Law for Business Managers: Key Legal Concepts and Principles

This report provides a comprehensive overview of legal principles relevant to business managers. It begins by defining representation and differentiating it from a term of contract, using the case of Jonna vs. Haroon to illustrate misrepresentation and the applicability of consumer protection laws and fraud acts. The report then defines the tort of negligence, outlining the elements a claimant must prove for a successful claim, including duty of care, breach of duty, and causation. Finally, the report addresses the concept of a corporation as a legal entity or artificial person, detailing the main features of artificial personalities. The report examines the legal responsibilities of business managers and the implications of failing to adhere to relevant laws and regulations, offering valuable insights into contract law, negligence, and corporate structure.

LAW FOR BUSINESS
MANAGERS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Meaning of representation and how it can be distinguished from a term of contract.................1
PART 2............................................................................................................................................3
Define tort of negligence and what claimant must show in order to bring a successful claim for
negligence....................................................................................................................................3
PART 3............................................................................................................................................5
What is meant by statement ‘A corporation may be defined as a legal entity or artificial
person’ and state the main features of artificial personalities......................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Law can be defined as a system of rules which is required to be followed by an
individual, business, community or a country. It helps in identifying and defining correct and
appropriate behaviour or characteristics in a particular field that a person or group of individuals
are required to behave. Law is one of the most important information which is required to be
known by business managers as it helps them in identifying acts and legislations that their
business is required to follow. Not following these acts and legislation can result in legal actions
that can be taken against business. Business managers are required to have good understanding
of fundamental principles of contract, legislation elated to borrowing or lending money, dispute
resolution method and many more. This Assessment will focus upon representation, difference
between representation and term of contract, tort of negligence, artificial person and features of
artificial personality.
PART 1
Meaning of representation and how it can be distinguished from a term of contract
Representation: Representation in legal term can be defined as the act of doing
something on the behalf of another (Getman and et.al., 2018). It is a statement of fact which is
being presented by any person on the behalf of another which differ from contract because in
this, makers of statement does not guarantee its truth. Representation is to behave on behalf of
other person whereas term of a contract means to form forming a contract between two persons
or groups. Representation does no guarantee its truthfulness whereas a contract does guarantee
its truthfulness and any kind of false information can result in some serious legal actions that can
be taken against a person or group of person (Deuble and et. al., 2016).
Issue: In the case of Jonna Vs Car sales man, Haroon, it is found that sales man Haroon
misrepresented about quality of car to Jonna. Jonna wanted to buy a car for going to job as it is
around 20 miles away from her home. So, she went to car dealer and asked car sales man that she
does not have much knowledge about cars so, they can show them affordable and reliable car. As
sales man knew that she does not have much knowledge so, he showed her a beautiful red car by
saying that it is the most beautiful and reliable car and if she buys this car then it will be her best
decision. So, by listening this and on the basis of Haroon's expertise she buys that car. But within
14 days, that car breaks down. So, there is an issue of misrepresentation of quality of product and
Jonna can seek help by knowing more about misrepresentation and relevant laws.
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Rules: There are several relevant cases in which sales man misrepresented quality of
products to their customers and had to pay fine against this. It is a case of unfair trade, fraudulent
vehicle misrepresentation act as well as fraud act.
As per the false representation of product under fraud act, all cases comes under this
in which an individual misrepresent quality of product with intention of earning profit and make
a gain for himself. In the case of Jonna Vs Haroon, Haroon also represented car in a fraud
manner to Jonna so, Jonna can seek compensation as per this act (Draper, Ibezim and Newton,
2017).
In addition, Unfair trade practice, victim can seek for compensation if defendant sell
their products in an unfair method with the main purpose of promoting sale and supply of goods
and services. One of the main example of unfair trade practice is false representation of goods,
false gifts and false advertising. So, as per the false representation and intention of Haroon of
promoting sale, Jonna can seek for compensation against this (Agrawal, 2020.).
Fraudulent vehicle misrepresentation act 1967 can be defined as misleading statement
of fact in which defendant represent something with misleading statement like this car is so
beautiful and with odometer. In the case of Jonna, Haroon also mislead Jonna by saying that this
red car is so beautiful and if she does not buy this then it would be a shame to miss out the deal
of this month.
Applicability
Unfair trade practice/Consumer protection act 1986: There are several practices under unfair
trade according to which victim can ask for compensation such as: falsely representation that
products are of standards quality and design, falsely representation of any rebuild and second
hand product as new product, representation product by saying that they are approved etc. So,
among all of these, 1 practice is being performed by Haroon as he represented products in a false
manner by saying that it is of a standard quality and design (Section 2(1) in the Consumer
Protection act, 1986. 2018). There is requirement of gathering as much as information or
evidence for claiming against defendant. As per this, any individual can be known as consumer if
he paid, partly paid of promise to pay against buying of products. As per this act, there is a
responsibility of retailers and any sales man to make sure that their products are of standard
quality and if they make any contrary representation regarding products then they will be liable
for unfair trade practice (False representation and its remedies, 2019). There are several cases
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related to odometer tampering in which vehicle salesman sell products with odometer tampering
or wrong meter which mislead buyers as they think that vehicles are of good quality and not too
old. So, in such cases of any misrepresentations related to quality, victim can ask for
compensation.
Fraud act 2006: As per the fraud act 2006, a person is counted in breach if he/she: makes a false
representation with dishonesty and having intension either to make a gain for himself or cause
loss to another. A representation may be implied or expressed. Evidence is required to prove that
the defendants communicated false representation to a person.
Fraudulent vehicle misrepresentation act 1967: There are 4 elements which needs to be
proved for making claim under this act. All elements include: defendants make false statement of
material fact, defendant knew already that representation was false and defendant has intention to
induce the plaintiff to act on a misrepresentation. So, as per all elements it can be said that Jonna
can claim against Haroon as he misleads statement and have intention of making profit. As per
this act, car salesman tell a lie to their customers intentionally with mislead statement as they
have intention of making profit. In many cases, such lies are being told related to the quality of
product. As per this act, compensatory damages are monies that a court awards to an individual
who suffers damages as the result of another person's wrongful actions. In misrepresentation
cases, courts can award compensatory damages (Misrepresentation, 2020). As there was a false
representation made by words so loss of damages can be paid by defendant.
Conclusion: Overall, it can be said that Jonna can seek for compensation and damages against
false misrepresentation and misleading statement by Haroon, car sales dealer because car broke
down within 14 days after buying and after proving car salesman guilty, as per the all rules of
Fraudulent vehicle misrepresentation act 1967, she can ask for damages.
PART 2
Define tort of negligence and what claimant must show in order to bring a successful claim for
negligence
Tort of negligence can be defined as a kind of legal wrong thing which is suffered by a
person because another responsible person fails to predict risk or breach their duty of care which
they owned to others (Cavico and et. al., 2016). Due to tort of negligence, a person can suffer
loss or can undergo legal injury. In most of the situations there exist a contract between two
parties so that even in case of tort of negligence, if an individual faces loss because of another
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individual in the contract then they can claim for negligence. Torts of negligence can be done in
two different ways: First is mode of committing other tors like trace passing and another is
separate tort in itself. Negligence is one of the most common type of tort in which a person is
responsible for being careless and because of their carelessness another person can be harmed or
suffer any kind of loss. For example, in Joanna and Haroon, salesman was careless and did not
point out or specify important details about the car to Joanna, because of which in two week her
car broke down.
In such cases it is important for claimant to prove that someone was responsible for their
loss or expenses showing that they acted carelessly or negligently in one way or the other. There
are various kinds of elements or evidences that are required to be shown by the claimant in order
o bring a successful claim for negligence. In case of injury or loss one cannot directly claim for
negligence. They need to show or provide five main elements of negligence that resulted in
damage or loss. four main elements of claiming for negligence are:
 Duty: Claimant need to prove that defendant owned them duty of care, not be responsible for
harm (Iacobucci and Trebilcock, 2016). For example, in the given case, Joanna need to prove
that the salesman was careless and did not fulfil his duty of care. He was supposed to show a
cheap and reliable car. Not only this on being asked about the red car, salesman was
supposed to provide all the important details related to that car and if there was a possibility
or situation in which car can breakdown. Despite of knowing that she had no idea about basic
specifications and technical details of that car, salesman did not provide her with required
details. Joanna has clearly specified that she wanted a reliable and cheap car and had knew
nothing about that car. So due to this it the main and the foremost responsibility of salesman
to show her only cars that are cheap and care reliable. He should have warned her at the
starting only if they can rely on that car or not. But he was being carless and only focused
upon selling that particular car.
 Breach: Claimant need to provide that violation of standard care resulted in their injury or
loss. It can be due to action or inaction of person who was responsible for their duty of care.
Claimant need to explain in details ways in which duty of care was breached or neglected so
that any kind of unnecessary claim can be neglected (Goudkamp and Ihuoma, 2016). In case
of Joanna, it can be said that it was responsibility of car sales man to provide important
information about car as he had no details of that car. Joanna judge quality of car she
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purchased on the basis of details provided by sales man. So, it can be said that in this case it
is a false representation of product. This false representation of car directly comes under
fraud Act. It was breach of duty as salesman did not provide complete information of car and
as a result overall quality of product was misinterpreted.
 Cause in fact: Claimant need to prove corelation between negligence action that took place
and consequences suffered by the claimant (Hongliang, Chen and Dongyang, 2017).
Claimant need to show that there was a direct or indirect relation between negligence act and
ways in which they face loss because of that act. For example: In Joanna case, if salesman
had initially informed that, red car was not reliable and is not best quality product, she would
have never buyed it and car would not have broken down.
 Proximate cause: Claimant need to show or provide direct link between act of negligence and
result of its action (Luntz and et. al., 2017). If a person thinks a caseless act of negligence of
their duty of care has directly resulted in damage or loss then they are required to prove it.
Proving or showing direct link between negligence and loss can help in successful claim of
negligence.
 Harm: Claimant need to prove and show that due to negligence and carelessness of someone
else they had suffered loss or damage (Luntz and et. al., 2017). For example, in case of
Joanna, she her car broke down only because of carelessness of salesman as he did not pay
attention on her details of cheap and reliable car.
These are four main elements that claimant needs to show and provide in order bring a
successful claim for negligence. Only after showing these elements they can be eligible for claim
and can successfully get a claim. Showing these elements or documents that can help in proving
these elements of negligence can help in successfully claiming for negligence. It can be showed
by contract papers in which terms and conditions, needs and requirements, pre-requisites are
already defined. It can also be provided with the help of email in which requirements have been
defined already and letter of acceptance that can help in identifying requirements accepted by
another person or individual. This can be helpful in identing duty of care that a person has
towards other to whom there are providing product service to.
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PART 3
What is meant by statement ‘A corporation may be defined as a legal entity or artificial person’
and state the main features of artificial personalities.
Corporation means that it is a kind of leal entity which is distinct and separate from its
owners. Rights and responsibilities of corporations are similar to roles and responsibilities an
individual like they can enter into a contract, take loans, borrow money, can be sued, hire
employees, pay taxes and many more (Solaiman, 2017). Due to this it is also termed as an
artificial person. Some times a corporation is also termed as a legal person. All the businesses
use corporations. Some of them do business under their names and some of them under business
names. An artificial personality is prerequisite to legal capacity. It is a prerequisite for a legal
personality to sign an international treaty within their own name. It is important for companies or
businesses that operates under the name of corporation or artificial person to know their rights,
responsibilities, limits in an accurate manner. So that they can understand limits and legal
capabilities of the corporation in a proper and appropriate manner. An artificial person has
various kinds of features. These features help in defining proper and appropriate roles and
responsibilities that are required to be fulfilled by them. Some of the main features of an artificial
or legal person are as follows:
 Artificial person is created by law but have right of an individual like right to be protected
under law, right to property and right to enter into a legal business agreement or contract
(Hildebrandt, 2019).
 Artificial person or corporation does not have a mind and body of its own. It can only act
from other people who are specifically appointed for this purpose. Mostly a corporation or
artificial person is acts or is run by group of stakeholders.
 Corporation has its own life, death of a stakeholder or other persons associated with company
will not affect overall lie of a company. So, it can be said that life of accompany or legal
person is distinct or different rom its members or other person associated with it.
 Despite of the fact that an artificial person is distinct from life of its members but whenever
members or stakeholders of a corporation commits a mistake of mistake done by a company
then in such case, corporation is responsible or held liable for those mistakes or problem. But
all the shareholders of a corporation are equally responsible for the same. According to their
share value and percentage within the company, they are liable for that particular mistake. If
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a corporation has only one owner and do not have many shareholders then that particular
person is solely responsible for the same.
 A corporation can also be sued if they are being treated as an artificial person. Not only this,
they also have legal right to take action against an individual if required. They also have right
to hire lawyer in order to file a legal suit, collect damage. If in any case artificial person is
found guilty, they are either liable to pay fine or can dissolve if found to be done illegal
business or involvement in illegal business- related activities.
CONCLUSION
From the above assignment it has been summarized that both representation and term of a
contract are a kind of fraudulent or negligent that can result in some serious actions to be taken
against person who has committed tort of negligence. If a company tries to develop a contract on
the basis of misrepresentation and due to this a person suffer losses then they can cancel the
contract and claim for damages. But for a successful claim of negligence it is important to show
or prove Some important elements or documents that can help in identifying misrepresentation of
information or issue of negligence or case of carelessness. It has also been concluded that one
cannot directly claim for negligence, but they need to prove ways in which negligence of duty of
care was done doe successful claim. It has also been concluded that corporation is a kind of legal
person who has equal rights and responsibilities as a person. Thy have various kinds of features
that helps in limiting their legal limits in a proper manner.
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REFERENCES
Books and Journals
Agrawal, Y., 2020. Unfair Trade Practices in India: A Comparative Analysis Between the
Competition and Consumer Laws. Available at SSRN 3619075.
Cavico, F.J., and et. al., 2016. The Tort of Negligence in Employment Hiring, Supervision and
Retention. American Journal of Business and Society. 1(4). p.205.
Deuble, R.L., and et. al., 2016. Using Fitts' Law to detect intentional misrepresentation. Journal
of Motor Behavior. 48(2). pp.164-171.
Draper, M.J., Ibezim, V. and Newton, P.M., 2017. Are Essay Mills committing fraud? An
analysis of their behaviours vs the 2006 Fraud Act (UK). International Journal for
Educational Integrity, 13(1), p.3.
Getman, A. and et.al., 2018, July. Ontological Representation of Legal Information and an Idea
of Crowdsourcing for Its Filling. In XVIII International Conference on Data Science
and Intelligent Analysis of Information (pp. 179-188). Springer, Cham.
Goudkamp, J. and Ihuoma, M., 2016. A tour of the tort of negligence. James Goudkamp and
Melody Ihuoma,‘A Tour of the Tort of Negligence’(2016). 32.
Hildebrandt, M., 2019. Legal Personhood for AI?. In Law for Computer Scientists and Other
Folk. Oxford University Press.
Hongliang, Z., Chen, C. and Dongyang, S., 2017. On the Judicial Application of Predictable
Rules in the Tort of Negligence. Journal of Insurance Professional College. (2). p.16.
Iacobucci, E.M. and Trebilcock, M.J., 2016. An economic analysis of waiver of tort in
negligence actions. University of Toronto Law Journal. 66(2). pp.173-196.
Luntz, H., and et. al., 2017. Torts: cases and commentary. LexisNexis Butterworths.
Solaiman, S.M., 2017. Legal personality of robots, corporations, idols and chimpanzees: a quest
for legitimacy. Artificial Intelligence and Law. 25(2). pp.155-179.
ONLINE
Section 2(1) in the Consumer Protection act, 1986. 2018. Online Available through: <
https://indiankanoon.org/doc/1463276/>
False representation and its remedies. 2019. Online Available through: <
http://lawtimesjournal.in/odometer-tampering-and-its-remedies/>
Misrepresentation. 2020. Online Available through: <
https://legaldictionary.net/misrepresentation/>
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