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Table of Contents
Learning Outcome 1:........................................................................................................4
Question 1:................................................................................................................................4
- What type of legal source it is?..................................................................................................4
- Can the consumer reject the goods? Which section contains such probision?..........................4
Question 2:................................................................................................................................4
- Who sued whom in this case?............................................................................................4
- Which court decided this case?..........................................................................................5
- Which Convention had been used?....................................................................................5
- Which UK courts would be bound by this case?.................................................................5
Question 3:................................................................................................................................5
Cabinet in Making Legislation......................................................................................................5
- White Papers and Green Papers.........................................................................................6
- Preparation of the bill.........................................................................................................6
- Statutory Instruments.........................................................................................................6
Cabinet in Making Case Law.........................................................................................................6
Question 4:................................................................................................................................7
- Literal Rule..........................................................................................................................7
- Mischief Rule......................................................................................................................7
Learning Outcome 2:........................................................................................................8
Question 5:................................................................................................................................8
- Issue....................................................................................................................................8
- Rule:....................................................................................................................................8
- Application..........................................................................................................................8
- Conclusion..........................................................................................................................9
Question 6:................................................................................................................................9
- Issue....................................................................................................................................9
- Rule:....................................................................................................................................9
- Application:.......................................................................................................................10
- Conclusion:.......................................................................................................................10
Question 7:..............................................................................................................................10
- Issue..................................................................................................................................10
- Rule:..................................................................................................................................10
- Application:.......................................................................................................................11
- Conclusion........................................................................................................................13
Learning Outcome 3:........................................................................................................13
Business Organization:.............................................................................................................13
- Sole trader........................................................................................................................13
- Partnership.......................................................................................................................13
- Registered company.........................................................................................................14
Question 8:..............................................................................................................................15
- Issue..................................................................................................................................15
- Rule...................................................................................................................................15
- Application:.......................................................................................................................15
- Conclusion:.......................................................................................................................16
Question 9:..............................................................................................................................16
- Power of Company Directors............................................................................................16
- Duties of Company Directors............................................................................................17

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 Question 10:............................................................................................................................19
Learning Outcome 4:........................................................................................................21
Question 11:............................................................................................................................21
- Issue:.................................................................................................................................21
- Rule:..................................................................................................................................21
- Application:.......................................................................................................................21
- Conclusion:.......................................................................................................................21
Question 12:............................................................................................................................22
Differences between arbitration and lititgation.........................................................................22
Advantages.................................................................................................................................22
Disadvantages............................................................................................................................23
Reference:.......................................................................................................................24

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Learning Outcome 1:
Question 1:
- What type of legal source it is?
The type of legal source in this case is Legislation. To legislate is to engage in
the act of making laws. When taken together, the Latin words “legis” and “latum”
imply "making" or "enacting," respectively. This refers to the process by which a
supreme or sovereign power establishes norms for other members of society to obey.
Legislation is the act of making laws by an intelligent and capable body of people.
The process of developing laws, in which an appropriate body is charged with creating
and enforcing those laws, is known as legislation. Because only one group is
responsible for establishing laws, and because those laws are codified and very
impossible to change, the rigorous idea of lawmaking is sometimes characterized as a
form of authoritarianism (Asthana, 2022).
- What type of legal source it is?
The UK organ that made legislation legal source is the parliament. The three
main parts of Parliament are the House of Commons, the House of Lords, and the
Monarchy. The two Houses are where the bulk of legislative business gets done in
Parliament. Usually, the other House has to accept whatever the House does (UK
Parliament, 2023).
- Can the consumer reject the goods? Which section contains such probision?
According to the Consumer Rights Act 2015, if the trader delivers the
consumer less quantity of goods than the contract between them, the consumers are
able to reject receiving the goods. Section 2, Goods, contract number 25 (delivery of
wrong quantity) contains the provision to answer the question.

Question 2:
- Who sued whom in this case?
In this case, Wong sued Basfar because Wong is the appellant and Basfar is the
respondent. The appellant is the person or organization that initiates a case in the

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 Court of Appeal. The term "respondent" refers to the party that is the subject of an
appeal and must provide a rebuttal to the arguments made by the appellant.
- Which court decided this case?
This case is decided by Supreme Court. As the highest court in the land, the
Supreme Court of the United Kingdom also contributes significantly to the
evolution of the law. The Supreme Court is an appeals court; hence it cannot hear a
case until a lower court has already issued a ruling on the issue at hand (The
Supreme Court, 2023).
- Which Convention had been used?
In this case, the 1961 Convention had been used to decide it. Convention on
the Reduction of Statelessness was adopted on August 30, 1961, and officially
entering into force on December 13, 1975.
- Which UK courts would be bound by this case?
All UK courts would be bound by this case except for Supreme Court, because
Supreme Court judged and gave the decision for this case.
Question 3:
Cabinet in Making Legislation
Legislation in the UK can be divided into two categories:
- Acts of Parliament or Statutes are examples of primary legislation.
- Statutory Instruments (SIs, sometimes known as Codes, Orders, Regulations,
and Rules) are a type of secondary legislation.
Primary legislation is divided into two categories:
- For public general acts, you should describe the goals of the law and the
circumstances in which it will be applied.
- Individual and Geographical Acts are those that have an effect on a specific
area, person, or organization.
Secondary legislation
The word "Statutory Instrument" (SI) is used interchangeably with "Order,"
"Regulation," "Rule," "Code," and "etc." Legislation that is delegated, subsidiary, or
subordinated is another name for them. Ministers make these kinds of decisions on
behalf of the government, using authority granted by Parliament.

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 - White Papers and Green Papers
The government issues White Papers to explain its policies and, in some
cases, to propose new laws that will be discussed in committee before being formally
tabled as legislation. There may be a comment section for some White Papers
(Parliament, 2010).
Proposals still in the brainstorming phase are laid out in "Green Papers" for
public discussion. Discussion papers are not always made public; some are distributed
exclusively to a select group of experts. The relevant Department must take
responsibility for this. The Stationery Office is a common source for papers with a
price and ISBN attached to them. Others will require an application to the relevant
agency. The external links in this section worked properly at the time of publication,
but have not been updated since (Parliament, 2010).
- Preparation of the bill
If a bill is scheduled for consideration, the relevant agency will form a bill team
to oversee its development and eventual passage through Congress. There will be a
bill manager and other government employees involved in this process. The
department's legal counsel and the officials who have primary responsibility for the
bill's policies are the other major participants.
- Statutory Instruments
The most prevalent type of delegated legislation is a Statutory Instrument (SI).
Ministers or other individuals or organizations with the authority to do so in an Act of
Parliament draft and issue SIs. An SI is a container for enacting new laws. It includes
the measures desired by Ministers or other authorized organizations and makes them
law. Regulations, Orders, and Rules are common examples of such measures.

Cabinet in Making Case Law

Case law, or common law, is the body of law created by judges to resolve
conflicts between private parties. It is distinct from statute law, which is created by
Parliament and lays out rules for the courts to implement. Common law, as contrast to
statutory law, is created by judges. When a person violates a legal obligation they
have to another, they have committed a tort. Although the protection of individuals
and private property is the fundamental function of tort law, it has been used to curb
environmental contamination. In case law, Government does not have any role.

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Question 4:
- Literal Rule
Based on the rules of statutory interpretation, literal rule states that courts must
take the words of a statute at face value and apply them in accordance with their
ordinary and natural sense. Assuming that Parliament knows what it sought to
accomplish, courts following the literal rule are not obligated to provide a gloss on the
wording or try to otherwise make sense of the statute.
According to the dictionary, a press conference is an interview given by a
notable person to the press to make an announcement or answer questions.
Meanwhile, public meetings are a tried-and-true method for citizens to gather for the
purpose of voicing their views, listening to an expert or proposed plan, learning about
the issue at hand collectively, or working together to find a solution.
They are both gatherings of people with a common interest in some topic.
There are no hard and fast laws defining a meeting or a conference, but the primary
distinction between the two is typically the number of participants. Since the
difference in this case is not important, press conference and public meeting are stated
with the similar meaning. Therefore, the press conference is within the scope of Act
since public meeting, in this case, can be seemed as a press conference.
- Mischief Rule
According to the rules of statutory interpretation, the Mischief Rule holds that a
statute is enacted to correct some deficiency or wrongdoing in the law that existed
before the law was changed. The Act should be interpreted by the court in a way that
furthers this corrective objective.
The newspaper was trying to persuade that public meeting, in this case, is
similar as press conference, whilst the criticized company was trying to explain that
there was no press conference in the scope of Act. Based on a section of Law of Libel
Amendment Act 1888, the newspaper that public a fair and accurate report of any
event can be privileged. Therefore, the sued newspaper was innocent because they
provided an accurate information about the company. There was no need of a press
conference because the public meeting, in this case, was privileged.

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Learning Outcome 2:
Question 5:
- Issue
The owner of GFA stated that they were no longer doing the promotion, so
Paul could not get the annual membership worth €1,500 as the advertisement stated.
- Rule:
Offer: is a declaration of intent to enter into a legally binding contract on
specified terms, and it becomes effective upon acceptance by the intended addressee.
The acceptance of an offer constitutes the final step in the formation of a legally
binding contract (Ltd, 2023).
Acceptance: is a firm and unqualified affirmation of agreement with the offer's
terms. Once again, the offeree must show concrete evidence of their intent to be bound
by the offer's terms for it to be accepted (Ltd, 2023).
Invitation to treat: Any expression of intent to negotiate, known as an
"invitation to treat," is not an offer and cannot be accepted to create a legally binding
contract (Halsbury's Laws Of England , 2023).
Based on a case the professor mentioned in class, there was a company that
advertised its medicine with a promise that if the consumers were still sick after 14
days, the company would pay them back $100, and they have a budget up to $1000.
However, there was a woman used this medicine and still got sick after 14 days, she
sued the company even when there was no acceptance between her and the company.
In this case, the court judged that the company had to pay the woman $100 because
this company showed that it was willing to pay and it also has its own budget only for
circumstance like this.
- Application
The advertisement of GFA that uploaded on its public Facebook page is and
offer, but it does not imply who is offered. In addition, Paul, the one who completed
the challenge in under the required 7 minutes, did not inform that he would do the
challenge. Therefore, there is no acceptance between Paul and GFA that should lead
to no legally binding contract was formed. However, based on the case above, the
courts stated that there was an acceptance, even though the woman did not inform that

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to the company before 14th day. The court explained that if everyone that used this
company’s medicine had to call in order to inform that they are using its products, that
would be too busy for the company to do so. Therefore, the claimant can call the
defendant, the company, when the medicine did not work, and the contract between
them can still be seemed as a legally binding contract.
- Conclusion
According to the case introduced by the professor, it can apply on this case,
since there is a similarity between this case and the case above when Paul and the
GFA had no acceptance. Nevertheless, GFA also did not inform that it was no longer
doing the promotion until Paul completed it. Therefore, Paul, in this case, had not to
notify GFA that he would accept the challenge, he only needed to tell them after he
accomplished the challenge. This still created a legally binding contract between Paul
and GFA, so GFA had its responsibility to give Paul the free annual membership as
what it offered on Facebook.

Question 6:
- Issue
The catering service that Selena contracted delivered late, since the service
contracted to provide a buffet at 6p.m, and they actually arrived at 10p.m, when the
party already ended.
- Rule:
Conditions: are the duties, terms, and stipulations that are placed onto one
party by another. Constant adherence to necessary preconditions is required.
Conditions are commitments that one party must make, such as carrying out an action
or responsibility. This is a material event because it impacts the contract because of its
necessity.
Warranty: A warranty is a written guarantee given by a seller to a purchaser in
response to certain claims made by the purchaser. All statements made must be true. A
seller's promise to repair or replace a product free of charge within a certain time
frame if it fails to operate as promised is an example of a warranty. The sold product
is guaranteed to be of satisfactory quality and function.

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 - Application:
a. Allow the repeat performance?
According to the Article 55 of Consumer Rights Act 2015, “the consumer
cannot require repeat performance if completing performance of the service in
conformity with the contract is impossible.” Therefore, in this case, Selena cannot
request repeat performance.
b. Repudiate contract and claim damages?
The breach, in this case, is not fundamental because the catering service
delivered the buffet 4 hours later than the time they contracted. Besides, when the
buffet was delivered, the party was going to end and Selena also had her schedule to
move to the other city for new job the morning after the party. This was not a
reasonable time for Selena to accept the late service, and that was the catering service
fault. This leads to the service violated the main terms of the contract. Therefore, the
Selena is able to repudiate the contract and claim damages.
- Conclusion:
Selena cannot request repeat performance, according to the Article 55 of
Consumer Rights Act 2015, but she is able to repudiate the contract and claim
damages.
Question 7:
- Issue
High Heaven was a big resort that has a n amusement park, and even when they
know that some cabins in the big wheel was not disconnected from the wheel, they
still did not upgraded their maintenance. That led to the accident which causes many
damages to Jessica, Belinda, Matthew, and Tom, so that they decided to sue the resort.
- Rule:
Theory of Tort Neglience: When someone is negligent, they are held liable
for harm that could have been avoided with reasonable care. Although the defendant
may not intentionally cause harm, the negligence causes it to occur. Since the
defendant acted negligently despite not intending to inflict any harm, he or she must
bear responsibility for the resulting harm.

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 Nervous shock: means a psychiatric condition or injury suffered by an
individual as a result of events which have occurred due to the intentional or negligent
acts or omissions of another person.
Cases support answering the questions:
Case 1: The claimant's car collided with the defendant's due to the defendant's
negligent driving. The cars were just slightly damaged, and the claimant seemed
unharmed. Soon later, however, the ME (myalgic encephalomyelitis, thought to be a
mental illness at the time) that had been in remission for so long returned. Claims that
the defendant was negligent in his driving caused the plaintiff's injuries, thus the
defendant owes the plaintiff the same level of care that he would give to any other
road user. The claimant was not required to show that psychological harm will occur.
There was no need to differentiate between physical and mental harm under these
conditions.
Case 2: After witnessing her husband and children severely injured due to the
defendant's negligent driving, the claimant suffered from significant depression and
personality disorders. Her claim was successful. She wasn't there when the accident
happened, but what she saw in the casualty department and the hour that followed
made her reaction predictable and her sufficiently proximate.
Case 3: The defendant had poorly maintained the crane that the plaintiff was
using. He witnessed the big cargo linked to the crane cable snap and plummet into the
hold. An acute nervous breakdown was brought on by his horror at the fate of his
coworkers, who had miraculously spared damage. Since the claimant's reaction was
triggered by his guilt over contributing to the accident and his reasonable anxiety for
the safety of his coworkers, the employer must have his/her responsibility.
- Application:
First, High Heaven had a duty of care with Jessica, Belinda, Matthew, and
Tom, as the resort managers know about the poor maintenance of their amusement
park, which led to the disconnection between the cabins and the wheel. However, they
still did not fix it and the accident occurred. This is the breach of High Heaven’s
managers duty with their customers. As the accident happened, the four customers,

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Jessica, Belinda, Matthew, and Tom suffered either physical or mental damages,
because of the breach of the resort’s duty.
Belinda, in this case, was the primary victim, since she was sitting in the
disconnected cabin that got accident and caused seriously injured. The owners of High
Heaven should have foreseen that the poor maintenance could lead to the accident, not
only with Belinda, but also with any other people. According to the “case 1” above,
High Heaven, defendant in this case, had the same duty of care to Belinda, the
claimant, as he would to any other fellow wheel user. In conclusion, Belinda could sue
and claim damages from High Heaven for the accident happened with her.
Jessica could be seen as a secondary victim, although she was not there when
the accident occurred. This is because afterwards she saw her injured daughter in the
hospital, and got nervously shocked. Based on “case 2,” Jessica could successfully sue
the resort because she did not need to get physically injured, what she saw when her
daughter got injured could lead to many mental health disorders and this is easily
foreseeable.
High Heaven breached its duty of law with Matthew, because it did not do the
maintenance of the amusement park. This led to the accident and directly affected the
person who control the wheel, since he did not have any idea about the disconnected
cabins. According to “case 3,” since the claimant's reaction was triggered by his guilt
over contributing to the accident and his reasonable anxiety for the safety of the
customers, the employer must have his/her responsibility. Therefore, Matthew’s claim
would be successful.
Tom was the only one sitting in the cabin and did not suffer any physical
injuries, but he was willing to rescue the children. In this case, because High Heaven
breached its duty of care, even Tom did not get any injuries he still got a chance to
claim successfully. Based on “case 1” it was reasonably foreseeable that Tom might
suffer personal injuries if the defendant, High Heaven, was negligent in their
maintenance. It was not necessary for the claimant to prove that psychiatric damage
might result. The distinction between physical and psychiatric injury was irrelevant in
these circumstances. In conclusion, Tom can also sue and claim damages from High
Heaven resort.

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 - Conclusion
All four of Belinda, Jessica, Matthew, and Tom sue and claim successfully
damages from High Heaven resort, since the resort breached its duty of care on them.

Learning Outcome 3:
Business Organization:
Business organization consists of three main forms which are sole trader,
partnership, and registered company. In partnership, there are three more types of
partnership that are general partnership, limited partnership, and limited liability
partnership. Also, registered company includes two more kinds which are public
company and private company (Riches et al., 2009).
- Sole trader
A Sole trader can be defined as one individual runs a firm on their own.
Despite having complete control over the company's assets and revenues, a sole trader
is nevertheless responsible for all of its liabilities and stresses (Riches et al., 2009).
- Partnership
General partnership (unlimited partnership) can divide the earnings and the
burdens with a business partner or partners. Of course, this is the case for those who
are considered "equity partners" and share in the firm's revenues and losses
equally not split between partners, as is the case with consultants and employees
(Riches et al., 2009). A written contract between company partners, known as a
partnership agreement, is common practise since it serves as an effective record of the
parties' agreement concerning the firm. However, a written agreement is not required;
a verbal agreement would do, and in fact, a partnership can be inferred from action in
some instances (Riches et al., 2009).
A limited partnership can be established as a legal structure for conducting
business. As long as one partner assumes entire responsibility for the firm's inability
to pay its debts, the other partners can enjoy limited culpability. This means that
individuals are only liable for the amount of money they put into the business and not
any more, even if the business goes bankrupt. Generally speaking, commercial
organisations do not make advantage of these types of relationships. Unit trusts and

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other similar collective investment schemes rely on them. The company oversees the
plan and the investments (Riches et al., 2009).
The limited liability partnership (LLP) is the newest entity type for
conducting business. As a separate legal entity from its members, it has filed with the
Registrar of Companies to own the company's assets. Unlike in an unlimited
partnership, members of a limited liability partnership (LLP) are not personally
responsible for the debts of the business. Members risk losing their initial investment
in an insolvent LLP but are under no further obligation to contribute to the LLP's
assets in the event of a shortfall upon winding up. They are not required to make such
a contribution, but they might choose to do so under the LLP agreement if they so
choose. If a member of an LLP withdraws funds within two years of the LLP's
winding up, and the member knew, or should have inferred, that the withdrawal would
raise the likelihood of eventual insolvency, the court may order the member to repay
the funds (Riches et al., 2009).

- Registered company
As a registered company, a company can be formed. This is established
through the Cardiff Registrar of Companies registration process. The Department of
Business, Enterprise, and Regulatory Reform (BERR) runs Companies House as one
of its Executive Agencies.
Commonly, a registered company will consist of two or more people, all of
whom will act as shareholders. Company management and representation requires the
appointment of directors. A private company is not required to have a company
secretary under the Companies Act of 2006, but may choose to have one. The
shareholders or the company's advisors, like an accountant (unless he is also the
company's auditor, who cannot hold an office of profit within the company) or a
lawyer, may make the appointment in a private corporation (Riches et al., 2009).
Under the Companies Act 2006, a public limited company with a certain level
of size is required to appoint a company secretary, usually after a period of public
advertising for the position. When a secretary is appointed in a private company, no

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specific qualifications are needed, but in a public company, certain requirements must
be met.
Question 8:
- Issue
Bill, Donald, and George are partners in an unlimited partnership call KwicPic.
George damaged the painting, so customer want to sue both for tort and for breach of
contract.
- Rule
General partnership (unlimited partnership) can divide the earnings and the
burdens with a business partner or partners. Of course, this is the case for those who
are considered "equity partners" and share in the firm's revenues and losses
equally not split between partners, as is the case with consultants and employees
(Riches et al., 2009).

- Application:
The firm is an unlimited partnership:
In this case, KwicPic has no legal person status so it cannot be held liable for
customer damages. This means that George is the only one who is sign the contract
with this customers, so he will be liable for the customer himself, not Kwicpic.
However, all three general partners of the company, Bill, Donald, and George are
jointly and severally liable for any damages that any partner causes. This means that
all three of them have to be liable to compensate for the customer.

The firm is an LLP:

In this case, KwicPic has legal person and it can be liable for customer
damages. According to Section 6 of Limited Liability Partnership Act 2000, every
partner in KwicPic, now, is the agent of the company and anything they do will be
under the name of KwicPic, not themselves. Therefore, KwicPic will be liable for the
damages that George caused to the customer, and it will compensate the customer
with its own asset. However, in case that KwicPic cannot afford the compensation,

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George is unlimited liable, while Bill and Donald are limited liable. This means
George will be liable for paying the rest to the customer.
- Conclusion:
When KwicPic is and unlimited partnership, all three members are unlimited
liable, so they all have to pay for the compensation for the customer. On the other
hand, when the firm is an LLP, KwicPic will pay the compensation by its asset, and
George will pay the rest, in case the asset of KwicPic is not enough, since he is the
unlimited liable partner.
Question 9:
- Power of Company Directors
According to the Companies Acts 2006, there are six power of directors to
bind the company, which are:
1. The directors' authority to bind the company or authorize others to do so is
presumed to be unrestricted for purposes of a good faith transaction with a
company, despite any limitations that may be set forth in the company's bylaws.
2. For this purpose—
a) a person "deals with" a business if he participates in any activity in which the
business also participates,
b) a person dealing with a company
o is not obligated to inquire as to whether or not the directors' authority to bind
the firm or to authorize others to do so is limited in any way,
o is presumed to have acted in good faith unless the contrary is proved, and
o a director is not considered to be acting in poor faith merely because he knows
that a particular act exceeds his authority under the company's bylaws.
3. The references in the preceding section to limitations on the directors' powers
derived from the company's bylaws include those limitations
a) from a company resolution or shareholder class resolution, or
b) from any agreement between the company's members or classes of
shareholders.
4. This section does not affect a member's ability to file legal action to prevent the
execution of an action that exceeds the directors' authority. However, such

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 proceedings are inapplicable to an act to be performed to satisfy a legal obligation
deriving from a prior act of the company.
5. This section has no bearing on any liability incurred by the directors or any other
person as a result of their exceeding their authority.
6. This section has effect subject to
a. section 41 (transactions with directors or their associates), and
b. section 42 (companies that are charities).

- Duties of Company Directors

According to the Companies Act 2006, duties of company directors consist of 7
duties, which are:
1. Duty to act within powers
A director of a company must
a. Act in accordance with the company’s constitution, and
b. Only exercise powers for the purposes for which they are conferred
2. Duty to promote the success of the company
A director of a company must act in a manner that he believes, in good faith, will
most likely promote the success of the company for the benefit of its members as a
whole, and must have regard for the company's members as a whole.
a. the probable long-term consequences of any decision
b. the interests of the company's employees,
c. the need to cultivate business relationships with suppliers, consumers, and
others, etc.
3. Duty to exercise independent judgment
- A director of a company must exercise independent judgment.
- This duty is not infringed by his acting—
a. in accordance with a properly executed agreement by the company that
restricts its directors' future discretion, or
b. in a way authorized by the company's constitution.
4. Duty to exercise reasonable care, skill, and diligence
- A company director must exercise reasonable care, skill, and diligence.

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- This means the care, skill, and diligence that would be exercised by a
reasonably diligent person with—
a. the general knowledge, skill, and experience that may reasonably be
expected of a person carrying out the director's functions in relation to the
company, and
b. the director's general knowledge, skill, and experience.
5. Duty to avoid conflicts of interest
- A director of a company must avoid situations in which he has a direct or
indirect interest that conflicts with or potentially conflicts with the
company's interests.
- This is especially true for the exploitation of any property, information, or
opportunity (regardless of whether the company could actually exploit the
property or opportunity).
- This duty is not violated if:
a) the situation cannot reasonably be viewed as likely to give rise to a conflict
of interest; or
b) the directors have authorized the conduct.
- Authorization may be granted by the directors, etc.
6. Duty not to accept benefits from third parties
- A director of a company may not accept a benefit from a third party because
of
a) his position as director or
b) his actions (or inactions) as director.
- A "third party" is a person other than the company, an affiliated
corporation, or a person acting on behalf of the company or an affiliated
corporation, etc.
7. Duty to declare interest in proposed transaction or arrangement
- If a director is directly or indirectly interested in a proposed transaction or
arrangement involving the company, he must disclose the nature and extent
of his interest to the other directors.

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 - If a declaration of interest made pursuant to this section is or becomes
inaccurate or insufficient, a new declaration must be made.
- Any declaration required by this section must be made prior to the
transaction or arrangement being entered into, etc.
Question 10:
There are two ways to raise a publics company’s capital which are debt capital
and equity capital.
Debt capital is also known as debt financing. When a company borrows
money and pledges to repay the lender at a later date, this is considered debt capital.
The most common forms of debt capital utilized by businesses are loans and bonds,
which larger companies use to fuel their expansion plans and fund new projects.
Smaller companies may even use credit cards to raise capital. A company seeking to
raise capital via debt may need to approach a bank for a loan, in which case the bank
would become the lender and the company would become the debtor. In exchange for
the loan, the bank charges interest, which the business will record on its balance
statement alongside the loan.
As opposed to financing, equity capital is generated through the sale of
company shares. If taking on additional debt would not be financially prudent, a
company can raise capital by selling additional shares. These may consist of either
common or preferred shares. Common stock provides shareholders with voting rights
but not much else in terms of significance. They are at the bottom of the shareholder
hierarchy, which means their ownership is not prioritized as much as other
shareholders'. In the event of bankruptcy or liquidation, other creditors and
shareholders are paid before the company itself.

Ways of raising capital Pros Cons

Debt capital - Raise much - High amount of
money needed risk
- Exceed the - May become a
company’s burden of
revenue

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 interest
- chances of
default are
higher than
bonds issued by
the government.
Equity capital - the company is - Each
not required to shareholder
repay possesses a
shareholder small portion of
investment the company,
- The cost of thereby diluting
equity capital is ownership.
the return on - In addition to
investment being obligated
expected by to their
shareholders shareholders,
based on the business
performance of proprietors
the larger must ensure the
market. company's
profitability in
order to
maintain a high
stock valuation
and continue
paying
dividends.

20
Learning Outcome 4:
Question 11:
- Issue:
The furniture wholesale company installed a faulty ordering system, so they
have to pay damages, and the court was influenced by an IT expert’s evidence about
the mistake of system.
- Rule:
The High Court is the United Kingdom's third-highest court. It handles civil
cases and appeals of subordinate courts' decisions.
There are expert judges at the Technology and Construction Court (TCC)
who hear cases involving construction, engineering, and technology from all over the
United Kingdom and the rest of the world. Construction, engineering, technology,
environmental concerns, and government contracts all fall under the purview of this
section, as do allegations of professional negligence.
- Application:
a. Which court would have heard this case?
High Court would have heard this case because this case is in the field of civil
cases that is under the judgement of High Court, who appeals of the decision made in
lower courts. Besides, High Court has a branch that is called Technology and
Construction Court (TCC) that has judges with expertise in building, engineering, and
technological negotiations on a domestic and international scale.
b. Which court would have jurisdiction to hear an appeal from the decision?
Court of Appeal would have jurisdiction to hear an appeal from the decision,
because the Court of Appeal is in charge of the Civil Division which hears appeals in
civil and family matters from the High Court, Family Court, senior tribunals and
county courts.
- Conclusion:
High Court would have hear this case, but the Court of Appeal would have
jurisdiction to hear an appeal from the decision of this case.

21
Question 12:
Arbitration is a form of dispute resolution outside of the court system in
which a neutral third party (the arbitrator) is appointed by the parties to make a
decision that is binding and kept secret from all parties involved. Litigation, on the
other hand, involves going to court to have a dispute resolved by having a judge or
jury make a ruling on the matter.
Differences between arbitration and lititgation
Arbitration Litigation
- Arbitration is a private and - Litigation takes place in a
secret process, public courtroom.
- Commercial conflicts are - Civil, administrative, criminal,
handled through arbitration and commercial litigation can
when both parties agree to it all be handled by the court.
- the speed of process to settle - Litigation proceedings are
disputes can be shorter longer
- In the Arbitration process, the - The court's jurisdiction is
parties choose arbitrator for determined by applicable law.
each party - If either party is dissatisfied
- The arbitral tribunal's decision with the outcome, they can
is final and binding, and no file an appeal with a higher
further appeals can be filed. court.

Advantages
Arbitration Litigation
- Private and secret process - More formal since litigation
- Take shorter time must adhere to the policies and
- Allow to select the decision procedures of the court
maker
- Tends to be final

22
Disadvantages
Arbitration Litigation
- Arbitration is flexible since it - Litigation takes place in a
can be held anywhere that both public courtroom
parties agreed. - Take longer
- Cannot choose the judge
- Decision can be appealed

23
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