Business Law: A Comprehensive Guide to Sales, Credit, Monopolies, and Intellectual Property

This comprehensive guide explores key aspects of business law, covering the legal rules on implied terms relating to the sale of goods and supply of services, the transfer of property and possession, and the rights and remedies of buyers and sellers. It delves into consumer credit agreements, differentiating between secured and unsecured credit, and examining the various types of agents and their rights and duties. The guide also examines monopolies and anti-competitive practices in the UK, including the role of the Competition Commission and the Office of Fair Trading. Finally, it explores different forms of intellectual property, including patents, trademarks, and copyrights, and their application in real-world scenarios.

Business Law

Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
Apply the legal rules on implied terms relating to the sale of goods and supply of services......4
Apply the statutory provisions on the transfer of property and possession.................................5
Evaluate the statutory provisions on buyer’s and seller’s remedies............................................6
In the following situation advise G and H Holmes on their rights and remedies........................7
In the following situation advise Mr and Mrs Green on the rights and the remedies available to
them..............................................................................................................................................8
Task 2...............................................................................................................................................9
Task 3.............................................................................................................................................10
Differentiate between the different types of credit agreements.................................................10
Differentiate between the different types of agent.....................................................................11
Evaluate the rights and duties of agents.....................................................................................12
After having paid three instalments and the fourth is not yet due.............................................13
After paying four instalments and the fifth and sixth are still due.............................................13
After paying 12 instalments and before the 13th payment is due but the goods purchased have
been damaged.............................................................................................................................13
If the customer does not terminate the agreement but does not make any more payments after
the eighth instalment, what action can the company take?........................................................13
Task 4.............................................................................................................................................14
Outline monopolies and anti-competitive practice legislation in the UK..................................14
Explain the role of the Competition Commission within the context of monopolies and anti-
competitive practices and the UK office of fair trading.............................................................15
Define dominant positions within the EU common market.......................................................16

Consider the application of EU exemptions to potentially anti-competitive practices..............17
Task 5.............................................................................................................................................18
Identify the different forms of intellectual property..................................................................18
Outline the principles relating to the protection of inventions through patent rights and their
infringement specifically related to the eBook scenario............................................................19
Compare and contrast the protection of trademarks and business names..................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

Introduction
In the report discussion would be about the legal rules in terms of sales and supply of goods,
transfer of property and possession and the rights and remedies of the consumer and the
customers. The discussion is also about the deals with consumer credit which differentiates types
of credit agreements, types of agents and rights and duties of the agents. Further the discussion in
the report will be about monopolies in UK market, dominant position in Europe market and role
of competition commission is also being discussed along with UK office of fair trading. Lastly,
the discussion will be done over intellectual property rights and its form. Discussion is also about
the protection of trademark and business name.

Task 1
Apply the legal rules on implied terms relating to the sale of goods and supply of services
Government has set up few laws to ensure safety for the customers who invest their hard earned
money to purchase something. The laws which are set up by the government for sales of goods
and supply of services are Sales of Goods Act 1979 (Which, 2018) and Supply of Goods and
Services Act 1982 (Law on the Web, 2017).
Implied terms relating to sales of goods are:
a. Title: This ensures whether the goods can be sold by the seller.
b. Sale of goods by description: This means the features of the goods, brand, label etc.
c. Sale of good by sample: According to this the goods which are sold should be perfect and
should not have any defect.
d. Ensuring fitness: According to this the quality of the sold goods should be proper and
good.
Implied terms relating to supply of services are:
a. As per section 13 of Sales of Goods and Services Act 1982, the supplier says that the
services which he/she will be delivering will be given with reasonable care and skills.
b. Time and price is one of the important terms related to supply of services, it means
delivery of services within prescribed time and reasonable price.

Apply the statutory provisions on the transfer of property and possession
The statutory provision on transfer of property and possession are:
a. Goods should not be unknown and if they are unknown then they won’t be transferred to
the party
b. Intention of the parties should be fixed.
c. The seller must do the needful steps in order to deliver the goods and this must be prior
informed to the buyer.
d. Before delivering the goods they must be checked properly.
e. Before the property is given in possession of the buyer it is necessary for the buyer and
seller to check what is going to be delivered.
f. The property will be in the possession of the buyer only when it is approved.

Evaluate the statutory provisions on buyer’s and seller’s remedies
Buyer’s Remedies:
a. The goods can be rejected by the buyer if it doesn’t meet the quality as decided.
b. If the seller is unable to deliver the goods on time or doesn’t deliver the product at all, in
this case buyer may take action against the seller (Cotton, 2018).
Seller’s Remedies:
a. If buyer refuses to pay for the goods at the time of delivery, in such cases action can be
taken against the buyer (Lander, 2018).
b. In case the buyer refuses to accept the goods sent by seller, in such case action can be
taken against the buyer.

In the following situation advise G and H Holmes on their rights and remedies
In the above mentioned scenario there are rights and remedies of G and H Holmes and they are
discussed below:
Rights of G and H Holmes:
1. The first right which can be availed by G and H Holmes is to get the delivery of the good
as per the contract they have made with Hopkins Limited.
2. Since the store has caught fire before the delivery of goods G and H Holmes are not
liable to pay any amount for the damage goods although they were specially ordered for
them by Hopkins Limited.
3. If G and H Holmes would have paid for the goods then they had a right to recover the
money as the goods were not delivered to them (Citizens advice, 2018).
Remedies of G and H Holmes:
G and H Holmes can ask for damages because of non delivery of the goods. As G and H Holmes
were totally depended upon Hopkins Limited for delivery of the goods and it was not delivered.
They can also claim for the similar goods to get delivered to them within the reasonable period
of time so that it would not hamper the condition of G and H Holmes.

In the following situation advise Mr and Mrs Green on the rights and the remedies
available to them.
According to the above mentioned scenario Mr and Mrs Green has few rights and remedies
available to them and they are:
Rights are:
a. Since Mr and Mrs Green are not happy with the services of Easy built Ltd. they have a
right to ask the company to do the services for them again or can ask for refund or
discount.
b. They can breach the contract and assign it to some other art because the work was not
done as per their choice.
Remedies are:
Mr and Mrs Green can ask for the damages as they have not completed the work even after
almost one year and also Easybuild has not worked according to Mr and Mrs Green. One of the
major default for which Mr and Mrs Green can claim damages from Easybuild is that after the
completion the flat roof of the extension which was built by Easybuild after taking so long
started leaking and caused loss to Mr and Mrs Green.

Task 2
In the above situation Julia can claim damages from the manufacturer of the scooter that is
Zambettra as the scooter is manufacture by them and it’s their duty to check each and every part
of the scooter before selling it in the market. Further Zambettra, the manufacturer can claim
damages from the French company who sells the brakes to the scooter company because the
accident took place due to the poor quality of brakes which were manufactured by the French
company.
The remedies available with Julia will be the loss which has occurred on the scooter worth £900
and she can also claim for the injury which was suffered by her due to the accident. In a case
Donoghue vs. Stevenson [1932] AC 562, it was held that its manufacturers duty until the final
consumer uses the good or services. There is no need of a contractual relation between the
manufacturer and consumer to sue for negligence (Webstroke Law, 2018).

Task 3
Differentiate between the different types of credit agreements
There are two types of credit agreements that are secured credit agreement and another one is
unsecured credit agreement (Catriona, 2017).
In secured credit agreement if the person who has borrowed credit and is unable to repay the debt
then the lender may take possession on his/her assets. Example of secured credit agreement is:
Credit card, car loan, home loan etc.
In unsecured credit agreement if the person does not repay the amount then lender may request
him/her to pay the amount or can try to collect the amount with the help of debt creditor. There is
no guarantee of return in such agreement. For e.g. Master cards, visa cards, retail store cards etc.

Differentiate between the different types of agent
There are different types of agents, they are:
a. Broker: A broker is a mediator between the seller and the buyer and his duty exists until
both the party comes into contract.
b. Commission agent: Commission agent charges some amount of commission after the sale
of goods for which he was hired. He is as similar as a broker.
c. Auctioneer: His job is to sell good by the way of auction.
d. A Del Credere Agent: His job is to ensure the execution of the contract. If some wrong is
done by party in the contract the agent will be liable to compensate for that.

Evaluate the rights and duties of agents
Rights of agents:
a. Right of Retainer: Agent can deduct the due amount from the principal which is due.
b. Right of stoppage in transit: In some cases agent is fully liable for the goods, in such
cases he can stop the goods in between.
c. Right to claim remuneration: After the work is done by the agent he has right to claim for
the money of the work.
d. Right of lien: Agent can claim this right but it depends upon the mutual understanding of
the principal and agent (US Legal, 2016).
Duties of agents:
a. Instruction given by principal should be followed by the agent.
b. If somewhere agent is stuck then the advice must be taken from the principal rather than
doing things on his own.
c. No secret profits should be made out of the deal by the agent (Maine Elder Law Firm,
2016).
d. Agent should not delegate his duty for which he is being appointed.

After having paid three instalments and the fourth is not yet due
The customer has to wait for the due date to come for the fourth instalment as the due date has
not yet came.
After paying four instalments and the fifth and sixth are still due
If the customers have to continue the agreement then he would have to pay the fifth and sixth
instalments before the due date.
After paying 12 instalments and before the 13th payment is due but the goods purchased
have been damaged.
The customer still have to pay the instalment if the goods are damaged due to his mistake and if
they aren’t damaged due to his mistake then the goods would be replaced by the company if they
are within the warranty.
If the customer does not terminate the agreement but does not make any more payments
after the eighth instalment, what action can the company take?
The company can terminate the agreement from their side but before terminating the agreement
prior notices are sent to the customer about the termination and if customer wants to continue the
agreement he has to reply back of the notice before the due date. The company can also claim for
the remaining amount if the customer has not terminated the agreement and if customer doesn’t
want to pay then he will have to terminate the account from his side also.

Task 4
Outline monopolies and anti-competitive practice legislation in the UK
Monopolies: In the United Kingdom if any firm owns 25% of share in the market is called as
monopoly firm (Economics Online, 2018). Usually the companies are merged together to be
monopoly but it is mandatory for the merged company to have control of 25% of share in the
market so as to qualify to be a monopoly company. E.g. of monopoly are: Boeing and M.C.
Donnell, these organisations have merged together and known as Boeing-M.C. Donnell and has
monopoly of manufacturing double Decker aircrafts.
The anti-competitive practices include:
a. Cartels: It is a type of contract which is in between business in same market.
b. Keeping Competitors Out: Destructing the prices is a way to cut down the prices and it
creates outlook that market has fallen down.
c. Restrictive Practices: These are basically unethical practices. Like not supplying to
competitors, pressurising the retails to stock up the goods of the competitor and not
selling them in the market.

Explain the role of the Competition Commission within the context of monopolies and anti-
competitive practices and the UK office of fair trading
Competition Commission sees the monopoly power and then if required sends a report to the
minister. It is done if they want to take steps against the restricted policies (Pettinger, 2012).
The monopolies and anti competitive practices:
According to article 85 of the contract act agreement are being prohibited between the members
state so that the business in the countries can be protected and according to article 86 another
prohibition is to the monopoly powers.
The office of Fair Trading
This is a self supporting body. The most important role played by office of fair trading is to
ensure the effectiveness in the market. Major focus of this organisation is to stop unfair and
unethical practices of trade. Objectives of fair trading are:
a. To put right trading practices.
b. To keep a check on anti-competitive practices going on in the market.
c. To keep a check on abuse of power in market.

Define dominant positions within the EU common market
Dominant position is the position where the firm is in the position and has high power associated
with specific goods in the marketplace. In the EU market the dominant position should be
banned this is the first condition and if the firm does not abuses its position then it’s not in
dominant position (Inbrief, 2018).
In United Brands Company BV v. Commission of European Communities [1978] ECR 207,
dominance has been discussed in details. According to article 82 dominant positions is defined as
the position of power which can restrict the competition in the market. It can also stand alone in
the market to clean off its competitions and starts abusing the consumers because of no
competition.

Consider the application of EU exemptions to potentially anti-competitive practices
An exemption to article 101, behaviour is being majorly defined in three types:
a. Article 101 (3) is useful for the customers by preparing an alternate for the practice. E.g.
Mechanical advancement assistance, but it doesn’t hamper the whole competition in the
market.
b. Article 101, according to this the commission has agreed to remove the agreements which
are not much important.
Small organisations are beneficial from these exemptions as they own approx 10% of the market.

Task 5
Identify the different forms of intellectual property
Different forms of intellectual property are:
a. Copyrights: It gives protection from the people who copy things without the permission
of the owner.
b. Patents: It ensures the right of the owner and it stops other people from selling it without
the permission of the original owner or creator.
c. Trademarks: It helps the companies to protect name of them and name of their products
or services which are exclusively made by them (Upcounsel, 2018).

Outline the principles relating to the protection of inventions through patent rights and
their infringement specifically related to the eBook scenario
In the above mentioned scenario patents can be used to protect the invention of eBook device.
Patent is a step taken down to protect the discoveries. It helps in prohibiting usage and sell of
inventor’s property without his/her permission. If the device is protected by patent right then
nobody will be able to use the device without the permission of the owner. This will help the
company to have total control over invention or discovery.

Compare and contrast the protection of trademarks and business names
Trademark gives the owner a legal right where he/she can go to the court and can stop people
from using the same name as he has of the business which is being protected by him under
trademark. Trademark gives the person a right to use the symbol or name wherever he/she wants
to use it. It also guarantees protection of the name or logo.
Business name is the thing for which the state worries because they want to find the person or the
group of person who is behind the business name.

Conclusion
In the above report the discussion is done on rules of sales and supply of the goods and transfer
of property is also being discussed along with the remedies provided to consumer. Different
types of credit agreement are discussed above, along with the rights and duties of the agent.
Monopoly market of UK is also discussed and how they affect the consumers in the market. The
last discussion is done over the intellectual property rights and how patents, trademarks and
copyrights are protected and how it helps the business to protect their invention.

References
 Catriona, (2017) Credit Agreements Explained [online]. Available from
http://whatconsumer.co.uk/credit-agreements-explained/#.WqP3v2puZdg [10th March
2018]
 Citizen advice, (2018) The Consumer Rights Act 2015 [online]. Available from
https://www.citizensadvice.org.uk/about-us/how-citizens-advice-works/citizens-
advice-consumer-work/the-consumer-rights-act-2015/ [10th March 2018]
 Cotton, S. (2018) Remedies for breach of contract [online] Available form
https://uk.practicallaw.thomsonreuters.com/7-101-0603?
transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1 [10th
March 2018]
 Economics Online, (2018) Monopoly [online]. Available from
http://www.economicsonline.co.uk/Business_economics/Monopoly.html [10th March
2018]
 Inbrief, (2018) Abuse of Dominant Position [online]. Available from
https://www.inbrief.co.uk/regulations/abuse-dominant-position/ [10th March 2018]
 Lander, S. (2018) What Remedies Does a Seller Have When a Buyer Breaches a
Sales Contract [online]. Available from http://smallbusiness.chron.com/remedies-
seller-buyer-breaches-sales-contract-65875.html [10th March 2018]
 Law on the Web, (2017) Supply of Goods and Services Act [online]. Available from
https://www.lawontheweb.co.uk/personal/supply-of-goods-and-services-act [10th
March 2018]
 Maine Elder Law Firm, (2016) What are your Duties and Responsibilities as an
Agent under a Financial Power of Attorney [online]. Available from
https://www.maineelderlaw.com/articles/duties-and-responsibilities-of-an-agent-
under-a-power-of-attorney/ [10th March 2018]
 Pettinger, T. (2012) Competition Commission UK [online]. Available from
https://www.economicshelp.org/blog/glossary/competition-commission/ [10th March
2018)

 Upcounsel, (2018) Intellectual Property Protection [online]. Available from
https://www.upcounsel.com/intellectual-property-protection [10th March 2018]
 US Legal, (2016) Rights, Duties, And Liabilities between Principal and Agent
[online]. Available from https://agency.uslegal.com/rights-duties-and-liabilities-
between-principal-and-agent/ [10th March 2018]
 Webstroke Law, (2018) Donoghue v Stevenson [online]. Available from
https://webstroke.co.uk/law/cases/donoghue-v-stevenson-1932 [10th March 2018]
 Which, (2018) Sale of Goods Act [online]. Available from
https://www.which.co.uk/consumer-rights/regulation/sale-of-goods-act [10th March
2018]