Unit 7 Business Law Assignment Sample and Answer Guide (BTEC HNC/HND)

This Unit 7 Business Law assignment sample guide covers the Level 4 Business Law unit on the Pearson BTEC Higher Nationals in Business (HNC/HND). It explains the four learning outcomes and the P1 to D3 criteria, sets out how to structure each part of the report, and gives short model-answer extracts plus a worked company law scenario applied to the Companies Act 2006.

What the Unit 7 Business Law assignment asks you to do

Most Unit 7 briefs put you in the role of a legal assistant or adviser in a firm that supports new and growing businesses. The work is usually split into several parts:

• Part 1: explain the legal system: where law comes from, how government makes law, and how statute and common law apply to businesses.
• Part 2: illustrate how company, employment and contract law affect a business, often using short client scenarios.
• Part 3: advise an entrepreneur on how different business organisations are formed, managed and funded.
• Part 4: recommend legal solutions to disputes, such as a falling-out between directors, an employment claim or a breach of contract.

Centres in other jurisdictions sometimes set Part 1 on their own national legal system. The approach below uses the law of England and Wales, which is what most UK briefs expect.

Learning outcomes for Unit 7 Business Law

Pass, Merit and Distinction criteria explained

The codes below match the Unit 7 criteria grid used on centre briefs for this unit. Wording is summarised, so check your own brief for the exact phrasing.

How to answer LO1: the nature of the legal system

1. Set out the main sources of law: Acts of Parliament, delegated legislation (statutory instruments), case law under the doctrine of precedent, and equity. Explain that EU-derived law kept after Brexit is now called assimilated law.
2. Explain how government makes law: Green and White Papers, the stages of a Bill in both Houses, and Royal Assent.
3. Show how statute and common law apply to a business, for example the Consumer Rights Act 2015 alongside the common law rules on contract formation.
4. For M1 and D1, evaluate: is the system accessible, fast and affordable for small businesses? Use a recent reform as evidence.

How to answer LO2: the impact of law on a business

• Company law: the Companies Act 2006, especially directors’ general duties in sections 171 to 177.
• Employment law: the Employment Rights Act 1996 (written statement of particulars, unfair dismissal), the Equality Act 2010 and the National Minimum Wage Act 1998.
• Contract law: offer, acceptance, consideration and intention to create legal relations; terms, breach and remedies.
• For M2, show the difference between legislation (an Act), regulations (secondary legislation made under an Act) and standards (codes such as British Standards, which are usually voluntary unless a law refers to them).

How to answer LO3: forming different business organisations

Build a comparison table for sole trader, ordinary partnership, limited liability partnership, private limited company and public limited company, covering formation, liability, control, funding and reporting. Then apply it to the client in your brief.

How to answer LO4: recommending legal solutions to disputes

• Explain the options: negotiation, mediation, conciliation (including ACAS early conciliation, which is required before most employment tribunal claims), arbitration under the Arbitration Act 1996, tribunals and the courts (including the small claims track for most claims up to £10,000).
• For P6, recommend a route for each scenario in your brief, with the remedy the client could expect and where the party could get legal advice and support.
• For M4, compare and contrast those sources of advice and support (solicitors, ACAS, Citizens Advice, trade associations, mediation services) before making your recommendations.
• For D3, weigh cost, time, confidentiality, the effect on the business relationship and whether the outcome is binding.

Worked example: a director dispute under the Companies Act 2006

Scenario: Amira and Ben are the two directors and equal shareholders of a software company. Ben secretly arranges for a contract the company was bidding for to be awarded to his own separate business.

1. Identify the duties: section 175 (duty to avoid conflicts of interest) and section 172 (duty to promote the success of the company).
2. Apply the facts: Ben diverted a business opportunity to himself without authorisation from the board. This is a conflict of interest and is unlikely to promote the company’s success.
3. Who can sue: the duties are owed to the company. Because Ben would not vote for the company to sue himself, Amira could apply to bring a derivative claim on the company’s behalf under Part 11 of the Act, which needs the court’s permission.
4. Alternative remedy: Amira could petition under section 994 if the company’s affairs are being run in a way that is unfairly prejudicial to her as a member; a common outcome is an order for one shareholder to buy the other’s shares.
5. Recommendation: start with a solicitor’s letter and mediation, given the cost of court action between two equal shareholders, while preserving evidence in case litigation is needed.

This structure (issue, law, application, conclusion) is the clearest way to answer every scenario in Unit 7.

Common mistakes that cost marks

• Describing the legal system in general without linking any of it to business.
• Citing Acts without the year, or citing out-of-date law such as the Sale of Goods Act 1979 for consumer sales now covered by the Consumer Rights Act 2015.
• Saying a sole trader has limited liability, or mixing up an LLP with a limited company.
• Answering scenarios without using the issue, law, application, conclusion structure.
• Recommending court action for every dispute without considering ADR.
• Forgetting that directors’ duties are owed to the company, not to individual shareholders.

How to move from Merit to Distinction

Each Distinction criterion asks for critical judgement. For D1, do not just list strengths and weaknesses of the legal system; decide whether it serves small businesses well and support that with examples such as court delays or the cost of legal advice. For D2, make a clear recommendation for the named client and explain what would change your advice. For D3, evaluate how effective each solution would really be, including whether the other party can pay and whether the business relationship survives.

FAQs

Is Unit 7 Business Law Level 4 or Level 5?

It is a Level 4 unit worth 15 credits, so it is normally taken in the HNC year of the HND.

Do I need to cite case law in Unit 7?

Yes. Leading cases such as Salomon v A Salomon & Co Ltd and Carlill v Carbolic Smoke Ball Co show you understand how common law shapes business. Cite each case with its year.

Can I use the law of another country?

Only if your brief asks for it. Many international centres set the legal system task on their own country, but the business formation and dispute scenarios are often based on UK law.

What is the best structure for scenario questions?

Use issue, law, application and conclusion. State the legal problem, the relevant law, how it applies to the facts and your advice.

Need one-to-one support from a subject specialist? Our BTEC Level 5 (HND) assignment help service covers planning, feedback on drafts and referencing.

If you are stuck on a Unit 7 scenario or want your legal analysis checked, you can get expert help with your BTEC assignment. For the core unit on the wider business environment, see our Unit 1 Business and the Business Environment answer guide.