Contents Task-1 ................................................................................................................................................3

P1. Be able to apply the main principles affecting the legal relationship between business

organisations and their consumers ..................................................................................................4

P1.1 Analyse and advice Mr Adam on the legal rules on implied terms relating to the sale of goods

and supply of services..................................................................................................................4

P1.2 Analyse and advice Mr Adam on the statutory provisions on the transfer of property and

possession ..................................................................................................................................6

P1.3 evaluate the statutory provisions on buyer’s and seller’s remedies in sale of goods contracts ..7

P1.4 apply product liability statutory provisions for faulty goods ....................................................8

Task 2 ................................................................................................................................................9

P2 Be able to apply the legal rules on consumer credit agreements and agencyError! Bookmark not

defined.

P2.1 Differentiate between types of credit agreements which Claire could use to obtain the new

car. ................................................................................................. Error! Bookmark not defined.

P2.2 Analyze the rules on termination rights and default notices for Claire to be informed in case

she subsequently has trouble paying the debts as required in the contract. .................................. 12

P2.3 Analyse the general features of Agency and differentiate between the different types of agent.

................................................................................................................................................ 12

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position once she

becomes an Estate Agent. .......................................................................................................... 13

Task -3 ............................................................................................................................................. 14

P 3.1Outlines the monopolies and anti- competitive practices legislations in the UK ......................... 14

P 3.2 Explain the Role of competition commission within the context of monopolies and anti -

competitive practices and UK office of fair trading .......................................................................... 15

P 3.4 Define dominant position with the EU common market .......................................................... 15

P3.4 consider the application of EU exemptions to potentially anti-competitive practices ................. 16

Task 4 .............................................................................................................................................. 16

P4.1 Identify differing forms of intellectual property ............................. Error! Bookmark not defined.

P4.2 Outline the principles relating to the protection of inventions through patent rights and their

infringement ................................................................................................................................ 17

P4.3 Describe the principles relating to copyright protection and their infringement in a given business

scenario ....................................................................................................................................... 18

P4.4 Compare and contrast the protection of trademarks and business names................................. 19

References ....................................................................................................................................... 19

Introduction: For operating the business and in proper order it is necessary that there should be legal

framework for the good business environment. There are various legal aspects which are deal

with the sale of goods contract, competition, merger, monopolies etc. in different legislation

there are different laws and regulation which deals with these type of practices like dominant

position, anti -competitive agreement and others.

Task-1

P1. Be able to apply the main principles affecting the legal relationship

between business organisations and their consumers

P1.1 Analyse and advice Mr Adam on the legal rules on implied terms relating to the sale of

goods and supply of services

Sale of good act 1979

It is contract between the parties under which one party is agree that he will transfer the goods to

the buyer for consideration. There are three required conditions which are necessary for the sale

of the goods. These are:

1. There is consideration price.

2. Goods which is transferred form the seller to the buyer.

3. There is an agreement between the parties for the sale. [Saharay', D. (2015)].

What is implied terms?

Implied terms are those terms which are used by the parties for resolving the dispute arise in the

contract,the implied terms sources are:

1. Customs

2. Court

3. Statute

Section 12 of the act deal with the title of the goods:

Section 12 includes the entire contract which is related to the sale of the goods. It

includes all the contract of private sales, or online shopping.

Section 12(1) include a term in which it includes the seller right in which seller has right

to sell the goods.

Section 12 (2) (a) says that the seller has the duty to disclosed the buyer any charge or

burden over the goods which is purchased by the buyer.

Section 12 (2) (b) the buyer has the right to enjoy the possession of the property. (case-

Microbeads V Vinehurst Road Marking[1975])

Section 13 deals with the description of the goods

Section 13 (1) stated that if there is any contract between the parties that the good must

be in accordance with this description then the goods must be according with the

description.(case Harlington and Leinster V Christopher Hull Fine Art[1990])

Section 14 deals with the quality of the goods.

Section 14 (2) states that when the seller sell his goods to buyer then it is implied term,

of contract that the goods which is sold by the seller to buyer must be in satisfactory

quality.

Section 14 (2) (a) gods which meet the standard of the reasonable person then the gods is

fit and satisfactory. (Case- Stevenson V Rogers (1999).

Quality of under is mentioned below which is to be taken into account according to the section

14 (2) (b):

1. It is fit for all purpose.

2. There is good appearance of finished product.

3. Free from any default

4. Proper safe for the consumer

5. Must durable

Section 15 deals with the sale through sample

Section 15 (2) states that if the sale is made by the sample in a contract then there is an

existence of the implied terms.

1. The bulk of product is same as the sample.

2. The goods have no default.

These are the implied terms rules which is used when there is contract between the parties

[Austen-Baker', R. (2015)].

Mr. Adam claim under the section 14 of the sale of goods act. When the parties enter in to

contract the implied terms are used in the contract. Thus there implied term that the good must be

in goods in quality, but after the three weeks the TV is not performing well. So Mr. Adam can

claim for the damage which is suffered on the default of the departmental store.

P1.2 Analyse and advice Mr Adam on the statutory provisions on the transfer of property

and possession

Mr. Adam these are provision which are deal in the transfer and possession of the property.

The transfer of ownership is deal under the section 16 to 20.

Section 16: According to section 16 the ownership of the good is transferred only when there is

ascertained good. Unascertained goods ownership will not be transferred.

Section 17: according to this if any goods which is ascertained or specific, it is not necessary,

property will be pass only when the intention express by the party.

Section 18: section 18 deals with the 5 rules. These 5 rules stated that it is not necessary that

party express their intention for the passing of property, it will pass without the intention of the

property. Rules which come under this section are:

Rule 1: In the unconditional contract the property which is related to the specific goods will be

passed at the time of the contract.

Rule 2: if something has to done which is related to the specific goods then goods will not

transfer until this is not done

Rule 3: the specific goods has been measured and weighed before the ownership of the good is

transferred.

Rule 4: if any specific good which is sold on the approval or return basis, the goods will be sold

after the approval or return is done, or any act which shows the approval or return.

Rule 5: if the goods are unascertained then ownership of the property will be transferred to the

purchaser.

Section 19: This section sates that the seller has the right of disposal in this seller can retain the

goods title which is sell to the purchaser.

Section 20: it states that when the gods will transfer as passing with the property the risk is also

passed form the seller to the purchaser.

P1.3 evaluate the statutory provisions on buyer’s and seller’s remedies in sale of goods

contracts

There are various remedy which are available to the buyer and seller under the sale of goods

contract. The remedy is available to the buyer on the part of the seller. Thus when the seller

which is obliged to do or perform his promise under the contract and he did not perform

according to the contract then he will breach the contract, from this buyer suffered damages.

Thus for the protection of the consumer interest law provides remedy for the interest of the

buyer. The remedies which are available to buyer are mentioned below:

1. Damages: The seller is responsible to pay the damages to the buyer for the breach he

makes in the contract. The buyer has right to sue the seller for the compensation. But for

posing the compensation the buyer has to prove that he suffers loss from the seller

breach.

2. Specific performance: the court has power to make order of the specific performance. It

is performed by the party under the contract at the time breach of the contract.

3. Rejection: the buyer has right to reject the goods which is not supplied by the seller at the

right time and on the fixed date and buyer also has right to reject the goods if seller not

supplied the goods according to the terms and conditions of the contract.

Seller remedy is also available if the buyer not doing any part ore breach the contract. The

remedy which is available to the seller is comes under the section 49 and 50.

Section 49: the seller has the right to take action against the price of the goods.

A. Seller can take action if the buyer did not pay the price of the good or he refuse that he

will not pay the price of goods then seller get remedy.

B. Seller also takes action if the buyer refuses to pay the money at the certain day or the

date.

Basically seller gets the remedy if the buyer refuses or not giving the price of the goods

according the terms and conditions of the contract.

Section 50 deals with the non- acceptance of the goods

a. The buyer not accept the goods according to the terms and conditions and also not pay

the price then seller has right to take action against this.

b. The damages which is suffered by the seller on the act done by the buyer is measured the

difference between the contract price and the current price of the goods which is passed

or accepted by the buyer. (Slideshare.net, (2015)

P1.4 apply product liability statutory provisions for faulty goods

Faulty goods/ defective goods:

Defective goods are those goods which is not only risk for the injured of the body of an

individual but also the property of the individual. The manufacture is responsible for the product

which they made. The product manufacturer of the finished product and the finished product

manufacturer are responsible for the defective goods they manufactured and also held

responsible for the damages which is suffered by the party.

The claimant has to prove these for claiming the compensation:

1. The product is faulty good.

2. Damages and loss suffered by the plaintiff.

3. The manufacturer is responsible for the defective good.

Liability in tort: it is not necessary that the claimant have contractual relationship with the

defendant, he claim the defendant without any relationship. It is necessary that claimant is

proved that the defendant produced and sells the faulty goods to the buyer

Liability in consumer protection act 1987: the claimant has to prove that the defendant make

defective product, then court will decide that the product is defective or not, for this court will

take the necessary steps. If it is proved that the product is defective then manufacturer is held

liable.

Liability in contract: The buyer also claims under the contract of purchasing the good from the

seller, if it is defective. Seller compensates the buyer. But seller becomes insolvent then buyer

cannot receive any compensation.

Task 2

P2 Be able to apply the legal rules on consumer credit agreements and agency

P2.1 Differentiate between types of credit agreements which Claire could use to obtain the

new car.

There is consumer credit Act which is used for the protection of the consumers which is

regulated by the fair trading director general. It controls the credit provisions and also on the

supply of the goods under the hire purchase agreement and other related matter.

(legislation.gov.uk, 2015)

There are various credit agreements which are used by the Claire for purchasing her car and thus

she decides which is best for him.

Credit agreements: credit agreements are used by the consumer when they have need of money

they take the credit or loan from the different business for filling their requirements. The loan

which is taken by them is provided for the specific period of time and in this period the debtor

has to pay the interest of the credit which is taken by the debtor. [Aquacard.co.uk, (2015)]

The credit agreements are:

1. Credit sale

Credit sale agreement is used by the individual for purchasing the expensive goods like

cars and other same like.

In this the principal amount is paid back in the monthly installments.

The goods will be transferred as soon as the contract is signed by the party.

2. Hire purchase

The payment has been paid every month.

The good will not transferred to the third party.

The ownership will transfer after the whole payment is paid.

3. Hire Contracts

In this the goods is taken on hire contracts.

The payment is made for the hire goods are paid monthly.

If any person gives not back the hire goods at the end of the arrangements then he will

sue for the money.

4. Conditional sale

It is also same as the hire purchase agreement in this the ownership of the goods will not

be transferred until the full payment is made.

There are some other conditions which is necessary for full before individual take the title

of the goods.

5. Debtor-Creditor-supplier agreement

This agreement is made by the creditor between the supplier and himself or which

provide the transaction of finance between the debtor and creditor which is under the pre-

existing agreements or in the pragmatism of future agreements.

5. Debtor –creditor agreement

It is opposite to the debtor – creditor-supplier agreement.

It is not made by the creditor between the supplier and himself or which provide the

transaction of finance between the debtor and creditor which is under the pre-existing

agreements.

Main difference between the D-C-S or D-C

1. If the creditor is also the supplier and also have business connection with the supplier Is

known as D-C-S agreement.

2. If the creditor is not the supplier and also have no business connection with the supplier Is

known as D-C-S agreement.

Restricted use and unrestricted use:

Section 11 deal with those uses.

Restricted use is that individual cannot spend the loan amount other than the specific use.

Unrestricted use is that in which there not restriction to use is the loan money.

P2.2 Analyze the rules on termination rights and default notices for Claire to be informed in

case she subsequently has trouble paying the debts as required in the contract.

Claire has some rights at the time termination when he trouble paying the debts as when it

required in the contract.

1. Debtor has right to give the written notice to the creditor under the hire purchase agreement or

in conditional sale agreement that she want to make the agreement end.

2. If the agreement comes to end then debtor is under obligation to return the goods in

reasonable condition to the debtor.

3. Sometimes parties make the settlement early under the section 94 TO 97.

4. If the debtor makes any breach then the creditor has the right top retrieve the goods.

5. It is necessary that the gods is returned than at this time the minimum amount of good is also

pay to creditor.

Default Notice

1. In notice it is written that payment is made early and agreement is terminated by the both

party.

2. The debtor rights also terminated when the agreement is end.

P2.3 Analyse the general features of Agency and differentiate between the different types of

agent.

Agency: In this principal agent relationship is exists in which agent is come under the contract on

the behalf of the principal.

The main principal features of the agency are:

1. It saves the time and resource of the principal.

2. The principal and third party are capable for entering in the contract.

3. There is no contract between the agent and the third party but it the contract between the

third party and the principal.

There are different types of agent which are comprises under the agency.

Factors: Tangible properties are deal through factors.

Banks: Banks are dealing as an agent for their clients.

Auctioneers: auctioneers are deal with the auction of the tangible property.

Estate agents: This agent is deal with the tangible property or real property on behalf of

the owner.

Brokers: brokers are deals with the intangible property.

Commercial agents: these agents have the powers to sell and purchase the goods who are

independent contractors.

Directors: they are the agent of the companies and if there are partners in the company

then they are agents for each other.

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position once

she becomes an Estate Agent.

When Claire becomes estate agent then these rights and duties are available for the agent.

Right of agents

When there is need of contract existence

1. Right of remuneration

2. Right over property to dispose the property.

When there is no need of contract existence

1. Right of reasonable expenses

Duties of the Claire when he becomes as an estate agent

1. If contract is exist then Claire has taken fiduciary, skill, care and diligence.

2. If there is no contract then agent has duty to perform and obedience.

Task -3

P 3.1Outlines the monopolies and anti- competitive practices legislations in

the UK Monopoly is a situation in which a firm has the full control over the market. It is a threat to the

market competition in the UK.

If any firm have 25% control over the market leads to the existence of the monopoly.

Through the investigation by the merger commission and monopolies it is held that the

any firm who have the 25% control of the market.

A free market system is developed by the monopolies through:

1. The increasing power of the firm by increasing the success of the product in the market.

2. If there horizontal merger between the two same companies.

Large firms have the Monopoly power which is threat for the competition in the market. UK

government takes necessary step to prevent these types of practice. In Uk monopolies and

merger commission is investigate these type of practice and also investigate the case which

referred by the fair trading office. Monopolies are not legal in the UK. There is anti-Trust

legislation which deals with the monopoly and break down them. The legislation is for the

monopolies and anti-competitive practices are:

The competition Act 1998

Enterprise Act 2002

Article 101 and 102 of the TFEU

In UK the anti –competitive practice is prohibited in two ways:

1. in Chapter 1 of CA98 and Article 101 TFEU: in this chapter anti –competitive agreements are

prohibited.

2. Chapter 2 of CA98 and article 102 TFEU is prohibited the abuse of dominant position.

Competition act 1988

Competition is important for the consumer in various ways:

1. Price of the product is low.

2. New products.

3. Quality is also become better

4. There is availability of large variety.

Office of fair trading:

1. It has the power to investigate the business that has any suspicion.

2. Any enforcement can be taken by the office of fair trading. [businesscasestudies.co.uk, (2015)]

P 3.2 Explain the Role of competition commission within the context of

monopolies and anti- competitive practices and UK office of fair trading.

Competition commission was set in 1988 in Uk. It is establishes for enforcing the competition

act of the Uk. Competition commission is only one legislation in the UK who regulates the

competition in the market of the Uk. Competition commission has various regulatory bodies that

have various functions and power which is deal with the unfair trading practice. The

commission is deal with the appeal which is comes from the board. The commission also deals

with the cases which are referred by the office of fair trading. In Uk monopoly is illegal. UK

anti-trust legislation breaks up the monopoly in the market. it is an independent body which

investigate or mad inquiry related to the mergers, market. it ensure that there is healthy

environment in the market. there are various authorities which have the different power and

functions.

P 3.4 Define dominant position with the EU common market Dominant position is that situation in which any firm who occupies 25% of the market share in

the relevant market.

These conditions are exist in the dominant position

1. If the firm have 25% control over the relevant market.

2. Exploit the consumers by imposing any unfairly and unsatisfactory condition is imposed.

3. Creates barrier for the new entrants

4. Wipe out the competitors form the market.

There are various instruments through one can understand the firm abuse the dominant position.

1. Price discrimination: In which firm charge different price form different different customers.

2. Predatory price: in this firm sell their product at the below cost with the motive to wipe out the

competitors.

3. Tying and bundling agreements: In tying agreement the supplier sells at one condition if the

purchaser did not buy any other product form other supplier or buyer has to purchase the

different product.

Any firm who abuse the dominant position shall be prohibited because it effect to the trade of the

member states.

P3.4 consider the application of EU exemptions to potentially anti-competitive

practices

Exemptions are:

If the dominant firm is satisfy that the benefit is distributed by the firm in the customers

without any discrimination.

Dominant firm satisfy that company have the justification for using this abusive

practices in certain conditions.

Firms also satisfy that the goods and services which is produced for the development of

the economic and social progress.

Task 4

P4.1 Identify differing forms of intellectual property Intellectual property is deal with the intangible forms of property which include patent,

trademark, designs, copyright etc. In UK intellectual property is regulated through the

intellectual property act 2014. In this act there are various parts laid down related with the

registration and application process. This act also provides remedy for any infringement made by

the individual. The owner of the IP has the full control over his property. In this anyone who get

any new idea get the exclusive right which is given for the specific period of time. The right

which is granted to the owner I scan be sold, hired or give license to any other person by the

owner.

There are 2 different types of intellectual property:

1. Copyright

2. Industrial property

Copyright includes all the literary, dramatic, musical work and in industrial property it includes

the patent, designs, trademark etc. (ipo.gov.uk,2015)

P4.2 Outline the principles relating to the protection of inventions through

patent rights and their infringement

Patent is the protection which is given for the new invention which is invented by the inventor.

Patent include all the things like how the things work, how is made and all the things which is

necessary for taking the patent. Patent is the exclusive right which is given to the patentee for the

invention. The owner of the patent has the right to prevent others from using, selling, or

importing by the individual. Any person has to take the permission from the patentee for making,

using or selling his invention. If make use of the invention without his permission then he will

infringed the rights of the owner.

Patent act 1977 only provides the patent if these conditions are fulfilled:

1. New invention

2. It must be used for the industries.

2. It is not obvious.

Patent is given to the patentee for the 20 years form the day it is register in the patent office. For

the first four years the registration is renewed each year. If the patentee is failed to renew then

the invention can be used by the other parties without any infringement.

Infringement of a patent: Any person who is using selling or importing the product patent or

process patent without the permission of the owner then it leads to infringement.

Action against the infringement: an owner has right to take action against the infringements of

the patent. In this court give order that destroy the infringing copies, take out the loss from the

infringer account, and also take injunction that he will not do in future. (ipo.gov.uk, 2015)

P4.3 Describe the principles relating to copyright protection and their

infringement in a given business scenario Copyright is also a right which is given to the owner of the work. Copyright is given for new

ideas of work. Copyright not protect the ideas of a work it gives automatically protection to the

new work. Any work is protected by the more than one copyright. Like in an album of music,

sound recording, musical works, and song and so on. Any person cannot use the copyright work

without the permission of the copyright owner, if he makes use or selling the work without his

permission than he will be liable for making the infringement of the work. There are two types of

remedies are available for the copyright infringement work.

1. First are civil remedies.

2. Criminal remedies

Any person who does these following is the infringement of the work.

1. If the infringing copies are distributed among the peoples.

2. Any infringing copies are imported not for the personal use.

3. The large number of copies is distributed among the peoples who have adversely effect on the

trade of the copyrighted owner.

4. Sell or hired the copies(Ipo.gov.uk, (2014).

P4.4 Compare and contrast the protection of trademarks and business names. 1. Business name is the name which is given to the business for operating in the market.

Trademark: it is mark which is capable to distinguish the work from the other.

2. Business name: it is given for long period without any renewal period.

Trademark: Trademark is given for the 10 years but it can be renewed after 5 to 6 years.

3. Business names: it is continue unless there is any objection is raised by the local level.

Trademark: it can be continue if the objection is raised by the locality.

4. Business name: proprietary right is not given.

Trademark: In this proprietary right is given. (ipo.gov.uk, 2014)

References

Ipo.gov.uk, (2015). Intellectual Property Office - GOV.UK. [online] Available at:

http://www.ipo.gov.uk/whyuse.htm [Accessed 17 Jun. 2015].

Ipo.gov.uk, (2015). Intellectual property and your work - GOV.UK. [online] Available at:

http://www.ipo.gov.uk/types/patent/p-about/p-whatis.htm [Accessed 17 Jun. 2015].

Ipo.gov.uk, (2014). Unacceptable trademarks - Detailed guidance - GOV.UK. [online]

Available at: http://www.ipo.gov.uk/types/tm/t-about/t-whatis.htm [Accessed 17 Jun.

2015].

Ipo.gov.uk, (2014). Unacceptable trade marks - Detailed guidance - GOV.UK. [online]

Available at: http://www.ipo.gov.uk/types/tm/t-applying/t-before/t-requirements/t-

requirements-protected.htm [Accessed 17 Jun. 2015].

Saharay', D. (2015). Textbook on Sale of Goods and Hire Purchase. Universal law

publishing.

Austen-Baker', R. (2015). Implied Terms in English Contract Law. Edward Elgar

publishing limited.

Slideshare.net, (2015). Remedies for breach. [online] Available at:

http://www.slideshare.net/sheikhjee/remedies-for-breach [Accessed 17 Jun. 2015].

Aquacard.co.uk, (2015). Different Types of Credit - Credit Advice | aqua. [online]

Available at: http://www.aquacard.co.uk/credit-tips-advice/budgeting/types-of-credit/

[Accessed 17 Jun. 2015].

businesscasestudies.co.uk, (2015). Anti-competitive practices - The importance of

competition policy - Office of Fair Trading | Office of Fair Trading case studies and

information | Business Case Studies. [online] Available at:

http://businesscasestudies.co.uk/office-of-fair-trading/the-importance-of-competition-

policy/anti-competitive-practices.html#axzz3dIUfpvfc [Accessed 17 Jun. 2015].