Business Law: Legal Rules and Responsibilities in Sale of Goods and Credit Agreements

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Legal rules related to implied terms in context of sale of goods and supply of services......1
1.2 Statutory provisions on transfer of property and possession................................................2
1.3 Evaluation of statutory provisions on buyer's and seller's remedies in sale of goods
contract........................................................................................................................................3
1.4 Product liability legal rules and statutory provisions............................................................4
TASK 2............................................................................................................................................4
2.1 Types of credit that Ben can use as a consumer....................................................................4
2.2 Legal rules on termination rights and default notices...........................................................5
2.3 General features of agency differentiation between various types of agents........................6
2.4 Evaluation of rights and duties of the agents........................................................................6
TASK 3 (Essay)...............................................................................................................................7
TASK 4............................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The Business law which is also commonly known as corporate law covers various
different rights and relations who are involved in various commercial and trade relations. This is
a common branch of the civil laws that cover both private and the public laws. Besides this, the
business law also cover various deals that are related with establishment of a new business.
Thus, overall it covers employment laws, contracts of sales, property rights etc. the present report
is based on business laws according to which, a case analysis have been done. The report
includes discussion over different laws related to sale of goods, monopolies, anti competitive
practices etc. further, in this report, a discussion has been made on the intellectual property rights
in context of business relations (Bagley, 2010). In addition to this, the report is going to talk
about the consumer credit agreements and agency as well. Additionally, the further sections of
report will have a focus on monopolies, mergers and different anti competitive practices. While,
the final section of report helps in understanding the laws related to intellectual property rights.
TASK 1
1.1 Legal rules related to implied terms in context of sale of goods and supply of services
As per the case scenario, it is clear that Ben made a purchase of a second hand car after
referring the particular car dealer's magazine. He was much satisfied by the advertisement as it
described good condition of car on affordable price. As a result, he immediately visited the car
showroom where he found out that car was not present at that time. But, as he was not willing to
lose a good deal of car, he deposited £150 to show his interest in the car (DiMatteo, 2010).
Finally, when the car arrived, he took a test drive as well and liked it a lot because of which, he
finally decided to purchase the car. After some days, he planned a family trip where he
discovered that the engine of car is not in well condition and gets overheated to because of which
it use to demand cool down process so as to drive properly. Following to this issue in car, he
decided to return the car to dealer which was refused. Further, he also found out that previously,
the car had two owners rather than one as mentioned in the advertisement. The second owner had
used the car for taxi services.
The above analysis of case states that there are some legal responsibilities which take
place between the both parties of buyer and seller. As per the sale of a product, the relation takes
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place under the act of Sales of goods act, 1979 according to which the implied term of sales have
been described within section 12-15. These terms have been delineated below:
 Section 12: The seller of product must have a complete ownership of good so as to
transfer the possession rights to buyer (Crane and Matten, 2016).
 Section 13: The description given about the good should be right and must match the
stated quality.
 Section 14: The product should not have any types of fault which cannot be acceptable by
the buyer.
 Section 15: The goods must be free from any type of defect.
As per the above analysis, it is clear that the required legal responsibilities were not
obeyed by the parties involved. The dealer did not present right information about the car in
advertisement. Besides this, the quality of product is also faulty which did not appear in the test
drive. The seller have made an attempt to relieve of his liabilities by including a exclusion clause
which cannot be applied in present case as it has negated the terms of Sales of goods act, 1979.
Thus, Ben has the right to make a claim for damaged caused from the purchased car (Haselmann,
Pistor and Vig, 2010).
1.2 Statutory provisions on transfer of property and possession
According to the corporate law, there are two types of goods, one is unspecified and other
is particular goods. In context of above case, Ben has been provided with all the details regarding
the car in advertisement clearly. Thus, according to the business law, it forms a particular good
in the eyes of law. The unspecified goods are those, which are not properly explained as per the
legal definitions. In the case of Ben, statutory provisions are implied in relation to Transfer of
property act, 1882 which has following obligations:
 The sold product must be acceptable in the eyes of law.
 The products can be transferred to the buyer only, if the seller has legal ownership of that
good.
 With the sale of good, all the rights related to product must also be transferred.
 Sales relationship must account to have a mutual interest of all the parties involved in the
deal (Halbert and Ingulli, 2011).
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