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Explain the nature of the legal system

Unit 7:    Business Law


Unit code    H/617/0736
Unit level    4
Credit value    15


Introduction
The aim of this unit is to enhance students’ understanding of how business law is applied to the running of a business organisation. 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 different areas of law that apply. 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.
This is a prerequisite unit for those students studying the Law pathway.
 
Learning Outcomes
By the end of this unit a student will be able to:
Explain the nature of the legal system.
Illustrate the potential impact of the law on a business.
Examine the formation of different types of business organisations.
Recommend appropriate legal solutions to resolve areas of dispute.
 
Essential Content

LO1 Explain the 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 e.g. legislation, directives, case law and treaties relevant to country.
Divisions and key terminology of the legal system e.g. court structures. The differences between civil and criminal law.
The justice system:
The role of government in law-making and the justice system. Organisation of the judiciary.

LO2 Illustrate the potential impact of the law on a business

The impact of Law:
Contract law e.g. the formation of contracts, the elements and terms of contract Competition Law
Data protection
The tort of negligence, consumer protection, health and safety and product liability
Duties of employer and employee e.g. the employment contract, employer obligations and employee rights in the work place.
Managing cases of dismissal, redundancy, discrimination, health and safety.
 
LO3 Examine the formation of different types of business organisations

The nature and formation of a company:

Unincorporated V’s incorporated legal structures
Different types of business organisations and legal structures e.g. Sole trader, partnership and registered company
Classification of companies e.g. public and private companies, limited and unlimited
Starting up a business organisation and registration requirements
The management of a company e.g. appointment of directors, company secretary, auditor. The role of the shareholders.
The application of company law in forming different types of business organisations and companies, raising capital and liquidation.

LO4 Recommend appropriate legal solutions to resolve areas of dispute

Legal solutions for different types of dispute resolution:
Areas of employment e.g. health and safety, equality of pay claims, compromise and severance agreements, wrongful or unfair dismissal claims.
Corporate and commercial disputes e.g. breach of contract, contesting a damages claim, dispute between directors.
Commercial property e.g. commercial lease transactions, real estate and investment properties.

Alternative Dispute Resolution:
The role of Alternative Dispute Resolution (ADR) Civil litigation procedures and funding Tribunals
The role of unions Citizens Advice.


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