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 Strategic Advanced Strategy Leadership Audit Practice Advanced
Corporate Performance Corporate & Knowledge and Assurance Taxation
Finance Management Reporting Management Services
P1 Managerial Corporate Corporate Laws Auditing
Finance Reporting and Governance
F2 Management Financial Information Taxation
Accounting Accounting Systems
F1 Business Economics & Business Laws
Mathematics & The Business
Quantitative Methods Environment

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 • Describe, discuss and explain divisions, solicitor/barrister

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.
aspects of company law relating to
the structuring of business entities
and of their commercial
relationships.
Syllabus
1: INTRODUCTION
• The sources of law; common law
and equity, judicial precedent and
case law, statute law, the
Constitution and E.U. law.
• 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
16
relationship, functions of the
Attorney General and the Director
of Public Prosecutions,
interpretation of statutes.
• European Union Law – the 1
fundamental freedoms provided by
the treaties, institutions of the
Union, regulations, directives,
CL* decisions, recommendations and
opinions, competition law and
domestic competition legislation.
2
2: ASPECTS OF PROPERTY LAW
2
• Types of property. 1
• Ownership – legal and equitable 1
ownership, interest and title, co-
ownership, acquisition and transfer
of legal and equitable ownership.
*
CL: Competency Level

• Possession – types of possession,
acquisition and transfer of
possession, attornment and
bailment.
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.
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.
• 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.
• Misrepresentation, mistake, illegality,
duress, undue influence,
unconscionable bargains, capacity.
• Performance, discharge and
remedies for breach of contract.
5: SALE OF GOODS ACTS 1893
AND 1980
• Defining and distinguishing sales
contracts.
• Credit sales, hire purchase and
lease.
• Terms of the contract.
• The duties of the parties.
• Remedies.
• Product guarantees, after sales
services and product liability.
• Passing of property.
• Passing of risk.
• Title conflicts.
• Contracts for the supply of services.
CPA Syllabus 2009: Business Laws
1 6: NEGOTIABLE INSTRUMENTS
• Negotiable Instruments.
• Bills of Exchange.
• Cheques.
• Promissory Notes.
• Bank Drafts.
2
1 appropriate conclusions. Questions
7: INSURANCE LAW
• Nature of insurance contracts,
insurable interest, formation, terms
of the contract, insurance
1 intermediaries, liability.
• Liability – insurance claims,
principle of indemnity.
8: COMPANY LAW
1 Marks Allocation
• Companies and other forms of
business organisation, the
development of company law in
Ireland, Irish company law and E.U.
law.
• How a company is formed, types of
1 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
1 shares, commencement of
business.
• Separate legal personality of the
1 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.
2 Turquand, tort and crime.
1
Companies Acts:
1 See Examinable Material Document
1 on pages 62 to 65 for details of the
Companies Acts applicable to this
1 examination.
1
1 Assessment Strategy
1 Examination Approach
1
Students have to demonstrate their
1
understanding of the legal principles,
concepts, case law and legislative
provisions that are relevant to the
work of an accountant.
17
Students are presented with both
essay and scenario questions. In
answering essay type questions they
1 are required to demonstrate an ability
1 to analyse and discuss the relevant
1 concepts. With scenario based
questions, students should identify
1
the material or relevant facts, discuss
1 the relevant rules of law, apply these
rules to the facts and draw
are framed so that students have the
opportunity to integrate case law
1 and/or statutory provisions, as
appropriate, in their answers.
Examination Format
1 The examination is unseen, closed
book and 3 hours in duration.
Students are required to answer 5
questions out of 7.
Each question carries 20 marks The
1
total for the paper is 100 marks.
Booklist
1 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
1 1845922980.
Manuals
Supplementary Texts
Clark / Contract Law, 5th edition / Thomson
Round Hall / ISBN 1858003210.
AccountancyPlus
CPA students’ eBulletin
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.