This page contains short summaries of recent commercial developments which are of practical interest. If you would like more information, please use our enquiry form and we will contact you. |
Updated: April 28, 2008 |
April 2008
- Unfair contract terms
- Who owns inventions developed by employees?
- ASA and Ryanair refer each other to the Office of Fair Trading.
- Corporate Manslaughter and Corporate Homicide Act comes into force on 6 April 2008
March 2008
- New signing rules for companies
- Relief for bookies as gambler’s claim is rejected
- Interest rates held in face of inflation
- OFT seeking to out-fox agents over commission charges
28 April, 2008
Unfair contract terms
The Court of Appeal has said that an exclusion clause in a standard terms of business was not unreasonable and unenforceable under the Unfair Contract Terms Act (UCTA).
The Court of Appeal’s decision is important as the original decision called into question many suppliers’ standard exclusion clauses.
21 April, 2008
Who owns inventions developed by employees?
You need to distinguish between copyright and patents.
With copyright, an employer will own all copyright in works created by an employee in the course of his employment. This can be extendable by the employment contract.
Patent. The employee will own the patent even if the item is made at work and it is not possible to give the employer greater rights in the employment contract (although you often find ancillary provisions in them).
The employer owns the invention if the invention arises out of duties which are either normal for the employee or were specifically assigned to the employee and where an invention might reasonably be expected.
The employer will also own the invention if it was made during the course of the employee’s duties and at the time of the invention (subject to conditions) the employee had a special obligation to further the interests of the employer’s undertaking.
14 April, 2008
ASA and Ryanair refer each other to the Office of Fair Trading.
The Advertising Standards Authority referred Ryanair to the OFT after they “lost patience” with them after ruling against Ryanair several times. In a tit-for-tat move, Ryanair referred the ASA for “unfair procedures, bias and false judgements.”
7 April, 2008
Corporate Manslaughter and Corporate Homicide Act comes into force on 6 April 2008
A new era of health and safety regulation for businesses has arrived. Whilst well-run businesses which already have effective health and safety systems in place should have nothing to fear, employees of companies, consumers and other individuals will have greater protection against the worst cases of corporate negligence. The Act provides that companies and organisations can be found guilty of corporate manslaughter on the basis of gross corporate failures in health and safety.
There are no new regulations to comply with.
The new law makes it easier to convict organisations where senior managers have breached their duty of care, as it holds employers accountable for the decisions of their senior managers. Formerly, a company could only be convicted of manslaughter if a “directing mind” (e.g. a director) at the top of the company was also personally liable. Previously, prosecutions have failed against all but the smallest companies, it is expected that there will be a large rise in the number of corporate manslaughter cases against businesses irrespective of size.
The new law also lifts Crown immunity to prosecution, so that it applies to companies and other corporate bodies, in the public and private sector, government departments, police forces and certain unincorporated bodies, such as partnerships, where these are employers.
31 March, 2008
New signing rules for companies
New rules are set to come into force governing the formalities required for the proper execution of deeds by companies. Under the new Companies Act this can be done either by the company affixing its common seal to the deed or the document being signed by two authorised signatories or a director in the presence of a witness who attests the signature.
Those authorised to sign on behalf of the company are all directors and, in the case of a private company with a secretary or a public company, the company secretary.
These new rules become effective from 6 April 2008 and mark a slight relaxation of previous requirements.
17 March, 2008
Relief for bookies as gambler’s claim is rejected
Bookmakers who have followed a case brought by a compulsive gambler against William Hill will have been relieved to see the claim thrown out by the High Court. The individual had lost more than £2 million in a five-month betting spree and had argued that the company had failed in its duty of care to him by allowing him to carry on betting. The company also let him open a credit account after he asked it to stop taking his money.
Despite the company’s self exclusion policy there was still no duty of care owed in this case. The judge stated that pathological gambling would have led to his financial ruin so the company’s failure to make good their promise to exclude the individual from telephone gambling did not cause the loss.
Had the claim been successful it may well have led to floodgates being opened to similar claims from gamblers.
10 March, 2008
Interest rates held in face of inflation
The Bank of England announced this week that interest rates were to be held at 5.25%. It is predicted that the Bank’s Monetary Policy Committee are unlikely to cut rates in the face of rising inflation.
Announcements about disappointing house price figures failed to encourage the Committee to cut rates. House prices dropped a further 0.3% in February with the average home now costing £196,649 although this is 4.2% more than the average cost last February.
However, the concerns over inflation resulted in the rate being kept at the same level. This announcement comes ahead of the Budget next week when the Chancellor will update the nation’s finances.
3 March, 2008
OFT seeking to out-fox agents over commission charges
The way in which the estate agents Foxtons charge commission on letting properties has been examined by the Office of Fair Trading (OFT). The High Court has now been asked to decide whether commission charges of landlords after tenancy agreements have finished breaches the Unfair Terms and Consumer Contract Regulations.
Foxtons has been targeted by the OFT due to their practices and if the case against them is successful, other agencies may be targeted as this is understood to be common in the estate agency business. The practices include charging commission if the same tenant remains in the property but the landlord has moved to another estate agent even when the initial agent did nothing to persuade the tenant to stay.
The OFT claims this is not fair even if landlords are informed about the terms and agree to them. However Foxtons have stated that they welcome the test case being brought as they believe their practices are fair.
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