AURO UNIVERSITY

MBA 2014-16
Semester - 2, Block - 4
End Term

Legal Aspects of Business

Duration: 2 hoursTotal Marks: 60
Weightage:50%
Instructions:Please mention relevant cases/examples in support of your answers.
---------------------------------------------------------------------------------------------------------------Theory
Part A
Fill in the blanks (2 marks each)

(20Marks)

1. Schedule VII is regarding _______ under Companies Act, 2013.(CSR)

2. Aims of Right to Information Act are to bring ___________ & ____________ in the
governance of public authority.
3. For Annual General Meeting ____ clear advance notice to be given.(21)answer
4. Patent is valid for __________.
5. GI stands for ________.(government issue)
6. _____________conducts inquiry under Competition Act, 2002
7. COMPAT stands for _____________.
8. Against the order of Consumer Forum, appeal can be filed in _______________.
9. Copyright comes under the Ministry of ______________.
10. Scotch Whisky protected under _______________.(registered GIs UK)

Part B
How will you protect your idea with the help of Intellectual Property Rights (IPRs)?Discuss
some of the IPRs and with example.
(10 Marks)

Cases
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Case 1 (10Marks)
Rahul Gandhi wrote a book named IndiaShining in year 2013. Book was not registered under
the Copyright Act. In year 2015, NarendraModi copied significant parts of said book and
reproduced his work in his book Incredible India. Can Rahul Gandhi take any legal action
against NarendraModi ?Yes/No. Give the reasons.

Case 2(10Marks)
Bharati Knitting Co., a manufacturer of apparel, exported a consignment of goods to a
German buyer. The co. sent a courier with DHL, containing all the relevant documents for the
buyer to receive the goods. This included invoice, the packing list, export certificates. The
courier did not reach the buyer. As a result German buyer could not obtain the consignment.
Subsequently duplicate copies of the documents were sent. The consignment was meant for
the summer season. However, by that time, the summer season was over. The delay caused
losses to the seller. Bharati Knitting Co. claimed damages from DHL.
DHL had a printed from which contained several terms and conditions. The process that DHL
followed was that it filled up the form with the details of the courier and required the sender
to sign it. The terms and conditions printed on the form had clauses limiting the liability of
DHL. A clause relevant to the dispute read:
Clause 6 Limitation of liability : Without prejudice to Clause 7, the liability of DHL
for any loss or damage to the shipment, which term shall include all documents or
parcels consigned to DHL under this Air Bill and shall not mean any one document or
envelope included in the shipment, is limited to the lesser of (a) US$ 100; (b) the
amount of loss or damage to a document or parcel actually sustained or (c) the actual
value of the document or parcel as determined under Section 6 hereof, without regard
to the commercial utility or special value to the shipper.
Bharati Knitting co. agitated. It demanded actual damages suffered by it due to the nondelivery of the courier.
Whether Bharati Knitting Co. will succeed in getting damages? Yes/No. Give the reasons.

Case 3(10 Marks)

Oasis Ltd. Dealing in cosmetic products. It came up with hair removing cream named
Cleanser. For applying cream it also developed T type spatula. They registered the spatula
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under Design Act in India. Atlantic Ltd. also providing T type spatula which was operating in
ten countries.
How can Atlantic stop Oasis using the design ? What remedies are available to it ?
Decide the case on the basis of decided case(s).

********** End of Question Paper **********

All the Best

Part B
How will you protect your idea with the help of Intellectual Property Rights (IPRs)?Discuss
some of the IPRs and with example.
Meaning
IPR are the legally recognized exclusive rights to creation of the mind.
Intellectual property (IP) refers to creations of the mind, such as inventions; literary and
artistic works; designs; and symbols, names and images used in commerce.
Its an intangible asset
Y do u protect IP
Company Value: IP or Intangible assets are responsible for over 75% of the Company Value in Fortune 500 firms
2) Entry Barriers: IP Rights help a business to generate entry barriers, capturing the value one creates to consumers, in a
given market.
3) Legal Monopoly: A Patent is a reward to the inventiveness and creativity of an inventor, which price is a legal monopoly to
commercially use your creation for 20 years
4) Advance of Man Kind: In exchange to a Patent Right, and inventor gives back to the public his knowledge, to be shared and
used for further improvement and the advance of mankind
5) Goodwill: A name or brand conveys all the goodwill of your product or service; A Trademark holds that Goodwill and leads
consumers to your original product or service
6) Avoid Freeriding: Competitors could free ride on unprotected successful brands, attracting your original consumers to their
non-original products or services

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7) Financial Leverage & Monetizing: One could monetized and IP asset in several ways. An IP right owner could license his
rights to 3er parties, growing his business internationally, generate franchises, transfer those rights and even leverage bank
loans, using their IP rights as collaterals.
8) Counterfeiting: A novel and attractive product could be copied, produced and commercialized as an imitation or counterfeit
of the original product. IP Rights help you stops those counterfeited product at the boarder by means of effective customs legal
actions, based in those original IP rights.
9) Works or Art: Creative artist and other professional could create works of art and share his creating with the world worryfree. He will be sure to be recognize as the creator and he and his successors will enjoy the financial benefits of potential
royalties deriving from that creation.
10) Avoid Infringement: Even though one chooses not to protect his product or service, that product / service name and or
technology, could be infringing some elses IP Right, which could end in law suits and the payment of heavy damages to the
other party.
Some IPRS
Patents (The Patents Act, 1970) :-

The Patent Act of 1790 was the first patent statute passed by the federal government of the United States. It was
enacted on April 10, 1790, about one year after the constitution was ratified and a new government was organized. The
law was concise, defining the subject matter of a U.S. patent as any useful art, manufacture, engine, machine, or
device, or any improvement thereon not before known or used.[1] It granted the applicant the "sole and exclusive right
and liberty of making, constructing, using and vending to others to be used" of his invention.
Copyrights
Copyright can be given for followings
Copyright is not given to idea but to expression of idea
1.

Original literary, dramatic, musical or artistic work;

2.

A cinematograph film

3.

A sound recording

Application to be made to Registrar of Copyrights at New Delhi

Term of copyright is 60 years from the beginning of the calendar year next following the year in which the author dies.
In co-author death of last author. For other it is also 60 years.
Compulsory License can be given under Section 31