This paper presents the design and hardware implementation of the (7,3) maximum-length binary cyclic code applied to a single channel communication system. In hardware implementation of the system a PC with a data acquisition board with time <- sharing for interfacing the analog signals. A 12-bit digital output of the PC is divided into blocks of 3-bits for processing by the channel encoder The implementation of the system is carried out using shift registers and logic gates. A sinusoidal input waveform is applied to the system input and a circuit designed with a combination of D-type flip-flops and logic gates is used to introduce the effects of a single-random-error and a double-adjacent-burst error to observe the performance of the system. The code resulted in good performance in correcting a single-random-error and a double-adjacent-burst-error.