Real Examples of Business Law

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Real Examples of Business Law

  1. 1. Assignment onReal Examples of Business Law
  2. 2. Course Title: Legal Environment in BusinessCourse Code: BUS-203Submitted toSharminJahanLecturer,DIUSubmitted bySection: BDate of Submission: 12/04/13Name ID.Roni Kumar Ghosh 112-11-2085Md .Mashiur Rahman 112-11-2086Md. SajjadHossain 112-11-2091BadhonSarker 112-11-2104MT TaslimaAkter 112-11-2083
  3. 3. Page(¡)Business law is very important for every contract. Without law cannot runany contract? We prepared an assignment on real example ofundue influence, Revocation, fraud, Misrepresentation,Novation. For this specific purpose I collected data andinformation from various website. In this example we knowthat important of business law. Many business people havenot knowledge about business law. So, in our country manycontract to be void. This type of cashes are occur in businessworld. Its most common cashes in Bangladesh. Every day inBangladesh court were see in this cashes. So it’s mostimportant to know this cashes.Executive Summery
  4. 4. Contents Page NumberExecutive Summery (¡)Introduction 1Examples of Revocation 2-4Examples of Misrepresentation 4-6Examples of Fraud 7-9Examples of Undue Influence 9-12Examples of Novation: 12-15Conclusion 15Table of Contents
  5. 5. Introduction:Case study in prospective in real business world in Bangladesh are most important in analysisreal case Bangladeshi curriculum for the subject of legal environments its focus on real casewhich are helps to know how this case are occur we are try to solve this cases are Revocation,Misrepresentation, Fraud, Undue Influence, Novation, we try to solve all case of BangladeshMany business people have not knowledge about business law. So, in ourcountry many contract to be void. This type of cashes are occur in businessworld. Its most common cashes in Bangladesh. Every day in Bangladesh courtwere see in this cashes. So it’s most important to know this cashes.Objective:The general objective is to access the “Employee Training and Development on BRAC BankLtd” in Bangladesh.Methodology:In this study, exploratory research was undertaken to gain insights and understanding of theoverall the “Employee Training and Development on BRAC Bank Ltd” in Bangladesh todetermine their efficiency. After that a more comprehensive conclusive has been undertakento fulfill the main purpose of the study.
  6. 6. Examples of Revocation:(1) Hotel license revoked, 29 arrestedA mobile court on Thursday raided a hotel in Dhaka and cancelled its permit.A mobile court led by executive magistrate Mohammad Fakhruzzaman aided by RAB-2 raidedthe Hyatt Regency (no connection with its more upscale namesake) situated in the Babul Towerat Farmgate, Dhaka.A press release of RAB-2 said 29 people were arrested in the raid, 15 of whom were allegedlyto be sex workers. Two separate cases have been lodged against the owner of the hotel and thearrested.Source:bdnews24.com/lh/shk/2040Analysis:Hotel license revoked, 29 arrested a mobile court on Thursday raided a hotel inDhaka and cancelled its permit. This hotel is revoked agreement with government(2)Government to revoke Ipco land-lease dealThe government will cancel a land lease deal signed in 1999 with Singapore-based companyIpco International Limited, said civil aviation and tourism minister GM Quader on Monday.He said the civil aviation authority of Bangladesh will require the land for the future expansionof Zia International Airport, which is now "overcrowded".
  7. 7. The parliamentary standing committee on civil aviation last week asked the ministry to revokethe deal for construction of a hotel and golf course on over 144 acres (435 bighas) of landadjacent to the airport.According to the local land registration office, the current market value of one bigha in that areais around Tk 10 crore."On unanimous recommendation of the parliamentary standing committee, we are moving tocancel the deal with Ipco," Quader told bdnews24.com on Sunday at his office."We are examining the legal implications before revoking the contract".The minister said 90 percent of ground space at Zia International Airport was occupied byaircraft."Where will we keep our new planes," said Quader, referring to state carrier BangladeshBimans aircraft deals currently in the pipeline.The minister said all the members of the parliamentary watchdog had visited the airport inrecent days and backed cancellation of the deal."We have observed that Ipco failed to act in accordance with the agreement," committeechairman Engineer MosharrafHossain told reporters after a meeting Monday.He said, under the deal signed with the Civil Aviation Authority of Bangladesh, Ipco wassupposed to start construction within one and a half years of signing."We have recommended cancelling the deal and also asking the civil aviation authority to takelegal action against the errant company," said Mosharraf, who was civil aviation minister in1999.He told bdnews24.com that the land was given to Ipco on a 60-year lease to construct a multi-storied luxury hotel and golf course ahead of a NAM summit to be held in 2002.The past BNP-led government in 2001 decided not to host the summit in Dhaka, but kept thedeal alive."My question is why the deal was not cancelled by the then government which backed out ofhosting the NAM summit," MosharrafHossain told bdnews24.com.
  8. 8. Ipcos executive chairman AbulKhairLitu says his company is not responsible for violating thedeal."We are not at fault. The blame goes to the government for not approving the plans.""If the government wants, it can take the land back providing compensation as per theagreement," Litu told bdnews24.com on Apr 21, when the standing committee firstrecommended cancelling the deal.Source:bdnews24.com/krc/rah/2059hAnalysis:Government revoked this agreement in thanking of general people my question iswhy the deal was not cancelled by the then government which backed out of hosting the NAMsummit. We have recommended cancelling the deal and also asking the civil aviation authorityto take legal action against the errant companyExamples of Misrepresentation:(1) "BRAC Bank assumes full responsibility for bKashs operations, as per Bangladesh Bankdirective. The accumulated physical cash balance of all bKash mobile an account, as perBangladesh Bank’s instruction, is held by BRAC Bank in an account which is under thesurveillance of Bangladesh Bank."Furthermore, BRAC Bank maintains the record of all individual bKash mobile accounts in itsown system, the total balance of which is reconciled with bKashs pool balance on a daily basis,it said.To mitigate any confusion, Bangladesh Bank, via a letter on August 2 to BRAC Bank,corroborated that bKashs operations were in full compliance with the guidelines for mobilefinancial services.BRAC Bank, the majority shareholder of bKash, was established in 2001 with the primaryobjective of offering financial services to small entrepreneurs.
  9. 9. bKash takes the objective to another level, by way of mobile financial services to the under-served population who otherwise do not have access to traditional banking services.Source:Star Business DeskAnalysis:BRAC Bank assumes full responsibility for bKashs operations, as per BangladeshBank directive. It’s the Misrepresentation its originally it’s held by BRAC Bank in an accountwhich is under the surveillance of Bangladesh Bank.(2) The World Bank has said fresh implementation arrangements will be required to getreengaged by it in the Padma Bridge project that will give much greater oversight to the Bankand the co-financiers over the project procurement processes.Clarifying its stance on the project, the Washington-based global lender issued a statement earlyWednesday.It said the Bank remains concerned about corruption in Bangladesh in general and in the PadmaBridge project in particular. “It’s for this reason that we’ve also made it clear that to engageanew in the project will require new implementation arrangements that give much greateroversight of project procurement processes to the Bank and co-financiers.”The statement said that media reports have quoted senior Bangladeshi government officialsmisrepresenting its position over the Padma Bridge project.In this situation, the statement said, the Bank feels obliged to issue the following clarifications:It is only after satisfactory implementation of all these measures as well as a positive reportfrom the external panel of internationally recognized experts that the World Bank will go aheadwith the financing of the project.“The people of Bangladesh deserve a clean bridge. If we’re to move ahead, we’re insisting thata credible investigation is undertaken and any project implementation be done in a manner thatensures transparency and enhanced oversight,” the statement said.It said the WB has shared repeatedly with the government of Bangladesh credible evidence ofcorruption involving senior public officials related to the financing of the Padma Bridge. This
  10. 10. led the World Bank to cancel the US$1.2 billion credit in the absence of a credible response bythe government.On September 20, 2012, the government agreed: To place all public officials suspected ofinvolvement in the corruption scheme on leave from government employment until aninvestigation is complete.To appoint a special inquiry and prosecution team within the Anti Corruption Commission(ACC) to handle the investigation.To grant access to all investigative information to an external panel of internationallyrecognised experts who will advise the WB and co-financiers on the credibility of thegovernment’s investigations.The statement claimed that after such types of arrangement, the Bangladesh governmentrequested the World Bank to consider again the financing of the Padma Bridge.Source:Priyo News.htmAnalysis:The World Bank has said fresh implementation arrangements will be required to getreengaged by it in the Padma Bridge project. It said the Bank remains concerned aboutcorruption in Bangladesh in general and in the Padma Bridge project in particular. “It’s for thisreason that we’ve also made it clear that to engage anew in the project will require newimplementation arrangements that give much greater oversight of project procurementprocesses to the Bank and co-financiers.” To grant access to all investigative information to anexternal panel of internationally recognized experts who will advise the WB and co-financierson the credibility of the government’s investigations.Examples of Fraud:(1) Police yesterday arrested fraud pir (spiritual leader) AmzadHossainBepari and three of hisassociates on charge of torturing several children and women in the name of treatment inSirajdikhan.
  11. 11. Amzad was arrested at his den in Khasnagar village under the upazila along with associatesNuru Member, 45, Kalam, 46, and Ilias, 60.Three cases were filed against Amzad and 15 others on charges of deception and attemptedmurder. The fraud pir is the main accused in each of the cases.MdMatiur Rahman, officer-in-charge of Sirajdikhan police, told The Daily Star the arrests weremade around 10:30am following a report published on the ProthomAlo.The arrestees were taken to the police station for interrogation.Ironically, people are still crowding the den of Amzad, who claims to have been using differenttechniques to “heal” his “patients”.Additional District Magistrate Hasanul Islam said everyone involved in the ring would bebrought to book. He however said the administration was not aware of the matter so far.Assistant Superintendent of Police SaiduzzamanFaruqui said the arrestees are beinginterrogated. He said Amzad has already given some important information and the police areworking on it to trap his other accomplices.The Rapid Action Battalion (Rab) is also working on the activities of the fraud pir.Rab local camp commander ASP MdMilon Mahmud said he came to know about Amzad’sactivities about a week ago. He said he was waiting for Thursday as the number of visitors isusually the highest on that day.Superintendent of Police MdShafiqul Islam said Amzad is illiterate. He only knows two suras(chapters of the holy Quran) but also makes mistakes while reciting those.Source:TheProthomAloAnalysis:Fraud pir are doing false business and two people are died this case so policy arearrested pir and his three associated its grate fraud(2) Destiny Tree Plantation Limited, the master fraudulent project of Destiny Group andDestiny 2000 Limited, Lt. Gen. HarunAr Rashid has confessed to the interrogators of Anti
  12. 12. Corruption Commission [ACC] that the multilevel marketing company collecting money fromthe people by selling 60 million trees though it has planted only 8.1 million by now. He said,Destiny Tree Plantation Limited sold trees to 1.75 million people by suppressing the fact ofexact number of planted trees. The former chief of Bangladesh army further said that thepolicymakers of Destiny Group did not pay any heed to his suggestions of moving slow, whichhas resulted in current catastrophic situation of the organization.It may be mentioned here that, Weekly Blitz started serializing the untold stories of massivefraud and corruption by Destiny Group as well as its sister concerns Destiny 2000 Limited,Destiny Tree Plantation Limited alone has collected over six thousand crore Taka from thepeople by selling 60 million trees [each package of 10 trees were sold for TK. 10,000] while theorganization is promised to return the investors an amount of Taka Thirty Thousand crore [TK.50,000 profit for each package of 10 trees] from end of 2012. Another investigation revealedthat Destiny Tree Plantation Limited has sold more than 12 crore trees to the people by givingthem false promise of five-fold profit within the span of few years. Though Lt. Gen Harun hastold the ACC interrogators about planting 8.1 million trees, in reality the real number of plantedtrees is only a fraction of the claimed figure. It may be mentioned here that, more than 7 millionpeople has invested their hard-earned money into various fraudulent projects of Destiny Groupas well as its sister concerns Destiny 2000 Limited, Destiny Tree Plantation Limited, DestinyMultipurpose Cooperative Society Limited, Best Air Limited, Boishakhi Television and otherenterprises.Source: News BD24 The Destiny 2000 Limited fraud.htmAnalysis:Destiny Tree Plantation Limited, the master fraudulent project of Destiny Group andDestiny 2000 Limited they Freud about 1.7milion people so government offs the company andlegal charge against this company.Examples of Undue Influence:
  13. 13. (1) Bangladeshi singer Tishma accuses MilaA battle has started now between two young singers of the new generation; whenTishmaLiliana [Tishma] issued a statement on Thursday, January 9, 2012 against anotherpopular singer Mila Islam [Tasbiha] bringing a series of allegations against her for attempting tosabotage the music career of Tishma. Weekly Blitz immediately tried to get comment fromsinger Mila on these accusations and even tried to connect her via her own website at:www.milaislam.com. But the website was shown non active.In a written statement, Tishma, whose debut album was released in 2002 made a number ofallegations against Mila Islam. She said, Mila Islam exerted her undue influence over theprogram officials at Bangla Vision [a private television channel] and excluded her from a EidShow, though the channel already run their promotional showing Tishma as one of theperformers.Tishma said, in 2007, during Indian Idol concert, Mila Islam tried to manipulate the soundengineer and crews of RTV [a private television channel] to disrupt Tishmas performance.Tishma also alleged that whenever she goes to any music director for working on her album orsong, Mila Islam surely contacts the same music director and tries to influence in abortingTishmas project. She also accused Mila and "her team" of spreading "rumors through internet",though Tishma could not specify any such activities of Mila Islam.Source:Weekly Blitz.htm(unde).htmAnalysis:A battle has started now between two young singers of the new generation; whenTishmaLiliana [Tishma] issued a statement on Thursday, January 9, 2012 against anotherpopular singer Mila. , in 2007, during Indian Idol concert, Mila Islam tried to manipulate thesound engineer and crews of RTV [a private television channel] to disruptTishmasperformance.and take legal steps
  14. 14. (2) Scandalous Hall Mark Group website downedThe website of scandalous business conglomerate in Bangladesh, which allegedly swindledmillions of dollars from state-owned Sonali Bank Limited as well as some other financialinstitutions in the country by using the undue influence of one of the advisors of the PrimeMinister as well as some other influential figures from the ruling party – has been suddenlydowned by the authorities of the company, as the website was containing importantinformation, which would be useful for the investigators, including Anti CorruptionCommission. The website addressed www.hallmarkgroupbd.com has been downed with thesign Under Construction to avert information centering activities of the company being leakedto the media and the investigating agencies. It may be mentioned here that, The Hallmark Grouphas secured nearly TK. 27 billion in loans from the Rupashi Bangla Hotel branch of the SonaliBank, allegedly, through fraudulent means. The biggest-ever financial crime, after busting ofanother financial crime committed by Destiny Group, has put the government into extremelychallenges, especially when the ruling party is actively trying to grip the Nobel Peace Prizewinning Grameen Bank by knocking down Professor Mohammad Yunus, the founding father ofthe institution. It may be mentioned here that, Yunus enjoys highest esteem internationally forhis excellence in creating an example of serving the lowest class in the society in attainingeconomic emancipation.While squeezed by Anti Corruption Commission, the ringleader of Hall Mark Group, TanvirMahmud said, he had already acquired assets worth 20-times [US$ 6.6 billion] of the amountthat he borrowed from the state owned financial institution. Commenting on Mahmuds claim ofowning huge wealth, economists in Bangladesh are question as to why the government is notconfiscating all such properties until the entire amount of loan has been recovered from TanvirMahmuds company Hall Mark Group.However, state-owned Sonali Bank, apparently, is not interested to get back the entire amountfrom the borrower right now. One of the directors of the bank, appointed under politicalconsideration by the incumbent government, told the media that the management of the bankwould ask the Hallmark Group to repay 50 per cent of the loan amount within next 15 days.Bangladeshi finance minister AMA Muhit has violently reacted at medias role in exposing thishuge financial scam. Expressing anger, the finance minister said, ""… banking crisis, which isnot a crisis at all. It is a matter of TK. 3000 crore [30 billion] or 4000 crore [40 billion].Nonsense! But you (media) are harming the banking sector by publicizing it. Banking sector isconfronted with questions whether all of it has crumbled down."Meanwhile, two senior treasury bench members in the parliament blasted the Finance Ministerfor what they called his callousness and unnecessary comments on the Hallmark.
  15. 15. In a statement to Bangladeshi media, general manager of Hall Mark Group claimed that thegroup did not take any political recommendation or any "undue advantage" for obtaining theloan worth TK. 27 billion from the state-owned Sonali Bank Limited.Claiming transparency in the process of loan disbursement, the tensed GM said he had norelation with political personalities, as the media highlighted, and nobody had favoured him insecuring the loan."The allegation of loan embezzlement against us is baseless as we took the financial assistancefor 34 institutions of the group from the bank as per the rules," the Hallmark GM said.He dismissed the allegation that they took the loan by producing false documents.The conglomerate has employed around 40,000 people for its different units.But the reports in the media raised many questions about the group in the minds of the peopleand put its [Hall Mark Group] reputation at stake.It may be mentioned here that, Prime Ministers advisor Syed Modasser Ali has been accused ofcollaborating with Hall Mark Group in siphoning such large sum of money from the stateowned bank. A front-ranking vernacular daily published report stating the advisor bought apiece of land at Dhakas Uttara residential area with the money he received from Hall MarkGroup.While Hall Mark Group scam is getting prominent coverage in Bangladeshi and internationalmedia, sixteen members of fraudulent multilevel marketing company, Destiny Groupcomprising, Destiny Multipurpose Cooperative Society Limited, Destiny Tree PlantationLimited, Best Air Limited, Destiny Bank Limited, Diamond Builders Limited, Destiny MedicalCollege and Hospital Limited etc obtained bail from the court of metropolitan magistrate inDhaka, while the issue of bail granted to five more members of the same fraud racket has beenchallenged by the Anti Corruption Commission and hearing into the matter is due forSeptember 12. It was earlier reported in local and international media that, an advisor to theBangladeshi Prime Minister is holding shares in this fraudulent MLM racket, who had beenplaying key role in salvaging the masterminds Destiny Group from facing severe legalconsequences.Source:Weekly Blitz.htm
  16. 16. Analysis:The Hallmark Group has secured nearly TK. 27 billion in loans from the RupashiBangla Hotel branch of the Sonali Bank, allegedly, through fraudulent means. The biggest-everfinancial crime, after busting of another financial crime committed by Destiny Group. Its greatundue influence of bank and bank fall many circus.Examples of Novation:(1) Novation Holdings will receive a combination of cash, stock and notes, secured by theassets of SureScreen, as consideration for the sale. The total value of the sale is estimated at$250,00Certain statements contained herein and subsequent oral statements made by and on behalf ofNovation Holdings, Inc. may contain "forward looking statements" within the meaning of thePrivate Securities Litigation Reform Act of 1995. Such forward looking statements areidentified by words such as "intends", "anticipates", "believes", "expects", and "hopes" andincludes, without limitation, statements regarding Novation Holdings, Inc.s plan of businessoperations, product research and development activities, anticipated revenues and expenses andpotential contractual arrangements and obligations. Also, our management may make forward-looking statements orally to investors, analysts, the media and others. Any statements made inthis news release about an action, event or development, are forward-looking statements. Suchstatements are based upon assumptions that in the future may prove not to have been accurateand are subject to significant risks and uncertainties. Such statements are subject to a number ofassumptions, risks and uncertainties, many of which are beyond the control of the Company.These risks and others are included from time to time in documents we file with the Securitiesand Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form8-Ks. Other unknown or unpredictable factors also could have material adverse effects on ourfuture results. Accordingly, you should not place undue reliance on these forward-lookingstatements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statementswill prove to be correct.. The Company undertakes no obligation to update or correct its ownforward-looking statements, except as required by law or those prepared by third parties that arenot paid by the Company. The Companys SEC filings are available at http://www.sec.gov.Novation of the consultants appointment can offer real benefits to a client, but it must do thework to make it work. Otherwise, it can end up with legal nonsense that risks being thrown outof court.
  17. 17. Visiting from the States recently, my brother asked why London Underground still chooses toinstall chocolate vending machines that swallow your money but obstinately refuse to let go oftheir chocolate bars. What is so irksome is not the loss of your money, but the fact that there isno one on hand to blame. Shouting at an inanimate object brings your sanity into question andringing around customer complaints numbers is just not worth the hassle.Frustration of this sort appears to be key to the popularity of design and build with developer-clients. It provides a very accessible one-stop complaints desk: the design-and-build contractor.The contractor is responsible for everything – whether or not it has performed.Source:http://www.sec.gov.Analysis:Holdings will receive a combination of cash, stock and notes, secured by the assetsof Sure Screen, as consideration for the sale. The total value of the sale is estimated at$250,00its contain "forward looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. These risks and others are included from time to time indocuments we file with the Securities and Exchange Commission, including but not limited to,its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also couldhave material adverse effects on our future results.(2) More than one-third of design-and-build projects start with the consultant being appointedby the employer-client and subsequently novated to the design-and-build contractor. (Novationhere means roughly that the employer-clients contract with the consultant is transferred to thecontractor, as if the contractor had been the client from the outset.) Such novation offers distinctadvantages for the client: it has full control over the design before novation, continuity of thesame consultant post-novation, and can still look to its contractor for single-point responsibility.However, the contractual documentation and the mechanism of the novation have to beconsidered carefully to avoid potential pitfalls.Badly prepared novation contract documents are disturbingly common. In most cases, a verysketchy novation document effectively states, with wildly optimistic simplicity, that, from thedate of the execution of the novation agreement, the contractor will step into the role of theclient under the appointment document, as if it, rather than the client, had appointed the
  18. 18. consultant from the outset. The idea is that where you read "employer" in the appointment, younow understand "contractor".And that, as a rule, is it. There are rarely any provisions to deal with the many clauses in theappointment document that will simply not make sense in these new circumstances, particularlywhere the services section of the consultants appointment had been drawn up to serve for theentire job in the event that the novation should not, in fact, take place.Source:Bangladesh Business News (BBN).Analysis: More than one-third of design-and-build projects start with the consultant beingappointed by the employer-client and subsequently novated to the design-and-build contractor.Such novation offers distinct advantages for the client: it has full control over the design beforenovation, continuity of the same consultant post-novation, and can still look to its contractor forsingle-point responsibility.Conclusion:This type of cashes are occur in business world. Its most commoncashes in Bangladesh. Every day in Bangladesh court were see in this cashes.So it’s most important to know this cashes.

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