Legal Aspects of Business

1. CONSUMER PROTECTION ACT, 1986
 Enacted to provide for the better
protection of the interest of consumer
 Act applies to whole of India except
Jammu and Kashmir
 Chapter I, II and IV came into force on
15.4.1987. Chapter III came into force on
1.7.1987
 The act was amended in 2002 and the
amendments came into force w.e.f. 15th
March 2003.

2. WHAT IS A COMPLAINT?
“Complaint” means any allegation in
writing made by a complianant that :
I. An unfair trade practice or a restrictive trade
practice has been adopted by any trader or
service provider;
II. The goods bought by him or agreed to be
bought by him suffer from one or more defects
;
III. The services hired or availed of or agreed to be
hired or availed off by him suffer from
deficiency in any respect;

3. IV. A trader or service provider as the case may
be has charged for the goods or for the
services mentioned in the complaint, a price
in excess of the price
a) fixed by or under any law for the time being
in force;
b) displayed on the goods or any package
containing such goods;
c) displayed on the price list exhibited by him by
or under any law for the time being in force;
d) agreed between the parties .

4. V. Goods which will be hazardous to life and
safety when used are being offered for sale
to the public –
a) In contravention of any standards relating to
safety of such goods as required to be
compiled with, by or under any law for the
time being in force;
b) If the trader could have known with due
diligence that the goods so offered are unsafe
to the public;

5. VI. Service which are hazardous or likely t be
hazardous to the life and safety of the
public when used, are being offered by the
service provider which such person could
have known with due diligence to be
injurious to life and safety.

6. WHO IS A CONSUMER ?
 Any person who buys goods or avails
services for consideration
 Consideration may be fully paid, partially
paid or fully promised to be paid or partially
promised to be paid
 Any body who uses the goods or services
with the consent of the consumer

7.  Legal heir of consumer in case death of consumer
 Does not include any person who buys goods for
resale or commercial purpose and services for
commercial purpose
 However any person who buys goods for
commercial use but exclusively for his livelihood by
means of self employment is a consumer.

8. WHAT IS A DEFECT ?
Fault
Imperfection
Shortcoming In the
 Quality
 Quantity
 Potency
 Purity Or
 Standards
Which is required to be maintained by or under any
law for the time being in force

9. WHAT IS A DEFICIENCY ?
Fault
Imperfection
Shortcoming Or
Inadequacy In the
Quality
Standard and
Manner of
performance
Which is required to be maintained by or under any
law for the time being in force

10. WHAT IS A SERVICE?
“Service” means service of any description, which is
made available to potential users and includes, but not
limited to the provisions of the facilities in connection
with
1) banking 2) financing 3) insurance 4) transport
5) processing 6) supply of electrical or other energy
7) boarding or lodging or both 8) house construction
9) entertainment 10) amusement or
11) the purveying or new or other information
• But does not include the rendering of any service free of
charge or under a contract of personal service

11. CONSUMER DISPUTE REDRESSAL
AGENCIES
1) A Consumer Dispute Redressal Forum at the District level.
2) A Consumer Dispute Redressal Commission at the State
level.
3) A National Consumer Dispute Redressal Commission at
national level.

12. JURISDICTION

13. FILING OF COMPLAINTS
A complaint may be filed by
a) The consumer to whom the goods are sold or services
are provided
b) Any recognised consumer association
c) One or more consumers with same interest

14. POWER OF CIVIL COURT TO DISTRICT FORUM
The District Forum shall have the powers of Civil Court
while trying a suit in respect of the following matters ;
a) The summoning and enforcing attendance of any
defendant or witness and examining the witness on oath.
b) The discovery and production of any document or other
material object producible as evidence.
c) The reception of evidence on affidavit
d) The requisition of the report of the concerned analysis or
test from the appropriate laboratory of from any other
relevant source.
e) Any other matter which may be prescribed.

15. RELIEF TO THE COMPLAINANT ?
IF THE COMPLAINT IS PROVED THE FORUM SHALL ORDER
a) to remove defect pointed out by the appropriate
laboratory from the goods in question;
b) to replace the goods with new goods of similar description
which shall be free from any defect;
c) to return to the complainant the price, or , as the case may
be, the charges paid by the complainant;
d) to pay such amount as may be awarded by it as
compensation to the consumer for any loss or injury
suffered by the consumer due to negligence of the
opposite party;
e) To remove the defect in goods or deficiency in the services
in question.

16. f) to discontinue the unfair trade practice or the restrictive
trade practice or not to repeat them;
g) not to offer hazardous goods for sale;
h) to withdraw the hazardous goods from being offered for
sale;
i) to cease manufacture of hazardous goods and to desist
from offering services which are hazardous in nature;
j) to issue corrective advertisements to neutralize the effect
of misleading advertisement at the cost of the opposite
party responsible for issuing such misleading
advertisement;

17. APPEAL
 shall be filed within thirty days.
 Delay in filing appeal may be condoned if there is sufficient cause.

18. DISMISSAL OF FRIVOLOUS OR VEXATIOUS
COMPLAINTS
 Where a complaint instituted before the District
Forum, the State Commission or the National
Commission, is found to be frivolous or vexatious, it
shall, for reasons to be recorded in writing, dismiss the
complaint and make an order that the complainant
shall pay to the opposite party such Cost, not
exceeding ten thousand rupees, as may specified in the
order.

19. NOTE ON CONSUMER PROTECTION ACT,
1986
• A person may be consumer of goods, or services. When I
purchase a fan, a gas stove or a refrigerator, I could be the
consumer of goods.
• When I open a bank account, take an insurance policy, get
my car repaired, I could be the consumer of services.
• The consumer protection Act, 1986 tries to help a consumer
when for example, the goods purchased are defective or the
services rendered to him are subject to so deficiency.

20. • Prior to the consumer Protection Act, 1986 for
any consumer complaint one had to go to an
ordinary Civil Court. He had to engage a
lawyer, pay the necessary fee, and be
harassed for years or decades before any
outcome, positive or negative, was there in
that litigation.
• Under the Consumer Protection Act, no Court
fee has to be paid and the decision on the
complaint is much quicker

21. INFORMATION
TECHNOLOGY
ACT

22. • In order to keep pace with the changing
generation, the Indian Parliament passed
Information Technology (IT) Act, 2000.
• The Act aims at providing legal recognition
for transactions carried out by means of
electronic data interchange and other means
of electronic communications commonly
referred to as…

23. • Aims at facilitating electronic filing of
documents with the government agencies.
• Called the Information Technology Act, 2000.
• Came into force in June,2000
• Extends to whole of India and also to people
who contravene the provisions of the act
outside India.

24. Applicability
• The Act applies to the whole of India. It also
applies to any offence committed outside
India by any person.
• Not applicable…

25. DIGITAL SIGNATURES:
LEGITIMACY AND USE
• The Act has adopted the Public Key
Infrastructure (PKI) for securing electronic
transactions. A digital signature means an
authentication of any electronic record by a
subscriber by means of an electronic method

26. • Thus a subscriber can authenticate an electronic
record by affixing his digital signature.
• A private key is used to create a digital signature
whereas a public key is used to verify the digital
signature and electronic record.
• They both are unique for each subscriber and
together form a functioning key pair.

27. • Further, the Act provides that when any
information or other matter needs to be
authenticated by the signature of a person, the
same can be authenticated by means of the
digital signature affixed in a manner prescribed by
the Central Government.
• The Act also gives the Central Government
powers:
• a) to make rules prescribing the digital signature

28. b) the manner in which it shall be affixed
c) the procedure to identify the person affixing
the signature
d) the maintenance of integrity, security and
confidentiality of records or
e) payments and rules regarding any other
appropriate matters

29. • These signatures are to be authenticated by
Certifying Authorities (CAs) appointed under the
Act. These authorities would inter alia, have the
license to issue Digital Signature Certificates
(DSCs). The applicant must have a private key that
can create a digital signature. This private key and
the public key listed on the DSC must form the
functioning key pair.

30. • Once the subscriber has accepted the DSC, he
shall generate the key pair by applying the
security procedure. Every subscriber is under
an obligation to exercise reasonable care and
caution to retain control of the private key
corresponding to the public key listed in his
DSC.

31. • The subscriber must take all precautions not
to disclose the private key to any third party. If
however, the private key is compromised, he
must communicate the same to the Certifying
Authority (CA) without any delay.

32. DISPATCH & ACKNOWLEDGEMENT-
ELECTRONIC RECORDS
• All electronic records sent by an originator, his
agent or an information system programmed
by or on his behalf are attributable to him

33. • Where the originator has not agreed with the
addressee that the acknowledgement of receipt
of electronic data shall be accepted in a specific
manner, the acknowledgement may be given by
1. Any communication by the addressee,
automated or otherwise; or
2. Any conduct of the addressee, sufficient to
indicate to the originator that the electronic
record has been received

34. 3. Where the originator had stipulated that it
shall be binding only on receipt of
acknowledgement, then unless
acknowledgement has been received, it shall
mean that the electronic data was never sent.

35. • Unless otherwise agreed the time of receipt
of electronic record shall be determined as
follows:
1. when the addressee has designated a
computer resource for the purpose of
receiving electronic records-
– receipt occurs at the time when the electronic
record enters the designated computer
resource; or

36. • if the electronic record is sent to a resource that is
not designated, receipt occurs when it is retrieved
by the addressee

37. Intellectual property
• Copyright
• Industrial Property
• a.Trademarks
• b. Patent
• c. Industrial designs

38. Why to protect IP ?
• Tangible property
-Land, houses, estates,car
• Intangible property
-intellectual property
-Intangible wealth, easily appropriated and
reproduced,once created the marginal cost of
reproduction is negligible

39. The role of IP Act for intangible
property
1. economic rights of creators
2.commercial exploitation of owner of IP
3.capital expenditure
4.transfer of technology
5.cultural development

40. IP as a property
• Can be sold
• Can be bought
• Can be lease or rent
• Can pass under a will
• Can be assigned

41. Protection for Copyright
• Protection given by law for a term of years to
the composer, author etc… to make copies of
their work..
• Work include literary, artistic, musical, films,
sound recordings, broadcasts.
• Commercial and moral rights.

42. Protection for trade marks
• Commercial exploitation of a product
• To identify the product, giving it a name
• “mark” includes a device, brand, heading, label,
ticket, name, signature,word, letter, numeral or
any combination.
• Perform certain function such as indication of
quality,identifying a trade connection
• Does not include sound or smell
• Choose the correct mark

43. Protection for patent
• Basic idea of granting a patent
• “ the applicant applied to the government for
the right of patent and in return for the
monopoly given he must disclose everything
about the invention in the patent document” (
the description)
• Duration 20 years.

44. • Patent for invention
• Patent can be applied for a product or a
process.
• Patentable invention must be new,involves an
inventive step and industrially applicable
• Priority date- first to file

45. Protection for industrial designs
• Protection for industrial designs that are new
or original
• Design are feature or shape, configuration,
pattern
• The design must be applied to an article
• The design must be applied by an industrial
process.
• Appeal to the eye.