QUESTION ONE

1. Your company has decided to develop its International business by selling these components to Indian car manufacturers.

What would be the key legal implications of collaborating with a local Indian company, to manufacture the components locally within India under licence, for onward sale to domestic and potentially agreed neighbouring markets?

You should identify and describe: –

1. The key legal risks of entering into such a collaboration and possible mitigating actions
2. The licencing implications of such an arrangement, with consideration of suitable restrictions and limitations for such a licence
3. Any Government restrictions or regulations which may influence the choice of collaborative structure
4. Any other legal implications for the business which may result

Please provide industry examples wherever possible, to illustrate the points made in your report.

QUESTION TWO

3. Using the UK framework outlined in the module, compare and contrast the different types of Business Organisation. What are the key factors that will determine which structure the potential owners of a new business select?  How does each organisation type affect the level of risk assumed by the owners?
4. Select any other country of your choice, then identify and explain any differences to the UK fr
5. Does establishing a business that trades solely online impact on the level of risk incurred?

QUESTION THREE

1. You are a UK-based business, which has been offered a potentially lucrative contract to provide a new train braking system to a train manufacturing company in USA, called Coast-To-Coast Rail (CTCR) for use on its new executive train.  The procurement team of CTCR advises that sales are likely to be high for this model and that in order to provide such equipment, you must sign a contract which includes the following terms: –
   1. You will be paid for all braking systems delivered under the contract 30 days after the date on which CTCR is paid for the train into which the system is fitted.  Title to such items will however transfer to CTCR on receipt of the items at CTCR facilities.
   2. The contract will be interpreted in accordance with the Laws of and under the jurisdiction of the courts of the State of California
   3. Goods are to be delivered DDP (Delivery Duty Paid) – Incoterms 2010
   4. The price initially agreed is to be reduced after each subsequent year by 3% for the first 5 years of the contract, in US Dollars.  CTCR advises that the sales volumes are likely to increase significantly over this period, although the initial price offered is already viewed by your company as being aggressively low.
   5. You must indemnify CTCR for all and any claims relating to accidents in which the operation of the brakes are deemed to be a contributory factor
   6. You must provide a 5-year warranty for all items delivered, with no exclusions

1. You must grant a perpetual licence to CTCR to use your technology on a royalty-free basis for all other train applications it may wish to bid for worldwide. CTCR will use this technology to manufacture similar equipment independently for such trains.

Please write a briefing for your General Manager, outlining the key risks and benefits of signing such a contract – and for your recommendation of how to proceed.