Topic: Business Finance
1.1 Considering the legal system in England, please create a scenario concerning the commercial activity of an English organisation that brings together four individuals and that meets the requirements set out below:
One of the individuals is personally responsible for the organisation’s debts and controls and manages the business;
The other three individuals are only liable for debts up to the amount of money or property they had contributed to the business when it was set up;
The organization does not have a separate legal personality and is tax transparent.
The scenario should include a general description of the organisation’s business operation(s).
1.2 Concerning the scenario you created in the previous answer, please indicate which areas of law are most relevant to the management of the commercial organisation you described and explain why.
It assesses the following learning outcomes:
Understand the role of law as a business and management tool;
Identify different issues and laws applicable in the context of doing business;
Examine the different legal approaches and legal tools available for the conduct of business.
- A seller from Brazil agreed to deliver 400 tonnes of corn to the premises of a buyer in Iran for $ 60,000. While the merchandise was in transit by sea, a war began, and the ship was seized for a few months. Thus, when the corn finally reached the buyer, it was mouldy. The buyer, however, accepted the corn since the war interrupted the grain imports.
Buyer and seller agreed the goods delivered are worth about $ 56,250, not the $ 75,000 that would be the value of the merchandise without mould.
2.1 Explain if the situation described is governed by the UNIDROIT Principles of International Business Agreements or the United Nations Convention on Contracts for the International Sale of Goods (or neither or both).
2.2 Explain how much should the buyer pay for the corn delivered?
It assesses the following learning outcomes:
Identify different issues and laws applicable in the context of doing business;
Examine the different legal approaches and legal tools available for the conduct of business;
Analyse different systems of law, their interpretation and their application to business;
Apply theoretical knowledge and understanding of business law to practical issues and challenges.
