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Praise for Law for Business Students
‘A highly accessible and clearly written book for non-law students.’
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)
Contains public sector information licensed under the Open Government Licence
(OGL) v3.0. http://www.nationalarchives.gov.uk/doc/open-government-
licence/version/3/.
Contains Parliamentary information licensed under the Open Parliament Licence
(OPL) v3.0. http://www.parliament.uk/site-information/copyright/open-parliament-
licence/
Pearson Education is not responsible for the content of third-party internet sites.
Contents
Publisher’s acknowledgements
Preface
Table of cases
Table of statutes
Table of statutory instruments
Table of European and International legislation
Companion Website
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
1 Study skills
Introduction
Starting to study
Good study habits
Writing law assignments
Revision and examination technique
Conclusion
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
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
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
Alan Clements (2007) Livesey QC; 423 The National Archives:
Equality Act 2010 Section 13; 424 The National Archives: Equality
Act 2010 Section 14; 424 The National Archives: Equality Act 2010
Section 19; 428 The National Archives: Equality Act 2010 Section
13(2); 429 The National Archives: Equality Act 2010 Section 6(1);
431, 432, 440 The National Archives: Equality Act 2010 Section
13(2); 437 The National Archives: Equality Act 2010 Section 9(1);
441 LexisNexis: Grainger plc and Others v Nicholson (2010) Burton
J; 444 European Union: G4S’s employee code of behaviour; 454
The National Archives: Equality Act 2010 Section 9; 455 Court of
Appeal: English v Thomas Sanderson (2008), Collins LJ; 457 The
National Archives: Equality Act 2010 Section 149; 458 The
National Archives: Equality Act 2010 Section 153; 466 The
National Archives: Employment Rights Act (ERA 1996) s 86; 469
The National Archives: Section 98 of the ERA 1996; 480 HM
Courts & Tribunals Service: Holis Metal Industries v GMB (2007)
HHJ Ansell; 497–498 The National Archives: Companies Act 2006;
502 Incorporated Council of Law Reporting: Williams and Another
v Natural Life Health Foods Ltd and Mistlin (1998, HL) Lord Steyn;
515–516 The National Archives: Section 51 of the CA 2006; 516
The National Archives: Companies Act 2006 ss 9–13; 520 Court
of Appeal: Bell Houses v City Wall Properties Ltd (1966 CA); 520
The National Archives: The Companies Act 1985, providing (s 3A);
520 The National Archives: CA 2006 s 31(1); 524 The National
Archives: CA 2006, s (41) 2; 533 The National Archives: The
Companies Act s 610; 545 The National Archives: Small Business,
Enterprise and Employment Act (SBEEA) 2015, s 251; 550 The
National Archives: CA 2006 s 170(1); 550 The National Archives:
CA 2006 s 172(1); 551 The National Archives: Insolvency Act
1986, Section 174(2); 573 The National Archives: CA 2006 s 308;
573 The National Archives: CA 2006 s 311; 578 The National
Archives: CA 2006 s 994; 579 The National Archives: CA 2006 s
996; 587 The National Archives: Designs and Patents Act 1988
(CDPA 1988) s 1; 592 The National Archives: Section 213(2) of the
CDPA 1988; 620 Incorporated Council of Law Reporting: A-G v
Guardian Newspapers (No. 2) (1990, HL), Lord Keith; 622 The
National Archives: House of Lords (Douglas and Another v Hello!
Ltd (No. 3) (2007)) Lord Hoffmann; 622 Court of Appeal: Law Lords
in Douglas and Another v Hello! Magazine Ltd (No. 3) (2007);
Preface
George Whitefield.
A N S W ER
TO
L E T T ER
TO
L E T T ER
To the Right Reverend
My Lords,
Who the real author of these papers may be, I am not yet able for
a certainty to find out. But I had reason to believe, that my Lord of
London was concerned in composing or revising them. That I might
not be mistaken, after the publication of the advertisement, I wrote
his Lordship a letter ¹, wherein I desired to know, whether his
Lordship was the author of this paper or not, and also desired a
copy. His Lordship was pleased to send word by my friend, who
carried the letter, that “I should hear from him.” Hitherto his Lordship
has not favoured me with an answer. Only some time ago, one Mr.
Owen, a printer, in Amen-Corner, Pater-noster Row, who is printer to
my Lord of London, left a letter ² for me, wherein he informed me,
that he had orders from Several of the Bishops to print the
Observations on the conduct and behaviour of the Methodists (with
some few Additions) for their use; and when the impression was
finished, I should have a copy. Why my Lord of London, or the
several other Bishops concerned, should conceal their names, or
why a copy should be denied me, so long after the papers had been
printed, I leave the world to judge. I cannot think such a way of
proceeding can gain your Lordships any credit from the public, or
any thanks from the other Bishops who have not interested
themselves in this affair, and who, I believe, are more noble, than to
countenance the publication of any such performance.
¹ My Lord,
London, February 1, 1744.
Simplicity becomes the followers of Jesus Christ, and
therefore I think it my duty to trouble your Lordship with
these few lines. I suppose your Lordship has seen the
advertisement published by me, about four days ago,
concerning some anonymous papers, which have been
handed about in the societies for some considerable time.
As I think it my duty to answer them, I should be glad to be
informed whether the report be true, that your Lordship
composed them, that I may the better know to whom I may
direct my answer. A sight also of one of the copies, if in
your Lordship’s keeping, would much oblige, my Lord,
Your Lordship’s most obliged, dutiful son and
servant,
George Whitefield.
² Sir,
February 3. 1744.
My name is Owen. I am a printer in Amen-Corner; and
I waited upon you to let you know, that I have had orders
from several of the Bishops, to print for their use, such
numbers of the Observations upon the conduct and
behaviour of the Methodists, (with some few additions) as
they have respectively bespoken. And I will not fail to wait
upon you with one copy, as soon as the impression is
finished. I am, Sir,
Your most obedient, &c.
It is a weighty thing with me, my Lords, to have insinuations
made, or queries put to me, in respect to my practice and doctrine, in
such a public manner, by persons that are placed at the head of the
church. It is true, your Lordships have not put queries to me in your
own names; but as the author has concealed his, and these papers
are printed by your Lordships orders, you have thereby adopted
them for your own; consequently, I am put under a necessity of
directing this letter as I have done. And I can assure your Lordships,
that with great deference to the dignity of your office, after earnest
prayer, with I trust some degree of humility, and unfeigned simplicity
of heart, I now sit down to perform my promise, to give a candid and
impartial answer to the fore-mentioned papers, which were sent me
last week, (collected into a pamphlet) by Mr. Owen; and I suppose,
by your Lordships order.
I never yet was, and hope never shall be so far left to lean to my
own understanding, as to fancy myself infallible. Young as I am, I
know too much of the devices of Satan, and of the desperate
wickedness and deceitfulness of my own heart; not to be sensible,
that I am a man of like passions with others, and consequently may
have sometimes mistaken nature for grace, imagination for
revelation, and the fire of my own temper, for the pure and sacred
flame of holy zeal, which cometh from God’s altar.—If therefore,
upon perusing the pamphlet, I find that I have been blameable in any
respect (as in all probability I may) I will not only confess it, but return
hearty thanks both to the compiler and your Lordships, though
unknown.
And if the title-page is so bad, I fear the design and scope of the
pamphlet itself is much worse. For is it not to represent the
proceedings of the Methodists as dangerous to the church and state,
in order to procure an act of parliament against them, or oblige them
to secure themselves by turning dissenters?
Though the reign, my Lords, of King Charles II. wherein the acts
before referred to were made, was not the most mild and moderate
in religious matters, yet your Lordships very well know the famous
trial of Mede and Penn; and, after the jury had been confined a long
time, they brought them in, guilty only of speaking in Gracechurch-
street. And if Quakers met with so much lenity under the reign of
King Charles, what liberty of preaching in fields, and elsewhere, may
not the loyal ministers and members of the church of England, nay,
protestant Dissenting teachers also, expect under the more gentle
and moderate reign of his present Majesty King George, who, as I
have been informed, has declared, “there shall be no persecution in
his days.” May the crown long flourish on his royal head, and a
popish Pretender never be permitted to sit upon the English throne!
To this, I believe, all the Methodists will heartily say, Amen, and
Amen.
At the same time, my Lords, I would not say any thing that might
any way encourage disorders; neither would I persuade the
Methodists to leave their own parish-churches when the sacrament
is administered there. On the contrary, I would have them take the
author’s advice, page 6, paragraph 6, “If particular persons are
disposed to receive weekly, when the sacrament is not administered
at their own parish-church, to repair privately to the church nearest
their own, where the sacrament is administered every Lord’s-day,
having first signified their names to the minister, as the rubrick
directs.” This, I believe, they will readily comply with. For I cannot
think with this author (in the same paragraph), that the reason of
their coming in such numbers is, that they may have the “vain
pleasure of appearing together in a body, and as a distinct sect.” We
would rather, according to the rules of that charity which hopeth all
things for the best, believe that they come together in such
companies to animate and encourage one another. Dr. Horneck, I
remember, in his account of the primitive christians, remarks, that
“where you saw one christian, you might generally see more.” And is
it not delightful, my Lords, to behold a communion table crouded? Do
not such as complain of it, discover something of the spirit of those
Pharisees, who were angry when so many people brought their sick
to be healed by our Lord Jesus on the sabbath-day? For I cannot
think, that the ministers complain of this, only on account of their
being hereby “put under the difficulty (paragraph 5, page 6.) either of
rejecting great numbers as unknown to them, or administering the
sacrament to great numbers, of whom they have no knowledge,”
because it is too notorious that hundreds receive the blessed
sacrament, both in London and other places, where there are no
Methodists, whom the minister knows little or nothing at all about,
and takes no pains to enquire after. O that the Author’s mentioning
this, may be a means of stirring up the clergy to approve themselves
good shepherds, by seeking, as much as in them lies, to know the
state of all that come to the holy communion! Glad am I, my Lords, to
find that the author, in this edition, hath left out the complaint which
was in the copy I first read, of such crowds coming to receive the
sacrament, “because the ministers who are afternoon-lecturers, were
thereby put under the hardship of not having time for necessary rest
and refreshment, between morning and evening duties. For might
not our Lord say unto them, “You slothful servants, cannot you
labour for me one day in a week? Cannot you lose one meal to feed
my lambs, without complaining of it as an hardship?” Surely none
can make such a complaint, but such “whose god is their belly,
whose glory is their shame, who mind earthly things.” But I need not
mention this, because the Author himself seems ashamed of it.