Product liability is a field of law that accounts for the responsibility of producers, manufacturers, suppliers, and other stakeholders who avail products to the general public for the injuries those products cause the public. Most of these claims are associated with negligence, breach of warranty, strict liability in addition to other forms of consumer protection claims. These laws are determined at the National level. A product liability and negligence claim justified by the product having either a manufacturer’s defect, a designing defect, or failure to warn the consumer. Generally, claims of product liability are not only based on negligence but also a strict liability. This theory of strict liability states that the manufacturer should be held liable even though the customer acted negligently. Failure to warn customers is viewed by some legal commentators as being negligent. The theory of strict liability focuses on the product of the manufacturer rather than Continue reading
Business Law
SEBI (Substantial Acquisition of Shares and Takeover) Regulations Act, 1997
On the basis of recommendations of the Committee, the SEBI announced on Febuary20, 1997, the revised take over code as Securities and Exchange Board of India (Substantial Acquisitions of shares and Takeovers) Regulations, 1997. The objective of these regulations has been to provide an orderly framework within which substantial acquisitions and takeovers can take place. The salient features of this new takeover code (Regulations, 1997) may be enumerated as follows: i.Any person, who holds more than 5% shares or voting rights in any company, shall within two months of notification of these Regulation disclose his aggregate shareholding in that company, to the company which in turn, shall disclose to all the stock exchanges on which the shares of the company are listed, the aggregate number of shares held by each such person. ii.Any acquirer, who acquires shares or voting rights which (taken together with shares or voting rights, if any, Continue reading
SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003
The SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003 enable SEBI to investigate into cases of market manipulation and fraudulent and unfair trade practices. The regulations specifically prohibit market manipulation, misleading statements to induce sale or purchase of securities, unfair trade practices relating to securities. SEBI can conduct investigation, suo moto or upon information received by it, by an investigating officer in respect of conduct and affairs of any person dealing, buying/selling/dealing in securities. Based on the report of the investigating officer, SEBI can initiate action for suspension or cancellation of registration of an intermediary. The term “fraud” has been defined by Regulation 2(1)(c). Fraud includes any act, expression, omission or concealment committed whether in a deceitful manner or not by a person or by any other person or his agent while dealing in securities in order to induce another person with his Continue reading
Definition and Features of Promissory Note
Promissory Note, in the law of negotiable instruments, written instrument containing an unconditional promise by a party, called the maker, who signs the instrument, to pay to another, called the payee, a definite sum of money either on demand or at a specified or ascertainable future date. The note may be made payable to the bearer, to a party named in the note, or to the order of the party named in the note. A promissory note differs from an IOU(An IOU (abbreviated from the phrase “I owe you“) is usually an informal document acknowledging debt) in that the former is a promise to pay and the latter is a mere acknowledgement of a debt. A promissory note is negotiable by endorsement if it is specifically made payable to the order of a person. According to section 4 of the Negotiable Instruments Act, 1881, a promissory note means “Promissory Note Continue reading
Securities Contracts (Regulation) Rules, 1957
The Central Government has made Securities Contracts (Regulation) Rules, 1957, in the exercise of the powers conferred by section 30 of SC(R) Act., 1956 for carrying out the purposes of that Act. The powers under the SC(R)R, 1957 are exercisable by SEBI. Contracts between members of recognised stock exchange All contracts between the members of a recognised stock exchange shall be confirmed in writing and shall be enforced in accordance with the rules and bye-laws of the stock exchange of which they are members (Rule 9). Books of account and other documents to be maintained and preserved by every member of a recognised stock exchange : (1) Every member of a recognised stock exchange shall maintain and preserve the following books of account and documents for a period of five years: (a) Register of transactions (Sauda book). (b) Clients’ ledger. (c) General ledger. (d) Journals. (e) Cash book. (f) Bank Continue reading
Memorandum of Association of a Company
The Memorandum of Association is the charter of the company, and provides the foundation on which the structure of the company is built. It defines the scope of the company’s activities as well as its relation with the outside world. Section 2(28)of the Companies Act defines a Memorandum as “the memorandum of association of a company as originally framed or as altered from time to time in pursuance of any previous Company Laws or of this Act”. Section 13 of the Act specifies the contents of the memorandum. The importance of the Memorandum is that it lays down the ambit of the powers of the company, the area within which the company can operate and beyond which it cannot go. The purpose of the Memorandum is to enable the shareholders, creditors and those who deal with the company to know what is its permitted range of enterprise. The Memorandum of Continue reading