Business Law: Legal Rules, Remedies, and Credit Agreements

This document provides an overview of business law, including legal rules related to sales of goods, remedies for buyers and sellers, and types of credit agreements. It also discusses the features of agency and the rights and duties of agents towards customers. The document covers various topics such as transfer of property, product liability, and intellectual property rights.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Legal rules related to sales of goods and supply of service act............................................3
1.2 Provisions of transfer of property and possession.................................................................4
1.3 Remedies to buyer and seller under sales of goods act.........................................................4
1.4 Product liability legal rules and provisions of faulty goods..................................................5
TASK 2............................................................................................................................................6
2.1 Type of credit agreements.....................................................................................................6
2.2 Provisions on termination right and default notice for Ben related to future debts..............7
2.3 Features of agency and types 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
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 (Abdi and Aulakh, 2012). 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. There are many protection measures available to the customers when they buy any goods
and take any services from any of the organisation. There are many laws that provide protection
to the customers as Sales of goods act, Intellectual property right, consumer credit and agency
law.
TASK 1
1.1 Legal rules related to sales of goods and supply of service act
Sales of goods and supply of service act are formed to provide protection to the
customers. If the consumer face any issue in regard of product and services then they have right
to complain in this regard. In the present case, Mr. Ben has right to take remedy from the car
dealer because it caused injury to the family member of Mr. Ben and car dealer did not provide
correct information (Appleman, Appleman and Holmes, 2015).
Implied terms are those terms that are not expressly written in the contract but it is
deemed to be written. It is the trust and confidence among the parties that can not be written in
the contract.
Following are the rules and provisions in the act that can provide protection to the Mr. Ben:-
1) Section 11 of the act states that conditions and warranties are different from each other.
2) Section 12 says that the goods that is provided by the seller to the buyer must be as per
the contract, otherwise it will be treated as breach of contract. It is the warranty by the
seller that the product is as per the needs and wants of the customer.
3) Section 13 states that if the seller is providing their goods and services online then it is
mandatory to provide such product as per the description stated.
4) Section 14 says that the goods that is provided by the seller must be of good quality,
durable, free from damage and acceptable to use.

5) Section 15 of the act is related to the sampling. It says that the product that is provided by
the seller must be as per the sample.
1.2 Provisions of transfer of property and possession
Following are the provisions of the act that may assist Mr. Ben in the present case:-
1. Section 16 of the act says that only ascertained goods can be transferred to the buyer. The
ownership of unascertained goods can not be transferred (Bishara and Westermann‐
Behaylo, 2012).
 Ascertained goods means the goods that can be identified and selected for sale at the time
of contract.
2. As per section 17, it is required to have the consent of the party then the goods can be
transferred otherwise not, whether it is ascertained goods.
3. As per section 18
 The ascertained goods can be transferred at the time of execution, if there is
unconditional contract.
 It is required to complete the goods to transfer. If the goods is not complete then it can
not be transferred.
 Measurement is required before transferring the goods.
 If there is condition that the approval to transfer the goods is required then it is
compulsory to take the approval.
 Unconditional goods can be transferred. The act considers determine by exhaustion and
ownership with others (Bishara, 2011).
4. Section 19 is related to disposal. It states that the seller has right to retain the goods if
buyer refused to accept the goods.
5. Section 20 states that if the goods is transferred to the others then the risk associated with
the goods will also be transferred with the title of goods.
1.3 Remedies to buyer and seller under sales of goods act
Remedies to buyer under the act
Buyer has right to take protection under the act when something wrong is happened with
the buyer. When the goods is not as per the standard and according to the guidelines of the
contract then buyer has right to compensation.
Following are the remedies that are available to the buyer:-

1. Rejection:- If the goods is not provided within the stated time then buyer has right to
reject the goods.
2. Damage:- Buyer has right to take the damages from the seller if something is committed
wrong (Disch, 2016).
3. Specific performance:- The court can make specific performance in case of breach of
contract.
Remedies to seller under the act
1. As per section 49:
 If the seller transfers the goods to the buyer and buyer is not ready to pay then seller has
right to take action against the buyer.
 It is the right of the seller to charge the interest from the buyer, if the buyer does not
make the payment or make late payment to the seller (Bishara, 2011). Calculation of
interest starts from the day of transfer of goods and the day on which the payment
becomes payable.
2. As per section 50
 The seller has right to take action against the buyer if buyer refuses to accept the goods.
 Due to non-acceptance of goods damage occurs to the seller. Damage can be measured
by making comparison of market price and contract price. Market price of the goods is at
the time of refusal and contract price is at the time of acceptance of goods.
1.4 Product liability legal rules and provisions of faulty goods
Faulty goods is the goods that has some defect and due to that defect injury is caused to
someone. In the present situation, due to defect in the car the family of Mr. Ben got injured. The
protection is available to the injured person in the present case (Bishara and Westermann‐
Behaylo, 2012). To claim for damages, it is required to fulfil the guidelines of tort, statute and
contract as:-
 The fault was in the product.
 Due to the fault, injury is caused.
Provisions of Tort, Contract and Statutes are as follows:-
1. Tort:-

It says that any person can claim for the damages if such person got the injury whether there is
no contractual relationship among them. Here, the family member of Mr. Ben can claim for the
damages but it is required to prove that faulty was in the car and caused injury.
2. Contract:-
It says that there must be contractual relationship to claim for damages. But if the seller becomes
insolvent then buyer can not claim. Here, only Mr. Ben can claim for damages because there was
contact with the Mr. Ben.
3. Consumer protection act:-
In this, it is required for the buyer to prove that the fault was in the goods and due to this fault
they suffered loss. If it is proved to the court then buyer can take damages from the seller.
TASK 2
2.1 Type of credit agreements
Consumer credit agreement means the the agreement with the business in which
consumer take loan from the business. In this case, business is the creditor and the consumer is
the borrower. Consumer credit act 1974 that is further amended by consumer credit act 2006
provides protection to the consumer in this regard.
Following are the credit that can be used by Mr. Ben to purchase car:-
1. Hire purchase:
In this the possession of the property is given to the person but such person does not have right to
transfer such property to other person. The title of the property is in hand of seller. When buyer
makes the payment then the title of the property id transferred to the buyer.
2. Conditional sales:
In this sale, certain condition is specified in the contract and when such conditions are fulfilled
then the buyer gets the right over the property. It is almost similar to the hire purchase (Eren and
et. al., 2012). When party does not fulfil the condition then such does not fulfil.
3. Credit sale:
In this, the possession of the goods is transferred at the time of execution of contract.
There are many facilities that are offered by the bank as:-

 Overdraft- In this, the account holder can borrow and withdraw the money over the limit
that is deposited in the account. It is provided so that their business can not affect due to
finance issue.
 Personal loan- Bank provides loan to the customer fro their business and to buy
something. Bank charges interest from the customers.
 Ordinary loan: It is granted by the bank for specific purpose and separate account is
opened into the bank for the repayment (Folsom and et. al., 2012).
 Credit card: This facility is provided by the bank. In this, customers do not need to carry
any paper to make the payment. Electronically payment is made.
2.2 Provisions on termination right and default notice for Ben related to future debts
Party can terminate the credit agreement in following conditions:
1) Section 94 to 97 states that the debtor has right to make the payment before time.
2) Section 98 to 101 states the termination right of the debtor. Debtor has right to terminate
the goods when it is not as per the agreement. It arises when creditor retrieves the goods.
In this condition, the debtor is liable to pay minimum amount and return the goods in
good condition.
3) The creditor can issue notice to the buyer when there is default in the hand of buyer. It is
required to recover the amount from the buyer because buyer has committed the mistake
and breach the contract.
4) Creditor has right to demand the money from the buyer.
5) Creditor has right to possession and sell such product so that they can recover the
amount.
6) Debtor does not have any right on the product and its right become nil.
2.3 Features of agency and types of agent
There are two important person in the agency as principal and agency (Halbert and
Ingulli, 2011). It is required for the success of the agency that there must be good contractual
relationship among them. Agent perform their task in accordance with the guidelines of the
principal and the principal is responsible for all the work of the agent.
Features of agency:-
1. principal and agent both are responsible to each other and bot are capable to enter into the
contract.

2. Relation among them is not contractual, agent performs their task on behalf of the
principal.
3. For the success of the agency, it is required to have good relationship among principal
and agent.
4. Principal is liable if the agent commits any wrong act under the authority of agent.
5. Agencies are hired by the business to check the issues related to that sector.
Following are the agent that play important role in the work of the agency as:-
1. Estate agent:-
This agent performs their duties in real estate sector. It is the main responsibility of the agent to
provide adequate protection to the owner of the property (Johnson, 2013).
2. Factors agent:-
They provide protection to the tangible assets as plant and machinery, building. It is the duty of
the agent to provide all relevant information in this regard to the owner.
3. Commercial agent:-
They perform their work in commercial activities and they buy and sell the product for the
business of the owner. They provide better deal to the owner.
4. Broker:-
They work in intangible asset and deals in insurance scheme, life care services scheme and other
services that are provided by the agency.
5. Auctioneers:
They deal in auction of the property and the assets that are generally held in the public.
2.4 Rights and duties of agent toward Mr. Ben
It is the duty of the agent to provide adequate protection to their customer. In the present
case, It is the responsibility of the agent to provide correct information to Mr. Ben and other
remedies when they faced issue regarding the product (Kubasek, Brennan and Browne, 2016).
Mr. Ben has right to take remedy because the product is provided by the car dealer with incorrect
information. It is the duty of the agent to provide full information regarding the product and
services of the company so that customers can make decision regarding the product and services.
Rights of the agent
1. Agent has right to take remuneration during the period when agent is working with the
agency.

2. The agent has right over the property when there is contract with the agency.
3. Agent has right to take action in relation to the working of the agency.
4. Right to perform the action on behalf of principal.
Duties of the agent
1. It is the duty of the agent ton protect the customers of the agency.
2. It is responsibility of the agent to provide correct information to the customers and to
provide adequate protection in this regard to the customers (Laycock, 2010).
3. Duty to attract the large number of customer toward the agency.
4. To be loyal toward the customers and principal.
5. To build the healthy relationship with the customers.
6. Create the good faith of the customer toward the agency.
TASK 3
Covered in presentation
TASK 4
4.1 Types of intellectual property right
Intellectual Property Right
Intellectual property right is the protection that is provided to the owner of the right. It
helps the owner to get protection from the outsiders so that they can not infringe the right of the
owner of the innovation. There are various tools and techniques that can be used by the owner to
protect their right as copyright, trade mark, patent etc. these protection are related to the specific
rights. It is required for the owner to register their right to the department so that their rights can
not be infringed by the others. It is used to protect the idea, design and innovation of the
individuals (Mann and Roberts, 2011).
There are various types of intellectual property right that are available to protect the rights of the
owner as:-
1. Copyright:-
It is the protection that is provided to protect the right of the owner of dramatic work, literary
work, music, pictorial, architectural work, pictorial work. It provides help to the owner that their
innovation and work can not be copied by the others. If any other person wants to use such

things in their business then it is required to take the permission of the owner of the rights,
otherwise it can not be used by the others.
2. Patent:-
This protection is granted to the owner of the invention. It provides safety to the person who
makes the new invention. It is required for the owner to register their right with the authority
otherwise it can be cheated by the others. This right can not be infringed by the others and no one
can use such invention in their business without the prior permission of the owner. Generally, the
owner of such invention charge money for the other parties who want to use their invention in
their business (Scholes, 2015).
3. Trademark:
It is the protection that is available in relation to the symbol, design, phrase or any word that is
used by the company. Name and logo of the company is brand value and goodwill of the
company. It is required for the company to protect such so that it can not be used by the other
business because if they use then it will create the hinder to the performance and many customers
will attract toward the new organisation.
4. Trade secret:
Trade secret is the formula and the process that is used by the company to achieve the
advantages over the competitor. It is the advantage for the company to use their own secret so
that they can provide better product and services to their customers. It includes soda formula,
computer algorithms etc.
4.2 Principles that protect the patent
Patent is the protection that is granted for the innovation that a individual and business
make during their life cycle. It is their right to register it with the department so that it can not be
infringed by the others. It is required for the patent holder to register their innovation. They can
make application to USPTO and this authority grant the right top the owner in this regard. This
right is granted for the period of time and after the time it is required to renew the licence with
the department in this regard (Spalding, 2011).
When other person uses the same patent in their business then the remedy to the owner of
the patent is available. They can make complain to the authority in this regard. Authority has
right to take strict action against the user. They have right to apply to the court. Court may issue
legal notice to the user and can impose punishment by way of monitory punishment and other.

There is a commission that protects the right of the patent holder i.e. Patent infringement
commission. The owner has right to take protection if their rights are infringed. Such person has
right to grant the permission to use their innovation in their business and they charge money in
this regard.
4.3 Principles related to the protect of copyright and rules to protect their infringement
Copy right is the protection that is available to the person who has made dramatic work,
literary work, pictorial, architectural work. It is the right that is given to them and such right can
not be used by the others in their business. It provides many benefits to the owner.
Rules related to the protection of copyright:-
1. It protects the owner for the infringement of their rights by the others.
2. Owner has right to claim for the damages that is caused.
3. The owner can make the complain if their rights are infringed (Ye and et. al., 2011).
4. Court has power to interfere in this regard if complain is made by the owner.
5. Fine and punishment can be impose by the court if it proves that rights are infringed.
Infringement of copy right-
It provides safety to the owner from the infringement. Owner has right to take the
protection if others use their right for their own use. If the right of the owner is infringed then the
person can make the complain in this regard to the department and department takes the strict
action to provide adequate protection.
4.4 Protection of trademark and business name
Name and the logo are the goodwill of the company. It is required for the company to use
effective measures to protect their name and logo. Because it is the brand value of the company.
Many people attract toward the company because of their name. So it is required to protect their
name so that others can not take undue advantages from it.
Companies that are working in UK required to register their organization with the
Australian Business Number. It shows that their businesses are legally registered. Trade mark is
granted for the period of 10 years. When the period gets over then it is required to renew such
license. So that it can not be used by the other businesses.
When it is infringed by the others then it harm to the goodwill and brand value of the
company. So it is very important for the business to register their rights. It provides the company

to get recognized in the market because it helps the company to attract the large number of
customers (Bishara and Westermann‐Behaylo, 2012).
CONCLUSION
As per the above report it can be concluded that Business laws are framed to provide
adequate protection to the customers, businesses that are working and the other trades. There are
many laws that provide protection to the customers as sales of goods act, supply of services act.
Intellectual property right is the protection that is formed to provide the protection to the owner
of the innovation.

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