Level 5

Unit code
Credits 15
LO1 Understand the main principles governing the legal and relationship
between businesses and their consumers.
1.1 Evaluate when terms can cannot be implied into the contract of sales and
goods or for the provision of services.

Clearly there is an issue between Gary and Jason, and this conflict can be resolved
by if Jason took into consideration the legal implications when selling a used car.
Both the parties have their own rights and responsibilities.
Regarding this issue based on a contractual basis:
Regarding Gary (buyer of the car), he has statutory rights under the Consumer
Rights Act 2015 if you buy a used car and have difficulties with it.
You have the right to reject something that is defective, and in most situations, you
are subject to a full refund inside 30 days after purchase.
Over 30 days, Gary will lose his right to reject the car he purchased on a temporary
basis. He will also have limited rights, such as the ability to just request a repair or
replacement, as well as a partial reimbursement.

Jason has a couple of responsibilities as a seller of used cars, and he may be aware
of them too. He should obtain any relevant documentation, such as the MOT
documentation, V5C verification and even the history of the service.
The MOT certificate verifies that the specific car met the legal ‘environmental and
road safety standards’ at the time of inspection. On the other hand, the V5C is the
vehicle registration document, such as the date it was initially licensed, the
manufacturer and so on.
If Jason is selling the car, the most important thing he can do is make sure the car is
described and represented truthfully to the prospective buyer. However, if the
potential buyer (Gary) inquires about the vehicle’s condition, the seller must be frank
about it.
If the vehicle is not safe to drive, you must disclose this in the initial description,
which as a matter of fact Jason missed to do. It is prohibited, in fact illegal to sell an
unroadworthy car unless the buyer to intends to use it for repairs or surplus
components.
Jason must notify the DVLA the instant the automobile has been sold to inform them
that you no longer possess it. Failure to do so, could lead to troubles in the future.
For example, if Jason sold the car to Gary, and failed to inform DVLA, Any road
offence caused by Gary, Jason would face the consequences as he would have to
prove that the ownership belongs to Gary now and not Jason.
You may still be entitled to compensation depending on the following factors:
- Date and location of purchase.
- The issue must be stated.
- Whether you were aware of an issue when you purchased it. This could
be a repair, a monetary sum to cover the expense of the repair, or a
complete or partial refund of your money.

According to the sale of Goods Act 1979, under the 14 th section (c);
- The products must be of acceptable quality. Within six months of
purchase, and the item found defective from the day of purchase, and the
merchant is considered to have infringed the contract with the consumer.
(Soga Hub, 2014)
Terms are contract components, and are legally binding and having legal
ramifications if breached.
In this instance, the court ordered the liability to pay the defendant’s compensation
sum implied agreements existed in such areas and in this vocation. As result, the
farmer would have been compelled to make up for all the costs because the same
comes within the scope of the town’s agricultural heritage. Extending the logic to the
preceding situation, it is possible to conclude that the inferred words are valid in this
context. (Hutton v Warren case, (1836))

The difference between these terms are very concise; an express term is one that is
declared by the sides during arbitration or contained in a contract, while on the other
hand, implied terms are those that are not specified but nonetheless constitute the
terms of the deal.
Implied terms are frequently used to augment a formal treaty for business purposes,
to ensure justice between the sides, or to alleviate distress.
Contractual terms such as, Sales of Goods Act of 1979, may very well be inferred by
legislation/ courts.

1.2 Evaluate statutory transfers of legal and possessory title.

The statutory transfer scheme is a plan devised by the administrator of the state
in keeping with any law that authorizes one or more exchange of assets,
obligations and liabilities.
Consumer are protected by the Sales of Goods Act of 1979. This act verifies that
items are as described, satisfying the set requirements or criteria, and are
suitable for the purpose.
Now, when we further dissect what the Sales of Goods Act 1979 contains, under
the title ‘Contract of sale’, the fifth point, we can see the following statement:
‘Where under a contract of sale the transfer of the property in the goods is to
take place at a future time or subject to some condition later to be fulfilled the
contract is called an agreement to sell’
In short, this rule indicates there is an implicit agreement that the vendor has the
authority to sell the items.
There are numerous implications that result from the transfer of property,
including:
- If the buyer has acquired ownership of the goods, he will have great title
to them if the vendor becomes bankrupt while the commodities are still
in the vendors control. (In this case, Jason selling a used car to Gary)
- The ability to charge/ sue a third party for goods damages/ loss may be
contingent on who owns the property at the time.
- If the items are provided pursuant to the seller’s registration of ownership/
property/ assets/ property clause, the seller may have a valid ownership of
goods if the buyer goes bankrupt.
- The danger will presumably pass when the property is sold. (Insite Law
Magazine, 2014)

Under the section 20 (passing of risk):

Except otherwise specified, the items remain at the purchaser’s risk until the
possession is passed to the customer, the threat is also transferred to the buyer.
This section can come of great use for both Jason and Gary.
1.3 Evaluate buyers and sellers statutory remedies for breach of contract.

Let us discuss the statutory requirements of the Sales of Goods Act governing
the buyers and sellers remedies:
Remedies of the seller:
- When the full price of the goods is not reimbursed or when payment is
returned, the vendor is considered unpaid. (section 38, SOGA1979)
- On the other hand, the unpaid seller has the right of his/her own.
- The unpaid seller has a claim for damages on the products, or has the
complete right to own the goods for the cost while he still has ownership.
However, if the buyer becomes insolvent/ bankrupt the company ha sthe
right of halt the goods in transit, once he has relinquished ownership of
the goods. (section 39, SOGA 1979)

Under the ‘Unpaid seller’s Lien’:

- Section 41 claims that a lien is at odds with the products

Under the ‘Stoppage in transit’:

- Section 44 claims a halt in the movement of goods.

Finally, under the Re-sale etc by buyer’:

- Section 48 claims the sales act restricts the withholding and resale of
products.

The rights against the buyer are the following:

- Section 40 ‘action for price’
- Section 50 ‘damages for non- acceptance’, this law is responsible for the
action for monetary damages for non-acceptance of the products.

Remedies of the buyer:

Consumers have further rights under part 5A of the SGA 1979 if the goods do not
comply with the contract. (for a period of 6 months from the time of delivery)
Under part 5A, “Additional Rights of Buyer in Consumer Cases”:
- Section 48 (B), ‘Repair or replacement of the goods’, involves customers
to require the seller to either ‘repair’ or ‘replace.
- Section 48 (C) 1, ‘ Reduction of purchase price or rescission of contract’.
- Section 48 (C) 2, contract cancellation. (Gov.UK)

1.4 Apply principles of product liability to given scenarios.

The law of tortes and the Consumer Protection Act 1997 are both relevant to product
liability.
Jason and Gary’s case can be compared to the famous Donoghue vs Stevenson
case that occurred in 1928. When a friend of Mrs Donoghue bought her a ginger-
beer, and while she consumed half-way through the bottle, she poured out the
remainder beer in another vessel and found snail remains. The ginger-beer bottle
was dark opaque green, and indicator claiming she hasn’t noticed the snail at that
point. This caused her to have severe gastro-enteritis. (Law teacher, 2021)

Now Jason and Gary can use this example to deal with your conflict of Gary
experiencing an accident on his way to returning the malfunctioning used car.
Lord Atkin concluded this case ( Donoghue vs Stevenson), that the maker of this
item owes a duty of care to the consumer to take a level of protection to guarantee
that the buyer in not wounded.
According to the Consumers Rights Act, you can expect it to:
- Be of adequate standard or quality
- Fulfil any description you were given when you purchased it
- Appropriate for the purpose
According to the Act, it provides the customer 30 days to dismiss the defected car
and alleges a complete refund from the supplier who auctioned it to you. (Gary in this
case). However, after 7 months the rear axle was found defected, so according to
the law Gary may have to provide an independent audit report that establishes the
state of the car. Either Gary can get it repaired without any additional costs or get his
money back.
Say Jason refuses to refund or repair the damages, then where does Gary’s rights
lay in this matter? He can have the car repaired somewhere else to avoid any
conflict as it may to unsettling situations.
Another option Gary has is to return the car and receive a fraction of the money he
paid to Jason.
However, buying cars from an auction gives Gary limited right and a lesser chance of
getting a full refund. Gary has Consumer Acts for up to 6 years, after that, his
protection against a faulty car.
Jason must notify Gary in written form of your reasons for opposing the vehicle in
less than 6 months of receiving it. If Gary refuses to acknowledge Jason’s refusal of
the vehicle, consult customer service of the manufacturer as they might be able
assist Jason.

Gary should have gone through the V5 vehicle log book; the V5 identifies the
account holder of the automobile, the individual who will be held accountable for any
traffic offenses involving the car, and the holder may not always be the proprietor.
Since Jason violated being non-transparent with Jason on the vehicle’s condition.
The rear axle had a faulty that may have led to Gary’s minor injury while on his way
to return the vehicle to Jason. Gary was also not informed of the car’s history before-
hand, now realizing that the car was stolen. Jason could face major punishment for
his disloyalty and carelessness, and may experience felony and statutory offence.

LO2 Understand rules governing consumer credit and the law agency.

2.1 Differentiate between types of credit agreements.

The Consumer Credit Act of 1974 specifies a number of distinct forms of credit
agreements, which are detailed below.
Unrestricted use of credit: This agreement provides unfettered credit.
Restricted use of credit: The credit utilisation is restricted under this arrangement,
although it can be used by the borrower.
Debtor- creditor agreements:
This contract was created under section 12 of the ‘Consumer Credit Act 1974’ in
which the debtor himself make the agreement based on preceding arrangements
with the provider.

Debtor- creditor agreements:

It’s a contract governed by section 13. Only the debtor knows that the credit will be
used to support a transaction between the creditor and the vendor since the
agreement is not established under any preceding agreements between the creditor
and the supplier.

Restricted credit use involves the creditor may utilize the credit funds for the
designated motive. On the other hand, unrestricted credit use is where the debtor
may utilize the loan for any objective.
According to the Consumer Credit Act 1974 section 11:
- A restricted credit use is a governed consumer credit agreement.
- Unrestricted-use credit arrangement is a governed consumer credit
agreement that does not come under paragraph 1 and the term ‘
unrestricted-use credit’ is to be interpreted appropriately.
- The contracts does not come under paragraph 1 if the loan is granted so
as to let creditors to use it anyway he/ she sees fit, and although specific
application would violate agreements.
- Although the names of the providers is unclear is anonymous and
ambiguous the agreement was created, it comes under paragraph 1 (b).

A few examples of credit arrangement are discussed below:

- Credit cards: When a customer requires a loan, they may file a lawsuit
their credit card. This benefits owners with credit cards the incentive to
pay over a long period of time, which means you have limitless
purchasing ability, paying it later with zero interest.
- Personal loans: An individual is allowed to take a loan with an overdraft
option accessible where they require to pay interest. A conventional loan
is also available, however, at a higher interest rate.
- Car loans: A car loan is backed against the vehicles you intend to buy,
therefore the vehicles acts as security for a loan. If you struggle to deliver
your instalments, the creator has the power to take your vehicle. The loan
is repaid in predetermined payments during the life of the loan.
(Investopedia, 2021)
- Mortgage: A mortgage is a secured for a loan made by a lender. After
acquiring the mortgage, you must repay the loan amount including the
monthly instalments during a fixed length of time (Approximately 25
years). In the UK, certain mortgage payments have prolonged or shorter
duration, and this is secured against your ready freehold property until
fully repaid.
2.2 Apply termination rights and default notices to given scenarios.

Gary has termination rights under the Consumer Protection Act 1974, which allows
them to cancel a credit arrangement at any moment before signing it or within 14
days of signing the contract.
Say Gary has a difficulty paying his debts. The creditor is required to give him an
Arrears Notice (a formal letter served to a customer when they are in two months of
arrears and then that at six month intervals after that), as well as an information
document from the FCA (Financial Conduct Authority), and if there was a Green
Deal strategy implemented, then this is not necessary.
The lender is also obligated to issue Gary a default notice, which should comprise
the FCA information document. The default notification will inform Gary of what he
has to do and what the repercussions will be if he does not pay what he owns to the
other party.
If the lender intends to impose any costs on Gary for whatever reason, he will notify
Gary. If the lender gives Gary inaccurate information, they cannot sue him or impose
any additional fees or interest.
Termination rights:
- Both the buyers (and seller) are permitted to rescind the contract if there
is an issue with credit settlement.
- Sections 94 to 97 allows the debtor for request an amicable payment.
- Revocations that has already been initiated by the creditors, then they
have to reinstate the items to the debtor. (section 98 to 101)
- If a debt is ongoing, the creditor must pay the slightest amount.
- If the debtor violates the agreement, it can be revoked.
- Debtor default.

In one the scenarios, a customer paid till his 12 th instalment and still owes the 13th
instalment but wishes to terminate the contract. He has also damaged the car from
an accident, so what are the remedies a creditor can abide to file an action against
the lender? `If the lender refuses to pay the appropriate instalments stipulated in the
contract, the creditor may file a lawsuit in court to regain those instalments. Say the
violation consists of an immediate withdrawal, (like mentioned in the case) the
damages of the vehicle caused during an accident will be estimated in accordance
with the contract.

A customer has the right to undertake voluntary termination where he can terminate
certain types of finance contracts early under the UK law. According Consumer
Credit Act under section 99, an individual has the rights to terminate hire purchase
or PCP contracts in certain situations. If a customer is financing a car, he has the
option to terminate the contract. This is solely based on what you’ve already paid
and might not have to pay anything additional. This regulation is claimed as
voluntary termination.
It is given that the man has lost his job and hence wishes to withdraw the agreement
may be due to financial reasons. So VT of your car finance is a lawful entitlement in
the UK, especially when you don’t have the money to.
According to SAF, those who wish to terminate the contract must act in accordance
with these regulations:
- At least 50% of the full sum obligated to pay to the finance company must
be paid.
 - Any liabilities obligated to pay to the finance company up to date, even if
its paid over 50%.
- Returning the vehicles in it good condition given their age and mileage.
- The finance company must receive the voluntary surrender letter, with the
option the wish to take.

The finance company anticipated the car to be returned in good conditions,

as the car has been tenanted for a year and so would likely have some minor
damages on the car seats or interior. To voluntarily suspend the hire
purchase agreement, the consumer would be advised to make appropriate
repair work.

2.3 Distinguish between actual, apparent and implied agency.

A person who undertakes to act behalf of and in place of his or her principle, but
remaining under the supervision of the principle.

Agency by operations of law:

Contracts are generally made through contract , however there may be inferred
agency ties.

Agency by agreement:
Contracts are the most common way for agencies to form ties, however agreement
can also be used. However, the three essential characteristics of the contract,
namely consideration, written condition, and contractual capability must all be
present.

Implied agency
If the parties cannot reach an agreement in areas where there are societal needs,
the courts may declare the establishment of an agency, and this agency link might
be determined as the operations legislation.

Apparent agency/ Ostensible authority

If the closure of the agency connection is not disclosed to the appropriate authorities,
the authorities may believe that the agency is still active, and the principle will be
held liable for the agent’s activities.

Types of agents are listed below:

Special agent: This agent has restricted authority since he is only assigned to do
specified tasks.

General Agent: The general agent has a lot of power and may conduct a wide variety
of transaction under his principle’s name or on his behalf.

Agency with an interest: In this agency, the agent’s pay is contingent on his
continued connection.
Servant: A servant is an agent engaged by a master to do activities under the
master’s supervision. In the UK, this can also be stated as a ‘covert human
intelligence source’, and this is someone who discretely delivers an information to an
individual known as the intelligence officer.

Subagent: A subagent is a person who works beneath the primary agent and
depends on whether they might be approved by the principal.

2.4 Evaluate the rights and duties of an agent.

An agents duty is categorized into 4 sections; duty of obedience, loyalty, accounting/

repair and despair and finally duty of care and skill.
- An agent’s duty of care is when they have responsibilities to complete any
job allocated to him. in the conduct of the principal’s business this is
sometimes alluded to as a responsibility not to act recklessly.
- The agents most crucial responsibility is to fulfil all legal directions
provided by the principal. The agent has a responsibility to follow his
principal’s fair-minded instructions and to carry out all authorized orders
swiftly.
- Thirdly, handling financial accounts, the agent is responsible for properly
accounting for the property and funds.
- Keeping the principals data confidential.
- Being transparent with the principal is crucial, and half-truths cannot be
accepted, and relevant information must be informed.
- In a common law context, the agent has a duty of loyalty to the principal,
must not profit unduly.
Rights of an agent:
- If the agent is an autonomous expert, he has the right to receive income.
(wages or commissions).
- The principal has the right to hold the agent harmless from any loss or
expenses.
- The agent can exercise power of lien, which allows him to keep the
principals’ possessions until the principle pay his obligations. Only if the
commodities/ chattels were properly acquired by the agent during the term
of the agency does the agency have a claim of lien.
- Finally, regarding the third party, there is an implicit authority when an
agent makes a contract with. Agents is permitted to carry out the act, and
the third party may initiate a lawsuit if anyone lacks the legal rights to
enter into the contract.

LO3 Understand rules relating, to monopolies mergers and anti-competitive

practices.

3.1 Appraise the UK and EU anti-trusts laws.

 How important are anti-trust laws in the UK? Well, unhealthy competition is
protected by these anti-trust laws, and it guarantees lower prices with improved
products. A market that’s competitive healthy, competing firms will typically lure in
consumers by lower prices and boosting the quality of the service and products.
For instance, the most relevant provisions are the Competitive Act 1998 and the
Enterprise Act 2002. There are obligations in the United Kingdom, as with all
competition laws. This is intended to put a stop to agreements or any form of
practices exploited that may stifle free trade in the market , in order to promote
healthy competition between business entities.

Anti-competitive behaviour is outlawed in many treaties and legislation set o ut by

the EU and UK, such as, the Competition Act 1998 and EC Treaty.
If we look into Competition Act chapter I, it states; Outlaw agreements, decisions,
and coordinated actions amongst enterprises/ associations for instance having the
intention or preventing any form of competition or monopoly behaviour or altering the
trade patterns within the UK.
On the other hand, chapter II prohibits any misconduct more than one venture that
promotes dominance in a market, it has the potential to impact commerce within the
UK.
Under the Competition Act 1998, another prohibition for the firms to observe is to
establish market research terms in order to harm the business of rivals.

The Enterprise Act is another British legislation designed to tighten competition

regulation, ensuring that enterprises that engage in anti-competitive behaviour are
sanctioned. What has Enterprise Act introduced:
- Those that indulge in and conduct cartel activities are deemed to be
committing a serious crime.
- The enterprise Act has expanded the length of time that people can be
imprisoned.
- The Act now provides the corporate sector more explicit merger control.
- Directors now face up to 5 years of prison, if they involve themselves in
anti-competitive exploitation.

Enterprise and Regulatory Act 2013: This act intends to reduce the cost of doing
business in the UK while also promoting consumer and confidence of the business
and guiding (private sector) them to create more jobs for the general public. (Gov.UK
(2013
According to AP News, during 2019 the major music streaming app ‘Spotify’
inculpated Apple, accusing the company of suffocating competition by controlling the
Iphone’s operating system and the app store. This has led Spotify sue Apple for anti-
competitive practices.

3.2 Evaluate the function and effectiveness of the Financial Conduct Authority
and Competition and Market Authority.

Financial Conduct Authority: This a very significant financial indicator in the UK, its
considered one of the watchdog firms who are responsible in measuring and
monitoring corporation behaviour. It is independently run by the government of the
UK, and the fees charged by the members of the financial services sectors are used
to fund this organisation.
The FCA is in authority of supporting healthy competition behaviour ensuring that
economies work properly, and supervising the behaviour of a financial industry. This
comprises taking precautions to avoid market misuse, guaranteeing that firms offer
consumers a fair deal.
Under the Financial Services and Markets Act of 2000, the Financial Conduct
Authority, and they have come under fire recently and has been considered unfit.
The FCA’s aim is to secure individuals and encourage competition in order to keep
markets honest and transparent.
The FCA was named the competent body for consumer credit regulation during April
2014, which had previously been administered by the government department
called, ‘Office of Fair Trading’.
So why is FCA is so crucial and what do they offer?
In reference with their official website, FCA has posted a publication, listing out their
major purpose and their intention in meeting their three operational objectives:
- Ensuring an adequate level of consumer protection.
- Safe guarding the standards of the UK financial systems.
- Supporting effective market competition in the benefit of consumers.

Competition and Market Authority:

This is another regulatory body that integrates managerial abilities to financial
accounting expertise, assisting in strategic business judgements based on monetary
facts.
Just like FCA, CMA have a list of responsibilities they have to abide by, including:
Evaluating corporate mergers to ensure that they do not interfere/ harm competition.
CMA evaluate industries if they suspect that there is an issue with competition in the
market, and prosecute those companies/ business owners that participate in any sort
of cartels or unfair anti-competitive behavioural strategies.
CMA has one important role, and that is to maintain the competition policy in the UK.
The goal of these competition rules and regulatory mechanisms is to guarantee that
no one firm has an unfair anti-competitive or any form of monopolistic behaviour, and
that healthy competition must be promoted in the industry. (Comanor et al, 2014)
The Office of Fair Trading and the Competition Commission have merged into a new
entity that has the authority to examine any form of anti-competitive behaviour and
issues fines, damages and penalties.

3.3 Define ‘dominant position’ within the EU common market.

There are conditions needed to be met that comes under the European Union,
Article 82, this includes:
- The supplier must be in a dominant position.
- The tying product must be distinctive product
- The activity must have the potential to ‘distort the market’. (Kalen, Annika,
2007)
The corporation is in a dominant status, controlling half of the market. In the UK and
the EU, abusing a dominant position is an unlawful business tactic. The dominating
company takes advantage of their customers by enforcing anticompetitive trade
terms on them when they purchase items.
When a company is able to act independently of its external stakeholders, and
companies are not allowed to exploit their dominating position under the competition
laws put out by the UK government.
The issue of a company’s dominating position is addressed under Article 102 of the
(Treaty on the Functioning of the European Union) and under section 11 in the
Competition Act: ‘ forbid any action by one or more enterprise that amounts to the a
dominant position in a market if it has the potential to impact trade within the United
Kingdom’. The market place of the EU and the UK do not allow any competition to
thrive that abuses its authority and dominates the business industry. (Competition
and Market Authority,10, 2014)
When is a company considered in a dominant position:
- When a suppliers have a monopoly on retail prices.
- When the corporation engages in regional pricing discrimination activities.
- When the organisation is able to differentiate rates based on the type of
consumer.

An examples case that will be discussed is, United Brand that import bananas from
the United States. Providing the green bananas to the wholesaler for distribution
across the European Union. The wholesaler sells the unripe bananas to the vendor,
and on the other hand, the ripe ones will be wielded for other purposes. The EU
discovered that the United Brands abused their strong position in 1975, condemning
that they had not breached the EU Article 102. ‘forbidding aggressive behaviour by
corporations with a dominant position in a specified market’.

3.4 Evaluate how European Commission determines whether a corporation

holds a dominant position.

Article 102 of the TFEU (Treaty on the functioning of the European Union) forbids
abusive behaviour by enterprise with a dominating market position.
During these following circumstances, Article 102 case handled by the European
Commission or a national competition authority might arise from one of the following
sources:
- When a complaint is received
- Either launching an ex officio investigation or a sector inquiry

Specifically, articles 101 and 102 of the Treaty on the Functioning of the European
Union, and Article 81 of the Treaty of Rome and the Competition Act 1998 prohibits
enterprises, and structures that limit, obstruct or impede competitive behaviour in the
UK/ inside the European Union.
According to the commissions, if the market share is larger and the time is longer, it
most probably a sign of dominant conduct. If the business attains 40% or below of a
market share, it is doubtful to be dominant.
The UK and EU competition law prevent enterprise with market strength and unjustly
abusing their dominant positions, a practice defined as ‘abuse of dominance’, where
corporations that misuse their dominating position will face consequences ranging
from fines to improvements.
In order to shield the legal business’s right:
- Abuse -related behaviour that is purposefully justified.
- When the consumer gets a low rating, it is legitimate if the dominating firm
does not give him the resources.

3.5 Evaluate the meaning and consequences of ‘abuse of dominant position’.

Abuse of dominant position:

The abuse of dominating position is also forbidden by UK laws, which abuses
consumers by enforcing unfair trading terms.
Abusing the market is characterized as abusing customers by raising prices due to
the lack of competitiveness.
For instance, British Gas is the sole supplier of gas, from numerous services to
energy users throughout the United Kingdom. Customers of British Gas have been
protesting about the corporation’s exploitation for years. The OFT study finds that the
rates quoted by this firm are higher than the genuine marginal cost, associated with
excess profitability of the company.
To comprehend the British Gas’s stance in this situation, one must comprehend the
idea dominance in a market, which is elucidated above regarding the article 102.
When is a company considered to be in a dominant position?
- British Gas is in a dominant position because it is able to differentiate
rates based on the type of consumers.
- Lower prices to restraint competition.
- When the corporation engages in regional pricing discrimination activities.

Henceforth, abuse from the British Gas regarding their dominating position by
levying prices that is over the true marginal cost in order to yield more profit.
As a result, many repercussions may result in identical outcomes, including a fine,
an order/ injunction, invalidation and so on.

LO4 Understand key provisions relating to intellectual property rights.

4.1 Distinguish different forms of intellectual property.

The different types of intellectual properties include, copyrights, patents, trademarks

and trade secrets.
Copyrights: ‘It is a set of laws that protects writers, artists and other creators’ literary
and creative creations, which are sometimes referred to as works.’ (WIPO, 2010)
Publishers of new pieces, as well as databases/ software are awarded trademark
without the need for registration or application. As long as the trademark is not
directly duplicated, a copyright owner cannot prohibit others from doing so in the
creation of other original works.
According to the government of the UK, these are the following work copyright
protect:
- Your literary, musical, dramatic, photography or illustration and so on.
- Non-literary work like software or databases.
- Music recordings
- Broadcasts
An additional information; marking your work with a small symbol ‘©’ indicating your
creation, however this doesn’t necessarily effect the level of copyright protection you
have.
Patents: A patent secures new innovations; more specifically, patents protect the
other characteristics and procedure that make something operate. This assists
creators in profiting from their discoveries.
“Patents offer incentives by recognizing their inventiveness and providing monetary
compensation for marketable ideas. These inducements drive innovation, ensuring
that the performance of human existence is always improved”.
Patents are typically enforced by legal action, and innovators can monetize his/ her
copyrights by licensing them.

Trademarks: A symbol that distinguishes one company’s goods from those of

another. A trademark might be text or symbols, and these trademarks must be filled
with the ‘Intellectual Property Office’.
When the product has been filed, it can utilize the distinguish mark ‘®’. Copyright
laws are typically enforced through court proceedings, trademarks can facilitate
international trade by enabling a firm to establish its own world claim and preventing
competitors from utilising similar trademarks in their service and products.
According to the government of UK, the following points are ways to register a
trademark and license ones brand:
- To see if your brand eligible for registration as a trademark.
- Make an application to register your trademark.
- Acknowledge to any oppositions. (https://www.gov.uk/how-to-register-a-
trade-mark)

Trade secrets: State laws/ crime or civil laws protects the right to preserve trade
secrets (private company, knowledge, concealed information). There is no filing
mechanism and no exclusive right is assured.
According to (WIPO); these are the ways to qualify as a trade secret, the data must
contain:
- Commercially significant because it is confidential
- It is accessible only to a small number of people
- Susceptible to appropriate precautions taken by the legitimate holder of
the information to keep it hidden ( the use of non-disclosure for business
partners).

4.2 Evaluate the value of patents’ and copyrights’ protection.

The value of intellectual property and its privileges vary between various regions
across the globe. Intellectual property is valued differently by different law
enforcements authorities across the world.
Patents rights include the ability to take legal action to prevent others from
replicating, producing and/or selling an individual’s work/ his patents without his
consent.
One of the major reasons why copyrights or patents have an underlying importance
in the business world is the confidence in branching out ideas and getting creative
without the worry of having to think that any competitor or external party will
duplicate or steal ideas/ designs/ style etc.
One such example includes, music artists and why they value copyrights for their
work. ‘Music copyright denotes legal possession of a musical composition. This
possession includes unrestricted rights to disseminate and replicate the piece, along
with the licensing agreements that permit the copyright owner to receive
compensation.’ (soundcharts, 2020)
UK patents are intended to safeguard your creation by granting you the statutory
standing to appeal anybody who creates, utilizes or distributes your work without
your consent.
Having copyright laws ensures pre-emptive measure, securing image/ reputation,
provides legal protection, an inducement to generate. Hence, developed countries
like the UK and America’s primary concern was to safeguard developing- country’s
(e.g. China manufactures 80% of the worlds forgery) ideas/ inventions from the
fraudulent duplication and imitation.

Potential penalties imposed:

- Both the magistrates and crown court have penalties of their own.
- Magistrate’s court penalises a company up to 50,000 and sentenced up to
6 month of imprisonment, for those who are held liable of copyright
violation.
- On the other hand, in a crown’s court, there are infinite possibilities of
penalties, as high as 10 years in prison.
- According to the Trade Mark act 1994, there are a list of indictments for
those individuals/ corporations that exploit unauthorized use of trade
marks, with the offence and sentence for the crime done.

4.3 Appraise remedies for patents’ and copyrights’ infringements

Infringers of intellectual property rights may face both civil and criminal penalties,
however, if the copyright holder desires to pursue financial penalties and earnings,
lawyers costs and injunction, the patent owner can file a case against the accused
offender in the federal court.
According to the Patents Act, the party who affirms infringement may actively sought
from court a ruling to constrain infringement, a command for income changes,
destruction, proclamation that the patent or copyright owner is legitimate and has
been infringement as a remedy for patent infringement.
In addition to criminal procedures under the CDPA (copyrights designs and patents
act 1988), which can result in prison/ penalty fine, a variety of civil actions are
possible. The following points stated below are the remedies:
- Interim orders
- Confiscation
- An injunction issued following the conclusion of a case’s final judgement.
- Account of profits

This is a trade for thorough public disclosure of an innovation that solves a specific
technologies challenge and is an item. Infringement of a copyright implies producing,
marketing, copyrighted or in process product, say without the owner’s permission,
and hence face improvement or heavy fines.
4.4 Compare and contrast the protection of trademarks and business names.

‘The law distinguishes between the two: a trade name relates to the company’s
formal name, whilst a trademark gives legal protection for a company’s brand’
(Investopedia, 2021)
A trademark is a sign the brand name legally, whereas the strong brand makes it
easier for a consumer to catch a company’s name faster. (Leslie T, 2014)
(Gov.UK, 2014) There are certain occasions a business name would not be
accepted in;
- It should not be distinctive
- Descriptive word/ term is not accepted
- The term denotes the products geographical origin
- It is possible that it has been acquired as a trademark.

A trademark is a registered inscribed trade term that includes a phrase, emblem, or

sound that identifies a firm or a product for instance. The brand name specifies the
name of that particular company of the firm that sells the goods.
Consequences of non-compliance:
Anyone who wields a trademark without the owner’s consent, is therefore committing
infringement. In case the trademark, the owner is entitled to sue the offender in the
civil court, where civil disputes are dealt with. The company can sue the offender in
torte, in case the infringer has exploited a brand without consent.
Registering a trade mark is a way of protecting your company name, according to
the government of the UK.
There are numerous infringement remedies, including injunctions issued against the
offenders, administrative remedies, imprisonment, patents can be sued by a court
and so on.