BEHIND THE SCENES: MAJOR CASES THAT HAVE CHANGED BUSINESS LAW

Business law, a framework of rules and regulations governing the world of commerce, has evolved over the years due to significant legal cases. These landmark cases have shaped the way businesses operate, ensuring fairness and accountability in the corporate world. Let's delve into the stories behind a few of these game-changing legal wars that have left an indelible mark on the field of business law.

• Royal Bank of Scotland v Etridge (No 2) (2001)

This case significantly impacted the law of undue influence in commercial transactions, particularly in the context of mortgage and loan agreements. It clarified the circumstances under which a lender could be considered to have exerted undue influence over a borrower and established safeguards to protect vulnerable parties. The ruling led to greater scrutiny of the fairness of financial agreements and highlighted the need to ensure that both parties enter into such agreements willingly and with full understanding.

• Lloyds Bank Ltd v Bundy (1975)

This case is significant in the development of the doctrine of promissory estoppel, which affects contractual agreements. It involved a bank employee who was promised job security but later dismissed. The House of Lords held that promissory estoppel could be applied in a commercial context, preventing the bank from going back on its promise to the employee. This case highlighted the principle that, even in the absence of a formal contract, courts can enforce promises if certain conditions are met.

• Tesco Supermarkets Ltd v Nattrass (1971)

This case is pivotal in understanding corporate liability in criminal law. It involved a Tesco store manager who was prosecuted for selling goods below the price set by a local authority. The House of Lords clarified the test for determining whether a company can be held criminally liable. It set out the principles for establishing that the "directing mind" of a company was responsible for the criminal act. This decision has influenced how companies can be held accountable for criminal conduct.

• Donoghue v Stevenson (1932)

This landmark case, often known as the "snail in the ginger beer" case, is a foundational precedent in the law of negligence. It involved a woman who fell ill after consuming a bottle of ginger beer containing a decomposed snail. The House of Lords ruled in favour of the plaintiff, Ms. Donoghue, establishing the duty of care that manufacturers and suppliers owe to consumers. This case set the standard for product liability law, making manufacturers responsible for the safety of their products and ensuring that consumers have legal recourse if harmed by defective goods.

• Salomon v A. Salomon & Co. Ltd (1897)

This case is a cornerstone of company law in the UK. It involved Mr. Salomon, who incorporated his sole trading shoe business into a company. When the company later went bankrupt, the issue was whether Mr. Salomon, as a shareholder, should be personally liable for the company's debts. The House of Lords ruled that a company is a separate legal entity from its shareholders, establishing the concept of corporate legal personality. This decision protects shareholders from personal liability for a company's debts, promoting investment and business growth.

FINAL THOUGHTS

These landmark cases vividly illustrate the dynamic nature of business law, emphasising the need for adaptability and fairness in the corporate world. As you explore the ever-evolving field of business law, consider the opportunities for in-depth learning and growth at the University of Bolton.

Our distinguished business law programmes offer a solid foundation to navigate the complexities of modern commerce and legal frameworks. Contact us at 01204 903903 or send us an email at enquiries@bolton.ac.uk to take the next step toward your academic and professional journey by exploring our business law programmes today. Embark on a path that can lead to a successful and impactful career in the world of business and law.