Cpa Syllabus 2009:

CPA Syllabus 2009:

Business Laws

Stage: Formation 1 Subject Title: Business Laws Examination Duration: 3 Hours Aim The aim of this subject is to ensure that students have an understanding of the law relating to the work of an accountant and the ability to identify problems that require the advice of a legal professional.

Business Laws as an Integral Part of the Syllabus The legal principles learnt in this subject are relevant to students throughout their professional accountancy studies. In particular Business Laws is an essential foundation for the study of Corporate Laws and Governance.

Knowledge gained from this subject will also be particularly relevant in the further study of Auditing, Audit Practice and Assurance Services, Financial Accounting, Corporate Reporting, Advanced Corporate Reporting and Strategy Leadership & Knowledge Management.

Stage

Subject

Subject

Subject

Subject

Subject

Subject

P2

Strategic Corporate Finance

Strategic Performance Management Managerial Finance Management Accounting Business Mathematics & Quantitative Methods

Advanced Corporate Reporting Corporate Reporting Financial Accounting Economics & The Business Environment

Strategy Leadership & Knowledge Management Corporate Laws and Governance Information Systems Business Laws

Audit Practice and Assurance Services Auditing

Advanced Taxation

P1 F2 F1

Taxation

The above table shows the linkages between Business Laws and the subjects highlighted. The capabilities developed will be built upon in the study of the subjects highlighted above.

Learning Outcomes On successful completion of this subject students should be able to: • Distinguish between and describe the sources of law, both domestic and E.U and of the institutions of the State and of the Union. • Interpret, describe and discuss aspects of the law of property and the law of torts. • Interpret, describe and discuss the laws of contract and of sale of goods and supply of services. • Interpret, describe and discuss aspects of the law relating to negotiable instruments and insurance. • Recognise if, and when, more specialist legal knowledge is required and identify the source of that expertise.

• Describe, discuss and explain aspects of company law relating to the structuring of business entities and of their commercial relationships.

divisions, solicitor/barrister relationship, functions of the Attorney General and the Director of Public Prosecutions, interpretation of statutes.

Syllabus 1: INTRODUCTION

CL*

• The sources of law; common law and equity, judicial precedent and case law, statute law, the Constitution and E.U. law.

2

• The legal system in operation – doctrine of separation of powers, basic institutions of the State, the requirements of natural and constitutional justice, structure of the courts, civil and criminal

2

• European Union Law – the fundamental freedoms provided by the treaties, institutions of the Union, regulations, directives, decisions, recommendations and opinions, competition law and domestic competition legislation.

1

2: ASPECTS OF PROPERTY LAW • Types of property. • Ownership – legal and equitable ownership, interest and title, coownership, acquisition and transfer of legal and equitable ownership. *

1 1

CL: Competency Level

16

CPA Syllabus 2009:

• Possession – types of possession, acquisition and transfer of possession, attornment and bailment.

1

Business Laws

6: NEGOTIABLE INSTRUMENTS • Negotiable Instruments. • Bills of Exchange. • Cheques.

3: LAW OF TORTS • Principles. • Types of tort – defamation, nuisance, negligence, professional negligence, conversion, passing off, data protection legislation, product liability and the defective products legislation. • Remedies.

• Promissory Notes.

2 1

1

4: CONTRACT • Formation of a contract – agreement, including offer (versus invitation to treat) and acceptance, intention to create legal relations, consideration, evidentiary requirements, third party rights, including privity of contract and assignment.

1

• Content of a contract – what is a term, distinction between terms and mere representations, sources of terms, the parol evidence rule, classification of terms, exclusion clauses.

1

• Misrepresentation, mistake, illegality, duress, undue influence, unconscionable bargains, capacity.

1

• Performance, discharge and remedies for breach of contract.

1

5: SALE OF GOODS ACTS 1893 AND 1980

• Bank Drafts.

7: INSURANCE LAW • Nature of insurance contracts, insurable interest, formation, terms of the contract, insurance intermediaries, liability.

1

• Liability – insurance claims, principle of indemnity.

1

• Companies and other forms of business organisation, the development of company law in Ireland, Irish company law and E.U. law.

1

• How a company is formed, types of company that may be formed, memorandum of association (including the objects and powers clause), articles of association, the promoters, flotation of a company, application for and allotment of shares, commencement of business.

1

• Separate legal personality of the company, lifting the veil of incorporation, pre-incorporation contracts, the ultra vires rule, liability of a company in respect of unauthorised or irregular transactions, the doctrine of ostensible or apparent authority, the rule in Royal British Bank v. Turquand, tort and crime.

1

• Credit sales, hire purchase and lease.

1

• Terms of the contract.

1 1 1 1

See Examinable Material Document on pages 62 to 65 for details of the Companies Acts applicable to this examination.

1 1 1 1

Assessment Strategy

• Product guarantees, after sales services and product liability. • Passing of property. • Passing of risk. • Title conflicts. • Contracts for the supply of services.

The examination is unseen, closed book and 3 hours in duration. Students are required to answer 5 questions out of 7.

Marks Allocation

2

• Remedies.

Examination Format

8: COMPANY LAW

• Defining and distinguishing sales contracts.

• The duties of the parties.

1 1 1 1 1

Students are presented with both essay and scenario questions. In answering essay type questions they are required to demonstrate an ability to analyse and discuss the relevant concepts. With scenario based questions, students should identify the material or relevant facts, discuss the relevant rules of law, apply these rules to the facts and draw appropriate conclusions. Questions are framed so that students have the opportunity to integrate case law and/or statutory provisions, as appropriate, in their answers.

Each question carries 20 marks The total for the paper is 100 marks.

Booklist Core Texts Byrne & McCutcheon / Irish Legal System, 5th edition / Tottel / ISBN/ISSN 1845922786. McDermott, Contract Law / Tottel / ISBN/ISSN 1854753606. White / Commercial Law / Thomson Round Hall / ISBN 1858002842. Keane / Company Law, 4th edition / Tottel, ISBN 1845922980.

Manuals Supplementary Texts Clark / Contract Law, 5th edition / Thomson Round Hall / ISBN 1858003210. AccountancyPlus CPA students’ eBulletin

Companies Acts:

Examination Approach Students have to demonstrate their understanding of the legal principles, concepts, case law and legislative provisions that are relevant to the work of an accountant.

17

Useful Websites (as at date of publication) www.cpaireland.ie The Institute of Certified Public Accountants in Ireland. www.irishstatutebook.ie - Irish Statute Book – Office of the Attorney General. www.cro.ie - Companies Registration Office. www.clrg.org - Company Law Review Group. www.lawreform.ie - The Law Reform Commission. www.courts.ie - Irish Courts Service. www.odca.ie - Office of The Director of Consumer Affairs.