INTRODUCTION TO BUSINESS LAW This page intentionally left blank lucy jones IntroductIon to Business L aw second edition 3 1 Great Clarendon Street, Oxford, OX2 6DP, United Kingdom Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries © Oxford University Press 2013 The moral rights of the author have been asserted First Edition copyright 2011 Impression: 1 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer Contains public sector information licensed under the Open Government Licence v1.0 (http://www.nationalarchives.gov.uk/doc/open-government-licence/open-government-licence.htm) Crown Copyright material reproduced with the permission of the Controller, HMSO (under the terms of the Click Use licence) British Library Cataloguing in Publication Data Data available ISBN 978–0–19–966287–6 Printed in Italy by L.E.G.O. S.p.A.—Lavis TN Links to third party websites are provided by Oxford in good faith and for information only. Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work. To Allan, Sophie, Nick, and Rosie and to all the students who have inspired me over the years. New to this Edition • Expanded coverage of employment law. • Coverage of changes brought about by the Equality Act 2010. • Coverage of proposed reform to unfair dismissal law. • Updated case law including coverage of recent decisions of the Supreme Court on issues relating to age discrimination, employer’s insurance liability, and causation. • Updated legislation and regulation coverage throughout. Outline Contents Guide to the Book xvi Guide to the Online Resource Centre xviii Table of Cases xx Table of Statutes xxvi PART 1 THE ENGLISH LEGAL SYSTEM 1 The Nature of English Law 2 2 The Court System and Alternative Dispute Resolution 16 3 Sources of English Law 42 PART 2 CONTRACT LAW 4 The Nature of the Agreement: Offer and Acceptance 82 5 Intention, Capacity, Consideration, and Privity 117 6 The Terms of a Contract 156 7 Vitiating Factors 194 8 Discharge of Contract and Contractual Remedies 233 9 The Law of Agency 270 10 The Sale of Goods and Supply of Services 298 PART 3 TORT LAW 11 The Tort of Negligence 344 12 Product Liability, Defective Premises, Interference with Land, and Defences 386 PART 4 EMPLOYMENT LAW 13 The Contract of Employment and its Termination 428 14 Discrimination and Health and Safety 457 viii Outline Contents PART 5 THE STRUCTURE & MANAGEMENT OF A BUSINESS 15 Business Organisations 488 16 Company Law I Formation and Finance 524 17 Company Law II Company Officers and Liabilities 556 18 Company Law III Company Meetings, Shareholder Protection, and Liquidation of Companies 587 PART 6 STUDY SKILLS & REVISION ADVICE 19 Study Skills 618 Index 630 Detailed Contents Guide to the Book xvi Guide to the Online Resource Centre xviii Table of Cases xx Table of Statutes xxvi PART 1 THE ENGLISH LEGAL SYSTEM 1 The Nature of English Law 2 Introduction 2 Learning Objectives 3 What is Law? 3 Nature of English Law 4 Classification of Different Types of Laws 8 Basic Terminology 13 Summary 13 Questions 14 Further Reading 14 Online Resource Centre 15 2 The Court System and Alternative Dispute Resolution 16 Introduction 16 Learning Objectives 16 The English Court System 17 Civil Disputes 31 Alternative Dispute Resolution 35 Basic Terminology 39 Summary 40 Questions 40 Further Reading 41 Online Resource Centre 41 3 Sources of English Law 42 Introduction 42 Learning Objectives 42 Legislation 43 Custom 57