Unit 25 Aspects of Civil Liability Affecting Business Assessment Brief 2026

Unit 25 Aspects of Civil Liability Affecting Business Assessment Brief

Unit in Brief

Learners explore the relationship that businesses have with consumers and employees, and consider the civil legal obligations placed on them and how they are required to respond by law.

Unit Introduction

In order for a business to survive successfully, it needs to retain a good reputation, operate in a safe manner, and be a safe place for employees, customers and visitors. If not, liability may result in a claim against the business or its employees in the law of tort. Businesses make numerous contracts on a daily basis, and case law and statutes establish the resulting legal rights and duties.

In this unit, you will explore how, within the law of tort, claims for negligence can arise and affect both businesses and individuals. For example, injuries or damage sustained on business premises could be the fault of the business or the employee. You will also examine contract and consumer situations, covered by both case law and statute, and have the opportunity to apply the law to various scenarios and give advice.

On a daily basis, civil liability issues can affect all individuals, and every business, in a variety of ways. This unit gives you the opportunity to develop problem-solving, decision-making, analytical and critical-thinking skills by applying relevant laws to case study scenarios. Studying civil law,  in the context of its relationship to business, will allow you to make an informed choice on the suitability of law as a specialism for your employment, training or studies.

Learning Aims

In this unit you will:

A. Examine the elements of negligence in order to establish liability

B. Examine the elements of vicarious and occupiers’ liability in order to establish liability

C. Explore the responsibilities that a business has for the products and services it provides.

Summary of unit

Content

Learning aim A: Examine the elements of negligence in order to establish liability

A1 Elements of the tort of negligence

A1 Elements of the tort of negligence

• Definition of tort.
• Duty of care, neighbour test, the Caparo test, application of Robinson in cases where a duty of care in law has already been established.
• Breach: objective test.
• Factors relevant to a breach:
  o common practice
  o role of professionals
  o inexperienced practitioners
  o magnitude o cost of precautions.
• Causation:
  o ‘but for’ test, intervening act
  o remoteness of damage
  o foreseeability
  o ‘thin skull’ rule.
• Evaluation, relevant up-to-date case law.

A2 Remedies in the event of liability

• Damages, types:
  o special
  o general
  o pecuniary
  o non-pecuniary
  o mitigation of loss and contributory negligence
  o ‘no win no fee’ o

Learning aim B: Examine the elements of vicarious and occupiers’ liability in order to establish liability

B1 Vicarious liability

• Liability of an employer for the actions of an employee.
• Traditional definition of employer using the control test.
• Establishing an employer-employee relationship using the economic reality test.
• Establishing the negligence of the employee during the course of their employment
• Close connection test.
• Defences, contributory negligence, consent.
• Remedies.
• Evaluation and relevant up-to-date case law.

B2 Independent contractors

• Business not normally liable for the acts of a sub-contractor, but there are exceptions.
• Definition of an independent contractor.
• Employer may still be liable if failure to ensure compliance with duty of care.

B3 Occupiers’ liability

• Liability to visitors, Occupiers’ Liability Act 1957.
• Liability to trespassers, Occupiers Liability Act 1984.
• Limitations.
• Defences.
• Exclusion of liability.

Learning aim C: Explore the responsibilities that a business has for the products and services it provides

C1 Formation of contracts

• Offer:
  • contrast with invitation to treat
  • termination of offer
  • communication of offer and revocation.
• Acceptance:
  • verbal
  • post
  • electronic commerce regulations
  • distance selling regulations
  • communication.
• Intention to create legal relations.
• Consideration generally, Contracts (Rights of Third Parties) Act 1999.
• Evaluation and relevant up-to-date case law.

C2 Sale of goods and supply of goods

• Contract terms:
  • express
  • implied by statute and common law
  • conditions
  • warranties.
• Terms implied by the Sale of Goods Act (SOGA) 1979 as amended by Consumer Rights Act 2015:
  • seller owns the goods and has the right to sell
  • satisfactory quality and fit for purpose
  • goods as described.
• Terms implied by the Supply of Goods and Services Act (SGASA) 1982 as amended by Consumer Rights Act 2015:
  • reasonable care and skill
  • reasonable time
  • reasonable cost.
• Consumer Protection (Distance Selling) Regulations 2000, E-Commerce Regulations 2002 and Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.
• Remedies under SOGA as amended by Consumer Rights Act 2015:
  • repair
  • replace
  • refund.
• Remedies under SGASA as amended by Consumer Rights Act 2015:
  • rejection
  • specific performance
  • damages for non-delivery or breach of warranty
  • payment for part performance.
• Other remedies, use of small claims court.
• Exclusion clauses:
  • validity
  • Unfair Contract Terms regulations and legislation.
• Role of advisory bodies when making a complaint, e.g. Citizens Advice, Trading Standards, The Consumers Association (Which?), the Office of Fair Trading (OFT), ombudsman.
• Evaluation and relevant up-to-date case law.

C3 Consumer protection and the safety of products

• The Consumer Safety Act 1978 defines ‘defects’, the use of strict liability, what is meant by damage and remedies available.
• Consumer Protection Act 1987:
  • defining a product
  • defect and producer
  • use of strict liability for resultant damage.
• Breach of implied terms under the Sale of Goods Act 1979 ss. 12–15, negligence as amended by Consumer Rights Act 2015.
• Identification of defect, design, manufacture, information about the product.
• Causation, balance of probabilities.
• Defining damage:
  • death
  • injury
  • loss or damage to property.
• Defences:
  • product complies with EU regulations
  • product not supplied by business or not in the course of business
  • not possible to discover the problem
  • problem did not exist when the product was supplied
  • scientific or technical knowledge could not have foreseen the product problem.
• Remedies.
• Evaluation.

Assessment Criteria

Essential information for assignments

The recommended structure of assessment is shown in the unit summary along with suitable forms of evidence. Section 6 gives information on setting assignments and there is further information on our website.

There is a maximum number of two summative assignments for this unit. The relationship of the learning aims and criteria is:

Learning aims: A and B (A.P1, A.P2, B.P3, B.P4, A.M1, B.M2, A.D1, B.D2)

Learning aim: C (C.P5, C.P6, C.M3, C.M4, C.D3)

Further information for teachers and assessors

Resource requirements

For this unit, learners will need access to law reports and statutes.

Essential information for assessment decisions

It is essential that learners do not copy large sections of information from textbooks or websites. Centres need to prepare a variety of detailed case studies, or scenarios, that allow learners to use their own words and fully demonstrate their understanding and application of the law and its processes using problem-solving, decision-making, analytical and critical-thinking skills.

The scenarios must be sufficiently detailed and complex enough to enable learners to demonstrate their understanding of each, at the appropriate level. Learners should use decided cases and statutes to justify their advice.

Advice could be given either in written format or in a presentation supported by slides, notes questions and individual observation record.

It is also essential that learners reference all sources correctly, and give advice where required, in a professional format.

Learning aims A and B

For distinction standard, learners will support their evaluations of the impact on both businesses and individuals, with individual and original statements, examples and comprehensive use and application of relevant precedent and statutes to demonstrate and justify their arguments and conclusion.

Learners’ explanations of each of the elements must be clear and detailed and written in their own words to demonstrate clear understanding. The application of the law to the scenarios must include all relevant decided cases and statutes to support the advice given.

The report will be professional, business like and suitable for presentation to the managing partners of a business to evaluate for them the impact of the current law of negligence and vicarious and occupiers liability in the scenarios presented.

For merit standard, learners will demonstrate a considered and comprehensive understanding of all areas of law covered by the assignment and assessment criteria. They will demonstrate good analytical skills which fully cover all possible decisions and outcomes from the scenarios.

The application of the law to the scenarios should include application and analysis, using relevant decided cases and statutes to provide comprehensive and appropriate advice.

For pass standard, learners will show their understanding of the elements of negligence required for liability and relevant case law, together with remedies, vicarious and occupiers’ liability, and apply these to the case studies/scenarios. The scenarios must be drafted in such a way that they require learners to demonstrate problem-solving, decision-making and analytical skills.

Learning aim C

For distinction standard, learners will support their evaluations of the effectiveness of the law in protecting consumers from faulty products and disputes relating to contract formation and sale and supply of goods with individual and original statements and examples. Learners will demonstrate a comprehensive use and application of relevant precedent and statutes to justify their arguments and conclusion. The scenarios must be drafted so that they require learners to demonstrate problem-solving, decision-making and analytical skills, and be complex enough to cover formation of contract, sale of goods implied terms situations, supply of goods and services situations, exclusion clauses, unfair terms and remedies. Learners’ explanations of each of the elements will be clear and detailed and written in their own words to demonstrate a clear understanding.

The application of the law to the scenarios must include all relevant decided cases and statutes to support the advice given. Learners will show individuality and independence in their presented assessment evidence.

For merit standard, learners will demonstrate individual analysis of the impact of consumer law for businesses by demonstrating a considered and comprehensive understanding of this area of law. They will demonstrate good analytical skills which fully cover possible decisions and outcomes from the scenarios. The application of the law to the scenarios must include relevant decided cases and statutes to provide detailed advice. The leaflet on advisory bodies will be professional, business-like and suitable for presentation by a lawyer/adviser to clients.

For pass standard, learners will demonstrate clear understanding, explanation and application of the law relating to contract, sale and supply of goods and apply these to the case studies/scenarios.

Links to other units

This unit links to:

• Unit 23: The English Legal System
• Unit 24: Employment Law
• Unit 26: Aspects of Criminal Law Impacting on Business and Individuals.

Employer involvement

Centres may involve employers in the delivery of this unit if there are local opportunities.

This unit would benefit from employer involvement in the form of:

• guest speakers
• participation in audience assessment of presentations
• design/ideas to contribute to unit assignment/case study/project materials
• work experience
• business materials as exemplars
• support from local business staff as mentors.

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