An Assignment On

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Table of ContentsIntroduction...................................................4

Task: 1 being able to apply the main principles affecting the

legal relationship between business organizations and their

consumers......................................................5

Task 1.1: Application of legal rules on implied terms relating

to the sale of goods and supply of services...................5

Task: 1.2 analyses and the advice to Mr. Adam on the statutory

provisions on the transfer of property and possession.........6

Task: 1.3 evaluations of the statutory provisions on buyer’s

and seller’s remedies in sale of goods contracts..............7

Task: 1.4 applications of the product liability statutory

provisions for faulty goods...................................8

Task: 2 being able to apply the legal rules on consumer credit

agreements and agency..........................................9

Task: 2.1 Differentiation between types of credit agreements

which Claire could use to obtain the new car..................9

Task: 2.2 Analyses of 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.....................................................10

Task: 2.3 Analysis of the general features of Agency and

differentiate between the different types of agent...........10

3

Task: 2.4 Evaluation of the rights and duties of an agent to

assist Claire understand her position once she becomes an

Estate Agent.................................................11

Task: 3 Understanding of the legal rules relating to monopolies,

mergers and anticompetitive practices.........................12

Task: 3.1 outlining of monopolies and anti-competitive practice

legislation in the UK........................................12

Task: 3.2 explanation of the role of the Competition Commission

within the context of monopolies and anti-competitive practices

and the UK Office of Fair Trading............................12

Task: 3.3 Dominant positions within the EU common market.....13

Task: 3.4 consideration of the application of EU exemptions to

potentially anti-competitive practices.......................13

Task: 4 knowing of the key provisions relating to intellectual

property rights...............................................14

Task: 4.1 Identifying of differing forms of intellectual

property.....................................................14

Task: 4.2 Outlining of the principles relating to the

protection of inventions through patent rights and their

infringement in a given business scenario....................15

Task: 4.3 Discussion of the principles relating to copyright

protection and their infringement in a given business scenario

.............................................................15

4

Task: 4.4 Compare and contrast the protection of trademarks and

business names...............................................16

Conclusion....................................................17

References....................................................18

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IntroductionWith the development of industrial sector the area of business

has been increased. To maintain the business every country needs

formulating of rules, such as sale of goods and transfer of

property Act. In performing the business rule some time one has

to depend upon implied terms. The seller and buyer enjoy some

remedies. They also have liability one upon another.

To continue business someone is to take credit. The credit may be

divided into secured and unsecured credit. The buyer mostly tries

to depend upon unsecured credit. Performing the credit agreement

they are to depend upon agency. Agency is a relationship of trust

and care to another person. Agent performs different types of

liability to principal, another agent and to third party.

This is the era of competition. Everywhere competition is

available. The companies are divided into two categories, namely;

monopoly and competitive company. UK formed some Acts regulating

competition among the companies.

To regulate the business sector another important element is

intellectual property. Intellectual property contains copyright,

trademark, patent etc.

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Task: 1 being able to apply the main principles

affecting the legal relationship between business

organizations and their consumersIn order to run the business properly it is mandatory to follow

certain rules regarding the legal relationship between business

organizations and their consumers. The main principles which will

affect the legal relationship between business organizations and

their consumers.

Task 1.1: Application of legal rules on implied terms

relating to the sale of goods and supply of services

There are some specific legal rules on implied terms and

condition relating to the sale of goods and supply of service

which was mentioned in the sale of goods act in 1974. The legal

implied rules and condition relating to sale of goods and service

are given below:

As to title:

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Seller must have the right to sale

Buyer have the absolute possession of the goods and warranty

Sale goods must be free from any kinds of encumbrances from

third party (R.S.P.E.I.1974, Cap. S-1, s.14.)

As to description:

The goods must be correspondent with the description

If the sale is based on sample it also must be comply with

the product description(1974, Cap. S-1, s.15)

As to quality:

In case of specified quality of goods seller will be

responsible not to providing the specified quality goods

If buyer examine it before purchase it’s the buyer

responsibility

The warrant of product quality is given based on usage of

the product (R.S.P.E.I.1974, Cap. S-1, s.16)

As to fit for purpose:

Must be capable of carrying and reasonably fit for the

purpose

In case of specified article under trade name there will be

no implied condition as to fit for purpose (R.S.P.E.I.1974,

Cap. S-1, s.16)

Exclusion clues:

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The implied rules and condition which are described above will

not effective in the following situation:

In case of tear and fire wear

Accidental damage or misuse of the product

Intention of the seller and buyer

Implication of implied terms and condition in Mr. Adam case

As per the implied terms relating as to tile, description,

quality, fitness there was no fault from the part of the seller.

TV explodes because of low quality and as per quality implied

condition the liability is Mr. Adam because “If the buyer buys

the goods with examining the quality, there is no liability of

the seller in case of low quality”.

Task: 1.2 analyses and the advice to Mr. Adam on the

statutory provisions on the transfer of property and

possession

Transfer of property and possession means the transfer of the

ownership of the goods along with substantial loss to the buyer.

The transfer of property and possession determination is

important for risk factor for example that will bear the risk

when the goods are in transit.

Determination of ownership as per section 18 of the sale of goods

acts 1974:

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No property will be transferred in case of unascertained

goods until the goods are ascertained

In case of ascertained goods property will be transferred

depending on the party’s intention

In case of unconditional contract property of goods passes

as the contract is made

In case of specific sale of goods property of goods

transferred when is is deliverable state and there of buyer

has been noticed

In case of future goods property is transferred when the

goods are delivered to the intended user.

Implication of statutory provisions on the transfer of property

and possession

As per the act provisions on the transfer of property and

possession state that the TV set is the ascertained goods. That’s

why its property and liability are transferred to Mr. Adam

Task: 1.3 evaluations of the statutory provisions on buyer’s

and seller’s remedies in sale of goods contracts

There are a lot of remedies in sale of goods contracts regarding

buyers and sellers. Subject to section 45(1) of the Act provides

that the seller of goods is deemed to be an unpaid seller when

the whole of the price has not been paid, or tendered, or when a

bill of exchange, or other negotiable instrument has been

received (Michael Burgan 2007, J).

Remedies of unpaid seller as against goods:10

The unpaid seller of the goods in possession thereof is

entitled to retain possession, until payment or tender of

the price.

When the buyer of the goods becomes insolvent and the goods

are in transit to the buyer, the seller can resume

possession of the goods from the carrier.

Who has retained possession of the goods in exercise of

rights of lien, or who has retained possession in exercise

of right of stoppage in transit, can resale the goods.

Remedies of buyer:

Where the seller wrongfully neglects , or refuses to deliver

the goods to the buyer, the buyer may sue the seller for

damages.

Where there is a breach of contract for the sale of specific

goods to the seller, the buyer may file a suit for specific

performance of contract.

Where there is a breach of condition, the buyer may

repudiate the contract. He may also claim damages

Where there is a breach of warranty, the buyer may sue for

damages.

Task: 1.4 applications of the product liability statutory

provisions for faulty goods

Product liability is the responsibility of any or all others

parties including chain manufacturer of any goods compensated for

damage caused by that goods which is provided for sale.

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Product liability may cause in the following situation

Design defects Manufacturing defects Marketing defects Negligence Strict liability Breach of warranty of fitness

If the damage is caused by the above reason the liability and

responsibility goes to the manufacturers and suppliers.

According to consumer protection act 1987, defective product must

be indemnified. The following options can be exercised by the

buyer of the product depending on situation:

Return back the defective goods Repaired or replaced the defective goods

Application of statutory provisions for faulty goods in Mr. Adam

case:

According to the consumers protection act the liability goes to

Mr. Adam as the reason for exploding TV set is low quality and

this liability is borne by implied quality terms and condition.

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Task: 2 being able to apply the legal rules on

consumer credit agreements and agencyThe term agency plays an important role in business sector. So,

the researcher will try to apply legal rules on consumer credit

agreements and agency.

Task: 2.1 Differentiation between types of credit agreements

which Claire could use to obtain the new car

Credit agreement is a common phenomenon in recent times for

solving financial difficulties.. Generally there are five types

of credit agreement which are discussed below:

Credit card: A processes in which creditworthy person get the

access to have loan and used to pay for product.

Bank loan: Taking loan from bank with interest and it is secured

loan.

Overdrafts: It is the approval of bank to its loyal customer to

withdraw money excess its savings with relatively low interest

rate.

Higher purchase and personal loan: It is the mechanism to buy

product in credit and once the payment is made the purchaser will

be the owner.

Conditional sale: Conditional sale is another approach of credit

agreement in which product is purchased from seller in credit

with condition.13

Applicable types of credit agreement to obtain the new car by

Mrs. Claire case

According to the case Ms. Claire is a credit worthy person. She

is worried to lose her job because of bleak economic situation in

the country but she has the opportunity of becoming an estate

agent. According to my credit agreement analysis the best fitted

credit agreement to buy the car is to take overdraft loan from

bank.

Task: 2.2 Analyses of 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

Defaulter is the customer who fails to repay the loan within the

specified time period (Hahn, 2010). If the borrower fails to

repay the loan the lender has the right to claim the loan in a

systematic way. The customer credit regulation act 1974 which is

amended in 1983 and 1994 protect the consumer right. According to

Section 87(1) lender sends legal notice for the loan recovery to

the borrower. Section 89,90,92,99,100 includes recovery time,

terminate and liability to repay this loans

Default notice: The creditor may send you a default notice giving

you 14 days from the date you receive it to pay arrears (Mossoff,

A. 2001).The default notice must contain the following necessary

materials. Those are such as below-

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Termination rights: The debtor may give written notice to the

creditor at any time before the end of the agreement. Once the

agreement has ended, you have to return the car maintaining

reasonable condition.

Applicable rules on termination rights and default notices in

Claire case

In that case it is not clearly stated that Ms. Claire pay the

loan properly or terminate the loan agreement or default to pay

the loan. For those reason applicable rules on termination rights

and default notice in Ms. Claire case depends on occurrence of

loan agreement.

Task: 2.3 Analysis of the general features of Agency and

differentiate between the different types of agent

Agency is the contractual relationship between agents and third

party and any person who is age of majority according to the law

with sound mind can be an agent.

There are different types of agent which are discussed below:

Estate agent: A person or business who done the job of selling,

renting and managing property. For example: Mr. Brown sells a

house on behalf of the owner Mr. Robert. Here Mr. Brown is an

estate agent.

Factors agent: Factors agent is an agent who sells the goods in

his or her name and receives commission. It is very much common

in textile, shoe, furniture, hardware and others industry. For

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example: Mr. Sanjay sells crude oil on behalf of Mr. Robinson in

exchange of commission. Here Mr. Sanjay is a factors agent.

Stock brokers: A regulated professional person who sells and buys

stocks on behalf of his or her principal. For example: Mr. Jim

buys stocks on behalf of Mr. Kim. In that case Mr. Jim is a stock

broker.

Auctioneers: A regulated body who done the job of selling and

buying of goods or service by bidding and the highest bidder get

the goods or service. For example: Mr. Deb bids a house of Mr.

Nandi for selling purpose and according to the auction sell the

house. Here Mr. Deb is an auctioneers agent.

Commercial agents: Commercial agent is the agent who plays as an

intermediary between two trading parties. For example: Mr. Jacob

and Mr. Noreen want to make a business deal but they have lack of

communication and Mr. Jefferson play as an intermediary to sign

up the deal. In that case Mr. Jefferson is a commercial agent.

Directors: Directors are the agent of the company & partners and

they try to ensure the interest of the company. For example: Mr.

Smith is a director of Maxwell Company.

Banks: Banks play as agent of his/her customers and clients. They

receive valuable property and keep it in a safe place. For that

reason every bank has locker service. For example: The standard

chartered PLC store valuable documents of Mr. Sujit Borma. Here

Standard Chartered PLC is a bank agent of Mr. Sujit Borma.

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Task: 2.4 Evaluation of the rights and duties of an agent to

assist Claire understand her position once she becomes an

Estate Agent

Analysis of the rights and duties of an agent to assist Claire

understand her position once she becomes an Estate Agent is

discussed below:

Rights and Duties of estate agent are given below:

Buy, sell, and lease the property or business to the

eligible party

Negotiating the price and different terms and condition

Collect price, rent from the party

control the principles, influential capability, and perfect

care and destroy the desire of personal gains

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Task: 3 Understanding of the legal rules relating to

monopolies, mergers and anticompetitive practicesIn the era of competition, the companies are in the field of

competition. To control the competition UK has regulated some

rules on anti-competition. Let’s know the practice of

monopolistic and competitive companies. This part is analyzed on

the basis of British Telecom Company and Dixons Carphone.

Task: 3.1 outlining of monopolies and anti-competitive

practice legislation in the UK

Monopoly: When a market is dominated by a single company or a

group of company is called monopoly market. In the present

context of business there is a few case of pure monopoly market.

In the UK the British telecom is enjoying monopoly market in the

telephone cabling market in the UK.

Mergers: Merger is the combination of two companies to control

the market or enjoying the economics of scale. In the UK there

are many successful business mergers. Among them Dixons Carphone

is well renowned mergers in recent time. They amalgamate in 2014

and their turnover increases more.

Anticompetitive practice: Anti-competitive practice is the system

to reduce the competition by means of dumping, refusal to deal,

exclusive dealing, dividing territories, limit pricing, tying,

price fixing, resale price maintenance and religious doctrine.

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Legal rules relating to monopolies, mergers and anticompetitive

practices: For controlling monopoly and mergers in the UK there

is a competition act. In the UK there is a legislation

regarding monopolies, mergers and anti-monopolies and it ensures

fair trading instead of monopolies. According to the competition

act of 1998, a company must 25 or more relevant market and

minimum turnover is £10 million .If anti-competitive suspension

is confirmed they have the two option as to stop the practice or

refer to MMC for justifying the fact whether it is public

interest or anti-competitive.

Task: 3.2 explanation of the role of the Competition

Commission within the context of monopolies and anti-

competitive practices and the UK Office of Fair Trading

In 1949 monopolies commission was formed and in 1998 the

competition commission was formed to regulate monopoly & mergers.

The role of the Competition Commission within the context of

monopolies and anti-competitive practices and the UK Office of

Fair Trading are given below:

Market share determination of new firm

Control local monopolies

Measuring economy of scale in an industry

Encouraging research & development in the market portfolio

In 2012 enterprise act was passed amended in 2013. It assists

anti-competitive. As monopoly business destroys economic

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competition and decrease public interest as consumer have no

choice the best one.

Task: 3.3 Dominant positions within the EU common market

According to the article 82 of the European Union Treaty states,

any abuse by one more undertakings of a dominant position within

the common market or in a substantial part of it shall be

prohibited as incompatible with the common market in so far as it

may affect trade between member states. According to article 82

in law it has identified some features that are: Article 82 that

defined the abuse the dominant position which becomes on the some

way- slight or not directly. Preventive produce, client gets the

technical benefits. In the various situations all states get the

equivalent transactions, reception the complementary requirement.

Task: 3.4 consideration of the application of EU exemptions

to potentially anti-competitive practices

The application of EU exemptions to potentially anti-competitive

practices is related with that fact which is given below:

Security, economy, variety of the supply for the customer and for

ensuring the common state interest needs fully and strictly apply

the competitive act 1998 and also the enterprise act.

According to article 81 of the monopoly and mergers commission

act 1999 defined that to prohibit monopoly and give emphasis on

ensuring the security of the members states that means this

section strongly prevent monopoly. And article 86 discourages to

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hold dominant position in the trade of member state (Farah,

2014).

According to article 89 ensuring security is encouraged and

strongly restrict the illegitimate competition. Finally it can be

said co-operation between the customers may be sufficient to off-

set any anti-competitive effects.

Task:

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4 knowing of the key provisions relating to

intellectual property rights In this century, the term intellectual property has emerged as a

new area of creative activities and invention. Intellectual

property includes copyright, patent, trademark, design etc. let’s

discuss the mentioned matters below.

Task: 4.1 Identifying of differing forms of intellectual

property

Intellectual property refers to creations of the intellect for

which a monopoly is assigned to designated owners by law. The

term includes copyright, patents and industrial design rights,

trademarks, trade dress. All these contain music, literature, and

other artistic works, discoveries and inventions etc (Michael

Burgan 2007, J).

Let’s know different types of intellectual property in details.

Patents: it is a form of right granted by the government to

an inventor, giving the owner the right to exclude others

from making, using, selling etc.

Copyright: it gives the creator of original work exclusive

rights to it, usually for a limited time. It may be applied

to wide range of creative, intellectual, or artistic works

Industrial design right: it protects the visual design of

objects that are not purely utilitarian. It consists of the

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creation of a shape, configurations or composition of

pattern or color

Plant varieties: are the rights to commercially use a new

variety of a plant. The variety must be novel, distinct.

Trademarks: it is a sign by which it is recognized. It’s a

design or expression which distinguishes products of

services of a particular trader from similar products

Trade secrets: it’s a formula, practice, process, design,

instrument, pattern, or compilation of information which is

not generally known or reasonably ascertainable.

Task: 4.2 Outlining of the principles relating to the

protection of inventions through patent rights and their

infringement in a given business scenario

The UK government recognizes any intellectual property and takes

necessary action to protect the intellectual property (Kerber,

2009). Their initiative is divided into two types. Namely:

Utility patents: utility patents are abstract in nature andrelated with the books, article, and research paper and soon. Utility patent is considered the most usefulintellectual property because that is the pure creation ofmind

Designed patent: Designed patent concentrate in nature.Electronic device like mobile, laptop and so on.

However both types of property are considered as property

because of having practical utility in the specific field. It

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is presumed that protection of intellectual property

encourages the new invention. Because when can be benefitted

from his invention then he would be more interested in

creation of something new useful thing.

Assume two scenarios:

1st one is, Mr. Brown wrote a book on mercantile law.

2nd one is, Mr. Robert invented equipment which is essential in

medical sector.

According to law Mr. Brown work is protected by copyright and

Mr. Robert work is protected by patent. If anyone infringes

these rules Mr. Brown and Mr. Robert will indemnify.

Task: 4.3 Discussion of the principles relating to copyright

protection and their infringement in a given business

scenario

The intellectual property right is automatic in nature which

creates at the very first day of its creation (Gerley, 2002).

Person who breach the principle of copyright are subject to

following infringement:

Indemnify the actual damage to the copy right holder According to law indemnify amount is between $200 to

$150,000 for each work infringed Bear all legal expense if incurred Destroy the illegal work

Assume a scenario: 1st one is, Mr. Brown wrote a book on

mercantile law. Mr. Osama copies some part of this book without24

the permission of Mr. Brown and included his book to sell in the

market.

In this scenario Mr. Osama breach the copy right act. For this

reason Mr. Brown faces lose. According to infringement punishment

Mr. Osama will be punished as per law given before and Mr. Brown

will be indemnified for his lose.

Task: 4.4 Compare and contrast the protection of trademarks

and business names

Trademark is the symbol, logos and slogans of company or products

which is identifiable to others company or products. It also

refers to brand name and protects the brand name. On the other

hand business is related with the company name which is an

important factor. Both of this is used to show the company good

will. Anyone can identify the product of a specific company by

using trademark or business name. In general it is not mandatory

to register business with trademark but in statutory law it is

mandatory to register with the trademark. Registration of

trademark and business name is beneficial for the company.

Without registration of trademark and business Name Company will

not be able to get remedy in case of breach of trademark and

business name. . Previously it was a common picture to use the

business name to identify the company’s product. But recently

trademark is use to identify the company’s product. Moreover any

company uses identical trademark or business name. Finally it can

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be said that though there is difference between business name and

trademark both of this indicates company’s goodwill.

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ConclusionThis is the era of industrialization. Industrial sectors plays

very important role in the arena of business. Sale of goods is an

important material. Transfer of goods refers to business. To

control the business of the country the UK govt. formulated some

laws like Sale of goods and transfer of property Act (Simon,

Strokes 2001).

To continue the business sometimes the buyer takes credit from

any credit card, or master cards. Credit may be classified into

two classes, namely; secured credit and unsecured credit.

The companies perform activities are of two kinds monopolistic

companies and competitive companies. In this era of competition,

the UK govt. made regulation controlling the competition.

Now one of the most famous activities is intellectual property.

It contains copyright, trademark, patent, business mark etc.

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References1. Sale of goods and supply of service Act, 1980

2. P Richards,( 2006), Law of contract 7th edition London,

Pearsons

3. Sale and supply of Goods to Consumers Regulations 2002

4. O & Dodd, A, (2003) "Shogun: A Principled Decision"

(153 NLJ 1898

5. Sullivan, Arthur, Steven M. Sheffrin(2003), Economics:

Principles in action

6. Ingham, G(2004), The Nature of Money. Polity Press p.p 12-19

7. S. (2009). Consumer Credit Fundamentals (2nd ed.). Palgrave

Macmillan

8. Michael Burgan 2007, J. Pierpont Morgan: Industrialist and

Financier

9. Competition Act 1998

10. TPP at the NABE, Paul Krugman Blog, Retrieved 2015-06-

18, in a direct sense, protecting intellectual property

means creating a monopoly

11. Brad, Sherman; Lionel Bently(1999), The making of

modern intellectual property law; the Britiish experience

12. Mossoff, A. (2001) Rethinking the development of

process;  'Hastings Law Journal, Vol. 52, p. 1255,

13. WIPO Intellectual Property Handbook: Policy, law and

use. Chapter 2 Fields of intellectual property protection

WIPO 2008

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14. Peter K, Yu (2007), Intellectual Property and

information Wealth; copyright and related rights. Greenwood

publishing group. P. 346

15. Simon, Strokes (2001). Art and copyright. Hart

Publishing pp. 48-49

16. www.competition-commission.org.uk - Competition

Commission

17. www.patent.gov.uk - The UK Patent Office

18. Law of International Trade, Sellman (4th edition) 2003

(Old Bailey Press)

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