BUSINESS LAW TAKE HOME EXAM
FINAL YEARAcademic Year 2021/2022
Module: Module Code:Instructions to Candidates
This Take Home Exam replaces an invigilated supervised exam for this module to provide a safe and fair way of assessing your work during the restrictions that have been put in place because of COVID-19.
You must answer any 2 questions. It is up to you which 2 questions you answer. Do not answer all the questions.Word count
Compared to an invigilated supervised exam you have a longer period of time to complete the Take Home Exam. Therefore, there is a maximum word limit for each question that you answer. For this Take Home Exam, the word limit for each question is 2,000 words – 4,000 in total.You are required to submit your 2 answers together as one document by submitting it to the Take Home Exam submission point in the Assessment section of the Business Law module site on Moodle. Your work must be submitted as one Word document (.doc/docx). No other format is accepted.
Your work must be submitted using Arial font side 11 (or larger if you need to), with a minimum of 1.5 line spacing.
You must insert your student number, but your name must NOT appear on the Take Home Exam.Important Notes
You should set out the names of cases, statute law, regulations and other sources upon which you rely.
You are required to use footnotes or a bibliography.In submitting your Take Home Exam, you undertake that the word submitted is your own and that it complies with Plagiarism Guidance.
You should not share your work with others or use other’s work without referencing it appropriately.Question 5 – Insurance (PROBLEM QUESTION)
Please answer all parts of the question.
In 2021,Ivan and Lex decided to set up a new business called ‘LobbyingforU’.Ivan and Lex decided to take out an insurance policy with the Manchester Insurance Company (‘MIC’). MIC asks Ivan and Lex to fill out a risk assessment form. One of the questions on the risk assessment form asks whether Ivan and Lex have faced any claims in respect of businesses they have run.
Ivan decides not to mention the claims previously made against him for inappropriate lobbying when he ran ‘Panama Finance’. Ivan does not mention these claims as he is worried that it will increase the insurance premium. Ivan and Lex send off the form and pay the premium of £100 after receiving an invoice from MIC.
The following week Ivan and Lex face a claim from a Government Regulator for lobbying in breach of Government rules.
Advise Ivan and Lex of what their obligations were to disclose risks under the Insurance Act 2015 (the ‘Act’) and what impact their failure to comply with the requirements of the Act will have on their ability to claim under the policy with MIC.
The following week,Ivan and Lex are invited to work for Vladimir on al obbying project in Germany. Ivan and Lex decide to take out an insurance project in respect of this project. When they are filling in the risk assessment form in respect of the lobbying project, they are asked to confirm if there are any particular risks related to this lobbying project. Ivan decides to do some due diligence, so he telephones his friend Angela Merkel. Ivan asks if there are any risks, and Angela replies ‘Nine’! Ivan did A’ level German at school and thinks that Angela is answering ‘Nein’ (meaning ‘No risks’) in German whereas in fact Angela means that there are Nine risks. So Ivan and Lex fill in the risk assessment form and state that there are no risks. When Ivan and Lex engage in their German lobbying project, it turns out that they breach Nine rules in Germany and they face a claim in this regard by the German Anti- Corruption Commission.
Advise Ivan and Lex of the position in respect of the insurance policy with MIC and whether MIC will be liable to compensate them in respect of the claim made against them by the German Anti-Corruption Commission.
C) Under the terms of the general insurance policy to cover the premises from which Ivan and Lex operate, they are required to arrange a building survey every month. Ivan arranges this for each of the first twelve months and then forgets and no further surveys are arranged after that. Halfway through the second year, the office is destroyed by a lightning strike.
Advise Ivan and Lex of the effect that this omission to conduct building surveys has on his ability to claim under the insurance policy.Question 6 – Business Organisations (PROBLEM QUESTION)
Please answer all parts of the question.
In February 2019, Juanita opened a burger restaurant in Dover. The restaurant was small and operated from 1 Sea Street. Juanita operated under the name ‘Juanita’s burgers’.
In March 2020, Zakaria started working with Juanita at ‘Juanita’s burgers’ and he invested money in the business and started taking business decisions. Zakaria and Juanita worked together for profit. In addition, in March 2020, Zakaria signed the leases for 3 new burger restaurants.
In April 2020, COVID-19 had a very negative impact on ‘Juanita’s burgers’ and the business incurred debts of £200,000 in respect of the leases for the 3 new burger restaurants. Zakaria left the business soon afterwards without paying any of the debts.
Since April 2021, Juanita has operated on her own again.
In January 2022, Juanita approaches you for advice as she would like to set up a new fast food business with Sharon. Juanita is keen to limit her liability, but she also wants to obtain new finance to use to develop the business. Juanita is keen to avoid outside interference in the day to day operations of his business.
Juanita approaches you for advice and in particular, Juanita would like your advice in respect of the following matters:
-formation and liability;
-the ownership and control;
-the accountability and regulation of each of the following modes of his business:In February 2019 when she was working alone?
In March 2020 when Zakaria invested in the business? Within your answer, please advise whether Juanita is liable for the losses in April 2020 that result from Zakaria’s decision to take on leases for 3 new burger restaurants.
In January 2022 when Juanita wants to set up a business with Sharon, what form of business organisation would you recommend that Juanita should adopt?
