MB 0051 Legal Aspects of Business

Contents Unit 1 Law Unit 2 Law of Contract Unit 3 Contracts of Guarantee and Indemnity Unit 4 Contracts of Bailment and Pledge Unit 5 Contracts of Agency Unit 6 Law of Partnership Unit 7 Law of Sales of Goods Unit 8 Law of Negotiable Instruments
Edition: Spring 2010 BKID B1207 25 May 2010
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Unit 9 The Consumer ProtectionAct Unit 10 The Competition Act, 2002 Unit 11 The Foreign Exchange Management Act, 1999 Unit 12 Companies Act, 1956 Unit 13 Information Related Laws Unit 14 The Patents Act Unit 15 The Copyright Act Acknowledgements, References & Suggested Readings

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Dean Directorate of Distance Education Sikkim Manipal University Board of Studies Chairman HOD Management & Commerce SMU DDE Additional Registrar SMU DDE Controller of Examination SMU DDE Dr. T. V. Narasimha Rao Adjunct Faculty & Advisor SMU DDE Prof. K. V. Varambally Director Manipal Institute of Management Manipal Content Preparation Team Mr. S. S. Gulshan Adviser, Author, Educational New Delhi Content Editing: Mr. Jahir Uddin Excel Books New Delhi 110 028 Content Modification & Editing Instructional Designing Mr. Sharad Chaurasia Excel Books New Delhi 110 028 Language Editing: Ms. Neelam Singh Editor Content Editing: Saritha Devi Yerramsetti Lecturer, Management and Commerce Deptment, Sikkim Manipal University, DE, Bangalore

Mr. Pankaj Khanna Director HR, Fidelity Mutual Fund Mr. Shankar Jagannathan Former Group Treasurer Wipro Technologies Limited Mr. Abraham Mathew Chief Financial Officer Infosys BPO, Bangalore Ms. Sadhna Dash Ex-Senior Manager, HR Microsoft India Corporation (Pvt.) Ltd.

Edition: Spring 2010 Printed: May 2010 This book is a distance education module comprising of collection of learning material for our students. All right reserved. No part of this work may be reproduced in any form by any means without permission in writing from Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim. Printed and Published on behalf of Sikkim Manipal University of Health, Medical and Technological Sciences, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal Universal Learning Pvt. Ltd., Manipal 576 104. Printed at Manipal Press Limited, Manipal.

SUBJECT INTRODUCTION
Legal Aspects of Business (MB 0051) Law defines all aspects of business practices. Business law is the body of law that governs business and commercial transactions. It is often considered to be a branch of civil law and deals with issues of both private law and public law. In the context of liberalization and globalization of the Indian economy, law has become even more central in regulating and fostering competition. Thus, it has been an important subject from management point of view. This course gives a detailed presentation of topics that have shaped and continue to mould our legal studies discipline. This course covers the important contracts and laws in a detailed yet simplistic manner for better understanding of students. In addition to the laws and contracts, there are various acts that should be known to the students who wish to gain sound knowledge of this subject. Some of these acts like The Consumer Protection Act, Competition Act-2002, Companies Act-1956, Patent Act, Copyright Act etc, are dealt with in substantial detail in this course. Since, this course is meant for management students, every attempt has been made to connect the subject of law with other relevant fields especially business. In this SLM you will be introduced to Legal Aspects of Business and other related concepts. This courseware comprises 15 units. A brief description of the units is given below: Unit 1: Law Explains the nature of law, Describes sources of Indian law, Defines business legal environment, Explains mercantile law, Analyzes essentials of law Unit 2: Law of Contract Describes the essentials of a valid contract, Defines capacity of contract, Explains acceptance, Describes remedies for breach of contracts, Defines consent

Unit 3: Contracts of Guarantee and Indemnity Defines contract of guarantee, Describes types of guarantee, Explains rights and obligations of creditor, Defines contract of indemnity Unit 4: Contracts of Bailment and Pledge Describes bailment and its types, Explains duties and rights of bailor, Defines pledge, Explains pledge by non owner Unit 5: Contract of Agency Defines agent, Describes types of agencies, Explains duties and rights of agent, Explains power of attorney Unit 6: Law of Partnership Explains partnership nature, Defines partnership deed, Explains relations of partners to others, Describes dissolution Unit 7: Law of Sales of Goods Defines contract of sale, Explains classification of goods, Describe conditions and warranties of goods, Explains unpaid seller and his rights, Defines sale by auction Unit 8: Law of Negotiable Instruments Defines some negotiable terms, Describes promissory notes, Analyzes holder, Explains presentment, Describes paying banker Unit 9: The Consumer Protection Act Defines important terms related to consumer, Explains rights of consumers, Analyzes remedies available for consumer Unit 10: The Competition Act, 2002 Defines various term related to competition act, Describes prohibition of anti-competitive agreements, Explains competition commission of India, Describes miscellaneous provisions Unit 11: The Foreign Exchange Management Act, 1999 Describes provisions relating to an authorized person, Explains regulation and management of foreign exchange, Defines directorate of enforcement, Explains miscellaneous provisions

Unit 12: Companies Act, 1956 Describes formation of company, Defines shares and directors, Explains meetings and resolutions, Defines auditor, Describes how to winding-up a company Unit 13: Information Related Laws Explains right to information act, Describes benefits of RTI, Explains information technology act, Unit 14: The Patents Act Defines patents, Describes application of patents, Explains provisions of secrecy of certain inventions, Describes lapsed patents restoration Unit 15: The Copyright Act Defines copyright, Describes copyright societies, Explains international copyrights, Describes civil remedies for infringement Objectives of studying the subject After studying this subject, you should be able to: Analyse and discuss, matters related to mercantile law. Utilise beneficially, the law of contract. Discuss and use contracts such as those of guarantee & indemnity, bailment & pledge and agency, Develop partnership deeds, maintain good relations with partners and reach successful dissolution if the need be. Deal with Government machinery regarding legal aspects of business. Familiarise with significant laws related to complex issues and act accordingly. Evolve as a business professional aware, concerned and careful about consumer rights/protection.

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