Posted: February 26th, 2015

Assessment 2: Problem Based Coursework (individual research task)

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MN5005 Transnational Business Management
Module tutor: Dr Krzysztof Boroch
Assessment 2: problem based coursework (individual research task
Submission Date Monday 9th March 2015 (week 22) by 3 PM
Weighting 20% weighting
Word Count: 1,000 words
Font: Work must be typed: Arial or Tahoma format
Font size: 12
Line spacing: 1.5
Presentation Selected coursework topic to be included
Referencing: You must reference sources used in the body of your answer. You MUST use the
Harvard method
Bibliography: Full bibliography at the end of the written work
Cases cited: In the body of the written work in bold short case reference
e.g. Eco Swiss China Time Ltd Benetton International NV Case C-126/97
You may use a short form of the title after the first citation (in the body) e.g. Eco Swiss
List of Cases (with bibliography) full case reference
e.g. Eco Swiss China Time Ltd Benetton International NV Case C-126/97 [2000] 5
CMLR 816
Legislation cited: Legislation e.g. Directive 2004/38 on the right of citizens of the Union and their family
members to move and reside freely within the territory of the Member States.
You may use a short form of the title after the first citation e.g. Directive 2004/38.
Sections of
Statutes:
Sections of a statute may be quoted as follows:
Article 28 TFEU as Art. 28 TFEU
Article 101paragraph/subsection 3 – as Art.101(3) TFEU
Submission: WebLearn
Word limit The word limit +/- 10% is usual for courseworks and the excess will be penalised.
Markers have a discretion to deduct up to 10 percentage points from a mark where the
word limit beyond the 10% is exceeded. If markers suspect the limit has been exceeded
without accurate disclosure they will conduct a rough estimate of words per line, lines
per page and the number of pages, and give students the benefit of the doubt if they
can. If the word count is still well over/under the additional 10% word limit, up to 10%
can be deducted, depending on the amount exceeded.
Overall Quality:
The written work submitted should be clear and coherent, correct in spelling and grammar, proficient
in flow, and demonstrate professional academic standards of presentation and style. Use of the first
or second person will be severely penalised. Page 2 of 5
Tradex Ltd
Tradex Ltd is an international company, designing, manufacturing and distributing the new generation
of fridge freezers for commercial and domestic users all over the world. Tradex Ltd employs 500
workers who are directly involved in the production of the new generation of BARIDI fridge freezer
which is designed to be used in all conditions. In recent months, it has been brought to the attention
of the management of the company that the GS100 gas which is used in manufacturing of the BARIDI
fridge freezer is highly toxic and has caused respiratory problems for many employees on the
assembly line. Tradex Ltd did not supply their employees with any information concerning the
hazards of this gas. The management of Tradex Ltd are convinced that there is no legal requirement
under the UK law to provide their workers with the detailed information on this particular type of gas
or issue them with the protective equipment. It seems that there is a directive adopted by the Council
of the European Union that required Member States to take measures before 1st December 2013 to
ensure that employers provide workers who handle specific hazardous substances with sufficient
information to enable them or their representatives to decide if they wish to work with these
substances at all. GS100 gas is one of the substances mentioned in the directive. The UK
government has not taken any steps to implement the directive.
During the last four months the BARIDI fridge freezer (capacity 1000 litres) has been selling
extremely well in France, Spain and Latvia as all other available fridge freezers did not exceed 800
litres and did not have the unique fast freeze function. However, two weeks ago, the French
government imposed a ban on the sale of fridge freezers which used GS100 gas with the capacity
exceeding 800 litres. The new environmental law was passed in France which prohibits the sale of
large capacity cooling/refrigerating equipment (over 800 litres) which uses GS100 gas. Since then,
all consignments of Tradex’s cooling equipment have been automatically sent back from French
boarder and the consignments of other equipment produced by Tradex Ltd were subjected to safety
spot checks. The safety checks resulted in many boxes being opened. Payment was also required
for the inspection. The French government also increased the tax for all cooling and refrigerating
equipment above 800 litres. The increase in the tax does not affect French manufactures as their
fridge freezers do not exceed 800 litres. The BARIDI fridge freezer continues selling extremely well in
Spain and Latvia.
Anna Smith is a German citizen, who having worked in the UK for a number of years, has now
decided to live there permanently. She is a fully qualified cooling equipment designer and applied for
jobs in London area where she wishes to move. She is very fluent in English (both spoken and
written) and has the relevant work experience to apply for most of the jobs in her area of expertise.
At the interview with Tradex ltd, the interviewing panel seemed very surprised to see her and Anna
got the impression that the panel expected an English woman to apply. Furthermore, it appears that
they were not prepared to offer the position to anyone who is not English. Subsequently, Anna is
informed that she was not offered the position with Tradex Ltd but with its subsidiary CLUMX Ltd, she
accepted it and is now ready to move to the UK. Anna lives in Germany with her male partner
James, a Nigerian national who has been her partner for four years. James plans to move to the UK
with Anna and her nine year old daughter for whom she would require a school place in the UK.
IVS Electronics (the subsidiary of Tradex Ltd) is one of the well-known British manufacturers of the
speciality chips, which are used, in most electronic equipment. In December 2013, the IVS
Electronics organised a global summit of the manufacturers of the speciality chips that was meant to
address the issues surrounding the impact of the production of chips on the environment. Although,
not all leading manufacturers of the speciality chips attended the summit e-mails were sent to all
manufactures. On 1 April 2014, the Chief Executive of IVS Electronics e-mailed the CEOs of BVC
Digital and Chrome Chip in a message headed ‘A proposition’. The message stated that it might Page 3 of 5
serve the interests of the undertakings if they concentrated on selling to particular parts of the EU.
He suggested that IVS Electronics might focus on sales to the UK while BVC Digital concentrated on
France and Chrome Chip on Germany, the three largest markets for speciality chips in the EU. He
also suggested that it might deter parallel imports if all three companies sold their products in the EU
at around the same price. The CEOs of BVC Digital and Chrome Chip did not reply to the message.
However, on 2 April 2014 the CEO of BVC Digital instructed his Sales Director to concentrate on
developing the French market, while on 3 April 2014 the CEO of Chrome Chip issued similar
instructions in relation to Germany. IVS Electronics was the first to impose a price increase but it was
shortly followed by other manufacturers of the speciality chips (80% of the market). A similar pattern
of price increases had taken place among the major producers of the speciality chips, which
dominated the market within the EU. It was noticed by the buyers that the significant increase in price
of the speciality chips does not appear to have a valid justification as the price of the raw materials
remained at the same level.
End of Case Study
Required
As the newly appointed legal advisor, you have been asked to give your legal advice on the issues
addressed in the case study and to advise some of the parties.
You are reminded that you must refer to relevant legislation and case law in your answers and to
reference sources used.
You are further required to be critical in the analysis and the use of relevant case law and legislation.
You are required to answer ONE question.
Question 1
Explain the relevant legal principles and advise employees of Tradex Ltd as to any remedies they
may have under EU law in relation to the hazards posed by GS100 gas.
Question 2
Explain the relevant provisions of EU law and advise Tradex Ltd whether EU law will enable them to
export their cooling/refrigerating equipment to the French market and compete effectively with French
producers.
Question 3
Analyse the relevant EU law and instruct Anna as to her legal position with regard to moving to the
UK to work and the rights of her partner and her daughter.
Question 4
Explain the relevant legal principles and advise IVS Electronics on whether their business
arrangements and similar pattern of price increases that took place comply with Article 101 TFEU.
END OF PAPERPage 4 of 5
ASSESSMENT CRITERIA
Individual problem–based essay (1,000 words (20% weighting))
Your essay should include the following:
‘ Clear explanation of the relevant law including case law
‘ Application of the law to the case study
‘ good structure and clear presentation
‘ Relevant conclusions and recommendations
‘ Appropriate references and bibliography

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