Business Law & Legal Systems Analysis

This assignment delves into the complexities of business law and legal systems. Students are tasked with analyzing fundamental concepts such as contract law, intellectual property protection (including copyright), and the influence of various legal frameworks like common law. The analysis involves examining real-world case studies and comparing legal approaches across different jurisdictions (UK, EU, and US). This requires critical thinking, research skills, and an understanding of how legal principles impact business operations.

Business law
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Analysis and applicability of legal rules regarding implied terms in sales of goods and
supply of services.........................................................................................................................3
1.2 Statutory provisions on the transfer of property and possession...........................................4
1.3 Evaluation of statutory provisions regarding remedies provided to seller and buyer in the
sales of good contract..................................................................................................................4
1.4 Applicability of statutory provisions of product liability for faulty goods............................5
Task 2...............................................................................................................................................6
2.1 Differentiation between types of credit agreement that can be used by Claire for obtaining
new car.........................................................................................................................................6
2.2 Analysis of rules on termination rights and default notices for Claire..................................7
2.3 Evaluation of general features of agency and description of difference between the
different types of agent ...............................................................................................................8
2.4 Description of rights and duties of agent...............................................................................9
Task 3...............................................................................................................................................9
3.1 Description of monopolies and anti-competitive practice legislation in UK.........................9
3.2 Explanation of role of Competition Commission within the context of monopolies and
anti-competitive practices and the UK Office of Fair Trading..................................................10
3.3 Description of dominant position within the Common market of European Union............11
3.4 Evaluation of exemption provided by European Union to potentially anti-competitive
practices.....................................................................................................................................11
Task 4.............................................................................................................................................11
4.1 Identification of different forms of intellectual property.....................................................11
4.2 Principles regarding protection of inventions through patent rights and their infringement
in a given business scenario.......................................................................................................11
4.3 Description of principles regarding copyright protection and their infringement in a given
business scenario........................................................................................................................11
4.4 Compare and contrast the protection of trademarks and business names............................11
Conclusion ....................................................................................................................................11
References......................................................................................................................................13
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INTRODUCTION
Business entities operating in UK are controlled by legislative norms in order to assure
transparency and fairness in commercial environment. Organizations are required to operate in
accordance with described norms by UK legislation else they will be held obliged for the
payment of penalty charges (Elliot and Quinn, 2009). Present study is focused on evaluation of
various aspects of business law that can affect operational activities of commercial entities. For
this aspect, description will be provided regarding implied terms in sales of goods and supply of
services. Further agency law will be evaluated to advice Claire regarding her roles and
responsibilities. Report will also include description of provisions of competition legislation and
intellectual property rights. Described provisions will be supported by practical examples and
previous case precedents for better understanding of subject matter.
TASK 1
1.1 Analysis and applicability of legal rules regarding implied terms in sales of goods and supply
of services
Provisions of implied terms in sales of goods and supply of services in introduced to
protect interest of consumers in daily contracts. These terms are assumed to be part of the
consumers contract. In situation where seller fails to comply these terms then they will be
obliged to indemnify the occurred damages to customers. Description of implied terms is as
follows:
Section 12: Good title: Seller must have good title for the transfer of goods and services to the
customers. However, for this title ownership is not essential. This term is considered as condition
in all contracts. In accordance with the case of Rowland v Divall [1923] 2 KB 500 buyer can
terminate contract if seller do not have good title.
Section 13: Sales by description: Provisions of Section 13 of this Act impose duty on seller to
provide final goods or services in accordance with the description provided by them at the time
of sales contract.
Section 14: Quality: In accordance with the provisions of this section seller has duty to deliver
qualitative goods and services to the buyers (Akintoye, Renukappa and Lal, 2012). For this
aspect, delivered goods and services must be free from material defects. According to the case
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facts of Stevenson v Rogers [1999] 1 All ER 613, provided goods and services by seller must
satisfy the objective of purchase.
Section 15: Sales by Sample: Provision of this section is applied only in situation where sale
contract is formed by considering sample product instead of actual product. In this aspect, seller
has duty to assure bulk will be corresponding to the representative sample.
In the given case scenario, Miss Bianca and Departmental store is required to comply
above described implied terms for the formation of fair contract. However, in cited case TV set
was not working well after few days and management of departmental store is not accepting their
responsibility. This aspect show breach of implied terms described by Sales of Goods Act.
1.2 Statutory provisions on the transfer of property and possession
In accordance with the provisions of Sales of Goods Act, goods can be segregated into
category of specific and unascertained. Specific goods are those products which have been
specifically selected by customer at the time of purchase. On the other hand, unascertained goods
are the products which are selected on the basis of sample. In the given case situation, TV
selected by Adam in departmental store is unascertained good as it is selected by him by
considering sample shown by Miss Bianca.
In accordance with the provisions of Sales of Goods Act 1983, transfer of property and
possession is considered to be fair it is supported by five rules described in section 18. As per
these rules, in situation where goods are ascertained in the contract then seller is obliged to
deliver goods as per the provided description and sample. In addition to this, delivered goods
must be unconditionally appropriate to the contract. Transfer of property and possession is either
completed by the consent of buyer or by seller (Elliot and Quinn, 2009). This consent can be
provided in the expressed or implied manner. In the described case situation, exclusion clause
inserted by departmental store in written contract is not valid because it is contradiction with the
implied terms. Henceforth, it will not be considered as part of the contract.
1.3 Evaluation of statutory provisions regarding remedies provided to seller and buyer in the
sales of good contract
In order to indemnify the injury of buyer and seller, business law had described the rights
for both the parties. Benefit of these rights can be availed by parties in situation where other
party had not accomplished contractual terms in an appropriate manner.
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Rights of buyer: Claim of compensation for damages occurred: Buyer has legal right to make claim of
compensation for injury occurred due to non-satisfactory performance of the seller.
However, it will not make them entitled to repudiate entire contract. Demand of special performance: In situation where injury occurred to the buyer cannot
be compensated with the damages then in such case then entitled to demand special
performance from seller (Nystén-Haarala, Lee and Lehto, 2010).
 Claim for other losses: Buyer are also in position to make claim for losses occurred due
to inappropriate performance of the seller despite of the fact that such remedies are not
covered in their deed.
In the described case, Adam is in position to claim refund or replacement of the television
set from the departmental store. In addition to this, they can also claim for other additional losses
such as damages occurred due to explosion in television set.
Rights of seller Demand for consideration in the contract: Seller has right to demand consideration for
the provided good and services from the buyer. Furthermore, consideration must be
similar to initial described. Insertion of exclusion clause: Seller is in position to insert exclusion clause in the
contractual deed for the reduction of their obligation. However, such terms are required
be incorporated in an appropriate way (Slapper and Kelly, 2011). Along with this,
inserted terms must be supported by the legal provisions.
 Authority to retain or forfeit: According to the provisions of business law, seller has right
to retain the goods of customers for a justified reason (Adams, 2010). Further, they can
also forfeit the rights of customers if they are engaged in any kind of misconduct.
1.4 Applicability of statutory provisions of product liability for faulty goods
By considering the statutory provisions of product liability of faulty goods, consumers
are in position to make claim of damages in situation where seller had delivered non-satisfactory
goods. For successful of product liability customer is required to satisfy following provisions:
 Goods delivered by seller is defective
 Injury is occurred to the claimant due to defect in the product
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 Buyer has no contribution in the defect of good (Garriga, 2013)
On the basis of the described legal provisions evaluation of obligations of Miss Bianca is
enumerated as below:
Consumer law
In accordance with the provisions described in Consumer Protection Act, seller has duty
to provide goods of satisfactory quality to the buyer. However, Miss Bianca had provided faulty
television set to the Adam. Henceforth, she is obliged to pay damages for the compensation of
injury occurred to the customer.
Contract law
As per the English contract law, contracting parties are required to satisfy contractual
terms in an appropriable way. Furthermore, exclusion clause will be considered for relief only if
it is accordance with the legal provisions. In the cited case, neither Miss Bianca had satisfied
terms of the contract nor exclusion clause inserted by departmental store is valid. Thus, due to
breach of contractual terms Miss Bianca is liable for the payment of damages.
Negligence law
Provisions of negligence law impose obligation on individual to take standard care of
their actions for the prevention of possibility of risk of injuries of other related parties. By
considering this fact, Miss Bianca has duty to take care of their actions for reducing the
possibility of risk of injury to the customers but she failed to do so. As a consequence, she is held
liable to compensate the injury of Adam.
TASK 2
2.1 Differentiation between types of credit agreement that can be used by Claire for obtaining
new car
Credit agreements are governed by the provisions of Consumer Credit Act 1974.
According to the provisions of this Act, differentiation in credit agreements between parties is
essential for effective control and governance (Zoll, 2012). Description of different types of
credit agreement that can be used by Claire for obtaining new car is as follows: Debtor to creditor agreement: In this form of credit agreement, there is direct contract
between supplier and creditor. In D-C agreement, Clair can purchase car on loan directly
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from the company. This loan will be payable through EMI and car will be considered as
security of the loan. Example of this agreement are credit sales and hire purchase.
 Debtor-creditor-supplier (d-c-s) agreement- In this form of agreement, direct contract is
not made between supplier and debtor. In this type of contract, financial institution act as
a mediator between both the parties (Keenan, 2012). Claire has option to take loan from
financial institution in order to pay consideration to the car company. Further, she only
has obligation towards the financial institution. Example of such agreements are overdraft
and bank loan.
Claire is recommended to select debtor to creditor agreement for the purchase of car on
credit. It is because; car companies provide various benefits and discounts to the individual for
relief.
2.2 Analysis of rules on termination rights and default notices for Claire
Loan provider has authority to make use of termination rights in situation where debtor
fail to make repayment in regular time intervals. However, this rights is supported by various
duties and responsibilities. Initially, party availing termination right is required to inform debtor
in reasonable time period through default notice. Generally, default notice is required to be
served prior to the 14 days of termination. This aspect is supported by Section 87 and 88 of
Consumer Credit Act, 1974 (Partington, 2013).In addition to this, Section 77 of this Act, states
that Claire has authority to avail copy of credit agreement from the car company. Due to this
aspect, credit is required to serve default notice with proper financial statements showing due
amount.
Aspects to be covered by creditor in default notice
 Reason for termination
 Description of remedy for the preventing termination Compensatory amount to be paid by party if any
Recommendation to Claire
Car company has authority to terminate the credit agreement if Claire is not in position to
make payment of her dues (Ferran and Ho, 2014). In such situation, she had right to attain
default notice with the sufficient information. In this period, she can request car company for the
extension of loan period or can arrange funds for the repayment of dues. However, in situation
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where car company had not considered the request of Claire then they have right to retain the
provided car.
2.3 Evaluation of general features of agency and description of difference between the different
types of agent
General features of agency
Agency is relationship between two parties in which one party (agent) act on the behalf
of another person (principal). Furthermore, principle is responsible for all the actions of agent.
General features of agency are as follows:
 In agency, agent has obvious intention to work on the behalf of their principal (Ng,
2015). For this aspect, expressed or implied authority is given by principal by which
agent can avail authority for the same.
 Agency agreement is not mandatory be supported by the consideration. By considering
this aspect validity of agency will not be affected the presence or absence of
consideration between parties. Relationship in agency is formed on the basis of agreement. It can be either in oral or in
written manner.
Description of different types of agents and their work is as follows: Stock brokers: These individuals are agent of the public as they enter into transaction of
selling and purchasing of stock on their behalf. There main objective is to enhance
profitability of their principals. For this aspect, they charge commission of the each
transactions. Banks and financial institutions: Banking organizations act on the behalf of their
customers. For this aspect, they provide financial services to them such as providing loan
and accepting deposits (Talbot, 2014). For these services they charge interest or provide
return to the customers. Factors: Factor collect payment from the debtors on the behalf of their principals. They
save them from the potential loss of bad debts. For these services they charge
commission on the fixed percentage on the due amount.
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 Estate agent: These individual are appointed for the sale and purchase of the property on
the behalf of their principals. Estate agents act in accordance with the guidelines provided
by their clients. Commission is paid to the agents for the services provided by them.
 Other examples: Other examples of agents are directors and auctioneers as they enter into
commercial transactions for their principals with the third party.
2.4 Description of rights and duties of agent
Agency agreements provides rights and duties to the agents for the effective governance
of such relationship. As an estate agent, Claire will have following rights
 Initial fundamental right of Claire is to get paid for the services provided by her to their
principals.
 She is entitled to get reimbursed for the expenses incurred by her for the completion of
work given by her principal.
 She has right to retain documents, money or possession of property of principal for the
justified reason (Clarkson, 2010).
 In emergency situations, she can operate beyond the provided rights by her principal.
In addition to the availability of these rights, Claire is also required to comply following
duties in her agency agreement:
 She is required to operate in a fair manner with diligent skills and care.
 Claire had to arrange meetings for her clients with the individuals interested in dealing
with them.
 Claire has also obligation to act in accordance with the provided guidelines by their
principal
 Claire must not misuse the information provided by the client in order to earn unjust
benefit. In addition to this, she cannot make use of name of principals without their
consent.
TASK 3
3.1 Description of monopolies and anti-competitive practice legislation in UK
Monopoly can be described as a situation in marketplace where an individual entity
captures majority of market share due to which they are in position to dominate entire industry.
By considering market norms of UK, an organization is said to be in monopoly position if there
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market share is more than equal to 25%. This aspect is not favourable for competing firms and
public (Dickinson, 2014). It is because; organization having monopoly position is capable to sell
products and services at unfair prices it is because customer do not have substitute of their
products. Along with this, they do not have requirement to make improvement in their product
and services because this will not provide them additional benefit. For the prevention of such
situation following legislation are developed by the parliament of UK: Monopolies & Restrictive Practices (inquiry & Control) Act 1948- This Act was
developed by UK parliament for imposing restriction of commercial dealings of
expansion of business that can result in formation of situation of monopoly. Monopolies & Mergers Act 1965- By the applicability of provisions of this Act,
regulatory authorities were in position to block the commercial deal of acquisitions and
mergers. Although this law does not restrict entire deals, by considering the fact of fair
objectives of parties.
 Enterprise Act 2002- Provision of this Act describes regulatory guidelines regarding
insolvency, merger and bankruptcy (Gale, 2007). Main objective of this Act is to promote
fair competition in UK market through following norms:
◦ Evaluation of merger without getting affected by political interest
◦ Prevention of creation of huge cartels.
 Competition Act 1998- Objective of this Act is to promote competition in market by
restricting unfair practices in the industry. For this aspect, regular guidelines are provided
by this Act to commercial entities.
3.2 Explanation of role of Competition Commission within the context of monopolies and anti-
competitive practices and the UK Office of Fair Trading
Competition Commission is regulatory authority developed by UK parliament for the
governance of anti-competitive practices. They have responsibility to assure that there are no
factors regarding unfair trading in the market. For effective governance and control, continuous
amendments are made in regulatory provisions by this body (Morgan, 2011). In accordance with
the recent amendments, previous norms of competition law was replaced by the norms described
by Financial Conduct Authority (FCA) and Competition and Market Authority (CMA).
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Objective of these amendments was to develop control on cross-border commercial transactions
without having contradiction with the international legislation.
3.3 Description of dominant position within the Common market of European Union
Dominant position
Dominant position in the Common market of EU is supported by the provisions of
monopoly. Such position provides controlling authority to business entities by which there are
able to operate with the unfair trading policies (Abuse of a dominant position, 2014). Business
organizations are said to be in dominant position if they had captured excessive market share.
Abuse of dominant position and its enforceability
In accordance with the provisions described under Chapter II/ Article 101 and 102
prohibition of Competition Act, abuse of dominant position is legal and ethical misconduct. For
the prevention of such practices competition law in EU and UK impose restriction of aspects of
unfair dealings.
3.4 Evaluation of exemption provided by European Union to potentially anti-competitive
practices
Entire anti-competitive practices are not restricted in UK by the provisions described by
European Union. It is because, in situation where agreement fall under prohibitions described
under the chapter 1 or article 101 than such deals are entitled to be excluded from the rules of
competition. In addition to this, a contractual agreement for anti-competitive law may be
individually exempted on the basis of aspect that competition are outweighed by its beneficial
effects. This fact is described in the provisions of Chapter 1 of Article 10 (Partington, 2013). In
accordance with this provision, two commercial entities are entitled to operate together only if
they are expected to reduce number of products that are likely to be produced by preventing
individual company from working on an individual project. However, this aspect must be in
interest of customers.
TASK 4
4.1 Identification of different forms of intellectual property
From the act of infringement, owner can get the protection easily. For the same, there are various
acts developed for intellectual property. In this concern, it is being regarded that there are
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different forms of intellectual property by which government can easily restrict an unauthorized
creativity individual. Some of the most common forms of intellectual property are as follows:
Trademarks: It can be define as a symbol or a name of a company which is famous for their
identity. It can be regarded as a private identity of any organization which cannot be used by
other firms. No other firms will be able to use similar or resembling mark for their business. At
the time of registration, both image and words need to be taken into consideration.
Patents: It can be define as another type of intellectual property which is being provided for
maximum period of 20 years (Plamer, 2014). In order to provide protection to new creations,
these patents can be provided by the British Parliament. For example: Any individual can apply
for patent of car. Copyright: On the basis of creative thinking individuals are liable to develop
their own copyright. Protection can be provided through this form of intellectual property and
there are following art works which are being covered are as follows:
1. Movies
2. Newspaper and Magazines articles
3. Photos
4. Sound recordings
For example: Articles printed in TOI is protected by law of copyrights.
4.2 Principles regarding protection of inventions through patent rights and their infringement in a
given business scenario
Patent
Patent is a form of intellectual property provided by UK government to impose restriction
on activities such as selling, reproduction and copy. Duration of protection is generally 20 years.
Copyright, Designs and Patents Act 1988
Protection by governed by the provision of Copyright, Designs and Patents Act 198. It
provides protection to dramatic, music or invention.
Patent can be registered if following conditions are satisfied:
 It should be eligible for commercial application
 Invention should not be disclosed to the another party
 Renewal is required to be done for expiry of term
 Process of application of patent is cost and time consuming
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Protection can also be applied for computer software if it is valuable and innovative (Rosen and
Alpert, 2014).
Impact of infringement
Infringement of property protected by patent is considered as criminal offence for which
individual is required to pay severe penalty charges.
Remedies of infringement
For the act of infringement individual is entitled to claim for amount of loss occurred due
to act of infringement. Furthermore, they can also demand special damages for potential losses.
4.3 Description of principles regarding copyright protection and their infringement in a given
business scenario
Copyright
Any individual identity or a business entity cannot be using any other type of copyright for any
similar product or business. Protection through copyright is being provided for any creative and
innovative work such as any type of artistic work as well as dramatic and musical work, film
broadcast etc (UK, EU & US Copyright Law, 2014). The time period of its validity is 70 years.
Requirements for registering a copyright according to copyright design and patent act 1988
Any person or a business can apply for the copyright at the time of creating any original work.
Impact of infringement
It is highly required that individual is not entitled to modify the artistic work without permission
of investor. In case of using this it is having a vital impact on the global economy.
Remedies of infringement
1. Right to seize
2. An injunction for prohibiting future infringement
3. Damages for the loss occurred due to the infringement
4. An injunction for prohibiting future infringement
5. Amount of profit made by the infringer
4.4 Compare and contrast the protection of trademarks and business names
There is a huge difference between protection of trademarks as well as business names such as:
Trademarks are regarded as a symbol which clearly distinguishes between two similar
products within any business (Rush and Ottley, 2006). This differentiation is the basic identity of
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any organization which helps them in becoming popular. An appropriate identity of an entity is
being provided by company at the time of offering any product and service to their intended
audience. It is the best and most effective way through which they can enhance their target
market and profit margin as well.
However, both the business names and trademarks are used for the protection of business
from breach by other parties (Jones, 2013). With the help of this, they can create their separate
identity in the market and enhance their competitive advantage. Moreover, there are some of the
most common differences between both the terms are:
Business name is used for the well-known identity of business as whole while trademark
is used for the identification of particular product or service in the market place. Under the use of
trademark there are certain legal forms which can be used by company against any individual. It
is being applied for undertaking similar or confusing mark for that particular type of product. On
the other hand, under business act both Company Act as well as Intellectual property act is
provided to company for taking action against Infringement.
CONCLUSION
In accordance with the present study, it can be concluded that business entities are
required to consider implied terms while dealing with the customers. Further, they are required to
operate in fair and justifiable manner without affecting interest of public. Commercial entities
cannot misuse their market position for the prevention of competition. For this aspect, they are
required to comply monopolies and anti-competitive practice legislation in UK. In order to
provide protection to the intellectual property of individual and business entities from
infringement intellectual law is developed. Provisions of this law imposes restriction on act of
infringement that can cause injury to the inventor. Furthermore, provisions for remedy are
introduced to compensate the injury of innocent party.
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