Business Law Report: Analysis of Legal Rules for Business Transactions

This business law report provides a comprehensive overview of several key legal concepts. It begins with an examination of implied terms relating to the sale of goods and services, followed by an evaluation of statutory provisions concerning the transfer of property and possession. The report then ...Read More

Business law

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Legal rules of implied terms relating to the sale of goods and supply of services...............1
1.2 Evaluation of Statutory provision on the Transfer of Property and Possession....................2
1.3 Statutory provisions on buyer's and seller's remedies in sale of goods contracts.................3
1.4 Product liability legal rules and statutory provisions for faulty goods................................3
TASK 2............................................................................................................................................4
2.1 Types of credit agreements...................................................................................................4
2.2 Legal rules on termination rights and default notices for Ben as a consumer......................5
2.3 General features of agency and difference between types of agents....................................5
2.4 Rights and duties of an agent................................................................................................6
TASK 3............................................................................................................................................7
Covered in PPT...........................................................................................................................7
TASK 4............................................................................................................................................7
4.1 Different forms of intellectual property................................................................................7
4.2 Principles relating to protection of inventions through patent rights....................................7
4.3 Principles regarding copyright protection.............................................................................8
4.4 Comparison and contrasting the prevention of trademarks and business names..................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Legitimate bodies are engaging in designing an appropriate norms, beliefs, policies, rules
and regulations which is followed by entire corporate world in order to run an association in
effective manner. Their main objective is to control the probabilities of wrongful conducts and
misinterpretation as it may hamper the entire surroundings (Bagley,2010) . In fact, every small
and multinational companies are following legal procedures for managing their business
activities in ethical manner. Thus, assignment is going to highlight various acts that is used by
buyer and seller while engaging in a legal contract. For example; sales of goods act section 15 (a)
(b) henceforth. Moreover, agent are playing a very eminent role in resolving issues between
various individuals by considering necessary facts or figures. It means, various types of broker,
their rights and duties towards principal is also outlining in this project. Apart from this, major
role of competition commission and detail description of anti-competition is going to mentioned
in report. At last, appropriate description of intellectual properties and laws related to its
protection are further drawn in this assignment.
TASK 1
1.1 Legal rules of implied terms relating to the sale of goods and supply of services
In the said case Ben's car was getting incompetent to work properly so he decided to buy
a new one at the beginning of the year. Later, he purchased a second hand Blue New model
Passat 1.8 for £ 10000 only, from a seller. Initially the car was functioning as per his
expectations but when it was taken on the hill it stood still and its engine got blocked. Ben then
decided to return it to the seller, also he found that the car was used as a taxi by the another
owner which he was not being informed by the seller (Bodie, Kane and Marcus, 2014) .
According to the section 14(2) of the Sale of Goods Act 1979, it is essential that the
goods that are being supplied by the seller should be of satisfactory quality, as an implied term.
So it was necessary for the seller to disclose all the information of the vehicle. The question of
law arises due to the clause signed by the Ben, according to which the seller is not liable for
whatsoever description is made regarding the car and it is the responsibility of the buyer to check
before buying. Now, according to the section 9(4) of the Consumer Rights Act 2015, implied
term should not include those things which makes the quality of goods undesirable, which has
been informed to the buyer or is up to his examination. Clause 9 made by the seller is an
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exclusion clause which immune the seller from any responsibility related to the car. According to
the section 13 (1) of Unfair Contract Terms Act 1997, such term is applied to business liability,
if the damage is caused because of negligence of the buyer then he shall be responsible for that,
but in this case the information was hidden which ended up as sole reason of improper function
of he car. The seller would have no responsibility if the problem was due to the negligence of
Ben but here the car was sold by hiding its real condition. If Ben has been given such
information then he might have not bought It (Crane and Matten, 2016) .
1.2 Evaluation of Statutory provision on the Transfer of Property and Possession
Possession is one of the significant concept in property law. It is not a right but a legal
aspect which brings the enjoyment of property by its title holder. It requires control and
intension. There must be a contract of transfer of property without a valid contract it is null and
void. Possession can be obtained by a one-sided act by which factual control is established. This
can take the form of apprehension (taking an object not in someone's possession) or seizure
(taking an object in someone's possession). It can also be obtained through a two-sided process
of handing over the possession from one party to another. The party handing over possession
must intend to do so. A temporary transfer of possession is called a bailment. Bailment is often
regarded as the separation of ownership and possession. For example, the library continues to
own the book while you possess it and will have the right to possess it again when your right
comes to an end. A common transaction involving bailment is a conditional sale or hire-
purchase, in which the seller lets the buyer have possession of the thing before it is paid for. The
buyer pays the purchase price in instalments and, when it is fully paid, ownership of the thing is
transferred from seller to buyer ((DiMatteo, 2010).
Transfer of property and tittle is an essential factor, when a person purchase any property.
It is a binding upon the parties which is executed by a contract which can be expressed or
implied. In this case the offer was made by the seller by an advertisement and Ben accepted it
with an amount of money as consideration. After the acceptance it is the duty of the seller to
transfer the good within the prescribed time and also it is the liability of buyer to accept such
good.
The car was driven as a taxi its real owner should be the taxi driver and the car was sold to Ben
by concealing the information of its genuine owner. According to the section 21(1) of the Sale of
Goods Act 1893, the buyer obtains the tittle of the goods unless it has been challenged by the
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owner regarding the authority of the seller to sell it. So, in the said case the ownership or
possession has been transferred to to the Ben because the seller has not been challenged for it
authorisation to sell the car by its real owner (Eren and et. al., 2012) .
1.3 Statutory provisions on buyer's and seller's remedies in sale of goods contracts
In the sale of goods if any damage is occurred from the part of buyer or seller, there are
certain remedies to provided to them. A seller is open for two types of remedies personal and real
remedies.
A buyer can be sued by the seller for the not accepting the good and for the contract
price. As mentioned in the section 49, the seller can institute a suit against the buyer if he failed
to make payment in specified time. Also, in section 50 it is said that a buyer can be sued for not
accepting the goods. Application of these section is done by the court (Charter v Sullivan,
1955).
When the seller is not being paid then he can lien, stoppage in transit and resale the good.
According to the section 41 to 43, lien has been described as a right to retain possession of
goods, until the payment is not made by the buyer. Also it is the right of seller to stop goods in
transit to the buyer as mentioned from section 44 to 46. a seller has all right to resale the goods
as per section 47 and 48.
Similarly, a buyer has been given with some remedies such as he can reject goods as per
section 11 and 15A if the seller is in breach of contract (Foss and Knudsen, 2013) . If the seller is
failed to deliver the goods then he can sue him under section 51 and also for the damages
occurred due to the breach of warranty as described under section 53. additional rights has bee
given to buyer as a consumer as per the Sale and Supply of Goods to Consumer Regulations
2002.
1.4 Product liability legal rules and statutory provisions for faulty goods
According to tort, there are three situations under which a person is responsible for
circulating faulty goods in production, negligence, strict liability under Part I of the Consumer
Protection Act 1987 (herein after, CPA 1987) and breach of statutory duty under Part II of the
CPA 1987.
The seller and buyer, individually liable for the negligence done by them. It is the duty of
both to take due care of their responsibilities (Stennet v Hancock and Peters, 1939).
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Part I of the CPA 1987, added a strict liability, according to which the seller is liable for
the damage caused by the product unless a defence is given as-per section 4. it is essential that
claimant must prove that he has suffered damage, product was faulty and the damage is caused
by that faulty product. The defect has been described under section 3 as the product does not
meet the expectation of the buyer. A liability can not be limited or excluded by any contract
term, notice or any provision in an agreement or contract (Grundfest, 2010) .
The breach of statutory duty results in creation of criminal offence as per the Part II of
CPA 1987, it also authorise the Secretary of State to make safety rules in respect of the specified
goods and to provide a civil remedy for the loss occurred.
In the case of Ben, the accident is cause due to the defective product. The seller shall
posses criminal liability and they are entitle for claim as remedy. The losses they have incurred
shall be given by the seller and also they shall be provided with civil remedy.
TASK 2
2.1 Types of credit agreements
According to given case study it has been understood that Ben's is engaging in a healthy
contract for buying specific products by acquiring loan in the form of credit in which complete
amount is paid after few duration. Basically, if a person is gaining a cash loan or involving in
some other financial plan then it is said as credit agreements. Beside this, mainly credit contract
are falls under consumer credit act which offer some special rights to the credit holder.
Moreover, an agreement is falls under specific act that is regulated agreements (Johnson, 2013) .
Basically, number of credit agreements are identified that is described as follows:-
 Small agreements:- If an individual is acquiring loan less that 15000 euros or for paying
a day loan and micro are falls under this type of contracts. In fact, interest of these type
of agreements are very low due to minimum amount.
 Intermediate:- Amount falling in between 15000 to 250000 euros are consider as
intermediate loans because these type of contracts are differ from small and large as it is
highly moderate. For instance; finance for vehicle, personal loan etc.
 Large agreements:- Contracts for long term is falls under this agreements because loans
of large amount and funds are a part of this agreements. Capital involve in it is more than
250000 euros such as; home loans, development of any personal infrastructure and so on.
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Apart from this, various other type of credit agreements which is used are enhancement
credit loans which is used by corporate firms for earning maximum profit. Secondly, public
interest credit is used by government for supporting public from natural disaster. It means Ben's
is using intermediate agreements for his vehicle loan (Kinicki and Kreitner, 2012) .
2.2 Legal rules on termination rights and default notices for Ben as a consumer
Ben's is going through major problems after buying car as the product is get damaged and
limited speed is set by seller which create an obstacle for purchaser while using it. Basically,
number of legal rules and regulation is set by authorities to prevent consumers from various
misused. Thus, according to law Ben have the authority to terminate the credit agreements as he
is not receiving the correct product as per information describe in a magazines. As per consumer
protection act 1974, this activity can easily use by Ben as a client in order to resolve legal
problems. It means if Ben is cancelling the contract then he might send a notice which is known
as a default one and it should be given in a written form. If an individual is facing a problem
while paying back his dues then borrower must send arrears notice. Additionally, sent a financial
conduct authority information sheet but it is not required if there is a presence of green deal plan.
Basically, seller is sending a default notice to FCA information sheet which is acquired only
through website of FCA that is www.fca.org.uk. Along with this , necessary information is
available in this such as; drawbacks of not fulfilling the loan, outcomes and so on. Moreover,
Ben's have a right to acquire help from citizens advice bureau in their credit agreement (Mann
and Roberts, 2011) .
2.3 General features of agency and difference between types of agents
Agents are a person whose main objective is to act on the behalf of principal in juridical
court. Their main objective is to support their client from legal problems in proper manner by
showing various necessary terms and conditions. Some of the major features of agency are
described as follows:-
 Aids in reducing conflicting situation from two parties by clearing all the hidden terms
and conditions.
 Act on behalf of principal for supporting them in tribunal.
 Make all the clear points.
 Create effective communication amongst various members.
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Agent is a person who is responsible for various rights that is given by principal in order
to take part in various types of agreements. Thus, some of the major types of agents are -
 Special agent:- If an individual is hiring a broker for some special or specific purpose
then it is known as special agent and assigned particular work instead of another one.
 General agent :- They are having numerous of rights and engaged in a high range of
transaction on the behalf of principal.
2.4 Rights and duties of an agent
Agent is a person whose main objective is to perform job role on the behalf of principal
to reduce the possibilities of mistakes and errors (Nichols, 2012) . Along with this, broker is a
legal member and having accurate knowledge about the specific legal terms and conditions.
Thus, it has been understood that agent is having some special rights and duties of an agent
which are described as follows:-
Some of the essential rights are-
 Remuneration:- Agent have authority to acquire remuneration in several forms such as;
wages or salary as well as commission also if broker is a independent professional.
 Indemnity:- A person who is acting as an agent have the right to be indemnified by the
principal due to any loss or liability.
 Third parties:- If there is a presence of any major disputes or issues between third party
and broker whomsoever is entering into agreement in place of principal then in this
situation agent have the right to come out from this situation. Whereas, parties can sue
each other directly.
Duties of an agent are-
 Obligation of caring and taking care of their principal by doing several activities.
 Needs to be loyal towards their chief by accomplishing their job role in appropriate
manner.
 Obliged to manage property in effective manner (Robson, 2010) .
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TASK 3
Covered in PPT
TASK 4
4.1 Different forms of intellectual property
Intellectual property rights or IPR is related to the rights provided for the innovation of creative
ideas. Primarily it is comprise of patents, copyrights, industrial design rights, trademarks , plant
variety rights, geographical indications, trade dress and in some trade secrets.
Patent is right given by the governing body to an inventor or creator for restraining others from
copying, using, selling and incorporation the creation for a limited time. In order to enhance the
knowledge patent owners are obliged with disclosing the information about their creation (Siedel
and Haapio, 2010) .
Copyright is generally given to a creator for his original work, it includes the form in
which they are made.
Industrial design right are given for the protection of visual design which is consist of
creation of a shape,its pattern an its structure. It is done to increase the value of product.
Trademarks are given to recognise sign, design or expression which makes a product
unique in its segment.
A trade secret is an instrument of information which is not often known, in order to be a
step ahead from the competitors in the market.
The main object of providing these rights is to motivate the innovation of goods for
customer. It is usually given for a limited time period (Snyder and Deaux, 2012) .
4.2 Principles relating to protection of inventions through patent rights
Number of entrepreneur are coming with various types of inventions for gaining
maximum profit by satisfying the needs or demands of distinct clients. It means, number of
advantages are identified which includes number of things such as; patent offer best facilities to
other person for using it in order to acquire maximum benefits by attracting clients with
innovative ideas. Thus, legal bodies are designing various laws and orders for preventing patent
rights are-
 Sue another person for using it without acquiring permission.
 Charge penalty in case of fraudulent activities.
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4.3 Principles regarding copyright protection
Infringement is the violation of Intellectual property laws in the context of patents,
copyrights and trademarks. Patent infringement is result of selling of a patented product or
creation without the prior permission of its holder. Selling or manufacturing of the product,
which is under patent period, by the other is generally treated as Patent Infringement.
On reproducing or performing a work a work without the permission of the holder is a
copyright infringement, it is also known as piracy and strict laws are made for its violation.
A trademark infringement is violation of using a trademark similar to a trademark owned by
another party (Spalding, 2011) .
The principle on which it is established is to provide legal immunity to a person for his
innovative creation. Also it is in the favour of public policy and human rights .
4.4 Comparison and contrasting the prevention of trademarks and business names
By analysing both the terms it has been understood that business names and trademarks
are totally different from each other.
Business name Trademarks
Registered as a trademark.
It is seen as a descriptive term
Trademarks are showing the creativity of an
organization and particular person.
It has been understood that business names and trademarks are highly distinctive in
nature as organization name is strictly registered initially as well as it denoted in market by its
specific name (Swartz, Cole and Shelley, 2010).
CONCLUSION
From the above report it has been summarized that various laws and norms are designed
by legal authorities for preventing common people from getting misused. Their main motive is to
create a nation free from any type of damages and exploitation. Basically, number of acts was
identified in the above assignment which helps Ben's in various complicated situations by taking
corrective measures. Consumer protection act, employment acts, sales of goods acts, transfer of
property etc. are used in several legal problems for controlling the probabilities of mistakes.
Along with this, several types of credit agreements are also determined in order to facilitate
consumers with appropriate services which helps them while buying specific goods or services.
Hence, it has been understood that laws of corporate world are playing a very eminent role in
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enhancing the performance of an organization. It means company needs to design their policies,
procedures and plans as per legal formalities which is framed by authorities to resolve various
conflicting situations. Lastly, overall report is focussing on major norms for improving company
performance in various manner.
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REFERENCES
Books and Journals
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.
Mann, R.A. and Roberts, B.S., 2011. Smith and Roberson’s business law. Cengage Learning.
Nichols, P.M., 2012. The business case for complying with bribery laws. American Business
Law Journal. 49(2) pp.325-368.
Robson, R.A., 2010. Crime and punishment: rehabilitating retribution as a justification for
organizational criminal liability. American Business Law Journal. 47(1). pp.109-144.
Siedel, G.J and Haapio, H., 2010. Using proactive law for competitive advantage. American
Business Law Journal. 47(4). pp.641-686.
Snyder, M and Deaux, K., 2012. Personality and social psychology. In The Oxford handbook of
personality and social psychology.
Spalding, A.B., 2011. The Irony of International Business Law: US Progressivism, China’s New
Laissez Faire, and Their Impact in the Developing World.
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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