Hand-in Assignment

Hand-in Assignment

Introduction

This assignment is based on Tesco Supermarkets Ltd v Nattrass [1972] AC 153 (House of Lords) in relation to company liability for a breach of the Trade Descriptions Act 1968. Tesco is one of the most known and successful supermarket chain founded in UK. One of the largest retailers in the world, it has its stores being concentrated in the region of Europe and Asia.

Tesco Supermarkets Ltd v. Nattrass [1972] A.C. 153 was the case which was filed in the House of Lord based on the matters pertaining to Corporate Liability and Consumer Protection. This case was handled by the court of law by using the principles of Trade Descriptions Act 1968.

The fact of the case was that Tesco was involved in an advertising of a washing product based on discount, but in real terms the product was being sold me customers at inflated price. Unfortunately, Tesco ran out of the lower priced product due to which Tesco began started to replace the lowered priced washing product with the regularly priced stock. The managers of Tesco on the floor failed to replace the banners and advertising signs due to which the company was charged under the Trade Descriptions Act 1968.

Discussion and Analysis

Mr. Clemet was the store manger on the floor, whose intention was not to charge the customer with the inflated price of washing powder. Mr. Coane was the customer who filed a lawsuit in Magistrates Court. In defense, Tesco argued that company has undertaken all the reasonable precautions and the conduct of the manager cannot be associated with the policies of the company. This case was filed by the washing powered purchaser on the grounds that the unhealthy behaviors may involve actions, omissions, conduct, representations or commercial communication including advertising and marketing. These unfair acts may occur before, during and after a commercial transaction. They come from a company in direct relation to the promotion, sale or supply of a product to the consumer (Harvey, 1978).

The House of Lord accepted the defense of the Tesco. In the judgment, House of Lord declared that the manger was not part of the directing mind of the company; therefore, the acts of the mamager cannot be associated to the Tesco. Tesco had adopted all the ethical policies to be fair with the customers at all times.

Trade Descriptions Act 1968 declares that dishonest sales representatives may try to ...