You are on page 1of 13

LEGAL ASPECT ASSOCIATED WITH SALES

Presented By:
Manish - 14810029

SALES AND GOODS ACT

The law relating to sale and purchase of goods, prior to 1930 were dealt
by the Indian Contract Act, 1872.

In 1930, Sections 76 to 123 of the Contract Act was repealed and a


separate Act known as the Sale of Goods Act, 1930 was passed

This act lays down special provisions governing the contract of sales of
goods .The general law of contract is also applicable to the contracts for
the sale of goods unless they are inconsistent with the express
provisions of the Sale of Goods Act

Contract of Sale:
According to Section 4 of the Act, a contract of Sale means a contract where the
seller transfers or agrees to transfer the property in goods to the buyer for price
Contract of Sale may be of two types
1.

SALE

2.

It is a contract where the ownership in the goods is transferred by seller to the buyer
immediately at the conclusion contract.

AGREEMENT TO SELL

It is a contract of sale where the transfer of property in goods is to take place at a future date
or subject to some condition thereafter to be fulfilled.

ESSENTIALS OF CONTRACT OF SALE


Two Parties
Goods
Transfer of General property
Price

LEGAL ISSUES OF SALES PROMOTION

A company while marketing a product must be very careful of the legal and
political issues of the country in which they are launching the product. The
sales promotion should not only be sensitive to the client country but also
should not harm the product image and eventually the company image.
Every country has a legal body which approves the product and the sales
promotion advertisements before they are viewed by the masses.

SOME OF THE BASIC ISSUES THAT MUST BE


CONSIDERED ARE:

The sales promotion should not directly hint at any competitors or should not compare
their products directly with the competitors.

The sales promotion must be created keeping in mind the sensitivity of the people.

The sales promotion must be clear and it should at no point deceive the people.

The sales promotion must not be explicit and must follow the code of conduct laid down
by the target country.

Also the advertisement of the product must not encourage any kind of hatred, violence or
should not show any adult content

Many products which are sold by wrongly highlighting their feature are pulled up by
authorities in India

Advertisements are subject to legal regulations and control. This


can involve banning of promotions for certain products. For
example: -Cigarettes cannot be advertised on TV at all
television channels are only permitted to use a certain amount
of air time for product commercials.
Governments have also encouraged the advertising industry to
monitor the behavior of advertisers to ensure they behave
responsibly in terms of the amount and kind of advertising
shown. This checking is called self-regulation and is carried out
by the Australian Association of National Advertisers.

UNETHICAL PROMOTIONAL STRATEGIES

Although deliberate misleading advertising is illegal, there are still many


ways in which retailers can influence consumers to buy a certain product.
They can be persuaded to buy a product that they either don't need or can't
afford.

THE FOLLOWING ARE EXAMPLES OF UNETHICAL


PROMOTIONAL STRATEGIES:

Sale Price Manipulation: Sometimes goods maybe marked with a sale price
that is, in fact, higher than the regular price. Customers are tricked into
thinking they are getting a bargain.

Special Prices and Offers: This method involves receiving a phone call or
letter notifying you that you have won a special prize. Before you can collect
the prize, you have to purchase another product.

Bait and Switch: This involves advertising a product for sale when there is
little or nostock on hand. The customer is then persuaded to buy a more
expensive product

High Pressure Door-to-Door: The products offered may be acceptable but


the selling method is forceful. Consumers are pressured into signing an
agreement to buy on the spot or to commit themselves to home trials.

VOLKSWAGEN EMISSIONS SCANDAL

German automaker Volkswagen group, after it was found that the car maker
had intentionally programmed turbocharged direct injection (TDI) diesel
engines
to
activate
certain emissions controls
only
during
laboratory emissions
testing.
The
programming
caused
the
vehicles' nitrogen oxide (NOx) output to meet US standards during
regulatory testing, but emit up to 40 times more NOx in real-world
driving. Volkswagen put this programming in about eleven million cars
worldwide, and in 500,000 in the United States, during model years 2009
through 2015.

EMAMI FAIR AND HANSOME CASE

The award of Rs 15 lakh will go to the coffers of Delhis _state consumer commission.
Jain had filed an unfair trade practices suit against Emami in the consumer court after,
contrary to its advertised claim that its cream Fair and Handsome will lighten the skin
tone of its consumer within four weeks, there was no change in Jains skin tone.

Emami argued in court that its product meant only to improve skin health and quality by
providing protection and nourishment to the facial and neck skin to which it is applied.
However the court rejected Emamis argument because it was contrary to its advertised
claim of guaranteed fairness, which therefore constituted misrepresentation.

Thank You

HOW TO STAY LEGAL

Know capabilities and characteristics of company products and service

Statements of praise vs. statements of fact- Educate customers before the sales

State product capabilities accurately

Know technical specifications

Avoid exaggerated product safety claims

Know federal and state laws

Keep current with design changes and revisions

Never overstep authority (pricing and policy)

Companies Have Social Responsibility to :

Customers

Employees

Shareholders

Suppliers

Government