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Chapter

This chapter studies the various forms of business organization that are available to those who trade. It focuses on the types of trading structures available, how they are established, and provides an overview of the implications of each form of business organization. It should be noted that there is no one model that will suit every individual or every business model. It is very much the decision of the individual—having assessed the business, what they wish to do with it, and how they see it continuing in the future—to determine the form of enterprise chosen. Being aware of the consequences for the business organization is crucial in making this decision.

Chapter

This chapter examines the administration of the law under the English legal system. It aims to clarify how, and by whom, the law is administered. It identifies the structure, jurisdiction, and composition of the various courts, and also discusses how the tribunals system fits into the administration of the law. In addition, the chapter looks at less formal approaches to dispute resolution, such as alternative dispute resolution. This chapter describes the duties and responsibilities of the different members of the legal profession including the judiciary, the law officers, barristers, solicitors, legal executives, and paralegals. It also considers the appellate procedure.

Chapter

This chapter identifies agency relationships, their prevalence in business, and how the agency exists to bind the principal in contracts with third parties. It begins by defining agency as the relationship that exists between two persons when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal’s legal position in respect to strangers to the relationship by the making of contracts or the disposition of property. Agencies exist in corporate organizations, sole trader, and partnership trading structures, and the law in this area applies to many relationships and is frequently seen in commercial enterprises, including high street retailers, between partners, and the directors of a corporation.

Book

James Marson and Katy Ferris

Business Law provides an introduction to the subject. Packed with up-to-date and relevant examples, it demonstrates the real applicability of the law to the business world. The book contains a number of parts. After an introduction about studying the law, the first part covers the English legal system, the constitution, EU law, and human rights. This comprises important issues including statutory interpretation and the legislative process, and court structures. The next part considers contractual obligations. Here terms, contractual capacity, mistake, misrepresentation, duress, contractual terms, regulations, and remedies for breach are included. It continues with tortious liability and describes issues of negligence, nuisance, economic loss, psychiatric injury, and statutory duties. This is followed by an examination of company law. The part that comes next is about employment. Finally, intellectual property issues are considered.

Book

James Marson and Katy Ferris

Business Law provides an introduction to the subject. Packed with up-to-date and relevant examples, it demonstrates the real applicability of the law to the business world. The book is split into eight parts. After an introduction about studying the law, Part 2 covers the English legal system, the constitution, EU law, and human rights. This comprises important issues including statutory interpretation and the legislative process, and court structures. Part 3 considers contractual obligations. Here terms such as, contractual capacity, mistake, misrepresentation, duress, contractual terms, regulations, and remedies for breach are discussed. Part 4 discusses tortious liability and describes issues of negligence, nuisance, economic loss, psychiatric injury, and statutory duties. Part 5 examines company law, including trading structures, maintenance of finance and capital, and corporate administration and management. Part 6 explores the employment relationship, the nature of which will determine many important factors for both the individual and the employer. It includes discussions on the Contract of Employment, statutory regulation of dismissals, equality in employment relationships, and Statutory and Common Law Regulation of the Conditions of Employment. Part 6 then discusses agency law and the duties and responsibilities that exist for both principal and agent. Finally, intellectual property and data protection issues are considered in Part 8.

Chapter

This chapter discusses the common types of business organizations and explains the difference between unincorporated and incorporated businesses. The three types of partnership arrangements are considered, namely a general (ordinary) partnership, a limited partnership, and a limited liability partnership. The chapter includes discussion of the rules relating to partnerships under the Partnership Act 1890 and the Limited Liability Partnership Act 2000. It explains how different types of partnerships may be set up and looks at the relationship between partners and the relationship between partnerships and outsiders. It considers the dissolution of the different types of partnerships. The chapter concludes with a discussion of the different types of companies and the separate legal personality of companies.

Chapter

This chapter examines the different types of torts that can affect businesses. A number of these torts (namely product liability, and wrongful interference with goods) aim to protect persons’ usage of goods, whereas other torts (such as nuisance, and the tort in Rylands v Fletcher) are more about protecting persons’ enjoyment of land and property. The tort of occupiers’ liability discusses the duties that are owed by persons who occupy land to those who are present on that land (both lawful visitors and non-lawful visotors). The chapter also discusses the protection of more abstract interests, such as how the law of defamation seeks to protect a person’s reputation. In addition, a number of other torts are discussed, including employers’ liability, and breach of statutory duty.

Chapter

This chapter identifies agency relationships, their prevalence in business, and how the agency exists to bind the principal in contracts with third parties. It begins by defining agency as the relationship that exists between two persons when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal’s legal position in respect to strangers to the relationship by the making of contracts or the disposition of property. Agencies exist in corporate organizations, sole trader, and partnership trading structures, and the law in this area applies to many relationships and is frequently seen in commercial enterprises, including high street retailers, between partners, and the directors of a corporation.

Book

Card & James’ Business Law provides analysis of the English legal system, contract law, the law of torts, company law, and employment law, with online chapters providing further discussion relating to the economic torts, corporate governance, the sale of goods, consumer credit, and the law relating to unfair and illegal commercial practices. All of this is discussed using relevant examples from the business environment, and the key legal cases to help develop a greater understanding of the interconnections between the law and the corporate setting. Part I of the book looks at the English legal system. Part II looks at the law of contract including the formation, terms, exclusion clauses, and remedies. Part III looks at the law of torts in detail. Part IV considers partnership and company law including business structures, the constituents of a company, shares, capital maintenance, shareholders remedies, and corporate rescue. Finally, Part V is about employment law.

Chapter

16. Company Law I  

Formation and Finance

This chapter explains how companies limited by shares are formed and looks at the contents of companies’ constitutions. The discussions cover the role of promoters in setting up a company and the meaning of a company ‘off the shelf’. The chapter examines the steps and documentation necessary to register a new company limited by shares and the rules relating to a company’s name. It discusses the constitutional documents of a company and the rules relating to its constitution. The chapter concludes with a discussion of the financing of companies. It examines the different types of shares and the issuing of shares. It also considers debentures and charges.

Chapter

17. Company Law II  

Company Officers and Liabilities

This chapter discusses the rules relating to the officers of a company. It considers the meaning of ‘director’ and the position of the Board of Directors. It examines the appointment, retirement, and removal of directors and considers the powers of directors and their authority to act on behalf of the company. The chapter examines the general duties of directors, including the codified duties under the Companies Act 2006, and considers the effect of a breach of those duties. The appointment and the role of a company secretary and company auditors are examined. The chapter concludes with a discussion of the meaning of corporate governance.

Chapter

18. Company Law III  

Company Meetings, Shareholder Protection, and Liquidation of Companies

This chapter discusses the different types of company meetings and how meetings are convened and managed. It examines the different types of resolutions that may be made by shareholders both at meetings and outside meetings, and the rights of shareholders to propose their own resolutions. It explains the difference between voting by a show of hands and voting by poll. It considers the protection given by law to minority shareholders. It discusses the meaning of insider dealing and market abuse and the penalties they attract. The chapter concludes with a discussion of methods by which a company can be wound up and the meaning of wrongful and fraudulent trading.

Chapter

This chapter examines the principal constituents who make up and contribute to the success of companies in the UK. The role of the members is discussed, especially their role in corporate decision making. What is a director and the powers of the board of directors are examined, as well as a discussion of the appointment and remuneration of directors. The importance of the company secretary is examined. The chapter than looks at the role of the company’s auditor as well as the liability that can be imposed upon a negligent auditor. Finally, the chapter looks at the position occupied by a company’s creditors and examines how they can protect themselves via taking security, such as a fixed or floating charge over the company’s assets.

Chapter

This chapter examines the issues concerning contracts of employment. It begins by looking at how employment law disputes are resolved, namely by discussing the role of employment tribunals and the Employment Appeal Tribunal, and how they fit into the courts structure discussed in Chapter 2. The chapter than discusses the difference between employees and independent contractors, and looks at the status of several special classes of worker. An examination of the terms of the contract then takes place, including a discussion of express terms, and the terms that are implied that relate to the conduct of the employer and employee.

Chapter

This chapter discusses the contract of employment and its termination. It considers the difference between an employee, an employee shareholder, an independent contractor, and a worker, and the tests used to establish their status. It discusses the types of implied terms contained in a contract of employment. The chapter also considers termination of a contract of employment, examining the difference between unfair, constructive, and wrongful dismissal. It looks at claims for unfair dismissal, considering the potentially fair reasons for dismissal, the band of reasonable responses, the automatically unfair reasons for dismissal, and the remedies available where unfair dismissal has occurred. The chapter concludes with a discussion of redundancy.

Chapter

This chapter discusses how the manner in which a contract is concluded can potentially affect its validity. Before discussing the terms and details of a contract, it is important to note that a contract may fail due to one or both parties not possessing the capacity to establish a contract. Some of the common reasons includes a mistake by one or both parties, a provision that has been misrepresented in the negotiations, or the use of undue influence or placing the other party under duress in the process of concluding the contract. Some of the reasons listed in this chapter may be common, but the emphasis here is to identify where problems may occur that could prevent the successful operation of the contract despite fulfilling the essential features discussed in the previous chapters.

Chapter

This chapter focuses on the terms or details of a contractual agreement, and considers the implications of what the parties intend to include in the agreement, what they did not mean to be included in the contract, and what significance different terms may have in the contract. It distinguishes between the terms of a contract and representations, and considers whether, when a term has been identified as such, it is a ‘condition’ or a ‘warranty’. The chapter then studies how terms are implied into the contract and how this affects terms that have been expressed. It concludes by examining how parties may seek to exclude or limit a legal responsibility through the incorporation of an exclusion clause.

Chapter

This chapter identifies the administrative requirements of a company, from the regulation of the company’s meetings, and the interaction of the members with the company, and how the various resolutions may be moved. These requirements are due to the regulation that is placed on companies through legislation, including the Companies Act (CA) 2006. It is necessary for companies to register with Companies House in order to obtain a trading certificate, regulation exists with regard to the activities of a company’s directors, members of the company have the right to participate in meetings and vote on resolutions that are to be moved, procedures must be followed when moving resolutions, and board meetings have to be conducted in accordance with rules and procedures required by statute.

Chapter

This chapter considers corporate management and focuses on the regulation of those who govern the company, and the protection of the shareholders, who have no automatic right of management. The actual ‘running’ of the company is left to the directors, a relatively small number of persons who may take individual responsibility for aspects of the company’s business or may oversee the company as a whole. Directors have significant powers when acting for the company, and whilst a corporation possesses its own separate legal personality, independent of those who manage it, the actions of the company are performed, under authority provided by statute and the company’s constitution, by its directors. The chapter identifies the appointment of directors and their duties as codified from the common law into the Companies Act (CA) 2006, and the provisions for removing a director.

Chapter

This chapter examines the different procedures available to companies that are experiencing financial difficulties. The chapter begins by examining what is a rescue culture, and the extent to which such a culture is present in the UK. The chapter then discusses a series of mechanisms that are designed to rescue a struggling company, namely administration and company voluntary arrangements. Receivership is then discussed, which is not a rescue procedure, but a mechanism designed to allow a creditor to recover monies owed. The chapter then looks at winding up (or liquidation) which is the process whereby the assets of the company are realized and paid out, prior to the company being dissolved. The chapter ends by looking at the rules relating to dissolution and restoration.