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Business Context Law



TASK 1

Mr Jack Brown, a Marketing consultant, and Mr Charlie Longbottom, an Accountant, run a small but fairly successful consultancy firm, called ‘Horizons’ in Waterloo, London. The business has been in operation for 7 years and its annual turnover is approximately £250,000 per annum. The business has 120 local clients for whom it provides services in marketing and accountancy.

The partners decide that the business needs some new blood in the form of a new business partner. They identify one potential partner in the form of Mrs Jessica Fry, who would bring much needed expertise in Law and also would also boost the business’ finances in the form of a capital injection.

Before investing, Jessica wants the financial statements (Profit & Loss account, and Balance Sheet) of the practice audited independently.

The independent auditor’s report is very concerning. It seems that Charlie, has been embezzling money to the tune of £500,000 over the 7 years the business has been in operation. This is in breach of several Acts of Parliament which create both civil and criminal liability.

Least to say, Jessica pulls out of the investment. Afraid of legal consequences and being held complicit, Jack seeks advice from a reputable solicitor, you. Admittedly, Jack knows very little of the law, and as a first step asks you, the solicitor, about statutory interpretation.

In the form of a report explain and assess to Jack the rules of statutory interpretation.
                                  (40 marks)




TASK 2

Kevin Stormbringer, a close friend of yours, bought a honeymoon package for himself and his new bride, Maryanne, from an Internet based company called ‘Love Excursions’. The company was based in London and were ABTA registered, which Kevin thought was a good sign.

The package cost £3,999 and included 7 nights half-board stay at a 5 star beach resort in Bali, Indonesia. It also included return flights for two, and transport to and from the hotel. Kevin thought the price was a ‘steal’ and quickly bought it via his debit card. He received email confirmation regarding his purchase immediately and was very happy to continue doing business with them.

Six weeks prior to his honeymoon, he was to receive his electronic tickets, which didn’t materialise. Kevin, being slightly concerned fruitlessly called up the company via the telephone number listed on the email to him and on the company’s website. He tried again several times to no avail and finally decided that he would pay a physical visit to the company. The very next day, Kevin visits the address and finds no such company situated there.

Very concerned, he speaks to the police and they inform him that the owner of the company is quite the disreputable businessman. Poor Kevin is now in trouble, he does not know what to do and furthermore his new wife is threatening to leave him due to his inaction.

A very frustrated Kevin is advised by you to recover his money via the small claims process. Explain to Kevin what steps he will have to take to recover his money, and any problems he may encounter. Are there any alternatives to using the civil court system, which he should consider?

2000 words





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