Alex’s car. Alex has admitted
that the drugs belonged to him, and the police are satisfied that Clara was unaware of their
presence.

Advise Alex and Emma on the potential for making a claim under these circumstances. Hint:
take a look at the principle of “ex turpi causa”.

7
Tom is a young chef who has just opened his own café. One day, he adds chicken curry and rice
to the menu but accidentally cooks twice as much rice as he needs. He decides to save some for
the next day. Most chefs know that cooked rice needs to be refrigerated quickly to avoid food
poisoning. Tom vaguely remembers learning this during his training but thinks it will be fine to
leave the rice out since it’s a cold day. He leaves the rice in the kitchen overnight. The next day,
a customer named Kelly orders some rice and later gets food poisoning.
Since Tom's business is new, he also does catsitting to make extra money. He is currently taking
care of two cats for a man named Mark, who is on holiday. The day Tom hears about Kelly's
food poisoning, he is so upset and worried that he forgets to lock the front door when he leaves
Mark’s house. While Tom is at the café, burglars break into Mark's house. Angry that there’s no
flat-screen TV, stereo, or anything valuable, they smash his collection of antique china.
Advise Kelly and Mark on any claims they may have against Tom.

PARTNERSHIP
1 Firm XYZ has been wound up. The assets of the firm amounted to £100,000. Partner X
contributed capital of £20,000, Y contributed £10,000 and Z contributed £5,000. The three
partners were to share profits equally.
(a) How would the loss of capital be borne if after all outside creditors had been fully paid the
capital had been reduced from £35,000 to £20,000?
(b) What would be the position if outside creditors were owed £210,000?

Downloaded by H??ng Giang Nguy?n (nguyenhuonggiang21227@[Link])