- Show an application of principles affecting the legal relationship between business organisation and consumers.
- Application of legal rules on consumer credit agreements and agency.
- Understanding of legal rules which are applicable to scenarios of monopoly, mergers and anti-competitive pricing.
- Determination of legal provision which are applicable to intellectual property.
With respect to define business law it is essential to understand what does it mean? It is also known as commercial law. It is the factor of law that deals with duties, liabilities, and legal authorities of parties involved in any kid of activity of a business transaction. It deals with legal aspects like laws of agents, principals of agents, laws of guarantee and insurance and laws regarding to the partnership. It includes both act such as private act and public act. In this report there has been given advice to Ben on the regulations and rules in term of sale of goods and services. Here is also described the statutory provisions on the transferring of possession to the third party. There are different statutory provisions which related to the different terms. One other aspect regarding to the remedies given to the buyer and seller in goods and services supplying and selling. It also considers rules and regulations regarding to the faulty products. Furthermore, there are describing different types of agents and different types of agreements as well. General features and characteristics of agents are also explained in this report to easily understood the term of agent and importance of its in agency(Beatty, Samuelson and Abril, 2018.).
1.1 Advice the legal rules associate to the selling and supplying of goods and services to Ben
The terms understood for the selling and supplying of goods and services are :
- Section 12: it refers the conditions in which vendor has an authority to exchange the commodity and goods.
- Section 13: it refers that products and commodities has to be identical as explained or described. There has been no changes in the brand, colour, design and material of the product.
- Section 14 (2): it refers to product's quality. The products must be satisfactory quality. Because the main objective of any company is to satisfy the customer's need and preferences by giving them the best quality. If a product found faulty within 6 months then it will be treated like it is faulty when it is purchased. Then dealer would be punishable or liable for the break the written agreement with the customer.
- Section 14 (3): it refers to suitability for aim. It means there has to be ensure about the product which is to be sold must be fit according to the purpose for which it is made(Persadie, And Ramlogan, 2015.).
The seller has to be repaired or replace the product if it has been found faulty.
1.2 Legal rules and regulations on the transfer of possession or property to Ben
Rules and regulations regarding to the changes of possession and property comes under the act of sale of commodity and services 1979 which granted under section 5 and the name is title and passing of property. It includes 5.1, 5.2. it also includes S16, S17, S18, S19 AND S20. SECTION 5.1 include the seller's title. 5.2 refers transfer of property between buyer and seller. It describes as follows :
- if the products are conveyed subject to any statement of head or property section of the vendor then the vendor might have a great head to the goods if the purchaser becomes failure.
- The authority to sue a third party for amends to, or loss may depends on the who has the possession of goods at that particular time.
Section 16 refers that goods must be ascertained. Section 17 refers that property will be passed when the parties wish to pass. Section 18 refers the rules for determine goal. Section 19 refers to right of disposal and the last section 20 refers to transfer of risk.
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1.3 Statutory provisions on remedies in sale of goods between buyers and sellers
Remedies to the buyer and to the seller are different. There are different sections under act of law which described remedies under different causes. Remedies of the buyer comes under section 48B (1), section 48C (1) and under section 48C (2). remedies of the seller comes under section 38 and section 39. Section 39 refers the rights of unpaid seller. This subdivision furnishes that the non-paying vendor has a security interest on the commodity and has authorization to carry the products for the value when still has the possession of products. Vendor has an authority to stop the goods in transit if buyer has become failure. Section 41 to 43 refers the authority against the commodity is lien. Section 44 to 46 refers to stoppage the goods. Section 48 refers to re-sale of the products under sales act. While section 49 and 50 comes under rights against the buyer. 49 refers to the price of commodity and 50 is damages of the goods(Persadie, And Ramlogan, 2015.). .
1.4 Investigation of commodity obligation judicial regulations and legal acts for faulty goods
Commodity obligation is explained under the act of consumer protection 1987. it explains when the good is considered as defective ? Product or goods considered as defective in two cases such as :
- in first case when a product is not according to the situations explained in contract law
- second, when a commodity will be dangerous for the health of a consumer.
In present case, vendor is liable to fixing or renew the products by his own expenditures and also pay the medical expenses to Ben because of the accident, family members are injured(Beatty, Samuelson and Abril, 2018.). .
2.1 Evaluate the variation between kinds of credit agreements
Credit agreement described the activity which is either in form of credit transaction, credit guarantee, credit facility or combination from the above. Credit agreements may be in form of bank loan, hire purchase and credit sales. Mainly it can be categorized into following parts :
- small agreements
- intermediate agreements
- large agreements
small agreements generally below rupees 15000. these are paid through micro loans. Intermediate agreements are generally between 15000 or 250000. it can be paid through personal loan or credit cards. Large agreements are above 250000 rupees.
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