Mittal school of Business

Lovely professional
university
Course Code: - BSL-201 Course Name:- Legal Aspects of
Business.

Date of allotment:-13 /3/2021 Date of submission:- 28/3/2021

TOPIC :-Sales and goods Act; Consumer protection

Act.

Assignment by :- Saqlain Mustaqe(11906854; A22;

Q1910)

Submittted to:- Hena Sharma

Declaration:- i declare that this assignment is my

individual work.I have not copied it from any other
students work or from any other source except where
due acknowledgement is made explicitly in the text, nor
has any party been written for me by any other person.
 Consumer Protection Act:-
The Consumer Protection Act, implemented in
1986, gives easy and fast compensation to consumer
grievances. It safeguards and encourages consumers to speak
against insufficiency and flaws in goods and services. If traders
and manufacturers practice any illegal trade, this act protects
their rights as a consumer. The primary motivation of this
forum is to bestow aid to both the parties and eliminate
lengthy lawsuits.
This Protection Act covers all goods and services of
all public, private, or cooperative sectors, except those
exempted by the central government. The act provides a
platform for a consumer where they can file their complaint,
and the forum takes action against the concerned supplier and
compensation is granted to the consumer for the hassle he/she
has encountered.

Consumer Rights and Responsibilities:-

 Right to Safety:- Before buying, a consumer can insist on
the quality and guarantee of the goods. They should
ideally purchase a certified product like ISI or AGMARK.
 Right to Choose:- Consumer should have the right to
choose from a variety of goods and in a competitive price.
 Right to be informed:-The buyers should be informed
with all the necessary details of the product, make her/him
act wise, and change the buying decision.
 Right to Consumer Education:- Consumer should
be aware of his/her rights and avoid exploitation.
Ignorance can cost them more.
 Right to be heard:- This means the consumer will get
due attention to express their grievances at a suitable forum.
 Right to seek compensation:- The defines that the
consumer has the right to seek redress against unfair
and inhumane practices or exploitation of the consumer.

Responsibilities of the Consumer:-

 Responsibility to be aware :– A consumer has to be
mindful of the safety and quality of products and
services before purchasing.
 Responsibility to think independently:– Consumer
should be well concerned about what they want and
need and therefore make independent choices
 .Responsibility to speak out:- Buyer should be fearless to
speak out their grievances and tell traders what they
exactly want.
 Responsibility to complain:- It is the consumer’s
responsibility to express and file a complaint about their
dissatisfaction with goods or services in a sincere and
fair manner.
 Responsibility to be an Ethical Consumer:- They
should be fair and not engage themselves with any
deceptive practice.

Duties of a consumer:-
 On purchasing of goods or hiring of any services, it is the
duty of the consumer to pay for the same.
 While purchasing something it is his duty to check weights,
balances, prices etc. and also to give a careful reading to the
labels.

 it is the duty of the consumer to update himself about the

various consumer protection schemes.

 Duty to be careful while purchasing and not to fall in the trap

of misleading information and advertisements.

 It is the duty of the consumer to not purchase anything from

the black markets.

 It is the duty of the consumer to be aware of his rights and

duties and also spreading the awareness of the same among
others.

 It is the consumers’ duty to file a complaint if the goods

which he purchased are defective.

 Each and every consumer should secure the bills of the goods
purchased or the services availed so that if in the future he
finds the goods or services to be defective he can easily file a
complaint against the same and can prove it.
Central Consumer Protection Authority:-
Central Consumer Protection Authority has
been set up to promote, protect and enhance consumer rights.
The headquarter shall be in NCR and regional offices shall be
decided by the government. The authority shall regulate the
violation of consumer rights, unfair trade practices, and
misleading advertisements. There shall be an investigation wing
headed by Director general.

Of fences and Penalties:-

Penalties for non-compliance of orders
District/State/National Central Authority
Commission
Imprisonment from 1 month Fine up to Rs. 20,00,000/-
to 3 years
Fine from Rs. 25,000/- to Rs. Fine up to Rs. 20,00,000/-
1,00,000 /
Or Both Or Both

Punishment (Products Containing Adulterant)

Does not result in injury Imprisonment: Up to 6 months
Fine: Up to Rs. 1,00,000/-

Injury not amounting to Imprisonment: Up to 1 Year

grievous hurt Fine: Up to Rs. 3,00,000/-

Injury resulting in grievous Imprisonment: Up to 7 years

hurt Fine: Up to Rs. 5,00,000/-

Death of Consumer Imprisonment: 7 years to life

Fine: Up to Rs. 10,00,000/-
Challenges in consumer protection Act:-
Central Consumer Protection Authority (CCPA)
has been set up to promote, protect and enhance consumer
rights. The headquarter shall be in NCR and regional offices
shall be decided by the government. The authority shall
regulate the violation of consumer rights, unfair trade practices,
and misleading advertisements. To enforce and enhance this
authority will be dedicated task for the government and its
implication will certainly be very important for 2019 Act. While
it is laudable initiative but it is unclear as to how this authority
will function and certain function relating to investigations and
inquiries.
There is an overlap between the functions of director General
while considering the investigative wing and search and seizure
functions. CCPA is empowered to order recall of goods,
reimburse price and issue directions and penalize
manufacturers or endorsers. Interestingly, appeal against such
orders can only be preferred before the national Commission.
The circumstances or the criteria under which National
Commission shall entertain such cases is till unclear. It is
unclear whether the existing cases will be transferred on
account of change in pecuniary jurisdiction. However, there are
speculations that only fresh cases shall fall under the new
jurisdiction.

Conclusion:-The Consumer Protection Act has proved to be

a helping hand to the consumers and protected them from
being exploited in the hands of huge companies and famous
traders. The traders and the firms are still working on how to
make huge profits and one of the ways is by exploiting the
consumer. Corresponding to this the Legislature and the
Judiciary are making amendments in the act from time to time
but the consumer. himself needs to be careful and aware of the
people in the market.
 Sales of good Act:-
The Sale of Goods Act, 1930 governs the contracts
relating to sale of goods. It applies to the whole of India except
the State of Jammu & Kashmir. The contacts for sale of goods
are subject to the general principles of the law relating to
contracts i.e. the Indian Contact Act. A contract for sale of
goods has, however, certain peculiar features such as, transfer
of ownership of the goods, delivery of goods rights and duties
of the buyer and seller, remedies for breach of contract,
conditions and warranties implied under a contract for sale of
goods, etc. These peculiarities are the subject matter of the
provisions of the Sale of Goods Act, 1930.

FORMATION OF CONTRACT OF SALE:-

A contract of goods is a contract whereby the seller transfers or
agrees to transfer the property to goods to the buyer for a
price. There may be a contract of sale between one part-owner
and another Sec. 4(1). A contract of sale may be absolute or
conditional Sec 4(2).

Sale and agreement to sell: when under a contract of sale, the

property in the goods is transferred from the seller to the buyer,
the contract is called a ‘sale’, but where the transfer of the
property in the goods is to take place at a future time or
subject to some conditions thereafter to be fulfilled, the
contract is called an ‘agreement to sell’ Sec. 4(3). An agreement
to sell becomes a sale when time elapses or the conditions,
subject to which the property in the goods is to be transferred
are fulfilled Sec. 4(4).

EFFECT OF DESTRUCTION OF GOODS:-

Goods perishing before making of contract (Sec 7):- A
contract for the sale of specific goods is void if at the time
when
the contract was made, the goods have, without the knowledge
of the seller, perished. The same would be the case where the
goods become so damaged as no longer to answer to their
description in the contract.

Goods perishing after the agreement to sell but before

the sale is effected (Sec.8): An agreement to sell specific goods
becomes void if subsequently the goods, without any fault on
the part of the seller or the buyer, perish or become so
damaged as no longer to answer to their description in the
agreement before the risk passes to the buyer, ‘Fault’ means
wrongful act or default Sec 2(5).

ISSUES:-
The instances when the case deviate the rules of sale of
goods act:-
The goods where not delivered as promised by the promise
(the bathroom city)

According to (Sec.11) which relates to stipulation as to time, in

a contract of sale, stipulations other than those relating to the
time of payment are regarded as of the essence of the contract.
Thus, if a time if fixed for the delivery of goods, the delivery
must be made at the fixed time; otherwise the other party is
entitled to put an end to the contract.

The mode of payment is not mentioned the given case Lack of

mutual consent The bathroom city refused to respond to the e-
mails and letters of Mr. Bell. According to the company, “Mr.
Bell clearly states that when it was delivered he checked the
goods over and found no initial fault” but Mr. Bell insisted on
the fact that the basin be either fixed or replaced as it had been
damaged prior to its fitting.
The instances when the case supports the rules of
sale of goods act:-
All the essential elements of the Sale of Goods Act are clearly
present in the case except for the price of the goods as
mentioned in the answer to the previous question.

Two parties: there are 2 parties present here that is the buyer
(Simon Bell) and the seller, (Bathroom City, Birmingham) Goods:
the goods which should be transferred from the seller to the
buyer are a shower tray, cabinet and basin. These goods which
form the subject-matter of the contract of sale are movable.

Price: Though nothing about price or money is mentioned, it is

obvious that a certain amount of cash is paid, (naturally
speaking) because the goods mentioned are not gifts and are
brought from the bathroom city by Mr. Simon Bell Transfer of
general property: the goods show the nature of general
property. Essential elements of a valid contract: the essential
elements if a contract are present. All the essential elements of
the contract (according to Indian contract act, 1872) are also
present.

CONCLUSION:-
From the above case study we can conclude that a contract for
the sale of immovable property is a contract laying down that
the ‘Sale’ of such property shall take place on the terms settled
between the parties in the said contract. Such contract for sale
does not create any interest in or charge on such immovable
property. The contract for sale does not result in any transfer of
ownership. However a sort of obligation is created in respect of
the ownership of the property