Name: Soon Woan Chyi

Student ID: DBS15032

Subject Code and Name: BHU401 , Business Law

Lecturer Name: Ms. Bahmini

Task 1
Explain statutory provisions on implied terms relating to the sale of goods and
services.
The law relating to sale of goods in Malaysia is principally governed by the Sales of
Goods Act (SOGA), 1957. The general principles that are related to the contracts, for
instance, offer, acceptance, consideration, apply to the contract of sale of goods and
the parties are free to agree on the terms which will govern their relationship.
According to Section 26 of SOGA 1957, the significance of determining the time
when property in goods passes to the buyer as the general rule says that the seller
bears the risk, vice versa. Passing of ownership does not necessarily mean passing of
possession and the other way around.
The statutory of implied terms main work is to protect the rights to every consumer
according to section14-17 of the Sales of Goods Act 1957.
Section 14 of the SOGA is divided into three parts, First of all, it states that an implied
term on the part of the seller which in the case of a sale, the seller has the right to sell
goods and in the case of agreement to sell, he will have right to sell the things at the
time when the property is to pass. It is an implied condition to the seller to make sure
that the buyer will enjoy the ownership and possession and use of the goods. If the
seller fails to satisfy the buyer, buyer has the right to reject the contract as the issue
constitutes an implied condition. Moreover, there is an implied warranty which the
buyer can enjoy the quit possession of the goods and if the seller fails to comply, the
buyer has the rights to claim for damages because it is being constituted as an implied
warranty. At the last part of the section 14 of SOGA states that there is an implied
warranty that the goods shall be free of charge or encumbrance in favor of any third
party not declared to the buyer before or at the time when the contract made.
Section 15 of the SOGA is on the sale of goods by description. It states that where
there is a contract for the sale of goods by description there is an implied condition
which the goods shall correspond with the description and if the sale is by sample and
also by description, it is not sufficient that the bulk of goods corresponds with the
sample if the foods do not correspond with the description.

Section 16 of SOGA, there is no implied condition or warranty as to the quality for

any particular purpose of goods, unless the buyer request the goods be reasonable for
an aim and the goods must be quality. The last section of implied terms is section 17
of SOGA, when dealing with goods by sample, it is required by the seller to make
sure that the goods must correspond with the sample. If the seller fails to do it, the
buyer has the right to reject the contract since the matter is being constituted as an
implied condition.

Task 2
Advise Mr Alan as to the rights and duties of an agent.

An agent is defined as a person employed to do any act for another or to represent

another in dealings with the third person under the section 135, Contract Act 1950.
The individual for whom such an act is done or who is to represented is called a
principal.
There are five type of agent that I would like to describe; broker, factor, commission
agent, Del credere agent and power of attorney.
A broker is an agent who is engaged to make contracts between two principals (as
counter parties) engaged in some aspect of trade, commerce or navigation. Cases:
Fowler v Holling (1872) LR 7 QB 616.
A factor is also called a mercantile agent, an agent who has more extensive power to
act for a principal than a broker possesses. At common law, the factor is an agent for
sale who is entrusted with possession of goods belonging to the principal for sale and
who sells the goods in the name of the agent without disclosing the name or existence
of the principal. Case reference: Baring v Corrie.
A commission agent is also called a commission merchant. Commission agents is an
agent appointed by a principal to sells goods or to buy goods on behalf of the
principal. Cases reference: Cassaboglou v Gibb (1883) 11 QBD 797.
A del credere agent is an agent who assumes a super-added duty to ensure the
principal is paid by the third party. Cases reference: Campbell v Kitchen Sons Ltd
(1910) 12 CLR 515.
Power of attorney is legal instruments under which principal confer authority on
agents to perform certain acts for the principal. Unlike most other agency
relationships, powers of attorney are governed by statute viz the Power of Attorney
Act 1949.
The rights and duties of an agent depends on express or implied terms of the contract
of agency. The rights and duties of an agent is laid down in sections 164 to 178 of
Contracts Act 1950:

Agents duty in conducting principals business section 164

Skill and diligence required from agent- section 165

Agents account to render proper accounts to his principal on demand- section

166

Agents duty to communicate with principal- section 167

Right of principal when agent deals, on his own account, in business of agency
without principals consent- section 168

Principals right to benefit gained by agent dealing on his own account in

business of agency- section 169

Agents right of retainer out of sums received on principals account- section

170

Agents duty to pay sums received on behalf of principal- section 171

An agents acts are binding on the principal if they are done within the agents
authority. If an agent does act which exceeds that authority so given, the principal
is not bound unless he adopts the unauthorized act.
An agents authority may be actual or apparent. Actual authority is authority
expressly given by the principal by orally or writing, or implied from the express
authority given, from the circumstances of the case, custom or usage of trade, and
the conduct of parties.
On the other hand, apparent or ostensible authority is that which is not expressly
given by the principal but which the law regards the agent as possessing although
the principal has not consented to his exercising such authority. Secret or private
restrictions on the authority of the agent do not affect a third party who does not
know of such restrictions and who has acted in good faith in relying on the agents
apparent authority.

Task 3
Explain the role of the Competition Commission within the context of
monopolies and anti-competitive practices.
Outline monopolies and anti-competitive practice legislation.
Monopolies law is a law that elevates to keep up market competition by managing
anti-competitive behaviour by organizations. Competition law is executed through
private and public enforcement. The main purpose of the Competition Act is to
advance an aggressive market competition environment and give a level playing field
to all players in the business sector, which in the process will squash anti-competitive
practices, for example, cartels and arrangements.
Anti-competitive practices are business, government and religious practices that avoid
or decrease the competition in a market. These consist dumping where a company
sells a product in a competitive market at a loss. Exclusive dealing is where a seller or
wholesaler is obliged by contract to only purchase from the contracted supplier. Price
fixing is which companies collude to set prices and effectively dismantling the free
market. Refusals to deal, for example, two companies agree not to use a certain
vendor. Dividing territories, an agreement by two companies to stay out of each
other's way and reduce competition in the agreed-upon territories. Limit pricing,
where the price is set by a monopolist at a level intended to discourage entry into a
market. (Ex. Licensing).Tying, where products that aren't naturally related must be
purchased together. Resale price maintenance, where resellers are not allowed to set
prices independently.
The role of the competition commission within the context of monopolies
It is the body which investigate the competition in the market. They have authority to
investigate the competition in the market. They regulated the competition act in the
market. They investigate the merger and other inquires. Competition act is replaced
the monopolies and mergers commission. It is known as the competition and market
authority from 2014. Treaty of amended the competition commission. Office of fair
trading it is helps in taking the decision and also published the information and
suggestion. They also deals with the suspecting breach is made by the firm. And they
also take the enforcement. The court examined the case and stated that company is in
the dominant position and make abuse of the position in the market by not supplying

the goods and services in the market and also imposes the various conditions upon the
consumers. They also charge different of price from the different consumer. The
decision of the competition commission is also defeated by the court in which it is
held firm is exempted of reason and limit.

Task 4
Identify and explain the different forms of intellectual property.
Intellectual property (IP) refers to the creation of the human mind which exclusive
right are recognized. Innovators, artistes and businessman are granted specific right to
several of intangible assets for certain duration. It is the prevention for the individual
original work and has the physical appearance. There are several laws and statute
which gives the protection to the intangible property.
Intellectual property act 2014 which regulated and deal with the intellectual property.
Intellectual property includes the various forms of property which are patent,
copyright, trademark and design. The work is automatically protected at the
international level. Patent is the protection of the invention. The inventor has full right
over the invention, they can use, sell the invention and also prohibited the use of the
patent by any other person without his permission. Trademark includes the various
symbols, marks, colours or any other which is capable for making the difference
between the goods or service of one business to another business. They are also
protected for the specific period of time. Copyright is the given for the original work
of the author. Design also protected under the design act like 3D functional designs.
The protection is given for the period of 15 years. In this case the imperial college of
London brain Steele one of the professor who make work on the fuel cell technology
which is beneficial for the society. He got an idea and he used the Ceramic,
Ceryiagadalin Oxide, electrolyte and incorporated in the fuel cell technology. This
technology will help in decreasing the temperature and it is reduced without making
use of hydrogen and precious metals.
The trade secrets are the design, practice, formula, instrument, process, recipes,
patterns or the ideas which are used by a group to gain financial advantage over its
competitor. The landlord of a trade secret does not own any right over anybody who
gains access to that secret separately but he can stop the use of trade secret by anyone
who has cultured it through the owner.