Corbin, Lillian --- "Teaching Business Law to Non-Law Students" [2002] MurdochUeJlLaw 8; (2002) 9(1) Murdoch University Electronic Journal of Law

Teaching Business Law to Non-Law Students

Author:	Lillian Corbin BBus, LLB (Hons), Grad Cert H Ed Lecturer, Griffith University Law School
Issue:	Volume 9, Number 1 (March 2002)

Contents:

• Introduction
• Teaching practice
• Tutorial structure
• Tutorial content and assessment
• The tutor's role
• Lectures
• Examination
• Conclusion
• Notes

Introduction

1. Most undergraduate Business or Commerce degrees require students to complete successfully a course that introduces them to business law. A similar requirement applies to business practitioners doing MBA's. Students in these courses are generally treated as quasi-law students.[1] This obliges the students to identify the legal issues in a given factual scenario, apply the legal principles to the facts, and then advise the 'client' on a course of action.[2] The students participating in this mode of teaching are compelled to play the role of a pseudo-lawyer advising a client. However, it is questionable whether these students will ever be in this situation. It is more realistic to acknowledge that it will be they who will be seeking the legal advice.

2. The educational literature strongly suggests that if we are serious in our efforts to improve our teaching, then we must continually examine the relevance and effect of our teaching on the students.[3] Once we understand our students' perceptions of our courses[4] and the way they learn, then we will be ready to reinvest our new-found knowledge into the design of a course that will facilitate the students' educational experience.[5] In other words, it is important that we translate what we have learned into a better articulation of the structure and content of our courses.[6] As a result, the students may more readily recognise the courses' relevance to their future working life and this realisation will encourage them to engage with the material to increase their knowledge and abilities.

3. By acknowledging that these students will hold positions in the business world, it becomes apparent that they need to be versed in the legislation that will impact on their dealings. For example a business person needs to recognise that certain pieces of legislation[7] demand that business people regulate their dealings with their employees or act in a particular way when marketing their products or services. The students also need an understanding of how their transactions can create obligations and rights that may result in common law claims (in contract and/or tort) if they act in a way that breaches these. In other words a business law course needs to create an environment that allows the students to become aware of the legal ramifications that can follow from their decisions in the day-to-day happenings of the business world and help them formulate policies of risk management. In a practical way these business students will then become business people who will be able to order their affairs to avoid legal challenges.

4. This article aims to describe the reformulation of the teaching practice and assessment used to present an Introduction to Business Law course to cater for this change in perspective.

   Teaching practice

5. The experience at Griffith University, Gold Coast was similar to that outlined above until in 1999. At that time Introduction to Business Law was re-designed to reflect an emphasis in the content and method of teaching that sought to more ably equip business students to function effectively in their future commercial environment.[8] The course attempted to place the students into the commercial sphere and ask them to operate from that position. This new emphasis has had an impact on the teaching and assessment practices.

6. Since the numbers enrolled in business law courses are ordinarily quite large, lectures necessarily form part of the teaching regime and are usually repeated (sometimes more than once). These are usually two-hour lectures. The students are also required to attend a one-hour tutorial. It is the tutorial element of the teaching environment that is emphasised in the new design. The tutorials are where the students are challenged with a problem and over a period of 3 weeks, required to work towards providing solutions. While it is desirable that the tutorials are timetabled after the lecture, the approach taken in this course does not necessarily require this format.

7. In theoretical terms the tutorials use problem-based learning (PBL). PBL 'is a pedagogical strategy for posing significant, contextualized, real world situations, and providing resources, guidance and instruction to learners as they develop content knowledge and problem-solving skills.'[9] The PBL approach is gaining in popularity across all disciplines[10] because it is said to orient students 'toward meaning-making over fact-collecting'.[11]

8. By using real-world problems that relate to the business world the students have an interest in the subject matter. They see the problems as being situations that they may one-day encounter. Interest in a course has been described as intrinsic motivation that in turn leads to a deep approach to learning.[12] In addition to their interest, it is often the case that these students are already in the workforce in the commercial area, and this experience provides them with some knowledge of what is required and this builds confidence in their ability to understand the law. The coupling of prior knowledge to what students are learning enhances their learning experience.[13] In addition to the educational incentives, it is now well accepted that employers place a higher expectation on the capabilities of students being work-ready.[14] The requirement of the course for students to solve real-world problems goes some way to achieving this.

   Tutorial structure

9. The guiding principles listed in the course outline endeavor to articulate the aims of the course. They state that the course content will be relevant to the business environment; attempt to relate to students' own experiences of commercial dealings; and build on those experiences. These guiding principles are then tied in with the learning of skills that are relevant to an introductory understanding of law in a business setting.

10. The course topics are divided into three modules covering the broad areas of

    * choosing a business entity;
    * the many contractual relationships i.e. sale of goods/provision of services, transport arrangements, employer relationships etc.; and
    * tort (particularly negligence) and statutory implications that relate to business transactions.

11. As a theme running across these modules, the course includes discussions on the legal services market, describing its many different forms as products required by business consumers. These services include the giving of advice; performing procedural tasks in order to make things legal; and conflict management. In this respect the course, through the lectures and module assignments, introduces the students to the idea that there are many legal service providers, only one category of who are lawyers. Legal advice, for example, can also be obtained from government departments and local councils. To this end the students are particularly directed to the burgeoning selection of useful information on the web provided by many of these providers.

12. Each module runs over a period of four weeks and ultimately requires the students, as a group or individually, to produce a written report or assignment. Although group work is encouraged the students may submit the module assignments for modules one and two individually. The third module, however, must be the work of individuals. The tutorial programme conforms to the following procedure -

    TUTORIAL PLAN

    Week 1 Divide into groups to discuss the problem and raise questions that will need to be investigated.
    Week 2 Report back discussing information that has been discovered. Tutors will aid in formulating an answer format for assignments.
    Week 3 Tutors will give feedback on the draft assignments in class.
    Week 4 Assignments to be submitted to the tutor at the beginning of the tutorial.

13. The first week is dedicated to discussing the scenario. For this purpose the class is divided into groups and at a nominated time these groups report back to the whole class. This produces a comprehensive list of areas that need to be investigated and the service providers from whom the information may be sought. The students then leave the first tutorial confident that they know what is initially expected of them for the task at hand. Their tutors also reassure them that the modules are planned to be a week-by-week process. If they complete the tasks as set each week, then their assignments will be taking shape over the course of the module.

14. While group work is emphasised in the tutorials and in their own time, the students are encouraged to independently seek out particular aspects of the information. It is claimed that, because of the dynamics of group work and the emphasis on independent investigation, the students achieve higher levels of comprehension.[15] The use of independent research equips students with the ability to know where to look for information. One commentator has quoted a student as saying 'If a lecturer tells me something, I'll forget it; if I look it up in a book, I'll forget it as well, but at least I'll know where to find it later.'[16]

15. Ramsden in his book suggests that this method of involving the students in actively seeking out the knowledge they require, followed by having them interpret the results, provides a real avenue for students' understanding.[17] A certain amount of interpretation takes place in the second week when students report on their findings. The tutors in this tutorial have the individuals or groups report on what they found and where they found the information. If the students have undertaken the investigations as suggested then this method gives students the confidence to interact with the tutor and their peers in the tutorial and allows them to feel they have something of worth to contribute.[18] While some are initially a little guarded in what they divulge, they eventually realise that they are gaining just as much knowledge from the other students as they are revealing. This allows the students to extend their pool of resources. The tutors at the end of this tutorial offer some direction to the students on how to structure their findings in their reports and this structure aids the students in determining which information to retain and which to discard.

16. In week three the students present their drafts to the tutors. At this point it is recognised that the work produced is their 'private property' and therefore the tutors try to discuss each group's work with them separately. This tutorial contains no sharing of information at all. The tutors' feedback can be written on the drafts or in most cases delivered orally. This session is formative in that the tutors alert the students to areas that they have not covered or give advice on the structure of their assignment. This week, which is dedicated to feedback to the students, requires quite a lot of involvement by the tutors but the students have expressed the view that this session is particularly helpful.[19] This formative advice gives 'the learner information on how to adapt their performance' since 'action without feedback is completely unproductive for a learner'.[20] Ramsden also states that the 'lack of information about performance makes further learning more difficult.'[21] Therefore feedback is a very important component for learning. This process allows the students to readjust their submissions, which are due in the following week.

    Tutorial content and assessment

17. To illustrate in more detail the workings of the tutorials the problem and assessment required for the first module for the 2000 presentation of this course is included -

    You are a group of students studying at Griffith. You are living in suburbs that require you to travel by bus. You have noticed the difficulties that you experience travelling to and from University. Those of you who live in suburbs beyond Southport are required to use connecting services. Your group has been talking about starting a bus service specifically to service university students. You plan to offer two services per day. You are fortunate because one of your group already owns a 12-seat mini-bus.

    You realise that there are many questions to investigate but the idea appeals to you. Each of you will make some inquiries and report back to your group on what you found. Then you will be ready to take your business forward.

18. This module ultimately requires the students to choose a particular business entity within which to run their bus service. The first tutorial in each module is dedicated to examining the factual scenario that is the subject of the task. In this case the students will be formulating a list of agencies or people who they can contact to gather the information they require. For example, they will need to contact the Main Roads Department to find out their requirements.

19. In terms of assessment, the students are required to produce: a list of points to investigate the matter; a full record of their findings, including the people they interviewed and the results of their investigations; a letter or a facsimile to a government agency, or any legal service provider, asking for advice on one or more of those points; and a report that logically sets out the findings and validates their decision to form a particular business entity from the choice of sole trader, partnership and corporation. The initial options will include non-legal approaches to the problem(s) (information gathering) but at a suitable stage of the process students or learning groups will be directed to the legal dimensions of the problem, and required to generate legal options - which type of business entity best fits the circumstances. The information gathering exercise allows students to make an informed choice to operate their business as a sole trader, form a partnership or a company. The students arrive at their decision by evaluating their findings in terms of any economic, financial or marketing concerns, managerial constraints, and importantly, the requirements of the local authority.

20. The other modules are conducted in a similar fashion. The second module deals with contractual considerations. The instructions in the 2000 offering of the course were -

    You and three other students are involved in a business that organises and caters for 'themed' dinner parties for up to 15 people. For example you have catered for hawaiian, mystery, shipwreck and valentine parties. Since studying Introduction to Business Law you realise that when you are dealing with your suppliers, clients etc you are entering contractual relationships.

21. In this assessment the students are required to identify the different parties with whom they will be contracting and the sorts of things that would need to be considered in each of these contracts. For instance, a contract with an employee would include different considerations from a contract formed with a landlord. The students are also required to write a simple contract with a supplier which shows that they have considered all the possible obligations and risks attached to this type of arrangement, for example, who is to pay for the transportation of the goods to the venue. While it is acknowledged that these students will probably not have to formulate a contract, the task is valuable since it helps them to consider what should be included in the contract. Therefore the markers are mainly interested to see that the students, in their own words, have included clauses that cover the concerns attached to this agreement rather than rewarding contracts that follow a particular form using elaborate legalese.

22. The third module's assessment requires the students to consider the business they started in either of the other two modules and devise risk management policies. In this regard they are encouraged to consider how contract, negligence, statutory (including criminal) liability will affect their businesses and write policies that will aim to minimise the risks from occurring.

    The tutor's role

23. The tutorial environment is vital to the success of this course. This problem-based method shifts the responsibility for investigating and learning onto the students with the tutors primarily acting as facilitators. In this respect it is important that the tutors understand their role - it is vital that they understand that their role is not to be a teacher but a facilitator. In the words of a very well used phrase, their role necessitates them changing from being 'a sage on the stage to a guide on the side.'[22] The role of the tutor in PBL has also been described as 'subject matter expert, resource guide, and task group consultant' promoting 'group processing of information rather than .. imparting .. information...'.[23]

    Lectures

24. As mentioned previously, the lectures are not the main teaching environment. They play a supporting role. The topics of the lectures are purposely positioned to aid the students in gathering the information for their module assignments and to confirm their progress rather than pre-empt their findings. Therefore the lecture material confirms the students' work in the tutorials rather than the situation normally prevailing where the tutorials provide an opportunity for the students to apply the knowledge they have obtained in the lectures to practical exercises. To illustrate this point, the lecture outlining what is required in forming the particular business entities, the topic of the first module, is given in the week that the tutors provide feedback to the students on their draft assignments. This is not a case of holding back information, but it could more accurately be described as 'walking through' the tasks with them. It is very encouraging for students to have their knowledge confirmed by this method and since it is well advertised that the examination questions will reflect the module assignments, then the students feel that they are continually being prepared.

    Examination

25. As mentioned earlier, the traditional questions asked of students in courses dealing with introducing students to business law usually require students to advise clients concerning a particular scenario. This course has altered the format of the examination. The questions now used reflect the learning that takes place in the tutorials and again requires students to consider themselves in a real-world situation. For example the students in the 2000 examination were asked to write one page (assuming an average of about 250 words per page) on the following:-

    Please imagine that you are a Manufacturer of tinned food. Describe the different types of legal liability for which you could be responsible.

    Partnerships are very popular. Why would this form of business entity be chosen rather than a sole trader or company?

26. This type of question allows the students to draw from and apply the knowledge they acquired by completing their assignments. While the 1999 offering included this kind of question, it was noticed that the students' answers lacked sophistication. It was decided that they required some coaching on answering this type of question. To address this, three tutorials throughout the semester in 2000 were devoted to answering questions from the previous year's exam. These tutorials required the students as groups within the class to prepare an answer but then these answers were discussed as a class so that a comprehensive answer could be formulated. This exercise proved very successful in demonstrating to the students that they were only partially answering the question asked. For instance, in answer to the question 'Why would you want to form a partnership?' most students answered this question by listing the advantages. They failed to see that a complete answer would also include a discussion of the disadvantages. They needed to be alerted to the necessity of showing that when choices are made, part of the normal decision-making exercise includes a consideration of the effect of these disadvantages and whether they can be minimised. For instance if a partnership is chosen it could be thought that one of the disadvantages is the fact that each partner is held liable for the actions of the other - the agency principle. However the effect of this could be reduced if it is acknowledged that when people form partnerships they usually do so with those with whom they have a close relationship. Therefore they usually choose partners whose actions they can trust.

    Conclusion

27. This article has argued that the use of problem-based modules in tutorials, concentrating on scenarios that relate to a realistic view of what the students' will experience in their commercial dealings, and then examining the students in a similar vein, is a very effective presentation of the law as it relates to the business environment. This process endeavours to build on students' earlier experiences by alerting them to the many sources of law that create rights, duties and obligations. In this way the course aims to equip students to fully appreciate the importance of their business dealings and to approach the course with enthusiasm recognising its relevance.

28. This article does not purport to claim that the course is the best possible teaching method, but that it goes some way to considering the perceived interests and needs of the students and tries to include these considerations into the content and presentation. In other words it tries to answer the question that Biggs suggests the students are asking - 'Is it worth learning?' by responsibly considering 'How can I present this as worthwhile?'[24] If the students perceive the course will provide them with a valued outcome,[25] then it is hoped that this will motivate them to gain a meaningful understanding of the law's impact on business dealings.

29. The re-design of this course may not equip students to be able to advise anyone as a lawyer would, but it will help students identify how the law affects them as business people and prepare them to act in a legally defensive manner.

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Notes

[1] This conclusion is drawn from an examination of a sample of course outlines for courses teaching introduction to business law by Australian universities accessed via the internet. This conclusion is also supported by reviewing the required texts used in these courses. It is common that these texts ascribe to the method of requiring students to advise clients in relation to a set of given facts.

[2] This structure for problem-solving is normally referred to as 'IRAC'. See R Krever, Mastering law studies and law exam techniques, 3rd ed (Sydney: Butterworths, 1995) 54. This style of teaching and assessment is used in both the tutorials and examinations.

[3] One leading writer exemplifies this thought. P Ramsden, Learning to Teach in Higher Education (London: Routledge, 1992) 4.

[4] Id.

[5] D Laurillard, Rethinking University Teaching: a framework for the effective use of educational technology (London: Routledge, 1993) 14.

[6] C Bereiter and M Scardamalia, Surpassing Ourselves: An Inquiry into the Nature and Implications of Expertise (Chicago: Open Court, 1993) 82.

[7] For example the Trade Practices Act 1974 (Cth) or the Fair Trading Acts of the States and Workplace Health and Safety Acts.

[8] By Dr. Michael Robertson, Deputy Head of the Law School, Griffith University, Gold Coast, in collaboration with Dr. Peter Taylor, Griffith Institute of Higher Education, Griffith University. Dr. Robertson also consulted with Ms B Smith in the process, along with other tutors including the author. The author then became the convenor in 2000.

[9] P Mayo, MB Donnelly, PP Nash, and RW Schwartz," Student Perceptions of Tutor Effectiveness in problem based surgery clerkship", (1993) 5(4) Teaching and Learning in Medicine 227-233 cited in "What is PBL?" published at http://edweb.sdsu.edu/clrit/learningtree/PBL/WhatisPBL.html accessed on 15 November 1999.

[10] University of Adelaide has a resource centre dedicated to problem-based learning and the Faculty of Law teaches Contract Law using PBL; see R Moles published at http://www.adelaide.edu.au/ltdu/leap/focus/pbl/moles.html; Murdoch University teaches Contract - Murdoch University School of Law Newsletter, Innovations in Teaching and Learning: Problem Based learning published at http://wwwlaw.murdoch.edu.au/newsletter/97n3/s03.html accessed on 30 September 1999; University of Queensland TC Beirne, School of Law, has introduced PBL this year - http://law.uq.edu.au/render.html?it=194

[11] J H Rhem, "Problem-Based Learning: An Introduction", (1998) 8 (1) The National Teaching and Learning Forum, 1.

[12] F Marton and R Saljo, "Approaches to Learning", Chapter 3 in F Marton, D Hounsell and N Entwistle, The Experience of Learning: implications for teaching and studying in higher education (Edinburgh: Scottish Academic Press, 1997) 52.

[13] Id.

[14] S Marginson, "Generic Competencies", (1993) Occasional Paper No. 4 Higher Education Series, Higher Education Division DEET, 4 who cited J Stephenson and S Weil, Quality in learning: a capability approach to higher education (Kogan Page: London, 1992).

[15] Rhem, supra note 11, at 1.

[16] Dr N Burgess, "A Logical Course of Teaching", published at http://www.adelaide.edu.au/ltdu/leap/focus/pbl/burgess.html accessed on 30 September 1999.

[17] Ramsden, supra note 3, at 152.

[18] Ramsden, supra note 3, at 168.

[19] A small group of students were interviewed at the completion of the semester to ascertain their views on the effectiveness of the problem-based module approach .

[20] Laurillard, supra note 5, at 62.

[21] P Ramsden, "The Context of Learning", Chapter 9 in F Marton, D Hounsell and N Entwistle, The Experience of Learning: implications for teaching and studying in higher education (Edinburgh: Scottish Academic Press, 1997) 154.

[22] Anonymous, "Example & Facilitation of Problem Based Learning" published at http://edweb.sdsu.edu/ accessed on 15 November 1999.

[23] D.T. Vernon and R.L. Blake, "Does problem-based learning work? A meta-analysis of evaluative research", (1993) 68 (7) Academic Medicine, 550-563.

[24] N Feather (ed.), Expectations and Actions, (Hillsdale, NJ: Erlbaum: 1982) cited in J B Biggs (ed.) "Teaching: Design for Learning", 13 Teaching for Effective Learning, Research and Development in Higher Education, (Sydney: HERSDSA, 1991) 17.

[25] Id, at 11.