Business Law: Task 3

This presentation provides an overview of Business Law, focusing on the legislation in the UK, the role of the competition commission, case law, dominant position in the EU market, and EU exemption to potentially anti-competitive practices. It covers topics such as the UK Competition Act 1998, Enterprise Act 2002, acquisition by Hain Frozen Foods UK Limited of The Yorkshire Provender Limited, and more.

BUSINESS LAW
Task 3

Introduction
Business law is the body of law that is applied to right, working of person,
working of business that are engaged in commerce, trade, sales. It deals with
private and public law. Business law covers all the laws that dictate how to run
business. It covers all the aspects of law that provide the legal view of how to do
business, how to run in efficient manner, close the business. It covers some area
of administrative regulations. Laws are formed to provide adequate protection to
the consumer so that their right can be infringed by the seller.

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Legislation in UK
UK Competition Act 1998
This act consist of the provision of anti competitive practice. It also
provides the provisions that can be taken to eliminate the hurdles in
competition. These provisions are based o Article 81 and 82 of treaty of
ROME 1957.
Enterprise Act 2002
This act provides the various laws that strengthen the competition in the
market. It provides that enterprises can make changes in the law. It
promotes monopoly and anti competitive practice in UK.

3.2 Role of competition commission and merger of UK office of fair trading
with competition and market authority
Role of competition commission
It is the body that is setup in 1998 and it deals with the merger and monopoly
power in UK. It deals with the issue that are referred by office of fair trading. It
checks that the laws are followed in the country or not. If any issue is faced by
the individual then they move toward the regulatory body but such issue is not
resolved then they can move to the commission. It has power to impose penalty
and to investigate the merger of two companies does not make negative impact
on the competition. It may look on Share of new firm in market, research and
developments, local monopolies.

Case law
Acquisition by Hain Frozen Foods UK Limited of The Yorkshire Provender
Limited.
In this case, Hain Frozen agreed to acquire Yorkshire. Competition and market
authority believes that parties will ceased to be distinct. CMA has assessed the
case on two frames as supply of chilled soup to retail customers and supply to
food service costumes. It is considered that parties are not close competitor in
supply to retail customers. Finally, no third parties raised issue that it affected
the competition in the market.

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Statutory time table
Phase 1 date Action
16th May 2017 Decision Published
20th April 2017 Decision announced
10th March 2017 Launch of merger
inquiry
8 March to 22
March 2017
Invitation to
comment

3.3 Dominant position in EU market with example
Dominant position is the position in which a business is able to control the
market in relation to the specified product and services. There are various laws
that prohibit use of dominant position in EU market. Prevention is required to
provide growth to the business and to promote the competition in UK. Firm that
use their powers to hinder the competition is called in dominant position. It
includes:
 Power to control the market.
 Ability to eliminate the competition from the market.
 To create monopoly.

3.4 EU exemption to potentially anti competitive practices
Exemption to potentially anti-competitive practices:-
Individual Exemption:- The individuals who make best effort to the economical
development are liable to take such exemption. It is produced when they do not
affect the competition in negative way.
Block Exemption:- It is available to group of individual. This exemption is available
when they collectively work for the growth of the business and eliminate the
adverse factors of competition.
Parallel Exemption:- It is based in individual and block exemption. It is available
when they make their best effort to promote competition among the member states.
It is available when there is healthy growth of competition.

References
Kubasek, N.K., Brennan, B.A and Browne, M.N., 2016. The legal environment
of business: A criticAbdi, M and Aulakh, P.S., 2012. Do country-level
institutional frameworks and interfirm governance arrangements substitute
or complement in international business relationships?. Journal of
International Business Studies. 43(5). pp.477-497.
Latimer, P., 2012. Australian Business Law 2012. CCH Australia Limited.
Laycock, D., 2010. Modern American remedies: cases and materials. Aspen
Law & Business.