Business Law Report: Legal Rules on Sales, Credit, and Agency Issues

This report provides an in-depth analysis of various aspects of business law, focusing on the legal rules surrounding the sales of goods, consumer credit agreements, and agency relationships. It begins by advising on the legal rules that govern the sale of products, emphasizing the Sales of Goods Act 1979, breach of contract, and implied terms. The report then examines the transfer of property, remedies for both buyers and sellers in sales contracts, and product liability. Furthermore, it explores different types of consumer credit agreements, the rights to terminate such agreements, and default notice procedures. The report also details the general features of agency law, the different types of agents, and the rights and duties of an agent. Finally, it touches on monopolies, anti-competitive practices, the role of the Competition Commission, and the protection of intellectual property rights, including patents, copyrights, and trademarks. The report aims to provide a comprehensive understanding of these legal concepts within a business context.

Business Law
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Advising Ben on legal rules...................................................................................................3
1.2 Advising Ben with respect to provision on transfer of property ...........................................4
TASK 2............................................................................................................................................5
2.2 Types of credit agreements ..................................................................................................5
2.2 The legal rules on termination rights and default notices for Ben ........................................6
2.3 The general features of Agency and differences between the various types of agents..........7
2.3 rights and duties of an agent to assist Ben.............................................................................7
TASK 3............................................................................................................................................8
3.1 the monopolies and anti-competitive practice legislation.....................................................8
P3.2 The role of the Competition Commission .........................................................................8
3.3 dominant positions within the EU common market .............................................................9
3.4 Instances under EU Law........................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Forms of Intellectual Property Rights..................................................................................10
4.2 Principles relating to protection of inventions.....................................................................10
4.3 Principles for protection of copyrights................................................................................11
4.4 Protection of business names and trademarks:....................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13
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INTRODUCTION
There is a trend of purchasing new item or product but while buying or selling goods one
must follow the act as not accept without proper documenting. As sales of act tells everything
related to buyer's and seller's responsibility. Under this report, Ban's buy new car but after some
time it got damaged but he did not know how because while buying car was in proper
satisfactory condition. In this report,how act of sales good, breach of warranty, product liability
are help in choosing the right decision . This report also present different types of credit
agreement and termination rights and default notice in case if a person face problem in future
paying debts. This report also shows different types of agency and rights of agent who assist or
help to get the problem solve. This entire report help to understand the legal rules relating to
sales of goods, consumer credit and agency and law based on it.
TASK 1
1.1 Advising Ben on legal rules
Legal rules which should be follow while sale of the product and supply of service are, as
sale of goods follow the act 1979 which deals with quality of the car should be satisfactory and
when Ben purchase it is actually in good condition. Purpose to buy the product should be clear as
he purchase it for particular motive. Then comes delivery time of the product is perfect, there is
no delay in the work (Brotton, 2018). In the case, party is mistaken to follow the rules given in
the contract then it is the right of buyer to take an immediate action when found breach of
contract. The implied term in contract of supply are extremely diverse. It may be implied by
trade of prior dealing between both the parties, same in the case of Ben while installing any
plant, 40 percent should be paid at the time of instalment and remaining payment will be done
after installing complete plant and there should be some amount will be take by the customers
which return after completing guarantee period. On contract there should no any kind of unfair
terms which have no need to mention . When Ben purchase the car, he checks the quality, system
but not found any mistake but while driving he suffer from many problems. There should not be
any boundation while selling the product or item and when Ben purchase car he follow all the
instruction and keep all the safety measure in his mind to keep the car for long term.
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1.2 Advising Ben with respect to provision on transfer of property
As per the implied term, the property in the goods and service are transferred from the
seller to the buyer when it have the rights over the goods. Transfer of property and possession is
done due to following reason – ownership, risk follow ownership, action against third parties and
suit for price but in the case of Ben, transfer cannot be done because transfer of goods is in the
contract of sale, but Ben's will not use this act because under this act, if the property or car find
ascertained then only transfer can be done but when Ben purchase it from the showroom , car
was proper working condition. Next contract of pass property should be done when a sale of any
ascertain item is done then buyer must contract in any circumstances they must transfer it if
found any damaged. Transfer of goods act is applied at the moment when seller sale his product
to the buyer similarly ownership also passes to buyers. Next, when the property is found in
damaged condition and all the risk bear by the person wo has the ownership whether they are
buyer or seller (Bridge, 2017). When the property cause any harm by third party then only the
owner has take any action against them. If the seller can make appeal to the buyer for price of the
product and if agreed then god will became the owner of the product. In case of insolvency then
the product is assigned to the official receiver if the property is actually relate to the person who
now proved to be insolvent. The main aim of transfer the property is detention of the goods or
control of goods.
1.3 Remedies with respect to sale of goods contract
Statutory provisions on seller's remedies in sale of goods contracts are :
suit for price : while buying a property, seller must recover the payment according to contract or
partly at the time of delivery in the form of cash and partly when work is completed, if either
payment is not given then seller has right to sue the buyer.
Damage for non – acceptance : under section 57, Sales of Good Act when buyer refusing to
accept the goods and ready to pay for it, then seller may appeal the buyer form non – accepting
the property. If breach of contract occurs between them and the party who damage the property
is ready to pay then it means tat both parties are ready to enter in the contract.
Provisions which are made for the buyer's remedy in sale of goods contract are :
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Damage for non- delivery: when seller deny to deliver the property then it the right to appeal
against seller for non delivery. If any damage occur, calculate the difference between its selling
price and market price and he suffers the loss .
Remedy for breach of warrenty : when there is breach of warranty in any part, the buyer can
reject the goods and can sue the seller for this and can extend or less the price .
Special performance: in case of breach of contract, court may be reject the contract if the
application is received the person against another in some special performance.
1.4 Product Laibility legal rules and statutory provisions for faulty goods
According to product liabilty rules, the rules are concerning who is the responsible person
for defective products and whether it is different from normal injury law or not and this law
sometimes help an injured person to recover some damages. It means that a seller is laible for
place an order of defective piece into the hands of customer. Under product liability rules, Bens
car is not be compensate because it is possible only in the case of damaged done by the
manufacturer, assembling manufacture who join the parts of the car and seller retailer who sell
the product. That is why car is not replaceable as the damaged is done by him only and there is
no fault of seller (Fairgrieve, and Goldberg, 2017). If the accident is done by the defective car
and family member is injured during the accident then he can claim to the seller with some
important points like lack of care while manufacturing or sale of the car, seller did not fulfill
breach of warranty regarding performance of the car, they give false information during
presenting and they did not tell about the safety measure of car during driving, when product is
in defective condition they how the seller can sale it as it is strict liability of seller to check
whether the product is in good condition or not.
TASK 2
2.2 Types of credit agreements
There are several types of credit agreements which are available for Ben as a consumer
who can use to buy a car which he chose. These types are given in the act of the Consumer
Credit which was introduced in the year 1974. These are discussed below:
Credit on the basis of restricted usage
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The type of category which is provided in the agreement which is included in this act
depicts that there are certain limits provided to the debtor by the lender in the credit and he can
used it in any way he wants.
Credit on the basis of unrestricted usage
In this category the credit which is provided to the debtor has a nature of no restriction
and this agreement comes under the section of 11(1) of this particular act.
Agreement between the supply of debtor and creditor
This agreement is made under the section number 12 of consumer credit act which is
made by the lender considering some arrangements which already exist between him and any
supplier (Bridge, 2017).
There is also a mutual agreements between the debtor and creditor which comes under
the section number 13 of consumer credit agreements. Which was introduced in 1974 says that
any agreement which is not formed under some pre existing situations between creditor and
supplier , only debtor is acknowledged about the amount of credit which can be used for
financing the particular transaction between lender and the supplier.
2.2 The legal rules on termination rights and default notices for Ben
Ben has the complete right to terminate the agreement of credit between him an the
debtor but the only condition is that he should be equally responsible for providing him prior
information regarding his decision by sending him notice which includes his decision and those
associated reason which is provided in the written format. These rights of the debtor is defined
under Consumer Protection act of 1974 which depicts that consumer has the full right from
terminating his credit agreement with the lender any time before signing any agreements and also
up to 14 days of signing this contract. In case of payment of dues by Ben to his creditor, the
lender will inform him via notice which must be arrears notice and along with it a sheet of
Financial Conduct Authority. This procedure is not required when a Green deal plan is
conducted. He should also provide a default notice to Ben which includes all necessary
information and FCA sheets which he can get from the official website of Financial Conduct
authority. This particular default notice will provide appropriate information and guide for the
things which he had to follow for termination and consequences related to the non fulfilment of
the requirement regarding this contract. Debtor can also amend the notice if he desires to do so
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for some reasons (McKendrick, 2014). If he provides wrong information to Ben then he is able to
sue him on this basis.
2.3 The general features of Agency and differences between the various types of agents
There are many features of the agency which are discussed below:
Agency has an agent which is the person who tends to work on the behalf of other who
is known as principal. It can be created in two ways one them is by agreements which means
that various contracts are being signed under the presence of three concepts which are some
terms which are to be compulsorily in a written format, certain consideration and capacity for
contracting; other way through which it can be formed is the operations of law which is
dependent on two circumstances which are apparent agency and implied.
Agent is a person who performs all the human activities . There are certain types of
agents which are discussed below:
General Agent
He has lots of responsibilities and authorities and performs an immense range of
transaction on the behalf of agency
Social Agent
He has powers which are limited as some specific work is only assigned to him (Dari-
Mattiacci, Guerriero and Huang, 2016).
Subagent
He is the person who works under the particular agents who may or may not authorised
by the principals.
2.3 rights and duties of an agent to assist Ben
Duties of an agent are:
 He has assigned the duty of being obedient which states that he should follow every rule
and instructions legally which are provided by principal.
 He should have a caring attitude and fully skilled to accomplish the task given.
 He should be loyal to his principal and he should not bring his interest and compromise the
interest of third party .
 The property which is given to him should be completely repaired before showing it to any
other customer; he should be able to manage it properly.
 The rights of the agents are discussed below
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 The right of getting remuneration is must for the agent. He has the complete right of getting
remuneration in the form of salaries or wages preferred by him or any related commission as
an independent professional (Twigg-Flesner and Howells,2017).
 He has the right of being lien which means he can hold the goods which are provided by
principal in the case of non fulfilment of his salary or any other liabilities or expenses.
 He can get reimbursement for any loss which he has beard for the agency's work
TASK 3
3.1 the monopolies and anti-competitive practice legislation
There are various acts which are associated with the monopolies and anti competitive
practice legislation which are as follows:
The Competition Act 1998
This act regulates and makes sure that no firm is adopting negative strategies for
monopolising the market and there are also various restrictions which are imposed by this act
which is no formation of any cartel, not abusing the position which is dominant that has a hold
on local or national level.
The Enterprise Act 2002
This act keeps the check on the issues and factors which are associated with mergers and
makes sure that no pressure or influenced has been created that has resulted for merger. The
cartels are declared as a criminal offence and the rules which are made are more tougher s
compared to European Union (Brotton, 2018).
Enterprise and Regulatory Act 2013
This act includes the establishing the Authority for Competition and Marketing
Intelligence which provides protection against the wrong practices used by the firm in
competing with others.
P3.2 The role of the Competition Commission
The main reason for the existence of the Office of Fair trading in UK is for checking
various kinds of trading which are unfair and also uncompetitive. It has some major roles which
are regulating the provision of the credits for consumer, investigating those practices which are
restrictive , promoting the structure of market and imposing fines on the culprits who are not
following the regulations (OGLINDĂ and Olariu, 2018). Whereas the competitor commission
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has a role where it acts for reducing competitions and after that investigating for the commission
which provides recommendations such as merger can go ahead and it is not prohibited and
provides suggestions for modifications. It provides lessening of competitions in the market and
helps to prevent the substantial loss occurs to completion due to merger. These effects can be
unilateral, coordinated and Vertical. In which unilateral effect leads to rise in prices for earning
profit, and in coordinated many companies together decides to hike the price (Sale of Goods
contracts.2018).
3.3 dominant positions within the EU common market
It can be defined as any particular abuse which is generally formed by an individual or
more number of undertaking of a certain position in a market which is considered as common or
an already definite part which can get prohibited as it can be considered incompatible with all
the common types of markets which can lead some serious impacts on the conduction of trade
among the members of EU. For an example the union has lead to impose fines on the company
which is known as AKZO which is regarded as the chemical branch of Multinational Group of
Dutch which has exploited the position which is considered to be dominant in the certain
chemical market by potentially removing all the small competitors.
3.4 Instances under EU Law
European union law has introduced the anti-competitive practices. These practices are
done to reduce competition in the market. This can be done in the way of dumping, fixing
prices,refusal of deals, etc. The European Union has introduced some anti-competitive practices.
They are that to stop the Cartels so that the monopolist companies does not manipulate society
and the customers. Cartels are one of the most common form of practices to avoid the
competitors in the market it is even harder to find because of it secretive nature strict compliance
is there to avoid the forming of cartels and there will be imposed of heavy fine on these cartels
by the commission. Merger and amalgamation are been controlled and govern by the law so that
the powers are been stopped from getting concentrate into small number of hands, which are
been misused later. Restrictions to the providing of aids to the company which are registered
under the treaty or any law. Agreements relating to share of markets, distribution and fixation of
price are void and should not be done, but if there is any agreements in relation to the research
and development projects can be guaranteed as these are generally costlier and needs
participation. Further to this the dominance on the market of single organisation/firm is been
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prohibited as it may result in losing the respective market share by the other companies to the
holder. It is important to follow these rules to all the company who are registered under the EU
law.
TASK 4
4.1 Forms of Intellectual Property Rights
Intellectual property are termed as those properties which is been arrived or taken out of
the use of human intellects and results into some innovations supported by humans. There is
need to protect these Intellectual Property for being getting copied or infringement. This leads to
development of IPR's (Intellectual Property Rights):(Hu, and Png, 2013.) Patents: It is been issued to protect certain inventions from being getting infringe by
others. This give the right to owner to sell/trade off, or to stop it use, copy or selling off
by others. Copyrights:This is been given against the protection of work done by writers, authors or
the artist in there fields. This has longer life expectancy than other protection agreements. Trademarks: These are issued to the companies to get there brands protected from being
copied or misused by there competitors. They protect the brand value of the company and
increases the customers brand loyalty. Design: These are generally done to protect the shape or the packaging design of any
product from it competitors.
 Trade secrets: They are done to protect some special flavours, recipes or the process of
the company/business from there competitors. This maintains the authenticity and
originality of the companies products.
4.2 Principles relating to protection of inventions Non-obvious: The invention should results in a non-obvious factor, which means it is not
been done earlier. Example, a person has made up chair with four legs but another person
has added a seat and foam to it this results in a non-obvious factor. Usefulness: This should bare the quality of usefulness, the society should be benefited
from such inventions. Novelty: It must be new, it should not been discovered earlier by somebody else,
moreover the patent filer should not have been gone for this process earlier.
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 Trade Off: Holder of the inventions has the right to sell off his inventions to any
particular firm/government/person or he can issue a license to use his/her inventions.
(Acemoglu, and Akcigit, 2012)
4.3 Principles for protection of copyrights Relation to public domain:The work protected by the copyright act gets the expiration
date, then that work relates to public domain. Longer life of act: The copyright act as longer life expectancy that it includes the life of
the author and seventy years from it death. This means that person can claim it work
registered and no one can use it without his/her permission No registration formalities: The work gets automatically registered after it is been
accomplished by the following artist, author or any video maker. It not requires any
notice to be issued in relation to it work. Wider scope: The copyright acts cover not just the content written by the author but it
includes the media work, electronics media and the video makers, etc. thus including the
wider scope of work under the act
 Permission is required: To copy certain titles, headings and content the other person has
to asked for the permission, if there is no exception given to that person.
The Copyright Design and Patent Act, 1988 is the current copyright of UK. This act
provides the makers of video, music, dramatics, artistic and literary to protect there work from
being getting infringe by any third party. It provides control to the owner in the way there
materials should be used by any other person. If person found guilty may be punished in
accordance to this act.
4.4 Protection of business names and trademarks:
Unregistered business names is a threat to a company, because business names bring the
prosperity to your business and identification. Trademarks assign to business are the remedial to
flourishing of business, they give the competitive value to the business . As to build up it's image
in the market and to make it product known to the customers, the company make investments in
the building up of the name for it product which is a business name, they invest a lot for it.
Example;the trademark used by the Mc Donalds which brings the value to it sales and revnueto
the organisation, this increases there customer faith in them and bring brand loyalty, it assures
the quality service of Mc Donalds when it serves under it trademark. Further this trademark give
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s the company the advantage of it is being stopping it further misused by any other
company/person/organisation, and if any such misconduct happens then the company can claim
for it compensation.(Cimoli, et. al, 2014)
CONCLUSION
It has been concluded that there are certain rules and regulation while the conduction of
sales of particular goods or services in order to maintain the ethical practice of the scenario and
also protect the rights of the customers which are very important to safeguard them from various
malpractices which are adopted by producer in order to make it sales.
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REFRENCES
Books and Journals
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