~/j?/t~ · unit title: aspects of contract and negligence for business school...

/Unit Title: Aspects of Contract and Negligence for Business

LondonScheel of Business II

8: FinanceEdexcel Assessment Brief Front Sheet

Assessor Name: Eric Agyemang Internal Verifier Name:

Date Issued: 28/11/2013 Hand in Date: ~/J?/t~Qualification:

BTEC Higher National Diploma in Business

Unit Title: Aspects of Contract and Negligence for Business

Rules and regulations:

Plagiarism is presenting somebody else's work as your own. It includes: copyinginformation directly from the Web or books without referencing the material;submitting joint coursework as an individual effort; copying another student'scoursework; stealing coursework from another student and submitting it as your ownwork. Suspected plagiarism will be investigated and if found to have occurred will bedealt with according to the procedures set down by LSBF. Please see your studenthandbook for further details of what is 1 isn't plagiarism.

Assignment Regulations

1 Learners are required to submit their work using the LSBFAssessment cover sheet.

2 You are required to submit your assignment electronically to yourExamination Officer [email protected].

3 If you need an extension (even for one day) for a valid reason, you mustrequest one, using a reasonable adjustment form available from theAcademic Admin Office. Do not ask the lecturers responsible for thecourse > they are not authorised to award an extension. The completedform must be accompanied by evidence such as a medical certificate in theevent of you being sick.

4 General guidelines for submission of assignment:a) All work must be word-processed and must be of "good" standard.b) Document margins shall not be more than 2.5cm or less than 1.5cmc) Font size in the range of 11 to 14 points distributed to including

headings and body text. Preferred typeface to be of a common standardsuch as Arial or Times New Roman for the main text.

d) Any computer files generated such as program code (software), graphicfiles that form part of the course work must be submitted either online orwith the documentation.

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mailto:[email protected].

Unit Title: Aspects of Contract and Negligence for Business ~~

London ~~School of Business ;- ";c

& Finance

Learning outcomes and assessment requirements

Outcomes . Assessment requirements

On successful completion To achieve each outcome a learner mustof this unit a learner demonstrate the ability to:will:

L011.1 explain the importance of the essential elements

Understand the essential required for the formation of a valid contractelements of a valid contractin a business context 1.2 discuss the impact of different types of contract

1.3 analyse terms in contracts with reference to theirmeaning and effect

L022.1 apply the elements of contract in given business

Be able to apply the Scenarioselements of a contract inbusiness situations 2.2 apply the law on terms in different contracts

2.3 evaluate the effect of different terms in givencontracts

L033.1 contrast liability in tort with contractual liability

Understand principles ofliability in negligence in 3.2 explain the nature of liability in negligencebusiness activities

3.3 explain how a business can be vicariously liableL04

4.1 apply the elements of the tort of negligence andBe able to apply principles defences in different business situationsof liability in negligence inbusiness situations 4.2 apply the elements of vicarious liability in given

business situationsI

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\Unit Title: Aspects of Contract and Negligence for Business

School of BLo~don ~& usmess~.zJIFinance

Unit Title: Aspects of Contract Negligence for Business

There are two tasks in this assignment.

Within task one there are four questions on a single case study.Within task two there are three tasks each with a separate scenario/case study.

The first two learning outcomes are covered in task one and the second twolearning outcomes are covered in task two.

1. Understand the essential elements of a valid contract in a business context

(AO 1.1,1.2& 1.3)

2. Be able to apply the elements of a contract in business situations

(AO 2.1, 2.2& 2.3)

3. Understand principles of liability in negligence in business activities

(AO 3.1, 3.2 & 3.3)

4. Be able to apply principles of liability in negligence in business situations

(AO 4.1, 4.2)


Assessment Criteria

1.

Pass criteria (P1) Merit Criteria (M1) Distinction Criteria (01)

1.1 explain the importance Demonstrate an Demonstrate a criticalof the essential elements understanding of understanding ofrequired for the formation appropriate case law and contact lawof a valid contract statute

1.2 discuss the impact of Analyse the impact ofCritically analyse therole of contract law

different types of contract contracts on standardpractice

1.3 analyse terms incontracts with reference toheir meaning and effect

2.

Pass Criteria (P2) Merit Criteria (M2) Distinction criteria (02)

2.1 apply the elements of Apply judicial precedent Critically review thecontract in given business appropriately in given applicability of law inscenarios business scenarios given business scenarios

2.2 apply the law on terms Demonstrate a coherent Demonstrate creativein different contracts legal argument ~hinking in application of

legislature

2.3 evaluate the effect ofdifferent terms in givencontracts

3.

d N ligence for Business ~Unit Title: Aspectsof Contractan eg London ~

. ~ ..School of Business i .~

& Finance

Pass criteria (P3) Merit Criteria (M3) Distinction criteria

3.1 contrast liability in tort Demonstrate an Demonstrate a criticalwith contractual liability understanding of understanding of liability

appropriate case law and and negligence3.2 explain the nature of statuteliability in negligence Critically analyse the

~nalyse the impact of role of liability and3.3 explain how a liability and negligence on negligencebusiness can be standard practicevicariously liable

,--- _ .. - -- - -- L__ ___ _ --- - -

4.

1

4.1 apply the elements ofthe tort of negligence andidefences in differentbusiness situations

iApply judicial precedentappropriately in givenbusiness scenarios

Pass criteria (P4) I Merit Criteria (M4) Distinction Criteria (04)

14.2 apply the elements ofvicarious liability in givenbusinesssituations.

Demonstrate a coherentlegal argument

Critically review theapplicability of law ingiven business scenarios

Demonstrate creative~hinking in application oflegislature


School of B~~rn~~~& Finance

TASK 1: Elements of a contract

CASE STUDY

WOOHOO WHOLESALEWoohoo Wholesale sells office supplies to retailers and required new point of salecomputers and software to improve stock management and improve its service toits customers.

It approached a number of information technology (IT) companies to provide thecomputers. After evaluating several key suppliers, Provident Solutions (PS)appeared to offer the best solution. Woohoo Wholesale then continued more

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detailed discussions with PS.

PS supplied a number of quotations, its final one (quotation NUMBER 421)included a full description of the project, standard terms and conditions, timescales,pricing and payment schedules:

Woohoo responded with the following:

We are generally happy with your final quotation NUMBER 421 subject to a fewconditions:

1. The total price of £1.3m and the payment schedule are agreed.2. This is subject to a formal contract being agreed in the near future.3. The contract is not effective until both parties have signed the formal

contract.4. We agree to reimburse all legitimate expenses if a formal contract

cannot be agreed.

In response, PS sent an email confirming acceptance of the main contents of theletter but the email also said:

'Should a formal contract not be agreed, we reserve the right to claim notonly our legitimate expenses but also to claim a reasonable amount of theprofit we would have made had the contract been finalised. '

Work commenced and a draft final contract was prepared by Woohoo but neversigned. Both parties continued to work on the contract and Woohoo made the earlystage payments. '

Software Sub-contract

PS operated as the main contractor but needed to sub-contract some of thesoftware work to Clive Software Ltd. Clive had been recommended by Woohoobecause it had previously worked on Woohoo's software systems and usuallyworked to a high standard. There were few issues to date with the software thatClive had previously installed.

From the outset, Clive had trouble making the new software compatible with theold software. The new software was creating problems for the existing systems.Clive constantly needed to review and update the new software. The compatibility

Explain the contents of the standard form business contracts ana advise on therelative importance of express terms, implied terms and exclusion clauses'


problem between the old and the new software inevitably led to delays to the wholeproject.

Once the software had been installed, it continued to suffer from major problems.Some of these problems led to the system crashing and some loss of data.Woohoo finally lost faith with the software and decided to engage anothercontractor to solve the software issues.

This new contractor managed to retrieve the lost data and ensure the compatibilityof the software.

---- The contract between PS and Clive contained the following clause:'No other party other than PS and Clive has any right under the Contracts(Rights of Third Parties) Act 1999 to enforce any term of these Terms andConditions. '

Woohoo, having paid a considerable sum of money to fix the software faults iskeen to recover the money. It is not sure whether to claim from PS as the maincontractor or Clive as the sub-contractor.

As part of the dispute with PS, Woohoo is refusing to pay for some of thecomputers supplied by PS. The current situation of equipment recently purchasedfrom PS is as follows:

1. Five servers purchased have been paid for.2. 18 computers purchased have been paid for.3. 40 computers purchased have not been paid for.

Woohoo insists on keeping hold of all the above until it is fully compensated. PSclaims that it is entitled to recover the five servers and all 58 computers.

QUESTION 1 (500 words)

Using appropriate case law identify whether all the essential elements of a contractare in place between Woohoo and PS.

QUESTION 2 (approx 400 words)


Explain how different types of contract are entered into and their relative legality


Explain the distinction between conditions, warranty and in nominate terms in acontract clearly identifying the remedies that are available in case of a breach.

rrufTitle: Aspects of Contract and Negligence for Business

TASK 2: Liability and Negligence


You have been invited by the chamber of commerce to deliver a workshop to 12small business owners to explain how their liability differs under tort and contract.

Create an information leaflet for the delegates to take away with them thatidentifies the key areas of liability under tort, liability under contract and thedifferences between the two.


TROUBLE AT WORK

John Rodgers works for ABC Construction Ltd and has been there for three years.Tony Smith is the site foreman and is responsible for the construction site in whichJohn and 7 other colleagues work. For many weeks John has been subject tobullying from Nathan Parker, one of his co-workers. Tony Smith is aware that thebullying is taking place but does not take any action against Nathan. Onelunchtime, John Rodgers drank some paint thinner in an attempt to kill himself. BobJones found John Rodgers and suffered a mild heart attack at the sight of Johnwith blood coming from his mouth and nose. Tony Smith immediately rings for anambulance. After a total of 45 minutes the ambulance arrived from a neighboringtown due to the demand, the normal response time would be ten to fifteen minutes.By the time the ambulance gets there John Rodgers is dead. Bob Jones wastreated on site then rushed to hospital and made a full recovery. It was determinedby the coroner that if the ambulance had of arrived after 20 minutes, as per theguided response time, John Rodgers would have had a 50/50 chance of survival.Bob Jones is now on heart medication and suffers from depression.

A legal advisor, inform the parties in this case of what legal options may beavailable to them.


A ROAD TOO FAR

Peter Mathews was an engineer for Top Tooling Pic with a van which was for workuse only. His job was to respond to call outs from Sideline (automation) Ltd whohad offices in Manchester, Leeds, Rotherham, Sheffield and Nottingham when theyhad problems with their machinery. On Wednesday the 2nd January 2013 he wascalled to the Manchester facility as they had a fault with the production machinery.He managed to fit the fault in less than an hour. While he was fixing the machinethe climate control system provided by Frozone Pic failed, this meant that thecompany stood to lose approximately £100,000 in chemicals that had to be kept ata regulated temperature. Pardeep Singh, the production manager called themaintenance number for the climate control unit, Frozone informed him that theycould not get there for 24 hours and that this was in line with their service

Explain how companies can be vicariously liable and advise the pedestrian,Sideline (automation) Ltd and Frozone if they have a claim against Top Tooling Picfor Vicarious Liability.

Unit Title: Aspects of Contract and Negligence for Business~~London ~~

School of Business <[i.;~~& Finance

agreement. Not wanting to lose £100,000 of stock, Pardeep asked Peter if hewould have a look at the unit. Peter called his boss, Jenny, who said that it wasfine. Peter fixed the unit. To say thank you for the extra work, Pardeep invitedPeter to the Liverpool FC home game that evening in their corporate box. Peteraccepted. On the way driving back from the game Peter was involved in anaccident where his van struck a pedestrian. Peter got out of the car and rang anambulance immediately. No sooner had the ambulance left and his phone wentagain. It was Pardeep. 'What did you do to my climate control unit', he shouted. 'Ithas just froze all of our stock and the maintenance company won't go near it asthey claim you invalidated the warranty'. 'You will pay for this', said Pardeep as hehang up.

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