Table of Contents

Introduction ……………………………………………………………………………. 2

Major findings …………………………………………………………………………..3

Conclusion ……………………………………………………………………………...12

Reference ………………………………………………………………………………..13

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 Introduction

The purpose of this paper is indicating the knowledge which have been provided through the
Business Law course in IBD@NEU education program. The assignment in this paper will be
covering four seperated learning outcomes through out the course and answering all
requirements included in terms of four learning outcomes which cover eight units through out
the course.

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 Major findings

Task 1
The evolution of equity

At first, equity “was originally dispensed by the King in 13th century (Pearce and Stevens,
1995). However, the work to develop equity was developed to the Lord Chancellor and the
Court of Chancery” (McDonald and Street, 2018) also known as the English High Court of
Chancery with the purpose of complementing Common Law and to tackle injustices occured
when the implementation of common law is performed. There were a significant number of
aggrieved citizens who petitioned the King for assistance, he then pass the responsibility on the
Chancellors and formed the Court of Chancery for application of equity. Indeed, during the
judication process of the court, some cases outside traditional ones being stated in the Common
Law, the judges could still announce their remedies when solving the case by applying equitable
rights. However, in the past, this action could only be made if that trial was happening at a court
which allowed equitible rights in their acts of judication. In reality, it was not until the Earl of
Oxford’s case (1615), the king applied equity prevailed over the common law in an conflicting
occasion. Later on, the Judicature Acts 1873-75 allowed all judges were able to use both
equitable principles and common laws in their judication.

The historical background of Equity has been delivered, the system development of it will also
be given. There are two types of law existing in the society, including satutory law and common
law. In fact, satutory law is originally introduced by statues and it would be taken into
consideration before publicly implemented in general courts. The law would not be absolute as
statues are passing them by forcasting circumstances in the future. Another type is Common
law, in which judication are based on previous cases and as the law is not fixed, the judge could
establish a rule depend on the case. Indeed, common law have several limitations which are the
heriachy level of each courts, the lower ones must follow the superior ones but they should take
those cases into account. The development of Equity then beginned when Common law rigid
raised and it could not achieve justification. Through the implecation of equity, there are more
remedies for specific cases, the judge’s judications start from his conscience and justice.
Although, Equity and Common law used to compete between them, now, they are supporting
each other for a better development of law.

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The differences between Equity and Common Law

Equitable rights Common law

The additional complement to the existing
common law and does not have the ability to
replace it.
Chancellors developed equity based on the
requirements of the King from citzens’
compalinment about common law’s rigidity.
Equity acknowledges Common law and
modify it in order to give alternate solutions
for the case
The court of conscience requires the parties
to act what is considered just and fair.
Indeed, the equitable maxims are including
principles of that moral behaviour, such as
‘He who seeks equity must do equity’ and
‘Delay defeats equity’
Optional remedies at the end of the trial
The totally completed law system of one
country
The application of stare decisis from English
customary law which was developed through
the judication of circuit judges
The practice of Common law does not
include equity
Affirms rights with out regard to the parties
intentions or purposes.
Available right for remedies at the begining of
the trial before final judication.

(Keenan, Riches and Allen, 2009)

Task 2
According to case of Gilly, he attempted to pass a wig and a jacket to the prisoner whom he was
visiting. This action could not be considered as a crime for assiting the prisoner for the purpose
of escape since a wig and a jacket were not the supporting tools for that purpose. However, the
warden has found that Gilly was hiding a pair of nail scissors in his pocket when visiting his
friend regardless of his intention to give it to the prisoner. The Prison Detection Act has charge
him for bringing it into the visting section of the prison. In this case, there are several rule of
common law which could be applied to evaluate and interpret the literal meaning of the Act
include literal rule, golden rule and mischief rule. At first, the literal rule would be implemented,

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the prison forbided vistors to bring “any knife, dagger, firearm, club or other thing whatsoever”. If
we took it into consideration underlying the literal rule, Gilly would not be charged guilty as he
did not violate the written word of the Act. On the prospective of Golden rule, as the visitor
brought in a pair of nail scissors, the mentioned “other thing whatsoever” can be interpret as
supporting tool for illegal act of prisoner when it come to prison breakout. Indeed, the mischief
rule could also be applied to interpret the literal meaning of the Act to cover its defect and
concentrated on the behaviours and action of the violater (since he had a supporting tool with
him when visiting). Therefore, in this case, Gilly would likely to be judicated by the mischief rule
of The Prison Detection Act and charged guilty for his act to prevent following similar actions in
the future.

Task 3

The Education Act itself has stated that student are forbiden of bringing cocaine, heroin,
cannabis and product related to drugs into campus. The purpose of this act was to eliminate
drug trafficking inside university campus. There were three case which violates this Act
including Winnie’s case, Doc’s case and Cisco’s case.

Winnie’s case

First of all, in the case of Winnie, she was caught while consuming addictive product and to be
specific was white asperin. When applying the literal rule to evaluate Winnie’s act, she violated
the law of Education Act since she was using it under campus halls. Moreover, the mischief rule
also showed that in any meaning of the Act, any individual with the acknowledgement of an
university student could be able to recognise right and wrong, and the interpretion from the rule
was clear enough for they to understand its meaning that addictives such as white asperin was
prohibited. Therefore, Winnie had violated the Education Act of using and trafficking addictive
drugs in campus.

Doc’s case

Secondly, Doc claimed himself innocent since he forgot an ecstacy tablet inside of his pocket.
Following the literal rule of the Act, he has violated it when bringing an ecstacy in the campus as
it said not any kind of drug was allowed. In addition, ecstacy are a strong psychedelic directively
affect the brain neuron systems, classifyed as the same addictive drugs among other ones.
However, Doc denied his intention to bring it in campus and if he could prove that he was

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accidently forgot it, there would be no violation recorded. Under the mischief prospective, it only
stated that any active intention of bringing drugs onto campus, the resutls depends on if Doc
actually intended to smug that ecstacy inside or not, then the finale decision could be given.

Cisco’s case

Thirdly, Cisco legally has a prescribe from his doctor for the specific pills called methadone
which help to reduce the severe pains of patient (WebMD, 2020). In particular, this medicine
can only be provided to those who have doctor’s decision for usage of it as side effects are
concerning. When implementing both literal rule and mischief rule in this case, the suspect was
found unguilty since the drug was used for medical purpose. Although, the prescription from the
doctor should be carefully confirm to make sure it was not utilized for other aims or purposes.

Task 4

Effah’s statements of contract

The statements of Effah about the MowMaster 3000 could be analyse into sever requirements
in a contract. At first, as being a seller, Effah has claimed that the machine is “the best one for
you”, “it is amazing”, which are her opinions with the idea that could convince Joan to buy it.
Also, the trader’s puffs are expected to be avoid and carefully dealed with. Indeed, the seller in
the case have over puffering about the machine that could “cut through anything” and it would
never “get blunt or bent out of shape”. The saying of the sales employees has striked into the
court of Joan as she wanted a good machine which could support her in mowing lawn business.
Besides, everything existing in this world do have expired date or durability during its usage.
The cutting blade statement is another puffery of Effah with the effort of selling the MowMaster
3000. It was only the last thing she said referd to be representation: “It was designed in
Germany and made from the best quality parts”. The original source of the machine was
introduced to have been imported from Germany, which is a reliable country of producing high
quality products. Moreover, the seller has guarantee the materials creating the machine are
good and could serve the business well. Therefore, the reliable representations in the contract’s
terms which lead to the decision of buying this machine are based on its origin and quality
guarantee of materials.

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Joan’s issues with the MowMaster 3000

In the following days, Joan has inspected that her MowMaster 3000 was not working as well as
she has been advertised by the seller. When it came to complainment, the store refused to take
responsibility for the issue with their product. They said that there was a announcement sign at
the checkout which proposed that her problems related after payment was customer to solve.
Indeed, the sign existed before the time Joan bought the machine, but she was not noticed or
informed about it. In this case, this could be considered as an exemption clause of the contract
between Joan and the seller. However, this term was ambiguity as Joan did know of its
existance nor informed about it, the court could implement Contra Proferentem in this case
(Boardman, 2006). Moreover, the exlusion in the term was to wide and more beneficial towards
seller. Hence, Joan could sued the store for selling her poor quality product which was contrary
to the contractual terms.

Task 5

According to the given context, Bernet has been hired by Paula to find a real estate for rental
purpose. Indeed, he has found a four-unit building which matched with Paula’s desirables with
the price under £200,000 and possible for rental at 1000 per unit per month. However, Paula
studied that he also found a better four-unit building for himself before this one. To be specific,
Bernet action has violated the fiduciary duty between him and Paula. There were two duties of
Bernet in their contract. Firstly, it was the duty good faith which reqiured him to deliver the
promised real estate which matched with the discription. Further more, he was carrying the duty
of loyalty, and in this case, he have put his personal economic benefits before the one who
hired him. He failed to inform Laura about the building with cheaper price and higher rental
payment, indeed take advantage of hers requirement for personal purpose. This could be
Laura’s legal recourse against her agency. In particular, the case of Paula could apply Equal
dignities rule as “…a legal doctrine that requires an agent under a power of attorney must have
in writing his or her authority to enter into contracts, especially those contracts which
themselves are required to be in writing” (Cassady Law Offices, 2015). However, since the
orally auttorney between them was only require Bernet to find the real estate instead of buying it
for her.

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Task 6

Several case law from previous judication would be provided. In the case of Mersey Docks and
Harbour Board v Coggins & Griffiths (Liverpool) Ltd (1946), Coggins and Griffiths hired a crane
operator who is Mr. Newell to unload good delivered from a ship. Further more, the Board of the
company wanted Coggins and Griffiths to find skilled crane driver in order to fill in the vacancy.
During Mr. Newell working hours, due to his negligence, another worker has been injured and
the circumstance was brought to court. Based on the testimony of Mr. Newell as he not taking
orders from Coggins and Griffiths, they were not responsible for this matter. However, the
contract for service of Mr. Newell was an agreement with the Board, thus they was taking
vicariously liable for the matter.

In another case law, Viasystems Ltd v Thermal Transfer (Northern) Ltd (2005) has indicate that
when there were more than one party liable for the case, the implementation of joint vicarious
liability would come in practice. According to the situation happened in the case, there was a
factory required air conditioning installation in their factory, three parties were hired to
accomplished that task including Thermal, company A and company B. Due to an inept
negligence of the worker C from company B who was under management of company B,
flooded the factory. The Court of Appeal finale decision was to apply joint vicarious liability for
both company A and B since the worker C had a contract of service with B and a temporary
contract for service with A. Thus, each company would be repsonsible for 50% of the damage
made by C.

In the case of Printers & Finishers v Holloway (No 2) (1964), the complaint sued Holloway and
the related parties, Vita-tex Ltd whose new employment of Holloway when he left. The Printer
and Finisher suspected Holloway for leaking their trade secrets for the competitor company. The
allegation evidence was based from the time Holloway still worked for the claiments’ plant, he
had invited a Mr. James who at that time was an employee of Vita-tex Ltd to have a look around
while they were still in operation. Moreover, the claiments believed that while working as a
manager, he had printed some copies about documentory material and took it with him to Vita-
tex Ltd when he left. Indeed, the claiments required an injunction for the prevention of their trade
secret usage by Vita-tex Ltd and Holloway. However, since the contract terms included in the
contract of service between Holloway and the claiment were not included non-disclosure of

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secret, therefore, Holloway was not be charge for breaching the contract term. However, the
court stated that the knowledge of Holloway in flock printing was not ready for wide spread and
the Vita-tex Ltd was restrained from utilizing Mr. James acquired information through his visit.

The differentiation between contract of service and contract for service are crucial for several
determinants. First of all, when issues caused by employees, the company who is currently
managing he or she would take fully liable for their actions because of Vicarious liability. In
particularly, that employer has fully control over that employees actions at work, however if they
made any negligence mistake, that firm would be required for damage compensation for the
claiment. Secondly, the term in contract must be clear and unambiguous so that when it comes
to dispute, the claiment can base on them for remendies. The contract of service emerge
employees with business confidential information during their job and provide them with rights
and remedies, while contract for service only require the work of that self-employed worker for
certain amount of time, which no secret would be reveal but no employee’s rights.

Task 7

The three directors of Teen Tune Ltd are Kim, Tamsin and Anne. Particularly, Kim and Tamsin
cooperated and managed to sell several of company’s possession to the another company
name Top Trump Ltd. Indeed, the role of these three directors is to manage to company and
earn profit, if not they will eventually be fired by the shareholders of Teen Tune Ltd. Further
more, they have the same duties with the current company which are the duties of directors. In
the given context, Kim and Tamsin had breached their duties of director when selling those
propertise of the company at a lower price to a firm which they were onwers. This action has
cause the company to suffer and lose its own possession. Moreover, this offence could also be
considered as a fraudulent trading as the two directors had intented to defraud the
organization’s creditors for their personal economic benefits. Thus, Kim and Tamsin would have
to take full liability for the loss of Teen Tune Ltd and since they did it together, Joint and several
liability would be applied. In contrast, Anne did not know any of the trading as those directors
kept it secret, hence, she would be innocent and take no responsible for Kim and Tamsin wrong
doing.

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Task 8

At first, Shares could be issued at any time when the business want to raise financial fund,
esspecially for business starting, company expansion or reorganise the firm’s systems (Nikhila,
2020). The share capital of a company can be devided into two forms: Preference shares and
Ordinary share. Indeed, preference share could be understand as a priority when it comes to
distributing dividend for shareholders. Nevertheless, the dividend would only be paid if the
business of the company ran smoothly in that year. In case that the company losses in the
current year, dividend would be paid in the following year, although if that shares were non-
cumulative, shareholders could only recieve dividend of the year. There are numerous merirs of
preference shares, inlcuding being able to firstly recieved company properties, have fixed
dividend, no redemption liabitlity requirement. On the other side, Drawbacks of it are no decision
over the company business, cannot reduce the tax on dividends, low to medium dividend
interest rate.

When raising finance by Shares or Ordinary Shares, the company open its equity for sale and
whoever purshase it, will become the company’s shareholders and have power over the
business activities of the firm base on the percentage of equity belongs to that person. These
individuals will also be paid with a fixed amount of dividend, after the payment for preference
shares’ owners is completed. In contrast, ordinary shares’s owners carry risks as they are the
last one to recieve dividend and repayment.

Unsecured loan is a solution for organizations to have fast money budget for investment in
business activities. This action do not require the company for mortgages at the time they take
the money. The money lending process is also fast and convinience for borrower to follow.
However, with the sky-rocket interest rate for the longer the time, the more money the
oraganization are in dept. Nevertheless, the company social recognition would be damaged if
people found out what the firm has been doing since this money lending practice is not
legalized. If the company was bankruptcy, those company would lift the veil of the company and
charge the money for each of the Board of Directors

Debenture secured by a floating charge over the company’s assets which could be a
reasonable way for financial funding. The parties who responsible for providing this type of loan

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are require to check for the existance and quality of the mortgage which will be charge over in
return for the money they needed. The process of assessing mortgage quality could be long and
mutiple complicated steps are included in the process. When the process is complete, the
floating interest of the asset based on if it is a fixed or non-fixed property. This practice require
high liability of the organization itself, and the neccessary of high value properties for possible
loans. Although this practice would help the firm back on business in depression time, it also
reduce the coset for issuance. In case the company went bankruptcy, the lender would recover
his loss by taking those assets which have been mortgaged by the firm.

Task 9

In general, there are more than one solution instead of going to court for a trial. The dispute
among parties could solve by implemting Alternative Dispute Resolution (ADR) which will be
listed and specified in this section. At first, Negotiation is a process of dispute resolution which
does not require the participation of third parties and its outcome would not be binding.
Secondly, the Mediation process where the invovlement of the third parties to listen and
manage the discussion without providing any advice or suggestion. However, the
implementation of Mediation is not widely apply as the willingness of two parties, the
relationship of the parties is ruined, or the difference between two parties power. Moreover, the
third ADR is Concilliation which improve the role of third parties in the discussion of two sides.
Lastly, the practice of Arbitration while the third parties solve the problems of the two parties,
suggesting them and commenting on their decision for the best possibility.

Advantages of ADR could be considered as more flexibilities, being able to select for the best
suitable ADR practices, cut-off the price for expenditures, faster than going to court and reduce
frustration when going on a trial. Disavantages of ADR might be the lack of guaranteed solution
for parties, the decision of Arbitrator are absolute and cannot be changed, the payment for
mediator and arbitrator is neccessary although it could not compared with that of the court
(Albright, 2012).

For example, there was an dispute between two companies in clothing business about suppliers
of their product. Indeed, as they were busy at fighting for the best suppliers in the country for
high quality product in their store, they did not manage to sell a lot of product. In this case, they
decided to use ADR and hired a arbitrator. In the end, with the arrangement of the arbitrator,
both store go back to harmony as they reach an agreement of exchanging existing supplier for

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product diversity at the store. Thus, the practice of ADR and specificly Arbitration in this case
was very effective.

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 Conclusion

The knowledge of this assignment have indicate my acknowledgement through the Business
Law course. Indeed, four learning outcomes are covered in this piece of writing. The first
accomplishment in the paper is fulfilling the knowledge of employement law from which i read
about in the text book of the course. Moreover, the contract law is also been covered by the
provision of several case study for better development of situational problem solving practice. In
the third learning outcome, IBD students are asked to accomplish the distinction between equity
and Common law, which is the foundation of mordern law base on the development of these
two types of law. Lastly, the approach of ADR in an example context as well as the advandtages
and disavandtages are represented in this paper.

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 References

McDonald, I. and Street, A., 2018. 1. The history and development of equity. Law Trove.

Keenan, D., Riches, S. and Allen, V., 2009. Business Law. 9th ed. Harlow: Pearson Education
Ltd., pp.1-578.

Pearce, R and Stevens, J., 1995. The Law of Trusts and Equitable Obligations, 2nd Ed p4 – 7

Boardman, M., 2006. Contra Proferentem: The Allure of Ambiguous Boilerplate. Michigan Law
Review, 104(5), pp.1105-1128.

Cassady Law Offices, P.C. 2015. What Is The "Equal Dignities Rule?" | Cassady Law Offices,
P.C.. [online] Available at: <https://www.cassadylawoffices.com/blog/2015/06/what-is-the-equal-
dignities-rule/#:~:text=One%20such%20requirement%20is%20known,required%20to%20be
%20in%20writing.> [Accessed 8 December 2020].

Mersey Docks and Harbour Board v Coggins & Griffiths (Liverpool) Ltd [1946] 2 All ER 845.

Viasystems Ltd v Thermal Transfer (Northern) Ltd [2005] 4 All ER 1181.

Printers & Finishers v Holloway (No 2) [1964] 3 All ER 731.

Nikhila, C., 2020. Raising Of Finance For A Company: 12 Methods. [online] Essays, Research
Papers and Articles on Business Management. Available at:
<https://www.businessmanagementideas.com/financial-management/raising-of-finance-for-a-
company-12-methods/6912> [Accessed 8 December 2020].

Albright, M., 2012. The Advantages And Disadvantages Of ADR. [online] Albrightstoddard.
Available at: <https://www.albrightstoddard.com/advantages-disadvantages-adr/> [Accessed 8
December 2020].

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