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Business Law’;

BTEC Higher National Diploma in Business
Unit Number and Title
26. Business Law
Start Date
26/11/2014
Assignment Due Date
06/12/2014
Assessor Name
Kamran Ahmed
Assignment No
3
Assignment Title
Understand the legal rules relating to monopolies,
mergers and anti-competitive practices
Understand key provisions relating to intellectual
property rights
Assignment Brief
In this assignment, students will know who sets the
legal
rules relating to monopolies, anti-competitive prac
tices
and IPR in the UK
Assignment Task / Description
INTRODUCTION
Read the case studies before attempting the answers
. When writing your answers, give the
theoretical position in your answer, make use of ex
amples drawn from the UK, apply the theory
to these case studies.
CASE STUDY 1
Car Industry
The clearest evidence of anti-competitive pricing b
ehaviour in the UK car industry came with the
admission by Volvo in July 1999 that it had entered
secret agreements to keep British car prices
high. This appeared to be just the tip of an iceber
g, with car manufacturers fixing prices through
the system of selective and exclusive distribution
(SED). In other words, manufacturers would
only supply through ‘official’ dealers who would se
ll at the list price (or at small agreed
‘discounts’).
When we consider the difference in price between id
entical models in Britain and mainland
Europe the discrepancies were huge. The Competition
Commission report published in April
2000, found that car buyers in Britain were paying
on average some 10 to 12 per cent more than
those in France, Germany and Italy for the same mod
els For 58 of the 71 models analysed by the
Commission, the UK price was at least 20 per cent h
igher than in the cheapest country. The
Commission concluded that British car buyers were p
aying around 10 per cent too much for new
cars, or some £1100 for an average car.
The price discrepancies between Britain and Europe
were maintained by car manufacturers
blocking cheaper European cars coming into the UK.
Manufacturers were accused of adopting a
number of anti-competitive practices. These include
threatening mainland European car dealers
with losing their dealership if they sell to Britis
h buyers, and delaying the delivery date of right-
hand drive models to mainland European dealers in t
he hope that British buyers changes their
mind and go back to a British dealership.
As the problem involved more than one EU country, t
he European Commission (EC) also
examined the issue. It concluded that the motor veh
icle manufacturers had agreements with
distributors that were too restrictive. In 2002, th
e EC changed the ‘Block Exemption’ regulations
governing the sector to allow distributors to set u
p in different countries and to sell multiple
brands of car within their showrooms. Furthermore,
distributors who are offered an exclusive
‘sales territory’ distribution agreement by car man
ufacturers are now allowed to resell cars to
other distributors who are not part of the manufact
urer’s network. This should help to develop
other sales outlets such as car supermarkets and In
ternet retailers. In addition, the regulation has
opened up the repair and spare parts sector to more
firms.
Changes in the regulations, and the addition of ten
new member states in 2004 and another two
in 2007, have made the car market more competitive
by increasing the sources of supply. Slowly,
prices of new car prices have been converging acros
s the EU towards the lower-price markets.
But what about the UK? Since 2003 new car prices ha
ve fallen. In August 2005 new car prices
fell by 0.5 per cent over the year, while general p
rice inflation over the same period was 2 per
cent. There is still scope for shopping around outs
ide of the UK, however – 17 out of 81 models
listed by the EC in August 2005 were at least 20 pe
r cent higher than the average EU price.
QUESTION 1 –
(LO3 Assessment Criteria 3.1 & 3.2)
1.
Do you believe that these case studies illustrate m
onopolies and anti-competitive practices?
Extract information from each case study to support
your answer.
2.
Explain the role – from a legal perspective – of th
e Competition Commission (CC) and the
UK Office of Fair Trading in dealing with these spe
cific monopolies and anti-competitive
practices and in monopolies and anti-competition pr
actices in general
CASE STUDY 2
Supermarkets
The Competition Commission enquiry into supermarket
s, which began in April 1999, followed a
nine-month investigation by the Office of Fair Trad
ing (OFT) into the major supermarket chains’
business activities. The OFT identified three major
areas of concern: the use of barriers to entry,
the lack of effective price competition, and the re
lationship between the large supermarket chains
and their suppliers.

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Sample Answer

Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.

Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.

This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.

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It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.

Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>

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