Master of Business Administration - Semester 3 MB 0051: Legal Aspects of Business (4 credits)

(Book ID: B1207)

Q1. Discuss the nature and significance of business law? Answer: Natures of business law are mentioned below:Law is body of rules- These rules prescribes the conduct standard or pattern to which actions of the persons in the state are required to conform. Law is for the guidance or conduct of persons- both human and artificial- The law not made just for the sake of making it. The tules embodied in the law are made so as to ensure that actions of the persons in the society conform to some predetermined standard or pattern. Law is imposed:- Law is imposed on the members to bring about an order in the group enabling it to continue & prosper. Law is enforced by the executive:- unless a law is enforced it ceases to be a law and those persons subject to it will regard it as dead. The state:- A state is a territorial division with people therein subject to a uniform system of law administration by some authority of the state. Content of law:- the law is living thing and hangs throughout the course of history. Two basic ideas involved in law:- (1).to maintain some form of social order in a group. (2).To compel members of the group to be within that order Law is made to serve some purpose which may be social economic or political.
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Master of Business Administration - Semester 3 MB 0051: Legal Aspects of Business (4 credits)

(Book ID: B1207)

Business law may be defined as that branch of law which prescribes a set of rules for the governance of certain transactions and relations between: (1). Business persons themselves (2).Business persons and their customers, dealers, suppliers, etc. (3). Business persons and the state.

Q2. What is Partnership? Briefly state special features of a partnership on the Basis of which its existence can be determined under the Indian Partnership Act? Answer:- A partnership is defined as the relationship between persons who have agreed to share profits of a business carried on by all, or by any of them acting for all. Special Features by which we can define Indian partnership act:Partnership is an association of two or more than two persons:there must be at least two persons who should join together to constitute a partnership ,because one person cannot become partner with himself. Partnership must be the result of an agreement between two or more persons:- An agreement presupposes a minimum number of two persons. The agreement must be to carry on some business:- The term business includes every trade, occupation or profession. Though the word Business generally conveys the idea of numerous transactions.

Master of Business Administration - Semester 3 MB 0051: Legal Aspects of Business (4 credits)

(Book ID: B1207)

The agreement must be to share profits of the business: - The joint carrying on of a business alone is not enough; there must be an agreement to share profits arising from the business.

Q3.Examine the rights of a consumer enshrined under the Consumer Protection Act, 1986? Answer:- The consumer protection act, 1986 extended a statutory recognition to the rights of consumers. Sec.6 of the act recognizes the following six rights of consumers: 1. Rights to safety:- The right to be protected against the marketing of goods and services which are hazardous to life and property. 2. Right to be informed: - The right to be informed about the quality, quantity, potency, purity, standard and price of goods or services, as the case may be, so as to protect the consumer against unfair trade practices. 3. Right to choose:- It means right to be assured, wherever possible, access to a variety of goods and services at competitive prices . In case of monopolies say railways telephone etc. it means right to be assured of satisfactory quality and service at a fair price. 4. Right to be heard:- the consumers interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the consumers welfare.

Master of Business Administration - Semester 3 MB 0051: Legal Aspects of Business (4 credits)

(Book ID: B1207)

5. Right to seek redressed:- It means the right to seek redressed against unfair practices or restrictive trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of the consumers. 6. Right to consumer education:- It means the right to acquire the knowledge and skill to be an informed consumer.

Q4. What do you mean by bailment? What are the requisites of a contract of bailment? Explain. Answer:- Bailment is defined as the delivery of goods by one to another person for some purpose , upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of delivering to the directions of person delivering them. The person delivering the goods is called bailor and the person to whom the goods are delivered is called bailee. The explanation to the above section points out that delivery of possession is not necessary, where one person, already in possession of goods contracts to hold them as bailee. The bailee is under an obligation to re- deliver the goods, in their original or altered form, as soon as the time of use for, or condition on which they were bailed, has elapsed or been performed. From the definition of bailment the following characteristics should be noted:

Master of Business Administration - Semester 3 MB 0051: Legal Aspects of Business (4 credits)

(Book ID: B1207)

1. Delivery of goods: the essence of bailment is delivery of goods by

one person to another for some temporary purpose. Delivery of goods may, however, be actual or constructive. 2. Bailment is based on a contact:- In bailment the delivery of goods is upon a contract that when the purpose is accomplished, they shall be returned to the bailor. 3. Return of goods in specie:- The goods are delivered for some purpose and it is agreed that the specific goods shall be return of specific goods is an essential characteristic of bailment. 4. Ownership of goods:- In a bailment, it is only the possession of goods which is transferred and not the ownership thereof, therefore the person delivering the possession of goods need not be the owner; his business is to transfer possession and not ownership.

Q5. Name the instruments which are recognized as negotiable instruments by the Negotiable Instruments Act, 1881. Answer:- An instrument as referred to in the act is a legally recognized written document, whereby rights are created in favor of one and obligations are created on the part of another. The word negotiable means transferable form one person to another either by mere delivery or by endorsement and delivery, to enable the transferee to get get a title in the instrument. An instrument may possess the characteristics of negotiability either by statute or by usage. Promissory note bill of exchange and cheque is negotiable instrument by statute as they are so recognized by sec. 13 there are certain instruments which are recognized as negotiable instruments by usage. Thus bank notes bank drafts share warrants beard debentures, dividend warrants, scripts and treasury bills

Master of Business Administration - Semester 3 MB 0051: Legal Aspects of Business (4 credits)

(Book ID: B1207)

are negotiable by usage. An instrument is called negotiable if it possesses the following features: 1. Freely transferable: Transferability may be (a)delivery or (b) by endorsement and delivery. 2. Holders title free from defects:- the term negotiability means that not only is the instrument transferable by endorsement and/or delivery but that its holder in due course acquires a good title notwithstanding any defects in a previous holders title. A holder in due course is one who receives the instrument for value and without any notice as to the defect in title of the transferor. 3. The holder can sue in his own name:- Another feature of a negotiable instrument is that its holder in due course can sue on the instrument in his own name. 4. A negotiable instrument can be transferred infinitum can be transferred any number of times till its maturity. 5. A negotiable instrument is subject to certain presumptions:An instrument which does not have these characteristics is not negotiable, but is assignable the transferee takes it subject to all equities and liabilities of the transferor. Q6.a) Write short note on Intellectual property right. b) A leaves a cow in the custody of B to be taken care of. The cow gives birth to a calf. Who will take the calf and why? Answer:- a. A trademark, a copyright, or a patent right are incorporeal assets. These are known as IPR, for instance , musical copyright in respect of songs, tunes and literary and artistic copyright belong copyright belong to the author as his property. Thus in this case of IPR, the subject matter of proprietary interest is not the product (such as a book, a cassette), but the exclusive right of the author or singer or inventor to publish a book, record music, or manufactures a particular thing or allow others to do so only at his behest.

Master of Business Administration - Semester 3 MB 0051: Legal Aspects of Business (4 credits)

(Book ID: B1207)

b. A will be taken both, If A has given the cow to B only for custody to take care of (may be in his absence), then A continues to be the owner of the cow, as he has not sold it to B. Hence A will get the cow back from B along with the calf. This is just like giving your own flat on rent to a lessee who does not get ownership rights over the flat but only possesses it for a fee.