Business Law Report: Statutory Provisions and Product Liability

This report delves into key aspects of business law, primarily focusing on the Sales of Goods Act 1979 and its implications. The report analyzes a case scenario where a buyer, Ben, purchases a second-hand car from a dealer and subsequently discovers faults and misrepresentations. It examines legal rules concerning implied terms, transfer of property, and statutory provisions related to sales of goods and services. The report assesses the seller's obligations, the buyer's rights, and the remedies available under contract law and consumer protection legislation. It covers topics such as misrepresentation, breach of contract, product liability for faulty goods, and the rights of both buyers and sellers, including remedies for defective products and unpaid sellers. The report concludes by emphasizing the importance of consumer awareness and protection against fraudulent practices in the market.

BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 advice Ben on The Legal Rules of implied terms relating to the sales of goods and supply
of services....................................................................................................................................3
1.2 1.2 Advice Ben on the Statutory provisions on the transferthe transfer of property and
possessions..................................................................................................................................4
1.3 Evaluate the Statutory Provisions on buyer's and seller's remedies in sale of goods
contracts......................................................................................................................................4
1.4 advice on Product Liability Legal Rules And Rules and Statutory Provision for faulty
goods...........................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business law plays an important role for the complete protection of consumer from
various frauds, threats and coercion caused by the seller for selling his goods. Therefore it is
necessary to protect customers in order to maintain a healthy relationship between buyer and
seller. There are certain acts which are introduced by the government which set standards for all
activities that are conducted in the market in order to sustain the ethical practices.
The following report includes discussion of a Case Scenario in which the buyer has
provided some faulty goods, regarding this aspect following report comprises of the various laws
and acts that are related to the goods and services (McKendrick, 2014). It has also discussed
about role of a consumer in a situation where he has been provided some faulty products and
suggested remedies for the same.
TASK 1
1.1 Legal Rules relating sales of goods and supply of services
Issues: Ben brought car from a second hand car dealer and stated using the same. After
using it from some time he notices that hat car is dis[plying certain irregularities while driving
uphill. On looking into the history books Ben realised that the seller have presented him with
Wrong information.
Rules:
Sales of goods act, 1979
Section 14: the sellers is responsible to sales goods under defined conditions which
must be free from defects is safe and durable.
Contract law: the statement made party to agreement to induce other party to enter into
contract is termed as representation and non-fulfilment of the same the innocent party can claim
remedy under misrepresentation.
Application and conclusion: The seller is under fault as the car was sold with
misrepresentation's of the conditions and the contract terms being not reasonable. The contract
can be set aside or stated a voidable on behalf of Ben.
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There are various types of rules and regulations which are imposed on the activities
related to the sales of several goods and services. There is an act which is known as Sales and
Supply of Goods Acts that was established in 1994 and provided certain criteria for aspects
related to properties of the goods and services (Dari-Mattiacci, Guerriero and Huang, 2016).
The product must have label providing complete description of its details related to its
manufacturing, expiry date and material or ingredients used for production along with other
necessary information beneficial for consumers. Quality is another feature and a major factor to
be considered by the producer as well as the buyer. Any product which has a degraded quality
should be returned within 6 months of purchasing which is regarded as the defect item which is
sold by the manufacturer (Ali, 2018).
Every goods is produced for the achievement of some aim therefore that particular good
should be perfectly fit for the use for which the item has been made.
1.2 Statutory provisions on the transfer of property and possessions
Issues: Whether all rights and full possession is transferred to Ban?
Rules:
Sales of gods act, 1979:
Section 14: product must be sold in the conditions in which it is mentioned to buyer and
same must be defined in the contract as terms.
Section 16-20: this defines that with selling the good all the rights and ownership is
transferred to buyer from seller along with inherent risk which are not foreseeable.
Section 21-25 : this defines that on making full payments legal possession is of buyer
over the property so sold.
Application and conclusion: the seller have received the whole amount of £10,000
along with extra deposit of 150. This stats the condition that full rights and possession of the car
has been transferred to Ben.
There are numerous impacts which get introduced along with transfer of properties
between two individuals.
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The transfer depends on two types of good which are basically ascertain and certain , here
in the case Ben was provided ascertained good which can be easily given to him from the seller
(Twigg-Flesner and Howells,2017).
In addition, the action of transferring occurs when both the parties have mutual
agreement for particular object. In this particular scenario, Ben was interested in car and had the
test drive where he got completely satisfied with it and seek forward for buying it on mutual
decision of transferring the car from mechanic to him. There should be unison of minds between
customer and seller as they should have similar intention where one is interested for selling and
other for buying. According to the contract, complete disposition of the car can only be done by
the seller on term that he will givedecided amount for it and also seller is not regarded as
responsible for the risk which are associated with the item which is the important condition for
any transaction of goods (Bridge, 2017).
1.3 Statutory Provisions on buyer's and seller's remedies in sale of goods contracts
Rules: Sales of gods act, 1979
Remedies available to buyer section (40-50): in case of misrepresentation of contract
being voidable on part of buyer, the purchaser can sought a remedy in from of return the
defective goods in reasonable time. Remedy is also available under section 50 as claiming the
damages for breach of the contract.
Remedies available to seller section (10-15): the seller can stop the transfer of property
and might not transfer the session of the goods in case the buyer is insolvents and it is identified
that purchaser can not pay the amount of sales transaction.
There are detaining remedies for issues which are related to the selling of the particular
goods and services. In Case of Ben, he was provided a car which was defected and the seller
does not informed him regarding this aspects which lead to a case of fraud in which he can
obtain claim for the damages which occurred due to the defect of the car and also he can ask for
any replacement or return within 6 months from the agreement of purchasing.
1.4 Product Liability Legal Rules and Statutory Provision for faulty goods
Issues: Analysis of the liability of the product, legal rules and statutory provisions for faulty
products.
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Rules: Consumer protection Act (Contract law) and tort law-
Breach of contract: non fulfilment of the contractual terms results in breach of contract
and innocent party can sue the other party to contract.
Tort of Law: states the clause for negligence, when goods are sold with potential danger
to the buyer and family. The duty of care is breached in the hand of seller.
Consumer protection Act: the buyer cannot escape the liability regarding defective
goods on behalf of the exclusion clause in the contract.
Application and conclusion: Ben return the car immediately after he encountered the issues in
car there was breach on contract and car dealer can not escape on behalf of clause 19 of the
contract between them. Moreover, seller is under negligence and breach of care duty. Hence, car
was a faulty product and Ben is liable to get remedy under the law.
There can be many factors which can be related to various legal rules regarding the
product liability and also statutory provisions for the goods which are faulty.
One of the major concerns is the seller which is unpaid. As per Section 38 which is
included in SOGA 1979 which depicts that the person who is not provided the complete
payment of goods or services which the person has sold to the buyers are known as the unpaid
sellers. Therefore possession of the product which is going to be sold stills remains with the
producer until the complete transfer ofmonitory value. If consumer is not in the situation to
complete payment then provided goods can be taken away for him and the seller has the
complete right to retain it whenever he feels to do so (OGLINDĂ and Olariu, 2018).
In the case the product which was provided to him was faulty as it was having some
defects which could not be neglected by Ben and this defect lead to some mishap for which he
wanted to claim some amount of money as according to the seller it was a perfect car. He was
having complete right to return the car within six months of buying, or can claim for some
amount as compensation or could get some replacement for this defect.
CONCLUSION
It has been concluded that consumer is equally responsible for protecting himself from
any kind of malpractices from the seller which can created harm to him in many ways. He must
be completely aware while buying any product or availing any services. Here, the Ben was not
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provided any solution for the problems that he faced after buying a second hand car. This was the
case of fraud conducted by the mechanic as he did not provide the complete information
regarding possible defects about car and was not agree to provide some compensating amount for
the accident which happened due to his negligence.
REFERENCES
Books and Journals
McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).
Ali, F. B., 2018. The Passing of Property and Risk In the Contract of Sale (Doctoral dissertation,
University of Khartoum).
Bridge, M. G., 2017. The International Sale of Goods. Oxford University Press.
OGLINDĂ, B. and Olariu, C., 2018. Risky business: distribution of risk in contracts for
international sales of goods. Juridical Tribune/Tribuna Juridica.8(1).
Twigg-Flesner, C. and Howells, G., 2017. Comparative consumer sales law–introduction. In
Comparative Consumer Sales Law (pp. 1-14). Routledge.
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Dari-Mattiacci, G., Guerriero, C. and Huang, Z., 2016. The Property–Contract Balance. Journal
of Institutional and Theoretical Economics JITE.172(1).pp.40-64.
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