Higher National Unit Specification. General information for centres. Unit title: Business Contractual Relationships. Unit code: DE3F 34

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1 Higher National Unit Specification General information for centres Unit code: DE3F 34 Unit purpose: This Unit is designed to expand the candidates knowledge of the law as it applies within the business environment. This specialist Unit will examine consumer legislation, the agency relationship and the law of obligations as it relates to the contractual relationships between the business, their customers and their employees. On completion of this Unit, the candidate will be able to: 1. Describe the key statutory provisions relating to consumer protection. 2. Identify and explain the law of agency. 3. Explain the key elements of the Law of Obligations. Credit value: 1 HN Credit at SCQF level 7: (8 SCQF credit points at SCQF level 7*) *SCQF credit points are used to allocate credit to qualifications in the Scottish Credit and Qualifications Framework (SCQF). Each qualification in the Framework is allocated a number of SCQF credit points at an SCQF level. There are 12 SCQF levels, ranging from Access 1 to Doctorates. Recommended prior knowledge and skills: Candidates should possess good written and oral communication skills. These may be demonstrated by the achievement of core skill Communication at Higher level or by possession of Higher English and Communication or a suitable HN Communication Unit (SCQF level 7). It is recommended that candidates should also have completed the HN Unit entitled Introduction to Business Law. Core skills: There may be opportunities to gather evidence towards core skills in this Unit, although there is no automatic certification of core skills or core skills components. Context for delivery: If this Unit is delivered as part of a group award, it is recommended that it should be taught and assessed within the subject area of the group award to which it contributes. HN Unit (DE3F 34): Business Contractual Relationships 1

2 General information for centres (cont) Assessment: Assessment for the unit could take the form of a case study, or case studies, which will test the candidate s understanding of each Outcome. Each of the 3 outcomes should be assessed separately using a case study, or case studies. Assessment of Outcome 1 should be carried out under controlled conditions. Outcomes 2 and 3 should each be assessed without supervision. An exemplar assessment pack and marking guidelines have been produced to indicate the national standard of achievement required at SCQF level 7. HN Unit (DE3F 34): Business Contractual Relationships 2

3 Higher National Unit specification: statement of standards Unit code: DE3F 34 The sections of the Unit stating the Outcomes, knowledge and/or skills, and evidence requirements are mandatory. Where evidence for Outcomes is assessed on a sample basis, the whole of the content listed in the knowledge and/or skills section must be taught and available for assessment. Candidates should not know in advance the items on which they will be assessed and different items should be sampled on each assessment occasion. Outcome 1 Describe the key statutory provisions relating to consumer protection. Knowledge and/or skills Sale of Goods Act 1979, as amended Unfair Contract Terms Act 1977, as amended Consumer Credit Act 1974 Trade Descriptions Act 1968 Evidence requirements Evidence for the knowledge and/or skills in this Outcome will be provided on a sample basis. This evidence may be presented in response to a specific question or questions. Each candidate will need evidence to show that they can, with reference to a particular aspect of the above, provide an accurate and clear explanation of the legal situation as it is contextualised within the case study, or case studies. In order to ensure that candidates will not be able to foresee what items they will be questioned about, a sample of at least three of the four items under knowledge and/or skills items is required each time the Outcome is assessed. Candidates must provide a satisfactory response to all three items. Where an item is sampled, the candidate s response can be judged to be satisfactory where the evidence provided is sufficient to meet the requirements for each item by showing that the candidate is able to: Explain the rights available to a consumer as offered by the Sale of Goods Act 1979 Explain the protection available to consumers arising from the Unfair Contract Terms Act 1977 Briefly outline the terms of the Consumer Credit Act 1974, providing examples of how the legislation operates in day-to-day transactions for the purchase of goods and services HN Unit (DE3F 34): Business Contractual Relationships 3

4 Explain, briefly, the Trades Description Act 1968, as amended, and its implication for consumer protection. Higher National Unit specification: statement of standards (cont) Evidence for this outcome should be generated under controlled conditions. Assessment guidelines Outcome 1 could be assessed by one closed-book exercise. The case study, or case studies can be given to candidates 7-10 days before the assessment takes place. Candidates will be allowed to bring to the assessment a copy of the case study and 2 sides of an A4 sheet of paper with relevant written notes. This material must be submitted with the candidate s written answer. Textbooks and class handouts will not be permitted. The assessment may be completed in one sitting with a maximum total duration of three hours. Supervision of the assessment and any relevant reassessment should take place. Outcome 2 Identify and explain the law of agency. Knowledge and/or skills Categories of Agent and their capacity to contract Constitution of relationship Agent s authority Duties of agent to principal Rights of agent against principal Third Party s rights and liabilities Termination of the relationship Evidence requirements Evidence for the knowledge and/or skills in this Outcome will be provided on a sample basis. This evidence may be presented in response to a specific question or questions. Each candidate will need evidence to show that they can, with reference to a particular aspect of the above, provide an accurate and clear explanation of the legal situation, as it is contextualised within the case study, or case studies. In order to ensure that candidates will not be able to foresee what items they will be questioned about, a different sample of at least four of the seven knowledge and/or skills items is required each time the Outcome is assessed. Candidates must provide a satisfactory response to all four items. Where an item is sampled, the candidate s response can be judged to be satisfactory where the evidence provided is sufficient to meet the requirements for each item by showing that the candidate is able to: HN Unit (DE3F 34): Business Contractual Relationships 4

5 Higher National Unit specification: statement of standards (cont) Explain the concept of Agency as it relates to the three way relationship and the ability of the Agent to commit the principal to a contractual relationship Explain the Agent s duties to the Principal and rights against the Principal to maintain a stable and legal relationship Explain the rights and liabilities of the consumer, ie third party against the Principal and/or Agent Briefly explain the methods available to terminate the relationship Assessment guidelines Assessment of Outcome 2 should be unsupervised, therefore, should there be ambiguity regarding a candidate s response to the assessment, or authenticity of the candidate s response, oral questioning may be used to eliminate any doubt as the candidate s understanding of the legal principle. The lecturer should note questions and responses. Outcome 3 Explain the key elements of the Law of Obligations. Knowledge and/or skills General Principles of Delict Negligence Defences Particular forms of business liability Evidence requirements Evidence for the knowledge and/or skills in this Outcome will be provided on a sample basis. This evidence may be presented in response to a specific question or questions. Each candidate will need evidence to show that they can, with reference to a particular aspect of the above, provide an accurate and clear explanation of the legal situation, as it is contextualised within the case study, or case studies. In order to ensure that candidates will not be able to foresee what items they will be questioned about, a different sample of at least three of the four knowledge and/or skills items is required each time the Outcome is assessed. Candidates must provide a satisfactory response to all three items. Where an item is sampled, the candidate s response can be judged to be satisfactory where the evidence provided is sufficient to meet the requirements for each item by showing that the candidate is able to: HN Unit (DE3F 34): Business Contractual Relationships 5

6 Higher National Unit specification: statement of standards (cont) Describe the concept of Delict and the obligation placed upon individuals and/or businesses not to harm other individuals and/or businesses or their property Explain, accurately, the act of negligence and the liability which may arise as a result of acting negligently Explain the defences available to the accused party, in an attempt to mitigate the level of liability Describe the settlement of damages in negligence cases as a means of awarding any financial compensation to the innocent party Explain the forms of business liability and the implications on both parties Assessment guidelines Assessment of Outcome 3 should be unsupervised, therefore, should there be ambiguity regarding a candidate s response to the assessment, or authenticity of the candidate s response, oral questioning may be used to eliminate any doubt as the candidate s understanding of the legal principle. The lecturer should note questions and responses. Assessment guidelines for the Unit Due to the complexity of each of the Outcomes, the Outcomes should be assessed individually. Candidates should be able to clearly describe legal principles and their application in the business environment which will be reflected within the case study or case studies. Although there is no stipulated word count, candidates responses should be well communicated and structured to reflect the legal content and context. HN Unit (DE3F 34): Business Contractual Relationships 6

7 Administrative Information Unit code: DE3F 34 Unit title: Business Contractual Relationships Superclass category: EC Date of publication: August 2003 Version: 01 Source: SQA Scottish Qualifications Authority 2003 This publication may be reproduced in whole or in part for educational purposes provided that no profit is derived from reproduction and that, if reproduced in part, the source is acknowledged. Additional copies of this Unit specification can be purchased from the Scottish Qualifications Authority. The cost for each Unit specification is (A handling charge of 1.95 will apply to all orders for priced items.) HN Unit (DE3F 34): Business Contractual Relationships 7

8 Higher National Unit specification: support notes This part of the Unit specification is offered as guidance. The support notes are not mandatory. While the exact time allocated to this Unit is at the discretion of the centre, the notional design length is 40 hours. Guidance on the content and context for this Unit On completion of this Unit, candidates should have gained a practical insight into aspects of law as it interacts with the business entities, its customers, its suppliers and its employees/workers. This Unit is specifically geared towards Scots Law, with minor references to English Law. Candidates will be provided with an overview of Statutory and Case Law and how these interact; in particular, where decisions from certain cases become a precedent and this impacts on all types of business transactions. Wherever possible, Centres should adopt a proactive approach towards the delivery of this Unit by utilising reported cases from the press and media. Likewise, candidates should be encouraged to source relevant information eg internet, journals, magazines, newspapers etc. Candidates should also be encouraged to use these articles as discussion topics in the classroom environment. Guidance on the delivery and assessment of this Unit Centres should emphasise to candidates that they require to transfer knowledge gained from the completion of the HN Unit Introduction to Business Law especially with regard to the Law of Contract. Candidates will be expected, as much as possible, to apply the theoretical legal position to each of the assessments, in resolving problems within a case study or case studies. It is recommended that a bank of case studies should be prepared to cover the knowledge and understanding of all Outcomes within this Unit. HN Unit (DE3F 34): Business Contractual Relationships 8

9 Higher National Unit specification: support notes (cont) Text Book The use of appropriate textbooks will assist centres and candidates throughout this unit. Suggested textbook:- Title: Scots Law A Student Guide Authors: Busby, Clark, Mays, Paisley and Spink Publishers: T & T Clark Ltd ISBN: Open learning Open learning implies that, while candidates study outwith the centres using materials provided, including their own copy of the text book, it would be necessary for candidates to attend the centre for supervised assessment purposes. For further information on Open and Distance Learning, please refer to the SQA publication, Assessment and Quality Assurance of Open and Distance Learning (SQA, 2000). Special needs This Unit specification is intended to ensure that there are no artificial barriers to learning or assessment. Special needs of individual candidates should be taken into account when planning learning experiences, selecting assessment instruments or considering special alternative Outcomes for Units. For information on these, please refer to the SQA document Guidance on Special Assessment Arrangements (SQA, 2001). HN Unit (DE3F 34): Business Contractual Relationships 9

10 General information for candidates This Unit introduces you to the basic concepts of consumer law, agency law and the Law of Obligations. It will explain the nature and application of these laws as they relate to the business environment. There are 3 Outcomes in this Unit, which will be assessed individually. All Outcomes will be assessed by use of a case study, or case studies to test your understanding of the legal principles and how they can be applied. The assessment for Outcome 1 will take the form of a closed-book exercise. You will be given the case study to be used 7-10 days before the assessment date. You will be allowed to bring to the assessment a copy of the case study and 2 sides of an A4 sheet of paper with relevant notes that you have prepared. This material must be submitted with your written answer. Textbooks and class handouts will not be permitted. The assessments for both outcomes 2 and 3 will take the form of unsupervised home-based exercises. In this Unit, you will cover: The key statutory provisions relating to consumer protection Explanation of the law of agency The key elements of the Law of Obligations Assessments will take the form of written answers, which you will provide in response to a specific question or questions. In these answers, you will need to provide evidence to show that you can give an accurate and clear explanation of a legal aspect of the law, as it relates to a given case study or case studies. Although you will be required to study the full range of topics in the bullet list above, you will only be assessed on part of each of these topics. You will not know beforehand which parts of these topics will appear in the assessments. You will need to show that you fully understand the following: Outcome 1 Sale of Goods Act 1979, as amended Unfair Contract Terms Act 1977, as amended Consumer Credit Act 1974 Trade Descriptions Act 1968 Outcome 2 Law of Agency Agent s authority, Duties of Agent, Rights of Agent, Third Party s rights and liabilities, termination of relationship Outcome 3 General Principles of Delict Negligence consequences of acting negligently Settlement of damages in negligence cases as a means of awarding financial compensation HN Unit (DE3F 34): Business Contractual Relationships 10