I’m working on a business law question and need guidance to help me study.ACFI211 Business law: Past questions
1.Daniel is an architect and is self-employed. He has recently undertaken a project for a local company called Build Up Ltd which will last for 9 months. Daniel will invoice Build Up Ltd each month for £8,000 and this will be paid without the deduction of tax or national insurance.
Daniel has been told he will have to work from the Build Up Ltd offices from 9-5pm on four days of the week, and can work from home on the fifth day but must be available by telephone. Build Up Ltd have requested that Daniel do all his work on their computer equipment throughout the nine-month project.RequiredIn the context of employment law, discuss if Daniel would be considered employed or self-employed for the purposes of this project, and why this distinction is important.
2.John regularly took his car to be serviced at his local garage, Fix It Ltd. On five previous occasions before handing his car over to the garage, John had been asked to read and sign a contractual looking document which contained a statement in bold red type which said: ‘Fix It Ltd accepts no responsibility for any consequential loss or injury sustained as a result of any work carried out by the company, whether as a result of negligence or otherwise.’On the most recent occasion, because the garage was very busy when he arrived, and was short-staffed, John was not given the document to read and sign. He was however given a short receipt for his car which he did not read. Fix It Ltd’s usual business terms were printed on the back of the receipt, including the statement above concerning liability.
When he picked up his car at the end of the day, after it had been serviced, John noticed a small dent in the passenger door that he was sure was not there when he had left the car at the garage that morning. He intended to ask his wife about it when he got home, and would then take it up with Fix It Ltd the next day if the damage had been done while the car was in the garage. In any event, while he was driving home from the garage, John was severely injured when his car suddenly burst into flames.
It transpired that the fire was due to the negligent work of one of the mechanics at Fix It Ltd. Fix It Ltd has accepted that the mechanic was negligent, but denies liability for John’s injuries, relying on the exclusion clause above.Advise Fix It Ltd as to their liability to John in the event he makes a claim against them.3.Melvin, a keen art collector, saw a notice for an auction of some paintings in a magazine.Melvin travelled 300 kilometres to attend the auction in order to bid for a painting by a well-known artist which had been mentioned in the magazine.However, when Melvin got to the auction site there was a notice stating that “due to unforeseen circumstances, the auction had been cancelled”.
Melvin then went into a nearby antique shop and saw a painting for sale. The price ticket stated that it was £600, but Melvin said he was only willing to pay £450 for it. The shopkeeper, Gary, said he would sell it for £500. Melvin replied that he did not want to commit to buying the painting immediately and would need some time to think about it.
Gary said he would not sell the painting to anyone else in the meantime until he had heard back from Melvin. Melvin decided that he would like to buy the painting but when he went back to the shop to tell Gary, he found that it had been sold to someone else.In the context of contract law, advise Melvin whether he can take action against:the auctioneers
Gary, for not selling the painting to him.
4.Fizz A Lot Ltd manufactures carbonated fruit drinks which it sells to cafes and restaurants. Essy’s Café is one of its customers and Fizz A Lot sends a consignment of drinks to Essy’s each week.One week, the delivery van in which the soft drinks were being transported suffered an electrical fault which meant the chilled refrigeration unit in which the drinks were being stored failed. The driver was not aware of this, and on that particular week it took him 13 hours to drive up to Essy’s due to an accident on the motorway.
The drinks which Fizz A Lot manufacture contain fresh fruit with a very short shelf life. All drinks must be consumed within one hour of being taken out of the fridge or the fruit turns sour.Two friends, Alison and Berenice visit Essy’s café. Berenice buys two Fizz A Lot drinks for herself and Alison. Immediately, they find that the drinks have gone off. Alison is violently sick over Berenice’s new Jimmy Choo designer shoes which she paid £300 for. They are ruined.Alison and Berenice complain to the manager of the café and ask for some money to compensate them for the loss of Berenice’s shoes. She thinks they are unwearable.Advise Alison and Berenice on whether they can make any legal claim and any remedies available to them.5.Aaron is the managing director and majority shareholder in Barton plc, a construction company. He is also a shareholder in Clash Ltd, a company that supplies materials to construction companies.
Clash Ltd was successful in winning a contract to supply materials for some subcontractors which Barton plc were using on a project. Aaron attended Barton plc’s board meeting when the contract was approved but did not disclose he was a shareholder in Clash Ltd.
Required:Explain the role and status of a managing director in a limited company
Explain what is meant by a director’s duty of care and skill
Advise both Aaron and Barton plc as to their legal situation and explain if there has been a breach of director’s duties
Requirements: 2000
