Legal Principles Affecting Business Organisations and Consumers: A Comprehensive Analysis

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Contents
Introduction................................................................................................................................................................. 3
Task 1 Be able to apply tmain principles affecting the legal relationship between business organisations and their
consumers 4
P1.1 Analyse and advice Ben on the legal rules of implied terms relating to the sale of goods and supply of
services....................................................................................................................................................................4
P1.2 Analyse and advice Ben on the statutory provisions on the transfer of property and possession.....................6
P1.3 Evaluate the statutory provisions on buyer’s and seller’s remedies in sale of goods contracts........................6
P1.4 apply product liability statutory provisions for faulty goods............................................................................7
Task 2 Be able to apply the legal rules on consumer credit agreements and agency..............................................8
P2.1 Differentiate between types of credit agreements which Ben as a consumer could use to buy a car................8
P2.2 Analyse the legal rules on termination rights and default notices....................................................................8
P2.3 Analyse the general features of Agency and differentiate between the different types of agents.....................9
P2.4 Evaluate the rights and duties of an agent to assist Ben understand his position once he becomes an agent
himself...................................................................................................................................................................10
Task 3 You are expected to show an understanding of the legal rules relating to monopolies, mergers and anti-
competitive practices................................................................................................................................................. 11
P3.1 Outline and explain the monopolies and anti-competitive practice legislation in the UK..............................11
P3.2 Explain the role of the Competition Commission within the context of monopolies and anti-competitive
practices and the UK Office of Fair Trading now merged in the Competition and Markets Authority in regulating
Monopolies and Anti-competitive practices..........................................................................................................12
P3.3 Define dominant positions within the EU common market giving examples of such businesses...................13
P3.4 Consider and discuss instances when under EU law, exemptions will be made to potentially anti-competitive
practices.................................................................................................................................................................13
Task 4 You are expected to show knowledge of the key provisions relating to intellectual property rights in this
task. 14
P4.1 Identify and explain the different forms of intellectual property right...........................................................14
P4.2 Outline the principles relating to the protection of inventions through patent rights and legal rules preventing
their infringement..................................................................................................................................................15
P4.3 Describe the principles relating to copyright protection and the legal rules preventing their infringement....15
P4.4 Compare and contrast the protection of trademarks and business names giving practical examples..............16
Conclusion.................................................................................................................................................................17
Bibliography.............................................................................................................................................................. 18

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Introduction
The present assignment aims at understanding some of the legal principals, that is, the law of
contract, the law of agency, law dealing with consumer credit agreement, the law dealing with
intellectual property rights and the law that deals with monopoly and anti-competitive policies.
Task 1 covers the law dealing with the law of contract covers the law of agency, Task 3 deals
with the law of monopoly and anti-restrictive practice, deals with the law of intellectual property.
The assignment is supported with case laws and adequate primary and secondary sources. An
agency is a relationship amid two persons, principal and agent, wherein the agent acts on behalf
of the principal and is authorized to represent the principal with third parties.

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Task 1 Be able to apply tmain principles affecting the legal relationship between business
organisations and their consumers
P1.1 Analyse and advice Ben on the legal rules of implied terms relating to the sale of goods
and supply of services.
Prior advising Ben, it is important to analyse the implied terms under Sales of Goods Act 1979
and Sales of Goods and Services Act 1982.
As per 1979 Act some of the implied terms comprises of: (Elawresource, n.d)
i) Section 12- The buyer must enjoy the quite possession of the goods and free from
defects. No hindrance must be caused to the buyer because of the defects in the
goods and is held in Niblett v Confectioners' Material (1921).
ii) Section 13 – Every goods supplied by the seller must correspond with the description
of the goods that is made by the seller and is held in Harlington & Leinster v
Christopher Hull Fine Art (1991).
iii) Section 14- The goods supplied must be of satisfactory quality and is held in
Stevenson v Rogers (1999). As per Aswan Engineering v Lupdine (1987), the goods
must fit the purpose for which they are supplied. (The Law Teacher, 2017)
In consumer sales goods, section 13 and 14 are implied conditions.
iv. Section 15- every goods must correspond with the sample.
As per 1982 Act some of the implied terms comprises of:
i. Section 3 – The goods must correspond with the description of the goods;
ii. Section 4 – The goods supplied must be of quality fit for the purpose acquired.
iii. Section 13 – The seller must provide services with all care and diligence.
iv. Section 14 – The services must be catered reasonably and within proper time.
Also, when there is sale of consumer goods, then as per section 6 of Unfair Contract Terms Act
1977, the implied terms made part of 1979 and 982 Act cannot be excluded by relying on any
exclusion clause and such clause instilled are void (Ashurst, 2009)
Now,

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The facts reveal that, Ben intent to buy a new car and thus visit the local showroom. As per the
advertisement a car with description “Blue New Model Passat 1.8, full service history available,
two years old and one owner only, 6 CD changers, original Alloyed wheels, driven for 18,500
miles only and used for school runs specifically, real good value for money, Car going for
£10,000 only.” was available.
The sales person submitted that the car was at another showroom which is 80 miles away and
can be brought if Ben pays a non-refundable deposit of £150. Ben pays the deposit. The car was
delivered to Ben house after servicing and cleaning.
However, there are several implied terms that are violated. The same are:
i. That the engine slowdown when the car was going uphill. The car comes to standstill
and would not move unless the engine was stopped and allowed to cool down from
over-heating.
Thus, there is violation of section 14 of 1979 Act and section 4 of 1982 Act as the car is not
fit for the purpose supplied.
ii. That the car had two owners instead of one. However the advertisements specifies
that the car of single owner. Also, it was found that the last owner had used it as a
taxi-cab, whereas as per the advertisement the car was used for school specifically.
Further, the speed was actually blocked at 18,500 miles and was not going any further
whereas it was specified that the car has only driven for 18,500 miles only.
Thus, there is violation of section 13 of 1979 and section 3 of 1982 act as the goods does not
correspond with the description.
Also, clause 9“We accept no responsibility what so ever for the description we have given about
the cars and the quality of the cars. Buyers are responsible for making their own independent
checks before buying.” Is not applicable because as per 1977 Act, the implied terms cannot be
excluded and the clause is itself void.