This study explores business law and its implications for managers. It discusses cases of false misrepresentation and the tort of negligence. It also delves into the concept of a corporation as a legal entity.
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Law for Business Managers
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Contents INTRODUCTION...........................................................................................................................3 PART 1............................................................................................................................................3 Meaning of representation and along with appropriate law of case............................................3 Part 3................................................................................................................................................8 A corporation may be defined as a legal entity or artificial person’...........................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................10
INTRODUCTION Business law refers all laws that give a framework to business managers for how to act and operate business. which Business managers have to follow several rules and law and there is requirement for business manager to have knowledge about all laws as it provides rights to them against other businesses (Liao, Lebanoff and Liu, 2018). Understanding of business law can help business manager in identifying legal issues and making better decision. This present study is divided into 3 parts. Part 1 of this study is related to case of false misrepresentation of quality in car dealership in which, car salesman sells second hand car to customer with false representation. Thisstudywilldiscussallcasesandactswhichcansupportvictimintermsoffalse representation. Part 2 of this study will discuss the tort of negligence and all rights which victims can claim for negligence. Further, this study will discuss a corporation and its legal definition in order to show whether it is counted as legal entity or an artificial person. The actual definition of corporation can help in identifying appropriate laws relevant to this. PART 1 Meaning of representation and along with appropriate law of case Representation can be defined as an act of being another’s agent and a statement or fact. Or in another legal form it can be said that representation is a statement which related to matter of fact which is being made during contractual negotiation and other deals (Damonte, Cohen and Satta, 2016). In the case of Jonna Vs Harron in which, Jonna does not have much knowledge about cars and she tells this to car salesman Harron, that she wants to buy car. She asked to salesman that represents some cars which are cheaper and reliable. So, Harron takes undue advantage of it and represent a car by saying that it is a beautiful car and if she does not buy it then she would miss out on the deal of the month. Jonna does not have any knowledge so, she believes Harron as he is expertiseasacarsalesmanbutwithin15days,carbreakdown.So,itisacaseof misrepresentation. It is a case in which Harron displays a car and represents it to Jonna with an misrepresent quality and false representation. So, it is a case of false representation. Fraud act 2006: In the fraud by false representation section (2) a person is considered in breach of this section when he intentionally makes false representation. Infraud false representation, 3
defendant has intention of making a gain or causing a loss to another and that is why conducts dishonest representation (Furth-Matzkin and Sommers, 2020). Both theseterms applied in the case of Jonna where, car sales man represented car in a false or fraud manner in order to take undue advantage and earning profit. In this fraud false representation, customers often affected by this malpractice of salesman and believe that claims made by sales man because they are considered to be experts. In such cases, victims or customers can seek help under consumer protection act 1986. Under this act, a consumer is the one who buys any product or avail a service for his/her own use or not for commercial purpose. And Jonna wants to buy car for his personal purpose of going to office which is 20 miles away from his house. As per this act, maximum sentence is being given to defendant for5 years imprisonment. As per this act, all retailers and sales man or defendants have duties to make sure that products which they are going to sell are of a certain standard and if any contrary found in products then they will be liable forunfair trade practice. So, as per themisrepresentation of quality,Jonna has right to file complaint in the consumer Redressal commission in order to avail a remedy. There is a similar case, registered in 2017. In this case, consumer proved that he became a victim of odometer tampering of misrepresentation of quality bySLV car world which is a 2ndhand car retailer. And in this case of SLV car world misrepresentation of quality, defendant or retailer had to pay 1.5 Lac as per the Consumer forum for hisunfair trade practice (Relevant cases of False Misrepresentation,2019). Fraudulent vehicle misrepresentation act 1967: Such kinds of frauds in which defendants have intention of misrepresentation of earning profit by unfair method are known as fraudulent vehicle misrepresentation. In this misrepresentation, car sales man or dealer tells a lie to customers intentionally because of making profit. Lie is mainly related to the quality of product and for misleading customers. they use several statements to urge the buyer for selling their products. There are several examples of vehicle fraud and misrepresentation of quality in which dealers or car salesman often tells to their potential customers that car is quite new (Vizier, 2017). So, there is a case of fraudulent misrepresentation and victim can claim for fraud and can obtain a significant damage award. For this, there is requirement for Jonnatoshow and prove that the dealer omitted or misrepresented material facts which leads to financial loss to victim. Afterprovingfraud,victimmaybeentitledtovariousremediestailoredtoappropriate circumstance. In such cases court may order to refund all payments made by customer towards 4
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the purchase. Victim has right to get compensation for wrongful repossession of vehicle. So, according to this act, victim can get all damages and full payment against damages from victim. In such cases, the maximums sentence for fraud by misrepresentation or false representation is given for 6 months’ imprisonment. Along with 6 months of imprisonment, defendant is asked for unlimited fine in the magistrate’s coordinate crown court, defendant is given 10 years of imprisonment along with unlimited fine (Fraud Misrepresentation Cases,2020). So, it can be said that Jonna can contact to fraud solicitors according to her suitability and can seek for help or compensation against false misrepresentation for quality of car, purchased by her. A mere representation can be distinguished from a term of contract because a contractual term refers any provision which form a part of contract. On the other hand, representation refers a statement which cannot be amounted to the term of contract. But in the representation, makers of statement like car dealers do not give guarantee about their truth. And due to this lack of guarantee of truth it gives rise to no contractual obligations but may amount to a tort such as misrepresentation (Zaffini, 2020). So, from this, difference between representation and a term of contract can be defined and seen. Express term in contract of agreement can also be defined and understood when all terms are being expressly agreed between parties. And in representation, speaker of statement only tells customers whatever he wants to tell for earning profit and it may be right and wrong. PART 2 Tort of negligence Negligence occurs when one avoids or fails to take reasonable care which cause damage to another person.This have clear application in both individual and business.There are several facts needed to be satisfied for an individual to be successfully sue for negligence. On the other hand, negligence’s unintentional tort where in one party have been injured due to action of another. In Blyth v. Birmingham Water Works Co, Negligence was defined as the omission to do something which a reasonable man would do or doing something which a prudent or reasonable man would not do. In addition, under the legal sense, this have clear high lightening of the failure for performing of care in all situation. It can be state as negligence’s have ben model looking around to type of injuries without considering suitable precaution. 5
As per the case, Haroon is responsible for tort of negligence on to Jonna. as she was not awre regarding any information in relation to car. She has blind trusted Haroon expertise of being successful car salesman. But due to the negligence of Haroon the car has ben break down in two weeks.So, in term of tort of negligence there are essential element need to be properly discussed. Essential of negligence tort Duty to take care This is important condition under liability for negligence as the defendant owes a legal duty towards the plaintiff. This have existence due to relationship between the both parties. In case Johana and Haroon have customer, relationship which have arisen due to nature of job of Haroon. Herron is in legal profession being sales executive of firm with obligation to provide the best good and service to its customer in perfect manner. Standard of care and breach of duty It is very important plaintiff to prove negligence as defendant is not able to perform any duties. In such situation, Herron owes the duty of care to Johana, as duties will be determined exactly by court. This is considered standard of care as professional is held under certain standard to follow its professionalism. In per circumstances, the standard of care with reasonable circumstances by ensuring proper possibility of harm tends to be minimized.This is helpful in keeping up with right balances between parties considering level of care. If the situations of standard of care is not met, then the person will be acted as breach of duty owned to another per. in term of case Haroon was not able to meet the standard of care its salesman professions. So, this will be enacted as breach of duty to Johnna. Damage a causation Apersonabletheanotheronefornegligence’s,harm.Thishavebeenconsideredas consequences of another person action must be clearly shown. Harmed caused due to negligence could be physical or mental. in the situation is clearly falling on plaintiff for providing the harem that is been a sue by the defendant breach of duty have caused.furthered, there ought can be turned into the intervening events as the court a clearly asked if the person have suffered harm ‘but for’ the action of another person. The failure to exercise reasonable care must result in actual damages to a person to whom the defendant owed a duty of care and a personal injury claim must be brought to court within the appropriate time frame. 6
Proximate cause Proximate cause has the scope for deferent responsibilityin negligence case. In such situation, negligence is only responsible for the hard causes that the defendant could have foreseen through his or her actions. On the other hand, if the condition around the scope of risk of defendant, the plaintiff will not be able to prove defendant action as the proximate assume of plaintiff damages. for example There was a case of Liebeck v. McDonald’s This was case of sever burnt issue to customer. There was issue in quality control of MacDonald. They found McDonald’s 80% responsible for the incident and awarded Liebeck $160,000 in compensatory damages. They also awarded Liebeck 2.86 million dollars in punitive damages because they deemed McDonald’s actions willful, wanton, and reckless. On the other hand per case of Donoghue v. Stevenson (1932) has evolved the principle that we each have a duty of care to our neighbour or someone we could reasonably expect to be affected by our acts or omissions Successful in claim for negligence In addition to be successful in claim for negligence, the claimant complete significates requirements with balance on probabilities. As per the case of Johana and Haroon, there are differ essential element of negligence are responsible for event taken place.As per the case, Johana was not aware of any important consideration to be keep under the mind for purchasing car. The car has collapsed within two weeks. This have followed up the different element of tort of negligence. As implication of case is with duty of care as Haroon is need to look around the important aspect of professionalism. Johana have taken round the statutory violation without discussing of different element will clearly lead to negligence’s as per claim. The basic way to proof of negligence’s by providing evidence support of the claim. Direct evidence This can be with handling of personal accounts of the events, there will be question from witness testimony, video, photosand document pertaining to the events n question. Johana can show the proper documentation regrading the paper of car and video recording of the showroom where she has purchase car. Circumstantial evidences 7
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These are inference-based evidences which are clearly derived from the party testimony use d to establish proof in negligence case.There are special rules existences depending on different circumstance of case.Johana claim will have requirements of evidence which is proving there statuary violations to establish the persuasion of negligence. After collapsing of care, Johnna have resumed that Haroon have negligence to responsibility and provided the car which but not as per the usage for long run. In addition, Johnna can as per the doctrineof res Ipas loquitur allows for the inference of negligence with proof of misconduct in cases where the plaintiff can prove the injury causing event does not happen in the absence of negligence and the defendant had exclusive control of the cause. Part 3 A corporation may be defined as a legal entity or artificial person’ In the context of corporation, it can be said that a company and corporation is recognized as an artificial person created by law. Incorporation term is known as artificial body which needs to be recognized by legal person or law, exist independently with all appropriate liabilities and rights. The meaning of this incorporation is it is treated as a separate entity from its all participants. In another words corporate entity refers business structure which is being formed to perform all business activities like holding assets and others. It can also be said that it is a legal entity exist independently and there are main 3 forms of legal entities via which business activities are being conducted such as: corporation, sole proprietorship and partnership (Abd Gheadas and Aziz, 2017). One of the main reasons of knowing it legal entity because it is distinct from its owners and it is the reason as many people refers it as a legal person. The meaning of this legal person means it needs to follow all rules, laws and stakeholders can take part in all profits occurred by dividends and stock appreciations. Section 2 of companies’ act 2013 also defines and considers company as a company incorporate because it is created by law, having independent or separate entity with perpetual succession. So, overall, it can be said that a company can be defined as incorporation association, artificial person, created by law, having independent entity with perpetual succession. There are some reasons which show purpose of considering corporation as an artificial person under laws such as: creating new legal entity via which several owners can act as one. This new artificial body require to taking on same legal status as owner have and assume responsibility for them. From this it cannot be said that corporation is a person in the 8
ordinary terms so, the meaning is corporate entity is an artificial person which can take same legal actions as owner of the company (Heizer, 2016). There are some features of artificial personality and one of the main features of it is allow all entities to be considered artificial body who are independent from their individual members. It also has right to sue, to enter contract, to own property and to be sued. Artificial personality is made us from several characteristics such as: behavioural quirks which assigned to digital assistant. It also holds all legal rights which make them differ from individuals whom they comprise for example: a registered company because it can sue and can be sued. On the other hand, corporation is considered as artificial person for the peruse of tax. A corporationisanassociationofdifferentpersonrecognizedaslegalentity’shavingthe independent legal existences. it has a body corporate or justice person.on the other hand, A corporation is an artificial personas inter alia. It is created through a legal process for example charter, statute or by registration. The person formed is by juristic or abstraction of law. This case has been refer as per rule of Salomon V. Salomon and Co. Ltd. Rights Since corporations is acting as place of owners, this may clearly seem that corporation will have same right as owner. this will have inclusion of right to property, the right to enter into contracts and equal protection under the law. On the other hand, there are many things which cannot be perform by corporation as owner as marry, vote or run for office. Responsibility When people act in group have to look around the legal responsibilities. There is need to make proper obey of policy and procedure, following up of regulation and avoid damaging the property. There is need to treat employee as per labour code. government and court will treat corporation in same manner assuming having responsibilities of full artificial person under laws corporation will be responsible for its action. Legal proceeding As a legal person, corporation may be sued as court will treat artificial person with same rights and obligation taken by individual person. Corporation can Have hiring of lawyers, file lawsuits and collect ages.On the other hand, courts have holding corporation liable for action and even dissolution if proven guilty. Taxes 9
Corporation are artificial person for tax purpose. There is key difference in application tax rates. corporation have the different tax treatment highlighting their corporation a legal person, governments can treat them differently than individuals in specific instances. CONCLUSION From the above file, it can be concluded as misrepresentation of quality, Jonna has right to file complaintintheconsumerRedressalcommissioninordertoavailaremedy.Thereis requirement for Jonnatoshow and prove that the dealer omitted or misrepresented material facts which leads to financial loss to victimStandard of care and breach of duty professional is held under certain standard to follow its professionalism. in per circumstances. So, overall, it can be said that a company can be defined as incorporation association, artificial person, created by law, having independent entity with perpetual succession. There is need to make proper obey of policy and procedure, following up of regulation and avoid damaging the property. 10
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REFERENCES Books and Journals Online Damonte, M., Cohen, S.B. and Satta, G., 2016. An incremental parser for abstract meaning representation.arXiv preprint arXiv:1608.06111. Liao, K., Lebanoff, L. and Liu, F., 2018. Abstract meaning representation for multi-document summarization.arXiv preprint arXiv:1806.05655. Furth-Matzkin, M. and Sommers, R., 2020. Consumer Psychology and the Problem of Fine-Print Fraud.Stan. L. Rev.,72, p.503. Vazire, S., 2017. Quality uncertainty erodes trust in science.Collabra: Psychology,3(1). Zaffini, S., 2020. Real Unity and Representation in Hobbes, Schmitt, and Barth.Polity,52(1), pp.35-63. Abd Ghadas, Z.A. and Aziz, H.A., 2017. Legal Framework of Shariah Corporations in Malaysia: SpecialReferencetoWaqfCorporation.JournalofModernAccountingand Auditing.13(3). pp.121-127. Heiser, W.W., 2016. General Jurisdiction in the Place of Incorporation: An Artificial" Home" for an Artificial Person.Houston Law Review.53(3). p.3948. Cavico, F.J and et,al., 2016. The Tort of Negligence in Employment Hiring, Supervision and Retention. American Journal of Business and Society, 1(4), p.205. Goudkamp, J. and Ihuoma, M., 2016. A tour of the tort of negligence. James Goudkamp and Melody Ihuoma,‘A Tour of the Tort of Negligence’(2016), 32. Stace, V., 2016. Directors' Liabilityin Negligence-Challengingthe Elementsof the Tort Approach. Victoria U. Wellington L. Rev., 47, p.485. ONLINE RelevantcasesofFalseMisrepresentation.2019.OnlineAvailablethrough:< http://lawtimesjournal.in/odometer-tampering-and-its-remedies/.> FraudMisrepresentationCases.2020.OnlineAvailablethrough:< https://www.stuartmillersolicitors.co.uk/criminal-law-cases/fraud-cases/#:~:text=As %20with%20other%20types%20of,risk%20of%20loss%20to%20another> 11
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