BUSINESS LAW ASSIGNMENT

Q1 : Please explain the different rights of consumers with special emphasis on the rights
introduced under the Consumer Protection Act, 2019.

Answer :

Consumer rights are fundamental protections that ensure fair and ethical practices in the
marketplace and safeguard consumers from exploitation. In India, consumer rights are
recognized and protected under various laws, with the Consumer Protection Act, 2019 being a
significant milestone in this regard. Let's explore the different rights of consumers, with a special
emphasis on the rights introduced by the Consumer Protection Act, 2019.

Right to Safety:
Consumers have the right to be protected against goods and services that are hazardous to
their health and safety. The Consumer Protection Act, 2019, emphasizes the need for products
and services to comply with safety standards and mandates manufacturers, sellers, and service
providers to ensure that their offerings do not pose any risk to consumers.

Right to Information:
Consumers have the right to be informed about the quality, quantity, price, ingredients, and
other essential aspects of products and services. The Consumer Protection Act, 2019,
emphasizes transparent and accurate information disclosure to enable consumers to make
informed choices.

Right to Choose:
Consumers have the right to choose from a variety of products and services at competitive
prices. The Consumer Protection Act, 2019, aims to prevent anti-competitive practices and
unfair trade practices that restrict consumer choices.

Right to be Heard:
Consumers have the right to be heard and have their grievances addressed. The Consumer
Protection Act, 2019, provides mechanisms for consumers to file complaints and seek redressal
for unfair trade practices or deficient services.

Right to Seek Redressal:

The Consumer Protection Act, 2019, introduces several mechanisms for consumers to seek
redressal for grievances, including Consumer Dispute Redressal Commissions at the district,
state, and national levels. Consumers can approach these commissions to seek compensation
or resolution of disputes.

Right to Consumer Education:

Consumers have the right to be educated about their rights and responsibilities. The Consumer
Protection Act, 2019, emphasizes the importance of consumer awareness and education to
empower consumers to make informed decisions.

Right to Fair and Reasonable Terms:

Consumers have the right to fair and reasonable terms in contracts with businesses. The
Consumer Protection Act, 2019, prohibits unfair contract terms that are one-sided and
detrimental to consumers.

Right to Privacy and Data Protection:

The Consumer Protection Act, 2019, recognizes the right to privacy and data protection for
consumers. Businesses are required to handle consumer data responsibly and obtain consent
for data collection and usage.

Right to Product Liability:

Consumers have the right to seek compensation for any harm caused by defective products.
The Consumer Protection Act, 2019, imposes strict liability on manufacturers and sellers for
defective products that cause harm to consumers.

Right to Speedy Resolution:

The Consumer Protection Act, 2019, aims to provide speedy resolution of consumer disputes. It
sets timelines for the disposal of cases and encourages the use of alternative dispute resolution
mechanisms to expedite the resolution process.

Right to Online Consumer Protection:

The Consumer Protection Act, 2019, extends consumer protection to online transactions and
e-commerce. It addresses issues such as counterfeit products, misleading advertisements, and
protection of consumer data in online transactions.

In conclusion, consumer rights are crucial for protecting consumers from unfair practices and
ensuring a fair and transparent marketplace. The Consumer Protection Act, 2019, strengthens
these rights by introducing mechanisms for grievance redressal, emphasizing consumer
education, and extending protection to online consumers. With these rights in place, consumers
are empowered to make informed decisions and seek redressal in case of any grievances,
fostering a more equitable and consumer-friendly business environment in India.

Question 2 : Please explain any two (2) types of intellectual property rights and provide an
example of each of the intellectual property rights. Kindly note that the examples should be real
life cases.

Answer :

Intellectual property rights (IPRs) are legal protections granted to individuals or organizations for

their creative and innovative works. They safeguard the rights of creators and encourage them
to continue producing new ideas and inventions. Two common types of intellectual property

rights are patents and copyrights. Let's explore each of them and provide real-life examples:

● Patents: A patent is an exclusive right granted to an inventor or an assignee for a new

and useful invention. It allows the patent holder to prevent others from making, using,
selling, or importing the patented invention without their permission for a specific period,
usually 20 years from the filing date. Patents cover a wide range of inventions, including
processes, products, and methods.

Example of Patent: The iPhone

One of the most iconic examples of a patented invention is the iPhone, developed by

Apple Inc. The original iPhone, introduced in 2007, revolutionized the smartphone

industry with its touch-screen interface, multi-touch gestures, and app-based ecosystem.

Apple was granted multiple patents for various aspects of the iPhone, including the

design, user interface, and software functionalities.

The patents granted to Apple for the iPhone allowed the company to protect its

innovations from competitors, giving them a competitive advantage in the market. In

some cases, Apple has engaged in legal battles with other smartphone manufacturers

over patent infringement, using its patents to defend its intellectual property rights.

● Copyrights : Copyright is a form of intellectual property protection that grants the creator
of an original work the exclusive rights to reproduce, distribute, perform, display, and
create derivative works based on their creation. Copyrights apply to a wide range of
creative works, such as literature, music, films, software, and artworks.

Example of Copyright: "Harry Potter" Series by J.K. Rowling

The "Harry Potter" book series, authored by J.K. Rowling, serves as an exemplary

real-life case of copyright protection. J.K. Rowling holds the copyright to the entire

series, which includes seven books chronicling the adventures of the young wizard Harry

Potter and his friends at Hogwarts School of Witchcraft and Wizardry.

 As the copyright owner, J.K. Rowling has the exclusive right to reproduce and distribute

the books, as well as to adapt them into movies, merchandise, and other derivative

works. The "Harry Potter" series' copyright has led to its global success while also

allowing Rowling to control how her works are presented and commercialized.

Infringement of copyrights can result in legal actions, as seen in various cases where

unauthorized reproductions or adaptations of the "Harry Potter" series have been subject

to legal scrutiny and enforcement.

Intellectual property rights play a pivotal role in protecting the creations and innovations of

individuals and organizations. Patents safeguard new and useful inventions, granting exclusive

rights to the inventors, while copyrights protect original creative works, granting control over

their reproduction and distribution. The real-life examples of the iPhone and the "Harry Potter"

series illustrate how these intellectual property rights are utilized to encourage innovation,

protect creators' interests, and drive the development of new and creative works.

Question 3 : Samiksha wants to start a new organization that will have a chain of pet salons in

India. She is planning to start the organization all by herself as the owner. She needs clarity on

the setting up of the organization and has raised a few queries. Kindly advise:

a. What are the different Unincorporated and Incorporated forms of organization? Please

explain each of them.

Answer :

Different Unincorporated and Incorporated Forms of Organization:

Unincorporated Forms of Organization:

● Sole Proprietorship: A sole proprietorship is the simplest form of business organization,

where an individual owns and operates the business alone. It offers full control to the

owner, who bears all the risks and enjoys all the profits. However, the owner is
 personally liable for all debts and obligations of the business. In India, starting a sole

proprietorship is relatively easy, with minimal legal formalities required.

● Partnership: A partnership is a business arrangement where two or more individuals

come together as co-owners to run a business. Partners share profits, losses, and

responsibilities based on the terms of the partnership agreement. It is crucial to have a

well-drafted partnership deed that outlines the roles, responsibilities, and profit-sharing

ratios of each partner. Partnerships can be either registered or unregistered, but

registering a partnership with the Registrar of Firms provides legal recognition and offers

certain advantages.

Incorporated Forms of Organization:

● Private Limited Company: A private limited company is a separate legal entity

incorporated under the Companies Act. It requires a minimum of two directors and two

shareholders and can have a maximum of 200 shareholders. Shareholders' liability is

limited to the amount unpaid on their shares. It offers advantages such as perpetual

existence, limited liability, and ease of raising funds through equity shares. However, it

has stricter compliance requirements compared to unincorporated forms.

● Public Limited Company: A public limited company is similar to a private limited company

but can have an unlimited number of shareholders. It can raise capital by issuing shares

to the public and is listed on stock exchanges. Public limited companies have more

stringent regulatory requirements and are subject to greater public scrutiny.

● Limited Liability Partnership (LLP): An LLP is a hybrid form of business that combines

the features of a company and a partnership. It provides limited liability to its partners,

shielding them from individual liability for the actions of other partners. LLPs must be

registered with the Ministry of Corporate Affairs (MCA) and are suitable for professional

service providers and small and medium-sized enterprises.

Each form of organization has its advantages and disadvantages, and the choice depends on

factors such as the scale of operations, ownership structure, liability considerations, and
regulatory compliance. Samiksha should carefully evaluate her requirements, risk appetite, and

long-term goals before deciding on the most suitable form of organization for her chain of pet

salons.

B. She intends to use “BuBri” as the name of the organization. She wants to know how she can

claim intellectual properties for the name. Please explain the type of intellectual

property/properties that can be claim and procedure of registering it?

Answer :

Claiming Intellectual Property for the Name "BuBri": To protect the name "BuBri" as intellectual

property, Samiksha can consider the following types of intellectual property rights and their

registration procedures:

Trademark: A trademark is a unique sign, symbol, logo, word, or phrase used to distinguish

goods or services from those of competitors. To claim intellectual property rights for the name

"BuBri," Samiksha can file a trademark application with the Indian Trademark Registry under the

Trade Marks Act, 1999.

Procedure for Trademark Registration:

● Conduct a thorough trademark search to ensure that the name "BuBri" is not already

registered or similar to existing trademarks.

● Prepare the trademark application with relevant details and a description of

goods/services associated with the name.

● File the application online or offline with the appropriate fees.

● The Trademark Registry examines the application for any conflicts or objections.

● If there are no objections, the trademark is published in the Trademark Journal.

● Within four months of publication, third parties can oppose the registration.

● If no opposition is received, the trademark is registered, and the Certificate of

Registration is issued.
Domain Name: If Samiksha plans to use "BuBri" as the website address, she should consider

registering the domain name with a domain registrar. Although domain name registration does

not offer comprehensive legal protection, it secures the exclusive use of the website address.

By registering the name "BuBri" as a trademark and securing the domain name, Samiksha can

protect her organization's brand identity and prevent others from using a similar name.

Trademark registration offers more robust protection and legal recourse in case of infringement,

ensuring that her brand remains distinctive and recognizable in the pet salon industry in India.