Unit 1 2016 - Dublin Academy · Ref: 6/Bus/h/rm/Unit 1 . Oral Preparation Courses Separate to the Easter Revision Courses, The Dublin School of Grinds is also running Oral Preparation

6th Year Business

Higher Level Rónán Murdock

Unit 1 No part of this publication may be copied, reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission from The Dublin School of Grinds. Ref: 6/Bus/h/rm/Unit 1

Oral Preparation CoursesSeparate to the Easter Revision Courses, The Dublin School of Grinds is also running Oral Preparation Courses. With the Oral marking component of the Leaving Certificate worth up to 40%, it is of paramount importance that students are fully prepared for these examinations. These courses will show students how to lead the Examiner towards topics that the student is prepared in. This will provide students with the confidence they need to perform at their peak.

ORAL PREPARATION COURSE FEES:

PRICE TOTAL SAVINGS

1st Oral Course €140 €140 -

2nd Oral Course €100 €240 €40

Looking to maximise your CAO points?Easter is well known as a time for students to vastly improve on the points that they received in their mock exams. To help students take advantage of this valuable time, The Dublin School of Grinds is running intensive exam-focused Easter Revision Courses. Each course runs for five days (90 minutes per day).

The focus of these courses is to maximise students’ CAO points. Special offer: Buy 1st course and get 2nd course free. To avail of this offer, early booking is required as courses were fully booked last year.

What do students get at these courses?

9 90 minutes of intensive tuition per day for five days, with Ireland’s leading teachers.

9 Comprehensive study notes.

9 A focus on simple shortcuts to raise students’ grades and exploit the critically important marking scheme.

9 Access to a free supervised study room.

9 Access to food and beverage facilities.

EASTERREVISION COURSES EASTER REVISION COURSE FEES:

PRICE TOTAL SAVINGS

1st Course €295 €295 -

2nd Course FREE €295 €295

3rd Course €100 €395 €490

4th Course €100 €495 €685

5th Course €100 €595 €880

6th Course €100 €695 €1,075

7th Course €100 €795 €1,270

8th Course €100 €895 €1,465

9th Course €100 €995 €1,660

To book, call us on 01-442 4442 or book online at www.dublinschoolofgrinds.ie

NOTE: These courses are built on the fact that there are certain predicable trends that appear and reoccur over and over again in the State Examinations.

FREE DAILY BUS SERVICE For full information on our Easter bus service, see 3 pages ahead.

NOTE: Any bookings for Junior Cert courses will also receive a weekly grind in one subject for the rest of the academic year, free of charge. This offer applies to 3rd and 2nd year students ONLY.

Timetable An extensive range of course options are available over a two-week period to cater for students’ timetable needs. Courses are held over the following weeks:

» Monday 21st March – Friday 25th March 2016 » Monday 28th March – Friday 1st April 2016

All Easter Revision Courses take place in The Talbot Hotel, Stillorgan (formerly known as The Stillorgan Park Hotel).

BOOK EARLY TO AVAIL OF THE SPECIAL OFFER

BUY 1ST COURSE GET 2ND COURSE

F R E E ! Due to large course content, these subjects have been

divided into two courses. For a full list of topics covered in these courses, please see 3 pages ahead.

*

6th Year Easter Revision CoursesSUBJECT LEVEL DATES TIME

Accounting H Monday 21st March – Friday 25th March 8:00am - 9:30am

Agricultural Science H Monday 28th March – Friday 1st April 2:00pm - 3:30pm

Applied Maths H Monday 28th March – Friday 1st April 8:00am - 9:30am

Art History H Monday 28th March – Friday 1 April 8:00am - 9:30am

Biology Course A* H Monday 21st March – Friday 25th March 8:00am - 9:30am

Biology Course A* H Monday 21st March – Friday 25th March 12:00pm - 1:30pm

Biology Course A* H Monday 28th March – Friday 1st April 10:00am - 11:30am

Biology Course B* H Monday 21st March – Friday 25th March 10:00am - 11:30am

Biology Course B* H Monday 21st March – Friday 25th March 2:00pm - 3:30pm

Biology Course B* H Monday 28th March – Friday 1st April 8:00am - 9:30am

Business H Monday 21st March – Friday 25th March 12:00pm - 1:30pm

Business H Monday 28th March – Friday 1st April 8:00am - 9:30am

Chemistry Course A* H Monday 28th March – Friday 1st April 12:00pm - 1:30pm

Chemistry Course B* H Monday 28th March – Friday 1st April 2:00pm - 3:30pm

Classical Studies H Monday 21st March – Friday 25th March 8:00am - 9:30am

Economics H Monday 21st March – Friday 25th March 8:00am - 9:30am

Economics H Monday 28th March – Friday 1st April 10:00am - 11:30am

English Paper 1* H Monday 21st March – Friday 25th March 12:00pm - 1:30pm

English Paper 2* H Monday 21st March – Friday 25th March 10:00am - 11:30am

English Paper 2* H Monday 21st March – Friday 25th March 2:00pm - 3:30pm

English Paper 2* H Monday 28th March – Friday 1st April 10:00am - 11:30am

English Paper 2* H Monday 28th March – Friday 1st April 12:00pm - 1:30pm

French H Monday 21st March – Friday 25th March 10:00am - 11:30am

French H Monday 28th March – Friday 1st April 8:00am - 9:30am

Geography H Monday 28th March – Friday 1st April 8:00am - 9:30am

Geography H Monday 28th March – Friday 1st April 10:00am - 11:30am

German H Monday 21st March – Friday 25th March 10:00am - 11:30am

History (Europe)* H Monday 21st March – Friday 25th March 2:00pm - 3:30pm

History (Ireland)* H Monday 21st March – Friday 25th March 12:00pm - 1:30pm

Home Economics H Monday 21st March – Friday 25th March 10:00am - 11:30am

Irish H Monday 21st March – Friday 25th March 10:00am - 11:30am

Irish H Monday 28th March – Friday 1st April 12:00pm - 1:30pm

Maths Paper 1* H Monday 21st March – Friday 25th March 8:00am - 9:30am

Maths Paper 1* H Monday 21st March – Friday 25th March 12:00pm - 1:30pm

Maths Paper 1* H Monday 28th March – Friday 1st April 10:00am - 11:30am

Maths Paper 1* H Monday 28th March – Friday 1st April 2:00pm - 3:30pm

Maths Paper 2* H Monday 21st March – Friday 25th March 10:00am - 11:30am

Maths Paper 2* H Monday 21st March – Friday 25th March 2:00pm - 3:30pm



Maths O Monday 21st March – Friday 25th March 8:00am - 9:30am

Maths O Monday 28th March – Friday 1st April 12:00pm - 1:30pm

Physics H Monday 28th March – Friday 1st April 10:00am - 11:30am

Spanish H Monday 21st March – Friday 25th March 2:00pm - 3:30pm

Spanish H Monday 28th March – Friday 1st April 10:00am - 11:30am

6th Year Oral Preparation CoursesSUBJECT LEVEL DATES TIME

French H Sunday 20th March 10:00am - 2:00pm

German H Saturday 26th March 10:00am - 2:00pm

Irish H Saturday 26th March 10:00am - 2:00pm

Spanish H Saturday 19th March 1:00pm - 5:00pm

5th Year Easter Revision CoursesSUBJECT LEVEL DATES TIME

Maths H Monday 28th March – Friday 1st April 8:00am - 9:30am

English H Monday 28th March – Friday 1st April 4:00pm - 5:30pm

Note: 5th year students are welcome to attend any 6th year course as part of our buy 1 get 1 free offer.

3rd Year Easter Revision CoursesSUBJECT LEVEL DATES TIME

Business Studies H Monday 28th March – Friday 1st April 8:00am - 9:30am

English H Monday 21st March – Friday 25th March 8:00am - 9:30am

English H Monday 28th March – Friday 1st April 2:00pm - 3:30pm

French H Monday 28th March – Friday 1st April 12:00pm - 1:30pm

Geography H Monday 28th March – Friday 1st April 12:00pm - 1:30pm

German H Monday 21st March – Friday 25th March 8:00am - 9:30am

History H Monday 21st March – Friday 25th March 4:00pm - 5:30pm

Irish H Monday 28th March – Friday 1st April 2:00pm - 3:30pm

Maths H Monday 21st March – Friday 25th March 10:00am - 11:30am

Maths H Monday 21st March – Friday 25th March 12:00pm - 1:30pm

Maths H Monday 28th March – Friday 1st April 10:00am - 11:30am

Maths O Monday 28th March – Friday 1st April 12:00pm - 1:30pm

Science H Monday 28th March – Friday 1st April 2:00pm - 3:30pm

Science H Monday 21st March – Friday 25th March 2:00pm - 3:30pm

Spanish H Monday 21st March – Friday 25th March 12:00pm - 1:30pm

2nd Year Easter Revision CoursesSUBJECT LEVEL DATES TIME

Maths H Monday 21st March – Friday 25th March 2:00pm - 3:30pm

NOTE: Any bookings for Junior Cert courses will also receive a weekly grind in one subject for the rest of the academic year, free of charge. This offer applies to 3rd and 2nd year students ONLY.

© Dublin School of Grinds Page 1 Rónán Murdock

Unit 1 will not appear in your ABQ question. It will in appear Section 3, Question 1. It will be worth between 15% and 20% of your total Leaving Cert exam. Table of Contents People in Business ……………....…………………………...……….….2 Consumer Conflict ……………....…….………………………………..22 Industrial Relations Conflict ……………………………..……..............35 Where could you expect to see Unit 1 in June 2016?

Short Questions 20 Marks A.B.Q. 0 Marks Long Questions 60 Marks Total 80 Marks

Between 15% and 20% of your leaving Cert Grade.


People in Business A business is an organisation. It is set up to provide goods & services. Stakeholders are any person/ group who is directly affected by the decisions a business takes. Who are the main stakeholders in business?

1. Entrepreneurs 2. Investors 3. Employers/ Managers 4. Employees/ Workers 5. Producers 6. Suppliers/ Service Providers 7. Consumers 8. Interest Groups

1. THE ROLE OF THE ENTREPRENEUR IN BUSINESS

An Entrepreneur à a person who thinks up new ideas and use their initiative to turn their ideas into business realities. When an entrepreneur sets up a business they face 2 risks:

1. Personal Risk – The risk that if the business fails they will lose their confidence. 2. Financial Risk – The risk that if the business fails they will lose any money they have

invested.

Examples of Entrepreneurs:

a) Mark Zuckerberg set up Facebook in 2004. The social media giant has since been listed on the NASDAQ and has over 1 billion active users per month.

b) Bill Gates founded Microsoft in 1975.

2. THE ROLE OF THE INVESTOR IN BUSINESS An Investorà a person who provides an entrepreneur with the capital needed to set up and run a business. They do so in the hope or receiving a return on investment. The investor lends money to the entrepreneur in 2 ways:

1. Debt Capital – The entrepreneur has to repay the investor all money they have received as well as paying them interest.

2. Equity Finance – The investor buys shares in the entrepreneur’s business. The investor is now known as a shareholder and owns a percentage of the business.

Have two points and an example prepared for each stakeholder!

What example should you go with in the leaving cert?

A or B


Examples of Investor: Duncan Banatyne from the show Dragon’s Den is an investor. He provides both capital and training for entrepreneurs on the show. NB à if you are stuck in the exam you could ______________________________________________.

3. THE ROLE OF THE EMPLOYER IN A BUSINESS An Employer à a person who hires other people known as employees to work for them. By law, employers must:

1. Provide employment contract 2. Provide proper working conditions 3. Pay agreed wages

Example of employer: Dell employ over 70,000 people worldwide. NOTE: it’s not just big companies like Dell that employ people. Your local newsagent is an employer.

4. THE ROLE OF THE EMPLOYEE IN A BUSINESS An Employee à a worker who bring a range of skills and expertise to the business. By law, employees must:

1. Do an honest day’s work 2. Not break the terms and conditions in the contract employment 3. To accept and carry out reasonable instructions from management

Example of employee: a computer engineer who works in Dell manufacturing computers.

5. THE ROLE OF THE PRODUCER IN A BUSINESS A Producer à is a business that manufactures goods for the market. They take raw materials and produce finished goods.

• The producer would not survive without the consumer. Therefor they must provide the consumer with good prices, good service and top-quality products.

Example of producer: Dell produce computers


6. THE ROLE OF THE CONSUMER IN A BUSINESS A Consumer à a person who buys goods/services from an entrepreneur for their own personal use.

• Without the consumer there would be no market. They are the most important business stakeholder.

• They look for good prices, good service and top-quality products. Example of a consumer: A teenager buying a mobile phone for themselves

7. THE ROLE OF THE SERVICE PROVIDER IN A BUSINESS A Supplier à a business that supplies an entrepreneur with the raw materials they need. A Service Provider à a business that provides essential support services for an entrepreneur.

• This saves entrepreneurs the time and trouble of having to do themselves. Examples of Service Providers:

1. Eircom provide businesses with communication services such as phone and internet. 2. Accountants provide accountancy expertise. 3. Panda provide waste disposal services

8. THE ROLE OF INTEREST GROUPS IN A BUSINESS

An Interest Group à an organisation that represents a particular group of people who have similar needs or objectives. An interest group may oppose or support the activities of a business, In order to get what they want they pressurise the government and businesses to change their practises. This is done through:

1. Lobbying They lobby politicians through petitions, letters and protests. 2. Boycotts They organise boycotts & publicity campaigns against businesses who act in an unethical manner Examples of Interest Groups:

1. The Irish Congress of Trade Unions (ICTU) fights for the rights of Irish workers. 2. IFA 3. Consumers Association of Ireland


Relationship Between Stakeholders .

All stakeholders have different relationships with each other. They are as follows:

1. Co-operative Relationship 2. Competitive Relationship

1. Co-operative Relationship This involves both parties working towards shared goals and for mutual benefit. A co-operative relationship is a win-win situation. Example: A co-operative relationship may exist between investors and entrepreneurs. An investor wants the entrepreneur to be as successful as possible and therefor will help them in any way possible. An entrepreneur wants to be successful so that they can attract investment in the future and therefor works alongside the investor towards a shared goal.

2. Competitive Relationship This involves two or more rival parties. They both want to be successful but this is impossible. There is only one winner in a competitive relationship. Example: Ryanair and Aer Lingus compete with each other in an effort to attract new consumers. If Ryanair announces half price fares for flights to New York Aer Lingus will often announce a similar deal.

Can I use a dynamic or dependant relationship? à NO!

2011 Section 3 – Question 1(a) – 15 Marks Outline, using examples, the relationship that can exist between ‘Investors’ and ‘Entrepreneurs’ in business.

Below is a screenshot from the marking scheme ââ


Contract Law A Contract à a legally binding agreement between two or more parties. What does legally binding mean?

• This means that if one party breaks the agreement, a judge can order that party to pay compensation or force them to carry out the contract as originally agreed.

• For an agreement to be a contract it must contain all 8 elements of a contract.

1. Offer 2. Acceptance 3. Consideration 4. Intention to Contract

5. Capacity to Contract

6. Consent to Contract

7. Legality of Form

8. Legality of Purpose

1. Offer

An Offer à when one party asks another party to enter into a deal with them.

• To be a valid offer, they must set out all the terms of the deal clearly, completely & without any conditions attached.

• An offer may be in speaking, writing or conduct1. An offer can be withdrawn at any stage before the other person accepts it.

NB à Make sure you know the difference between invitation to treat and an offer.

2. Acceptance Acceptance à is when a party who receives an offer agrees to all the terms of the deal without any conditions.

• They can accept it by speaking, in writing or by conduct2. • The party who receives the offer must accept all the conditions exactly as the contract

lays them out and cannot change them. • 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.

1 For example, you are offering to buy groceries at the supermarket when you place them on the conveyor belt. 2 The supermarket accepts your offer to buy the groceries when the shop assistant scans them.

Note! à Do not confuse an offer with an INVITATION TO TREAT. A price tag on an item in a shop window is not an offer by the shop. It is considered to be an invitation to treat. They are only an indicator of the price that the seller is willing to consider and possibly accept if offered. The seller/shop is free to reject any offers made by the customer.


3. Consideration

Consideration à for an agreement to be a contract each party must give something of value to the other party. This payment is also known as a consideration. Example: In the supermarket case you get the groceries and the shop gets the money. (The supermarket gives you groceries as consideration; you give them cash as consideration)

4. Intention to contract Intention to contract à both parties intend on the agreement to be a legally binding contract. They must be aware that they could end up in court if they break any conditions of the contract. Irish law presumes that:

1. All business agreements are intended to be legally binding. 2. All social agreements are not intended to be legally binding.

(Between family members or friends.)

5. Capacity to contract Capacity to contract à this means that all parties involved in the agreement have the power and legal ability to make a contract which is enforceable by law. The following people and businesses do not have the capacity to make a contract:

1. Age - People under the age of 18. 2. Mentality - People who mentally cannot make a sensible decision because they are

drunk, on drugs or insane. 3. Ultra Vires - A company cannot enter into a contract beyond their power as set out in

their Memorandum of Association. Any activity not covered by this document is said to be ultra vires.

4. Diplomatic Immunity - Diplomats cannot enter a contract because they have diplomatic immunity. This means they cannot be taken to court. A person who cannot be sued cannot enter a contract because this is one of the remedies for a breached contract.


6. Consent to Contract Consent to contract à 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. Extreme Example: You are deciding on your will. Your son puts a gun up to your head and says he will kill his brothers and sisters unless you leave him 100% of your wealth. You are forced to leave him 100% of you wealth in your will however the will is not valid as you did not do so under your own free will.

7. Legality of Form Legality of Form à some contracts are not considered valid if they are not in written form. Example: When buying a house a contract must be in written form. Otherwise the contract is invalid. The seller or buyer can pull out of the agreement up to any time before both parties sign the written contract.

8. Legality of Purpose Legality of Purpose à contracts that involve illegal actions are not considered valid. Example: a judge will not award compensation to a drug dealer if his smuggler doesn’t import drugs as promised. NOTE: come up with your own extravagant examples to help you remember the 8 elements of a contract.

Practice Listing the 8 Elements 1. 1. 2. 2. 3. 3. 4. 4. 5. 5. 6. 6. 7. 7. 8. 8.

This is an answer I came across correcting papers. Not only was this student an absolute nutcase but he also wasted valuable time.


Termination of a Contract 1. Agreement 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 a contract. Example: In 2013 The Jonas Brothers and their concert organisers agreed to cancel their USA tour due to “appalling” ticket sales. 2. Performance If both parties to the contract fulfil their contract obligations, the contract has been completely performed. Example: One Direction are paid €2,000,000 to perform at Croke Park. Upon full payment and completion of the concert the contract is terminated as both parties have fulfilled their obligations. 3. Breach of Contract 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 three band members from one direction don’t show up the contract is in breach and they broke an essential condition of the contract. 4. Frustration 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 1: A one direction concert cancelled due to a hurricance. Example 2: You order some two jumpers and a pair of runners online from America. America enters a war and businesses stop shipping goods out of the country because of the high likelihood of ships being bombed. You don’t receive your clothes or runners but you do receive your payment as a refund.

Whats wrong with example number 2?


The difference between a Condition and a Warranty Condition A condition is an essential element which goes to the heart of the contract. Breach of condition is effectively breaking the contract. Example: One Direction doesn’t show up for a Concert. This is a breach of condition. The contract is terminated and the concert organisers can sue One Direction. Warranty A warranty is a less important part of the agreement. A breach of warranty will often not break the contract. Breach of warranty generally results in a fine. Example: One Direction don’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 still goes ahead. One direction may be fined for this breach of warranty.

Remedies for Breach of Contract Breach of Contract à if any condition of a contract is broken then breach of contract is said to have occurred. 1. Sue for Damages The aggrieved party takes the other party to court. The aggrieved party receive financial compensation for the loss suffered because of the breach. This is known as suing for damages. Example: The Concert organisers sue One Direction for damages and loss of potential earnings. 2. Specific Performance 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: One Direction redo the concert at a later date. 3. Rescind the contract The contract be cancelled. Both parties return to exactly the same position they were in before the contract started. This is a common remedy for contracts involving frustration. Example: One Direction repay the concert organisers the €2,000,000 and both parties go their separate ways.

Suppose One Direction don’t show up for a concert.

What happens?


PAST EXAM QUESTIONS 2013 Section 3 – Question 1(c) – 20 Marks Illustrate your understanding of the following terms in relation to a valid contract: Agreement; Legality of form; Consideration. 8 marks (3+3+2) 6 marks (3+3) 6 marks (3+3) 2012 Section 3 – Question 1(b) – 20 Marks A legal contract can be terminated by breach, frustration or agreement. Illustrate your understanding of the underlined terms. 7 + 7 + 6 marks - (4 + 3), (4+3) and (3+3) 2012 Section 1 – Question 1 – 10 Marks 1. Stakeholder a) A party acting beyond its legal powers. 2. Ultra Vires b) A quick, inexpensive way for dealing with consumer complaints. 3. Lobbying c) The manner in which a contract is drawn up. 4. Legality of Form d) A party that can affect or be affected by business decisions. 5. Labour Court e) Using an organised campaign to influence a decision maker. f) Establishes Joint Labour Committees.

1 2 3 4 5


2011 Section 3 – Question 1(a) – 15 Marks Outline, using examples, the relationship that can exist between ‘Investors’ and ‘Entrepreneurs’ in business 15 marks (3+6+6) 2010 Section 3 – Question 1(c) – 10 Marks In relation to the Law of Contract, illustrate your understanding of Capacity to Contract. 5 marks 5 marks 2009 Section 3 - Question 1(a) – 10 Marks Describe, using examples, the role interest groups have in business.

4+4+2 Marks


2009 Section 3 – Question 1 (b) – 15 Marks Discuss how consumers may benefit from the existence of a competitive relationship between producers. 3 @ 5 Marks (2+3) 2009 Section 1 – Question 8 – 10 Marks (a) Explain the legal term ‘consideration’. (b) Outline two other elements of a legally binding contract. § 2008 Section 3 - Question 1(a) – 15 Marks Describe a competitive and a co-operative relationship that exist between two producers in the same line of business. Use appropriate examples that support your answer. 8 + 7 marks 5 (2+3)+ 3 and 5(2+3) +2 2008 Section 1 – Question 2 – 10 Marks In relation to the law of contract distinguish between the terms “offer” and “invitation to treat”


2007 Section 1 – Question 5 – 10 Marks In a legal context, consideration means

2007 Section 1 – Question 8 – 10 Marks Identify two parties in business and describe a competitive relationship between them. 2007 Section 3 – Question 1 – 10 Marks Specific performance is a term used in contract law. Explain what it is and when it would be used. 2006 Section 3 - Question 1(a) – 15 Marks “The relationship between an enterprise and its stakeholders may be competitive or cooperative”. Discuss this statement, with appropriate examples. 8 + 7 marks (3 + 3 +2) and (3 + 3 + 1)


2006 Section 3 – Question 1(c) – 20 Marks Explain the elements of a valid contract. 5 @ 4 Marks (2+2) 2005 Section 3 - Question 1 – 15 marks Describe important aspects of the relationship between producers and consumers in business. Producer/Consumer Relationship 5 + 5 + 5 marks (2 + 3) 2005 Section 3 - Question 1 – 20 Marks Explain four methods by which a legal contract may be terminated.

1.

2.

3.

4.

Contract Termination 4 at 5 marks (2 + 3)


2005 Section 1 – Question 1 – 10 Marks Explain the legal term ‘capacity to contract’. Give two examples of situations where an individual or legal entity does not have capacity to contract. 4 + 3 +3 marks 2004 - Section 3 - Question 1(a) – 20 Marks Read the information supplied and answer the questions which follow. Describe a co-operative and competitive relationship that would typically exist between Mecca and other business organisations. A Co-operative and a Competitive Relationship: 10 + 10 marks (4 + 4 + 2). Must illustrate with example. (Total 20 marks) 2003 Section 3 - Question 1 – 10 Marks Illustrate the role of interest groups in business.

The Chief Executive of Mecca Enterprises, a national firm in the leisure business, believes that good relationships, which help in resolving situations of conflict between business organisations, are most important. At present, however, she feels that there is a very high risk of ongoing conflict in the future.


2003 Section 3 - Question 1 – 30 Marks Explain, using examples where appropriate, the essential elements of a valid contract. 1. 2. 3. 4. 5. Elements of valid contract. 5 at 6 marks (2 + 2 + 2 marks). (Total 30 marks) 2002 Section 3 - Question 1 – 20 Marks Describe, using examples, one co-operative and one competitive relationship that may exist either between or within organisations. 2002 Section 3 - Question 1 – 10 Marks Outline the role of any two parties involved in business.


2001 Section 3 - Question 1 – 20 Marks Define ‘contract’. Outline why an invitation to treat is not a contract 2001 Section 3 - Question 1 – 15 Marks Contrast the relationship that exists between entrepreneurs and investors in a business enterprise. 2000 Section 1 – Question 1 – 10 Marks 1. Consumer a) The power of a natural or legal person, who is in a position to form a

contract. 2. Consideration b) People working together in a joint effort to help each other. 3. Capacity c) A term that is important and goes to the heart of a contract. 4. Co-operation d) A difference that arises between individuals or groups. 5. Condition e) A person or organisation who purchases goods or services. f) A benefit that passes from one party to another in a contract

1 2 3 4 5 1999 Section 3 - Question 1 – 15 Marks Explain the relationship between producers and consumers in business.


SAMPLE ANSWERS 2013 Section 3 – Question 1(c) – 20 Marks Illustrate your understanding of the following terms in relation to a valid contract: Agreement; Legality of form; Consideration. Agreement For an agreement to exist there must be a complete, unconditional offer and acceptance of that offer. An offer is a proposal which becomes legally binding if accepted and may be written, oral or implied. An acceptance is accepting the offer unconditionally and may be written, oral or implied. Example: Mary is selling her car for €500. John offers Mary €500 for the car. Mary agrees on this price. They handshake on this deal. This is an agreement. Legality of Form Certain contracts must be drawn up in a particular manner to be considered legal. Some contracts are invalid unless they are in written form. Example: Mary agrees with John that she will sell him her house for €100,000. For this agreement to be considered a contract they must fill out forms in writing. When property is involved contracts must be in written form, otherwise they are considered invalid. Consideration A contract is not valid unless there is a consideration. This is the payment that each party receives in exchange for entering the contract. Example: In the car deal John pays Mary €500 as consideration. John receives the car as consideration.


2007 Section 3 – Question 1 – 10 Marks Specific Performance is a term used in contract law. Explain what it is and when it would be used. Specific Performance Specific performance is when a judge orders one party in an agreement to carry out their side of the contract as was originally planned. This may be on a later date than was previously planned. Example: If Eminem had planned a concert for Dublin in July and was paid a $250,000 advance but had to cancel because of illness a judge may order him to perform in August. This way the event organiser is not at a disadvantage because of Eminem’s cancellation. 2004 - Section 3 - Question 1 – 20 Marks Read the information supplied and answer the questions which follow. Describe a co-operative and competitive relationship that would typically exist between Mecca and other business organisations. 1. Co-Operative Relationship A co-operative relationship is one in which both parties work side by side for the good of all involved. Such a relationship is positive for both parties. 2. A co-operative relationship may exist between Mecca Enterprise and other business organisations if they come together to work on a project. This is called a strategic alliance. Mecca Enterprise may provide a gym instructor to develop a gym programme for customers while the other business provides a dietician. 3. Competitive Relationship A competitive relationship is one in which both parties are in competition with one another. There can only be one winner. 4. A competitive relationship may exist between Mecca Enterprise and another business in a strategic alliance. There may be conflict between both parties over how profits are divided. This may result in a law suit with either Mecca Enterprise or the other business being sued.

The Chief Executive of Mecca Enterprises, a national firm in the leisure business, believes that good relationships, which help in resolving situations of conflict between business organisations, are most important. At present, however, she feels that there is a very high risk of ongoing conflict in the future.


2001 Section 3 - Question 1 – 20 Marks Define ‘contract’. Outline why an invitation to treat is not a contract 1. Contract A contract is a binding agreement between two or more persons that is legally enforceable. 2. This means that if one party breaks the agreement, a judge can order that party to pay compensation or force them to carry out the contract as originally agreed. An agreement is a contract if, and only if, it contains the 8 elements of a contract which include: an offer, an acceptance, legality of form etc. 3. Invitation to Treat An invitation to treat may be a price tag on goods or an advertisement. Businesses use such tools as a method of attracting customers and boosting sales. 4. An invitation to treat is not a contract because it does not contain an offer which is the first element of any valid contract. The customer in a shop makes an offer when they take their goods up to the till. The shop accepts or rejects such an offer. NB à definitions from Unit 1 are particularly important. In the long questions you will often be asked to define a term. If you can’t your down marks straight away.


Consumer Conflict Consumer à a person who buys goods/ services from a business/ entrepreneur for their own personal use.

Causes of consumer conflicts

1. Bad price 2. Bad customer service 3. Poor-quality goods/ services

Consumer conflicts can be solved in 2 ways:

1. Non-legislative methods 2. Legislative methods

Non-Legislative methods of Solving Consumer Conflicts

1. Meet and Negotiate 2. Letter of complaint 3. Consumer’s Association of Ireland

1. Meet and Negotiate

Negotiation à when the consumer and retailer bargain and try to reason with one another. What steps are involved in negotiating?

1. The consumer approaches the manager and makes a complaint. The consumer’s tone should be firm but polite.

2. The consumer shows proof of the purchase they have made. 3. The consumer and manager will continue to negotiate until a compromise has been met.

2. Letter of Complaint

If the consumer is unhappy with how their face-to-face negotiating goes they should write a letter of complaint. What steps are involved?

1. Write a formal letter. 2. Send it to both the shop manager and head office.

NOTE: writing a letter of complaint is good evidence in case third party intervention is required.


3. Consumers’ Association of Ireland The Consumers’ Association of Ireland (CAI) is an interest group for consumers.

What is the CAI’s aim?

1. To ensure the consumer knows their rights, gets good value & high quality goods/ services.

How do they achieve this aim?

1. Magazine They produce a magazine called Consumer Choice which encourages consumers to understand their rights.

2. Telephone Service They provide expert advice to any consumer through a telephone service. If a consumer has any problems with a good/ service they can contact the CAI in this manner.

3. Website The CAI has a website which informs consumers of where to find better value as well as better quality goods/ services. A consumer can make a complaint through the CAI’s website. NOTE: have you noticed that the CAI provides their consumer services through the Media? Well, have you?

Legislative Methods of Solving Consumer Conflicts

1. Sales of Goods and Supply of Services Act, 1980. 2. Consumer Protection Act, 2007. 3. National Consumer Agency. 4. Small Claim Courts. 5. The Ombudsman.


Sales of Goods and Supply of Services Act, 1980 1. Goods and Services Any good a consumer buys must be of merchantable quality, fit for their purpose, as described & identical to any sample shown. When a consumer buys a service they have the right to expect the supplier has the necessary skill set and that they provide the service with proper care and attention.

2. Retailer is Responsible The responsibility for sorting out a complaint from a consumer rests with the retailer. This is because when a consumer buys a good/ service a contract is formed between both the retailer/ supplier and the consumer.

3. Illegal Signs This law makes the hanging of certain signs illegal. Examples include:

4. Guarantee A guarantee can give the consumer extra protection or give the consumer extra choice. Guarantees cannot overwrite the law.

5. Inertia Selling This is where goods are sent to a person who hasn’t ordered them and the seller later demands payment for them after the consumer has used it. This law makes this practice illegal. Evaluation The law does a good job of protecting consumers because it ensures the consumer that a good or service is of a merchantable quality and that they cannot be fooled by illegal signs.

No Refunds on Sale Items Credit Notes Only No Refunds

If any of the above rules are broken by a service a consumer is entitled to a remedy. Refund, Replacement of product / service or Repair of fault.

R.I.G.S.


The Consumer Protection Act, 2007

1. Protects consumers against False claims made about goods and services 1. About the product or service. à A company saying their food is fat free when it’s not. 2. About usage/ history of 2nd hand goods. à A car dealer changing the mileage on a car.

2. Restricted Practices Certain acts are banned under this law:

1. Making false claims about cures for illnesses. 2. Offering free prizes when it costs money to claim these prizes. 3. Running competitions when the top prize is not available

3. Aggressive Selling 1. Threatening, abusive language and behaviour on the retailer part is banned by this law. 2. A retailer cannot take advantage of a consumer’s circumstances. (old age etc.)

4. Pricing 1. Grocery stores selling Fruit must provide weighing scales. 2. If a special offer price is only available for a limited period this must be clearly stated. 3. In emergency situations the government can introduce a maximum price for a product.

5. Enforcement of the Act The National Consumer Agency was established under the Consumer Protection Act 2007. It’s role is to enforce the Consumer Protection Act.

• Compliance Notice The NCA can issue a business with a compliance notice. This orders a business to stop engaging in prohibited practices and to obey the law by a certain date. • Prohibition Order A prohibition order is similar to a compliance notice only that the business under the prohibition order must stop engaging in prohibited practices and obey the law immediately. • Name & Shame The NCA can publish the names of businesses that break the act. All consumers can avail of this information. • Fines The NCA have the power to issue on-the-spot fines to a business if they breach and aspect of the act.

Like most questions in business obtaining a high grade in this question requires remembering the titles. Think of your friend fraping you on facebook to help you remember the titles. FRAPE!


Functions of the National Consumer Agency (NCA) 1. Breaches of the act It investigates businesses that breach consumer law. It has the power to:

• Enter the business premises (with/ without Gardaí) • Take evidence • Apply to the courts for search warrants.

1. Rights of Consumers It informs consumers about their rights in a number of ways:

• It provides a consumer phone service that provides consumers with information on how to solve their problems.

• It runs a website full of consumer information- www.consumerconnect.ie 2. Advocate for Consumers • By being an advocate The National Consumer Agency promotes and protects the interests

of consumers. • It informs the government of consumers’ problems so that these can be sorted out by law.

4. Conducts Research

• It carries out research into consumer issues to find out what the most important issues to Irish consumers are, what areas of consumer law need to be updated and what areas consumers lack in information/ need more information about.

5. Enforcement of Consumer Protection Act

It makes sure consumer legislation is followed by businesses. • It has the power to issue on-the-spot fines to businesses that break the law about price

displays. • It can “name and shame” businesses that break consumer law by publishing their details

in its Consumer Protection List.

B.R.A.C.E.

If you are asked about the functions of the National Consumer Agency think of the word BRACE.


Small Claims Court If a consumer and a retailer are unable to resolve a dispute the consumer might look to bring the retailer to The Small Claims Court. Aim à sort out consumer claims quickly, cheaply and without a solicitor If this comes up in the Leaving Cert give the examiner the following facts.

1. The largest amount a consumer can sue a retailer for is €2,000.

2. A special application form must be filled out along with a €25 fee.

3. This meeting is as informal as possible and private.

4. After listening to all the evidence the Registrar makes their ruling.

5. There is no need for a __________________ to be present.

6. It the Registrar is unable to solve the complaint, they will bring the case to the District

Court for a hearing.

Evaluation of the Small Claims Court The Small Claims Court is very efficient in protecting the consumer because it is quick, cheap and a solicitor is only optional.

75% Success rate.

Caveat Emptor à Let the buyer beware The consumer should take proper care when buying goods / services. They must

1. Research the range of products available.

2. Compare the prices and quality

3. Read the small print that comes with the product.


The Ombudsman If a consumer has a problem with any of the 4 following public bodies they can make a complaint to The Ombudsman. Legally the ombudsman can investigate the following 4 institutions.

The Ombudsman operates as follows:

1. Complaint The consumer makes a complaint to The Ombudsman, this must be done within one year of the incident. There is no fee for the services of The Ombudsman. 2. Investigation The ombudsman will investigate the complaint. 3. Recommendation After considering all of the evidence The Ombudsman will make a recommendation.

• The recommendation/ findings are not legally binding. • The public body doesn’t have to obey The Ombudsman. • But if the public bodies don’t comply, The Ombudsman will include them in a

report sent to Dáil Éireann every year. Evaluation of The Ombudsman

• The ombudsman is very effective because the service is provided free of charge. • The Ombudsman also discourages bribery in public state bodies. The ombudsman is

independent of the government. • Since 1984 The Office of the Ombudsman has helped over 80,000 people with valid

complaints and advised and guided many others.

Government Departments An Post Health Services Executive (HSE) Local Authorities

1. This service is free of charge. 2. The ombudsman is

independent of the government.


PAST EXAM QUESTION

2014 Section 3 – Question 1(c) – 20 Marks Outline a consumer’s legal rights under the terms of the Sale of Goods and Supply of Services Act 1980, with reference to any three of the following: (i) Merchantable Quality (ii) Guarantees (iii) Signs limiting consumer rights (iv) Unsolicited Goods. 2013 Section 1 – Question 2 – 10 Marks What do the letters NCA stand for?

Outline two functions of the NCA:

(a) 4 marks (b) 2 @ 3 marks (2+1)

2012 Section 3 – Question 1(c) – 20 Marks Evaluate the role and functions of the National Consumer Agency (NCA) in protecting consumers.

3 @ 6 marks (3+3)+2

B.R.A.C.E.


2011 Section 3 – Question 1(b) – 30 Marks (i) Discuss the rights of consumers under the terms of the Sale of Goods and Supply of Services Act 1980.

1)

2)

3)

4)

(ii) Illustrate two forms of redress available to consumers for breach of the Act.

1.

2. 4@ 5 marks (2+3) 2 @ 5 marks (2+3)

2010 Section 3 – Question 1(b) – 20 Marks Evaluate the role of each of the following in protecting consumers: (i) The Small Claims Court; (ii) The Office of the Ombudsman for Public Services.

7 marks (4+3) 7 marks (4+3) 6 marks (3+3) Evaluation required in both cases

R.I.G.S.


2007 Section 3 – Question 1(b) – 30 Marks Describe the provisions of the Sale of goods and Supply of Services Act 1980 and evaluate its effectiveness.

6 @ 5 marks (2 + 3)

2006 Section 1 – Question 2 – 10 Marks Outline two functions of the Director of Consumer Affairs (National Consumer Agency)

2005 Section 3 – Question 1 – 25 Marks Under the terms of the Consumer Information Act 1978 (Consumer Protection Act) describe and evaluate the role of the director of consumer affairs. (National Consumer Agency)

Director Of Consumer Affairs 5 at 4 Marks + 5 evaluation

R.I.G.S.

B.R.A.C.E.

B.R.A.C.E.


2001 Section 3 – Question 1 – 25 Marks Evaluate how effective the main provisions of the Sale of Goods and Supply of Services Act 1980 are in protecting customers.

PAST LEAVING CERT QUESTIONS 2012 Section 3 – Question 1 – 20 Marks Evaluate the role and functions of the National Consumer Agency (NCA) in protecting consumers. 1. Rights of Consumers The NCA informs consumers about their rights. They provide a customer phone service which gives consumers information on how to solve their problems. They provide a similar service on their website: www.consumerconnect.ie 2. Breaches Investigation The NCA investigates businesses that breach consumer law. It has the power to apply for a search warrant, enter a business’ premises without Gardaí and take evidence. 3. Consumer Legislation The NCA makes sure consumer legislation is followed by businesses by issuing on-the-spot fines to businesses that break price display laws. They also name and shame businesses that breach consumer laws in the Consumer Protection List. Evaluation The NCA was set up under the Consumer Protection Act 2007. I think they do a brilliant job in protecting consumers against illegal commercial practices. Not only do they provide the above functions, but they also conduct research into consumer issues. This often results in new consumer legislation being introduced by the Irish government.

R.I.G.S.


2011 Section 3 – Question 1(b) – 30 Marks (i) Discuss the rights of consumers under the terms of the Sale of Goods and Supply of Services Act 1980. (ii) Illustrate two forms of redress available to consumers for breach of the Act. 1. Goods Under the terms of the Sales of Goods and Supply of Services Act 1980 any good a consumer buys must be of merchantable quality and fit for their purpose. Goods must also be as described and identical to any sample shown. These are the rights of consumers. 2. Services This act also protects the consumer when they buy services. By law when a consumer buys a service they have the right to expect that the supplier has the necessary skill set to provide the service. The consumer is protected in that the supplier must provide the service with proper care and diligence. 3. The Retailer is responsible The Sales of Goods and Supply of Services Act 1980 states that the retailer is responsible for sorting out any complaints the consumer may have. When a consumer buys a good/ service they enter into a contract with the retailer and not the producer. This is why the retailer is responsible for solving consumer complaints. 4. Inertia Selling Inertia selling is where a person receives goods they did not order in the post. They are later requested to pay for these unwanted goods. This Act makes inertia selling illegal which protects the consumer. Redress: Refund/ Replacement 1. Refund If a consumer buys a good that does not meet the standards set out by the Sales of Goods and Supply of Services Act they are entitle to a complete refund. This is one form of redress that is used to solve consumer conflicts. Example: You pay for a guided tour of Rome through English. The guide cannot speak English and gives the tour in Italian. You are entitled to a refund. 2. Replacement If a consumer buys a faulty good they can ask for a working replacement. This form of redress is common, especially when the good cannot be easily repaired. Example: You buy an iPad which stops working for no apparent reason. When you bring it to the Apple Store they say it cannot be repaired. You are entitled to a replacement iPad. NB à Make sure you know that when you are asked to refer to forms of “redress” that you are expected to use the 3r’s – Refund, Repair, Replacement.


2005 Section 3 – Question 1 – 25 Marks Under the terms of the Consumer Information Act (Consumer Protection Act 2007) describe and evaluate the role of the director of consumer affairs. (National Consumer Agency) 1. Information The National Consumer Agency provides information for the consumer. It does so through publishing consumer’s rights cards, a consumer phone service and a website: www.consumerconnect.ie. 2. Investigation The National Consumer Agency investigates businesses that breach consumer law. They have the legal power to enter premises with or without Gardaí and to apply to the courts for search warrants. 3. Consumer Legislation The National Consumer Agency makes sure that businesses follow consumer legislation. They do this through on-the-spot fines and also by naming & shaming. 4. Conducts Research The National Consumer Agency carries out research on consumer issues. They inform the government as to which laws are outdated and need to be reviewed. They also inform the government about the most pressing consumer issues at a present time which need to be further inspected. 5. Evaluation In my opinion The National Consumer Agency is a very effective organisation. They protect consumers through discouraging businesses to break consumer law. They achieve this through investigations and on-the-spot fines. They also try to update old consumer laws which is important.

Why did a large number of students get 0 marks on this question?


Industrial Relations Conflict Industrial Relations à the quality of the relationship between employers and employees.

Why is a good employee-employer relationship important? 1. Increased Morale and Productivity Good industrial relations lead to happy workers. Happy workers with high morale are normally more productive than unhappy workers. 2. Less Absenteeism When workers are happy in their job they are less likely to call in absent. A good employee-employer relationship is vital for this reason. 3. Lower Staff Turnover Staff turnover is the rate at which employees leave a business. Employing new workers is expensive because of high training costs. Good industrial relations result in decreased staff turnover. 4. Customer Loyalty When there is a good employee-employer relationship there is a smaller chance of constant industrial action. Customers don’t enjoy strikes.

Pay Increases / Pav Claims There are 4 reasons an employee may ask for a pay increase: 1. Productivity Increase If an employee is asked to work harder by a manager they make look for compensation in the form of a pay increase. This is known as a productivity claim. 2. Cost of Living Increase Workers will often make a claim for a pay increase in an effort to keep up with general rising prices and inflation. This is known as a cost of living claim. 3. Comparability Increase This is where employees ask for a pay increase when they see workers from different business doing similar jobs but earning more. 4. Relativity Increase Sometimes people’s jobs are linked with each other. If one person receives a pay increase then the other person may also seek one.


Trade Unions Trade Union à an interest group that supports and represents employees in the workplace. To be a member an employee pays an annual subscription to join the union.

Trade Union à 2 P’s in a POD

What are the functions/ benefits of being a member of a trade union?

1. Better Pay and Working Conditions Trade unions do their best to get better pay and working conditions for their members.

2. Job Protection Members of trade unions have much better job protection than non-members. The reason for this is that trade unions will kick up a fuss if one of their members is fired, especially if they were dismissed unfairly.

3. Pressure the government Trade Unions will lobby for laws protecting working. These cans be laws relating to safety regulations and maximum working hours per week etc.

4. Organise Industrial Action The trade union organises industrial action by workers to influence the employer during a trade dispute.

5. Representation & Negotiation in a Dispute In the case of an industrial dispute the trade union will represent its members. The union will pay for any legal costs involved in solving conflicts its members may have in the workplace

Shop Steward A shop steward is a worker and trade union member that has been elected by co-workers as their representative in the workplace. What does the shop steward do?

1. Communicate with employer about trade union members’ concerns. 2. Communicate with the trade union their about members’ concerns. 3. Recruit new members. 4. Provide information for new members.

P à Pay à Better pay and Working Conditions P à Protection à Job Protection P à Pressure à Pressure the government O à Organise à Organise Industrial Action D à Dispute à Representation in a dispute


Types of Industrial Action Action taken by workers in an effort to solve an industrial dispute. Here is a summary of different types of industrial actions:

1. Strike

2. Work to rule

3. All-out strike

4. Token stoppage

5. Sympathetic strike

6. Wildcat strike 1. Strike (Official or Unofficial) Strikes can be either official or unofficial. An official strike is legal in Ireland. First employees must hold a secret vote. If 51% of people want to go on strike they give their employer 7 days’ notice.The trade union instructs employees to cease working. They will pay workers strike pay. An unofficial strike is illegal in Ireland. An unofficial strike is one where employees don’t hold a secret vote and/or don’t give their employer 7 days’ notice. The trade union doesn’t recognise unofficial strikes and will not pay workers strike pay. 2. Work to rule This is where workers do the least amount of work possible under the terms of their employment contracts. An overtime ban or go slow may be part of “working to rule”. 3. All-out Strike This is where every single employee in the business goes on strike. For an all-out strike to be legal the workers must get the approval of the Irish Congress of Trade Unions. 4. Token Stoppage Workers temporarily stop work for a short period of time. This is an attempt to get the employer to listen to the workers and solve industrial disputes. 5. Sympathetic Strike This is where other workers or members of trade unions go on strike in support of co-workers. Many of these workers have nothing to do with the strike. 6. Lightning/ Wildcat Strike (unofficial) This is a sudden strike where no prior notice has been given. Employees literally walk out of the job. This sort of a strike is illegal in Ireland.

S W A T S


Conflict Resolution There are two methods of conflict resolution, non-legislative and Legislative.

Non-Legislative Methods of Solving Industrial Conflicts Non-Legislative methods for solving industrial disputes generally consist of meetings and discussions. 1. Negotiation This is where an employer/ manager and representatives of the employee (trade union) sit down with one another. They will discuss the reason for the dispute and attempt to come to a solution. Any deal that is agreed is known as a “collective agreement”. This collective agreement holds no legal power. 2. Conciliation This is where a third party known as a conciliator attempts to bring the employee and employer to a mutual solution. The conciliator is independent of the employee and employer. Steps involved in conciliation:

1. The conciliator listens to the employee/ employer discuss the industrial conflict. 2. The conciliator will give their opinion on how best to resolve the conflict. This will come

in the form of a formula of protocol to be followed. 3. Both parties can accept/ reject the conciliators formula of protocol.

3. Arbitration This is where a third party known as an arbitrator investigates an industrial dispute. The arbitrator will make a judgement on the matter. Steps involved in arbitration:

1. Firstly the employee and employer can agree beforehand as to whether the judgement will be legally binding. If they both agree it will be this is called “binding arbitration”.

2. The arbitrator listens to both parties side of the story. 3. The arbitrator gives a ruling on how best to resolve the conflict. This ruling is called a

judgement.

N.C.A.


Legislative Methods of Solving Industrial Conflicts This is where industrial conflicts are solved by using Irish law. Here is a summary of a number of acts that are used as legislative methods of solving conflicts:

1. Industrial Relations Act, 1990.

2. The Labour Relations Commission.

3. The Labour Court.

4. Employment Equality Act, 1998.

5. Unfair Dismissals Act, 1977 & 2007.

Legislation à any law the government passes.


Industrial Relations Act, 1990

1. Trade Dispute à This Act defines what a legitimate / illegal trade dispute is. Legitimate Trade dispute Illegal Trade disputes

1. Dismissal/ Suspension Workers have a legitimate trade dispute is there is an issue surrounding the dismissal or suspension of a co-worker. 2. Trade union recognition If a business fails to recognise at least 1 union then employees have a legitimate trade dispute. 3. Discrimination Any employee who is discriminated against has a legitimate trade dispute. 4. Pay and working conditions If they’re not satisfying or safe then employees have a legitimate trade dispute.

1. Disagreement on how business should be run A dispute is illegal if it concerns an employee unhappy with how the employer runs the business. 2. Dispute of a political nature An employer and employee who share different political views is not grounds for a legitimate trade dispute. 3. Attempt to enforce a closed-shop agreement This is where a worker can only have a job in a certain business if they are a member of a specific union.

2. Immunity A strike is legal once there has been a secret ballot, a week’s notice and it is peaceful. Thus, if a strike is legal workers cannot be sued, arrested or stopped. 3. Official Strike If employees want to go on an official strike, they must

1. Have a secret ballot/ vote with 51% or more employees vote in favour of a strike. 2. Give their employer a week’s notice before commencing the strike. 3. Have permission from their trade union

4. Primary and Secondary Picketing Legal Primary picketing is where the employees go on strike outside their business premises. Secondary picketing involves picketing by strikers of the premises of a firm that trades with their employer but is not otherwise involved in the dispute in question. 5. Labour Relations Commission The labour Relations Commission was set up under the Industrial Relations Act.. Evaluation of the Industrial Relations Act Very effective because it makes employers not recognising at least one trade union a legitimate trade dispute.


Labour Relations Commission The Labour Relations Commission was set up under the Industrial Relations Act, 1990 to

1. Assist in settling trade disputes and promote improves industrial relations. 2. Reduce the number of industrial conflicts coming before the Labour Court.

Functions of the Labour Relations Commission 1. Rights Commissioner The LRC appoints a Rights Commissioner who deals with industrial conflicts involving an individual or a small group of employees. This recognises the fact that some industrial disputes only affect a small number of workers. The Rights Commissioner will investigate such cases and issue a non-binding recommendation or a decision. This decision may be appealed to the Labour Court. 2. Equality Officer The LRC appoints an Equality Officer. The Equality Officer investigates disputes that cover the Employment Equality Act 1998. 3. Conciliation service The LRC employs an Industrial Relations Officer (I.R.O.) who provides a conciliation service. Their job is to try and solve any disputes between employers and employees. 4. Advisory, development and research service The LRC provides advice to employees and employers on how best to deal with their industrial conflicts. They also research industrial conflicts with a view to developing codes of practices that avoid such conflicts in the first place. 5. Codes of Practice The LRC consults with the ICTU and designs codes of practice. These codes of practice make it clear for employees/ employers what they should do in specific situations of industrial conflict. Evaluation of the Labour Relations Commission Despite the fact that the LRC’s agreements are often not legally binding they are still very effective with a success rate of ______% over the past number of years.

L R C E C A P

RECAP

Over 80% success rate.


The Labour Court Why is it called the court of last resort? Because disputes are referred to the labour court if:

1. The L.R.C. can’t resolve the dispute. 2. A decision by the rights commissioner is appealed. 3. A decision by the equality officer is appealed.

Functions of the Labour Court

1. Investigate disputes The Labour Court investigates disputes between employers and employees. It gives a non- legally binding recommendation to both parties.

2. Hear appeals against the Rights Commissioners’ recommendation If either party rejects the recommendation of the Rights Commissioner the case will be sent to the Labour Court. They will issue a legally-binding recommendation in such cases.

3. Register Collective Agreements The Labour Court registers any collective agreements between employers and employees. Once these agreements are registered they are legally binding. 4. Interpret Codes of Practice The Labour Court interprets the Labour Relations Commissioner’s codes of practice. It will also investigate any breach of these codes of practice. 5. Joint Labour Committees Establishes Joint Labour Committees which produce employment regulation orders enforceable by law. They regulate industries where workers have no union. Evaluation of the Labour Court Because the Labour Court is a court of last resort for solving industrial conflicts most employees and employers accept their recommendations. The Labour Court also has the respect of all parties in Industrial relations and the majority of their recommendations are accepted.

I D Investigate Disputes R C Rights Commissioner A Collective Agreements

COP Codes of Practice JLC Joint Labour Committees

I don’t really care about codes of practice or Joint Labour Committees

Not a court of law!

I don’t really care about Codes of Practice or Joint Labour Committees


Unfair Dismissal Act, 1977-2007 This protects all employees between 16-66 who have at least 1 year’s continuous service. 1/ 2. Grounds for a fair/ unfair dismissal

Reasons for Fair Dismissal Reasons for Unfair Dismissal 1. Incapable of doing the job 2. Incompetent 3. Not qualified 4. Misconduct 5. Redundancies

1. Member of a union 2. Pregnancy 3. Religion 4. Race 5. Suing employer 6. Traveller 7. Sexuality

3. Procedure for dismissal that employers must follow.

1. Counsel – point out what is wrong and must be fixed by the employee. 2. Verbal warning – employee is told they will be dismissed if they don’t fix the problem. 3. Written warning – same as verbal warning except in the form of a letter. 4. Suspension – Employee is then suspended. 5. Dismissal – the employee is dismissed. 6. The employee has a right to appeal the dismissal

4. Redress for Unfair Dismissal The 3 solutions for workers that are unfairly dismissed:

A. Re-instatement The employee returns to their old job and receives damages for a loss in pay.

B. Re-engagement The employee returns to their old job. The employee does not receive damages for a loss in pay.

C. Compensation The employee compensation for the period they were dismissed for. The maximum compensation is 2 years pay. They don’t get their job back.

5. Constructive Dismissal This Act makes constructive dismissal illegal. Constructive dismissal is when an employee resigns due to their employer’s unfair behaviour towards them. The employee should take a case to the Rights Commissioner in such a situation. It is up to the employee to prove the case. Evaluation Employees are protected against bullying bosses who practice constructive dismissal.

JOB DAMAGES (CASH)


The 5 main provisions of the Unfair Dismissals act are as follows. Notice that every title contains the word dismissal.

5 Titles Hints Cover the answer and test yourself

Fair Dismissal Fired F Dismissal

Unfair Dismissal Unfairly? U Dismissal

Procedure for Dismissal Protest to P Dismissal

Redress for Dismissal Rights R Dismissal

Constructive Dismissal Commissioner C Dismissal 2004 Section 3 – Question 1c - 20 Marks Under the terms of the Unfair Dismissals Act 1977/1993 explain the grounds for dismissal that are deemed to be unfair.

What should you do if you are unfair ly dismissed? Take a case to:

1. The Rights Commissioner from the Labour Relations Commission. 2. The Employment Appeals Tribunal.

Employment Appeals Tribunal (EAT) The EAT à this is an independent body responsible for implementing employee’s rights. Characteristics/ Functions:

1. 3 members – qualified chairperson, employee representative, employer representative. 2. The EAT hears a wide range of disputes including unfair dismissal claims. 3. The decision of the EAT is called a “determination”. It is legally binding and can only

be appealed to the High Court.

Remember 20 Marks = 4 Points

20 Marks = 8 Minutes


Employment Equality Act, 1998-2008 1. Discrimination Discrimination occurs when one person is treated less favourably than another. This act prevents discrimination in the workplace on the following 9 grounds:

Gender Marital Status Religion Age Family Status Disability Race Sexual Orientation Traveller

2. Employees must be Treated Equally Under this Act employees must be treated equally in pay, in working conditions, in dismissal and when they are being hired, trained & promoted. If they are not treated equally then they are being discriminated against. 3. Positive discrimination Under this Act employers are allowed to practice positive discrimination. This is where employers make it easier for any of the 9 groups that are generally discriminated against to achieve equality in the workplace. 4. Equality Authority The Equality Authority was set up under the Employment Equality Act, 1998. Its functions include:

1. Eliminating discrimination in the workplace. 2. Promoting equal opportunities for the 9 groups affected by discrimination. 3. Providing the public with information on the Employment Equality Act.

5. Director of the Equality Tribunal Under this law the Director of Equality Tribunal was set up. Below you will find the functions of the Director of Equality Tribunal. Evaluation of Employment Equality Act This act does a good job of protecting employees because there is a government backed official whose RULING MUST BE OBEYED.

Don’t worry if you can’t remember all nine grounds they

generally only ask for 5.

Remember the Equality Authority and Equality Tribunal was established under this Act.


Director of the Equality Tribunal / Investigations 1. Investigate Discrimination The Director of the Equality Tribunal was set up by the Employment Equality Act, 1998 to investigate cases of employee discrimination in the workplace. For a discrimination case to be investigated by McCutcheon he must receive a complaint within 6 months.

2. Minor Case In minor cases of discrimination, McCutcheon will refer the case to an Equality Mediation Officer, who will investigate it informally and in private. 3. Serious Case In serious cases of discrimination, McCutcheon will refer the case to an Equality Officer who will investigate it formally.

4. Final Decision It is the director himself who makes the final decision in all cases. His ruling must be obeyed. Decisions are binding and enforceable through the Circuit Court. All decisions may be appealed to the Labour Court within 42 days. The Equality Tribunal awarded €12,000 to a primary school teacher who was discriminated against because of her religion.

DIRECTOR OF EQUALITY TRIBUNAL

Minor Case

Serious Case

Equality Mediation

Officer

Equality Officer

DIRECTOR OF EQUALITY TRIBUNAL

Compensation?


PAST EXAM QUESTIONS 2015 Section 3 – Question 1(c) – 35 Marks The Director of the Equality Tribunal (previously known as the Director of Equality Investigations) published 22 decisions during September 2013 in areas of discrimination that included gender and disability. (i) Define employment discrimination as set out in the Employment Equality Act 1998. (ii) List three grounds other than gender and disability on which discrimination is outlawed under this Act. (iii) Evaluate the role of the Director of the Equality Tribunal in dealing with discrimination.


2014 Section 3 – Question 1(a) – 25 Marks (i) Outline three factors that can lead to industrial disputes in business. (ii) Discuss two types of official industrial action available to employees involved in an industrial dispute with employers. 2014 Section 1 – Question 8 – 10 Marks Outline two functions of the Labour Relations Commission. This could pop up as a short question à Define Equal Opportunities Employer. An Equal Opportunities Employer is a company that will hire people without discriminating against on any of the nine grounds of discimination as outlined under the Employment Equality Act. Employees will be selected, promoted and treated fairly on the basis of their capacity, suitability and according to the requirements of any position offered.

The purpose of the Industrial Relations Act 1990 is to put in place an improved framework for the conduct of industrial relations and the resolution of disputes.

SWATS

RECAP


2013 Section 3 – Question 1(b) – 20 Marks Evaluate any two of the following legislative approaches to solving conflict: (i) Small Claims Court; (ii) Labour Relations Commission; (iii) Employment Appeals Tribunal.

10 marks ((4@2)+2 evaluation) 10 marks ((4+4)+2 evaluation) 10 marks ((4+4)+2 evaluation)

2013 Section 1 – Question 7 – 10 Marks Explain the term ‘Constructive Dismissal’.

6 marks + 4 marks

2012 Section 3 – Question 1a – 20 Marks Outline the procedures an employer should follow under the Unfair Dismissals Acts of 1977-2007, before dismissing an employee.

7 +7+ 6 marks (4+3), (4+3) and (3+3)


2011 Section 3 – Question 1(c) – 15 Marks Describe how conflict between an employer and an employee could be resolved in a non-legislative manner. 15 marks (5+5+5)

2010 Section 3 – Question 1(a) – 30 Marks (i) Outline the impact on trade unions of the main provisions of the Industrial Relations Act 1990. (ii) Describe two types of official industrial action a trade union can undertake as part of a trade dispute.

3 @ 6marks (3 + 3) 2 @ 6 marks (3+ 3)

2010 Section 1 – Question 9 – 10 Marks Outline three grounds for fair dismissal under the terms of Unfair Dismissals Act 1977/93.

1@ 4 marks (2+2) 2@3 marks(1+2)

NCA


2009 Section 3 – Question 1(c) -‐ (35 Marks) (i) Explain the term ‘employment discrimination’ as set out in the Employment Equality Act 1998. List four distinct grounds on which discrimination is outlawed under the Act. (ii) Evaluate the role of the Director of Equality Investigations in resolving complaints of discrimination in the workplace.

12 Marks (8+4) 8 Marks (4 @ 2 Marks) 10 Marks (2@ 5 Marks (2+3)) 5 Marks (2+3)

2008 Section 3 – Question 1c - 20 Marks Evaluate the role of the Labour Court in dealing with industrial disputes.

I D R C A

COP JLC





2008 Section 1 – Short Question (10 Marks) List five grounds under which employment discrimination is outlawed in Ireland.

2007 Section 3 – Question 1a (20 Marks) Under the terms of the Industrial Relations Act 1990, (i) define a legitimate trade dispute and (ii) explain the role of the Labour Relations Commission.

(ii) explain the role of the Labour Relations Commission. R à E à C à A à P à

10 marks (5 + 5) 10 marks [(5 + 5) (2 + 3)]

2006 Section 3 – Question 1(b) - (25 Marks) (i) Under the terms of the Unfair Dismissals Act 1977/1993, explain the grounds for dismissal that are deemed to be fair. (ii) Describe the different types of redress that are available to employees for unfair dismissal. Illustrate your answer with appropriate examples.

3 @ 5 marks (2 + 3) 2 @ 5 marks (2 + 3)

RECAP


2004 Section 3 – Question 1c (20 Marks) Under the terms of the Industrial Relations Act 1990 explain (i) The reasons for legitimate trade disputes

OR Under the terms of the Unfair Dismissals Act 1977/1993 explain (ii) The grounds for dismissal that are deemed to be unfair.

2004 Section 3 – Question 1b (20 Marks) Evaluate the role of the Director of Equality Investigations (tribunal) in solving conflicts in business.

2003 Section 3 – Question 1c (20 Marks) Describe what is meant by Discrimination as set out under the terms of the Employment Equality Act 1998. List five distinct grounds under which discrimination is outlawed under the Act.

1. 2. 3. 4. 5.


2002 Section 3 – Question 1c (30 Marks) Evaluate under the Industrial Relations Act how the Labour Relations Commission and the Labour Court deals with Industrial Relations Conflict.

Labour Relations Commission 1. 2. 3. 4. 5.

Labour Court 1. 2. 3. 4. 5.

2002 Section 1 – Short Question (10 Marks) Distinguish between ‘Arbitration’ and ‘Conciliation’.



RECAP



2001 Section 1 – Question 4 – 10 Marks What is arbitration?

2000 Section 3 – Question 1c (20 Marks) Under the terms of the Industrial Relations Act 1990 explain (i) The reasons for legitimate trade disputes and (ii) The provisions of the act with regard to picketing.

2000 Section 3 – Question 1b (20 Marks) Contrast the roles of a Rights Commissioner with that of the Data Protection Commissioner in solving business conflicts.

1999 Section 3 – Question 1 (25 Marks) Evaluate the role of the Labour Relations Commission under the Industrial Relations Act 1990.

RECAP


Sample Answers 2013 Section 3 – Question 1 – 20 Marks Evaluate any two of the following legislative approaches to solving conflict: (i) Small Claims Court; (ii) Labour Relations Commission; (iii) Employment Appeals Tribunal. Small Claims Court The aim of the small claims court is to solve any conflicts between the consumer and retailer relating to goods and services up to a maximum value of €2,000. The court strives to resolve such conflicts as cheaply and quickly as possible. Decisions are made through the registrar of the court and are not legally binding but usually accepted. Evaluation I think the small claims court is a very effective method of solving retailer/ consumer conflicts. The service is cheap at €18 and there is no requirement for a solicitor to be present at a hearing. There are small claim courts all over the country as opposed to just in Dublin. Labour Relations Commission The Labour Relations Commission was set up to solve industrial disputes. This is achieved through providing a conciliation service in the form of an industrial relations officer who will sit down with both the employer and employee in an effort to find a mutual agreement. They also design codes of practice in an effort to avoid industrial conflicts in the first place. Evaluation The main reason the Labour Relations Commission is so effective is because they have a Rights Commissioner who strives to resolve conflicts between employees and employers. The Rights Commissioner achieves this through a private hearing where they hear both the employee and employers point of view. They give a recommendation as to how best solve any conflict. Employment Appeals Tribunal The Employment Appeals Tribunal was set up under the Unfair Dismissal Act 1977/1993. It investigates infringements of employees’ rights in a quick, fair, informal and inexpensive manner. It is a common legislative approach to solving conflicts between employees and employers. Evaluation The Employment Appeals Tribunal deals with conflicts that develop because of unfair dismissal. I think they are very effective at what they do. After listening to a case they come up with a judgement. It is so effective at solving conflicts because this judgement can only be appealed through the courts.


2013 Section 1 – Question 7 – 10 Marks Explain the term ‘Constructive Dismissal’. Constructive dismissal is when an employee gives up work because of the ill-behaviour of an employer towards them. If an employee quits a job because their manager was a bully this would be deemed constructive dismissal. Constructive dismissal is common when an employer needs to fire workers to cut down on costs. In an effort to avoid the payment of a redundancy package they will come down hard on the employee. Constructive dismissal is illegal. NB à the above “short question” is only worth 10 marks. I’ve covered it in detail as an example. In the exam however you will probably be under considerable time pressure. 2 points explained with two short sentences is more than enough for questions of this type. 2012 Section 3 – Question 1a – 20 Marks Outline the procedures an employer should follow under the Unfair Dismissals Acts of 1977-2007, before dismissing an employee. 1. Counselling The employee should receive training and support in an effort to strengthen their weaknesses. It should be made clear to the employee that they may lose their job if they are unable to improve in certain areas of their work. 2. Verbal warning If the situation doesn’t improve after counselling the employer should issue the employee with a formal verbal warning. This means the employee is told in speech that they may lose their job if no improvements are evident. 3. Written Warning If no improvements in the employee’s work is evident after a verbal warning then the employer must issue the employee with a written warning. This sets out the reasons the employee may be dismissed. 4. Appeal If an employee is dismissed they have the right to appeal this decision at a fair hearing. An unbiased decision on whether the dismissal was fair or not is made after representatives of the employee/ employer explain their side if the story. NB à this question was worth twenty marks. The normal rule in business is divide the marks by 5. This lets you know how many points are required. i.e. 20 ÷ 5 = 4 points. NB à the above rule is a general one but may vary depending on the marking scheme. In the above question the marking scheme was: 3 points. 7 marks for the first two points & 6 marks for the final two. This suggests many students struggled in finding 4 appropriate points.


2009 Section 3 – Question 1c (35 Marks) (i) Explain the term ‘employment discrimination’ as set out in the Employment Equality Act 1998. List four distinct grounds on which discrimination is outlawed under the Act. (ii) Evaluate the role of the Director of Equality Investigations in resolving complaints of discrimination in the workplace. (i) Employment discrimination Employment discrimination is when one employee is treated unfairly when compared to another employee. This is illegal in the workplace. An employer cannot discriminate: 1. when hiring, training or promoting and employee. 2. in paying employees

1. Age 2. Sexuality 3. Disability 4. Traveller

(ii) Investigation – Minor Cases McCutcheon investigates discrimination through mediation. If the discrimination is a minor case he refers it to an Equality Mediation Officer who will investigate the case informally. The mediation officer will attempt to find a solution which both the employee and employer agree with. Investigation – Serious Cases If the Director of Equality Investigations (Niall McCutcheon) feels a discrimination case is serious he will refer it to an Equality Officer. The equality officer will make a ruling after listening to both parties’ side of story. This ruling is legally enforceable. Evaluation The Director of Equality Tribunals has a very important role in sorting out cases that involve discrimination in the workplace. McCutcheon has the final say on how a case is dealt with. I feel the Director of Equality Tribunals is effective in promoting equality in the workplace. NB à the marking scheme for this question was as follows: Explain discrimination as set out in this act 12 (8+4) List four distinct grounds under which discrimination is outlawed 8 (4 @ 2 marks) Role of the Director of Equality Tribunals Evaluate

10 marks (2 @ 5 marks) 5 marks


2004 Section 3 – Question 1c (20 Marks) Under the terms of the Industrial Relations Act 1990 explain (i) The reasons for legitimate trade disputes

OR Under the terms of the Unfair Dismissals Act 1977/1993 explain (ii) The grounds for dismissal that are deemed to be unfair. 1. Dismissal of an employee A trade dispute is legitimate if it is a result of a dismissal of another employee. In this case employees in a business may go on strike. 2. Pay & Conditions A legitimate trade dispute may arise over unfair pay and/ or conditions. An employee, by law, has the right to expect satisfying working conditions and fair pay. 3. Discrimination Discrimination of any kind towards employees in the workplace is deemed illegal. If an employee is discriminated against while at work they have the right to perform a peaceful picket. 4. Trade Union recognition By law an employer must recognise at least one trade union. If they do not a legitimate trade dispute may arise between an employer and employee. This is considered illegal. 2002 Section 1 – Short Question (10 Marks) Distinguish between ‘Arbitration’ and ‘Conciliation’. Arbitration Arbitration is a non-‐legislative approach to solving industrial disputes. A third, independent party called an arbitrator investigates the dispute by listening to both the employee and employer explain their side of the story. They then give a judgment. If the employer and employee agreed in advance that the judgment will be legally binding the ruling is called a binding arbitration. Conciliation Conciliation is also a non-‐legislative approach to solving industrial disputes. However the third, independent party is called a conciliator or Industrial Relations Officer. Unlike with arbitration the conciliator’s solution to an industrial dispute is not legally binding. This is the main difference between arbitration and conciliation. NB à if you are asked to distinguish between two terms your answer can have either 2 or 3 headings. In the above example your answer may look like this: 1.Arbitration 2.Concilliation 3.Difference. You may incorporate the difference into your answer like I have done in the above example.


ABQ PAST QUESTIONS 2009 – Section 2 – Question 1(c) – 30 Marks (i) Describe, using the above text, one possible non-‐legislative and one legislative solution for the industrial relations problem facing RES Ltd. (ii) In your view how should Liam have dealt with the issue to lessen the likelihood of an industrial relations conflict? One non-‐legislative solution 10 Marks 5 marks(2+3) + 5 marks (2+3) One legislative solution 10 Marks 5 marks(2+3) + 5 marks (2+3) 1999 – Section 2 – Question 1(b) – 20 marks Draft a short report for the Board of Directors explaining the legislative methods that could be used to solve the conflicts in the business. 3 legislative solutions – 15 Marks 5 marks each (2+2+1) 5 Marks – report structure NOTE: If there is any pattern in the ABQ then you can be quietly confident that a question about legislative/ non-‐legislative methods of solving industrial conflicts could come up. TIP: remember when you answer an ABQ you begin by pretending it is a normal long question. You state and explain. After that you look through the text and try and find links and quotes that fit in with the points you have made.


Now test yourself with last years paper. 25 Mins


Below is the marking scheme for the question in 2015 on Unit 1





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Documents

Unit 1 2016 - Dublin Academy · Ref: 6/Bus/h/rm/Unit 1 . Oral Preparation Courses Separate to the Easter Revision Courses, The Dublin School of Grinds is also running Oral Preparation