The Office Of Fair Trading
The assignment describes various kinds of credit agreements with the help of examples. Along with this definition of agency is given supported with the different kinds of methods used for creation of agency. Further it consists of rights and duties of an agent. Lastly an attempt will be made to explain the intellectual property right and describe its various kinds and consequences of its infringement.
1. Explain, using an example for each, the difference between a d-c (debtor-creditor) agreement and a d-c-s (debtor-creditor-supplier) agreement.
CONSUMER CREDIT ACT 1974:
The given below areas are been covered under this act:
- The used types and contents in credit agreements
- The procedure used for the analysis of “annual percentage rate (APR)
- The settlement made early or methods used for default events or termination events.
- “credit advertising”
- A form of extra protection is given in section 75 for the goods costing between £100 to £30,000 where payment is made by credit card. (Regulation Consumer Credit Act, 2015)
These kinds of agreements are covered under the “Consumer Credit Act 1974”. It includes:
- Here an agreement is made to create a finance transaction with the debtor in order to provide him credit restricted with its usage and supplier excluding the dealings made with the creditor and supplier. g. when a direct payment of loan is made by creditor to the dealer in order to supply it to the debtor.
- When a debtor is refinanced with a credit along with a restricted use of credit to satisfy the present indebtedness by creditor or other person.
- When an agreement is made on the basis of credit’s unrestricted-use, it simply means when the credit is given without any kind of arrangements made between creditor and supplier specifying any dealing between the debtor and supplier. g. a direct loan to debtor without specifying the purpose of credit given. (Oxford Index, 2014)
The agreements like this are been covered under “Consumer Credit Act 1974”. Following issues are included:
- It depends upon the will that whether the restriction over the usage is to be included in the agreement or not, in order to make a finance transaction to the debtor by the creditor. g. when the goods are simply purchased on credit.
- The agreements forming a finance transaction for debtor in order to give credit by the supplier along with a restriction over its use and involving the arrangements which were made between the supplier and creditor. g. a car loan sponsored by the company.
- When a credit is given by creditor without specifying the purpose of the usage under the influence of pre-planned preparation made between the creditor and supplier with a motive to raise funds so that a transaction could occur between supplier and debtor. (Oxford Index, 2014)
2. Shaun has bought a Motor bike on a monthly payment hire purchase agreement from “Zoom Ltd” and has fallen behind on the payments. Advise Shaun as to what the likely course of action will be from “Zoom Ltd” and what he must do to avoid legal action.
“Default on part of debtor”:
In a situation where the payment on the part of debtor is not made on time and debtor is considered to be in default then an entitlement for repossession can be claimed by the creditor. But this remedy is restricted when the debtor has paid one-third or more of the credit amount. The agreements like “conditional sale or regulated hire purchase” are considered for this situation.
Repossession under a hire-purchase agreement (credit sale):
The provision as section 90 of Consumer Credit Act 1974 states the repossession of goods. There could be repossession done of the goods purchased under “hire-purchase agreement” by the creditor, when the debtor makes a default on his part by not paying the credit amount on time.
Process of repossession:
On part of creditor it is a duty in order to send the prior notice to the debtor notifying him/her regarding the repossession to be made. The notice should state:
- The notice should specify the default made by the debtor in regard with the payment or any other breach committed in regard with the contract.
- There should be a notice period of 15 days (Law Access, 2011)
After considering the above provisions, in the given situation it is considered that with the default of payment made by Shaun, “Zoom Ltd” gets the right of repossession of the motor bike. For the avoidance of legal action Shaun should repay the amount liable.
3. Identify three different ways in which agency can be formed.
“CREATION OF AGENCY”
Given below are various modes used for creation of agency:
- “Agency by Express agreement”:
With the help of this method various agency contracts are been formed. This formation can be done either orally or in a document form or with the help of power of attorney.
- “Agency by operation of law”:
Here in this type the formation of agency can be noticed with the help of high calibre of law.
- “Agency by Ratification”:
The literal meaning of ratification is concluded out to be an adoption made of the activity performed. Immediately a relationship of principal-agent is noticed after ratification. N agent will be the person who performs the activity whereas the person ratifying will be treated as a principal.
- “Agency by implied authority”:
Here an agency is created when a relationship is noticed between the parties directly or with the help of the conduct of parties. (Laws of Business, 2012)
Right of Agent:
- Claim for remuneration
- Retaining right
- Indemnity right
- Right to stop the goods while transportation
- “Right to lien”
Duties of Agent:
- Reputation should not be used for personal profits.
- Agent is bound to follow the restrictions of principal.
- Usage of company name is prohibited for personal use.
- Records should be made of all the transactions.
- In a situation of principal’s death or insolvency, etc. the agent should protect the related property. (USLegal, 2014).
“MONOPOLIES AND MERGERS LEGISLATION”
- Anti-Competitive Practices: Monopoly is said to be seen in the existing market in UK when any particular business is seen to be covering the 25% of the market. Due to this monopoly the business earns a lot of market power.
This is treated as a biggest problem as here the business with monopoly creates hurdles for the business of small existence in the market.
- Restrictive Practices: Given below are the examples of restricted practices:
- Forcefully bound the retailers for refusing the competitors in regard to stock there goods.
- Forcefully creates pressure on suppliers not to supply them the goods.
- UK Competition Legislation:
- “Monopolies and Restrictive Practices (inquiry and control) Act 1948 and Monopolies and Mergers Act 1965”
- “Restrictive Trade Practices Act 1956 (goods) and Restrictive Practices Act 1976 (services)”
- “Fair Trading Act 1973”
- “Competitive Act 1980”
- “Telecommunications Act 1984”
- “Competition Act 1998” (External enviornment – regulation of competition, n.d.)
“The Office of Fair Trading”
The interest of consumers in UK are been granted with protection by “The Office of Fair Trading”. With the help of this an assurance is given to the consumers making sure that there is competitive and fair existence of business in the market.
The basic work of this office is to maintain favourable market conditions for the consumers. The achievement of this motive is possible only when there is “open, fair and vigorous competition in the market keeping in mind the consumer customs. (European Consumer Centre for Services, 2014)
For the UK market there is a merger forms between the framed regulations by the government and power of monopoly. There is a replacement made by this commission i.e. monopolies are been replaced by the “Mergers Commission”. The Competition Commission is authorised to handle the “Department of Recommendation” whereas “The Office of Fair Trade” holds the responsibility of “Department of Enforcement”. This is all because of the decided bifurcation made. (Economic.help, n.d.)
- “Article 82 of the European Union Treaty”: This article provides a kind of restriction over the abuse made by the business having a dominant position in the market. These kinds of abuse should not be allowed and declared to be mismatched for the existing common market influencing the prevailing trade among “Member States”.
- “Market of Dominance”: It is considered to be the position of “economic strength” in relation with the responsibility to eradicate the standard prevaling competition in the market. This grant them the power to act according to their wish with the competitors or consumers.
- “Abuse of Dominant position”: The dominant position in the market influence the existing competition spirit. Because of this there is a kind a check been made over the growth of the existing competition in accordance with the dominant business.
- “European Law”: The principle of the europen law is not to set punishment for the dominant position rather their motive is to eradicate the abuse made due to the abuse made in context with the dominant position. (Vatiero, 2005)
A kind of prohibition is been imposed over the affecting practices and agreements concerned with the prevailing trade to be held between “EU member states” with the imposition of “Article 101 of Treaty on the Functioning of European Union”. Along with this an attempt is made for the prevention to be made over the existing competition in the “internal market”. By fulfilling the given below conditions an exemption can be set up for Article 101:
- There should be a share given to the consumers arising out of the gained benefits.
- The agreements dealing with the promotion of economical or technical progress or concerned with the improvisation for the distribution or production process of goods.
- A concern should be shown regarding the agreements dealing with the motive of an elimination to be made in regard with the competition because the concern is connected with the product as an substantial part.
New Block Exemption Regulation:
Article 101 with the help of “New Block Exemption Regulation” imposes a kind of exemption over those categories of agreement which are vertical and even on those practices which are said to be concerted. Vertical agreements are those agreements which delas as a chain syestem in order to make “supply, distribution and franchise agreements”, so that these agreements should be modeled in accordance with the limitations imposed by “Block Exemption Regulation”.
Safe Harbour Rules:
In order to enjoy the benefit of “Block Exemption Regulation”, it is necessary for every supplier that its market share should not be more than 30 percent. This regulation for the market share is considered as “Safe Harbour” in accordance to which imposition of exemption is possible. (Lochlainn & Hickey, 2010).
1. Explain what intellectual property may have been infringed.
These properties are considered as intangible property which is resulted from the creativity of mind. For these property the right is provided in order to protect them. (Loh, 2013)
Types of Intellectual Property:
- Copyright: This right has been created to protect the literary rights which are given to the creator in order to secure their work of origionality for a specified period of time. The creativity should make use of some labour, skill or judgement.
- Patent: This right is authorised by the government for an invention made by any person. This right creates an exclusion for other than the inventor to make use of the invention. This right is given for around 18 months to the inventor so that the invention could not be used, sold or import by any other person.
- Registered Designs: This right secure the designs framed for the product so that their design could not be used by others and similarity is avoided. It includes the appearance shape, pattern, packaging design etc.
- Trademarks: Trademarks are considered as the symbol used for the business. These designs includes company logos, product names or jingles used for the advertisement of the products. This trademark is said to registered for a limited period of time whereas the business name can be registered for lifetime. (business and IP centre, (n.d.))
Infringement of patent:
An infringement of patent is said to be made when any person other than the inventor make use of the invention in way of selling it or manufacturing the smae without any authority or importing it. In case an infringement is made then a legal action lies by the patent holder over the person making the infringement. In accordance with this legal action injunction or delivery or damages can be claimed as the situation suggests. (IPO, (N.D.))
Other techniques and skills involved in business development
- Assessment of marketing opportunities and target markets.
- Intelligence gathering on customers and competitors
- generating leads for possible sales
- advising on, drafting and enforcing sales policies and processes for Business Development
- Follow-up sales activity
- Formal proposal or presentation management and writing
- Pitch and presentation rehearsals
- Business model design etc.
Infringement of copyright:
An infringement of copyright can be made if any person replicate the thing with the help of typing the same or scanning it or get it stored in any electronic form without any authority. It is necessary for claiming the infringement to overcheck whether it falls under the exceptions or not. If it is proved that an infringement is committed then the person holding copyright can claim damages or injunction and legal action lies over the person infringing. (CARET, 2005)
Business name and trademarks are two different thing for the purpose of registration. Companies name is the subject matter of companies house where as trademark is registered with trademark offices. Business name has no time period but trademarks get registered for fix time period. A name which may be registered as company name may not be registered a trademark (Gov.UK, 2014)
Copyright: copyright works can be physically owned and they are protected under copyright too but copyright rights are intangible rights. They are regulated via ‘Copyright, design and Patent Act, 1988’ (CLA, 2009)
Patent: patent rights are granted to protect the process and inventions, machines, products and parts of any of them which are novel. For a patent a invention must have novelty. .
5. For the types of IP you gave in (4) give an example of each and explain what protection is given, and the duration of this protection.
Copyrights law protects- original dramatic work such as dance. Original musical works including musical notes, which are original, artistic work, sound recordings, broadcasts and films and typographical arrangements of editions which are published.
Duration of copyright:
Literary, musical, dramatic and artistic works are protected for life of author plus 70 years ‘from the end of the calendar year in which author dies’.
Typographical arrangements are protected for 25 years from ‘end of calendar year. (CLA, 2009)
Patent: patents protect novel processes and inventions. .
Conditiond to be fulfilled for grant of patents-
The invention has to be new and must deviod of modifications which are obvious or mere improvement in already exisiting thing (Gov.UK, 2015)
The duration given for patent right is 20 years which begins from date on which application for patent is made.
Varied credit agreements and agency and its rights and duties are discussed in the essay. Intellectual property rights and way they are protected are also elaborated. The essay allows reader to have easy and good understating of the concepts dealt with in essay.