Business Law Assignment Copy

Business Law

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1................................................................................................................................................3
1.2................................................................................................................................................4
1.3................................................................................................................................................5
1.4................................................................................................................................................6
TASK 2............................................................................................................................................7
2.1................................................................................................................................................7
2.2................................................................................................................................................8
2.3................................................................................................................................................8
2.4................................................................................................................................................9
TASK 3..........................................................................................................................................10
TASK 4..........................................................................................................................................18
4.1..............................................................................................................................................18
4.2..............................................................................................................................................18
4.3..............................................................................................................................................18
4.4..............................................................................................................................................19
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Law is a cluster of norms, beliefs, provisions, rules and regulation which is designed and
enforced by governmental institution for regulating behaviour of whole society. Its main
objective is to protect buyer and seller from fraudulent activities by enforcing legal rules which
is imposed on them. Moreover, legitimate laws are trying to offer equal opportunity to each
individual so that they can accomplish all their activities in proper manner (Wilson and et. al.,
2012). Therefore, this assignment is going to highlight the laws which needs to be followed by
purchaser while buying any product for minimizing the probabilities of risky situation. Thus,
case of Ben will discussed in the project by explaining roles and responsibilities of agents and its
types of credit agreements which is faced by consumer. Basically, an appropriate suggestion is
detailed in the report related with statutory legislation about product liability and transfer of
possession. Moreover, monopolies and anti-competitive practices of UK is also explained for
understanding the eminent role of competition commission associated with this monopolies.
along with this, various types of intellectual property will further outlined in assignment for
understanding the provisions related to this prevention.
TASK 1
1.1
According to the mentioned situation, Ben is a customer who wanted to buy a second
hand car because his previous car has become too old. Therefore, he decided to contact with
popular car dealers by seeing the magazine for identifying car within his own budget. Next day
he have visited to showroom for buying car then dealer inform that selected car of Ben was at
another showroom which is very much away from showroom around 80 miles but can be
available within the next 48 hours. Thus, for confirming the order Ben have to pay advance
which was a non-refundable deposit of almost £150. Ben deposited the amount and furthermore
purchased the car after test drive. It means, Ben’s haven’t seen any terms and conditions or
clauses related with the product before finalizing the contract which are really indispensable for a
customer to know while buying the goods.
Basically, there are few legal rules are enforced by legitimate body on implied terms
associated with sales of goods as well as for supplying of services (Abril, 2011). However,
according to the sale of good law 1994 it has implemented little modification in some parts
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previously categories by sales of goods act 1979. Thus, conditions unstated are mentioned under
S/12 to 15 of sales of goods act 1979 which is described below-
Section 12 states that there must be availability of implied clauses that aids in clearing
that seller have an authority to sell particular product.
Section 13 states that offered products need to be same as discussed with the dealer.
Section 14 (2) is about quality and main motive is to ensure that offered goods requisite
to be of satisfactory quality.
Furthermore, legal bodies mentioned that products those are found damage or defective
in the set time period of 6 months of buying must be taken into account as inappropriate of its
buy and seller needs to consider the breaching of contract with end user (Macaulay, 2018).
Additionally, section 14 (3) is based on fitness for purpose which means that product
which is purchased by consumer must fulfil the objective for which it has been bought by
customers.
Hence, in the given case study car stopped within 6 days of its purchases which will be
definitely considered as faulty as per sales of goods act and the seller is considered liable for
replacing it. But at the same time, Ben have also missed to read the clause 9 in which seller have
clearly mentioned that “We accept no responsibility what so ever for description we have stated
about cars and its quality.” As a result, seller might reject the proposal of replacement of car
because Ben’s have ignored to read the clause 9.
1.2
In accordance with the legal law of property and possession that is all about changing the
ownership of the product from seller to buyer in the exchange of money. Thus, it is essential for
Ben to know about the statutory regulations related with transferring process under Sale of
Goods Act 1979 which is provided as per 5 that is; label of transitory of assets.
5.1: The seller’s Title- a) Section 12 sales of Goods Act 1979 cover certain rules those are
related to the implied terms and situation that explains that retailer must have certain option to
selling its products.
5.2 Transfer of property among both retailer or buyer- As per Ben’s case there are numerous of
consequences is identified by passing the ownership such as;
1. Right to sue a third party in case of any damages or loss of product on which it have
depend on who have the possession for specific time period.
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Section 16 is based on ascertainment of product in which; when there is an agreement of
deal of unreliable product which is produce with one of possession under certain situation that
will be transfer to purchaser until the products are in right condition.
Section 17 (1) of property must be transferred, whenever party wanted to transfer means
that in agreement of transaction of particular or ascertained product then property in that is
transferred to buyer.
Section 18 specifies the regulations for ascertain purpose which means that until and
unless seller haven’t disappears any other intention than according to legal provisions that during
selling a goods seller have only wish to pass the property to buyer (Buxbaum, Hirsch and Hopt,
2012).
Section 20 (1) transferring of risk mentions that until and unless product owner hasn't
transferred the possession then it’s upon seller risk and when the specific product get
successfully transferred then risk is also transferred to buyer.
At the end, it has been understood that Ben’s needs to consider all the legal terms and
conditions before transferring the possession of car in order to minimize the probabilities of risk
or major loss. In fact, analysing of all the legitimate provisions helps Ben’s in resolving all the
complex situation because Consumer Protect Act have introduced various remedies for the end
users.
1.3
As per given case study, product of Ben’s have been identified as faulty after the
purchase within sex days. Therefore, some of the necessary statutory provisions are made in
relation to the purchasers and retail in accordance with the sales of goods act 1979 are discussed
as follows-
Remedies action of seller-
Honorary vendor- Section 38 of SOGA 1979 describes that sellers are considered as
unpaid when the overall cost of specific goods in not paid or when the payment has been done
with the help of cheque that might get dishonoured.
Human rights of unpaid seller- under Section 39 SOGA 1979 clarify that unpaid seller
have a right over their own goods and have power to retaining the price of goods when he/she
have still goods in ownership. Additionally, if buyer get insolvent then at that time seller have a
right to stop the transition of goods (Posner, 2014).
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Apart from this, some of the real remedies are-
 According Section 41-43- rights against goods is lien.
 Section 44-46 states that stopped the goods transit.
 Section 48 clarify the retention and re-sale of product as controlled by sales act
Some of the personal solutions are-
Right against buyer-
 Section 49 is the action for expense of goods.
 Section 50 is an action during damages of non-acceptances of any product.
Furthermore, there are some solutions for buyer are also identified because consumers are
having some of the additional authorities as per the part of 5A SGA 1979 in which products does
not oblige within the sale agreement while delivering or for a certain time that is of six months
after the goods have been brought (Bagley, 2010).
Section 48B (1) of SOGA act 1979 repair or replacement which offers that buyer must
requisite the seller of products for repairing or replacing goods at seller’s cost.
Section 48C (1) minimization in price states that sellers have an option of minimizing the
price of specific product if he/she get failed in repair or replacement.
1.4
It has been seen in case of Ben that debts of products is been identified in accordance with
the legal relation under tort as well as related to the consumer act 1987. It is entirely relies on
the certain specific products issues those are associated with the getting all the authorised power
against the dealer. There is case which is much similar to the Ben case that is related with pure
incident of fraud. The case study was related with the two parties that are involved in the issue of
Donoghue vs Stevenson (1932). Basically, under this case Lord Atkin has deliver his verdict that
owner of the goods is entirely responsible to the client for taking logical think about the issues in
order to control the probabilities of damage which might suffered by end user. Thus, in case of a
single product is need to be taken into account damage in basically two situation such as; firstly
when that good haven’t provided in the good condition as per the condition of agreement and on
the other hand, when that item is going to be dangerous for the individual or might his/her
possessions is mentioned under Section 3 (1) of consumer Protection Act 1987 (DiMatteo,
2010).
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In the existing case of Ben’s, seller of vehicle is annoying to move away from its legal
rights of providing damage car without following all sorts of sections or clauses which is already
mentioned under this agreement. But in relation to the law of unfair dismissal under consumer
protection law 1999 it is wrongful act. However, by the use of this phrase seller wants to get rid
from all the legal responsibility of product and this section wasn’t bring become aware of Mr
Ben. Hence, according sales of goods act, seller is liable for repair or replacement of faulty
vehicle through his own expense. Therefore, by the use of Unfair Terns in Consumer Contracts
Ben’s can easily claim for his loss by seller.
TASK 2
2.1
Consumer needs to aware about the various kinds of credit agreements in order to obtain
their products just like that Ben’s have to update about this for proper buying of his vehicle.
Thus, there are various types of credit agreements are identified under Consumer Credit Act
1974 which might use by Ben while buying the product is described below-
Restricted use of credit- As per this agreement, credit offered is restricted but the credit
provided under this contract is used by debtor in various ways whatever he/she likes.
Unrestricted use of credit- This contract is not falls under definition given in Section 11
(1) of consumer credit act 1974 as well as credit offered as per this agreement is unrestricted in
nature (Frank and Bix, 2017).
Debtor-creditor supplier agreements- Contracts designed under Section 12 of
consumer credit agreement is formed by creditor as per few pre-existing arrangements between
him/her and supplier.
Debtor creditor contracts- This agreement is falls under Section 13 of Consumer credit
agreements 1974 which not designer under any pre-existing planning in between creditor and
supplier. In fact, only debtor is having knowledge about credit which is going to use for
financing a transaction between debtor or supplier.
Apart from this, some of the other types of credit agreements are; Consumer Hire
agreements which is controlled by Financial Services and Markets Act 2000. Secondly, Loans to
employees and directors by FSMA and RAO.
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2.2
According to the rules and regulation of legitimate bodies, Ben have an authority to
terminate his credit agreement as there are various rights are prescribed for consumer under
Consumer Protection Act 1974. Therefore, as per this law customer have a legal right to
terminate the credit agreement any time before finalizing the contract or within 14 days of
signing the contract (Bishara, 2011).
Ben’s have an authority to inform lender that he is going to cancel the contract which is
consider as giving notice and notice must be given in writing. But if Ben’s face trouble while
paying back dues;
 Lender needs to requisite send Arrears Notice and also a Financial Conduct Authority
information sheet but it’s not required if there is a Green Deal plan.
 Moreover, lender also needs to send a notice of default which must cover FCA
information sheet and Ben’s can acquire the sheet from FCA website that is
www.fca.org.uk. Thus, by the help of default notice Ben will get aware about that what is
right or wrong and what is the outcome if he will not pay what is owned to him.
2.3
In agency, one individual works and perform on the behalf of another member. They are
known as agent and the person for which agent is working is known as principal. However,
agency must be created in two different ways such as; agency created by contract in which
number of agent connection are formed through agreements but it is essential to must there is a
presence of three main principles of agreement. On the other hand, there is also an agency which
is formed through operation of law (Halbert and Ingulli, 2011).
An agent is an individual who is liable for protecting his principal by acting on behalf of
them in front of judiciary court and make them understand about the necessary legal rules or
regulations.;
Implied agency- According to this element, wherever there is a social needs then court
will declare it as a presence of an agency and if there is none of the agreement is identified into
parties and that agency relationship then it is consider as implied by “operation of law”.
Apparent agency- In relation to the certain tough agency attitude or relationship that is
not having communicated along with the related parties in that particular case it has been
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assumed that the agent would be noticeable. As a result, principal get liable for bearing all the
outcomes of agent’s actions (Ye and et. al., 2011).
It means that agent is a person who has to act on behalf of principal when he/she have
granted by some kind of authority for doing so. Some of the major types of agent are-
 General agent- Person who is acting as a general agent needs to perform number of
activities due to lots of authority on the name of or behalf of principal.
 Special agent- These members are having very limited power because they are hired for
assigning some specific work or to complete any special mission nothing more.
2.4
As an agent, an individual have various rights and duties which is discussed as follows-
Duties of an agent-
 Duty of obedience- Most significant responsibility of agent is that he/she needs to follow
all the legitimate instruction which is given by principal.
 Duty of care- It means, person performing as agent is liable for performing all the duties
of care and must have skills to accomplish that specific work which is assign to them.
 Repair and despair- In case an agent is having a certain legal obligation in relation to
the property management then he/she must need to accomplish all the necessary things
which requisite to done for property (Robson, 2010).
 Loyalty- One of the most important responsibility of an agent is that he have to be loyal
towards his principal by sharing all the necessary information with principal.
Rights of an agent-
 Remuneration- As per this element, agent is having an authority to acquire his/her
remuneration in wages form or salary or sometime it might be commission in case of
self-governing specialized.
 Reimbursement and indemnity- It is said to be one of the specific way that can be more
useful for the agent in order to analyse their rights in examine that total amount that are
reimbursement by the principal in accordance with any damage or goods.
 Lien- An agent has an authority of lien where he/she must retain principal’s products
until and unless their liabilities are not been cleared by principal.
 Third parties- In case there is proper presence of any instant conflicting situation among
agent who get entered into an agreement on behalf of principal and third party then in this
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circumstances agent have a right to come out from it so that principal and third party can
sue each other directly (Bebchuk and Jackson, 2012).
TASK 3
Slide 1
Slide 2
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Slide 3
Slide 4
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The Competition Act 1998- Main objective of this law is to regulate all the illegal
techniques of firms which is used by them for making market monopolised as well as impose
certain prohibitions for firms such as;
 Not to make or operate cartels
 Don’t abuse those who is holding a dominant position at local and national levels.
 Don’t have authority to fix the cost or any terms of market investigation for destroying
competitors business.
The Enterprise Act 2002- Main motive of this act is to analysis few things which is
mentioned as follows-
 To analyse the mergers and determine that they must be independent instead of getting
affected by any politicians.
 Cartels are considered as criminal offence and provisions are more complex or strict than
that of European Union.
 Disqualified those directors who have breaches the completion regulations.
 Customer groups can also have an authority to file a complaint against uncompetitive
practices.
Slide 5
Enterprise and Regulatory Act 2013- This law have done the establishment of new
competitive market as well as markets intelligence or authority which was introduced on 1st
April, 2014. Basically, it’s a combination of competition and consumer protections function
which is mainly performed by Office of Fair trading.
Slide 6
12

Office of fair trading is engaged in analysing the unfair and uncompetitive trading and
their major roles are-
 To accomplish the regulation provisions of consumer credits.
 Researching of anti-competitive practices such as; restrictive practices wherever producer
always trying to enforce retailers for fixing the price of products.
 Promote market structure if there is an availability of competitive behaviour.
Slide 7
13

Competition and Markets Authority- This institution is consider as most latest
competition regulator which have been formed by the combination of office of Fair Trading and
competition commission. However, its major role and necessary functions are-
Policy Towards mergers-
Substantial lessening of Competition- According to this element, mergers will assessed
on the basis of substantial lessening which means that; is there will be potential loss of
competition at marketplace because of merger or not. Mainly, there are almost three types of
merger are identified which might resultant into lessening of competition such as; Unilateral
influence, Co-ordinated effect and vertical effect.
Slide 8
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In order to apply Article 82 European Union, it is essential to fulfilled the four
requirements such as; initially that there must be one or more undertakings needs to be in
dominant position, secondly that position must be held into common market, thirdly undertaking
must abuse of that position and at last that abuse must influence the inter-state trading business.
Slide 9
Slide 10
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In fact, if a contract is not notified or authorized then this subject needs to research and
prosecute under Treaty’s provisions.
Individual exemption- There is mainly two positive and two negative conditions are
needed to this exemption whenever it can granted-
Positive situations are-
Contribute to enhancement of production or in transferring of goods as well as to enhance
technical or economic development.
Permit consumer a fair share of advantages which have resulted.
Negative conditions are-
Not impose restrictions on organization which are significant for attaining above listed target.
Not give rise to probable elimination of competition in substantial part of market.
Block exemptions- This element is covering some of particular agreements between an
enterprises such as; distribution of products and purchasing contracts, Research and development
cooperatives, patent etc.
Apart from this, commission have imposed some exemptions on transportation, insurance
and agricultural sectors. For example; in the circumstance of Cathode ray tubes, seven
organizations was caught for entering into a cartel which is strictly prohibited in EU and UK
laws as well as charge a fine of around 1.5 billion Euros from seven companies that includes;
LG, Samsung, Panasonic, Philips etc.
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Slide 11
Slide 12
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TASK 4
4.1
Patents help in defending new inventions and mainly prevents the features as well as
procedure of making things work. However, this support inventors in acquiring maximum level
of profit from their creators. Some of the criteria needs to be fulfilled for having an intellectual
property are; initially, invention needs to be new and secondly it must be creative step which is
not obvious for someone with knowledge.
Designs which get registered is consider as legitimate right which helps in protecting the
entire visual appearance of goods or might be a part of product in country in which it has been
registered (Bently and Sherman, 2014).
Trademarks is seen as sign or symbol of an organization which make them distinct from
other competitors at marketplace. It might be any words, logos or sometime combination of both.
However, trademark needs to be registered under Intellectual Property Office.
4.2
There are number of advantages are identified in an organization through rights which are
discussed as follows-
Patent authorities covers legitimate action in order to control other individual from
copying, manufacturing, selling and importing a patent without his/her permission. Along with
this, it can also provide an individual to take strict action under civil law for controlling
exploitation of invention.
Thus, some of the essential rights which gives patent to an individual are- Sell his/her
creativity and all the related intellectual property and an authority to certificate the creativity to
specific aspects that are related with the individual that is still having right to keep hold of all
Intellectual property rights.
4.3
Owner of exclusive rights is having both moral as well as monetary civil rights.
Basically, ethical authorities are right to remember as writer whereas economic gives an
authority that is related with the duplicate work, valuation to their work ability and adaption of
the specific laws.. Mainly, rights of copyright last till the end of author’s time and till 70 years
after the loss of author (Colpan and Hikino, 2010). Moreover, creditors and manufactures of
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creative work can receive meaningful prevention, recognition as well as compensation for their
part in economic development.
Infringement of copyright: Whenever kind value of the job that an individual get copied
without taking permission from the owner of copyright then this will consider as infringement of
copyright.
4.4
It has been found that there are certain major distinct among prevention offered by the firm
name and to make business on the basis of the given trademark. Moreover, all the business firms
need to be liable in for their action at the time of registration of company in UK. Mainly,
company regulation and law of trademark are distinct from one another. For example; in case of
name of an association it is essential to make use of all specific law or regulation that are related
with the registration of the company that doesn’t mean that an organization as have a trademark
option. In fact, an organization must have different business name as well as company name as
well as name of company is not accepted as a trademark in certain situation. For example; It is
not different, it is a descriptive word, Main motive of word is to indicate geographical source of
product and this might already registered as trademark
On the other hand, trademark is not registered as name of company in specific
circumstances- If there is a similarity with name of any other organization, it might already
register as name of company and this will considered as illegal in nature.
CONCLUSION
From the above report, it has been summarized that legal bodies have enacted number of
legal laws, provision, rules and regulations for protecting buyer and seller from wrongful
activities. In fact, impose certain laws which need to follow by each and every member which
were engaged in running a business. However, this entire project shows that consumer have
number of authority to protect themselves from faulty products such as; all the Sections of Sale
of Goods Act 1979. Along with this, one thing is also get cleared that agents are playing very
crucial in preventing principal from third party by acting on behalf of them. Moreover, it has
been understood that various intellectual property are there whose rights are protecting
inventions of creator in various manner.
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REFERENCES
Books and Journals
Wilson, A. and et. al., 2012. Services marketing: Integrating customer focus across the
firm. Berkshire, United Kindom: McGraw-Hill Education. Electronic sources.
Abril, P.S., 2011. The evolution of business celebrity in American law and society. American
Business Law Journal. 48(2). pp.177-225.
Macaulay, S., 2018. Non-contractual relations in business: A preliminary study. In The Law and
Society Canon (pp. 155-167). Routledge.
Buxbaum, R.M., Hirsch, A. and Hopt, K.J. eds., 2012. European business law: Legal and
Economic analyses on integration and harmonization. Walter de Gruyter.
Posner, R.A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Bagley, C.E., 2010. What's law got to do with it?: Integrating Law and Strategy. American
Business Law Journal. 47(4). pp.587-639.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive
advantage. American Business Law Journal. 47(4). pp.727-794.
Frank, J. and Bix, B.H., 2017. Law and the modern mind. Routledge.
Bishara, N.D., 2011. Governance and corruption constraints in the Middle East: Overcoming the
business ethics glass ceiling. American Business Law Journal. 48(2). pp.227-283.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Ye, Q and et. al., 2011. The influence of user-generated content on traveler behavior: An
empirical investigation on the effects of e-word-of-mouth to hotel online
bookings. Computers in Human behavior. 27(2). pp.634-639.
Robson, R.A., 2010. Crime and punishment: rehabilitating retribution as a justification for
organizational criminal liability. American Business Law Journal. 47(1). pp.109-144.
Bebchuk, L.A. and Jackson Jr, R.J., 2012. The law and economics of blockholder
disclosure. Harv. Bus. L. Rev., 2. p.39.
Bently, L. and Sherman, B., 2014. Intellectual property law. Oxford University Press, USA.
Colpan, A.M. and Hikino, T., 2010. Foundations of business groups: towards an integrated
framework. In The Oxford handbook of business groups.
Online
UK Department for Business, Innovation & Skills, 2013. [Online]. Avaialble
through<http://folksonomy.co/?permalink=3590>
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