business law session plan cases

8/10/2019 Business Law Session Plan Cases

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Business

Law

Contributors : Prof. Aparna Nashikkar

Prof. Latika Salgaonkar

Prof. Hemangini Shah

Prof. Pankaj Dahibhate


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MIT School of Business

Session Plan

Subject : Business Laws

Business Laws

Corporate laws are vital and play an important part in business transactions. A person must be

aware how to tackle any legal issues so as to have a smooth and steady functioning of his

business. The following Acts have been incorporated in our syllabus so as to give a thought to

the subject.

Session No Name of Topic Required Reading

I Contract Act

1

Introduction to law and its purpose.

Structure of Legislative and judiciary in

the country.

Definition of contract, rules of a valid

proposal and acceptance. Types of offer,

its acceptance and communication.

Lapse and revocation of offer and

acceptance.

Legal Aspects of Business,

Akhileshwar Pathak

Business Law, S S Gulshan

Merchantile Laws, Dr. V K

Jain

Merchantile Law, Dr. R K

Chopra

Mercantile law, N. D.

Kapoor

Consideration Definition and rules for

valid consideration, Exception to no


Akhileshwar Pathak


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2 consideration no contract

Capacity of parties, minors agreement

and effects of minors agreement



Jain


Chopra


Kapoor

3

Meaning of Free Consent, Coercion,

Undue Influence, Misrepresentation,

Fraud and Mistake of law & Mistake of

fact.


Akhileshwar Pathak



Jain


Chopra


Kapoor

4

Legal Object- essentials, unlawful and

illegal agreements, void agreements,contingent contracts, Discharge of

contract, Remedies for breach of

contract, Quasi contracts


Akhileshwar Pathak



Jain


Chopra


Kapoor

5Contracts of Indemnity and Guarantee,

essentials, types of guarantee, rights of

the parties, discharge of the parties.


Akhileshwar Pathak




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Jain


Chopra


Kapoor

6 Case IExtra reading required

II Consumer Protection Act

7

Consumer Protection Act- -Definitions-

Consumer, person, goods, service,

trader, manufacturer, complaint

consumer dispute

Mercantile law by N. D.

Kapoor,


Akhileshwar Pathak

8

Consumer protection councils,

Consumer disputes redressal agencies


Kapoor,


Akhileshwar Pathak

9 Case-IIExtra reading required

III Negotiable Instruments Act

10

NI Act- Definition, Types- Promissory

Notes, Bills and cheques, Parties &

Characteristics of Negotiable

Instruments, maturity of instruments


Akhileshwar Pathak


Chopra

Mercantile law by N. D.Kapoor,


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11

Holder and Holder in due course,

Negotiation, Endorsement &

Presentment, Dishonor, Notice, Noting

and Protest, Discharge of NI


Akhileshwar Pathak


Chopra


Kapoor,

12Case-III

Extra reading required

IV Sale of Goods Act, 1930

13Definition Sale, Agreement to Sell,

goods, price, Conditions and

Warranties, implied conditions and

warranties


Akhileshwar Pathak


Jain


Chopra


Kapoor,

14Doctrine of Caveat Emptor, Transfer of

Property in goods, Performance of

Contract of Sale, Unpaid Seller, Auction

Sales


Akhileshwar Pathak


Jain


Chopra



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Kapoor,

15 Case-IV Extra reading required

V Companies Act

16

Definition of Company, Incorporation

of Company, its special features -

Memorandum of Association, Doctrineof Ultra vires

Companies Act, Dr. Avtar

Singh


Akhileshwar Pathak

Manual of Business Laws, Dr.

S N Maheshwari & Dr.S K

Maheshwari


Kapoor

17

Articles of Association, Doctrine of

indoor management and constructive

notice


Singh


Akhileshwar Pathak



Maheshwari


Kapoor

18 Case-V Extra reading required


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Prospectus and its types, liability and

defense available for misstatement in

prospectus, Directors- appointment and

qualifications, their legal status, Powers,

duties removal and remuneration


Singh


Akhileshwar Pathak



Maheshwari


Kapoor

20

Meetings AGM, EGM, Statutory

meeting, notice, quorum, minutes,passing of a resolution, agenda in each

meeting


Singh


Akhileshwar Pathak



Maheshwari


Kapoor

21 Case-VI Extra reading required

22

Provisions of Companies Act regarding

Oppression and Mismanagement,

protection of minority, Over view of

provisions for winding up of a company


Singh


Akhileshwar Pathak


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Introduction to corporate governance

and CSR



Maheshwari


Kapoor

VI Competition Law

23

Competition Law concept and

purpose, Definitions- acquisition,

agreement, geographic cartel, enterprise,relevant market, product market, etc.


Kapoor,


Akhileshwar Pathak

24 Case-VII Extra reading required

25

Anti-competition agreements, Abuse of

dominant position Combinations,

regulation of combinations,

Establishment of competition

commission of India, Composition ,

duties and power of commission,

penalties


Kapoor,


Akhileshwar Pathak

VII

Environment Protection Act

26

Overview of Water and Air Acts,

Prevention and control of Pollution,

Hazardous waste (management and

handling) rules, Sanctions in EPA

Environmental laws, Dr. Khan

Environment Act, Singh


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27 Case-VIIIExtra reading required

VIII Intellectual Property rights

28

Patent - Definition, what can be

patented, Types, Process for getting

patent, Duration, Term of Patents,

Rights, License, Termination and

Remedies for violation

IPR, Prabhddha Ganguly

IPR, Dr. M K Bhandari

IPR, N. K. Archarya

29

Trade Marks definition, registration

and conditions of registration, Procedure

for and duration of registration,

Renewal, Removal and Restoration,

Effects of registration



IPR, N. K. Archarya

30Case-IX

Extra reading required

31

Copyright definition, registration and

conditions of registration, Procedure for

and duration of registration, Renewal,

Removal and Restoration, Effects of

registration



IPR, N. K. Archarya

IX Information Technology Act

32

Over view of the provisions of the act-

purpose and scope, authentication of

electronic records, electronic

governance, secure digital signature,

penalties and adjudication, cyberoffences and regulating Tribunal


Kapoor,


Akhileshwar Pathak

33 Case-XExtra reading required


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Books and Readings:-

1.

Mercantile Law, N D Kapoor2. Business Law, Avtar Singh

3. Business Law, S S Gulshan

4. Business Law, P C Tulsian

5. Business and corporate laws, P C Tulsian

6. Legal Aspects of Business, Akhileshwar Pathak

7. Manual of Business Laws, Dr. S N Maheshwari & Dr. S K Maheshwari

8. Me4rxchantile Law, M C Shukla

9.

Business Law, S K Aggarwal

10.Intellectual Property Rights, P. Narayanan

11.Intellectual Property Rights, Dr. B L Wadehra

12.Environmental Laws, Singh

13.Environmental Laws, H V Jadhav & Dr. S H Purohit

14. Environmental Laws, Dr. H N Tiwari

15.Environmental Laws, Dr. Tripathi


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Subject Name Business Laws

Semester - II Case no.01

1. Rodney agrees to pay pocket money to his son Roco sum of Rs. 1,500/- per month for 12

months starting November 2013, after paying for first two months Rodney stops paying

Roco pocket money without any explanation. Discuss whether this is a valid contract.

2. Adam a car dealer induces Annette to buy a car from his shop and depicts that same is

brand new. Annette buys the car on Adams representation, after driving for few

kilometres the car breaks down. Discuss whether Annette can cancel the contract and

claim damages?

3. Anita agrees to sell her farm to Sarah for Rs. 50,000/- . Sarah sends her cash of Rs.

25,000/- and agrees to pay the balance in 10 instalments of Rs. 2,500/- each. Discuss

whether this a valid contract?

4. Frank received summons to appear in the court as witness at a trial. Richard promised to

pay Frank Rs. 5,000/- for his appearance. After the court date Richard refuses to pay

Frank, discuss whether Richard could sue Frank and recover the money.


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1.

Abhilasha booked a ticket with the Railways to travel from Chennai to Delhi in the

Superfast Train Taj Express. The Taj Express started from the scheduled station of

departure on time but was delayed for long hours. The Railways was not in a position to

justify the delay nor give any valid and convincing reasons for such a delay. Abhilasha

was too irritated with the long journey. Abhilasha could not tolerate this long delay and

claimed from the Railways Rs. 1,00,000/- for the inconvenience caused to her. She is

also claiming that the Railways pay her the amount of Rs. 5000/- as compensation for the

expenditures incurred by her on the food during that long journey. Can Abhilasha

succeed on this ground by filing a complaint against the Railways? Give reasons.

2. Indresh had applied for electricity connection in the month of August 2011. He was told

that he shall get the connection within two days. However, no connection was not

provided to him till November 2011. But he has been asked to remain present at the

electricity office to state reasons as to why there is no consumption of the connection.

Can Indresh seek redressal in a Consumer Court? If yes, how on what grounds?

3. Mr. Sanjay had an internet connection at home. He was expecting an important interview

call. The net connection was not working properly. Mr. Sanjay sent a written complaint

to the net provider about the net connection not working properly. The connection was

set right after 3 days and Mr. Sanjay lost his opportunity as he could not access his net.

He has filed a complaint against the net provider claiming for damages. The net provider

says he is not responsible as Mr. Sanjay never mentioned the urgency. Can Mr. Sanjays

claim stand? Is he a consumer?


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4. Mr X booked an Apartment with Local Development Authority i.e. State Controlled

Government Authority. The Development Authority failed to provide the apartmentwithin stipulated period and stated that neither Housing construction falls within

Consumer Protection Act nor X is a consumer hence there is no deficiency of service.

Discuss whether Housing Construction falls within the ambit of Consumer Protection

Act, 1986 and failure to provide the apartment, land etc. within the stipulated periodstated in agreement to sale amounts to deficiency in service?

What is the meaning of the word service? Does it extend to deficiency in the building of

a house or flat? Can a complaint be filed under the Act against the statutory authority or abuilder or contractor for any deficiency in respect of such property?


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1. Brian promises to pay Varun 5,000/- in writing only after Varun marries Angelina,

discuss whether Brian promise to pay constitutes valid promise and is a promissory note?

2. Greg admits in writing that he is liable to pay Danny sum of 25,000/- which he had

borrowed for his daughters marriage, discuss whether Gregs admission in writing

amounts to valid promissory note?

3. Grant gives a post-dated cheque to Joanne who presents it for payment to the bank before

the due date and as a result same gets dishonoured; discuss whether Grant is liable u/s

138 of the Negotiable Instruments Act?

4. A Bank wrongfully dishonoured Annies cheque and without any justification; discuss

whether A Bank is liable to compensate Annie for any loss or damage?


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1. Darshan and Prakash enter into an agreement, wherein Darshan sells his lawn-mover to

Prakash. But Darshan refuses to deliver it to Prakash till he has been paid fully by Prakash.

Before the full and final payment of the lawn-mover, Darshan lends the lawn-mover to

Prakash in order that Prakash may cut the grass. Bring out the rights of the buyer and the

seller.

2.

Goods were sold and sent by the sellers at the request of the buyer to shipping agents of the

buyer and were put on board a ship by those agents. Subsequently, they were re-landed and

sent back to the sellers for the purpose of re-packing. While they were still in the possession

of the sellers for that purpose, the buyer became insolvent. The sellers refused to deliver

them to the Official Receiver except upon payment of the price. Are the sellers entitled to

refuse to deliver the goods to the Official Receiver? Discuss.

3.

A particular hair dye was normally used to dye hair by a hair dresser. In fact, all the hairdressers in the area commonly used that particular hair dye as it was considered the best.

Arun was allergetic to this particular hair dye. Yet, he got his hair dyed and as a result he

developed dermatitis because of that hair - dye. Arun claims that the hair dresser is liable to

compensate him because the hair dresser had not specifically asked him whether that

particular dye suits him or not. Discuss.


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1. An annual general meeting was called by a company in Dec. 2000. This meeting was

adjourned to March 2001, and held accordingly. Subsequent Annual General

meeting was held in February 2002. The registrar of the companies holds the

company liable for an irregularity, while the directors claim that there is no such

irregularity. Discuss whether the registrar will succeed in his claim and be able to

take any action against the company.

2. Avkash Ltd. is engaged in manufacture of aircrafts. It is a validly constituted

company and the directors are also appointed as per the provisions of the act. The

directors have the power to enter into contracts on behalf of the company. They

entered into one such contract with Dharti Ltd. The common seal of a company was

affixed on the document without the compliance of the provisions of the companies

act. Can the document be said to be valid? What options are available with both the

companies, if at all the document is void? If it is void, Can the contract be ratified by

the Board of Directors?

3. Anand was the managing director and a shareholder of a company. The cheques

payable to the company were indorsed by him to himself in the capacity as a

managing director and deposited in personal account with the Bank of India. The

bank collected the money and allowed him to withdraw. The company soon went into

liquidation and the liquidators sue the bank for recovery of money of the cheques

payable to the company but credited to the account of Anand. Will the liquidatorsucceed? Will Anand be able to claim any compensation from the bank or the

company?


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4. The shareholders of Camins Ltd. duly called upon the managing director to convene a

meeting. The agenda of the meeting was to move a motion removing the managing

director from his post. The managing director promised to fix up a meeting, but as he

was flying out for business reasons, requested to conduct the meeting after a week.

Later on the managing director failed to oblige them, hence the shareholders

themselves met at a place, away from the registered office. They passd a resolution

and removed the managing director from his post. The managing director claims that

this is not a valid resolution and that he cannot be removed on the basis of such a

resolution. Advice the shareholders as well as the managing director.


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1. A accepts a bill for the accommodation of B the drawer. The bill is dishonoured by A on

the due date and C, the holder of the bill, on that date, collects the amount from B.

a. Can B sue A for the recovery of the amount?

b. Will it make any difference, if the bill gets into the hands of the holder in due course

and he files a suit against A for the recovery of the amount?

2.

The director of a company borrowed Rs. 10,000/- from A and exedcuted apromissorynote in favour of A. On the promissory note, there was no indication that the

money was borrowed for and on behalf of the company. Te company used the money for

its purposes. Can the company be held liale to repay the loan on the basis of the

promissory note?

3. The shareholders of Pompous Ltd. duly called upon the managing director to convene a

meeting. The agenda of the meeting was to move a motion removing the managing

director from his post. The managing director promised to fix up a meeting, but as he was

flying out for business reasons, requested to conduct the meeting after a week. Later on

the managing director failed to oblige them, hence the shareholders themselves met at a

place, away from the registered office. They passd a resolution and removed the

managing director from his post. The managing director claims that this is not a valid

resolution and that he cannot be removed on the basis of such a resolution. Advice the

shareholders as well as the managing director.

4. An allottee of shares in a company brought action against a director in respect of false

statements in a prospectus. The director contended that the statements were prepared by

the promoters and he had relied on them. Is the director liable under the circumstances?


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1.

Mr. Sandesh filed a suit against the four DTH service providers alleging contravention of theprovision of the competition act 2002. He said that these four DTH service providers are

limiting competition amongst themselves forcing the buyers to buy bundled hardware and

creating entry barriers to new hardware manufacturers. To avail DTH services the customers

required 4 instruments besides television i.e. a small dish antenna, a control unit, a small

radio-size device and a smart user identifier card. Mr. Sandesh alleged that ideally the

antenna and the control unit\ should be available in the open market and the smart card and

radio-size device can be provided by the DTH provider. The DTH providers have put the

product into a bundle and also manipulated the devices such that one device shall not work

for more than one DTH provider. Also the customer is loath to buy another hard ware if he

wants to change the DTH service provider. Also the customers are made to sign an

agreement with the DTH service provider in which the onerous conditions are printed very

minutely and in an illegible way. This practice adopted by the DTH service providers results

in the inconvenience for the customers. These were the main allegations along with many

others. Discuss if you feel that the provisions of the competition act have been violated. State

valid reasons/provisions for your answers.

2.

Company A issued a Limited tender notice for procuring cast steel bogies. Quotations were

received. Three big manufacturers quoted identical price of Rs. 77,000/- per bogie as against

other tenderers quoting between Rs. 83,000/- and Rs. 84,500/- per bogie. The tender

committee arrived at a rate of Rs. 76,000/- per bogie. Two of the big companies offered to

reduce their price substantially, if called for negotiation. Company A offered a counter-offer

of price of Rs. 65,000/- per bogie as against Rs. 76,000/- to others as some of them were sick

units. The Three big manufacturers filed a petition against this in the High Court. Discuss,

giving legal reasons if you feel that there has been any involvement of cartel, predatory

pricing, dual pricing, etc.


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Mr. Ramchand Bhagirath is a proprietor and a wholesale dealer of dry chillies, was from Gondia

and had a godown in a double storeyed building where he used to store large quantity of chillies.

The residents of Gondia in that area where the godown was situate, complained against this

godown as everyday lots of trucks came and loading/unloading of dry chillies used to take place.

This activity was continued since a long time and the physical comfort of the residents in that

locality were affected and it had become practically impossible for them to bear this any further.

They claimed that this activity caused pollution and was a threat to the health and physical

comfort of the residents in the locality. It caused a lot of sneezing, coughing, adthma, irritation of

skin and burning sensation. The residents thus took action against this particular businessman.

The proprietor though admitted that the building was being used as godown, refused that it

caused any harm or threat to the health of the people. Also the building was a pakka construction

and proper care was taken before and after loading and unloading activity so as to see that

pollution does not take place since 20 years. Discuss what should be done in the situation.


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1. Hawkins is a company who has got registered its artistic label under the Copyright Act.

Hawkins is a company dealing in pressure cookers. Another company, also dealing in

pressure cookers applied this copyrighted label on their cookers. The Hawkins cooker

company sought to get an injunction and a decree for taking accounts on the ground that

the other company has copied its copyright, it is also dealing in pressure cookers and as

such it is an infringement of the copyright. Is it a case of infringement of copyright?

Discuss at length will the Hawkins company succeed in its claim?

2.

Raghunath is a writer of stories and has a number of stories on his name. Surendra is

another person who is also a writer but who also many a times bases his stories on the

ideas which can be gathered from the society. Both of them get their work copyrighted.

He has written stories based on the culture, the violence, the bomb blasts, etc. Raghunath

has written a story which tells us about the violence that is going on in the world. It is a

pure work of intelligence, based on the facts, circumstances and experience gained and

gathered by Raghunath. Surendra has recently written a story which involves a story

based on the bomb blasts in the city. Coincidentally this story seems similar to the story

of Raghunath and also is published after that of Raghunath. Raghunath claims that

Surendra has copied the material from his story and hence claims compensation from

Surendra. Surendra claims that his story is purely based on the bomb blasts that took

place in the city. Will Raghunath succeed in his claim?

3.

A manufacturer of reengineered concrete poles and pipes, who held two patents in respectof improved process of manufacture was doing business using the patented machinery.

The other person was infringing the patent of the manufacturer by using patented

machinery. The infringer was using patented machinery to manufacture concrete poles

and pipes and also was doing a good business. When the patent holder brought


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infringement action against the infringer and conducted search and inspection, of the

infringers premises, neither the patented machinery nor the products were found with the

infringer. However the infringer submitted that he was not infringing any patented

machinery but also promised that he will not make any use of the patented machinery in

the future also. The patent holder even so believes that there is some infringement being

committed and seeks a permanent injunction against the infringer in the court. Will the

patent holder succeed?

4. Prakash is a registered proprietor of the trademark Ciba, Cibaca and many other

trademarks in which the syllable is the work CIBA in respect of various items falling in

different classes. Rakesh began manufacturing filters for motor c\vehicles and adopted

the trademark Cibaca and claimed that its use was bonafide and concurrent as the goods

in question belonged to a totally different class. Can the other manufacturer, i.e. Rakesh

be allowed to use the trade mark Cibaca? Will he succeed to get the registration of the

trademark on the basis of his claims? Will it be termed to be an infringement of the

trademark?


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Discuss its pros and cons.

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