business law exam

intellectual property

legal rights that protect creations of the mind ensuring that creators can benefit economically from their creations

Purpose:

• Protect creators.

• Encourage innovation.

• Prevent unauthorized use.

types:

• copyright- protects artistic work like books and music

  • usually automatically protected once created

• patents- protects inventions like medicine, tech

  • Requirements:

    • New

    • Useful

    • Inventive

• trademarks- protects brand identity, logo

• trade secrets- protect confidential business info like formulas, recipes, manufacturing methods

Intellectual Property Infringement

Occurs when someone uses IP without permission.

types- counterfeiting, piracy

Examples:

• Pirating software

• Copying books

• Counterfeit products

Sources of Commercial Law

1. constitution of the republic

2. Legislation – laws made by Parliament/Government.

3. Case Law (Judicial Precedent) – decisions made by courts.

4. Customs – practices accepted as legally binding.

5. Legal Doctrine – writings and opinions of legal scholars.

branches of law

• private law- regulates relations between private individuals.

  • ex: civil law, commercial law, family law, labor law

• public law- regulates relationship between individuals and the state.

  • ex: criminal law, constitutional law, administrative

sale and purchase contract

One party (seller) transfers ownership of goods to another party (buyer) for a price. so basically buying or selling something to another.

key elements-

• two parties( seller and buyer)

• goods( object of contract) must be something legal to sell

• price of the goods

• legal capacity of the parties

principles-

• mutual consent

• legality

• good faith

• Article 874 (CC) – Purchase and Sale:Defines this as a contract where one party transfers ownership of a thing to another for a specific price.

Types of Sale Contracts

Cash Sale

Immediate payment.

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Credit Sale

Payment later.

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Instalment Sale

Payment in portions.

negotiable instruments

A written document that guarantees payment of a specific amount of money and can be transferred from one person to another.

Characteristics

• Transferable.

• Holder can claim payment.

• definite amount

• Negotiable by endorsement or delivery.

• written

• unconditional

types:

• cheques

• bills of exchange

• promissory notes

cheque

An order to a bank to pay money from an account.

Parties:

• Drawer (person writing cheque)

• Drawee (bank)

• Payee (person receiving money)

bills of exchange

A written order directing one person to pay another person.

Parties:

• Drawer

• Drawee

• Payee

promissory note

A written promise to pay a specific amount.

Parties:

• Maker

• Payee

adv and disadvantages of negotiable instruments

Advantages

• Easy transfer of money

• Reduces need for cash

• Provides proof of payment

• Facilitates trade

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Risks

• Forgery

• Dishonoured cheques

• Fraud

• Theft

FRANCHISING

business arrangement where one party grants another the right to use its established business model, trademark, and operating system.

Parties:

Franchisor- Owner of business concept.

Franchisee- Person who buys the right to operate.

Features of Franchising:

• license of intellectual property

• trademark

• logo

• longterm contract

• Training and assistance provided by franchisor

• Business follows franchisor's methods.

Advantages for Franchisee

• Established brand

• Lower business risk

• Training

• Marketing support

Disadvantages for Franchisee

• Limited independence

• Franchise fees

• Strict rules

Advantages for Franchisor

• Expansion

• More revenue

• Brand growth

Disadvantages for Franchisor

• Reputation risk

• Monitoring costs

Franchise Agreement Contents

• Territory

• Duration

• Fees

• Training

• Quality standards

• Termination clauses