Business Law Report: A Comprehensive Analysis of Business Regulations

This report provides a comprehensive analysis of business law, focusing on the Sale of Goods Act 1979 and Consumer Rights Act 2015, addressing legal regulations associated with product and service transactions, statutory provisions regarding the transfer of possession, and remedies for buyers and sellers. It examines the legal regulations and liabilities of selling faulty products, including case studies and relevant legal provisions. The report further delves into different types of credit agreements, legal rules on termination of rights, and default notices. Additionally, it covers the general features of agency, rights and duties of an agent, monopolies, anti-competitive practices, and intellectual property rights, including patents, copyrights, trademarks, and business names. The report analyzes a case where a buyer purchases a faulty car, providing insights into the legal implications of the sale of goods and consumer rights.

Business Law
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: Legal laws that are associated with transaction of product and service...............................1
1.2: Statutory Provision regarding the transfer of possession.....................................................2
1.3 Remedies provided to buyers and sellers according to various statutes...............................3
1.4 Legal regulations and liability of selling a faulty product....................................................3
TASK 2............................................................................................................................................4
2.1 Types of credit agreements...................................................................................................4
2.2 legal rules on termination of rights and default notices........................................................4
2.3 General features of agency and difference between various types of agents........................5
2.4 Rights and duties of an agent................................................................................................6
TASK 3............................................................................................................................................6
3.1 Monopolies and anti-competitive practice legislation in United Kingdom..........................6
3.2 Role of Competition commission with in the context of monopolies and anti-competitive
practices.......................................................................................................................................6
3.3 Define dominant positions within EU common...................................................................7
3.4 Application of EU exemption...............................................................................................7
TASK 4............................................................................................................................................7
4.1 Different types of intellectual properties...............................................................................7
4.2Principles related with protection of inventions through patent rights..................................8
4.3 Principles related to protection of copyrights and rules to prevent their infringement.........8
4.4 Difference between protection of trademarks and business names.......................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business laws are universal method of performing activities related to trade and
commerce. Laws provides a guideline to the companies for performing business in the market. It
is a subsidiary part of civil laws. Every organisation in the business sector has to comply with
these laws. Generally, it is comprise of Laws related to Contract, Employment, Sale of Goods,
Consumer, Companies law etc. Every statutes has its own significance and regulates the different
sections of business. These laws are originated from historical period. There were many ways in
which trade was being carried such as barter system. It has its own characteristics but certainly,
with time the system of trade changes and evolved with new methods. With these revolutions the
laws were also changed accordingly and present statutes are the result of it. In the given case Ben
wants to buy a new car as the old one has stopped functioning. He decided to buy a new model
of Passat 1.8 £ 10000 only. A seller sold him that car, initially it was functioning appropriately
but when he was driving it up hill the car stopped and got freeze. After investigating it was
revealed that the car was driven as taxi and the real owner of the car was the taxi driver. This
report is about a complete analysis on the Sale of Goods and Consumers rights. Also it provides
various solution to the mentioned problem with proper cases and references.
TASK 1
1.1: Legal laws that are associated with transaction of product and service
Business is incomplete without the Sale of Goods. There are many ways in which sale of
goods are carried out. Moreover, the practice of delivery is regulated by some of the statutes that
are enforced by the state such as, Sale of Goods Act 1979 and Consumer Rights Act 2015. The
purpose of these statutes is to maintain a proper way to regulate the delivery of products. As the
demands of consumers has increased the area of customer service has been taken seriously by the
governing bodies and business organisation. In order to provide a satisfactory service to the
customer these laws are obligation over the organisations. (Alix Adams)
According to the section 14 (2) of the Sale of Goods Act there is an implied term which
says that a product should be of satisfactory nature. Which means that the good purchased should
be of same quality while it is delivered and shall achieve a basic criteria of satisfaction. It is the
responsibility of the seller to deliver it with due care an delinquency. But, there is an implied
duty of the consumer to check the goods before purchasing it and if it has been quoted that goods
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are of undesirable quality then consumer shall be liable for any loss incurred to him, as per
section 9(4) of the Act. Moreover if damage to the product is caused due to negligence of the
customer then he shall be responsible for such act and also he shall be not entitle to attain
immunities as per section 13 (1) of the Unfair Contract Terms Act 1997.
According to the given case Ben has purchased a second hand car. The condition of it
was well until he suffers the incompetency of the vehicle while driving it up hill. Later he
investigated the actual reason of such malfunctioning. It was discovered that the car was driven
by as a taxi whose was the real owner of that car. Moreover, it came to his knowledge that the
real reason of its non-functioning was a speed block done by the last owner of the vehicle, at
18,500 miles. While purchasing the car Ben signed the transfer documents and according to
clause 9, there was an exclusion clause. Such clause defines an obligation on the purchaser to
check the vehicle properly and also whatever information provided to him, seller is not
responsible at all.
As we look upon the merits of this case the seller is liable to disclose all the information
related to a product. On failing such, he shall be responsible for the damages.
1.2: Statutory Provision regarding the transfer of possession
A sale is incomplete without the transfer of tittle to the purchaser. It is must for
completion of trade to transfer possession of goods to the buyer. It is executed by the process of
making a contract between a seller and buyer. Contract includes all the statutory duties done by
both the parties. Also it is a proof of transfer of possession between the parties. A bailment is
when the goods are transferred for a limited period. The contact of transfer is same as of a
general contract.(Bagley, C.E., 2010)
The transfer of tittle is essential for completing a trade. In the given scenario, car was sell
to Ben so the tittle or possession must be transferred to him also. Main problem arises when it
was discovered that the real owner is someone else, the taxi driver. This information was not
given to the purchaser, moreover reason of the non-functioning of car was also not being told to
him.
The tittle of possession is constituted with the owner until he gave his rights of selling his
goods to the seller or he challenges the authority of seller for selling his property, as mentioned
under section 21 sub-clause 1 of Sale of Goods Act 1893. According to the given case Ben has
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not been told about the real ownership of the vehicle, so for now possession has been transferred
to him until the owner of car does not challenges the capacity of seller of selling it.
1.3 Remedies provided to buyers and sellers according to various statutes
When a good is delivered it should be of the same quality which has been purchased by
the buyer. Also there are certain liabilities of both seller and buyer attached with the sell of
products. These duties are mentioned in the Sale of Goods Act 1979. According to the provision
49 of this Act a seller has right to file a suit against the buyer for refusing, delivery of good. But
with a condition that it is of satisfactory condition. Buyer is liable for the remedies cause to the
seller due to the non payment within the said time. As per section 50 of this Act a buyer can be
sued by the seller for the non acceptance of the goods which was delivered to him according to
sale contract. (Bodie, Z., Kane, A. and Marcus, A.J., 2014)
The Sales and Goods Act also provides immune to a seller for the revocation of the goods
and lien it when the purchaser breaches contract of sale. Moreover he can stop those goods
which are in transit and can resale when a buyer is failed to give him an appropriate response.
According to section 41 to 43 this power has been given to a seller with retaining possession of
such goods which has been delivered to a buyer. In the context of provision 44 to 26 stoppage of
goods can also be made by him in contrary to the act of buyer.
In this case Ben has been delivered a car of unsatisfactory condition which implies that
he should be liable for certain remedies from seller such as suing the seller for hiding he actual
information of the vehicle. Moreover, as per section 51 of the above mentioned Act, he is
eligible for suing the seller if in a condition of failure in delivering the goods in proper time. But
the seller can definitely be sued for the breach of contract and statutory duties under section 53
of Sale of Goods Act.
1.4 Legal regulations and liability of selling a faulty product
The buyer and seller are responsible for there part of duties. It is essential to sell the
products of same quality which has been decided by a buyer. For failing in providing goods of
reasonable nature a seller is liable for selling goods of degraded quality. According to Part I and
Part II he's liable for a strict liability and breach of statutory duties respectively, under CPA
1987.(DiMatteo, L.A., 2010)
It is mandatory for both seller and buyer to oblige with their responsibilities. It is the duty
of both to take due care and diligent of the goods in course of sale. A seller is applicable for strict
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duties that are attached to him until he proves a defence under section 4 the Act. Similarly,
burden of proof is on the claimant that damage has been made by the seller. A defect should be
in accordance with the section 3 of the Act.
A seller is responsible for criminal conduct on breaching the said liabilities as per Part II
of the CPA 1987. Powers to make regulations and rules are also been provided to the Secretary
of State with respect to certain liabilities of both parties. Otherwise the act is included in civil
remedies and compensation shall be provided according to the damages they face. It is the
liability of a seller to deliver goods which has been purchased by the buyer.
TASK 2
2.1 Types of credit agreements
In order to buy a car Ben has been indulged in an agreement of credit. While he has been
sold a defective one. This has resulted in a futile process for Ben, as he was not told about the
actual condition of the car and now bank wants to recover the debt. In this circumstance he is not
able to sell the car as it is not even functioning appropriately. It has created a burden on him to
remove such debt. For understanding the situation it is necessary to know the types of credit
agreements. There are three types of credit agreements, Small, Intermediate and Large
agreement.(Eren, S.S and et. al., 2012)
A small agreement is made for a little time and the contract is made for only a day also
known as micro loans such as mobile debts, credits for shopping etc. It is a procedure of day to
day transaction. In an intermediate one the time period is generally 1 or 3 years, for instance a
loan taken for a purchasing a car. And if a person wants to take a loan and pays the debt in more
than 10 years shall be accounted as Large agreements. Educational loans are one of its example.
Since Ben has taken a loan of intermediate time, he can pay it back in a period of one to
three years, the property which has been given as mortgage can be attain back after paying such
debt.
2.2 legal rules on termination of rights and default notices
Since due to the default in the functioning of car Ben is not able to use it. The limit of
speed has been blocked at certain point which has resulted in overheating of engine and
eventually makes it to stop. And also when he try to find out the real reason of this, he came to
know that the vehicle has different owner. The information was not given to him properly by the
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seller and that causes in real loss to him. Under these circumstances he wants to terminate the
contract of sale as he went into complete loss.(Foss, N.J and Knudsen, C. eds., 2013)
In order to terminate the contract he has to abide by certain procedures and statues. A
notice of such termination should be send to the seller, informing him about the real condition of
the product. Also certain default notices has been provided including arrears of notice and also
financial conduct authority data sheet. Since, the seller has breach the duties of contract by not
providing the actual information so Ben has all right to terminate the contract of sale. Also he is
liable for the remedies caused due to the damages by default good. He can also get help from the
Citizen Advice Bureau for credit agreements.
2.3 General features of agency and difference between various types of agents
Agency is a part of UK commercial law which works in the ambit of agency law and its
applications in the United Kingdom. It deals with certain contractual, quasi-contractual and non-
contractual fiduciary duties involving a person known as an agent. There exist a principal who
can be an owner of the agency or any authorised person by the owner. An agent is appointed
under a principal, and responsible for all fiduciary duties of a principal. Agents are appointed to
resolve the issue between an agency and the parties that are connected to it. They works as a
mediator and brings out the legal obligations of the parties in dispute.
There are certain types of agents such as executives, collaborative, contributory,
communication and service agents. An executive agent are responsible for giving advice to those
indulges into a dispute at a professional level in the market. A consultancy firm is an example of
such agents. A collaborative agent is such in which various resources merges to bring out a
solution to a problem or an issue between the parties or individuals.
When a single person is involved in each act of performing a business and solving certain
issues is considered as a contributive agent. An example of such agent is correcting grammatical
errors and discussion on substantive issues. A communication agent is responsible for interacting
and managing issues at workplace in a way that is implacable on every conditions. Similarly, a
service agent act as a mediator between the parties and provides his service for a lower cost.
(Grundfest, J.A., 2010)
A principal is responsible for the acts of his agent. An agent has to work according to the
instruction of the principal. An agent do not surpass his interest than the principals interest. The
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agreement of agent with principal can be terminated by mutual consent and any act which is
illegal done by the agent.
2.4 Rights and duties of an agent
Principal is liable for the acts of an agent which is done in the course of service. Similarly
there are certain duties which an agent has to follow. An agent is eligible for every kind of
reimbursement which he paid in the course of service also he is liable for getting access to the
documents related to a particular event.
An agent has some rights as well as some duties such ha she has to follow the guidelines
given by his principal and act according to it. He has to obey the instruction of his principals.
Moreover he has to take due care of the respect and decorum of his agency.
TASK 3
3.1 Monopolies and anti-competitive practice legislation in United Kingdom
In order to restrain anti-competition in United Kingdom, there are several types statues
and laws which is liable for doing so. Competition Act 1998, is one of it and regulates the
malpractice done by several companies in monopolistic market. It provides a restriction on the
organisation for not getting indulge in anti-competitive practice. In order to perform fair trade
and business these obligations are mandatory over the companies in a monopoly market. It
restricts several organisations from forming and operating cartels.
Then comes Enterprise Act 2002, which applies some duties over organisation in the
process of merger, how it should be carried out and the legal formalities which has to fulfilled by
the companies. They have to identify whether the companies are performing there duties
independently or are influenced by political greed.(Johnson, L., 2013)
In order to quantify the initiation of new competition, Enterprise and Regulatory Act
2013 was enacted to regulated it and enforce some legal liabilities over the organisation. It is
done to provide competition in the market and also it provides protection to the consumers.
3.2 Role of Competition commission with in the context of monopolies and anti-competitive
practices
The competition commission is obliged with various liabilities and duties which is
compulsory to be followed, such as fair trading office, their main purpose is to prevent and check
unfair and anti-competitive practice at marketplace. Provisions related to consumer credits are
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included in it. They carry out investigations related to anti-competitive practices done by the
organisation and retailers are forced to impact minimum amount of price on the goods. Certain
mergers are analysed and observed by this commission and is authorise to control such mergers.
An investigation is done by them to find out whether the companies are decreasing competition
or they are not and according to that they provide reasonable solutions.
3.3 Define dominant positions within EU common
According to the article 82 they have been provided power to examine a malpractice
conducted by an enterprise in the market place or any subsidiary branch of that organisation and
make them incompatible to perform trade. Also chapter II restricts any dominant company to
misuse their position for the purpose of earning profit in the market. And as per article 102 it has
been restricted by the EC for performing anti-competitive practice by dominant companies.
3.4 Application of EU exemption
As per the article 81 and 82 of the Treaty of Rome, any agreement which restrain the
competition in the European Union shall be considered as null and void. Exemptions are
provided in certain agreements and block emptions. There are three types of exemptions,
parallel, individual and block exemptions. An application has been provided by the parties to an
individual agreements to the OFT for an exemption. Block exemption is applied automatically to
those agreements who posses the same nature as of an individual exemption. As per Article 81
sub-clause 3 of the EC Treaty those agreements which are made under EC or block exemptions
are treated as parallel exemptions.
TASK 4
4.1 Different types of intellectual properties
There are certain intellectual properties such as trademarks, copyrights and patent. It is
necessary to protect the work of an individual as it it their right. These rights are provided to
protect their works and provides the creator to share his ideas in the market. These rights are
provided for certain period after that the creator has to share knowledge, also these rights are
provided so that they can earn what they have invested in their project.
A copyright is one of the essential factor of IPR which provides safeguard to a person
who has created some new art. It is mostly situated with product design and creativity. The
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creators have all rights to sell it for a certain cost. If some one tries to copy their designs then
they are liable for punishment according to the law.
Patent are generally use to register an innovative ideas as it can be steal by anyone and
there is no such provision that protects a person from such theft. An inventor can get his product
patent and can earn by selling it but for a certain period. After 20 years they have to expose their
ideas.
Trademarks are basically for the uniqueness of a product manufactured by an
organisation so that no other companies can copy it. Breach of all these rights or violation of
such are punishable under civil laws.
4.2Principles related with protection of inventions through patent rights
Patent is one of the significant right under IPR. It provides registration of an innovative
idea. An inventor has all right to keep his method of innovation secret but after certain period it
is essential to publish such knowledgeable. Till that time they can earn from such innovation. It
is generally given in technology affected areas and certain other fields. As per various statutes
there are certain rules and regulations that protects an inventor from violation of his rights by
others. A patent owner have all the rights to save his invention from fraudulent entities.
4.3 Principles related to protection of copyrights and rules to prevent their infringement
Copyrights are legal rights in order to safeguard the designs made by a designer. It
provides protection to the work they have done on bringing up their work or design. Copyrights
exist till the owner of that product dies. If the copyrights is get influenced by some other person
then he is liable for civil punishment. It is generally use by the authors to copyrights their books
and novels. It provides an original touch to their work. Only the certified publishers are
authorised to publish such matter which comes under copyrights, also with the consent of its
holder. These rights are so effective to save the matter or designs the creator has done and from
that he is eligible to earn profits without any legal threat.
4.4 Difference between protection of trademarks and business names
Trademarks are given to a product made by the manufacturing companies where as
business names are registered. Both have different regulations such identity of product and goods
in market is given by trade marks while a business name helps in finding out a business. It is not
necessary to register a trademark but it is mandatory to register a business name. Business names
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are use to promote the products of an organisation while a trademark protects it from copying by
other entities. It provides protection to the brands of a manufacturing company while a business
name is in itself a brand. Moreover business name is a legal entity under which a company does
its business in market.
CONCLUSION
It is cleared from the above analysis consumer laws are enforced to protect the rights of
the buyer. It is the liability of a seller to sale such goods which is of satisfactory nature otherwise
they shall be liable for guilty of breach of contract. A buyer has all right to refuse such delivery
when goods are not according to the purchase quality. Similarly, a seller has also been given
remedies when the buyer does such acts which results in breach of his duty. A seller can lien,
resale and stop the transit of goods when buyer fails to perform is part of duties. Also this report
deals with the solutions regarding credit agreements made by Ben with all possible solutions to
the problem he has faced in the course of transfer of goods. Various laws and acts are also
mentioned in order to prove the merits of given case. This is a complete report of given task with
proper case study and references.
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REFERENCES
Books and Journals
Alix Adams
Bagley, C.E., 2010. What's Law Got to Do With It?: Integrating Law and Strategy. American
Business Law Journal. 47(4). pp.587-639.
Bodie, Z., Kane, A. and Marcus, A.J., 2014. Investments, 10e. McGraw-Hill Education.
Crane, A and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
DiMatteo, L.A., 2010. Strategic contracting: contract law as a source of competitive advantage.
American Business Law Journal. 47(4). pp.727-794.
Eren, S.S and et. al., 2012. Caching message fragments during real-time messaging
conversations. U.S. Patent 8,255,473.
Foss, N.J and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2).
Routledge.
Grundfest, J.A., 2010. The SEC's Proposed Proxy Access Rules: Politics, Economics, and the
Law. The Business Lawyer, pp.361-394.
Johnson, L., 2013. Unsettledness Delaware Corporate Law: Business Judgment Rule, Corporate
Purpose. Del. J. Corp. L., 38, p.405.
Kinicki, A and Kreitner, R., 2012. Organizational behavior: Key concepts, skills & best
practices. McGraw-Hill Irwin.Swartz, L.B., Cole, M.T and Shelley, D.J., 2010.
Instructor satisfaction with teaching business law: Online vs. onground. International
Journal of Information and Communication Technology Education (IJICTE). 6(1),
pp.1-16.
Ye, Q and et. al., 2011. The influence of user-generated content on traveler behavior: An
empirical investigation on the effects of e-word-of-mouth to hotel online bookings.
Computers in Human Behavior. 27(2). pp.634-639.
Online
Alternative dispute resolution (ADR). 2017. Available through
<https://www.citizensadvice.org.uk/consumer/alternative-dispute-resolution/settling-
out-of-court/>.
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