Business Law

Aims of this Unit

From the beginning of this unit, we work on the premise that a manager or entrepreneur must have a good understanding of their organisation and in business in general. Not only do you need to know what goods and services need to be purchased/supplied, but you must also run the business side as well. This includes the broad areas of strategic planning, marketing, operations, finance and the law. A good manager not only knows the law but also knows how the law interacts with the other aspects of business.

This unit is about the law and focuses on business issues. In business, we deal with contracts every day. An understanding of how contracts are formed and how they operate is extremely beneficial to all people in business. This unit begins with an introduction to what law is about, then commences with the law of contract where we explore how a contract is created. Contract law underpins the foundation of commerce. Accordingly, we review the law of contract, where we consider key operational issues such as contents, parties, ending the contract and remedies. We examine other laws that can affect contracts. There are many, but in this unit, we focus on the main ones including the Australian Consumer Law, negligence, intellectual property, insurance and corporations law.

Examining how to review a commercial contract can help one broaden one's understanding of how different laws are applied. Here, we will consider how a commercial contract is written and managed, as many disasters occur when managers do not read the legal terms, and if they do read them, they do not fully understand them.

This unit aims to give the participants a holistic view of business law and its role in modern Australian corporate life.

Knowledge and Understanding

This unit is designed to provide students with an understanding of:

• Introduction to the legal process. An introduction to the legal process, including the functions of the law, and a review of the origin of the English legal system we inherited. Issues covered include judge-made law (common law and equity) and legislation, onuses of proof, the need for evidence and the functions of the court. The introduction provides exposure to key legal terms and principles.
• Key Principles of Contract Law. The elements of Australian Contract Law include the key areas of creation, operation (including remedies) and ending. Deeds, contract interpretation, dispute resolution and variations will also be covered. Other laws that can affect a contract are considered.
• Consumer and competition law General and specific consumer protections include misleading and deceptive conduct, unfair contract forms, unfair practices and product safety. The doctrine of freedom of contract deals with agreements that reduce competition.
• Negligence. The failure to exercise reasonable care and skill.
• Intellectual property. Intellectual property law protects the creators of intangible property rights, including patents, trademarks, designs, and copyrights.
• Tender. The process where a buyer invites bids from sellers.
• Agency. The authority or capacity of one person, the ‘agent’, to create or affect legal relations between another person, the ‘principal’ and a third party.
• Insurance. The legal agreement (or ‘policy’) between two parties, the insurer and the insured, where the insurer provides financial coverage for the losses of the insured that they may bear under certain circumstances.
• Corporations. The law relates to corporations, where a corporation has a separate legal identity from its directors and shareholders.
• Review of a commercial contract. Writing, reading, and interpreting a contract, including problematic legal (‘boilerplate’ or ‘fine print’) terms.

Learning Outcomes

Following completion of this unit, participants should be able to:

• Demonstrate a high order of critical thinking skills in reviewing the creation, operation (including remedies) and ending of a commercial contract, explaining its key terms, and its role in leadership and management.
• Critically evaluate a range of contractual disputes and consider dispute resolution or legal remedy options.
• Critically analyse the effect of contract-related laws that affect a contract, including the Australian Consumer Law and agreements that reduce competition.
• Critically examine the effect of various commercial laws that can affect a contract, including negligence, intellectual property, tender, agency, insurance, and corporation law.
• Predict when courts will intervene when the requirements of a contract have not been satisfied, including when lawyers will need to be engaged and how a case needs to be prepared.
• Critically review commercial contracts for legal risks and issues that can affect their legal and commercial viability.
• Develop flexible and creative approaches to applying knowledge and skills to new situations, identifying and resolving issues and thinking rigorously and independently.