Business Law and Ethics Case Study

This assignment delves into the complexities of business law and ethics by presenting a series of case studies. Students are tasked with analyzing these cases, identifying relevant legal principles and ethical considerations, and formulating solutions or recommendations based on their understanding. The focus is on applying theoretical knowledge to practical scenarios and demonstrating critical thinking in navigating real-world business challenges.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................5
TASK 1 ...........................................................................................................................................5
1.1 Analyse the legal rules of implied terms relating to the sale of goods and supply of
services........................................................................................................................................5
1.2 Analyse the statutory provisions on the transfer of property and possession.......................6
1.3 Evaluation of statutory provisions regarding buyers' and sellers' s remedies.......................7
1.4 Analyse and advice on product liability legal rules and statutory provisions for faulty
good.............................................................................................................................................8
TASK 2............................................................................................................................................8
2.1 Differentiate between types of credit agreements.................................................................8
2.2 Analyse the legal rules on termination rights and default notices.......................................9
2.3 Analyse the general features of Agency................................................................................9
2.4 Evaluate the rights and duties of an agent...........................................................................10
TASK 3..........................................................................................................................................12
3.1 Outline and explain the monopolies and anti-competitive practice legislation in the UK..12
3.2 Explain the role of the Competition Commission within the context of monopolies and
anti-competitive practices.........................................................................................................12
3.3 Define dominant positions within the EU common market ...............................................13
3.4 when under EU law, exemptions will be made to potentially anti-competitive practices.. 14
TASK 4..........................................................................................................................................14
4.1 Explain the different forms of intellectual property rights..................................................14
4.2 Principles relating to protection of inventions and legal rules preventing their
infringement..............................................................................................................................15
4.3 Principles relating to copyright protection and the legal rules preventing their
infringement..............................................................................................................................15
4.4 Comparison between the protection of trademarks and business names giving examples16
CONCLUSION..............................................................................................................................16
REFERENCES

INTRODUCTION
In this today's world, there is need of knowledge related to each and every kind of law.
The business organizations in order to give a legal effect to their contractual relationship enter
into various kinds of contract. In this present report various kinds of laws and legislations have
been discussed. The main aim of this unit is to provide knowledge and application of the law and
rules relating to sales of goods act, consumer credit , competition law etc. also, basic rules of
contract and tort has also been mentioned in this present report. There are different rules and
regulations which affects the relationship between buyers and creditors. Moreover, in this present
report, legal rules relating to monopolies and anticompetitive practices has been discussed
(Appleman, Appleman and Holmes, 2015). It is a basic need that there should be a proper
knowledge about each and every aspect of general laws. In this present assignment there are
various legislations and provisions regarding consumer credit and their parts have been
mentioned. Concept of intellectual property has been analysed in this present assignment which
includes description of its particulars like copyrights, patents, trademarks etc. different rules
regarding prevention of inventions have been discussed.
TASK 1
1.1 Analyse the legal rules of implied terms relating to the sale of goods and supply of services
Sales of goods act is an act which is framed to give an effect to the relationship of
consumer and seller (Chaffey and White, 2010). There are different implied and express terms in
the contract of sale. In the given scenario, Ben a consumer is willing to buy a car. He has been
gone through an advertisement of a car in Car Dealer's magazine. He wishes to buy that car as
he found it suitable. He paid 150 pounds refundable amount to bring car to the showroom. After
4 days when he went with his family , the car stuck and its engine was heated. Ben went to Car
dealers and complaint about it, but they refused to take the car back as it was written on the
contract that there is no responsibilities of their company and buyer is responsible for their own
independent checking. As a legal advisor, it has been suggested that there are various terms
regarding implied terms in the contract these are as follows:
 Title: It has been dealt under section 12 of Sales of goods act 1979, which says that the
seller should have a consideration which should be there in the title in order to sell. If it

will not be done then it will be treated as breach of contract. It has been decided in the
case law of Rowland v Divall (1923).
 Description: In this term, it is the duty of the seller to sell the goods according to the
prescription and quality as prescribed in an advertisement to sale (Chaney and Martin,
2013. In this given case, it was the duty of the Car dealers to sell the car according to the
descriptions.
 Quality: According to the section 14(2), It means that the seller should ensure quality in
the sale of its goods and services else he would be entitled in the breach of contract.
It means that the goods sold must be fit and durable and free from damages.
1.2 Analyse the statutory provisions on the transfer of property and possession
There are many statutory provisions regarding transfer of property and possessions. It
has been assessed that these should be considered so there can not be any issues and conflicts
further. Some of rules and regulations are as:
 According to section 16, it has been laid down that the goods must not be ascertained. If
they are, then ownership in the goods will not be transferred. It has been defined in the
case “Healy v Howlett and Sons 1917” that goods should be ascertained in render to
effect ownership.
 There must be an intention to enter into contractual relationship between parties as
conveyed in Section 17 of the said act (Clarkson, Miller and Cross, 2014).
 Seller should perform all the necessary things as required to be carried out in the
respective sale transaction.
 It is the duty of both buyer and seller that they should verify and ensure that the goods
that has been sold to buyer should be the same as specified in the description.
 Also, the property that needs to be passes to buyer should be approved by seller.
 Also, section 19 gives a right to seller to retain the title of goods and services that are in
the transaction and also being sold by buyer. It arose due to the case law of “Aluminium
industries vaassan BV v Romalpa Aluminium Ltd.(1976)”. It should be noted that this
clause will be accepted in the situation if it is mentioned in the contract by parties to the
contract.

1.3 Evaluation of statutory provisions regarding buyers' and sellers' s remedies.
In the above case scenario, Ben complaints about the situation of engine and car which
Car dealers refused to accept as they have clarified that its not their part of responsibility. So, in
this case Ben and Car dealer's seek to remedies which are laid down in act. There are some
provisions regarding seller's and buyer's rectifications, which can be demonstrated as follows:
Buyer's remedies:
 The first and foremost remedy of buyer is to reject the whole goods and services which
are sold by seller, in case if they are not in accordance with the quality and description so
that the conditions can not be breached (Crane and Matten, 2016).
 Also, if the buyer has not received goods at time or seller refuses to deliver the goods at
time then the buyer has a right to take appropriate actions. In the given case scenario, Ben
has a right to claim damages and take actions in aspect of the car that has been sold to
him.
 In case of breach of any warranty or any condition then the buyer can not terminate the
whole contract between them but he can claim damages in way of decrease in prices or
take any other suitable actions against the seller.
Seller's remedies:
 Seller has a right to take prompt actions against the buyer in case if buyer has not make
payment on time.
 He has the right to stop the goods in transit under section 44-46 in case if buyer becomes
insolvent (De Jonge, 2011).
 The seller is entitled to resale the goods in case of perishable goods and if it is specified
in contract.
1.4 Analyse and advice on product liability legal rules and statutory provisions for faulty good.
Several rules and regulations have been framed in respect of product liability legal rules
and statutory provisions in respect of faulty goods. In such case concept of negligence has been
applied. It is the term, which one person suffers injury from the acts and deeds performed by
other party to the contract. It depicts that seller is in the breach of its duty regarding sale of goods
which causes injury to buyer. In this case the Car dealers has sold a defective car ton Ben. In
case if Ben or any of its family member would have been in injured in the accident , then Ben
can claim the damages from car dealers. In accordance with the concept of tort of negligence, it

is the duty of the defendant to take care of the duty that has been owed to him. So, in this case,
Car dealers were supposed to adopt adequate measures to take care of the duty. Ben is entitled to
claim the damages from them (Dolzer and Schreuer, 2012). But for claiming compensations
from litigant, it must be the buyer has to prove that the damage has been caused on their part.
TASK 2
2.1 Differentiate between types of credit agreements.
In accordance with the Consumer Credit Act There are different types of credit
agreements which can be used by the buyers for purchase of goods and services from seller.
Consumer Credit Act 1974, lays down various legislations and provisions which are framed in
accordance with the protection of consumers. It amended the Consumer Credit Act 2006.
different types of credit agreements that can be used by Ben , can be understood as:
 Hire purchase: It is the type of credit agreement in which the consumer owns a property
on the behalf of a creditor and he is expected to pay the amount in the agreed period of
time (Foss and Knudsen, 2013). These goods can not be transferred as consumer does
not have the ownership of that property. It has been decided according to the case law of
“Helby v Matthews 1895.”
 Conditional sale : This method of credit used by Ben requires him to buy the goods and
services at the end of contract that has been framed between him and seller. It enables the
consumer to pass goods at good title.
 Credit sale : In this type used by Ben, ownership and possession passes from the
beginning of credit contract to him and also he cal always transfer ownership to third
party. In this case, creditor may sue for the debt.
2.2 Analyse the legal rules on termination rights and default notices.
Termination rights and default notices are the terms used in the aspect of contract.
Termination right enables the party to terminate or repudiate the contract (Bodie, 2013). On the
other hand default notices are the concept in which the creditor is allowed to send the default
notice giving 14 days from the date of receiving it to pay the due amount. The default notice
must contain all the requirements according to the consumer credit regulations 1983.
Rules regarding termination right which Ben as a debtor has difficulties in paying are as:

 It includes the cases in which the credit agreement has been terminated by both the
parties prior to the agreement. Creditor retrieves goods and services on default or breach of debtor.
In case of default of notice:
 The statement is terminated and demand for early payment.
 Rights of Ben as debtor are terminated.
2.3 Analyse the general features of Agency.
Agency is the term which states the relationship between the principal and agent. It is that
concept in which agent is required to enter into contract with the third party on the behalf of its
principal. Also, in this the principal and third party must have contractual capacity. There are
different types of agents (Furrow, et. al., 2013). Agency can be created by apparent authority in
which principal is ventilated from using responsibility. On the other hand, other type of agency is
agency by ratification in which the principal adopts the deeds of agents who has entered into
contract without any authority.
The different types of agents are as: General agents: General agents are those persons who performs all the operations of
contract. They have the duty to look after to each and every ongoing operation of
contract. it includes the following
▪ Factors: Factors are those persons who deal in the tangible property or goods and
services.
▪ Brokers: The persons who deal in the intangible and immaterial property of the
contract are known as brokers.
▪ Del Credere agents: He is the one who guarantee the performance of contract
with the support of another party to the contract. Special agents: Special agents are those persons who are associated with the
accomplishment of the particular or specified tasks. It includes:
▪ Bankers: bankers are those personnel who performs the functions of bank
operations (Halbert and Ingulli, 2011).
▪ Auctioneers: These are the persons who auction real property and tangible
property as well.

2.4 Evaluate the rights and duties of an agent.
In the context of credit and agency agreements, there are various rights and duties of
agent and its Principal which are required to be considered.
Rights of principal:
 Principal has the right to repudiate or terminate the contract or a business transaction.
 Another right of principal includes to claim the damages that has been occurred to him.
Duties of principal:
 The primary duty of Ben as a principal is to compensate his agent as agreed (Hamilton
and Freer, 2010).
 Also, to protect and indemnify his agent against any case of loss etc.
Rights of agent:
 In case of existence of contract, there is no remuneration.
 Agent has the lien over the property of principal.
Duties of Agent:
 When there is no contract between agent and principal then in that case, the agent is not
liable to obtain any profit, care skills and negligence.
 Also, agent is supposed to duties relating to honesty and fidelity including no concealed
profit, no issues in interest etc.
Termination of agency: it is the term in which the contract of agency is come to
repudiation. It can be affected by two factors:
1. By Operation of law: It includes death of either party, insolvency or insanity of parties to
the contract (Hopkins, 2011).
2. By acts of parties to contract: It includes revocation by principal or agent.

TASK 3
3.1 Outline and explain the monopolies and anti-competitive practice legislation in the UK
In the market there are different practices done related to the legislation which adopts the
policies and intent them to give a competitive edge to them. All such things leads to benefits in
such a way like they give better quality of goods and it also improves the efficiency And there is
a pure form which is said as a single supplier which is in mainly market sector that is called a
monopolies and these are practised in UK. Anti-competitive practice are replicate with the
monopoly provisions of the UK legislation, but it has the prohibit agreement which has only the
free trade and there is a competition between the businesses and even individuals (Kitagawa,
2016). It gives the behaviour of the ban abusive to the legislation by the domination in the
market in the form of monopolistic position or an practise which is anti-competitive. The
businesses has more relevant market with some amount of minimum turnover which is
acceptable in UK market. There are practices which are undertaken in market were there is less
competition with a strong acceptability that there is less competition in the UK market. This
legislation in UK are previously being consolidated and then are being introduced with the
prohibition of practises or an agreement which are wrongly conducted in the competition
(Kubasek, Brennan and Browne, 2016). On the large basis it give the then the power to have a
social control on them and fine them up to 10% from UK yearly turnover or to the consumers
right or competitors to claim for damages from competition appeal tribunal. The importance of
Competition in UK can be as:
 It is beneficial for its competitors.
 Low price of goods are done.
3.2 Explain the role of the Competition Commission within the context of monopolies and anti-
competitive practices
The role of competition commission in the UK sets the regulation with the monopolies or
the mergers who are replaced by the mergers commission and monopolies (Lawrence, 2013).
The competition commission makes the only social control and recommendations of rules are
done by the government. The competition commission and the mergers are :

 The market share of the new firm even if it under the monopolies or under competition
commission.
 There are some local monopolies which are interested in the merger.
 The economy scale of the industry is weigh up due to public interest in the firm.
 The importance of researcher and developers are in the competition commission.
The position in which the general director is in the fair trading which has been established and
has been involved in the function and is being transferred to office of fair trading. They study the
situation of the market and are operated as the customer by their market policy of their initiative
division (Laycock, 2010). They have full power to control the action and let the proposal go
down and they can change their law according to their need. The UK office which is of Fair
Trading are mainly merged in the market with the authority who regulates the practices, they
may also appear to all the replicate which are under the provisions monopoly of the Fair Trading
Act but will allow to investigate and conduct some specific practices of an individual or group of
the market.
3.3 Define dominant positions within the EU common market
A dominant positions is the ability in which the firm or the businesses behave
independently and has its competitors, suppliers and has the ultimately the final customer. This
firm holds a market power in such a way that it shows the ability to fix some price which is
above the competitive level and has to sell the product which is of inferior quality or it reduces
its rate below the level which would exist in the market of competitive (Mallor and et. al., 2012).
The European Union has the merger which is also an European merger which controls the
system and differs it from all other principle, and it gives a dominant position in the market
which can be jointly by two or more individual or independent entities which have the economic
which are linked with the common market. There are some law under the EU which is a
competition law which is not illegal to hold any position in the market which abuse the dominant
position in the EU market by the merger. There are many examples like there should not be any
direct or indirect purchase of any fair trade or any transaction which are not taken into
consideration with the other parties (Miller, 2015). There are many competitive disadvantages
which makes the subject with proper conclusion of which the contract is made which are
acceptable by the supplementary with the obligations which have no connection with it.

3.4 when under EU law, exemptions will be made to potentially anti-competitive practices.
The consideration in which there are exemptions in which there are some ban on
agreement and in the practices which are general ban under EU law. This might affect the trade
going on between the member of EU and it may also prevent it from restrict competition within
the internal market (Percival and et. al., 2013). For instant, there is an a prohibited agreement
which includes the price fixing, market sharing agreement and arrangement which controls the
limit and level of production and contract which has a supplementary issues on the parties which
do not have any connection with the contract. They still have the benefit from the exemptions
which provides general satisfaction which requires certain condition to be a self assessment on
the basis of fulfilling the exemptions. This agreements provides the contribution on improving
the distribution of goods and has a technical promotion or a progress. They allow the consumer
to share the fair at the beneficial price. This does not give any elimination to the competition
which the respect to the part of product in the questions.
TASK 4
4.1 Explain the different forms of intellectual property rights.
Intellectual property is one of the creation of any company or owner of that company by
innovating new ideas to run their business smoothly. In simple terms intellectual property rights
is all about creation of an asset for a company which act as a patent or a trademark of that
company (Sackman and et. al., 2016). There are various forms of intellectual property rights are
available one is the patent, anther is the copyright, third one is the trademarks, another one is the
design, database and last but not the least is trade secrets.
In aspect of “patent” which means it gives an authority to the patent holder to invent or
produce any particular product by using their patent name because they have the only right to use
that patent whereas “trademarks” is a design or symbol that differentiate products in the market
place and make their own individuality amongst their competitors because trademarks is also a
kind of sign of that particular brand or company (Scholes, 2015). In context of copyright which
shows that sharing of name or patent of particular company by taking permission with their
owner to sell their own product by using their patent. “Design” rights are those right through
which a company can registered their design for some years and no one can use their design

further which means it should not be repeated by any one in future whereas database is the term
which describe the collection and gathering of data in a proper and appropriate manner.
4.2 Principles relating to protection of inventions and legal rules preventing their infringement.
Major principles are available for the protection of patents rights because patent is one of
main asset of any company as the company product and goodwill is mainly based upon the
patent only or company product are introduce in the market by using the patent right (Smith,
Lawson and Painter, 2012). Here is the various principles of patent rights:-
If the company is having a patent right then they have to follow the time limit which was
given by law and order and consider all the term and condition.
After getting the patent a company comes under strict provisions made by law and order
which is very essential for every patent owner make them follow.
Some of the legal rules are made by government to get protected patent rights before
violation.
Patents are generally only enacted through civil law or the country governing party and
they gave the authority to the patent owner of taking a strict action against the culprit like charge
a compensation or anything but in legal terms only (Smith and Malloy, 2013).
Patent owner can claim for the violation.
Law and order have also authority to cancel the licence of culprit party running business
4.3 Principles relating to copyright protection and the legal rules preventing their infringement.
Copyright protection prevent a company work and control others from using it without
consulting from the owner because this protection is enacted by the internation law and order to
protect the owner of the copyright.
Various legal rules are enacted by the law and order which can prevent a company
infringement or from violation of copyright for example if the the copyright get violated then the
owner may be sue from other party in court or may be party have to pay for that offence which
resulted in losses of their profits or goodwill also as punishment was decided by the law and
order. Government are very serious about this copyright protection and amended lots of legal
rules to prevent copyright before getting violated in fact strict actions will be taken against the

culprit so before coping the design of any company just be aware about all the rules and
regulation authorised by legal authority ( Trevino and Nelson, 2010).
To protect the infringement of copyright its indispensable to create proper terms and
condition and make them follow strictly because rules of law are similar for everyone there is no
change in that and there is limitation of coping like if a company are willing to copy any design
or anything they have to rephrase that design and try to change it in own way just to avoid the
violation of legal rules. In case of Apple vs Microsoft, both the companies have issues regarding
copyrights in respect of invention of GUI.
4.4 Comparison between the protection of trademarks and business names giving examples
Trademarks and business names are different with each other in every aspect and both
have their own quality or way of representing the single business as business name is mainly
used to identify any company in the market place . Trademarks differentiate a company from
other competitors in the market because trademark shows a business uniqueness from others and
highlight all the major qualities for example Jaguar XF consist their uniqueness due to their
attractive brand name that is “JAGUAR” and off course different trademark like any slogan or a
statement of this company like “Don't dream it,Drive it” shows their product more qualitative
(Lawrence, 2013). A business name is regulated by Trade mark act, 1994. A business
organization by this name communicate and coordinate with third parties to contract. In fact
trademarks prevent the company from their competitors because of their attractive designs,
symbols or sometime its a tag-line also which make the company more special from others
Whereas business name is used only during establishment of a company to get registered with
that particular name and fulfil all the details with the company name so both trademarks and
business name is mandatory for a company because they are the only terms which can highlight
the quality of a business.
CONCLUSION
From this above report it has been concluded that there are elements of sales o0f goods
act which can be understood as duties or rights of seller and buyers along with their rights. In this
report various concepts of consumer credit and agency have been discussed. On the other hand

intellectual property is consists of patent , trade marks and copyrights. Business name is that
term under which business communicates and trade in the industry.
REFERENCES
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