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Business Law Assignment – please answer both parts

Learning Outcomes Tested in this Assignment : 1. Explain the main concepts and principles of the law of obligations & company law 2. Apply the main concepts and principles of the law of obligations & company law to realistic commercial situations 3. Critically evaluate the main concepts and principles of the law of obligations & company law in terms of their commercial consequences

 

Assessment Criteria
1	Outline and articulate the statutory and common law provisions in relation to business law. Use a wide variety of case law to illustrate the legal issues.
2	Critically analyse potential problems regarding the application of the law as it applies to business situations. Sustained arguments should be used throughout.
3	Wide ranging references with the correct use of the Harvard system
4	Quality of the written work. Clear structure to the work and correct spelling was used throughout.

 

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Part One

‘An invitation to treat is not an offer that is capable of being accepted by the other party. It is a pre-offer whereby party A is asking party B if they would like to make an offer which party A may accept or refuse. The party making the first statement envisages further negotiations before a contract is formed.’ (Introduction to Business Law; L. Jones; 2019.)

With reference to the above, critically distinguish how courts have made the distinction between an offer and an invitation to treat.

NOTES FOR PART ONE

This question asks you to explain what is meant by an offer.

Information you could include: –

Offer, along with acceptance, forms part of the agreement. So what is an offer?

You could also mention some of the rules associated with offer i.e. it can be writing, words or conduct; revocation of an offer.

You now need to explain that an offer needs to be distinguished form an invitation to treat – explain what this is and give examples e.g. goods on display in a shop, goods advertised in a newspaper or magazine. Mention also the rules regarding mere statements of price and lots at an auction. There are also situations which are not invitations to treat e.g. adverts involving a unilateral offer.

But is the law unnecessarily complicated? Is the definition of an invitation to treat against common sense or are there good reasons to maintain this definition?

Part Two

Answer the case study below

Pete has saved all year for a new television and so one Saturday he took a trip to the local retail park and went to ‘Tellyworld Ltd’, a large retailer of home entertainment. In the shop he looked at the glossy catalogue and browsed the section on Televisions. He settled on a particular set priced at £1500 which was illustrated by an impressive image and described as being ‘A 51inch curved HD plasma screen with the highest picture resolution’. Pete was impressed and took the catalogue to a sales assistant and asked whether this television had access to ‘Freeview’ channels – the sales assistant confirmed that this was the case. On the basis of this Pete paid for the television and it was delivered to his flat 5 days later.

However when Pete removed the packaging, he noticed minor scratches which covered the plastic casing surrounding the screen. He also discovered that the screen was in fact 42 inches and not 51 inches. To his further annoyance when he plugged the set in, he discovered the television only had access to ‘Freesat’ channels, not Freeview, limiting his choice of viewing and that the image resolution was weak. As Pete was busy with work, he only got around to taking the television back to the shop 7 days later. The shop however refused a refund stating that the scratches on the casing were too minor to warrant a refund, and in any case, it was Tellyworld Ltd policy only to offer refunds within 5 days from the date of purchase.

Pete returned home dejected, but to cheer himself up he subscribed to a digital movie site called ‘Movies for U’ which on their webpage promised to stream ‘all the most recent cinema releases direct to any digital television screen’. Pete paid £50 for 12 months subscription, but when the movies were streamed onto his television the quality of the images was very poor and the sound quality was weak. The movies were also at least 2 years old. Pete sent an email to ‘Movies for U’ asking for a refund. They responded with an email stating that Pete’s television must be incompatible with their downloads and that they never offer refunds on their digital content as this is outside statutory protection rights.

Advise Pete as to his rights under the Consumer Rights Act 2015.

NOTES FOR PART TWO

This particular case study raises a number of issue regarding the protection given to consumers under the Consumers Rights Act 2015.

There are two scenarios here –

• The purchase of the television, and
• The purchase of the downloaded music.

Before students discuss these issues they should firstly consider whether Pete fits the legal definition of a consumer under the legislation – see Sc 3 (1) – is this a sales contract – Sc 5(1)?

Purchase of the Television

Firstly it seems that the requirement that goods sold should correspond with their description appears to have been breached – Sc 11 – Consider the catalogue description ‘A 51inch curved HD plasma screen with the highest picture resolution’   A range of case law should be used to illustrate this point.

Secondly the television does not appear to be of satisfactory quality (minor scratches and the picture quality) – Sc 9 (1) students should look at the various factors which court employ to determine this – particularly price – Sc 9 (2) and (3). Again a range of case law should be used to illustrate these points.

Thirdly, the television does not appear to be ‘fit for purpose’ – Sc10 – Pete wants Freeview and not Freesat.

What remedies does Pete have – has she left it too late for a refund? See Sc’s 20 & 22.

The Downloaded Movies

Digital content is now covered by virtue of the Consumer Rights Act Sc 34.

Similar rules apply as to other goods – therefore the download must be of satisfactory quality Sc 34 (1) and this is can be determined by the description given to the goods – Sc 34 (2A) (‘all the most recent cinema releases direct to any digital television screen’) Downloads must also be fit for purpose – Sc 35 – poor sound and picture quality. The digital download must also match its description – Sc 36.