Part A: Reflection

This week’s readings enlightened me on the legal processes involved in business operations and contracting. I was surprised to learn that for a contract to be the effect, it requires the two parties' agreement and the legal capacity to contract. I learned, from chapter twelve, that age and mental condition are crucial considerations in business contracting.  Contracts can be terminated if one or more of the conditions for a contract are violated. In chapters thirteen and fourteen, legal business operations were explained (Brigham & Houston, 2018). I learned that businesses are responsible for producing, advertising, and selling products that meet consumer quality standards. The government protects consumers from unscrupulous traders through anti-trust laws. Lastly, chapter fifteen highlighted how governments protect business people and individuals through intellectual property rights to ensure that their inventions and innovations are protected.

The most important lessons from this week's readings revolve around personal and government responsibility in facilitating legal business operations. My key takeaway is that successful business operation requires that owners adhere to the laws set by the governing authority in terms of product quality and contracting. On the other hand, the government plays a crucial role in ensuring that business persons do not lose their hard-earned innovations (Brigham & Houston, 2018). Essentially, legal business operations benefit all parties involved. The terms contract, fraud, and copyright struck me as the most important in this week's learning.

Part B: Response

            A sly businessperson aims to persuade a person to enter into the contract at hand. In this case, the businessperson mentions that the car they are selling "sips gas." This statement can be taken to imply that the car consumes little fuel compared to other vehicles. This constitutes a misrepresentation. A misrepresentation is characterized by an untrue statement or exaggerated versions believed to be true by the person speaking (Brigham & Houston, 2018). Besides, the businessperson has only made a statement not backed up by factual evidence. On the other hand, if they claimed the car's fuel consumption rate is 40 instead of 30 miles per gallon, they would have committed fraud.  This is because it would constitute a willful distortion of facts to woe the customer.

            Statements can be classified into opinion-based utterances and factual communication. In law, a judge decides whether words are opinion-based or factual to determine the most appropriate ruling. The first thing used for this determination is innocence. This implies that innocent statements without any factual component are opinion-based. On the other hand, factual statements are those made with a clear motive. When making a factual statement, the speaker knows exactly what they are saying and can support their points. The second point used to determine whether a statement is opinion-based or factual is its impact on the person and business. Opinion-based statements are not uttered to inhibit someone else’s business. According to the Supreme Court, an opinion-based utterance can attract liability if it entails material omission (Brigham & Houston, 2018).

            Sometimes, traders sell the same commodities for different prices to different groups of people. The Robinson-Patman Act holds that sellers should not discriminate against their customers. It, therefore, prohibits offering special discounts to some particular shops unless the seller aims to offer the same to all their consumers. To prove a violation of this act, one must show that the product sold is the same and that market conditions are comparable. In their defenses, sellers may argue that price discrimination is necessary because the market needs and operation costs differ in different markets. Another defense is the level of competition, which differs in different markets. To attract customers in one area, a business may have to price its products differently.

            Copyrights, trademarks, and patents are types of intellectual property rights. A copyright protects an original work, especially writing (Carlos Maria, 2020). It lasts for as long as the author lives and seventy years after. An example is a book produced and authored by a specific person then allowed copyright so that no one can reproduce it. A patent protects an original work of innovation (Carlos Maria, 2020). For example, the one who developed a mobile transfer application patented it so that no one can steal their ideas and product.  Patents can last up to 20 years. Lastly, trademarks refer to specific aspects such as the logo, image used in a product. For example, Nike’s logo cannot be used on other products. A trademark lasts for ten years.

 

Part A: Reflection

1. Business operations and contracting

1. Legal capacity to contract
2. Age and mental condition
3. Contracts can be terminated

2. Legal advertising

1. Businesses should be truthful in advertising
2. Products should meet the quality standards expected

3. Intellectual property rights

1. Protect original products and innovations
2. Businesses and the government both gain from legal business operations

Part B: Response

1. Sly business person

1. Commits misrepresentation
2. Utters an innocent opinion-based remark
3. They would have committed fraud if they described the consumption rate as 40 instead of 30 miles per gallon.
4. The latter contains factual evidence

2. Factual v. opinion based utterances

1. Factual statements are made with full knowledge
2. Opinion-based remarks are innocent and mainly harmless
3. Material omission can cause liability on opinion-based statements

3. The Robinson-Patman Act

1. Prohibits price discrimination
2. Is against selling the same product for different prices to different consumers
3. Defenses:

1. Market conditions differ
2. Entry options differ

4. Copyrights, trademarks, and patents

1. Copyrights protect written works

1. They last for the entire author’s life and an additional seventy years
2. An example is a book copyright

2. Patents protect innovations

1. They last for 20 years
2. An example is a patent given to the person who designed and developed the mobile money apps

3. Trademarks protect brand’s aspects such as the logo

1. Last for ten years
2. An example is Nike’s logo