Unit1

Question 1

What is an investor? Include an example

Answer 1

people who provide entrepreneurs with the capital needed to establish/operate a business. An example The founders of innocent drinks received 280,000 from a private investor

Question 2

What is a co operative relationship?

Answer 2

A co operative relationship is a win win situation, example entrepreneurs share information with the investor and in return the investor offers finance for a reasonable share on interest rates

Question 3

Describe a competitive relation ship?

Answer 3

Exists where stakeholders pursue individual objectives and seek to achieve their objective at the expense of each other.

Question 4

Explain a trade association and give an example (interest groups)

Answer 4

These interest groups represent the interest of business involved in the same industry. Example SIMI this interest group represents the motor industry-dealerships, retailers and vehicle testers. It campaigns the on issues affecting the motor industry

Question 5

What is an interest group?

Answer 5

An interest group is a group of people who meet and campaign for a common goal. Eg IFA and trade unions

Question 6

Explain a business interest group and give an example

Answer 6

These interest groups represent the interest of business owners.
Ibec aims to influence decision makers such as the government on issues that affects its members Eg taxation and transport

Question 7

Define a contract

Answer 7

A contract
This is a legally binding agreement made between two parties who have the power to undertake such a contract when buying or selling goods or services.
This means that if one party breaks an agreement, a judge can order that party to pay for compensation to the other party.

Question 8

What is an offer give example

Answer 8

Offer
This can be an offer to buy or sell a good or service. It can be made orally, in writing or by action.
The offer must be made in a clear and final manner, and must be communicated by the offerer to the offeree so that the person receiving the offer can either accept or reject it.
Example
Jim is selling his bike for 200 euro, lee offers Jim 200 euro for the bike

Question 9

Define invitation to treat

Answer 9

A price tag on an item in a shop window is not and offer by the shop. It is considered an invitation to treat. The seller is free to reject any offers made by the customer.

Question 10

Define how a termination of an offer can occur

Answer 10

Revocation
If the offer is taken back, by the offerer prior to acceptance. Revocation cannot occur after acceptance-example if the price in the window is marked incorrectly.

Lapse
The passage of time or the death of one of the parties may cause the offer to lapse and so cannot be accepted

Rejection
This may be expressed when notice of the rejection is given to the offer an example would be a bid for a house is rejected and the bid is withdrawn.

Question 11

Define acceptance and give an example

Answer 11

Acceptance is when a party who receives and offer agrees to all the terms of the deal without any conditions.
They can accept it by speaking, writing or by conduct and it then becomes legally binding. The party who receives the offer must accept all the condition exactly as the contract lays them out and cannot change them

Example Jim is a selling his bike for 200 euro, lee offers Jim 200 for the bike, Jim accepts the offer with a handshake, this is an agreement.

Question 12

What is a counter offer?

Answer 12

To change any conditions is called a counter offer.
A counter offer is considered as a new offer and also as an automatic rejection of the first offer.

Question 13

Define consideration and give an example

Answer 13

Something of value moves between both parties. The acceptance of an offer must be accompanied by payment moving in one direction and in goods or services moving in the other direction. Example: in the bike deal Luke pays John 200 for the bike. This is consideration

Question 14

Define intention to contract and give an example

Answer 14

The parties signing or agreeing to a contract must know that they are entering a legal agreement. There must be an intention by both parties to create a contract or legal agreement.
Example if one company agrees that they will supply cleanup for a music festival, they are bound to supply the cleanup on time.

Question 15

Define capacity to contract

Answer 15

The parties to a contract must have the legal ability to make the contract. The following do not have a capacity to contract.
Those under 18 except for normal day items like food
Persons under the influence of alcohol or drugs
Persons of unsound mind
A bankrupt person
Company directors without consent from other partners-this is know as ultra vires

Question 16

Define consent to contract with an example

Answer 16

All parties entering into a contract must do so on their own free will. One party cannot force another into a contract. Both parties must understand the conditions of the contract.
Example: you cannot be bullied by threat or intimidation, into selling your own house.

Question 17

Define Legality of form with an example

Answer 17

This refers to the manner in which the contract is made must be legal
Contracts made orally-simple contracts
Contracts may have to be written down due to their complexity
An example there must be a written contract for a house for it it be legal.

Question 18

Define Legality of purpose and give an example

Answer 18

Legality of purpose, for a contract to be valid it must be for a legal purpose
Example a judge will not reward damages to a person if their drug dealer failed to supply them with the drugs they paid for.

Question 19

Define agreement with an example

Answer 19

The termination of a contract when all parties involved agree to cancel the contract before it is carried out. This happens when neither party benefit from the completion of the contract example, a footballer has their contract cancelled by mutual consent

Question 20

Define specific performance with an example

Answer 20

If both parties to the contract fulfil their contract obligations, the contract has been completed. Example U2 is paid 2 million to perform at a concert, upon full payment and completion the contract is terminated as both parties have fulfilled their obligations.

Question 21

Define frustration with an example

Answer 21

A contract comes to an end if some unforeseen event occurs which makes it impossible to carry out the contract. Neither party is to blame.
Example A U2 concert due to a war breaking out in a country and it it is impossible to fulfil the contract

Question 22

Breach of contract with an example

Answer 22

If either parties fail to carry out their part of the agreement the contract will be terminated, this happens when they break a condition of the contract. This is known as a breach of contract.
Example if bono doesn’t show up to the concert the contract is in breach and they broke an essential condition of the contract

Question 23

Define a breach of warranty and give an example

Answer 23

A warranty is a less important part of the agreement. A breach of warranty will often not break the contract. Breach of warranty often results in a fine.
Example U2 doesn’t show up for sound checks on the day of the concert. This is a breach of warranty, the contract is not terminated and the concert continues, u2 may be fined for this breach of warranty.

Question 24

Explain suing for damages as a remedy for a breach of contract

Answer 24

1 sue for damages
The aggrieved party takes the other party to court, the aggrieved party receives financial compensation for the loss suffered because of the breach. This is known as suing for damage.
Example the concert organizers sue U2 for damages and loss of potential earnings through tickets and bar sales

Question 25

Explain specific performance as a remedy for a breach of contract

Answer 25

This involves the judge ordering the contract to be carried out as had been agreed. If the contract is not carried out as agreed the aggrieved party may then sue for damages
Example U2 redo the concert at a later date

Question 26

Explain rescind the contract as a remedy for a breach of contract

Answer 26

The contract is cancelled, both parties return to exactly the same position they were in before the contract started. This is a common remedy for contracts involving fustration. Example U2 repay the concert organizers the 2 million and both parties go their separate ways

Question 27

Explain agreement as a remedy for a breach of contract

Answer 27

Both parties agree to cancel the contract before it is carried out. Both parties agree to the contract being terminated and so the contract is annulled
Example A contract with a builder is terminated before work begins, it suits you and it suits the builder.

Question 28

List the benefits of solving a consumer conflict without legislation

Answer 28

It’s cheap
No need to pay for solicitors
It’s quick no waiting for appointments
It’s friendlier easier to have good relations when the dispute is over

Question 29

Sale of goods and supply or services act 1980 states…

Answer 29

Goods must be of merchantable quality
Goods must be fit for the purpose intended
Goods must be as described
Goods should match the ample shown
3rs repair replace refund

Question 30

What are the rights of the consumer when purchasing a service

Answer 30

Supplier of the service is appropriately qualified and has the necessary skills
Supplier will provide the service with proper care and attention
Materials used by the supplier are sound and fit for purpose intended
Goods provided as part of the service must be of merchantable quality

Question 31

State the 2007 consumer protection act

Answer 31

Offers protection to the consumer from false or misleading claims about:
Description of goods and services eg weight, ingredients
Aggressive practices eg threatening behaviour
Prohibiting practices eg false claims that the product cures and illness or claiming that you are closing down if you aren’t
Price displaying regulations prices must be displayed in a particular manner eg full price must be shown and include relevant tax (vat)

Question 32

Why is the 2007 consumer protection act effective?

Answer 32

Consumers must get fair and honest information
They cannot be mislead or tricked
If they are lied to, they can complain to the CCPC
The CPA allows consumers to apply for redress through the courts for damages they received through misleading practices

Question 33

Who are the CCPC

Answer 33

Their main aim is to protect the interest and welfare of consumers. The CCPC is an independent body that enforces completion and consumer protection in Ireland

Question 34

What are the main Ombudsman schemes?

Answer 34

Financial services and pension ombudsman (FSPO)
Eg Complaints against banks or pension schemes (from employers) they aim to resolve complaints through mediation

Question 35

What does the office of the ombudsman do?

Answer 35

This office investigates complaints from people who feel they have been treated unfairly by a public body eg HSE, local authorities or government departments

Question 36

What is the small claims procedure

Answer 36

They are steps consumers must follow to have their case heard
1 application
2. Small claims registrar -a meeting is organised to try and resolve the complaint. If it can’t it is referred to the district court
3. Referral to the district court - a judge listens to the case and makes a decision on a resolution eg financial compensation
4. Appealing a decision - it takes 14 days to appeal an outcome if the consumer is unhappy

Question 37

What are industrial relations?

Answer 37

Industrial relations refers to the relationship between an employer and an employee in an organisation. The aim is to have a positive industrial relations environment, when the relationship is poor, there will be conflict (industrial disputes)

Question 38

List causes for a industrial dispute

Answer 38

Wages and poor conditions
Job losses
Discrimination
New technology and change
Union recognition
Demarcation

Question 39

Why ask for a pay rise (causes of industrial disputes)

Answer 39

Relativity increase(maintaining pay gaps between managers and supporters)
Cost of living increases (inflation) so you expect your wage to reflect this
Comparability increases (your co worker gets a pay rise and does the same job as you)

Question 40

Job losses (causes of industrial disputes redundancy)

Answer 40

Statutory redundancy payments must be made.
Trade unions will seek to ensure redundancy’s are voluntary

Question 41

Discrimination (causes of industrial disputes)

Answer 41

The behaviour or treatment or making a distinction towards a group of people based on the group, class, category, or how you perceive that person eg age, race, gender

Question 42

New technology and change (causes of industrial disputes)

Answer 42

Technology- employees having to retrain or change how they complete their daily work duties.
Changes can be: changes to power in your role, losing control of employees, mergers and acquisitions

Question 43

Demarcation (causes of industrial disputes)

Answer 43

The practise of requiring that specific jobs be assigned to members of particular trade unions. Eg nurse doesn’t change lightbulb because it’s not her job

Question 44

What is a trade union?

Answer 44

A trade union is an organisation that aims to protect and improve the pay and working conditions of its members. An employee can join a trade union by paying a yearly subscription. Eg SIPTU

Question 45

List reasons for joining a trade union

Answer 45

Increases bargaining power - one voice as a representative
Having a skilled negotiator on behalf of employees
Greater job security if the union is powerful
Higher standard of living for members

Question 46

What are the duties of a union shop steward?

Answer 46

Provides feedback to the union on the views of union members
Gives advice and support to workers on workplace issues
Helps resolve issues between employees and management

Question 47

List 4 types of official strikes

Answer 47

Token stoppage
Work to rule
Overtime ban
Official strike

Question 48

What is work to rule?

Answer 48

Work to rule is when employees only undertake the exact jobs written in their job description/ contract of employment
Workers follow the rules of their employment contracts to the “letter of the law”

Question 49

What is overtime ban?

Answer 49

Employees refuse to work extra hours
This can cause major disruption, leading to lost orders and lost sales, especially at peak trading times. Eg the employees in an airline refuse to do overtime during the holiday period

Question 50

What is token stoppage?

Answer 50

A brief stoppage at work by the workers to highlight their distraction over an issue
This highlights the intention to carry the threat further, serious action if an agreement not reached

Question 51

What is an official strike

Answer 51

Employees refuse to enter the workplace or perform their work duties, an official strike involves a secret ballot , proper notification to the employer and sanction by the ICTU
The union members on strike can hold a picket outside eg Tesco employees go on strike because Tesco won’t recognise them as union members

Question 52

How can a fair dismissal occur

Answer 52

Redundancy
The employer can dismiss an employee if a genuine redundancy exists eg falling sales eg dismissing the least qualified employee
Qualifications
Misconduct-theft, malicious damage
Legal reasons?

Question 53

How can unfair dismissal occur?

Answer 53

Union membership or activity
Political or religious views
Race colour, sexual orientation, cultural background
Pregnancy
Unfair redundancy selection

Question 54

Outline how a conflict is resolved in the workplace using non-legislative methods

Answer 54

Meeting and talking
A meeting is arranged between the employer and employee. They discuss the issue and try to solve the problem
Negotiation
Both parties meet and bargain with each other. They make offers and counter offers until a compromise is reached that is acceptable to both sides
Conciliation
The dispute is referred to an independent conciliator who listens to both sides of the dispute.
Mediation
An independent mediator hears both sides of the dispute and outlines how they think the problem should be solved
Arbitration
An independent arbitrator listens to both parties and makes a decision on how it should be solved. This recommendation is not legally binding.

Question 55

What is a conciliator

Answer 55

A person who brings together disputing parties to try to resolve the dispute.

Question 56

What is a mediator

Answer 56

A person who acts as a go between

Question 57

Who is a arbitrator

Answer 57

A person who examines an issue and makes a recommendation on how it should be solved

Question 58

What is the industrial relations act 1990 and what are its main purposes

Answer 58

It was introduced to improve industrial relations in Ireland and to help resolve industrial relation disputes eg trade disputes
The act outlines the difference between legal and illegal disputes
1. Legal trade disputes
Pay and working conditions
Discrimination against an employee
Dismissal of an employee
2. Illegal trade disputes
Disagreement about how the business is run
Discontent about how the government is running the country
Closed shop agreements , eg insisting that employees join a particular trade union such as SIPTU

Question 59

What is a secret ballot?

Answer 59

For official industrial action to take place, trade union members must vote in a secret ballot

Question 60

Explain why a minimum notice is necessary (strike)

Answer 60

The employees must give the employer a minimum of seven days notice before talking industrial action.

Question 61

What is picketing

Answer 61

Primary picketing takes place at the employees workplace. It involves employees walking outside the workplace carrying placards indicating that they are taking strike action.

Question 62

What is immunity (industrial action)

Answer 62

The employer cannot sue the trade union or it’s members for losses incurred by the business due to official strike action.

Question 63

What is the WRC and what does it do

Answer 63

The work relations commission helps to improve industrial relations, reducing strikes and loss of service to the consumer.

Question 64

What services does the wrc provide

Answer 64

Information
The WRC provides information on employment law and industrial relations to employers and employees through its website and phone service

Advisory service
The advisory service works with business to build and maintain positive industrial relations in the workplace. The advisory service can visit the firm and provide workshops training e.g on issues in the workplace

Conciliation
An independent conciliator hears the dispute and helps both parties to reach a mutually acceptable agreement.

Mediation
The mediation officer tries to get both parties to reach a mutually acceptable solution to their dispute. If mediation is successful, the mediation officer records the agreement in writing and it becomes legally binding.

Adjudication service
Adjudication officer investigates cases when mediation has been unsuccessful. They hear both sides of the dispute and make a decision on how the case should be solved. Decisions made by adjudication officers can be appealed to the labour court

Codes or practise
The WRC formulates codes of practise, which are written rules that define how people or organisations must act in particular situations. Examples include bullying in the workplace and disciplinary procedures, getting their holiday pay, rostars

Question 65

Define discrimination

Answer 65

Discrimination is occurs when one person is treated less favourably than another is, has been or would be treated in a comparable situation

Question 66

What act protects against discrimination?

Answer 66

The employment equality acts 1998-2015 prohibits discrimination in the workplace.
Discrimination is illegal under the following nine grounds:
Age related discrimination
Gender
Disability
Sexual orientation
Members of the traveller community
Civil status eg divorced
Race
Religious beliefs
Family status

Question 67

What is the Labour court

Answer 67

The labour court is the court of last resort for industrial relations dispute. It is not a court of law but an industrial relations tribunal. The aim of the court is to resolve and adjudicate on individual disputes fairly, informally and quickly.

Question 68

What do the functions of the labour court include?

Answer 68

Investigates disputes
The labour court investigates trade disputes between employers and employees and issues a decision on the case. If either party is unhappy with the decision, it can be appealed to the high court.

Hears appeals
Decisions made by an adjudication officer at the WRC can be appealed to the labour court, the labour court issues a binding judgement on the case.

Establishes joint labour committees (JLCs)
The labour court sets up a JLC for employees in certain sectors, eg security or hairdressing. A JLC improves Pat and working conditions for staff in these sectors.

Registers employment regulation orders
An employment regulation order (ERO) is drawn up by a JLC and fixes minimum rates of pay and working conditions for people working in specific industries, eg contract cleaning. The ERO is adopted by the labour court and becomes legally binding.

Interpretations of codes or practise
The labour court gives its opinion on the interpretation of the codes of practise formulated by the WRC, eg disciplinary procedures. It also investigates complaints about breaches of codes.