CONTENTS

Q1 Apply the legal rules on implied terms relating to the sale of goods and
supply of services
Q2 Apply the statutory provisions on the transfer of property and possession
Q3 Evaluate the statutory provisions on buyers and sellers remedies
Q4 Apply product liability statutory provisions
Q5. Demonstrate creative incentives of Dot Motorcycle Company to compete
competitors
Q6. Differentiate between types of credit agreements
Q7. Apply rules, termination rights and default notices in a given scenario
Q8. Differentiate between the different types of agent
Q9. Evaluate the rights and duties of an agent
Q10. identify and apply strategies to find and justify appropriate solutions for
increasing Customer satisfaction over credit agreements
Ql1. Use critical reflection to evaluate Dot's refund policy and credit
agreements and justify your findings, and make valid conclusions
Q12. Outline monopolies and anti-competitive practice legislation in the UK
Q13. Explain the role of the Competition Commission within the context of
monopolies and Anti-competitive practices and the UK Office of Fair Trading
Q14. Define dominant positions within the EU common market
Q15- consider the application of EU exemptions to potentially anticompetitive practices
Q16. Select/design and apply appropriate methods/techniques to reduce
number of customers' complaints
Q17. Identify differing forms of intellectual property
Q18. outline the principles relating to the protection of inventions through
patent rights And their infringement in a given business scenario
Q19. Describe the principles relating to copyright protection and their
infringement in a Given business scenario
Q20. Compare and contrast the protection of trademarks and business names
Q21. As a Personal Business Secretary of CFO how would you carry out
responsibilities for managing and organizing all initiatives and efforts to
overcome the present situation
Reference

PAGE
2
2
3
3
4
4
5
5
6
7
7
8
9
9
10
10
10
11
12
13
13

14

Q1 Apply the legal rules on implied terms relating to the sale of goods and supply of
services

The Sale of Goods Act 1979 supplies a number of key protections intended for purchasers:
1. The vendor needs to have the best to promote goods
2. Goods marketed by simply information should correspond to the actual information
3. Goods has to be involving acceptable high quality
4. Goods marketed by simply test, goods should correspond to the actual test with high quality
This Selling involving Goods Act relates to many legal papers for the selling involving products,
even so will be far more restricted with its setting in that this simply is true wherever products
can be purchased through a small business. Furthermore the place that the products can be
purchased through a small business the actual conventions with the Selling involving Goods Act
are a suitable while using security proposed by the actual Illegal Long term contract Words Act
1977 which forbids their particular different.

These protects are by means of statutory suggested phrases. This means that the actual Selling
involving Goods Act can set these kinds of phrases directly into many legal papers for the selling
involving products regardless of the actual events by themselves have got predetermined from
the stipulations involving selling. A agreement is designed for the actual selling involving
products offered it is just a agreement to help move control involving products (as against a new
hire agreement) plus the products are sold back for the money. This specific excludes legal
papers involving barter except if money can be provided.
The sales of goods and supply of services have certain rules in order to protect the purchaser.
There is the sale of goods act 1979 which protect purchasers to ensure that purchasers are able to
get goods which are of high quality and for the right purpose.
There is also the supply of goods and services act 1982 to ensure that the service is performed
with proper skill and care and within a reasonable time frame. This is also to ensure that the
purchaser is not over priced.
2

According to the sale of goods act, the seller has the right to sell his goods, goods must be of
high quality and sold by description, and the goods must be sold by sample and correspond to the
sample.
Q2 Apply the statutory provisions on the transfer of property and possession
The transfer of property act 1882 added the doctrine of part performance through the amendment
act. According to the law of contract, rights cannot be passed on unless the sale is complete. This
doctrine states that if a person agrees with the other and lets the other person to act on behalf of
the contract, that person will be equitable and cannot be resisted in case of a transfer. Thus the
transfer cannot go on without both parties being present and being in agreement. A contract
cannot be registered unless both parties agree.
According to part performance, there must be consideration, the contracts should give out the
terms of transfer, the transferee must take possession of his part in the contract, and the transferee
should perform his part.
Possession is usually a residence attention below which someone has the capacity to exercising
electric power in excess of a thing towards the exclusion of most other folks. This can be a
essential residence appropriate that will entitles this owner to be able to (1) the right to remain
calm control towards everyone except an individual having a outstanding appropriate; (2) the
right to get better any chattel which has been wrongfully consumed; and also (3) the right to get
better loss towards wrongdoers.
Possession takes a amount of true management over the item, in addition to this motive to
acquire and also banish other folks. Legislation realizes a pair of essential sorts of control: true
and also helpful.
Precise control prevails whenever someone knowingly has direct physical management in excess
of a great item in a granted occasion. For instance, someone sporting a specific section of useful
necklaces has true control of the usb ports. Constructive control may be the electric power and
also motive of the specific to manage a specific item, though it is just not in physical form as
individuals management. For instance, someone who has the main element to some standard
3

bank safe and sound deposit box, which boasts a useful section of necklaces that will your
woman owns, can be considered in helpful control with the necklaces.
Individual residence can be regarded as missing if your operator has involuntarily parted by it
and is also uninformed connected with it's location. Mislaid residence can be what a great
operator blatantly spots somewhere with the undeniable fact that he's going to ultimately have
the capacity to realize its once more however hereafter does not remember where it's been
placed. Discontinued residence can be that will to be able to that the operator has blatantly
relinquished all protection under the law.
Lost or even mislaid residence may be possessed through the one who missing or even mislaid
that. While one particular locates missing goods, this finder of the bird can be eligible to control
towards everyone except for the truth operator.
This finder of the bird connected with missing articles on terrain belonging to another individual
can be eligible to control towards everyone even so the correct operator, until this finder of the
bird can be guilty connected with Trespass. This finder of the bird connected with lost goods
does not have any right to their control. The owner of where a page can be mislaid carries a right
to this content towards everyone even so the correct operator. Discontinued residence is usually
had and also possessed through the initial person who workouts dominion in excess of that by
having an motive to be able to maintain that while his / her personal. In any event, between the
finder of the bird of any missing, mislaid, or even forgotten article and also the master of where
it's identified, regulations relates to what ever principle is likely to end in this come back with the
article to be able to it's rightful operator.

Q3 Evaluate the statutory provisions on buyers and sellers remedies

4

Buyers and sellers have remedies. The seller either enjoys real or personal remedies. These
remedies are:
Rights against the goods: this arises when the seller is unpaid, credit provision is not subjected
to the goods sold, if the credit period for the given credit has expired, the buyer is insolvent and
when the seller is in possession of the goods
Right of resale: Incase the seller is unpaid he has the right to stops goods in transit and resale
them
Action for price: If the buyer defaults to pay for the goods purchased, the seller has the right to
take him to court to be compensated.
Action for non acceptance: The seller has the right to sue a buyer who does not accept goods
that were ordered by him.
Some of the buyers remedies are:
Action for non delivery: The buyer can sue the seller who has refused to deliver goods that have
been ordered and paid for.
Specific performance: This is applicable where there is a sale of a particular good. The court
will ensure that the seller delivers goods to the buyer according to the terms of agreement.
Action for breach of warranty: The buyer has a right to claim a breach of warranty by the
seller.
Q4 Apply product liability statutory provisions
Product liability is the liability of the participants of the manufacture of a product for the
damages caused by that product.
Product liability claims can be based on breach of warranty, negligence and strict liability.
Statutory provisions are diverse to meet the need. One needs to prove that the product was
defective in jurisdiction. The product defects that cause liabilities to manufacturers are defects
arising from design, manufacturing and marketing.
Products liability describes your liability connected with any or just about all functions on the
string connected with production connected with any item intended for destruction caused by of
which item. Including the producer connected with element pieces (at your the top of chain), a
5

great building producer, your wholesaler, and also the retail store manager (at the bottom from
the chain). Products made up of untouched blemishes of which cause harm to some sort of buyer
from the item, or anyone to who the merchandise has been credited, presented, etc., are classified
as the subject matter connected with Products liability accommodates. While Products usually
are thought of as real personal home, Products liability offers expanded of which explanation to
add intangibles (gas), naturals (pets), real estate property (house), and also articles (navigational
charts).
Products liability claims might be according to neglectfulness, stringent liability, or breach
connected with guarantee connected with health with respect to the legislation in that your
declare is predicated. A lot of expresses possess enacted extensive Products liability statutes.
Most of these statutory procedures can be quite assorted so that your north america Department
connected with Trade offers promulgated some sort of Model Homogeneous Products
Responsibility React (MUPLA) intended for non-reflex employ from the expresses. There is
absolutely no federal government Products liability legislations.
In any legislation 1 ought to prove the item is usually defective. You can find about three types of
item blemishes of which incur liability within companies and also companies: layout blemishes,
producing blemishes, and also blemishes within advertising. Layout blemishes are untouched;
they can be found ahead of the item is usually made. While the piece might work its function
well, it might be unreasonably hazardous to utilize because of layout drawback. On the other
hand, producing blemishes happen throughout the design or generation from the piece. Just one
or two beyond numerous Products from the identical form are mistaken however. Disorders
within advertising cope with inappropriate guidance and also problems in order to warn buyers
connected with latent problems within the item.
Products Responsibility is often deemed some sort of stringent liability crime. Stringent liability
errors do not rely on the degree connected with carefulness from the opposition. Translated in
order to Products liability words, some sort of opposition is liable when it's found the item is
usually defective. It is unnecessary whether the producer or provider exercised excellent health

care; if you have some sort of problem within the item that produces injury, the individual will
likely be answerable for it.

Q5. Demonstrate creative incentives of Dot Motorcycle Company to compete competitors

The independence in order to follow some sort of income, work a company, as well as usually
contend available is crucial in order to virtually any no cost business method. Rivalry generates
bonuses for organizations in order to acquire purchaser faithfulness by means of offering top
quality products at fair price ranges. As well, opposition may also instill cause harm to. The
independence in order to contend allows organizations the best in order to lure buyers far from
the other. When one particular business entices enough buyers far from competition, people rival
organizations may possibly have to power down or even go.
The law involving illegal opposition won't punish a company merely internet marketing effective
available. Neither will the law encourage culpability simply because a company is usually
strongly marketing their product or service. The law considers, on the other hand, which for each
buck received by means of one particular business, some sort of buck will probably be dropped
by the competition. Accordingly, the law discourages a company via unfairly profiting in a
competitor's expenditure. What makes up illegal opposition varies according to the Cause of
Actions a fact with just about every case. Included in this are activities for that encroachment
involving Patents, Logos, as well as copyrights; activities for that wrongful appropriation
involving Deal Gown, buy and sell bands, buy and sell strategies, as well as service grades; as
well as activities for that newsletter involving defamatory, fake, as well as inaccurate
representations.
Virtually any commitment, regardless of whether created or even by mouth, qualifies for
safeguard via silly interference. Noncompetition agreements undoubtedly are a repeated supply
of lawsuit in this field involving law. These kinds of agreements commonly occur with skilled
job adjustments where by a boss takes a skilled employee in order to indication a understanding
promising definitely not to venture to help some sort of competition inside the exact same
7

geographic market. Like contracts are usually enforceable except that they work in order to
deprive a workforce of the directly to meaningfully follow some sort of income. A staff that
decides in order to violate some sort of noncompetition commitment is usually guilt ridden
involving breach involving commitment, and also the business which attracted the particular
employee absent could possibly be held chargeable for interfering with an existing contractual
partnership with violation of the law involving illegal opposition.
Casual buy and sell relations who have definitely not been reduced in order to contractual terms
may also be safeguarded via outside the house interference. The law involving illegal opposition
discourages organizations via intentionally imposing damage when some sort of competitor's
everyday business relations by means of improper signifies or even to have an improper purpose.
Incorrect signifies include the usage of physical violence, Unnecessary Have an effect on, as well
as coercion in order to warned competition or even bully buyers. By way of example, it's against
the law to get a business in order to blockade the particular entranceway with a competitor's go
shopping or even obstruct the particular shipping and delivery involving items using a display
involving push. The simple refusal to deal with some sort of competition, on the other hand,
seriously isn't considered a improper method of opposition, even if the particular refusal is
usually determined by means of spite.
Dot Company tried to be more competitive by decreasing its operational costs in order to
increase profits. They did this by employing a new employer to make sure that this is
implemented. Dot Company also retrenched the highly paid staff when the returns were low to
make sure that the costs are able to reduce. All senior managers made a 25% pay cut. By doing
this they are able to reduce their expenses and therefore higher returns are expected.

Task 2

Q6. Differentiate between types of credit arrangements

There are several types of credit arrangement that lending institutions offer its customers. This
are:
Personal loans
This are loans offered to customers and may be short term or long term. In this arrangement the
customer provides security and he is given the amount of loan he wants then he will pay in
installments. The bank charges a certain percent of interest rate on the borrowed amount. The
borrower can pay on monthly basis or whatever time period they have agreed with the lending
institution.
Overdraft
This is whereby a borrower borrows money on is bank account. The bank will allow him to
overdraw money then return money on a certain percent of interest within a certain time frame.
Credit cards
This allows you to borrow money on a monthly basis at no interest rate. The borrower pays
within a set number of days. Credit cards are used for purchases of goods.

Hire purchase
This are agreements that are offered by shops whereby if the buyer wants to buy something and
he does not have the full amount he is allowed to pay the deposit and clear the rest in a number
of installment within a certain time limit at a given percentage of interest.
Credit union loans
This is whereby a loan is offered to members of a credit union at a certain percent of interest.
Credit unions are found at certain institutions such as the work place or in a certain area.
Mortgages
9

This is a type of loan that is given to persons who want to buy homes or houses. In this type of
arrangement one can access the house then start paying in installments for a certain time frame at
a certain interest percent per year.
Q7 Apply rules, termination rights and default notices in a given scenario
Default notice is a notice given in case one fails to follow the rules or defaults to pay. The
Creditor sends a default notice to the person who has defaulted giving one fourteen days from the
date they have received to pay the debt. The notice should have the necessary information
regarding consumer credit and regulations.
Default Notice
Section 87(1) from the 1974 React makes it possible for this financial institution in order to send
out you a default detect providing you with fourteen days from the day you will get the idea to
pay for this debts. Your default detect ought to contain all of the needed details underneath the
Credit score (Enforcement, Default as well as Firing Notices) Restrictions 1983 ('the 1983
Regulations'), which include
a assertion saying this detect is really a default detect functioned within portion 87(1) from the
1974 React
a account from the arrangement
this label as well as handle involving both the person as well as the financial institution
details of this infringement (i. age. late payment) as well as, if the infringement could be
remedied, this day in which the idea has to be remedied or even, if the infringement isn't
effective at therapy, the amount necessary to possibly be settled after the expiry from the given
day;
a assertion saying: if the steps expected by simply this particular detect can be obtained prior to a
day revealed simply no additionally enforcement steps will be drawn in value of this
infringement
a assertion saying: if you don't get this steps expected by simply this particular detect prior to a
day revealed then this additionally steps set out underneath may be obtained against anyone

10

a definite as well as unambiguous assertion saying when this steps isn't obtained from the day
given, what it's going to perform (for instance, when should it eliminate this arrangement as well
as recovery ownership from the engine vehicle)
if the arrangement can be among use invest in or even conditional sale made, a assertion saying:
although for those who have settled a minumum of one 3rd involving the quantity payable
underneath the arrangement set out underneath (or any installation fee in addition 1 / 3rd
involving other sum payable). Your financial institution might not get back the goods against
your wants until he gets a judge purchase. (In Scotland, he may need to have a judge purchase
whenever you want. ) In the event he may get all of them rear without having your concur or a
judge purchase, you've got the correct to have rear all of the funds you've got settled underneath
the arrangement set out underneath
when some funds is needed to possibly be settled, the amount before deducting any kickback
with first arrangement
claims saying:
for those who have trouble throughout having to pay any amount in arrears underneath the
arrangement or even taking any steps expected by simply this particular detect, you can connect
with this judge which can help to make a good purchase enabling you additional time
for anyone who is undecided how to handle it, you need to obtain guide asap. By way of example
you need to contact a lawyer, your local dealing standards section or even your nearest citizens'
assistance agency.
A hire purchase or conditional sale debtor can write a notice to the creditor before the end of the
period to end the agreement. When the agreement ends and one has paid less than half of the
amount payable, he must pay the creditor the difference between one half of the agreement and
what you have paid.
Q8 Differentiate between the different types of agent
There are various kinds of agents who can be classified in different ways. Some of the ways in
which they can be classified are:
Special agents: They are those who perform specific tasks only and they operate within a
specific period for a particular job.
11

General agents: They do general tasks in the interest of their principal

Agents can also be classified as:
Commercial agent: They are those who have the power to negotiate and conclude the purchase
or sale of goods on behalf of the other.
Factor or mercantile agent: Is an agent who has the power to possess principals property with
the aim of selling it
Agency of necessity: Are the kind of agents who come in whenever there is a certain emergency.
They can operate without the authorization of the owner.
Transaction Agent: In claims exactly where combined organization seriously isn't authorized,
list agents who find themselves inside location associated with publishing a deliver for the
purchaser may want to turn into a exchange adviser. This adviser won't stand for either party
however just allows for the exchange.
Dual Agent: Agencies get into combined organization after they stand for the owner as well as
the purchaser. Dual organization could happen regardless of whether the you will find a pair of
agents required -- an inventory adviser along with a consumer's adviser -- when both agents
benefit the same brokerage. That may be mainly because it's the real estate brokerage who
produces organization. Dual organization seriously isn't legal in most 50 claims.
Buyer's Agent: Some sort of consumer's adviser is known as a advertising adviser (not being
puzzled with a seller's agent), some sort of acquiring adviser or perhaps, in most claims, a unique
consumer's adviser. Unique consumer's agents by no means benefit dealers. Numerous agents, on
the other hand, help both dealers in addition to buyers, although not usually inside same
exchange. Bidder's agents may possibly or perhaps might not have to have a purchaser to help
indication some sort of consumer's brokerage agreement, depending on neighborhood custom
made.
Listing Agent: List agents are also referred to as seller's agents since they stand for owner. A list
adviser can be a real estate brokerage or perhaps a real estate agent. These types of agents are
obligated to repay some sort of fiduciary responsibility for the owner underneath an inventory
agreement in addition to must protect which fascination.

12

Q9 Evaluate the rights and duties of an agent

Agents also have rights and duties
Rights of an agent:
Right of compensation
Agents have a right to receive compensation of the costs they incurred. Where an agent is an
employee, compensation in form of commission should be paid in addition to salary. In the case
of commercial agents, there are the commercial agents regulations to ensure that commercial
agents are paid.
Right of indemnification
Agents have the right to be compensated incase of loss or injury suffered in carrying out the
agency duties.
Duties of an agent
There are duties which are set out for agents in order to know what to expect from them. Some of
the duties are:
Duty of care
An agent is expected to apply skills and care according to the circumstances. The nature of
agency differs and therefore the standards of skill and care differ.
Fiduciary duties
An agent should make sure that his personal interest and that of the principal do not differ. The
agent should be trust worth by not receiving bribes or making secret profits.

Express authority
Is an authority given by the agent such that if the agent performs any act within the scope of his
authority the principal and any third party will have to comply.
Actual implied authority
Enables the agent to have authority to do whatever he wills so long as it is in line with his job.
13

Q10 Identify and apply strategies to find and justify appropriate solutions for increasing
customer satisfaction over credit arrangements
Investigation possesses recognized a new core group of qualities and also actions of productive
client
service corporations in the industry economy. Regardless of whether these
corporations provide things or solutions, they will notice that happy clients are usually
the true secret with their achievements. Many people target reaching 100 percent customer
satisfaction
and also upload this particular concern throughout the firm all the way through that has a sound
structure of procedures, techniques and also details.
Obtaining excessive amounts of customer satisfaction demands that will corporations
consistently
check and also take a look at the particular experiences, opinions, and also suggestions of the
clients
and also people who find themselves potential customers. Strengthening service quality to satisfy
customers
expectations is usually an constant component of doing work. In this manner, clients travel the
market industry
and the firm.
Throughout a group assembly mother board, members record the productive effects
they will look for are usually extremely linked to the particular accessibility to a thorough range
of quality family members
solutions and also group sustains; and when they may modify these effects
they must store carrier's networks and also deliverers dependable. Having capital from the
group foundation, the particular homeowner mother board hires a residential district leader that
can help all of them
carry out a new marketplace analysis analysis in the solutions that exist inside their group in
order to

14

online communities which are acknowledging positive results they also look for. With this
particular details, the particular
homeowner mother board decides in order to launch a new resident/consumer marketing
campaign to improve nearby service
access and also quality. Many people opt to:
1. Instruct nearby people about those things, solutions and also sustains which are
required to increasing the quality of lifetime inside the town and also offering
young children and also family members a new fairer tremble in greater chances;
3. Perform a residential district review in order to taxation the particular accentuate of solutions
that will
can be found inside their group;
3. Instruct people about minimum amount quality expectations which are important
due to this group of things, solutions and also sustains to be effective and also able to
make the particular effect people wished and also needed;
four. Build a group record card that will regularly accumulates and also studies
information regarding residents experiences with service quality, resident/
consumer pleasure, and also service usefulness; and also,
5. Start off group dialogues with people, nearby carrier's networks, civic
teams, authorities organizations and also politicians to share homeowner suggestions
and also focus on ways to improve all round service quality and also access.
In the case of Dot Company, they decided to come up with a 5 year plan to increase operating
efficiency and reduce operational costs in order to increase sales. They employed a new person
to make the business more competitive.
Dot company made a 25% pay cut and eliminated several high positions to reduce costs. By
eliminating costs they will increase customer satisfaction since their prices will go down and in
turn the sales will increase.
Q11 Use critical reflection to evaluate Dots refund policy and credit agreements and justify
your findings, and make valid conclusions

15

The consumer Credit Act and it is changes affect those that employ credit to buy things along
with or perhaps solutions, by way of example, upon hire-purchase documents or perhaps by
using a retail store bank card. This Behave governs the particular licensing connected with, and
also other regulates, upon dealers that source credit, or perhaps things along with solutions upon
credit. It is therefore a very important application to have knowledge of the way the idea is
effective at your fingertips.
Exactly where things usually are purchased upon credit well away (for case in point, in the
internet) there is a right to cancel beneath the Consumer Safeguard (Distance Selling)
Restrictions 2002. This kind of cancellation time period continues no less than a week as soon as
the time what is the best you get the products, nevertheless may be lengthier. Should you cancel
beneath these kinds of polices, any associated credit arrangement would be immediately
cancelled far too.
Dot Company did not have a good refund policy and good credit arrangements. This is evident
from the complaining customers who were saying what they are advertising is not in line with
what the company does.
The company not having a good refund policy is evident from the fact that Dot company was
facing a lot of financial challenges therefore did not have money for refund.
The conclusions that can be drawn from this are that Dot Company did not follow policies
relating to refund of customers and proper credit arrangements. This is because of OFCOM
allegations and customers complaints indicated lack of satisfaction.

16

Task 3
Q12 Outline monopolies and anti-competitive practice legislation in the UK
Monopolies are large businesses which make it hard for other small businesses to thrive. They
give anti competitive environment. Monopolies have a high market power which gives
consumers less choice and therefore high prices.
The anti-competitive practices are:Cartels: They discourage others from participating in the market by setting very high prices
Exclusive dealing: Whereby the contracted supplier restricts a certain retailer or wholesaler to
purchase from him.
Price fixing: whereby companies merge to set price therefore disabling the free market from
setting their prices.
Dumping: Whereby a company sets a very low price in a competitive market therefore selling at
a loss.
Dividing territories: Is whereby two companies agree to reduce competition on certain
territories.
Price limiting: Whereby a monopolist sets the price therefore it discourages others from entering
the market
Tying: Is whereby the retailer is forced to purchase gods that are not naturally related.
Resale price maintenance: Whereby resellers are not allowed to determine the price on their
own.
Q13 Explain the role of the competition Commission within the context of monopolies and
anti-competitive practices and the UK office of Fair Trading
Competition commission was established by the competition act 1998 and its a public body. It
was initially called the monopolies and mergers commission.
Legislation along with the Framework with the marketplace
17

Troubles take place once the marketplace framework within a offered marketplace turns into
monopolistic at the. gary. if your merging or perhaps a take-over reasons an organisation to
produce greater than 25% with the marketplace output (defined being a functioning monopoly).
Mergers are generally looked at from the Rivalry Payment.
Oligopolies may cause marketplace disappointment in particular when there is evidence of
collusive behaviour from the prominent businesses in the marketplace
Your competitors Payment
Your competitors is usually a open entire body set up from the Rivalry Take action 1998. Earlier
known as the Monopolies and Mergers Payment, the idea came into being in very first Apr 1999
Your competitors Payment provides two main jobs
1. Confirming in testimonials and referrals of the Director General connected with Sensible
Dealing, the DTI along with the main electricity government bodies
only two. Ability to hear appeals next to prohibitions beneath Rivalry Take action 1998.
The competition commission was formed to perform the following roles: To hear appeals against
prohibitions in the competition act 1998 and to report in case the director of fair trading, the data
or main utility regulators make any referrals.
According to the European competition law, acts which damage competition in a market and
abuse of a dominant position are prohibited.
Anti competitive agreement mainly deal with, fixing purchasing and selling prices, they limit
production or investment or technical development, they ensure that there is sharing of markets
or supply sources, and applies different trading conditions.
Fair trading Act 1973: This was formed to control the formation of monopolies.

18

Q14 Define dominant positions within the EU common market

The EU common market prohibits any abuse of a dominant position in the common market. In
this case someone in a dominant position is one who has economic power over customer or
supplier over a certain period of time. To define dominance, the following criteria are used:
Market share: If one has a larger number of market shares then he is in a more dominant
position that one who has a low market share.
Market structure: Market structure elements define the dominance. For example if people share
the same market they can occupy a collective dominant position.
Barriers to entry: They are conditions which hinder some people from participating in the
market. Therefore those who enter easily may occupy a more dominant position.
Initial, domination of your offered current market is not defined only by the marketplace share
placed by simply an undertaking or involving other quantitative things, although must be looked
at from the gentle involving the chance to exercising an significant impact for the performance
on the current market along with for the conduct involving other organizations. Within the
common sense involving 14 Feb . 1978 in the case of "United Manufacturers Organization v.
Commission" The courtroom upheld along with become bigger this is on the predominant place
adopted through the Commission rate around the determination involving 9 12 1971 from the
"Continental Can easily Company" case. The item so explained that the predominant place
known throughout Article eighty six (EEC, completely new Article 102 TFEU)"relates to a place
involving economic power relished by simply an undertaking which makes it possible for the
item to prevent successful competition currently being looked after for the relevant current
market giving the item the electricity for you to conduct themselves a great significant magnitude
individually involving the competition, consumers along with in the end involving the
consumers".
The meaning on the relevant current market or on the current market you want can be involving
wonderful magnitude, because a lot more purely which current market is usually defined in time
along with area, the more the likelihood that the predominant place might be determined from
19

the popular current market. Within the common sense involving 13 Feb . 1979 from the
"Hoffman-La Roche v. Commission" case, your The courtroom involving Proper rights felt, in
common with the Commission rate, that every selection of nutritional vitamins takes its
individual current market and this a single product or service could fit in with two individual
markets if it might be employed for numerous requirements. This The courtroom placed which
precise competition must be capable of are present in between merchandise which fit in with
your relevant current market, which presupposes a respectable quantity interchangeability or
substitutability in between this sort of merchandise. To the Commission rate, your review
involving demand replacement entails a dedication on the range of merchandise, which are
viewed as substitutes through the buyer along with their competition could so impact your
pricing on the parties' merchandise. This Commission's see for the relevant current market is
definitely an analytical tool which assists you to compute company's current market stocks.
As regards the very idea of your distortion involving buy and sell in between New member Says,
which is identical with regard to Content 101 along with 102 on the TFEU (ex Content seventy
eight along with 82 TEC), your Commission rate and also the The courtroom involving Proper
rights recognize that the attentiveness where an undertaking uses up a predominant place from
the popular current market or in a large part of the item can be of importance with regard to buy
and sell in between New member Says. Within the common sense involving 13 July 1966 from
the "Grundig-Consten" case your The courtroom opined which the very idea of problems for buy
and sell in between New member Says must be seen as a problem involving "whether your
arrangement is usually efficient at constituting a menace... for you to flexibility involving buy
and sell in between New member Says in a fashion which might harm your accomplishment on
the targets of your sole current market in between States" [Joined situations 56 along with
58/64]. Needless to say which abuse of your predominant place is usually evaluated much more
harshly given it can compartmentalise your relevant current market along with create economic
interpenetration more difficult. That had been true having Uk Leyland, which rejected for you to
difficulty type-approval certs with regard to left-hand-drive "Metro".

Q15 Consider the application of EU exemptions to potentially anti-competitive practices

20

Competition laws exempt specific sectors or certain economic activities. Examples of sectors
which are exempted are labor, agriculture and transport. The exemptions are few for countries
that have recently adopted competition laws. However there are some sectors which are excluded
from the competition law such as telecommunications, media, energy and financial services. This
is because these sectors do not face a lot of competition since it does not have a large number of
monopolies.
The competition act has exemptions for collective bargaining, association of fishermen and travel
agents, insurance and security firms, and sports.
The European Union also issues block exemptions for certain economic sectors to reduce the
burden imposed on the business firm and staff.
Q16 Select/design and apply appropriate methods or techniques to reduce number of
customers complaints
Dot Company can reduce the number of complaints by ensuring the products are of high quality
for the customers to be satisfied. They can do this by applying the legal rules.
The marketing department also needs to comply with advertising regulations such that they
advertise what they have and therefore dont mislead their customers.
The credit arrangements should be reconstructed such that it is friendly to the customer and there
is a good refund policy.
If all this are observed, customers complaints will reduce since they will be more satisfied.
Q17 Identify differing forms of intellectual property
Intellectual property is a set of legal rights for the protection of creative effort particularly
economic investment.
Forms of intellectual property are:
Copyright: Is the protection against unauthorized copying of original work. For example for
articles, music among others.
Patent: It protects what makes things work
21

Trademarks: Are logos or signs that distinguish a certain product in the market...
Designs: Is a shape that protects the appearance of a product or a logo
Trade secrets: Is confidential information which can be protected by the court concerning a
certain product. It is confidential information that will make the business have more advantage
over those who dont have the information.
Plant variety rights: The breeding of a new species of plant can be registered under the plant
varieties act.
Circuit layouts: Is the protection of integrated circuits such that there is no need for registration
by the Circuit Layout Act.
Q18 Outline the principles relating to the protection of inventions through patent rights
and their infringement in a given business scenario
The patent law has certain rules that must be taken into account. These are:

The inventor should receive a financial reward for his work. According to the patent law,
the inventor or designer of a certain enterprise should receive a financial reward for the

work he has done.

If an invention is made on generic resource, the applicant must disclose everything on the
application form and fill a specific form that will be provided by the patent administration

authority.
The patent holder to be given a compulsory license in case he fails to utilize his patent
within 3years or misuses his patent in a monopolizing manner.

These rules are to make sure that patents are protected.

In order to gain patent, the invention should be original, unique and useful. The patent body
will provide two tests to determine if the idea posses utility. The idea should be unique such
that it is not obvious.
In order to apply for the patent, the inventor should have an equitable conduct before the
patent and trademark office. Inventors should also pursue their inventions diligently since the
inventor may lose the patent if the idea is discovered by someone else.
The one who wants to be a patent holder should do a Patent cooperation treaty application to
file the application in several countries.

22

Infringement is violation of a patent law. This can be through selling, using, making or
importing an article that is covered by the patent. To prove infringement, the patentee must
show evidence that the action infringes the patent.
In case of infringement, the patentee is expected to pay compensation for the damages made
to the owner of the patent.
Q19 Describe the principles relating to copyright protection and their infringement in a
Given business scenario
There are copyright laws that protect the rights of a copyright holder. Copyright holders have
moral rights regarding the copyright and this are: right of paternity, right of integrity, and
right of withdrawal.
The rights of copyright owners differ with countries with each country having its own rules.
Copyright protection is subject to a number of exceptions and limitations depending on the
region. A copyright lasts for the whole lifetime of the holder and a minimum of 50years after
his death. Copyright helps one to reproduce and communicate his work to the public without
his work undergoing piracy.
When a copyright holder rights are infringed, he can take a civil action provided by the
national law in order to stop the unlawful activity from going on and to get compensated for
being violated. Through the court the violator may undergo injunction. In case the owner has
suffered financial loss, the court could be asked to pay for the damages.

Q20 Compare and contrast the protection of trademarks and business names
A business name is the name under which the business operates. It can be used for banking,
taxing, and billing and identification purposes.
A trademark is the right to do something and distinguish them from others.
A business name and trademarks differ in that a trademark allows your company to be unique
in the market while a name does not.

23

A trademark has laws that protect from infringement while a name does not. On choosing a
trademark, trade mark law must be applied to avoid diluting the trademark.
Q21 As a Personal Business Secretary of CFO how would you carry out responsibilities for
Managing and organizing all initiatives and efforts to overcome the present situation
As a secretary I would make sure that the terms of credit changes for the better. I would do
this by ensuring that all the right policies are followed by the employees. I would try to
integrate the marketing department with other departments to make sure that high quality
products are of high quality to ensure there is customer satisfaction. I will make sure that all
the business laws are implemented and followed by all the employees.

24

REFERENCE

Capon C. (2009), Understanding the Business Environment, Pioneers, NY, USA

Hariyappa B. (2009), Business Environment, Axon, Cape Town, South Africa
Paul J. (2010), Buss. Environment, Lightening Publication, Massachusetts, USA
Worthington I. (2009), Business Environment, Appress, NY, USA
Paul W. & Otter D. (2011), The Business Environment: Themes and Issues, New Jersey,

USA
Meiners R. (2011), The Legal Environment of Business, Appress, NY, USA
Brumfitt K. (2007), The Competitive Business Environment, Wiley, Sussex, UK
Kew J. (2005), Business Environment: Managing in a Strategic Context, McGraw Hill,

Massachusetts, USA
Palmar A. (2009), The Business Environment, Angel Publishers, Oxford, UK
Hitt M. (2002), Creating Value: Winners in the new business environment, Wiley, Sussex,
UK

25