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BASIC LAW,REGULATION AND

BUSINESS POLICIESChapter 3

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1.Why do we need to know any law

Because accounts department might get involved with

complains from customers or dispute with a supplier.

Does a customer has the right to refuse the payment if the

goods supplied are not the ones ordered or delivered lateetc.

We need to know it for data protection and personal data

records keeping purposes,

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2. The Law of Contract

2.1 Is there a legally binding contract

Factors to consider

Intention to create a legally binding contract

Capacity

Consideration

Offer and acceptance

2.2 Breach of contract

Repudiation

DamagesAction for price

Specific performance

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3. Regulation of

3.1 When does ownership of the goods pass from seller tobuyer

The sales of goods Act deals with some problems relating towhen the ownership of goods passes from seller to buyer A buyer cannot acquire better rights to ownership in goods than the

seller had.

A buyer might take delivery of goods without having time toinspect them and check that they are the correct items. Thecustomer has the right to reject the items which not comply withterms of the sales agreement.

Retention of title clauses also known as (Romalpa Clause)

.

TheAct allows a contract to include a clause stating that a seller willhave the legal owner ship of goods even after delivery utill thegoods have been paid for. Unless the contract includes aclause stating that legal owner ship passes to the buyer afterthe delivery to the buyer.

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3. Regulation of

An International Prospective: Legislation protecting

consumers in other countries varies across the globe.

There is no single piece of international legislation so you

should be familier with the UK fundamentals of contractand the UK Sales of Goods Act 1979.

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4. Document Retention Policies

The documents used to process a transaction are not

thrown away but are kept for some years. Such as orders,

delivery note, GRN, invoice etc. they are kept for future

use.

Some tax laws require docs to be retained for anumber of years. Nowadays electronic copies are kept.

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5. Data Protection

it is another aspect of the business which keeps records

of and information about people. The law provides some

protections for individuals:

Prevents business holding information about people when there isnot a legal reason for that.

Requires the business to make sure that the data is accurate

Allows individuals to inspect and see any personal data about them

held by others.

Personal Data: It is about specific person.It can include name,address, age, date of birth, education, experience, salary, tax.

Businesses in the UK that hold files of personal data about

individuals required to comply with the Data Protectino Act 1989.

first they mus register with Data Protection Commessioner as a

user of personal data.

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5. Data Protection

A user of personal data must comply with the following

principles:

Per.. Info must be obtained and processed lawfully.

Per.. Info should be held only for specific lawful purpose.

The amount of info should be sufficient and relevant for its purpose.

Per.. Info should be accurate and up-to-date.

Per.. Should not be kept for longer than is necessary.

An individual is entitled to know that a data user is holding personal

data about him or her. He or she can inspect the data and ask forcorrection and deletion.

If personal data is disclosed in unauthorized way individual has the

right of legal action against the data user.

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5. Data Protection

Certain Conditions for processing personal data:

With the constant of the individual

As part of contractual arrangement between the data user and

individual

For legal reasons

Some personal data does not come within the scope of the Act such

as:

Personal date about employees for payroll purposes

Personal data about customers and suppliers for the purpose ofmaintaining account records.

Countries other than UK also have laws on data protection which are

less more stringent.