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Praise for Law for Business Students
‘A highly accessible and clearly written book for non-law students.’

Stuart Peck, Senior Lecturer in Law,

University of Westminster
‘The book clearly introduces principles of law to both law and non-
law students in a manner which is easily understood and applied.’

Sukhninder Panesar, Head of Law School,

University of Wolverhampton
‘Law for Business Students presents the key principles of business
law in a meaningful and interactive manner, promoting greater
understanding of complex legal principles and how they relate to
current issues.’

Stella Diamantidi, Associate Dean, Student Experience,

Cardiff School of Management, Cardiff
Metropolitan University
‘The range of topics are broken down into manageable sections, and
written in a way that will cater to all learning abilities.’

Ashley Jane Lowerson, Lecturer in Law,

University of Sunderland
‘Excellent usage of cases to highlight how the law is applied in
practice. Chapter summaries allow the reader to identify if they have
understood the principles and the use of quizzes is a friendly way to
reinforce understanding.’

Colin MacFadyen, Lecturer,

University of the West of Scotland
 LAW FOR
BUSINESS STUDENTS
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 LAW FOR
BUSINESS STUDENTS
ALIX ADAMS, STEPHANIE CAPLAN,
GRAEME LOCKWOOD

11th edition
PEARSON EDUCATION LIMITED
KAO Two
KAO Park
Harlow CM17 9SR
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson.com/uk

Previously published 2000, 2003, 2006, 2008, 2010,2012 (print); 2014, 2016, 2018
(electronic)
Eleventh edition published 2020 (print and electronic)

© Pearson Education Limited 1996, 2000, 2003, 2006, 2008, 2010, 2012 (print)
© Pearson Education Limited 2014, 2016, 2018, 2020 (print and electronic)

The rights of Alix Adams, Stephanie Caplan and Graeme Lockwood to be

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the Copyright, Designs and Patents Act 1988.

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ISBN: 978-1-292-27224-5 (print)

978-1-292-27222-1 (PDF)
978-1-292-27223-8 (ePub)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library

Library of Congress Cataloging-in-Publication Data

Names: Adams, Alix, author. | Caplan, Stephanie, author. | Lockwood, Graeme,
author.
Title: Law for business students / Alix Adams, Stephanie Caplan, Graeme
Lockwood.
Description: Eleventh edition. | Harlow, UK ; New York : Pearson Education
Limited, 2020.
Identifiers: LCCN 2019048203 (print) | LCCN 2019048204 (ebook) | ISBN
9781292272245 (print) | ISBN 9781292272221 (PDF) | ISBN 9781292272238
(epub)
Subjects: LCSH: Law—England. | Commercial law—England.
Classification: LCC KD661 .A33 2020 (print) | LCC KD661 (ebook) | DDC
346.4207—dc23
LC record available at https://lccn.loc.gov/2019048203
LC ebook record available at https://lccn.loc.gov/2019048204
10 9 8 7 6 5 4 3 2 1
24 23 22 21 20
Front cover image © d1sk / iStock / Getty Images Plus
Print edition typeset in 9.5/13 pt Avenir LT Pro by Spi Global
Printed in Slovakia by Neografia
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT
EDITION
 Brief contents

Contents
Publisher’s acknowledgements
Preface
Table of cases
Table of statutes
Table of statutory instruments
Table of European and International legislation

Part 1: Introduction: getting started

1 Study skills
2 The nature of law
3 How the law is made
4 Resolving legal disputes
 Part 2: Law of contract, agency and sale of
goods
5 The law of contract: Offer and acceptance
6 The law of contract: Consideration, intention and
privity
7 The terms of the contract at common law
8 Statutory terms in contracts for sale of goods
and services
9 Defects in the contract: Misrepresentation,
mistake, duress and undue influence
10 The consequences of illegality and incapacity:
Illegality and incapacity
11 Discharge of the contract and remedies for
breach
12 The law of agency

Part 3: The law of tort

13 The tort of negligence
14 Negligence and special duty situations
15 Product liability
16 Occupiers’ liability, nuisance and vicarious
liability

Part 4: Elements of employment law

17 Rights at work: The contract of employment and
health and safety at work
18 Rights at work: Protection against discrimination
in employment
19 Rights at work: Protection against termination of
employment by wrongful and unfair dismissal
including redundancy

Part 5: Introduction to company law

20 Business organisations
21 Forming a registered company
22 Running the company: Raising and maintaining
capital
23 The management and governance of
companies: Functions of directors, secretary and
auditors
24 Company meetings, shareholder participation
and minority protection

Part 6: General principles of intellectual

property law
25 Statutory intellectual property protection:
Copyright, designs, patents and trade marks
26 Common law protection of intellectual property:
Passing off, malicious falsehood and breach of
 confidence

Appendix 1: Additional resources

Appendix 2: Worth thinking about? and Review
questions – outline answers
Index

Companion Website

For student resources to complement this textbook and support

your learning, please visit
go.pearson.com/uk/he/resources

Lecturer Resources
For online resources tailored to support the use of this textbook
in teaching, please visit
go.pearson.com/uk/he/resources
 Contents

Publisher’s acknowledgements
Preface
Table of cases
Table of statutes
Table of statutory instruments
Table of European and International legislation

Part 1: Introduction: getting started

1 Study skills
Introduction
Starting to study
Good study habits
Writing law assignments
Revision and examination technique
Conclusion

2 The nature of law

 Introduction
What is law?
The characteristics of English law
Why do we need law?
The differences between criminal and civil law
Changing the law
Essential legal terms
Chapter summary
Review questions 1
Advanced questions 1
Further reading
Web activity

3 How the law is made

Introduction
European law
Parliament
The courts
The Human Rights Act 1998 (HRA 1998)
Chapter summary
Review questions 2
Advanced questions 2
Take a closer look
Web activity
Assignment 1

4 Resolving legal disputes

Introduction
The court system
 Bringing a case in the civil courts
The Woolf reforms 1999
Settlement out of court
Payment into court and offers to settle
Civil litigation procedures
The trial of the case
Executing the judgment
Alternative dispute resolution (ADR)
The tribunal system
Chapter summary
Review questions 3
Advanced questions 3
Web activity
Assignment 2

Part 2: Law of contract, agency and sale of

goods

5 The law of contract: Offer and acceptance

Introduction
The essentials of a binding contract
The offer
The acceptance
Chapter summary
Review questions 4
Advanced questions 4
Take a closer look
Web activity
Assignment 3
6 The law of contract: Consideration, intention and
privity
Introduction
Consideration
Intention to create legal relations
Privity of contract
Chapter summary
Review questions 5
Advanced questions 5
Take a closer look
Web activity
Assignment 4

7 The terms of the contract at common law

Introduction
Express and implied terms
The relative importance of contractual terms
Exemption clauses: Limitation and exclusion of liability
Chapter summary
Review questions 6
Advanced questions 6
Take a closer look
Further reading
Assignment 5

8 Statutory terms in contracts for sale of goods and

services
Introduction
Part 1: Commercial sales contracts
 The terms implied by the Sale of Goods Act 1979
Other key statutes which regulate contracts involving goods
Part 2: Consumer sales
An overview of consumer sales protection before the CRA 2015
The Consumer Rights Act 2015
Chapter summary
Review questions 7
Advanced questions 7
Take a closer look
Further reading
Assignment 6

9 Defects in the contract: Misrepresentation,

mistake, duress and undue influence
Introduction
Misrepresentation
Mistake
Duress and undue influence
Chapter summary
Review questions 8
Advanced questions 8
Take a closer look
Web activity
Assignment 7

10 The consequences of illegality and incapacity:

Illegality and incapacity
Introduction
Illegality
 Contractual incapacity
Chapter summary
Review questions 9
Advanced questions 9
Take a closer look
Web activity
Assignment 8

11 Discharge of the contract and remedies for

breach
Introduction
Discharge of contracts
Remedies for breach of contract
Chapter summary
Review questions 10
Advanced questions 10
Take a closer look
Web activity
Assignment 9

12 The law of agency

Introduction
The creation of agency
The rights and duties of the agent
The rights and duties of the principal
Termination of agency
Some common types of specialist agents
Chapter summary
Review questions 11
 Advanced questions 11
Take a closer look
Web activity
Assignment 10

Part 3: The law of tort

13 The tort of negligence

Introduction
Negligence liability
1 The duty of care
2 Breach of duty
3 Proving consequential loss or damage
Defences in tort
Chapter summary
Review questions 12
Advanced questions 12
Take a closer look
Web activity
Assignment 11

14 Negligence and special duty situations

Introduction
Special duty situations
Chapter summary
Review questions 13
Advanced questions 13
Take a closer look
Web activity
 Assignment 12

15 Product liability
Introduction
Liability for defective products
The Consumer Protection Act 1987 (Part I)
Chapter summary
Review questions 14
Advanced questions 14
Take a closer look
Web activity
Assignment 13

16 Occupiers’ liability, nuisance and vicarious

liability
Introduction
The occupier’s liability to people on the premises
Duties of an occupier to people outside the premises
Vicarious liability
Chapter summary
Review questions 15
Advanced questions 15
Take a closer look
Web activity
Assignment 14

Part 4: Elements of employment law

17 Rights at work: The contract of employment and
health and safety at work
Introduction
The employment contract: a contract of service
The law of tort: employers’ civil liability for industrial injuries
Criminal law regulation of safety in the workplace
Chapter summary
Review questions 16
Advanced questions 16
Take a closer look
Further reading
Web activity
Assignment 15

18 Rights at work: Protection against discrimination

in employment
Introduction
The Equality Act 2010: the core provisions
The operation of the Equality Act 2010
Age
Disability
Gender re-assignment
Marriage and civil partnership
Pregnancy and maternity
Race
Religion or belief
Sex
Sexual orientation
Enforcing anti-discrimination legislation
 The promotion of equality
The Equality and Human Rights Commission
Chapter summary
Review questions 17
Advanced questions 17
Take a closer look
Further reading
Web activity
Assignment 16

19 Rights at work: Protection against termination of

employment by wrongful and unfair dismissal
including redundancy
Introduction
Wrongful dismissal
Unfair dismissal
Redundancy
Transfer of undertakings
Claiming at the employment tribunal
Chapter summary
Review questions 18
Advanced questions 18
Take a closer look
Web activity
Assignment 17

Part 5: Introduction to company law

20 Business organisations
 Introduction
Legal personality, incorporation and limited liability
The sole trader
The partnership
The registered company
The impact of the Human Rights Act 1998 (HRA 1998) on
business organisations
Conclusion
Chapter summary
Review questions 19
Advanced questions 19
Take a closer look
Web activity
Assignment 18

21 Forming a registered company

Introduction
Promoting the company
Forming the company
Buying a company ‘off the shelf’
Dissolution of the company
Chapter summary
Review questions 20
Advanced questions 20
Take a closer look
Web activity
Assignment 19
22 Running the company: Raising and maintaining
capital
Introduction
Share capital
Loan capital
Chapter summary
Review questions 21
Advanced questions 21
Web activity
Assignment 20

23 The management and governance of companies:

Functions of directors, secretary and auditors
Introduction
The directors
The company secretary
The auditors of the company
Insider dealing
Chapter summary
Review questions 22
Advanced questions 22
Take a closer look
Web activity
Assignment 21

24 Company meetings, shareholder participation

and minority protection
Introduction
General meetings
 Protecting the rights of minority shareholders
Chapter summary
Review questions 23
Advanced questions 23
Web activity
Assignment 22

Part 6: General principles of intellectual

property law

25 Statutory intellectual property protection:

Copyright, designs, patents and trade marks
Introduction
Statutory regulation of intellectual property
The impact of EU law and international treaties on intellectual
property rights
Chapter summary
Review questions 24
Advanced questions 24
Take a closer look
Web activity
Assignment 23

26 Common law protection of intellectual property:

Passing off, malicious falsehood and breach of
confidence
Introduction
Passing off
Malicious falsehood
 Breach of confidence and protection of privacy
Remedies for passing off, malicious falsehood and breach of
confidence
Chapter summary
Review questions 25
Advanced questions 25
Take a closer look
Web activity
Assignment 24

Appendix 1: Additional resources

Appendix 2: Worth thinking about? and Review questions –
outline answers
Index
 Publisher’s
acknowledgements

Text Credits:
28 European Union: Treaty of Nice, Article 203; 38 Incorporated
Council of Law Reporting: Royal College of Nursing v DHSS
(1981, HL) Lord Diplock; 41 Court of Appeal: Young v Bristol
Aeroplane Company (1944); 45 European Convention on Human
Rights: ECtHR (Hirst v UK (No. 2) (2005)); 46 High Court of
England and Wales: DSD and NBV v Commissioner of Police for
the Metropolis (2014, EWHC); 47 European Court of Human
Rights: Steel v United Kingdom 28 EHRR 603; 66 The National
Archives: Equality Act 2010 Section 144(1); 69 The National
Archives: Employment Rights Act 1996; 83 Court of Appeal: Bigg
v Boyd Gibbons (1971, CA) Russell LJ; 85 Court of Appeal:
Blackpool & Fylde Aero Club v Blackpool Council (1990, CA)
Bingham LJ; 87 The National Archives: Sale of Goods Act 1979, s
57; 87 Court of Appeal: Dickinson v Dodds (1876, CA) James LJ;
90 Court of Appeal: Branco v Cobarro (1947, CA); 94 The National
Archives: Electronic Commerce (EC Directive) Regulations 2002
Regulation 11; 113 Court of Appeal: Wilson and Another v Burnett
(2007, CA) Judge Nelligan; 114 European Court of Human Rights:
Steel v United Kingdom 28 EHRR 603 ; 115 Court of Appeal:
Kleinwort Benson v Malaysia Mining Corporation Bhd (1989, CA)
MMC Metals Ltd; 117 Law Commission: 1996, the Law
Commission (Report No. 242); 130 Court of Appeal: Hong Kong Fir
Shipping Co. Ltd v Kawasaki Kisen Kaisha (1962, CA) Diplock LJ;
131 Court of Appeal: Lombard North Central plc v Butterworth
(1987, CA) Mustill LJ; 131 Incorporated Council of Law
Reporting: Schuler AG v Wickman Machine Tool Sales (1974, HL)
Lord Reid; 133 Court of Appeal: Edmund-Davies LJ; 144 The
National Archives: Sale of Goods Act 1979 s 2(1); 147 Court of
Appeal: Harlingdon & Leinster Enterprises v Christopher Hull Fine
Arts (1990, CA); 147 The National Archives: Section 14(2B); 152
Incorporated Council of Law Reporting: J & H Ritchie Ltd v Lloyd
Ltd (2007, HL) Lord Brown; 152 The National Archives: The Supply
of Goods and Services Act 1982 (SGSA 1982); 156 The National
Archives: Section 11 of UCTA 1977; 158–159 Court of Appeal:
Watford Electronics v Sanderson (2001, CA) Chadwick LJ; 174
Thomson Reuters Corporation: Gordon v Selico (1986) Goulding
J; 175 Incorporated Council of Law Reporting: Edgington v
Fitzmaurice (1885) Bowen LJ; 185 Incorporated Council of Law
Reporting: Bell v Lever Bros (1932, HL) Lord Atkin; 190 Court of
Appeal: Lewis v Averay (1971, CA) Lord Denning MR; 194 Privy
Council of the United Kingdom: Pao On v Lau Yiu Long (1979)
Lord Scarman; 213 High Court of Justice: Proactive Sports
Management Ltd v Wayne Rooney and Others (2010); 217 The
National Archives: s 3 of the Sale of Goods Act 1979; 219
LexisNexis: Proform Sports Management Ltd v Pro-Active Sports
Management Ltd (2007); 244–245 Incorporated Council of Law
Reporting: Transfield Shipping Inc. v Mercator Shipping Inc. (2008,
HL); 249 Court of Appeal: Milner and Milner v Carnival plc t/a
Cunard (2010); 251 High Court of England and Wales: Azimut-
Benetti SpA v Healey (2010) per Blair J; 263 High Court of England
and Wales: Ramsay v Love (2015) Morgan J; 266 Court of Appeal:
Quinn V CC Automotive Group (T/A CARCRAFT) (2010, CA); 274
The National Archives: MCA, s 11; 275 The National Archives:
The Factors Act 1889, s 1; 344 House of Lords: Donoghue v
Stevenson; 282 House of Lords: Donoghue v Stevenson Lord
Atkin; 284 House of Lords: Donoghue v Stevenson Lord Atkin; 289
Incorporated Council of Law Reporting: Bolam v Friern Hospital
Management Committee Lord Justice Denning; 290 The National
Archives: The Compensation Act 2006 Section 1; 290 Court of
Appeal: Sutton v Syston Rugby Football Club Ltd (2011) Longmore
LJ; 290 Court of Appeal: Watt v Hertfordshire County Council (1954
CA) Denning LJ; 295 House of Lords: Lord Hoffmann; 309
Incorporated Council of Law Reporting: Caparo v Dickman (1990,
HL) Lord Oliver; 309 Incorporated Council of Law Reporting:
Sandhar v Department of Transport (2004) May LJ; 313 The
National Archives: Defective Premises Act 1972 (DPA). Section
1(1); 317 House of Lords: Hedley Byrne v Heller (1963), the House
of Lords; 323 House of Lords: Rothwell v Chemical & Insulating Co
Ltd [2008] AC 281; 329 Court of Appeal: North Glamorgan NHS
Trust v Walters (2002, CA) Ward LJ; 330 Court of Appeal: Taylor v
A. Novo UK Ltd (2013, CA) Lord Dyson, Master of the Rolls; 330
Law Commission: 1998 a Law Commission Report (No. 249,
Liability for Psychiatric Damage); 330–331 House of Lords: Stovin v
Wise (1996) Lord Goff; 332 Incorporated Council of Law
Reporting: Smith v Littlewoods Organisation (1987, HL) Lord
Griffiths; 338 Cambridge University Press: May LJ said in Merret v
Bubb (2001); 344 Incorporated Council of Law Reporting:
Donoghue v Stevenson (1932, HL) Lord Atkin; 344 House of Lords:
Lord Atkin; 351 The National Archives: Consumer Protection Act
1987 Section 2(1); 364 The National Archives: Occupiers’ Liability
Act 1957; 364 The National Archives: Occupiers’ Liability Act 1957
s 1(3); 370 The National Archives: The Occupiers Liability Act
1957, Section 2(5); 370 The National Archives: Contract Terms Act
1977, Section 2(3); 375 Court of Appeal: Sturges v Bridgeman
(1879) Thesiger J; 383 House of Lords: case of Rylands v Fletcher
(1865) Blackburn J; 383 High Court of Justice: RDF Media Group
plc v Clements; 384 Incorporated Council of Law Reporting:
Read v Lyons (1947) Lord Porter; 402 The National Archives:
Employment Rights (Employment Particulars and Paid Annual
Leave) (Amendment) Regulations 2018; 409 Incorporated Council
of Law Reporting: Malik v BCCI (1998) Lord Steyn; 409
Incorporated Council of Law Reporting: RDF Media Group plc v
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12 Abbama Abbema 1
7 bloienden bloeienden 1
5, 5 Weesper-kerspel Weesper-Kerspel 1
9 welden welken 1
2 innundatiën inundatiën 1
3 Weespers-karspel Weesper-Kerspel 3
3 Weesper kerspel Weesper-Kerspel 2
5 Weessp Weesp 1
6 een eens 1
10 Armeesters Armmeesters 1
11 Oud Loosdrecht Oud-Loosdrecht 1
12 Mijnde Mijnden 1
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