ContentsTask1...........................................................................................................................................................2

P1 .Be able to apply the main principles affecting the legal relationship between business organisations and their consumers.........................................................................................................2

P 1.1) Analyse and advice Mr Adam on the legal rules on implied terms relating to the sale of goods and supply of services..........................................................................................................................2

P 1.2) apply the statutory provisions on the transfer of property and possession..............................4

P 1.3) evaluate the statutory provisions on buyer’s and seller’s remedies..........................................5

P 1.4) apply product liability statutory provisions for faulty goods.....................................................5

TASK-2.........................................................................................................................................................6

P2.Be able to apply the legal rules on consumer credit agreements and agency....................................6

P2.1 Differentiate between types of credit agreements which Claire could use to obtain the new car........................................................................................................................................................6

P2.2 Analyse 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.......................................7

P2.3 Analyse the general features of Agency and differentiate between the different types of agent..............................................................................................................................................................8

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position once she becomes an Estate Agent....................................................................................................................9

Task 3..........................................................................................................................................................9

P 3Understand the legal rules relating to monopolies, mergers and anticompetitive practices.............9

P3.1 outline monopolies and anti-competitive practice legislation in the UK.....................................9

P3.2 explain the role of the Competition Commission within the context of monopolies and anti-competitive practices and the UK Office of Fair Trading....................................................................10

P3.3 define dominant positions within the EU common market.......................................................11

Task 4........................................................................................................................................................11

P.4Know the key provisions relating to intellectual property rights......................................................12

P4.1 Identify differing forms of intellectual property........................................................................12

P4.2 Outline the principles relating to the protection of inventions through patent rights and their infringement in a given business scenario.........................................................................................13

P4.3 Describe the principles relating to copyright protection and their infringement in a given business scenario...............................................................................................................................13

P4.4 Compare and contrast the protection of trademarks and business names...............................14

Refrenecs...................................................................................................................................................15

Task1

P1 .Be able to apply the main principles affecting the legal relationship between business organisations and their consumers

P 1.1) Analyse and advice Mr Adam on the legal rules on implied terms relating to the sale of goods and supply of servicesImplied terms: Implied terms are those terms which are used by the parties in their contract.

Parties are free to decide which implied terms they use in their contract. Parties have the duty to

agree with the terms in their agreement. The courts also imply a term in a contract but in limited

situation at common law.(e-lawresources.co.uk, n.d)

The external legal source and sources of implied terms are:

1. Customs

2. Fact

3. Statute

Sale of goods: sale of good is a contract in which ownership of the seller of moveable goods is

transferred for a sum of money to the buyer. For entering in to contract these requirements has to

be fulfilled:

1. There are two parties

2. There must be a good

3. There must be transfer of any property

4. Valid contract

5. Must be consideration (slideshare.net, 2012)

Implied terms are on:

1. Term on Description

2. Terms on Title

3. Terms on Quality

1. Description: Description is defined under section 13 of the sale of good act. The goods must

be in according with the description. The buyer who purchase the goods on internet, or through

catalogue, then ion this case the goods is not seen by the buyer, so it must be in according with

the description as they mentioned. If it is not according to the description then buyer has right to

sue the seller. But if the seller proved that buyer is not relied upon the description then seller is

not liable.

Case: Rowland v Divall [1923] 2 KB 500

2. Title: conditions and warranties are distinguished under section 11 of this act. Section 12 of

this act defines the title. In this seller is under an obligation that he has to sell the goods

according to the title of the goods, if he did not sell the goods according to title then it will be

breach the contract. This section also provides warranty to the buyer that the buyer has the

possession over the good and the good which is delivered to him is in good condition.

Case: Rowland v Divall [1923] 2 KB 500

3. Quality: section 14 deal with the quality of the goods. According to this the quality of the

good must be in goods quality if the quality Is not satisfactory then it leads to breach of contract

and goods is also fit and satisfactory use according to the buyer.

Case: Stevenson v Rogers [1999] 1 All ER 613(lawresources.co.uk, 2015)

As according to the sale of good contract there is contract between the Mr Adam and the Miss

Bianca. But the store not fulfill the satisfactory quality to the Mr.Adam and according to this Mr.

Adam has right to sue the departmental store for the loss he suffer due to the defective goods.

And he has right to get compensation.

P 1.2) apply the statutory provisions on the transfer of property and possessionThere are four section which deals with the transfer of property and possession. These are section

16 to 20.

Section 16: This section says that if the goods are unascertained then the ownership will not pass

for the transfer of the ownership there should be ascertained goods.

There is case Healy V Howlett and Sons 1917 in this ownership is not transferred because from

the 190 boxes only 20 boxes were appropriated and other is already bad.

Section 17: whether it is ascertained goods or the specific property the goods are transferred

according to the intention of the parties.

Section 18: deals with the 5 rules the property would pass when parties not expressly clear.

Section 19: This section deals with the seller right. The seller has right to dispose of the title of

the goods which is supplied and beings sold by the buyer.

Section 20 stated that the risk is also passes with the transfer of ownership of the goods. Risk

include damages, theft etc. At the time of liquidation the goods which are under the possession

of the company is may or may not be belong to the company

These are the provisions related to the transfer of ownership and possession. As according to the

section 20 the risk of damages and theft is transferred to the owner of the goods but in case of

defaulty goods Mr. Adam can file suit against the manufacturer of the company for the loss he

suffer because of their default goods.

P 1.3) evaluate the statutory provisions on buyer’s and seller’s remedies Buyer remedy

Buyer has some remedy which is available when the seller does not perform according to the

conditions which is mentioned in the contract, thus it is breach of contract by the seller. From

this the buyer suffers damages for the protection of the buyer interest law laid down 3 remedy for

the buyer. These are:

1. Rejection: the buyer has right to reject the goods which is not available on terms and

conditions of the contract by the seller. Buyer also has right to reject the good if the goods are

not available on certain time and date. But for the rejection of the goods buyer must has to show

the intention for rejecting the goods.

2. Specific performance: it is an order which is made by the court when the seller breach his

contract, this order is implemented by the party at the time of contract is breached.

3. Damages: buyer also has right to take the damages which is incurred from the breach of

contract by the seller. For claiming the damages then buyer has to show that due to the breach of

contract he suffered damages.

Seller has also remedy on the breach of the contract by the seller in under section 49 and 50 of

this act.

Section 49 deals with the price: The seller has the right to take action against the price of the

goods.it arises when the buyer accept the goods but did not give the price of the product or he

has to pay at certain day and date but he did not give or refuse to pay the price of the goods.

Section 50 deals with the non-acceptance of the goods by the buyer. The seller has right to take

action if the buyer refuse to accept the goods.

P 1.4) apply product liability statutory provisions for faulty goods Liability in tort of negligence: An individual suffer any loss or any injury due to the faulty

goods which is made by the manufacturer then he will sue under tort of negligence. In 1932 there

was a case Donoghue v. Stevenson in which house of lord held that consumer can sue the

manufacturer for the negligence he done. But consumer has to prove that he suffer injury or

damages.

Liability in contract: under the contract when the buyer purchase the good then there is

automatically contractual relation is made between the buyer and seller. And the goods which is

buy by the buyer which faulty then buyer has right to sue the seller for damages he suffer on the

part of the seller. He also entitled with the compensation from the seller.

Liability in Consumer Protection Act 1987 (CPA 1987) - In this buyer claim for the damages

which he suffered by the seller because of their defective good. Court can take various actions to

determining the goods are defective or not. If it is proved then buyer get the compensation. The

time period for claiming the compensation is 3 years after the damages is suffered by the

claimant.

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.Consumer credit act 1974: the consumer credit act 1974 is established for giving the protection

to the consumer. Thus this act is amended by the consumer credit act 2006.

Claire can make use of the consumer credit agreements if he has not enough funds to buy the

new car. Thus for taking the credit Claire has to know that what is consumer credit agreement.

So consumer credit agreement is that agreement in which the consumer can raise the money or

take the loans from the business. The loan is credited to the consumer for a particular period of

time after that they have to return back to the business. Claire has to take the money from

business and monthly interest he has to pay the business, and after the time period of the credit is

over than he has to return money to the business.

These are the different types of credit agreement which can be used by any of them by the Claire.

Hire purchase: Claire uses the hire purchase agreement. In this agreement Claire hires the car

and paid the money in installment. Claire has not own the car until he paid off the all installment

after the last installment the ownership of the car is transferred to the Claire. In this the good is

not transferred to the third party (citizensadvice.org.uk, 2015)

Conditional sale: when the contract is end then the Claire has require purchasing the car. In this

property will be transferred to the third party. It is not more favorable as much as hire purchase.

(Citizens Advice. (2015).

Credit sale: in this the ownership of the car is passing when the credit contract is start. In this

the ownership of car is transferred by the Claire to the third party.

Claire also uses the bank loan for purchasing the car. Bank loan are in the form of :

1. Overdraft facility is available to those customers who have account in the bank. In this

bank allow to overdraw the money from his bank account up to a certain limit. Customers

also have to pay the interest.

2. Claire also used the ordinary loan in this clients get the loan for the specific purpose. And

after the time period is over Clair has to give back the money. But the money is repaid

through separate account.

3. Personal loan: the interest is very expensive in this loan and this loan is given to the non-

customers.

The best credit agreement for the Claire is used the hire purchase and the ordinary loan has be

taken for purchasing the car.

P2.2 Analyse 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.There is termination right which is implemented by the Claire if she has trouble in paying the

debts as required in the contract.

Early settlement is comes under the section 94 to 97.

Sometime the parties in the contract terminated their credit agreement before the time is

lapse.

The agreement is terminated by the debtor and returns the goods when he is not in the

position to carry on the agreement.

The money which is outstanding is paid by the debtor and also returns the good in the

good condition.

The agreement is also terminated by the creditor if there breach of contract or default has

been done by the debtor.

Default notice is also given by the creditor to the debtor if the breach is done by the debtor.

In this the debtor rights are terminated.

The security is enforced.

The contract is terminated by the creditor and also demand for making payment

early.

The possession which is transferred to the debtor is recovered.

P2.3 Analyse the general features of Agency and differentiate between the different types of agent.What is an agency?

Agency: There is existence of the principal and agent relationship. In which agent makes

contract with the third party on behalf of principal.

Features of agency are:

1. Principal and the third party both are eligible for entering in to the contract.

2. It’s save time, resources of the principal.

Different types of agent are in agency are mentioned below:

1. Brokers: Brokers are those agents which deal with the intangible property.

2. Estate Agent: These agents mostly deal with the real property of the behalf of the

owners.

3. Factors: Tangible property

4. Auctioneers: Auctioneers deal with the auction. They auctioned the real and tangible

property.

5. Directors: They are company agent. And partners are the agents of each other.

6. Commercial agents: These are independent contractor. They have also power of sell and

purchase the property.

P2.4 Evaluate the rights and duties of an agent to assist Claire understand her position once she becomes an Estate Agent.If the Claire becomes the estate agent then she has certain right and duties.

Rights of Claire as an estate agent are:

1. If the contract is exist then Claire has certain rights these are:

She has right to get the remuneration.

She has the lien over the property at their disposal.

2. If the contract does not exist then Claire also has the certain rights. These are:

Right for reasonable expenses.

Duties of Claire when she became estate agent are:

1. She has the duty of skill, care and diligence.

2. When the contract is not exist then Claire has duty to perform and obedient his command.

Task 3

P 3Understand the legal rules relating to monopolies, mergers and anticompetitive practices

P3.1 outline monopolies and anti-competitive practice legislation in the UKMonopolies – monopoly is a situation in which there is single producer who produce the goods

and supply in market. The relevant market is depending upon this manufacturer. This industry

has full control over the market. Because of the single supplier the monopoly industry exploits

their consumer, the monopolistic industry discriminate the consumer and also charge the higher

price of the product. If nay firm takes the 25% control over the market is known as scale

monopolies and complex monopolies.

The anti-competitive practices are prohibited by the competition act 1988. This act amended the

various laws and also introduced the provision of the prohibition of anti- competitive practice

which distorts competition in the UK. In UK the competition is regulated by the competition act

1988.

The competition act introduces the two new prohibitions in this act.

1. Prohibited the anti- competitive agreements which are come under the chapter- 1 of the CA

98.

2. Second is the abuse of dominant position which is deal under the chapter-2 Of CA 98.

1. Chapter-1 deals with the anti-competitive agreement- No person or no individual cannot

enter into an agreement which deals with the anti –competitive practice.

2. Chapter- 2 deals the abuse of dominant position- In this no individual abuse his dominant

position by imposing any unfair trade practices or nay other conditions which the abuse.

P3.2 explain the role of the Competition Commission within the context of monopolies and anti-competitive practices and the UK Office of Fair TradingThe competition act is regulated by the competition commission in UK. But now from the April

2014 it is now become the competition and markets authority. It deals with the anti- competitive

practices and also doing the most of the function of OFT. Competition commission deals with

the issue which is relating to the mergers, market investigations. This authority heard the appeal

which the decision is given by the other regulatory authority. The competition commission also

includes the regulatory bodies. There is chairman, chief executive and 4 board members who are

comprises in the office of the fair trading. There are various sectors provide specific regulatory

authorities with similar powers. The authorities have the right to impose the fine son the business

who are not follow the legislation and also suspected that they make the breach. ( Coleman M

and Grenfell M)

These bodies have the concurrent powers in their respective area:

Railway office is deals with the railways.

Communication office is deals with the communication

The authority of water and sewage deal with the water and sewage.

Gas and electricity authority deals with the gas and electricity.

Air traffic service is deal with the civil aviation authority.

P3.3 define dominant positions within the EU common marketDominant positions: dominant position is that in which any firm have full control over the

market. For taking the dominant position the firms have control of 50% share in the relevant

market. The dominant firm abuses their positions by exploiting their consumer, by making price

discrimination, by raising the price. In Uk chapter 2 is deals with the abuse of dominant

positions. The dominant firms create barrier to the new entry of the market. The Uk competition

law stated that it is an illegal if any firm abuse their dominant position. According to these

instruments we determine that there is abuse of dominant position. These are:

1. Price discrimination

2. Predatory pricing

3. Tying and bundling agreement

According to EU – any firm who have the dominant position and he abuse his position then it is

prohibited because it affect the market trade between the member states.

Consider the applications of EU Exemption to potentially anti-competitive practices.

1. If any dominant firms satisfy that the benefit will be share between the consumers by the

company without any discrimination.

2. If it also satisfy that the goods and services which are produced is for the development of the

economic.

3. It also satisfies that and give justification that abuse is in certain circumstances is necessary.

Task 4

P.4Know the key provisions relating to intellectual property rights

P4.1 Identify differing forms of intellectual propertyIntellectual property – intellectual property deals with the tangible property. It concerned with

the four main categories patent, copyright, design, trademark etc. in Uk intellectual property act

2014 which deals with these property. Part 1 of the act is deal with the design, part 2 deal with

the patent and part 3 and 4 deals with the miscellaneous. The intangible property in Uk is

regulated by the EU and international law. (Davis J, 2015)

1. Patent: patent is given for the invention not for any discovery. In Uk it is generally regulated

by the patent Act 1977. Patentee exclusive right is given by the legislation for a period of 20

years. No person is allowed to make, use, sell or display the invention without the permission of

the patentee. For taking this exclusive right the patentee has to register their invention in the

patent office. Any person who want to use, sell the invention he have to take the permission from

the patentee. If he/ she make use of the invention then they infringed the right of the copyright

owner. The process for registering the patent is come under the section of 14 to 19.

2. Copyright: copyright is an exclusive right which is given by the government to an author.

Copyright is given for the specific period of time. It is an automatic international right. In Uk the

copyright act is regulated by the copyright, design and patent Act 1988 (CDPA) part I and II.

Copyright is given for the period of lifetime of the author and for 70 years.

3. Design: Design right is also regulated by the copyright, design and patent Act 1988. The

design right is given for the original work of design for 3d functional items. The right is given

for 15 years and after the time period is over the right can be renewed.

4. Trademark: trademark is a mark, name, symbol, design, slogan or any other which

distinguish the product of one person form the other. In Uk trademark act is regulated by the

trademark Act 1994. The trademark should be one which distinguishes the goods and service in

verbal or non-verbal form.

P4.2 Outline the principles relating to the protection of inventions through patent rights and their infringement in a given business scenarioPatent is related to the industrial process. Patent is given for the invention not for the mere

discovery. Patentee gets a right over his patent. Patent protect the unauthorized use of the

invention by giving the right to the patentee. In Uk patent Act is regulated by the Patent act 1977.

The legislation gives the exclusive right to the inventor for using, selling, and manufacture of the

invention. Patent right is given to the inventor for a period of 20 years. Patent is also given to the

product or process. For granting the patent exclusive right the inventor has to register the

invention. The patent right is given for those invention who clear the three test. These are:

1. Novelty

2. Inventive step

3. Industrial use

The patentee has exclusive right over the invention. Any person cannot use; sell the invention

without taking the permission of the inventor. If any person makes use, sell the invention without

the permission of the patentee then he make infringement of the patentee right of the patentee.

P4.3 Describe the principles relating to copyright protection and their infringement in a given business scenarioCopyright act of the Uk is regulated by the copyright, design, patent act 1988. Copyright is an

exclusive right which is given to the author for the specific period of time. The royal assent is

giving to the copyright, design, patent act 1988 on 15 November 1988. It is an act of the

parliament of United Kingdom. Copyright is given by the government to the author for the

original work. Work includes artistic, cinematograph work, literary, dramatic, musical work,

compute database, and sound recording. The copyright has the right over the work and he has

also right to decide the destiny of the work. Any person cannot make, use, sell to the public

without the permission of the copyright owner if any person make use, sell to the public without

the permission then it leads to the copyright infringement. If the right of the owner is infringed

then there are two remedies are available to the copyright owner.

1. Civil remedy

2. Criminal remedy

If any person sell and hire the copies of the copyright work to the public.

The copies which are infringed is imported( not for personal use)

In the course of business the infringing copies are shown or distributed in the public.

The copies are infringed and large no. of copies are sell and distributed in the public at

large. And from this it adversely affect on the market trade of the copyright owner.

Penalties when any person make use sell the copyright work. These are mentions below:

1. infringed the copyright work then he/ she have to pay the fine of £5,000 and also liable for the

imprisonment for at least six months

2. No limit of fine and 10 year’s imprisonment in the crown court.

P4.4 Compare and contrast the protection of trademarks and business names.1. Trademark: Trademark is a mark which distinguishes the goods and service of one

person from the other.

Business names: business name is name of the business which is given for the operation

of the business.

2. Trademark: The time period in trademark is given for the 10 years this can be renewed

by the owner of the mark after expiration or after every 5 to 6 years.

Business name: in business name the time period is unlimited period.

3. Trademark: Trademark act is regulated by the Trademark act 1994.

Business names: business name is regulated by the business name act 1985.

4. Trademark: it is proprietary right which is given for using in trading.

Business name: In this proprietary right is not given. .( Truex, L. (2015)

Refrenecs Citizensadvice.org.uk, (2015). Hire purchase agreements - buying on credit - Citizens

Advice. [online] Available at: https://www.citizensadvice.org.uk/consumer/different-

ways-of-buying/buying-goods-and-services-on-credit-or-by-debit-card/ways-you-can-

buy-on-credit/hire-purchase-agreements-buying-on-credit/ [Accessed 12 Jun. 2015].

Coleman M and Grenfell M — The Competition Act 1998: Law and Practice (Oxford

University)

Citizens Advice. (2015). Conditional sale agreements - buying on credit. Retrieved 5 5,

2015, from https://www.citizensadvice.org.uk/consumer/different-ways-of-buying/

buying-goods-and-services-on-credit-or-by-debit-card/ways-you-can-buy-on-credit/

conditional-sale-agreements-buying-on-credit/

Davis J — Butterworths Core Text: Intellectual Property Law (Butterworth)

E-lawresources.co.uk, (2015). Terms implied by common law. [online] Available at:

http://e-lawresources.co.uk/Terms-implied-by-common-law.php [Accessed 12 Jun.

2015].

slideshare.net, (2015). Sale of goods act, 1930. [online] Available at:

http://www.slideshare.net/surtomtomar/sale-of-goods-act-1930-15088600 [Accessed 12

Jun. 2015]

Truex, L. (2015). What Is the Difference Between a Brand Name & a Trade Mark?

Retrieved 5 5, 2015, from http://smallbusiness.chron.com/difference-between-brand-

name-trade-mark-3580.html