ContentsTask 1.....................................................................................................................................................1

Be able to apply the main principles affecting the legal relationship between business organisations and their consumers...................................................................................................1

P 1.1 Analyse and advice Mr Adam on the legal rules on implied terms relating to the sale of goods and supply of services.........................................................................................................1

P 1.2 Analyse and advice Mr Adam on the statutory provisions on the transfer of property and possession.....................................................................................................................................3

P 1.3 evaluate the statutory provisions on buyer’s and seller’s remedies in sale of goods contracts........................................................................................................................................4

P 1.4 apply product liability statutory provisions for faulty goods.................................................5

Task 2.....................................................................................................................................................5

Be able to apply the legal rules on consumer credit agreements and agency...................................5

P 2.1 Differentiate between types of credit agreements which Claire could use to obtain the new car..........................................................................................................................................5

P2.2 Analyze 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.........................7

P2.3 Analyse the general features of Agency and differentiate between the different types of agent..............................................................................................................................................8

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position once she becomes an Estate Agent..............................................................................................................9

Task 3...................................................................................................................................................10

Understand the legal rules relating to monopolies, mergers and anticompetitive practices..........10

P 3.1 outline monopolies and anti-competitive practice legislation in the UK.............................10

P 3.2 explain the role of the Competition Commission within the context of monopolies and anti-competitive practices and the UK Office of Fair Trading......................................................12

P 3.3 define dominant positions within the EU common market................................................12

P 3.4 consider the application of EU exemptions to potentially anti-competitive practices........13

Task 4...................................................................................................................................................14

Know the key provisions relating to intellectual property rights.....................................................14

P 4.1 Identify differing forms of intellectual property.................................................................14

P 4.2 Outline the principles relating to the protection of inventions through patent rights and their infringement in a given business scenario..........................................................................14

P 4.3 Describe the principles relating to copyright protection and their infringement in a given business scenario.........................................................................................................................15

P 4.4 Compare and contrast the protection of trademarks and business names........................16

References...........................................................................................................................................17

Task 1

Be able to apply the main principles affecting the legal relationship

between business organisations and their consumers

P 1.1 Analyse and advice Mr Adam on the legal rules on implied terms relating to the sale

of goods and supply of services

Sale of Goods Act 1979 : whenever any person consider a contract for the sale if good then it

will regulated through the sale of goods act. Contract law is applied on offer, acceptance,

consideration etc.

According to the Section 2(1) of the Sale of Goods Act

Any contract which is made for the sale of the goods is a contract through which the seller is

agreed that he will transfer the ownership of the property to the buyer for the consideration.

Consideration includes the price money. [E-lawresources.co.uk,(2015)]

There requirements for the sales of goods are:

Money consideration: There should be price money which is to be paid by the seller

to buyer in exchanging of goods.

Sale and agreement to sell: when the ownership of the property will pass immediately

to the buyer then this is called sale. But if any ownership will be transfer in the future

then it will be the agreement to sell.

Goods: There must be existence of the goods which will transfer from the seller to

buyer.

.

Implied terms are those terms which is used by the both the contracting parties for solving

their disputes.

Section 12 of the sale of goods act 1979 deals with the implied terms as title: this

section states that the goods must be in according with the title of the goods. The

supplier has to supply the good is as to title of the goods. It is include the private sale

situations where shopping has been made on online or shops.

Section 12 (1) state that seller has right to sell the goods.

Case: Rowland v Divall [1923]

In this case a stolen car has been sold by the defendant to the unknown car dealer.

Then car dealer paint that car and then sold out any customer. After 2 months the

police caught the stolen car. So defendant have not right to sell the stolen car because

he did not get any ownership over the car from the thief.

Section 12 (2) (a) states that the good must be free from any charge.

Section 12 (2) (b) the buyer has the right to enjoy the possession of the goods.

Case: Microbeads v Vinehurst Road Markings [1975]

Section 13(1) deals with the description: The goods which are sold by the seller in the

contract of sale of goods then it is implied term that the good must be in accordance

with the description.

Case: Harlington and Leinster V Christopher Hull Fine Art [1991

Section 14(2) deals with the quality: The goods which is sell by the seller in the

course of business then it is also the implied term that good must be sold in

satisfactory quality.

Section 14 (2) (a): The goods are of satisfactory quality if the goods meet the standard

that a reasonable person would regard as satisfactory.

Case: Stevenson v Rogers [1999]

The goods must be in satisfactory quality must have:

1. It is fit for the purpose for the goods is bought.

2. Must be finished and good appearance.

3. No default

4. Should be safe

5. Should be durable.

Section 15 (2): The goods must be in according with the sample in the contract of sale

of good. [E-lawresources.co.uk,(2015)]

So Mr. Adam and the store manager are come under the contract because there is sale of

goods exists. Mr. Adam buys a TV set from the departmental store. But according to the

implied terms the goods is not according to the section 14 means that the goods is not in

satisfactory quality. So Mr. Adam can file the suit against the departmental store under

section 14 of the sale of goods act.

P 1.2 Analyse and advice Mr Adam on the statutory provisions on the transfer of property and possession

Transfer of ownership of property: The main purpose of the contract for the sale of good of

contract is that the seller gets the consideration price and buyer get the ownership of the

goods which is pass by the seller. If any property is passes since a dispute is arise then it is

very difficult to find out that the parties has become insolvent, or the goods has been lost,

damaged or destroyed.

The rules which determining when the goods is passed is contained in SGA 79( as amended).

The rules depend upon the property.

The property is may be specific goods or ascertained goods.

Section 16 stated that if the goods are ascertained then the ownership of the goods

will be transferred.

Section 17 the goods will be transferred as per the intention of the parties no matter

whether the good is ascertained or specific good.

Section 18 stated the good will be pass when there is no clear intention of the parties.

Section 19 gives the right to seller that he will dispose the title of the goods which is

supply to the purchaser.

Section 20 the risk of the good is also pass when the ownership is transfer.

[Legislation.gov.uk,.(2015)]

Mr. Adam is deals with these provisions which is related to the transfer of ownership.

P 1.3 evaluate the statutory provisions on buyer’s and seller’s remedies in sale of goods contracts Seller remedy deals in section 49 and 50 of the SGA 1979.

1. Section 49stated that seller has right to take action against the buyer if he refuse to

pay the price of the goods. Then buyer gets remedy that he will compensate for the

payment of price. This will be calculated as the certain day and the date on which the

goods are delivered.

2. Section 50 deals that when the buyer refuse to accept the good. The seller is r

compensate by the damages which is measured as the difference between the contract

price and the current time at the time when the goods has been passed from the buyer.

Buyer remedy

1. Damages: buyer has right to claim for the damages but buyer has to show that from

the breach of contract that he has suffered any loss.

2. Rejection: the goods will be rejected by the buyer if the goods are not according to the

terms and conditions of the contract.

3. Specific performance: the court can pass the order to the party for the specific

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

P 1.4 apply product liability statutory provisions for faulty goods Product liability statutory provisions for the faulty goods are:

1. Liability in Consumer Protection Act 1987: if any individual is harmed by any

defective goods then he will sue the supplier under this act in strict liability. For file

the suit the individual has to prove that the goods must be defective. The court will

find out the goods is defective or not in various circumstances. If the goods is proved

that they defective then the consumer is compensated by the supplier. There is a

limitation period for filing the suit is 3 years from the date of product harmed.

2. Liability in contract: the buyer and seller are automatically entered in to the contract

when the buyer purchases the good form the seller. So if the good is not in

satisfactory quality then he will claim the damages.

3. Liability in tort: the consumer claim against the seller in tort if there is no contractual

relationship. The third party have right to claim it is not under the contract. But he has

to prove that the goods are defective.[ Gov.uk,.2015]

Task 2

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

P 2.1 Differentiate between types of credit agreements which Claire could use to obtain the new car.Consumer credit agreement Act 1974: this act is establishing for the protection of the

consumer’s interest which is regulated by the director general of fair trading, and others

traders. This act is amended by the consumer credit act 2006.

What is consumer credit?

Consumer credit is that in which the consumer get the loan from the business, traders, or hire

–purchase agreement for certain time period. And when the time period is over they have to

pay back the principal amount to the debtor.

1. Credit sale agreement

Credit sale agreement is used by the consumer for purchasing the expensive goods

like luxury goods, cars and other.

It is the loan which is taken by the consumer for certain period of time and the

consumer has to pay the equal monthly instalments.

The ownership of the goods has been transferred as soon as the contract has been

signed by the consumer.

2. Hire purchase

In hire purchase agreement the amount is paid every month on the item which is hire.

The ownership will not transfer until the payment is full paid up.

3. Hire contract

In hire contract the goods is hired in return of monthly payment.

Goods ownership has not been transferred.

When the contract is end then individual has to give back the item which is under the

hire contract.

If any person does not pay the outstanding money or not give back the goods which is

hired then the individual have the right to sue against the person for the outstanding

money and outstanding good.

4. Conditional contract

Conditional sale is also same like the hire purchase agreement. The ownership is also

not transferred until the payment has been fully paid up.

There is other condition which has been met by the individual before the receiving the

title of the goods.

5. Debtor – creditor- supplier Agreement

This agreement has been made by the creditor between the supplier under the existing

arrangements and any contemplation of the future arrangements.

Example of D-C-S agreement between the PC world and creditor who provide credit

to the debtor in future.

6. Debtor- creditor agreement

This agreement has not been made which is not the under the pre-existing

arrangements and in future arrangements and any contemplation of the future

arrangements.

P2.2 Analyze 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.The rules on the termination right which has been used by the Claire when she have the

trouble in paying the debts which is required under the contract.

1. In Hire –purchase agreement or in the conditional sale agreement debtor has to give the

written notice to the creditor that he/ she wants to end the agreement.

2. After the termination of the agreement the debtor has to pay the minimum amount in the

contract and return back the good in proper conditions.

3. section-94 to 97 is dealing with the early settlement of the debts.

4. There are various situations in which the both parties are terminated the credit agreement

before the time period.

Default notice

Default notice has been given by the creditor to the debtor. It is allowed in the section – 87

(1) of the 1974 Act in this creditor sent the notice and 14 days are giving from the date

received to pay the arrears. Default notice is including following information like

enforcement of the consumer credit, default notice and the termination notice of the

agreement. If any default notice is not containing the necessary information then it will

become ineffective and creditor will not allow recovering the goods until the debtor give his

consent for the recovery of the goods.

P2.3 Analyse the general features of Agency and differentiate between the different types of agent.Agency: when the agent is act on the representative of the principal, from this relationship

agency has been arises. It is the binding contract between the principal and third party.

Agency has been created by the express agreement. In this there is no formal requirement is

needed for creating the agency. It can be created by any mode either verbal, written or

through any deed.

Features of agency

1. The parties both principal and agent must have the capacity to enter in to contract.

2. One of the most important feature of the agency is that it saves times and resources.

3. There is no contract between the agent and the principal but there is always contract

between the principal and the third party.

Types of agent

Estate agents: Estate agents are deal with the tangible property or the real property on

owners’ behalf.

Factors: Factors are dealing with the tangible property.

Brokers: Brokers are one who deals with the intangible property.

Auctioneers: auctioneers are the person who deals with the tangible property and he

also made the auction.

Commercial agents: Commercial agents are those which they have power to sell and

buy the product and they are also independent contractors.

Directors: Agents of the company is known as directors and the individual who are

agents of each other is known as partners.

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position once she becomes an Estate Agent. There are various right and duties of the estate agents. As if Claire has to take the position of

the estate agent then she has certain rights and duties which are available under the contract

when it is exist or when the contract is not exist.

Duties of the Claire

When there is no necessity of the contract between the agent and principal.

1. First duty is the fiduciary duty which is related to the honesty. Honesty means that no

taki9ng out any secret profit, there no conflict of interest, and have good faith.

2. Agent has the duty of skill, care and diligence.

When there is necessity of the contract between the agent and principal.

Performance and obedience.

Rights of the Claire

These are certain right which exists when the contract is exist.

1. Right to get the remuneration.

2. Right have to lien over the property at their disposal.

When contract is not exist then right of Claire is to get the reasonable expense.

Task 3

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

P 3.1 outline monopolies and anti-competitive practice legislation in the UK

Monopoly: If there is any firm who have the monopoly in the market then it is threat to the

competition of the UK market.

If any firm have the control 25% over the market then monopoly is exist.

If the monopolies and merger commission investigate conducted and they have 25%

control over the market then there is existence of monopoly.

Monopoly can be develop in the free market system through:

1. Success power of the product in the market.

2. Horizontal merger between the companies which are under the same industry.

UK has the threat of the monopoly power by large firms. UK government is concerned with

the regulating markets. The monopolies and merger commission have power to investigate

the cases which is referred by the office trading and they decide the case according to the

competition law and consumer law. In Uk monopoly is illegal.

Importance of competition

It is beneficial for the competitors.

Consumer gets the good on low price.

There is various choice of the product.

Quality of the product is good.

More choice.

Anti –competitive practices are prohibited under the act. It is prohibited in two ways under

the UK competition act:

1. By prohibiting the anti-competitive agreements.

2. By prohibiting the abuse of dominant positions.

3. They are similar but they effect in UK and EU.

Competition act 1998: This act regulate the competition it the market. It prohibited the

monopoly, abuse of dominant position, and anti- competitive agreements.

Article 101: It is related to the anti-competitive agreements. In this article the agreements

which restrict the trade or distort the competition will be prohibited.

Article 102: competition act also prohibited the abuse of dominant position.

P 3.2 explain the role of the Competition Commission within the context of monopolies and anti-competitive practices and the UK Office of Fair Trading

Competition commission is a body which is responsible for the investigating the mergers and

other inquires which is related to the industries which are regulated in the UK. Competition

commission replaced the monopolies and mergers commission.

Role of competition commission is:

Investigate the mergers, market and other regulated industries for making healthy

competition in the market.

Competition commission deals with the case which the reference of the office of

fair trading.

It deals with the appeals.

Office of fair trading:

The office of fair trading in Uk have to ensure that business is complied with these

regulations.

If there is suspect that there is breach then he having power to investigate.

Enforcement can be taken.

P 3.3 define dominant positions within the EU common market

Dominant position: Dominant position is that in which the firm have some market share or

have some control over the market. If any firm who have the dominant position then business

is bale to act independently in the market with its customer, competitors, and the consumers.

If any firm who have the 50% then the firm is in the dominant firm.

Abuse of dominant position is deal under the chapter -2 of article 102 of the competition act.

In UK and EU the abuse of dominant position is the illegal business which has control over

the market and they exploit the consumer by imposing various conditions, discrimination of

price, refuse to provide the essential facility because they have the strong market positions.

According to article 102 TFEU the instruments which are used for checking the abuse of

dominant position are:

If any unfair practice is imposed on purchasing or selling prices of the product.

By limit the production of the product.

By applying the different conditions on equivalent transaction.

Charging different price from the different customers.

By imposing the predatory price in which the firm sell their goods at the below the

cost for driving out the competitor from the market and when the competitors are

drive out then they will increase their prices for recover their loss they suffer.

By imposing the condition that producer avail the goods if the consumer buy other

product or give promise to him that he will not buy product from other supplier.

Exemptions:

1. If the dominant company show the justification for the abusive behaviour.

2. Firm shows that the abusive is necessary in protection of business.

P 3.4 consider the application of EU exemptions to potentially anti-competitive practices Any firm who using the dominant position in the market it will be prohibited because it

effect the trade of the member states and it is also incompatible in the market.[Bell, Gillian,

(2015)]

Exemptions

If any firm shows that the abuse of dominant positions is give the justification for or

show the situation in which abuse of dominant position is necessary.

If the firm show that the abuse of consumer is necessary for the circumstances.

The earning benefit is distributed among the consumers and the distribution has been

made on without any discrimination.

The production of the goods and service is for the development of economy.[Bell,

Gillian(2015)]

Task 4

Know the key provisions relating to intellectual property rights

P 4.1 Identify differing forms of intellectual propertyIntellectual property: Intellectual property is the form of the original work which acne be

bought and sold in the market. Intellectual property is the intangible property. In Uk the act

deal with the intellectual property is the intellectual property act 2014 which is includes all

the registration process, infringement, remedies etc. [Gov.uk,.(2015)]

There are four main types of intellectual property in which right is granted.

1. Patents

2. Trademarks

3. Designs

4. Copyright

Patent: patent is given for the new invention not for the discovery. The owner of the

invention has the right to prevent the person to make use, sell of the invention without his

permission. Patent has been given for the 20 years from the day when it is registered.

Trademark: Trademark is the mark which distinguish the good and service form one

another.

Copyright: copyright is the protection which is given to the new idea, which is expressed.

Design: Design also protected, it includes shape, colour, text of the product etc. [Gov.uk,.

(2015)]

P 4.2 Outline the principles relating to the protection of inventions through patent rights and their infringement in a given business scenario

Patent is given to the new inventions not for the discovery. Patent has been given to the

patentee and patentee has the right to prevent the other person for using, selling the invention

without the permission of the patentee.

Example: big brother star and Jon Tickle has told his housemate that they invent the toaster in

which there is a delayed release for the second slice of toast.

So there is rule for taking the patent that the ideas should be kept secret until the patent is not

given on the invention. [Inbrief.co.uk,(2015)]

Patent has been providing when these conditions are satisfied:

1. There must be the inventive step.

2. The invention step is not obvious.

3. The invention has use in the industry.

Patent is granted for the period of 20 years from the date when it is registered. The first four

years patent has been renewed each year. If any patentee fail to renew the patent then other

party is free to use the invention without any infringement. [Inbrief.co.uk,(2015)]

Infringement of patent:

1. If any person makes use, sell the process patent or the product patent without the

permission of the patentee then there is infringement is exist.

2. Patentee has the right to take action against the infringer.

3. Action which is taken against the infringer are injunction, destroy the infringing

copies, provide damages. [Inbrief.co.uk,(2015)]

P 4.3 Describe the principles relating to copyright protection and their infringement in a given business scenario

Copyright is the right which is given by the government for the new ideas and for the

original work. Copyright is regulated through the copyright, Design and patent Act 1988 in

Uk. The works include:

4. Any literary work like novel, any lyrics song etc

5. Dramatic work which include dance and dramas.

6. Musical works

7. Artistic work includes the painting, drawing, sculptures, etc.

8. Recording of any work like films, music etc.

9. Broadcasting of work. [Inbrief.co.uk,(2015)]

Copyright protection has been given for the period of 70 years from the end of the calendar

year in which the author dies.

1. There is 50 years limit for the protection of the work which is computer generated.

2. There is 25 years duration of the protection for the typographical arrangements.

There are exclusive right which is given to copyright owner under section 16 (1) are:

1. Owner has right to display in the public.

2. Right to make the copies of their original work.

3. Display the work through any drama, film or any other mode to the public.

4. Right to adapt the work.

Any person cannot make use, sell, or display in the public the copyright work without the

permission of the copyright owner. If he make, sell or display in the public then he make

infringement of the right of the owner. Owner has the right to compensate, he can file suit

and get the damages which he suffers. [Inbrief.co.uk,(2015)]

Remedy which is given to the copyright owner is:

1. Injunction

2. Damages

3. Force to the infringer that to destroy the copies of the original work. [Inbrief.co.uk,

(2015)]

P 4.4 Compare and contrast the protection of trademarks and business names.1. Trademark is the mark which is distinguishing the good and service form one another.

Business name is the name which is used for the operating of the business.

2. It can be registered through the intellectual property office. Trademark includes any

logo, any words or the combination of both. Business name is not necessary to

register but if any person using the business name which is his not own then he has

need to register.

3. Trademark is given for the period of 10 years from the date on which the trademark is

registered. Business name no time period is fixed.

4. Trademark is the exclusive right in which any person uses the trademark than he can

stop him for using the mark. But in business name any person makes use of their

business name and the owner has no right to stop him by using his right. [Gov.uk,.

(2015)]

References Bell, Gillian. 'Competition Law - The Basics'. Out-law.com. N.p., 2015. Web. 25 June 2015.

E-lawresources.co.uk,. 'Sale Of Goods Act 1979 And Supply Of Goods And Services Act 1982'.

N.p., 2015. Web. 25 June 2015.

Gov.uk,. 'Intellectual Property: Trade Marks - GOV.UK'. N.p., 2015. Web. 25 June 2015.

Gov.uk,. 'Product Liability And Safety Law - Detailed Guidance - GOV.UK'. N.p., 2012. Web.

25 June 2015.

Inbrief.co.uk,. 'Copyright Infringement: Remedies & Defences'. N.p., 2015. Web. 25 June

2015.

Inbrief.co.uk,. 'Patent Infringement: The Main Defences'. N.p., 2015. Web. 25 June 2015.

Inbrief.co.uk,. 'Abuse Of A Dominant Position'. N.p., 2015. Web. 25 June 2015.

Gov.uk,. 'Intellectual Property Office - GOV.UK'. N.p., 2015. Web. 25 June 2015.

Legislation.gov.uk,. 'Sale Of Goods Act 1893'. N.p., 2015. Web. 25 June 2015.