SCHOOL OF MANAGEMENT MBA-I

SEC- A & B CORE COURSE : LEGAL ASPECTS OF BUSINESS Max Marks : 30 DISCUSS THE FOLLOWING CASES AND SUBMIT YOUR REPORT ON EACH CASE WITH YOUR DECISIONS AND THE REASONS FOR SUCH DECISIONS WITH RESPECT TO EACH OF THESE CASES CASE No. 1. On 5 August, 2011, Big Bazar, Patia, Bhubaneswar published the following Advt. in a news paper: SATURDAY 9 AM sharp 3 brand new fur coats worth Rs. 8,000 each First come First served for Rs. 500 each Akasdeep was the first person at the appropriate counter on 7, August, 2011 (Saturday) to buy the advertised goods. The store however refused to sell the goods to him stating that by a house rule the offer was intended for women only. Next Saturday, in response to a similar Advt. by the Big Bazar, Patia in the newspaper, again he could manage to be the 1st person at the appropriate counter of the Big Bazar to buy the fur coat at Rs.500/-. Again the same answer was given to him by the sales person. Being upset, he filed a case in the court of appropriate jurisdiction in Bhubaneswar with a prayer to force Big Bazar, Patia to sell the goods to him as per the promise made in the advertisement. Decide.

CASE No. 2. ACCOMODATION WANTED FOR OPENING A NEW BRANCH STATE BANK OF INDIA requires suitable premises at Bhubaneswar, preferably in Patia Area, on lease basis. y y The premises should be with carpet area between 1500 sq ft. to 2000 sq ft. on ground floor/first floor, with parking space Interested parties may send their technical & financial offers in two separate sealed envelopes (to be super scribed offer for premises for proposed branch at Patia area, Bhubaneswar)

Technical bid should contain technical specifications like size, location of the premises, approved plan, parking area etc. Financial Bid should contain the financial aspects of the lease premises including expected rent and other terms of the lease. The Bank reserves the right to accept or reject any or all offers without assigning any reasons what so ever.

The offer should reach the following address: Assistant General manager, State Bank of India, Local Head Office, Bhubaneswar

Answer the following:

1. Identify the invitation to offer, the offerer, the acceptor 2. From whom the tender is sought 3. What is the significance of the statement: The bank reserves the right to accept/reject ..whatsoever ? 4. Would it make any difference if this declaration were not there in the Advt.? 5. Lets assume that the Bank settles a bid by a person called Ms. Shruti Agrawal and writes to her that the Bank accepts the offer to lease the premises w.e.f. 1st August, 2011. But now Ms. Shruti Agrawal is not willing to lease her premises and claims that she was only prospecting & exploring different options. A dispute arise; and the Bank files a petition in your court. Decide.

CASE No. 3.
Food Corporation of India (FCI) introduced a scheme of granting compassionate appointments to the dependants of departmental workers. The scheme had several terms, including the following: 1. The worker should seek voluntary retirement on medical grounds before completing the age of 55 years 2. Such request should be accompanied by a medical certificate issued by an Authorized medical officer, subject to verification by FCI. 3. The benefit of compassionate appointment shall be given only to a male dependant (of the age group between 18 years and 30 years, that too in the handling labor category, subject to an authorized medical officer confirming the medical fitness of such dependant to handle/ carry bags of big size. 4. The application for compassionate appointment shall be made in the prescribed form, within three months from the date of retirement. 5. Compassionate appointment will be given only in deserving cases, i.e., where there is no earning member in the family of the retired worker, or where it is found that the financial benefits which are available to the worker on retirement will not be sufficient to meet the needs for running the family

6. The scheme designated the Sr Regional Manager/Regional manager as the competent authority and made it clear that compassionate appointment would be discretionary. The scheme stated : 7. Notwithstanding anything contained in the above, the compassionate ground appointment is not as a matter of right but purely at the discretion of the competent authority taking into account the circumstances and conditions of the family of the medically retired workers and also subject to availability of the vacancy. Mr. Yadav was working as an employee in the Azamgarh Food Storage Depot of FCI. His date of birth was Feb 6, 1944. In the usual course, he would have attained the age of superannuation on Feb 6, 2004. He made an application on April, 26 1999 seking voluntary retirement on medical grounds nd compassionate appointment of his son Ram Kesh Yadav. The application was as follows: Sub : Appointment of my son Sri Ramkesh in consideration of my retirement on medical ground. As I am unable to do handling work of loading due to inability of carrying bags, I desire to go on retirement on medical ground, if my above named son would be provided with an employment in my place as handling labor. Further, I am the only earning member of my family and on my retirement if none of the family is employed, the entire family would be put to suffer hardship. Kindly allow me to go on retirement on medical ground and provide employment to my above named son in my place as handling labor . Following the application, the appropriate and competent authority retired him from the service thru a letter dated July 29, 2000. The retirement was with effect from July 31, 2000. The Azamgarh branch of FCI, forwarded the proposal dtd. May 26, 2000, to its Lucknow, Regional Office, for appointing Ram Kesh Yadav on compassionate ground. The Regional Office rejected the request on the ground that Mr Yadav was aged 55 years 2 months and 20 days on the date of his application (April, 26, 1999) as against the maximum age of 55 years prescribed under the scheme. Thus he was not eligible under the scheme. Mr Yadav had understood all along that his retirement and compassionate appointment went together. The son approached the court for appointment. Decide