CPA Syllabus 2009


Business Laws

Stage: Formation 1 Subject Title: Business Laws Examination Duration: 3 Hours
The aim of this subject is to ensure that students have an understanding of the law relating to the work of an accountant and the ability to identify problems that require the advice of a legal professional.

Business Laws as an Integral Part of the Syllabus
The legal principles learnt in this subject are relevant to students throughout their professional accountancy studies. In particular Business Laws is an essential foundation for the study of Corporate Laws and Governance.

Knowledge gained from this subject will also be particularly relevant in the further study of Auditing, Audit Practice and Assurance Services, Financial Accounting, Corporate Reporting, Advanced Corporate Reporting and Strategy Leadership & Knowledge Management.

Stage P2

Subject Strategic Corporate Finance

Subject Strategic Performance Management Managerial Finance Management Accounting Business Mathematics & Quantitative Methods

Subject Advanced Corporate Reporting Corporate Reporting Financial Accounting Economics & The Business Environment

Subject Strategy Leadership & Knowledge Management Corporate Laws and Governance Information Systems Business Laws

Subject Audit Practice and Assurance Services Auditing Taxation

Subject Advanced Taxation

P1 F2 F1

The above table shows the linkages between Business Laws and the subjects highlighted. The capabilities developed will be built upon in the study of the subjects highlighted above.

Learning Outcomes
On successful completion of this subject students should be able to: • Distinguish between and describe the sources of law, both domestic and E.U and of the institutions of the State and of the Union. • Interpret, describe and discuss aspects of the law of property and the law of torts. • Interpret, describe and discuss the laws of contract and of sale of goods and supply of services. • Interpret, describe and discuss aspects of the law relating to negotiable instruments and insurance. • Recognise if, and when, more specialist legal knowledge is required and identify the source of that expertise.

• Describe, discuss and explain aspects of company law relating to the structuring of business entities and of their commercial relationships.

divisions, solicitor/barrister relationship, functions of the Attorney General and the Director of Public Prosecutions, interpretation of statutes. • European Union Law – the fundamental freedoms provided by the treaties, institutions of the Union, regulations, directives, decisions, recommendations and opinions, competition law and domestic competition legislation.


• The sources of law; common law and equity, judicial precedent and case law, statute law, the Constitution and E.U. law. • The legal system in operation – doctrine of separation of powers, basic institutions of the State, the requirements of natural and constitutional justice, structure of the courts, civil and criminal

CL* 2

• Types of property. • Ownership – legal and equitable ownership, interest and title, coownership, acquisition and transfer of legal and equitable ownership.

1 1

CL: Competency Level

CPA Syllabus 2009:

Business Laws

• Possession – types of possession, acquisition and transfer of possession, attornment and bailment.


• Negotiable Instruments. • Bills of Exchange. • Cheques. • Promissory Notes. • Bank Drafts.

• Principles. • Types of tort – defamation, nuisance, negligence, professional negligence, conversion, passing off, data protection legislation, product liability and the defective products legislation. • Remedies.

2 1

1 1 1 1 1

• Nature of insurance contracts, insurable interest, formation, terms of the contract, insurance intermediaries, liability. • Liability – insurance claims, principle of indemnity.


Students are presented with both essay and scenario questions. In answering essay type questions they are required to demonstrate an ability to analyse and discuss the relevant concepts. With scenario based questions, students should identify the material or relevant facts, discuss the relevant rules of law, apply these rules to the facts and draw appropriate conclusions. Questions are framed so that students have the opportunity to integrate case law and/or statutory provisions, as appropriate, in their answers.


Examination Format
The examination is unseen, closed book and 3 hours in duration. Students are required to answer 5 questions out of 7.

• Formation of a contract – agreement, including offer (versus invitation to treat) and acceptance, intention to create legal relations, consideration, evidentiary requirements, third party rights, including privity of contract and assignment. • Content of a contract – what is a term, distinction between terms and mere representations, sources of terms, the parol evidence rule, classification of terms, exclusion clauses. • Misrepresentation, mistake, illegality, duress, undue influence, unconscionable bargains, capacity. • Performance, discharge and remedies for breach of contract.


• Companies and other forms of business organisation, the development of company law in Ireland, Irish company law and E.U. law.

Marks Allocation
Each question carries 20 marks The total for the paper is 100 marks.




• How a company is formed, types of company that may be formed, memorandum of association (including the objects and powers clause), articles of association, the promoters, flotation of a company, application for and allotment of shares, commencement of business. • Separate legal personality of the company, lifting the veil of incorporation, pre-incorporation contracts, the ultra vires rule, liability of a company in respect of unauthorised or irregular transactions, the doctrine of ostensible or apparent authority, the rule in Royal British Bank v. Turquand, tort and crime.

Core Texts
Byrne & McCutcheon / Irish Legal System, 5th edition / Tottel / ISBN/ISSN 1845922786. McDermott, Contract Law / Tottel / ISBN/ISSN 1854753606. White / Commercial Law / Thomson Round Hall / ISBN 1858002842.



Keane / Company Law, 4th edition / Tottel, ISBN 1845922980.

• Defining and distinguishing sales contracts. • Credit sales, hire purchase and lease. • Terms of the contract. • The duties of the parties. • Remedies. • Product guarantees, after sales services and product liability. • Passing of property. • Passing of risk. • Title conflicts. • Contracts for the supply of services.

Manuals Supplementary Texts
Clark / Contract Law, 5th edition / Thomson Round Hall / ISBN 1858003210. AccountancyPlus CPA students’ eBulletin

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Companies Acts:
See Examinable Material Document on pages 62 to 65 for details of the Companies Acts applicable to this examination.

Useful Websites
(as at date of publication) The Institute of Certified Public Accountants in Ireland. - Irish Statute Book – Office of the Attorney General. - Companies Registration Office. - Company Law Review Group. - The Law Reform Commission. - Irish Courts Service. - Office of The Director of Consumer Affairs.

Assessment Strategy
Examination Approach
Students have to demonstrate their understanding of the legal principles, concepts, case law and legislative provisions that are relevant to the work of an accountant.


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