Law, Business Liabilities and the Consumer - Case Study Example

Business Law BUSINESS LAW Law, Business Liabilities & the Consumer Introduction The Business Law Draft Bill will generallyrepresent one of the biggest consumer law overhauls for decades. The main aim of the business law is to clarify and consolidate the existing consumer law. Additionally, the new law aims at updating the law in order to keep pace and up to standard with the advance in technology in the business markets. The new law will enable the consumers understand their business rights and business burden from additional costs of staff training, prolonged business disputes and seeking legal advice reduction. Currently, there are 12 different legislation pieces, which cover the rights of the consumers in the United Kingdom. Additionally, there are 60 more legislation pieces, which cover the investigatory authority of enforcers of the consumer law. In UK, the law on Consumer Rights Bill intends to rationalize, modernize and consolidate the law on consumer. In this case, the draft Bill would generally apply on some of the contracts that exist between the consumer and the trader. It should be noted that the draft Bill would not focus on consumer-to-consumer or business to business contracts. Alternatively, the draft Bill remains part of the consumer law reforms that includes; Consumer Rights Directives that the United Kingdom government seeks to implement by 2014. The Draft Bill also includes the Alternative Dispute Perseverance Directives and the Misleading Practices Directive. The Draft Bill will raise various important issues that the UK government must resolve before putting the law into place. The Bill focuses on different areas that need to be addressed regarding the consumer markets and stakeholders uncertainties. It also focuses on some of the areas which upon the implementation of the Bill it would represent significant departures in various aspects especially the current legal position. In relation to the Business Law, this paper will generally outline some of the major necessities of the new draft. Additionally, the paper will explain the importance of the new Bill to a business. Lastly, the paper will elaborate on the need to enacting the Bill to a business franchise. The paper will use different law cases to demonstrate on the need of enacting the Business Law Bill. In doing this, the paper will focus on the prison compensation aspect. Background The United Kingdom’s law on consumer has generally evolved over the past years through both the European and domestic legislations pieces. In autumn 2012, the United Kingdom government engaged in a number of discussions to propose different measures in consumer law reforms. In doing this, the United Kingdom’s government then issued its opinion and response after the consultations. The draft is made up of three different parts. The first part focuses on consumer contracts for digital contents, goods and services The second part focuses on the law, which relate to some of the unfair consumer contracts terms. The third part focuses on consumer law enforcer’s powers, private actions in the competition decree and the enhanced consumer enforcement measures. Generally, the Bill is supposed to help business consumers and some of their advocates to understand business rights and wrongs. In doing this, it will empower the consumers and promote their business growth through market competitions. In simple terms, the Bill seeks to reduce regulatory burdens for all the businesses. The main role of the proposed Bill is to make the markets work even better. Any business in the market will have less or no costly disputes with their clients. The Bill would deal with business disruptions, which might be caused by impromptu visits from the enforcement officers. In this case, the officers would be required to give or state a reasonable notice for doing the business inspection. Additionally, consumers and business franchises would have an easy opportunity to hold to account in case there is competition law breach. Good, services and digital contents As part of the proposed legislation, any pre-contractual information regarding goods characteristics will generally be part of the indenture. Consumers will also have the right to return or reject goods of poor standards within one month. If it was hire purchase agreement, returning the good will depend on the period at which the consumer fully possessed the product (Emerson 2009, 89). The period for returning the product back to the business can be paused in case the good needs some repair. Alternatively, in a situation where the consumer rejects the goods within 6months after attaining it, then the trader cannot ask for a deduction of the refund unless the good was established to be of second hand value. Unfair Contract terms In this legislation, the subject matter aspects only be relieved from review in case the terms are prominent and transparent. In this contract, transparent refers to intelligible or plain thus readily available to clients. In the new draft, the grey list is now different and now entails three different terms. Terms that allows business owners to determine subject matter characteristics after business consumer is bound. Inexplicably high charges especially when the consumer does not want to conclude the contract. The third terms are the type of terms that gives the traders an opportunity to determine the price especially when the consumer is bound. Additionally, there would be no changes in the fairness test. Impacts of the Business Law (Law, Business Liabilities & the Consumer) to a business With the UK’s parliament almost passing the Bill, both consumers and businesses must be familiar with some of the changes in the new draft. Generally, the draft will affect both the consumers and businesses in the market therefore; being familiar with some of the changes would be important (Emerson 2009, 47). The new laws mostly affect business owners while the heaviest responsibility with the new Bill in place will fall on the producers thus the product manufacturers. Additionally, market distributors such as wholesalers and shop owners will have legal responsibility with the Bill in place. In a situation where the business supplies goods and other products to the consumers, then the business owners or the market distributors must ensure that the product meets human being standards. In case it fails to meet the standards of the consumers, then the business might suffer the consequences. A business owner might face legal action or a jail term. This means that before participating in any form of business, there is need to read and get familiar with the new business laws. Therefore, this means that understanding the new Bill would be crucial for any business participant. Generally, the Bill will help in the reduction of business regulatory burdens. Alternatively, the new Bill seeks to ensure that the existing markets effectively work and operate properly. Additionally, the new Bill will help business operators avoid costly disputes with some of their clients. In doing this, the Bill would help in the minimization of business disruptions. Most of these aspects tend to favor business operators while carrying out their business duties. Unlike before, the enforcement officers will have to explain extensively why they are making impromptu visits in the business premises. The proposed Business Law will generally keep business owners on check and more alert during business transactions. Business owners such as suppliers and producers will have to supply or produce goods that are up to standards or else risk legal action against them. In a situation where the supplier supplies goods that are of low standards, the consumer has the right to return the good to the supplier in a 30-day period. This clause was never in the previous legislation and it tends to favor the consumers. The consumers also have the right to reject goods supplied to them as long as they do not meet their needs. The law also applies to hire purchases shops. In this case, the customer has the right to return the good to the hire purchase shop although this depends on the agreed time when the consumer would have fully paid for the product. However, the period at which the consumer can return the product back to the supplier can be paused in a situation where the good is damaged. In simple terms, the producers, suppliers and the retailers have to maintain high standards of the goods to avoid losses or being affected by the new law. The new law seeks compensation to a consumer at all times especially when the goods or services are of poor quality or not to the satisfaction of the consumer. Failure to which, the consumer has the right to report the case to the authority. The business operator may end up serving a prison sentence or risk closure of the business. How the Law will affect the producers, seller or the distributors According to the new law, the main responsibility of the distributors, producers and sellers is to provide the consumers with safe products. By doing this, the producers and the sellers must warn the consumers of any potential risks of using the products. Additionally, the producers and the sellers must provide the consumers with the necessary information, which will help them understand some of the risks involved in using the product (Mathur 2010, 50). Alternatively, the sellers must monitor the safeness of the products before selling the product to the consumer. Lastly, the distributors, producers and the retailers must take quick action before a safety problem occurs. Failing to observe these aspects, the producers and the sellers risk being sued, imprisoned or fined by the relevant authorities. Of all the products in the market, extreme measures must be put on high-risk products. Some of the products include fireworks, toys, medicine and food. Such products have specific regulations that apply on them(Mathur 2010, 79). Distributors and producers must notify their relevant local authorities in case the products are not up to standard. In most cases, the Trading Standards Department is the relevant authority that deals with such cases. Example Real law cases Consumer vs. Business Digital content In a situation where the consumer has been playing free computer game for the past 5 months and spent some money on in-app for the purposes of improving the character. After the purchase of the in-app the game is no longer working as usual; the new Bill under the digital content act will be intangible meaning that the consumer is entitled for compensation or machine repair. Product Safety Liability Generally, product safety is under the responsibility of the producers. In most cases, it includes; importers, manufacturers and business franchises which change product safety such as servicing or customizing. Lastly, it entails businesses, which supply own-brand goods. In a situation where the product causes harm, several businesses can jointly be liable. In the manufacturing of goods, several component makers tend to supply various good parts to the manufacturer after which, it has the responsibility of assembling the product and make it useful to the consumer. Product distributers such as wholesalers and shop retailers are never liable in case the product is harmful to the consumer (Gulshan 2009, 98).However, they are only required to identify the product producers. However, the distributors are responsible for goods safety. In case of anything, they can face serious risks or the enforcement action. A consumer who is hurt by unsafe goods or products has the right to sue the business entity. In this case, the court case can begin after three years after the harm. Alternatively, the customer can sue the producer for up to ten years. As a precaution step, the supplier or the producer will need to engage in practical steps in order to prevent such cases. The Consumer Protection Act of the 1987 can serve as a guideline to the steps. Consequences of Liability In a situation whereby the producer or the distributor is liable for damage caused by products of low standards or unsafe products, the injured person can sue him. This situation can also apply to individuals who did not buy the goods themselves. The producer or the distributor can be sued for injury or death caused to the consumer. Alternatively, the producer can be sued for private property loss caused by goods, which are faulty especially when the damages are excessive. In a situation where there is damage or harm, compensation of the consumer will depend on the degree of damage. In most cases, there are no limits to it. To handle this situation, business owners will need to take product liability insurance so that they could protect their businesses from any damages awards and legal costs (Gulshan 2009, 76). Enforcement officers or authorities are given the power to take action in case they feel the products are unsafe and unfit for human consumption. Alternatively, trading standards officers have the responsibility for all the safety measurements in every local council. Special products including medicines and food are under the responsibility of other authorities. In most cases, the trading standards officers in local authorities have the power of handling such products. Conclusion From the report, it is quite evident that the law will tend to favor both the business and protect the consumers from substandard products in the market. With the nation almost passing the Law Bill, it would mean that both the consumers and businesses operators must know the deal operates and the changes in the new draft because it tends to directly affect them. Generally, the draft will affect both the consumers and businesses in the market. This means that any participant in the market must be familiar with the changes since it would be important. Bibliography Business Law Journal Co. 1923. The business law journal. 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