Contract Law and Intellectual Property Rights

Summary of Intellectual property rights 2017[Online] Available Through: [Accessed on 2 May 2017]

Business Law

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Implied Terms Related To: Sale of Goods and Supply of Services.................................3
1.2 Statuary Provisions on The Transfer of Property and Possession:...................................4
1.3 Statutory provisions on buyer's and seller's remedies in sale of goods act......................6
1.4 Statutory Provisions and Product liability of faulty goods:..............................................7
TASK 2............................................................................................................................................8
2.1 The types of credit agreements that Ben as a customer could use to buy a car................8
2.2 The legal rules on termination of rights and default notices for Ben as a customer .......8
2.3 The general features of Agency and differentiate between the different types of agents.9
2.4 The rights and duties of an agent to assist Ben..............................................................10
TASK 3..........................................................................................................................................11
3.1 The Monopolies and Anti Competitive Practice Legislation in the UK........................11
3.2 The Role of Competition Commission in UK:...............................................................12
3.3 Dominant positions within EU:......................................................................................12
3.4 EU exemption for the potentially anti-competitive practices:........................................13
TASK 4..........................................................................................................................................13
4.1 Different intellectual property rights:.............................................................................13
4.2 The principles relating to the protection of inventions:..................................................14
4.3 The Principles relating to copyright protection and the infringement............................14
4.4 The Protection of trademarks.........................................................................................15
Conclusion.....................................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business Law is the combination of all the laws which help and provides assistance in
running the business and its activities. It includes all the state and federal laws and the
administrative regulations (Abdi and Aulakh, 2012). There are many laws which impacts the
activities of consumer and business, as per the case the chosen laws are: Sale of Goods Act 1979
was enacted by the parliament of the United Kingdom, the parliament also regulated the English
contract law and UK commercial law which were concerned for the goods that are sold and
bought. There have been many amendments in the law which was made by the parliament of
United Kingdom. The Supply of goods and Services Act 1982 was also enacted by the
parliament of United kingdom, it enables the traders in providing services as per the standards of
workmanship. If the date and prices are not set then the work must be completed in the
reasonable amount of time. Sale of Goods Act was replaced by the Consumer Rights Act 2015,
for consumer contracts from 1st October 2015. It has inherited all the qualities of sale of goods
act 1978 and supply of goods and services act 1982.
TASK 1
1.1 Implied Terms Related To: Sale of Goods and Supply of Services.
Implied terms are those words and conditions which are assumed by court to include
them in the contract (Appleman and Holmes, 2015). It helps court in reducing the lengthy nature
of the case by not expressly stating the terms. Basically, the implied terms are used by three
parties: Implied by a Statute, Implied by Court and Implied by Custom.
The Sale of Goods Act 1979 has provided many terms of contracts where exchange
between parties for all tangible goods backed by money (Bishara,. and Westermann‐Behaylo,
2012). The Sales of Goods act 1979 states about two parties which are Seller and Buyer. Seller is
a person who delivers goods and services as per the guidelines defined by law. Buyer is the
person to whom the goods are delivered. Both are in a contractual relationship and try to fulfil all
the duties. Best quality products are required to be provided by the seller to customer as to meet
the satisfaction level.
Ben is the buyer who bought a car from the car dealer. The car dealer described all about
the car that it has driven only 18,500 miles and it had only one owner. Also the condition of car
is good. Dealer asked Ben 150 pound as a token money to show his seriousness. Ben bought the

car and went on a long family trip. During the long journey he realised that the car engine is
overheating and it is not working properly. He also found out that the car had two owners
previously. When he went to return the car to dealer, he refused to accept it saying that clause 9
is signed by Ben at the time of purchasing.
Clause 9 States that the buyer is responsible to properly examine product and services
before buying. After purchase seller is not responsible for the product.
But as stated by Sales of Goods Act 1979, There is a implied condition which states that
the seller is responsible for delivering best quality of goods and services to buyer. If the seller do
not provide good quality product then the buyer can file a lawsuit against the seller, in the given
case, Ben received damaged car from dealer so Ben can file a case against the dealer. Section 15,
of sale of goods act 1979 states that the seller has to keep the quality of bulk product as per the
quality of the sample provided by him before the contract was formed. The sample forms the
laying foundation. The product should match with level of quality of sample.
1.2 Statuary Provisions on The Transfer of Property and Possession:
Ben is advised that he should check the product at the time of delivery as to match all the
features and issues. If he finds any issue in the car then he can tell the dealer about it. This is his
right to receive good quality of product. The possession of car is transferred to Ben and he is the
sole owner of car.
Possession is a term which is used for knowingly gaining control of a thing. There are
various provisions regarding transfer of property and possession.
 The first provision is that the goods should be sold as per the description. Same quality of
products should be delivered to the buyer as given in description.
 The state of product should be proper for delivery.
 When the seller gives the goods to the buyer that time they are said to be unconditionally
appropriated to the contract. This is done for proper transmission of the buyer.
 If the goods are in a undeliverable state then the seller has to to do something to make
them as described form. After making them deliverable the seller will be able to transfer
the ownership and possession.
Ben is advices to take certain provisions for transfer of property and possession (Bishara,
2011). Section 16 to 20 Stated about transfer of ownership.

 Section 16 stated that, if the goods are not ascertained then they cannot be transferred. So
if there will be any transfer of ownership, the goods has to be ascertained.
 Section 17 stated that there should be intention to purchase from the buyer, otherwise it
does not matter if the goods are ascertained or not.
 Section 18 stated that, there are five rules regarding the passing of property, if they are
not expressed by the parties then the property is not going to pass. The rules are: Rule 1,
The goods will be transferred when the goods are ascertained and the contract is
unconditional. Rule 2, if anything is done to the specific goods unless they are complete,
the goods will not be transferred. Rule 3, the goods are measured and checked before the
transfer of property. Rule 4, if there is need of approval, it has to be taken before the
transfer of ownership. Rule 5, if the goods are ascertained and conditional (Crane and
Matten, 2016), there ownership can be transferred. The rule five has been changed by the
sale of goods act modification, it has introduced the co ownership and ascertainment by
exhaustion.
 Section 19, states the right of disposal (Folsom and et. al. 2012). The right to dispose are
with the seller, if a buyer sells the goods, the seller can still retain their title.
 Section 20, stated the risk is transferred with the transfer of ownership.
Government has framed various types of laws related to transfer of property and
possession. The Sale of Goods Act 1979, Supply of Goods and Services Act 1982 and all other
protection from unfair terms in consumer contracts were compiled and Consumers Rights Act
2015 was formed. It was introduced as to simplify, strengthen and modernise the law. The
Consumers rights Act 2015 covers certain topics which include product quality, delivery
rights,supplying service, repairs and replacement, returning goods and digital content rights.
Consumer right act also have a Section 15 which states that the seller has to keep the bulk quality
same as the sample provided by him earlier.
1.3 Statutory provisions on buyer's and seller's remedies in sale of goods act.
There are many terms which imply into the contract for sale and supply of goods. If
goods do not comply with the implied terms then it will be considered as a breach of contract
against the seller. Consumer Rights Act 2015 has consolidates all the rights into one act and
applies to all the transactions. It has stated about the seller duties to be performed in accordance
to the implied terms. Duties of seller are:

 Ownership: Seller has right of ownership of goods and he can sell them to any other
party. In other words he have title of the goods.
 Goods should Correspond with description: Seller has to make sure that his goods
match the description of product as mentioned in the contract.
 Satisfactory quality of goods: It is the duty of the seller to keep the quality of goods at
par with standards.
 On time delivery: Seller has to deliver the products on time. It is mentioned in the
contract and if he fails to do so then it will be breach of contract.
 Completion of all terms mentioned in contract: Seller has to make sure that all the
mentioned condition are taken care of while producing and delivery of product.
There are different remedies for buyer and seller in laws if there is breach of contract from either
side:
Seller Remedy:
The car dealer can take action if the Ben is in the breach of contract.
 Seller can sue the buyer if he refuses to pay after receiving goods. The estimated loss are
measured and the buyer is held responsible for breach of contract. The market prices of
good are taken and compared with the contact price (Foss and Knudsen, 2013.). The price
charged for refusal of good by buyer is the price of product at the time of refusal.
 He can take legal action if the buyer refuses to accept goods. He can sue the buyer for
compensating the losses seller made.
Buyer's Remedy:
when seller does something wrong, there are remedies for the buyer. If the buyer finds
out that the seller has failed in providing goods and service as per the contract then he can use
the remedies and ask for compensation (Haselmann, Pistor and Vig, 2010). These remedies help
the buyer in getting compensation.
 Right to Reject: The buyer can reject the products if he finds them not
satisfactory or not as per the contract.
 Right of Compensation: The buyer can ask for compensation for the breach of
contract done by the seller.
 Right of Specific Performance: The seller can be asked to perform specific task
by the court to avoid the breach of contract.

1.4 Statutory Provisions and Product liability of faulty goods:
There are certain rules which states about the liability of faulty goods. A Faulty good or
defect good is:
Defective goods:
The product which not only has potential risk factor of personal injury nut can also cause
damage to the property is known as defective goods.
In the case of Ben's Car there are two liable parties: The manufacturer and seller of the vehicle.
If Ben wants to claim compensation for the damages, he has to prove: Productive is
defective, it has done losses to claimant, The defendant is responsible for the goods. Ben was
delivered a faulty product and the seller of the product also hid many important facts before
making the sell. There are certain provision regarding Ben case which can be followed.
 Liability in Contract: The buyer has to prove in front of court that, the seller provided
defective goods (Kitagawa, 2016). The court have resources to find out if the product is
defective or not and if it is then the seller has to compensate the buyer for the product and
losses it has caused.
 Liability in consumer protection Act 1987: The buyer of the goods have to prove
breach of contract from the seller side. Ben has to prove in the court that his car was
defective and the seller is responsible for his loss.
As happened in the case of Crowther v. Shannon Motor Co. Ltd.Seller was found to be in breach
of condition as the product did not match with the description provided by the buyer at the time
of purchase.
TASK 2
2.1 The types of credit agreements that Ben as a customer could use to buy a car.
This can be seen under the Credit Card Act,effective from 1970, which is amended by the
Truth Lending Generalisation Act,effective from 1982 (Latimer, 2012).This act gives the
provision to stop any abuses in shopper credit cost disclosures and the need of consistency in
such disclosures throughout the credit business by making the customers know the terms of
credit.
For better protection of consumer interest government devised several laws. Consumer
Credit Act, 1974 was made to standardise and protect consumers from any market condition

which could harm him. This act was amended by the parliament with the aim to modify as per
the need of time. Now it is known as Consumer Credit Act 2006. as described in the law, there
are many options available for Ben:
 Hire Purchase: This is a type of credit agreement which allows customer to purchase
property and also get possession of it. The amount is paid by the creditor which needs to
be paid by the customer in a given time. This also transfers the ownership to customer.
Both party have right to sell the property.
 Conditional Sale: In this type of agreement the buyer gets the right to transfer the
property from one to another party. It is not favourable for Ben.
 Bank Loan: Bank loans are given by the bank at a certain interest rate. The buyer do not
get the ownership till he pays the amount taken from bank.
 Credit Sale: The buyer do get the possession of the product but he do not have the
ownership of it.
Ben can use the hire purchase or the bank loan form of credit as to buy a new car. These facilities
are considered safe than the other form.
2.2 The legal rules on termination of rights and default notices for Ben as a customer
Here Ben can use various legal rules against the problems encountered due to the future
paying the debts as required in the contract. Ben has the right to withdraw from a credit
agreement within 14 days of signing,without giving any sort of reason (Nichols, 2012). Or it van
be done within the day of receiving a copy of executed agreement – or notification of the credit
card limit in case if it happens after 14 days period. If the customer makes use of the cooling-off
period they have to repay the credit,adding the interest for the credit that was drawn each day.
The word termination of rights of customers comes into existence when the customer defaults.
This can happen to Ben if he is a debtor:
 If Ben defaults and can not pay back the amount taken by him then the rights will be
terminated before date.
 The creditors can receive all the goods and services for which he paid on the behalf of
debtor.
 The debtor has to pay back the amount equal or the amount decided at the time of
contract to the creditor. They can mutually decide the minimum amount to paid.
Default Notice:

The third party can issue a notice to the buyer for the recovery of the amount which was
decided at the time of contract. As per Consumer Credit Agency 2006, third party can receive the
amount which was paid by them at the time of contract. Griffiths v, Peter conway Ltd, 1939 can
be referred as a case where Mrs Griffiths bought a coat and suffered dermatitis. In this case
seller is not liable if she is sensitive to it.
2.3 The general features of Agency and differentiate between the different types of agents.
Agency is based on a contractual relationship which is established between principal and
agents. For agency to form, it must have a written agreement which needs to be signed by all the
parties involved. The written document describes about all the rules and regulations which has to
be followed by the parties involved. The main parties involved are principal and an agent. Agent
is the person who act on the behalf of principal. A principle can make agent do what he himself
would have done.
Features of Agency:
 Legal Agreements: The agency should be created legally. Parties need to follow all the
rules and regulations while the contract of agency is being made.
 Parties: A contract of agency should feature two or more parties. These parties are known
as principal and agents.
 Written agreement: The contract of agency should be in written form. Verbal form of
contract is not considered valid.
Types of agents:
 Executive agents: These type of agents are those who directly contribute to the planning
process as defined by the contract. They take corrective action which helps the principals.
 Collaborative agents: These type of agents are only responsible for the acts which are
performed by them. They also aid in the major decision making process which helps all
the parties involved in the process.
 Communication agents: These agents are the one who manage communication between
the parties. They are the one who maintain the level of interaction.
 Special agents: These agents have special powers given to them in a deal. They have to
manage overall process and decision making process.
 Broker: These are the agents which act on the behalf of principal while carrying all the
liabilities with him.

2.4 The rights and duties of an agent to assist Ben
Agent is the person who acts on the behalf of principle while dealing with the client
(Sprague and Wells, 2010). There are rules and regulations which are imposed on them as to
improve there working. The laws has defined various rights and duties of the agents:
Rights of Agents:
 Right to Compensation: If the agents gets harmed by the negligence or act of principal
then he will get compensated in return.
 Right to Retain Money: If agent pays for advances and spends money for the betterment
of business from his own pocket then he have rights to retain that amount.
 Right to remuneration: Agent has the right to get remunerated for the performance he
gives in the organisation by the principle.
 Right of Lien: Agent have the right to retain all the accounts till he get his payment from
principal.
 Indemnity Right: He has the right to get indemnified for all the liabilities which falls on
him.
Duties of Agents:
 Obey the instructions: Agents has to obey and follow all the instructions given to him by
principal.
 Conducting Businesses: It should be the priority of the agents to conduct the business of a
principal. He needs to keep all the directions given to him by principal while providing
the services.
 Return to Undue Profit: Any undue profit earned by agent should be returned to the
principal.
 Account Transparency: Agent has to keep all his accounts updated. If principals ask him
to show his accounts then he need to share all the information to him.
 Use of Skills and Knowledge: Agent has to perform all his duties while applying all his
skills and abilities as to get the best results.
 Communication with Principal: Agent has to maintain proper communication with the
principal and share all the information with him.
 Payment of all sum: Any amount received by an agent should be given to principal.

 Separate Account: Agent has to maintain his separate account and he should not mix his
account with principal.
 Performance with honesty: Agents has to perform all the task with honesty while giving
his best performance.
TASK 3
3.1 The Monopolies and Anti Competitive Practice Legislation in the UK.
Monopoly occurs when a industry(company) have tight control over the production and
supply of the product being offered in market. The industry decides the prices and there is no
competition. The United Kingdom Competition law prohibits any Monopolistic stances in the
market and has been investigating the cases and issues which were reported by the consumer or
market agencies (Weber, 2010). The Competition law gets impacted by the European and the
British laws. There are two important statues in the united kingdom which are consistent at
national level, Competition law 1998 and Enterprise Act 2002. The competition law of United
kingdom has defined Monopoly in a situation when a Company have over 25 % of market share
and is going against all the consumer rights. It usually occurs when a company achieves high
success or because of the horizontal mergers of two big companies.
Anti-competitive practices are constantly being monitored by the authority in accordance
to the Competitive Act 1998 and Enterprise Act 2002. they are vigilant to check if any big firm is
not following the rules which might harm the consumer and the local business (Abdi and Aulakh,
2012). Activities such as- Free trading, dumping, gouging, repression of cartel, refusal to deal,
predatory pricing., etc. It also keep monitoring the acquisitions and merger, the joint ventures
between large companies to make sure that these activities do not harm the market.
3.2 The Role of Competition Commission in UK:
The main aim behind the constitution of competition law in 1998 was to regulate any
acquisitions, joint ventures, mergers and the monopolistic activities (Bishara, 2011). The
competition law 1998 was made to replace the monopolies and mergers commission. The
competition commission gets the cases referred from the office of fair trading. The competition
commission makes the recommendations to the office of fair trade. The office of fair trading is
liable to enforce the recommendations made by the competition commission. The competition

commission keeps tracks on all the mergers and acquisitions happening in the market. It looks
for the following factors while keeping tract of such activities:
 New entity market share
 Economies of Scale
 The firms Research and developmental activities
 New Entity market share
Competition commission has been made in a way that a common man can approach it
and report the anti competitive practices occurring in the market, such as- bid rigging, predatory
pricing, a market not doing well, unfair terms and condition in a contract, any issue related to
competition (DiMatteo, 2010). The enterprise act 2002 has boosted and provided competition
commission new powers to track the market and its activities. Competition law today is tightly
connected with the deregulation of state aids, subsidies and access of markets, etc. Competition
commission have the recommendation powers while the enterprise act have the enforcing powers
according to the enterprise act 2002.
3.3 Dominant positions within EU:
Dominant position is when any company acquires a position where it holds up-to 50% or
more market share and it is exploiting the consumers and its competitors in a way which is
against the laws and act enacted and established by the government and authorities. It is also
making the new entry in market impossible (Haselmann, Pistor and Vig, 2010). It is stated in
chapter II of ART-102 of UK act. As per the EU and UK competition commission using the
dominant position is unfair and illegal, any activity which exploits the market is considered
illegal and unfair.
The ways by which dominant power is used is:
 Predatory Pricing: When the dominant company set prices which are too low for the
product which is being sold by competition.
 Price discrimination: When the company charges different customer with different price.
 Bid Rigging: When the company rigs the bidding system of any supplier or government.
 Tying and Bundling agreement: An agreement which is made by the company and seller,
where seller will only supply to the dominant company.

3.4 EU exemption for the potentially anti-competitive practices:
Competition law which functions under the EU have defined the dominant power: Any
company which have acquired a position from where it can control the pricing, supplies, and
buying option (Kitagawa, 2016). A dominant company is prohibited from functioning in any
market which comes under EU. It might impact the trade between the members markets.
The application of EU Exemption:
 The benefit of any law and policy is shared by the dominant company between the
consumer without any discrimination.
 The distribution and production of different types of goods and services is for the
progress.
 If the dominant company is able to justify the abusive behaviour then there will be an
exemption.
TASK 4
4.1 Different intellectual property rights:
Intellectual property is treated under the United kingdom Intellectual property Act 2014.
it is stated that the law will deal in patent, design, copyrights, etc. The act defines different parts
of the intellectual property in different parts (Lumineau and Malhotra, 2011). The part(a) is for
Design, part(b) is for patents, part(c) and (d) are for miscellaneous. The law deals in the
registration and application process of different parts as mentioned above. The registered product
will be protected and have different type of infringements and their remedies.
Types of Intellectual Property rights: Automatic and manual
Automatic:
 Copyrights: anything that is in the written form(literary work), any art, photography or
films, TV, music, web content and sound recording.
 Design right: Any shape of objects.
Manual:
 Trademarks: A company has to apply for the trademarks and have to wait for at least 4
months, it includes product name, logos, jingles.

 Patents: Any invention or innovation comes under patents. A company has to wait for
around 5 years to get patent (Li and Freeman, 2015). Once the authorities check that the
invention or innovation has proved its worth it is given patent rights.
 Trade secret: It is owned by the company or the proprietary, it is a information which is
very essential for the business and its functioning. There are certain cases of it like: KFC
recipe secrets.
4.2 The principles relating to the protection of inventions:
The patents act have classified the requirements for the application of different patents,
on what basis the patent will be granted, how the authority functions, how much time it will take,
etc (Passera and Haapio, 2011). there are some amendments made in the original Patents Act
1977 on 1st October 2004; which states that the patentee have the exclusive rights given by the
government for exchanging the invention or the innovation. The main aim behind making the
patent law was to encourage people to do invention and register them with the government, as it
will help them in protecting their property(invention) from infringements and also provide
remedies for any infringements which might occur. This law encouraged the social economic
development by the use of scientific research which is done by the inventor. Patentee has to give
all the information about the invention to the authority for the patent.
4.3 The Principles relating to copyright protection and the infringement
The reason for which the rules were formed was to protect the interest of the person who
have innovated something. Everyone wants security when they are doing something and less risk
so as to have a safer side to make them this possible (Li and Freeman, 2015). To have the best
possible action toward the one who do malpractice who violate the rules.
Copyright gives the ownership and the full control over the data to the person who has innovated
it. Like – any right over a music album, book, novel etc.
Legal rules are some rules and regulations made by the law so as to void the illegal
practices which mat occur (Mann and Roberts, 2011). Like – we can theft the data and
information of others and misuse them
Infringement means using and violating the rules, regulations, law which may harm the society
and can cause violation of law.
So the basic principle of protecting copyright and preventing legal rules are-
 to protect the data theft

 to protect the misuse of data and information
 to maintain the disciplines environment in the country
 to violate the infringements
 appropriate action to be taken against the culprit
 gives the person right over the information who has innovated it
All the above are made to protect and maintain a healthy working and creative
environment so that one who innovate something feels free to work (Latimer, 2012). By this the
one who has the right can have the total access and right over information so as to take action
against the culprit.
4.4 The Protection of trademarks
TRADEMARK
 Trademark is right against the brand and logo of some company who works in goods and
services (Nichols, 2012). A trademark is used to protect the companies brand name and
its logo from being copied by others.
 The brand and logo are trademarked here.
 It gives you the authority over the logo and brand name.
 This is for a limited period of time say for 10 years.
Example – Microsoft logo and its its brand name.
BUSINESS NAME
 Business name is the name of the business by which it is registered legally.
 The name given to business by which it operates.
 Registering the name as a business.
 The company do business under this name. It needs to be registered.
 It gives a name to the business.
 It is for the infinity time from the starting and after the end of the business.
Example – Microsoft
Conclusion
The case studies the different laws which impacts the customer in the situation where the
customer gets affected by the purchase of defective product. It goes through different legal laws
and studies about what the person can do in the situation. It also considers the remedies which a

buyer have and also the seller is grated remedies in the case of buyer breach of contract. The
conclusion remains that the Ben has to understand the laws and go through the proper process to
get the compensation for the damages he had. The laws are made to facilitate the seller and the
customer to be able to use their rights in a proper way. The law regarding the business and their
market practices ensures that the companies follow proper rules and regulation.

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Intellectual Property 2017[Online] Available Through: <https://www.lawteacher.net/lecture-
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