- Rupee notes, the official currency of India.indian currency image by Sid Viswakumar from Fotolia.com
The retail sector is one of the most important parts of the Indian economy, making up 10 percent of its economy, as well as 8 percent of its workforce. Despite its size, many of the businesses that operate within the country are family-owned and operate within their houses. Retail laws in India are mainly placed in the subsections of consumer rights and trading standards, but they can be tricky to enforce.
- The growth in India's retail sector has grown as fast as it has in the last decade for three reasons: Indian citizens have, overall, become richer due to the growing economy and therefore have more disposable income. Following this growing income has been a growing desire for non-essential goods. Since India doesn't have as organized a retail sector, it is easier to find and buy goods from independent retailers. The most popular sectors of the retail industry in India are the food and mobile phone sectors, and as a result, competition is quite fierce and takes the form of pricing wars, ultimately benefiting the customer.
Sale of Goods
- This section of retail law is established under the Sale of Goods Act 1930--this decree covers subjects such as the sale of goods, selling at the valuation price, description of goods and the rights of a seller who hasn't received the entirety of an agreed payment.
Agreement to Sell
- This part is concerned with the concept of contracts for the sale of goods (not, in this case, physical contracts but rather verbal agreements between the buyer and the seller). With these, the seller must transfer or agree to transfer ownership of a good to a buyer for the pre-agreed price, with the agreement either being absolute or conditional, i.e., subject to conditions set by the seller.
- This goes into detail about the rules of agreeing prices, saying such valuations are set by a third-party, i.e., the government and the central bank, and the agreement between the buyer and the seller must take this into consideration. If either party prevents the agreement of a formal valuation, the affected party has the right to take legal action against the offending party.
Description of Goods
- This part is designed for any goods that are marketed via description, such as a good sold over the Internet or phone. Any good sold in this manner must meet the description originally given, and if a sample is given along with the description, both must ultimately represent the final product correctly.
Rights of Seller
- This part of retail law has its own subsections. One example is the seller's right to prevent the delivery of a good in certain cases, such as when the buyer has filed for bankruptcy. The seller is within their right to withhold the good indefinitely or until the full payment has been made.