This paper is a discussion concerning the commercial laws involved in an inherent sale of a newly discovered technological product. This paper shall evaluate the laws involved and the legal implications associated with such a transaction.
Assuming that two parties, a seller, and a buyer, agree to enter into a transaction for the sale of a technological product that has just been discovered, this transaction takes place in a free market democratic country. The commercial laws involved in such a transaction are contractual law, intellectual property law, and the consumer protection act.
Intellectual property can be described as an invention, idea or work that is as a result of mind creations. The law protects intellectual property so that the creators of such property can gain recognition as well as any other benefit that may accrue as a result of such creations (Rimmer & McLennan, 2012).
There are three types of intellectual properties. They are trademarks, copyrights, and patents. Technological innovations fall under the patents category. A patent can be described as the exclusive right that is usually given to the owner of an innovation or invention. A patent gives such an owner the right to decide how the technology may be used by other users and how it may be used. In the case, of the illustration above, the seller of the newly developed technological product must ensure that first they are either the patent holder of the product or have exclusive rights to sell that product to a third party. Breach of intellectual property rights is known as patent infringement. Although the definition of patent infringement may differ slightly depending on jurisdiction, the general definition is selling or using an invention that is patented. in many states, the use of the patented invention must constitute commercial value.
The first complication of the transaction is, therefore, the infringement of a patent (Goldstein & Kearsey, 2004).
A contract is an agreement entered into by two parties. The conditions that are necessary for a contract include an offer, acceptance, intention to create legal relations and consideration among others. A sale is a form of a contract whose parties are the buyer and seller. Usually, the seller gives an offer to a buyer who can accept, reject or give a counter offer. The existence of a consideration or monetary compensation for the exchange of something further validates the contract. A contract can be entered into expressly or in an implied manner.
It is important for the two parties in the illustration above to ensure that they enter into a proper contract for it to be binding in a court of law. A contract involving the sale of illegal commodities or where one person doesn’t have the right to sell a commodity is considered a null and void contract and is not enforceable in a court of law (Hondius & Clive, 2008).
The two parties should, therefore, be diligent to ensure that the contract that they enter into is lawful. In the event, that one party does not fulfill the legal requirements of the sale agreement contract, and then the contract is either breached or frustrated.
Consumer Protection Act
The consumer protection act seeks to protect consumers, in this case, the buyer, from violation by the sellers or producers of goods and services. The act also seeks to ensure that a consumer gets quality products that are safe for use. The seller in the above illustration, therefore, ought to ensure that the product is safe for use and is exactly what the seller purports it to be. The product must also perform the specific operations it is specified to perform (Horvath et al., 2009).
It is important for parties to be aware of legal laws that apply to any transaction they may want to engage in. This is important because the parties can protect themselves from any legal consequences that may arise and most importantly act within the laws.
- Goldstein, L. M., & Kearsey, B. N. (2004). Technology patent licensing: An international reference on 21st century patent licensing, patent pools and patent platforms. Boston?: Aspatore Books.
- Hondius, E. H., & Clive, E. (2008). Sales (PEL S). Munich: Sellier European Law Publishers.
- Horvath, A., Villafranco, J., Calkins, S., & American Bar Association. (2009). Consumer protection law developments. Chicago, IL: ABA Section of Antitrust Law.
- Rimmer, M., & McLennan, A. (2012). Intellectual property and emerging technologies: The new biology. Cheltenham, U.K: Edward Elgar.