Business Law

A1. The Consumer Protection Act of 2019 is a law that attempts to defend a consumer's rights. It
also creates authorities, efficient administrative procedures, and venues for consumer education.
The act's rights are clearly outlined and are intended to shield consumers against exploitation by
dishonest, unethical, or duplicitous merchants and service providers. Consumer rights are intended
to guarantee that free and fair-trade practices are upheld in the marketplace and to stop harassing
customers who may or may not be aware of the legal protections that are available to them. The
Consumer Protection Act of 2019 protects the following six rights:

1. The right to be Protected.

2. The right to informed.
3. The right to be assured.
4. The right to be heard.
5. The right to seek a redressal.
6. The right towards consumer awareness.

Now let’s talk about these rights:

1. The right to be Protected:

• This right has been granted in order to protect customers from dangerous goods or
products that might endanger their lives. This right has developed from provisions of
other laws that were in effect prior to the passage of the Consumer Protection Act of
1985. The laws including:
• The Prevention of Food Adulteration Act, passed in 1954, establishes guidelines for
food inspectors to avoid food adulteration. Restrictions on the manufacturing,
import, and sale of a certain item. For those who break the law, penalties are
included.
• The Drugs and Cosmetics Act of 1940 governs the importation, production,
distribution, and standards of medications and cosmetics. It also specifies the
minimum standards that must be adhered to throughout the manufacturing and
packaging processes.
• The Bureau of Indian Standards Act of 1986 calls for the establishment of a bureau
with the authority to develop, disseminate, and advertise Indian Standards for goods
or procedures. It also mandates certification for a variety of goods, including food
items like milk powder and electrical equipment like heaters, fans, and irons.
2. The right to Informed.
• To protect the customer from unfair business practices, it means that they have a
legal right to information about the nature, scope, potency, purity, standard, and
cost of the products they purchase. Before choosing or making a decision, the
consumer should insist on acquiring all the facts about the item or service. This will
empower him to make moral decisions and prevent him from succumbing to high-
pressure sales tactics.
• The fake ways of marketing the product is also considered unfair trade practices. It is
crucial for the manufacturer to print the pertinent information so that a consumer is
sufficiently aware of the product being used by him in an era full of stories of food
adulteration, the use of toxic chemicals in cosmetics and food products, and rising
concerns about health and the subsequent awareness among people.
 • As a result, we see a variety of logos on FMCG products, including the well-known
green and red symbols designating vegetarian or non-vegetarian food, the CONTAINS
CAFFEINE logo on soft drink bottles and coffee and tea packets, the Nutrition Table
and Ingredients printed on the packaging of food products to inform health-
conscious people specifically and also people in general, as well as Allergic Warnings
published to inform people with allergies.
• For the first time in India's history of consumerism, section 21 of the Consumer
Protection Act, 2019 contains tougher measures for regulating deceptive and
fraudulent marketing and taking action against brand endorsers. The Central
Authority has been given the authority to impose penalties under the act, including
up to Rs. 10 lakhs and two years in prison for manufacturers and sellers, and up to
Rs. 50 lakhs and five years in prison for repeat offenders.
3. The right to be assured:
Economic reforms in early 1990 brought in plethora of options in almost all the
goods and services. The increased number of manufacturers for the same product
ended the monopolistic practices and encouraged competition in the market
resulting in better options and competitive prices. Wherever possible consumers
should get choices and a variety of options with respect to price, quality in goods and
services. In 2003, the government enacted the Competition act, 2002 which aimed to
prevent practices having adverse effect on competition, to promote and sustain
competition in markets, to protect the interests of consumers and to ensure freedom
of trade carried on by other participants in markets it replaced the archaic Monopoly
and Restrictive Trade Practices Act, 1969. It was introduced to avoid the formation of
cartels, parallel pricing, controlling production to increase prices and any other
activity that have adverse effects on competition and which are anti-competitive.
Hence, today we see no monopoly in certain sectors which are and now becoming
essential for a human being such as FMCG, Electronics, Apparels and etc.
4. The right to be heard:
Every consumer has a right to voice their concerns before the dedicated platform,
and the Consumer Protection Act of 2019 defines this right as the right to be heard
and the assurance that consumers' interests will be given due consideration before
the appropriate forum. The act establishes the dispute redressal commissions at
district, state, and national level under Sections 28, Section 42, and Section 53 of the
act, respectively. In accordance with the new Act, a consumer has the option to file a
complaint with the local consumer forum at their place of residence or employment.
The Consumer Protection Act of 2019's Section 34(2)(d) specifies that complaints
should be made at the place of purchase or the seller's office address. This is
different from the previous practice. With the new law, customers will be able to file
complaints online and communicate with parties through video conference. This
approach lessens the hassle and is simple. Before, there was no provision for video
conferencing. The definition of the consumer is further expanded in the 2019
legislation to encompass e-commerce transactions, which was not the case in the
prior statute. Anyone who purchases any items, whether through physical or digital
transactions, electronic methods, teleshopping, direct selling, or multi-level
marketing, is now included in the term (Section 2(16) of the Consumer Protection
Act, 2019).
5. The right to seek a redressal:
 The most potent tool in the consumer's arsenal is this right since it validates the
entire purpose of the action it seeks to fulfill. This protection is offered against
deceptive consumer exploitation, unfair business practices, and trade restrictions.
Additionally, it aims to uphold all other consumer rights stipulated in the legislation.
The primary goal of the right is to offer a quick and affordable means of resolving
disputes. Establishing a consumer dispute resolution process was a step toward the
Right to Be Heard, while the infrastructure for the Right to Seek Redressal is provided
by the Act through the operation of these commissions, the relevant jurisdiction, the
mediation cell, and the appeals process.
6. The right towards consumer awareness:
It is important to make consumers aware of the various provisions of various laws
that support consumer protection and promotion in order to achieve the goals of the
Consumer Protection Act, 2019. A very competitive and malpractice-free market
order is built on informed consumers. When unethical business activities like
adulteration, the use of harmful chemicals, and the use of illegal materials are
examined and monitored, consumer education also contributes significantly to the
healthy growth of society. The right has led to the establishment of several non-
governmental organizations (NGOs) that offer legal aid to customers who have been
wronged, educate consumers about vital laws that they may demand be followed in
daily life, and publish updates on the consumer protection area. A well-read
customer rules the market.

A2. The Trademark Act, 1999: A "trade mark" is described in the Trade Marks Act's section 2(zb) as
"a mark capable of graphic representation and which is capable of distinguishing the goods or
services of one person from those of others and may include shape of goods, their packaging, and
combination of colours...." In plainer terms, a trademark offers protection for images that identify
and relate to an item or service, such as words, colours, forms, and symbols. It's interesting to note
that a trademark application need not be submitted in regard to a mark that is already in use (but
may be submitted in regard to a mark that is expected to be used in the future). The two main
conditions for registering a trademark are that it should have a mark that can differentiate the goods
or services from those of competitors and that it can be represented graphically. According to the
Trade Marks Act, there are several conditions that must be met before a mark may be refused
registration. These conditions include: (a) the mark must have a distinctive character; (b) the mark
must not be misleading or confusing to the public; (c) the mark must not be offensive or scandalous;
and (d) it must not be obscure or scandalous. The law includes relative reasons for denial of
registration in addition to absolute grounds, such as resemblance to already-registered marks.

For e.g., Sun Pharmaceutical Industries Limited vs Cipla Limited: The Applicant/Defendant in this
case was accused of violating the Respondent's copyright and trademark, and the
Respondent/Plaintiff filed a lawsuit for a permanent injunction against them before the Madras High
Court. A temporary injunction in favor of the respondent/plaintiff was issued by the court in this
case. The applicant/defendant then submitted three petitions with a request to reverse the
emergency-based temporary relief that had been granted. The argument was that the medications
were in great supply, had a one-year shelf life, and were in high demand since they reduced the
symptoms of the Covid-19 epidemic and were available only in large quantities. As long as the
balance of convenience remained to favor the Respondent/Plaintiff, the court determined that they
had shown a prima facie case for extending the temporary injunction. Despite the fact that the
nation was experiencing a medical emergency that had never been seen before, the Court noted that
they could not let a party to violate another person's intellectual property rights. The interim
injunction was maintained by the court, and it was decided that it would stay in effect until the case's
conclusion.

The Patent Act, 1970: Any new innovation is protected by a "Patent," which is a type of intellectual
property protection. A registered patent is an exclusive right that safeguards the inventor's rights and
forbids unlawful use and theft by third parties. A patent is issued for a period of 20 (twenty) years
beginning on the day the application is submitted. It is important to note that a patent for a new
invention is only registered if the invention is "novel" and "original," meaning that it has not been
introduced in the public domain in India or anywhere else in the world; is "capable of industrial
application," which refers to the ability of the invention to be used in an industry; according to the
Patents Act, an invention that must use "inventive steps" is one that "involves technical advance as
compared to the existing knowledge or having economic significance or both and that makes the
invention not obvious to a person skilled in the art."

For e.g., TVS Motor Company Limited v. BAJAJ Auto Limited: One component of this issue deals
with patent infringement, while the other is concerned with the prompt resolution of disputes
involving intellectual property rights. In this lawsuit, TVS Motor Company (Defendant) was accused of
using the proprietary Digital Twin Spark Ignition (DTS-i) technology without authorization. BAJAJ Auto
Limited (the Plaintiff) owned the DTS-i as its exclusive property. Plaintiff submitted a patent
application for the technique in the year 2002, and a patent was issued in the year 2005.

According to the Patents Act, each inventor whose patent has been registered is given the following
rights:

With regard to a product with a patent, the right to stop third parties from using, selling,
manufacturing, importing, etc. the product without the original inventor's consent; and with regard
to a process with a patent, the right to stop third parties from using, selling, offering, etc. a product
obtained from that process without the original inventor's consent. India also participates in the
Patent Cooperation Treaty (PCT), which enables applicants to submit an application for the
registration of an international patent. An innovator can get patent protection concurrently in several
nations (PCT members) by submitting such an application.

A3, a. The two major categories of unincorporated and incorporated forms of organization refer to
various operating legal frameworks for firms or entities. Liability, ownership, management, and
taxation are all governed by these frameworks. Here is a description of each:

Unincorporated Forms of organisations:

• Sole Proprietorship: In a sole proprietorship, just one person owns and runs the company. It
is the most straightforward structure for a company. The owner has total authority over the
running and financial success of the company. However, the owner is also personally liable
indefinitely for all debts and obligations incurred by the company. As a result, their personal
assets may be used to meet financial commitments to the company.
• Partnership: In a partnership, two or more people (called partners) work together to operate
a firm. In limited partnerships, there are both general partners (who have management
control and liability) and limited partners (who have limited liability), in addition to the
 general partners (who share management and liability). According to the rules of the
partnership agreement, partners divide earnings and losses.

Incorporated Forms of organisations:

• A corporation is a separate legal entity from its owners, or shareholders, in the case of a firm.
It is established by registering within the legal framework of the nation in which it is active.
Companies can be either public or private. While public firms can make their shares available
to the entire public, private corporations can only have a small number of stockholders and
are not listed on the stock exchange. The typical cap on an investor's liability is the amount
invested in the company's shares. The company's board of directors is in charge of
supervising the management.
• The Limited Liability Company (LLC) combines aspects of partnerships and corporations.
Members are the owners, and their financial involvement in the business is the extent of
their obligation. LLCs provide freedom in taxation and management. An LLC may be run by its
members or by hired management, depending on the applicable laws.
• Cooperatives are enterprises that are owned and run by its members, who frequently have a
common purpose or objective. Members invest in the company's capital and participate in
decision-making and profit-sharing. Cooperatives can be worker cooperatives, owned and
run by workers, or producer cooperatives, owned by producers who pool resources.
Consumer cooperatives are held by consumers for their benefit.

A3, b. Samiksha may take into account trademark registration to safeguard the term "BuBri" as
intellectual property. A trademark is a type of intellectual property that aids in defending
distinguishing names, logos, symbols, and other identifiers connected to products or services. By
registering a trademark, you may use it without restriction and stop others from using a mark that
might be confusing to consumers. Here is how Samiksha can use trademark registration to assert her
intellectual property rights in the term "BuBri":

a) Establish Eligibility: Samiksha must make sure the name "BuBri" is unique and not overly
general or descriptive. The likelihood of a trademark registration being accepted is higher for
distinctive and original names.
b) Perform a comprehensive trademark search. Before submitting a trademark application, it is
crucial to check to see if the name "BuBri" has already been adopted or registered by
another party. By doing this, any disputes and denials are avoided throughout the
registration process.
c) Pick the Right Classes: Trademarks are registered for particular categories of products or
services. Samiksha must decide which classes most closely match the goods and services
provided under the "BuBri" brand. There are 45 courses in all, which span many fields and
businesses.
d) Application for a Trademark: Samiksha may submit an application for a trademark
registration through the appropriate government office or agency in charge of protecting
intellectual property rights. Intellectual Property India (IPI) is the name of the office in India.
The application can be submitted offline or online, and it has to have the following
information:
• Details of the applicant: Contact information for Samiksha
• Depiction of the mark: The name or logo "BuBri" in a distinct visual or
representation
 • Goods/Services Description: categories of goods or services that the brand is
connected with specifically
• (If necessary) Power of Attorney
• an application fee
e) Examination and Publication: The trademark office will review the application to ensure that
it complies with all applicable laws and trademarks that are already registered. The mark will
be published in the official trademark journal if there are no oppositions.

f) Opposition Period: If third parties think the registration infringes on their current rights, they
have a certain amount of time following publication to object to the registration. The
registration procedure proceeds if there is no resistance voiced.

g) Registration and Protection: The trademark office will issue a registration certificate if the
application process goes without a hitch and no resistance is lodged. Following registration,
Samiksha is granted sole use of the "BuBri" mark in connection with the specified products
and services in the selected classes.