Business Law Report: Sale of Goods, Credit, and Intellectual Property

This business law report provides a detailed analysis of various legal aspects relevant to business operations. It begins with an examination of the Sale of Goods Act, exploring the legal rules concerning the sale of goods and supply of services, including the implications of product descriptions, delivery, and fitness for purpose. The report delves into the legal rules regarding the possession and transfer of property, evaluating the rights and responsibilities of buyers and sellers. It assesses buyers' and sellers' remedies in case of contract breaches, including product liability provisions and consumer credit responsibilities, particularly termination rights and default notices. The report then distinguishes between different types of credit agreements and agents, outlining their rights, responsibilities, and the legal framework surrounding monopolies, anti-competitive practices, and intellectual property. It examines the role of the Competition Commission, the protection of inventions through patent rights, copyright protection, and the comparison of trademark and business name protection. The report concludes by summarizing the key principles and legal provisions discussed, offering a comprehensive overview of business law principles. The report covers the UK context and relevant legal acts and regulations.

BUSINESS LAW
STUDENT NAME:
STUDENT ID:
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Table of Contents:
Introduction:....................................................................................................................................3
Task 1...............................................................................................................................................3
a) Applying the legal rules related to the Sale of Goods and Supply of Services Act....................3
b) Applying the legal rules regarding the possession and transfer of property...............................4
c) Evaluating the legal provisions on buyers’ and sellers’ available remedies in case of breach of
contract by either party....................................................................................................................4
d) Applying product liability provisions in case of a certain damage to the products with
reference to case 3...........................................................................................................................6
e) Responsibilities under consumer credit with relevance to termination rights, rules and default
notices:.............................................................................................................................................6
Task 2...............................................................................................................................................7
a) Distinguishing between different types of credit agreement.......................................................7
b) Distinguishing between the various types of agent.....................................................................7
c) Rights and responsibilities of an agent:.......................................................................................8
d) Outlining the monopolies as well as anti-competitive practices in UK......................................9
e) Explanation of the role of competitive commission with the conditions of monopolies as well
as anti-competitive practices and the fair trading office of UK.......................................................9
f) Definition of the dominant positions inside the range of common market of EU.....................11
g) The implementation of the exemptions of EU to anti-competitive practices potentially..........11
h) Identification of varied types of Intellectual property including examples...............................12
i) Outlining the principles related to the use of patent rights and secure infringements to protect
inventions:......................................................................................................................................13
Task 4.............................................................................................................................................14
a) Description of the principles related to copyright protections and breaching the same:...........14
b) Comparing the protection of trademarks and protection of business names:............................15
Conclusion.....................................................................................................................................16
Reference Lists:.............................................................................................................................17
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Introduction:
Before starting a business, it is essential to have the knowledge of laws on business in order to
help in operation to run a business without any kind of ignorance. Different legal rules related to
Sale of Good Act and Supply of Services has been discussed in order to identify the statutory
areas involved in case studies. It is necessary for the borrowers to have the idea and details about
all the terms and conditions before applying for loans. The efficiency of the credit agreement and
the types of agents with their rights and duties in the business world for development purpose has
been studied here. The protection of trademarks and business authority is essential in-laws for
the growth of a company. The principles related to the protection of inventions by patent rights,
copyright protection, and infringement has successfully discussed in this study.
Task 1
a) Applying the legal rules related to the Sale of Goods and Supply of Services
Act.
According to the Sale of Goods Act (1979), the goods that are promised to be sold must match
with the description given for that particular product and must be satisfactory and fit for the
service that it is deemed to perform. In the case of delivery of the product, it must be handled
with care and delivered to the respective customer within the stipulated time. In case 1 the
implied rule (S13) was not followed as the delivery man broke the product during its shipping
process. However, there was no problem as far as the delivery time is concerned. (S14). In case
2, the product matches the description and was qualitatively fine. However, there was casualness
in the behaviour the delivery man, as the product was left outside without anyone receiving it,
after which it got stolen. As stated by (Dias Simões, (2017, p.161), the customer paid the price
for the fitting which was not accomplished and she is liable for a refund. In case 3 the rule of S13
and S14 were followed. At the outset the product matched the description and was supposed to
be fit, but, unfortunately, it failed the purpose.
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According to the Sale of Goods Amendment Act (2012), if a product is sold defective at the
outset or any fault occurs within the first six months of purchase, the customer can claim the
product to be sold as a defective piece. Mrs. Smith is very much liable to return the product or
ask for a refund (case 1 and 2).
b) Applying the legal rules regarding the possession and transfer of property.
According to the section 17 of the sale of Goods’ Act, Section 29(2), the product must be
supplied to the customer within the allotted time and place (business place, residence or
somewhere else). In case 1, 2 and 3 the above rule was followed. According to the rule of
acceptance the buyer has accepted the desired goods and intimidated it to the seller (case 1, 3)
but in case 2 Mrs Smith, even if initially agreed to pay for the desired product, including its
delivery and fitting charge, the carpet was delivered when there was no one there to receive it.
The product got stolen, before she could get it, accept it and intimidate it to the seller. There was
a definite breach of the contract as in the first case the product was broken during the shipping
process, in spite of the fact that the product was fine at the time of signing the contract and Mrs
Smith had rightfully agreed to it. In accordance with the terms of the contract (S27) the seller
must deliver the product to the customer in hand and she must accept and pay for the same.
However, in case 2, the carpet was delivered in the absence of the customer and left unattended,
which led to its theft.
c) Evaluating the legal provisions on buyers’ and sellers’ available remedies in
case of breach of contract by either party.
According to the Rights and Remedies, the consumer must be satisfied with the product,
including its quality, description and price. The above rules fit in case 1,2 and 3. If at any time of
sale, there is a fault in the product, the consumer is liable to complain. In case 1, the hairdresser
equipment was already broken before it could reach the customer, in case 2, the carpet was left at
the doorstep unattended, only to be taken by an unauthorised individual. Even if there was no
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fault of the product per say, there was a breach of contract and fake promises were made. In case
3 the hair straightener caught on fire and was damaged in its first use. In all these cases Mrs
Smith was liable to complain and ask for a refund. In the case of 2 the customer is entitled to
receive remedies, including compensation or bringing the contract to an end, as the seller has
failed to perform something which he was supposed to. Buyers must be given some time to
examine the product, and reject the good and ask for a refund.
In case 2, since Mrs Smith did not get the time and opportunity to check the carpet, she could
definitely reject it and ask for a refund. In case 1 again, there was no time for Mrs Smith to
examine the product because it was already broken before it could reach her, hence, this time as
well she was liable for refund. The customer has the right to claim for compensation in case of
damage of product or of any sort of losses, like in case 3. As mentioned by Holub and Mitchell,
(2017, p.28), the compensation may come in the form of cost of replacement of a product or its
repairment. In a case where there is no clause of replacement or repair, there is a possibility of an
alternative remedy of full or partial reduction of price. According to S51 the seller neglects the
proper delivery of goods, the buyer can take an action, just like in case 1 and 2, where the
product breaks from the manhandling and is left unattended respectively. Customers have an
approachment right to the seller regarding any product whatsoever, six years from the date of
purchase. So if any product is damaged or has failed to live up to the mark, Mrs Smith can
complain or approach to the seller (case 1, 2 and 3). During these six years the sellers have to
deal with the customer and inform them the lasting time of the product.
On the opposite side, if the customer has received the product within the mentioned time, and
was in its proper form, but still refuses to accept or pay the required amount, the seller has the
right to take an action against him.
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d) Applying product liability provisions in case of a certain damage to the
products with reference to case 3.
According to the Product Liability Law, the suppliers, distributors and retailers are liable for any
damage or injury, including death caused by any product, under the Common Protection Act. as
opined by McCormack et al. (2017, p.11), the products must be safe and usable by buyers in the
first place, unlike in case 3. To prevent any accident, the sellers, producers or manufacturers
must warn the customers about the risk, must ensure that the buyers understand the potential risk
that they may face and take action if any problem arises. In case the product bursts or in a case of
injury, like in case 3, the one responsible is liable to be sued, imprisoned or punished. The
responsibility not only befalls on the importers, manufacturers or businesses that supply their
own branded goods, but also on sellers, and hence, they are as much prone to imprisonment as
the others.
In case 3 Mrs Smith can begin its court procedure three years from the date of injury or sue up to
10 years from the date of injury. But since her daughter was safe the rule does not apply in her
place.
e) Responsibilities under consumer credit with relevance to termination
rights, rules and default notices:
In accordance with the termination rights, unless the entire payment procedure has been made,
the credit is considered to be the legal owner. By using a court order, implementation of a credit
agreement against a consumer is possible which helps them to stop the procedure of repaying a
loan in case of loss of job. As stated by DiMatteo, (2016, p.21), the debtor is free to buy or return
the product to the creditor after the end of the agreement. At the time of hire purchase, agreement
is made containing the condition that unless the final installments are paid the debtor is not the
owner of the goods and the lender possess the power to take back the goods in case the debtor
fails to make the payments. The proposed credit agreement must be explained thoroughly to the
borrowers by the lenders while taking the loan. If the terms of the agreement are broken by the
borrower the account is considered to be default. The creditor at that point feels that the borrower
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is incapable of repaying the money. In the case scenario, Peter is not able to pay further due to
loss of job but he hopes to get another job soon for restart the payment. It would be wise for
Peter to inform the truth to Alf & Sons so that they do not take any actions or take back the due
to not paying the installments on time and also not informing about the issue. The creditor with
respect to the default account can take actions of either taking back the car or serious legal steps.
Task 2
a) Distinguishing between different types of credit agreement
According to Keskiner and Crul, (2017, p.283), a credit agreement is a detailed document which
briefs about all the terms related to the given contract. Loans of different types have credit
agreement that needs to be signed and approved upon by both the creditor and debtor. Different
types of the credit agreement and its different characteristics are discussed below:
Conditional Sales Agreement: This type of agreement deals with the sales of products to its
customers where a seller gets money for goods while a buyer gets the goods. Here an agreement
is made in order to pay the installments. Ownership of the products gets transferred to the buyer
after the installments are cleared which is termed as receiving good title.
Credit Sale Agreement: As mentioned by Kaya and Tuncer, (2017, p.149), in this type of
agreement, as soon as the agreement gets approval with payment through installments, the
transfer of ownership takes place. Unless the supplier of the product agrees, the products cannot
be given back. With a credit sale agreement, the products purchased are supplied and owned by
the marketer who sells them. In this respect, the agreement is with the marketer.
Hire Purchase: In this type of contract, until the full amount is paid the buyer does not carry
ownership and will lease the goods. Using this agreement while purchasing involves a
concurrence in order to pay the cost of what is bought in installments.
b) Distinguishing between the various types of agent
According to Funk and Hirschman, (2017, p.32), in the commercial activity, agents play an
important role in order to represent the interests of individual principals for conducting of the
business. Agents can be classified in different ways which include the following:
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Specialist agents: This type of agents is appointed on the basis of particular tasks where the
agency lasts for period of time. Examples of specialist agents are:
• Estate agents act for the dealer of the property with the capacity of finding a buyer.
• Auctioneers act as agents for the seller in order to sell the products on behalf to the
highest applicant and act as an agent to the buyer once sale has been stated.
• Brokers act as intermediaries with the duty of introducing clients enabling them to run
their business.
General Agents: As mentioned by Micklitz and Durovic, (2017, p.69), this type of agent has the
power of performing all the acts related to business in accordance with the interest of his
principal.
Co-Agents: Two or more person is appointed to jointly act as co-agents with the concurrence in
the effort of their power unless situations reveal any motive to the contrary.
Sub-Agents: This type of agents under the command of the original agent is employed and
performs accordingly in the business of the agency.
c) Rights and responsibilities of an agent:
According to Brown et al. (2017, p.397), the duties of an agent are described in the following:
● As per the interest of the principal, an agent needs to perform accordingly. The
commanding power remains with the principal itself.
● Within the authority assigned to the agent by the principal, an agent needs to act on the
given instructions.
● With a decent amount of care, an agent needs to perform all his responsibilities. All kinds
of issues must be avoided with respect to his interests.
● In accordance with all the instructions of the laws provided by some upper authorities, an
agent needs to maintain the conformity.
As stated by Voiculescu, (2017, p.227), the rights of an agent discussed are the following:
Retainer rights: The amount which is paid to an agent by the principal, an agent has the right to
deduct an amount from the amount which he has developed through his performance.
Indemnity rights: In case of any sufferings caused by an agent, this right states that the
principal will be answerable to him.
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Lien right: If the legal duties are not fulfilled, an agent has the power of maintaining the
ownership of the property.
Remuneration: For all the services the agent has provided, he is legally labeled to receive
payments.
Stoppage in transit: As opined by Shackelford et al. (2017, p.115), in case the buyer of
products becomes insolvent, an unpaid seller has the right to stop in terms of transition. It is said
that as long as they are in the transition process, an agent may resume the occupancy of the
goods and may absorb them till the payment procedure is made.
d) Outlining the monopolies as well as anti-competitive practices in UK
Monopolies in UK are those which has a market share of more than 25% with a lot of power in
the market. According to Burton, (2017, p.69), in monopolies, there is only a supplier and the
products have less or no substitutes. Monopolies include the Britain Post office.
Whereas anti-competitive practices are those which includes illegal deals and agreements among
businesses in a particular market to join forces against the consumers , competitors or the
suppliers which can reduce competition in the market. As stated by Wilson, et al. (2017, p.448),
this can be done by either raising the prices up or down which will harm the consumers and
competitors respectively. Anti competitive practices also include Pricing strategies which can be
done by making the market unappealing or by making the entry cost too high. This strategy
usually is used to restrict the entry of a competitor. There is another way to damage the sales of a
particular company by forcing the suppliers to stop supply of products or by forcing the retailers
to place the products of certain company where buyers usually don’t take a look at or to be clear
these products are used out of eye level reach.
e) Explanation of the role of competitive commission with the conditions of
monopolies as well as anti-competitive practices and the fair trading office of
UK.
● Competitive commission (CC) generally look after appeals made against the rules and
regulations formed by the OFT (Office of Fair Trading).
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● The CC also looks after mergers or companies and its working procedure. The CC also
includes investigation of markets and report to the secretary of the state based on its
findings Singer, (2017, p.17).
● The CMA (Competition and Market Authority) which has taken the responsibilities of
CC and OFT, helps in the development of competition both interior and exterior parts of
UK.
● The CMA also investigates some markets where there is some suspicious matter taking
place which has its impact in multiple markets. The participants of the market also can
take steps if they have any issues and the CMA looks after that.
● The CMA carries or can carry on their investigation as per the Enterprise Act(2002). The
mergers which sometimes can lesser the competition should try to prevent these between
them during the investigation process.
● Investigation of personal or individual businesses to observe if they have violated any
anti-competitive agreements prohibited by the UK or EU.
● Criminal proceedings are brought against them who does Cartel Offences under the act
EA02.
● Prohibiting the unfair trading practices by bringing the criminal offences under The
Consumer Protections from Unfair Trading regulations(CPRs)
● CMA regulates the license policies, price arrangements, other regulatory methods
including legislature of specific sectors like gas, electricity, aviation etc.
● The CMA in case of mergers and monopolies look after the company economy, market
share, development of the company, undertaking of different orders and local
monopolies.
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f) Definition of the dominant positions inside the range of common market of
EU.
As mentioned by Bisalski et al. (2017, p.9), the dominant positions are those which can be
achieved by monetary strength. The people acquiring the dominant position are usually immune
of the competitors and the the consumers. People in the dominant positions are not only
economically strong but also have a greater share of the market. Compared to others, their
product quality and availability is better and in greater demand. Survey reports suggest that
dominant companies or people give a better sales rate and show a better business. As mentioned
by Dove and Bryant (2016, p.263), the dominant positions are not only identified by the portion
of market share but also the satisfaction of consumers and behaviour of other companies.
Companies or positions including more than 40% share are considered as dominant. It is taken
into account that if there is any other conditions or barriers restricting the entry of certain
companies in the market.
g) The implementation of the exemptions of EU to anti-competitive practices
potentially
According to Seligson, (2017, p.21), the EU makes sure that exemptions are made in the building
of a marketplace in the interior of the country. The main motive is to develop and promote
business within member states and different parties without any issues or problems. Article 101
which states to prohibit restrictive agreements and article 102 which prohibits the unfair use of
dominant positions are the major targets of Competition law. These laws are made to conduct
certain business without any hassle in business and to conduct businesses fluently. There are four
conditions to be followed in order to satisfy this. They are:
● There should be development in the goods production and economic process.
● There must be fair share of benefits available to the consumers achieved as a result.
● The elimination of certain companies from competition by any agreement should be
prohibited.
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● There are certain rules and regulations which are necessary to avoid the achievement of
these goals.
h) Identification of varied types of Intellectual property including examples.
There are two types of Intellectual property (IP), Automatic and Application.
● Automatic type of IP include Design right, copyright and patent mark.
As stated by Frankel, (2016, p.91), design right is applied automatically to particular design and
protects it for 10 years after it was sold or 15 years after the design was created. The rights of the
owners are reserved in this case and a new design or impression should be different from it to be
qualified. If the designer commissions anybody for the design then the rights differ.
Copyright is usually used to protect certain documents which are creative and unique in nature.
The copyright life can be different from 50 years for artistic and dramatic works to 25 years for
photographs. Copyrights prevent others from stealing,copying or posting protected documents in
the internet. If there is any such issue the owner can recover the exact file from the damaged file
and also can sue the person whole stole or damaged the work.
Patent marks are rights offering protection to certain inventions of a country and this works on a
country basis. Patent right excludes important schemes, games, computer process and
application, business. Patent rights are very useful for protecting technological discoveries such
as medicines, tools, certain parts of machine and so on. The patent rights in UK takes 3 to 5 years
to be granted through Intellectual Property Office in UK.
● Applicable type includes the registered marks like the Trademarks and registered designs.
Trademarks are those signs or symbols on the products which distinguishes one product from the
other. As mentioned by (Perry-Kessaris, (2016, p.31), trademarks are dated back to ancient times
when people used to put their sign on a certain product or products. Thus every product in the
market differs from each other in the field of trademarks and anything made similar is considered
as duplicate. The process of registration takes almost 4 months if no one has any objections and
it lasts for almost 10 years. There are two types of trade names registered and unregistered
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trademarks. The trademarks are used to protect the brand name of any company and if anyone
copies or steals the brand name, then the owner has the right to take legal actions.
As stated by Landry, (2016, p.165) registered designs are those which are used to protect articles
containing certain design, shapes, patterns. It takes almost a month to register this and this
process provides protection rights up to 25 years. The conditions on which this registration relies
are the product should be a new one, should not use the designs or patterns of protected emblems
like the rings of Olympic and the content should not be offensive in nature.
i) Outlining the principles related to the use of patent rights and secure
infringements to protect inventions:
● Lawrence et al. (2017, p.68) opined that the stand alone nature of certain things can be
protected by the invocation of Patent Laws. To take into explainable examples, innovative
machines or its parts, the formula of newly discovered medicines, etc can be protected. Patenting
laws gives one the power to protect such technological inventions and products.
● An invention is protected by a patent and hence, grants the invocation of legal actions
against the pirated use of the invention which includes anyone who tries to duplicate the item, or
tries to sell or obtain the invention without prior permission of the patent holder. Even using the
item without permission or consent is taken into account.
● For an item to be protected by patent laws in the UK, an application has to be made in
account of the Intellectual Property Office (IPO). Generally, a time period of 3 to 5 years is
required for the grant of patent laws to an item (Buss and Peukert, 2015, p.981).
A patent is valid depending on the following:
● When the item is new and original, i.e. an unusual novelty.
● The item being not obvious to someone who is skilled in the discussed art, i.e. inventive.
● The item being applicable in industrial uses.
Exclusions of patentability includes playing games, sets of methods or rules to perform mental
acts, doing business, crucial schemes and computer programs (Bentley and Sherman, 2014, p.
44).
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The infringement of a patent is done in the UK by performing certain acts without the consent of
the patentee, which includes:
● Sculpting, discarding or proposing to discard, holding possession of a patented item or an
item acquired by a direct process of patent procedures or utilizing it.
● Making use or offering to make usage of the patented process in the UK.
● Providing or offering to provide the patented item in the United Kingdom by a person who
is not the actual license holder with any opportunity that relates to the main spark of the patented
invention to be put into effect.
Fate of the infringers is set by a various categories which include:
● The breach of a patent is an issue to be looked over with civil laws and not criminal laws.
● Doings for the injunction, or an account of the profits made, and even damages can be
presented in the Patents Court, a part belonging to the Chancery Division of the High Court.
● The Patents County Court is set up by the 1998 Act.
● The Patents Act 2004 which is currently in action allows the patent office to offer an
independent opinion which is not binded, on the validity of patents and their breaches.
Task 4
a) Description of the principles related to copyright protections and breaching
the same:
The work of artists is protected by copyright, stopping others from making use of it without the
patentee’s consent. The following creations are automatically protected by copyright:
● Works of arts, music, dramatic or other literary creations original in ideas, including
citations and photography.
● Original works of non-literary skills, like software, databases or web contents.
● Audios and musical recordings
● Motion pictures or television recordings and broadcasts
● Papageorgiadis et al. (2016, p.267) analyzed that copyright also protects layout of editions
of works in fields of writing, drama and music which have been published
Things to be done by the patentee if the copyright has been breached:
● The owner can sue the broacher in the court of law if a copyright is being infringed and
may seek an authoritative warning in against chances of future violations of the patent
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● The patentee may attempt to recover the actual damages, including the losses suffered and
also the profits made by the infringer by using the patented work. The owner can also choose to
receive a fixed amount to compensate the damages as explained in the copyright statute (Aghion
et al. 2015, p.231)
● If the claim meets success, civil remedies may be called upon, like an award of damages or
effective immediate orders to make the infringer stop using the product.
b) Comparing the protection of trademarks and protection of business names:
It is often a case that the brand or trademark is seen as synonymous to the product, thus making
brand names and trademarks as high prices assets to a business. Specific products or even names
of companies are identified by their brand names. When the brand name works its way in the job,
positive images and vibes are projected on the consumers, thus making the brand name dearly
valuable. Often, in some cases, the everyday vernacular is represented by the brand name, eg.,
hoover to mean vacuum.
On the other hand, a trademark is referred to a sign having the capability to distinguish goods or
services provided by one undertaking from the other, and also are represented graphically. It
often contains words, letters, design or various shapes to represent their product. It is due to the
importance of the brand’s name that the companies want to get it secured through trade marking
(Wang et al. 2014, p.264).
The difference between the both can be pointed as:
● At various local and state levels, brand names can be incorporated as trades name.
Corporations, partnerships and limited liability companies holding business structures may
register with the state. Whereas, trademarks are acquired from Patent and Trademark Office by
registering the brand name by providing a sample of the brand name for submission along with
an application and its fee (Sharpio, 2016, p.198).
● By providing a doing-business-as statement within your region notifies the local area about
the business name. For the case of trademark registration, the process is lengthy and has legal
implications.
● A trademark protection is valid generally for 10 years, which needs to be renewed in
between the fifth and sixth years after the registration. It can also be done by filing an Affidavit
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of Use before the end of every 10th year period. In Case of of brand names, there happen to be
no time frame limitations, except for restrictions invoked at local levels (Oswald, 2014, p.17).
For trademarks, there is allowance of a grace time of six months at the end of 10th year during
which the registration of the trademark can be kept as it is by providing an additional fee.
Conclusion
The scenarios paves way for the basic understanding of laws as applied to business relations and
also protecting innovations by patent laws. The walk through of the problems clarifies how to
deal with the problems taking toll in day to day life, thus helping simplification of the issues by
being empathetic to both the parties.
Careful analysis and breakdown of the problems allows the implication of the laws designed to
be enforced at various situations such as crooked behavior of organizations’ or their failure to
meet their boastings. Light is also shed on the protection of original ideas, works and creations
through patenting, and invoking laws to protect them.
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