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Diploma in Business
Unit Number and Title
Business Law Assignment Help
This business law assignment will explains various concepts Sales of Goods and Services Act like implied terms, remedies of buyer, etc. it will also cover the protection given to the consumer’s through the Consumer protection Act for the supply of defective goods. Product liability is another aspect which has been explained in this report with the application in a situation. Another concept which is covered is derived from the Credit Agreements Act. Different types of credit agreements are been explained in this report along with the restriction over their usages. Even the concept of termination and default of regulated agreements is tried to explain. Another field covered by this report is agency. The creation of agency and agency’s authorities will be described along with the rights and duties of the agent. Thereafter this report describes the concept of monopoly and different business organization working for the same. Lastly, the different types of intellectual property are been elaborated in this report with their implications and methods of preserving the same.
Section 13 of Sales of goods and Supply of Services includes implied condition on sales of motor vehicles. It says that every contract related to the sales of a motor vehicle excluding the contract with the buyer dealing in sales of motor vehicle, an implied condition applies. This implied condition states that at the time of delivery, the vehicle delivered in accordance with the contract should be free from any defects rendering danger to the public, including the persons travelling in the vehicle (legislation.gov.uk, n.d.).
In the present situation it becomes the duty of Emmanuel to deliver the car free from all the defects which may cause danger to the public life, according to implied condition mentioned in Sales of Goods and Supply of Services. Here Emmanuel promised John to carried out the agreed repairs and the repairs where been made. But before the information is made to John the car gets destroyed in a fire. Now Emmanuel is liable to pay back the advance money given by John as a situation is created where the performance of contract is impossible. Hence the contract gets terminated and Emmanuel becomes liable to compensate Joe for the losses suffered by him.
Buyer’s remedies for non-delivery: (Section 51)
Receiver: A receiver is appointed by the court for taking custody, managing, and preserving money or property subjected to litigation in regard with the availability of property for the accomplishment of order, when the final judgment is rendered (TheFreeDictionary by Farlex, 2014) In the present situation we can conclude that James, David and Paul ordered 200, 200 and 600 computers consequently from Joe and give all the payment in advance for the order made. In spite of knowing the fact that there are only 500 computers in stock Joe entered into sales agreement with them. Joe becomes insolvent thereafter. Now claim lies for James, David and Paul as there is a breach of sales agreement by Joe. Now receiver should consider the claim and then ascertain the assets of Joe.
In this situation Rachel suffered losses due to the drink supplied by “Fox on the Hill” for which compensation should be given regarding the losses suffered. Due to the supply of defective drink by “Fox on the Hill” and injury suffered by Rachel in result makes the pub liable for the losses. If in this situation George would be the manufacturer of the drink, then the liablity for the losses incured by Rachel would lie upon George and not on “fox on the Hill”. As the loss incured due to involvement of manufactuiring defect which cannot be influenced in any circumstances by the supplier. Therefore George will be held liable for the losses. The manufacturer will be held liable if any of the goods suppliers is defective under the Consumer Protection Act 1987. Along with this under the statutory law over any injury that the product causes will make the retailer, manufacturer, supplier and distributor and this liability is not taken as the liability mentioned in the contract (pinsent Masons, 2011).
Defective goods: Under this Act, goods which affect the safety of the consumer including not only personal injury risk but also property risk (pinsent Masons, 2011).
Remedies of buyer for defective products over seller: Under Part 1 of Consumer Protection Act, various liabilities arise over suppling of defective products. In this Act, products that are used at work and products that are used by the consumers, both are covered. Through this act strict liability is imposed over the manufacturers of the defective goods causing harm to the consumer. This imposition of liability gives consumer right to sue for damages without proving that the manufacturer was negligent regarding the same.
Product liability: Product Liability deals with the cases resulting in personal injuries. These things arise from the Consumer Rights which are overcome for avoiding harm. Protection of interest and rights of consumers are considered to be the basic principle of Consumer Protection. The responsibilities on the part of manufacturers or retailers are been possessed by this law to consumers. If any disputes arises regarding the same then the consumers are guaranteed with the remedies and settlement of dispute in accordance with this law. If the standard quality of goods and services are not been provided to the customers, then the consumer is entitle to claim remedy under Consumer Protection Act 1987 (LSI, 2014).
Here in the present situation the hotel is liable for the losses incurred by Rebecca, as the quality of services are not been provided by them. The product liability concept bound the hotel management to avoid harm caused to their customers from the services provided by them. Hence Rebecca is entitle for remedy for the losses incurred by her due to lack of quality services made by the Hotel.
Consumer credit agreement: It is a type of agreement made between an individual (debtor) and any other person (creditor) in accordance of which a credit amount is given by creditor to debtor (legislation.gov.uk, n.d.).
Debtor-creditor agreement: This is considered as a restricted use of credit agreement which is not created by creditor for any pre-existing arrangement or in contemplation of any future arrangements between the creditor and the supplier (legislation.gov.uk, n.d.).
Restricted use of credit:
Consumer credit agreement restricts the use of credit agreement in following ways:
And along with the all above mentioned situations the “restricted-use credit” shall be construed accordingly (legislation.gov.uk, n.d.). In this situation the bank can terminate the agreement as the basic condition of the agreement is violated by John. This situation would fall under the restricted use of credit as nothing was mentioned in the agreement which would provide a right to make use of the credit for any purpose by John. Hence, the loan would be sanctioned only for the purpose of buying car and if such purpose is changed then the bank gets right to terminate the contract.
Termination of Regulated Agreements:
In this present situation Mr. Ali has paid more than one-third of the amount of the car. Along with this no default has been made in regard with the payment. Hence repossession cannot be made.
Rights of agent
Duties of agents:
In the present situation there was an agency formed for a fixed period of 10 years. In a fixed term agency, the principal does not have right to terminate the agency before the expiration of the term, except for sufficient cause. Therefore, here Joe will not be consider liable for the termination as due to destruction of factory by storm leads to insolvency for Joe. Hence no legal action lies by Jude for loss of income as termination was made due to a sufficient cause.
Monopolies and mergers legislation:
Anti-competitive practices: In UK monopoly is demarcated as covering 25% of the market share of any particular business. Occasionally the business of this nature is battered, as it is having a lot of market power. One of the most common forms of abuse is ‘anti-competitive’ practices where efforts are made by large business to create problems for smaller businesses basically to make them out of business.
Restrictive practices: Following are the examples of restrictive practices:
UK competition legislation:
The office of fair trading: The Office of Fair Trading protects and promotes consumers interest in UK, along with this ensuring them fair and competitive businesses. Its job is to make market conditions good for consumers and this could be done when the markets are in open, fair and vigorous competition with each other for the consumer’s custom (European Consumer Centre for Services, 2014).
Competition commission: It is a body set up by the UK government for the regulation of mergers and monopoly power in UK markets. The competition commission replaced the Monopolies and Mergers Commission. The work has been bifurcated the department of recommendation over the issues is handled by the Competition Commission, whereas the department of enforcement of rules is handled by the OFT and the government (Economic.help, n.d.)
The Article 101 of the Treaty on the Functioning of the European Union prohibits the agreements and practices affecting the trade between EU member states and preventing or restricting the competition prevailing in the internal market. For an exemption to Article 101, following conditions should be satisfied:
New Block Exemption Regulation: This regulation exempts certain categories of vertical agreements and concerted practices from the application of Article 101. An agreement which falls under Block Exemption Regulation should satisfy the conditions given above, resulting the parties to ‘vertical agreements’, which means agreements made between undertakings operating at different levels of the supply chain like supply, distribution and franchise agreements, modeling there agreements according to the parameters of the Block Exemption Regulation.
Safe Harbour Rules: The supplier should not have more than 30 percent market share for enjoying the benefit from the Block Exemption Regulation. The market share requirements are referred to as the ‘safe harbour’ within which an exemption can apply.
Intellectual property as the name suggests in the right or property of the mind, it is the result of creativity, an intangible asset and these are the creations that come through a person’s mind and intellectual rights protect these rights (Loh, 2013).
The various forms of intellectual property are as following:
The patents are helpful in business in many ways which are discussed below:
If the patent has been infringed: The infringement of the patent means that a person other than the patent holder has manufactured, sold, or imported the patent without the approval of the patent holder
The following points can be stated in defence in case of infringement: Firstly the person can state that what he/she has done is not infringement of the patent and hence no violation of law has been committed (IPO, (N.D.))
Principles related to copyright protection:
The following rights are leveraged by the copyright owner; and he/she has the right to authorise or to prohibit the following (CARET, 2005):
Infringement of the copyright: A person is guilty under the violation of copyright if he/she is found practicing any of the above mentioned points in a deliberate or unintended way without the permission of the copyright owner. In case of infringement, one needs to make sure that it does not fall into copyright exceptions. And if the above two conditions are fulfilled the copyright has the right and power to take any legal action against the violator and can claim damages, injunctions.
The protection of trade mark and the protection of business names are two different things. Both get registered separately. The differences are as following:
The use of a company name can infringe a registered trade mark: The name of your company is very important as the company name that is similar to a registered trade mark would violate the trademark which is already registered. Therefore, one must check the name in the registered companies as well as in the trademark registers before the registration of their company name The infringement of a registered trademark may take place even if the use of a company name began before the date of a trade mark registration This is applicable only if the name is used in a specific locality, and it is so extensive that passing any action could be brought against the owner of the trade mark registration and the owner of the trade mark has no use earlier by himself of the trademark in question The trademark is registered for a limited period and business name can be everlasting. Therefore getting a company registered does not mean getting a trademark registered for the company, hence for avoiding the risk involved every company along with registering the company name should also get the registration done for the trademark used by the company.
Various topics of Sales of Goods and Services have been elaborated in this business law assignment including what all remedies are entitle to the buyer and the meaning of implied terms in this context. This has been supported with the protection provided under the Consumer Protection Act to the consumers for the defective products. Even the product liability and its imposition in business management situation have been explained in this report. It has been noticed that this report focus on Credit Agreement Act by explaining different types of credit agreement and even the rules for the termination and default made for the same. Another topics covered by this report are Agency and Monopoly. In support of agency, the creation and authority of agency has been described. Whereas for monopoly the meaning and the organizations involved for the same has been given in this report. at the last this report support the concept of intellectual property by explaining its different types and the implications regarding the same.
business and IP centre, (n.d.). Intellectual property (IP). Learn about Patents, Trade marks and other forms of IP. [Online]
Available at: http://www.bl.uk/bipc/dbandpubs/intpropres/ [Accessed 14 November 2014].
CARET, 2005. 3.2.1 What are the rights of copyright owners?. [Online]
Available at: http://www.caret.cam.ac.uk/copyright/Page130.html [Accessed 16 November 2014].
Economic.help, n.d.. Competition Commission UK. [Online]
Available at: http://www.economicshelp.org/blog/glossary/competition-commission/ [Accessed n.d. n.d. n.d.].
e-lawresources, n.d. Statutory Implied Terms. [Online]
Available at: http://e-lawresources.co.uk/Statutory-implied-terms.php [Accessed n.d n.d n.d].
European Consumer Centre for Services, 2014. www.ukecc-services.net. [Online]
Available at: http://www.ukecc-services.net/OFT.cfm [Accessed 2014].