Contents

Introduction.................................................................................................................... 1
The legal rules on implied terms relating to the sale of goods and supply of services..........................2
1.2

Statutory provisions on the transfer of property and possession......................3

1.3

Statutory provisions on buyers and sellers remedies......................................4

1.4

Product liability statutory provisions.................................................................5

2.1

Difference between types of credit agreements...............................................................5

2.2

Rules, termination rights and default notices in a given scenario..........................................6

2.3

Different types of agents........................................................................................... 6

2.4

The rights and duties of an agent................................................................................7

3.1

Outlining monopolies and anti-competitive practice legislation in the UK..............................8

3.2
Explaining the role of Competition Commission within the context of monopolies and anticompetitive practices and the UK office of fair-trading or other relevant authorities...........................9
3.3

Defining dominant positions within the EU common market............................................10

3.4

Applications of EU exemptions to potentially anti-competitive practices.............................11

4.1

Differing forms of intellectual property......................................................................11

4.2
Principles relating to the protection of invention through patent rights and their infringement in a
given scenario:.............................................................................................................. 12
References................................................................................................................ 13

Introduction
Business laws are necessary and important for not only the startup of the business but also for the
operating business compromise of rules and regulations. It includes of different laws which are

necessary for a successful business transactions. There are various types of laws available for the
business. Few of them are regards, tax, employment, intellectual property, bankruptcy, licensing
etc. In order to take effective decisions and to carry on the business operations successfully,
businesses must follow these laws and without these laws it is impossible for the business to
develop. Thus we can say that in order to ensure the security and safety the business must follow
these business laws. Each and every organization must prevent the violations of these business
laws.
Task 1
The legal rules on implied terms relating to the sale of goods and supply of services
In order to ensure the safety and security of buyers, government has implemented several laws
which are related to sales of goods and supply of services. Sale of Goods Act 1979 and the
Supply of Goods and Services Act 1982 explained few provisions related to sale of goods and
supply of services.
Implied terms used for sale of goods:
There are certain terms which are used in the contract of sale of goods. These terms are also
known as implied or express terms. Those term which both the contractual parties specify and
mutually determine are known as express terms but if the parties do not specify the terms and are
not certain are knows as implied terms. Or we can say that the implied and express terms are
opposite to each other. Some of the implied terms which are used in sale of goods are as follows.
Title: This term indicate the right of the sellers. This term is also referred as a condition.
Sale of goods by description: consistency of goods according to its explanation. Goods
can be described with certain features like trademark, brand or label.
Sale of goods by sample: According to Sec 17 goods are sold should be consistent with
sample and goods should be flawless.
Sale of goods by sample as well as description: The goods sold should match with the
sample and description of the goods shown to the seller. Sec 15 implies sale of goods by
sample and description.

 Ensuring Fitness: This term usually refer to the quality of the selling goods. When the
qualities of the goods are matching with the expectation then price, and other related
requirement are considered.
There are many other conditions as well. Some of them are as follows
The buyer must enjoy the possession of the goods.
There should be no burden on the goods
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:
Supply of goods and services Act 19982 (SGSA) enact the delivering of goods and services.
There are two part of SGSA. The first part include the supply of goods and the second part is
compromised by the supply of services. Following are few implied terms which are related to the
supply of services.
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.
Reasonable time and price are also a part of the implied terms. These term are related
with performing services within a reasonable time and price.

1.2 Statutory provisions on the transfer of property and

possession
Sec 18 to 25 define and explain the laws regarding the transfer of property. Some of the
provisions are as follows

 Goods should be ascertained: Unascertained goods in the contract of sale is not

allowed. In order to carry on the contract the goods must be ascertained otherwise the
contract will not be a valid.
Intention of party: The intention of party must be determined. Without the intention of
the buying or selling party can create misunderstanding in the future.
Specific goods: According to Sec 20 of contract of sale, 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.
Before sending the delivery, the seller must have knowledge about the weigh, quality or
test the goods. The ownership will not pass if the seller fail to do so.
The actual goods that need to be delivered must be identified by both buyers and sellers.
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.
On approval the property must be passes from the seller to the buyer.

1.3 Statutory provisions on buyers and sellers remedies

There are several provisions related to the buyers and sellers remedies. Some of them are
following
Buyers remedies
If the goods that needs to be sold are not reliable with quality, description buyer may
dismiss the entire or acknowledge as per contract and reject the rest.
If the seller does not convey the item within time or declines to convey then buyer may
make a move with respect to non-conveyance and late conveyance.
When there is breach of warranty, buyer can't dismiss the agreement yet he may
approached the seller for reduction or termination on price or may take actions against
him.
Sellers Remedies

 When purchaser declines to pay for goods that has been conveyed, seller can take actions
with respect to the payment of the goods.
When buyers refuses to accept, sellers can take actions for harms with respect to
disapproval of products.

1.4 Product liability statutory provisions

Consumer protection Act explain the provisions in product liability. According to Consumer
Protection Act, If a product or any of its component parts are defective manufacturer may be
liable. CPA introduced the statutory liability for faulty products. CPA has also imposed strict
liability on the manufacturing of faulty products. Those people who suffer lose due to the faulty
products can sue for the damages they face but for this there should be enough evidence
regarding the damage of the products.
Task 2

2.1

Difference between types of credit agreements

Before apply for new credit, the most imperative thing is picking the right credit and
comprehension its sorts. Credit agreements are ordered into taking after: secured credit and
unsecured credit. The contrasts between secured credit understanding and unsecured credit
agreement are the following:
There is security in the secured credit agreement. In this sort of agreement, if borrower neglects
to pay the obtained credit loan specialist may repossess his/her assets. There are different sorts of
secured credit, for example, secured credit cards, line of credit, bond over home ETC.
Whereas, there is no security in the unsecured credit agreement. In this sort of agreement, if
borrower neglects to pay the credit loan specialist may demand for payment of credit. He/she
may likewise attempt to gather debt with the assistance of debt authorities. There are different
sorts of unsecured credit, for example, bank advances, Master Cards, Visa Cards, Petrol Cards,
Retail Store Cards.

2.2

Rules, termination rights and default notices in a given scenario

Provisions with respect to termination of rights, rules, and default notice can be gotten from
different acts. For instance, if we recently obtained a motor car under hire purchase agreement it
might be controlled by Consumer Credit Act 1974. on the other hand if the lender needs to end
the agreement, he ought to tell it to the purchaser and give a default notice. All the vital
information with respect to depiction of agreement, addresses of both the buyer and the seller,
points of interest of break must be contained in default notice. Installment of unpaid segment is
another imperative thing. As per Sec 87(1), default notification is sent by the loan boss to the
account holder before 14 days to pay the unfulfilled obligations.

2.3

Different types of agents

Broker
A broker is the third person involve in the transaction between the buyer and the seller. This third
person is known as broker. When the both the seller and buyer start their contract, the broker
responsibility become vanish.
Factor
This person keep the goods of the seller so that the seller can easily sell it in the future. This
person act as a commercial agent bring a third parties for making the contract.

Commission Agent
When the transaction take place between the seller and the buyer, a third party take the
commission as a service fee and this person is known as commission agent. This person may
have the authority to have control on the goods.

Auctioneer
Sometime the goods need to be sell thorough auction. For this purpose special person is allowed
to make auction and this person is known as auctioneer.
A Del Credere Agent
A Del credere mediator certifies the implementation of contract with the assistance of other
party. If something went wrong concerning the contract carry out by other party, the Del credere
must reimburse.
General Agent and Particular Agent: General agents are linked with choosing all chores
in an organization. Whereas specific agents are related with achieving determined tasks.

2.4

The rights and duties of an agent

There are different rights and duties of the agent. Some of the rights and duties are given below.
Rights
1. The agent enact the responsibilities of the principal.
2. On behalf of the principal the agent has the right to preserve any amount regarding
business.
3. The remuneration of the agent has not due until till the completion of the project.
4. 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.
5. In case of any loss to the property or to goods the agent will recover these.

Duties
1. Execution of business is the first duty of the agent.
2. The agent must have the skill to compensate his principal.
3. According to Sec 217, An agent is bound to render proper accounts to his principal on
demand, or periodically if so provided in the agreement.

4. Agent and principal must be connected.

5. Agent must have the capability of paying all the sums. This exclude the sum of
remuneration and other costs.
6. If the principal is facing any disability, the agent must carry on the duties on the behalf of
the principal.

Task 3

3.1

Outlining monopolies and anti-competitive practice legislation in the UK

In the UK, all the firm has imposing monopoly power having market share of 25% of the overall
industry. These organizations having so much syndication force are regularly stroked off.
A fundamental potential type of masturbation is 'anti-competitive' practices. This is an approach
with the help of which the big brands want to take out the small business out of the industry so
that the big brands can easily capture the customers by giving them little purchasing power.
Following are few anit-competitive practices

Cartels

In order to escape collusion most of the companies in United Kingdom contract with each other.
These companies join together in the same market against different stakeholders like customers,
suppliers, or competitors.

Keep Out Competitors

The competitors can keep the competitors out. There are several tricks which the companies use
to take out the companies from the competition. Like destroyer pricing.

Restrictive Practices

There are several unethical practices which the companies practices on daily basis. For example
there are many companies which threaten their suppliers not to supply competitors products.
Sometime the companies pressurize the retailers not to stock the competitors products.

UK Competition Legislation
The following is the major areas of UK competition Legislation
1. Monopolies & Restrictive Practices (inquiry & Control) Act 1948 & Monopolies &
2.
3.
4.
5.
6.

3.2

Mergers Act 1965

Restrictive Trade Practices Act 1956 (goods) & Restrictive Practices Act 1976 (services)
Fair Trading Act 1973
Competition Act 1980
Telecommunications Act 1984
Competition Act 1998

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

Competition Commission
This commission has a duty to examine the monopoly power of the companies and then write a
statement to the minster in order to take further actions.
The EU & Anti-Competitive Practices:
European Union was established on the basis of free trade competition, efficiency and economic
growth etc. but in UK it has got disparagement. Thus European Union included Rome in the
union. 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 confident body. The real part of OFT is to guarantee the adequacy of the business
sector. It concentrates on the lessening of unjustifiable and deceptive focused exchanging.
The OFT's prime targets include:

To analyze and put right trading rehearses.

To control the basis of consumers credit.

To investigate hostile to aggressive works on, including restrictive practices.

To review misuse of business sector power.

To develop market system framework.

Other relevant authorities

There are many other relevant authorities. Some of them are as follows

Health and Safety Executive (HSE)

Medicines and Healthcare products Regulatory Agency (MHRA)

Vehicle Certification Authority (VCA)

Office of Rail Regulation (ORR)

National Measurement Office (NMO)

3.3

Defining dominant positions within the EU common market

The main theme of Article 102 of the treaty on the functioning of the European Union is to
eliminate endeavors against dominant positioning. Its inside part goes for syndication direction
where private commercial ventures are precluded from culmination. It additionally has negative
effect on society and clients. 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 composed of the following

Charging biased offering costs or other unfair promoting prerequisites.

Decreasing yield, business or innovative development as indicated by buyer's inclination.
Considering diverse conditions in indistinguishable concurrences with another promoting
party.

Making the synopsis of agreement in a manner that it has no association with the topic of
agreements.

3.4

Applications of EU exemptions 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

4.1

Differing forms of intellectual property

Intellectual property is correlated with protecting ones personal property. U.S

protects intellectual property. Intellectual property can be classified into the
following:

Copyrights

Whenever an entrepreneur innovate something new then the government give that person to
enjoy the profit for some time and this is known as copyrights. This copyright donot permit
anyone to copy the innovative thing without the permission of the owner or the entrepreneur.

Patents

People use patent to protect the right of the inventor. Only inventor can use, sell, import the
innovative product. In United State only three types of patents are available.

1. Utility Patent
2. Design patent
3. Plant Patent
Trademarks

Trademarks are the symbols which differentiate companys products from that of competitors.
Therefore companies use trademarks to indemnify products.

4.2 Principles relating to the protection of invention through patent rights and
their infringement in a given scenario:
Whenever appropriate invention take place, patent is used for protection. Government use this
tool so that people get inspire of new discoveries. This tool prevent the usage, sell and imitation
of innovator invention. In the given scenario of case study, Rachel copied my design and
invaded patent. She used my design without my permission. Due to this she was
not able to entitle to win the OSCAR. I should be careful to the following points in
order to avoid the infringement lawsuit.

First of all I should be worried about the product that needs to be patented.
I should ask if there is any other patent related to the patent which I want to take.
I should be in touch with the attorney for getting information.

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