Business Law Session Plan Cases

Business
Law
Contributors : Prof. Aparna Nashikkar
Prof. Latika Salgaonkar
Prof. Hemangini Shah
Prof. Pankaj Dahibhate
Page 1 of 23
MIT School of Business

Session Plan
Subject : Business Laws
Business Laws
Corporate laws are vital and play an important part in business transactions. A person must be
aware how to tackle any legal issues so as to have a smooth and steady functioning of his
business. The following Acts have been incorporated in our syllabus so as to give a thought to
the subject.
Session No
Name of Topic
Required Reading
I Contract Act
Introduction to law and its purpose.

Structure of Legislative and judiciary in
the country.
Legal Aspects of Business,
Definition of contract, rules of a valid

proposal and acceptance. Types of offer,
its acceptance and communication.
Lapse and revocation of offer and
acceptance.
Merchantile Laws, Dr. V K
Akhileshwar Pathak
Business Law, S S Gulshan
Jain
Merchantile Law, Dr. R K
Chopra
Mercantile
law,
N.
D.
Kapoor
Consideration Definition and rules for
valid consideration, Exception to no

Akhileshwar Pathak
Page 2 of 23
consideration no contract
Capacity of parties, minors agreement

and effects of minors agreement

Jain
Chopra
Mercantile
law,
N.
D.
Kapoor
Meaning of Free Consent, Coercion,

Undue Influence, Misrepresentation,
Fraud and Mistake of law & Mistake of
fact.

Akhileshwar Pathak
Jain

Chopra
Mercantile
law,
N.
D.
Kapoor
Legal Object- essentials, unlawful and
illegal agreements, void agreements,
contingent contracts, Discharge of
contract, Remedies for breach of
contract, Quasi contracts

Akhileshwar Pathak
Jain

Chopra
Mercantile
law,
N.
D.
Kapoor
5
Contracts of Indemnity and Guarantee,

essentials, types of guarantee, rights of
the parties, discharge of the parties.
Akhileshwar Pathak
Page 3 of 23
Jain
Chopra
Mercantile
law,
N.
D.
Kapoor
6
Case I
Extra reading required
II Consumer Protection Act
Consumer Protection Act - -Definitions-
Mercantile law by N. D.
Consumer,
Kapoor,
trader,
person,
goods,
manufacturer,
service,
complaint
Akhileshwar Pathak
consumer dispute
Consumer
8
protection
councils,
Consumer disputes redressal agencies
Kapoor,
Akhileshwar Pathak
Case-II
III Negotiable Instruments Act

Akhileshwar Pathak
NI Act - Definition, Types- Promissory
Notes, Bills and cheques, Parties &
10
Characteristics
of
Negotiable
Instruments, maturity of instruments

Chopra
Kapoor,
Page 4 of 23

Akhileshwar Pathak
11
12
Holder and Holder in due course,
Negotiation,
Chopra
Endorsement
&
Presentment, Dishonor, Notice, Noting
and Protest, Discharge of NI
Kapoor,
Case-III
IV Sale of Goods Act, 1930

Akhileshwar Pathak
Jain
13
Definition Sale, Agreement to Sell,
goods,
and
Chopra
and
price,
Warranties,
Conditions
implied
conditions
warranties
Kapoor,
14
Doctrine of Caveat Emptor, Transfer of

Property in goods, Performance of
Contract of Sale, Unpaid Seller, Auction
Sales
Akhileshwar Pathak
Jain
Chopra
Page 5 of 23
Kapoor,
15
Case-IV
V Companies Act
Companies Act, Dr. Avtar
Singh
Akhileshwar Pathak
Definition of Company, Incorporation
16
of Company, its special features - Manual of Business Laws, Dr.

Memorandum of Association, Doctrine S N Maheshwari & Dr.S K
of Ultra vires
Maheshwari
Kapoor
Articles of Association, Doctrine of

indoor management and constructive
notice

Singh
Akhileshwar Pathak
Manual of Business Laws, Dr.
S N Maheshwari & Dr.S K
17
Maheshwari
Kapoor
18
Case-V

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Prospectus and its types, liability and

defense available for misstatement in
prospectus, Directors- appointment and
qualifications, their legal status, Powers,
duties removal and remuneration

Singh
Akhileshwar Pathak
19

Maheshwari
Kapoor
Meetings AGM, EGM, Statutory

meeting, notice, quorum, minutes,
passing of a resolution, agenda in each
meeting

Singh
Akhileshwar Pathak
20

Maheshwari
Kapoor
21
Case-VI
Provisions of Companies Act regarding Companies Act, Dr. Avtar

22
Oppression
and
Mismanagement, Singh
protection of minority, Over view of

provisions for winding up of a company

Akhileshwar Pathak
Page 7 of 23
Introduction to corporate governance Manual of Business Laws, Dr.

and CSR

Maheshwari
Kapoor
VI Competition Law
Competition
23
purpose,
Law
concept
Definitions-
and
acquisition,
agreement, geographic cartel, enterprise,
Kapoor,
Akhileshwar Pathak
relevant market, product market, etc.
24
Case-VII
Anti-competition agreements, Abuse of
dominant position
Combinations,
regulation
combinations,
Kapoor,
Establishment
25
of
of
competition
commission of India,
Composition ,
duties
and
power

Akhileshwar Pathak
of commission,
penalties
VII
Environment Protection Act
Overview of Water and Air Acts,

26
Prevention and control of Pollution,

Hazardous waste (management
Environmental laws, Dr. Khan

and Environment Act, Singh
handling) rules, Sanctions in EPA
Page 8 of 23
27
Case-VIII
VIII Intellectual Property rights

Patent - Definition, what
can be
patented, Types, Process for getting

28
patent, Duration, Term of Patents, IPR, Dr. M K Bhandari

Rights,
License,
Termination
and
Remedies for violation
29
IPR, Prabhddha Ganguly
IPR, N. K. Archarya
Trade Marks definition, registration IPR, Prabhddha Ganguly

and conditions of registration, Procedure
for and duration of registration, IPR, Dr. M K Bhandari
Renewal, Removal and Restoration, IPR, N. K. Archarya
Effects of registration
30
Case-IX
Copyright definition, registration and

conditions of registration, Procedure for IPR, Prabhddha Ganguly
31
and duration of registration, Renewal, IPR, Dr. M K Bhandari

Removal and Restoration, Effects of
IPR, N. K. Archarya
registration
IX
Information Technology Act

32
33
Over view of the provisions of the actpurpose and scope, authentication of

electronic records, electronic
governance, secure digital signature,
penalties and adjudication, cyber
offences and regulating Tribunal
Case-X
Kapoor,
Akhileshwar Pathak
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Books and Readings:1. Mercantile Law, N D Kapoor

2. Business Law, Avtar Singh
3. Business Law, S S Gulshan
4. Business Law, P C Tulsian
5. Business and corporate laws, P C Tulsian
6. Legal Aspects of Business, Akhileshwar Pathak
7. Manual of Business Laws, Dr. S N Maheshwari & Dr. S K Maheshwari
8. Me4rxchantile Law, M C Shukla
9. Business Law, S K Aggarwal
10. Intellectual Property Rights, P. Narayanan
11. Intellectual Property Rights, Dr. B L Wadehra
12. Environmental Laws, Singh
13. Environmental Laws, H V Jadhav & Dr. S H Purohit
14. Environmental Laws, Dr. H N Tiwari
15. Environmental Laws, Dr. Tripathi
Page 10 of 23
Subject Name Business Laws

Semester - II
Case no.01
1. Rodney agrees to pay pocket money to his son Roco sum of Rs. 1,500/- per month for 12
months starting November 2013, after paying for first two months Rodney stops paying
Roco pocket money without any explanation. Discuss whether this is a valid contract.
2. Adam a car dealer induces Annette to buy a car from his shop and depicts that same is
brand new. Annette buys the car on Adams representation, after driving for few
kilometres the car breaks down. Discuss whether Annette can cancel the contract and
claim damages?
3. Anita agrees to sell her farm to Sarah for Rs. 50,000/- . Sarah sends her cash of Rs.
25,000/- and agrees to pay the balance in 10 instalments of Rs. 2,500/- each. Discuss
whether this a valid contract?
4. Frank received summons to appear in the court as witness at a trial. Richard promised to
pay Frank Rs. 5,000/- for his appearance. After the court date Richard refuses to pay
Frank, discuss whether Richard could sue Frank and recover the money.
Page 11 of 23

Semester - II
Case no.02
1. Abhilasha booked a ticket with the Railways to travel from Chennai to Delhi in the
Superfast Train Taj Express. The Taj Express started from the scheduled station of
departure on time but was delayed for long hours. The Railways was not in a position to
justify the delay nor give any valid and convincing reasons for such a delay. Abhilasha
was too irritated with the long journey. Abhilasha could not tolerate this long delay and
claimed from the Railways Rs. 1,00,000/- for the inconvenience caused to her. She is
also claiming that the Railways pay her the amount of Rs. 5000/- as compensation for the
expenditures incurred by her on the food during that long journey. Can Abhilasha
succeed on this ground by filing a complaint against the Railways? Give reasons.
2. Indresh had applied for electricity connection in the month of August 2011. He was told
that he shall get the connection within two days. However, no connection was not
provided to him till November 2011. But he has been asked to remain present at the
electricity office to state reasons as to why there is no consumption of the connection.
Can Indresh seek redressal in a Consumer Court? If yes, how on what grounds?
3. Mr. Sanjay had an internet connection at home. He was expecting an important interview
call. The net connection was not working properly. Mr. Sanjay sent a written complaint
to the net provider about the net connection not working properly. The connection was
set right after 3 days and Mr. Sanjay lost his opportunity as he could not access his net.
He has filed a complaint against the net provider claiming for damages. The net provider
says he is not responsible as Mr. Sanjay never mentioned the urgency. Can Mr. Sanjays
claim stand? Is he a consumer?
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4. Mr X booked an Apartment with Local Development Authority i.e. State Controlled

Government Authority. The Development Authority failed to provide the apartment
within stipulated period and stated that neither Housing construction falls within
Consumer Protection Act nor X is a consumer hence there is no deficiency of service.
Discuss whether Housing Construction falls within the ambit of Consumer Protection
Act, 1986 and failure to provide the apartment, land etc. within the stipulated period
stated in agreement to sale amounts to deficiency in service?
What is the meaning of the word service? Does it extend to deficiency in the building of
a house or flat? Can a complaint be filed under the Act against the statutory authority or a
builder or contractor for any deficiency in respect of such property?
Page 13 of 23

Semester - II
1. Brian promises to pay Varun
Case no.03
5,000/- in writing only after Varun marries Angelina,
discuss whether Brian promise to pay constitutes valid promise and is a promissory note?
2. Greg admits in writing that he is liable to pay Danny sum of
25,000/- which he had
borrowed for his daughters marriage, discuss whether Gregs admission in writing
amounts to valid promissory note?
3. Grant gives a post-dated cheque to Joanne who presents it for payment to the bank before
the due date and as a result same gets dishonoured; discuss whether Grant is liable u/s
138 of the Negotiable Instruments Act?
4. A Bank wrongfully dishonoured Annies cheque and without any justification; discuss
whether A Bank is liable to compensate Annie for any loss or damage?
Page 14 of 23

Semester - II
Case no.4
1. Darshan and Prakash enter into an agreement, wherein Darshan sells his lawn-mover to
Prakash. But Darshan refuses to deliver it to Prakash till he has been paid fully by Prakash.
Before the full and final payment of the lawn-mover, Darshan lends the lawn-mover to
Prakash in order that Prakash may cut the grass. Bring out the rights of the buyer and the
seller.
2. Goods were sold and sent by the sellers at the request of the buyer to shipping agents of the
buyer and were put on board a ship by those agents. Subsequently, they were re-landed and
sent back to the sellers for the purpose of re-packing. While they were still in the possession
of the sellers for that purpose, the buyer became insolvent. The sellers refused to deliver
them to the Official Receiver except upon payment of the price. Are the sellers entitled to
refuse to deliver the goods to the Official Receiver? Discuss.
3. A particular hair dye was normally used to dye hair by a hair dresser. In fact, all the hair
dressers in the area commonly used that particular hair dye as it was considered the best.
Arun was allergetic to this particular hair dye. Yet, he got his hair dyed and as a result he
developed dermatitis because of that hair - dye. Arun claims that the hair dresser is liable to
compensate him because the hair dresser had not specifically asked him whether that
particular dye suits him or not. Discuss.
Page 15 of 23

Semester - II
Case no.05
1. An annual general meeting was called by a company in Dec. 2000. This meeting was
adjourned to
March 2001, and held accordingly. Subsequent
meeting was held in
Annual General
February 2002. The registrar of the companies holds the
company liable for an irregularity, while the directors claim that there is no such
irregularity. Discuss whether the registrar will succeed in his claim and be able to
take any action against the company.
2. Avkash Ltd. is engaged in manufacture of aircrafts. It is a
validly constituted
company and the directors are also appointed as per the provisions of the act. The
directors have the power to enter into contracts on behalf of the company. They
entered into one such contract with Dharti Ltd. The common seal of a company was
affixed on the document without the compliance of the provisions of the companies
act. Can the document be said to be valid? What options are available with both the
companies, if at all the document is void? If it is void, Can the contract be ratified by
the Board of Directors?
3. Anand was the managing director and a shareholder of a company. The cheques
payable to the company were indorsed by him to himself in the capacity as a
managing director and deposited in personal account with the Bank of India. The
bank collected the money and allowed him to withdraw. The company soon went into
liquidation and the liquidators sue the bank for recovery of money of the cheques
payable to the company but credited to the account of Anand. Will the liquidator
succeed? Will Anand be able to claim any compensation from the bank or the
company?
Page 16 of 23
4. The shareholders of Camins Ltd. duly called upon the managing director to convene a
meeting. The agenda of the meeting was to move a motion removing the managing
director from his post. The managing director promised to fix up a meeting, but as he
was flying out for business reasons, requested to conduct the meeting after a week.
Later on the managing director failed to oblige them, hence the shareholders
themselves met at a place, away from the registered office. They passd a resolution
and removed the managing director from his post. The managing director claims that
this is not a valid resolution and that he cannot be removed on the basis of such a
resolution. Advice the shareholders as well as the managing director.
Page 17 of 23

Semester - II
Case no.06
1. A accepts a bill for the accommodation of B the drawer. The bill is dishonoured by A on
the due date and C, the holder of the bill, on that date, collects the amount from B.
a. Can B sue A for the recovery of the amount?
b. Will it make any difference, if the bill gets into the hands of the holder in due course
and he files a suit against A for the recovery of the amount?
2. The director of a company borrowed Rs. 10,000/- from A and exedcuted a

promissorynote in favour of A. On the promissory note, there was no indication that the
money was borrowed for and on behalf of the company. Te company used the money for
its purposes. Can the company be held liale to repay the loan on the basis of the
promissory note?
3. The shareholders of Pompous Ltd. duly called upon the managing director to convene a
meeting. The agenda of the meeting was to move a motion removing the managing
director from his post. The managing director promised to fix up a meeting, but as he was
flying out for business reasons, requested to conduct the meeting after a week. Later on
the managing director failed to oblige them, hence the shareholders themselves met at a
place, away from the registered office. They passd a resolution and removed the
managing director from his post. The managing director claims that this is not a valid
resolution and that he cannot be removed on the basis of such a resolution. Advice the
shareholders as well as the managing director.
4. An allottee of shares in a company brought action against a director in respect of false

statements in a prospectus. The director contended that the statements were prepared by
the promoters and he had relied on them. Is the director liable under the circumstances?
Page 18 of 23

Semester - II
Case no.07
1. Mr. Sandesh filed a suit against the four DTH service providers alleging contravention of the
provision of the competition act 2002. He said that these four DTH service providers are
limiting competition amongst themselves forcing the buyers to buy bundled hardware and
creating entry barriers to new hardware manufacturers. To avail DTH services the customers
required 4 instruments besides television i.e. a small dish antenna, a control unit, a small
radio-size device and a smart user identifier card. Mr. Sandesh alleged that ideally the
antenna and the control unit\ should be available in the open market and the smart card and
radio-size device can be provided by the DTH provider. The DTH providers have put the
product into a bundle and also manipulated the devices such that one device shall not work
for more than one DTH provider. Also the customer is loath to buy another hard ware if he
wants to change the DTH service provider. Also the customers are made to sign an
agreement with the DTH service provider in which the onerous conditions are printed very
minutely and in an illegible way. This practice adopted by the DTH service providers results
in the inconvenience for the customers. These were the main allegations along with many
others. Discuss if you feel that the provisions of the competition act have been violated. State
valid reasons/provisions for your answers.
2. Company A issued a Limited tender notice for procuring cast steel bogies. Quotations were
received. Three big manufacturers quoted identical price of Rs. 77,000/- per bogie as against
other tenderers quoting between Rs. 83,000/- and Rs. 84,500/- per bogie. The tender
committee arrived at a rate of Rs. 76,000/- per bogie. Two of the big companies offered to
reduce their price substantially, if called for negotiation. Company A offered a counter-offer
of price of Rs. 65,000/- per bogie as against Rs. 76,000/- to others as some of them were sick
units. The Three big manufacturers filed a petition against this in the High Court. Discuss,
giving legal reasons if you feel that there has been any involvement of cartel, predatory
pricing, dual pricing, etc.
Page 19 of 23

Semester - II
Case no.08
Mr. Ramchand Bhagirath is a proprietor and a wholesale dealer of dry chillies, was from Gondia
and had a godown in a double storeyed building where he used to store large quantity of chillies.
The residents of Gondia in that area where the godown was situate, complained against this
godown as everyday lots of trucks came and loading/unloading of dry chillies used to take place.
This activity was continued since a long time and the physical comfort of the residents in that
locality were affected and it had become practically impossible for them to bear this any further.
They claimed that this activity caused pollution and was a threat to the health and physical
comfort of the residents in the locality. It caused a lot of sneezing, coughing, adthma, irritation of
skin and burning sensation. The residents thus took action against this particular businessman.
The proprietor though admitted that the building was being used as godown, refused that it
caused any harm or threat to the health of the people. Also the building was a pakka construction
and proper care was taken before and after loading and unloading activity so as to see that
pollution does not take place since 20 years. Discuss what should be done in the situation.
Page 20 of 23

Semester - II
Case no.09
1. Hawkins is a company who has got registered its artistic label under the Copyright Act.
Hawkins is a company dealing in pressure cookers. Another company, also dealing in
pressure cookers applied this copyrighted label on their cookers. The Hawkins cooker
company sought to get an injunction and a decree for taking accounts on the ground that
the other company has copied its copyright, it is also dealing in pressure cookers and as
such it is an infringement of the copyright. Is it a case of infringement of copyright?
Discuss at length will the Hawkins company succeed in its claim?
2. Raghunath is a writer of stories and has a number of stories on his name. Surendra is
another person who is also a writer but who also many a times bases his stories on the
ideas which can be gathered from the society. Both of them get their work copyrighted.
He has written stories based on the culture, the violence, the bomb blasts, etc. Raghunath
has written a story which tells us about the violence that is going on in the world. It is a
pure work of intelligence, based on the facts, circumstances and experience gained and
gathered by Raghunath. Surendra has recently written a story which involves a story
based on the bomb blasts in the city. Coincidentally this story seems similar to the story
of Raghunath and also is published after that of Raghunath. Raghunath claims that
Surendra has copied the material from his story and hence claims compensation from
Surendra. Surendra claims that his story is purely based on the bomb blasts that took
place in the city. Will Raghunath succeed in his claim?
3. A manufacturer of reengineered concrete poles and pipes, who held two patents in respect
of improved process of manufacture was doing business using the patented machinery.
The other person was infringing the patent of the manufacturer by using patented
machinery. The infringer was using patented machinery to manufacture concrete poles
and pipes and also was doing a good business. When the patent holder brought
Page 21 of 23
infringement action against the infringer and conducted search and inspection, of the
infringers premises, neither the patented machinery nor the products were found with the
infringer. However the infringer submitted that he was not infringing any patented
machinery but also promised that he will not make any use of the patented machinery in
the future also. The patent holder even so believes that there is some infringement being
committed and seeks a permanent injunction against the infringer in the court. Will the
patent holder succeed?
4. Prakash is a registered proprietor of the
trademark Ciba, Cibaca and many other
trademarks in which the syllable is the work CIBA in respect of various items falling in
different classes. Rakesh began manufacturing filters for motor c\vehicles and adopted
the trademark Cibaca and claimed that its use was bonafide and concurrent as the goods
in question belonged to a totally different class. Can the other manufacturer, i.e. Rakesh
be allowed to use the trade mark Cibaca? Will he succeed to get the registration of the
trademark on the basis of his claims? Will it be termed to be an infringement of the
trademark?
Page 22 of 23

Semester - II
Case no.10
Discuss its pros and cons.
Page 23 of 23

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Business

MIT School of Business

Introduction to law and its purpose.

Legal Aspects of Business,

Definition of contract, rules of a valid

Merchantile Laws, Dr. V K

Legal Aspects of Business,

Business Law, S S Gulshan

Capacity of parties, minors agreement

Merchantile Laws, Dr. V K

Meaning of Free Consent, Coercion,

Legal Aspects of Business,

Merchantile Law, Dr. R K

Legal Aspects of Business,

Merchantile Law, Dr. R K

Contracts of Indemnity and Guarantee,

Extra reading required

II Consumer Protection Act

Consumer Protection Act - -Definitions-

Legal Aspects of Business,

Consumer disputes redressal agencies

Extra reading required

III Negotiable Instruments Act

Instruments, maturity of instruments

Merchantile Law, Dr. R K

Legal Aspects of Business,

Holder and Holder in due course,

Merchantile Law, Dr. R K

Presentment, Dishonor, Notice, Noting

and Protest, Discharge of NI

Extra reading required

IV Sale of Goods Act, 1930

Definition Sale, Agreement to Sell,

Merchantile Law, Dr. R K

Legal Aspects of Business,

Doctrine of Caveat Emptor, Transfer of

Extra reading required

of Company, its special features - Manual of Business Laws, Dr.

Articles of Association, Doctrine of

Companies Act, Dr. Avtar

Extra reading required

Prospectus and its types, liability and

Companies Act, Dr. Avtar

S N Maheshwari & Dr.S K

Meetings AGM, EGM, Statutory

Companies Act, Dr. Avtar

S N Maheshwari & Dr.S K

Extra reading required

Provisions of Companies Act regarding Companies Act, Dr. Avtar

protection of minority, Over view of

Legal Aspects of Business,

Introduction to corporate governance Manual of Business Laws, Dr.

S N Maheshwari & Dr.S K

agreement, geographic cartel, enterprise,

relevant market, product market, etc.

Extra reading required

Legal Aspects of Business,

Overview of Water and Air Acts,

Prevention and control of Pollution,

Environmental laws, Dr. Khan

handling) rules, Sanctions in EPA

Extra reading required

VIII Intellectual Property rights

patented, Types, Process for getting