Contents

Introduction................................................................................................................................1

Task 1.........................................................................................................................................1

Be able to apply the main principles affecting the legal relationship between business

organisations and their consumers..........................................................................................1

P1.1 Analyse and advice Mr Adam on the legal rules on implied terms relating to the

sale of goods and supply of services...................................................................................1

P1.2 Analyse and advice Mr Adam on the statutory provisions on the transfer of property

and possession.....................................................................................................................2

P1.3 evaluate the statutory provisions on buyer’s and seller’s remedies in sale of goods

contracts..............................................................................................................................2

P1.4 apply product liability statutory provisions for faulty goods.....................................3

Task 2.........................................................................................................................................4

Be able to apply the legal rules on consumer credit agreements and agency.........................4

P2.1 Differentiate between types of credit agreements which Claire could use to obtain

the new car..........................................................................................................................4

P2.2 Analyse the rules on termination rights and default notices for Claire to be informed

in case she subsequently has trouble paying the debts as required in the contract.............6

P2.3 Analyse the general features of Agency and differentiate between the different

types of agent......................................................................................................................7

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position

once she becomes an Estate Agent.....................................................................................7

Task 3.........................................................................................................................................8

Understand the legal rules relating to monopolies, mergers and anticompetitive practices. .8

P3.1 outline monopolies and anti-competitive practice legislation in the UK...................8

P3.2 explain the role of the Competition Commission within the context of monopolies

and anti-competitive practices and the UK Office of Fair Trading....................................8

P3.3 define dominant positions within the EU common market........................................9

P3.4 consider the application of EU exemptions to potentially anti-competitive practices

..........................................................................................................................................10

Task 4.......................................................................................................................................10

Know the key provisions relating to intellectual property rights.........................................10

P4.1 Identify differing forms of intellectual property.......................................................11

P4.2 Outline the principles relating to the protection of inventions through patent rights

and their infringement in a given business scenario.........................................................11

P4.3 Describe the principles relating to copyright protection and their infringement in a

given business scenario.....................................................................................................12

P4.4 Compare and contrast the protection of trademarks and business names................13

Conclusion................................................................................................................................13

References................................................................................................................................13

Introduction

This report analyse the implied terms which is used by the Mr. Adam for interpreting the

terms which is used in the contract. It laid down the various credit agreements which help the

Claire to purchase the car. There are various competition laws which help the one individual

in the market.

Task 1

Be able to apply the main principles affecting the legal relationship between business

organisations and their consumers

P1.1 Analyse and advice Mr Adam on the legal rules on implied terms relating to the

sale of goods and supply of services

The valid contract has been made by the parties by these four elements. These are:

1. Offer: For making the valid contract there must be offer made by the party. Offer

must be communicated to the other party

2. Acceptance: The offer is accepted by the other party for making the valid contract.

3. Intention to create the legal relationship: both parties must have intention to create

a legal relationship. Both parties have intention.

4. Consideration: There must be consideration between the parties. Adams pay the

money of the TV set to the seller. [Elliott, C. and Quinn, F. (2007)]

So according the valid requirements for making the valid contract between the parties is

exists in this scenario in which MR. Adam and the seller are under the valid contracts. When

any contract which is valid according to the sale of good act 1979 then there are various

terms are applied on the contract which are:

1. Express terms: Express term is that in which the terms and conditions are stated clear

by orally or in the written form.

2. Implied terms: implied terms are those terms in which the terms and conditions are

not mentioned because it is depend upon the sale of goods.

3. Innominate terms: When court cannot decide the specific term then it treated that it

is the innominate terms.

But according to the sale of goods act 1979 these are included under the sale of goods act.

Section 12 deals with the implied terms of title. In this the title of the goods must be

in according with the contracts of the sale of goods. It includes the online shopping. In

section 12 (1) stated that seller has right to sell the goods but it is necessary that goods

must be belong to him. The good are not stolen goods. The seller sells the goods

which is free from the undisclosed charged or any burden.

Case: Rowland V Divall (1923)

Section 13 deals with the descriptions of the goods. The contract which is made for

the sale of goods then goods must be in accordance with the descriptions it is an

implied term for the seller.

Case: Bealy V taylor (1967)

Section 14 deals with the quality of goods in this seller has to sell the good sin the

course of his business must be fit and in good quality for all the purpose.

Case: Stevenson v Rogers (1999)

Section 15 deals with the sale by sample. In this contract for the sale of goods by

sample there is an implied term is that the bulk of the goods must be in accordance

with the sample quality.

Case: Godley v Perry (1960)

P1.2 Analyse and advice Mr Adam on the statutory provisions on the transfer of

property and possession

The objective of the sale of the contract is that in which the property of the goods has been

transferred from one person to another in return of consideration price.

The rules of transfer of ownership of property are depending upon whether the property as

divided as:

1. Specific goods

2. Ascertained goods

Specific goods: specific good are those goods which are decide by the party at the time of

making contract.

Unascertained goods: These goods are those which are not identified by the parties at the

time of making contract.

There are statutory provisions which are deals with the transfer of property. Mr. Adam can

deal with the transfer of property through these provisions.

There are section 16 to 20 which deals with the transfer of property and possession of goods

and property.

Under section 16 for the ownership of the property the goods must be ascertained

otherwise the ownership will not pass.

Under Section 17 good will be passed at the intention of the parties, whether the

goods are certained or ascertained.

Under Section 18 the goods will be passed at the intention of the parties. There are

five rules in which four are related to the specific goods and one is related to the

unascertained goods.

Under Section 19 right of the seller ahs be mentioned in which seller has the right to

disposed of the title of goods which is sold by the seller

Under Section 20 it is clearly stated that the goods which are passed from the seller

to buyer at the passing off the risk the risk is also transfer from the seller to buyer,

seller is not liable for any risk.

P1.3 evaluate the statutory provisions on buyer’s and seller’s remedies in sale of goods

contracts

Under the sale of goods act when seller breached the terms and conditions of the contract

there are various remedy is available to the buyer.

1. Right to reject the goods: buyer has right to reject the good which is not accordance

with the terms and condition which is not deliver on the specific date or time.

2. Specific performance: The court has the power to give order of specific

performance by the party at the time of breach of contract.

3. Damages: Buyer has the right to get damages from the seller. If seller breached the

contract terms and conditions then buyer can also file suit and claim the damages

which he suffers.

Seller has also get remedy when any breach is made by the buyer. The seller remedy is given

in the contract of section 49 and 50 of the sale of good act.

The remedy which is available to the seller in section 49 are:

1. Seller has right to take the action against the price of the goods. If the buyer did not

make payment of the goods then seller can file suit against him for taking the price of

the product.

2. Seller has also right to take action against the buyer if any specific day is mentioned

for the payment for the payment of the goods and he did not able to pay the price of

the product.

The remedy which is available under the section 50 are:

1. If the buyer did not accept the goods then seller has right to take action for the non-

accepting of the good.

2. Seller gets the compensation money by measuring the damages by taking the

difference between the contract price and the current price which is held at the time

when the good has been passed from the seller to buyer.

P1.4 apply product liability statutory provisions for faulty goods

Mr. Adam can apply these statutory provisions for the TV set which is faulted.

When any goods which is caused any damages or bodily injury to the consumer then it is

known as the defective good sand the liability of this defective good is falling upon the these

person which is mentioned in the consumer protection act 1987 act under section 2.

1. Manufacturer of the good s

2. Retailers

3. Supplier of the goods

4. Importer

Mr. Adam has to prove these things for claiming the damages which is caused by him due the

defective TV set which is purchased by him from the seller.

1. Mr. Adam suffers the loss from the defective TV sets.

2. The TV set has the defect.

3. Mr. Adam suffers the loss which is exceeding the values of 750 Euros.

4. Seller is under the liability of the defective goods.

5. Mr. Adam use the TV set for private purpose.

Task 2

Be able to apply the legal rules on consumer credit agreements and agency

P2.1 Differentiate between types of credit agreements which Claire could use to obtain

the new car.

Consumer credit act 1974

Consumer credit act is established for the protection of the consumer who is taking

credit from the money-lenders, pawn brokers, and hire- purchase traders.

They regulated by the Director- General of the fair trading.

They control and regulated the traders with the provision which are laid down in the

credit consumer protection act.

There are various types of consumer’s credit which is available to Claire through which

Claire can purchase the car from using these credit agreements.

Credit agreements means that in which the consumer can borrow the money under the

agreement and on every month she has to pay the interest money to the moneylender and

when the time period of credit is over then she has to pay the principal amount to the money-

lender.

1. Credit sale

Under this debtor takes loan for purchasing the good which very expensive in

nature like diamond jewellery, car, and any home loan etc.

The purchase money has been given to the debtor the specific period of time

and over the time period which is fixed then he has to pay back the money to

the creditor in each equal monthly instalments.

Under this goods ownership has been transferred as soon as the contract has

been signed by the party. [Phillips, J. (2011)]

2. Hire purchase

Under hire purchase the debtor has to pay the money for the good which is

hired by him.

Ownership cannot transfer until the full payment has been made by the debtor.

3. Hire contracts

The debtor can hire the goods for the payment of monthly instalments.

Good are never been owned by the debtor.

The goods are return to the creditor or re- hires the goods.

Any individual who not pay the back the hire- goods then he may be sued for

that. [Phillips, J. (2011)]

4. Conditional sale

Under this the ownership of the goods will not transferred until the payment is

not fully paid.

In conditional there are various others condition which has to be fulfilled

before the title of the goods has been received by the debtor. [Phillips, J.

(2011)]

5. Restricted use and unrestricted use

Section 11 of the act stated the restricted use of the credit. The credit money

has been used by the debtor only for the specific purpose though he was taking

the credit, he cannot make use for any other purpose. Consumer is not free to

use the credit money for any purpose. For instance if any consumer take the

credit for purchasing the car then he can use the credit money for purchasing

the car.

Unrestricted use is that in which the consumer is free to spend the money for

any purpose. [Phillips, J. (2011)]

6. Debtor- creditor- supplier agreement

In this credit agreement creditor is also supplier has business relation with the

supplier then it is the debtor- creditor- supplier agreements. [Phillips, J.

(2011)]

7. Debtor- creditor agreements

Under this there is no contract between them and there no relationship

between them on any existed arrangements and on any future arrangements.

[Phillips, J. (2011)]

P2.2 Analyse the rules on termination rights and default notices for Claire to be

informed in case she subsequently has trouble paying the debts as required in the

contract.

Consumer credit act 1974 stated the various provision if Claire has any difficulty for the

making of payment of his debts. This act laid down the various termination rights which is

used by the Claire

According to Section 98 of the consumer credit act 1971, any agreement which is in

regular in nature that can be terminated by the debtor by giving the default notice to

the creditor.

As according to the Section 99, when the agreement is terminated by the debtor by

giving a default notice to the creditor then goods under the hire- purchase and

conditional sale agreement has to return back to the creditor.

Section 100 of this act stated that after the termination of the agreement debtor is

under the liability to pay the less than half of the total amount which is payable, he

has to pay the differences in the amount.

Section 101 stated the rights of hirer, hirer has the right to terminate the agreement by

giving the written notice to the other party. [Kenneth C. D. et al., 1994]

Default notice

The goods are protected through the repossession if debtor paid the more than one third of the

total amount of goods. So if the goods are recovered from the debtor then he entitles to take

all the money back which he paid to the creditor, no matter how long he has possession over

the goods.

Debtor terminations

1. According section 99 of the 1974 act the debtor has the right to terminate the hire-

purchase or conditional sale agreement by giving a default notice to the creditor for

end the agreement.

2. When the agreement is ended by the debtor though by giving default notice then he

has to return the goods to the creditor in the reasonable condition.

3. Under section 99 of the act debtor can use the rights even if the debtor has not been

received the default notice as long as the date of notice has been passed. .[Kenneth C.

D. et al., 1994]

.

P2.3 Analyse the general features of Agency and differentiate between the different

types of agent.

The general features of agency are:

1. Principal times and energy has been saved by agency.

2. Agent has the right to act on the behalf of the principal.

3. Agent has to act within their limits.

4. Agent have no liability

5. Both parties are eligible for the contract.

There are different types of agents are:

Directors are act as an company agent and partners are each other agents..

Factors is defined under the factors act 1889 which deals with the tangible property,

they sell and buy the goods and also raises the money.

Auctioneers deal with the properties which are sold by the auction process, and it

cover both tangible and intangible property.

Brokers deals with the intangible property. They also buy and sell the goods on his

own name. They have to pledge the goods.

Commercial agents are the contractors who are independent and they have purchasing

and selling power of the property.

Estate agents handle the real property which is on the behalf of the real property

owner. Their authority is limited that they only advertised and finding only

prospective buyer.

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position

once she becomes an Estate Agent.

Any individual who become the estate agent then he/ she has the certain rights and duties.

Duties of the estate agents

1. she has to act within the scope of the profession

2. She has obeyed the instructions.

3. She can take reasonable steps for care and skill.

4. If she has any doubt then he should communicate with the principal.

5. She should not make any secret profit.

6. She should be cat fairly and show the accounts.

Rights of the agents

She has right to get remuneration and other expenses.

She has right lien over the property.

She has right to take the allowances and other benefit.

Task 3

I take the case of online booking of hotels which are involved the IHG-expedia-

booking.com

Understand the legal rules relating to monopolies, mergers and anticompetitive

practices

P3.1 outline monopolies and anti-competitive practice legislation in the UK

It is the threat for the competition in the market in the UK.

Monopoly is the situation in which one firm has the dominate position in which have

full control over the market.

According to the UK market monopoly exists the company who has control over the

market by 25%.

Monopolies and merger commisision investigate the two companies which together

makes control over the market at least market by 25%.

Example of monopoly merger are Boeing, Mc Donnell and double aircraft

manufacturer which are incorporated or merger in the single name of Boeing- MC

Donnell- Douglas Corporation which becomes the world largest company which have

full control over the manufacturer of the aircraft. The companies who have the

monopoly power are exploit the customer by imposing unfair price or imposed high

price on the consumers without any development.[ Businesscasestudies.co.uk, 2015]

Anti competitive practices are also introduced making the limits for the firm who has the

monopoly power, monopoly market have power that they sell their product as much as they

want due the demand is high and supply of goods are low. Anti competitive practices are also

prohibited by the competition act 1988.

Anti competitive practices are:

1. Anti-competitive agreements: These agreements are laid down in the chapter 1 of

competition act 1998 in article 101 of the TEFU.

2. These types of anti-competitive agreements are prohibited under the CA act.

3. These anti- competitive agreements are these kinds of practices which distort,

prevent or restrict the competition in the UK market or in the EU.

[ Businesscasestudies.co.uk, 2015]

Abuse of dominant positions

It is in the chapter II of the CA act in the article 102.

It is the illegal in the competitions law UK and EU.[ Businesscasestudies.co.uk, 2015]

Competition Act 1998

It is the main legislation in the UK for controlling the competition in the market. This act

helps in restrict the anti-competitive practices like abuse of dominant position, anti-

competitive agreements. It also harmonise the UK with EU competition policies.

Enterprise act

This act is also the act of the Uk which deals with the merger of the companies and also deals

with the insolvency of the firm.

Fair Trading Act 1973

This act gives direction to the company that they trade in fair manner.

Monopolies &Restrictive Practices (inquiry & Control) Act 1948 & Monopolies &

Mergers Act 1965-

The company which is merged with the other company and it is against the public policy or

the public interest then this merger has been restricted by this act.

Skoosh.com make an allegation upon the three companies: intercontinental Hotels

Group and two online travel agents these are Booking.com and Expedia that these three

companies breached the laws of the competition laws. Both Expedia and booking.com

makes an agreement with the IHG that they not sold their rooms below the rates which

i shown on the sites. So it is one of the anti-competitive agreements which are prohibited

in the competition act. [Webarchive, 2015]

P3.2 explain the role of the Competition Commission within the context of monopolies

and anti-competitive practices and the UK Office of Fair Trading

Role of competition commission

Competition commission is the body which have power to regulate the all provisions of the

UK competition law. On April 2004 they get the power to control over the competition

market in UK. Competition commission have power to prohibit the anti competitive

practices which are prevent the competition in the market. They also control or prevent the

monopolies. Competition body includes the various regulatory authority which deals with all

aspects. [GOV.UK. 2015(2)]

Regulatory body includes:

1. chairman,

2. chief executive, and

3. 4 board members

Competition deals with the appeals which is made by the consumer when they are not satisfy

with the decision with the other regulatory authority decisions .competition commission has

also power to imposed fines on those who are not act according with the legislation. The

authority and court has also powers that they regulate and enforced the article 101 and 102 of

the competition act with the power to enforce the competition act 1998.

Office of fair trading

It is the authority in the UK which protects the consumer interest.

They have power to investigate if they have any suspect of breaching.

It has same powers as the various bodies which have concurrent powers. [GOV.UK.

2015(2)]

Under the EU legislation vertical agreements are not legal so these three companies which

mad eth vertical agreements by entering into the anti –competitive agreements.

P3.3 define dominant positions within the EU common market

Article 82 of EU market

According to article 82 of the EU is that any individual firm who are in the dominant

position and abuse the dominant position it shall be prohibited under the EU common market

because it affects the trade between the member states.

Dominant position

It is in the chapter II of competition act in article 102.

Dominant position is the in which firm ha s the 50 % share in the market.

In the market of Uk and in EU it is illegal businesses practices.

The firm who has the dominant position have full control over the market.

The firm imposed unfairly conditions on the consumers.

Consequences of breach

It is the penalty over the company who infringed the chapter II of the article 102.

Company who breach the rule can face the fine of 10 % of his global turnover.

Court has the power to pass an order of the injunction for the breach of article 102.

According to article 82 of the EU market abuse of dominant position consisted in:

By imposing unfair conditions on the purchase of the goods.

By limit the production of the product.

By imposed dissimilar conditions upon the consumers.

By entering in to the agreement with the IHG Hotels group theta they have not sell the

rooms below the certain rates which are shown in the sites so these three companies are

take the dominant position and they abuse this dominant position by deciding the

certain rates.

P3.4 consider the application of EU exemptions to potentially anti-competitive practices

Exemption

1. Consumers get equal benefit from the profit.

2. The agreement did not impose any unfair restrictions on the contracting parties.

3. The distribution of goods and services has been beneficial for the development of the

economic progress.

4. Competition is not eliminating from the market due to this agreement. [Mondaq.com

2015]

Block exemption under EU

This exemption came in to force on 1 June and it will become valid on 31 MAY 2022.

In this exemption vertical agreements are automatically exempted. [Mondaq.com

2015]

According to block exemption they make the vertical agreements and vertical

agreements are automatically exempted under this.

Task 4

I choose case study of Brompton case in which it gets the patents, trademarks, copyright

and design protection

Know the key provisions relating to intellectual property rights

P4.1 Identify differing forms of intellectual property

Intellectual property is those which are created by the individual and it is unique in nature.

Any idea which is created by the individual is not the intellectual property. For instance an

individual who an idea to wrote a book is not intellectual property but the words wrote under

that book is the intellectual property. [Christie, A. and Gare, S. (2004)]

Intellectual property which is granted protection are:

1. Copyright

2. Patents

3. Designs

4. Trademarks

Intellectual property has been protected from the theft or copying. [Christie, A. and Gare, S.

(2004)]

The intellectual property which are protected from theft and copying and also arise certain

rights of the individual.

Invention which is not the discovery gets the protection under the patent act.

[Cipa.org.uk, 2015]

The product names, brands. Any mark which is capable of differentiates the goods

and services form one another.

Any product design

The thing which is write, any musical works, sound recording etc.

These all are protected by the government and gives the exclusive right to the owner of the

intellectual property.

In this case Brompton innovate the bike which is designed by as it has own tooling. It made

an invention of the fold up bikes, which he decides to bear of cost of manufacturing in UK

because they want to protect their IP. By designing their own tool they protected the IP.

Patent has been given to that bike [GOV.UK (2015) (2)]

P4.2 Outline the principles relating to the protection of inventions through patent rights

and their infringement in a given business scenario

Patent is the right which is given for the protection of the invention which invented by the

patentee. This right is granted to the inventors by the intellectual office of the Uk. Patent has

been given for the period of 20 years. The patentee has the right to stop the use of the patent

invention. [GOV.UK. 2015]

The main objective of the patent is:

1. Encourage people for making the new invention.

2. For the development of the economic.

Any invention which passes these three tests then it will be protected by the patent

[GOV.UK. 2015]

1. The inevention must be new

2. Invention must have some industrial use.

3. There is non- obviousness. [Cipa.org.uk, 2015]

Patent is given for the specified period when the time period is over then invention is goes in

the hand of the government. Patent is granted to the inventor when he gives all information to

the government. Any person who make use or selling the patent invention then he will be

liable for the infringement of patent. [GOV.UK. 2015]

Reliefs of the patentee

Injunction has been passed by the court in which the infringer is stop from using the

patented invention in future.

Damages have been given to the patentee by the infringer on the court order.

[Cipa.org.uk, 2015]

Patent has been given to that fold- up bike, which fulfils the different need of the work. It gets

patent over the bike for 20 years. [GOV.UK (2015) (2)]

P4.3 Describe the principles relating to copyright protection and their infringement in a

given business scenario

Principles of copyright

1. Copyright is the right which is granted to the owner of the original work.

2. On 15 November 1988 royal assent has been given to the copyright, design and patent

act 1988.

3. The copyright act is come into force on 1 august 1989.

4. The works which gets the copyright protection are literary, dramatic, musical, or

artistic works.

5. Dramatic films are also protected by the copyright act 1911.

6. According to 1911 act the copyright protection has been given to the work which is

original in nature and it is not mere an idea, it must be in tangible form.

7. The copyright protection has been given to owner after the 1 June 1957 if:

If the owner is the British resident

The individual is domiciled in the Uk

Anybody which is incorporated under the law.

8. The works get protection or the period of 70 years form the date of registration.

9. Owner of the copyright work has right to decide the future of the work.

10. The owner has right to stop other for the copyrighted work. Any person who wants to

use to the copyrighted work he has to take permission from the copyright owner

otherwise it will be treated as infringement.

If any person use the copyright work without the permission of the copyright then he

infringed the right of the copyright owner. The remedies are available to the copyright owner

when his rights are infringed by the infringer.

Civil remedy

Criminal remedy

In Brompton case bike get the patent. For the invention of the fold up bike they makes

drawing and the drawing also get the copyrighted by the Brompton, no one can make the fold

up bike without his permission , and he also give their drawing for making the fold-up bike

and also Said that it will take two years for making the really goods bike. [GOV.UK (2015)

(2)]

P4.4 Compare and contrast the protection of trademarks and business names.

Business name is identified the legal entity which does not given the proprietary

rights whereas trademark is the mark which distinguish the goods or services of one

form one another.

Business name cannot be registered while trademark has been registered by the

trademark owner.

Business name can be used by the others while trademark cannot be used by others.

In business names there is no infringement if any person use the business names while

trademark has been infringed if it used by the others without the permission of the

trademark owner.

The business names can be used by the person as long as they want while trademark

has been used by the person for the period of 10 years but it can renewed by the

period of 6 months without expiry of this time period. [Albright IP, 2015]

In this case trademark is the brand name which is given to the fold up bikes “Brompton” is

protected under the trademark act.[GOV.UK (2015) (2)]

Conclusion

There are various legislations which is laid down under the competition act like patent,

trademark, copyright act and also analyse the scenario with the cases. It helps in

understanding the monopolies, dominant position and others. Also assist the Mr. Adam and

Claire related the credit agreements and implied terms in the contracts.

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