Business Law Report: Analysis of Business Law for Defective Car

This report provides a comprehensive analysis of business law principles through a case study involving a defective car. It examines the legal implications of the sale of goods, including implied terms, transfer of possession and property, and remedies for buyers and sellers. The report also delves into product liability, outlining statutory provisions related to faulty goods and consumer protection. Furthermore, it explores different types of credit agreements, termination rights, and default notices under consumer credit law. Finally, the report discusses agency law, including the roles, responsibilities, and rights of agents in business transactions. The analysis incorporates relevant legislation, such as the Sale of Goods Act 1979, the Supply of Goods and Services Act 1982, and the Consumer Credit Act 1974, providing a detailed overview of the legal framework governing business operations and consumer rights.

Business Law

INTRODUCTION
Business law can be termed as the law body and is applied to the behaviour of an
individual and businesses who got involved in sales, retail, marketing and commerce, relations
and rights. It is the branch of the civil law and is concerned with both public and private law. It
covers all the laws which explains how business should work and make its formation (Duhl,
2012). This report is based on the topic of business law on the case study of Ben who gets
defected car. This report will make analysis of different laws in relation with disposal of services
and stock, consumer credit and shift of property. All these things will be analysed in order to
gain importance. Laws which are in relation with the business and different agents will be
discussed here. There are several laws that are related to anti-competitive practices, mergers,
trademarks, intellectual properties and monopolies will be explained. This report will helps to
give knowledge and understanding regarding different applications on the basis of real life
scenario.
TASK 1
1.1 Judicial rules related to implicit terms for supply and disposal of stocks and services
According to Safe and Supply goods Act 1994, several modifications have been made in
different sectors that come under sale of goods act 1979.
Implicit terms related with good’s sale
Contract's which are related with sale of goods, carries various terms, which can be
termed as implied or expressed. Express terms are the kind of terms which are formed by mutual
understanding of contractual parties (Folsom and et.al., 2012). On the other hand, implied terms
are exactly opposite to express terms. Implied terms according to sale of goods can be defined as
follows:
 Title: These are the conditions which describe the rights of seller regarding the sale of
goods.
As per the case of Rowland v Divall [1923], claimant who is dealer of car gets car from
the defendant for £334. Car is being painted by him and sold to customer for £400. After 2
months car got impounded with policies as car got stolen and then again returned to owner.
Claimant and defendant was not aware regarding car's lost. Claimant gave back £400 again to
customer and against defendant, he made a claim as per Sale of Goods Act.

 Sale of goods through description: In this consistency of the goods are defined
according to description. Description of the goods can be given by brand, trademark and
label (Glynn, 2011). Sale of goods through sample: According to section 17, sample and the actual good that
are sold must be stable and should not be faulty.
 Ensuring Fitness: It is used for ensuring the quality of goods and if the customer's
expectations meet with good’s quality then various things like price and various other
features must be considered. Implied warranties in this are:1. Possession of goods should be enjoyed by buyers.2. Goods should be burden free.
Implied terms related to service's supply:
Goods and service's delivery is defined with the help of Supply of Goods and Services
Act 1982. There are 2 ways which are like supply of goods and services. Implied terms in it are:
 As per section 12, apprenticeships contract should not be there and agreement related to
supply of service must be there. Money should not be considered (Halbert and Ingulli,
2011).
 As per section 13, Act of supplier in the business is where services and facilities are
carried out with appropriate care and skill.
1.2 Advice to Ben on statutory provisions regarding transfer of possession and property
Laws as per shift of property are explained in section 18 to 25 in Sale of Goods Act.
Provisions on which advice to the Ben can be given are related with legal planning. Some of
these are as follows: Goods should be unexplored: In obligation which is in regards with the supply of
unexplored stocks, stocks should get explored as they will not be given to buyer. Party's motive: Intention of the party must be determined in a contract which is related
to good’s sale (Janssen and Feenstra, 2010).
 Specific goods: This defines that goods are agreed and identified at sale's contract time ,
and kind of statement which is not declared in the act but mentioned in Contract's Act
1950, will have the effect defined to the act.
 Important things which are related to delivery of goods must be done by seller.

 Goods which are being delivered must be tested properly by seller, and if it is not done
and buyer is not informed then ownership will not be transferred (Kitagawa, 2016).
 Property will be transferred on buyer's approval.
1.3 Statutory provisions regarding buyer's and seller's remedies in the contract of sale of goods
For buyer’s and seller's remedies, many provisions have been made. These can be
explained as follows:
Remedies for buyers
 Goods which are not according to the given description and quality, then that can be
rejected by buyer and can make acceptance as per the contract.
 If the goods will not get delivered timely by the seller or if he refuses for it then buyer
can take action or can make complaint regarding non delivery or late delivery. If warranty breach is there, then contract cannot be rejected by buyer but he may demand
for elimination of price and decision can also be taken against seller (Schaffer and et.al.,
2011).
Remedies of Seller:
 When buyer declines to pay for delivered goods, action regarding payment can be made
by seller.
 Action for non-acceptance of stocks can be taken by seller, when buyer declines to do so.
 Unpaid seller remedies are:
1. Resale rights
2. Lien of seller
3. Stoppage right in transit
1.4 Legal rules for product accountability and statutory provision regarding faulty goods
In Ben's case, when accident occurs due to damaged car which he got from seller, various
provisions will be there regarding product's liability which is there in statutory law, that is
Consumer Protection Act 1987, tort and contract law. Allegations as per Consumer Protection Act 1987: According to the case of Ben's
family, who suffered because of damaged car, the Consumer Protection Act 1987 allows
Ben to claim supplier by the strict accountability. It also defines that breach of negligence
and contract need not to be presented by Ben. Barrister needs to prove that car which he

got was faulty that caused harm. Defendant can eliminate and reduce liability if it has
been proved by him that when the product get first supplied, conditions regarding
scientific and technical information was not according to same kind product's producer
was predicted to find defect in a product (Consumer Protection Act 1987).
 Claims of tort and contract: Price regarding replacement of faulty product cannot be
reclaimed by claimant. But action can be taken as per of contract regarding the delivery
of product in question, cost may be recovered by claimant regarding defective product's
replacement if the delivery of defective product was a violation by defendant of
contractual obligation in order to deliver product which is defect free.
TASK 2
2.1 Difference in credit agreements
As per the Consumer Credit Act 1974, Ben can use different credit agreements such as
agreement of debtor and creditor and agreement of supplier creditor and debtor agreement.
Agreement of Debtor-Creditor Agreement of Debtor-Creditor-Supplier
 It is a user credit agreement that
includes:
1. Secured credit agreement as per section
11(1)
2. But, creditor does not create it beneath
pre-existing agreements or in relation
with future agreements which is created
between himself and seller (Siedel and
Haapio, 2010).
 It is a secured use credit accord as per
section 11(1) (c).
 It is regulated consumer agreement
which includes:
1. Secured use credit agreement as per
section 11(1) (a).
 It is a secured type of credit agreement
as per section 11(1) (b), which is
created by the beneficiary beneath pre-
existing agreements between himself
and supplier.
2.2 Legal rules related to termination right and default notice
Termination can be defined as the term when things are not done as per contract, which
means termination of service. There is a law in UK named as hire purchase agreement. In this,
creditors are treated as good’s or service's owners till the time whole amount is paid to creditor

by debtor. When agreement got expired then option regarding purchase or return of goods is
available with debtor.
When it is the creditors wish to stop accord before the expiry date, then it is his duty to
perform regarding all the requirements of appeal notice which is defined in section 87-89 of the
Act (Schaffer and et.al., 2011).
Several laws as per statutory rules on completion right and evade notice like Consumer
Credit Act 1974. As per this act, if customers need to stop accord, then prior notice should be
given to debtor which is called as evade notice. This notice will explain agreement's picture,
creditor's and buyer's address. As per section 87(1), notice should be given 14 days prior.
If more than third of debt has been paid by debtor and it is the responsibility of the
creditor to get court orders regarding reposing of goods from debtors. As per section 91, if is it
not done by creditor then several consequences have to be faced by creditors like he should be
liable to pay all the money to the debtor which is given by him.
2.3 Agency and different agents
Agency termed as the actor's capacity in order to act in current scenario. It is relationship
among two groups in which one is agent who performs function and the another one is principal
who give orders to agent to perform task (Percival and et.al., 2013). If any wrong activity is
being done by agent during the task, it will be principal' s responsibility. Agency is made by
several ways like:
 By expressing agreement whether verbally or in written.
 Implementation which is based on the practise of custom or trade.
 By conduct of principal.
Different types of agents are there, which can be defined as follows: Broker: It is an intermediary among customer and merchant. When groups make accord
with each other, broker's responsibility got ended (Kitagawa, 2016). Commission agent: Commission on sale of services and goods are charged by this
person. He also have authority on goods and can act like broker. Auctioneer: Goods can be sold on auction basis by auctioneer. People bids for a
particular good, and the one who bids highest gets the goods.

 A Del Credere agent: This agent will be helpful for the contract's execution with other
party. If anything wrong has been done by other party in a contract, then for that agent
will be liable.
2.4 Responsibilities and rights of agent
Different functions and freedom of the agents are there which should be performed on
behalf of sellers and buyers.
Agent's rights:
 It is the right of an agent to have remuneration for the task from owner (Janssen and
Feenstra, 2010).
 If any expense has been done by agent during the task, then it can be recovered from
principal.
 Anything which is in relation with business can be retained by agent on principal’s
behalf. It is the right of an agent to recover any lost documents or property.
Agent's duties:
 It is responsibility of a broker to perform agreement on principal’s behalf.
 Principal’s instruction must be followed by an agent.
 It is the agent's duty to not delegate his duty to another person (Halbert and Ingulli,
2011).
 It is duty of the agent to perform task carefully and skilfully in an appropriate manner,
and if there is any loss then he will be responsible for compensation.
As per the case of Carter v White, A principal owed some money to his agent and
provides him with an accepted bill of exchange with authority to fill in the name of drawer.
Principal died before the completion of the bill by agent. His responsibility to fill in the name of
drawer should not be terminated.
TASK 3
3.1 Anti-competitive regulation and monopolies in UK
Anti-competitive agreements include limiting production in order to drive prices, price
fixing, agreement regarding not to sell to the customer of competitors (Glynn, 2011). In UK,
monopoly can be defined as the strategy of business which has more than 25% market share.

Monopoly can be defined as where there are more buyers and less sellers. In such cases, sellers
misuse their positions and take undue advantage. In order to prevent such practises, there are
various laws which can be explained as follows: Restrictive Trade Practise Act 1956: If such practises are against the public policies, then
court can restrict these practises and make decision whether such practises will be
admissible or not. Competition Act 1980: In this act there are provision related to the evaluation of the
monopoly practises and anti-competitive practises. Fair trading Act 1973: It make sure about the control of monopoly market.
 Monopolies and restrictive practise Act: It helps in removing the hurdles which are tehre
in the organisation's process (Folsom and et.al., 2012).
Various activities are there, which are included in anti-competitive practises, which can
be defined as follows: Cartels: In this, there is the association of businessmen who are from same market and
accompany efforts against suppliers, consumers etc.
 Restrictive practices: This helps in restricting such activities in an organisation which are
unethical and illegal.
3.2 Role of competition commission
The role of market authority competition commission can be described as follows:
 Investigating mergers which will help in restricting mergers.
 Investigation in market and conduct of market study where there is problems of
consumers and competition.
 Investigation regarding the breaches of EU or UK prohibitions against the agreements
which are related to anti competitiveness and abuses of the dominant position.
 To brings criminal proceedings for those who are involved in cartel offence.
 Enforcement of the consumer protection legislation in order to tackle market conditions
and practices which will make it difficult for consumers to perform choice (Duhl, 2012).
 To have cooperation with the sector regulators and to encourage them in order to use
competition power.
 To consider regulatory appeals and references.

As per the case of Tesco, when it wished to get merge with Safeway, competition
commission make investigation and make decision that the firm will be having too much
monopoly power. Merger has been allowed by them between Safe way and Morrisons on some
conditions that Morrison will get rid of southern stores where there is overlapping.
3.3 Dominant positions in the common market of EU
Two tests are there in order to assess whether chapter II prohibition or Article 82 applies:
 Whether there is dominant undertaking, and
 If it is, in case it is abusing that dominant position (DiMatteo, 2010).
Two questions have been raised by first test that are considered under: I) market
explanation in which efforts are supposed to be dominant and ii) in case it is superior in that
market.
According to the European Court, dominant market position can be defined as the
position related to economic strength that can be enjoyed by an undertaking which also helps in
preventing effective competition preserved on applicable market by supporting it with the
capability so as to react in a definite time individually with users and rivals (Crane and Matten,
2016).
As per the case of United Brands V Commission, it explained that dominance position
will be taken into consideration when organisation will hold economic power so as to avoid
competition and to work independently for competitors, customers etc., and if dominance power
is misused by any company then compensation must be given by that company.
3.4 Exemptions for potentially anti-competitive practices
As per section 101(1) of the treaty, restrictions and power is laid down to EU to fine 10%
for such organisations who keeps on violating restrictions and if article 101 is not there in any
agreement then it will be void agreement. As per the exemption of article 101, classification of
behaviour is done in three parts which includes:
 As per section 101, restrictive trade practices are restricted on European Union's function.
 As per section 101, agreement's which are less important and organisations which have
10% market share are exempted (Cheng and et.al., 2010).
Conducts and agreements will be excluded from the investigation beneath the article 81
or 82 of the treaty as they are subject to examination in other laws. The law also says that

agreement will get exempted under section 101 on the European Union’s function if there is
addition regarding good’s production or distribution.
TASK 4
4.1 Forms which are in relation with intellectual possession benefits
Intellectual possession can be termed as the innovation of mind, that includes exclusive
rights regarding intangible assets which are given by law (Bruneel and et.al., 2012). These types
of assets involves designs, discoveries, phrases, inventions etc. which gives proactive rights in
UK.
One main case which is related to intellectual possession is of Honda auto mobile V
Hyundai automotive. Honda filed a case opposite the car design. There are different forms of
intellectual rights, which can be explained as follows:
 Copyright: It is a form of protection. By this possession can be get on things so that no
one can use them without the copyright holder's permission (What Is a Copyright?,
2017).
 Patents: It is termed as the grant of property right to the inventor. It give platform to the
patent holder for selling, creating and inventing of a product which is done by him/her
and restrict others to use it without permission.
 Trademark: It is defined as any name, symbol, word, combination, device which is used
or intended to use in commerce so as to distinguish and identify goods of a particular
seller or manufacturer from goods sold or manufactured by others.
4.2 Principles in relation to the protection of invention
Patent can be defined as the monopoly right in order to protect invention's right. Patent
right period is of 20 years. New technology's invention can be protected with the help of it.
Patent right is obtained in order to get secure by UK intellectual property office. It is granted by
the government in order to secure rights for a specific period of time (Bishara and Westermann‐
Behaylo, 2012). Few principles are involved in the patent's right, which helps in preventing the
rights of invention.
 The patent which is taken regarding service and product should be new and not in
relation with the prior invention.
 Patent right should be in relation with industry.

 Patent right will prevent misuse and illegal use of intellectual property.
 If there is any infringement then owner can claim against particular person and can have
compensation (Bharadwaj and et.al., 2013).
As per the case of Aerotel V Telco holdings Ltd., court judgement is give in four steps
i.e. identification of actual contribution, proper construe of the claim, contribution given
individually with the excluded subject matter.
4.3 Laws in relation with protection
Copy right is the type of statutory mechanism which helps in protections like patents. It is
provided by the country's government in order to protect contemporary plans. Patent and design
Act defines the copy right. Cases which are in relation with the copy right have disputes among
the private interest. If it is found that other person is using copyright, then owner can claim for it.
It is the owner's responsibility to take care of the copyright if it is found by him that somebody
else is using or selling its right (Atanasov, Black and Ciccotello, 2011). There is one best method
in which violation of copyright can be avoided by the owner if the person takes prior approval
from him. If any losses has been suffered by owner because of infringement then compensation
amount can be received by him.
As per the case of purple phones, there is a clear breach of contract as they produced
same game named oily fish by copying similar elements of the game.
4.4 Compare protection of trademarks and business name
A trademark can be defined as the term which provides statutory right to reach court in
order to cease others from using similar symbol, words, mixture and design of these things so as
to identify businesses wherever organisation have its trademark registered. Registered trademark
give exclusive right for using the mark all across the nation or in connection with the services or
goods which is listed in registration (Arnerstål, 2015). Registration of the trademarks gives
guarantee regarding exclusive use, make establishment that organisation's mark is not used
already, and give government protection against any infringement issue or liability which arises.
A business name can be defined as the name in which business operates. It is necessary to
register business name as well as to register the trademark is compulsory of an organisation. If
they does not do so, then other company can use their name.

CONCLUSION
Business law is useful in many ways, which helps in giving knowledge and various
concepts regarding the trademarks, intellectual property, contracts, seller's and buyer's rights.
From the report, it can be articulated that laws of business help in different style regarding the
formation and operation of business. It is impossible for the firm to perform activities without
going in line with business laws. It has been assessed that there are many business laws and
statutory provisions that put a huge impact on a business. Therefore, it can be said that, to
achieve desired aim, it is necessary for an organisation to acknowledge business law.

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