Law for Accounting LAW8-ACC

Unit 8 Law for Accounting Assignment

Assignment Scenario

You are working in an accountancy firm as a junior assistant in a department dealing with small and medium sized businesses. As part of your training, you have been asked to do an initial review of the following cases for the partner, picking out the issue s and discussing possible solutions and outcomes. You will need to write a report to the partner based on each case citing any relevant law/case law. Your report should cover all relevant legal points, discuss issues of law and give an opinion relating to the scenario where appropriate.

Task 1

A client, Jodie Hart, who has started a new training business wants advice on a number of issues relating to her business. You must write a report on Jodies situation dealing with each of the issues below, numbered a) - d).

1. Jodieis trying to decide whether to become a limited company but does not know what this would

Your report must:

• Analyse the requirements of company law for the formation, financing and administration of
• Analyse the role and responsibilities of company directors, officers and

Learning outcomes and assessment criteria

LO2 AC 2.1, 2.2

1. On the 11thAugust Jodie asked her brother John, who was not part of the business but helping out, to approach a small business in the town where they live that was closing John was to tell them that Jodie was interested in buying their office furniture and equipment for 1000 but needed to collect it and move it to her own office premises by the 25th August. The owner Harry Parker says he will think about it.

On the 14th August, Harry sees John in a local coffee shop and says that he would like to sell the furniture and equipment but that he wont be able to part with it until the 31 st August when he can deliver it to Jodies offices. John says this will be fine.

Jodie then sends Harry an email saying she has changed her mind as her uncle has given her some office furniture and equipment. Harry writes back saying that they have a contract and that he will be delivering everything on the 31st and will expect payment.

Unit 8 Law for Accounting Assignment v1.0 211223

Using the scenario, write a section of your report about the elements of contracts and about the agency relationship in order to advise Jodie.

Your report must:

• Analyse the elements and nature of contractual
• Explain the principles of agency and their impact on business

Extension activities

To achieve a Merit , your report must assess the validity of the contract.

To achieve a Distinction , your report must evaluate the implications of an agency relationship for the principal and the agent.

Learning outcomes and assessment criteria

LO1 AC 1.1, 1.2, 1M1, 1D1

1. Jodie is concerned about information and intellectual property in the business. She keeps personal details of trainees and she has a large amount of training material that has been produced by her and her She wants advice on the laws relating to data protection and intellectual property.

Your report must:

• Analyse the requirements of data protection
• Explain how intellectual property can be

Extension activities

To achieve a Distinction , your report must assess the importance of intellectual property rights to businesses.

LO4 AC 4.1, 4.2, 4D1

1. One of Jodies employees caused a fire at a training event by using electrical equipment that was not properly checked. Several people suffered minor They are trying to sue Jodie for compensation. Jodie immediately dismisses the employee. Use the scenario to discuss the law of tort and remedies available and discuss the employment law relating to employment contracts and termination.

Your report must:

• Explain the law of tort and the remedies
• Assess the impact of legislation relating to

LO1 AC 1.3

LO4 AC 4.3

Task 2

Dayloan Limited, a small loans company, are insolvent. They won a number of assets which are subject to fixed and floating charges and owe a large amount of corporation tax. They are also being investigated for money laundering and other offences including poor lending practices, bribing a government official and gaining unauthorised access to competitors computers in order to access their clients. They have failed to operate in accordance with legislation and guidelines on responsible lending. They want advice on the insolvency and possible criminal charges and penalties.

Your report must:

• Explain the process of insolvency for business
• Explain the relationship between legal principles, legislation, case law and ethical
• Explain the elements and consequences of malpractice, fraud and bribery in business
• Explain offences and penalties related to money
• Explain offences and penalties related to computer misuse and

Extension activities

To achieve a Merit , your report must advise on the insolvency process for a given situation.

Learning outcomes and assessment criteria

LO2 AC 2.3, 2M1

LO3 AC 3.1, 3.2, 3.3, 3.4

Guidelines for assessors

Work submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. To achieve a merit or distinction grade, the learners must demonstrate that they have achieved all the criteria set for these grades. Where work for the pass standard is marginal, assessors can take account of any extension work completed by the learners. The suggested evid ence listed below is how learners can demonstrate that they have met the required standards. The command verbs contained within the AC are highlighted in bold in the suggested evidence boxes.

Unit 8 Law for Accounting Assignment v1.0 211223