NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Business and Allied Law

Internal Assignment applicable for April 2024 Examination

Ans 1. The term ‘Caveat Emptor’ is a fundamental principle followed in contracts of sale of goods. Caveat
Emptor means that it is the responsibility of the buyer to check the suitability and defects in the good he/she is
purchasing. Stated another way, it not the duty of the seller to point out any defect in a good. The buyer must
make use of his/ her skills and judgement. while making the purchase. Section 16 of the sale of goods act
states that there is no implied warranty or condition for the quality of the goods or for the fitness, as to the
purpose of the buyer under the contract of sale.

However, there are certain exceptions to the doctrine of caveat emptor as follows:

 Misrepresentation of facts: If a seller misrepresents ant detail retailed to the good and the buyer
purchases the good on the basis of the representation, the doctrine of Caveat Emptor does not hold
and such a contract is voidable at the will of the buyer.
 Conceal defects: If a seller conceals any defects in the goods, he is selling in such a way that such
defects do not reveal upon reasonable examination or if the seller engages in false representation and
enters into a contract of sale, then such a contract becomes voidable. Then the buyer has the right to
terminate the contract and claim damages.
 Buyer informs the seller: When the buyer has appraised the seller of his/her requirement and
depends on the skill and judgement of the seller, the doctrine of caveat emptor does not hold
 Goods sold by Description: When a seller makes a sale based on the description, it is implied that the
goods must correspond with the description.

The Rise of Caveat Venditor:

These exceptions have led to the counterbalancing principle of "caveat venditor" (let the seller beware). This
places a greater burden on sellers to ensure product quality, safety, and accurate descriptions.

 Vendor's Benefits in the Indian Setting:

 Encouraging Equitable Trading: Caveat venditor adoption in India has the potential to promote a
better moral business climate by motivating vendors to place a higher value on honesty and
openness.

 Empowering Customers: More consumer protection promotes trust and encourages engagement in
the formal market, which is consistent with India's expanding customer base.

 Building Brand Loyalty: Improving product quality and consumer pleasure can foster brand loyalty,
which will help companies in the long run.

However, a complete shift away from caveat emptor might not be ideal:

 Responsibility of the Buyer: A balanced strategy is required. Even yet, in order to prevent baseless
complaints, buyers should proceed with reasonable caution while making purchases.

 Contractual Flexibility: Parties ought to be allowed to bargain for and include provisions that meet
their needs, including caveat emptor and caveat venditor.
Conclusion:

In the twenty-first century, the adage "caveat emptor" still has some value, especially when consumers have
the chance to closely inspect the products. However, a shift toward a more balanced strategy is required due
to India's expanding consumer base and integration with the global market. Long-term trust-building, market
adaptation, and consumer protection are all made possible for Indian firms by having a deep understanding of
both caveat emptor and caveat venditor.
Ans 2. The Four Labour Codes: Simplifying and Modernizing India's Labour Landscape

In an effort to streamline and modernize labour regulations in India, the Central Government, acting on
recommendations from the Second National Commission on Labour, proposed replacing 29 existing labour
laws with four comprehensive codes. These codes aim to strike a crucial balance: facilitating employment
growth for businesses while safeguarding the fundamental rights and well-being of workers.

Let's delve into a detailed description of these four labour codes:

1. The Code on Wages, 2019:

This code aims at streamlining various wage-related legislations into a single, unified framework. It focuses on
the following key aspects:

 Universal Minimum Wage: The code creates a federal minimum wage, but states are free to set
greater minimum salaries that are tailored to their particular areas and industries. This guarantees
workers nationwide a minimum level of financial security.

 Multiple Wage Components: It includes several elements such as dearness allowance, house rent
allowance, basic pay, and other benefits when defining salaries. A more complete picture of worker
compensation is thus given.

 Simplified Payroll Procedures: To reduce wait times and guarantee openness, the code promotes
fast, electronic wage disbursements.

 Mechanism for Floor Wage Revision: The minimum wage revision process is outlined in a clear and
timely manner to ensure that it keeps up with the growing cost of living.

2. The Industrial Relations Code, 2020:

This code aims at simplifying, liberalizing, and rationalizing regulations governing industrial relations. Key
features include:

 Fixed-Term Employment: Under the code, employers may engage workers for predetermined
projects or time periods under fixed-term contracts. This gives companies flexibility while
guaranteeing that employees have appropriate contractual terms.

 Different Types of Employment: The code acknowledges contract workers, interns, and apprentices
among other types of employment. This offers a structure for controlling these varied job
partnerships.

 Simplified Trade Union Registration: By facilitating worker organization and collective bargaining, the
trade union registration procedure has been simplified.

 Rationalization of Standing Orders: The goal of the code is to reduce the administrative burden on
businesses by streamlining the process of creating standing orders, which specify workplace policies
and procedures.

 Negotiation and Dispute Resolution: The code promotes talks between employers and employees
prior to going on strike or instituting lockouts in order to settle industrial conflicts in a more
conciliatory manner.

3. The Code on Social Security, 2020:

This code consolidates nine existing laws into a single framework governing various social security benefits for
workers. It focuses on:
  Universal Social Security Access: The code seeks to provide social security benefits to all workers,
including contract, temporary, and freelance laborers. This guarantees social security and wider
coverage across many industries.

 Unified Social Security Scheme: The proposal suggests creating a uniform national social security
program that would cover benefits such as health insurance, maternity leave, and provident fund.
This makes administration easier and guarantees that benefits are transferable between employers
and places.

 Higher Employer and Employee Contributions: The code may introduce a system of higher employer
and employee contributions to ensure the sustainability of these social security schemes.

 Streamlined Administration: The goal of the code is to ensure that workers get benefits in an
expedient manner by streamlining the administration of social security programs.

 Technology Integration: The code might promote the management of social security accounts
through technology, giving employees convenient access and transparency.

4. The Occupational Safety, Health and Working Conditions Code, 2020:

This code aims to modernize and consolidate 13 central labour laws dealing with occupational safety, health,
and working conditions. Key areas of focus include:

 Better Workplace Safety Standards: The code establishes strict safety requirements for
establishments in a range of industries. This reduces accidents at work and guarantees a secure
working environment for staff members.

 Improved Working Conditions: To protect the health and welfare of employees, the code specifies
new rules for weekly rest days, overtime pay, and leave entitlements.

 Emphasis on Occupational Health: It encourages a healthy work environment and highlights the
requirements for routine health examinations for employees exposed to occupational dangers.

 Enhanced Employer Accountability: The code makes employers more accountable for ensuring that
all workers have a safe and healthy workplace.

 Better Enforcement Mechanisms: To discourage breaking occupational safety and health laws,
stricter fines and enforcement measures are implemented.

Challenges and Implementation Status:

While these codes represent a significant step towards modernizing labour laws, challenges remain:

 For the laws to be implemented countrywide smoothly, they must be reconciled with state-level labor
standards that are now in place.
 Careful thought must be given to ensuring the extended social security coverage's long-term financial
viability.

Ans 3. (a) Analysis of the Case and Remedies Available to Mr. Reddy
Issue: Mr. Reddy purchased a malfunctioning pulse oximeter from XYZ Medical Shop and seeks a full refund.

Remedies Available to Mr. Reddy under the Consumer Protection Act, 2019 (CPA):

1. Right to Repair or Replacement (Section 19): Mr. Reddy is entitled to request a free repair or a new,
comparable-quality oximeter in exchange of the existing one. He has the option to decline and choose
a less expensive option.

2. Right to Refund (Section 20): Mr. Reddy may request a complete reimbursement of the purchase
price (Rs. 1600/-) in the event that repair or replacement is not feasible or not practical. The medical
store is not allowed to deduct any sum under the guise of already paid taxes. The store may file a tax
return with the government.

3. Compensation for Deficiency in Service (Section 24): Mr. Reddy is entitled to damages for the
suffering he endured as a result of the faulty item and the slow response.

Supporting Case Laws:

 Cadila Healthcare Ltd. vs. Ambrish Kumar (2020): The Supreme Court reiterated that consumers have
the absolute right to a replacement or refund for a defective product under the CPA.

 Consumer Protection Council vs. Honda Cars India Ltd. (2019): The National Consumer Disputes
Redressal Commission (NCDRC) ruled that the seller cannot deny a full refund for a defective product
by claiming taxes paid.

Mr. Reddy's argument:

 According to Section 2(6) of the CPA, the pulse oximeter is a defective product because it is unable to
carry out its intended duty.

 He used his right to notify the shop as soon as he discovered the flaw.

 Under the CPA, the medical store's offer of a cheaper alternative and a partial refund is insufficient
compensation.

Mr. Reddy can strengthen his case by:

 Keeping the purchase receipt and any communication with the shop regarding the defect.

 Obtaining a written statement from the shop acknowledging the malfunction.

(b) Consumer Protection Act Redressal Machinery and Forum for Mr. Reddy (5 marks)

The Consumer Protection Act, 2019, establishes a three-tier quasi-judicial redressal mechanism for
consumer complaints:

1. District Consumer Disputes Redressal Commission (CDDRC): Since district commissions have
jurisdiction over complaints up to Rs. 1 crore and the claim value of Rs. 1600/-falls within their
purview, this is the proper forum for Mr. Reddy's case.

2. State Consumer Disputes Redressal Commission (SCDRC): Deals with complaints exceeding Rs. 1
crore but less than Rs. 10 crores.

3. National Consumer Disputes Redressal Commission (NCDRC): Handles complaints exceeding Rs. 10
crores.

Benefits of Consumer Forums:

  Cheaper and less formal than traditional courts.

 methods that are easy for consumers to use and offer legal aid.

 quicker case resolution than in civil courts.

Steps for Mr. Reddy to File a Complaint:

1. Draft and File a Complaint: Write a formal complaint describing the purchase's specifics, the issue,
and the requested solutions (full refund, compensation). Submit it to the Secundrabad District
Consumer Forum.

2. Attend Hearings: Present evidence (purchase receipt, communication with the shop) and argue his
case during hearings.

3. Order and Appeal: The forum will issue a final order directing the shop to provide relief (refund,
compensation). If dissatisfied, Mr. Reddy can appeal to the State Commission within 45 days.

Conclusion:

Mr. Reddy has strong grounds for a full refund under the Consumer Protection Act. By utilizing the consumer
forum system, he can effectively seek redressal for the defective product and inadequate service.