LPC: BUSINESS LAW AND PRACTICE PRE-MODULE READING LAW SCHOOL 5/25/2016 1:32:00 PM Page 1 of 127 Contents Page Introduction 3 An introduction to this text 3 Section 1 - Considerations when Starting a Business 7 1. Why businesses are set up 8 2. Finance 8 3. Business media overview 9 4. Factors influencing the choice of business medium 17 5. Commercial risk 19 6. Multiple Choice Questions 21 Section 2 - Introduction to Company Law 23 1. Ownership 24 2. Management of companies 29 3. Constitution of a private company limited by shares 30 4. Formation of a company 33 5. Private, public and listed companies 37 6. Articles of association 40 7. Officers of a company 45 8. Duties of directors 56 9. Board and shareholder resolutions 66 10. Company procedure 73 11. Summary of main points in relation to meetings 83 12. Why is it important to follow the correct procedures? 83 13. Multiple Choice Questions 85 LPC: BUSINESS LAW AND PRACTICE PRE-MODULE READING LAW SCHOOL 5/25/2016 1:32:00 PM Page 2 of 127 Section 3 - Contract Law 89 1. Introduction: Contract law in context 90 2. Key elements for formation of a contract 91 3. Terms of a contract: express and implied 98 4. Misrepresentation 99 5. How a contract comes to an end 99 6. Remedies available to contracting parties 102 7. Principal / agent relationship 105 8. Commercial contracts - specific issues 106 9. Limitation of actions and execution of agreements 111 10. Further reading 113 11. Multiple Choice Questions 114 Solutions to Self-Assessment Exercises and Multiple Choice Questions 117 LPC: BUSINESS LAW AND PRACTICE PRE-MODULE READING LAW SCHOOL 5/25/2016 1:32:00 PM Page 3 of 127 INTRODUCTION Please read this. It will help. It puts what is to come into perspective. The areas covered by this workbook are as follows: Section 1: Considerations when Starting a Business Section 2: Introduction to Company Law Section 3: Contract Law These areas form the foundation required for studying Business Law & Practice (‘BLP’) in the Compulsory Modules. It should take you around 12 hours to complete the reading and exercises contained in this workbook. You are required to have completed the reading and exercises contained in this workbook prior to enrolling on the LPC. There is a Solutions Section at the end of this workbook which contains solutions to the exercises. You will be required to take a BLP Pre-Module Reading test in the early weeks of the programme. The test will take the form of multiple choice questions and will have a pass mark of 50%. You will be given further information about completion of this test upon your enrolment. You will be referring back to this workbook throughout your study of BLP, and much of its contents will be examinable for the purposes of the final assessment.