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Type: Case Study Downloads:146 Pages: 3 Words: 4000


Commercial law or business law is analysed as the body of law that usually made for controlling and governing business. Parties are legally bound to follow obligation of business law which is comprised to the provisions of various act such as sales of goods act, competition act and Monopoly act (DAILY, KIEFF and WILMARTH, 2014). Present reports is based on analysis of case of Mr. BEN who had purchased a second hand car and found problems after five days but seller consolidated and denied taking the car back by pointing out execution clause which was also signed by BEN. This study will provide understand about legal rules of implied terms for sales and supply of service along with the product liability legislations and statutory provisions for faulty goods. In addition, it will also provide understanding about intellectual property rights related to business deals. Remedies for buyers and seller in contract of sale has been evaluated. Further, major principles which influence the lawful coordination between organizations and their target market are also discussed. At last, report will cover the analysis of main provisions related to name of business and its trademark with appropriate example.

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Task 1

1.1 Suggestions to Ben on legislation related to implied terms and conditions.

The present scenario reflects that BEN desires to buy car new car on the basis of advertisement which is referred by the car dealer's Magazines. Advertisement has provided detailed description about the car that BEN selected and it was second had car. At the time, BEN went to see the car, dealer said the car was not there in room. Further, for testing the car he would have to pay GBP 150 as token amount. BEN made payment and after arrival of car he took a test drive and found that car was in good condition, After test drive, he immediately decided to purchase and made the whole payment. Next day car was delivered at Ben's home after further washing and servicing. In contrast, after five days of delivery of car, when buyer was taking his family on trip, he discovered that whenever the car goes uphill its engine would slow down and it was heating up as well as demanded regular cool down for restart. Buyer got very disappointed and decided to return the car to seller back, where he got information that car possess two owner and second owners has used it as taxi cab.

Seller had refused to take it back by point out the execution clause 9 within terms and condition associated with the sale.

As per case discussion, it was analysed that there are some legal obligations under sale of goods act 1979 which both buyer and seller needs to considered while making sale or purchase of car (Folsom and, 2012). Implies terms and regulation are presented within Section12 to 15 of this act which are mentioned below:

Section 12 : According to this provision, seller while selling goods is required to have ownership or possession of product in order to transfer the rights associated with ownership.

Section 13 : As per this section, products which are sold by seller should be as the way they have been communicated and described to buyer.

Section 14 : This provide understanding that goods sold by buyers required to be of satisfactory quality (Beatty and Samuelson, 2012). Moreover, good which are identified as faulty within six months of the purchase are considered as being faulty from the day of purchase and trader would be considered to have breached the contract with the consumer.

Section 14 : In states that, Goods are required to be as per the intent for which it was purchased by buyer.

Section 15 : In this, the quality of goods within utilization was not actually portrayed as the area for driving was not the same as compared with actual situations.

In present case, Car was heating up while it goes uphill and slow down with five days of purchase therefore it can be implied that was not appropriate from buying date and dealer needs to provide amount of damages caused to BEN.

The test drive of car does not present the actual outcome (Cohn, Fehr and Maréchal, 2014). Information described by Seller was false because previously the car was owned by two owners but seller described it has second hand car. Moreover, organization also aims to decreasing the liability of enterprise by the introduction of execution clause. Further, execution clause have not imply in above case scenario because it is contradicting directly with terms and conditions implied in Sales of goods act 1979. Therefore, BEN is entitled for losses suffered by him after purchasing car.

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