Legal Rules and Provisions in Business Law

This document provides an overview of the legal rules and provisions in business law, including sales of goods act, supply of service act, transfer of property, remedies for buyers and sellers, and product liability. It also discusses the types of credit agreements that could be used by Mr. Ben, termination rights and default notices in case of debt problems, features of agency and different types of agents, and the rights and duties of agents towards Mr. Ben. The document offers study material and solved assignments on business law.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ..........................................................................................................................................3
1.1 Legal rules related to sales of goods act and supply of service act.......................................3
1.2 Provisions of transfer of property and possession.................................................................4
1.3 Remedies to the buyer and seller under sales of goods act...................................................4
1.4 Product liability legal rules and provisions for faulty goods ...............................................5
TASK 2............................................................................................................................................6
2.1 Types of credit agreements that could be used by Mr. Ben..................................................6
2.2 Provisions on termination right and default notice for Ben in case problem in paying the
debt..............................................................................................................................................7
2.3 Features of agency and different type of agent.....................................................................7
2.4 Rights and duties of agent toward Mr. Ben...........................................................................8
TASK 3 ...........................................................................................................................................9
Covered in Presentation..............................................................................................................9
TASK 4............................................................................................................................................9
4.1 Types of intellectual property right.......................................................................................9
4.2 Principles that protect the patent.........................................................................................10
4.3 Principles related to the protect of copyright and rules to protect their infringement........11
4.4 Protection of trademark and business name........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Laws are framed to protect the customers and investors from the fraud committed by the
company. It is required for the company to follow the rules and regulations that are under the act.
Business law is also known as commercial law. Laws are applied on the rights and relations,
businesses, trade and sales. It is formed to provide protection to the customers. Many laws like
sales of goods act, consumer credit agreement and agency, intellectual property right provide
protection to the consumer (Abdi and Aulakh, 2012). These laws are formed to give safety and
protection to the consumer who are accepting product and services of the company.
TASK 1
1.1 Legal rules related to sales of goods act and supply of service act
Sales of goods and supply of service act provide protection the consumer. Consumers
have right to take legal action if they face any issue regarding the product and services of the
company. First it is required for the consumer to make complain to the seller and if seller does
not clarify the issue then they have right to take legal protection.
Implied terms are those terms that are not expressly written in the contract and it is
assumed that these are included in the contract. Implied term is mutual trust and confidence
which is not expressed in the contract but implied in every contract.
Following are the provisions of sales of goods and supply of services act that provide safety to
the Ben as:-
1) As per section 11 of the act, conditions and warranties are different.
2) Section 12 of the act provides that it is the duty of the seller to provide goods as per the
conditions of the contract. If it is not as per the contract then it will be treated as the
breach of contract (Appleman, Appleman and Holmes, 2015).
It is warranty by the seller that the product is as per the need of the customer and buyer has right
to take possession.
3) Section 13 states that if the product is purchased online then it is the duty of the seller to
provide such product as per the description mentioned over there.
4) Section 14 of the act provides that the goods must be fit to use and of good quality. The
goods must be durable and free from damage. Otherwise it will be treated as breach of
contract.

5) Section 15 is related to the sampling. It states that the product that is provided must be as
per the sample that is shown to the customer.
1.2 Provisions of transfer of property and possession
Following are the provisions that can provide safety to Mr. Ben against the car dealer:-
1) Section 16 says that only ascertained goods can be transferred by the seller to the buyer.
If the goods is unascertained then the ownership can not be transferred.
2) Section 17 states that if the party does not show their consent then such goods can not be
transferred whether it is ascertained (Bishara and Westermann‐Behaylo, 2012).
3) Section 18 of the act consists of five rules as:
 If the sale is of ascertained goods and there is unconditional contract the it can be
transferred at the time of execution.
 If the goods is not complete then the possession of the goods can not be transferred to the
others.
 It is required to have the measurement before transferring the goods.
 If the approval to transfer the goods is required then it is required to receive the approval
before transferring.
 The unconditional goods can be transferred to others. The act considers determine by
exhaustion and ownership with others.
4) Section 19 considers right of disposal. Seller has right to retain the disposal. If buyer of
the goods refused to accept then the seller has right to retain the title of goods.
5) Section 20 says that the risk that is associated with the ownership will also be transferred
with the title of goods (Bishara, 2011).
1.3 Remedies to the buyer and seller under sales of goods act
Following are the remedies under the act as:-
Remedies of seller
1) Section 49- Action of price
 If the seller transfers the goods and buyer is not ready to pay then the seller has right to
take action against the buyer.
 If the buyer does not make payment or make late payment then the seller has right to take
interest from the buyer. The calculation of interest will be started from the day when the
price become payable and the day of transfer of goods.

2) Section 50- When buyer does not accept the goods.
 When buyer refuses to accept the goods then seller has right to take action against the
buyer.
 Damage is the loss that is occurred due to non acceptance of goods.
Damage can be measure by the comparison of contract price and market price. Contact price of
the goods is the price that is at the time of acceptance of goods. Market price is the price that is at
the time of refusal (Disch, 2016).
Remedies of Buyer
Buyer has the right when something wrong committed by the seller. When the seller does
not provide goods as per the terms and conditions of the contract then buyer has right by way of
compensation. It will be considered as breach of contract by the seller.
1) Rejection- if the seller does not provide goods with in the specified time then buyer has
right to reject the goods.
2) Damage- Buyer can claim for damage if the any wrong is committed by the seller.
3) Specific performance- When contract is breached the court has right of specific
performance.
1.4 Product liability legal rules and provisions for faulty goods
Faulty goods means the goods that cause injury. Fro this, product manufacturer and component
manufacturer are liable. In the present case, due to fault in the car family member of Mr. Ben got
injured and to make claim person has to accomplish guidelines in tort, contract and statute as:-
 Defect was in product (Bishara, 2011).
 It cause damage and injury to the applicant.
Following are the provisions as:
1) Liability in tort:- Any person who got injury can claim whether there is no contractual
relationship. The family member of Mr. Ben can claim for injury but it is required to
prove that the defect was in car.
2) Liability in contract:- As per the contract there must be contractual relationship between
buyer and seller to make claim for damage. If the seller becomes insolvent then buyer
does not have such right (Bishara and Westermann‐Behaylo, 2012).
3) Liability in consumer protection act- It is required to prove that the defect was is product
and due to this they suffered loss. If the court finds it true then seller has to compensate.

TASK 2
2.1 Types of credit agreements that could be used by Mr. Ben
The consumer credit agreement means, in this consumer takes credit by way of loan from
business. Consumer is the borrower and the business is the creditor. Consumer credit act 1974,
amended by consumer credit act 2006 gives protection to the consumer.
Following are the credits that could be used by Mr. Ben as:-
1) Hire purchase:
In this, the owner of the property has right to use such property but no right to transfer such
property and goods. The ownership of goods is in hand of seller and the buyer need to make full
payment within specified time to get the ownership.
2) Conditional sale:
It is almost similar to the hire purchase. In this there is some conditions specified to accept the
goods. Buyer has to buy the goods as the demand and conditions of the contract.
3) Credit sale:
The possession of the goods is transferred at the time of execution of contract (Eren and et. al.,
2012).
There are many loans that are offered by the bank like:-
 Overdraft- This facility is provided by the bank. In this, customer can withdraw money
over the deposited amount in the bank. This facility is provided so that business of
customer can not affect. There is specified limit to withdraw money.
 Personal Loan- In this bank provides loan and charge interest to provide such loan. Here,
the bank take some assets in their possession as security.
 Ordinary Loan- This loan is granted by the bank for specific purpose. Separate account is
opened for the repayment of loan amount.
 Credit card- It covers credit card, retailer card. The user can use this to make the
payment.
2.2 Provisions on termination right and default notice for Ben in case problem in paying the debt
There are many situations where party can terminate the credit agreement as:-
1) As per section 94 to 97 the debtor can make the payment before the time.

2) Section 98 to 101 says that the debtor has right to terminate, when the product is not as
per the agreement. This situation arises when the default is made by debtor. It is required
for the debtor to return the goods to the creditor in good condition. It is the duty of the
debtor to pay minimal amount for the goods to the creditor.
3) It is required to issue notice to the buyer by the creditor, when default is in hand of
buyer. It helps to recover the amount from the buyer when buyer committed the mistake
and breach the contract (Folsom and et. al., 2012).
4) Creditor can terminate the contract and may demand the money from the buyer.
5) The possession can be taken up by the creditor. They have right to sell the product to the
others so that they can recover the amount.
6) All the rights of debtor become nil and such person does not have any right on the goods.
2.3 Features of agency and different type of agent
There are two important person in the agency i.e. principal and agent. They are the two
pilers who carry out the agency. Principal is the person who is the owner of the agency and the
agent is the person who works on behalf of principal. The principal is liable for all the work that
are committed by the agent. It is required to have good relationship among them so that they can
achieve their goal and objectives.
Following are the features of the agency as:-
1) Principal and other party both are capable to enter into the contract.
2) Relationship among them is not contractual. Agent makes contract on behalf of the
agency with the other party (Halbert and Ingulli, 2011).
3) Agent plays very important role in the agency. For the success of any work, it is required
to have good relationship with the customer but this role is played by the agency on
behalf of agency.
4) When agent performs any act then the principal is liable for the act, if it is committed
under the authority of agent.
5) There are some agency that are hired by the large businesses to check that is everything is
going good or not.
Following are the agent as:-
1) Estate agent:

This agent performs their duty in real estate sector. It is the duty and responsibility of such agent
to provide adequate protection to the property of the owner and to provide information in this
regard to the owner (Johnson, 2013).
2) Factors agent:
This type of agent deals in tangible assets as machinery, building. It is duty to provide protection
to the owner.
3) Commercial agent:
They perform their duties on behalf of principal and make buy and sell of goods.
4) Brokers:
They deal in intangible asset as insurance scheme, life insurance scheme. Intangible property
means that has no physical appearance.
5) Auctioneers:
They perform their duty in auction of tangible property.
2.4 Rights and duties of agent toward Mr. Ben
It is required for the agent to provide adequate protection to Mr. Ben. It is the duty of the
agent ton provide complete information regarding the fault in the car and to give the adequate
remedy to Ben and his family when they faced issues with the car. Mr. Ben has right to claim for
the damages they he faced (Kubasek, Brennan and Browne, 2016). It is the duty to provide
adequate protection to Ben.
Duties of agent
 It is duty of the agent not to gain profit when there is no contract. Agent can take the
advantage only when there is contractual relationship among them. Agent can not take
undue advantages from the business of the agency.
 It is duty of the agent to provide protection to the customers and build healthy
relationship with them.
 It is duty of the agent to provide complete information to the customers.
 To work in good faith and to build trust of the customer on the agency.
Rights of agent
 Agent has right to receive the remuneration when there is relationship with the agency.
 Right over the property, when there is contract with the agency.
 Right to perform the task on behalf of principal.

 Right to take action where needed.
TASK 3
Covered in Presentation
TASK 4
4.1 Types of intellectual property right
Intellectual Property Right
It is the protection that is given to the individual who makes new creation and
development. This right protects them from the outsider who infringe their right. There are
various tools that can be used to protect intellectual property right as copyright, trade mark,
patent etc. These are the protection that are related to the specific category. These rights are
generally given for a period of time and after that the person need to register such right again to
the authority (Laycock, 2010). It helps to protect the idea, design and other innovation that are
made by the individuals.
Following are the different type of intellectual property right as:-
1) Copyrights:-
It is the right that is available in relation to the authorship. This right is provided to the author in
relation to the dramatic work, literary work, music, pictorial, architectural work, pictorial work
etc. this right is given to the person who made such invention. It is the right to create, display and
copy the work. It provides protection to the owner that their work can not be copied by the others
(Latimer, 2012).
2) Patents:-
This right is granted in relation to the new invention. This right provides safety to the person who
makes the new invention. It is the right of the person to use such invention in their business and
it can not be cheated by the others. Invention helps the owner to create new and better process
and to achieve more and more profit in relation to their work. A person can apply for the patent
to the USPTO. There are many patent as utility, design and plant.
3) Trademark:-
Trademark is the mark that is used by a business. It helps the company to make be different from
the others. Trademark may be any symbol, design, phrase or any word that is used by the
company. It is the goodwill of the company that helps to achieve many task and to get

recognized in market by their activities. Trademark can be obtained through the application to
the USPTO (Mann and Roberts, 2011).
4) Trade secrets:-
Trade secret means the unique formula and process that is used by the business to achieve more
and more profit. It helps the company to get the advantage over the competitor. It gives many
advantages to the business. It covers soda formula, computer algorithms etc.
4.2 Principles that protect the patent
Patent right is granted for new invention. It provides protection to the owner of invention
that their invention can not be cheated by the others. It is required for the business to use such
right very carefully because it is the advantage for the company. The patent can be protected
through the registration. If the patent is not registered with the authority then it can be used by
the others.
When somebody uses the same patent then it is the remedy to the owner that they can
make the complain in this regard to the authority. Authority has right to take strict action against
the user. They have right to sue and they can apply in this regard to the court. Court has right to
issue notice to the user and they can impose the punishment (Scholes, 2015). The owner has right
to claim for the damages that is caused by the infringement of patent. It is the duty of the person
to pay for the damages that is caused to the owner.
Patent infringement is the commission that protects the right of the patent holder. It is
right of the such person to get the adequate protection if their rights are infringed by the others.
Such person has right to grant the permission to other to use their patented right. But without the
permission no body can use this.
4.3 Principles related to the protect of copyright and rules to protect their infringement
Copyright is the protection that is granted in relation to dramatic work, literary work,
pictorial, architectural work. It is the right that provides safety to the owner that their right can
not be used by the others (Spalding, 2011).
Legal rules related to the protection of copyright:-
1) It is the right that protects the owner from the outsiders who infringe their rights.
2) The owner has right to make complain if their rights are infringed by the others.
3) Holder has right to sue and to claim for the damages that is caused.
4) Court provides adequate safety to the owner.

5) The fine and punishment can be imposed on the person who infringe such rights.
Infringement of copyright:-
Copyright provides the safety to the owner from its infringement. The owner has right to
take adequate protection if their rights are infringed. If the rights are infringed then such person
can make complain in this regard to the department and final complain can be made to the curt to
provide protection.
4.4 Protection of trademark and business name
Trademark is the symbol and the name of then company that can not be used by the
others. It is the goodwill and brand value of the company. It is required for the companies to
register such with the department so that their rights can not be infringed by the others. It
provides many advantages to the business. It provides a company recognition to the company in
market (Ye and et. al., 2011).
All the companies that are working in UK, they have to register their organization to the
Australian Business Number. It shows that their businesses are legally registered and working
legally. Trade mark is granted for the period of 10 years. When such period is lapsed then it is
the duty of the owner to renew such trademark so that it can not be infringed by the others. It is
the protection that is available to the company and the business enterprises so that their rights can
not be infringed by the others (Bishara and Westermann‐Behaylo, 2012). It is the brand value of
the comp;any and when it is infringed by the others then it harm to the goodwill of the company.
It helps the company to retain and get recognized in the market. Trademark helps the company to
get adequate protection from the person and companies. So that they can not use to same symbol
and name.
CONCLUSION
As per the above study it can be concluded that laws are made to provide adequate
protection to the customers. It is required for the company and the organization not to harm the
society and the customers. There are many provision that are formed to provide protection to the
seller and the buyer in sales of goods and supply of services act. There are many tools that can be
used by the company to protect intellectual property right as copyright, trademark and patent.

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Online
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