FORMAT:

All work should be word processed in 12 point font Times New Roman or Arial and double spaced. Please include a full bibliography. Please ensure that you provide the following details on the first page of your coursework:

Student Number

Module Name and Number

Coursework question

Word count

WORD LIMIT RULES:

The following rules apply to word limits for the coursework assessment:

· Word count includes everything in the main body of the text (including headings, tables, citations, quotes, lists, etc.).

· The references, bibliography and footnotes (provided footnotes only include references) are NOT included in the word count.

· There is no penalty for exceeding the word count but the marker WILL stop reading once the word limit has been reached and nothing further will be taken into account in the allocation of marks. Students will be penalised for a failure to be concise and for failing to conclude their work appropriately.

· The word count needs to be clearly and correctly stated on the title page of the assignment. Incorrectly understating the word count constitutes an assessment offence and may result in further action.

NB: See student handbook for penalties in the case of collusion or plagiarism.

Business Law UJUUJ4-15-2

Referral Assignment 2014/15 WORD LIMIT: 2000 words

Barbara, Helen and Maureen have been working together for 18 months, running a business in England, making and selling celebration cakes and luxury desserts. They call the business ‘Sweet Pleasures’.

Between them they have been sharing the costs of buying materials, equipment, ingredients and paying the general running costs. They have been splitting the net profits equally (after paying running costs for the business) for the past 18 months. They have no written agreement setting out the terms of their business arrangements.

The business is doing well and recently they have been offered a 12 month contract to supply a variety of their luxury desserts to a very popular delicatessen’s shop. With the expansion of their business they have decided that it would be a good idea to investigate the possibility of formalising their business arrangements and are thinking of forming a private limited company as they have been told this would be a suitable business arrangement for them.

Task 1

Describe the type of business organisation Barbara, Helen and Maureen currently operate under. What are the advantages and disadvantages of continuing to trade as they do at present?

Task 2

Advise Barbara, Helen and Maureen as to the advantages and disadvantages of setting up a private limited company.

Task 3

Barbara, Helen and Maureen want to retain their current business name, advise them as to whether they can do this if they form a private limited company.

Task 4

If they form a private limited company Barbara, Helen and Maureen want to raise additional capital to support their business expansion by issuing more shares or by taking out a bank loan. Explain what implications each method of raising further capital might have upon the running of their business?

Task 5

You should set aside 250-400 words (out of the 2000) to write a reflection on how you went about researching and preparing this work. Your research trail should explain what resources you used eg texts/ journals/cases/statutes and online materials, and why you thought they were appropriate resources for answering the questions. You can discuss such matters as to whether you found enough information in those materials and whether you found them easy or difficult to understand. If this is a resit coursework you may like reflect upon what you have done differently in this coursework as compared to what you did in the first coursework.

For section 1-4 give your reasons for the advice given and where appropriate support your advice with statutory references and case law. All sections carry equal marks.

Suggested reading:

Law for Business Students 8th ed Adams Chs 20 -22

Introduction to Business Law 2nd ed Jones, Ch 15 & 16

Business Law Keenan & Riches 11th ed Ch5 (pp118-140) Ch 6

Essentials of Business Law 4th ed MacIntyre Chs 10,11 & Ch12 (pp329-345)

For more detailed analysis you may wish to look at

Business law 7th ed MacIntyre

Or any other appropriate company law texts

www.companieshouse.gov.uk

((do not use pre 2006 material as it will not cover the Companies Act 2006 , do not use non UK sources nor is it wise to use non law based articles. This will give you a very confused interpretation of UK company law. ))

Rough Guide to what I’m looking for in this assignment-

A very good piece:

Well laid out and well structured

Correctly identifies issues and analyses them

Evidence of appropriate research,

Ability to formulate a clear opinion based upon the research

Appropriate use of legal materials ( cases and statutory references where appropriate)

A good piece of work:

Perhaps slightly less widely read and researched with issues less well developed but nevertheless still demonstrating a clear understanding and appraisal of the issues.

Good use of materials

Clarity of opinion

Work has structure and is clearly laid out

A satisfactory piece of work:

Issues correctly identified and some attempt to analyse them

Some evidence of reading and research

Structure and presentation of work reasonable

Some evidence of appropriate use of legal materials

Evidence of an opinion put forward but lacking depth/ clarity

An inadequate piece of work:

Failure to identify the legal issues correctly or apply any analysis thereto

Little evidence of reading or research or understanding thereof

Poor structure and presentation of work

Inadequate use or understanding of legal materials

Poor expression of opinion