1 London School of Business & Management BTEC Levels 4 & 5 HND Business Unit Outcomes Covered: LO1 Understand the essential elements of a valid contract in a business context LO2 Be able to apply the elements of a contract in business situations LO3 Understand principles of liability in negligence in business activities LO4 Be able to apply the principles of liability in negligence in business situations. GRADING OPPORTUNITIES AVAILABLE Outcomes/ Grade Descriptors AC1.1 AC1.2 AC1.3 AC2.1 AC2.2 AC2.3 AC3.1 AC3.2 AC3.3 AC 4.1 AC4.2 √ √ √ √ √ √ √ √ √ √ Outcomes/ Grade Descriptors M1 M2 M3 D1 D2 D3 √ √ √ √ √ √ Centre No 79829 Course Title Unit 5 - Aspects of Contract and Negligence for Business Unit No & Unit Title HND Business Assessor’s Name Nooreen Jafferkhan Assignment Title & Type ACNB Individual Assignment Date Set 17th January 2017 Due Date 10th April 2017 Academic Year / Semester January 2017 Semester2 Tutor Notes Key Points:  You should answer ALL questions in this assignment.  Your assignment should be handed in by the deadline.  The assignment must be your own work and original in all answers to the tasks.  You are expected to apply Harvard referencing system to acknowledge any secondary sources of information used to support your work in the assignment.  You will be expected to check spelling mistakes and grammar before submitting your work.  The London School of Business and Management Cover sheet should be used in every submitted work.  An appropriate report structure should be used with headings that include: Table of Contents, Introduction, Discussion/Evaluation, Conclusions, References and Appendices (if necessary).  There should be clarity of expression in your work.  Your work should demonstrate, for example, relevant factual content and understanding of the subject, critical analysis, evaluation, justifications, key arguments, correct use of appropriate models/framework etc. Submission Regulations 1. “Assignment Front Cover Sheet” must accompany every submitted work [Cover sheet is available from our Virtual Learning Environment - Moodle]. 2. Assignments must be submitted on or before the due date, via Turnitin. Please refer to Moodle for detailed assignment submission instructions.3 Task 1: LO1: Understand the essential elements of a valid contract in a business context 1. What are the essential elements for the formation of a valid contract? Please refer to the scenario below to answer the question. Facts: Freddy advertised on an ecommerce website the sale of a high definition TV for £145. Layla responded to the advertisement via e-mail stating that she was willing to buy the TV £125. Freddy replied that he would only accept the original price. Layla did not respond. Freddy did not have any other offers so he wrote again to Layla and stated that he was accepting her offer of £125. (covers AC 1.1) 2. Identify and explain the main types of contracts that may be entered in the UK by individuals and businesses. Provide examples. (covers AC 1.2) 3. Explain the different terms that can be included in a valid contract. Your answer should include an explanation of express terms, implied terms, innominate terms, conditions and warranties. (covers AC 1.3) This task covers assessment criteria 1.1, 1.2 and 1.34 Task 2: LO2: Be able to apply the elements of a contract in business situations 1. Please read the scenario below and draft a simple contact for the purchase of the product advertised by Bella UK. Your contract should include at least one express term, one implied term and one exclusion clause. (covers AC 2.1 & 2.2) Facts: Bella UK is a fictitious company that produces various beauty products. Recently Bella UK produced a new shampoo called “Miracle Oil” that claims rapid hair growth. To promote the “Miracle Oil” shampoo Bella UK send out flyers advertising its product and offering it at a special price. The flyer stated: “Miracle Oil, for a limited time only half price! Buy ten boxes for the price of 5. Guaranteed results*. To order see details on our website www.miracleoilinstantgrowth.net” *The seller accepts no responsibility for any adverse results, the product has 20% success. “Hair 4 U” is a fictitious small local business that saw the advertisement and decided to take advantage of the offer. “Hair 4 U” placed an order for 10 boxes of “Miracle Oil”. 2. Write a report to Mr. Michael Hair, the owner of “Hair UK” explaining the following: (covers AC 2.3) a) breach of a condition and; b) legality of the exemption clause This task covers assessment criteria 2.1, 2.2 and 2.35 Task 3: LO3: Understand principles of liability in negligence in business activities 1. Explain the differences between contract and tort liability (covers AC 3.1) 2. Discuss the development of the concept of “duty of care” and the neighbour principle in the Tort of Negligence with particular reference to the case of Donoghue v Stevenson (covers AC 3.2) 3. Facts: Bob a local milkman contrary to express prohibition from his employers Norfolk farms hired Matt, a 13 year old boy to help him with the delivery of milk on Wednesdays. Bob told Matt that he was not supposed to hire him and they should keep it between themselves. On Wednesday morning, as Matt was helping Bob to deliver milk, Bob reversed the van and accidentally injured Matt. Please answer the following: a) Can Matt sue Bob? b) Can Norfolk farms be held vicariously liable in this situation? In your answer you should include an explanation of how a business can be held vicariously liable for the wrongs committed by their employees. (covers AC 3.3) This task covers assessment criteria 3.1, 3.2. and 3.36 Task 4: LO4: Be able to apply the principles of liability in negligence in business situations 1. Facts: Albert has decided to rent a flat from Brad. He fills out an application form giving his accountant’s details Charles D Lois to be his referee. Brad requests from Charles information about Albert’s financial situation. Charles, the accountant confuses Albert with another client and does not bother to check the file properly. He replies to Brad that Albert is an excellent client with high income and savings and recommends him as a tenant. In fact, had he looked at the correct file, he would have seen that Albert was continuously in overdraft and has been in serious debt with various banks on and off for many years. Some months later, Albert disappears having taken the flat on and run up several thousand pounds’ worth of rent arrears. Draft a short letter to advise Brad as to whether he can recover his losses from Charles. (covers AC4.1) 2. Read the following scenarios and answer the questions: (covers AC 4.2) a) Graham is employed as a doorman by Macho Men plc, a company that owns a chain of night clubs throughout the UK. Whilst working at one of the clubs he is alerted of a drunken customer who has been arguing with the barman and has been throwing items causing damage to the club’s property. Graham ejects the customer, but in doing so he breaks the customer’s arm. Is Macho Men plc liable for the actions of Graham? Would your answer be different had Graham been expressly prohibited by the company from manhandling troublesome customers? b) Carla works as a courier for Links Ltd. On her day off she uses the company van to take her friend Lucy to the railway station. On her way back she decided to deliver some parcels, even though it was not a working day for her. After making her first delivery, she negligently crashes into a car driven by George. Is Carla liable for the damage caused to George’s car? Can Links Ltd be held vicariously liable? This task covers assessment criteria 4.1 and 4.27 Grading Criteria (Pass, Merit, Distinction) Criteria for PASS Possible evidence LO1 Understand the essential elements of a valid contract in a business context AC1.1 explain the importance of the essential elements required for the formation of a valid contract AC1.2 discuss the impact of different types of contract AC1.3 analyse terms in contracts with reference to their meaning and effect LO2 Be able to apply the elements of a contract in business situations AC2.1 apply the elements of contract in given business scenarios AC2.2 apply the law on terms in different contracts AC2.3 evaluate the effect of different terms in given contracts LO3 Understand principles of liability in negligence in business activities AC3.1 contrast liability in tort with contractual liability AC3.2 explain the nature of liability in negligence AC3.3 explain how a business can be vicariously liable LO4 Be able to apply principles of liability in negligence in business situations AC4.1 apply the elements of the tort of negligence and defences in different business situations AC4.2 apply the elements of vicarious liability in given business situations.8 Grade Descriptors for MERIT Possible Evidence M1 Identify and apply strategies to find appropriate solutions M1 – Effective judgements have been made (AC4.1 & AC4.2) M2 Select / design appropriate methods / Techniques M2 - Relevant theories and techniques have been applied (AC2.3 & AC3.3) Harvard referencing format has been correctly applied in both citations and the reference list M3 Present and communicate appropriate findings M3 - An appropriate structure and approach has been used in producing the required work. Appropriate technical language has also been accurately used in the report. (AC2.1 & AC2.2) Grade Descriptors for DISTINCTION Possible Evidence D1 Use critical reflection to evaluate own work and justify valid conclusions D1 - Conclusions have been arrived at through synthesis of ideas, and have been justified. (AC3.2 & AC2.3) D2 Take responsibility for managing and organising activities D2 - Independence has been demonstrated in managing the activities and producing the required work (All activities) Harvard referencing format has been accurately applied in both citations and the reference list (Throughout the work produced) D3 Demonstrate convergent/lateral/ creative thinking D3 - Problems have been solved demonstrating creative thinking and application of key concepts in the analysis to illustrate the points made (AC4.2). .