Question 1: For business people first they need to decide the business that suits their needs, concentrate

on purpose of business, establish and built up a business. This whole process involves acquiring premises and equipments, hiring employees, buying raw material and stock, product or service marketing and meeting customer needs. Most of business transitions are being made in the presence of contract. Contract: A contract is a legally enforceable agreement, express or implied. According to Sir Frederick Pollock a promise or set of promises which the law will enforce. According to Keenan, Riches (2005), that contract are not all about promises or agreements. Contact comprises two broad types. a. Speciality Contracts: The formal contacts are also known as deeds. Formerly, these contracts had to be in writing and signed, sealed and delivered (Keenan & Riches, 2005). b. Simple Contract: The contacts which are not deeds are the simple contracts. These informal contracts can be either orally or in written form or they might be implied from conduct. Business people do come to have duties under the law of contract. They are legally bound under the corporate law to interact with its stakeholder that includes directors, shareholder, employees, customers and environment. Similarly, under partnership or trust business people are still under the law of contract. They have to follow all the formalities of each contract. There are number of duties for business peoples that come under the law of contract which are as follows: Employee Contract terms Termination of employment Various discrimination acts Health and safety acts National minimum wage
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Maternity leave Trade marks Patent Copyrights Legal concept of property

Similarly, there are other various laws and acts which business people are abide to fulfil under the law of contract.

The Legal Requirements for the Formation of a Contract: The following are the essential legal requirements of a contract: 1) Agreement: the important aspect of contract is an agreement, when one party makes an offer and the other party accepts it. 2) Consideration: all parties need to understand the agreement that it is basically part of bargain and party must promise give or do something for the other party. 3) Intention: once an agreement is being done then the agreement must have the legal consequences. 4) Form: certain formalities need to be observed in special cases. 5) Capacity: both parties need to be legally capable to enter into a contract. 6) Genuineness of consent: agreement need to done freely through open minds. 7) Legality: in contrary to public policy agreement must be legal. Such kinds of contract are called valid which possesses all the above mentioned requirements. If a party fails to keep up to their promise, the other party have the right to sued for the breach of contract. If the above essential elements are missing then the contract might be void, voidable or unenforceable.

Question 2: Negligence under law of tort: The tort of negligence gives rights to persons who have suffered damage to themselves or to their property, as against a party who has failed to take reasonable care for those persons safety. Negligence is the commonest tort claim and is relevant to the whole gamut of accidental injury situations: for example, road accidents, illness and injuries caused by workplace conditions and harm arising through medical treatment. It also plays an important part in product liability: a person who suffers damage because of defects in a product caused by the carelessness of the manufacturer or other party responsible for the state of the goods may have a right to sue in negligence, Keenan and Riches (2005). For successful claim of negligence the claimant must prove that: 1. the defendant owed the claimant a duty of care 2. breach to perform duty 3. which results damage

1) The duty of care The claimant must be able to show that he or she is someone who, in the circumstances, the defendant should have had in mind when embarking on the course of conduct which led to the alleged damage (or accident), Keenan and Riches (2005). The limits of the duty of care a. Reasonable foresee ability: No duty of care will exist unless it is reasonably foreseeable that the particular claimant was vulnerable to the risk created by the defendant, Keenan and Riches (2005). b. Proximity: a close relation is needed in between defendant acts and claimant when wrong complained was made. As Lord Atkin said in Donoghue v Stevenson , the claimant must be closely and directly affected by the defendants actions. In the following circumstances such proximity is lacking, Keenan and Riches (2005).

c. Fairness, justice and reason: This criterion covers a various public interest issues or policies. Court has the right to refuse the scope of negligence covered in existing area of law, or can develop a law to discourage people to take extra precautions in order to protect their interests.

2) Breach of Duty: Breach of duty is the second important element of negligence. Two stages to ascertain the breach of duty that what is the standard of care expected of the defendant and consideration of the factors which determine whether the defendant has fallen below that standard, Keenan and Riches (2005). There are certain factors which should be determined the breach of duty. They are as follows: The seriousness of the risk. Magnitude of the risk Likelihood of harm The level of precautions taken.

3) Damages: The claimant needs to prove that the breach of duty was done by the defendant which causes the damage. In story of Horace and the electric blanket outlined earlier, Horace would not be successful, despite proof of a defect in the blanket making it a fire risk, if there was evidence that the fire was actually caused by defective wiring in Horace house. It is not necessary that defendant behaviour may be liable for all his or her consequences, as it may be deemed too remote from their original act. In negligence a defendant is only liable for all reasonably foreseeable damage, but not for highly improbable or fluke results, Keenan and Riches (2005).

Question 3: Electronic Commerce Regulations 2002: The Directive on electronic commerce 3 was implemented on 21 August 2002 by the Electronic Commerce (EC Directive) Regulations 2002. The aims of the Directive are to eliminate the extent to which a Member State can control information society services emanating from another Member State by coordination of certain national laws and by clarification of certain legal concepts; lay down a clear and general framework covering certain legal aspects of electronic commerce thus ensuring legal certainty and consumer confidence; secure the freedom of movement of information society services; secure effective and speedy access to dispute resolution, including by electronic means and injunctive relief, Bainbridge (2008). Scope The Directive on electronic commerce applies in relation to information society services. These are services normally provided for remuneration, at a distance, by means of electronic equipment for processing and storage of data. Processing includes digital compression. Information services within the meaning in the Directive cover a wide range of activities, including: online contracting including selling goods online; remuneration other than by those who receive the service such as online information or commercial communications or the provision of search facilities for access to and retrieval of data (for example, Google or as in sponsored links retrieved during a search); transmissions point to point such as video on demand or provision of commercial communications by electronic mail, Bainbridge (2008). The Directive on electronic commerce does not apply to taxation, aspects relating to the data protection Directive and the privacy in telecommunications Directive, or agreements or practices governed by cartel law. Nor does it apply in respect of certain activities of information society services, being: activities of notaries or equivalent professions to the extent that they involve a direct and specific connection with the exercise of public authority; the representation of a client and defence of his interests before the courts; gambling activities involving wagering a stake with monetary value in games of chance, including lotteries and betting transactions. The Directive on electronic commerce is also without prejudice to the level of protection already available, in particular, in terms of public health and consumer interests, as established in a number of other Directives. For example, in
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relation to unfair terms in consumer contracts, distance contracts, misleading advertising, the advertising of medicinal products and advertising and sponsorship of tobacco products, Bainbridge (2008).

Question 4: Business Ethics: The primary reason for business people are being motivated to their business by narrow selfinterest. Their main aim is not to do social work but to sell the socially acceptable items to their customers and in return to gain high profit. As in UK due to various laws they are ethically doing their business accordingly. Similarly, when these business goes globally especially to third world countries they certainly violate the business ethics rules by bribing and giving presents for some return. If they were morally responsible they would not violate that local law. Bribing and presents are universally against business ethics. Hence, most business people are entirely working different when they are goes internationally due to their weak local laws and order. In today world businesses are just like an open book and all customers have close watch on their activities. Therefore, they are regularly involved in social activities and greener environment. But in every activity their self interest would comes first. As environmentally responsible business some business people uses strategy to charge for plastic bags and would recommend that these bags are 100 per cent recyclable. Even they knew that they would not recycle those bags. If anyone trying to have reasoning with them they would tell you that they are interested more in greener environment, but they will never tell that they are not doing for self interest. Business people do out of self-interest when they achieve all their goals and then they devoted their life for one single purpose. Mostly, they are involved in charity work or green environment. In such kind of work gives them satisfaction and trying to do it all the time. I do agree with Adam Smith statement that "It is not from the benevolence of the butcher, the brewer or the baker, that we expect our dinner, but from their regard to their own self interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages". This mechanism even still works in mostly third world countries where business can find cheap labour and avoid taxation. These entrepreneurs built factories in order to gain maximum profit. Even in current economic turmoil most companies get rid of expensive labour and trying to bring cheap labour from different countries that will be willingly to work no stop. Most of businesses only think about their own advantages.
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References: Bainbridge, David (2008), Introduction to Information Technology Law, PB Pearson Education UK David Bainbridge (2008), Introduction to Informational Technology Law, 6th Edition, PP Pearson Education. Denis Keenan, Sarah Riches (2005), Business Law, Pearson education, page 242-243 Law of Tort, [available at, http://www.academicdb.com/Law/Law_of_Tort/], [Accessed at, 14/04/2011]