As a trainee legal advice Bureau, the supervisor has handed the Ben’s case to form a report which will include the legal rules which are applicable and identifying the likelihood of ben succeeding.
- Showing an understanding on the legal rules relating to sale of goods.
- Application of legal rules on consumer credit agreements and agency.
- Show an understanding of the legal rules which are applicable to scenarios of monopoly, mergers and anti-competitive practices.
- Demonstration of knowledge on key aspects of intellectual property
Business laws are universal method of performing activities related to trade and commerce. Laws provides a guideline to the companies for performing business in the market. It is a subsidiary part of civil laws. Every organisation in the business sector has to comply with these laws. Generally, it is comprise of Laws related to Contract, Employment, Sale of Goods, Consumer, Companies law etc. Every statutes has its own significance and regulates the different sections of business. These laws are originated from historical period. There were many ways in which trade was being carried such as barter system. It has its own characteristics but certainly, with time the system of trade changes and evolved with new methods. With these revolutions the laws were also changed accordingly and present statutes are the result of it. In the given case Ben wants to buy a new car as the old one has stopped functioning. He decided to buy a new model of Passat 1.8 £ 10000 only. A seller sold him that car, initially it was functioning appropriately but when he was driving it up hill the car stopped and got freeze. After investigating it was revealed that the car was driven as taxi and the real owner of the car was the taxi driver. This report is about a complete analysis on the Sale of Goods and Consumers rights. Also it provides various solution to the mentioned problem with proper cases and references.
TASK 1 Legal laws that are associated with transaction of product and service
Business is incomplete without the Sale of Goods. There are many ways in which sale of goods are carried out. Moreover, the practice of delivery is regulated by some of the statutes that are enforced by the state such as, Sale of Goods Act 1979 and Consumer Rights Act 2015. The purpose of these statutes is to maintain a proper way to regulate the delivery of products. As the demands of consumers has increased the area of customer service has been taken seriously by the governing bodies and business organisation. In order to provide a satisfactory service to the customer these laws are obligation over the organisations. (Alix Adams)
According to the section 14 (2) of the Sale of Goods Act there is an implied term which says that a product should be of satisfactory nature. Which means that the good purchased should be of same quality while it is delivered and shall achieve a basic criteria of satisfaction. It is the responsibility of the seller to deliver it with due care an delinquency. But, there is an implied duty of the consumer to check the goods before purchasing it and if it has been quoted that goods are of undesirable quality then consumer shall be liable for any loss incurred to him, as per section 9(4) of the Act. Moreover if damage to the product is caused due to negligence of the customer then he shall be responsible for such act and also he shall be not entitle to attain immunities as per section 13 (1) of the Unfair Contract Terms Act 1997.
According to the given case Ben has purchased a second hand car. The condition of it was well until he suffers the incompetency of the vehicle while driving it up hill. Later he investigated the actual reason of such malfunctioning. It was discovered that the car was driven by as a taxi whose was the real owner of that car. Moreover, it came to his knowledge that the real reason of its non-functioning was a speed block done by the last owner of the vehicle, at 18,500 miles. While purchasing the car Ben signed the transfer documents and according to clause 9, there was an exclusion clause. Such clause defines an obligation on the purchaser to check the vehicle properly and also whatever information provided to him, seller is not responsible at all.
As we look upon the merits of this case the seller is liable to disclose all the information related to a product. On failing such, he shall be responsible for the damages.
1.2: Statutory Provision regarding the transfer of possession
A sale is incomplete without the transfer of tittle to the purchaser. It is must for completion of trade to transfer possession of goods to the buyer. It is executed by the process of making a contract between a seller and buyer. Contract includes all the statutory duties done by both the parties. Also it is a proof of transfer of possession between the parties. A bailment is when the goods are transferred for a limited period. The contact of transfer is same as of a general contract.(Bagley, C.E., 2010)
The transfer of tittle is essential for completing a trade. In the given scenario, car was sell to Ben so the tittle or possession must be transferred to him also. Main problem arises when it was discovered that the real owner is someone else, the taxi driver. This information was not given to the purchaser, moreover reason of the non-functioning of car was also not being told to him.
The tittle of possession is constituted with the owner until he gave his rights of selling his goods to the seller or he challenges the authority of seller for selling his property, as mentioned under section 21 sub-clause 1 of Sale of Goods Act 1893. According to the given case Ben has not been told about the real ownership of the vehicle, so for now possession has been transferred to him until the owner of car does not challenges the capacity of seller of selling it.
1.3 Remedies provided to buyers and sellers according to various statutes
When a good is delivered it should be of the same quality which has been purchased by the buyer. Also there are certain liabilities of both seller and buyer attached with the sell of products. These duties are mentioned in the Sale of Goods Act 1979. According to the provision 49 of this Act a seller has right to file a suit against the buyer for refusing, delivery of good. But with a condition that it is of satisfactory condition. Buyer is liable for the remedies cause to the seller due to the non payment within the said time. As per section 50 of this Act a buyer can be sued by the seller for the non acceptance of the goods which was delivered to him according to sale contract. (Bodie, Z., Kane, A. and Marcus, A.J., 2014)
The Sales and Goods Act also provides immune to a seller for the revocation of the goods and lien it when the purchaser breaches contract of sale. Moreover he can stop those goods which are in transit and can resale when a buyer is failed to give him an appropriate response.