Reference no: EM133162281 , Length: word count:4500

Unit 7 Business Law - Higher National Diploma in Business

Assignment Running a business with related legal concepts

Learning Outcome 1: Explain the basic nature of the legal system

Learning Outcome 2: Illustrate the potential impact of the law on a business

Learning Outcome 3: Examine the formation of different types of business organizations

Learning Outcome 4: Recommend appropriate legal solutions to resolve areas of dispute

Assignment Brief and Guidance:

Scenario:

You are a solicitor and working in a famous legal professional consultancy firm as a legal consultant. One day, your potential client, Marvin Lee, who is planning to open a café chain store in Hong Kong and asking for your legal advice for related issues. Meanwhile, he is seeking an appropriate place for his café restaurant and preparing to employ working labour and office staff for his business running. But he does not know whether there are certain ordinances for monitoring the recruitment, health and safety for working environment. He has lots of inquiries about the problems in opening his business. Therefore, you are hired and are preparing to answer his following questions. A formal and detail business report with related legal concepts are required to submit to him according to his request:

Guidance:
1) He requests a clear and detail of legal environment / system of Hong Kong and the differences between civil and criminal law. How does the role of Hong Kong government in law-making together with the justice system and the organization of the judiciary. Therefore, a precise structures of HK jurisdictions and the structures of the court together with a series of legal knowledge, such as statutory law, common law and equity and the principles of company law and contract are required to introduce to Mr. Lee.
2) When Mr. Lee starts his café business, fundamental negligence in tort issues and consumer protection ordinances are required to recognize in order to avoid certain unnecessary liabilities being arisen in future. At the meantime, competition ordinances in Hong Kong are also required to introduce to him in ensuring a fairness competition during the business operation. Also health and safety issues for his employees/labours are required to set up in order to ensure all employees inside his organization are under protection and without against the related regulation of Hong Kong government.
3) As Mr. Lee's business will be running with the aid of computing literacy, therefore, a set of software security and data protection issues must be under consideration for his guidance.
4) Since Mr. Lee will recruit a team of employees, including restaurant attendances and office administrative staff (e.g. for accounting, marketing, management and human resources departments), a detail and precisely contract law concept (e.g. employment contract, dismissal, redundancy and discrimination ordinances etc.) must be catered to him.
5) As Mr. Lee is still considering whether he should set up the firm in form of sole proprietorship or in partnership/limited companies, you are required to distinguish the differences (advantages & disadvantages) of these three types of companies. A detail set up procedures in forming a company including registration, raising capital and liquidating process are required to illustrate for Mr. Lee's consideration.
6) As recently there have been lots of negative news about the failure of faithfulness among some companies' directors, you are required to write for the role of the shareholders, a usual practice in appointing directors, company secretary/auditor and their responsibilities.
7) Highlight the general legal solutions for different types of dispute, such as:
- Area of employment (e.g. health & safety and equality of pay claims, compromise and severance agreements, wrongful or unfair dismissal claims);
- Corporate and commercial disputes, e.g. breach of contract, contesting a damages claim and dispute between directors;
- Commercial property problems, e.g. commercial lease transactions, real estate and investment properties.

8) Also explain the terms of Citizens advice and the role of Alternative Dispute Resolution (ADR), e.g. specific tribunals or the role of unions etc., to your potential client if there is any dispute occur during business operation in future.

A full business report with legal issues are required to submit to your potential client in order for his consideration in setting up the business.

Student must follow the below format outline:

A) Front Page
- Program Name
- Unit name
- Assignment Title
- Student Name
- Student No.
- Date:

B) Table of Content

C) Introduction
- Rationale for writing report (Marvin seeking your help to give him various aspects of legal issues in establishing his café business);
- For para 1: Introduce the source of Hong Kong legal issues, e.g., meaning of statutory law, concepts of law of tort / criminal law, common law (precedents), equity, company law / contract law etc. (no need to mention about the Basic Law)
- For para 1: Illustrate the hierarchy of HK Court system with the diagram (This can refer to the power-points of 1st session-Courts and the Adm. Justice).

D) Content of the business report
- For para 2: Roughly define the principles of law of tort (refer to the power-points of 1st session-Principal of liability; at least read through slides 1 - 20) and refer the case of Donoghue v Stevenson (1932); Apply duty of care principle to Marvin's situation;
- For para 2: Competition ordinances in HK and the fairness competition during the biz operation (refer to the patent/copy right protection from competitors in Café industry)
- For para 2: Pay attention to Marvin café employees' health and safety issues in working environment. Quote relative HK regulations for supporting this;
- For para 3: Pay attention to the data secrecy for café business since café business may use computer literacy in aiding daily biz operation, e.g., ordering, bill settlement and data alteration. Different level of employees may be assignment accessing authority with certain passwords. Setting fire wall for protection against external hackers etc.
- For para 4: This is concerning about the HR recruitment and how to making an employment contract. Refer to the 2nd session power-points on Employment law (slide 1-36). Read thru the meaning of employment of contract & employment for contract (cases: Dacas v Brook Street Bureau (UK) Ltd [2003]; Lee Ting Sang v Chung Chi Keung [1990] & Cheng Yuen v Roayl Hong Kong Golg Club [1997]); and read thru the power-points in Making a Contract (slide 1-26); The most important concept in formation of contracts. There are at least three elements, e.g., offer, acceptance & consideration. A prominent representative case (Carlill v Carbolic Smoke Ball Co (1893) must be show for the illustration of t his part;
- For para 4: you are required to draft up a simple employment contract for a specific position stating the job title, job responsibility, salaries, remuneration and the period of notice of termination of contract. A simple employment advertisement is recommended to draft up. These two documents are attached in the project Appendix.
- For para 5: Distinguish the differences (advantages and disadvantages) for sole proprietorship, partnership and private limited company (Refer the power-points "The Nature of Limited Company". The purpose in doing this is for Marvin's consideration which type of organization is fit for him in forming his café service company;
- For para 5: Mention the detailed set up procedures in forming a company in registration, raising capital a liquidation process (refer the power-points: "Corporate Insolvency" note for liquidation process.
- For para 6: This part states about the duty of a director, appointment of directors (company secretary/auditor) and their responsibilities to their company (a separate set of power-points is attached);
- For para 7: It is mainly to describe how a contract can be discharge and the meaning of breach of contract (separate sets of power-points are attached); Also illustrate the different types of disputes among directors;
- For para 7: General situation of HK "Commercial property problems" such as lease issue are mentioned;
- For para 8: Just define the meaning and role of Alternative Dispute Resolution (ADR) (Refer to your scheme of work Task 12 online linkage).

E) Conclusion / Recommendation

F) References / Bibliography / Court cases / HK ordinances

G) Appendix