Fundamentals of Business Law

1.1 Identify the characteristics of different legal systems and the sources of different types of law
1.2 Explain how legislation is created and applied including the rules and models for statutory interpretation
1.3 Explain the doctrine of legal precedent including the creation and application of legal precedent
1.4 Identify how common law and relevant legislation are applied
1.5 Explain how different types of disputes are managed within and outside the court system

2.1 Explain the law of contract
2.2 Identify the fundamental features and requirements (terms) essential to contracts and the formation of contracts
2.3 Explain the importance of express and implied terms in contracts
2.4 Identify and explain the importance of conditions and warranties
2.5 Identify the nature and status of pre-contract representations, and common law and statutory conditions precedent
2.6 Identify the different types of breach of contract and explain their effects

3.1 Explain why the law of torts may concern a civil wrong and give rise to a civil action
3.2 Explain the torts of negligence, negligent misstatement, trespass and defamation
3.3 Identify a duty of care and explain that negligence means failure to exercise reasonable care
3.4 Explain the role of consumer protection law and negligence

4.1 Explain the legal and regulatory advantages and disadvantages of carrying on a business as a sole trader
4.2 Identify the necessary elements of legal partnerships and explain the difference between partnerships and joint ventures
4.3 Explain the legal and regulatory advantages and disadvantages of carrying on a business in a partnership
4.4 Identify the necessary elements of associations and the legal and regulatory advantages and disadvantages of carrying on a business as an association
4.5 Define a trust and identify common purposes for the establishment of a trust
4.6 Identify the parties to a trust and describe their roles and responsibilities
4.7 Apply the legal requirements in relation to the establishment, maintenance and vesting of trusts
4.8 Analyse the role of a corporate trustee
4.9 Demonstrate an understanding of the use of a trading trust

5.1 Explain the nature and effect of a company having a separate legal personality
5.2 Explain the effects of incorporation
5.3 Explain the implications under common law in relation to pre-registration contracts
5.4 Distinguish between public and proprietary companies
5.5 Apply the necessary steps in forming a company
5.6 Identify the elements of the constitution of a company and explain its contractual nature

6.1 Explain agency theory and how it applies to companies and underlines the principles of corporate governance
6.2 Identify the key legal issues that arise in the management and governance of companies
6.3 Explain the nature and role of company directors and other officers as agents of the company
6.4 Explain the nature, role, duties and powers of the board of directors and company officers
6.5 Identify the rules on directors’ remuneration and financial benefits to directors and other related parties
6.6 Identify the rules on appointment and removal of directors from office
6.7 Identify the role and powers of the registered company auditor

7.1 Apply the rules on the issue, transfer and redemption of shares and identify the significance of the requirement for disclosure of interests in shares
7.2 Explain the role of the general meeting of shareholders, including voting and resolutions
7.3 Distinguish the rights and remedies of members of companies
7.4 Demonstrate the company formalities, procedure and rules for the distribution of dividends

8.1 Identify the grounds relating to the dissolution and winding up of companies, trading trusts and partnerships
8.2 Apply the procedures for dissolution and winding up of companies, trading trusts and partnerships
8.3 Apply the procedures for addressing the rights of stakeholders and claimants
8.4 Identify the powers and duties of receivers and liquidators
8.5 Justify when administration is an appropriate alternative to winding up