Business Law Report: Rights, Agreements, and Intellectual Property

This business law report examines several key areas within the field. The report begins with an analysis of the Sales of Goods Act, detailing implied terms, statutory provisions regarding property transfer, and the remedies available to both buyers and sellers, including legal rules for faulty goods. Th...Read More

BUSINESS LAW

Table of Contents
INTRODUCTION....................................................................................................................................................3
TASK 1 ....................................................................................................................................................................4
1.1 Implied terms as per Sales of goods act and supply of services...................................................................4
1.2 Statutory provision related to transfer of property and possession...............................................................5
1.3 Remedies of buyers and sellers.....................................................................................................................5
1.4 Legal rules and statutory provision for faulty goods....................................................................................6
TASK 2.....................................................................................................................................................................7
2.1 Various types of credit agreements...............................................................................................................7
2.2 Legal rules on termination of rights and default notice................................................................................7
2.3 Features of agency and different types of agents..........................................................................................8
2.4 Rights and duties of agents...........................................................................................................................8
TASK 3.....................................................................................................................................................................8
3.1 Monopolies and anti-competitive practices..................................................................................................8
3.2 Role of competition commission..................................................................................................................9
3.3 Dominant position.......................................................................................................................................10
3.4 Exemptions of dominant position in EU market........................................................................................11
TASK 4...................................................................................................................................................................12
4.1 Intellectual property and its various types..................................................................................................12
4.2 Principals of protection of patent................................................................................................................13
4.3 Principals of protection of copyright..........................................................................................................14
4.4 Trademark and Business name...................................................................................................................14
CONCLUSION......................................................................................................................................................15
REFRENCES.........................................................................................................................................................15

INTRODUCTION
Business law consist various types of rights, duties and conduct of parties which are
engaged in the legal contract. In which two or more parties are involved in the legal contract
and supposed to do their as per the agreements in the paperwork. Parties come under a legal
relationship with each other. This law establish some regulations imposed on the parties
stated under the law and they are responsible for its violence. In currently released reports
based on Sales of goods act, in where two parties formed a contract name called seller and
buyer (Costen and Salazar, 2011). In which seller is legally agrees to deliver good quality of
products to customer and meet the needs of the customers. In Agency law, two parties
involved in the legal agreement are called as the agent and principal. Agent is the major client
who act on behalf of his principles and bound to maintain their legal agreements. They are
not even able to do transaction with own name. Intellectual property is nothing but a creation
of human mind which is legal as per the law. Owners have to register their property for
continuous use them.
TASK 1
1.1 Implication of terms as per Sales of goods act and supply of services.
As per the Sales of goods act, 1979, sellers are bound to follow products of better
quality and attract the customers to the location in order to serve them well. Two parties are
involved in this act name called seller and buyer. Seller is the person who is liable for the
delivery of the products and buyer is the person to whom the products are delivered to. Both
the parties come under the contractual relationship with each other and are liable to follow the
regulations within the agreement. There products must be able to meet expectation of people
and maintain performance as well.
As per the given scenario, there is the buyer name called Ben. He purchased a car
from a dealer who defined some significant points regarding the car. The car has been driven
for 18,500 miles and it was under a single owner (Dirani, 2012). As to show some
seriousness towards car, Ben paid a token amount of 150 pounds which is non- refundable.
Later, when he got the possession over that and went for a long trip with his family. While
driving, he realized that the car's engine is not working well and it has been owned by two
individuals instead of one as per the discussion with the car dealer. The previous owner of the

car drove the car for taxi purpose and now at the distance 18,500 miles, the engine was
choking.
After realisation he wanted to return the car to the dealer, but it was a clear refusal
from his side. As the buyer signed the document in which it is mentioned that buyer must
check the product before he or she purchases it. Later, the seller is won't be held responsible
for the same.
On the basis of Clause 9, in this legal term it has defined that, buyer have to check the
products after sellers are not responsible to pay compensation or any other thing.
But according to sales of goods act, 1979, there is a conditional implication that the
seller have to provide best quality of products and services other person having a right to case
against them and received compensation as well (Ehrhardt and et. al., 2011). In the given
scenario, car dealer deliver defected goods which are able to meet their expectation so that,
Ben can file a case against the dealer and claim an amount for fraud and the loss as well.
Case- Harlington & Leinster v Christopher Hull Fine Art, 1991, in case it has defined that,
plaintiff purchased a painting from defendant which is defected. So that, buyer file claim and
defendant is liable to pay compensation for the same.
1.2 Statutory provision related to transfer of property and possession.
The legal restrictions and regulations can be classified and has been framed related to
transfer of property and possession which have to be maintain by every party. If buyer
purchased some goods and services from seller then they also get possession over them
(Grohmann and Kauffeld, 2013). After that owner can continue the ownership or sale it to
another person as well. Some features of transfer of property are as aligned below:
 Goods must be delivered by one person to another.
 After made payment, buyer received all right of using and selling the goods
and services.
 While the time delivery has being under process, the seller and buyer comes
in the contractual relationship with each other and attempts to maintain their
legal agreements as they are imposed on them as per the law.
 There is no condition is consists at time of purchase and sale of goods.
 After getting ownership, buyer is able to sale it to another person or keep
enjoying the same as well.

According to given scenario, Ben gets possession over car after made entire payment he can
use the car for his own purpose or sale it to another it all depends on his choice.
1.3 Remedies of buyers and sellers.
Remedies are presented under the law which are able to protect rights of both buyer
and seller. Some different types of remedies are available for them. When both parties comes
in the legal contract and they can face various types of legal damages, in order to resolve
those problems legal authorities framed various types of remedies which are beneficial for
them (Grossman and Salas, 2011). If seller done anything wrong then buyer can able to take
stick action against them and if buyer done any wrongful act then seller take action against
them.
Buyer's remedies
Suit for non-delivery- In case seller neglect in the delivery of the goods and services,
then buyer has the legal right to file case against them and the damages made could be
claimed as well. In this, consumer's having a right to recover amount.
Suit for price- If buyer paid the price and goods are not delivered to them by seller
buyers can suit case for the damages which they suffer.
File claim for defected goods- According to sales of goods act sellers are held
responsible for delivering quality goods and services to the customers and attempt to meet
their expected level of requirements. In the scenario above, car dealer delivered defected
quality of products to him so that, buyer has the right to file case against the dealer.
Seller's remedies
File claim for non payment- Every buyer holds the responsibility to pay an amount
against the goods for what they have placed an order for. During the delivery, they are bound
to pay amount which they previously discussed otherwise the seller can file case against
them.
For non-acceptance of goods- Buyer are bound to receive goods and services for
which they already placed an order (Huber, 2011). During the delivery, they have to make
payment as well. If consumer not able to accept goods then seller having to file suit and
received damages amount.

Case- Shine v General Guarantee Corp, 1988, in this case, it has been defined that the
seller have to provide goods and services which satisfies the requirements of the buyer. If
they failed to do so, then the buyer can file case against them.
1.4 Legal rules and statutory provision for faulty goods.
The goods and services which are not able to meet the expectation of people then
goods is known as faulty goods. According to Sales of goods act, 1979, manufactures are
responsible for the delivery of defected products (McGrath, 2012). If damages caused to the
buyer for defected goods then seller is responsible to pay amount equal to the claim amount.
In order to receive, compensation amount, plaintiff have to prove some points which are
related to delivery of defected goods are as aligned below:
 Products and services are not able to meet the expectation of people.
 Cause damages for use of defected goods.
 Create personal injury to plaintiff.
 Seller knowingly delivered goods and services to buyer then he is responsible
to pay compensation.
As per the given scenario, car dealer who act as seller delivered faulty goods to buyer. After
purchasing the car, Ben went out with his family. While driving he realized that the engine of
the car is not in good condition and they are going to get stuck in the way. Due to same
reason, one of his family member got injured and want to file claim against seller.
On the basis of the sales of goods act, there is the conditional implication that seller
have to transfer goods condition or quality of products and services to people which are able
to meet their standard level of expectation. But in case of Ben failed to do so and liable to pay
compensation for the same.
Case : Crowther v. Shannon Motor Co. Ltd., in this case, the seller is not delivering the
goods and services to buyer as per the described in the legal agreement provided to the buyer
while he has been placing his order.
TASK 2
2.1 Various types of credit agreements.
As per the law, there are different types of credit agreements that enables the
protection of the right of people. Various types of credit agreements are framed by the

government for the interest of people (Niazi, 2011). As per the given scenario, Ben is the
purchase who purchased goods from seller and able to use other types of credit agreements
which are as aligned below:
Hire purchase- In which customer purchase goods and services from seller and third
party made payment on behalf of them. After receiving goods buyer is responsible to pay
amount equal to amount to third party (Obisi, 2011). After getting possession person is able
to keep that property and sale to another person as well.
Conditional sale- This is the important type of credit agreement, in which buyer gets
a possession or ownership but payment is made by third party on behalf of them. In the given
case play a role of buyer who received goods but payment is made by another party.
Credit sale- In this types of agreement person is able to continue to enjoy property or
sale it to another party.
2.2 Legal rules on termination of rights and default notice.
When rights of the person is comes to an end then the situation is known as
termination of rights. This can be done by both parties with mutual consent. The situation can
be arise in case when is the debtor:
 The conditions have been rising, if buyer and other parties terminate the right
with mutual consent before the due date.
 If the contract is breached due to any reason, then the creditor is able to
receive amount which they paid on behalf of buyer.
Default notice- This notice has been issued by the creditor in order to receive amount
which are given by them on behalf of customer. On the basis of Consumer Credit Agency,
2006, third party which is known as creditors is able to receive amount. On the basis of given
scenario, Ben becomes an agent of selling second hand car which is on behalf of individuals
as well as companies. Those who are want to sell their used car. As a creditor Ben having
right to issue default notice in order to receive amount which he paid on behalf of customers.
As a creditor he having further rights to receive amount. Default notice implies for the
formal letter which is sent by the lender or creditor to the individuals who have arrears with
their account. Referring the concerned situation, it can be presented that Ben has legal right in
relation to sending default notice to the customers who have missed payments.

2.3 Features of agency and different types of agents.
Agency is an legal term in which two or more parties forms a contract and try to fulfil
their duties as well which are imposed on them by the law. There are two parties’ agent and
principal (Pollock, Wick and Jefferson, 2015). Agent is the person who acts on behalf of
principal and were not able to do the transaction with their name.
As per the law some different types of agents are as aligned below:
Executive agent- They are able to directly contribute into planning process and also
beneficial for principal in order to taking corrective decisions.
Communication agent- These types of agents are responsible to communicate with
other party on behalf of their principals. Helpful for them to manage their performance and
interact with other parties as well.
According to the given scenario, Ben being an agent have to fulfil his responsibilities
which are imposed on them. He is responsible to follow instruction of principal and
contribute in decision making process. Considering cited case scenario, it can be stated that
Ben comes under the category of executive agent. On the basis of such aspect, Ben will take
part in the decision making aspects and helps in getting benefits in the form of profitable
deals. Along with this, Ben is also accountable to carry out activities as per the instructions or
guidance provided by the principal authority.
2.4 Rights and duties of agents.
On the basis of given case situation, Ben is considering as an agent who will deal on the
behalf of persons or companies which are interested to sell off used cars. Hence, being an
agent Ben will enjoy the following rights and responsibilities such as:
Duties
 Responsible to follow instructions which are provided by their principals.
 Able to maintain relationship with other parties.
 Use their entire skills and knowledge for the smooth functioning.
 Manage duty with trust and faithfully.
 Being an agent Ben is not able to earn secrete profits.
 Needs to to done transaction with the name of principals only not able to
conduct with own name.

 Use all his knowledge and skills which are helpful for principal in continue
business.
Rights
 Able to receive remuneration for the efforts which they made to principals.
 Also having a right to receive lien.
 Right to receive compensation for the damages caused to them.
 Ben having a power to receive full knowledge about current transaction of
principal.
 Right to receive amount which is spend on principal.
Considering the rights and responsibilities of Ben, on the critical note, it can be stated
that agent has no right to work beyond the instructions of principal. This in turn places
negative impact on the creativity aspect of agent. Along with this, it is to be critically
evaluated that remuneration and commission policies pertaining to principal agent
relationship are not clear. By taking into account all the above depicted aspects Ben should
enter in the relationship of principal-agent.
TASK 3
3.1 Monopolies and anti-competitive practices.
Competition plays a very important role in the market. It increases the number of
sales in the market and helps in reducing the prices of the product in the market which is
beneficial for the customers (Rooney, 2010). Anti-competitive practices are strictly
prohibited by the competition law also helps in reducing the competition between the
member states of the European Union.
Monopolies are also a very dangerous threat to the markets in UK. A firm that
acquires around 25% share in the market is said to be the monopoly firm of a particular
market.
The main legislation which regulates these factors in the UK are:
 Competition Act 1998
 The Enterprise Act 2002
Monopoly

It refers to a market structure which is consist of a single seller who is selling a unique
and quality product in the market. In this type of market there is no competition so there is
no competition for seller as he is the single seller of the product and there is no availability of
any close substitute.
There are some factors in the monopoly market which restrict the entry of other
sellers are as follows:
 Government licence
 Ownership of resources
 Copyright and patent
Anti Competitive Practices
It refers to a wide range of government and business practices which restrict or reduce
the competition in a given market.
The factors which enhances the anti-competitive practices are as follows:
 Disparagement
 Dividing Territories
 Exclusive Dealing
 Price Fixing
 Business Intelligence collected unethically
3.2 Role of competition commission.
The competition commission was an independent body which is responsible for
markets and other information related to regulate markets under competition law in UK. Its
main function is to ensure healthy competition between companies which is beneficial for
consumers and economy in UK.
It was a non-departmental public body which helps in conducting deep inquiries into
markets and the regulations of the regulated industries (Salas and et. al., 2012). It was a
regulating body under departments of business, innovation and skills.
It helps in replacing the Monopolies and Mergers commission on 1 April 1999 which
is created by Competition Act 1998 but all its powers were regulated by the Enterprise Act
2002.
Competition and Markets Authority replaced the Competition Commission on 1 April
2014, which also have several responsibilities of the Office of Fair Trading.

It's main function is to held deep inquiries into mergers and markets which help in
ensuring the healthy competition in the markets of UK which is beneficial for market,
customer and economy.
All the inquiries which were held by the competition commission follow a reference
which is made by another authorities mostly by the Office of Fair Trading which regulates
markets within their jurisdiction or make regulatory references which related to control over
price and other licences. It also helps to ensure that market work effectively. In terms of
mergers, it must reduce competition. The commission will decide which option is to be
implemented whether, after the merger competition is maintained.
3.3 Dominant position.
European competition law helps in promoting the management of competition within
the European Union by having control over the anti-competitive practices by the companies
which ensure that they never create difficulties and monopolies that lead to damage the
interest of society (Tahir and et. al., 2014). It includes four main areas of policy are as
follows:
 Cartels
 Market dominance
 Mergers
 State aid
European Union is consist of independent member states. The treaty on the working of EU
states that any abuse by one or more undertakings regarding a dominant position in the
common market shall be prohibited as opposite with internal market which affect the trade
between member states. It does not restrict to obtain a dominant position but only abuse, it
leaves many problems which are now described by decisions of various standard commission
and judgement of the court of justice.
The domination of a market cannot be defined only by the market share held by a
company or other quantitative factors, but also look after its ability to exercise influence on
the working of the market and firm's behaviour.
Case- United Brand Company v. Commission of the European Communities, 1978, this
case is related to price discrimination. In this court has decided that if an enterprise acquires

around 40% of shares in the market then it will be found to have abused its dominant position
which violates the provisions of article 86 which results in market segmentation in national
borders. The court confirmed that that the imposition of restriction on competition which
affects the trade boarder within community is abusive under article 82 unless restriction is
justified and proportionate to its objective.
Case- Radio Telefis Eireann v. Commission, 1995 it is an independent television
publication. In this case commission refused to licence their television programme to an
independent publisher want to TV listing magazine which covers all television stations was
an abuse. Court of justice held that it was an abuse under article 82. With reference to
commercial solvents it refused to lead the exclusion of all competition in the market.
3.4 Exemptions of dominant position in EU market.
EU commission is important for the interpretation and application of the UK
competition rules (Van Vianen, Dalhoeven and De Pater, 2011). The Competition Act
prohibited the Article 101 and 102 TFEU. To reduce the divergence in the applications of
these prohibitions section 60 of the competition Act which is incorporated in UK law.
Exemptions to article 101 divided into three categories.
First, Article 101(3) it creates exemptions for those practices which are beneficial to
consumers such as by providing technological advances. In these type of practices
commission gave less exemptions and adopt a new system which is dealing with them.
Secondly, it exempt agreements of minor importance from Article 101 which applies
to small scale companies which together holding less than 10% of the market.
Thirdly, in this a collection of block exemptions has been introduced for different type
of contract. It includes a list of contract which permitted conditions and a list of banned
conditions in these exemptions.
Case- Metropole Television v. Commission, 2001 this case is related to commission design
which is related to proceedings of Article 85 concerning the creation of television par satellite
which aims to develop, devise and broadcast in digital mode, a variety of television
programmes against payment. In this case the court of first instance dismissed the application
and order the applicants to bear their costs and pay to those incurred by commission and by
intervener.

TASK 4
4.1 Intellectual property and its various types.
Intellectual property is nothing but the creation of human mind. But it is legally
present under the law. Real owner have to register them and also able to obtain licence for the
same.
Its different types are as aligned below-
Patent- It helps in preventing an invention. It provides an exclusive right to the holder
to prevent others from selling, making for a particular time period.
Copyright- It helps to prevent the expressions of literacy and work related to art. It
gives an exclusive right to holder to control reproduction by occurring automatically.
Trademark- It is a different sign helps to differentiate the product or services of one
business from another (Wilson, 2014). These are closely related to brands.
Design- It helps to protect the outer appearance of the product only but does not
protect functionality.
Database- It helps in preventing the important parts of a database. Database rights are
similar to copyright. The protection is not to the expressions of information but of the
information itself.
Trade secrets- It is a practice, process and design of information which is used by a
business to achieve an advantage over competitors. These are not disclosed to the world at
large by definition.
4.2 Principals of protection of patent.
In the UK, the rights of the intellectual property are protected by the Patents Act
1977. It provides a scope to the users and owners of the products. It protects the owners from
the illegal and misuse of intellectual property. If any infringement occurs related to patents
then the legal authorities are eligible to take action against misuse of the invention.
The rights of investors are also protected by the Copyright, Design and Patent Act,
1988. If any rules and regulations are violated by any company then he must be come under
the rules and regulations.
A patent is infringed by doing these acts in the UK without consent of the patentee,
these are as follows:

 By making, using, importing a product which is patented obtained directly by use of
patented process.
 Offering for use a patented process
The procedure which is followed by Patents courts involves:
 Discovery of documents
 Expert evidence and written facts
 cross examination of witnesses at trial
Issues related to infringement and validity of patents are dealt in one trial in EU laws.
Case- Aro Manufacturing co. v. Convertible Top Replacement Co., 1961 it is an
important case in which the Supreme Court redefined the difference between repair and
reconstruction of items which are patented.
Case- Bowman v. Monsanto, 2012 it is a modern case which predetermine the old idea that
copy the item patented and re-produce it is said to be infringement, in this case a plant is
grown by a seed which is a patented seed.
4.3 Principals of protection of copyright.
The copyright law of the European Union is made up of various directives, in which
the member states are bound to follow the national laws and by the judgements of European
Court of Justice. To harmonise the laws of European Union the directives of EU are passed.
Copyright infringement means the use of work without permission of copyright
holder which are protected by copyright, infringing various rights given to the copyright
holder like right to reproduce, distribute or perform the protected work. The legal and
technological measures is routinely taken by the copyright holder to protect and prevent the
copyright infringement.
The disputes related to copyright infringement are normally solved through direct
negotiation through a process of notice and take down or by litigation in civil court.
The commercial copyright infringement at large scale are sometimes solved through
the system of criminal justice (Business Law. 2017).
Copyright holders and representatives of industry and legislators have divided
copyright infringement as piracy and theft.
Piracy and theft are the words which are commonly used instead of copyright by the
various courts now regard as pejorative.

Case- Rogers v. Koons In this case Koons a photographer clicked a picture of couple
holding puppies and use it for greeting cards. Koons was sued by Rodgers for copyright.
Court held that these two pictures are closely related to each other so court rejected the
defence of Koons. Court ordered Koons to pay compensation to Rodgers.
Case- Cariou v. Prince in this case Richard Prince is an artist who is known for creating a
new meaning by transforming the others work in his own work. For an exhibition Prince took
some images which is clicked by a French photographer Patrick Cariou, claimed for the
copyright infringement. This case is in appeal and the final decision has not taken yet.
4.4 Trademark and Business name.
Business name- It is a name by which a business operates. A company needs to register a
with business name. A business name must not be identical and similar to a name by which
name a company is already registered.
Trademark- It is protects legally the name and restricts other from trading with that name.
Registered trade mark gives an exclusive use of it. A trademark is protected for a period of 10
years.
These both protects the business. These both must need to be registered to operate a
business with a particular name (What is Business Law?. 2017). Trademark and business
name both are need to renew after a certain time period to continue to operate a business.
CONCLUSION
On the basis of the above report, it has been concluded that, Business law is a legal
term in which two or more parties are comes in the contractual relationship and try to meet
provision of laws as well. As per the given scenario, Ben is able to file case against seller
because he delivered defected goods to him which is against the description.