Marketing and law

By: Kirti Sharma

Meaning of law

The law is a enforceable set of rules and regulations that governs the conduct of

an individual, group of people or an organization in the society in terms of

their relationship with each other and the society as a whole.

Types and levels of law• Common law : The principles written or unwritten forms are used by the

courts • Civil law : It is comprehensive and codified form of legal system covering

every possible contingency• Religious law: It is having all rules of life in the religious code

The Indian law can be categorized into following heads:• Business and corporate : • Criminal laws :• Tax laws:• Public utilities:• Banking and insurance:• Family and inheritance:• National security:

Laws and marketingBusiness laws are made to regulate the industries , sale of goods,Business formation, negotiable instruments etc.

The certain restrictions on business are must to serve the following purpose:

•Protect the consumers: for e.g companies use deceptive sales practices such as misrepresenting the product, misleading advertising, deceive in packaging etc.

•Equal access to the market by all the competitors: Market is consist of strong and weak players and this law provides equal chance to all marketers

•Protect the interest of the society: The product and process may of manufacturers may cause the damage to the society by damaging the ecology and creating health problems for consumers.

MARKETING PROCESS

ECONOMIC TECHNOLOGICAL

SOCIAL LEGAL AND POLITICAL

TRANSACTION-A LEGAL RELATIONSHIP

1. PROPOSAL AND ACCEPTANCE : Quotation from seller and order form buyer for the product and services.

2. CONSIDERATION: It is a promise for promise in return3. CAPACITY OF PARTIES OF CONTRACT: The contracting parties should be of

age of the majority and should have sound mind.4. FREE CONSENT: Both the buyer and the seller have agreed upon on some terms

and conditions with regard to product quality, features, price etc.5. DOCUMENTED:All sale s contract should be documented in writing and

registered.6. AN AGREEMENT SHOULD NOT BE VOID: An agreement should be enforceable

by law

Marketing mix and legal obligations

• Place- Channel, Geographical Coverage

Marketing strategies and legal framework

In India there is a government intervention in production and distribution of goods. Here are some purposes:

•Prevention of concentration of economic power•Proper utilization and mobilization of country’s scarce resources•Protect business form each othersProtect the gullible consumers from unscrupulous marketers•Achieve balanced economic growthThe business related has been focused on the following areas:

•Consumer protection•Promoting healthy competition•Environmental protection

Legal systems in IndiaIndian Laws in marketing

Marketing elements•Sales•Product•Price•Communication(advertisement and promotion)•Distribution(Channel and logistics)•Packaging

Indian Marketing Laws•Consumer Protection act•Monopolies and restrictive trade practices•Competition act•Hire-Purchase act•Sales of goods act•Indian contract act•Copyright act•Trademark act•Design actDrugs and Cosmetic act•Carriage by air act•Motor vehicles act•Central sales tax act•Jute packaging material act etc.

Consumer protection act, 1986

The broad salient features of Consumer Protection act are:•The act is exclusively passed for the interest of the consumers•It seeks to promote the rights of the consumers\•The law is applicable to all•Goods and services are covered in the law except those notified by the central government•The act envisages the establishment of three tire consumer protection councils•The goods purchased for business or resale and free services are not covered

Monopolies and Restrictive Trade Practices Act-1969

The act prohibits the following unfair trade practice(section36A):

•False representation of the quality, composition, style or model of goods and services.•Warranties and guarantees given without adequate tests, or expressed in misleading terms, services or trade of others•Announcing bargain prices for goods which are either not put on sale or are offered in quantities which are not reasonable with respect to to the nature of the trade, offering gifts, prices or other items with the intention of not providing them as offered etc

Some restrictions under section 33(1) are:

•Restriction on the sale of goods to certain person or class of personsrestricting purchasing and selling of goods only at prices stipulated therein•Restrictions on the quantity, output and the area of disposal of goods•Restriction on employment in manufacture of good etc.

Competition act, 2002

The highlights of Competition Act are as follows:

•The registration of restrictive trade practices is required•Price fixing, output restrictions, bid rigging and market restriction are prohibited•Competition advocacy•Competitive abuses in IPR not addressed.•Free from central government policies

Sales of Goods Act, 1930

The following things comes under Sales Of Goods Act:

•An offer from seller and acceptance by buyer•Stipulation of delivery terms-immediate or at future date•Payment terms-in cash or credit•Meaning of other stipulations and warranties as mutually agreed

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