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International Business Law - 02

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International Business Law

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Table of Contents
Introduction ..................................................................................................................................... 3

Part 1 ............................................................................................................................................... 4

Overview of the Case Scenario ................................................................................................... 4

The specific legal issue ............................................................................................................... 4

Analysis of the relevant legal principles ..................................................................................... 5

Discussion on the outcomes and the legal issues ........................................................................ 6

Part 2 ............................................................................................................................................... 9

Overview of the Case Scenario ................................................................................................... 9

The different types of protection for the software ...................................................................... 9

Legal Intellectual Property principles ....................................................................................... 10

Part 3 ............................................................................................................................................. 12

Overview of the Case Scenario ................................................................................................. 12

Discussion on the specific legal issues ..................................................................................... 12

Conclusion .................................................................................................................................... 13

References ..................................................................................................................................... 14

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Introduction
The main reason for choosing business over a regular job is to earn an incredible profit but it’s not
easy to survive in the market. The company should think outside of the box and always maintain
business law and compliance (DiMatteo, 2018). Because today compliance become the main issue,
many businesses started to give priority to compliance and laws. Consumers have enough
knowledge of products and they want quality products. Many rules and regulations are developed
by different organizations like ILO, and WARP. The main target of these organization is
maintaining a good work environment and ensuring all the rights that employee is entitled to. This
assignment will be helped us to know how these laws work and are implemented along with
intellectual property by analysing more than one case. This report helps students to learn insight
into business law.

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Part 1
Overview of the Case Scenario
Ellie’s grandmother gives her an old painting as a token of love. She kept this painting carefully
for a long time. One day she decided to sell this painting to fulfilling her demand. So she
communicate with a lady named Memoona, who owned an art gallery and Ellie display the picture
(DiMatteo, 2018). This lady was amazed to see it and felt the artist is a renowned one and offered
5000 GBP for buying this. Ellie initially accepted the offer but she took the painting to Herve, who
is an art critic who told her the art is very precious and she might be earned 5000000 GBP by
selling this art. The next day Ellie refuses to continue the contact that she made earlier with
Memoona.

The specific legal issue


1 a) Contract is nothing but an agreement between two parties and that party presumes to consider
some legal obligation (Wilkinson, 2021). The contract is, in most cases, unofficial and not written.
A proper contract must be in a written form and should consider the below aspect.

Offer and acceptance

First, there need two persons for being a contract one will offer and the other party will accept the
offer. If this direction is followed initially the contract is made. After the agreement time, both
parties decide whether this would be written or not (DiMatteo, 2018). Both written and verbal
contract is correct.

Time of acceptance

When a proposal is made, the individual making the proposal isn't predicted to hold it available
permanently. Also, proposals don't exhale simply because they're not instantly acquired. They stay
available for a specific time or a date. If there is no such date then it should be a reasonable time.
Characteristics of the contract, industries, and both parties' acceptance are counted to set a
reasonable time (MacQueen, 2022). There would be a time limit, at this time any party can change
his mind and he would not be bound to say any specific reason. After the announcement of the

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cancellation, the contract would not be valid anymore. The contract would not be valid if any party
cancel it within an exact time.

In the context of the above situation, Ellie made a promise to sell the painting to the owner of the
art gallery Memoona. But that was not a written contract and above all Ellie refuse the contract
before the statutory time. Ellie initially accepted the offer of Memoona but when she started to
explore the painting and its actual price. She gets to learn that the price is more precious to sell it
at 5000 GBP. That’s the reason for the cancellation of the earlier contract (DiMatteo, 2018).
Statutory time plays an important role here any party can decline the agreement before this time
for any reason.

Analysis of the relevant legal principles


1b) Memoona owner of an art gallery and decided to arrange an art exhibition on the 2nd of
January of this year. In order to make the exhibition more captivating and colourful than other
normal art exhibitions, she hired a supplier named Eric. Eric was responsible to paint the entrance
of the art gallery as well as the installation of a new hitting system. Both parties decided on a
reasonable amount for the whole work and this is 10000 GBP and the deadline for completing the
work is 27th December (DiMatteo, 2018). Eric's supplier failed to finish his painting work on time
and completed it one day before the exhibition and also used an erroneous kind of paint that caused
a terrible toxic smell that float around the gallery. It was not possible to conduct the exhibition in
this gallery, so Memoona contacted the owner of another gallery but no one responded to her offer
and eventually she cancelled the whole pregame and received a huge amount of financial loss.
Memoona faced this huge loss because of the defective product so she refused to pay the contract
money to Eric's supplier. Eric's supplier failed to maintain all the rules of the contract but Memoona
breach the contract rules. Eric can fetch help to cover his losses by following legal advice.

A business contract is more than an agreement between two parties. Both parties have some
obligation toward the contract (MacQueen, 2022). If any party is unable to execute his obligation
then it would be a breach of contract. There are some specific reasons for breaching the contract
and are. When a party fails to perform his duty then it calls a breach of contract there is some
reason for breaching.

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• If any party fails to perform his contractual duty
• Should be maintained quality and standard of work.
• If any party accomplishes duty after a specific period.

Individuals and small enterprises are harmed by a breach of contract. Breach of the contract, not
just financial loss harms the face value of the company, time and effort and also caused a mental
breakdown (MacQueen, 2022). A breach of contract which is caused for not maintaining a specific
period is named a substantial breach. In the above case, Memoona faced the same situation but
when she refused to pay Eric it violate Eric's rights. Though Eric could not accomplish his duty as
per the contract, Memoona can’t refuse to pay. Eric should discuss a consultant and lawyer to take
back his contractual right and should fight legally. He can go to court and prove that his loss is
more than Memoona's. Eric can use these technique to get back his payment.

• Mediation
• Statutory demand
• County court claims
• Bankruptcy proceeding
Mediation

Is a simple legal way to draw a conclusion. It’s easier than to go court and not so expensive(Ali
and Anwar, 2021). This legal technique can save time of Eric. The outcome of this legal technique
would be full or partial payment.

Statutory Demand

It’s involved to write a formal latter to other party and convening them to conform their due. If
mediation technique fail, Eric can use this legal way to get back his money(Agarwal and
Zou,2021).

Memoona will be entitled to pay Eric’s money within 21 days of receiving the letter.

Discussion on the outcomes and the legal issues


1c) Memoona the owner of the art gallery made the decision not to pay Eric’s payment. Because
of her financial losses, Eric's supplier provided defective products and caused the horrific smell
and the programme kept revoked for the effects (MacQueen, 2022). Memoona’s financial loss is
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around 5000000 GBP but can’t be measured as stature loss. As Memoona decided to redress Eric
she is mandated with legal advice and a consultant or a lawyer to fight the situation. But this is a
complex situation reverse problem can be raised. Memoona needs to be prepared to fight every
situation.

Tort law can play the role of savvier for Memoona. The tort may comprise a material or cognitive
damage, deterioration or defeat of belongings, a monetary flop, and so on. Illustrations of damages
include the defeat of past or coming revenue. The compensation by way of deterioration is granted
by the Court (Dimitrova and Mihaela, 2020). The injured group will strive for repayment through
a Court procedure. Penalty under tort may originate due to delinquency, purposeful oversight to
act where the person has a responsibility to perform or a violation of statutes.

The Tort of Negligence

Negligence means not doing the work properly but not intentionally. When two parties come into
agreement, one party is entitled to payment and the other is produced quality products or services
(Dimitrova and Mihaela, 2020). But by any chance producer fail to provide a standard product and
it caused financial loss to another party than its negligence tort.

Intentional tort

When a party accept the offer but intentionally does not provide standard products or tries to harm
the other party and become the reason for financial loss, it would be called intentional tort. It's
more harmful than negligence tort. Negligence tort is related to the financial laws of the other party
and breaches the contractual rules. But one party can’t sue the other until the party below elements.

• The duty of care


• The defendant breached that duty of care
• They suffered loss or erosion as a direct impact of the violation.

Duty of care

Mainly two parties are involved to make a contract. Two parties have their duty, if one is
responsible to pay then the others would be responsible to do the work properly (DiMatteo,2018).

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Breach of the duty of care

The main rule of a valid contract is a mutual purpose and both parties can gain benefit from the
contract (Queroda, 2020. But sometimes the contract may go wrong and the purpose may not be
fulfilled and this is called a breach of duty and care.

Suffered a direct loss

If any party suffers a direct financial loss for breaching the duty and care then this party has the
right to take legal action against this party. The direct loss must be financial any other type of loss
cannot be counted. However, sometimes an additional loss can be more than financial (Queroda,
2020).In the above context, we see Memoona lose almost 5000000 GBP for the wrong paint chosen
by Eric. If she proves her loss to the court, Eric's supplier must be sued by the court.

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Part 2
Overview of the Case Scenario
An untouched type of company named Hiades Ltd is involved to evolve an ingenious solution to
unify the administrative and operating systems. It has become well known in no time for its unique
nature. This company is trying to solve a newly create a problem. Many European ports have
recently used this software. As it is intellectual property many global companies try to copy and
sell the software without any legal obligation (Queroda, 2020). Hiades need to cope with this
situation as soon as possible, this assignment is all about this concern.

The different types of protection for the software


2 a) Intellectual property is known as the oil of the 21st century. Intellectual property aid as an
instructor of the owner or the company. Intellectual property is discovered for solving the business
problem and helping the owner not to face loss for any illegal reason. Some greedy businessmen
always looking for the opportunity to copy other, intellectual property work as a barrier to these
voracious people. World intellectual property organizations are entitled to list all intellectual
property. Intellectual property mainly saves genius people and their inventions. Copyright, trade
mark, patent and another type of intellectual property are highly used.

Copyright is such intellectual property that helps genius people to save their innovation
(MacQueen, 2022). Copyright design act1998 is followed by many countries as well as the United
Kingdom. Copyright is one of the intellectual property that provides the precaution to the software
of a computer, a new book, a new song or any other innovation. Owners have the right to how they
use their property, can rent the software, or make the software generalized for global usage.
According to the above scenario, some other companies copy the software of Hiades and put them
into a great financial loss. If the company registered the software into the list of WIPO, they
wouldn’t face this horrible situation. The time limit of this intellectual property is more than other
properties, it gives a company 70 years to use this software in such way as the company wants.

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Legal Intellectual Property principles
2b) As the Hiades Company is an innovative software company and trying to introduce much new
software in recent years. It must consider an intellectual property that will help to survive in the
market.

Copyrights

It’s an incredible intellectual property, it mainly works to aid brainier people and their creations.
As it’s an era of technology, people, now and then invent several technological types of equipment
as well as computer software. As Hiades is a software company that invents very helpful software
is required to register the software under the copyright act before launching in the market
(MacQueen, 2022). This company neglects the matter and does not register the software and now
facing a terrible problem.

Trade secret

A trade secret is a valuable safeguard for a product of a company. A product that is new and unique
and recently innovated by the company. As the company innovate this product, they don't give the
permit to any other to copy or sell their innovative product. A trade secret is included in the
processes and formulation of the product. Two elements are required to maintain trade secret
protection.

• Methods of inventing products or software should not be unlocked in front of the


world.
• The company must take a step to protect its secrete.

Patents

Patents are complete alliances of exploiting a certain creation or fiction (Barton and Haapio, 2022).
These intellectual property tools are commonly assessed as a form of a term for exertions and time
disbursed in the method of the innovation of this invention. Patents are influential mechanisms
that assist in the safety of a vast capacity of components of the exact program and cannot be
safeguarded under the other form type of intellectual property. A patent is the first intellectual
property, now it’s used worldwide. Not only an innovative product but also used a generalized
product. The time limit of the patent is seven years but it can be revived.

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As Hiades is a software company so it should register under the copyright act 1988 and hope for
attaining benefits. As copyright helps the genius to protect their innovation mainly software and
computer programme, books are registered under the copyright act.

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Part 3
Overview of the Case Scenario
A prominent multinational company in the aerospace industry is the Death star group. Recently it
work on carbon intensity and keeping a record of greenhouse gas emissions from its organization.
Last AGM meeting they shared the news to shareholders that their company is directly involved
in climate change and trying to find solutions. Now they are in trouble because this information
can be licked any time their reputation is in danger (Barton and Haapio, 2022). As they disclose
their very confidential information they need to be very cautious and can play a mind game and
turn the negative consequences into positive ones. But it would be very difficult if they should
ready to solve any sudden situation. Death star group did a good job but they need to face many
consequences.

Discussion on the specific legal issues


3 a) Environmental Compliance is an extensive term containing a variety of sustainability and
instructing fulfilling various legislations to distinct factors of the climate. Environmental
protection agency is working all over the world, clean air act and clean water act is explored in the
UK (Wilkinson, 2021). In the above scenario, the company is very cautious about the environment
and always records how their work impact negatively in the climate. In the recent database, they
find that their work is mostly responsible for climate change so they share the risk with the
shareholder. As they unlock their confidential news they may face threats in upcoming years.
Competitors will use it as their weapon and new investors may not show interest after hearing the
news. But it helps the stakeholder take proper efforts to fight the situation. Their transparency also
helps them in the great future. But some consequences it may face. Competitors can take legal
action against the company as their products impact the environment mostly. As they make the
record, it also can be distributed and will work as proof in court. Investors and stakeholders can
lose interest in the project.

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Conclusion
Business in recent years is not limited to earning a profit, it also involves doing business legally
and following the laws and social compliance. Recent climate change has had a great effect on
companies (Barton and Haapio, 2022). The company need to be more cautious than ever. As it's a
globalized era people have information from all over the world. They do not compromise the
quality and rights of a human being. if they learn to know the company breached the right of their
employee, they will not support the company. So doing business in recent years become tough. A
business contract, laws of contract, consequences of the breach of laws. How to use the intellectual
property and why it is so essential and the consequence of publishing confidential matters all those
things are discussed in this paper. This paper help a student to learn new aspects of business what
to do or not and how to handle a critical situation.

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References
Barton, T.D., Haapio, H., Passera, S. and Hazard, J.G., 2022. Reframing contract design:
integrating business, legal, design, and technology perspectives. In Research Handbook on
Contract Design (pp. 33-54). Edward Elgar Publishing.

DiMatteo, L.A., 2018. Strategic contracting: contract law as a source of competitive advantage.
American Business Law Journal, 47(4), pp.727-794.

MacQueen, H.L., 2022. Third Ole Lando Memorial Lecture: European Contract Law in the Post-
Brexit and (Post?)-Pandemic United Kingdom. European Review of Private Law, 30(1).

Srivastava, S. and Dhiman, N., 2022. Does Green HRM Practices Infuse Green Behaviour Among
Hotel Employees? The Mediating Role of Psychological Green Climate. Vision,
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Wilkinson, M., 2021. Globalization. The Wiley Blackwell Companion to the Study of Religion,
pp.277-288.

Lechner, Frank J., and John Boli, eds. The globalization reader. John Wiley & Sons, 2020.

Hiscox, M. J. (2020). International trade and political conflict. Princeton University Press.

Singh, R. (2020). Importance of Data Analytics in International Trade: A Case of Indian Cotton.
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Dimitrova, Mihaela. "Of discovery and dread: The importance of work challenges for international
business travelers' thriving and global role turnover intentions." Journal of Organizational
Behavior 41, no. 4 (2020): 369-383.

Leung, Doris YL, Engle Angela Chan, Arkers KC Wong, Sonia Reisenhofer, Marie Stenberg,
Chan Pui Sze, K. H. Lai, Enrique Cruz, and Elisabeth Carlson. "Advancing pedagogy of
undergraduate nursing students' cultural awareness through internationalization webinars: A
qualitative study." Nurse Education Today 93 (2020): 104514.

Queroda, P., 2020. INTERNATIONALIZATION PERSPECTIVE OF PANGASINAN STATE


UNIVERSITY: OPEN UNIVERSITY SYSTEMS. Turkish Online Journal of Distance Education,
21(3), pp.27-35.

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Ali, B.J. and Anwar, G., 2021. The mediation role of change management in employee
development. Ali, BJ, & Anwar, G.(2021). The Mediation Role of Change Management in
Employee Development. International Journal of English Literature and Social Sciences, 6(2),
pp.361-374.

Agarwal, S., Qian, W. and Zou, X., 2021. Thy neighbor's misfortune: Peer effect on
consumption. American Economic Journal: Economic Policy, 13(2), pp.1-25.

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