Introduction:

Business law is enclosed with forming and operating business including rules and regulations. It
is comprised of various laws that a business should follow in order to successfully manage
business transactions. Law of business is surrounded with various laws such as laws regarding
tax, laws regarding employment, laws regarding intellectual property, laws regarding
bankruptcy, laws regarding licensing ETC. These laws have great impact on managing business
operations and taking effective decisions. Growth and success of an organization is impossible
without following these laws. To operate an organization in legal ways importance of these laws
know no bounds. Therefore, it is obvious that business laws ensure security and safety of an
organization. Violation of these laws must be prevented in each and every organization in order
to achieve desired goals.

Task 1 (1000words)
1.1 Analyse and advice Ben on the legal rules of implied terms relating to the sale
of goods and supply of services
There are certain laws regarding sale of goods and supply of services to ensure safety and
security to the buyers like Ben. Provisions regarding sale of goods and supply of services come
from Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.

Implied terms relating to sale of goods:

In a contract of sale of goods, certain terms are related. These terms are classified as implied or
express. Express terms refer to those terms which are specific and which the contractual parties
mutually determine. Implied terms are basically the opposite of express terms and terms are not
certain. Implied terms (conditions and warranties) relating to sale of goods are following:

 Title: This term deals with indicating the rights of a seller whether the goods can be sold
by the seller. This can be referred as a condition.
 Sale of goods by description: This term deals with consistency of goods according to its
description. Goods can be described in terms of simplifying features of goods, uttering
trademark, brand or label. This can be referred as condition.
 Sale of goods by sample: According to Sec 17, goods are sold should be consistent with
sample and goods should be flawless. This term is also referred as condition.
  Sale of goods by sample as well as description: Sec 15 implies sale of goods by sample
and by description. According to this term, goods that are sold using sample and
description should be compatible with that sample and description. It is referred as
implied condition.
 Ensuring Fitness: This term is related to ensuring quality of the goods and if the quality
of the goods meets expectations, then considering features of the goods, price and other
necessary requirements.
Apart from the above conditions there are also some implied warranties in contract of
sale of goods. They are the following:
 Possession of goods must be enjoyed by the buyer.
 The goods must be burden free.
 According to Sec 16(3), ‘ A warranty as to fitness for a particular purpose may be
annexed to a contract of sale by a custom or usage of trade’.

Implied terms relating to the supply of services:

Delivering goods and services are enacted by Supply of Goods and Services Act 1982 (SGSA).
SGSA is comprised of two parts. Supply of goods is embedded with part one and supply of
services is embedded with part 2. Implied terms relating to supply of services are discussed
below:

 According to sec 12, ‘Contracts of apprenticeships should be excluded and any

agreement for the supply of services irrespective of whether goods are also supplied
should be included. There is no requirement for money consideration.’
 According to sec 13, ‘where the supplier acts in the course of a business that the services
will be carried out with reasonable care and skill’.
 There is also an implied term regarding reasonable time and price. This term is related
with performing services within a reasonable time and reasonable price.
1.2 Analyze and advice Ben on the statutory provisions on the transfer of property
and possession
Laws regarding transfer of property lay down on Sec 18 to 25 of the Sale of Goods Act. These
provisions are as follows:
 Goods should not be unascertained: In the contract of sale of unascertained goods,
goods must be ascertained otherwise it will not be transferred to the buyer.
 Party’s intention: In the contract of sale of specific goods, the intention of the parties
should be determined.
 Specific goods: According to Sec 20, ‘Where there is an unconditional contract for the
sale of specific goods in a deliverable state, the property in the goods passes to the buyer
when the contract is made, and it is immaterial whether the time of payment of the price
or the time of delivery of the goods, or both, is postponed’.
 Seller should do the necessary things regarding the delivery of the goods and notify
buyer.
 In order to deliver properly the goods the seller should quantify, weigh or test the goods.
If he fails to do so and fails to inform buyer the ownership will not pass.
 In order to pass property it is necessary for both the buyer and seller to identify the actual
goods that are supposed to be delivered.
 According to Sec 23(2), ‘Where in pursuance of the contract, the seller delivers the goods
to the buyer or to a carrier or other bailee (whether named by the buyer or not) for the
purpose of transmission to the buyer, and does not reserve the right of disposal, he is
deemed to have unconditionally appropriated the goods to the contract’.
 Property passes to buyer on approval.
1.3 Evaluate the statutory provisions on buyer’s and seller’s remedies in sale of
goods contracts
There are certain provisions regarding buyer’s and seller’s remedies. They are as follows:
Buyer’s remedies:
 If the goods are not consistent with quality, description buyer may reject the whole or
accept in accordance with contract and reject the rest.
 If the seller does not deliver the product within time or refuses to deliver then buyer may
take action regarding non-delivery and late delivery.
  When there is breach of warranty, buyer cannot reject the contract but he may asked the
seller for diminution or extinction o price or may take actions against him.
Seller’s Remedies:
 When buyer refuses to pay for goods that has been delivered seller can take actions
regarding the payment.
 When buyer refuses to accept seller can take actions for damages regarding non-
acceptance of goods.
 Unpaid Seller’s remedies-
 Seller’s Lien
 Seller’s right of stoppage in transit
 Seller’s right of resale

1.4 Analyse and advice on product liability legal rules and statutory provisions for
faulty goods
Provisions regarding product liability come from Consumer Protection Act. According to
Consumer Protection Act, ‘If a product or any of its component parts are defective manufacturer
may be liable’.
Statutory liability for faulty products is introduced by the CPA. Strict liability is imposed by the
CPA on manufactures of faulty products. People suffers loss from the faulty products can sue for
damages. Showing evidence regarding the damage of the product is necessary.

Task 2 (1000words)
2.1 Differentiate between types of credit agreements which Ben as a consumer
could use to buy a car.
Before apply for new credit, the most important thing for Ben is choosing the right credit and
understanding its types. Credit agreements are classified into following: secured credit and
unsecured credit which can be used by Ben. The differences between secured credit agreement
and unsecured credit agreement are the following:
 There is security in the secured credit agreement. In this type of agreement, if borrower
fails to pay the borrowed credit lender may repossess his/her assets. There are various
types of secured credit such as secured credit cards, line of credit, bond over home, loan
on car, loan on home equity ETC.
  Whereas, there is no security in the unsecured credit agreement. In this type of
agreement, if borrower fails to pay the credit lender may demand for payment of credit.
He/she may also try to collect debt with the help of debt collectors. There are various
types of unsecured credit such as bank loans, Master Cards, Visa Cards, Petrol Cards,
Retail Store Cars.
2.2 Analyse the legal rules on termination rights and default notices for Ben as a
consumer in case he had problems in future paying the debts as required in the
contract.
Ben can terminate his credit agreement and termination rights are given to the consumer in the
Consumer Protection Act 1974 and according to this act the consumer can terminate the credit
agreement any time before signing the agreement or also within 14 days of signing the
agreement . Ben needs to tell the lender that he is cancelling the agreement and this is known
as giving notice and the notice should be given in writing.

If Ben has trouble in paying back his dues:

The lender must send her Arrears Notice and also a Financial Conduct Authority (FCA)
information sheet. But this is not required if there is a Green deal plan. The lender is also
required to send Ben a Default Notice and that should also include the FCA information sheet,
Ben can get the FCA information sheets from the FCA website which is www.fca.org.uk.
The default notice will inform Ben what she needs to do the right things and what will be the
consequences if she does not pay what is owned to her.
The lender will also send Ben notice if he wants to add any charges on Ben due to some reason.
If the lender gives incorrect information to Ben then they cannot sue her or add any extra charge
or interest on him. Ben can also get help regarding her credit agreement at
a CitizensAdviceBureau

2.3 Analyse the general features of Agency and differentiate between the different
types of agents.
In an agency one person works and acts on the behalf of another person where the person who
works on the behalf is known as an agent and the person on whose behalf the work is known as
the principal.
The agency can be created by two ways:
Agency created by agreement:
Majority of agency relationships are created by contracts but they can also be created through
agreements. But there should be the presence of the three main principles of the contract which
are consideration, written terms and lastly the contractual capacity.
Agency created by operation of law:
In general the contracts are created by contract but there can be agency relationships impliedly.
  Broker: A broker acts as an intermediary between buyers and sellers. When the parties
start a contract, the responsibility of broker comes to end.
 Factor: A factor retains goods for selling them in future. He is a commercial agent and
he is capable of making contracts with third parties.
 Commission Agent: Commission agent charges commission on sale of goods. He may
have authority over the goods. His status is alike than that of a broker.
 Auctioneer: An auctioneer can sell the goods by auction. He can sell the goods without
any obstacles. If he does not conform to the rules associated with sales, it will be binding
on the owner.
 A Del Credere Agent: A Del credere agent ensures the execution of contract with the
help of other party. If there is anything wrong regarding the contract done by other party,
the Del credere agent must compensate.
 General Agent and Particular Agent: General agents are associated with appointing
all tasks in an organization. Whereas particular agents are associated with
accomplishing ascertained tasks.
2.4 Evaluate the rights and duties of an agent to assist Ben understand his position once he
becomes an agent himself.
An agent has certain rights and duties. The rights and duties of an agent are enumerated below:
Agent’s Rights:

 Enactment of rights: The responsibilities of the principal can be enacted by the

agent.
 Retainer rights: An agent has the right to retain any sum regarding business on behalf
of the principal.
 Agent’s Remuneration: Agent remuneration does not become due until he has
completed the act for which he was appointed agent.
 Agent not entitled to remuneration for business misconduct: According to Sec. 220,
‘An agent who is guilty of misconduct in the business of the agency is not entitled to
any remuneration in respect of that part of the business which he has misconducted’.
 Lien of Agent: If any property, papers or goods are lost agent can recover those
goods, paper and property.

Agent’s Duties:
  Duty of Obedience: the agent has the duty to follow all the legal instructions given by the
principal and this is the most important duty.
 Duty of care and skill: the agent has the duty of care and skill to do all work that is
assigned to him.
 Repair and despair: when an agent has the responsibility of managing a property then it is
his duty to get necessary repair done of the property.
 Duty of loyalty: the agent has the duty to be loyal to the principal and he cannot bring his
interest or the interest of the third party in the way of the principal’s interest.

Task 3(1000woords)
3.1 Outlining monopolies and anti-competitive practice legislation in the UK:
Monopolies & Mergers Legislation: Anti-Competitive Practices

In the UK, almost all the firm has monopoly power with a market share of more than 25%. These
businesses having so much monopoly power are often masturbated.

An essential potential form of masturbation is ‘anti-competitive’ practices. Usually it’s an

approach by which the big firms want to put the small business firms out of business sphere
which leads an opportunity for the big firms to capture their customer by giving little choice,
higher price and worse service.

These anti-competitive practices include:

 Cartels/Collusion

Cartels are basically a contract between businesses in the same market to join forces against on
consumers, suppliers or competitors. In the UK, firms try tacitly to escape from collusion.

 Keeping Competitors Out

Building roadblock can artificially keep the competitors out. ‘Destroyer pricing’ is a trick to cut
the price and thus it creates an outlook that the market is not so attractive.

 Restrictive Practices

Restrictive practices include the example of unethical practices. For instance, shearing suppliers
not to supply to competitors, pressurizing retailers to stock competitor’s product detrimentally
are the restrictive practices.
UK Competition Legislation

The major areas of UK competition legislation include:

1. Monopolies & Restrictive Practices (inquiry & Control) Act 1948 & Monopolies &
Mergers Act 1965:

These acts entitle the Competition Commission with the power to hurdle the business deals,
which are of in opposition to public interest.

2. Restrictive Trade Practices Act 1956 (goods) & Restrictive Practices Act 1976
(services):

According to this act, a Court basically takes decisions regarding restrictive practices. It
determines whether the practice should be admissible or not.

3. Fair Trading Act 1973:

Fair trading act ensures that the monopoly market is controlled. In addition, it is done by
setting up numerous official bodies to inspect all the measures.

4. Competition Act 1980:

This act was introduced to investigate the monopoly practices. It is usually done by the
Minister if he finds it essential to do so.

5. Telecommunications Act 1984:

Through this act Competition Commission was made independent.

6. Competition Act 1998:

To match EU law and regulate anti-competitive practices this act was constructed.

3.2 Explaining the role of Competition Commission within the context of monopolies
and anti-competitive practices and the UK office of fair-trading or other relevant
authorities
The Competition Commission:
The Competition Commission basically inspects the masturbated monopoly power or professed
cases and then releases a statement to the Minister. It is done for taking further decision
regarding restricted practices.

The EU & Anti-Competitive Practices:

As EU is set up on the principles of free trade competition, efficiency and economic growth, it
has got a disparagement in the UK. The EU started with the alliance of Rome. According to the
article 85 of this contract, agreements between member states are prohibited so that the business
is protected. According to article 86, monopoly power is also prohibited. The governance of
competition is thus shifting from member states to the EU.

The Office of Fair Trading (OFT):

The OFT is a self-reliant body. The major role of OFT is to ensure the effectiveness of the
market. It focuses on the reduction of unfair and unethical competitive trading.

The OFT’s prime objectives include:

 To diagnose and put right trading practices.

 To control the groundwork of consumer credit.
 To scrutinize anti-competitive practices, including restrictive practices.
 To inspect abuse of market power.
 To build up market network system.

Other relevant authorities:

Besides OTF, various authorities reinforce different facet of product safety legislation. These
authorities are-

 Health and Safety Executive (HSE):

To ensure product safety for the machineries used at work, HSE handles the matter.

 Medicines and Healthcare products Regulatory Agency (MHRA):

It deals with Medicines and medical devices.

  Vehicle Certification Authority (VCA):

Exhalation of noise and pollution from outdoor equipment is controlled by this authority.

 Office of Rail Regulation (ORR):

This body regulates railway-specific equipment.

 National Measurement Office (NMO):

NMO deals with energy pursuance of new products by design.

3.3 Defining dominant positions within the eu common market:

The purpose of the Article 102 of the Treaty on the functioning of the EU is to eradicate
undertakings against dominant positioning .Its interior role aims at monopoly regulation where
private industries are prohibited from completion. It also has negative impact on society and
customers. Article 102 is the second main term in TFEU competition law. According to article
102, ‘Any abuse by one or more undertakings of a dominant position within the internal market
or in a substantial part of it shall be prohibited as incompatible with the internal market in so far
as it may affect trade between Member States’.
Such abuse is comprised of:
 Charging discriminatory selling prices or other discriminatory merchandising
requirements.
 Decreasing output, business or technological growth according to consumer’s bias.
 Considering different conditions in identical agreements with another merchandising
party.
 Making the summary of contract in such a way that it has no connection with the subject
matter of contracts.
Like for example the European commission had imposed high fines on AKZO chemie which is a
chemical division of Dutch multinational group because it exploited its dominant position in the
organic peroxide market by trying to eliminate the small competitors
3.4 consider instances when under EU law, exemptions will be made to potentially
anti-competitive practices
According to Exemptions to Article 101, behavior is classified into three types. Article 101(3)
prepares an exemption for practices, which is useful to customers, for example assisting with
mechanical advancement but it does not hinder all competition in the area. Then from Article
101 the Commission agreed to exempt those agreements, which are of less importance. Small
organization can consider this exemption which holds only 10% of the relevant market. After
that, various types of block exemptions for various kinds of contracts are introduced by the
Commissioner. A list of terms that are permitted and a list of terms that are forbidden are
included in these exemptions.

Task 4(1000words)
4.1 Identify and explain the different forms of intellectual property right
Intellectual property is associated with protecting one’s personal property. U.S protects
intellectual property. Intellectual property can be classified into the following:
Patents: a patent protects the new inventions, patents mainly protect the features and processes
that make things work. This helps the inventors in getting profit from their inventions. For
having an intellectual property right on an invention some criteria must be fulfilled which is as
following:

 The invention must be new

 It must have an inventive step that is not obvious to someone with knowledge and
experience in the same field or subject
 It must be capable of being used or made in some industry, and if all the criteria are met
then the protection is given for twenty years by the United Kingdom Intellectual Property
Office

Designs: the registered design is a legal right that protects the overall visual appearance of a
product or only a part of a product in the country or countries in which it is registered. A design
is defined as “the appearance of the whole or part of a product that results from the features of it,
particularly in lines, colors, shapes, texture or materials and contours or the material of that
product or ornament”. For the registration of the design it is required that the design be a new
design and the design must have an individual character.
Trademarks: it is a sign which can distinguish goods and services of one company from other
company. A trade mark can be words, logos or even a combination of both. The trademarks need
to be registered at the Intellectual Property Office.To be registered as a trademark the following
criteria must be fulfilled:

 The trademark should be used as a distinctive for the goods or services.

 The trademarks are signs that are used to recognize a good and differentiate it from other
company goods of the same type.
 The trademark must not describe the goods only then they can be registered. A registered
trademark is registered for a period of 10 years

4.2 Outlining the principles relating to the protection of invention through patent
rights and their infringement in a given scenario:
There are many benefits of a patent in a business scenario, the rights are:

 The patent rights includes taking legal action so that other people can be stopped from
copying, manufacturing, selling and importing a person patent without his permission.
 Patent law gives the person having the patent right to take legal action under the civil law
so that the invention cannot be exploited.
 The patent gives a person the following rights:
 To sell his invention and all the intellectual property rights
 To license the invention to someone else but still retain all the IP rights
 To discuss the invention with others so that a business can be based around the invention
 The public also benefits from the patent because it is published after eighteen months

Patent infringement means manufacturing, using, selling or importing a patented product or

process without the permission of its lawful owner. The owner of the patent can take legal action
and claim for damages in case of an infringement of the patent right.

There are two defenses to the patent infringement:

 There is no infringement as what you are doing is not infringement of the patent
 The patent is invalid; one can challenge the validity of an infringement.

4.3 Describe the principles relating to copyright protection and the legal rules
preventing their infringement.
The rights of the copyright owner are in a business scenario:

The copyright owner has both moral and economic rights. The moral rights are right to
recognized as the author and economic rights include right to copy the work, right to distribute
the work, to broadcast and adapt the work. The copyright rights last till the author’s life and 70
years after his death.

The infringement of the copyright:

When a generous amount of work of a person has been copied without the permission of the
copyright owner then it is known as infringement of Copyright.

When the copyright has been infringed then the owner of the copyright has the below remedies:

 Damages
 Injunctions, which are orders that restrain the copying, displaying or broadcasting of the
work
 Accounts of profits, where the profits are given to the copyright owner
 Orders for the delivery up

4.4 Compare and contrast the protection of trademarks and business names giving
practical examples.
There is difference between the protection given to a business name and the protection given to
the trade mark. The Companies House is responsible for a company’s registration in Great
Britain.

The company law and trademark law are different from each other.
If a name has been registered as a business name then it does not mean that the company as has a
trademark right.

A company may have different business name and different company name.
Also a company name may not be accepted as a trade mark if:

 It is not distinctive
 It is a descriptive word
 The word indicates the geographical origin of the product
 It may be already registered as a trade mark

A trademark may not be registered as a company name if:

 If it is similar to another company’s name

 It is already registered as a company name
 It is illegal in nature
 It shows a connection with the government
Summary:
Therefore, we can say that business law helps in proper formation and operation of business
activities. It is impossible for an organization to maintain daily business transactions without
business laws. In this assessment, we learned about various types of business laws, statutory
provisions regarding these laws. We also learned about Different types of agents, their rights and
responsibilities, types of intellectual property. For achieving the desired objective, each and
every organization must acknowledge about business laws that we learned from the assignment.
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