Employment Law and Business Organizations
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Questions and Answers

Which of the following is NOT a type of company mentioned in the content?

  • Private company
  • Sole trader
  • Public company
  • Limited liability company (correct)
  • What is the main difference between wrongful and unfair dismissal?

  • Wrongful dismissal is based on a lack of fair reason, while unfair dismissal is based on a breach of contract.
  • Wrongful dismissal is a breach of contract, while unfair dismissal is not. (correct)
  • Wrongful dismissal is when an employee is dismissed for a reason that is not related to their work performance, while unfair dismissal is when an employee is dismissed for a reason related to their work performance.
  • Wrongful dismissal is a violation of employment law, while unfair dismissal is not.
  • Wrongful dismissal occurs when an employee is dismissed without notice, while unfair dismissal is when an employee is dismissed with notice.
  • What does the term 'limited liability' mean in the context of companies?

  • The company's liability is limited to the amount of capital invested in the company. (correct)
  • The company's liability is limited to the amount of assets owned by the company.
  • The company's liability is limited to the amount of profit earned by the company.
  • The company's liability is limited to the amount of debt owed by the company.
  • Which of the following is NOT a factor that helps to establish an agency relationship?

    <p>The agent must be paid a fee for their services. (E)</p> Signup and view all the answers

    Which category of dismissal applies to a situation where an employee is dismissed without reasonable or fair cause?

    <p>Wrongful dismissal (B)</p> Signup and view all the answers

    Which of the following is NOT a duty of a partner in a partnership?

    <p>To pay a fee for their services. (C)</p> Signup and view all the answers

    Why is it important to distinguish between employees and the self-employed?

    <p>Because the two have different rights and obligations. (B)</p> Signup and view all the answers

    What is the main purpose of a contract of employment?

    <p>To define the terms and conditions of a worker’s employment. (C)</p> Signup and view all the answers

    What is the usual composition of a tribunal in England?

    <p>One legally-qualified individual and two with no legal background (A)</p> Signup and view all the answers

    Which of the following is NOT typically dealt with by tribunals?

    <p>Civil disputes between two private parties (D)</p> Signup and view all the answers

    Which type of dispute is NOT typically handled by an employment tribunal?

    <p>Disputes related to inheritance claims (A)</p> Signup and view all the answers

    Which of the following is NOT a characteristic of employment tribunals compared to traditional courts?

    <p>Typically involve a higher level of formality (B)</p> Signup and view all the answers

    What is the highest court of appeal for decisions made by the Employment Appeal Tribunal?

    <p>Court of Appeal (Civil Division) (A)</p> Signup and view all the answers

    Which of the following statements accurately describes the role of an employment tribunal in the UK?

    <p>They are a specific type of court that handles certain employment disputes (D)</p> Signup and view all the answers

    What is the primary advantage of resolving employment disputes through a tribunal compared to a traditional court?

    <p>Tribunals are known for their speed and affordability (A)</p> Signup and view all the answers

    Where can appeals against decisions of an Employment Appeal Tribunal be made?

    <p>Court of Appeal (Civil Division) (B)</p> Signup and view all the answers

    Which of the following is NOT a duty of a company promoter?

    <p>To ensure the company is properly registered. (A)</p> Signup and view all the answers

    Which of the following is NOT a statutory book that companies must keep?

    <p>Register of contracts (A)</p> Signup and view all the answers

    What is the primary purpose of a company's articles of association?

    <p>To define the company's operating procedures and internal governance. (A)</p> Signup and view all the answers

    What is the difference between a fixed charge and a floating charge?

    <p>A fixed charge is secured against specific assets while a floating charge is secured against the company's overall assets. (D)</p> Signup and view all the answers

    Which of the following is NOT a valid reason for a company to issue shares at a premium?

    <p>To reward existing shareholders by offering them shares at a discounted price. (A)</p> Signup and view all the answers

    What is the main principle behind the doctrine of capital maintenance?

    <p>A company must maintain a minimum amount of capital to ensure its solvency. (D)</p> Signup and view all the answers

    What is the primary role of directors in a company?

    <p>To provide strategic direction and oversight for the company. (D)</p> Signup and view all the answers

    How can a director be removed from office?

    <p>All of the above. (D)</p> Signup and view all the answers

    What is the primary legislation under which local authorities can make bye-laws?

    <p>Local Government Act 1972 (A)</p> Signup and view all the answers

    Which Act allows the Law Society to issue regulations to practising solicitors?

    <p>Solicitors Act (A)</p> Signup and view all the answers

    What type of delegated legislation is considered the most important?

    <p>Statutory instruments (D)</p> Signup and view all the answers

    What is the primary purpose of delegated legislation?

    <p>To introduce complex new statute law with details specified by experts (A)</p> Signup and view all the answers

    When a new Act of Parliament is enacted, what is typically delegated to a government minister?

    <p>The power to introduce detailed regulations (B)</p> Signup and view all the answers

    Which of the following is NOT a form of delegated legislation?

    <p>Constitutional amendments (A)</p> Signup and view all the answers

    What power does an Act of Parliament confer concerning delegated legislation?

    <p>The authority to create detailed laws specific to the Act's topics (A)</p> Signup and view all the answers

    What is a characteristic of statutory instruments?

    <p>They can be independent of an Act of Parliament. (D)</p> Signup and view all the answers

    What is the function of Orders in Council?

    <p>To introduce statute law without passing an Act of Parliament (D)</p> Signup and view all the answers

    What happens when delegated legislation exceeds the powers granted?

    <p>It can be challenged in court and declared invalid (D)</p> Signup and view all the answers

    What does the Companies Act 2006 primarily express?

    <p>The common law rules about directors' legal duties (C)</p> Signup and view all the answers

    Why might the government choose to use Orders in Council?

    <p>When speed is required over thoroughness (C)</p> Signup and view all the answers

    What is a likely trend regarding the use of statutory instruments?

    <p>Their use is expected to increase as laws become more complex. (A)</p> Signup and view all the answers

    Why might Parliament choose to use delegated legislation instead of enacting laws directly?

    <p>To facilitate the introduction of complex details by experts (C)</p> Signup and view all the answers

    Which of the following defines bye-laws?

    <p>Local statutes introduced by local authorities (D)</p> Signup and view all the answers

    Which is a consequence of properly introduced delegated legislation?

    <p>It holds the same legal force as primary legislation (B)</p> Signup and view all the answers

    What determines whether a precedent is binding on lower courts?

    <p>It must be issued by a court of sufficient seniority within the hierarchy. (B)</p> Signup and view all the answers

    Which of the following statements about judicial precedents is true?

    <p>Judicial precedents allow for the adaptation of legal principles to new cases. (C)</p> Signup and view all the answers

    What must occur for a judge to create a new precedent in a court case?

    <p>The circumstances of the new case must differ significantly from the precedent. (C)</p> Signup and view all the answers

    Which statement correctly describes the function of the doctrine of binding precedent?

    <p>It mandates that judges must apply established principles from previous cases to similar future cases. (A)</p> Signup and view all the answers

    How can the Supreme Court impact previously established precedents?

    <p>It has the authority to overturn precedents established by the Court of Appeal. (D)</p> Signup and view all the answers

    What is a common misconception about the creation of a binding precedent?

    <p>It can be based on a legal decision that addresses a question of fact. (B)</p> Signup and view all the answers

    In what scenario can a new judicial opinion become a precedent?

    <p>When a case presents a novel legal issue without prior established law. (B)</p> Signup and view all the answers

    What is required for a court to follow the precedent set by a higher court?

    <p>The lower court must be confronted with a situation identical to the precedent's circumstances. (D)</p> Signup and view all the answers

    Flashcards

    Tribunal

    A body appointed to adjudicate on specific matters.

    Company Promoters

    Individuals or groups responsible for creating a company and organizing its initial structure.

    Composition of Tribunals

    Typically consists of three members: one lawyer and two non-lawyers.

    Company Registration Procedure

    The steps required to legally form a public or private company, including documentation and filings.

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    Areas of Tribunal Jurisdiction

    Tribunals handle disputes in areas like immigration, social security, and employment.

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    Statutory Books

    Records that companies are legally required to maintain, including minutes of meetings and shareholder registers.

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    Employment Tribunal

    A type of tribunal that resolves employment-related disputes.

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    Model Articles of Association

    Standardized rules that govern the internal management of a company.

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    Types of Cases in Employment Tribunals

    Covers unfair dismissal, discrimination, equal pay, and safety issues.

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    Classes of Shares

    Different types of shares within a company that may have varied rights and privileges.

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    Legal Hierarchy of Employment Cases

    Employment Tribunal, Employment Appeal Tribunal, Court of Appeal.

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    Differences from Civil Courts

    Tribunals resolve cases faster and at lower costs than civil courts.

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    Debenture

    A long-term security yielding a fixed interest, issued by a company and secured against assets.

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    Capital Maintenance

    Legal principles ensuring that a company's capital is preserved and not returned to shareholders as a dividend.

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    Examples of Employment Tribunal Issues

    Covers unfair dismissal, discrimination, health and safety, and union disputes.

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    Role of Directors

    The responsibilities of individuals appointed to oversee the company's management and ensure it operates in shareholders' interests.

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    Judicial Precedent

    A legal principle established by one court’s decision that other courts must follow.

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    Binding Precedent

    A precedent that must be followed by lower courts in future similar cases.

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    Hierarchy of Courts

    The ranking system where higher courts set precedents that lower courts must follow.

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    Court of Appeal

    The court that can establish precedents that lower courts are bound to follow.

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    Supreme Court

    The highest court in the hierarchy that can overturn precedents set by lower courts.

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    Judicial Opinion

    A decision made by a judge based on legal principles and precedents.

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    Doctrine of Binding Precedent

    The principle that judges must apply established precedents to similar cases.

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    Circumstances of the Case

    The specific facts and context surrounding a case which can influence its judgement.

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    Duty of Care

    The legal obligation of accountants and auditors to act in the best interest of their clients.

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    Employees vs. Self-Employed

    Employees work under a contract with rights; self-employed operate independently.

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    Contract of Employment

    An agreement outlining duties and rights between employer and employee.

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    Wrongful vs. Unfair Dismissal

    Wrongful dismissal breaches the contract; unfair dismissal lacks just cause.

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    Redundancy

    The dismissal of employees due to their position no longer being needed.

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    Agency Relationship

    The relationship where one party acts on behalf of another, like partners or directors.

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    Limited Liability

    Legal protection that limits an owner's losses to their investment in the company.

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    Types of Companies

    Includes sole traders, partnerships, private companies, and public companies with differing liabilities and structures.

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    Companies Act 2006

    A UK law that outlines directors' statutory duties and legal responsibilities.

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    Delegated Legislation

    Law made by a person/body to whom Parliament has delegated law-making powers.

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    Primary Legislation

    Laws made directly by Parliament, such as Acts of Parliament.

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    Statutory Instruments

    A common form of delegated legislation providing detailed provisions.

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    Orders in Council

    A method of delegated legislation involving government ministers.

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    Bye-laws

    Local statutes created by local authorities for specific areas.

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    Court Rule Committees

    Bodies that make rules for the procedure in courts.

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    Professional Regulations

    Rules established for specific professions, often through delegated legislation.

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    Local Government Act 1972

    Legislation that grants local authorities the power to make bye-laws.

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    Statutory Instruments (SIs)

    Detailed regulations introduced by government ministers following an Act of Parliament.

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    Solicitors Act

    Law granting the Law Society power to regulate practicing solicitors.

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    Advantages of Delegated Legislation

    Benefits include time-saving and flexibility in law-making.

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    Statute Law Complexity

    The increasing intricacy of laws necessitating the use of statutory instruments.

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    Study Notes

    Defences to Negligence Actions

    • Professional negligence is a potential legal issue in various professions.

    Employment Law

    • Employees vs. Self-Employed: Distinguish between employees and the self-employed.
    • Contract of Employment: Defines the nature of the contract and main duties of both parties.
    • Dismissal and Redundancy: Differentiate between wrongful, unfair, and constructive dismissal, define redundancy, and discuss available remedies.

    The Formation and Constitution of Business Organisations

    • Agency Law: Defines the agent's role, examples of relationships (partners, directors), how agency is established, agent's authority, and potential liabilities of principal and agent.
    • Partnerships: Covers legislation governing unlimited and limited partnerships, establishment, partner authority, partner liability, and partnership dissolution.
    • Corporations and Legal Personality: Differentiate between sole traders, partnerships, and companies; explain limited liability; analyze different company types (private, public); illustrate the effect of separate legal personality; and recognize instances where separate legal personality is disregarded.
    • Company Formations: Explain the role and duties of promoters, company registration procedures (public and private), statutory books/records/returns, model articles of association, effects of constitutional documents, article changes, and company name controls.

    Capital and Financing of Companies

    • Share Capital: Examines different meanings of capital, various share classes, and procedures for altering class rights.
    • Loan Capital: Defines companies' borrowing powers, explains debentures, distinguishes loan from share capital, explains company charges (fixed and floating), and describes the need and procedure for registering company charges.
    • Capital Maintenance and Dividend Law: Explains the doctrine of capital maintenance and capital reduction; examines the effects of issuing shares at a discount or premium; and explains dividend distribution rules for private and public companies.

    Management, Administration, and Regulation of Companies

    • Company Directors: Explains the role of directors, their appointment, loss of office, and disqualification.
    • Employment Tribunals: Explains employment tribunals (types of disputes heard, roles of the tribunal members, appeals process).

    Judicial Precedent

    • Precedent: Defines precedent and the doctrine of binding precedent. Explains how precedent is established by senior court decisions.
    • Establishing Precedent: A legal principle from a court decision that other courts must follow in similar cases. It must be based on a legal proposition or principle, not facts.

    Delegated Legislation

    • Delegated Legislation: Describes delegated legislation (secondary legislation) as statute law made by a body/person appointed by Parliament.
    • Necessity for Delegated Legislation: Explains why delegated legislation is necessary as a convenient way for introducing new statute law due to complexity and detail.
    • Forms: Describes different forms including statutory instruments, Orders in Council, bye-laws, Court Rules, and professional regulations.
    • Advantages and Disadvantages: Outlines advantages and disadvantages of using delegated legislation.

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    Description

    This quiz covers critical concepts in employment law, including the distinction between employees and self-employed individuals, as well as various aspects of contractual agreements. Additionally, it explores agency law, partnership structures, and corporate legal personality. Test your knowledge on legal duties and liabilities within different business frameworks.

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